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DIGEST. OF BANKING AND
COMMERCIAL LAW S
Compiled Expressly for
T H IS E D ITIO N O F •

'

R and -Mc Nally Bankers’ Directory
a n d

*

Bankers’ R egister
BLUE BOOK
BY

Those Prominent Lawyers W hose 'Names Appear at the
Head of the Laws of Each State

The Following States Have Put in Operation
THE

NEGOTIABLE

State

Alabama...................
Arizona ..................... . .
Arkansas.........
California.
............ .
Colorado . . . . . ; .................
Connecticut.....................
Delaware................... ...
Dist. of Columbia............
Florida.. . . » .................... ,
Hawaii.................. . . 7 ‘ . .
Idaho.......................... : j . <.
Illinois . . . . . . . . . . . . . . . . . .
Indiana........................ 7
Iowa..........
Kansas.............................
Kentucky....................... .
Louisiana..................... ...
Maryland . . , . . . . . . . . . . . .
Massachusetts..................
Michigan.................
Minnesota'.. . . . . . . . . . . . .
Mississippi....... .
Missouri . . . . . . . . . . . . . . .
Montana............................

In Effect

•July

.Mar.
.July
•July
.June
.June
•Aug.
.June
.Jan.
.Sep.
.Apr.
July
•June
Mar.

1, 1908
1, 1901
22, 1913
1917
19. 1897
5, 1897
r, 1912
3, 1899
3. 1897
20, 1907
10, 1903
1, 1907
l, 1913
4, 1902
8, 1905
13. 1904
1, 1904
1, 1898
1, 1899
16, 1905
24, 1913
7, 1916
16, 1905
7, 1903

INSTRUMENTS
State

Nebraska.. . . . .
Nevada . . .. .- ..
New Hampshire
New Jersey. .. .
New M exico...
New Y ork .. . . .
North Carolina.
North Dakota. .
Ohio..................
Oklahoma.........
Oregon. . . . . . . .
Pennsylvania ..
Philippines
Rhode Island ..
South Carolina ?
South D akota...
Tennessee . . . . . .
Utah.................
V erm ont...........
Virginia . . . . . . . ,
Washington........
W. Virginia.......
Wisconsin..........
Wyoming ..........

LAW
In Effect
•Aug.
.May
.Jan.
•July
.Mar.
.Oct.
.Mar.
July
.Jan.
July
.May
.Sep.
•May
July
.Mar.
July
.May
July
, Feb.
July
June
Jan.
May
Feb.

1, 1905
1, 1907
1, 1910
4. 1902
21. 1907
1, 1897
8, 1899
L 1899
1, 1903
20, 1909
19, 1899
2, 1901
31. 1911
fi 1899
25. 1914
I, 1913
16, 1899
1, 1899
13, 1913
1, 1898
7. 1899
1. 1908
15, 1899
15. 1905

For Tabulated Information concerning Interest Rates, Days of Grace and Statutes of Limitation
see Page 14


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Dates of Regular Meetings

1 f

of Legislatures

r

A la b a m a
— —January, 1915, and every lour years.
A la sk a -------------------- -------- A Territory.
___January___ ------ ---------.Every, odd year.
___January____ --------- --- -------- Every odd year.
___January
------— ---------Every odd year.
I __January . . . . -------------------- Every odd year.
__ January
----- :------------.E very odd year.
_January
----------------------Every odd year.
. Under U. S. Government.
April
Georgia_____ _____
— June----------H aw aii----------------------------- February
----- Every odd year.
Id a h o -------------------- --------- January _
--------------------Every odd year.
Illinois--------. . . . . ---- ----- -----January _
----- — i -------Every odd year.
In d ia n a _______ __________ January _
------------------- Every odd year.
I o w a .--------------------------j___January _
------------------- Every odd year.
Kansas------------------------- „Janu ary _
------------ I ------Every odd year.
Kentucky--------------------------January _
---------------- ---Every even year.
L ou isian a________________ M ay_____
----------- _---^.Every even year.
M aine----------------------------- January.
— i — .E very odd year.
M a ry lan d ------ -----------------January---------------------------- Every even year.
M assachusetts----------------- January_________________ .E very year.
Michigan--------------------------January— ________ \___,___Every odd year.
M innesota— ____— ----- January___________ %_____..Every odd year.
Mississippi-— .—...---- |—I.January______ r______ i____ Every even year.
Missouri—,— — ----------------- January__________________ Every odd year.
Montana — ----------------- — January ______________
Every odd year.
Every odd year.
Nebraska--------------------- ...J a n u a r y ___________
N e v a d a ---------------------------- January-------------------------- .E very odd year.
N ew Hampshire------------ .Jan uary____________
Every odd year.
N ew Jersey-------- ------------- January______________ .
Every year.
N ew Mexico------ ------------- January
..E v e r y odd year.
N ew York-------------------------January_______
Every year.
North Carolina------------------January_____ _____
Every odd year.
North Dakota------ -------. . . January_________________ .E very odd year.
O h io ----------------- _*------------ .January________________ ..E v e r y odd year.
O klahom a--------------January----------------------------- Every odd year.
Oregon------------- ______— January _ _ ________
..E v e r y odd year.
Pennsylvania—
— January. _____________ „ .E v e r y odd year.
Rhode Island------ ----------- January_________________ 2.E very year.
South Carolina------ ------ -— January______________
Every year.
Every odd year.
South Dakota-------------- January________
Tennessee---------------- —January______________ _ :_.__Every odd year.
T e x a s . . . , ------:-------------- ..J a n u a r y ___ . . . ______
.E very odd year.
U t a h .-------------------------------- January___________
Every odd year.
Verm ont . . . . . . . . . . . . . . J a n u a r y , — ______________Every odd year.
Virginia--------------------------- January— ______ ,_______ Every even year.
Washington — , ------ .--------January_________________ .E very odd year.
W est V irginia--------- ....J a n u a r y ______ . . . . _______ Every odd year.
W is c o n s in ----------------------- January_________
Every odd year.
W y o m in g -----.----------- -------January
________ ,
Every odd year.
1698

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

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

IMPORTANT:

The states in which \the Uniform Negotiable Instruments Law is in effect are listed on the
index to Laws. For iTabulated Information, for quick reference in regard to Interest Rates, Days of
Grace, and Statutes of Limitations, see page 14.

SYNOPSIS OF

T H E L A W S OF A L A B A M A
RELATING TO
BANKING AND COMMERCIAL USAGES.

Prepared and Revised b y R i t t e r & W y n n , Attorneys at Law,
Birmingham. (See Card In Attorneys' List.)
Acknowledgments or proof of real estate instruments may be
before one of the following officers: 1st. Within this State, judges of
the supreme and circuit courts and the clerks of such courts, chan­
cellors, registers In chancery, judges of the courts of probate, justices
of the peace, and notaries public. The official should certify that
the person signing the cohveyance is known to him and acknowl­
edges that “ being informed of the contents of the conveyance he
executed the same voluntarily on the day the same bears date.”
2d. Outside of State—Judges and clerks of any federal court, judges
and clerks of any court of record in any state, notaries public, or com­
missioners appointed by the governor of this State; beyond the limits
of the United States, by the judges of any court of record, mayor or
chief magistrate of any city, jown or borough, or county, notaries
public, or by any diplomatic, consular, or commercial agent of the
United States. Foreign officers must attach official seal. For forms
of deeds see “ Conveyances."
Actions. All ordinary suits at law are commenced by suing out
a summons which must be accompanied by a complaint stating the
cause of action. Non-resident plaintiffs are required to give security
lor costs. When two or more persons are jointly bound by judgment,
bond, or agreement, the obligation Is several as well as joint.
Actions on Account. Suits upon open accounts may be accom­
panied by itemized, verified statement of the account, which when
filed with the summons and complaint may be admissible in evidence
to prove the account unless its correctness Is denied under oath by
defendant within the time allowed for pleading. Such statements
must be sworn to by a person having knowledge of the correctness
of the account' and must show that the amount is due and unpaid
after allowing all offsets and counter claims.
Acceptance. Unconditional promise In writing to accept a bill
before or after drawn is good In favor of all who take It upon faith
thereof for value. The holder may decline a qualified acceptance and
treat the bill as dishonored; if he takes qualified acceptance drawer
and endorsers are discharged.
A Check. Is a bill of exchange on a bank payable on demand;
must be presented within reasonable time after Issue and If dishonored,
notice must be given or drawer Is discharged to the extent of loss
caused by delay; does not operate to assign any part of drawer’s funds
In bank, and bank Is not liable unless It accepts or certifies. It holder
has check certified the drawer and endorsers are discharged. The
making, uttering, drawing, or delivery of a check, draft, or order
upon which payment Is refused upon due presentation because of
lack of funds shall be deemed prima facie evidence of intent to de­
fraud and party may .be convicted of a misdemeanor.
The present negotiable Instrument law of Alabama, consisting of
196 sections went Into force August 9, 1907. Its provisions do not
apply to Instruments made prior thereto. The act so materially
changes the law In this State as to suggest the propriety of special
examination in any doubtful case.
Administration of estates is had in the probate courts of dece­
dents' residence. All claims must be presented within twelve months
after tbe same have accrued or within twelve months after the grant of
letters testamentary or of administration, or else barred. Infants and
persons of unsound mind have one year to present their claims after
disabilities removed. Administration of intestate is granted, 1st:
To the husband or widow;. 2d: Tbe next of kin entitled to share In
the distribution of the estate; 3d: The largest creditor of the Intestate
residing within this State; 4th: Such other person as .the judge of
probate may appoint. There can be no appointment until after
expiration of fifteen days from date of death. Preference must be
exercised within forty days or rights relinquished. If several entitled
to administer, men are preferred to women and whole blood to half
blood. Non-resident executors and administrators may sue In this
State by recording in probate judge's office copy of letters and giving
bond to faithfully administer. property. A non-resident may be
appointed administrator or executor of a deceased resident’s estate.
Affidavits may be taken within the State before every judge or
clerk of any court,' justices of tbe peace, and notaries public or any
other person Invested bF law with judicial functions. Outside the
State and within the United States may be taken before any judge or
clerk of federal court, judge of any court of record In any state,
notaries public and commissioners appointed by the governor. For­
eign officer taking affidavit must attach seal.
Aliens. " Foreigners who are, or may hereafter become, bona fide
residents of this State, shall enjoy the same rights in respect to the
possession, enjoyment, and inheritance of property as native-born citi­
zens."—Sec. 34, Const.

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Alterations. When a negotiable Instrument Is materially altered
without the assent of all the parties liable thereon, it is avoided
except as against a party who has himself made, authorized, or
Msented to the alteration and subsequent endorsers. But when an
instrument has been materially altered and is in the hands of a holder
In due oourse, not a party to the alteration, he may enforce payment
thereof according to its original tenor. Material alterations consists
of any changes in date; sum payable, interest on principal; time or
of payment; number and relation of parties; medium or currency
Slace
i which payment-is to be made.
Arbitration. Courts are compelled by statute to make an order
submitting cases for arbitration when moved for by the parties, and
to continue this cause for one term for an award, but not longer with­
out consent of parties, or good cause being shown therefor. Tbe
aiyard of the arbitrators may be entered up and enforced as the judg­
ment of the proper court whether made in a pending suit or not.
Arrest. There can be no arrest on civil process, except for oontempt and in cases of alleged lunacy.
Assignments and Insolvency. Every general assignment made
by a debtor, or conveyance by a debtor of substantially all of his
property in payment of a prior debt, by which a preference or priority
of payment is given to one or more creditors, shall enure to the benefit
of all the creditors equally, but this section sball not apply to mort­
gages, pledges, or pawns given to secure a debt contracted contem­
poraneously with the execution of the mortgage. All assignments by
a debtor made with intent to hinder, delay, or defraud creditors are
void. All deeds of assignment for the benefit of creditors sball, as
soon as executed, be filed and recorded In the office of the judge of
probate of the county in which the property is situated. Every
judgment confessed, attachment procured by the debtor, or other dis­
position of property by which a debtor conveys all, or substantially
all. of his property which is subject to execution in payment or as
security for a debt shall be deemed a general assignment.
. Attachment process will issue upon affidavit by the creditor or’his
agent of the amount due and that the debtor absconds, or resides,
out of the State, or secretes himself so that process cannot be served
upon him, or is about to' remove out of the State, or has or Is about to
fraudulently dispose of his property, or fraudulently withhold^ money,
chattels, or effects which are liable to the satisfaction of his debts;
plaintiff must give bond in double, the amount claimed. Attachments
will issue for the following demands: 1: To enforce the collection of
a debt, whether it be due or not, at the time the attachment is taken
out. 2: For any moneyed demand, the amount of which can be
certainly ascertained. 3: To recover damages for a breach of con­
tract when the damages are not certain or liquidated. 4: When
the action sounds in damages merely In falling cases, viz. 1: Where
defendant is a non-resident. 2: When the defendant has absconded.
3: When defendant has secreted himself. 4: When defendant is
about to remove from the State. 5: When defendant is about to
remove his property from State. 6: When defendant is about to or
has fraudulently disposed of hip property or fraudulently withholds
same. One non-resident may sue out an attachment against another
non-resident by making oath that the defendant has not sufficient
property within the State of his residence wherefrom to satisfy the
debt. Attachments may be sued out in aid of a pending suit when
any of the above grounds exist by making affidavit and executing
bond. Garnishment process will issue in aid of attachment in all
such case.«. Garnishment may be dissolved by giving bond. In all
cases of attachments sued out by a resident solely upon the ground
that the defendant is a non-resident, the attachment may Issue with­
out giving bond, but if defendant appears and pleads, bond must be
given or the attachment dismissed.
Banks. The national bank system is in force in this State unoontrolled in any way by State laws, except tbat tbe shares are subjeot
to taxation as other personal property, but the bank is required to pay
the tax.
There is no provision of law for the establishment of banks of issue
in th's State. Banks of discount and deposit may be established
under the general incorporation laws. Open depositors and savings
depositors on equal footing in case of insolvency.
Any banker who discounts a Dill or note at a greater rate than 8
per cent cannot enforce the collection of same except as to the prin­
cipal, and If any Interest has been paid It must be deducted from the
principal.
Collaterals. Receipt must be given for if demanded. Pledges or
collaterals not transferable without transfer of the debt; after two
days’ notice In writing collaterals may be sold, by advertlslng„for five
days, at public outcry.
Conditional Sales are good between thè parties, but void where
personal property delivered to vendee as against purchasers for a
valuable consideration, mortgages and judgment creditors, without
notice, unless in writing and recorded in the office of the probate
judge.
Conditional contracts of sales must be recorded in office of the
Judge of Probate of the county in which the property is located,
to be valid against subsequent purchasers, judgment- creditors, or
mortgagees without notice, except in counties having a population
of more than 80,000 and when contract is for a less amount than $200.00.
Conveyances. All persons of the age of twenty-one years, not
laboring under some legal disability, may convey their real estate or
any interest therein by instrument In writing signed by the grantor,
or his agent duly authorized in writing, and attested by one witness, or
If the grantor cannot write, by two witnesses who are-able to write,
and who sign their names as witnesses. If tbe grantor Is not able to
sign his namerit must be written for him, and the words “his mark”
written over or against It. The person writing his name must sign
as a witness. A parol lease for less than one year is valid. A married
woman over eighteen years of age may convey dower in her husband’s
lands.and has generally the same rights as married women over twentyone years of age. The husband must join In any conveyance of the
wife’s separate estate. Conveyances, to operate as notice, must be

1700

BANKING AND COMMERCIAL L A W S— ALABAMA

acknowledged and recorded. General acknowledgment must be
signed to make Instrument self-proving. Married women must
acknowledge twice in the event the homestead is conveyed. Form
of general acknowledgment is as follows:
The State of Alabama.......................... County, f
I ,............ . . .. •: ............................................................ a (style of officer),
hereby certify that.................................................whose name is signed
to the foregoing conveyance tad who is known to me„ acknowledged
before me on this day, that, being informed of the contents of the
conveyance, he executed the same voluntarily on the day the same
bears date. Given under my hand and seal, this................... day of
................... A. D.
(Seal)
Notary Public.
No time is required within which conveyances shall be recorded.
They operate as notices from date of delivery to probate judge for
record. (See Acknowledgments.) They may be used as evidence
without further proof of execution. Leasehold estates may be
created to last not exceeding twenty years, but if longer void as to
excess. A married woman must make the following acknowledgment
to a conveyance of a homestead:
State o f.................County o f.................
I...........................judge of................(or other officer) do hereby certify
19........ came before me
that, on the . . . ^...........day o f.................. ..
the within named ................. ..
1, known to me (or made
known to me)’ to be the wife of the within named................................ .
who, being examined separate and apart from her husband touching
her signature to the within................... . acknowledged that she signed
the same of her own free will and accord, and without fear, constraint,
or threats on the part of her husband.
In witness whereof, I hereto set my hand this ............... day of
............. ......

19....

(Official Character.)
Corporation to make following acknowledgment:
........................................... .that.................................................................
whose name a s ...................................... of the said corporation, is signed
to the foregoing conveyance, and who is known to me, acknowledged
before me on this day that, being informed of the contents of the
conveyance, he, as such officer, ana with full authority, executed the
same voluntarily for and as the act of said corporation.
Corporations. Every company, corporation, or association, not
organized under the laws of Alabama, engaged in any other business
than insurance, shall, before engaging in any business in this State,
Ole in the office of the secretary of state, at the capitol in Montgomery,
an instrument in writing, under, the seal of such company, corporation,
or association, and signed officially by the president and secretary
thereof, designating at least one known place of business in this State,
and an authorized agent residing thereat. If such corporation Is
engaged in any business of insurance, the statement must be filed in the
office of the insurance commissioner. If the agent is changed, a qew
aper must be filed. Held not to apply to corporations selling goods
y traveling agent or sample. Foreign corporations transacting busi­
ness in this State.without complying with above provisions, for each
offense forfeit to the State $1,000, and any person acting as agent for
foreign corporation that has not so complied, forfeits for each offense
$500. All foreign -corporations doing business «in this State are
required to pay license fees ranging from $25 upward, according to
capital. Foreign corporations can do no business until fees are paid
and aU contracts before then are void. Every foreign corporation
required to procure from secretary of state a permit to do business
la the State. This permit costs $10 per annum.
Courts. Terms and jurisdiction. The supreme court, except
to issue writs of Injunction, habeas corpus, quo warranto, and other
remedial and original writs necessary to its supervision of Inferior
oourts, and Impeachments of judicial officers, has only appellate juris­
diction and cases are tried on the record sent up. Court of appeals
has final appellate jurisdiction in the following cases: 1. When
Die amount involved exclusive of interest and costs does not exceed
the sum of $1,000. 2. Of all misdemeanors, Including the violation
of town and city ordinances, bastardy, habeas corpus, and all felonies,
where the punishment has been fixed at twenty years or under.
Circuit courts have unlimited common *law jurisdiction when the
matter or sum in controversy exceeds $50, and exclusive jurisdiction
of libel, slander, assault and battery, and ejectment. The courts of
chancery have exclusively equity jurisdiction. Regular terms of
both twice a year in nearly every county. Chancery courts have
full equity powers. Justices of the peace have jurisdiction of all
civil causes where the amount in controversy does not exoeec^ $100 in
value, except in cases of libel, slander, assault and battery, and
ejectment. Names of all parties, plaintiff and individual names of
eo-partnecs, must be set out in writs. Partnership may be sued in
courts of law, in .firm name, without setting forth names of co-part­
ners, but judgment in such suits bind only partnership’s property,
not that of individual partners. The writ may be served upon any
one of the partners; the judgment reaches the partnership property
alone, Any one partner, or his personal representative, may be
sued alone on a partnership obligation. Non-residents must give
security for costs when suit is commenced or within such time there­
after as the court may direct. Money may be deposited with the
clerk Instead of sureties.
Days of Grace are abolished. (See Negotiable Instruments.)
Depositions. In cases at law, depositions may be taken of wit­
nesses who cannot be present at the trial In the following cases:
When the witness is a female; when the witness is too sick to attend
court; when the witness resides more than 100 miles from the. place of
trial, or is absent from the State; when .the witness is about to leave
the State, and not return in time for the trial; when the witness is the
sole witness of the facts; when the witness is one of the officers desig­
nated jn Code No. 4030. Affidavit must be made of one of the above
facts, and of the materiality of the witness. May be taken on inter­
rogatories by a commissioner appointed by the court for that purpose.
The commissioner may be any suitable person, need not be an officer.
In equity suits, where witnesses live within 100. miles of the place of
trial, depositions may be taken by oral examination before the regis­
ter, or a special examiner, or commissioner appointed for the purpose.
Descent and Distribution. The real estate of persons dying
intestate, in this State, descends, subject to the payment of debts and
Die widow's dower, as follows: First to the children of the intestate
or their descendants per stirpes in equal parts. Next, to the parents,
U they survive, in equal parts. If only one parent survives, then
one-half to such parent and one-half to the brothers and sisters of the
dooeased or their descendants, and if there be no brothers and sisters
and their descendants, then the whole estate shall go to the surviving
parent. It there are no children or their descendants, and no father
or mother, 'then to the brothers and sisters of the intestate, or their
descendants, in equal parts. If there are none of the above to take,
Mien the whole to the husband or wife of the intestate, and if there be
no husband or wife or none of the foregoing living, then to the next
of kin in equal degree in equal parts. If there are no next of kin
it escheats to the State. The personal estate is distributed the same
as the real estate, except that if there are no children the widow js
entitled to all of the personal estate. If but one child she takes one, half. If not more than four children to a child's part and if more

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than four to one-fifth. Posthumous children take as others. Illegiti­
mate children inherit from their mother. The husband upon the
death of the wife is entitled to half of her personal estate absolutely
and to the use of all of her real estate for life, unless he has been divested
of all control over her estate: by a decree of the chancery court
Damages recovered by personal representative for death of deceased’
are distributed according to statute of distribution and are exempt
from payment of debts.
Dower. Unless the wife has relinquished her right of dower in the
manner provided by statute she is, upon the death of the husband,
entitled to dower in all lands of which the husband was seized in fee
during the marriage, or of which another was seized to his use or to
which he had a perfect equity, having paid all the purchase money
therefor. The dower interest Is one-half when the husband leaves no
lineal descendants, and one-third when the estate is insolvent or the
husband leaves children or their descendants. If the wife' has at the
deatn of the husband a separate estate equal in value to her dower
interest. She shall not have dower, and if of less value is only entitled
to such amount as with her estate will make the full value of the dower.
Executions. Property subject to: 1st: On real property to
which the defendant has a legal title or a perfect equity, having paid
the purchase money, or in which he has a vested interest, in possession,
reversion, or remainder, whether he has the entire estate, or Is entitled
to it in common with others. 2 d: On personal property of the defen­
dant (except things in'action), whether he has the absolute title there­
to. or the right only to the possession thereof for his own-life, the life
of another, or a less period. 3d: On an equity of redemption in either
land or personal property, when any Interest less than the absolute
title is sold. The purchaser is subrogated to all the rights of the
defendant, and subject to all his disabilities. Writ of fieri facias is a
lien only within the county in which it is received by the officer, on
lands and personality of defendant subject to levy and sale, from the
time only that the writ is received by such officer and continues as
long as writ is regularly delivered to thé sheriff without the lapse of an
entire term. A statement of a judgment certified by the clerk of the
court may be filed in the office of the judge of probate, which makes
the judgment a lien within the county in which it is filed for ten years
thereafter. Execution may be issued on such judgment at any time.
Executions Issued by justices are liens on the property of the defen­
dant, on which they are levied, from the time of the levy. An order
must be obtained from the circtfit court for the sale of lands levied on
under execution from a justice’s court. No stay of execution in circuit
oourt except by appeal, and supersedeas bond which delays collection
until affirmance by. supreme court, and entails 10 per cent damages,
with legal interest and costs. In justice’s court stay is granted on
good security, below $20, thirty days over $20, sixty days.
Exemptions. Homestead not exceeding 160 acres or $2,000 in
value.
Personal property to the amount of $1,000. Exemption of personal
property may be waived by instrument in writing except as to certain
household furniture and provisions and wages to amount of $25.00
per month.
Fraud. Obtaining money or goods on credit under false color or
pretense of carrying on business, or under false representation of
pecuniary condition, with intent to defraud, or bringing into the State
money or goods so obtained, punished as larceny.
Statute of Frauds. In the following cases, every agreement, or
note or memo, thereof, expressing the consideration, is in writing and
signed by the party to be charged: l%t. Every agreement which by
its terms is not to be performed within one year from the making
thereof. 2d. Every special promise by an executor or administrator
to answer damages out of his own estate. 3d. Every special promise
to answer for the debt, default, or miscarriage of another. 4th. Every
agreement, promise, or undertaking, made upon consideration of
marriage, except mutual promises to marry. 5th. Every contract
for the sale of lands, tenements, or hereditaments, or of any interest
therein, except leases for a term of not longer than one year, unless
the purchase money, or a portion thereof, be paid and the purchaser
be put in possession by the seller.
Garnishment may issue in any case after suit commenced upon
affidavit of necessity and bond as in attachment cases, or after judg­
ment, without bond.
Holidays. The following are the legal holidays; Sunday, Christ­
mas Day, First day of January, 19th day of January, 22nd day of
February, Mardi Gras Day, 13th day of April, 26th day of April, Tues­
day before Ash Wednesday, 3rd day of June, 4th day of July, first
Monday in September, 12th day of October, 2nd Tuesday in October,
and day designated by the Governor for public Thanksgiving. !if
Christmas Day, or the first day of January, or the 19th day of Jan­
uary, or the 22nd day of February, or the 13th day of April, or the
26th day of April, or the 3rd day of June, or the 4th day of July falls
on Sunday, the Monday following is the holiday. If any paper becomes
due on a holiday, it must be taken as due on the next succeeding busi­
ness day.
I
Husband and Wife. The wife has fdll legal capacity to contract
as if she were sole, except that she can not alienate or encumber her
real estate without the husband joining in the conveyance. Unless the
husband be Insane or has abandoned her, or is a non-resident, or is
Imprisoned under a conviction for crime for a period of two years or
more, in which cases the wife may convey it as-if she were sole.
Husband and wife may contract with each other, but the wife can­
not be surety for the husband. All of the property and the earnings
of the wife are her separate estate, and are not liable for the debts of
the husband. The wife must sue and be sued alone for all matten
relating to her separate estate or contracts, and for all torts to her
person or property; The chancery court has power to relieve of any
or all disabilities of coverture.
Interest. Legal rate is 8 per cent, and same is allowed on all open
accounts, judgments; and decrees. Usury forfeits all interest and
any sums paid as interest on an usurious contract shall be credited on
the principal.
Judgments of courts of record are proved by a certified transcript.
Judgment not a lien, but when a certified statement thereof, made by
the court of-the clerk, is filed in the office of the probate judge, it
becomes a lien on all property of the defendant therein in the county,
which is subject to execution for ten years, to enforce which execution
may issue at any time within that period. Execution received by
sheriff during life of defendant may be levied after his decease or alias
execution Issued and levied if there has not been lapse of entire term
do as to destroy lien originally created. Above applies to executions
from circuit and chancery courts. An execution issued by a, justice
of the peace is a lien only from time of its levy. All agreements to
confess judgment, or to authorize another to cohfess judgment, made
before the commencement of the puit in which such judgments are
so confirmed are void.
Mechanics’ Lien. Contractors, including subcontractors,
mechanics, material men, and laborers have a lien on houses built
and the ground on which they stand upon complying with the law.
Lien for Bent. The landlords of any store house, dwelling house,
or other building, shall have a lien on the goods, furniture ana effects
belonging to the tenant, and sub-tenant for his rent, which shall be
superior to all other liens, except those for taxes, also on crops grown
on rented premises for rent of the current year.

BANKING AND COMMERCIAL LA W S— ALASKA

Limitations. Notes and stated accounts, six years; open accounts,
tbree years; sealed instruments, real actions, and motions against
officers, ten years; judgments, twenty years; actions on the case, one
year. Bar created by statute can only be removed by a partial pay­
ment, made on the contract before the bar is complete, or by an uncon­
ditional promise in writing.- If anyone entitled to bring an action,
or make an entry on land, or defense founded on title to real estate,
be at the time such right accrues, within the age of twenty-one years,
or Insane or imprisoned on a criminal charge for a term less than life,
be shall have three years, or the period allowed by law, for bringing
gucb action. If the period allowed by law be less than three years, after
the termination of such disability to bring such suit, etc., but no action
oan be commenced after twenty years. Statutes of limitation apply
to married women's separate estates. Actions founded on a promise
in writing not under seal, or for trespass to person or property, must
be brought within six years. Statutes of limitation are made appli­
cableto equitable aswell as legal demands, but do not run against direct
trusts. Any agreement or stipulation to shorten the period prescribed
by law for the bringing of any action is void. Actions seeking relief
on the ground of fraud where the statute created a bar. the cause of
action begins to run upon discovery of the Iraud by aggrieved party.
No promise or acknowledgment is sufficient to remove the bar to a
suit, except a partial payment made upon the contract by the party
sought to be charged before the bar is complete, or an unconditional
promise in writing, signed by the party to be charged thereby.
Married Women. (See Husband and Wife.)
Mortgages are executed and acknowledged in the same manner as
deeds. May be foreclosed by bill in equity, or if there be a provision
to that eifect, by sale under power, upon such default as authorized
a sale. All mortgages are void against creditors or purchasers without
notice, unless recorded. Mortgages operate as notice from day of
delivery to probate judge for record. There is no fixed time within
which they shall be recorded. Homestead realty cannot be mort­
gaged or otherwise aliened without the voluntary signature and assent
of wife, evidenced by acknowledgment, upon private examination
separate and apart from the husband, and certified. All mortgages
must be in writing, signed by the mortgagor. Payment of mortgage
debt made before or after maturity of debt, revests in the mortgagor,'
or bis assigns, the title to the real or personal property mortgaged. It
made In the lifetime of the mortgagor; if made after his death, such
payment revests title to personal property in the personal representa­
tive, and title to reality in the heirs, devises, or legatees of the mortga­
gor. Chattel mortgages must be in writing. When the mortgagor
Is sued by the mortgagee for possession of the mortgaged property,
be may defend by showing payment of the debt, or part payment ana
a tender of the balance, or may pay it after judgment.
Negotiable Instruments. Must be payable In money and must
oontain an unconditional promise to pay a sum certain on demand or
at a fixed or determinable future time; must be payable to a specified
person or bearer; may be in installments and contain provision that
on any default the whole shall become due; with exchange fixed or
current rate, interest, and attorney’s fees for collection; may authorize
sale of collaterals- but cannot authorize confession of judgment if it
reads, ‘‘I promise to pay” all signers are jointly and severally liable;
may be payable at fixed time after date or sight, or after specified
certain event* but not upon a contingency; can waive exemption from
execution; need not specify value given nor place where drawn or
payable'; if issued, accepted, or endorsed when overdue it is payable
on demand; may be payable to two or more payees jointly, or one or
more of several payees, or to the estate of a deceased person; absence
or failure of consideration a defense against one not a holder in due
course and partial failure a defense pro tanto. One not a party to
instrument placing a signature in blank before delivery becomes an
endorser. Every ¡endorser engages that on due presentment it shall
be honored or that he will pay the amount to holder or any subsequent.
endorser vfho may be compelled to pay; no days of grace; when
maturity falls on Sunday or holiday payment is due on next business
day; if due on Saturday must be presented on next business day, tgit
if payable on demand holder may present same before noon on Saturdayt Fraud and circumvention in procuring execution or instrument
is a defense against any holder.
Powers of Attorney. Powers, of attorney or other instruments
conferring authority to convey property must be proved or acknowl­
edged in the same manner and must be received as evidence to the
same extent as ^conveyances (see Conveyances), and must .be executed
as conveyances.- A power of attorney to relinquish dower must be
executed by husband and wife jointly. Her signature must be
acknowledged as required for conveyances of land.
Presentment. Is not necessary to charge one primarily liable
except in case of bank notes; if payable at special place ability and
willingness to pay it there at maturity is equivalent to a tender; if
not on demand it must be presented on day it falls due, if on demand
then within a reasonable time after its Issue, except a bill of exchange
must be presented within reasonable time after its last negotiation.
Probate Law. A court of probate, consisting of one judge, is
established for each county in the State. This court has jurisdiction
of the probate of wills, of granting letters testamentary and of admin­
istration, and the repeal or revocation of the same;>of the settlements
of accounts of executors and administrators, of the sale and disposition
of the real and personal property belonging to, and the distribution of.
Intestates’ estates. Also of the appointment, removal, and settlements
of guardians for minors and persons of unsound mind, the binding out
of apprentices, the allotment of dower, and the partition of land belong­
ing to joint owners. A court of probate must be held at the court
house of each county on the second Monday of each month, and the
judge may bold special or adjourned terms whenever necessary, but
such court must at all times be considered open, except on Sundays.
It also keeps a record of deeds, mortgages, and Instruments entitled
to record.
Promissory Note. Must be unconditional promise in writing to
pay on demand or at fixed or determinable time a sum certain in money
to order or bearer, and where drawn to maker's own order is not com­
plete until endorsed by him; may be in installments.
Protest. (See Negotiable Instruments.)
Protest of Foreign Bills. May be made by notary public or by
any respectable resident of the place in presence of two or more credible
witnesses; bill of exchange does not operate to assign funds in hands
of drawee and he is not liable unless he accepts.
Replevin. Writ of replevin lies to recover property in custody of
an officer of the law, and is limited to this. The action of detinue
lies to recover personal property in all other instances.
Sales in Bulk; Sales of all or substantially all of stock of mer­
chandise except in regular course of trade is prima facia fraudulent
and void against creditors unless they are notified in writing prior to
the sale in manner prescribed by statute.
Taxes become due on October 1st, and delinquent on the 31st of
December of the year for which they were levied, and the lands may
be sold by certain proceedings in the probate court commenced in
the month of March following. Rate of taxation is* sixty-five per
cent on each $100.00, for State purposes. County may levy a like
amount. Municipalities may levy a tax not to exceed one half of
one per cent. The purchaser of lands sold for delinquent taxes
receives from the collector a certificate of purchase, containing a

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1701

description of the property, the date and amount of assessment,
taxes, costs, fees, etc., which after the expiration of two years from
the date of the sale is exchangeable for a deed from the probate
fudge—which is prima facie evidence of title. Lands sold for taxes
may°be redeemed within two years by the owner, mortgagee, or any
person having a beneficial interest therein by depositing with the
probate judge ofAhe county in which the lands were Sold, the amount
of purchase money, with Interest at 15 per cent per annum, and ail
taxes which have accrued subsequent to the sale, and Interest thereon,
at 8 per cent per annum; also all costs and charges. Whenever land
is sold tor State or county taxes, and from any cause such sale is in­
valid to pass title to purchaser, sale operates as transfer to purchaser
of lien of state or county, or the property for payment of taxes for
which sold. All cotton factories or cotton mills which shall be
constructed in this State within five years shall be exempt from
taxation for a period of ten years, prodded such mills represent an
investment of $50,000.
Wills. All wills of real or personal property must be in writing
signed by the testator and declared his last will and testament in the
presence of two witnesses who must sign as witnesses in the presence
of testator and each other. Unwritten will of personal property valid
only when the property does pot exceed $500 in value, and must be
made during last sickness by testator at his home. Persons present
must be called on to witness that it is testator’s will and must be
reduced to writing by one of the witnesses within six days. Minor
over eighteen may make a will of personal property. No will effective
until probated. May be contested in probate or chancery court.

SYNOPSIS OF

T H E L A W S OF A L A S K A
R E L A T IN G TO

BANKING AND COMMERCIAL USAGES

Prepared and Revised by O. D. Oochban. Attorney at Law, Nome.
(See Card in Attorneys’ List.)
Acknowledgments. (See Deeds.)
Actions. The distinction between actions at law and suits In
equity and all forms of pleading heretofore existing in actions at law
and suits in equity are abolished, and there is but one form of action,
denominated a civil action, for the enforcement or protection of pri­
vate rights and the redress or prevention of private wrongs. Every
action must be prosecuted in the name of the real party in interest,
except that an administrator or executor, a trustee of an express trust,
or a person expressly authorized by statute may sue without joining
With him the person for whose benefit the action is prosecuted; but
the assignment of a thing in action not arising out of contract Is not
authorized.
Affidavits. An affidavit or deposition taken out of Alaska, other­
wise than upon commission, must be authenticated as follows: l .
It must be certified by a commissioner appointed by the governor of
Alaska to take affidavits and depositions in the state, territory, district
or country where taken; or, 2, it must be certified by a judge of a
court of record having a clerk and a seal to have been taken and sub­
scribed before him at a time and place therein specified, and the
existence of the court, the fact that such judge is a member thereof,
and the genuineness of his signature must be certified by the clerk
of the court, under the seal thereof. In all affidavits or depositions
witness should speak In the first person.
Aliens. Any alien who Is a bona fide resident of the United States,
or who has declared his intention to become a citizen, or whose rights
are secured by treaty, may acquire and hold lands upon the same terms
as a citizen. Any alien may acquire lands by inheritance or in the
ordinary course of justice in the collection of debts, and may acquire
and enforce Hens upon lands, but such lands must be sold within ten
years. Any alien may also acquire and hold lots or parcels of land
m any Incorporated or platted city, town, or village, or in any mine
or mining claim, but is not authorized to acquire title from the United
States to any of the publlo lands.
Arrest. The defendant may be arrested in the following civil
actions: 1. For the recovery of money or damages when the de­
fendant is about to remove from the district with intent to defraud
his creditors; for an injury to person; or for willfully injuring or wrong­
fully taking, detaining, or converting property. 2. For a fine or
penalty; or for money or property embezzled or fraudulently mis­
applied or converted to his own use by a public officer, or by an attor­
ney, or by an officer or agent of a corporation in the course of his
employment as such, or by any agent, broker, or other person la a
fiduciary capacity or for misconduct or neglect in office or in a profes­
sional employment. 3. To recover the possession of personal
property unjustly detained, when the property or any part thereof
has been concealed, removed, or disposed of, so that it cannot be
found or taken by the marshal, and with intent that it should not be
so found or taken, or with the Intent to deprive the plaintiff of the
benefit thereof. 4. When the defendant has been guilty of fraud in
contracting a debt, or Incurring the obligation for which the action to
brought, or in concealing or disposing of the property for the taking,
detention, or conversion of which the action is brought. 5. When
the defendant has removed or disposed of his property, or is about to
do so, with intent to defraud his creditors.
Attachment. The plaintiff, at the time of issuing the summons
or afterwards, may have the property of defendant attached laa
n
action upon a contract, express or implied, for the direct payment of
money, and, 1, which is not secured by mortgage, Hen, or pledge upon
real or personal property, or If so secured, when the security has been
rendered nugatory by the act of the defendant; or, 2, against a non­
resident defendant. The writ Issues whenever the plaintiff, or any­
one in his behalf, files an affidavit showing that defendant is Indebted
to plaintiff (specifying the amount of Indebtedness over and above all
legal set-offs or counter-claims) upon a contract, express or implied,
for the direct payment of money; that the payment has not been
secured by mortgage, lien, or pledge upon real or personal property;
and that the sum for which attachment Is asked is an actual, bona fide,
existing debt due and owing from plaintiff to defendant; and that the
attachment is not sought nor the action prosecuted to hinder, delay,
or defraud any creditor of the defendant. Plaintiff must also file a
n
undertaking, with one or more sureties, in a sum not less than $100.
and equal to the amount for which he demands judgment, conditioned
that plaintiff wUl pay all costs adjudged and all damages sustained
by reason of the attachment If the same be wrongful or without suffi­
cient cause, not exceeding the amount specified.

1702

BANKING AND COMMERCIAL L A W S — ALASKA

Chattel Mortgages. Any interest In personal property, capable
of being transferred, may be mortgaged; but the mortgage is void as
against creditors and subséquent purchasers and incumbrancers in
good faith and for value, unless possession of the property be delivered
to and retained by the mortgagee or the mortgage provide that the
property may remain in the possession of the mortgagor and be ac­
companied by the affidavit of all the parties thereto that the same is
made in good faith to secure the amount named therein, and without
design to hinder, delay, or defraud creditors, and be acknowledged
and filed. The mortgage must be acknowledged by the mortgagor
as a conveyance of real property is and be filed In the office of the
recorder of the precinct where the mortgagor resides and of the pre­
cinct where the property is. Within thirty days next preceding the
expiration of one year from the filing, a true copy of the mortgage,
with a verified statement of the interest of the mortgagee in the prop­
erty at the time the same is renewed, must be filed in the office where
the original was filed, and the lien is thereby extended another year.
Chattel mortgages are foreclosed in the same manner as mortgages
and Hens upon real property, but a clause may be Inserted in a mortgage
authorizing the marshal to execute the power of sale therein granted
to the mortgagee.
Corporations. Domestic Corporations. Three or more adult per­
sons, bona fide residents of the district, may form a corporation for
the following purposes; To 'construct, own, and operate railroads,
tramways, street railways, wagon roads, flumes, and telegraph and
telephone lines in Alaska; to acquire, hold, and operate mines in
Alaska; to carry on the fishing Industry in Alaska and the waters
adjacent and contiguous thereto; to construct and operate smelters,
electric and other power and lighting plants, docks, wharves, elevators,
warehouses, and hotels in Alaska; and to carry on trade, transporta­
tion, agriculture, lumbering, and manufacturing In Alaska.
Foreign Corporations. Every corporation or joint stock company
organized under the laws of the United States or any state or territory
shall, before doing business within the district, file In the office of the
secretary of the district and In the office of the clerk of the district
court for the division wherein it Intends to carry on business a duly
authenticated copy of its charter or articles of incorporation, and also
a statement verified by the oath of its president and secretary and
attested by a majority of Its board of directors. Thereafter such
statement must also be so filed within thirty days after July first of
each year.
Deeds. A conveyance of lands, or of any estate or Interest therein,
may be made by deed, signed and sealed by the person from whom
the estate or Interest is intended to pass, and acknowledged or proved,
and recorded, without any other act or ceremony. A quit-claim deed
passes all the estate which the grantor could convey by deed of bargain
and sale. No covenants are implied in any conveyance. The term
“heirs,” or other words of inheritance, are not necessary to create or
convey an estate in fee simple. Husband and wife may, by their
joint deed, convey the real estate of the wife, In like manner as she
might do by her separate deed If she were unmarried. A married
woman residing in the district, joining her husband in a deed, must
acknowledge that she executed such deed freely and voluntarily.
When a married woman not residing in the district joins her husband
In conveying real estate situate in the district, the conveyance has the
same effect as if she were sole, and thé acknowledgment or proof of the
execution may be made the same as if she were sole. Within the
district deeds must be executed in the presence of two witnesses, who
shall subscribe their names as such ; and the person executing a deed
may acknowledge the execution before a judge, clerk of the district
court, notary public, or commissioner within the district, and the
officer taking the acknowledgment must Indorse thereon a certificate
of acknowledgment and the true date of making the same under his
hand. .
Depositions. The testimony of a witness. In the district, may
be taken by deposition, in an action, at any time after the service of
the summons or the appearance of the defendant, and in a special
proceeding after, a question of fact haà arisen, when, 1, the witness is
a party to the action or proceeding, by the opposite party; 2, the
witness's residence is more than one hundred miles from tbe place of
trial; 3, the witness is about to go more than one hundred miles beyond
the place of trial; 4, the witness is too infirm to attend the trial; or, 5,
the testimony is required upon a motion, or in any other case where
the oral examination of the witness is not required.
The testimony of a witness, out of the district, may be taken by
deposition, by commission issued, upon five days’ notice to the other
party, by the clerk of the court, or justice of the peace In a cause in his
own court, to a person agreed upon by the parties, or, if they do not
agree, to a judge, justice of the peace, notary public, or clerk of a
court selected by the officer Issuing the commission.
The amount of the commissioner’s fees should be indorsed upon the
deposition.
Descent and Distribution. The real property of an intestate
descends as follows: 1. In equal shares to his or her children and
to the issue of any deceased child by right of representation; and
If there be no child of intestate living at the time of his or her death,
to all his or her other lineal descendants; and if all such descendants
are in the same degree of kindred to the intestate, they take equally;
otherwise, by representation. 2. If Intestate leave no lineal descend­
ants. to his wife; or if intestate be a married woman, to her husband;
and if intestate leave no wife nor husband, to:his or her father. 3.
If intestate leave no lineal descendants, neither husband nor wife,
nor father, such real property descends in equal shares to his brothers
and sisters, and to the issue of any deceased brother or sister by
right of representation; but if Intestate leave a mother, she takes
an equal share with such brothers and sisters. 4. If Intestate leave no
ilneal. descendants, neither husband nor wife, nor father, brother,
nor sister, such real property descends to his mother, to the exclusion
of the issue of deceased brothers and sisters. 5. If intestate leave
no lineal descendants, neither husband nor wife, nor father, mother,
brother, nôr sister, such real property descends to his next of kin
la equal degree, excepting that when there are two or more collateral
kindred in equal degree but claiming through different ancestors,
those who claim through the nearest ancestor are preferred. 6. If
intestate leave one or more children, and the issue of one or more
deceased children, and any of such surviving children die under
age without having been married, all such, real property that came
tansuch deceased child by Inheritance from such intestate descends
in equal shares to the other children of such Intestate and to the issue
of any other children who have died, by right of representation. But
if all the other children of Intestate be dead, and any of them have
left issue, such rear property so inherited by such deceased child
descends to all the issue of such other children of the intestate in
equal shares, if they are in the same degree of kindred to such deceased'
child; otherwise, they take by right of representation. 7. If Intes­
tate leave no lineal descendants or kindred, such real property escheats
to the United States.
Dower ! and Curtesy. The widow of every deceased person is
entitled to dower, or the use during her natural life of one-third part
In value of all the lands whereof her husband died seized of an estate
of inheritance.
When any man and his wife are seized in her right of any estate of
inheritance in lands, the husband, on the death or his wife, holds the'
lands for his life as tenant thereof by the curtesy, altbougn such
husband and wife may not have had issue born alive.

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Evidence. No person may be excluded as a witness on aooount oi
being a party or interested In the event of an action or proceedings
having been convicted of a crime, or his opinions on matters of religious
belief. Persons of unsound mind and children under ten years of age
who appear inoapable of receiving just impressions of the fact respect­
ing which they are examined or of relating them truly may not be
witnesses. An attorney may not, without his client’s consent, be
examined as to communications made by his client to him or his advice
thereon. A priest may not, without the consent of the person making
the confession, be examined as to any confession made to him in his
professional capacity, in the oourse of discipline enjoined by the church
to which he belongs. A physician or surgeon may not, against the
objection of his patient, be examined, in a civil action, or proceeding,
as to information aoquired in attending the patient which was neces­
sary to enable him to prescribe or act.
Executions. (See Judgment and Execution.)
Executors and Administrators. When a will is proven letters
testamentary are Issued to the persons therein named as executors',
or to such of them as give notice of their acceptance of the trust and
are qualified. Administration is granted as follows: 1. To’ the I
widow or next of kin, or both, in the discretion of the court; 2, to one
or more of the principal creditors; or, 3, to any other person competent
and qualified whom the court may select. If deceased were a married
woman administration shall in any case be granted to the husband,
if qualified, and he apply therefor. Claims are paid in the following
order: 1. Funeral charges. 2. Taxes due the United States.
3. Expenses of last sickness. 4. All other taxes. 5. Debts pre­
ferred by the laws of the United States. 6. Debts which at the death
of the deceased were a lien upon his property, in the order of 'the
priority of the liens. 7. Debts due for wages earned within ninety
days immediately preceding death of decedent. 8. All other claims.
Exemptions. 1. Earnings of judgment debtor, for personal ser­
vices rendered within sixty days next preceding the levy of execution
or attachment, when necessary for the use of his family supported
in whole or in part by hiB labor. 2. Books, pictures, and musical
instruments owned by any person, to the value of $75. 3. Necessary
wearing apparel owned by any person for the use of himself or family, I
but watches or jewelry exceeding $100 in value are not exempt.
4. The tools. Implements, apparatus, team, vehicle, harness, or
library necessary to enable any person to carry on the trade, occu­
pation, or profession by which such person habitually earns his living,
to the value of $500; also sufficient quantity of food to support such
team, If any, for «lx months; the word “team” being construed to
include not more than one yoke of oxen, or a span of horses' or mules,
or two reindeer, or six dogs. 5. The following property, if owned
by the head of a family and in actual use or kept for use,by and
for his family, or when being removed from one habitation to'another I
on a change of residence: Ten sheep, with one year's fleece or the I
yarn or cloth manufactured therefrom; two oows and five swine;
household goods, furniture, and utensils to the value of $300; also
food sufficient to support such animals. If any, for six months, and
provisions actually provided for family use and necessary for the
support of such person and family for six months. 6. The seat
or pew occupied by the head of a family or his family in a place of
publio worship. 7. All property of any public or municipal corpora­
tion. No article, or the proceeds derived from its sale or exchange.
Is exempt from execution on a judgment recovered for its price.
Garnishment. (See Attachment.)
Homestead. The homestead of any family, or the proceeds thereof, [
is exempt. Such homestead must be the actual abode of, and owned
by, such family or some member thereof, and not exceed $2,500 in value i
nor exceed 160 aores In extent, if not located In a town or city laid
off into blocks or lots; or If’located in any such town or city, one-fourth
of an acre. This exemption does not apply to decrees for the fore­
closure of any mortgage properly executed; but If the owners of such j
homestead be married, the mortgage must be executed by husband ;
and wife.
Interest. The legal rate of interest is 8 per cent, but on contracts
interest at the rate of 12 per cent may be charged by express agree­
ment of the parties. If usurious Interest has been received or collected,
the party paying the same, or his legal representatives, may, by action
brought within two years, recover double the amount of such 'nterest. j
If it is ascertained in any action upon contract that an unauthorized j
rate of Interest has been contracted for, judgment must be rendered :
against the defendant for the amount due, without interest, and :
against the plaintiff for costs. If the rate contracted for is 8 per '
cent or less, the debtor may also agree to pay the taxes upoh the !
debt, credit, or mortgage.
Judgment and Execution. A judgment Is docketed imme­
diately after entry. At any time thereafter while execution may
issue a certified transcript of the docket may be filed in the office
of the recorder of any recording district, and from the date of docketlng a judgment or transcript thereof the judgment is a lien upon
all the real property of the defendant within the recording district
or districts where docketed, or which he may afterwards acquire :
therein during the time an execution may issue. If no execution
issues within ten years the Hen expires, but is renewed if afterwards
leave Is given to issue execution and a transcript of the docket of
the order docketed with the recorder.
Execution may issue at any time within five years from the entry
of the judgment, and thereafter on order of the court made on motion :
of the party in whose favor the judgment was given. Such motion
must be subscribed and verified as a complaint, and summons must
be served upon the judgment debtor or his representatives, to which
he or they may demur or answer. The order made must be dock- '
eted as a judgment. Execution may be against the property of the
judgment debtor, his person, or for the delivery of the possession
of real or personal property or such delivery with damages. Execu- j
tion from the district court is returnable within sixty days; from the
commissioner’s court within thirty days. Until a levy property is l
not affected by the execution.
Licenses. (See Taxes.)
Liens. Every mechanic, artisan, machinist, builder, contractor,
lumber merchant, laborer, teamster, drayman, and other person [
performing labor upon or furnishing Material of any kind, to be used
in the construction, development, alteration, or repair, either in whole
or in part, of any buUding, wharf, bridge, flume, ditch, mine, tunnel, (
fence, machinery, or aqueduct, or any structure or superstructure,
has a Hen upon the same for the work or labor done or material fur- !
nished at the instance of the owner of the building or other improve- 1
ment or his agent; and every contractor, sub-contractor, architect, ,
builder, or other person having charge of the work, in whole or la
part. Is, for this purpose, deemed the agent of the owner,
Limitations. ' Civil actions must be commenced within the 1
following periods after the Cause of action accrued: Within tea
years—action for the recovery of real property, or the possession i
thereof; upon a judgment or decree of any court of the United States, :
or of any state or territory within the United States; upon' a sealed
Instrument. Within six years—action upon a contract or liability,
express or implied, except judgment or sealed Instrument; upon a
liability created by statute, other than a penalty or forfeiture; for
waste or trespass upon real property; for taking, detaining, or injuring |
personal property; including an action for the specific recovery thereof.

BAN KIN G ^ N D COMMERCIAL L A W S — ARIZON A

Within three years—action against a marshal, ooroner. or constable,
upon a liability incurred by the doing of an act In his official capacity
orIn virtue of his office, or by the omission of an official duty. Including
the non-payment of money collected upon execution, but not an
action for an escape; action upon a statute for penalty or forfeiture,
where the action is given to the party aggrieved, or to such party
and the United States, except the statute prescribe a different limita­
tion. Within two years—action for libel, slander, assault, battery,
■eduction, false Imprisonment, or for any Injury to the person or
rights ot another not arising on contract; upon a statute foraforletture of penalty to the United States, within one year—action
against the marshal or other officer for the escape of a person arrested
or imprisoned on dvll process; upon a statute for the penalty given
in whole or In part to thè person who will prosecute, but If not com­
menced within one year by private party may be within two yean
by the United States.
Married Women. The property and pecuniary rights of every
married woman at the time of marriage, or afterwards acquired
by gift, devise, or Inheritance, or by her own labor, are not subject
to the debts or contracts of her husband, and she may manage, sell,
convey, or devise the same by will to the same extent and In the
same manner that her husband can property belonging to him. For
civil Injuries damages may be recovered from a married woman
alone, and her husband Is not responsible therefor. Contracts may
be made by a wife, and liabilities Incurred, and the same enforced
by or against her to the same extent and In the same manner as if
die were unmarried. All laws which Impose or recognize civil disa­
bilities upon a wife which do not exist as to the husband are repealed.
Wife may record list of her property and such list is prima facie
evidence of her separate ownership, and property not so reg­
istered Is deemed prima facie the property of the husband.
Neither husband nor wife Is liable for the debts or liabilities of the
other incurred before marriage. Husband and wife may make convey­
ances and transfers and create liens between themselves, and either
may constitute the other his or her attorney In fact. A woman
beoomes of age at twenty-one or upon being married according to law.
Mortgages. Mortgages are executed, acknowledged, and recorded
in the same manner as deeds. No covenant is Implied for the
of the sum Intended to be secured. Record of assignment
r yment
hot notice to the mortgagor, his heirs, or personal representa­
tives. Mortgage may be discharged by entry in margin of record
signed by mortgagee or his personal representative or assignee and
witnessed by the commissioner or deputy, or by certificate executed
and acknowledged as other conveyances. Foreclosure Is by action
of an equitable nature In which a deficiency judgment may be had.
Notes and Bills of Hxchange. On all bills of exchange ind
all negotiable promissory notes, orders, and drafts payable at a
future day certain within the distrlot, grace is allowed; but grace
Is not allowed on bills of exchange, notes, or drafts, payable at sight
or on demand.
Records. ' An unrecorded conveyance of' real property Is void
as against any subsequent innocent purchaser In good faith and for
a valuable.consideration whose conveyance Is first duly recorded.
A commissioner is 'ex-officio recorder of a recording district, the
boundaries of which fire fixed by the court. Conveyances of lands
not in any recording district are recorded with the clerk of that divi­
sion of the district court within the limits of which such lands are
situated.
Replevin. The plaintiff, at any time after the commencement
of an action to recover the possession of personal property and before
judgment, may claim the Immediate delivery of such property upon
filing an affidavit showing that he is the owner of the same or entitled
to the possession thereof; that the property Is unlawfully detained
by defendant; the alleged cause of detention; that the same has not
been taken for a tax assessment or fine, pursuant to a statute, or
seized under an execution or attachment against the property of
the plaintiff; or, If so seized, that It Is exempt; and the actual value
of the property ,
Service. (See Actions.)
Supplementary Proceedings. (See Judgment and Execution.)
Taxes. Every person or corporation prosecuting or attempting
to prosecute any of the following lines of business within the district
must first apply for and obtain license so to do from the district
court or a subdivision thereof, and pay per annum for such license
tor the respective lines of trade and business as follows: Salmon
canneries, 4 cents per oaae; salmon salterles, 10 cents per barrel;
fish oil works, 1 0 cents per barrel: fertilizer works. 2 0 cents per ton;
freight and passenger tranportatlons lines, propelled by mechanical
ower on inland waters and ocean and coastwise vessels doing local
usiness for hire, $1 per ton on net tonnage* railroads, $ 1 0 0 per
mile; tramways, $ 1 0 per mile; saw-mills, 1 0 cents per thousand feet
on lumber sawed; quartz mills, $3 per stamp; mercantile establish­
ments and manufactories doing a business of under $4,000 pep annum,
$1 0 , and in proportion to the amount of business done to $500 for
establishments doing a business ot $1 0 0 ,0 0 0 per annum; in other lines
of trade and business the amount is fixed for each and ranges from
$10 to $500.
Wills. Every person of twenty-one years of age, of sound mind,
may dispose of all his or her property by will, saving a widow’s dower
and a husband’s rights as tenant by the curtesy. Will must be In
writing, signed by the testator, or under his direction, in his presence,
and attested by two or more competent witnesses subscribing their
names in the presence of the testator. A will by an unmarried person
Is revoked by his subsequent marriage. Children or descendants
of children not named or provided for in the will take as if testator
had died Intestate. A mariner at sea or soldier in military service
may dispose of his personal property as at common law. Proof
of nuncupative will must be made within six months, and the words
•r their, substance reduced to writing within thirty days after they
are spoken. A person owning property in, but not an inhabitant
of, the district may devise or bequeath the same according to the
laws of his domicile. If such will be probated without the district,
copies of the will and the probate thereof, certified by the clerk of
the court In which it was probated, with the seal of the court affixed
thereto, If there be a seal, together with a certificate of the chief
Judge or presiding magistrate, that the certificate Is in due form,
and made by the clerk or other person having the legal custody
of the record, may be recorded, admitted In evidence, or contested
and annulled as if executed and proved within the district,


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Federal Reserve Bank of St. Louis

1703

SYNOPSIS OF

THE LAWS OF ARIZONA
RELATING TO
BANKING AND COMMERCIAL USAGES

Revised by C.

Attorneys at Law.
Flagstaff, Arizona.
Accounts. When stated draw Interest; when action Is upon
itemized account and affidavit of party, his agent or attorney is
attached, stating that such ''account is, within affiant’s knowledge,
just and true, that It Is due, and that all just and lawful offsets,
claimants, and credits have been allowed," Is prlma facie evidence,
unless one day before trial, defendant files written denial of any Item
under oath.
Acknowledgments. The form of an ordinary certificate of ac­
knowledgment shall be substantially as foliows:
“ State of Arizona,
)j,m
County of.............................................................................)“
This instrument was acknowledged before me this...........day
o f.................. A. D .................... . by (if by a natural person or persons
here insert name or names; if by a person acting in a representative
or official capacity, or as attorney in fact, then insert name of person
as executor, attorney in fact, or other capacity; if by an officer or
officers of a corporation, then insert name or names of such officer
or officers as the president or other officer of such corporation, naming
it).
A........................................ B .........................................
Notary Public.
(Or other officer)
(My commission expires.......................................)’’
Every instrument affecting real property in this state executed,
acknowledged and certified in any other state or territory in accord­
ance with the laws of such state or territory, shall be valid and en­
titled to record as if executed in accordance with the laws of this
state.
Actions. Distinction in forms between law and equity are abol­
ished. Pleadings are: Complaint and answer, and In some cases a
reply.
Administration of Estates. Lie in Superior Court. No public
administrator. Where person dies Intestate letters shall Issue.
Affidavits. May be taken before any officer authorized to take
acknowledgments.
Allens. Unless rights are secured by treaty cannot hold land In
the state, may acquire by inheritance, or in ordinary course of jus­
tice in the collection of debts; may acquire liens on real estate, may
lend money and secure same on real estate, but title so acquired must
be sold within, five years; may acquire patented mines and hold
stock in domestic corporation owning unpatented .mines.
The laws provide that the laws or the state pertaining to aliens
shall not be construed as to conflict in any manner with any rights
existing under and by virtue of any treaty of the United States
with any other country.
Appeals. Appeals are allowed from justice of peace to superior
court in certain cases and from superior court to supreme court
where amount involved is $ 2 0 0 or over.
Arbitration. There are statutory provisions which are not
exclusive of the common law arbitration.
Arrest. Abolished In civil’ cases, debtor fraudulently removing
property out of territory or concealing it may be prosecuted criminally.
Attachment. Writ' will Issue on affidavit showing: 1. That
defendant Is indebted to plaintiff upon a contract, express or implied,
for the direct payment of money and that such contract was made or
is payable In this Territory, and that the payment of the same has not
been fully secured by mortgage, lien, or pledge of personal property,
or if originally so secured, that' such security has, without any act of
plaintiff or the person to whom the security was given, become value­
less, and shall specify the character of the indebtedness, that the same
is due to the plaintiff over and above all legal set-offs or counter-claims,
and that demand has been made for the payment of amount due: or.
2. That defendant is indebted to plaintiff, stating amount and char­
acter of debt; that same is due and payable over and above all legal
set-offs and counter-claims, and that defendant Is a non-resident of
this Territory or is a foreign corporation doing business in this Terri­
tory; or, 3. That an action is pending between the parties, and that
defendant is about to remove his property beyond the jurisdiction of
the court to avoid payment of judgment; and, 4. That the attach­
ment Is not sought for a wrongful or malicious purpose, and that the
action Is not prosecuted to hinder or delay any creditor of defendant.
5. No such attachment shall issue until suit has been duly instituted,
but it may be Issued in a proper case either at the commencement of
the suit or at any time during its progress. 6 . The writ may issue,
although plaintiff’s debt or demand be not due under specified facts of
Intent to defraud; no final Judgment shall be rendered until such debt
or demand shall become due. Writ may Issue at or after action began
upon plaintiff or some one in his behalf filing the affidavit, and upon
filing a bond with two sureties in an amount equal to amount sued for
Sureties can be compelled to justify upon notice. When more than
one attachment is levied on same property writs take priority accord­
ing to time of levy. (See Liens. Garnishment.)
Banks—Savings and Loan. May be Incorporated to loan and
Invest property. May hold lot and building In which business is
carried on to value of $1 0 0 ,0 0 0 ; such as may accumulate on good
I faith loans and such personal property' as may be required In transB. W ilson & G erard T , W all ,

1704

BANKING AND COMMERCIAL L A W S— ARIZONA

acting: its business. 'To purchase and convey evidence of debt except
Are the Supreme Court of the State, the U. S. district court
national, territorial, and municipal bonds must bave a capital of forCourts.
the District of Arizona; one superior court for each County, except
$100,000. Married women and minors may transact business with in counties
having
certain population in which event two superior
such banks. Are required to have license and are examined by the courts, justices of over
the peace, police courts, recorders of cities. The
bank examiner. Provisions are made for the contents of the charter. superior court of the
several counties is a court of general jurisdiction
Bills and Notes. The negotiable Instrument code adopted by the both Civil and criminal. It has both original and appellate jurisdiction'
American Bar Association Is In force. Joint obligor may be released Its original jurisdiction extends to all civil cases where the amount
involved exceeds $ 2 0 0 exclusive of interest, and in all cases involving
without releasing others. (See Holdings.)
possession of real estate. Justice courts have general
Bonds. Any standard surety company, organized under laws of the title to or
when amount in controversy does not exceed $2 0 0 .0 0
united States or of any state, may execute bonds In judicial proceed­ jurisdiction
except
when
title
to real estate is involved. (See Jurisdiction.)
'
ings within the state when they have complied' with license laws.
Creditors’ Bills. No statutory provisions.
(See Guaranty Companies.)
Days
of
Grace.
None.
Chattel Mortgage. To be valid against others than the parties
Depositions. May now be taken either upon oral examination
thereto, chattel mortgage must set out the residence ot the mortgagor
and the mortgagee, the rate ot interest to be paid and time and plaoe of and cross-examination or upon written interrogatories and cross
payment ot the debt secured, and be accompanied by the affidavit of interrogatories, as is generally provided.
both mortgagor and mortgagee that the mortgage is bona fide and
Descent and Distribution. (See Savings Banks.) The law o!
made without design to defraud or delay creditors. Immediate community
property prevails. The separate estate of an intestate,
delivery of the mortgaged property must be made to the mortgagee when he or she
shall die leaving surviving no husband or wife, shall
and the change ot possession must be actual and continued unless the descend as provided.
When an intestate leaves surviving a wife or
mortgage or a true copy thereof shall be forthwith deposited and filed husband another method
provided. Children of the intestate
In the office ot the recorder ot the county where the property shall brothers, sisters', uncles andis aunts,
per capita. All property
then be situated. Removal sale, or other disposition ot mortgaged belonging to the community estate oftake
husband and wife shall go
property without consent of mortgagee entitles mortgagee to Imme­ to the survivor, If the deceased spousethe
have no child or children; it
diate possession of It, and such removal, transfer, or sale, or subsequent the
deceased have a child or children, his or her surviving spouse will
encumbrance Is felony. If mortgagee p’ermits mortgaged property to take one-half, and the other half goes to such child or children. The
be removed to another county, he shall within one month record his
property always passes charged With the debts against
mortgage in such other county. Chattel mortgage may be fore­ community
It. Intermarriage between man and woman to whom a child or
closed In justice court If amount of debt does not exceed 8300; other children
had before been bom, and recognition by the father of such
wise In superior court. Mortgagee may obtain possession of property child or children legitimizes the child or children. Bastards inherit
on default and sell after notice which must be served on owner. Upon
the mother and transmit estates as if legitimate. The statute
stock of goods, wares, and merchandise with continued possession m from
provides for the adoption of heirs. (See Dower, Husband and Wife
mortgagor, void. If copy is filed with recorder, original must be Homestead.)
acknowledged, and copy certified to by county recorder.
Dower. Dower is abolished.
Claim and Delivery. (See Replevin.)
Evidence. The common law rules have not been codified. Parties
Collaterals. No statutory provisions—common law prevails.
may be examined and the other side not concluded thereby. Statute*
of other states and territories purporting to be printed under authority
Community Property. (See Conveyances.)
be read. No one is incompetent to testify because of religious
Conditional Sales. Where title remains In vendor until purchase may
belief. Certified copies of alf records in territory may be read. Certi­
price is paid, void as to persons not parties thereto, and persons fied
copies of records of all notaries may he read. Court may order
without notice, unless subscribed, acknowledged, and filed with Inspection
or copy of documents.
county recorder.
Upon a judgment of superior court, executions may
.Contracts. (See Bills and Notes.) i One or more obligors on a beExecutions.
issued
to
any county. Lien of dates from levy, and if on real prop­
Joint or joint and several Instrument may be released without releasing erty, the description
is endorsed on execution and filed with county
the others, and may be sued separately under certain conditions with
recorder. A range levy may be made upon all of stock under a certain
out releasing the others. Married women may contract as if sole.
brand in same manner as upon real estate. (See Judgment, Liens.)
Conveyances. Conveyances 01 estate In lands for term more than Proceedings supplemental to execution—when returned unsatisfied,
one year shall be by Instrument In writing subscribed by party making creditor is entitled to an order requiring debtor to answer concerning
It, or his agent, duly authorized thereto by writing. A conveyance is his property, but not elsewhere than in the county of his residence.
not effectual against creditors or bona fide purchasers unless recorded Third parties may, upon affidavit, be required to surrender property.
in recorder’s office In county where land is situate. A conveyance Court or judge may order suit brought to determine the denial ol
purporting to convey a greater estate than the grantor has passes only owning or of having property.
the estate that he actually has. A general grant or devise passes the
Exemptions. Every person who is the head of a family, and
fee unless expressly limited to a less estate. All deeds to realty must whose family resides within this state, may Hold as a homestead,
be signed by both husband and wife except as to unpatented mining exempt from attachment, execution and forced sale, real property
claims. Deeds must be signed and must be acknowledged before to be selected, by him or her, which homestead shall be in one com­
some officer authorized to take acknowledgment,, and properly cer­ pact body, not to exceed in value four thousand dollars, upon filing
tified by him to entitle same to registration. The use of the wor*d affidavit designating such homestead in the Office of the County
“grant” or "convey” implies, the following covenants and none Recorder on county where property is situated. Such homestead
other: 1. That previous to the time of the execution of the con­ exempt from date of filing said affidavit. The following property
veyance the grantor has n6 t conveyed the same estate, or any right, shall be exempt from execution, attachment and sale on any process
title or interest therein, to any person other than the grantee. 2 . issued from any court: I. The family bible. 2. A seat or pew in
That such estate is at the time of the execution of such conveyance any house or place of public worship. 3. A lot in any burial ground.
(free from incumbrances. Married women seventeen. years of age 4. Necessary household, table and kitchen furniture, including viz:
and upward may convey their own lands without being joined by 5. The tools or implements of a mechanic or artisan necessary to
their husbands. (See Acknowledgment, Dower, Husband hnd Wife, carry on his trade; etc. 6 . The sewing machine and implements
Homestead.)
of a seamstress actually used in pursuing her vocation. 7. One
watch, one sewing machine, one typewriting machine, and one bi­
Corporation Commission, organized under Chapter 90, First cycle.
7a. Five milch cows. 8 . The camping outfit of every
Session, Laws 1912.. Has general supervision of corporations.
prospector in this state, including his mining tools, saddles and burros.
9. The farming utensils and implements of husbandry of the debtor,
"Corporations in General. Any number of persons may become etc.
10. Poultry not exceeding in value twenty-five dollars. 11.
incorporated for the transaction of any lawful business. Before com­ Two horses
two mules and their harness; one cart or wagon;
mencing any business, they must adopt articles of incorporation one dray or and
one coupe; one hack or carriage for one or two
which shall be signed and acknowledged by them as deeds and be horses or onetruck;
automobile
by the use of which a carman, drayman,
filed in the office,of the Corporation commission at the State Capital
huckster, hackman, teamster, chauffer, or other laborer
and a certified copy thereof filed in the office of the County Recorder, truckman,
habitually earns his living, and one horse with vefdcle or harness or
in each county in the state in which they transact business. The other
used by a surgeon, physician, constable or clergyman
articles of incorporation must contain: 1. The name of corpo­ in theequipment
legitimate practice of his profession, with food for such horses
rators, and its principal place of transacting business. 2. The general or
mules for one month. 12. Fuel necessary for the use of the
nature of the business proposed to be transacted. 3. The amount of debtor
his family for the period of six months. 13. The presses,
capital stock authorized and the times when and conditions upon stones, and
type, cases and other tools and implements used by any
which It is to be paid In. 4. The time of the commencement and person or
copartnership
printing or publishing a newspaper or in
, termination of the corporation. 5. By what officers or persons the conducting any printing in
or by any person hired to use'
affairs of the corporation are to be conducted, and the times at which them; not exceeding twoestablishment
dollars in value; together with
they are to be elected. 6 . The highest amount of Indebtedness or stock in trade not exceedingthousand
hundred dollars in value. 14. The
liability to which the corporation Is at any time to subject itself,which library and philosophical andfour
chemical or other apparatus belonging
must not exceed two-thirds of its capital stock. 7. Whether private to and used for the instruction
of youth in any university, college,
property is to'be exempt from corporate debts. Unless so exempted
of learning or school. 15. All moneys received by or
stockholders are liable for the debts of the corporation in the pro- seminary
to a surviving wife or child upon the life of a deceased husband
ortion which their stock bears to the whole capital stock. Must payable
father, not exceeding ten thousand dollars. 16. All moneys
e published for six days In some newspaper in the county where or
arising from fire or otner insurance upon any property exempt from
the principal business is located. Proof of publication must be filed sale
17- All moneys, relief, or other benefits payable
with the Corporation Commission. Corporations'to endure for to orontoexecution.
be rendered by any police department association, fire
twenty-five years. Corporation must file in office of Corporation Com­ department
association, beneficiary association, or fraternal benefit
mission an appointment of agent who is a bona fide resident of this association, and
any person entitled to assistance therefrom, or to
state for three years prior thereto, on whom all notices and process, any certificate holder
thereof or beneficiary under such certificate, i
Including summons, may be served and constitutes personal service. 18. Any claim for damages
recoverable by any person by reason
Gharges for incorporation: Recorder’s fees, 20 cents folio. Recorder’s of any levy upon or sale under
execution of his exempt personal
fees, certified copy, 2 0 cents folio. Recorder’s fees certificate to copy, property or by reason of the wrongful
taking or detention of such
75 cents. Corporation Commission’s fees, filing cost copy, $10. property by any person, and any judgment
for such
Printers’ fees per inch, publishing articles six days, 80 cents. Corpora­ damages. 19. The earnings of the minor childrecovered
any debtor or
tion Commission’s1fees, filing proof, publishing $3.00. Corporation the proceeds thereof by reason of any liability ofofSuch
not
Commission's fees, filing appointment of agent, $5.00. Where charter contracted for the special benefit of such minor child. debtor
One
provides assessments may be levied on shares to par value (1907). half of the earnings of the wages or salary of any person for20.
his per­
Corporations, Foreign, Before it can transact business It must sonal services rendered at any time within thirty days next
file certified copy of Articles with Corporation Commission and ceding the levy of attachment, garnishment or execution whenpre­
it
county recorder in county of principal place of business, also an
by the affidavit of the debtor or otherwise that such earnings
appointment of agent upon whom a service personal to the corporation appears
are
necessary^
for
the
use
of-the
family
residing
in
this
state,
supported
may be made. <
in whole or in part by him. 21. All arms, uniforms and accoutre­
Corporations, Insurance. May be organized under provision ments required by law to be kept by any person, and also one gun
to be selected by the debtor. 22. All fire engines...........of any fire
peculiarly applicable to insurance companies.
23. AH courthouses, jaUs, etc. The property de­
Corporations, Railroad. Are organized under a statute espe­ department.
clared to be exempt by this chapter shaU not be exempt from at­
cially providing for them.
tachment
or
sale
action brought or judgment recovered for
Corporations. Savings and Loan. (See Banks and Banking.) the purchase priceinof any
such property so long as such property remains
Corporation Stock. Transfer of. Transfer of stock shall not be in the possession of the original purchaser. (See Homestead.Liens.)
vatid, except as between the parties thereto, until the same is regularly
Frauds and Fraudulent Conveyances. Agreements must be in
entered upon the books of the company, so as to show the names of the writing
and signed by the parties to be charged: 1 . By an executor
person by whom and to whom the transfer is made: the number of their or administrator
to answer for the debt of his testator or intestate out
designation of the shares, and the date of the transfer.
of his own estate. 2. By a person to answer for the debt, default or
Costs. Plaintiffs who are non-residents, or those who own no miscarriage of another. 3. To charge any person upon an agreement
property upon which execution may be levied, are required to give made upon consideration of marriage. 4. For sale of real estate or
security for, .within ten days after order made; bonds for, must lease thereof tor a term longer than one year. 5. Those which are
authorize Judgment to be entered against sureties.
not to be performed within the space of one year after the making

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Federal Reserve Bank of St. Louis

BANKING AND COMMERCIAL LA W S— ARIZONA

thereof. Every gift, conveyance, or •assignment, or transfer, or
charge upon any estate, real or personal; any suit commenced on
decree, Judgment, or executions suffered or obtained, or any bond
or other writing given with intent to delay, hinder, or defraud credit­
ors, purchasers or other persons, shall to such persons be void. All
bargains, sales, and other conveyances of lands, tenements, and here­
ditaments, deeds of settlement of marriage, deeds of trust, and mort*
gages, are void as to creditors and subsequent purchasers, without
notice, unless properly recorded. kThe creditor must be a judgment
creditor, and notice must be prior to date of Judgment Hen. A Judg­
ment creditor may be an Innocent purchaser. Every gift, convey­
ance, assignment, transfer or charge made by a debtor which Is not
upon consideration deemed valuable In law shall be void as to prior
creditors, if debtor had not then other property in the State suffi­
cient to pay all his indebtedness. Not on that account, however,
void as to subsequent creditors. No gift of any goods and chattels
shall be valid unless duly acknowledged, or proven and recorded, or
by will, or unless actual possession shall have come to and rehaained
with the donor or some one claiming under him. Fraudulent intent
Isa question of fact and not of law. Conveyance shall not be adjudged
fraudulent merely because not for valuable consideration. If any
person shall do or transact business as a merchant or trader, with the
addition of the words agent, factor, company, or & Co., or words of
like significance or import, and shall fall to disclose the name of his
principal, or partner, or other person who may be Interested in such
business by a sign in letters easy to read, placed conspicuously at the
place where such business Is transacted, or if any person shall transact
business in his own name, without any such addition, all the property,
stock, money and choses In action used or acquired in such business
except such property as may be exempt from execution, shall, as to
the creditors of any such person, be liable for his debts, and be. In all
respects, treated in favor of his creditors as his property. Criminal
prosecution for fraud Is provided. (See Conditional Sale.)
Garnishment. Writ may Issue: 1 . Where writ of attachment
has issued. 2 . Upon affidavit that the debt Is just due, and unpaid,
and that defendant has not, within affiant’s knowledge, property In
his possession subject to execution sufficient to satisfy such debt, and
that the writ Is not sued out to Injure either the defendant or garnishee'.
3. Upon judgment, when affiant makes affidavit that the defendant
has not, within his knowledge, property Ip his possession within this
Territory sufficient to satisfy said Judgment. Proceedings under, sub­
division 2 requires a bond in double the amount of the debt, condi­
tioned that plaintiff will prosecute the suit to effect, and pay all
damages and costs that may be adjudged against him for wrongfully
suing out the garnishment. The proceedings are docketed and judg­
ment rendered as if In an independent proceeding. <See Attachment.)
Holidays. Legal holidays are January'1, February 14, February
22, July 4, October 12, Thanksgiving, May 30, December 25, Arbor
day, Labor Day, every Sunday and general state election day, or
any special election day that may be called by the governor, and any
day appointed by the president or governor. Any promissory note,
bank check, bill of exchange, acceptance, or . other negotiable in­
strument, made payable at any future period, which falls due on any
of these days mentioned, shall be considered due and collectible on
the day following, and if January 1 , February 14, February 22, July
4, October 12, December 25, or May 30, and. Arbor Day, shall fall
upon Sunday, then the Monday following shall be considered as a
legal holiday. Writs of injunctions, attachments, replevin, and
prohibition may bfe issued and served on.
Homestead. Deed to. must be slgped by husband and wife. (See
Exemptions.)
Husband and Wife. All property, both real and personal, ot
the husband or wife, owned or claimed by him or her before mar­
riage, and that acquired afterward by gift, devise, or descent, as also
the Increase, rents, Issues, and profits of the same, shall be bis or her
separate property. The earning and accumulations of the wtfe and her
minor children In her custody while she has lived or may live separate
and apart from her husband, shall also be the separate property of the
wife. All property acquired by either husband or wife during the
marriage, except that which Is acquired by gift, devise, or descent, or
earned by the wife and her minor children while she has lived or may
live separate and apart from' her husband, shall be deemed the common
property of the husband and wife, and during the coverture may be
disposed ot by the husband only. Married women of the age of
twenty-one years and upwards shall have the same legal rights as men
of the age or twenty-one years and upwards, except the right to make
contracts binding the common property of the husband and wife; and
shall be subject to the same legal liabilities. (See Dower, Convey­
ance.)
Injunction. Is issued, where party Is entitled' to relief and
restraint. Is required of some prejudicial act; where, pending litiga­
tion, an act Is done which tends to render judgment Ineffectual, and
when applicant Is entitled under principles of equity. Under certain
conditions may be granted ex parte at chambers or by consent.
Bond may be fixed by judge and approved by clerk, except to restrain
collection of rponey judgment, when It must be double the amount of
such judgment.
Injuries—Personal. Employer’s Liability and Compulsory Com­
pensation laws in force.
Insurance. (See special chapter pertaining to Insurance.)
Interest. May contract. In writing, for any rate of, not exceeding
10 per cent per annum. Any rate exceeding this is usurious. When
no express contract, on bond, bill, note, or instrument of writing,
or judgment, for money lent, or due on settlement of accounts from
date of ascertained balance, and money received for use of another,
Interest is computed at 5 per cent per annum.
Judgments. Judgments of superior courts become a Hen upon all
real estate of judgment debtor In the county as soon as entered and
docketed. Upon filing with the clerk of the superior court a transcript
of judgment from justice court or of superior court of another county,
the same becomes a Hen oa all real estate of judgment debtor in the
county. No execution can be issued on any judgment after the
expiration of five years from the date of Its rendition and entry, unless
such Judgment be revived by scire facias or action for debt be brought
thereon within such five years.
Judicial Bonds. (See Bonds.)
Levy. (See Executions.)
Licenses. For gambling prohibited.
Liens. All persons who may labor or furnish materials in the con­
struction or repairing of any building, superstructure, canals, dams,
mines, or other Improvement, or cuts cordwood, shall have a Hen on
the same, and in case of buildings and superstructures, on the lot ot
land whereon the same Is situate and connected therewith. To fix
and secute the Hen, the person performing labor or furnishing material
must, within sixty days after the completion of such labor or the fur­
nishing of materials, file his contract In the office of the county recorder
where the property Is situate. If the contract be verbal, a duplicate
copy of the bill of particulars should be made, under oath, and one
delivered to the recorder and filed for record and the other furnished
the party owing the debt, or his agent. Laborers’ and like Hens are
preferred to all subsequent Hens, mortgages, and incumbrances, and
such as Hen claimant had no notice. Suit to foreclose such Hens must

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1705

be commenced within slj; months after filing the same In the recorder's
office. In case of the levy of writ of attachment or execution, clerks,
laborers, and employes of debtors have a preference claim for wages
for services performed sixty days before levy of writ, not exceeding
*2 0 0 , upon filing notice of claim unpaid with creditor, debtor, and
officer executing writ. Proprietors of hotels, boarding houses, and
lodging houses have special Hen on all property or baggage deposited
with them by guests for price of guests’ entertainment. Agister and
liveryman have Hen by statute. (See Judgment, Mortgage.)
Limitations. To recover realty against person In peaceable and
adverse possession under color of title, three years; against such posses­
sion where person pays taxes and has deed recorded, five years, other­
wise ten years; to recover lots In city or village against person having
recorded deed, and pays taxes, five years; where party In possession
claims by right of possession only, two years.. Personal Actions—
One year; Personal Injuries, malicious prosecution, false imprison­
ment, libel, slander, seduction, breach of promise. Actions for reUef
on the ground of fraud; must be brought within one year from dis­
covery of fraud. Two years: Trespass to property, detention or
conversion of personal property to own use, taking and carrying away
goods and chattels; and injuries to person where death ensues, to
accrue from date of death. Three years: Actions for debt not in
writing; on stated or open accounts other than mutual between mer­
chants or their factors and' agents; all accounts, except as between
merchants and factors and agents, Umitations run from date of each
Item of deUvery. Four years: For penalties or damages on any bond
to convey real estate; between partners for settlement of partnership
accounts; on mutual or current accounts between merchants, their
factors or agents, to accrue from cessation of dealings; upon judgment
or instrument without the Territory; 'bonds of executors, adminis­
trators, or guardian, after death, removal, etc.; specific performance;
to contest will after discovery of fraud; and where no provision is
otherwise made. Five years: On domestic judgment where execution
has been issued within one year after rendition. Six years; debt
evidenced by writing within the state.
Mines unpatented are real estate for the purpose of Inheritance and
conveyance. Location requires seven monuments, three at each end,
and one at discovery. In which notice is to be placed on discovery:
title work consisting of a shaft 4 x 6 x 8 feet deep, or its equivalent
In an open cut so that mineral in place Is discovered 8 feet frdm the
surface must be done and notice recorded within three months, and
annual assessment work amounting to SI0 0 , maintained each year
thereafter, until patent Is ordered.
Minors. (See Savings Banks.)
Mortgages. Mortgage may contain power, of sale. Whether It
does or not, mortgage may be foreclosed by suit in superior court.
Failure ot mortgagee to lawfully release a satisfied mortgage tor seven
days after demand for the release, subjects him to liability for $ 1 0 0
and actual damages. Mortgages on real estate are executed, ac­
knowledged, and recorded as conveyances ot real estate. (See Con­
veyances. Chattel Mortgage, Acknowledgments, Redemption.)
Notary Public. In an certificates and acknowledgments the date
of expiration of commission must be stated, as “commission expires—’’
No certificate of holding office, etc.. Is required when notary acts in
foreign state or country.
Notes and Bills of Exchange. (See BUls and Notes.)
Partnerships using fictitious name may file certificate showing
names of partners with county recorders. Foreign partnerships may
do so.
Powers of Attorney. No special statutory provisions relative to.
To confess judgment must be executed subsequent to maturity of debt
confessed, and must be acknowledged. To convey lands or release
mortgages should be acknowledged as deeds, and recorded.
Proba te Law. (See Savings Banks and Administration of Estates.).
Protest. Liability of drawer or Indorser of bfil or note may be
fixed by regular protest and notice, etc.,-according to the usages and
custom of merchants. (See Bills and Notes.)
Records. The superior courts of each county are courts of record.
The recorder’s office in each county relates to titles of real estate
and personal property, and probate record Instrument therein la
notice. The minutes of the Sanitary Live Stock Board are notice hr
all brands and marks of live stock.
Redemptions. From sheriff or Judicial sales, six months, by
debtors or successors In interest; any Hen holder may redeem within
three months thereafter by serving and filing statutory notice, by
serving notice In five days after end of said six months. The same rule
applies to foreclosure of mortgages and trust deeds whether by court
or under powers of sale.
Replevin. For possession of specific personal property which has
not been seized under any process, execution or attachment against
the property of the plaintiff.
Sales. The “uniform sales law” is In force
Seals. Addition or omission of seals or scrolls to Instruments of
writing in no way affect the force and validity of the Instrument.
Instruments executed by corporations must have a corporate seal
attached.
¡service. AH summons upon persons shall be personal, or by leaving
a copy with copy of complaint at the usual place, of residence of
defendant, with a member of his family over the age of sixteen years;
against incorporated city, or town, or village; upon major, clerk,
secretary, or treasure; against Incorporation or joint stock associa­
tion, upon president, secretary, or treasurer, director or local agent
representing company, or by leaving a copy of summons and com­
plaint at the principal office during office hours; upon any railroad,
telegraph, or express company, or any agent of such company who
resides in or may be found In the county where suit Is brought; upon
domestic corporation by serving on statutory resident agent, and where
there is no officer upon whom service can be made in the State, ser­
vice may be had by delivering duplicate copies of summons and com­
plaint to the secretary of the Corooration Commission, and upon
foreign corporation by delivery to statutory agent. Personal service
of summons may also be had by serving upon defendant by registered
mail, as provided in statutes.
Suits. (See Actions.)
Taxes. Aside from those levied by legislative enactment for
specific purposes, as for the construction and maintenance of public
institutions, etc.. State taxes are levied by the State Board of Equal­
ization; county taxes by the boards of supervisors of the several
counties, and city taxes by the common councils of the various cities.
Railroads are valued for the purpose of taxation by the State Board
of Equalization. Other property is valued by county assessors.
The assessing of value begins in February of each year. Taxes
are levied on the third Monday of August in each year. The Hen
attaches on the first Monday' of February in each year. Taxes
become due not later than the third Monday In September, and
become delinquent If not paid on the third Monday of December.
The penalty for delinquency Is 5 per cent. Within 60 days after
delinquency action may be commenced in district court to foreclose
delinquent real estate tax liens, and property sold as under execution.
Personal property tax Is collected by distress warrant. Taxes after
delinquency draw Interest at one per cent per month after action

1706

BANKING AND COMMERCIAL L A W S— ARKANSAS

commenced to foreclose tax lien penalty or twenty-five per cent Is
added. There Is doubt about the right to redeem from tax sales.
Warehouses. Personal property In, may be sold for unpaid
charges.
Transfer of Corporation Stocks. (See Corporations.)
Wills. Wills must be In writing, signed by the testator, or by some­
one for him. In his presence and by his direction, and must be attested
by two or more credible witnesses above the age of fourteen years, in
the presence of each other and the testator. When the will is wholly
written by the testator, no witnesses are necessary. Nun-cupative
wills may be made when property willed does not exceed in value
$50, unless It be proved by three credible witnesses that the testator
called on some person to take notice and bear testimony that such is
his will, and that the testimony, or the substance thereof, was com­
mitted to writing within six days after the making of such will; in
such case the amount willed is not limited. Wills are revocable by
subsequent will, codicil, or declaration in writing, executed with like
formalities as In execution of will, or by testator destroying, canceling,
or obliterating the same, or causing it to be done in his presence, or
by subsequent marriage, and no provision is made for wife. Foreign
wills, the probate whereof is duly authenticated, may be probated
here. Contests of wills can not be Initiated after one year from date
of probating.

SYNOPSIS OF

THE LAW S OF ARKANSAS
RELATING TO
BANKING AND COMMERCIAL USAGES.

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

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Attachments may be sued out where the defendant is a foreign
corporation or non-resident, or has been absent from the State four
months, or has left the State with intent to defraud his creditors, or
has left the county of his residence to avoid the service of summons,
or conceals himself so that summons can not be served on him, or is
about to remove or has removed a material part of his property out
of the State, not leaving enough to satisfy his creditors, or has sold,
oonveyed or otherwise disposed of his property, or suffered It to be
sold with the fraudulent Intent to eheat, hinder, or delay his creditors,*
or is about so to do. It is obtained by filing an affidavit stating the
nature of the plaintiff’s claim, that it is Just, its amount and the exist­
ence of the ground, and by giving bond conditioned to pay all damages
the defendant may sustain if the attachment is wrongfully sued out.
The defendant is allowed to traverse the attachment, and the affidavit
and traverse then stand as pleadings upon which the issue is tried.
If the attachment is dissolved, the defendant may have an assessment
of damages upon the bond in the same suit. Persons claiming the
attached property may interplead in the same action.- Attachments
may be sued out before the debt is due where the defendant has sold
conveyed, or otherwise disposed of his property, or permitted It to be
sold with the fraudulent intent to cheat, hinder or delay his creditors,
or is so to do, or is about to remove his property, or a material part
thereof, out of the State with the intent of cheating, hindering or delay­
ing his creditors.
Banks. The banking business is controlled by a state bank depart­
ment under the direction of a bank comm issioner. Any five or more
persons, the majority of whom must be residents of this state, may
apply to the commissioner to be incorporated and the shares of capital
stock shall be not less than $25 nor more than $100 each; application
may also be made by an individual or firm and shall then be in such
form as the commissioner may prescribe and such individual or firm
shall adopt a name which will show that it is not incorporated; all
property owned by such bank shall be held in the name of the bank
and not in the name of the individuals composing the firm and all
assets of any such private bank are exempt froin execution by any
creditor of such individual or firm until all liabilities of the bank have
heen paid; upon the death of an individual banker his widow is not
endowed of any property of the bank except such as remains after the
payment of all depositors and other creditors.
No corporation, firm or individual may do a banking business until
a fee“of one-fifth of one per cent on the authorized capital stock shall
have been paid to the bank- commissioner. Fees at the same rate
must be paid on each increase of the capital stock and for each amend­
ment or supplement to the articles of agreement, except for an increase
of capital stock, there shall be paid an additional fee of $1 0 , There
is also due the commissioner an annual fee of $15 in addition to a pay­
ment of fifty cents on each $1 ,0 0 0 of the bank’s capital stock.
The fully paid-up capital stock of any bank organized after the pas­
sage of the banking act (March, 1913) cannot be less than $10,000 in
cities having less than 2,500 inhabitants, not less than $20,000 in cities
having more than 2,500 and less than 5,000i nhabitants, not less than
$25,000 in cities more than 5,000 and less than 10,000 inhabitants
and not less than $50,000 in cities havipg more than 10,000 inhabitants.
The banking act does not apply to trust companies whose minimum
capital stock Is $50,000.
The affairs of an incorporated bank are controlled by a board of
directors chosen from the stockholders; each director must be the
owner of not less than $500 worth of stock, par value, fully paid-up and
not hypothecated; every bank must have on hand at all times as a
reserve as much as 15 per cent of the aggregate of its deposits.
Stockholders are liable for the debts of the bank in the sum of the
par value of their stock in addition to the amount invested in such
stock. (Act No. 113, Acts of 1913, page 462).
Bills.
Exchange and Promissory Notes. The Negotiable
instruments Law went into effect on April 22, 1913.
No person can be charged as an acceptor of any bill of exchange
unless his acceptance shall be in writing. If the acceptance is
written on another paper than the bill, it shall not bind the
acceptor except in favor of the person to whom such accept­
ance shall have been shown, and who, on the faith thereof,
shall have received the bill for a valuable consideration. Every
holder of a bill presenting it for acceptance may require an
acceptance on the bill; otherwise the bill can be protested for
non-acceptance. Notwithstanding the above provisions any one
promising to accept a bill Is liable to any person to whom a promise to
accept it may have been made; and who. on the faith of the promise,
has drawn and negotiated the bill. Any person on whom a bill is
drawn, and to whom the same may be delivered for acceptance, who
shall destroy it or refuse within twenty-four hours or such time as the
holder may allow to return the bill accepted or not accepted to the
holder, shall be deemed to have accepted the same. When the bills
become due on any holiday, they are payable the next succeeding busi­
ness day. Instruments falling due (or becoming payable on) Satur­
day are to be presented for payment on the next succeeding business
day: except that instruments payable on demand may be presented
for payment before 12o'clock on Saturday if it is not a holiday. The fol­
lowing damages are allowed where a bill is protested for non-acceptance
or non-payment: If the bill is drawn on any place in this State, 2 per
cent; if payable in the states of Alabama, Louisiana,' Mississippi.
Tennessee, Kentucky, Ohio, Indiana, Illinois, or Missouri, or any point
on the Ohio River, 4 per cent; if drawn on any other place in the United
States, 5 per cent; if beyond the limits of the United States, 10 per
cent. If the bill be drawn by any person at any place within this State,
at the rate of 2 per cent; if drawn by any person at any place without
this State, but within the limits of the United States, 6 per cent; if
drawn by any person without the limits of the United States, 1 0 per
cent. The holder of any bill protested for non-payment or non-accept­
ance is entitled to costs of protest and interest at the rate of 1 0 per cent
per annum on the amount of the bill from date of protest. The term
Bill of Exchange includes all drafts or orders drawn by one person on
another for the payment of a sum of mbnby specified therein. Bill»
and notes given for patented machines, implements, substance, or
instruments of any kind, given to any citizen of this State, are not
commercial paper, unless executed on a printed form, and showing
for what consideration they were executed. This applies to patent
rights and rights to use any patented thing of any kind. But this
provision does uot apply to merchants and dealers who sell patented
things in the usual course of business. All blank assigments are taken
to have been made on such day as shall be most to the advantage of
the defendant. In other respects the general rules of commercial
law apply.
Bills of Lading. (See Warehouse Receipts and Bills of Lading.)
Collaterals are governed by the law merchant.
Contracts touching commercial matters are governed by the law
merchant.
Conveyances may be either witnessed by two witnesses or ac­
knowledged. (See Acknowledgments.) If witnessed they are proved
by the oath of two witnesses, and are then entitled to record as though
acknowledged. Dower can be relinquished only by the wife joining
the husband. The wife may convey property acquired since October
30, 1874, by deed as a single person without her husband joining her,
or by joining with him in the form above. The wife may convey by

BANKING AND COMMERCIAL L A W S— ARKANSAS

power of attorney and make executory contracts ot sale. Deeds
wbicli have been recorded and are properly acknowledged prove themAny substantial departure Irom the form of acknowledgments
by the statute, such as the omission of the words “con­
sideration" or “purposes,” makes the acknowledgment and record
void; but statutes have been passed from time to time curing defec­
tive acknowledgments previously made. Such a statute was passed
In 1907. A new Curative Act was passed and approved Febru
try 10. 1911.
Corporations are organized only under general incorporation laws.
Business corporations must consist of not less than three persons who
■hall elect a board of directors. The president and secretary are to be
elected by the board and the president must be a member of it. The
leeretary and treasurer must reside and keep the books of the com­
pany within the State. The articles of association must be signed by
the president and a majority of the directors, and must be accom­
panied by a certificate signed in a like manner and sworn to by the
president and a majority of the directors, setting forth the purpose of
the corporation, the amount ot its capital stock, the amount actually
in, tne names of Its stockholders and the number of shares held
Said
y each respectively, and the articles and certificate must be filed In
the office of the clerk of the county in which the corporation is to
transact business and then with the clerk’s endorsement in tne office
of the secretary of State. The stock can be transferred only upon the
company’s books, and a record of the transfer has to be deposited with
the county clerk In order to be valid as against creditors of the trans­
feror. The corporation has a lien on its stock for debts due from tbe
stockholders. The president and secretary are required to file with
the coilnty clerk an annual statement of its financial condition, and
In case of a failure to do so become liable for Its debts. If the direc­
tors declare a dividend when the corporation is Insolvent they become
liable for all the corporate debts. Any corporation which is insolvent
or has ceased to cjo business may be wound up on the suit of any
creditor or stockholder by a decree of the chancery court. Prefer­
ences by insolvent corporations are forbidden. Shares of stock are in
denominations of $25 or $100. Before any corporation, foreign or
domestic, can do any business in this State, an annual franchise tax
must be paid to the State Treasurer, to-wit: One-fifteenth of one
per cent each year upon the proportion of the outstanding capital
stock of the corporation represented by property owned and used in
business transacted in this state.
Every corporation doing business for profit and organized as a
mutual life, fire, accident, surety, health or other insurance company
not having a capital stock and not organized for charitable purposes
shall pay an annual tax of $1 0 0 .0 0 .
All foreign or domestic insurance companies, of whatsoever nature,
doing business in this state and having an outstanding capital stock
of less than $500,000 shall pay an annual tax of $100; and such com­
panies having a capital stock of $500,000 or more an annual tax of
$2 0 0 , this tax being in lieu of the tax on the capital as provided in
other cases.
Every Investment company, foreign or domestic, except National
banks and corporations not organized for profit, incorporated or unin­
corporated, which shall sell or negotiate the sale of any stocks, con­
tracts, bonds or other securities of any kind or character other than
bonds of the United States, or of some municipality authorized to
issue bonds of the State, and notes secured by mortgages on real
estate located in the State, or sell building stock or loan investments'
shall file in the office of the Bank Commissioner, together with a fee
of $5.00, in addition to the fees required of all incorporations, the
following documents: A statement showing in detail the plan upon
which it proposes to transact business; a copy of all contracts, bonds
or other instruments which it proposes to make with or sell to its
contributors; a statement showing name and location of company
and an itemized account of its actual financial condition and any other
such information which the Bank Commissioner may require; if
such company be a co-partnership or unincorporated association, it
shall also file a copy of its articles of co-partnership or association and
all other papers pertaining to its organization; if it be an Arkansas
corporation It shall file a copy of its articles of incorporation, con­
stitution and by-laws and all other papers pertaining to its organiza­
tion; if it be organized under the laws of any other state or territory
or government, incorporated or unincorporated, it shall file a copy of
the laws of such state or government under which it exists or is incor­
porated, and also a copy of its charter, articles of incorporation,
constitution and by-laws and other papers pertaining to its organi­
zation.
The Bank Commissioner shall examine all such papers and may
admit or reject such company in his discretion;, a company rejected,
or whose right to do business is revoked by the Bank Commissioner,
may, within twenty days, appeal to the chancery court of any county
Inthe state where its principal office is located or principal agent resides
If it be found that the refusal or revocation was justified, the cost
shall be paid by the company; otherwise by the state as provided by
statute.
Any individual or persons, co-partnerships, corporation, companies
or association, domestic or foreign, which shall sell any building or
Investment contracts or like securities on which payments are to be
made from time to time, shall first enter into a bond with the State of
Arkansas in the sum of $20,000 for the faithful performance of its
contract.
Foreign Corporations shall, before doing business In the State, by
Its president file in the office of the secretary of State a certificate
under the seal of the company naming an agent, who shall be a citizen
of this State upon whom service of process can be made. The certi­
ficate snail state the principal place of business of the corporation;
and service on the agent shall bind it. The corporation must also file
a certified copy of Its charter together with a statement of Its assets
and liabilities, and the amount of its capital employed in this state
In the office of the secretary of State, and In the office of the county
where It opens an office, and must pay same fees as are required of
home corporations. It must' also file a resolution of its board of
directors consenting that service of process on any of its agents or on
the secretary of State shall be a good service. If It sues in the federal
court or removes a suit there without consent of its adversary, Its
right to do business is revoked. Doing business here without compli­
ance with the law subjects the corporation to a fine of not less than
$1,000. These requirements do not apply to railroad or telegraph
companies that had built lines In the State prior to Feb. 16, 1899. If
any corporation fails to appoint an agent, service of process on the
auditor of State shall bind it. No foreign corporation can sue on any
contract made in this State until these provisions are complied with.
Courts. The supreme court Is held at Little Rock and has Juris­
diction of appeals from the circuit and chancery courts. In all coun­
ties separate courts of chancery have been established. The estates
of deceased, persons are entrusted exclusively to the probate courts,
with right of appeal to the circuit and thence to the supreme court.
Claims against counties are heard by the county court, as also matters
touching paupers and the like The justices’ courts have jurisdiction
of matters of contract not exceeding $300, and matters of tort not
exceeding $100, Two terms of the circuit and chancery court and
four of the county and probate courts are held in each county per year.
Deeds. (See Acknowledgments and Conveyances.)
Depositions may be taken In the State before any judge or clerk of
a court of record, justice of the peace, mayor, or notary public; out
of the State before a commissioner for this State, judge, justice of the
ie l v e s .
p r e scrib e d


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1707

peace, mayor, notary public, or person commissioned by the court or
by consent of parties.
Descents and Distributions. Property descends to children and
their descendants in equal parts; if no children, then to father, then to
mother, then to brothers and sisters and their descendants in equal
parts, and in default of such to the nearest lineal ancestor or his
descendants in equal parts per stirpes. Illegitimate children inherit
and transmit an inheritance from the mother in the same manner as
if legitimate. If the parents of illegitimate children subsequently
intermarry and the father recognizes them as his, they shall be deemed
legitimate. In default of heirs the whole property goes to husband
or wife, and in their default to the State. If the estate Is ancestral it
goes to the blood of the ancestor from whom it was derived. Rela­
tions of the half-blood Inherit equally. Heirs take as tenants in
common.
Dower., Where there are children the wife takes one-third of the
husband s personal estate absolutely and one-third of the real estate
of which he was seized at any time during the marriage, for life. Where
there are no children she takes in a new acquisition one-half of the real
and personal estate absolutely as against heirs, or one-third absolutely
as against creditors. If it Is an ancestral estate, she takes one-half for
life against heirs and one-third for life against creditors
Executions from, the circuit court are returnable in Sixty days,
those from justices’ courts within thirty. They may be stayed for
six months by giving bond. They are a lien on the property of the
defendant In the county from the time they come to the officer’s
hands. The officer before levying on personal property, the title
to which is doubtful, may require the plaintiff to give him an indem­
nifying bond, and then suit must be brought by the claimant upon
the bond. The defendant and other judgment creditors have one year
in which to redeem from the sale of real estate. In case the writ is
returned nulla bona the plaintiff may proceed by bill of discovery
against the defendant and examine him on oath, and enforce a sur­
render of concealed property by Imprisonment.
Exemptions.' Unmarried persons are entitled to $200 and married
persons and heads of families to $500 In selected articles of personal
property as exempt against debts by contract. Persons who. are
married or heads of families are entitled to a homestead as against all
debts, except the purchase-money, specific liens, laborers’ and mechan­
ics’ liens, taxes and claims for trust funds converted. The homestead
In the country is not to exceed 160 acres, and In town not to exceed
one acre, nor to be worth more than $2,500, but the country home­
stead is not to be reduced to less than 80 acres nor the town homestead
to less than one-fourth of an acre, regardless of value. The homestead
goes to the widow and minor children after the husband’s death. The
homestead can only be conveyed by deed In which the wife joins and
which is acknowledged by her, and if the husband negiects to claim
the homestead the wife may do so.
Fraud. The English statute of fraudulent conveyances has been
re-enacted in this State.
Garnishments may be sued out pending suit upon giving bond In
double the amount garnished, or after judgment without bond.
Holidays. The following are set apart and designated as legal
holidays: Christmas Day (December 25th); New Year’s Day (Jan­
uary 1st), July Fourth; Thanksgiving Day (last Thursday in Novemcer); Washington’s birthday (February 22nd); Labor Day (first
Monday in September); General Robt. E. Lee’s birthday (January
lfith); All general bi-ennial election days; Birthday, Jefferson Davis,
President of the Confederate States of America (June 3rd); Arbor
Day (first ■
Saturday in March, a special day). . When bills become
due on any of these days, they are payable the next business day.
October 12th is Columbus Day (a public holiday, but not affecting
commercial paper, or the execution of written instruments, nor
interfering with judicial proceedings),
Husband and Wife. (See Married Women.)
Injunctions may be Issued by circuit judges, chancellors, or the
judge of any court In which suit is brought. The person applying
for the Injunction must give bond as,the court or judge may direct.
Insolvency. The Supreme Court has held that the Federal Bank­
ruptcy Act has suspended the State insolvency laws.
Interest. The legal rate of Interest Is 6 per cent, but parties may
contract in writing for not exceeding 10 per cent. Interest exacted in
excess of 10 per cent forfeits the debt. In computing the interest
commissions paid to the agent of the lender are chunted as Interest.
Where usury is charged the borrower may go into equity and have the
debt and securities cancelled without tendering the amount lawfully
due. Judgments bear the same rate of interest as the obligation sued
on. Judgments against counties bear no Interest.
Judgments (See Interest) are liens upon the real estate of the
debtor in the county where rendered for three years only. The lien
may be renewed and continued for three years by scire facias. Judg­
ments of the United States and other courts can be made liens on lands
in counties other than that where they are rendered by filing a certified
copy in the office of the circuit clerk. A judgment survives for ten years.
Jurisdiction. (See Courts.)
Liens. Mechanics, builders, artisans, laborers, and others doing
any work upon or furnishing any material for any building or erection
under any contract with the owner or his agent, contractor or sub­
contractor, shall have for such work or material furnished a lien on
the building or Improvement together with the land on which It stands
to the extent of one acre if in the country; if in a city the lot or land
upon which the erection is situated. Hotel keepers have lien on
baggage and personal effects of guests. Liveryman have lien on all
stock and property left in their cafe.
Limitations. Suits for the possession of real estate must be
brought within seven, years, saving to minors and lunatics three
years aftef 'their disabilities are removed. Actions for recovery of
lands sold at judicial sales must be brought within five years, saving
to minors and lunatics three, years after removal of disabilities.
Actions for the recovery of lands held under tax title must be brought
in two years. Actions for forcible entry and detained, on contracts
not in writing, for trespass and for libel, within three years. Actions
for criminal conversation, assault and battery, false imprisonment,
and slandSr, within one year. Actions oft written instruments, within
five years; on judgments, within ten years; on bonds of executors
and administrators, within eight years. In ay cases, except actions
for the recovery of lands, minors and lunatics have, after removal
of their disability, the statutory period in which to sue. Verbal
promises or acknowledgments do not take a claim out of the statute.
One year is allowed after dismissal of a suit in which to begin a new
action. No person can avail himself of a disability which did not
exist at the time the right of\action<accrued. No endorsement of pay­
ment made by the payee or on his behalf is sufficient proof to take
the case out of the statute.
Limited Partnerships may consist of one or more general, and one
ormore special partners. The latter of whom shall constitute in cash a
specific amount as his share of the capital, beyond which he is not
liable for firm debts. Those forming such partnership must make
and file in office of circuit clerk of county, and principal place of busi­
ness, a certificate showing name of firm, names of partners; distin­
guishing between general and special, nature of business, amount
of capital contributed by each partner, period of commencement and
termination of partnership. Business to be conducted by general
partners and suits brought by or against them..

1708

BANKING AND COMMERCIAL L A W S— CALIFORNIA

Wills. A will must be subscribed by the testator or by some person
Married Women. 1 The property, real and personal, of married
women remains their separate estate as long as they choose, and may for him at his request in the presence of two attesting witnesses, and he
be devised or conveyed without the husband’s assent, and Is not must acknowledge it to be his will to each of them. He must declare
subject to his debts. If she dies without making any disposition of at the time of his subscription or acknowledgment to the witnesses
her real estate, he Is entitled to curtesy. She may carry on any busi­ that the instrument is his will and testament. The witnesses must
ness or perform any services on her own account, and her earnings are sign their names at the end of the will as witnesses at the request of
hers, and she may sue alone in respect of her separate property. She the testator. If, however, the entire will is in the hand-writing of the
can bind herself by contract only in reference to her separate estate or testator, it need not be attested, but may be proved by three witnesses
business. She can not enter Into pa’tnership with her husband. If she familiar with the hand-writing. Such will, however, can not be
leaded In bar of an attested will. Wills are revoked by marriage and
does not file a schedule <?f her personal property, the burden of proof
irth of Issue, unless provision for such issue is made by settlement,
Is on her to show that it is hers.
Is provided for in the will. The will of an unmarried woman is
Mines and Mining. Under control of commissioner of mines. or
revoked
by her marriage. . Afterborn children, not mentioned in the
All documents relating to mines must be recorded in the recorder’s
taxe their regular distributive share. If the testator fails to
office of the county; and miners of the county may make by-laws will,
mention
In his will any child, or Its legal representatives, living at the
regarding the time, manner, and amount of work necessary to hold
of executing the will, he shall, as to such child, or Its represent­
claims and other rules and regulations not In conflict with lav?. Exten­ time
atives, be deemed to have died Intestate, and such child, or Its rep­
sive provisions are made for the protection of the health and safety resentatives.
is entitled to Its regular share.
f
of miners. (Acts 1893, p. 213). Miners have a lien on the output,
machinery, and tools used to secure payment for work done. Three
years' possession of a mine, with work required by law, gives possessory
right.
Mortgages are not-liens as against any one, though such person
bas actual notice of their existence, until they are acknowledged In
the form prescribed and filed for record. Mortgages of real estate
are recorded In the county where the land lies, and mortgages of
SYNOPSIS OF
personal property in the county of the mortgagor’s residence. If the
mortgagor of personality Is a non-resident the mortgage is recorded
In the county where the property is situate. Sales under mortgages
and deeds of trust can be made only after appraisement, and the
property must bring two-thirds of the appraised Value. In case It Is
THE LAW S OF CALIFORNIA
offered and falls to bring the required amount real estate may be
offered again after one year and personal property after sixty days,
and Is then sold for what It will bring. The mortgagor of real estate
RELATING TO
has one year from the date of sale In which to redeem. In action to
foreclose a mortgage. It is sufficient defence that the debt (which It
recites). Is barred by statute of limitations.
Chattel Mortgages may be acknowledged ana died as other mort­
BANKING AND COMMERCIAL USAGES.
gages, or they may be endorsed “This Instrument Is to,be filed but not
recorded,” signed by the mortgagee, and may then be filed In the
recorder’s office with the same effect as though recorded. Mortgages
Revised by H e n r y G. W. D i n k e l s p i e l
of personal property reserving In the mortgagor the power of disposi­
Attorney and Counselor at Law. San Francisco.
tion are fraudulent.
(See Card in Attorneys’ List.)
Mortgages and Deeds of Trust may be enforced by foreclosure
at any time within the period prescribed by law for foreclosing mort­
gage or deed of trust so far as the property mentioned and described
Accounts. An account Is assignable, and the assignee may main­
m such mortgage or deed of trust Is concerned, but no claim or debt tain
an action thereon, although the account is assigned merely for
against the estate of a deceased person shall be probated against
An action to recover a balance due upon a mutual current
such estate whether secured by mortgage or deed of trust or not collection.
and
open
account or upon an open book account is barred within four «
except within the time prescribed by law for probating claims against years. The
cause of action on a mutual account Is deemed to have
said estate.
accrued from the date of the last Item. In the'case of an open book
Towers of Attorney. Lands may be conveyed by power of attor­ account, each Item becomes outlawed four years after Its date. (See [
Actions and Limitations.)
ney, which is acknowledged as deeds and recorded In the county
where the lands lie.
Acknowledgments. Before an instrument can be recorded. Its
execution must be acknowledged by the person executing It, or If
Probate Law. (See Administration of Estates.)
executed by a corporation, by its president or secretary, or other |
Protests. (See Bills of Exchange and Promissory Notes.)
person executing the same on behalf of the corporation, or proved by a
Records. (See Acknowledgments, Conveyances. Mortgages, subscribing witness, or by judgment in an action brought for the
Chattel Mortgages, and Powers of Attorney.)
purpose. The proof or acknowledgment of an instrument may be
maae at any place within the State before a justice or clerk of the
Redemption. (See Executions and Mortgages.)
court, and within the city, county, or township for which
Replevin. The plaintiff In replevin may nle an affidavit-describing supreme
officer was appointed or elected, before either: (1) A clerk of a
the property, stating its value and the amount of damages be expects the
of record; (2) a county recorder; (3) a court commissioner;
to recover, his title, that the property is wrongfully detained by the court
(4) a notary public; (5) a justice of the peace. The acknowledg­
defendant, that It has not been taken tor a tax or under process agalns1 ment
of an instrument must not be taken, 'unless the officer taking it
plaintiff, and that his cause of action has accrued within three yeais
knows or has satisfactory evidence, on the oath or affirmation of a i
and upon giving bond in double its value, the property shall be taken credible
witness that the person making such acknowledgment is the
from the defendant and given to the plaintiff pending the suit, unlesr individual
who is described in, and who executed the instrument; |
the defendant within two days after it is taken gives a cross-bond.
or if executed by a corporation, that the person making such acknowl- |
Revision. The last revision of'the statutes was in 1904.
edgment is the president or secretary of such corporation, or other I
it on its behalf. Officers taking and certifying
Taxes are a lien between vendor and purchaser from the first Mon­ person who executed
or proof of Instruments for record, must authenti- I
day In December. They are payable between the first Monday In acknowledgments
their certificates by affixing thereto their signatures, also their I
January and the 10th of April. In case of non-payment a penalty of cate
by the laws of the State or country where the'ac- I
25 per cent is added. Lands may be redeemed within two years by seals 6 f office, if
or proof is taken, or by authority of which they are
paying taxes, penalty, and costs, with 10 per cent Interest. -Minors, knowledgment
they are required to have official seals. Acknowledgments I
lunatics, and persohs In confinement may redeem within two years acting,
taken out of this State to be used within this State may be taken 1
after their disability is removed. (See also Corporations.)
before a notary public, a commissioner appointed by the governor
Testimony. (See Evidence.)
of this State, a judge, or clerk of a court of record, or in foreign
Transfer of Corporation Stock. (See Corporations.)
countries a minister, consul, vice-consul, or consular agent of the
Trust Companies must have a paid-up capital of $50.000, and United States, or a judge of a court of record or a notary public, I
In counties with a population exceeding 50,000, they must have a sub­
Actions. All civil actions are commenced by filing a complaint, 1
scribed capital of not less than $100,000. They may exercise all the upon which plaintiff may, at any time within one year thereafter, have
powers commonly conferred on such companies.
a summons issued. There Is but one form of action and the only
Wages. No assignment or order of wages to be earned in the pleadings allowed on the part of the plaintiff are: 1. The complaint.
future to secure a loan of less than $2 0 0 , shall be valid against any 2 . Tbe demurrer to the answer. 3. The demurrer to the cross­
employer or the person making such assignment or order, until such complaint. 4. The answer to the cross-complaint,' and on the part
the defendant: 1. The demurrer to the complaint. 2. The
assignment or order is accepted in writing by the employer and the of
■aid assignment or order and the acceptance of same has been filed answer. 3. The cross-complaint. 4. The demurrer to the answer
with the recorder of the county where the party making the assign­ to the cross-complaint.
ment or order resides, if a resident of the state where he. is employed.
Administration of Estates. Upon the admission of a will to
No assignment or order of wages to be earned in the future shall be probate, letters testamentary are granted by the superior court to the
valid when made by a married man unless the written consent of his executor named in the will, unless he be dead or Incapable or unwilling
wife to making such an assignment or order for wages shall be attached. to act. In which case letters testamentary, are Issued to ah adminls- I
the will annexed, appointed by said court. In case of
Warehouse Receipts and Bills of Lading shall not be given trator withletters
of administration are issued to the bona fide resi­
except where the commodities mentioned are received on the premises, Intestacy,
of the sta'te entitled thereto, in the following order: 1. Relatives
and are under the control of the warehouseman at the time of its dent
whole blood entitled to adminster in preference to those of half
issuance. No warehouseman shall sell, encumber, ship, or remove of
Surviving husband or wife, or some competent person named
any such commodity/for which a receipt has been given.without the blood.
either. 2. Children. 3. Father or mother. .4. Brothers. 5. Sis­
written assent of the holder q/t the receipt. The same provisions cover by
ters. 6. Grandchildren. 7. Next of kin entitled to share in the dis­
owners and agents of boats and vessel®. All warehouse receipts and tribution
of the estate. 8 . Public administrator. 9. Creditors.
bills of lading are made negotiable by written endorsement and 10. Any person
legally competent. Where the person entitled to
delivering the same as bills of exchange and promissory notes, and no administration
Is a minor or incompetent, letters must be granted to
printed or written conditions, clauses, or provisions inserted in or bts or her guardian,
to any'other person entitled to letters of
attached to them shall In any way limit their negotiability or impair administration In theordiscretion
Bonds for faithful
the rights and duties of the parties thereto, or persons Interested performance of duty are requiredof oftheancourt.
administrator and of an
therein, or such conditions shall be void. Warehouse receipts given executor unless waived by the will. Notice
be given by the
by any warehouseman, or other person for goods and other com­ administrator or executor by publication to allmust
creditors to come
modities deposited, and all bills of lading given by any carrier, boat, In and prove their claims within ten months afterthe
first publication,
vessel, railroad, transportation, or transfer company may be trans­ when the estate exceeds In value the sum of tenItsthousand
dollars,
ferred by endorsement and delivery; and the transferee shall be and four months when it does not. 11. Claims arising on contract
deemed to be the owner of such commodities so far as to give validity whether due or not due or contingent, and funeral expenses must be
to any pledge, lien, or transfer gitmn, made, or created thereby; and presented within time prescribed by notice to creditors, otherwise
no property so stored or depositedshall be delivered except on sur­
are forever barred, unless it appears by affidavit of the creditors
render and cancellation of such receipts and bills of lading, unless they
that such creditor was outside of the State and consequently did
■uch receipts and' bills of lading have the words "not negotiable” not
notice. Unless claim is approved within the time pro­
plainly written or stamped on their face. A carrier may however videdreceive
in the notice it is barred, unless the claimant can prove
deliver to shipper or consignee goods without presentation of bill ef to the for
satisfaction of the court that he had no notice by reason of
lading upon receiving from such shipper or consignee bond In double being out
of the State, in which case the claim may be presented
the value of the goods conditioned for delivery to the carrier there­
any time before a decree of'distribution is entered. When a claim
after the original bill of lading (acts 1907). Penalties are denounced at
rejected either by the executor or administrator or the judge,
against any warehouseman or other person who shall violate any of is
holder must bring suit in the appropriate court thereon within
the provisions of this statute. So much of the act as forbids the the
months after the date of its rejection, if it be then due, or within
delivery of property except the surrender and cancellation of the threemonths
after it becomes due, otherwise the claim is forever
original receipt or bill of lading shall not apply to property replevlned two
barred. No claim can be allowed which is barred by the Statute of
or removed by operation of law.

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BANKING AND COMMERCIAL L A W S— CALIFORNIA

Limitations. Claims against the estate are Daid in the following
order: 1 . Funeral expenses. 2 . The expenses ot the last sickness.
3.
Debts having preference by the laws of the United States. 4 .
judgment rendered against the decedent in his lifetime, and mort­
gages and other liens in the order of their date; and 5, all other de­
mands against the estate.
Affidavits. An affidavit to be used before any court, judge; or
officer of this State may be taken before any officer authorized to
administer oaths. In this State every court, every judge or clerk of
any court, every justice and every notary public, and every officer or
person authorized to take testimony in any action or proceeding, or
decide upon evidence, has power to administer oaths ana affirmations.
An affidavit taken in another State of the United States to be used
in this State, may be taken before a commissioner appointed by the
governor of this State to take affidavits and depositions in such other
State, or before any notary public in another State, or before any
judge or clerk of a court of record having a seal. An affidavit taken
in a foreign country to be used in this State, may be taken before an
ambassador, minister, consul, vice-consul, or consular agent of the
United States, or before any judge of a court of record having a seal,
in such foreign country.
Aliens.
1. All aliens eligible to citizenship may take, hold and
dispose of property, real and personal, within this State.
2. All aliens not eligible to citizenship may acquire and possess land
in accordance with the terms of any existing treaty with any foreign
country of which such alien is a citizen, and not otherwise, and in
addition may lease land for agricultural purposes for three years.
3. Any company, association or corporation composed in the main
of aliens may acquire and possess land in accordance with the terms
of any existing treaty with any foreign country of which they are
citizens, and not otherwise, and in addition may lease land for agri­
cultural purposes for three years
4. When it appears in any probate proceedings wherein any alien
is an heir that he could take real property except for the provision or
this act, the probate court shall order the sale of such real property
and distribute the proceeds to such alien.
5. For any violation of this act the attorney-general shall institute
forfeiture proceedings and upon Anal judgment the lands shall escheat
to the State.
•
6 . When it appears that any alien or aliens are holding any lease-hold interests in violation of the above provisions the attorney-general
shall likewise institute forfeiture proceedings, and such leasehold
interest or its monetary value together with the costs of such forfeiture
proceedings shall escheat to the State.
No non-resident alien can take by succession unless he appear
and claim within 5 years after death of decedent.
Arbitration. The submission to arbitration must be in writing,
and It may stipulate that it be entered as an order of the superior
court, for which purpose it must be filed by the clerk. If the sub­
mission is not made an order of the court, it may be revoked at any
time before the award. All the arbitrators must act, but a majority
governs. Their award must be in writing, signed by a majority of
them, and delivered to the parties, and when the submission is made
by an order of the court, must be filed by the clerk who enters the
same, after the expiration of five days, in the judgment book, and
thereupon it has the effect of a judgment. Title to real property
cannot be arbitrated. Upon application a State Board of Arbitra­
tion has jurisdiction .over disputes between employer and employee.
Arrest. In an action for the recovery of money upon a contract,
express or implied, the defendant may be arrested if about to depart
from the State with Intent to defraud his creditors, upon order of
court based upon affidavit therefor, also in an action for money or
other property embezzled or fraudulently misapplied by a public
officer, officer of a corporation, or an attorney, factor, broker, agent,
or clerk in the course of his employment, or by any person in a fidu­
ciary capacity; also In actions to recover the possession of personal
property where it has been concealed or removed or disposed of to
prevent its being found; also in cases where the defendant has been
guilty of a fraud in contracting the debt or obligation for which action
is brought; or in concealing or disposing of property; also when the
defendant has removed or disposed of bis property or is about to do
so with intent to defraud creditors. Bail given upon arrest is liable
upon judgments secured.
Assignments for the Benefit of Creditors. Assignments for
the benefit of creditors must be written and acknowledged by the
assignor or his agent authorized thereto in writing and recorded, and
must be made to the sheriff of the county where the Insolvent resides,
or, if a non-resident, where he (has property. Assignments for the
benefit of creditors are void against any creditor not assenting thereto
in a number of instances; for example, where they give one debt a
preference over another, and where they tend to coerce any creditor to
release or compromise his demand. Assignments must contain names
of creditors and the amounts.
Attachments may be Issued at the time of or any time after
issuing the summons where amount sued for exceeds $10.00. All
property not exempt from execution may be attached. An attach­
ment lien upon real property continues for three years and may be
extended for two years more. The clerk of the court must issue
the writ of attachment upon receiving an affidavit by or on behalf
of the plaintiff showing, (1) That the defendant is indebted to the
plaintiff, specifying the amount of such indebtedness overhand above
all legal set-offs or counter-claims, upon a contract, express or implied,
for the direct payment of money, and that such contract was made
or is payable in this 'state, and that the payment of the same has
not been secured by any mortgage or lien upon real or personal prop­
erty, or any pledge of personal property, or, if originally so secured,
that such security has, without any act of plaintiff, or the person
to whom the security was given, become valueless; or (2) That the
defendant,is a non-resident of the State, and is indebted to plaintiff,
specifying the amount of such indebtedness over and above all legal
set-offs or counter-claims, upon a contract expressed or implied;
or (3) That plaintiff’s cause of action against defendant is one to
recover a sum'of money as damages (specifying the amount thereof)
arising from an injury to property in this State in consequence of
the negligence, -fraud or other wrongful act of the defendant, and
that the defendant is a non-resident of the State; and (4) That
the attachment is not sought, nor is the action prosecuted, to hinder,
delay, or defraud any creditor of defendant. Before issuing the writ,
the clerk must require a written undertaking on the part of the plain­
tiff, in a sum not less than $200, or in Justices Court of from $50.00
to $300; and not exceeding the amount claimed by plaintiff, with
sufficient sureties, to the effect that, if the defendant recovers judgment,
the plaintiff will pay all costs that may be awarded to the defendant,
and all damages that he may sustain by reason of the attachment,
not exceeding the sum specified in the undertaking, and that if the
attachment is discharged on the ground that the plaintiff was not
entitled thereto, the facts required in the above not being existent,
the plaintiff will pay all damages which the defendant may have
sustained by reason of the attachment, not exceeding the sum speci­
fied in the undertaking.
Banks, Savings. A savings bank may purchase or hold,: (1 )
Real Estate, furniture, fixtures, etc., in which its business may be
conducted. (2) Property mortgaged or held in trust on account of
any money lent in the course of business. It shall not purchase
personal property except (1 ) bonds or interest bearing .obligations

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1709

of the United States (2) bonds of the State. (3) Bonds of any state
which has not defaulted in payment of either principal or interest ■
within five years. (4) Bonds of any county, city or town or school,
road, sewer, drainage, seclamation, protective or sanitary district,
organized under the laws of the state, to limited amount. ¡51 Bonds
of any county, city or town of any state of a population of more than
2 0 0 ,0 0 0 and an entire bonded indebtedness less tban fifteen per cent
of the taxable property, where interest or principal has not been
defaulted within five years. (6 ) Bonds of railroads organized under
the state and operating exclusively therein or of railroads operating
at least 500 miles of standard gauge tract, or of any railroad cor­
poration payment of which has been guaranteed, by the preceding
clauses of railroads; provided, that in all cases the net earnings are
as required by statute. (7) Bonds of Public Utility corporations,
incorporated under the laws of the State of California, provided the
properties and earnings, etc., are as required by statute. (8 ) Notes
or bonds secured by first lien on real estate to sivty per cent of its
market value. (9) Collateral trust bonds or notes secured by de­
posit of authorized bonds fifteen per cent in excess of such collateral
bonds or the deposit of such bonds and other securities twenty per
cent in excess of such collateral bonds, provided the market value
of the authorized bontjs deposited equal such collateral bonds. (1 0 )
Bonds accepted by savings banks under the laws of New York or
Massachusetts. ,(H) Certificates issued by corporations with a
paid up capital stock of not less than $1 0 0 , 0 0 0 , secured upon real
estate and guaranteed in the manner required by the Bank Act.
No savings bank must loan money except on adequate security on
real or personal property and such loan must not be for longer than
ten years. Jt must have a paid up capital stock graduated from
$25,000 when located in any place of less than 5,000 population, to
$300,000 when the population is in excess of 200,000. Savings
banks organized without capital stock must have a reserve fund of
$1,000,000. The capital stock and surplus of savings banks, must
equal ten per cent to and including $2 ,0 0 0 ,0 0 0 deposit liabilities,
must exceed seven and one half per cent of deposit liabilities from
$2,000,000 to $5,000,000, five per cent from $5,000,000 to $15,000,000,
two and one half per cent from $15,000,000 to $40,000,000. and one
per cent of deposit liabilities in excess of $40,000,000. A surviving
husband or wife or next of kin of any deceased person may, without
procuring letters of administration, withdraw any sum deceased
may have had on deposit in any savings bank if the sum does not
exceed $500.00.
Banks. The business of banking may be carried on only by
corporations organized for that purpose under the Bank Act. The
capital stock and surplus of commercial banks must exceed ten per
cent of deposit liabilities. Such corporations are classified as: Com­
mercial, Savings or Trust companies, and, together with building and
loan associations, are conducted under the supervision and inspection
of a State Superintendent of Banks, to whom such banks must sub­
mit at stated intervals to examination. No person unless organized
as a bank under the laws of this state may hold himself out as en­
gaged in the banking business, or use the word bank, savings or
trust company in connection with his business. Every bank may
conduct a commercial and savings department, provided its capital
stock, if situated in a locality of less than 5,000 population amounts
to $25,000, or both or either departments in conjunction with a
trust department if the same amounts to $125,000. If the population
of a locality is from 5,000 to 25,000 a capital of $50,000 is required
for a savings and commercial department and $150,000 for both or
either in conjunction with a trust department. If the population
is from 25,000 to 100,000 a capital of $200,000 and $400,000 respec­
tively, is required; if the population is over 200,000 a capital of $300,
000 and $500,000, respectively, is required. Every bank must des­
ignate the character of its business. A bank organized under the
laws of another state must comply with all the requirements of the
State Bank Act, set apart to its business conducted here the surplus
aid up stock required of California corporations, and constitute the
tate Superintendent of Banks its agent for service of process. A
banker has a general lien dependent upon possession of all property
in his hands belonging to a customer for the balance due to him
from such customer in the course of business. The same capital
stock is required of commercial banks as of savings banks. (See
savings banks.) With some exceptions no commercial bank can lend
more than ten per cent of its capital stock on unsecured loans or
twenty-five per cent upon security Worth at least fifteen per cent
more than the loan so secured, but a commercial bank may buy or
discount bills of lading or exchange drawn against actual value or
buy and discount commercial paper, not to exceed twenty-five per
cent of its capital and surplus.
Bills and Notes. The Uniform Negotiable Instruments Law is
in force. Statutes of 1917. Chapter- 751.
Chattel Mortgages may.be made on any personal property,
including growing crops and fruit, except personal property not cap­
able of manual delivery, articles of wearing apparel and personal
adornment, and the stock in trade of a merchant, provided that when
said personal property refers to fixtures or equipment of a merchant,
seven days notice must be given, otherwise the same is void as to
creditors of the mortgagor. In the absence of delivery and continued
change of possession, the chattel mortgage will be void as to creditors
of the mortgagor unless acknowledged or proved, certified, and re­
corded, as required in cases of grants of real property and accompanied
by affidavits of all the parties that it is made m good faith, and with
out any design to hinder, delay or defraud creditors. Such mortgages
must be recorded in county it is situated in and if removed to another
county a copy of mortgage must be recorded in county within 30
days or mortgagor must take possession.
Collaterals. Are governed by the law relating topledges of per­
sonal property. A pledge is a deposit of personal property by way ot
security for the performance of any act. Delivery of the thing
pledged is essential to the validity of the bailment. When the per­
formance of the act for which the pledge is given is due in whole or
In part, the pledgee may collect what is due. to him by the sale of the
property pledged. But before the property can be sold the pledgee
must demand performance thereof from the debtor, if he can be
found, and must give actual notice to the pledgor of the time and
place at which theproperty pledged will be sold, at such a reasonable
time before the safe as will enable the pledgor to attend,' but notice
of the sale may be waived by the pledgor at any time. The sale
must be by public auction and must be for the highest obtainable
price. After the sale the pledgee may deduct from the proceeds the
amount due and the necessary expenses' of sale and collection, and
must pay the surplus to the pledgor. The pledgee, or a pledge­
holder, may purchase the property pledged when the same is sold
at public auction. A pledgee can not sell any evidence of debt
(collateral) pledged to him, except the obligations of governments,
states, or corporations; but he may collect the same when due.
Contracts. Certain contracts are invalid unless the same or
some note or memorandum thereof is in writing. (See Statute of
Frauds.) A contract for personal services cannot be enforced for
over two years.
Conveyances. An estate In real property, other than an estate at
will, or for a term not exceeding one year, can be transferred only by
operation of law, or by an instrument in writing, subscribed by the
party disposing of the same, or by his agent thereunto authorized in
writing. Leases of agricultural land for a longer period than 10

1710

BANKING AND COMMERCIAL L A W S — CALIFORNIA

in Insolvency; of actions to prevent or abate a nuisance; of ,
years ana of city property for a longer period than 50 years are void. ceedings
matters of probate, of divorce and fo* annullment of marriage;
A fee simple title.is presumed to be intended to pass by a grant of all
of all such special cases and proceedings as are not otherwise I
real property, unless it appears from the face of the grant that a and
They also have power to issue writs of mandamus,
lesser estate was intended. A grant of re^l property may be made provided for.
prohibition, quo warranto, and of habeas corpus on petition
in the following form: “ I, A. B., grant to O. D. all that real prop­ certiorari,
by or on behalf of any person in actual custody in their respective
erty situated in (insert name of county) county, State of California, counties.
Injunctions and writs of prohibition may be Issued and
bounded (or described) as follows: (Here insert description, or served on legal
and non-judicial days. The superior courts
if the land sought to be conveyed has a well-established descriptive have appellate holidays
jurisdiction in cases arising in Justices and other
name, it may be described by such name as for instance: The Inferior courts in
their
respective
counties provided the appeal be
Norris Ranch.’) Witness my hand this (insert) day of (insert month), taken within thirty days of the judgment.
1 9 __
a B ” The use of the word “grant” implies the following
District Courts of Appeal. The State is divided into three appellate
covenants: 1. That previous to the time of the conveyance the districts,
each of which has a court of appeals with three justices.
grantor had not conveyed the same estate, or any right, title, or inter­ These courts
have appellate and original jurisdiction. The general
est therein to any person other than the grantee. 2. That such line of demarcation
between the supreme court and these courts is
estate is at the time of the execution of the conveyance free from the amount of money
or the value of the property involved. The
Incumbrances, done, made, or suffered by the grantor. ' Subsequently district courts of appeal
have appellate jurisdiction on appeal from
acquired title passes by operation of law to the grantee, or his suc­ the superior courts in all cases
law in which the demand exclusive
cessors. Instruments entitled to be recorded must be recorded by of interest or the value of theatproperty
in controversy amounts to
the county recorder of the county in which the real property affected $300 and does not amount to $2 ,0 0 0 ; also
all cases of forcible
thereby is situated. Every conveyance of real property, acknowl­ entry and detainer (except such as arise ininthe
justices courts);
edged or proved and certified and recorded as prescribed by law, from
proceedings in insolvency, and in actions to prevent or abate a
the time it is filed with the recorder for record, is constructive notice in
in proceedings in mandamus, certiorari and prohibition,
of the contents thereof to subsequent purchasers and mortgagees, ana nuisance;
usurpation of office, contesting elections and eminent domain, and
every conveyance of real property other than a lease for a term not in
other special proceedings as may be provided by law (except­
exceeding one year is void as against any subsequent purchaser or ingsuch
in cases in which appellate Jurisdiction is given to the supreme
mortgagee of the same property, or any part thereof, in good faith court);
also on questions of law alone in all cases prosecuted by
and for a valuable consideration, whose conveyance is first duly Indictment
or information to a court of record, excepting criminal
recorded. cases where judgment of death has been rendered. Said courts also
Corporations. Private corporations may be formed by the volun­ have appellate jurisdiction in all cases, matters and proceedings
tary association of any three or more persons, in the manner prescribed pending before the supreme court which shall be ordered by the
by statute not to exceed 50 years. A majority of such persons must supreme court to be transferred to a district court of appeal for
be residents of this State. Private corporations may be formed for hearing and decision.
,
T
any purpose for which individuals may lawfully associate themselves.
Supreme Court. Has original and appellate Jurisdiction. In the
The number of directors of corporations for profit, except those exercise of original Jurisdiction it shall have power to issue wrtts of
mentioned as excepted, may be increased or diminished, by a-major­ mandamus, certiorari, prohibition, and habeas corpus; it shall also
ity of the stockholders of the corporation to any number, not less have power to issue all other writs necessary and proper for the
tihan three, who must be members of the corporation. A copy of the complete exercise of Its appellate jurisdiction. The supreme court
articles of incorporation, certified by the secretary of State, must be has appellate jurisdiction in all cases in equity, except such as arise
filed with the county clerk of every county where the corporation In the justices’ courts: also in all cases at law which involve the title
purchases, acquires or locates property, within sixty days after . or possession of real estate or the legality of any tax, impost, assesssuch purchase or location. Upon filing the articles of incorporation ment. toll or municipal fine, or In which the demand exclusive of
In the office of the county clerk of the county in winch the principal interest or the value of the property in controversy amounts to
business of the company is to be transacted, a copy thereof, certi­ $2 . 0 0 0 - also in all such probate matters as may be provided by law;
fied by the county clerk, with the secretary of State, the secretary of also on questions of law alone in all criminal cases where the Judgment
State must issue to the corporation over the great seal of the State of death has been rendered; the said court also has appellate juris­
a certificate that a copy of the articles containing the reqmred state­ diction in all cases, matters and proceedings pending before a dis­
ment of facts has been filed in his office, and thereupon the persons trict court of appeal which shall be ordered by the supreme court to
ginning the articles, and their associates and successors, shall beja
be transferred to itself for hearing and decision.
body politic and corporate by the name stated _m the certificate,
The deposition of a witness out of this State may
and for a term of fifty years, unless it is in the articles of incorporation beDepositions.
taken upon a commission issued from the court under the seal of the
otherwise stated, or in the code otherwise specially provided. A oourt.lupon
an
order
the court, or a judge or justice thereof, on the
oooy of any articles of incorporation filed in pursuance of tins chapter, application of eitherofparty,
upon five days’ previous notice to the
and certified by the secretary of State, must be received in all the other. If the court be a justice’s
court, the commission shall have
courts, and other places as prima facie evidence of the facts therein attached to it a certificate under seal
the clerk of the superior
stated. (See Foreign Corporations.) All stocks is assessable for the court of the county to the effect that by
person issuing the same
purpose of paying debts and meeting expenses but no single assess­ was an acting justice of the peace at thethe
date
the conunlssion. If
ment must exceed 10%. The franchise of all corporations as dis­ issued to any place within the United States, itofmay
be directed to a
tinct from its tangible property is subject to taxation.^
agreed upon by the parties, or if they do not agree, to any
Each stockholder of a corporation is mdmdually and personally person
notary
public,
judge
or
justice
of
the
peace
or
commissioner
liable for such proportion of its debt and liabilities incurred while by the court, or judge, or justice issuing it. If issued to any selected
country
he was a stockholder as the amount of stock or shares owned by out of the United States, it may be directed to a minister, ambassador,
him bears to the whole of the subscribed capital stock or shares of
vice-consul, or consular agent of the United states m
the corporation, and for a like proportion only of each debtor claim consul,
country, or to any person agreed upon by the parties. The
against the corporation, but such liability is barred within 3 years such
must authorize the commissioner to admimstei- an oath
after the obligation is incurred. Any creditor of the corporation commission
the witness. The testimony of a witness out of the State may be
may institute joint ot several actions against any of its stockholders to
by deposition in an action, at any time after the_ service of the
for the proportion of this claim, payable by each, and in such action taken
or the appearance of the defendant; in a special proceeding,
the court must ascertain the proportion of the claim or debt for which summons
any time after a question of fact has arisen therein. Depositions
each defendant is liable, and a several judgment must be rendered at
must
be
taken
in the form of question and answer. The words of
against each in conformity therewith. If any stockholder pays the witness must
be written down, in the presence of the witness,
his proportion of any debt due from the corporation incurred while by the officer taking
deposition or by some indifferent person
he was such stockholder, he, is relieved from any further personal appointed by him. Itthe
may be taken down in short hand in which
liabilities for such debt; and it an action has Deen brought against case it must be transcribed
long hand by the person who took it
Mm for such debt, it shall be dismissed as to him upon his paying down. When completed, ittomust
carefully read to or by the
the costs, or such proportion thereof as may be properly chargeable witness and corrected by him in anybe
if desu-ed, by writing
against him. The term “stockholder extends to every equitable or causing his corrections to be writtenparticular,
the bottom of the deposition,
owner of stock, although the same appears on the books in the name and must then be subscribed by the at
witness.
Corrections must be
of another, and also to every person who has advanced the Instal­ initialed by officer before whom deposition is taken.
the parties
ments or purchase money of stock in the name of a minor, so long as agree in writing to any otb©r mod.©, tb© mod© so agr©6Ifu upon
must
the latter remains a minor; and also to every guàrdian or other be followed.
trustee who voluntarily invests any trust funds in the stock. Stbck
Depositions in this State. The testimony of the witness in this
held as collateral security, if fact of pledge appears, or by a trustee, or
In any other representative capacity, does not make the holder thereof State may be taken by deposition in an action at any time alter the
a stockholder, except in the case above mentioned, so as to charge service of summons or the appearance of defendant, and in a special
proceeding after a question of faot has arisen therein, in certalB
him with any proportion of thè debts or liabilities of the
but the pledgor, or person, or estate represented Is to be deemed the enumerated cases.
stockholder as respects such liabilities. I n corporations having no
Depositions for Use out of the State. Any party to an action or
capital stock, each member is individually and personally liable for his special
proceeding in a court or before a judge of a sister state, may
proportion of its debts and liabilities, and similar actions may be obtain the testimony of a witness residing in this State, Tobe used in
Srought against him, either alone or jointly with other members, to such action or proceeding, in the cases mentioned following: If a
enforce such liabilities as by this section may be brought against one commission to take such testimony has been issued from the court,
or more stockholders, ana similar judgments may be rendered.
or a judge hereof, before which such action or proceeding Is pend»
Courts. Terms and Jurisdiction. Justices’ courts have civil ing. on producing the commission to a judge of the superior
lurisdtetion: 1 . In actions arising on contracts for the recovery of court with an affidavit satisfactory to him of the materiality of the
money, only if the sum claimed, exclusive of interest, does not amount testimony, he may issue a subpoena to the witness, requiring him to
to $300, and the jurisdiction of a Justice of the peace in all cases appear and testify before the commissioner named in the comm»where monev judgment is recoverable is limited to $300. ■z. in sion, at a specified time and place. If a commission has not been
actions for damages for Injury to the person, or for taking, detaining, Issued and it appear to a judge of the superior court, or a justice of
the peace, by affidavit satisfactory to him: 1. That the testimony
or injuring personal property, or for injury to real property, where
no issue is raised by the verified answer of the defendant involving of the witness is material to either party. 2. That a commission to
the title to or possession of the same, if the damages claimed do not take testimony of such witness has not been Issued. 3. inat
amount to $300. 3. In actions to recover the possession of personal according to the law of the State where the action or .pedal proceeding
property, if the value of such property does not amount to $300. is pending, the deposition of a witness taken under such circum­
stances, and before such judge or justice, wiU be received in the action
4 . PIn actions for a fine, penalty, or forfeiture not amounting to
$300 given by statute, or the ordinance of an incorporated city or or proceeding, he must issue a subpoena requiring the witness to
town, where no issue Is raised by the answer involving the legality appear and testify before him at a specified time and place. Upon
of any tax, Impost, assessment, toll, or municipal fine. 5. In the appearance of the witness, the judge or justice must cause his
actions upon bonds or undertakings conditioned tor the payment of testimony to be taken in writing, and must certify and transmit the
money, if the sum claimed does not amount to $300, though the same to the court or judge beiore whom the action or proceeding is
pending* in such manner as the law of that State requires.
penalty may exceed that sum. 6 . To take and ®nt®
,r
the recovery of money on the confession of a defendant, when the
Descent and Distribution of Property. Property, both red
amount confessed, exclusive of Interest, does not amount to $300. and
personal, of an intestate passes to his heirs. A surviving wue
7. Also concurrent jurisdiction with the superior courts, ^thin their succeeds
one-half of the community property, i. e., all property
respective townships in actions of forcible entry and dw ioej^jw re acauired to
by husband or wife during the marriage, which does not
the rental value ofthe property entered upon or unlawfully detained Include property
by either husband or wife by gift, bequest,
does not exceed $25 per month, and the whole amount of damages devise or descent,acquired
which is separate property. Dower Interest does
claimed does not exceed $200, Also in actions to enforce and fore­ not exist. The separate
is distributed as follows. If the
close liens on personal property, where neither the amount of the decedent leaves a survivingestate
husband or wife and only one child, or
liana nor the value of the property amounts to $300.
the
lawful
issue
of
one
child,
in
equal
shares to the
husband
Superior Court. The jurisdiction of the superior court Is of two
and child or issue of such child. If a surviving husband or
kinds- 1 . Original. 2. Appellate. The superior court has orl^nal or wife
and more than one child living, or one child living and the lawful
jurisdiction in all cases in equity; in all civil actions in which the sub­ wife
issue of one or more deceased children, one-third to the surviving
ject of,litigation is not capable of pecuniary estimation, inali casea at husband
wife, and the remainder in equal shares to the children
law which Involve the title or possession of real Property, ot the and to theorlawful
issue of any deceased child by right of representation. I
legality of any tax, etc., and in all other cases in which the demand, But if there be no
living, th6 remainder goes to all the lineal
exclusive of Interest or the value of the Property in controversy, I descendants, and if child
they are in the same degree of kindred to the
amounts to $300; of actions of forcible entry and detainer, of pro
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BANKING AND COMMERCIAL L A W S— CALIFORNIA

1711

decedent they share equaiiy, otherwise by right or representation. been obtained through fraud only when it would not have been given
IÍ the decedent leaves no surviving husband or wife, the whole estate had such cause not existed. Actual fraud consists in the suggestion
goes to the Issue—the issue of children taking by right of represen­ as a fact of that which is not true, the positive assertion of that which
tation. If there is no Issue the estate goes one-half to the surviving is not true in a manner not warranted by the information of the person
husband or wife and the other half to the father and mother in equal making it though he believes it ’ to be true, the suppression of that
shares, or, if one be dead, to the survivor; if there be no father or which is true by one having knowledge of it, and promises made with­
mother, then their one-half goes in equal shares to the brothers and out any intention of performing, or any other act fitted to deceive.
sisters or to their representatives. If'there is no issue, or husband or Constructive fraud consists of any breach of duty, which* without an
wife, the estate goes to the father and mother, or the survivor, or. If actual fraudulent Intent, gains an advantage of the person In fault
both be dead, then In equal shares to the brothers and sisters, and by misleading another to his prejudice. Actual fraud is always a
to the children of any deceased brother or sister by right of repre­ question of fact.
sentation. If the decedent leaves a surviving husband or wife, and
Garnishment. Upon receiving instruction In writing from the
neither issue, father, mother, brother, nor sister, the whole estate
lalntifi or his attorney that any person has in bis possession, or under
goes to the surviving husband or wife. If the decedent leaves neither
is control, any credits or other personal property belonging to the
issue, husband, wife, father, mother, brother, nor sister, the estate defendant
is owing any debt to the defendant, the sheriff must
must go to the next of kin in equal degree. Illegitimate children serve uponorsuch
person a copy of the writ and a notice that such
inherit from mother, also from father if recognized in writing but credits,
or
other
or debts, as the case may be, are attached
can only inherit directly and not by representation. These are the In pursuance of property
such
writ. AJ1 persons having any suoh property
principal provisions of the law of succession. Tenancy by the cour­
the time of serving of such writ, unless it is delivered up or trans­
tesy is not known to our law. If the person dies testate, all property at
ferred or paid to the sheriff, shall be liable to the amount of such
passes as directed by the will.
credits, property, or debts, until the attachment be discharged, or
Executions. May issue any time within 5 years from entry of any judgment by him recovered be satisfied. ,
judgment and after lapse of 5 years the judgment may be enforced
Homestead. The homestead consists in the interest of the
or carried into execution by leave of court upon motion, or by judg­
ment for that purpose, founded upon supplemental proceedings. claimant, divided or undivided, in the dwelling house in which the
No right of stay exists except by order of the court in its discretion. claimant resides, and in the land on which the same is situated,
Execution may issue against the property of a judgment debtor selected, if the claimant be married, from community property, or
after his death, only if the judgment be for recovery of real or per­ the separate property of the husband, or, with the consent of the
sonal property, or the enforcement of liens thereon. Real property wife from her separate property; When the claimant is not married,
but is the head of a family, the homestead may be selected from any
may be redeemed within one year, personal property not at all.
of his or her separate property. The homestead can not be selected
Exemptions. The following property is exempt from execution; from the separate property of the wife without her consent, shown
I. Chairs, tables, desks, and books, to the value of $200. 2. Neces­ by her making or joining the declaration of homestead. The home­
sary household, table and kitchen furniture belonging to the judgment stead is exempt' from execution or forced sale, except in satisfaction
debtor, including one sewing machine, stoves, stove-pipes and furni­ of judgments obtained: 1 . Before the declaration of homestead
ture, wearing apparel, beds, bedding and bedstead, hanging pictures, was filed for record, and which constitutes liens upon the premises.
oil paintings and drawings drawn or painted by any member of the 2. On debts secured by mechanics’ contractors’, sun-contractors’,
family, and family portraits, and their necessary frames, provisions artisans’, architects’, builders’, laborers’ of every class, materialmen's
and fuel actually provided for individual or family use sufficient or vendors’ liens upon the premises. 3. On debts secured by
for three months, and three cows and their sucking calves, four hogs mortgages on the premises, executed and acknowledged by the huewith their sucking pigs, and food for such cows
and hogsfor oneband and wife or by an Unmarried claimant. 4. On debts secured
month, one piano, one shotgun,and one rifle. 3. The farming by mortgages on the premises, executed and recorded before the
utensils or implements of husbandry not exceeding in value the sum declaration of homestead was filed for record. In cases not enum­
of $1 ,0 0 0 ; also two oxen or two horses, or two mules, and their harness; erated above, in which, after a judgment has been docketed against
one cart or buggy and two wagons, and food for such oxen, horses, the homestead claimant, and an execution tor its enforcement levied
or mules for one month; also' all seed, grain, or vegetables, actually on the homestead. It may be shown by an appraisement applied for
provided, reserved or on hand for the purpose of planting or sowing to, and ordered by, the court, after proper proceedings, that the home­
at any time within the ensuing six months, not exceeding in value stead exceeds in value the amount of homestead exemption. Then
the sum of $2 0 0 , and seventy-five bee hives, and one horse and ve­ steps may be taken, if it can be done without material injury to the
hicle belonging to any person who is maimed or crippled, and the land, to divide the property and reach the excess. The homestead
same is necessary in his business. 4. The tools
or implements ofof a married person can not be conveyed or encumbered unless the
mechanic or artisan necessary to carry on his trade; the notarial instrument by which It Is conveyed or encumbered is executed and
seal, records, and office furniture of a notary public; the instruments acknowledged by both husband and wife. Homesteads may be
and chest of a surgeon, physician, surveyor, or dentist, necessary to ■elected and claimed: 1. If not exceeding $5,000 in value, by any
the exercise of their profession, with their professional libraries and head of a family. 2\ If not exceeding $1,000 in value, by another
necessary office furniture; the professional libraries of attorneys, person upon death of either spouse, if homestead is selected from
judges, ministers of the gospel, editors, school teachers and music community property or from separate property of spouse joining
teachers and their necessary office furniture, including one safe and therein, title thereto vests in survivor otherwise to the heirs or de­
one typewriter, also the musical instruments of music teachers ac­ visees of the person whose property was selected.
tually used by them in giving instructions; and all the indexes, ab­
and Wife. The husband is the head of the family.
stracts, books, papers, maps, and office furniture of a searcher of HeHusband
choose any reasonable place or mode of living, and the wife
records necessary to be used in his profession; also the typewriters mustmay
conform thereto. In other respects their invests are separate.
or other mechanical contrivances employed for writing in type ac-- Neither
husband nor wife has any Interest in the separate property
dually used by the owner thereof for making his living; also one of the other,
and either may enter Into any engagement with the
bicycle when the same is used by its owner for the purpose of carrying
or with any other person, respecting property, which either
on his regular business, or when the same is used for the purpose ' other,
if unmarried. All property of either, owned by him or her
of transporting the owner to and from his place of business. 5. The might
before marriage, and that acquired afterward by gift, bequest, devise
cabin or dwelling of a minor not exceeding in value the sum of $500; or
Is the separate property of such person. All other prop­
ateo his sluices, pipes, hose, windlass, derrick, cars, pumps, tools, ertydescent.
acquired after marriage by either husband or wife or both, is
implements, and appliances necessary for carrying on any mining community
property, but whenever any property Is conveyed to a
operations, not exceeding in value'the aggregate sum of $500; and married woman
by an instrument in writing, the presumption is that
two horses, mules, or oxen, with their harness, and food for same the title is thereby
vested in her as her separate property. The
for one month, wnen necessary to be used In any whim, windlass, husband has the management
and control of the community prop­
derrlok, car, pump, or hoisting gear, and also his mining claim, actu­ erty, with absolute power of disposal
other than testamentary, pro­
ally worked by him. not exceeding In value the sum of $1 ,0 0 0 . 0 . vided that he cannot make a gift of the
or convey the same
Two horses, two oxen, or two mules, and their harness, and one oart Without valuable consideration, unless thesame
wife consents in writing.
or wagon, one dray or truck, one coupe,fone hack or carriage for one The community property is not liable for the
of the wife
or two horses, by the use of which a cartman, truckman, huckster, made after marriage, unless secured by a pledgecontracts
or mortgage thereof
peddler, hackman, teamster, or other laborer habitually earns his
by the husband. The husband is not liable for damages or
living, and one horse with vehicle and harness, or other equipments executed
committed by wife except in a case where he would be jointly
used by a physician, surgeon, constable, or minister of the gospel In torts
with-her if the marriage did not exist. The separate property
the legitimate practice of his profession or business, with food for liable
the husband is not liable for the debts of the wife contracted before
same for 6 ne month. 7. One fishing boat and net, not exceeding of
and the separate property of the wife is not liable for the
the total value $500, the property of any fisherman by the lawful marriage,
of her husband, but is liable for her own debts contracted before
use of which he earns a livelihood. 8 . Poultry, not exceeding in debts
after marriage. A husband and wife may hold property as joint
value $75. 9. Seamen’s and seagoing fishermen’s wages and earn­ or
tenants by entreaties, tenants in common, or as community
ings not exceeding $300. 10. The earnings of the judgment debtor tenants,
upon death of wife entire community property goes to
for his personal services rendered at any time within thirty days property
whereas on death of husband wife gets one half of com­
next preceding the levy of execution or attachment, where it appears husband,
by the debtor’s affidavit or otherwise, that such earnings are neces­ munity.
sary for the use of his family residing in this State supported in whole
Interest. The legal rate of Interest is 7 per cent andlis due upon
or in part by his labor; but where debts are incurred by any such judgments after rendition and upon other obligations unless there
erson, or his wife or family for the common necessaries of life, or is an express contract in writing fixing a different rate. The parties
ave been incurred at a time when the debtor had no family residing may agree on a higher rate of interest and on the compounding of
in this State, supported in whole or on part by his labor, the one- same, out personal property brokersimay charge not to exceed 2
half of such earnings above mentioned are nevertheless subject to (two) per cent per month.
execution, garnishment, or attachment to satisfy debts so incurred.
Judgments. (See Actions.) Upon filing the judgment roll,
II. The snares field by a member of a homestead association duly
is a record of the proceedings in the case, It must be docketed
Incorporated, not exceeding in value $1 ,0 0 0 , if the person holding which
by the clerk, whereupon it becomes a lien upon any real property of a
the shares is not the owner of a homestead under the laws of this judgment
debtor not exempt from execution in the county, which the
State. 1 2 . All the nautical instruments and wearing apparel of said judgment
owns at that time, or which he may thereafter
any master, officer, or seaman of any steamer or other vessel. 13. acquire. This debtor
continues for five years, unless the enforcement
All fire engines, hook and ladders, with carts, trucks, carriages, hose, of the judgmentlien
be
stayed
on appeal. A judgment is barred by the
buckets, implements, and apparatus thereunto appertaining; and
of limitation within five years, unless revived by leave of court
all furniture and uniforms of any fire company or department or­ act
motion, or by an action upon the judgment. Judgment must
ganized under any law of this State. 14. All arms, uniforms and upon
be satisfied out of property of the judgment debtor which has
accoutrements required by law to be kept by any person, and also first
one gun to be selected by the debtor. 15. All court houses, jails, been attachsd and in the custody of the sheriff.
and town, county, and State buildings; all public buildings, grounds,
liens. Mechanics, material-men, contractors, sub-contractors,
places, etc. 16. Ail material purchased for use in the construction, artisans,
machinists, builders, miners, teamsters, dray­
alteration, etc.; of any building, mining claim, etc., not exceeding the men and architects,
all persons and laborers of every class performing labor
value of $1,000. 17. All machinery, tools, and implements neces­ upon or furnishing
material
to be used in or furnishing appliances,
sary in and for boring, sinking, putting down, and constructing sur­ teams and power contributing
to the construction, alteration, or
face or artesian wells; also the engines necessary for operating such repair of any building, wharf, bridge,
ditch, flume, aqueduct, well,
machinery, implements, tools, etc.; also all trucks necessary for the tunnel, fence, machinery, railroad, wagon
road, or otnar structure,
transportation of such machinery, tools, implements, engines, etc., to have liens upon the property upon which they
have worked or fur­
the value of $1,000. 18. All moneys, benefits, privileges, or im­ nished material, and any person performing labor
in a ruining claim
munities accruing, or in any manner growing out of any life insurance has a lien upon the same, and the works owned and used
by the owners
on the life of the debtor, if the annual premiums paid do not exceed for
reducing
the
ores
from
such
mining
claim,
for
the work or labor
$500. 19. Shares of stock in any building and loan association to done. The common carrier has a lien upon the luggage
of
passenger
the value of $1,000. 20. Pensions from the United States Govern­ for the payment of his fare. One who sells real propertyahas
a ven­
ment. No article, however, or species of property mentioned in dor’s lien thereon. Improvers of personal property, depositaries
for
this section, is exempt from execution issued upon a judgment re­
veterinary surgeons, livery stable keepers and persons pasturing
covered for its price or upon, a judgment of foreclosure of a mortgage hire,
or stock, have a special lien, dependent upon possession.
or other lien thereon. (For Homestead Exemptions, see Homestead.) horses
Factors, banks, and laundry proprietors have a general lien, de­
Fraud. (For Fraudulent Debtors, sée Arrest.) Any contraot pendent on possession, on any personal property In their hands.
obtained through fraud Is voidable. Consent is deemed to have I Seamen have general liens independent of possession. Owners of

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1712

BANKING AND COMMERCIAL L A W S— CALIFORNIA

animals used for propagating purposes have a lien for the agreed
price upon the offspring. Loggers rendering services upon logs,
bolts and other timber have a lien thereon for the amount due for
their personal services.
Every person performing work or labor in, with, about, or upon any
threshing machine or engine, horse-power, wagon, or other appliance
thereof, while engaged in threshing, has a lien thereon to the extent
of the value of his services, for ten days after ceasing work or labor,
provided, within that time, an action Is brought to recover the amount
of the claim, persons repairing or altering any personal property have
a lien for the reasonable value of such service.
Limitations; If real estate is held adversely for five years, such
adverse possession ripens into title if claimant pays taxes for 5 years,
except against infants and persons under disability. The periods
prescribed for the commencement of actions other than for the re­
covery of real property, are as follows: Within five years: U)
An action upon a judgment or decree of any court of the United
States, or of any State within the United States. (2) An action
for mesne profits of real property. Within four years: (1) An
action upon any contract, obligation or liability founded upon an
instrument in writing, executed in this State. (1) An action to
recover a balance due upon a mutual open and current count or
upon an open book account. Within three years: (1) An action
upon a liability created by statute, other th n a penalty or forfeiture
(2) An action for trespass upon real property. (3) An action for
taking, detaining or injuring any gbods or chattels, including actions
for the specific recovery of personal property. (4) An action for
relief on the ground of fraud or mistake, the cause of action In such
case not to be deemed to have accrued until the discovery by the
aggrieved party of the facts constituting fraud or mistake; Within
two years; (1) An action upon a contract, obligation or liability
not founded upon an Instrument of writing, or founded upon1 an
instrument of writing executed out of the State. (2) Ap action on a
debt, liability or obligation evidenced by an abstract, guarantee or
certificate of title; and such action shall not be deemed to have accrued
until the discovery of the loss or damage. (3) An action against
a sheriff, coroner, or constable, upon a liability incurred by the doing
of an act in his official capacity, and in virtue of his office, or by the
omission of an official duty, including the non-payment of money
collected upon an execution; but this subdivision does not apply
to an action for an escape. Within one year: (1) An action upon
a statute for a penalty or forfeiture, when the action is given to an
individual or to an individual and the State, except when the statute
imposing it prescribes a different limitation. (2) An action upon
a statute, or upon an undertaking in a criminal action, for a forfeiture
or penalty to the people of this State. (3) An action for libel, slander,
assault, battery, false imprisonment, or seduction, or for inj'ury to
or for the death of one caused by the wrongful act or neglect of another,
or by a depositor against a bank for the payment of a forged or raised
check. (4) An action against a sheriff, or other officer, for the escape
of a prisoner arrested or imprisoned on civil process. (5) An action
against a municipal corporation for damages or injuries to property
caused by a mob or riot. Within six months: (1) An action to
recover property seized by tax collector. (2) To recover corpora­
tion stock sold for delinquent assessment. To actions brought to
recover money or other property, deposited with any bank, banker,
trust company, or savings and loan society, there is no limitation.
If when the cause of action accrues against a person, he is out of the
State, the action may be commenced within the term herein limited,
after his return to the State, and If. after the cause of action accrues,
he departs from the State, the time of his absence is not part of the
time limited for the commencement of the action. And If the per­
son entitled to brieg the action be, at the time the action accrued,
either a minor, Insane, imprisoned for a term less than life, or a mar­
ried woman, and her husband Is a necessary party with her in com­
mencing such action, the time of such disability is not a part of the
time limited tor the commencement of the action. No acknowledg­
ment or promise is sufficient to take a case out of the operation of
the statute of limitations, unless the same is in writing, signed by
the party to be charged. Part payment will not take the case out of
the statute of limitations. Where a cause of action has arisen in
another State, and would be barred by the statute of limitations of
that. State, an action cannot be maintained here. There is no limita­
tion upon actions to recover money or property with banks or trust
companies. (See Accounts.)
Married Women. When a married woman is a party to an,
action her husband must be joined except: (1) When the action
concerns her separate property including torts for personal injuries,
homestead property and actions between herself and husband or
when she Is living separate and apart from her husband by reason
of his desertion or by an agreement in writing. A married woman
may become a sole trader by the judgment of the superior court of
the county in which she has resided for six months next preceding
the application. The husband of the sole trader is not liable for
any debts contracted by her in the course of her sole trader’s business
unless contracted upon his written consent. A married woman may
convey without consent of her- husband, and is not liable for the
debts of her husband, but is liable for her own debts contracted
before or after her marriage. She may contract as a femme sole
so as1 to bind her separate property. The wife may make a will of
her 'separate property. The earnings of the wife are not liable for
‘ the debts of her husband.
Mechanics’ Liens. (See Liens.)
Mortgages; Any interest in real property which is capable of being
transferred may be mortgaged. A mortgage can be created, renewed,
or extended only by writing executed with the formalities required In
the case of a grant of real property. Every transfer of an Interest in
real property, other than In trust, made only as the security for the
performance of any act, is to be deemed a mortgage, and the fact that
the transfer was made subject to defeasance on a condition may, for
the purpose of showing such transfer to be a mortgage, be proved
(except as against the subsequent purchaser or encumbrancer for
value and without notice) although the fact does not appear by the
terms of the instrument. A mortgage is a lien upon everything
that passes by a grant of the property. A mortgage does not entitle
the mortgagee to the possession of the property. The assignment of a
debt secured by a mortgage carries with It the security. When a
mortgage Is satisfied or the mortgage indebtedness paid, the mort­
gagee must satisfy the mortgage of record under penalty. A
mortgagee may foreclose the right of redemption of the mortgagee,
unless expressly stipulated the mortgage is not a personal obligation
on part of mortgagor.
Notes and Bills of Exchange. (See Bills and Notes.)
Pledge. (See Collaterals.)
Powers o f Attorney. An attorney in fact may be appointed for
any purpose for which an agency can lawfully be created. Powers of
attorney can only be conferred by an Instrument in writing subscribed
by the principal -which must particularly specify the powers con­
ferred. If the instrument contains a power to convey or execute
instruments affecting real property, it must be duly acknowledged
and must be recorded In the county within which the real property
to be conveyed or affected is situate. No such Instrument which has
been so recorded is revoked by any act of the party by whom It was
executed, unless the Instrument containing such revocation is also
acknowledged or proved, certified, and recorded in the same office

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In which the instrument containing the power was recorded. When
an attorney in fact executes an instrument transferring an estate
in real property, he must subscribe the name of his principal to it,
and his own name as attorney in fact.
Probate Law. (See Administration of Estates, Claims against
Estates of deceased persons. Descent and Distribution.) The superior
court has jurisdiction of proceedings hi probate, and such proceedings
must be instituted (1) In the county in which the decedent was a
resident; (2 ) In the county In which he may have died, leaving
estate therein, he not being a resident of the State; (3) In the
county in which any part of the estate may be, If the decedent died
out of the State and was not a resident. (4) In any county m
which any part of the estate may be, or the decedent not being a
resident of the State nor leaving an estate in the county of death.
(5 ) In other cases where applicatioh fe first made, any person in­
terested may petition for probate of a will or may contest such pro­
bate within one year. An inventory and appraisement is required
of the executor or administrator within three months. Upon the
return of the inventory the court may set apart for use of the sur­
viving husband or wife, or of the minor children, all the property
exempt from execution including any homestead selected, providing
the same was selected from the common property or from the sep­
arate property of the person selecting or joining in the selection of
the same. If none has been selected, the court must select, desig­
nate and set apart and cause to be recorded a homestead for the
use of the surviving husband or wife, or of the minor children, or
if there be no surviving husband or wife, then for the use of the minor
children out of the common property, or if there be no common
property, then out of the real estate belonging to the decedent. Prop­
erty so set apart is not subject to further administration. If upon
the return of the inventory it appears that the value of the whole
estate does not exceed $1,500, the court may set apart the whole
of the estate for the use and support of the family of the deceased.
Protest. (See Bills and Notes.)
Replevin. There is no action of replevin In this State, but the
action of claim and delivery substantially takes its place. The
plaintiff In an action to recover the possession of personal property
may at the time of issuing the summons, or at any time before answer,
claim the delivery of such property. An affidavit must be made by
the plaintiff or by some one In his behalf showing that the plaintiff
is the owner of the property, or entitled to its possession, that the
property is wrongfully detained by the defendant, the alleged cause
of detention thereof, and that It has not been taken=for a tax, assess­
ment or fine, or seized under an execution or attachment, or if so
seized that It is exempt; also the actual value of the property. Plain­
tiff must also give a bond In double the value of the property. The
defendant may give to the sheriff a written undertaking in double
the value of the property, and retain the same, but in case he fails
so to do the property is delivered to the plaintiff. Third parties
may upon affidavit of ownership, claim such property and secure
its release under bonds. The judgment in such action is in the
alternative for a return of the property or for its value in case a de­
livery can not be had.
Sale of Stock Shares. Permit must be obtained from State Cor­
poration Commissioner.
Statute of Frauds. A will must be in writing, except a nun­
cupative will. (See Wills.) An agreement not to be performed
within a year from making it must be in writing; also a special prom­
ise to answer for the debt, defraud, or miscarriage of another; also
agreements made in consideration of marriage other, than a mutual
promise to marry. An agreement for the sale of goods and chattels
or things in action at a price not less than $2 0 0 , unless the buyer
accept and receive part of the same or any part of the purchase
money. No estate in land will pass other than leases not to exceed
one year, unless in writing. An agreement authorizing or employing
an agent or broker to purchase or sell real estate for compensation
or for a commission. An agreement by its terms not to be performed
in the lifetime of the promise or to make, devise or bequeath by will.
No evidence is admissable to change a perspn upon representations
as to the credit of another, unless the representations be in writing.
However where promisor has received .property ■
to apply pursuant
to promise or a discharge of an obligation in consideration of thepromise, or where a creditor parts with value or where the new prom­
ise is substituted for the old debt, or where levy or execution is re­
leased or there is benefit moving to promise from any party or where
a factor undertakes for a commission to guarantee a sale, contractsto answer for the default of another need not be in writing. Transfer
of personal property capable of manual delivery, except wine in cellars
and tanks, when not accompanied by delivery and change of posses­
sion are deemed fraudulent as to third parties unless notice of mtenttion of sale is recorded 5 days before transfer is made in accordance
with law.
Supplementary Proceedings. When an execution is returned
unsatisfied, the judgment creditor can obtain an order requiring the
judgment debtor to appear and answer concerning his property before
the judge or referee appointed by him. also. In case after the Issuing
of an execution, upon proof by affidavit that the judgment debtor has
property which he unjustly refuses to apply toward the satisfactionof the judgment, the Judge may make the order, and Instead thereof.
U It appear tnat the debtor Is about to abscond, he may. by order of
the Judge, be arrested and required by him to give security for the
judgment, or that he will attend Irom time to time during the pen­
dency of the proceedings, and that he will not in the meantime dis­
pose of any portion of his property, and In default of security he may
be committed to prison.
Taxes. "On the first Monday of December of each year taxes becomedellnquent, except the last installment of the real property taxes, and
thereafter 15 per cent Is added for delinquency; provided, thdt If they
be not paid before the last Monday In April next succeeding, 5 per
cent Is added for delinquency. On the last Monday in April, of
each year, all the unpaid portion of the remaining one-half of the
taxes on1 all real property is delinquent, and thereafter *5 per cent is
added for delinquency; and provided further, that the entire tax-on
any real property may be paid at the time the first installment asabove provided is due and payable; and provided further, that the
taxes on all personal property, unsecured by real property, shall be,
due and payable immediately after the assessment of said personal
property is made. Public Utility corporations are taxed for thesupport of the State other property is taxed for county and city
purposes. ,
Wills. Every person over the age of eighteen years, of sound
mind, mayi by last will, dispose of afl his estate, real and personal.
A married woman may dispose of all her separate estate by will without
the consent of her husband, and may alter or revoke the will in like
manner as if she were single. Her will must be executed and provedIn like manner as other wills. Every will other than a nuncupative
will must be in writing, and every will other than an holographic
will and a nuncupative will, must be executed and attested as follows:
1. It must be subscribed at the end thereof by the testator himself,
or some person In his presence, and by his direction must subscribehis name thereto. 2. The subscription must be made In the presence
of the attesting witnesses, or acknowledged by the testator to them
to have been made by him or by his authority. 3. The testatormust, at the time of subscribing or acknowledging the same, declare
to the attesting witnesses that the Instrument is his will) and 4,.

BANKING AND COMMERCIAL L A W S— COLORADO

There must he two attesting witnesses, each ot whom must sign his
name as a witness at tne end of the will, at the testator's request,
and in his presence and in the presence of each other. An holo­
graphic will is one that is entirely written, dated,'and signed by the
hand of the testator himself. It is subject to no other form, and may
be made in or out of this State, and need not be witnessed. A wit­
ness to a -will should always write his name and residence. All
devises or gifts to a subscribing witness are void unless there are two
other competent subscribing witnesses. No will made out of this
State is valid as a will in this State, unless executed according to the
provisions of the code, except that a will made in a State or country
in which the testator is domiciled at the time of his death, and valid
as a will under the laws of such State or country invalid in this State
as to personal property. Wills proven out of state may be recorded
in county where testator has left over estate.
Bequests for charity are void unless made more than 30 days
before death and must in no case exceed more than one third of the
estate unless there are no legal heirs. Wills are revoked by marriage
unless provision for the same or an intention not to provide clearly
a p p ea rs.

SYNOPSIS OF

THE LAW S OF COLORADO
RELATING TO
BANKING ÀND COMMERCIAL USAGES

Revised by Messrs. G a r w o o d a n d G a r w o o d , Attorneys1 at Law,
Denver. (See Card in Attorneys’ List.)
Acknowledgments. Of deeds and instruments concerning real
estate, may be taken as follows:—
>
1. Within this. State, before any judge, clerk, or the deputy clerk
of any court of record, clerk, and recorder of any county, or his deputy,
or notary public, or before any justice of the peace within his county.
2. Out of this State and within the United States before the
secretary of any such State or Territory, the clerk of any court of
record, any notary public, or any commissioner of deeds for any
such foreign State or Territory appointed under the laws of this
State; before any other officer authorized by the laws of any such.
State or Territory to take and certify such acknowledgment ¡provided,
there shall he affixed to the certificate of such officer, other than
those above\ enumerated, a certificate by the clerk of some cmirt
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.
4 3. Out of the United States, before any judge, clerk, or deputy
clerk, of any court of record of any foreign kingdom^ empire, republic,
state, principality, province, colony, island possession or bailiwick,
before the chief magistrate or other chief executive officer of any
province, colony, island possession or bailiwick, before the mayor
or chief executive officer of any city, town, borough, county or mu­
nicipal corporation, having a seal, or before any ambassador, min­
ister, consul, consular agent, charge d’affaires, commercial agent,
or any vice consul, etc., or any diplomatic, consular or commercial
agent or representative, or deputy of any thereof, of the United
States or any other government or country appointed to reside in
the foreign country or place where the acknowledgment is made,
each and all certifying same under his official seal.
109


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4. Out of the State, and within any colofiy, island possession
or bailiwick of the United States, before any such office? as above
enumerated in relation to acknowledgments in foreign countries
(except ambassadors, etc.) or before any notary public, having a
seal.
Actions. Thè distinction between the forms of actions at law and
suits in equity is abolished. All actions must be prosecuted by the
party in interest, and are governed by a code of civil procedure.
Administration of Estates. All demands not exhibited in six
months are barred, unless such creditor can find other estate of the
deceased not inventoried, saving, nowever. 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, aumlnlst ration 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; Husband
and Wife; Descents and Distributions.)
Agent. (See Partnerships.)
Aliens. No restrictions as to aliens.
Arbitration. Dltlerences may be submitted to arbitration by
consent of the parties in the form prescribed by statute, and a judg­
ment may be entered by the clerk of the District Court upon the
finding of the arnttrators.
Arrest. Imprisonment for debt, except in cases where one refuses
to deliver up his estate for the benefit of his creditors, or in cases
ot tort or where there Is a strong presumption of fraud, is abolished.
In civil actions founded upon tort, where the finding Is in favor of the
plaintiff and the verdict states that defendant was guilty of fraud ;
malice, or willful deceit, execution may Issue against the body of
the defendant, but not where the defendant shall have been con­
victed in a criminal proceeding for the same wrong. Imprison­
ment shall not exceed one year, and the prisoner is released upon
payment of the debt. The writ of ne exeat is granted under proper
circumstances. (See Fraudulent Purchasers.)
Assignment. Assignments for the benefit of creditors may be
made in accordance with provisions pf the Assignment Act. Assign­
ments of wages not covered at the time of the assignment, or of
other sum3 to become due to the assignor, are invalid,unless recorded
with the reborder of the county where the wages are to be earned,
or the sums are to become due, within five days from date thereof.
If the assignor is a married man or woman, residing with the wife
or husband, he or she must join in the assignment. There are also
provisions regulating assignments to wage-brokers and others.
Attachments .¿'In actions on contracts, express or implied, the
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 de 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 (1 1 ) 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
of the plaintiff. In Justice courts, the lact 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.
Banks, State. 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 more than 25 per cent of the total shares of
any other bank; nor may it hold or purchase any portion of its own
stock, or of the capital stock of any other corporation, unless such
purchase is necessary to prevent loss upon a debt previously con­
tracted in good faith, or in other peculiar circumstances. Stock so
purchased must be sold within three years, and sooner if this can be
done without impairing the bank’s investment. Shareholders in
banks, savings banks, trust deposit and security associations shall be
held individually responsible for debts, contracts, and engagements of
said association in double the amount of the par value of the stock
owned by them respectively. Any banker, bank officer or employee
who receives money or property after he shall have had knowledge of
the insolvency of said bank, shall be deemed guilty of a felony, and,
on conviction, punished by imprisonment in the penitentiary for not
more than twenty years, or by a fine or not more than $2 ,0 0 0 , 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 2 0 per cent of the paid in
stock and surplus of the bank. Loans secured on real estate limited
to 25 per cent of total interest bearing securities and to a period of
three years, but further loans allowed secured by first mortgage on
real estate worth double amount of loan limited to 50 per cent of
saving deposits and to a period of five years. No bank may engage in
trade or commerce; or acquire realty, except such as is necessary for its
business or such as is necessarily acquired in the protection or satis­
faction of previously existing loans made in good faith. Any realty so
acquired must he sold in five years, or sooner if possible. No director
may borrow money in excess of 1 0 per cent of the capital and surplus,
without the consent of a majority of the directors other than the
borrower. No bank shall loan to any officer or employe thereof.
All hanks 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 the commissioner five times

1714

BANKING AND COMMERCIAL L A W is— COLORADO
»

yearly. No bank can do business without a certificate of authority of such corporation until the question has been submitted to the
from the commissioner. Savings banks are subject to the state stockholders
and a majority vote of all the shares of stock has been
banking law under a number of special provisions and restrictions.
made in favor of such proposition; and such mortgage or encumbrance
without such consent is absolutely void. Cumulative method of
Bills of Exchange. (See Commercial Paper.)
balloting for directors is permitted. Stockholders are liable for
Bills of Lading and Promissory Notes. (See Commercial Paper.) corporate
debts to the amount unpaid upon the stock, except that
Chattel Mortgages when recorded 'are good for two years where stockholders in banks, saving banks, trust, deposit, and security
sum secured does not exceed $2,500; for five years, when sum does not associations are individually responsible in double the amount of the
exceed $2 0 ,0 0 0 , and not exceeding ten years where sum secured par value of their stock. When the stock becomes fully paid up, a
exceeds $20,000; but if the sum secured be greater than $2,500 mort­ certificate to that effect should be filed. The directors are required
gagee must annually record statement stating that the mortgage annually, and within sixty days from Januray 1st, to file a report
secures a bona fide indebtedness, the portion which has been paid, stating the amount of the capital stock, the proportion actually paid
and the amount still due. Chattel mortgages may be extended in, and the amount of existing debts, together with many other
after maturity, but not more than thirty days after maturity, particulars. A failure to file such report makes all the directors and
by filing an executed instrument of extension of mortgage with the officers of the company jointly and severally liable for all the debts
codnty recorder. As between the parties thereto, all chattel mort­ of the company contracted during the year next preceding the time
gages are good until the indebtedness is paid or is barred by the when such report should have been filed, and until such report shall
statue of limitations. Mortgages of stocks of goods which reserve be made and filed, and subjects president and secretary to a fine of
possession and power of sale to mortgagor, are void as against credi­ not less than $1 ,0 0 0 . No meetings of the board of directors can be
tors and bona fide purchasers. Disposing of mortgaged property held outside the State unless so provided by the Articles of Incor­
' is larceny Chattel mortgagee, his agent or attorney, now allowed poration. Corporations may be dissolved by a two-thirds vote of
thirty days after maturity of debt in which to take possession of the entire stock. A corporation under the laws of Colorado, may
mortgaged chattels, and during said thirty days, or until possession extend Its charter by special meeting of the stockholders, called
Is taken by mortgagee, his agent or attorney, the mortgagor shall by 10 per cent of the entire capital stock. Corporate life shall be
have the right to pay said debt and have mortgage discharged as if renewed for entire term, not exceeding twenty years. Foreign
debt had been paid at maturity. Chattel mortgages, securing the corporations doing business in this State are not allowed a longer
purchase price of any article may, at any time within thirty days term of corporate existence than domestic corporations of like char­
after the maturity of the indebtedness, be extendedSjjby the mortgagee acter, but must file renewal certificates and pay fees therefor in the
for a period not exceeding two years, and for like periods thereafter. same manner as domestic corporations, provided that such renewal
Chattel mortgages upon household goods used by the family, when must not extend the life of -the foreign corporation beyond the term
made by husband or wife residing with the other, must be made fixed by the State where it was organized. Generally no foreign
by husband and wife jointly.
corporation shall have or exercise any corporate powers or hold or
any real or personal property, franchises, rights, or privileges,
Collaterals. Persons holding stocks in corporations as collateral acquire
or be permitted to do any business or prosecute or defend any suit in
security not personally liable as stockholders for corporate debts. this
State, until it has filed in the proper offices copy of its charter and
A pledgee of stock may nevertheless represent same at corporate incorporation
and aesignatea an agent upon whom service of
meetings. Transfer of stock either in pledge, or otherwise, must be process can beact,
and until all prescribed fees including license
noted on the books of the company within 60 days or the transfer tax, shall have made,
been
paid, and until Issuance of a certificate setting
is void for some purposes.
forth such full payment.
Commercial Paper. To be negotiable, an Instrument must con­
In addition to all other fees and taxes, every domestic corporation
tain an unconditional order or promise to pay to order, or to bearer, shall
pay on or before the -first day of May of each year, an annual
a certain sum of money on demand, or at a fixed or determinable
State
license tax to the secretary of the State of Colorado,
time or times. The Instrument may authorize that upon default of tencorporation
dollars on a capitalization of one hundred thousand dollars or
of payment of any installment, or of Interest, the whole shall become less- and
ten cents on-each one thousand dollars or fractional part
due, and in case of non-payment, the sale of collateral securities, thereof, when
the capitalization is more than one hundred thousand
or confession of judgment, or waive benefit of any law Intended dollars, and every
foreign corporation shall pay at the same rate
for the advantage of the obligor. An instrument payable on upon that proportion
contingency is not negotiable. „ The date expressed Is prima facie employed m Colorado.of its capital, property and assets> located and
the true date. One in possession of an incomplete instrument has
Other provisions of the Revenue bill, approved' August 4, 1917,
prima facie authority to fill in the blanks, but authority must be
this act regarding annual reports, assessment of tangible and
strictly pursued. Consideration is prima facie presumed. A pre­ and
intangible
property, etc., too voluminous to be quoted, make it
existing debt is a valuable consideration. An accommodation party advisable that
care should be exercised by both domestic and for­
is liable to a holder for value with notice. Two or more payees, eign corporations
operating In the State to acquaint themselves fully
unless' partners, must all indorse unless one has authority for all. with Its requirements
Guaranty Companies; Trust Companies;
An instrument payable to a person as cashier or other fiscal officer Transfer of Corporation (See
Stock.)
of a bank or corporation is deemed prima facie payable to the bank
Courts.
Justices
of
the
peace
have jurisdiction in matters involv­
or corporation, and may be indorsed by the corporation or by the ing less than $300, county 'courts
matters involving less than
officer. For one to be a holder in due course the instrument must $2 ,0 0 0 , except in the administrationIn of'estates,
where jurisdiction
be complete and regular, and taken in good faith for value before is unlimited. The district court Is the court of general
jurisdiction.
overdue, and without notice of any infirmity in the Instrument The supreme court is the court of final appeal, and also
has some
or defect in title. Holder is deemed Drima facie holder in due course; original jurisdiction, as in cases of habeas corpus, mandamus
and
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 other remedial writs.
in due course. A qualified indorser warrants the genuineness of
Days of Grace. Are abolished. (See Commercial Paper.)
the instrument; that he has a good title, and that he has no knowl­
The deposition of a witness out of the State shall
edge of any invalidity. An unqualified indorser warrants the instru­ ' beDepositions.
upon commission issued by the clerk of the court where
ment valla ana subsisting. One Inaorsing an instrument nego­ the taken
suit is pending, on the application of either party, on five days’
tiable by delivery is liable as Indorser. Except when excused, previous
to the other, which notice shall be accompanied
presentment for payment, or acceptance, on the day when due is by a copynotice
of the interrogatories to be attached to the commission.
necessary to charge drawer or indorser of an instrument. Present­ It
be issued to a person agreed upon by the parties or(to any judge
ment must be made on due day, and notice of non-acceptance or or may
of the peace, or to a commissioner appointed by the gover­
non-payment given op next business. day to all parties primarily norjustice
the State to take affidavits and depositions in, other States
liable unless one has authority for all. Every negotiable instrument and of
Territories, or to a notary public. The adverse party may file
is payable at the time fixed without grace. Waiver of protest is
and have attached to the commission such cross-interrogatories
deemed a waiver of formal protest, presentment, and notice of dis­ Ias
may desire. Parties may agree by written stipulation to
honor. Protest is required only in case of dishonored bills appear­ takehethe
orally, or, upon proper cause shown, may obtain
ing on their face to be foreign. It Is optional in case of other nego­ an order deposition
of court directing it to be so taken. Depositions can be
tiable Instruments. Bills drawn and payable within this State are taken at any
time after starting suit.
inland; others are foreign. Parties secondarily liable are discharged
by extension of time of payment. Payment by a party secondarily
Descents and Distributions. The estate of an intestate descends
liable, unless an accommodation party, does not discharge the instru­ one-half to the surviving husband or wife, and the residue to the
ment, but he may again negotiate it. A qualified acceptance dis­ surviving children and descendants of children, if any; if none,
charges drawer and indorser unless they assent. Assent is presumed then the whole descends to such surviving husband or wife. Except
after notice, unless they dissent. Holder can refuse to receive a as enumerated the estate of every Intestate descends: 1 To his
qualified acceptance.
No presentment for payment is necessary children surviving, and the descendants of his children who are dead,
after non-acceptance. A note drawn to maker’s order is not com­ the descendants collectively taking the share which their parents
plete unless indorsed by him. A check must be presented within would have taken if living. 2. If no children nor their descendants,
a reasonable time or drawer will be discharged to the extent of the then to his father and mother, share and share alike, ana if one dead,
loss caused by the delay. The bank is not liable to the holder until then tcKthe other; if no father or mother, then to his brothers and
It accepts or certifies the check. When not otherwise provided by sisters, and to descendants of brothers and sisters who are dead,
this act, the law merchant prevails. This act applies only to instru­ the descendants, collectively, taking the share of their Immediate
ments executed on or after July 20. 1897. All instruments falling ancestors in equal parts. 3. If none of the foregoing living, then to
due on Sunday or holiday are payable the next business day. In the grandfather, .grandmother, uncles, aunts and their descendants
Denver, during June, July and August,.Saturday from twelve o’clock the descendants taking collectively the share of their immediate
noon until twelve midnight is a holiday, but negotiable instruments ancestors In equal parts. 4. If none of the relatives above enufalling due on Saturday are payable and protestable on Saturday or merated be living, then to the nearest lineal ancestor and their descend­
next business day at the option of the holder. The provisions con­ ants, the descendants oollectively taking the share of their immediate
cerning commercial paper in this state are practically the same as ancestors in equal parts. All posthumous children or descendants
in all states where the Negotiable Instruments act has been adopted. of the Intestate, inherit as if bom in the lifetime of the Intestate;
Conveyances. No joint tenancy in real property unless expressly ■ »'a/l children of the half blood and all legally adopted children
declared in the deed, except in certain particular cases. Unless shall inherit as children of the whole blood. Illegitimate children
so declared grantees shall be deemed tenants in common. Lands inherit if parents subsequently intermarry.
Dower. Common law Dower and curtesy are abolished, as such,
not in possession may be conveyed. Not necessary for wife to join
in deed except in a conveyance of or a mortgage of a homestead, but statutory half of husband and wife in each others estate is given
entered as such of record. Witnesses are unnecessary. Seals' In lieu of old common law dower and curtesy. (See Statutes.)
are not necessary but a printed or ink seal is advisable. Unacknowl­
Executions. Executions may be issued where no appeal is taken,
edged deeds are deemed notice from the date of filing but they can
when placed in the hands of an officer become a lien upon all
not be read in evidence unless subsequently acknowledged or proved, and
unless they are on record for over thirty years. (See Acknowledg­ personal property of the debtor not exempt, in the county to which
rL lsAssued’
14 may be directed to the sheriff of any county in
ments; Husband and Wife.)
the State. Executions may issue upon judgments at any time after
Corporations. Three or more persons may form a corpora­ 5 days from judgment and within twenty years from the date of entry
tion by filing a certificate in the proper offices, stating the name, but from and after twenty years from the entry, of judgment, it is
objects for which organized, amount of capital stock, number of considered satisfied unless revived as provided by law. Debtor or
shares (not less than $1 .0 0 or more than $1 0 0 .0 0 per share), term of legal representative has six months to redeem land from sale under
existence (not to exceed twenty years, except in particular cases), execution. Judgment credtior has three months after expiration of
number of directors (not less than three or more than thirteen), and said sm months. Judgments can be made a six year lien on real
names of those to manage the corporation for the first year, the place tetate of debtor by filing transcript with recorder of the county where
where principal office Is to be kept, and counties in which Its business is the real estate is situated.
to be carried on. If part of the company's business is to be carried
Exemptions. Homestead, consisting of town house and lot or
on beyond the nmlts of the State, that fact shall also be stated in lots,
of any farm to the value of not to exceed $2,000, is exempt,
the. certificate. The certificate shall also state whether or not cumula­ whenorsuch
homestead has been entered of record as such, and is
tive voting shall be permitted. Fee for filing Articles of Incorporation occupied
by a householder, the head of a family. Personal property
of domestic companies is $2 0 , and 2 0 cents on each thousand dollars
includes all wearing apparel of the debtor and his family
in excess of $50,000. Foreign corporations $30, and 30 cents on each exempt
school books and library, beds and bedding, stoves, cookthousand dollars, in excess of $50,000 represented by capital, property pictures,
lng utensils, and household furniture, not exceeding $100; provisions
and assets employed and located in Colorado. Directors of a mining and
fuel for six months; tools, implements, or stock in trade, up to
or manufacturing corporation cannot encumber the mines or plant
$2,00; one cow and calf, ten sheep and necessary food for six months!

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BANKING AND COMMERCIAL L A W S— COLORADO

working animals, up to $2 0 0 : the library and Implements of a pro­
fessional man up to $300; one bicycle and one sewing machine
Persons not the heads of families are entitled to tools, working animals,
and stock In trade, not exceeding $300 in value. When debtor
is head of family, or wife of head of family, 60 per cent of wages
due at time of levy, under éxecution, 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.
Fraud. Parties to any fraudulent sale of any lands, goods or
chattels, or who conceal, secrete, remove or dispose of any goods
or chattels, or are parties to any bond, suit, Judgment, or exe­
cution, contract or conveyance had made, or contrived with
Intent to deceive and defraud, or defeat, hinder, or delay creditors:
are criminally liable. One who purchases goods on credit under
an assumed or fictitious name with intent to defraud the seller;
or having purchased goods on credit shall, with intent to 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.
Frauds, Statute of. The following must be In writing: Con­
tracts for leasing of land! for period longer than one year or for
the sale of lands, or any interest in lands; every agreement which
by its terms is not to be performed within one year; every special
proniise 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 $50_or more, unless the buyer accepts and receives part of such
goods or the evidence of some of them, or the buyer at the time
pays part of the purchase money, (See Sales of Personal Property.)
Garnishment. (See Attachments.)
Holidays. The following are legal holidays in Colorado: First
day of January. 12th day of February. 22nd , day of February
30th day of May. 4th day of July. 25th day of December. Thanks­
giving Day. Arbor Day, being 3rd Friday in April. Colorado Day
being August 1 st. Labor Day, being 1 st Monday in September.
Columbus Day, being 12th day of October. In addition to the above,
Saturday is a legal half holiday during June, July .and August in ali
cities of Colorado having a population of 1 0 0 ,0 0 0 and over. Not ail
the above are legal holidays for every purpose.
Husband and Wife retain their separate property, real, personal
and mixed owned at marriage, and any such property which shall
come to either of them by descent, devise, or bequest, or the gift
of any person, for their own separate use. Such property of the
wife is not liable for the husband’s debts. Wife may carry on trade
or business, sue and be sued, contract debts, and execute promissory
notes, bonds, bills of exchange, and other instruments precisely as
If sole and may convey real estate without the husband Joining in
the deed. Any chattel mortgage upon, or sale of, the household
goods used by the family, and any conveyance of, or mortgage upon,
a homestead, and any assignment of future wages, or sums to become
due in the future, when made by husband or wife residing with the
other, must be Joined In by that other. A married woman may
make a will, but neither husband nor wife shall devise or bequeath
more than half of his or her property away from the other without
the consent in writing of the other, executed after death of the testator
or of testatrix. Marriage revokes a will previously made. The
husband is liable for the debts and liabilities of the wife contracted
before marriage to the extent of the real and personal property
be 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.
Interest. 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 pen- cent interest from presenta­
tion. Twelve per cent is the maximum interest rate fixed by the usury
law, of this state.
Judgments. A transcript of judgment may be filed in the office
of the county clerk and recorder of any county In the Staté, 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.)
lim itations. 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 deduoIble 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
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 doubtfid. (See 117 Fed. 400.)
Married Women. (See Husband and Wife.)
. Mechanics' Liens. Mechanics, material-men, contractors, sub­
contractors, builders, miners, and all persons of every class performing
labor upon, or furnishing materials used in the construction or repair
of any building, or any other structure or Improvement upon land,
also all who have rendered their professional, skilled service upon
such structure, have a lien upon the property; also those who work or
furnish materials or machinery for the working of a mining claim
or mineral deposit shall have a similar lien. Liens rank in the

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Federal Reserve Bank of St. Louis

1715

following order: 1 . Laborers or mechanics working by the day
or piece, without furnishing material. 2. Sub-contractors and
material-men, whose claims are either entirely or principally for
materials, machinery or other fixtures. 3. All principal contractors.
Laborers are allowed one month, material men two months, and the
original contractor three months after the completion of the structure,
within which to file claim of lien. Action to enforce such lien must be
commenced within six months after completion of the building
upon which It. is claimed.
Mortgages. Ordinary mortgages on realty , are in common use;
also deeds of trust to a public trustee and to private trustees. A
trust deed to private trustee Is foreclosed as is a mortgage. In case
the public trustee is named, the property is sold by him as provided
m 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 gnay 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
or the period of redemption the public trustee executes a deed to
the property to the holder of the certificate of sale, which is assignable.
Redemption from sales of mortgaged property the same as sales under
executions.
Notes and Bills of Exchange. (See Commercial Paper.)
Partnerships, Limited aid Special. A limited partnership
may consist of one or more general partners, jointly and severally
liable, and one or more special partners contributing a specified
amount of cash or property, who are not liable for the debts of the
partnership beyond the amount so contributed. Only the general
partners can bind the firm. A certificate must be signed, acknowl­
edged, published, and filed of record giving details of partnership.
All persons doing business under any name other than their per­
sonal names,, must file an affidavit showing the real persons repre­
sented, or they may not bring suits upon debts due, and may be
convicted and fined.
/
Powers of Attorney. Powers of attorney for the conveyance
of lands must be acknowledged in the same manner as deeds, and
must be recorded in the same county wherein the real property to
be conveyed is situate.
Protest. ?(See Commercial Paper.)
Replevin. A’ writ of replevin may Issue in any suit to recover
possession of personal property upon filing a bond in double the
value of the property, with affidavit of ownership or right to pos­
session, wrongful detention and value of property, etc.’ i Redelivery
bond In similar amount may be given by defendant in 48 hours after
levy.
Sales of Personal Property. Every sale; of 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 stook
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.)
Suits. (See Actions.)
Taxes are generally a lien on real estate until paid, as also upon
stooks 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 1 2 to
18 per cent per annum. Household goods to the value of $200 belong*
ing to a head of a family are exempt.
Wills. Males of the age of twenty-one years, and females of
the age of twenty-one years, may dispose of their real and personal
property by will, but personal property may be disposed or by will
by any person of the age of seventeen years. For restrictions as to
married persons, see ‘‘Husband and Wife.” All wills, Whether of
realty or personalty shall be in writing signed by the testator or
/some one for him in his presence and at his direction, and attested
in his presence by two or more credible witnesses.' Unless otherwise
expressed in the will an after-born child will share in the property.
Devises and bequests to witnesses are null and void, unless the will
be attested by a sufficient number of witnesses exclusive of such
persons. No will can be revoked otherwise than by the subsequent
marriage of the testator, or by burning, tearing, or obliterating the
same by the testator, or in his presence and by his direction and
consent, or by another will or 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 aU
property of non-residents must generally be administered to clear title
to real property situated in this State. (See Husband and Wife;
Descents and Distributions. Administration of Estates.)

1716

BANKING AND COMMERCIAL L A W S— CONNECTICUT
SYNOPSIS OF

T H E L A W S OF C O N N E C TIC U T
R E L A T IN G TO

BANKING AND COMMERCIAL USAGES

Revised b y Louis

M .

R osen blu th ,

Attorney at Law, New Haven.

Accounts. In all actions for a book debt, the entries of the
parties In their respective books shall be admissible in evidence.
(For limitation of actions on accounts, see Limitations to Suits.)
Acknowledgments. (See Conveyances.)
Actions. There is but one form of civil action. Mesne process
in civil actions consists of a writ of summons or attachment, de­
scribing the parties, the .court to which it is 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 wfilch 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.
Administration of Estates. The probate court has jurisdic­
tion of deceased estates. Administration on intestate estates is
granted to the husband or wife, or next of kin or to both. On their
refusal or Incapacity, or upon objection by any creditor or heir to
such appointment found reasonable by the court, then to any other 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 of this State may exhibit their claims against any
estate which has not been represented insolvent, at any tune within
one year after order of notice, and if presented more than six months
after order of notice, shall be entitled to payment only out of the clear
estate remaining after payment of claims exhibited within time
limited. Suit must be brought within four months from the time
of receiving written notice from the administrator or executor of a
solvent estate of the disallowance of a claim. Twelve months is the
usual time allowed for the settlement of deceased estates. . Admin­
istrators and executors may mortgage real estate if shown to be for
benefit of the estate, after due application to and hearing in probate
court.
Affidavits. Civil actions do not ordinarily have to be „supported
by affidavits. Affidavits have little weight as evidence, and are rarely
admitted as such.
Aliens. Any alien resident of any of the United States, and
any citizen of France, so long as France shall accord the same right
to citizens of the United States, may purchase, hold, inherit, or
transfer real estate In this State in as full a manner as native-born
citizens.
Arbitration. Parties to any controversy desiring to submit the
same to arbitration under a rule of court, and having signed, and
sworn to an agreement to that ^effect, may, upon filing, this agree­
ment in the court having jurisdiction of the subject matter, have
this agreement entered of record and obtain a rale 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 pf court of similar purport; or in case of an action
pending in court, if the parties thereto desire to refer it to arbitra­
tion, each may choose one arbitrator and the court appoint a third;
and in either of these three cases, the award of the arbitrators being
returned and accepted by "the court, judgment shall be rendered
pursuant thereto, and execution granted thereon, with costs.
Arrest. The body is exempt in ordinary actions for debts, except
for money received by one acting in a fiduciary capacity, or where
there is fraud in contracting the debt or in concealing attachable
property so that it may not be reached by civil process. In actions
generally, no attachment shall be granted against the body except
for fraud. A debtor committed to jail on civil process can be released
on taking poor debtors' oath. The debtor will not be released if his
oath is overcome by rebutting evidence.
Assignments in Insolvency. Operation of this section sus­
pended during continuance of U. S. Bankruptcy Act.
Attachments. Attachment may be made upon the original
process, and is served by attaching the goods or lands of the defend­
ant, or, if sufficient goods be not found, the person in 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 twenty 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.)
Banks. (See State Banks and Trust Cos.)
Bills of Exchange. (See Notes and Bills.)
Bills of Lading. Uniform Bills of Lading Act parsed in 1911.
Chattel Mortgages. (See Mortgages, Conditional Sales, and
Interest.)
Collateral Inheritance or Succession Tax. (See Taxes.)
Conditional Sales. All contracts for the sale of personal prop­
erty, except household furniture, musical instruments, bicycles,
phonographs and phonograph supplies and such property as is by
law exempt from attachment anil execution, 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 ac­
knowledged 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.

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Contracts. Ordinary provisions of Statute of Frauds apply.
Courts of probate having jurisdiction of the settlement of the estate
of any deceased person may, concurrently with the oourts of equity,
authorize the executor or administrator to convey the title of the
deceased in any real estate to any person entitled to it, by virtue
of any contract of such deceased person, and the court of probate
in which the guardian of any minor has been appointed may, in
like manner, order such guardian to convey the interest of his ward
In any real estate which ought in equity to be conveyed to 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.)
Conveyances. All conveyances of land must be in writing,
signed, sealed, and acknowledged by the grantor, and attested by
two subscribing witnesses. The word “seal” or the letters (L. S.)
may be used for a seal. The acknowledgment Is made by the grantor
before a judge of a court of record of this State or of the United
States, a clerk of the superior court, court of common pleas, or dis­
trict court-, justice of the peace, commissioner of the school fund,
commissioner^ of the superior court, notary public, town clerk, or
assistant town clerk, if in this State, and if m 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. Conveyance»
of real .estate situated in this State, executed and acknowledged
in any other State or Territory, In conformity with the laws of sucb
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 grantor and his heirs
must be recorded on the town records of the town In which the land
lies.
Corporations. Corporations may be formed under the general
laws by three or more persons for the transaction of any lawful busi­
ness except that of bank, savings bank, trust company, building,
and loan association, insurance company, surety 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 fo . 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 , 0 0 0 , number of shares and
par value of each, which shall hot 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 f»r either in cash or property, but if in prop­
erty, a majority of the directors must make and sign upon a record
book a statement of the amount for which the property is received
and its actual value. In case of fraud in such valuation, directors
personally liable.
Certificate of organization must be signed and sworn to by a majority
of the directors and filed in the office of the secretary of state, setting
forth the amount of stock subscribed for, amount paid in cash and
in property, 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. Receipt»
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
if 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.
Receiver may be appointed on application of stockholders own­
ing one-tenth of the stock, in case of fraud, mismanagement, or if
assets are in danger of waste by attachment, or when corporation
has abandoned Its business.
Annual statementsimust 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 $25 to the State.
Costs. For case before justice of the peace, actual cash cost»
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.)
.Courts. Terms and Jurisdiction. Superior court holds one term
per year in each county for the trial of civil causes, and has juris­
diction in all law and equity cases exceeding $500, and exceeding$ 1 0 0 in those counties where there are no courts of common pleas
Court of common pleas in Hartford, Fairfield, New London, and•New Havefi 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 ha»
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 court»
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-

BANKING AND COMMERCIAL L A W S— CONNECTICUT

number of probate districts—one for each district. Justices of the
peace have civil jurisdiction up to $100. In New Haven ana Hart­
ford jurisdiction of justice of the peace has been transferred to city
court, except in cases of summary process and bastardy.
Days of Grace. (See Notes and Bills of Exchange.)
Deeds. (See Conveyances.)
Depositions. May be taken in a civil action by a judge or clerk
of any court, justice of the peace, notary public, or commissioner
of the superior court, when witness lives out of the State, or more
than twenty miles from place of trial, is over sixty years of age and
unable to attend the trial, is going to sea, or out of the State, or by
age and infirmity is unable to travel to court, or is confined In jail.
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 piay 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 ana
capias.
Descent and Distribution itt Property in Intestate Estates.
(As to the share of a surviving husband or wife, see the title Husband
and Wife.) After the share of the surviving husband or wife, the
residue of the real or personal estate is distributed in equal 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 ne'xt 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.
Dower. (See Husband and Wife.)
Evidence. (See Courts, Insurance Company, Corporations.)
Executions. Issue on final judgment, and are returnable within
sixty days. No execution issued in an action founded on contract
merely can be levied on the body of the debtor except for breach
of promise of marriage, misconduct or neglect in office or profes­
sional employment, or breach of trust. 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
oontempt. (See Exemptions.)
Exemptions. Homestead, to the value of $1,000, if declaration
to hold it as such is recorded. Of the property of any one person,
his necessary apparel and bedding and household furniture necessary
for supporting life; any pension moneys received from the United
States while in the hands of the pensioner (which has been construed
to cover also such pension money when deposited in a savings bank);
implements of the debtor’s trade, his library not exceeding $500
in value; sundry domestic animais not exceeding $150 in value;
so much of any debt which has accrued by reason of the personal
services of the debtor as shall not exceed $15, including wages due for
the personal services of any minor child (but there shall be no exemp­
tion of any debt accrued by reason of the personal services of the
defendant against the clairu 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-stulTs; 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 $ 2 0 0 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.
Foreign Attachments. Goods concealed in the hands of agents
or debts due the defendant are reached by foreign attachment which
takes the place of garnishment. No assignment of future earnings
will prevent their attachment when earned unless made to secure
a bona fide debt, due at the date of such assignment, the amount
of which shall be stated therein as nearly as possible, nor unless
the term for which they are assigned shall be definitely limited in
the assignment, nor unless recorded before such attachment in the
town clerk’s office in the town where the assignor resides, or if he
resides without the State, in the town where the employer resides, and
a copy left with the employer. (See also Exemptions.)
Foreign Corporations. Every foreign corporation, except insur­
ance and surety companies and building and loan associations and
Investment companies (a corporation which has power to or does
sell or negotiate its own choses in action or sell, guarantee, or negotiate
the choses in action of other persons or corporations as investments),
shall, before transacting business in this State,, file in the office of
the secretary of the State a certified copy of its charter or certificate
of incorporation, together with a statement, signed and sworn to
by its president, treasurer, and a majority of its directors, show­
ing the amount of its authorized capital stock and the amount thereof
which has been paid in, and, if any part of such payment has been
made otherwise than in cash, such statement shall set forth the
particulars thereof. Sec. 83.—Every foreign corporation with an
office or place of business in this State, except Insurance companies,
surety companies, and building and loan associations, shall, before
doing business in this State, appoint in writing the secretary of the
State and his successors in office to be its attorney, upon whom
all process in any action or proceeding against it may be served;
and in such writing such corporation shall agree that any process
against it which is served on such secretary shall be of the same
legal force and validity as if served on the corporation, and that
such appointment shall continue in force as long as any liability
remains outstanding against the corporation in this State. Such

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1717

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 shall 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 Judgments. Not conclusive on question of Jurisdiction.
A foreign judgment when used by way of defence, is as conclusive
to every intent, as those of our own courts. In an action on a judg­
ment rendered in another State, evidence on the part of the defend­
ant that he had no legal notice of the suit and did not appear, is
admissible, although the record of the judgment stated that the
defendant appeared by his attorney. Where the foreign court
has a peculiar and exclusive jurisdiction, its decree is binding upon
the judgment of any other court, into which the same subject comes
Immediately into controversy. A judgment rendered/ by a court
in one State has no efficacy when it is sought to be enforced in Con­
necticut, unless such court had jurisdiction of the person against
whom it is rendered, acquired either by service upon him of the
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.
v
Fraud. All fraudulent conveyances, suits, judgments, executions,
or contracts, qaade or contrived with Intent to avoid any debt or
duty belonging to others, shall, notwithstanding any pretended con­
sideration therefor, be void against those persons only, their heirs,
executors, administrators, or assigns, to whom such debt or duty
belongs.
Garnishment. (See Foreign Attachments.)
Guaranty Companies. (See Surety Companies.)
Holidays. (See Notes'and Bills of Exchange.)
Husband and Wife. In all marriages contracted after April 19,'
1877, neither husband nor wife acquires by force of the marriage
any right to or interest in any property held by the other before
the marriage or acquired after the marriage, except as to the share
of the survivor In the property of the other as hereinafter stated.
Wife married subsequent to April 19,1877, may hold and convey
real estate separate from her husband. Separate earnings of the
wife are her sole property. On the death of the husband or wife
the survivor shall be entitled to the use for life of one-third in/value
of all the property, real or personal, owned by the other at the time
of his or her decease, after the payment of all debts and charges
allowed against the estate. The right to such third can not be defeated
by will. Where there is no will the survivor shall take such third
absolutely, and If there are no children, shall take all of the estate
of the decedent absolutely to the extent of $2 , 0 0 0 , 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 wno may De 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 coqrt of errors, and praying that said temporary
injunction may be continued until the final decision therein; ana
unless said court shall be of opinion that great aDd Irreparable injury
will be done by the further continuance of said injunction, or that
said application is made tor delay and aot 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

1718

BANKING AND COMMERCIAL L A W S— CONNECTICUT

that above mentioned, a stay of operation of such injunction, pending
final decision of supreme court of errors, may be, granted for similar
reasons. The court in which such case is pending may, however,
If In it# opinion the cause of justice shall so require, dissolve said
temporary injunction or .remove the stay Of saia permanent ^injunc­
tion while said cause is so pending in the supreme court of errors.
Insolvency. Suspended, owing to United States Bankruptcy Act.
Interest. Legal rate, in absence of express agreement, 6 per cent;
no more than 6 per cent can be recovered in either case after debt
becomes payable.- Express agreements in which 12 per cent is
charged are valid and any person making a greater charge is liable to
fine and imprisonment. There is no limit to the interest charge
which can be made by any National Bank or .any Bank or Trust'
Company, incorporated under the laws of this State nor is there any
limit to the interest charge on a bona fide mortgage of real property
■exceeding the sum of five hundred dollars. Special law for pawn­
brokers.
<
.
Judgments carry 6 per cent interest, but are not liens, and execu­
tion may be had at any time during the life of both parties. Judg-.
ment by default may be obtained if the defendant makes no appearance
on or before the second day of the session. Certificate of judgment
may be recorded by judgment creditor or his assignee in town clerk’s
office, and such judgment from the time of filing such certificate shall
constitute a lien upon the real estate described in such certificate, and
if such lien be placed upon real estate attached in the suit upon which
such judgment was predicated and within four months after such
judgment was rendered, it shall hold from the date of such attachment.
Such lien may be foreclosed or redeemed in the same manner as
mortgages upon the same estate, and may also be foreclosed by decree
of sale.
Jurisdiction. (See Courts.)
Liens. (Mechanics’ Liens.) Mechanics’ liens for labor or mate­
rials furnished in the construction or repair of any building may be
filed by original contractor within sikty 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 ceased
furnishing materials or render services and also file his lien within
said time. Payment made by the owner of the building to the
original contractor in accordance with contract shall be considered as
made in good faith unless the sub-contractor has duly notified said
owner to withhold payment. Mechanics' liens ai;e foreclosed same
as real estate mortgages. Unless foreclosure is instituted, liens
expire two years after filing. (For judgment Liens, see Judgments.)
Limitations to Suits. Open accounts and contracts not -under
seal, six years; contracts under seal and promissory notes not negoti­
able, seventeen years. Usual exceptions in favor of married women,
minors, lunatics, and those imprisoned. The time during which
the party against whom there may be such cause of action shall be
without the State shall be excluded from the computation. Title
to real estate by adverse possession may be gained in fifteen years.
There is no limitation against judgments but the common law pre­
sumption of payment after, twenty years exists.
Limited Partnerships. Such partnerships (except banking and
Insurance) shall consist of one or more partners, jointly and severally
responsible, as in ordinary cases, to be called general partners; and
one or more partners, furnishing capital to the partnership stock,
whose liability shall not extend beyond the capital so furnished by
them, to be called special partners. Such partnerships shall be
conducted uhder 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
i 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 part­
ners 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 once 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
such partnership, each year during the continuance thereof, a sum
not exceeding 1 0 per centum upon the cash contributed by him
to the capital stock; provided' that such payment shall only be
made out of the net profits actually earned by such partnerships
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.)
Mortgages of real estate are executed, acknowledged, and recorded
In the same manner as deeds, and are foreclosed by strict foreclosure
or by a decree of sale. Chattel mortgages to be good against third
parties, where the mortgagor retains possession, must be executed,
acknowledged, and recorded as mortgages of land, and can only be
made of the following described personal property—with or without
the real estate in which the same js situated or used—namely:
machinery, engines, of implements situated and used in any manu­
facturing or mechanical establishment; machinery, engines, imple­
ments, cases, types, cuts, or dates situated and used in any print­
ing, publishing, or engraving establishment; household furniture m a
dwelling house used by the owner therein in housekeeping; bay
and tobacco in the leaf in any building. Piano, organ, melodeon, and
any musical instrument used by an orchestra or band. Briok burned
or unbumed, in any kiln or brickyard. Hotel keepers may mort­
gage the furniture, fixtures, and other personal chattels contained

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and used in the hotels occupied oy them or employed is connection
therewith. Chattel mortgages are foreclosed by sale under order
of court. In all chattel mortgages there must be a particular descrip­
tion of each article of personal property. Judgment for deficiency
after sale, permitted.
? Notaries Public hold office for two years from first day of Feb­
ruary of year in which commissioned, unless oommission is sooner
revoked by governor. May exercise their function at any place in
State. May take acknowledgments, administer oath, take deposition,
subpoena witnesses to give deposition. The authority and official
acts of any notary may be certified to by the clerk of the superior
court of the county in which he resides, except in New London County,
where the certification is made by the clerk of the court of common
pleas.
Notes and. Bills of Exchange. Negotiable Instruments Act
now in force.
Powers of Attorney. • Where a deed is executed by a power of
attorney it is recorded with thé deed. Powers of attorney to convey
real estate must be executed and acknowledged in the manner required
for the execution and acknowledgment of the conveyance Itself.
Private Banks. - (See end of State Banks and Trust Companies.)
Probate Law. (See Administration of Estates, Appeals, Assign­
ments and Insolvency, Collateral Inheritance Tax, Courts, Descent
and Distribution of Property, Husband and Wife, and Wills.)
Protest. (See Notes and Bills of Exchange.)
Records. Warranty, mortgage, quitclaim deeds must be recorded
in office of town clerk in town where land lies, also assignments of
mortgage, conditional bills of sale, chattel mortgages, assignments
of future earnings. Certificate of trade-mark to be filed for record
in office of secretary of State. Certificate of unsatisfied judgment
to be filed for record In town clerk’s office. (See Conveyances, Insur­
ance Companies, Limited Partnerships, Judgments, etc.)
Redemption. (See Mortgages.)
Replevy. Replevin lies for goods wrongfully detained, in which
the plaintiff has a general or special property with right to immediate
possession. A writ of replevin can not issue except upon an affidavit
In which the affiant states the true value of the goods to be replevied,
and that he believes that the plaintiff is entitled to the Immediate
possession of the same, nor until the plaintiff furnishes a bond with
sufficient surety in a sum double the value of the property. This
bond or recognizance must be signed by the obligbrs in presence
of at least one witness other than the authority taking the recog­
nizance.
Sale of Retail Business. Any person who makes it his business
to buy commodities and sell the same in small quantities for the
purpose of making a profit and desiring to sell the whole or a large
part of his stock in trade, must file a notice of such intention in the
town clerk’s Office 'not less than ten nor more than thirty days
prior to such sale. *
Sales. Uniform Sales Act passed in 1907.
Service. Service of a writ of summons in case of a resident is
made by reading it and the complaint accompanying it in the defend­
ant’s hearing, or by leaving an attested copy in the defendant’s hands
or at his usual place of abode; in case of a non-resident, the several
courts, other than courts of probate, and the fudges, clerks, and
assistant clerks thereof, or any county commissioner, in term time
or in vacation, may, except where it is otherwise specially provided
by law, make such orders as may be deemed reasonable, in regard
to the notice which shall be given of the institution or pendency
of all complaints, writs of error and appeal from probate* which
may be brought to or pending in any court, when the adverse party,
or any person so interested therein, that they ought to be made
parties thereto, reside out of the State, or when the names or resi­
dences of any such persons in Interest are unknown to the party
Instituting the proceeding; and such notice having been given and
proved shall be deemed sufficient service and notice.
State Banks and Trust Companies. A reserve fund of 15 per
cent of aggregate of deposits must be held and maintained in the
banking office, of which 4-15 must be gold and silver coin, 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 $1 0 ,0 0 0 , or acceptable securities of that amount for the protection
of customers from styling themselves bankers in the conduct of their
business. Banks and trust companies maintaining savings depart­
ments must invest deposits according to the laws of the State con­
cerning investments of savings banks, and must make sworn state­
ments to the bank commissioners on October 1st in each year and
oftener. if required by the commissioners, of the amount of such
^deposits and the securities in which they are invested. A State Bank
or Trust Company may be incorporated under General Laws as pro­
vided in Chapter lt)4, Public Acts of 1913.
Suits. (See Actions.) ,
\
Surety Companies. Any corporation with a paid-up capital of
not less than $250,000, incorporated and organized for*the purpose of
! transacting business as suretv-on obligations for Dersons or corpora­
tions, on comnlying with certain requirements of law may be accepted
as -surety upon the bond of any person or; corporation required by

BANKING AND COMMERCIAL LA W S— DELAWARE

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 pf the . capital of such company and11its
Investments and risks. An annual license is granted if annual state­
ment be satisfactory. Local agents must procure certificates of
authority to act as agent from the insurance commissioner. The
insurance commissioner may also at any time examine the
affairs of any surety company doing business in the State. A reserve
fund must be maintained equal to 50 per cent of the gross amount
of premiums received on business in force. No such company can
incur on behalf of any one person or corporation a liability for an
amount larger than one-tenth of its paid-up capital stock and Burplus without giving collateral security.
Taxes. Land may be. sold for delinquent taxes after due adver­
tising, only so much being sold as is necessary to pay taxes and costs.
Owner has one year in which to redeem, by paying the purchase
money, with 12 per cent interest. Bonds, notes, or other choses
in action, except bonds and notes secured by mortgage on real estate
situated in this State, may be exempted from all local taxation by
raying to the State a tax of 2 per cent on the faoe amount thereof
lor 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 time of
his death which passed by gift, to take effect at death or by will to
any person, corporation, voluntary association or society, with exemp­
tions In favor of charities and on certain particular kinds of propertyRates of the taxes are 1 per cent of the value of all property in excess
of *1 0 ,0 0 0 passing to any parent, grandparent, husband, wife, lineal
descendant, adopted child, adoptive parent and lineal descendant of
any adopted child, up to *50,000 with graded increases; 3 per cent
on property passing to the husband or wife of any child of such
decedant to any stepchild, brother or sister of the full or half blood
and to any descendant of such brother or sister in excess of *3 ,0 0 0
up to and including *25,000, with graded increases; 5 per cent of the
value of all property in excess of $500 passing to any persons other
than those above 'mentioned up to and including *50,000 with graded
increases. Only one exemption is allowed for,each class.
Transfer of Corporation Stocks. (See Corporations.)
Trust Companies. (See State Banks and Trust Companies.)
Warehouse Receipts. Uniform Warehouse Receipts Act passed
In 1907.
.
Wills. All persons of the age of eighteen years, and of sound
mind, may dispose of their estate (real or personal) by will. No
devise, except for public and charitable uses, or for the care of ceme­
teries or graves, shall be made to any persons but such as are at
the time of the death of the testator in being, or to their immediate
Issue or descendants. Wills must be in writing, subscribed by the
testator, and attested by three witnesses, each of them subscribing
IB 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 born 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.
Workmen's Compensation Act. Passed in 1913.

SYNOPSIS OF

T H E L A W S OF D E L A W A R E
R E L A T IN G TO

BANKING AND COMMERCIAL USAGES

Revised' by

Attorneys a t Law, Wilmington.
(See Card In Attorneys’ List.)

T ow nsen d & B a r s k y ,

Laws o f 1919 Session not available at time o f going to press,

Acknowledgment. (See Conveyances.)
Actions. Suit may be commenced by capias, summons, and
(where defendant is non-resident) by attachment of property. Sum­
mons in justice’s court may be issued returnable in 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 odurt sits. Service by publi­
cation allowed in the court of chancery only.
Affidavits may be administered in the State by the chancellor,
any Judge, justice of the peace, or notary public; and out of the
State.,by any official duly authorized to take acknowledgments of
deeds, etc.; but before a notary public is preferable. The affiant
must sign the affidavit.
Assignments and Insolvency. There is a domestic insolvent
law providing for a full surrender.and equal distribution of all property,
but it is very seldom used, and there is no provision in the act for
the discharge of the debtor upon his making an assignment. The
assignee must file a schedule of property assigned within thirty days,
and two appraisers are then appointed by the chancellor. Assign­
ments must be for the benefit of all creditors alike.

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Federal Reserve Bank of St. Louis

1719

Attachments. Domestic attachment may be Issued against an
inhabitant of this State, after a return to a summons or capias issued
ten days before the return thereof, of non est inventus, and proof
of cause of action; or upon the filing of an affidavit “that the defend­
ant, is justly Indebted to the plaintiff in a sum exceeding $50, and
has absconded from the place of his usual abode, or gone out of the
State with Intent to defraud his creditors, or to elude process, as
is believed.” The writ directs the attachment of property and
summons of garnishees. Attachment may be dissolved on entering
security to satisfy any judgment to the extent of the propertyfattached
that may be recovered against the defendant. On return of attach­
ment the court appoints three oersons as auditors of the claims of
creditors; tne creditor attaching is allowed a double share for his
diligence, not to exceed full amount of debt. Any creditor not duly
presenting his claim receives no share in the distribution. Plaintiff
is not required to give security. Wages are exempt from attach­
ment in New Castle County except for board or lodging. Foreign
attachment may be Issued against -any person not an Inhabitant
of the State after a return of non est as in domestic attachment,
or upon affidavit being made “that the defendant resides out of the
State, and is Justly indebted to the plaintiff in a sum exceeding $50.”
Foreign attachment may also issue against a foreign corporation,
but in this case the amount of the real debt must be particularly
specified in the affidavit, and must exceed $50. Unlike domestic
attachments the plaintiff in foreign attachments has the benefit of
his own discovery and does not share with other creditors. It is
similar to domestic attachment in all respects except as to appoint­
ment of auditors and distribution among creditors. The court or
any judge upon petition may Investigate any allegation in affidavit,
exoept as to the amount of the debt, and dissolve the attachment
if sufficient ground be not shown. Foreign attachment is otherwise
dissolved by entering special bail. By recent amendment in cases
of foreign attachment it is no longer necessary to. enter security to
discharge the attachment, before an appearance can be entered.
An appearance may be entered without security to discharge the
attachment, and the goods attached remain as security pro tanto.
Banks. There is no general banking act and but one State bank,
which was chartered by the legislature in 1807. Banking companies
can not be formed at present, except by special act of the Legislature.
Thé holders of stock are taxed at the rate of one-fourtlf of one per
centum on the cash value of each share of capital stock. There
have been recently several trust companies formed in the State,
either by special act before the 1897 constitution, and by general
corporation act since, which have been granted banking powers
by special statute. Banks and trust companies are now subject to
examination and inspection by insurance commissioner. By recent
amendment, National Bank may act as Trustee, Executor, Adminis­
trator, or Registrar of stocks and bonds. Bank by recent amend­
ment, prevented from loaning more than ten per cent of capital stock
and surplus to-any one person.
Bills and Notes. Acceptance should be- in writing on the bill.
All checks, notes, drafts, or bills, foreign or Inland, payable without
time or at sight, are due on presentment without grace.
Chattel Mortgages must be accompanied with an affidavit that
the mortgage is made for the bona fide purpose of securing a debt,
and not to defraud creditors, and if recorded within ten days from
the acknowledgment thereof, is a valid lien for five years on personal
property, the possession of which may remain in the mortgagor.
Claims Against Estates of Deceased Persons are paid In the
following order: 1 . Funeral expenses. 2 . Bills for medicine, medr
leal attendance, nursing, and necessaries for last sickness of the
deceased. 3. No more than one year’s wages of servants in house
and laborer on a farm. 4. Rent for not more than one year, either
growing due or in arrears. 5. Judgments and decrees in equity
against deceased. 8 , Recognizances, mortgages, and other •obliga­
tions of record. 7. Obligations and contracts under seal. 8 . Con­
tracts under hand for the payment of money, delivery of goods,
wares or merchandise. 9. Other demands. Administration is
granted: 1. To the person entitled to the residue. 2 . To one or
more of the creditors. 3. To any suitable person, resident or non­
resident. Bond must be given for an amount double the value of
the estate. Notice must be given of claims against the deceased
within six months from granting of letters (except claims of record),
or executor or administrator is protected in paying debts of a lower
grade. One year is allowed for settling the estate, and Until the
expiration of that time. Tie need not make distribution, nor is he
chargeable with interest on the assets in hand. He may be removed
upon sufficient cause. Letters granted in other states and produced
under the seal of the officer or court granting the same, is competent
authority for him to act in this State.
Contracts are joint and several, unless otherwise expressed.
Conveyances of Real Estate must be under seal (a scroll IS
sufficient), and should be executed before one witness at least. Deed
may be acknowledged /out of the State before any consul-general,
consul, or commercial ’agent of the United States, duly appointed
In any foreign country at the places of their respective official residence;
before the judge of any district or circuit court of the United States,
or the chancellor or any judge of a court of record of any state, terri­
tory, of country, or the mayor or chief officer of any city or borough,
and certified under the hand of such chancellor, judge, mayor, or
offloer, and the seal of his office, court, city, or borough, by certificate
endorsed upon or annexed to the deed; or such acknowledgment
or proof may be taken in any such court and certified under the hand
of the clerk or other officer of said court, and the seal of said court
in like manner. In case of such certificate by a judge, the seal of
his court may be affixed to his certificate, or to a certificate of at­
testation of the Clerk or keeper-'of the seal. Such acknowledgment
may also be taken by any commissioner of deeds for this State, or
by a notary public of any state or territory. Wife must joifi in deed
to bar dower, and husband to bar curtesy. A deed by a corpora­
tion may be executed and acknowledged,by the president or other
presiding officer duly authorized by resolution of the directors, trustees,
or other managers, or by the legauy constituted attorney of such cor­
poration Under its corporate seal. Deeds must be recorded within
three months after sealing and delivery, to avail against creditors,
mortgagee, or bona fide purchasers, without notice.
Corporations. General Corporation Act for all purposes other
than banking. Each stockholder is individually liable for the amount
of capital stock not paid in in proportion to the amount subscribed
by him. Corporations of other states may be sued in this State,
and the property of the same found here may be seized by attachment.
All foreign corporations must file with the secretary of state, state­
ment of assets and liabilities, and- the name of its authorized agent
upon whom process may be served; must pay a State tax of $50,
and fees of secretary of state (this State tax is paid but once) must
file with the prothonotary of ehch county the name of authorized
agent upon wfyom process may be served.
Costs. Non-resident plaintiffs may be required to give security
for costs.
- Courts.' Terms and Jurisdiction. The different courts of the
State are as follows: Supreme court; regular term at Dover third
Tuesday in June and January. Court of chancery and orphans'

1720

BANKING AND COMMERCIAL L A W S — DISTRICT OF COLUMBIA

court; regular terms. New Castle County, at Wilmington, on the
fourth Monday In March and second Monday In September; Kent
County, at Dover, third Monday In March and third Monday In
September; Sussex County, at Georgetown, second Monday in March
and first Monday In September. Superior court, and court of general
sessions are held In New Castle County at Wilmington the first Mon­
day In January, March, June, and November and third Monday In
September, In Kent County at Dover, the first Monday In July and
the third Monday In February, April, and October, and In Sussex
County the first Monday In February, April, and October and last
Monday In June In Georgetown. Oyer and terminer meets on call
of judges. Jurisdiction—The superior court has jurisdiction In all
civil cases, but If suit be brought for less than $50. costs will not
be recovered. Justice’s jurisdiction, $200. New Court known as
Court .of Common Pleas was recently created for New Castle County.
Presided over by one of the Judges of Superior Court. Open con­
tinuously except .July and August. Jurisdiction of all cases ex con­
tractu between $200 and $500; ex delicto up to $500.
Depositions. In any suit pending, the prothonotary, on appli­
cation. enters a rule commission on the part of the applicant to any
commissioner of the State or other person/ The commission issues
on ten days’ notice of Interrogatories filed. Exceptions to Interroga­
tories must be filed before the commission Issues, and are heard
before a judge at chambers. Exceptions to the execution must be
filed within two days after publication. If the commissioner employ
a clerk, add “The clerk by me employed tn taking, writing, tran►scribing, and engrossing the said depositions, having first duly taken
the oath assigned to the said commission according to the tenor
thereof.’’
\
Executions are a lien upon personalty from the time the sheriff
received the writ. If actual levy be made within sixty days there­
after. Priority of lien remains In force five years. Execution
may be Issued within five years after date of judgment. An execution
from a justice Is a lien from time writ Is received. If levy be made
within thirty days and priority of writ remains for two years. Execu­
tion can not Issue after three years without revival. Goods and
chattels of a tenant are liable to one year’s rent in preference to
the execution. There is no redemption on property sold under
execution or mortgage. In New Castle County wages for a month
of employes of corporations' are preferred to the execution. Stay
of six months is granted In courts of record upon judgments recorded
for want^ of* affidavit of ^defence, provided security be given within
twenty days after judgment. In justice’s courts defendant may have
six months' stay. Upon pleading his freehold; nine months’ stay upon
giving security.
Exemptions. No homestead law. Family pictures, blble, and
library; lot in burial ground and pew In church; all wearing apparel;
Sewing machines in private families; tools of trade not to exceed $50
In Kent, or $75 in New Castle County; and to the head of a family
In New Castle County $200 of personal property and in Kent County
$150, consisting of household goods only. No additional exemption
In Sussex. The provisions of the exemption law extend and apply
to a person dying and leaving a widow, giving and securing to such
widow the same benefit of exemption that her husband would have had
if living. Wages are exempt from execution attachment in New Cas­
tle County except for board or lodging. Pia’nos and organs leased
or sold under contract exempt from execution process or distress
for rent, provided the lessor or vendor notifies the landlord In
writing of the claim thereof.
Frauds. Sale of goods void as to third parties, unless for a valu­
able consideration and the possession thereof be actually delivered
to the vendee. A promise to pay the debt, default, or miscarriage
of another to the extent of $5 Is binding If proved by the oath of the
promisee; for an amount between $5 and $25 must be proved by
one credible witness or some memorandum In writing signed by the
person to be charged therewith; for an amount exceeding $25 there
must be some memorandum or promise In writing signed by the
party to be charged therewith. Salé of Goods in Bulk Law recently
amended imposing penalty uponv seller and purchaser where require­
ments as to notice on creditors is not carried out.
Garnishment. All persons except public officers, attorneys, etc.,
are subject to summons as garnishees. Wages are not subject to
garnishment In New Castle County except for board or lodging.
Holidays, Legal. .January 1st, February 12th, February 22d,
Good Friday, May 30th, July 4th, first Monday in September, October
12—Columbus Day; Day of the general* election as it biennially
occurs. Thanksgiving Day, and Christmas, and Saturday afternoon
in New Castle County. If legal holiday falls on Sunday the next
day is observed. Negotiable paper falling due on legal holidav is
due and payable on the next preceding secular day; if falling due on
Saturday half-holiday, if not presented for payment before noon, is
not due until the next succeeding secular day.
Homestead. There Is no homestead law In Delaware.
Interest. Legal rate Is 6 per cent. Any person who takes more
for the use or the loan of money shall forfeit and pay to any one suing
for the same a sum equal to the money loaned, one-half for the use
of the State, and the other for the party suing.
Judgments of courts of record are liens upon all real estate of the
debtor in the county where judgment is entered from their date, for
a period of ten years and may be revived and kept alive and a lien
by SEI. FA. or agreement before expiration of ten years from date of
entry. This liep may be extended into either or both the other
counties. Judgments can only be obtained in this State upon judg­
ments in other states by suit, upon a certified copy of the record of
said judgment authenticated under the Act of Congress passed
May 26, 1790. Transcripts of judgments recovered before justices
of the peace may be entered in the superior court and thus be made
liens on real estate after execution and return by Constable on goods
of defendant. Satisfaction must be entered within sixty days after
payment. Judgment in Court of Common Pleas is not a lien on
Real Estate unless Transcript filed as in case of Justice of Peace.
Limitations. Contracts not under hand and book accounts three
years; bills and notes under hand six years. Judgments and special­
ties are merely presumed to have been paid after the lapse of twenty
years, but this presumption may be overcome by proof to the con­
trary. Ail judgments must be renewed witnin ten years in order
to preserve their lien on real estate. The statute does not begin to
run in favor of non-resident debtor until he come into the State, in
such manner that he may be served with process, and if a debtor
remove after the cause of action has accrued, the time of his absence is
not computed. On recognizances of sheriffs’, administrators’, or
executors’ bonds, within six years from date. Bond of guardian
within three years from the determination of guardianship.
Married Women retain their real and personal property owned
at marriage or received from any person other than the husband.
May receive wages for their personal labor, and prosecute and defend
suits for preservation and protection of their own property, as If
unmarried, and the rents, Issues, and profits of their separate estate
are not controllable by the husband. Dower: The widow Is entitled
to one-third part of all the lands and tenements whereof her husband
was seized at any time during her marriage, unless she shall have
relinquished such right, for and during the term of her natural life.

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If her husband die without Issue or the children of Issuéjshe takes a
moiety instead of a third part of the real estate. A married women
of the age of twenty-one years and upward may dispose of her prop,
erty, both real and personal, by will, without the written consent
of her husband, but subject to his right of courtesy. Two or more
witnesses are necessary for a vylll. Husband and wife may testify
In all civil actions In which either or both are or may be parties to
the suit.
Mortgages of Real Property are executed and acknowledged like
other deeds. They become a lien from the time they are lodged
with the recorder. Upon foreclosure of same there Is no redemption
of property. A purchase money mortgage should be recorded within
thirty days to avail against a subsequent Innocent holder.
Proof of Claims. The full individual names of plaintiffs and
defendants, together with style of doing business, must be stated;
or if a corporation, the laws of what state under which incorporated.
One of the plaintiffs, if a partnership, or the treasurer or cashier
of a corporation, must make affidavit to the amount claimed, giving
an Itemized copv of the cause of action’ attached thereto. It Is
advisable to have the affidavit made before a notary public, though
It may be made before others. (See Affidavit.)
Protest. (See Bills and Notes.)
Replevin. Thé writ issues out of the superior court to obtain
possession of goods unlawfully taken or unlawfully detained. No
affidavit Is required, but before the officer to whom It Is directed
can execute It the plaintiff or some substantial person for him must
enter Into bond to such officer In a penalty of double the value of
the goods to be replevlned, conditioned to prosecute the suit with
effect, etc. > Defendant may give counter bond and retain the goods.
Summons may be served on the defendant by stating the sub­
stance of It to him personally at any time before the return of the
writ, or by leaving a copy of It at his usual place of abode In the
presence of- some adult person six days before the return thereof.
Against a corporation may be served on the president or head officer, If
residing In the State, and If not, on any officer, director, or manager
of the corporation or duly authorized agent named for said services.
In chancery service may be had by publication under order of the
chancellor. From a justice service must be personal if forthwith,
otherwise four days must intervene before hearing.
Taxes laid and Imposed by the levy court of a county or by the
State for its own purposes, are a lien upon all thé 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.
Wills. Any person of the age of twenty-one years or upward,
of sound mind, may make a wiil 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 $ 2 0 0 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 bom after the date of the will
of the parent are entitled to the same share of the parent’s estate
as If such parent had died Intestate.

SYNOPSIS OF

T H E L A W S OF
T H E D ISTRICT

OF

CO LU M BIA

R E L A T IN G TO

BANKING AND COMMERCIAL USAGES

Prepared and Revised by J o h n B. L a h x e r . Esq. Attorney at Law,
Washington Loan & Trust Bldg., Washington.
Acknowledgments. The deed of a corporation shall be executed
by having the seal of the corporation attached and being signed with
the name of the corporation, by its president or other officer, and shall
t>e acknowledged as the deed of the corporation by an attorney
appointed for that purpose, by a power of attorney embodied In the
deed or by one separate therefrom, under the corporate seal, to be
annexed to and recorded with the deed.
Acknowledgment, of Deeds. When any deed or contract under
seal relating to land is to be acknowledged out of the District of
Columbia, but within the United States, the acknowledgment may
be made before any judge of a court of record and of law, or any
chancellor of a State, any judge or justice of the supreme, circuit, or
territorial courts of the United States, or any justice of the peace or
notary public: Provided that the certificate of acknowledgment
aforesaid, made by any officer of a State or Territory, not having a
seal, shall be accompanied by a certificate of the register, clerk, or
other public office! that the officer taking said acknowledgment was
In fact the officer he professed to be. Deeds made In a foreign coun­
try may be acknowledgedvbefore 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.

BANKING AND COMMERCIAL LA W S— DISTRICT OF COLUMBIA

Actions. The common law forms of actions are used except as
modified by statutes.
j
Administration. The probate court, a special term of the
supreme court of the District of Columbia, has exclusive jurisdiction
of the settlement of, estates. A written petition stating the facts
In the case must be filed with the register of wills. This petition is
aoted upon by a justice of the supreme court of the District, who sits
daily. All executors and administrators and guardians are required
to give bond with security to be approved by the court. The testator
may waive the giving of bond, but the court always requires a bond
sufficient to cover the debts and legacies of the deceased not to exceed
double the value of the personal estate. By act of Congress, certain
trust companies incorporated thereunder may act as executor or ad­
ministrator without bond, and corporations having power under their
charters may act as sureties in all cases where individuals can. Credi­
tors may be barred in thirteen months provided the required notice
is properly published. Probate court may order sale of real estate to
pay debts, in case personal assets are insufficient. Assets of non resi­
dents in District of Columbia are subject to claims of local creditors
for one year after death.
, Affidavits. Affidavits for use in thé District or Columbia should
be taken before a justice of the peace, notary public, judge of any
court of record, or a United States commissioner.
Aliens. Aliens may hold real and personal property in the District
of Columbia, and may acquire real estate by descent. Alien corpora­
tions are prohibited from acquiring real estate. Corporations of which
over 50 per cent of the stock is or may be owned by persons or asso­
ciations not citizens of United States can not acquire or own real
estate in District of Columbia.
Appeals. Appeals will lie from the municipal court to the supreme
court of the District of Columbia where more than $ 1 0 0 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 :
1 . In cases where jurisdiction of trial court is in issue.
2 . Prize cases.
\ £
3. Constitutional questions or treaties involved.
4. Where validity of any authority exercised under U. S., by an
officer is in question and
5. Construction of any law of U. S. is drawn in question.
Arrest. There is no imprisonment for debt In the District of
Columbia. The court has the power to imprison for non-payment of
alimony in divorce cases.
Attachments 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.
Bills and Notes. 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.)
Chattel Mortgages. No bill of sale or mortgage or deed of trust
to secure a debt of any personal chattels whereof the vendor, mort­
gagor, or donor shall remain in possession, is valid and effectual to
pass the title herein, except as between the parties to such instru­
ment and as to other persons having actual notice of it, unless the
same be executed and acknowledged and within ten days from the
date of such acknowledgment recorded in the same manner as deeds
of real estate; and as to third persons not having notice of it, such
instrument shall be operative only from the time within said ten
days when it Is delivered to the recorder of deeds to be recorded.
Collateral^. 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 91 the collateral note which usually pro­
vides that the collateral may be sold upon non-payment of the prin­
cipal of the note, either at public or private sale, and In such cases the
purchaser at any such sale obtains a valid title to the collateral sold.
Contracts. Every contract and obligation entered into by two
or more persons, whether partners or jnerely 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 it the others had not been joined in the suit. Any of
several joint debtors, when their debt Is overdue, may make a separate
composition or compromise with their creditors.
Corporations. Any three or more persons may form a company
tor the purpose of carrying on any enterprise or business which may be
lawfully conducted by an individual, excepting banks of circulation
or discount, railroads and such other enterprise or business as is other­
wise provided for. Such corporations may have a perpetual existence.
No such company is authorized to transact business until 10 per cent
of the capital stock shall have been actually paid in, either in money
or property at its actual value; and the recorder of deeds, before
filing any certificate of incorporation, must be satisfied that the entire
capital stock has been subscribed for in good faith. All of the stock­
holders of such company are severally and Individually liable to the
creditors of the company in which they are stockholders for the unpaid
amount due upon the shares of said stock held by them respectively,
for all debts and contracts made by such company, until the whole
amount of capital stock fixed and limited by such company shall have
been paid in, and a certificate thereof shall have been made and
recorded. Every such company must annually, except Insurance
companies, within twenty days from the first of January, make a
report, which shall be duly published and which report shall state the
amount of capital and the proportion actually paid and the amount of
existing debts. Foreign corporations doing business in the District
of Columbia are subject- to service of process on their agents or on
the persons conducting their business, or by.Teaving copy thereof at
the principal place of business of such company, or at the residence
of its agent. The affairs of the corporation shall be managed by not
less than three nor more than fifteen trustees, a majority of whom
must be residents of the District, to be annually elected, except for
the first year, by the stockholders, at such time and place as may be
provided by the by-laws. The fee of the recorder for filing all certi­
ficates of incorporation where capital stock is authorized Is forty
(40) cents on each $1,000 of the amount of the capital of stock t^e

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Federal Reserve Bank of St. Louis

1721

corporation, as set forth in its certificate, provided that no fee shall
be less than $25.
Courts In session continuously throughout the year. Suits on
contracts, accompanied by sufficient affidavit of right to recover,
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.
Days/of Grace abolished.
Deeds. The following form of deed is now all that is required In
the District of Columbia to convey a fee simple title to real estate:
This deed, made this... .day of............ in the year.. . . , by m e,.. . ,
of . .............. witnesseth: That in consideration of (here Insert con­
sideration), I, the said............ do grant unto (here insert grantee’s
name), of............ all that (here describe the property)
Witness my hand and seal.
................................(Seal.)
A deed must be acknowledged and recorded with the recorder of deeds
and takes effect from the time of recording. A scroll is considered a
sufficient seal.
Depositions. Depositions of witnesses to be used in any civil
cause whether the case be at issue or not, may be taken under any of
the following conditions: 1 . Where the witness lives beyond the
District of Columbia. 2 . Where the witness is likely to go out of the
United States or out of the District and not return in time for the
trial. 3. Where the witness is infirm or aged, or for any reason the
party desiring his testimony tear 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 unde? the sover­
eignty of the United States, or any notary public or justice of the
peace within any place under the sovereignty of the United States:
Provided, that no such person shall be eligible to take such deposition
who is counsel or attorney for any party to the cause, or who is in
anywise interested in the event of the cause.
Descent and Distribution. 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 ohild or
the descendant of any child, then to the brothers and sisters and thelr
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
jrindred in equal degree, equally. 5. No distinction between whole
and halt 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,
of chlKl or descendants, the widow shall have one-third only 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 to 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.
Dower. A wife is entitled to dower in all real estate owned by the
husband at the time of his death, including equitable as well as legal
estates.
Evidence. (See Depositions.)
Executions. Executions may be levied upon all goods and chat­
tels of the debtor not exempt, and upon gold and silver coin, bank
notes or other money, bills, checks, promissory notes or bonds, or
certificates of stock in corporations owned by said debtor, and upon
money owned by him in the hands of the marshal or of the constable
charged with the execution of such writ, and also upon ail legal lease­
hold and freehold estates of the debtor in land. Executions on judg­
ments before justices of the peace may be superseded, according to
the amount of the judgment, upon good and sufficient security being
entered by a person who may at the time be the owner of sufficient
real property located in the District, above all liabilities and exemp­
tions, to secure the debt, costs and Interests from one to six months,
but there can be no stay of execution for wages of servants or common
laborers, nor upon any judgment for less than $5.
Exemptions. (Actual residents.) in addition to wearing
apparel, etc., household furniture to the value of $300, implements
.of debtor’s trade or business to the value of $2 0 0 , stock for carrying
on business to amount of $2 0 0 , 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 yonly
allowed where the party claiming such is the head of a family or
householder residing In the District.
Foreign Judgments. Suits may be instituted in the supreme
court of the District of Columbia on any judgment of a court of record
In any other jurisdiction. The declaration in any such case must be
accompanied hy a transcript of the record of such judgment verified
according to the act of congress In such cases made and provided, and
judgment in due course may be rendered on such transcript as In
any other case.
Garnishment. After judgment the writ of garnishment may
Issue against specific property or credits in the hands of the garnishee
and on the return of the writ, if there be credits, the judgment or
condemnation follows. The writ of garnishment can not be issued
against the United States or the District of Columbia.
Holidays. Legal holiday^ are January 1st. February 22d,
Hay 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 Berved by the marshal after 12
o’clock on Saturday.
Husband and Wife. The wife’s property is exempt from the hus­
band’s debts. The husband may convey direct to his wife. The
wife may use »11 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 vaii.i deed or conveyance. On the death of a married woman the

1722

BANKING AND COMMERCIAL L A W S— FLORIDA

husband is entitled to an estate by courtesy in her fee stipple 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 ot his wife contracted before
marriage. A husband, who willfully neglects to provide for wife or
minor child under sixteen years, in destitute circumstances, may be
adjudged guilty of a misdemeanor, and may be fined, or Imprisoned,
by the court having Jurisdiction.
Interest. The legal rate of interest in the District of Columbia is 8
per cent, and in any suit where the contract is tainted with usury the
plaintiff forfeits the whole of the interest so contracted to be received,
and where usurious Interest has been paid it can be recovered pro*
Tided action for suoh 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 oentum per annum until paid.
Judgments. Every judgment is good and enforceable by an execu­
tion Issued thereon for a period of twelve years from the date when an
execution might first have been issued thereon or from the date of the
last revival thereof by scire facias. Judgments of the municipal court
are not liens on real estate until recorded in the supreme court of the
District of Columbia.
Jurisdiction. (See Actions, Appeals, and Municipal Court.)
Limitations. Fifteen years for recovery of lands, tenements or
hereditaments; executor’s or administrator’s bond, five years; lustra*
ments under seal, twelve years; simple contracts and recovery of per­
sonal property and damages for its unlawful detention, three years;
statutory penalty or forfeiture, libel, slander, assault, battery, may­
hem, wounding, malicious prosecution, false arrest or imprisonment,
one year; all other actions three years. Usual exceptions in favor
of persons under disability. Acknowledgment to revive action on
debt must be in writing. Part payment will take debt out of statute.
Married Women. (See Husband and Wife.)
Mortgages. Mortgages are almost entirely supplanted by deeds
of trust, requiring no court proceedings to foreclose. Joining the wife
is necessary to bar dower.
Municipal Court. 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 $1 0 0 , and concurrent with the supreme court of the
District of Columbia when it exceeds $ 1 0 0 and not in excess of $500
with right of certiorari in'cases of concurrent jurisdiction.
Partnerships. Limited partnerships for the transaction of any
mercantile, mechanical, or manufacturing business within the District
may be formed by any two or more persons, but the number of special
partners is limited to six. The special partners are not liable for
the debts of the partnership beyond the fund contributed by them
to the capital. A certificate setting forth the firm name; general
nature of the business to be conducted; names of all the general
and special partners interested therein, distinguishing which are
and which are special, and their respective places of resiSsneral
ence; the amount of capital contributed by each special partner
to the common stock; and thé period at which the partnership is
to commence and terminate must be filed with the clerk of the supreme
court after having been acknowledged in the manner prescribed for
deeds.
Protest. May be made by a notary publio under his hand and
seal; or by any respectable resident of the place where the bill is
dishonored, in the presence of two or more credible witnesses. Where
a foreign bill, appearing on its face to be such, is dishonored by nonacceptance, It must be duly protested for same; and where such a
bill which has not previously been dishonored by non-acceptance,
la dishonored by non-payment, it must be duly protested for same.
If it is not protested the drawer and indorsers are discharged. Where
a bill does not so appear to be a foreign bill., protest thereof in case
of dishonor is unnecessary. The protest must be annexed to the bill
or contain a copy thereof and must state the (1 ) time and place
for presentment; (2 ) the fact that presentment was made and the
manner thereof; (3) the cause or reason for protesting; (4) the
demand made and the answer given, if any, or' the fact that the
drawer or acceptor cannot be found.
* Records. The exemplification of the record under the hand of
the keeper of the same, and the seal of the office or court where such
record may be made, is good and sufficient evidence to prove any
record made or entered in any of the States or Territories of the United
States; and the certificate of the party purporting to be the keeper
of such record, accompanied by such seal, Is prima facie evidence
of that fact. A copy of the record of any deed or other instrument
In writing not of a testamentary character, where the laws of the
State, Territory, or country where the same may be recorded requite
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 tt was .executed as it purports to have been.
Taxes. One and one-half per centum upon assessed value of
property, real and personal. Assessments of real estate are fixed at
approximately two-thirds of real value. Penalty of 1 per cent per
month for default in payment. Taxes are payable in May of each
year. New assessments are made every two years, for real estate
(unless improvements are put on) and every year for personal property
by a permanent Board of Assessors. Intangibles are taxed at the
rate of three-tenths of one percentum of the fair value thereof.
Trust Companies. Trust companies can be organized under the
general provisions of the code on that subject. NO trust company
can be incorporated with less capital stock than $1,000,000. May
do a storage business with a capitalization-of not less than $1 , 2 0 0 ,0 0 0 .
Foreign companies desiring to operate in the District must first com­
ply with the provisions for the organization of trust companies under
the laws of this District.,
Wills. All wills and testaments mut be in writing and signed by
the testator, or by some other person id!his presence and by his express
directions, and shall be attested and subscribed In the presence of
the said testator by at least two credible witnesses. No will, testa­
ment, or codicil is effectual for any purpose whatever unless the
person making the same be, if a male, of thé full age of twenty-one
years, and if a female, of the full age of eighteen years, and be at
the time of executing or acknowledging it, of sound and disposing
mind and capable of executing a valid deed or contract. Any wifl
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

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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.

SYNOPSIS OF

T H E L A W S OF F L O R ID A
R E L A T IN G TO

BANKING AND COMMERCIAL USAGES
R evised b y

M .

E.

M obet,

A ttorn ey at Law, Pensacola.

A c c o u n t s . Open accounts are barred In three years.
A c k n o w le d g m e n t s m ust in every Instance be under official seal.
I f m ade in the State o f Florida, m ay be m ade before any judge, justice
o f the peace, clerk or dep uty clerk of a court o f record, or notary publio;
o r if m ade ou t o f the State, and within the U nited States, before a
U nited States Commissioner o f Deeds appointed b y the governor of
this State, or before a jud ge or clerk o f any court o f the United States
o r of any state, territory or district, having a seal, or before a notary
public or Justice o f the peace o f such state, territory or district, having
an official seal, and the certificate o f acknow ledgm ent or proof shall
be under the seal o f the cou rt or officer as the case m ay be. If made
out o f the United States, before any com m issioner o f deeds appointed
b y the governor o f the State to reside in such cou ntry, o r any notary
publio o f such foreign country, or before any m inister charge d'affaires,
consul-general, consul, vice-consul, com m ercial agent, o r vice-com ­
mercial agent ot the United States appointed to reside in such country.
Conveyances o f dow er and powers o f attorn ey for the execution ot
deeds to real estate must he executed in like manner as conveyances of
real estate. A w ife’s acknow ledgm ent must be taken separate and
apart from her husband. Officers must certify that the grantors are
known to him . The follow ing is the usual form adopted, viz;
State ot Florida,
/
County o f ......... ................... r
Before the subscriber personally appeared......................-...................and
his w ife ........................ know n to me to be the Individuals described in
and who executed the foregoing Instrument who acknow ledged that
they executed- the same for th e uses and purposes therein expressed
and the s a id .......................................................................wife of the s a id . . . .
. . . . . . .................... being b y me further and privily exam ined separate
and apart from her said husband, acknowledged and declared that
she executed the same freely and voluntarily, and without fear, appre­
hension, com pulsion, or constraint of, or from, her said husband, and
for the purpose o f renouncing and relinquishing all her right, o f what-.

soever kina, in and to said property.
Given under my hand and seal official this. ............. day of................
1 9 .......
Notary Public.
My commission expires........ ..........................................(See notaries.)
Actions. Suits shall be begun only In the county (or, if less than
$ 1 0 0 In justice district) where the defendant resides, or where the
cause of action accrued, or where the property In litigation is. If
brought in any county where defendant does'not reside, the plaintiff,
or some person in his behalf, shall file with the precipe or bill In chan­
cery. an affidavit that the suit is brought in good faith and with no
Intention to annoy the defendant. This latter provision does not
apply to suits against non-residents. Where there are joint defendants
suit may be brought in any court (or justice district) where any one of
the defendants resides, or where the cause of action accrued or where
the property in litigation is. Corporations (domestic) can only be
sued ip a County where they keep an office. Foreign corporations may
be sued In any county where they have an agent, or where the cause
of action accrued or where the property in litigation is.
Administration of Estates. Upon the death of a person intestate
or having made a will but appointing no executor, the county judge
appoints an administrator, preferring first the next of kin; but if none
such apply, then, upon notice given by publication, any creditor or
suitable person. No minor can be appointed. If no one applies for
letters of administration within sixty days after death, the probate
court may order the sheriff to act. The administrator appointed by
the court must give bond in amount to be fixed by the probate judge,
respect being had to the value of the estate. The sheriff when acting
as administrator is liable upon his official bond. Claims against an
estate are barred after 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.
Affidavits may be made before any judge, clerk of the circuit and
supreme courts, justice of the peace, or notary public.
Aliens. No distinction between any citizens; except that they are
not allowed to vote.

BANKING AND COMMERCIAL L A W S— FLORIDA

Appeals. Appellate proceedings for the common law side are by
writ of error, which must be sued out within six months from the date
of the judgment. The record must be filed in appellate court on or
before the-retum 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 coprt Juris­
diction.
Arbitration. Parties to the controversy may make a rule of court
of any arbitration to which they may desire to submit by filing a state­
ment of agreement of the matters they desire to arbitrate In writing
with the court having jurisdiction, which statement shall Include the
names of the arbitrators and the umpire. An award upon such arbi­
tration can only be set aside for fraud, corruption, gross negligence,
or misbehavior of one or more of the arbitrators or umpire, or evident
mistake acknowledged by the arbitrators or umpire, -who made and
signed the award.
Arrest. No arrest for non-payment bf money unless It be for non­
payment of a fine lawfully Imposed.
Assignments and Insolvency.' Assignments by Insolvents are
provided for by law. Preferences are not allowed. All property,
except that which Is exempt, must be surrendered to the assignee.
Assignee gives bond and winds up estate.
Attachment process may Issue upon affidavit made, setting forth
that amount Is actually due; that plaintiff has reason to believe defend­
ant will fraudulently part with his property before judgment can be
recovered or Is actually removing his property, or Is about to remove
It out of the State, or resides beyond the limits thereof, or Is actually
removing or about to remove out of the State, or absconds or conceals
himself, or Is secreting property or 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
to 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 the debt for which the plaintiff sues is just, due and unpaid;
that the garnishment applied for is not sued out to injure either the
defendant or the garnishee; that he does not believe that defendant
will have in his possession after execution shall be issued visible
property in this State and in the county in which suit is pending upon
which a levy can be made sufficient to satisfy the amount of plaintiff’s
claim, stating the amount, and, except in cases in which plaintiff has
had an attachment or obtained his final judgment, he, his agent or
attorney, must enter Into bond payable to defendant in double the
amount of the debt, conditioned to pay all costs and damages which
defendant may sustain in consequence of plaintiff’s improperly suing
out the writ.
. '
Banks. No banking company shall be organized With a capital
less than $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 ,0 0 0 Inhabitants.
Savings banks may have not less than $20,000 capital. Banks
are formed as other corporations are, and can not begin business Until
authorized by the comptroller. The comptroller of the State may
inspect and supervise the business of the bank, except national banks,
and inspect and examine its books, papers, documents, minutes, and
everything pertaining to the acts of the bank. Banks are required
to make full and complete reports whenever called for by the State
Comptroller in such form as he may prescribe, and advertise in
January of each year amount of stock, property, and contractual
indebtedness. Before organization the whole of the capital stock
must be paid in cash. Stockholders are individually liable to the
extent of their stock at the par value thereof, in addition to the amount
invested in said shares. Directors must be citizens of the United
States, and own ten shares of stock of $100 per share. The comp­
troller, with the aid of the courts, winds up the affairs of insolvent
banks. Private bankers are subject to all penalties of the State
banking laws and to the supervision and control of the State Comp­
troller. No new private banks permitted after June 4, 1915. It is
a misdemeanor to make wilful and malicious derogatory statements
affecting banking institutions.
Bills of Lading. Bills of lading are evidence against the carrier of
the direction by which freights are to be received, carried, and delivered
—collector or holder of commercial paper, attached to bill of lading not
a warrantor of the quantity or quality of the goods represented thereby,
except by express contract in writing, and the officers agents, and
employes of the carrier are required to comply with the terms of the
bill of lading under penalty of criminal prosecution.
Chattel' Mortgages and Deeds of Trust. All conveyances In­
tended to secure the payment of money are mortgages. Chattel
mortgages must be recorded or the property delivered to mortgagee
to make them effectual against bona fide creditors and purchasers for
value. Injunction will be granted against the removal of mortgaged
personalty from the State; can only be foreclosed by bill in chancery
unless under $1 0 0 , and upon persona} property, when a common law
action may be brought in justice of the peace court, and mortgage filed
with precipe. The form and effect of trust deeds have not been dis­
turbed by statute. It Is a criminal offence to mortgage personal prop­
erty more than once without the consent of first lienor. •
Checks and Drafts. It is a felony to obtain money or goods by
drawing and uttering check or draft having insufficient funds on
deposit to pay same, provided the check or draft is presented in due
course and drawer fails to pay same, or return the consideration
received, within twenty four hours after written notice of dishonor.
Collateral Security. It Is a misdemeanor to sell, pledge, loan, or
In any way dispose of collateral security without the consent of pledgor,
A written agreement may be made at the time of making the pledge
for the sale of the collateral in such manner and upon such terms as
the parties may desire.
Contracts. Statute of Frauds. In order to bind an admin­
istrator personally, or any one for the debt or default of another, or
one upon an agreement made in consideration of marriage; or upon
contracts for the sale lands, tenements, or hereditaments or any uncer­
tain interest therein or for any lease thereof for a period longer than

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1723

one year; or upon an agreement not to be performed within one year,
there must be an agreement, flote, 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 oy earnest money paid. * News­
papers and periodicals must either be subscribed for or ordered in
writing.
Conveyances. (See Acknowledgments.) All conveyances of real
estate, or any Interest therein for a term of years of more than two
years, must be by deed Jn writing, signed, sealed and delivered in the
presence of at least two subscribing witnesses; and In order to be
effectual against subsequent grantees or incumbrances, must be
recorded. The wife’s separate estate can be conveyed only by the
joint deed of herself and husband, and confirmed by her acknowledg­
ment, taken separate and apart from her husband. Words of limita­
tion unnecessary. Husband may convey direct to wife.
Corporations may be organized for any lawful business under a
general law. Stockholder liable only for amount 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. (See
Service of Process.)
Costs. Non-resident plaintiff required to give $ 1 0 0 bond to secure
costs. The defendant may have suit dismissed If bond Is not given.
Courts. Circuit courts hold two terms a year in each county,
except in twelfth where four terms are held and in first, ninth, eleventh
and fourteenth circuits where they hold three terms a year, and have
original jurisdiction in all equity cases, also in all cases at law not
cognizable by inferior courts. County courts have jurisdiction of
amounts not exceeding $500. County judges, at all times open for
probate business, have full probate powers, have also civil jurisdiction
to extent of $100. Justice’s jurisdiction, $100.
Creditors’ Bills may be brought before claim Is reduced to judg­
ment, but suit at law must be first brought and judgment must be
obtained before decree can be rendered.
Days of Grace are abolished.
Depositions may be taken upon commission when witness resides
out of the county, or is bound for sea, or Is about to go out of the
State to remain until after the trial of the cause, or,is very aged or
Infirm; or when oath Is made that a material part of the case or defense
depends upon the testimony of such witness. The time for the suing
out of the commission, the names of the witnesses, and the namb of
one commissioner must be given to opposite side a reasonable time
before commission Is issued. Printed Instructions for the guidance of
commissioners usually accompany commission. 'Fees of not less than
$5.00 a witness are to be taxed as costs by the clerk and paid by losing
party.
Descent and Distribution of Property. Property descends: 1.
To the children and husband in equal shares. 2. If there be no
children then all to the husband or wife. 3. If there be no children,
husband or wife, then to the father and mother in equal shares, or to
survivor. 4. If no father or mother 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 matefnal branches in
the following course: 1. 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 décédant, it without Issue,
leaving no husband or wife, shall descend: 1. To father of Infant.
2. Mother of Infant. 3. Brothers and sisters of infant. 4. In
case no father, mother, brothers, or sisters or their descendants 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.
Dower. Deceased may not by will cut off his widow’s right to
dower. If dissatisfied with terms of will, she may dissent within
one year after probate or will and she will then be entitled to one-third
of the real estate for life, and, it there are two or more children, to
one-third of the personalty in fee simple; if there are no children, of
only one, she will be entitled to one-half the personalty. She may
within one year elect to take a child’s part in lieu of dower. If the
husband die intestate, without children, the wife takes the whole
estate, or dower, at her election.
Evidence. Witnesses not disqualified by reason of Interest. In
civil cases, husband and wife may testify for or against each other.
In suits by or against lunatics or personal representatives, heirs-atlaw, next of kin, assignee, legatee, devisee, or survivor of a person
deceased, no evidence of a transaction or communication between
such lunatic or, deceased person and the opposing party or tho.se under
whom he claims, can be given by the opposing party, unless such evi­
dence is first offered In behalf of such lunatic representatives, legatees,
devisees, etc.
Executions. Executions can be issued immediately upon the
entry of the judgment and within three years thereafter, and are a Hen
upon real estate from date of entry, and upon personal property from
the time the sheriff receives them. They can be renewed any time
within twenty years from entry of judgment. Both real and personal
property are subject to sale under execution. Executions‘are return­
able when satisfied, sheriff reporting progress at each term. Sale day
first Monday in each month. No stay law. No redemption of prop­
erty , sold under execution.
Exemptions to every head of a family residing In the State home­
stead of 160 acres of land, and Improvements, if in the country; onehalf acre of ground. If in an incorporated city or town, together with
$1,000 worth of personal property. The exemptions in a city or town
■hall 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, fléld,
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.
Foreign Corporations. 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.
(See Service of Process.)
Foreign Judgments. Judgments obtained in the several courts
of the State, may be recorded in any county and have same force and
effect as if originally obtained therein. Judgments obtained in other
States or countries, merely evidence, and have to be sued upon to be
made effective as judgments
Fraud. (See Limitations of Actions.) Obtaining money or prop­
erty under false pretense or by falsely personating another, are punish­
able criminally.
Garnishment. (See Attachment.)

1724

BANKING AND COMMERCIAL L A W S — FLORIDA

Guaranty Companies. Guaranty Companies are permitted to
become surety upon bonds.for all purposes after complying with certain
statutory requirements.
Holidays. Defined by statute are: Sundays, January 1st, Jan­
uary 19th, February 22d, April 26th, June 3d, July 4th, First Monday
in September, second Friday in October, thanksgiving Day, Christ­
mas and Shrove Tuesday or Mardi Gras in cities where there is a
Carnival Association organized for the purpose of celebrating it.
Husband and Wife. The husband has full control of wife’s prop­
erty and is not chargeable by the wife with tbe rents and profits.
Must be joined with wife in sales of her property. Homestead can
only be alienated by their joint deed. Husband not liable for wife’s
antenuptial debts. Has no interest in her separate earnings. Has
action for negligence causing her death; wife's property not generally
liable for husband’s debts. Wife may sue with respect to separate
estate without husband joining. Infant wife may join husband in
sale of her real estate.
Injunctions. ' Injunctions are granted without bond upon affi­
davit of Inability to give bond, and upon proof satisfactory to the
judge that such affidavit Is true, and that the statements of the bill
are true. Injunctions are granted to stay proceedings at law; to
restrain the sale of property under execution or decree obtained against
one other than the owner of the property; to restrain the destruction
of timber by cutting, boxing, or otherwise; to restrain a levy upon
exempt property; to prevent the claiming of exemptions upon property
not legally exempt; to prevent the removal from the State of mort­
gaged personal property, and to abate bawdy houses and gambling
dens.
Insolvency. Statutes suspended by national bankruptcy law.
Insurance Companies. Foreign and domestic, are placed, by
statute, under control of State treasurer. They must annually file
a statement with, and obtain from the State treasurer, a certificate
before being authorized to do business. Certificate may be revoked
if company refuses to pay judgments which have been legally obtained
against it.
Interest. Eight per cent Is allowed on judgments and contracts
where Interest is payable but no rate is specified. Contract for more
than 1 0 per cent is usurious, and all Interest forfeited.
Judgments of a court of reoord are a lien for twenty years upon
real estate of debtor within the county where rendered, and may be
extended to other counties by recording certified transcript of judg­
ment In any county where a lien is sought. Judgments of justice of the
peace may be made a lien upon real estate by recording In the office
of clerk of circuit court.
Liens. In order to secure a lien by 11apendens, 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
Hens upon real estate, in order to be available as against subsequent
purchasers or lienors without notice, must be recorded, and suit
must be brought within twelve months after the furnishing of the
material, or the performance of the labor. Liens upon personal
property exist only while possession is retained by lienor.
Limitations of Actions. Civil actions can only be commenced
within the following periods after the cause of actiln shall have
accrued, to wit: Actions on Florida judgments, actions on con­
tracts or obligations in writing and under seal twenty (2 0 ) 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 qpen account for goods,
wares and merchandise, three (3) years. Actions for libel, slander,
assault, battery, false imprisonment, or an action by another than the
State upon a statute for a penalty or forfeiture two (2) years. Actions
for wrongful death of a child, actions against railroad companies for
killing cattle, and any action by the State for a statutory penalty or
forfeiture, one (1 ) year.
Married Women retain their property, real or personal, owned
at marriage or acquired thereafter by gift, devise, descent, or purchase,
and it is not liable for husband’s debts except by her written consent,
executed according to law regulating conveyances of married-women.
Husband must join in all sales, transfers, and conveyances of the
wife’s property, except when he has been adjudged Insane for more
than a year. Wife may sue concerning hei»real estate without joining
her husband with her in the suit. Widow takes as dower a life estate
in one-third part of the real estate of which her husband was seized
and possessed at any time during her coverture, and an absolute onethird of tail 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.
Minors. Both sexes attain their legal majority at the age of 21
years. Minors who deposit in savings banks may control, ¡transfer
or withdraw the money so deposited. All other contracts made by
therm are voidable, except for necessaries. Marriage removes dis­
ability of non-age of male minor.
Mortgages of real estate must be executed and proved or acknowl­
edged in the same manner as deeds, and they, likewise assignments
thereof, to -be effectual against creditors or bona fide purchasers,
must.be recorded. Are foreclosed by bill in equity in the circuit
court. Chattel mortgages must be recorded unless property is
delivered to mortgagee and remains in his possession; becomes subject
to debts of mortgagee if left in his possession more than two years
without the mortgage being recorded.
Notaries. Both men and women over twenty-one years may be
appointed notaries public. They must renew commissions every four
years. May administer oaths, take acknowledgments and perform
marriage ceremony. $500 bond is required to be given. Certificate
must show date of expiration Of commission.
Notes and Bills of Exchange. Form and interpretation defined
by statute. No requirement that it shall be made" payable at a bank
-or any fixed place. 5 per cent damages are allowed on foreign com­
mercial paper protested in this State. ¡Negotiable instruments falling
duje upon a holiday (see Holidays) are payable on the next succeeding
business day. Instruments falling due on Saturday are to be pre­
sented for payment on the next succeeding business day, except that
instruments payable on demand may, at the option, of the holder, be
presented for payment before noon on Saturday unless that entire
day is a holiday.
Partnership, Limited, and Special. None
Powers of Attorney. Any contract or conveyance may be made
by power of attorney. A conveyance of a married woman’s real estate
by power of attorney in order to be valid the power of attorney must
be acknowledged by her separate and apart from her husband, and the

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acknowledgment must state that she executes it freely and voluntarily,
without compulsion, fear, apprehension, or constraint of or from her
husband. The husband must join either in the deed or powers of
attorney. Powers of attorney for the conveyance of real estate must
be recorded.
Probate Law. (See Administration of Estates.) The county
judge has original jurisdiction of all matters relating to the administra­
tion of estates of decedents.
Protest. (See Notes and Bills of Exchange.)
Records. Records of deeds and mortgages are kept in the office of
the clerks of the several circuit courts, and the original must be recorded
in the county within which the property lies. Wills are required
to be recorded with the several county Judges and may be probated
in any county in which the deceased left property, if he dies out of the
State. If death takes place within the State, then in the county in
which he has had residence, house, or other place of abode at the time
of his death, and if he had none such, then in the county wherein he
died.
Redemption. None, excepting tax sales.
Replevin lies for goods or chattels wrongfully taken, except when
taken for taxes, or under execution, or at suit of defendant when the
property was originally replevied from defendant and has been
delivered to plaintiff, or when plaintiff is not entitled to possession.
Affidavit must be filed, describing property sought to be recovered,
and stating that it was not taken for any tax, fine levied by virtue of
any law of the State, nor seized under execution or attachment against
the goods and chattels of the plaintiff; liable to execution and bond
In double the value of the property with two sureties given before the
writ is issued. Defendant may release the property within three days
by forthcoming bond.
Seal. A scrawl or scroll, printed or written, affixed as a seal to any
written Instrument, is effectual.
Service of Process. Out of circuit court, made by the sheriff or
his deputy. Out of county Judge’s or justice of peace courts, may be
made by sheriff or constable. Service in civil actions may be made
either upon the person of the defendant, or by leaving a copy at hie
residence with some person over fifteen years of age. Process against
a domestic or foreign corporation may be served upon any officer or
business agent of said corporation residing in Florida.
Suits. Actions at law are commenced by filing a precipe with the
clerk. Personal service Is required except in suits by attachment ana
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 bf Novem­
ber, and if not paid by first day of the following April property may be
sold. Owner has two years within which to redeem. Taxes are a
lien from the first day of the year of the assessment, and have theTorce
and effect of a judgment upon which execution may issue.
Testimony. (See Depositions.)
'transfer of Stock. Stock Is transferable in the manner prescribed
in the by-laws. No stock can be transferred until, after all previous
assessments thereon have been fully paid. The transferee succeeds
to all the rights and liabilities of the prior holder.
Warehouse Receipts. Uniform Warehouse Receipts Act adopted,
and effective after July 31st, 1917.
Wills. Any person over twenty-one years old and of sound mind
may make a will. This Includes married wbmen. Wills of real estate
must be signed by .testator or some person In his presence and by hie
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
driginal, or by burning, cancelling, tearing or obliterating the same
by the testator or by his direction and consent, or by the act and
operation of law. Wills must be probated before admittance in evi­
dence. Foreign wills, when duly probated according to laws of the
State, where made and duly recorded in this State, are as effective
as wills executed in this State. Foreign wills are construed according
to law of State where they are executed.

BANKING AND COMMERCIAL L A W S— GEORGIA
SYNOPSIS OF

T H E L A W S OF GEO RG IA
R E L A T IN G TO

BANKING AND COMMERCIAL USAGES

Revised by

& P a r k e r , Attorneys at Law,
Atlanta. (See Card in Attorneys’ List.)

B ro w n , R andolph

Acknowledgment^. (See Deeds.)
Actions. All distinction between suits at law and in equity is
abolished. Equitable relief can be had in superior courts of law.
Administration of Estates. Letters of administration issue in
the line of preference, first to'the husband or wife, second to the next
of kin, relations by consanguinity are preferred to those by affinity.
If there are Several of the neat 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 givebond in double
the value of the estate. Out of the estate of each deceased person,
the first charge, after funeral expenses, is a year’s support for the
family, to be laid off by commissioners according to the condition
and standing of the family. Foreign administrators may act in this
State on giving bond to the ordinary where they qualify. The bonds­
men must be residents of this State. A citizen of any other State may
act as executor of the will of a deceased citizen of this State when he
has the same interest and will give the same bond as in the case of
foreign administrators Administrators of other States may sue in
this State by filing in the office of the clerk of the court, to which suit
is brought, a properly authenticated copy of their letters of adminis­
tration.
Affidavits. Pleas and defenses in the courts of this State which
are required to be under oath, may be made before any official of
the State or county where the oath is made, who is authorized by
the laws of such State or county to administer oaths. Prima Facie
the official attestation of the officer is evidence that he was author­
ized to act. Any non-resident seeking equitable relief, when called
on to verify proceedings, should be sworn before a commissioner of
this State, or a Judge of a court of record where the oath is made,
with the attestation of the clerk of such court that the signature of
the Judge is genuine, and that'the court over which he presides is a
court of record.
Aliens. The subjects of governments at peace with the United
States and this State are entitled to the rights of citizens of other
Statesj resident here, in so far as they accord to them the privilege
of purchasing, holding, and conveying real estate.
Appeals. (See Courts.)
Arbitration. Under the law of Georgia disputes and controversies
relating to rights, or property, may be submitted to arbitration.
Arrest. The constitution of Georgia declares that there shall be
no imprisonment for debt. But in an action to recover personal
>roperty
defendant will- be arrested by the officer to whom process
fBdirected,theand
will be committed to Jail unless he shall give bond
and good security, or deliver up the property, or shpw to the satisfac­
tion of the court that It is without his power to produce It.
Assignments. Assignments for the benefit of creditors are per­
mitted.
Attachments. A summary process of attachment will lie In
the following cases: 1. Where the debtor resides out of the State.
2 . Where he Is actually removing, or about to remove, without the
limits of the county. 3. When he absconds. 4. When he resists
a legal arrest. 5. Where he is attempting to remove his property
beyond the limits of this State. 6 . where he has disposed of, or
threatens to conceal, his property, liable for the payment of his debts,
or shall make a 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 attachment, and also as to the amount of the claim. Bona and
security, in double the amount sworn to, must accompany the affidavit
and the officers require personal security. Non-resident corporations
are liable to attachments, and one non-resident may attach the
property of another non-resident in this State, except for wages
earned without the State.
Banks. 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, have Dower to have continual
succession for thirty years, with right of renewal; to sue and be sued;
to have and use a common seal; to appolntofflcers 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, ana 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 theextent 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
close of business on any day specified Dy the bank examiner. No
turnir shall loan to Its officers any money without good collateral, or
other ample security, and when such loan exceeds, 1 0 per cent of the
capital stock it shall not be made until approved In writing by a
majority of the board of directors. No bank or corporation doing
banking business shall reduce Its cash In hand, including amount due
by banks and bankers, and the value of all stocks and bonds actually
owned and held, below 25 per cent of aemand deposits. No bank

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Federal Reserve Bank of St. Louis

1725

or corporation doing a banking Business shall loan to any1one person,
unless such loan is amply secured bv 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 lawful rates, have
been held not usurious. No dividend shall be declared by any bank
except from the net profits, nor shall the capital stock be applied to
the purchase of its own shares. 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. State banks are authorized to become members of the
Federal Reserve Bank.
Bills of Lading and Promisory Notes. A bona fide assignee
of a bill of lading of goods will be protected in his title against the
seller’s right of stoppage in transit. It 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 fade at a bank or
banker’s office. 2 . where it is discounted at a bank oh 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.
Checks. (See Notes, etc.) ■
.
Collaterals. The holder of a note as collateral security for a debt
stands upon the same footing as the. purchaser. Property left in
pledge or pawn may be sold at public sale to the highest bidder, upon
thirty days notice.
Corporations. Power to create corporations in this State is vested
in the general assembly and the superior courts. Said' courts may
grant charters to all corporations except banking, insurance, canal,
navigation, express, and telegraph companies and railroads. The
Secretary of State may grant charters for the corporations above
enumerated in manner prescribed by law in the particular case. A
charter for a private corporation is obtained by a petition to the
superior court, setting forth the object, particular business, corporation
name, capital, place of business, time for which incorporation is desired,
not exceeding twenty years. The petition and order granting the same
constitute the charter. In such corporations the liabilities of the
stockholder is measured by the amount of unpaid stock subscription
due by him. In the charter of many banks 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 a graded license fee, with
a minimum of $10, maximum $200. Voluntary dissolution of a
corporation may be granted by the Superior Court upon petition filed
by thé Corporation if authorized by two-thirds of capital stock. Lost
stock certificates must be established by petition to Superior Court.
Costs. A deposit of $10 is required In courts of record, from
non-resident plaintiffs before the filing of suits and a deposit of $ 0 in
all divorce cases.
Courts. The term, jurisdiction, etc., of the several courts of the
State are as follows: JUSTICE COURTS hold monthly sessions and
have civil Jurisdiction up to $100. In criminal matters they are
only committing courts. COURTS OF ORDINARY hold their
sessions monthly and have jurisdiction over wills, 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 rejlef.
The municipal court of Atlanta, recently established, replaces the
Justices Courts. Its jurisdictional limit is $500. It holds two terms
each month. SUPERIOR .COURTS have jurisdiction of all suits
and controversies and have exclusive jurisdiction in equity powers,
divorce cases, and suits, involving titles to land, and on the criminal
side exclusive jurisdiction of all cases involving life or imprisonment
in the penitentiary.
Deeds. Deeds to real estate In Georgia must be In writing, and
should be executed in the presence of two witnesses, one of whom shall
be an offlqer 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. It executed in this State, it must be attested by a judge of
a court of tecord 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 secured by the deed has been paid
off. Under the law of Georgia these deeds can not be foreclosed as
mortgages, the notes they are given to secure must be sued to judg­
ment, the land must he 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.

1726

BANKING AND COMMERCIAL L A W S— GEORGIA

Depositions. Testimony is taken in this State by written inter­
rogatories where the witness is a (emale, or where the witness does
not reside in the county where the suit is pending, or by reason of disa­
bility is unable to attend court. In all counties within this State,
depositions may be taken upon five days’ notice to the other party of
the time and place at which the witness is to be examined. This latter
process cannot be used for taking testimony outside of the State.
Depositions may be taken within or without the state, without com­
mission, before a notary public or any officer authorized to issue
attachments. If within the state or if taken without the state, before
any officer of the state or county where taken, authorized by laws of
Georgia to attest deeds or take acknowledgments, upon. 10 days’
notice to’ opposite party. In taking answers to interrogatories,
which must be authorized by a commission issued tor such purpose
by the court here, two commissioners must act. Commissioners must
be disinterested and not related to either party, or connected with
the case; attorneys of the parties are incompetent. None of the parties
to the case, nor their agents or attorneys, can be present when the.
commission is executed. The witness can only write his answer 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: 1. 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 o f ................ .
£eR
(Here insert the cou n ty and State
C ounty o f .......................... ( s ■ where the com m ission is executed.)

By virtue of a commission from the....................court o f.....................
county, we have caused the person in said commission named to come
before us, who being duly sworn true answers to make to certain
interrogatories thereto annexed, deposeth and answereth as follows:
(Here insert answers of the witnesses to each interrogatory in order.
3. Let the witness sign the answers; then say: “Answered, sworn to,
and subscribed before us, this . . . . day of . . . . . . . . . 19.... ” Then
sign your own names, adding the words “Commissioner (L. S.)” after
each name. 4. Seal all up together, using two wafers, each com­
missioner writing his name with “Commissioner’’ across a wafer or
seal. 5. State the case on the package, and address it to the clerk
of the oourt Issuing the commission. 3. If it is to go by mall, get
the postmaster to receipt on the package. “Received from one of
the commissioners (giving his name) the within interrogatories, to be
forwarded by due course of mail,” naming his post-office. Testimony
thus taken must be sent by maii, or by some person specially author­
ized by the commissioner to carry it to the court.
Descent and-Distribution of Property. The husband 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
ohildren, or the descendants of chfldren, leaving a wife, the wife is
his sole heir. If there are children,’ or those representing deceased
children, the wife shall take a child’s part, unless the shares exceed
five in number, in which case the wife shall have one-fifth part of the
estate. If the wife elects to take her dower, she has no further interest
in the estate. Children stand in the first degree to the intestate, and
inherit equally. Posthumous children stand upon the same footing
with other children. Lineal descendants of children stand in the
place of their deceased parents, and take per stirpe, and not per
capita. Brothers and sisters stand in the second degree and inherit
if there be no widow or children, or representatives of children.
The half-blood on the paternal side inherit equally with the whole
blood. The father, if living, inherits equally with brothers and sisters,
and stands in the same degree. If there be no father, and the mother
is alive, she shall inherit in the same manner as the father would.
Real estate descends direct to the heirs, and personal estate to the
administrator. But real estate is subject to administration for the
purpose of paying debts, and if necessary, for distribution.
Dower. In this State the wife Is entitled to an estate for life in onethird of all lands of which the hvftband dies seized or possessed at the
time of his death* or to which the husband obtained title in right of
his wife. There is no necessity for renunciation of dower in this State,
and a married woman, on that question, need not join with her hus­
band in conveying land, except in cases where, before 1866, he obtained
real estate belonging to his wife, by virtue of the marital relation.
Executions. Must follow the judgment or decree from whioh they
Issue. They are good for seven years and may be renewed for a like
period by entry nulla bona.
Exemptions and Homesteads. Under the constitution and laws
of Georgia, each head of a family or guardian, or trustee of a family
of minor ohildren, 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.
Foreign Corporations. All corporations, except those chartered
and organized under the laws of this State, are held to be foreign
corporations. Suoh corporations are recognized by comjty 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 publlo
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 corare subject to license tees tor doing business and all are liable
i»rations
or.taxes on property owned or held in the State. (See Corporations.)
Fraud. Contracts, awards, marriages, judgments, sales, and wills
are void when they are brought about and procured by fraud. Prom­
issory notes when procured by fraud are void in the hands of the holder,
who so procures them. The statute of frauds, as of force in Georgia,
requires the following obligations to be in writing, signed by the party,
or nls 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 Bale, 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.
3. An acceptance of a bill of exchange.
Garnishments. This process may be invoked in any case. Gar­
nishment may be dissolved by giving bond and a third party may
daim a fund held up under garnishment and may release the fund by


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Federal Reserve Bank of St. Louis

giving bond. Any person may claim exemption from garnishment as
to wages to the extent of $1.25 per day and one-half of the remainder.
Holidays. January 1st (New Year’s Day). January 19th, (Lee’s
Birthday). February 22nd (Washington’s Birthday). April 26th
(Memorial Day). June 3rd (Jefferson Davis’ Birthday). July 4th
(Independence Day). First Monday in September (Labor Day).
December 25th (Christmas Day). Thanksgiving Day.
Interest. The legal rate of interest in Georgia is 7 per cent, but 8 per
cent is legal when contracted for in writing. Parties charging usury
forfeit the excess if usury is set up. And usury will render a deed
void, and will in a contract or mortgage render a waiver of home­
stead. or contract to pay attorneys’ fees void.
Judgments create liens from their rendition upon the real or per­
sonal property of the defendant; all judgments at the same term rank
equally, and property sold by a debtor after judgment is obtained
against him is only discharged from the lien of such judgment, if real
estate, after four years’ possession by the vendee, and in cases of per­
sonal property, after two years’ Judgments, whether in the United
States court, or in any State court, obtained in any other county than
that in which the defendant resides have no lien on the property of
the defendant in any other county, unless the execution thereon is
recorded in the county of the defendant’s residence. Unless such
execution is recorded as so required within thirty days, its lien will
only date from the time of record. (See' Actions.)
Jurisdiction.

(See Title Courts.)

License. No license is required of commerclalltravelers. Itinerant
traders must pay license fees.
Liens. Under the laws of Georgia mechanics, material-men, ma­
chinists, employes of steamboats, millwrights, builders of gold mine
machines, stone-cutters, and marble works laborers have special liens
on property improved or worked on. Landlords have a general lien
which takes effect from the levy of distress and a special lien on crops
for rent of land on which they are raised, Common law liens of inn­
keepers, factors, pawnees, carriers, attorneys and others are recog­
nized. Vendor’s lien on land has been abolished. Attorneys have a
special lien on papers in their hands and on property recovered In suits
brought by them or successfully defended by them.
Limitations. Suits -on open accounts are barred after four years,
on promissory notes and bills after six years, on instruments under
seal after twenty years, on suits for personal Injury after two years.
Seven years’ adverse possession of real estate under color of title, and
twenty years’ adverse possession without color of title, will bar the
claims of airpersons not laboring under disability. Infants have seven
years to assert their rights, after becoming twenty-one years of age.
Married Women. The wife may contract and sue and be sued in
her own name in respect to her separate estate as a femme sole, except
that she can not bind her separate estate by suretyship for 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 ner husband in the ordinary support of her­
self and children, but by special contract in her own capacity, and
not as agent for her husband, she could bind her separate estate, for
that purpose. A married woman can dispose of her property by will.
Mortgages. Mortgages are only security for debts. They may
embrace property in the mortgagor’s possession, or to which he has
a right of possession. They may cover a stock In bulk, but changing
in specifics, and after acquiring property. No particular form is
necessary, hut it must be cleared that the instrument indicates a lien,
describes the property and specifies the debt It secures. Mortgages
on land are not good against dower, and a wife cannot waive her
dower as against this lien. Mortgages must be executed and attested
in the same manner as deeds, except that in mortgages on persona)
property, only the official witness is necessary. Mortgages with power
of sale are valid in Georgia. Homestead and exemption may be
waived In the mortgage. All mortgages on personal property must
be recorded in the county where the mortgagor resides and the prop­
erty is located. Mortgages on land must be recorded in the county
where the land is situated. .
Notaries. Commercial notaries, male or female, are appointed
for four years by the superior courts. They must have seals and are
authorized to attest deeds and mortgages, and make protest of com­
mercial paper.
Notes and Bills of Exchange. (See Bills of Lading and Promis­
sory Notes.) Promissory notes are negotiable by endorsement of
payee, or holder, notes payable to bearer are transferable by delivery
only Bonds, specialties, contracts, bills of lading, and warehouse
receipts, are negotiable by endorsement or written assignment in the
same manner as bills of exchange and promissory notes. Endorse­
ments may be limited by express restrictions. Acceptances of bills
must be in writing. Transferers of negotiable Instruments warrant
that they are the'lawful holders, have the right to sell, 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. Any draft, bill of exchange or check, drawn upon an
institution or person with which the drawer has not sufficient funds
on deposit to meet same, subjects the drawer,to -criminal liability
unless the deficit is made up within 30 days.,
Probate Law. (See Administration of Estates. Deeds and Mort­
gages.)
Protests. (See Bills of Lading and Promissory Notes.)
Records. (See Deeds and Mortgages.)
Redemption. There is no redemption in this State under Judicial
sales except in case of sale of property under tax execution where
parties may redeem in twelve months.
Replevy. All property seized under attachment, distress, or other
similar process, may he replevied. Property seized under process
and claimed by the third party may be delivered over upon bond and
security for its forthcoming to answer final judgment of decree.
Revision. (See Courts.)
Sales. Sales may be made to pay debts, but any sale of stocks of
goods in bulk is deemed fraudulent unless the seller delivers to the
buyer a list of all creditors and the amount due each. It shall then be
the duty of the buyer to notify the creditors of his purchase. This
notice must be mailed five days before completion of the purchase.
Taxes. Taxes are a lien upon all the property of the debtor, real
or personal, and its lien is preferred as stated in section herein relating
to distribution of the estates. Sales of property tor tax.es are con­
ducted in the same maimer as other judicial sales. One year in whioh
to redeem is allowed.

BANKING AND COMMERCIAL LA W S— IDAHO
Wills. • All persons of lull age and sound and disposing memory.
Including married women, may make wills, and dispose of their estates.
Wills must be executed in the presence of three witnesses, all of whom
■hall be present, must be called by the testator as witnesses, and muBt
sign, and shall certify that tney signed, in the presence oi 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 tne State, and probated in solemn form in such
State, which dispose of real or personal property in Georgia, may be
admitted to probate in this State, when an 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. Ail 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 thé land lies, together with an exempli­
fication of record admitting it to probate in another State, certified
according to the Act of Congress.

SYNOPSIS OF

THE LAW S OF IDAHO
RELATING TO

BANKING AND COMMERCIAL USAGES

Revised by Ri Chakds

Haga. Attorneys at Law, Boise. (See Card
In Attorneys’ List.)

&

Acknowledgments. All conveyances and other instruments
required to be acknowledged in this State must be acknowledged, if
within the State, before a judge or clerk of a court of record, a county
recorder, a notary public, or a justice ol the peace. If without the
State, but within the United States, they must be acknowledged before
any such officer, or a commissioner of deeds for this state, or before
any officer authorized by the laws of this State or Territory to take
such acknowledgment. If without the United States, they must be
acknowledged before a minister or charge d’affairs of the United
States, resident and accredited in the country where the acknowledg­
ment is taken, before a consul 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.)
Actions. There is but one form of civil action in this State. An
action is commenced within the meaning of the statute when the
oomplaint is filed with the clerk. Every action must be prosecuted
In the name of the real party in interest.
Affidavits are used only to verify pleadings, to prqve service of
summons, notice, or other paper, to obtain provisional remedy.
Aliens. Code provisions as to holding property by aliens have
beenrepealed (Sess. Laws, 1913).
Arbitration. Persons capable of contracting may submit to
arbitration any controversy which might be the subject of a civil
action between them, except a question of title to real property in
tee or for life.
Arrests. The defendant may be arrested in a case for the recovery
of money or damages on a cause of action arising upon a contract,
express or implied, when the defendant is about to depart from the
State with intent to defraud his creditors; also for money or 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.
Assignments and Insolvency. 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 olalms 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.
Attachments. The plaintiff at the time of issuing the summons,
or at any time afterwards, may have the property of the defendant
attached as security for the satisfaction of any judgment that may
be recovered, 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.
Banks and Banking. Idaho has a full and oomplete 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.)
Bills of Lading. Uniform act recommended by the American
Bar Association.«
Blue Sky Law. Idaho has a blue sky law governing corporations,
unincorporated associations and partnerships, domestic or foreign,
dealing in stocks, bonds, and other securities, excepting United States
bonds, State or municipal securities in Idaho, and Idaho real estate
mortgages. This law requires the filing of various statements, accounts
and other papers, and makes it unlawful to do business in the State
without compliance. (Sess. Laws 1913.)

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1727

Collaterals. No statutory regulation.
Community Property. All property acquired after marriage
other than by gift, bequest, devise, or descent, is community property.
The personal earnings of the. wife and the income .from her separate
property are her separate property.
Contracts. A written instrument is presumptive evidence of a
consideration.
Conveyances. Real estate is conveyed by Instrument in writing,
subscribed by the party or his authorized agent in writing. The
community property can be conveyed or incumbered only by husband
and wife joining in the execution. During the continuance of the
marriage the wife has the management, control, and absolute power
of disposition of her separate property, and may bargain, sell, and
convey her real and personal property, and may enter into any con­
tract with reference to the same, in the same manner and to the same
extent and with like effect as a married man may in relation to his
real and personal property. Separate property of wife not liable for
debts of her husband, wife is not liable as surety unless the obligation
is for her benefit or benefit of her separate property. An instrument
purporting to grant real property to take effect upon condition pre­
cedent, does not pass the estate upon the performance of the con­
dition. Such instrument is merely an executory contract. * (See •
Acknowledgments.)
Corporations. Private corporations may be formed by three (3)
or more persons, at least one of whom must be a bona fide resident
of this State. Such corporation is formed by executing articles
of incorporation, containing: 1. The name of the corporation 2.
The purpose for which it Is formed. 3. The place where its prin­
cipal business is to be transacted. 4. The term for which it is to
exist (not exceeding fifty years). 5. The number of its directors or
trustees, not exceeding fifteen, who must be stockholders of the
,corporation. 8 . 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, telegrapher 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, 31,000 per mile; wagon
road corporations, 3300 per mile; telegraph corporations, 3100 per
mile, and the articles must be verified by affidavit of president, secre­
tary, or treasurer named in articles, that such stock has been sub­
scribed. All articles of incorporation must be filed in the office of the
county recorder, in which tne principal place of business is located,
and a copy thereof certified by thq recorder, filed with the Secretary
of state. All corporations, except insurance, non-productive mining
companies, co-operative telephone and irrigation companies, must
ay between July 1st and September 1st of each year, a license fee
ased on the amount of authorized capital stock, varying from $ 1 0 to
$150; a failure to make payment by September 1st entails a penalty
of $10, and a failure to make'payment by November 30th entails a
loss of charter for domestic corporations and a loss of the right to do
business within the State for foreign corporations. Between July 1st
and September 1st, all corporations must make an annual report, and
a failure to do so takes away such exemptions as are mentioned above.
Corporation, Foreign. Foreign corporations desiring to do busi­
ness in this State, may have all the rights and privileges of like domes­
tic corporations, by filing with the secretary of state, and in the
office of the county recorder of the county where the principal place
of business of such corporation is to be condudted, a copy of their articles
of business of such corporation is to be conducted, a copy of their
articles of incorporation, and the designation of some person residing
in the county in which such principal place of business is to be located
upon whom process issued by authority of or under any law of this
State may be served. Designation of agent must be filed with Clerk
of District Court instead of County Recorder.
Courts. Terms and Jurisdiction. The judge bf thé district court
of each of the judicial districts of the State must annually fix the
time tor 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 casés, and concurrent jurisdiction
with justice’s courts in all criminal cases. Justices’ jurisdiction, $300.
Curtesy does not exist.
,
Days of Grace abolished by statute.
, Depositions may be taken before any judge, justice of the1peace,
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.
Devolution of Property. (See Succession.)
Dower does not exist. (See Curtesy and Community property).
Employers and Employes. All persons employing mechanics or
laborers in working mines, erecting or repairing buildings, construct­
ing canals, railroads, etc., must make, record, and publish a state­
ment, under oath, setting forth the following: The name of the
owner of the premises where work is being done or upon which it is
intended to begin work; the name of the person or company engaged
in or who contemplates engaging in work upon such premises; the
conditions under which such person or corporation is prosecuting
the work as agent, owner, etc., the principal office of the owner and
the agent in this State; the time and place where payment of laborers
and mechanics will be made. A copy of this statement must be
posted at the place where work is prosecuted.
Employer’s Liability Law. Provides tor damages not to exceed
$5,000 for injuries to employee caused by employer’s negligence. (See
Workmen’s Compensation Act).
Executions issue at any time within five years after judgment.
The only stay is by appeal, with secured bond. One year allowed
for redemption from execution and foreclosure sale.
Exemptions. Homestead, not exceeding $5,000, if declaration
of homestead is duly acknowledged and recorded; office furniture
and library, $2 0 0 ; necessary household and kitchen furniture not
exceeding in value $300, and provisions for family for six months;
certain farm animals, etc., with food for six months; and water
right of 160 inches, when actually used in irrigation; also crops grow­
ing or grown on fifty acres of land, leased, owned or possessed by the
person cultivating the same; tools or implements of mechanic neces­
sary for his trade of the valde of $500; all instruments of surgeons,
etc., also all professional libraries, miner’s dwelling^of value $500, and
his pipes, cars, etc., of the value of $2 0 0 ; pack animals and equip­
ments, hot exceeding $250; team, wagon, etc., of drayman; seventy^
five per cent of the personal earnings of a debtor within thirty days
preceding levy, where earnings are necessary for use of family, resid­
ing in this State; the shares held by parties of the Building and Loan

1728

BANKING AND COMMERCIAL L A W S— ILLINOIS

Association to the value of $1,000; provided, such person has no
homestead; all benefits arising out of life insurance, represented by
an annual premium of $250; all property of fire companies. All the
above property may be sold under foreclosure of mortgage, which
includes same or execution issued on. judgment for purchase price.
Garnishment. Any personal property or credits In the hands of
another, belonging to the defendant. Is subject to garnishment, as.
are debts owing to him from another if due.
Guaranty, Title and Trust Co. May furnish abstracts, act as
surety, trustee, fiscal agent. Paid up capital of $25,000 required.
Capital deemed security for the performance pf their duties.
Holidays, January 1st, February 22nd, May 30th, June l'5th,
(Pioneer Day). Fourth of July, first Monday in September (Labor
Day), October 12th, Thanksgiving Day, Christmas, Sundays and
any day on which a general election is held.
Husband and 'Wife. All the^property of the wife owned by her
before marriage, and that acquired afterwards by gift, bequest, or
descent, or that which she shall acquire with the. proceeds of her
separate property and her personal earnings and the income from,
her separate property, shall remain her sole and separate property, to;
the same extent and with the same effect as the property of a hus­
band similarly acquired. The wife has the management, control, and
absolute power pf disposition of her separate property, to the same
extent and with like effect as a marrledjnan may have In relation
to his real and personal property. The separate property of the
wife'is not liable for the debts of her husband, but is liable for her
own debts contracted before or after marriage. There is no estate
by oourtesy or in dower. Marriage settlements are provided for,
and when propdny executed and recorded may vary the statute
governing the relations of husband and wife concerning property
rights. Minors may execute valid marriage settlements.
Interest. Where there is no express contract in writing fixing a
definite rate of Interest, the rate is 7 per cent per annum. Parties
may agree in writing for interest at a rate not to exceed 1 0 per cent per
annum. Judgments bear interest at the rate of 7 per cent per annum,
compound interest allowed.
Judgments are liens on all real estate of debtor within the county,
from time of docketing, and may be extended to other counties by
filing transcript in recorder’s office. Lien continues five years.
Justice’s court judgments become Hens when certified and recorded.
May be revived by issuing execution within limitation.
Liens, Mechanics. Every person performing labor upon or fur­
nishing materials used in the construction or repair of any mining
claim, building, or other improvement, has a lien thereqp Farm
laborers have lien upon the crop and products thereof, upon which
they bestow labor.
AH liens must be set forth by a statement in
writing, showing the amount due, the facts connected With the matter,
that there are no credits due on the claim, or offsets against the
same; which statement must be verified by the claimant, and recorded
in the office of the county recorder, if on claim of original contractor,
within ninety days, if on claim of other persons, wit)»In sixty days
from the time of the completion of the structure the completion of the
labor, or the furnishing of the materials. Lien must be enforced by
suit within six months, unless credit Isr given, expires at all events
In two years.
Limitation to Suits. Contracts not in writing and open accounts,
four years; instruments in writing, five years; judgments and decrees,
six years. Revivor: Only by instrument in writing; part payment
does not.
Married Women. All property, real or personal, acquired before
marriage and acquired after marriage, by gift, bequest, devise, or
descent, and her personal earnings and the income from her separate
property are the wife’s separate property; all other property acquired
after marriage, common property; vjlfe must record inventory of
separate personal property. No estate as tenant by courtesy aUowed
the husband, nor dower to the wife.
Mines and Mining. (Principal regulations under United States
Statutes.) Quartz locations may be 1,500 feet long and 300 feet on
each side of the middle of lode. Monuments must be established at
all exterior angles of claim. Claim should be tied to some natural
or permanent monument. Copy of location notice must be posted
at discovery within three days after discovery. Notice of location
must be recorded within ninety days after location; within sixty days
ten-foot shaft must be sunk or its equivalent. Location notice must
contain name of locator, name of claim, date of discovery, dimensions,
distance from some permanent, natural, or artificial object; name of
mlniqg district, county, and state. Placer locations made in same
manner as quartz locations, except that within fifteen days after
making location, locator must excavate not less than 1 0 0 cubic feet
for purpose of prospecting claim, and must record notice of looation
within thirty days after making location.
Mortgages. A real estate mortgage must be acknowledged and
certified, and recorded in like manner as conveyances and deeds
of real property, and Is foreclosed by action in the district court.
Chattel Mortgages must be acknowledged as real estate mortgages
and sworn to by the mortgagor that the same, is made in good faith
without any design to hinder, delay, or defraud creditors. Must be
filed and a minute record made by recorder, unless mortgagee has
possession. Survives as long as the debt. Mortgages are-discharged
by a satisfaction duly executed and recorded, or by entry on margin of
the record, witnessed by recorder.
Negotiable Instruments. Negotiable instruments are governed
by the rules of the Uniform Negotiable Instrument Law, as recom­
mended by the American Bar Association. (See Laws 1903, p. 380.)
Notaries, when requested, to demand acceptance and payment
of foreign, domestic, and inland bills of exchange or promissory
notes and protest the same for non-acceptance and non-payment;
exercise such other powers and duties as by the law of nations and
commercial usage, or by the laws of any other Territory, State, govern­
ment, or country may be performed by notaries. Attach acknowl­
edgments or proof of powers of attorney; mortgages, deeds, grants,
transfers, and other Instruments of writing executed by any person.
Give certificate of such proof or acknowledgment, to take depositions,
affidavits, and administer oaths and affirmations In all matters incident
to duties of the office. To keep a record of aU official acts; when
requested, and upon payment of his fees therefore, to make and give
a certified copy of any record in his office; to provide and keep an
official seal, on which must be engraved his name, the words “ Notaiy
Public," and the name of the county for which he is commissioned
To authenticate with his official seal aU official acts. The commission
is good throughout the State.
Power of Attorney. Powers of Attorney for grants of real estate
and to execute a mortgage must be in writing, subscribed, acknowl­
edged or proved, certified and recorded as other Instruments affecting
real property. Powers of attorney which have been recorded must
be revoked by revocation in writing, acknowledged, proved, certified,
and recorded the same as original power.
Probate'Law. Probate courts have Jurisdiction to open’ and
receive proof of wills and admit them to proof; to grant letters testa­
mentary and guardianship and revoke same; appoint appraisers of
estates, compel executors, etc., to render accounts; order sale of prop­
erty of estates and minors; order payment of debts due from estates.

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order and regulate distribution of property or estates; compel attend­
ance of witnesses and production of all instruments pertaining to
estates ana property or minors, ana make such orders as may be neoessarv to exercise all powers conferred. Proceedings of this court are
construed the same as courts of general jurisdiction ana like force given
to its records.
Protest. (See Notaries.)
Records. All deeds, mortgages, real and chattel, and instruments
affecting the title to lands must be recorded. Inventory of the
separate personal estate of a married woman when recorded, becomes
prima facie evidence that the property therein enumerated is her
separate property. In case of levy of attachment upon real estate, a
copy of the writ, with a copy of thè notice of levy attached thereto,
must be filed in the office of the county recorder.
Redemption. Prqperty may be redeemed within one year after
sale, on paying purchaser amount paid on sale and 1 0 per cent addi­
tional. Property may be redeemed by successive redemptioners
within sixty days from last redemption, and within one year from
sale, by paying an additional 4 per cent. In cases of tax sales, the
owner may redeem in three years.
Replevin. Action of, must be brought within three years from time
it accrues. Plaintiff may sue for the possession without daiming
immediate possession, or he may claim immediate possession at time of
commencing suit or afterward. Affidavit showing that plaintiff is the
owner, the detention, the unlawfulness of the detention, etc., and bond
with sureties required to obtain immediate possession. Defendant may
execute undertaking, with approved sureties, for the retention of the
property, and that it will be forthcoming, subject to the order of the
court In which the action is pending, and thereupon retaih the posses­
sion of the property Involved.
Sales. Uniform sales Act recommended by American Bar Asso­
ciation.
>
Seals. The distinctions between sealed and unsealed Instruments
are abolished. Written contracts presumptive evidence of con­
sideration. .
Succession to Property. If decedent leave spouse and one child
each entitled to one-half of decedent’s separate property, both real and
personal;,If mqre than one child, surviving spouse gets one-third and
remainder in equal shares to surviving children. In the case of
community property, the surviving spouse takes *11 the property,
subject to the right of testamentary disposition of one-half thereof by
the decedent. .(See Wills.) ,
Taxes. AU property must be assessed with reference to its value
at twelve o’clock noon on the second Monday of January of each
year at its full cash value, and the owner or other claimant of the
property shall have the same listed for taxation, and such taxes are
a Hen from ana after that date. If taxes are not paid by the fourth
Monday in December they become delinquent, but half of the takes
may be paid before said date and the remaining half before the fourth
Monday in June without deHnquency. A penalty of 6 per cent is
added on aU delinquent taxes. Delinquency certificates issue to the
county for all delinquent taxes dated as of the second Monday in
January, bearing interest at 12 per cent, which are assignable. •For
taxes levied for 1917 and subsequent years the owner must redeem
within three years from date of certificate. Holder of certificate
must serve written notice of his intention to apply to Auditor for
tax deed on record owner of land and person in possession at least
three months and not more than five months before the expiration
of three.years,!and on holders filing affidavit for record showing com­
pliance, and(after expiration of three years, he is entitled to tax deed
conveying absolute title to the lands. (CompUed Laws Chapter 133).
Trust Companies. (See Guaranty Companies.)
Ware House Receipts The Uniform Warehouse Receipts Act,
recommended by the American Bar Association.
Wills. Every person over the age of eighteen years, and of sound
,mlnd, may make a wlU. Every will, other than a nuncupative wUl,*
must be in writing, and every will other than an olographio and a
nuncupative wUl, must be executed by the testator subscribing thereto
or some person by bis direction, which must be done in the presence
of two attesting witnesses, each of whom must sign his name and
state that the testator requested him to witness the testator’s signa­
ture, and the teBtator must also declare in the presence of the wit­
nesses that such is his last will and testament. One-half of com­
munity property may be disposed of by wfil to his, her or their children,
but not to exceed one-fourth to a parent or parents of either spouse.
Workmen’s Compensation Act. See Chapter 81 Session Laws
1917.
i
SYNOPSIS OF

THE LAWS OF ILLINOIS
RELATING TO

BANKING AND COMMERCIAL USAGES

Prepared and Revised by Messrs. M ubgbave, Oppenheim & L ee,
Attorneys at Law, Chicago (See Card in Attorneys’ List.)
Acknowledgments. Of deeds of real estate and other instruments,
may be taken before the following officers: Within this State before
a master in chancery, notary pubUc, United States commissioner,
county clerk, justice of the peace, any court of record having a seal
or any judge, justice, or clerk thereof. Without this State, and within
the United States, its\territories, dependencies, or the District of
Columbia, before a justice of the peace, notary public, master in chan­
cery, United States commissioner, commissioner to take acknowledg­
ments of deeds, mayor of a city, clerk of a county, or before any judge,
justice, clerk or deputy clerk of the supreme, or district court
of the United States, or before any judge, justice, clerk or deputy
clerk, prothonotary, surrogate, or registrar of the supreme, circuit,
superior, district, county, common pleas, probate, orphans or surro­
gate court of any of the States, Territories, or dependencies of the
justice, clerk or deputy clerk of the supreme, or district court of
the United States, or before any judge, justice, clerk or deputy clerk,
prothonotary, surrogate, or registrar or the supreme, circuit, supe­
rior, district, county, common pleas, probate, orphans or surrogate
court of any of the States, Territories, or dependencies of the United.
States. In any dependency of the United States, such acknowl­
edgment or proof may also be taken or made before any commissioned
officer in the military service of the United States. When such
acknowledgment or proof is made before a notary pubUc, United
States. In any dependency of the United States, such ac­
knowledgment or proof may also be taken or made before any com-

BANKING AND COMMERCIAL LA W S— ILLINOIS

missioned officer In the military service of the United States. When
such acknowledgment or proof Ismade before a notary public. United
States commissioner, or commissioner of deeds, it must be certified
under his seal of office. If taken before a mayor of a city, it must be
certified under the seal of the city; If before a clerk, deputy clerk,
prothonotary, registrar, or surrogate, under the seal of his court;
If before a justice of the peace, or a master in chancery, there must
be added a certificate of the proper clerk under the seal of his office,
setting forth that such person was a justice of the peace or master
in chancery at the time of taking such acknowledgment or proof.An acknowledgment or proof of execution may be made in conformity
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 mat
rled woman may be made and certified as if she were single. AS
acknowledgment taken by any one interested in the conveyance is void.
Actions. Forms of action and pleadings are substantially as at
common law except in justice courts and the municipal court of Chi­
cago. wherein the practice has been much simplified. A non-resident
Is required to give a bond for costs.
Administration' of Decedents’ Estates. Letters testamentary
Issue to executor named in will, if he be a resident. If there be no
will, or no executor named, or the executor is disqualified or refuses
to act, administration is granted to surviving husband, or wife, next
of kin, or some competent person. The surviving husband or wife,
or the person nominated by him or her, has preference. If none of
the above named applies within sixty days from death of deceased,
then administration is granted to the public administrator of the proper
county. The administrator must be a resident of the State. A
foreign executor or administrator; within the United States, may
prosecute suits to enforce claims or to sell lands to pay debts. The
Uniform Foreign Probate Act is in force in Illinois. The executor
or administrator must file an inventory within three months from the
date of his appointment and must fix upon a term of court, within
six months from the time he qualifies, for the adjustment of claims,
and publish notice thereof. The claimant should produce and file
his verified claim, which, if not objected to, may be allowed without
further evidence. If objected to, the claim is set down for trial. If
the claim is not presented at the time fixed upon, it may afterwards,
within one year, from the date of the issuance of letters of adminis­
tration, be filed with the clerk, whereupon a summons issues against
the executor or administrator, and the matter is heard at a subsequent
term. All claims not exhibited within one year from granting of
administration are barred. Claims are classified as follows: 1 . Fu­
neral 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 or 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.
Aliens. The present law went into effect July 1, 1897. It does
not affect the rights of aliens as to personal property, who still take
the same as citizens. Its provisions are subject to treaties made by
the United States with foreign countries. All aliens, subject to cer­
tain restrictions mentioned in the act, may acquire and for a limited
time hold real estate situated in this State by deed, devise, or descent,
and may transfer, devise, or encumber it.
Arrest and Bail. No person can be imprisoned for debt unless
upon refusal to deliver up his estate for the benefit of his creditors
In such manner as shall be prescribed by law, or, in cases where there
Is a strong presumption of fraud.
Assignments. The operation of the Illinois Act relating to
voluntary assignments for the benefit of creditors has been suspended
by the national bankruptcy law.
Attacbments. A creditor, resident or non-resident, whose claim
is due, may bring attachment in a court of record if the amount
exceeds *2 0 , and in justice court for any amount not exceeding *2 0 0 ,
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 be served upon him. 3. Where the
debtor has departed from this State with the intention of having his
effects removed from this State. 4. Where the debtor is about to djepart
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. S. 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.
Banks. 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
be formed under the statute for the purpose of discount and deposit,
buying and selling exchange, and doing a general banking business,
except the issuing of bills to circulate as money; may loan on both
personal and real estate security, and may accept and execute trusts.
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. No 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
may 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.
110

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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
ran 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
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. If
he 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.
One drawing and delivering a check, draft, or order on a bank with
intent to defraud, and knowing at the time that he had not sufficient
funds in or credit with the bank to pay the check, draft or order in
full, is guilty of a misdemeanor and is subject to a fine of $1 ,0 0 0 , or
imprisonment for one year, or both.
Bills of Lading. The Uniform Bills of Lading Law is in force in
Illinois.
A Blue Sky Law went into effect January 1, 1918, governing the
sale of stocks of corporations. A statement of the assets, liabilities
and ramings (if any) must be filed with the Secretary of State and a
permit granted by him before securities can be offered for sale.
Chattel Mortgages. No 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 2 0 0 ,0 0 0 , 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.
Commercial Paper. (See Negotiable Instruments.)
Conditional Sales and tike 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.
Consignments. Agreements to sell on consignment are valid.
If a commission merchant, or party selling on commission, converts
the property consigned, or after demand fails to account for the pro­
ceeds, he is subject to fine and imprisonment, and liable for double
the value of the property so converted.
Conveyances. See Deeds.
Corporations for pecuniary profit may be organized for any lawful
purpose except banking, insurance, real estate brokerage, operation
of railroads, and loaning money. A “ building corporation” may be
organized, subject to certain restrictions, to own, erect, lease, or oper­
ate only one building and the site therefor of not more than eighty
thousand square feet of land. Such corporations cannot be con­
solidated, nor their stock acquired by holding companies. Real
estate agency and mortgage loan corporations as defined in the act,
may be formed under certain specified restrictions. There is a special
act permitting not less than ten residents of the county in which the
principal office is located to form a corporation for the purpose of
acquiring real estate and erecting thereon residences for lease or sale.
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 * 1 0 nor more than * 1 0 0 ), location of principal
office, and duration (not exceeding ninety-nine years); which state»
ment 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 addi­
tional for each $1,000 of capital stock in excess of *5,000. Upon
receiving the license to organize, subscriptions are obtained, and after
the entire stock is subscribed, the commissioners 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 sarnie shall be appraised by
said commissioners, and they shall report fair cash value thereof, ana
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 Company. 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 over 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. No assignor of stock Is released from this

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BANKING AND COMMERCIAL L A W S — ILLINOIS

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.
The Uniform Stock Transfer Act is in force in Illinois as to all certif­
icates issued after July 1, 1917. If the indebtedness of a corporation
exceeds its capital stock, the directors and officers assenting thereto
are personally liable to creditors for such excess. Every stockholder
has the right at all reasonable times, 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. *Corpo­
rations are taxed on their tangible property, real and personal, within
the “State, and also upon the fair cash value of their capital stock,
including franchises, over and above the assessed value of their
tangible property. Shares of stock of domestic corporations, whose
tangible property or capital stock is taxed, aro 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 loan
money may do so here. This does not include, however, banking
igiwers and privileges. A foreign corporation desiring to do business
in Illinois must make application to the Secretary of State, 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 attprney in fact upon whom service 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 charier 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 represented by its property and
business in Illinois, fees equal to those required of similar corporations
formed under the laws of this State. All. amendments to charter of
foreign corporations must be filed with the Secretary of State. If
proportion of stock represented by property tocated and business
transacted in this State be increased, an additional fee of $1.00 per
$1,000 must be paid, and the Secretary of State is authorized to
propound to the corporation, from time to time, interrogatories to
elicit the facts in this regard. If a foreign corporation has shares of
no par value, this value is considered $ 1 0 0 for the purpose of fixing
the license fee. Every such foreign corporation neglecting to comply
with this law is subject to a penalty of not less than $1 ,0 0 0 and nqt
exceeding $1 0 ,0 0 0 , to be recovered before any court of competent
jurisdiction, and in addition to such penalty if any such foreign
corporation shall fail 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.
Courts. Supreme court (seven judges); four appellate courts
(intermediate court of appeals, three judges each); circuit courts (in
Cook County also superior court of equal jurisdiction); criminal
courts; county courts (which also exercise probate jurisdiction in
counties having less than 70,000): probate courts (in counties having
over 70,000): municipal courts (Chicago has a municipal court with
a chief justice and thirty associate judges and special practice; and
justice courts.
Days of Grace are abolished. (See Negotiable Instruments.)
Deeds conveying land should be signed, sealed, and acknowledged
by grantor. Scrawl seal is sufficient. No subscribing witnesses are
required. Statutory forms of warranty and quit claim deeds and
mortgages are provided. The words employed are (1) conveys and
warrants, (2) conveys and quit claims, (3) mortgages and warrants.
No deed releases the right of .homestead unless it contains a clause
substantially as follows; “ Hereby releasing and waiving all rights
under and by virtue or the homestead exemption laws of -the State
of Illinois," in which case the certificate of acknowledgment should
contain the clause, “ including the release and waiver of the right
of homestead.!' To release dower the husband or wife must join in
the conveyance, except in the case of a mortgage for purchase money;
otherwise the husband and wife may convey as unmarried. Deeds
and other instruments affecting real estate should be recorded in the
county where the real estate is situated; until so recorded they are
void as to creditors and subsequent purchasers without- notice.
Depositions. In chancery cases if the witness resides in the
county, depositions may be taken on five days’ notice; otherwise on
ten days’ notice and one day in addition for every fifty miles. At
tyw, 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.
Descent and Distribution. Property in this State, real and
personal, of residents or non-residents dying intestate, descends and
is distributed as follows: 1. To the children and their descendants
equally, the descendants of a deceased child or grandchild taking
the share of their parents in equal parts. 2. When there is no child,
nor descendant of a child, and no widow or surviving husband, then
to the parents, brothers, and sisters and their descendants equally,
allowing to the parents, if living, a child’s part, or the survivor a
double portion; and if there is no parent living, then to the brothers
and sisters and their descendants. 3. 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 the personal estate absolutely (see Dower and
Curtesy). 5 . If therd 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.

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Dower. A surviving, husband has dower (1. e., life interest in a
third part of all lands whereof deceased was seized of an estate of
inheritance during marriage) the same as a widow. Equitable estates,
and land contracted for before death, are subject to dower. Dower
may be barred by jointure assented to; by devise, unless widow or
surviving husband renounces benefit of devise within one year from
date of letters of administration; by divorce as to the party in
fault; and by abandonment coupled with adultery. There is no
dower in land as against- a purchase-money lien. [The husband or
wife may renounce any devise under the will of the other and take.
If there be children, dower and one-third of personal estate, or, if no
children, one-half of both real and personal estate absolutely.
Executions. (See Judgments and Executions.)
Executors and Administrators. (See Administration.)
Exemptions. There is a homestead exemption to the extent of
$1,009. It may be extinguished by conveyance joined in by husband
and wife properly acknowledged. (See Deeds.) The following
personal property is exempt: 1. The necessary wearing apparel,
Bibles, school books, and family pictures. 2. One hundred dollars
rth of other oroperty, to be selected by the debtor, a/nd in addition,
en the debtor is the head of a family and resides with the same,
$300 Worth of other property, to be selected by the debtor. Exemp­
tions can not be claimed out of partnership property. The wages
of a wage earner being the head of a family ana residing with the
same are exempt from garnishment to the amount of $15 per week.
Frauds, Statute of. The following contracts should be in writing:
1. A promise of an executor or administrator to answer any debt or
damages out of his own estate. 2. A promise to answer for the debt,
default, or miscarriage of another. 3. An agreement made In con­
sideration of marriage. 4. An agreement not to be performed within
one year. 5. Any contract for the sale of lands, or any interest
therein for a longer term than one year. 6 . Express trusts relating
to real estate. “ A contract to sell or a sale of any goods or choses
in action of the value of five hundred dollars or upwards is not enforcible by action, unless the buyer accepts part of the goods or choses
in action so contracted to be sold or sold, and actually receives the
same, or gives something in earnest to bind the contract, or in partpayment, or unless some note or memorandum in writing of the
contract or sale be signed by the party to be charged or his agent in
that behalf. The act applies to sales for future delivery and to goods
to be obtained or manufactured by the seller, but not to sales of goods
to be manufactured on special order if they be not suitable for sale
to others in the usual course of business.”
Garnishment. The funds or property of a debtor in the possession
of a third party may be garnished in an attachment suit, or in a separate
proceeding after judgment has been obtained against the principal
debtor. (See Attachments.)
Holidays, Legal. January 1st, February 12th, February 22d,
May 30th, July 4th, October 12th, December 25th, first Monday in
September (Labor Day), Thanksgiving Day, and election days; also
every Saturday from 12 o’clock noon to 12 o’clock midnight. Where
holidays fall on Sunday, the day following.
Husband and Wife. (See Married Women.)
Interest. Extreme contract rate, 7 per cent; 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.
Judgments and Executions. A judgment is a lien on real
estate situated in the county where the judgment is rendered, for
seven years from its date. If an execution is not issued on a judgment
within one year the judgment ceases to be a lien. A transcript of a
judgment in another county may be filed and thereupon becomes a
lien upon real estate of the defendant in the county where filed, and
execution may issue thereunder. An execution becomes a lien on
personal property from the time it is delivered to the officer to be
executed. All goods and chattels, including money and stock in a
corporation, may be levied on. Personal property may be sold under
execution on ten days' notice. A forthcoming bond may be given
by the defendant to the officer. A third party claiming the property
levied on may have a trial as to the right of property in the county
court. Judgments may be confessed by a debtor or his authorized
attorney without process in term time or vacation.
Liens. A landlord has a lien for rent upon crops growing on the
demised premises. Hotel, inn, 'and boarding-house keepers have a
lien upon baggage and other valuables of guests. Stable-keepers have
a lien upon horses, carriages, and harness for the keeping thereof.
Garage keepers are entitled to liens on automobiles, parts and acces­
sories, for keeping, repairing, materials furnished thereto, and the
expenses bestowed thereon at the request of the owner, or the person
having the possession thereof. Agisters and persons keening, yarding,
and feeding domestic animals have a lien therefor. All persons furnish­
ing supplies, or doing work for any railroad organized under the laws
of this State, necessary for the construction, maintenance, operation,
or repair of the road, have a lien therefor on all the property of the
company, which is good as against mortgages and other liens acquired
after the commencement of the delivery of supplies, or the domg of
the work. Attorneys have liens on all demands, claims, and causes of
action of their clients, after the service of notice upon the adverse
party. Contractors and sub-contractors, including architects, super­
intendents, timekeepers, etc., have liens on any real estate, interest
therein, or improvements thereon, for all kinds of labor and services
performed, and materials furnished for the erection of any building,
or the improvement of any real estate, or thing connected therewith.
A person furnishing material, apparatus, fixtures, machinery dr labor
to a contractor for a public improvement, has a lien upon the money,
bonds or warrants due or to become due under such contract: Pro­
vided, the claimant Servés upon the municipality a notice of his claim
before payment be made to such contractor; but the lien attaches only
to the portions of the money, bonds, or warrants against which no
voucher or other evidence of indebtedness has been issued and delivered
to the contractor.
Limitations. In -personal actions as follows: Libel and slander,
one year; actions for damages for injury to persons, two years (where
death results, one year after death); for false imprisonment, malicious
prosecution, for a statutory penalty, for abduction, seduction, or
criminal conversation, two years; actions on unwritten contracts,
express or implied, on awards of arbitration, to recover damages fort

BANKING AND COMMERCIAL L A W S— INDIANA

injury to property real or personal, to recover possession of personal
property, or damages for the detention of conversion thereof, and
aU civil actions not otherwise provided for, five years; actions on
bonds, promissory notes, bills of exchange, written leases, written
contracts, or other evidences of indebtedness in writing, ten years;
but any payment or new promise to pay in writing renews the right of
action on such instrument for ten years from the time of such payment
or promise. A domestic judgment of a court of record, twenty years;
of a foreign court of record, five years.
•
Limited Partnership. There are statutory provisions as to the
formation of limited partnerships, but such partnerships are not
common in Illinois.
Married Women. A married woman may sue, be sued, or defend,
as if she were unmarried. When the husband deserts, the wife may
prosecute or defend in his name. The husband has the same right
upon the desertion of the. wife. The husband is not liable for the
wife’s torts except in cases where he would be jointly responsible
if the marriage did not exist. The husband or wife is not liable for
the debts of the other incurred before .marriage, or for the separate
debts of each after marriage, except that the husband and wife are
jointly and severally liable for th3 expenses of the family and the
education of their children. The wife may contract as if unmarried,
except that she can not carry on a partnership business without the
consent of her husband, unless he has abandoned her. or is Insane,
or confined in the penitentiary. She may receive and use her own
earnings free from the interference of the husband or his creditors.
Neither the husband nor the wife can recover compensation for any
labor performed or services rendered for the other. She may own
in her own right real And personal property obtained by descent,
gift, or purchase, and manage, sell, and convey it to the same extent
that the husband can property belonging to him; but no transfer of
personal property between the husband and wife' living together is
good as against third persons, unless acknowledged and recorded as
chattel mortgages are required to be. ' A married woman who without
ber fault lives apart from her husband may maintain an action for
reasonable support and maintenance. The wife may insure her
husband’s life. She may become surety for the husband. She may
execute a will, if over eighteen years of age, at which age she attains
majority.
Mortgages. ’ Real estate mortgages should be executed and ac*
knowledged the same as deeds. The wife must join to bar
dower, except in mortgages for purchase-money. Trust deeds are
often preferred to mortgages because of the facility in the transfer
of the security and, in case of non-resident creditors, in obtaining a
release, the trustee generally being a resident, lineal 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 lass value than the debt secured and the mort­
gagor is insolvent, there may be a strict foreclosure which cuts off the
right of redemption, in which case the mortgagee takes the property
in discharge of the debt. In other cases, after decree of foreclosure,
the officer designated to execute the decree delivers a certificate there­
of to the creditor and files a copy thereoffor record. The debtor may
redeem within twelve months, or if no judgment creditor redeems,
them within fifteen months; at the end of which time the real estate
is sold to satisfy the decree and costs, with six per cent interest. The
holder in due course of a note secured by a mortgage or trust deed on
real estate in Illinois stands in no better position, so far as the enforce­
ment of his security is concerned, than the payee or original holder:
but this doctrine does not apply to corporate bonds payable to bearer.
Negotiable Instruments. The “Uniform Negotiable Instru­
ments Law’’ adopted in New York and most of the other states is in
force in Illinois, as to all dommercial paper executed after July I,
1907, with the following modifications: 1. All Promissory Notes,
Bonds, Due Bills, and other instruments in writing, whereby one
promises or agrees, to pay any sum of money or articles of personal
property, or any sum or money in personal property, or acknowledges
any sum of money or article of personal property to be due, are nego­
tiable. Except as to Promissory Notes payable in money due diligence
must be used by the holder against the maker, if he be a resident
and solvent, by suit at first term of Court after maturity, in order to
hold the endorser. 2. Accommodation paper may be issued after
maturity, if such was the intention of the accommodating party.
3. The addition of words of assignment or guaranty to a blank indorse­
ment does not affect the signature as an indorsement unless otherwise
expressly stated. 4. The uefenses of fraud and circumvention in
the execution of negotiable paper, or that the consideration arose
out of a gambling.transaction prohibited by sections 13d, 131, and
136 of our Criminal Code, may be asserted as against a holder in due
course. 5. The fact that a depositor makes his note payable at a
baDk does not authorize the bank to pay it out of his funds on deposit.
6 . An alteration of an instrument avoids it only when it is material or
fraudulent, and made by the holder. 7. A promise in writing to accept
a bill made either before or after it is drawn is deemed an actual accept­
ance as to the person receiving the bill on the faith thereof. 8 . Section
137 of the Uniform Negotiable Instruments Law, providing that the
destruction by the drawee of a bill of exchange left with him for accept­
ance, or his refusal to return the same within twenty-four hours after
delivery to him or within such further period as the holder might
allow, should be deemed an acceptance of the bill, is omitted from the
Illinois act.
Partnership. The Uniform Partnership Act and the Uniform
Limited Partnership Act are in force in Illinois.
Probate Law. (See Administra.tioh%
pf Estates.)
Recording Acts. In counties having a population of less than
80,000, the clerk of the circuit court is ex officio the recorder. In
other counties a “ recorder of deeds” is elected. As to what instru­
ments must be recorded, see respective titles.
Replevin. The action lies for personal property wrongfully de­
tained. The action may be brought in any county where the property
is, or where any of the defendants reside or may be found. Before
the execution of the writ, the plaintiff, or some one in his behalf,
must give the officer a bond with sufficient security (a real estate
owner of the county is generally required) in double the value of the
property.
Sales in Bulk. Sales of the major part orTall of a stock in trade,
chattels or fixtures not in the ordinary course of business, are fraudu­
lent and void as to creditors unless the buyer obtains from the seller
an affidavit giving a list of his creditors with addresses and amounts
due each, and the buyer, five days before payment, gives notice to
each creditor personally or by mail of the contemplated purchase. .
Taxes. All real and personal property in this State, including
moneys, credits, bonds, stocks, investments, shares of stock in cor­
porations (see Corporations), and of banks doing business in this State,
Is subject to taxation. Real and personal property is listed with the
County Assessor and assessed between April 1 st and June 1st as of
April 1st. The taxes are payable on or before May 1st of the ensuing
after which time penalties are added. There is an Inheritance
?ear;
'ax Law, the rates varying according to the relationship of the heir,
devisee, or legatee, and the amount of the legacies, ranging from 2 per
cent in the cases of widowand children, as to legacies exceeding $2 0 ,0 0 0 ,
to 10 per cent on large amounts bequeathed to persons not related
to the deceased.
*

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17-31

Warehouse Receipts. The Uniform Warehouse Receipts Law
is in force in Illinois.
Wills. Every male over twenty-one, and female over eighteen,
is competent to make a will. It must be signed by the testator or
by some person in his presence and by his direction, and attested in
his presence at his request by at least two witnesses. The witnesses
should be disinterested. A devise to a witness is void unless the will
be otherwise duly attested by two witnesses exclusive of such person.
Where the subscribing witnesses are dead, secondary evidence of the
execution is admissible. The will is proved, after notice to heirs and
legatees, in the county'(or probate) court, and may be contested, in
chancery, within one year after its probate. Wilis or' authenticated
copies, affecting estate within this State, duly proved outside of this
State, in accordance with the law of the State where executed, accom­
panied with a certificate of the proper officer of that fact, may be
recorded here. Wills executed and published out of this State may
be admitted to probate in any county; in this State where the testator
had lands or personal property upon like proof as if executed and pub­
lished here, whether or not the will has beep first probated in another
state or county. The Uniform Foreign Probate Act is in force in
Illinois. All original wills, after being filed, must remain in the office
of the county (or probate) court. Children may be disinherited.
SYNOPSIS OF

THE LAWS OF INDIANA
R E L A T IN G TO

BANKING AND COMMERCIAL USAGES

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

1732

BANKING AND COMMERCIAL LAWS-!-INDIANA

debtor remains In sucb employment. It Is a misdemeanor to send
rifiinn out of the State to be collected by attachment, or garnishment,
when oreditor. debtor, and person owing for earnings Intended to
be reached are all within the jurisdiction of the court of this State.
The collection of daims so sent may be enjoined.
Banks, Private. Act of 1907 (In effect Deo. 1. 1907), regulating
banking applies to any one who may use the word "bank
Srivate
i his business. Capital must be at least $10,000, not more than onethird ef which may be invested In the bank building. All real estate
must be held In name of bank. Bank cannot invest in real estate
except In realizing on doubtful daim. Statement must be filed with
state auditor showing copy of articles of partnership acknowledged
(one of the partners to be resident of the state); location, amount
of capital, net worth of partners to be double capital paid in. names
of officers. List of officers must be posted In bank. Two reports of
resources and liabilities are called for each year by auditor and pub­
lished In local newspaper. Examination of bank made at least
annually by auditor. Statement of property held in trust by bank
must be filed In county recorder’s office. Depositors have lien on
assets. Jurisdiction over all persons Interested Is obtained by
process served on officer in charge. Banks can not commence business
until chartered by State Charter Board. Banks cannot establish
branches without first having obtained a charter from the State Charter
board.
Banks, Savings. Governed by a general statute which regulates
In minute detail the Investments and conduot of business. Savings
banks may purchase, hold, and convey rèal estate for the following
purposes, and none other; For the location of banking house; real
estate mortgaged to it in good faith for money loaned, or upon which
It shall nave purchased a mortgage; real estate taken upon judgments
and decrees on behalf of the bank, or purchased to prevent loss on
claims held by the bank.
Banks, State. Regulated by a general banking law. The auditor
of the state appoints a state bank examiner who shall not be a
director or other officer of the bank, and shall have power to make
a thqrough examination into all the affairs of the bank, and. In doing
■o, to examine any of the officers and agents thereof on oath. The
examiner reports in detail the condition of the bank from time to
time. The state banks must make not less than five reports each
year, verified by the president, or other managing agent, which
reports'must exhibit the resources and liabilities at the close of busi­
ness on any past day to be by the auditor specified. The report so
required must be published In a newspaper where the bank is estab­
lished, or. If there Is no newspaper In the place, then In one pub­
lished nearest thereto in the same county or an adjoining county.
The auditor may require special reports from any bank, whenever
In his judgment, It shall be necessary In order to a full knowledge ol
Its oondltlon. Any bank failing to make such report shall be subject
to a penalty of $100 for each day that It delays to make and transmit
the same. All banks are empowered to execute trusts and act as
trustees.
'
„ .. „
,
On September 30, 1920 all duties, power and authority formerly
vested in the auditor of State as to banks of all kinds, building and
loan associations, mortgage guarantee companies, rural loan and savmg
associations, will be lodged in a Banking commissioner appointed by
the Governor and said Commissioner will be at the head of the Depart­
ment of Banking a separate branch of the State Government. All
laws relating to above named companies remain in full force and effect.
Bills of Exchange and. Promissory Notes. No grace is allowed.
Damages for protest on bills upon any person at any Place out of
this State, but within the United States, 5 per cent on bills drawn
upon any person at any place without the United States* 10 per cent*
(See Negotiable Instruments.)
Chattel Mortgages. Chattel mortgage on personal property left
In the hands of the mortgagor with power to sell must stipulate that
the money received by the sale be applied to the payment of the
mortgage debt, and should be drawn In the form of an absolute bill
of sale; must be acknowledged In the same manner as prescribed for
the acknowledgment of deeds, and recorded within ten days from
execution, and In the county where the mortgagor resides. An
assignment of goods, by way of mortgage, where such goods are not
delivered to the mortgagee, shall not be valid against any other person
than the parties thereto, unless such mortgage shall be acknowledged,
and recorded within ten days after the execution thereof. Where
delivery of the chattels to the mortgagee occurs at the time, record
is unnecessary. A mortgagee of household goods can not sell mort­
gaged property except under a Judicial proceeding in the circuit or
superior court. For certain restrictions on the lending of money
on mortgage of household goods, see the statutes.
Conveyances. All conveyances, mortgages or leases for more than
three years shall be recorded and take priority according to time of
filing as against good faith purchaser, lessee Or mortgagee. Lands in
this State may be taken, held, conveyed, devised, or passed by
descent, by or from any citizen of the United States; or by or from
any alien (see Allens), with some provided exceptions as to desoent
or devise. Lands which may have come by descent or purchase to
the wife of an alien, may be held, conveyed, devised and passed by
descent by and from her, notwithstanding the fact of her residence
with her husband In a foreign state or country
Except bona-fide leases for a term not exceeding three years, con­
veyance of lands, or of any Interest therein, must be by deed, sub­
scribed, and acknowledged by the grantor or by his attorney In fact.
The Joint deed of a husband and wife Is sufficient to pass the lands
of the wife. Except In cases of mortgages, conveyances In tnist,
conveyances to husband and wife, and cases of estates vested in
executors or trustees, as such, and so held by them In joint tenancy,
all conveyances and devises of lands, or of any Interest therein, made
to two or more persons* shall be oonstrued to create estates in coinmop, and not In joint tenancy, unless It shall be expressed therein
that the grantees or devisees shall hold the same in joint tonanoy
and to the survivor of them, or it shall manifestly appear from tenor
of instrument, that It was intended to create an eBtate In Joint tenanoy.
A deed of release or quit-claim shall pass all the estate which the
grantor could convey by a deed of bargain and sale. If It be the
Intention of the grantor to convey any lesser estate It must be so
expressed In the deed. Liability on lineal and collateral warranties
Is expressly abolished; a covenant or agreement of any person leaves
1 hairs and devisees answerable thereon only to the extent of property
descended or devised to them. Any conveyance of land worded—
••A. B. oonveys and warrants to C. D. (here describe the premises)
for the sum of (here insert the consideration), or "A. B. quit-malms
to O. D. (here describe the premises) for the sum of (here Insert the
consideration),”—the same being dated.>nd duly signed and acknowl­
edged by the grantor,—«hall. In the one case, be a conveyance In fee
«twini» to the grantee, his heirs and assigns, with covenant from the
grantor for himself and his heirs and personal representatives that
he Is lawfully seized of the premises, has good right to convey the
same, and guarantees the quiet possession thereof, that the same are
frae from au Incumbrances, and that he will warrant and defend the
title of the same against all lawful claims; and shall. In the other
«Me. be deemed to be a good and sufficient conveyance In quit-claim
to the grantee, his heirs and assigns. Any mortgage of lands worded
__«A. B. mortgages and warrants to G. D. (here describe the premises)
to secure the repayment of (here recite the sum for which the mortgage
Is granted or the note or other evidences of debt, or a description


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Federal Reserve Bank of St. Louis

thereof, sought to be secured, also the date of the repayment) —tne
same being dated and duly signed and acknowledged by the grantor
—is a sufficient mortgage to the grantee, his heirs, assigns, executors
and administrators, with warranty from the grantor and his legal
representatives of title perfect and unincumbered In the grantor,
when a deed purports to convey absolutely any estate in lands, but
Is made, or Intended to be made, defeasible by force of a deed of
defeasance, bond or other instrument for that purpose, the original
conveyance shall not (hereby be defeated or affected as against aqy
person other than the maker of the defeasance, or his heirs or devisees,
or persons having actual notice thereof, unless the Instrument of
defeasance shall have been recorded, according to law, within ninety
days after the date of said deed. Every conveyance or mortgage of
lands, or of any Interest therein, and every lease for more than three
years, shall be deemed fraudulent and void as against any subsequent
purchaser, lessee or mortgagee in good faith and for a valuable con­
sideration, unless recorded In the recorder’s office of the county where
such lands are situated. (See Acknowledgments, Married Women.)
When either the husband or wife is of unsound mind the party
with the sound mind can either join in the guardian’s deed or'make
Ids separate deed and the effect would be the same as a joint deed of
husband and wife both of whom are of sound mind.
Corporations. Domestic Corporations. Corporations are created
only under general statutes. This is done by means of articles of
association, filed with the secretary of state, and the recorder or clerk
of the county, as provided by statute. The liability of stockholders
varies according to the nature of the corporation in question and the
law under whloh it was organized. In the corporations which were
In existence November 1, 1851, and which accepted the terips of the
act of March 6, 1883, stockholders are liable, in case of Insolvency,
for a sum at least equal to amount of stock held at time the debt
was contracted. In most corporations, stockholders who have paid
for their stock are not liable for debts of the company. However,
there Is liability in some, cases for labor and services of employes.
Shares of capital stock In a private corporation are suDject to attach­
ment. Annual reports must be filed in June with the Secretary of
State.
Foreign Corporations. Agents of foreign corporations, before
entering upon the duties of their agency in this State, shall deposit
In the clerk’s office of the county, where they propose doing business,
the power of attorney, or appointment, under which they act. They
shall also file a duly authenticated order, resolution or other sufficient
authority of the board ol directors authorizing citizens or residents
of this State having a demand against such corporation arising out
of any transaction In this State with such agents to maintain an
aotlon In respect to the same in any court of this State of competent
jurisdiction, and authorizing service of process on such agent, and
that such service shall authorize Judgment and all other proceedings
against such corporation. By act of 1913, foreign corporations
must file with auditor of State certified copy of vote of directors
consenting to accept service of summons on auditor of State as sum­
mons on corporation. If foreign corporation has no agent within
State, summons may be served on Auditor of State, who shall notify
corporation. Contracts made by such agents shall not be enforced
in any court of this State until there has been a compliance with
the above provisions. Failure of a foreign corporation to comply
with these provisions will not bar—but will abate such action. Any
person who shall, directly or Indirectlyi receive or transmit money
or property to or for such corporation, or make any contract, or
transact any business for or on account of any such corporation,
shall be deemed agent. This provision does not apply, however,
to persons acting as agents for a special or temporary purpose or for
purposes not within the ordinary business, nor does it apply to
attorneys at law. Any person acting as agent of a foreign corpora­
tion, who shall neglect or refuse to comply with the foregoing-pro­
visions, is liable to a fine in any sum not less than $50. In 1879 it
was enacted that: Every foreign corporation now doing or trans­
acting, or that shall hereafter do or transact, any business In,this
State, or acquire any right, title or Interest In or lien upon real estate
In this State, that shall transfer or cause to be transferred from any
court of this State to any court of the United States, save by regular
course of appeal after trial in the State courts, any action commenced
by or against such corporation in any court of this State by or against
any citizen or resident thereof: or that shall commence In any court
of the United States In this State, on any contract made In this
State, or liability accrued therein, any suit or action against any
citizen or resident of the State of Indiana, shall thereby forfeit all
right and authority to do or transact business In- this State, or hold
real property or liens thereon, and all contracts between such cor­
porations and citizens and residents of this State made after the
passage of this act shall be rendered void, as in favor of such cor­
porations, but enforceable by such citizen at his election. The pro­
visions of the foregoing section are made conditions upon which
such corporations may be authorized to do business, or hold titles to,
or liens on, real estate In this State. By the act of 1901, foreign
corporations are required to> designate an agent in this State upon
whom legal process may be served; to have an office where proper
books of account may be kept. By act of 1907 foreign corporations
desiring admission to state must make verified statement to Secre­
tary of State showing: articles of Incorporation, business Intended
to pursue, capital stock, proportion of its business carried on in this
State, amount paid In on capital stock, and answers to other inter­
rogatories propounded by the Secretary of State,' and shall pay a
fee of $25 on first $10,000 of assets used In Indiana, $10.00 for each
additional *10,000. Annual report must be filed in January and fee
of *1 paid. Foreign corporations may not hold real estate except
such as may be necessary for proper carrying on of its legitimate
business.
Courts. Terms and Jurisdiction. The circuit court Is the only
court of original general civil jurisdiction In the State. It has full
probate powers, except In Marion County, where there Is a separate
probate court. Superior courts have been established i in many
counties. Justice’s jurisdiction. $200. Party may confess judgment
before a justice of the peace for $300. When a written obligation for
money binds more than one party the Justice of the peace may Issue
to constable of any county In the State where party resides.
Process
he supreme court has no original junsdictlon. It sits at Indianapolis.
The appellate court has final jurisdiction In many cases.
Days of Grace are no longer recognized.
Depositions. Depositions may be taken anywhere In the United
States without a commission, before any judge, justice of the peace
notary public, mayor, or recorder of a city, clerk of a court of record,
or commissioner appointed by the court to take depositions. Pcrson taking deposition must not be of Irin to either party or interested
in the action. When taken outside of the United States they shall
be taken pursuant to an order off the court, under a commission, with
such reasonable notice of the time and place of taking the same as
the court shall require, and they shall be certified and returned by
the commissioner In such manner as the court shall direct. Notice
of the taking of the deposition should be served upon the adverse
party or his attorney, specifying the cause, the court or tribunal ol
trial, the time and place of taking, and the names of the witnesses.
Reasonable time shall be allowed for the attorney so served to com­
municate with the client, and tor travel to the place of taking, exclud­
ing the day of service, of the taking and intervening Sundays. The din
ponent shall be first sworn according to law. He shall then be examined

BANKING AND COMMERCIAL L A W S— INDIANA

by the party producing him, and then by the adverse party, and then by
tne officer, if he see cause. The deposition shall be written down by the
officer, by the deponent, or by some disinterested person, in the presence
and under the direction of the officer, and after the same has been
carefully read shall be subscribed by deponent. The following facts
shall be stated ip a certificate to be annexed by the officer: 1. That
the deponent was sworn according to law. 2. By whom the depo­
sition was written, and if written by deponent or some disinterested
person, that it was written in the presence and under the direction of
the officer. 3. Whether the adverse party attended. 4. The time
and place of taking, and the officer shall sign and attest the certificate,
and seal the same, if he have a seal of office. If he have no seal, his
certiflbate shall be authenticated by the certificate and seal of the
clerk or prothonotary of any court of record of the county int which
certificate shall be authenticated by the certificate and seal 'of the
clerk or prothonotary of any court of record of the county in which
the officer exercises the duties of his office. The officer taking the
deposition shall seal the same in a sufficient envelope and himself,
post, or express, or deliver the same to the clerk, of the court in which
the action is pending, endorsing on the envelope the names of the
parties and or the court and of the witnesses whose depositions are
enclosed. Adjournments may be had from day to day after the
deposition has been begun, and for longer periods, upon written con­
sent of the parties, which written consent must be attached to the
deposition. Adjournments should be noted at the place in the
deposition when they occur. A narrative form may be used. A
witness identifying a -written instrument should attach it to his
deposition, making it a part of his answer.
Descent. The real and personal property of any Intestate shall
descend to his or her children equally; and posthumous children
inherit equally with those bora before the death of the ancestor.
Chlldreh of deceased children take the share which would have
descended to the father or mother* and grandchildren, and more
remote descendants, and other relatives, lineal and collateral, inherit
by the same rule, excepting that if the heirs are all grandchildren
they inherit equally. Where there are no heirs as aforesaid, onebalf of the estate goes to tne father ana mother as joint tenants, or
to the survivor, and the other half to the brothers and sisters, and
to the descendants of such as are dead, as tenants in common. If
there be neither father nor mother, the brothers and sisters, and
the other descendants, take the estate as tenants in common; or,
per contra, the father and mother as joint tenants of the survivor.
Kindred of the half-blood Inherit equally with those of the wholeblood in property purchased by the ancestor; otherwise, as to property
aoqulred by gift, devise, or descent. Illegitimate children Inherit
from the mother same as if they were legitimate, and vice versa.
Tenancy bv the curtesy and dower are abolished, and widows take
one-third of the real estate in fee simple, unless tne property is worth
over $10,000, in which case, as against creditors, she takes one-fourth
only: and where the real estate is worth over $20.000, one-fifth only
as against creditors, but as against other heirs she takes one-third
in fee simple, regardless of value, except where there is but one
child, in which case each Inherits one-half. A second or subsequent
wife, however, takes only a life estate in her husband’s lands, if there
be a child or children by a previous marriage, and none by such
widow. Other special provisions of the statute are too extensive to
set out. The estate of a person dying Intestate without kindred
capable of Inheriting will escheat to the State for the support of the
common schools.
Dower. (See Married Women.)
Executions may issue at any time within ten years after Juagment and are returnable in 180 days. From a court of record may
issue to any county In the State. Are a Hen on personal property
within the county from the time they are placed In hands of officer.
The liens upon personal property attach In the order in which the
officer receives them. When levy is upon real estate the dates ol
the Judgment control the right to participate in the proceeds, and
they must be applied according to their priority. Personal property
taken in execution may be left with execution defendant 'by the
giving to the officer of a delivery bond with sufficient surety; debtor
may. by giving sufficient freehold sureties, have a ,stay of execution
on any sum exceeding $100, for six months. Where the sum is less
than $100, the stay is not so long, varying with amount of judgment.
Lands sold under execution may be redeemed within one year by
the owner, mortgagee or person having a lien thereon, the owner
retaining possession during the redemption yeai and being liable for
reasonable rents and profits in case of failure to redeem.
Exemptions. Property up to $600 is exempt in suits on contract
where debtor is a resident householder. Resident householder is
entitled to exemption as well when in transit with his family and
property as when permanently settled. The debtor must file a sched­
ule of all of his property, and select the property claimed, which is
then appraised. Contract waiving exemption is void. Pension
money in transit to pensioner is exempt, but when received by him
and invested in other property is no more so than any other property
One month’s wages also exempt if the debtor is still employed.
Fraud. Assignments, In writing or otherwise, of any property
made or suffered with Intent to hinder, or defraud are void as to the
persons defrauded. The question of fraudulent intent Is a question
of fact. '
Frauds—Statute of. The following contracts, if enforcible in court,
must be in writing and signed by the party to be charged: 1. To
oharge an executor or administrator, upon any special promise, to
answer damages out of his own estate. 2. To charge any person,
upon any special promise, to answer for the debt, default, or mis­
carriage of another. 3. To charge any person, upon any agreement
or promise, made in consideration of marriage. 4. Upon any con­
tract for the sale of land (except loan not exceeding the term of three
years). 5. Upon any agreement not to be performed within one
year from the making thereof. 6. Sale of goods exceeding $50 in
value, unless part payment or part delivery be made. 7. Upon
any representation made concerning the character, conduct, credit,
ability, trade or dealings of any other person.
Garnishment. (See Attachment.) Garnishment is a remedy in
aid of attachment. Upon any personal action arising out of contract
any person may be summoned as a garnishee defendant upon an
affidavit that official has good reason to believe that any person
named has property of the defendant in his possession or under his
control, or that he Is indebted to the defendant, or has control or
agency of money, property, credits, or effects; that he has any share
or interest in the stock of any association or corporation, and all
mohey or property in the hands of the garnishee defendant is bound
1from the time the summons is served upon him. Resident house­
holders are entitled to an exemption of $600 in garnishment pro­
ceedings, as In all other cases. Wages of non-residents, to the amount
of $25, and of resident householders to the extent of one month 8
wages, are exempt from execution so long as the defendant remains
in the employ of the garnishee. Indiana claims can not legally be
sent or taken out of the State for prosecution, and suits instituted
elsewhere In violation of this prohibition may be enjoined and the
offender be criminally prosecuted.
Holidays. (See Legal Holidays.)
Husband and Wife. (See Married Women.)
Inheritance Tax. (See Taxes.)

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1733

Interest. The legal rate Is 6 per cent, but interest may be taken
in advance. No agreement to pay a higher rate is valid unless the
same be in writing, and in such case it is not lawful to contract for
more than 8 per cent. When a greater rate is contracted for, the
oontract is void as to all interest in excess of 6 per cent, is usurious
and illegal, and the excess may be recouped by the debtor whenever
It has been reserved or paid before the bringing of the suit. Interest
on judgments runs from the date of the verdict or finding, at the
rate specified in the original contract, not exceeding 6 per cent, and
if no contract has been made 6 per cent is allowed.
Judgments of courts of record are a Hen upon aU real estate of
defendant within the county for ten years. Judgment may be
obtained at the first term of the court, after process has been served
on debtor ten days prior to the first day thereof. Judgment in justice
court!becomes a lien on real estate of judgment defendant from time
of filing a transcript in office of the clerk of circuit court. A certified
copy of any Judgment rendered by the circuit court of the United
States for district of Indiana may be filed with the county clerk.
Legal Holidays as to commercial paper are as foUows: ■The first
day of the week, commonly called Sunday; the 1st day of January;
the 4th day of July; the 25th day of December; any day appointed
by the president or governor for public fasting or thanksgiving; 12th
day of February; 22d day of February; 30th day of May; first Mon­
day of September; 12th day of October; and any election day; when
any holiday (other than Sunday) comes on Sunday the Monday next
succeeding shall be the legal holiday; Saturday afternoon is a legal
half-holiday in the city of Indianapolis and may be made so by act
of bankers in other cities of over 35,000 population.
Liens. Liens are granted by statute to attorneys; to persons
holding claims against watercraft on account of supplies furnished or
work done; also for demands for damages arising out of freight con­
tracts, or for willfulness or negligence of the master, owner, or agent,
or out of any contract relating to transportation, and for injuries to
persons o t property; also to employes of any corporation as against
any of its corporate propei^y or earnings for labor done: also to
keepers of livery stables and all persons engaged in feeding stock, for
the feed and care bestowed upon the same, also to blacksmiths; also to
contractors, sub-contractors, mechanics, journeymen, laborers, and all
persons performing labor or furnishing material or machinery for
erecting, laboring, repairing or removing any house, mill, manufactory
or other building, bridge, reservoir,* system of water-works, or other
structure, known as a mechanic’s lien; also to bailees and tradesmen
for their valid and reasonable charges in the construction, repair,
or aiteration of any article of value; also to the bailee or keeper, of
personal property for any feed or care bestowed by him upon such
property; special lien for storage or repair of motor vehicles; also to
forwarding and commission merchants on goods which may have
remained in store for one year or more; also to all persons, firms
and corporations engaged in the business of storing, warehousing and
forwarding, goods remaining in possession of such person, firm or
corporation for more than six months may be sold at public Auction
to pay amount of lien. Persons storing, furnishing suppHes or repair­
ing a motor vehicle or garage owners have Hen on motor vehicle
which can be foreclosed within one year from failure of owner to pay
charges. Judgments rendered in any county in the State are a hen
upon-the real estate situated in such county for a period of ten years
f r o m the rendition thereof, and judgments rendered in the federal
courts are a lien upon any real estate in the State for the same period.
Provision is made by statute, however, for the filing in the county
where the real estate is situated of a transcript of any judgment
rendered in the United States courts. The office of-the clerk of the
circuit court in each county contains a public record known as the lis
pendens record, in which notice of the filing of complaints to enforce
Hens are required to be recorded, and also in cases where real estate is
seized by attachment or execution. Unless so recorded the bringing
suits does not operate as a constructive notice.
Limitations to Suits. Actions for injury to person and character,
and for statutory penalty or forfeiture, two years; against public
officers relating to their official duties, and on public Improvement
assessments, five years; open accounts and contracts not in writing,
for use, rents and profits of real estate, injuries to and detention of
property, recovery of personal property and relief against frauds, six
years; upon promissory notes, bills of exchange and other written
contracts for payment of money, ten years; actions not limited by
statute, fifteen years; other written contracts, judgments of courts of
record and real actions, twenty years. Revivor: part payment or
new promise in writing. Except in favor of sureties# tne statute ol
limitation does not run against the State.
Married Women control their real and personal property. The
husband is liable for the wife’s debts contracted before marriage to
the extent of the personal property he may receive from her, and no
further, and her lands are liable for such indebtedness. A married
woman may demise her separate estate; may sell and transfer her separ­
ate personal property: carry on any business, labor, or service, and
receive the earnings accruing therefrom; enter into any contract In
regard to her separate personal estate business, labor, or service, and
her separate estate, real and personal, be liable therefor, the same as a
femme sole; and her husband is not liable for such debts, nor for
indebtedness created by the wife for improvement of her separate
real estate. She can make leases of real estate for terms of three
years or less, and execute mortgages to secure purchase money, with­
out husband Joining. She is bound by covenants of title in convey­
ances of her separate real estate. Her deed conveying her real estate,
her husband not joining, is absolutely void. She may sue as a femme
sole for any daimage to her person or character. She is bound in
like manner as principal on her official bond. DisabiUty as to surety­
ship has been abolished therefore in making loans to married women
it is not necessary for her to make an affidavit that the money used
is for her own benefit. She is entitled to hold as exempt from execu­
tion in any suit on contract property to the amount of $600. A widow
takes one-third of her deceased husband’s real estate in fee, and free
from all demands of creditors, where the estate does not exceed $10,000;
one-fourth, if under $20,000, and one-fifth, if above that amount.
She also takes a child’s interest in the personality where the number
of children does not exceed two, and where there are more than two,
her interest shall not be less than one-third of the whole of personalty
after payment of debts, and in all cases takes $500 without accounting,
and may occupy the dwelling of forty acres of her husband's land for
a year rent free. But the one-third of her real estate which the
widow takes in fee, can not, upon her marrying again, be effectively
conveyed or mortgaged by her, if there be a child or children, or their
descendants, alive by the previous marriage. Real estate which
husband and wife hold by title made to them as husband and wife,
is held as an estate by entirety; it can not be taken for the debt of
either* is not subject to the Hen of a judgment against either, except
in case of the death of either or upon divorce granted, when the estate
is destroyed arid becomes subject to levy and sale; and a mortgage
thereof by them both for a debt of the husband has no legal vaUdity.
Mortgages. (See Conveyances.),
„„ „
. .
Negotiable Instruments are defined by Chapter 63 of the Acts
of 1913. Section 1 provides that an instrument to be negotiable must
conform to the following requirements:
1 . It must be in writing and signed by the maker or drawer.
2. Must contain an unconditional promise or order to pay a cer­
tain sum in money.

BANKING AND COMMERCIAL L A W S— IOW A

1734

3. Must be payable on demand, or at a fixed or determinable
future time.
4. Must be payable to order or to bearer.
5. Where the instrument is addressed to a drawee, he must be
named or otherwise indicated therein with reasonable certainty.
its negotiability is not affected by a provision which authorizes
the sale of collateral securities in case the instrument is not paid at
maturity, or authorizes a confession of judgment if the instrument
be not paid at maturity, or waives the benefit of any law intended for
the advantage of the obligor, or gives the holder an election to require,
something to be done in lieu of the payment of money.
To charge indorser notice of non-payment must be given to him at
once, unless waived by him.
Every negotiable Instrument is payable at the time fixed therein
Without grace. Where day of maturity falls on Sunday or a holiday,
instrument is payable on next succeeding business day. Instruments
payable on Saturday are to be presented for payment on next succeed­
ing business day, except that demand instruments may be presented
for payment before noon Saturday when that entire day is not a holiday.
In any case not provided for in the act the law merchant governs,
and all laws in conflict are repealed.
Act does hot apply to negotiable instruments made and delivered
before April, 1913.
Pdwer of Attorney must be executed and acknowledged, and (it
for the conveyance of real estate, or to affect real estate) recorded, in
the same manner that deeds are made.'
Probate Law. (See Administration of Bstates.)
Protest. The statutory damages on such protest are 5 per cent
on the principal of a bill of exchange, if drawn or negotiated within
this State, upon any person, at any place out of this State, but within
the United States, and 10 per cent if upon any person, at any place
without the United States.
Replevin. When any personal property Is wrongfully taken or
unlawfully detained, or. If taken on execution or attachment, is
claimed by a third party, the owner or claimant may bring an action
for possession thereof. He may claim immediate delivery upon
affidavit therefor, whereupon the sheriff takes possession of the
property, and if a delivery bond is given on behalf of the defendant
within twenty-four hours, the property Is returned to him, otherwise
the plaintiff may give bond and take the property; failing to do so
it is returned to the defendant. The plaintiff has twenty-four hours
in which to file bond. Justices of the peace have jurisdiction in
replevin suits Involving property worth $200 or less. Procedure is
same before justice of the peace, except that the plaintiff must file
bond in all such cases. Replevin may also be had without bond, by
allowing defendant to retain possession of property pending suit.
Suits. (See Actions.)
Taxes. State, county, township, municipal, school, and road taxes
attach as a Hen on real estate on March 1st of each year, and penalties
attach on first Monday in May in the next year. One-half of all
taxes may be paid without penalty, if. paid before fljst Monday of
May;, other half, if paid before first Monday of November provided
that all war taxes Charged shall be included in the first installment.
Sales of real estate for taxes are held on the second Monday of Feb­
ruary, and all lands on which taxes are delinquent for two years are
offered. Owner has two years in which to redeem, by paying the
amount set forth in the certificate of purchase, with all subsequent
texas paid, and 10to 25 per cent upon the whole sum, with legal interest
from the date of purchase or payment. Lands are sold for one year’s
delinquency, but the following year’s tax (not yet delinquent) is
embraced in the amount of the sale. An inheritance tax, graduated
in amount According to the amount involved, and the relation of the
beneficiaries to the decedent, is levied upon all intangible or tangible
proper of resident decedent, and upon tangible proper of non-resident
decedent. Tax applies as well to gifts made in anticipation of death,
to take effect at that time. Inheritance taxes do not apply to the
transfer of the estate of any .decedent leaving an estate of less than
$25,000, dying or who has died while in the military or naval forces
of the United States during the World War or within one year after
the termination of the war. ^.(Revision of the tax laws made by 1919
Legislature and for further information reference should be made to
the Acts 1919.)
Wills. Nuncupative wills, where property of more than the value
of $100 Is bequeathed, are not valid, except as to the personal property
and wages of soldiers and sailors in actual service. A nuncupative
will must be reduced to writing within fifteen days after it shall have
beeh declared and proved by two competent witnesses who shall have
heard the testator request some of those present to bear witness
thereto. No will In writing is valid unless signed in the presence of
two or more witnesses by the testator, di by some one for him in his
presence, with his consent, and attested and subscribed by two or
more witnesses at his request, s^nd in his presence and that of each
other. Will made before marriage becomes void on marriage.

SYNOPSIS OF

THE LAWS OF IOWA
R E L A T IN G TO

BANKING AND COMMERCIAL USAGES

Revised by B. J. C a v a n a g h , Attorney at Law, Des Moines.
/
(See Card in Attorneys’ List.)
Accounts and Claims of. Statements of account, ror use in
court or for proof in the settlement of estates of deceased and in
guardianship matters, must be itemized and verified. A statement
of "balance," or "goods,” or “merchandise” is not sufficient.
Acknowledgments. All Instruments affecting real estate, includ­
ing mortgages, deeds of trust, powers of attorney relating thereto,
and leases for more than one year, must be acknowledged or the
execution thereof proved, and the instruments must be recorded In
the proper office, so as to affect third parties. The same is also
true as to bills of sale, absolute or conditional, and chattel mortgages
relating to personal property. Articles of incorporation must also be
acknowledged and recorded. The forms of acknowledgment and
the officeta, within and without the State, before whom such acknowl­
edgments may be made are prescribed by statute.
Actions. The common law forms of pleading are not used,
although the common law forms the basis of procedure. Pleading,
praotloe, and procedure are statutory, and accord, in the main,
with what is known as the reformed, or code procedure.
Administration of Estates. Where an executor is not appointed
by will, adm'nstration shall be granted: 1. To the spouse of the

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deceased. 2. To the next of kin. 3. To creditors. 4. To any other
person whom the court may select. Claims against the estate of &
deceased person are payable in the following order: 1. Debts entitled
to a preference under the laws of the United States. 2. Public
rates and taxes. 3. Claims filed within six months after the first
publication of the notice given by the exeeutors or administrators
of their appointment. 4. All other debts. 5. Legacies and dis­
tributive shares. All claims of the fourth of the above classes not
filed and allowed, or if filed and notice thereof not served within
twelve months from the giving of the notice of appointment are
barred, except as to actions against decedent pending in the district
or supreme court at the time of his death, or unless peculiar circum­
stances entitle the claimant to equitable relief.
Affidavits. Affidavits may be taken before any person authorized
to administer oaths in the state where taken. If taken without the
State of Iowa, the official character of the officer administering the
oath should be evidenced In the same way as the official character of
an officer taking depositions. (See Depositions.) Affidavits may be
taken within the State for any lawful purpose, of one unwilling to
voluntarily make an affidavit,by filing's petition with an officer author­
ized to administer oaths, who may cause the person to come before
him and make affidavit. This proceeding is statutory. and must co form strictly to the statutes of Iowa.
Affidavits for proving accounts and form: State of__ _____ .
County of................... ss, I .................... being first duly sworn, on oath
depose and say that I am (a member of the firm of................... and
that said firm is) the owner of the account hereto attached, marked
exhibit A, and made a part hereof, that the same is correct in all
particulars and that the articles named therein were sold and delivered
to said................... at the prices and times therein named and agreed
upon, and that said articles were reasonably of the value charged,
and that the said account is due and unpaid. That there is no legal
set off or credit to the same or any part thereof except as Herein stated.
Subscribed and sworn to before me. by the said................... this. . . .
day, etc.
Allens. Non-resident aliens or corporations Incorporated under
the laws of any foreign country or corporations organized in this
country, one-half of the stock of which is owned or controlled by non­
resident aliens are prohibited from acquiring title to or holding any
real estate In Iowa, but the non-resident alien widow, heirs, or devisees
of an alien or naturalized citizen may hold the same for twenty years,
and if not sold within that time, escheats to the State. Allens may
acquire property of any kind within a city or town or lands not,exceed­
ing 320 acres or stock in any corporation for pecuniary profit and may
alienate or devise the same, but this law does not affect personal
property. A lien holder may acquire title to the property embraced
In such lien but real estate so acquired must be sold within ten yean
after title Is perfected in an alien, otherwise it will escheat to the
State.
Arrest. No person can be imprisoned for debt on either mesne
or final process, unless In case of fraud. Debtors, however,,may be
ordered to appear before a court of record wherein a Judgment has
been rendered, and if the debtor is about to leave the State, or conceal
himself, he may be arrested and compelled to give bond to appear
before the court for examination, and in the meantime, not dispose
of his property. (See Supplementary Proceedings.)
Assignments and Insolvency. General assignments not valid
unless for benefit of all creditors, when assent of creditors is presumed.
The debtor must annex to the instrument of assignment a sworn
Inventory and list of creditors; and such Instrument must be acknowl­
edged and all of the papers recorded like a deed of real estate. The
assignment vests in the assignee title to all property of the debtor.
Assignee must give bonds, prepare a verified Inventory and valuation,
and notify creditors by mail to file claims within three months.
All claims not filed within three months after notice published or
within such extended time as the court grants, not exceeding nine
months, including claims not yet due, can not be paid until all claims
filed within said time are paid. An assignment does not discharge
the debtor from his debts and liabilities, but only entitles creditor*
to share equally 'in his estate. All claims filed must be itemized
and sworn to.
Attachments. An attachment, auxiliary to the main case, may be
sued out upon any one of twelve (12) statutory grounds for a debt,
which is past due; or upon any one of four (4) statutory grounds
for a debt on contract, not yet due. A bond must be filed for three
times the amount claimed. If the action is founded upon contract,
otherwise, in a sum to be fixed by the court, if the action is not founded
upon contract. Garnishments may be effected under the writ of
attachment. Special attachments are permitted, to attach speclfle
personal property, in a few prescribed cases.
Banks. The banks organized under the laws of Iowa are respect­
ively designated as savings banks and state banks.
Savings banks must have a minimum capital of from $10,000 to
$50,000, according to the population of the city or town In which
each Is located. Each share must be of the par value of $100. The
statutory provisions must be consulted concerning the manner of
organization, the issuance of and payment for capital stock, the
board of directors, quorum, voting by proxy, limitation of deposits,
and the investment thereof, the loaning of funds, the cash reserve
required, and the dissolution of such banks
State banks must have a minimum capital of from $25,000 to
$50,000, according to the population of the city or town in which
each is located. Each share must be of the par value of $100. The
statutory provisions must be consulted for the particulars above
referred to on the subject of savings banks.
Banks and loan and trust companies may obtain power to act as
executor, administrator, guardian, receiver, assignee, trustee, or in
other fiduciary capacity. National. Banks may exercise the same
powers when authorized by Act of Congress. Any Iowa State or
Savings Bank or Trust Company may become a member of the
Federal Reserve bank system.
Bills of Exchange. The negotiable Instrument law recommended
by the interstate commission on uniformity of law has been enacted
and Is now law in Iowa. (For Grace, See Days of Grace.) A provisipn
for the payment of exchange, in addition to the amount of principal
and interest, does not render a bill of exchange non-negotlable.
Bills of Lading. The uniform Bill of Lading law has been adopted
In Iowa.
Chattel Mortgages. No sale or mortgage of personal property,
where the vendor or mortgagor retains actual possession, is valid
against existing creditors or subsequent purchasers without notice,
unless a written instrument conveying same, be executed acknowledged
like conveyances of real estate, and filed for record with the recorder
of deeds of the county where the holder of the property resides.
No encumbrance of personal property which may be exempt from
execution by th^d head of a family if a resident of the State shall be
of any validity unless the same be by written instrument and unless
the husband and wife concur in and sign the same joint instrument.
Collateral Securities. There are special statutory provisions
concerning the pledging of corporate stock, as security; and also
upon the subject of sales of collaterals by action in court and judicial
sale. Otherwise the subject Is governed by the common law.

BANKING AND COMMERCIAL LA W S— IOWA

Conditional Sales. NO sale, contract, or lease wherein the
transfer of title or ownership of personal property is made to depend
upon any condition, shall be valid against any creditor or purchaser
of the vendee or lessee in actual possession, obtained in pursuance
thereof, without notice, unless tne same be in writing, executed
by the vendor or lessor, acknowledged and recorded the same as
chattel mortgages.
Conveyances. No particular form is necessary for conveyances
or mortgages. The name of the parties, the description of the property,
the consideration, the date, signature, and acknowledgment, is all
that is necessary; as between the parties they are valid without
being recorded. The wife must join with her husband in conveyances,
end a conveyance of the homestead is of no validity unless husband
and wife ooncur in and sign the same joint instrument. A corporation
cxeoutes conveyances under its corporate seal, except where the
corporation has not adopted a seal. Such conveyances must be signed
in the name of the corporation by the officers authorized so to do,
by the Articles of Incorporation, or By-Laws, or by resolution duly
entered of record in the minutes of the corporation, and duly acknowl­
edged by such officers, as the act of the corporation.
Corporations. Private corporations, sole or aggregate, may be
formed for any lawful purpose. But there are special statutory
provisions which must be complied with for the organization and
government of Insurance, banking, loan and trust, building and loan,
and railway corporations. In all cases, the articles of Incorporation
must be acknowledged and recorded, in the manner provided by
latf. and approved by the secretary of state. With a few exceptions,
an incorporation fee of $25, plus $10 for each thousand dollars of
capital In excess of $10,000 must be paid, upon the organization
or renewal of a private corporation. The general term of the life
of a private corporation is twenty years, renewable for a like term.
Railroads, savings banks, and a few others may last fifty years,
also renewable.
Foreign Corporations are required to pay a similar incorporation
fee before doing business In the State, based, however, upon the
property of the corporation, withift the State of Iowa. Foreign public
service corporations, other than steam railroads, doing business in
Iowa, and holding companies controlling the stock of such companies,
are made subject to many of the laws of Iowa affecting similar domestic
corporations.
Courts. Terms and Jurisdiction. The district court has jurisdic­
tion of all actions, civil and equitable, and has criminal and probate
Jurisdiction. Superior courts may be established by the vote of
the people in any city of 5,000 inhabitants. It has jurisdiction to
try all violations of city ordinances, and the same criminal jurisdiction
as justice of the peace courts. It has jurisdiction to try and determine
civil and criminal appeals and civil writs of error from justices of
the peace, situated in the township where the court is located. Has
the same jurisdiction as the district court to try all suits In law and
equity, except grant divoroes, alimony, and separate maintenance,
and it has no probate jurisdiction. Transcripts from superior and
justice's courts must be filed in district court to create a lien on real
estate, and are then enforced as judgments of the district court;
justice's Jurisdiction, $100, or, by written consent of parties, $300.
The supreme court has only appellate jurisdiction, and holds sessions
at Des Moines, January to May, from May to September (less vaca­
tion), and from September to December.
Days of Grace. Every negotiable Instrument Is payable at the
time fixed therein without grace.
Depositions may be taken within the State, on,notice, and within
or without the State, on commission, issued after notice by the clerk
of the proper court. When to be taken on commission, defendant
may elect. In writing, duly served, to cross examine orally; thereupon
plaintiff may also elect in writing to examine orally. Exceptions
must be filed within three (3) days, after the filing of the deposition,
but objections may neverless be made on the trial for competency,
materiality, and relevancy.
Descent and Distribution of Property. Subject to rights of
dower and other charges thereon, and burdens imposed during the
lifetime of the decedent, and in the absence of a valid will, the estate
of one deceased shall descend in equal shares to his children. The
heirs of any deceased child shall Inherit in same manner as though
such child had outlived his parents. If the intestate leave no Issue
the whole of the estate to the extent of $7,500 after payment of debt»
and administration expense, and one half of the estate in excess of
said $7,500 goes to the surviving spouse and the other- half to the
parents. If no surviving spouse, the whole thereof shall go to his
parents or the survivor of them; and so on through ascending an­
cestors and their issue, if both parents be dead. Personal property
not necessary to pay debts is distributed to the same persons, and in
•he same proportions'as though it were real estate.
Dower. Dower in Ipwa is abolished, but the surviving spouse
is entitled to one-third in value of all the legal and equitable estate?
in real property possessed by the deceased spouse at any time during
the marriage, which have not been sold on execution or any other
judicial sale, and to which such survivor has made no relinquishment
of right. A spouse, heir or devisee feloniously taking or procuring tpe
taking of the life of the other spouse, or decedent, cannot have dower
or inherit power or take under the will of the decedent. (See Limi­
tations.)
Employers Liability. Employers liability and workmen’s com­
pensation is governed by statute.
Executions may be stayed, according to their amount, for ninety
days or six months, with a few specified exceptions, and the issuance of
execution may be prevented by filing an appeal bond. Otherwise
execution may issue immediately after rendition of judgment. The
judgment is a lien on realty within the county where rendered, or by
transcript, it may be made a lien in any other county. Executions
become liens on personal property only from the time of the levy and
seizure. Real ¿state is sold on execution subject to redemption within
one year, except in appealed cases, or where the interest is a leasehold
of two years or less. Creditors may redeem from the sale after six
months and before nine months from date of sale. Personal property
Is sold without redemption.
Exemptions. The head of a family is entitled to a homestead of
forty acres or less of farm land, or half an acre or less in city or town.
Pension money, its proceeds, wages of the Head of a family for 90
days past, and numerous items of personal property are exempt by
statute. There are statutory^,provisions concerning the creation of
liens on exempt real or personal property, and the assignment of
exempt wages. As to alimony there is no exemption unless the
party in whose favor rendered remarries. '
Fraud. In actions for fraud, heretofore solely cognizable in a court
of /chancery, the cause of action shall not be deemed to have accrued
until the fraud complained of shall have been discovered by the party
aggrieved by the exercise of due diligence. In actions brought by a
judgment creditor to set aside a fraudulent conveyance of property
v from one spouse to the other and to subject said property to execution,
either husband or wife may be compelled to testify against the other.
Gross fraud is punishable by fine or Imprisonment.
Garnishments. (See Attachments.)
Husband and Wife. (See Married Women.)

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1735

Holidays. The first day of the week, January 1, February 12,
February 22, May 30, July 4, the first Monday in September, Decem­
ber 25,-,the day of general election and any day appointed or recom­
mended by the governor of this State or the President of the United
States as a day of fasting or thanksgiving are holidays, for all purposes
relating to the presentation for payment or acceptance, and for the pro­
testing and giving notice of the dishonor Of bills of exchange, drafts,
bank checks, orders and promissory notes.
Interest. By written contract, maximum legal rate, 8 percent.
Judgments draw 0 per cent, or such rate as is fixed by the contract
on which the judgment or decree is rendered, not exceeding 8 per
cent per annum.
Open accounts draw 0 per cent after six
months from date of last item; money loaned, money due, money
due on settlement of accounts, bear interest at 6 per cent per annum.
Contract for more than 8 per cent forfeits all Interest and costs.
Judgments in the district and superior courts may be obtained
at first term after suit commenced, if undefended; an equitable
action, except one for foreclosure of mortgage, or mechanic’s lien
or for divorce; is triable at the second term after the case is at issue.
Judgments of the district court are liens on real estate owned by
the debtor at the time of rendition; If the lands lie in any other
oounty. from the time of filing therein an attested oopy of the judo
ment. Lien also covers all lands which defendant may acquire
within ten years from date of judgment, or upon which a levy is
made after ten oy before twenty years from the date of the judgment,
but this lien dates only from the time of the levy. Judgments of
superior courts and justice of peace courts become liens on real estate
by filing transorlpt in district court within county where obtained,
and beoome liens in other counties in the same manner as if rendered
in the district court.
Liens. These are mainly created by statute and are enforceable
in equity. In a few cases, and under peculiar circumstances, equitable
liens on real estate are established and enforced in equity.
Limitations. Actions, according to their subject matter, have
various periods of limitation, fixed by statute,! extending from three
months to ten years after the oause of action accrued. Actions upon
judgments rendered in courts of record have a limitation of twenty
years. Dower rights and mortgages existing or created prior to
January 1, 1885, are barred, unless now nroperly preserved in the
recorder's office. Imperfect deeds by mEecutors, administrators,
trustees, or guardians made prior1to January 1, 1885, are confirmed
in favor of grantees In possession.
Married Women may own in their own right, real and personal
property, and may manage, sell, convey, and 'devise the same by
will. Neither husband nor wife is liable for the debts or liabilities
of the other Incurred before or after marriage, nor are the wages,
earnings, or property of either, liable for the separate debts of the
other. Contracts may be made by a wife, liabilities incurred, and
enforced by or against her, as if unmarried. Both husband and
wife are liable for the expenses of the family, and the education
of the children.
Moratorium. Soldiers and sailors and other persons in the mili­
tary or naval service of the government or who may hereafter enter
such service during the present war are exempted while in such service
and for a period of six months after the termination of the war or of
said service or death, from payment1of any bill of exchange'or of any
negotiable instrument, or of any other payment in pursuance of any
contract or from any writ of attachment or execution. Any such per­
son who is or hereafter may be a party to litigation may on request
have same continued until the termination of such service or death.
The statute of limitations against such persons is tolled for the same
period.
Mortgages must be subscribed and acknowledged by the parties
creating the lien and recorded same as deeds are foreclosed by equitable
action. The wife should join in the Instrument, except mortgages
for purchase money, and mortgages upon non-exempt personal
property. The mortgagor has one vyear in which to redeem real
estate alter execution sale, except cs stated under the sub-title “ Execu­
tions.” When a mortgage is paid off, satisfaction thereof must be
made on margin of the record, or by satisfaction piece, acknowledged
and recorded. If no satisfaction is entered within thirty days after
request in writing, the mortgagee forfeits $'25. (See Chattel Mortgages.)
•See Limitations.)
/
Non-residents. Action may be brought against non-residents to
enforce liens on any property within the state; to enforce arty debt
against a non-resident where action Is aided» by attachment on prop­
erty found within the State. Personal judgment cannot in any case
be rendered against defendants, not appearing, unless personal
service is had on such defendants within the State. Non-residents
may not sell at auction unless reciprocal legislation exists in the state
of their residence.
Notaries. These officers are appointed and commissioned by the
governor, upon filing a bond and paying the fee required by law.
They have power to administer oaths, take depositions, and the
usual power of such officers concerning presentation, demand, protest,
and notice of protest of negotiable commercial paper.
Partnerships, Limited and Special. Limited and special part­
nerships are permitted, but not favored. The statutes on this subject
must be strictly complied with. A certificate showing prescribed
details and particulars of the partnership must be signed, acknowl­
edged, and filed In the office of the clerk of the distriot court of the
county in which the principal place of business is situated, to be
there recorded and similarly recorded in each county where such
partnership has a place of business. There must be an affidavit
that the amount stated in the certificate has been actually contributed
by each separate partner. Publication must be made of the certificate
and affidavit for six weeks in two newspapers in each senatorial
district in which the partnership is to transact business.
Powers of Attorney. A power of attorney to convey, or in any
manner affect real estate, must be acknowledged and recorded. A
revocation of such power must be acknowledged and recorded in the
same office wherein the original power of attorney is recorded.
Receivers. In distributing property in the hands of a receiver
there shall be paid in the following order: 1. Taxes or debts due
the United States; 2. Taxes or debts due the State. 3. Debts owing
to employes for labor, not exceeding $100.
Records. All instruments conveying or oreating liens upon the
real or personal property, all conditional sales and articles of adoption
of a minor child, must, after having been signed and acknowledged,
be recorded In the office of the recorder of deeds-in the proper county
or oounties where the property conveyed is situated, or the minor
child is. Unless so recorded, such instruments are invalid as to a
bona fide purchaser or encumbrancer or as articles of adoption.
Redemption. Redemption from a sheriff’s sale of real estate,
whether sold under a general or special execution, may be made
by a creditor who has a lien on the property sold, at time after six
months from date of sale by paying to the clerk of the court the
amount provided by statute, being, generally, the amount of the
purchaser’s bid, with interest at the same rate that the judgment
bears. Within the time named creditors may redeem from eaeh
other. After nine months, and within one year from the date of sale
the owner of the real estate sold has the exclusive right to redeem from

1736

BANKING AND COMMERCIAL L A W S— KANSAS

inch sale, and, in bo doing. the debtor mint pay off the claim« of
Judgment creditors, who have made redemptions as hereinabove
stated, in addition to the amount originally bid.
Replevin. In actions for the recovery of personal property, the
petition must be verified; and if plaintiff desires immediate delivery
of the property, he shall execute a bond for double the value of the
property sought to be recovered. The defendtfat may stay all pro­
ceedings and retain the property by executing a bond to the plaintiff
with sureties to be approved by the clerk.
Sales. This State has a uniform sales law.
Sales of Goods In Bulk. Sales, including exchange and assign­
ments, of the whole or major part of a stock of goods, or fixtures, or
stock of goods and fixtures. In bulk, is presumptively fraudulent,
unless seven days’ notice in writing is previously sent by registered
mail to each creditor of the seller, describing in general terms, the
property to be sold, assigned or delivered, and the parties thereto.
Both parties must, seven days prior to the sale or transfer make a
detailed inventory; showing quantity and cost pf price to seller and
the latter must furnish under oath a list of his creditors and the amount
due each.
Security for Costs. Non-resident plaintiffs may, on motion of
defendant, be required to file a bond with sureties to be approved for
security of costs either in justice court or district court.
Statute of Frauds. No evidence except in writing and signed
by the party to be charged or by his authorized agent, is competent
relative to the following contracts: 1. In relation to sale of personal
property, when no part of the property is delivered and no part of
the price is paid. 2. In consideration of marriage. 3. Wherein
one promises to answer for the debt, default or miscarriage of another,
Including promises by executors to pay the debt of decedent from their
own estate. 4. For the creation or transfer of any interest in lands,
except leases for a term not exceeding ohe year. 5. Those not to
be performed within one year from the making thereof.
Stocks and Bonds. The sale of stocks and bonds is governed by
what is termed a “Blue Sky Law.”
Supplementary Proceedings. When an execution has been
returned unsatisfied, plaintiff may have an order for the appearance
and examination of the judgment debtor; or such order may be
obtained after execution has issued upon proof by plaintiff’s affidavit
or other proof that debtqf has property which he unjustly refuses to
apply to the satisfaction of the judgment. If any property be found
by such examination it may be levied upon; if in the hands of others
the court may require its delivery to satisfy the judgment, and
appoint a receiver of debtors property, forbid the sale thereof and
order Equitable interests in realty to be sold.
Taxes. Real estate is assessed every odd year; personal property
Is assessed every year. All property is assessed at its actual value,
and taxed at twenty-five (25) per cent of the assessed value.' Ali
road taxes and one-half of the other taxes levied are payable without
Interest or penalty before April 1st; the balance is payable
before October 1st. Delinquent taxes bear Interest at the rate of
1 per cent per month. Taxes upon realty are liens thereon; taxes
upon personalty are Hens upon tne owner's realty, except the home­
stead, and may be continued as such liens, if the statute is complied
with, from year to year. Taxes on personalty are liens on the personal
property of non-residents, stocks of goods sold in bulk, and buildings
or additions made after the assessment for taxation in the odd years.
Personal property may be levied on and sold for taxes by distress
and sale. Real estate is sold for unpaid taxes, after notice by publica­
tion, on the first Monday in December of each year, subject to redemp­
tion in three years from the date of sale.
Trust Companies. Domestic trust companies are organized under
and governed by the general corporation laws of the State. Foreign
trust companies doing business in this State are governed and con­
trolled by the general statutes concerning and relating to foreign
corporations doing business in Iowa. (See Corporations.)
Trust Deeds. They must be executed and foreclosed, and consid­
ered as mortgages. That is, the power of sale on notice Is abolished,
and they must be foreclosed by equitable action.
Warehouse Receipts. Any person, firm, or corporation desiring
to issue elevator or warehouse certificates (or receipts) must file a
written declaration with the recorder of deeds in the county where
his or its elevator or warehouse is situated, setting forth the particu­
lars required by statutes which declaration must be recorded by the
recorder of deeds. Thereafter he or it may issue certificates for
commodities actually in such elevator or warehouse, but the certifi­
cates must conform to the - statutory provisions. A register of
certificates issued must be kept by the parties lsulng them. A
violation of these provisions. Issuing double certificates for the same
property, or selling or encumbering property Included In any ware­
house receipt, is made a criminal offense. There is also a criminal
statute against Issuing false warehouse receipts or certificates.
Wills. Any person of full age and sound mind may dispose of
his property by will, subject to the rights of homestead and exemp­
tion created by law and the distributive share in his estate given
by law to the surviving spouse, except sufficient to pay his debts
and expenses of administration. Wills, to be valid, must be written,
witnessed by two competent witnesses, signed by the testator, or
by some person in his presence and by his express direction. Sub­
scribing witnesses can derive no benefit from a will, unless there be
two competent witnesses besides them. Wills executed outside of
Iowa.Sln accordance with the laws of the State where executed or
of the testator’s domicile,' if in writing and Subscribed by the testator
are valid in Iowa. If probated in any other state or country they
shall be admitted to probate in this State on the production of a copy
of such will, and of the original record of probate thereof, authenticated
by. the attestation of the clerk of the court in which such proba­
tion was made or of the probate Judge, under seal, if they havs
one. All wills must be probated before they can be effectual.

SYNOPSIS OF

THE LAW S OF KANSAS
RELATING TO
BANKING AND COMMERCIAL USAGES

Revised by K b a u t h o f f , M c O w n t o c k & Q u a n t ,
Attorneys at Law, Kansas City.
(See Card in Attorneys’ Llst.t
Acknowledgments. (See Deeds.)
Actions. Civil actions are conducted as required by a code of
procedure. Security for costs must be given or resident plaintiffs
may deposit $15 in lieu of bond for ccfsts. Non-resident plaintiffs
may be required to give« bond for costs.

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Administration of Estates. Probate courts in each county have
jurisdiction of estates. Demands against the estate are divided tote
the following classes: 1. Funeral expenses. 2. Expenses of the
last sickness; wages of servants; demands for medicines and medical
attendance during the laBt sickness and expense of administration.
3. Debts due the State. 4. Judgments rendered against .the
deoeased in his lifetime; but if such judgments are liens upon real
estate and the estate be insolvent, such Judgments shall be paid
without reference to classification, except the first two which nave
reoedence. 5. All demands without regard to quality which shall
e legally exhibited against the estate in one year after granting
letters of administration. 6. All demands thus exhibited after the
end of one year and within two years. Demands not exhibited within
two years are barred, except as to infants, persons of unsound mind
or persons imprisoned or absent from the Unitea States, who shah
have one year after the removal of their disabilities. - Foreign ex­
ecutors, and administrators with the will annexed, may sen real
estate in this State in accordance with the power contained in the
will, unless administration upon the estate has been granted in this
State; provided that at the time of such conveyance an authenticated
copy of such will has been recorded in the’office of the probate court
in the county in which the land is situated.
Affidavits. Affidavits may be made in or out of the State by the
same authority and with like authentication, as depositions.
Aliens. Law prohibiting aliens from inheriting or holding real
estate, repealed 1901. (See Foreign Corporations.)
Arbitrations. Persons having controversies may submit them to
the arbitration of any person or persons mutually agreed upon and
otay make such submission a rule of any court of record in the State.
The parties may enter into arbitration bonds conditioned for the
faithful performance of the award.
Arrest. A defendant may be arrested in a civil action upon filing
an affidavit with the clerk of the court that he has removed or begun
to remove his property out of the Jurisdiction of the court with
Intent to defraud his creditors; or has begun to convert his property
into cash, for the purpose of placing it beyond the reach of his creditors;
or has property which he fraudulently conceals; or fraudulently con­
tracted the debt.
Assignments and Insolvency. Assignments must be for the
benefit of all creditors and only discharge the debtor to the amount
of payments made.
Attachment. At or after the commencement of an action an
attachment may be had by plaintiff. The affidavit of the plaintiff,
his agent, or attorney must be filed, stating the nature of the claim,
that it is just, the amount affiant believes ought to be recovered,
and the existence of some one or more of the following grounds: 1.
That defendant is a foreign corporation or a non-resident of the State
(but in this .case for no other claim than a demand arising upon con­
tract, judgment, or decree, unless the cause of action arose wholly
within the limits of the State). 2. That the defendant absconded
with the intention to defraud his creditors. 3. That the defendant
has left the county of his residence to avoid a service of summons.
4. That he so concealed himself that summons can not be served
upon him. 5. That he is about to remove his property or a part
thereof out of the jurisdiction of the court with the Intent to defraud
his creditors. 6. That he is about to convert his property or a
part thereof into money for the purpose of placing ft beyond the
reach of his creditors. 7. He has property or rights in action which
he conceals. 8. Has assigned, removed, or disposed of, or is about
to dispose of-his property, or a part thereof, with the Intent to defraud,
hinder, or delay his creditors. 9. Or fraudulently contracted or
incurred the debt on which the suit is brought. 10. Or that the
suit is brought for damages from the commission of some felony or
misdemeanor, l l . Or that the debtor has failed to pay for any
article or thing delivered for which by contract he was bound to pay
upon delivery. A bond in double the amount of plaintiff’s claim is
required except where by the attachment affidavit defendant is shown
to be a non-resident of the State. ■
Banks and Banking. There is no constitutional provision relat­
ing to banks, except banks of issue. Other banks are organized
under a general act. The charter, in addition to the requirements
of the law relating to corporations, shall contain the names and
places of residence pf the stockholders and the amount of stock sub­
scribed by each, and may contain such other provisions, not incon­
sistent with law, as the stockholders may deem proper, and shall
be subscribed by at least five of the stockholders of the proposed
bank who are residents of the State of Kansas. Board of directors
shall be not less than five, nor more than thirteen, a majority of whom
shall be residents of the county or adjoining counties to that m
which the bank is located. The word “State” shall be Included in tne
title. The full amount of the capital stock must be subscribed before
the charter is filed. The bank shall transact no business, except thh
election of officers, the taking and approving of their official bonds,
and the receipts of payments on account of subscriptions to its capital
stock, until it has been authorized by the bank commissioner to
oommence business. The capital stock must be paid, In full, in cash
and shall not be less than $10,000. , No bank shall employ its money
directly or Indirectly in trade or commerce by buying and selling
goods, ohattels, wares, and merchandise, and shall not invest In the
stock of any bank or corporation, nor make any loans on the security
of the shares of Its own capital, nor be the purchaser or hdlder of
any such shares, except to prevent loss upon a debt previously con­
tracted In good faith. All such property ooming into the possession
of the bank in the collection of debts shall not be considered assets
after the expiration of six months. Banks must have on hand in
available funds the following sums: In cities having less than 5,000
population, 20 per cent of their deposits; in cities having over 5,000
population, 25 per cent, one-half of which may consist of balances
due from good solvent banks located at commercial centers and at
such other points as the bank commissioner may approve. The
other half shall consist of actual cash. Officers are personally liable
for paying overdrafts. Not more than 15 per cent of the capita)
stock and surplus can be loaned to any one, person, company! or
corporation. Penalties are provided for false statements and for
receiving deposits when the bank is in a failing oondition. Private
banks are subject to the provisions of the law. The bank commissioner
or deputy, must make examination of each bank at ieast once a year.
Four reports per annum are required, and the commissioner may call
for others. Banks may purchase, hold, and convey real estate under
certain conditions to the extent of one third of their capital and
surplus. Shareholders are additionally liable for a sum equal to the
par value of stock owned and no more.
Deposit Guaranty Fund. Any bank having an unimpaired sur­
plus equal to 10 per cent of its capital, may participate In the guar­
anty fund act. Such bank must deposit with the state treasurer
money or bonds of the United States, State of Kansas, or of any
township, school district, board of education or city within the
State, to the amount of $500 for each $100,000 of its average deposits
eligible to guaranty (less its capital and surplus). It shall also pay
In cash an amount equal to one-twentieth of one per cent of its aver­
age deposits eligible to guaranty (less its capital and surplus).
In January of each year the commissioner shall make assessments
of one-twentieth of one per cent of the average guaranteed deposits '
of each bank until the cash fund accumulated amounts to $500,000.
The commissioner may make additional assessments of the same size

BANKING AND COMMERCIAL L A W S— KANSAS

not more than five in any one year. If a bank falls, the bank commis­
sioner takes charge and winds up its a ffa ir s . He Issues to each
depositor a certificate bearing 6 per cent interest. Any balance due
after assets are exhausted is payable out of the guaranty fund
D e p o s i t s otherwise secured do not participate, nor a bank’s obligation
as Indorser upon bills re-discounted., nor bills payable, nor money
borrowed from its correspondents or others.
Banks are prohibited from advertising that deposits are guaran­
teed by the State but are permitted to advertise that deposits are
guaranteed by the Bank Depositors’ Guaranty Fund.
Bills of Exchange. (See Notes and Bills of Exchange.)
Bill» ol L a d i n g . T h ese are g o v e rn e d b y th e co m m o n law
■B u l k S a l e .
“ T h e sale o r d isp o sal o f a n y p a r t o r the w h ole o f a
s to c k o f m erch an dise o r t h e fixtu res p e rta in in g th e re to , o th erw ise
than in th e o rd in a ry cou rse o f his tra d e o r busin ess, shall b e v o id as
against th e cr e d ito rs o f th e seller, unless th e pu rch a ser receives fr o m
the seller a list o f t h e nam es an d addresses o f th e cr e d ito rs o f th e
seller certified b y th e seller u n d e r o a th t o b e a c o m p le te and a ccu ra te
list o f his cr ed itors a n d unless t h e p u rch a se r shall, at least se ve n d a ys
before ta k in g possession o f th e p r o p e r t y , o r b e fo r e p a y in g th erefor,
n otify in p erson o r b y registered m ail, e v e r y c r e d ito r w h o se n am e
and address is s ta ted in said list, o r o f w h o m h e has k n o w le d g e , o f
th e p r o p o s e d s a le.”
In lieu o f n o t ic e m a y g iv e b o n d t w ic e a m o u n t d e b ts s h o w n b y
sellers a ffid a v it sig n ed b y t w o re sid e n t sureties, w h o 'ju s t ify fo r p r o p ­
erty in excess o f t h e o b lig a tio n o f t h e b o n d th e b o n d t o b e a p p r o v e d
b y t h e clerk o f t h e d istrict c o u r t o f t h e c o u n t y w h ere th e p r o p e r ty
sold is lo ca te d .
C h a t t e l M o r t g a g e s . A m o rtg a g e o f p e rs o n a l p r o p e r t y , w h ere th e
p r o p e r ty is n o t im nfiediately d e liv e re d t o t h e m o rtg a g e e w h o retain s
a ctu a l a n d co n tin u o u s p ossessio n t h e r e o f, is v o i d as a ga in st cr e d ito rs
o f t h e m o r tg a g o r a n d as a ga in st s u b se q u e n t pu rch a sers a n d m o rtga ge s e
in g o o d fa ith , u n less t h e m o rtg a g e , o r a c o p y th e r e o f is file d in t h e o ffice
o f th e reg ister o f d eed s in t h e c o u n t y w h e re th e p r o p e r t y is situ a ted ,
o r i f t h e m o r tg a g o r is a resid e n t o f t h e state, th e n o f t h e c o u n t y o f
w h ich h e is a t t h e t im e a resid en t. A m o r tg a g e s o filed is in v a lid
a fter t w o y ea rs u n less ^within t h ir t y d a y s n e x t p r e ce d in g t h e exp ira tio n
o f s u ch t w o y ea rs a n d ea ch t w o y e a r s th e re a fte r t h e m o rtg a g e e , his
a gen t o r A ttorn ey, m ak es a n a ffid a v it e x h ib itin g t h e in te re st o f t h e
m ortga gee in t h e p r o p e r t y a n d s h o w in g t h e b a la n c e u n p a id o n th e
d e b t, a n d files t h e s am e in t h e s am e m an n e r as th e m o rtg a g e . I n
case o f d e fa u lt t h e m o r tg a g e e m a y sell in t h e m a n n e r p r o v id e d in t h e
ch a tte l m o rtg a g e .
A m o r tg a g e o f e x e m p t p ers o n a l p r o p e r t y is in v a lid un less e xe c u te d
jo in t ly b y h u sb a n d a n d w ife w h e re t h a t r e la tio n exists unless it b e
giv en fo r th e p u rc h a se p r ic e o f t h e m o r tg a g e d ch a tte l.

Collaterals. Governed by the common law on Bailments and
Pledge.
Conditional Sales. Conditional contracts, by which the owner­
ship remains in the party proposing to sell until the purchase price
is paid, are treated as chattel mortgages and must be filed in the .
office of the register of deeds in the same manner as such chattel
mortgages but remain in force without the renewal affidavit required
In chattel mortgages.
Contracts. All contracts which, by the common law. are jo in t
only, shall be oonstrued to be joint and several. The use of p r iv a te
seals in written contracts, (except seals of corporation) is a bo lis h e d ,

a n d in suits u p o n w r itte n co n tr a c ts , as t o th e p e r fo r m a n c e o f c o n ­
d itio n s p re ce d e n t, it is s u fficien t t o a lleg e g e n e ra lly t h a t p la in tiff h a s
fu lly p e r fo rm e d t h e c o n tr a c t,

ic Conveyances. (See Deeds.)
Corporations. Corporations are formed under a general statute.
Prospective corporations must apply to the charter board for a charter.
A $ 2 5 application fee must accompany an application. Charter fee
is one-tenth of one per cent of Its authorized capital stock upon the
first $ 1 0 0 ,0 0 0 ; one-twentieth of one per cent on all in excess of $100,000.
Forms for applications and charters furnished by the Secretary of
State. Every corporation m u s t commence aptlve operations within
one year after filin g its charter with the secretary of state; failure to
d o s o W orks its d iss olu tion . D u r a tio n o f c h a r te r is f ift y y e a rs , o r less,
as m a y b e s p ec ified in t h e ch a r te r . N o c o r p o r a t io n (e x c e p t ra ilro a d,
b a n k in g , a n d b u ild in g a n d lo a n ), c a n c o m m e n c e busin ess u n til it
file w it h t h e s e c r e ta r y o f 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 ecreta ry s ettin g fo r t h t h a t n o t less th a n 20 p e r c e n t o f its ca p ita l
s to c k h a s b e e n p a id in actual- cash, o r p r o p e r t y e q u iv a le n t th e re to ,
b u t a c o r p o r a tio n d e f a c t o exists i f t h e 20 p e r c e n t . h a s b e e n p a id
ev en t h o u g h t h e a ffid a v it h a s n o t b e e n file d. T h e n a m e a d o p te d
m u st in d ic a te t h e n a tu re o f t h e bu sin ess. T h e c o r p o r a t e n a m e m u s t
b e g in w ith t h e w o r d “ t h e ” a n d e n d w it h t h e w o r d “ c o r p o r a t io n ,”
‘ ‘ c o m p a n y ,” “ a s s o c ia tio n ,” o r “ society ;,” b u t th is d o e s n o t a p p ly
t o b a n k s, b e n e v o le n t o r relig io u s s o cie tie s . T h e r e m u s t b e a t least
fiv e d irectors , th re e o f w h o m m u s t b e re s id e n ts o f t h e S tate. T h e
annu al s ta tem en t s(hall b e m a d e b y e a ch c o r p o r a t io n fo r p r o fit or, o n
b e fo re M a r c h 31st o f e a c h y e a r, sh o w in g a c o m p le te d e ta ile d s ta te ­
m e n t o f t h e c o n d it io n o f s u ch c o r p o r a tio n , o n t h e 31st d a y o f D e c e m b e r
n ex t p receed in g . ''F ailu re t o file th is r e p o r t w ith in n in e ty d a y s fr o m
tim e fix ed w o r k ? a fo r fe itu r e o f t h e ch a r te r , a n d a p e n a lty o f $5 fo r
ea ch d a y t h e r e p o r t is d e la y e d . T h e c a p ita l s to c k ca n b e in creased
t o an a m o u n t n o t exc e e d in g th re e tim e s t h e orig in a l a m o u n t fixed in
th e ch a r te r a n d t o a n y fu r th e r a m o u n t o f b o n a fid e p a id u p ca p ita l.
C a p ita l s to c k m a y a lso b e d e cre a se d . P r e fe r r e d s to c k ca n b e issued
i f all t h e h o ld e rs o f c o m m o n s to c k c o n se n t.
D iv id e n d s ca n n o t b e
d ecla red fr o m a n y s o u r c e o th e r th a n t h a t w h ic h resu lts fr o m p ro fits.
T h e c o r p o r a t io n ca n b o r r o w m o n e y n o t t o e x c e e d t h e a m o u n t o f its
ca p ita l s to c k .
C osts.
(S ee A c tio n s .)
C o r p o r a tio n s (e x c e p t b an k s, insurance,
b u ild in g a n d loa n co m p a n ie s a n d th o s e n o t organize«^ fo r p rofit) m ust
pay an a n n u al fra n c h ise ta x o n p a id -u p c a p ita l as fo llo w s : N o t over
$10,000, $ 1 0 ; o v e r $ 10,000 a n d n o t o v e r $ 25,000, $ 2 5 ; o v e r $25,000
a n d n o t o v e r $ 50,000, $ 5 0 ; o v e r $50 ,00 0 a n d n o t o v e r $100,000, $ 100;
o v e r $ 1 0 0 ,0 0 0 a n d n o t 'o v e r $ 250,000, $ 12 5 ; o v e r $ 250,000 a n d n o t
o v e r $ 500,000, $ 2 5 0 ; o v e r $ 50 0 ,0 0 0 a n d n o t o v e r $ 1,000,000, $ 500;
o v e r $ 1,0 00 ,0 0 0 a n d n o t o v e r $ 2,0 00 ,0 0 0 , $ 1 ,0 0 0 ; o v e r $2,000,000
a n d n o t o v e r $ 3,0 00 ,0 0 0 , $ 1 ,5 0 0 ; o v e r $ 3,0 00 ,0 0 0 a n d n o t over
$ 5,000,000, $ 2 ,0 0 0 ; o v e r $ 5 ,0 00 ,0 0 0 , $2,500.

Courts. Terms and Jurisdiction. District courts, holding two to
three terms a year in every county, have general original jurisdiction
In law and equity. Regular terms of the probate court are held in
each c o u n t y o n t h e first M o n d a y in e a ch m o n t h a n d special o r a d jo u r n e d
term s m a y b e h e ld as busin ess m a y req u ire. J u s tice ’s ju r is d ic tio n in
civ il a ctio n s fo r th e r e c o v e r y o f m o n e y . $ 3 0 0 ; t o r e c o v e r sp e cific
p erson al p r o p e r t y n o t v a lu e d in excess, $300. T h e su p re m e c o u r t is
th e c o u r t o f la st resort.

Creditors’ Bills. Creditors may bring an action in the nature of
creditors’ bill to marshal assets or set aside fraudulent conveyances
as in other' states.
Days of Grace. Abolished.
Deeds. No particular forms of conveyances are prescribed. As
a rule the fo r m used in other States is sufficient. A s between

a

th e p a rtie s c o n v e y a n c e s a re v a lid w ith o u t b e in g r e c o rd e d . D e e d s
m a y b e v a lid as a ga in st a tta c h in g cr e d ito rs w it h o u t b e in g re c o rd e d .
T h e w ife s h o u ld jo in w ith h e r h u sb a n d in t h e c o n v e y a n c e , a n d a n y


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

1737

conveyance or mortgage of the homestead without her uniting in the
same is absolutely void. If the wife has never resided in the State
her signature is not necessary. Grantors need not attach any seal
or scroll to their signatures, and no witnesses are necessary unless
grantors are unable to write. Corporations convey by deed, sealed
with the corporate seal and .signed by president, vice-president, pre­
siding member, or trustee. The acknowledgment must be before a
judge or clerk of the district court having a seal, a justice of the
peace, notary public, county clerk, register of deeds, mayor or clerk
of an Incorporated city. Every notary publio shall add to his official
signature the date of the expiration of his commission as notary
In cases where the acknowledgment is made out of the
§ublic.
tate it must be made before a court of record, a clerk, or other
officer having the seal thereof, a commissioner of deeds for Kansas,
justice of the peace or notary public, or before any oonsul of the
united States resident in any foreign country or port. Deeds and
mortgages must be recorded in the office of the register of deedis of
the county in which the land is situated, or they will be void as to
subsequent grantees in good faith without notice.
Deeds of Trust in the nature of mortgages are not used so far as
sale by the trustee is concerned. (See Trusts, etc.)
Depositions. Depositions are taken upon notice to the opposite
party. Courts are also authorized to appoint commissioners to take
depositions. The depositions may be taken before any person author­
ized to take acknowledgments. Each witness must sign his own
deposition. The notice must be attaohed to the depositions and
inclosed with tjiem. The depositions should be commenced on the
day named, and some portion of a deposition taken on each succes­
siv e day. Sundays ana national holidays not being regarded. If
taken by Interrogatories and cross-interrogatories, under agreement
or otherwise, each interrogatory and cross-interrogatory must be
put to each witness and answered so far as he can answer it, and the
answer written down. If the depositions are taken before the mayor,
notary public, or commissioner appointed as aforesaid, they must
b e ce rtifie d u n d e r h is officia l seal. I f b e fo r e a n y officer n o t p ossessin g
a seal, a ce r tifica te m u st b e an n exed , u n d e r th e seal o f t h e c o u n t y , or
t h e gre a t seal o f t h e S tate, t h a t t h e o ffice r b y w h o m t h e d e p o s itio n s
w ere tak e n w as, a t t h e tim e of ta k in g t h e sam e, s u ch o ffice r as he
represen ts h im se lf t o b e *in h is ce rtifica te . T h is s h o u ld b e a tta c h e d
t o t h e ce r tifica te o f t h e o ffice r (n o t possessing a seal) w h o t o o k t h e
d e p o sitio n s.

Descent and Distribution. The homestead is the absolute
property of the widow and children—one-half in value to the widow,
and the other half to the children, when both survive. The home­
stead can not b e divided or sold by an action for partition until all
the children attain majority. One-half of a ll real estate owned by
husband during c o v e r tu r e , and not conveyed by husband and wile,
nor sold at judicial sale, and not necessary to pay debts goes to the
wife in fee simple; except of la n d sold by h u sb a n d whose wife never
resid ed in th e S tate. R e m a in in g real e s ta te go e s to- t h e s u r v iv in g
ch ild ren , a n d liv in g issue o f p rio r d ecea sed ch ild ren , ch ild re n ta k in g
p e r stirpes, in eq u a l shares, or, i f n o n e , th e w h o le e s ta te g o e s t o th e
w id o w . F o r w a n t o f w ife o r ch ild o r liv in g issue o f d e ce a se d ch ild
th e w h o le e sta te goes t o 't h e p aren ts. T h e rules a p p lica b le t o w id o w
o f d ecea sed h u sb a n d a p p ly t o h u sb a n d o f d e ce a se d w ife . Ille g itim a te
ch ild re n in h erit fr o m th e m o th e r, a n d also fr o m t h e fa th e r, i f his
re c o g n itio n has b e e n gen eral a n d n o to rio u s , o r in w ritin g . W h e n a
c h ild W ould in h erit fr o m e ith er p a re n t, s u ch p a re n t w ill in h e r it fr o m
th e ch ild . P e rso n a l p r o p e r t y d e sce n d s in t h e s am e w a y * a s re a l
e sta te e x c e p t e x e m p t h o u se h o ld fu rn itu re is so le p r o p e r t y o f s u rv iv in g
s pou se. P r o p e r t y d e sce n d in g b y la w o r w ill is s u b je c t t o a n in h erit­
a n ce ta x , v a r y in g in p e rce n ta g e a c c o r d in g t o re la tio n sh ip a n d a m o u n t.
(S ee E x e m p tio n s .)

Dower. Dower Is abolished by law. (See Descent and Distri­
bution.)

E v id e n c e .
(S ee T e s tim o n y .) , j 1
E x e c u t i o n s m a y b e o r d e r e d as s o o n as ju d g m e n t is o b ta in e d i f s ta y
has n o t b e e n g r a n te d o r supersedeas giv en . -E x e c u t io n s ru n n in g t o
th e sheriff o f t h e c o u n t y w here t h e le v y is t o b e m ad e, m a y b e le v ie d
o n p r o p e r t y in a n y c o u n t y o f t h e S ta te a n d issue o n ly o u t o f c o u r t
w h ere ju d g m e n t o b ta in e d e x c e p t w h ere a b s tr a c t o r tra n s crip t o f ju s tic e
ju d g m e n t filed in d istrict c o u r t o f sam e c o u n t y as t h a t o f th e ju s tic e
co u r t, e x e c u tio n w ill issue o n said ju d g m e n t o n ly o u t o f said d is tr ic t
co u rt.
T h e r e is n o s ta y o f e x e c u tio n in th e d istrict c o u r t e x c e p t b y
su persedeas b o n d w h ic h m a y b e g iv e n o n a p p e al. I n ju s t ic e ’s co u r ts ,
b y filin g b o n d , s ta y s o f e x e c u tio n are g r a n te d a s fo llo w s . O n a n y
ju d g m e n t fo r $20 a n d u n d e r, t h ir t y 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 c e e d in g $ 10 0 , 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 t w e n t y d a ys. R e a l esta te is o n ly s u b je c t t o e x e c u ­
t io n issu ed o u c o f d istrict c o u r t o f c o u n t y w h erein ju d g m e n t r e n d e r e d
o r a b s tra ct o r tra n s crip t fr o m ju s tic e o f t h e p e a ce filed. E x e c u tio n s
a re lien s o n p e rso n a l p r o p e r t y o n ly fr o m tim e o f le v y . R e a l e s ta te
s o ld o n e x e c u tio n o r o r d e r o f sale, g iv in g t h e d e b to r e igh teen m o n th s
in w h ic h t o re d e e m . T h e d e b to r is e n title d t o possession o f t h e
p r o p e r t y a n d ren ts a n d p ro fits, d u rin g t h e p e r io d p r o v id e d fo r re d e m p ­
t io n , e x c e p t in ca se o f w a ste. R e c e iv e r m a y b e a p p o in te d t o p resen t
w a ste a n d m a y u se s o m u c h o f re n ts a n d p ro fits as are n e c e ss a r y t o
rep a ir w a ste a n d p a y co s ts o f re ce iv e rsh ip . S u rplu s i f a n y , t o b e p a id
t o ju d g m e n t, d e b to r fre e fr o m t h e lien .o f a n y ju d g m e n t* ,

Exemptions. Homestead of 160 acres of farming land, or of one
acre within an incorporated town or city, with buildings thereon,
unlimited in value. All household goods and wearing apparel; two
cows, ten hogs, one yoke of oxen, and one horse or mule, or in lieu
of one yoke of oxen and one horse or mule, a span of horses or mules,
and twenty sheep and their wool; necessary food for the support of
such stock for one year; one wagon, two plows, drag, and other
farming utensils, not exceeding $300; grain, meat, vegetables, gro­
ceries, etc., for the family for one year; the tools and implements of
any mechanic, miner, or other person, kept for the purpose or carry­
ing on his business, and in addition thereto stock-in-trade not exceed­
ing $400 in value; library, implements, and office furniture of any
p ro fe s sio n a l m an n e ce ssary f o r ca rr y in g o n s u ch tra d e . A ls o p e rs o n a l
ea rn in gs o f t h e d e b to r ea rn ed d u rin g th re e m o n th s p r e c e d in g th e
ga rn ish m e n t o r a tta c h m e n t, a n d th re e m o n t h s ’ p e n s io n m o n e y , w h ere
s u ch earn in gs o r p e n s io n m o n e y is n ec e ss a r y fo r t h e s u p p o r t o f th e
d e b t o r ’s fa m ily , b u t 10 p e r c e n t o f s u ch ea rn in gs m a y b e re q u ire d
t o b e p a id in a n d a p p lie d o n th e ju d g m e n t.
F o r e i g n C o r p o r a t i o n s . A fo r e ig n c o r p o r a t io n d o in g bu sin ess in
th is S ta te m u s t file a ce r tifie d c o p y o f its ch a r te r o r a rticle s o f in­
c o r p o r a tio n w ith th e s e cre ta ry o f s ta te a n d p a y t o t h e s ta te trea su rer
th e s am e fees u p o n t h e a m o u n t •o f ca p ita l in v e ste d o r u s e d in th is
s ta te as a d o m e s tic c o r p o r a tio n , w h en it re c e iv e s a ce r tifica te a u th o r­
izin g it t o d o b u sin ess a n d is th e n s u b je c t t o s u b s ta n tia lly t h e s am e
p ro v is io n s , ju d ic ia l c o n tr o l, r e s trictio n s a n d p e n a ltie s as a 'd o m e s tic
c o r p o r a tio n . A n n u a l s ta te m e n ts m u s t b e filled o n o r b e fo r e M a r c h
31st, g iv in g c o n d it io n o n th e 3 1st o f D e c e m b e r p re ce d iiig . I f a
fo r e ig n c o r p o r a t io n fa ils t o file w ith t h e s e cre ta ry o f (State t h e s ta te ­
m e n t re q u ire d b y la w w ith in n in e t y d a y s a fte r t h e t im e p r o v id e d fo r ,
its r ig h t t o d o busin ess in t h e S ta te is t h e r e b y fo r fe ite d . A p e n a lty
is im p o s e d o f $5 f o r e a c h d a y th is r e p o r t is d e la y e d . F o r e ig n c o r ­
p o r a tio n s m u s t p a y a n a n n u a l fra n c h ise t a x o n t h a t p o r t io n o f th e ir
c a p ita l re p re s e n te d b y its p r o p e r t y a n d bu sin ess in K a n s a s o n th e
s a m e b asis as d o m e s tic co r p o r a tio n s . F a ilu re o f fo re ig n c o r p o r a t io n s
w h o tra n s a c t bu sin ess in K a n sa s, o th e r th a n in te rs ta te co m m e r c e ,

1738

BANKING AND COMMERCIAL L A W S — KANSAS

t o c o m p ly w it h th is la w ren ders th e m s u b je c t t o o u s te r a n d receiv err
sh ip p ro ce e d in g s o n t h e p a r t o f t h e S ta te a n d m a y b e ./p le a d b y a
d e fe n d a n t in s u its in t h e s ta te c o u r ts o f K a n sa s, b r o u g h t b y th e
c o r p o r a t io n as a s ta y o f fu r th e r p r o c e e d in g s u n til s u ch t im e as t h e c o r ­
p o r a tio n s h a ll n a v e c o m p lie d w it h t h e law .
Fraud. (S ee A tta c h m e n ts , A rre s t, a n d A ssign m e n ts.)
Garnishment in District Courts. A t o r a fte r th e t im e o f
b e g in n in g an a c t io n t o r e c o v e r d a m a g e s fo u n d e d u p o n c o n tr a c t,
ju d g m e n t o r decree, o r a fte r t h e issu a n ce o f an e x e c u tio n a n d b e fo r e
i t is retu rn ed , i f t h e p la in fiff ca u se t o b e filed w ith t h e cle rk an a f f id a v it s ta tin g th e a m o u n t o f his c la im o v e r a n d a b o v e all o ffse ts ;.,th a t h e
b eliev es t h a t s o m e p e rso n , n a m in g h im , in d e b te d t o , o r nas p r o p e r t y
in h is possession o r u n d e r h is c o n tr o l b e lo n g in g t o t h e d e fe n d a n t, a n d
t h a t s u c h d e fe n d a n t h as n o p r o p e r t y lia b le t o e x e c u tio n sufficierft
t o s a tis fy h is d e b t, a n d t h a t t h e in d e b te d n e ss o r p r o p e r t y s o h e ld is
n o t b y la,w e x e m p t fr o m seizu re o r sale u p o n e x e c u tio n , t h e cleric
sh a ll issue a g a rn ish m e n t s u m m o n s. In ju s t ic e c o u rts t h e a ffid a v it
d iffers fr o m t h a t a c q u ir e d in d istrict c o u r t a c tio n s o n ly in t h a t affian t
s ta te s t h a t p la in tiff is in d a n ge r o f lo sin g h is c la im , in lieu o f th e
a lle g a tio n t h a t th e d e fe n d a n t h a s n o t p r o p e r t y s u b je c t t o e x e c u tio n
su fficien t t o s a tis fy t h e d e b t. I n t h e d is tr ic t c o u rts b o n d in d o u b le
a m o u n t cla im e d is re q u ire d o n ga rn ish m en ts b e fo r e ju d g m e n t, e x c e p t
w h ere d e fe n d a n t is a n o n -re sid e n t. N o b o n d r e q u ire d in ju s tic e
co u r ts .
1
Guaranty Companies. (See T r u s t C o m p a n ie s .)
H o lid a y s .
T h e fo llo w in g a re legal h o lid a y s : J a n u a r y 1st, k n o w n
as N e w Y e a r s D a y .
F e b r u a r y 12th, L in c o ln ’s B ir th d a y . F e b r u a r y
2 2 n d , W a s h in g t o n ’s B ir th d a y . M a y 30th , M e m o r ia l D a y . J u ly 4 th ,
In d e p e n d e n c e D a y . F irs t M o n d a y in S e p te m b e r, L a b o r D a y .
O c­
t o b e r 12th, C o lu m b u s D a y (b u t d o e s n o t a ffe c t c o m m e rcia l p a p e r ).
D e c e m b e r 2 5th , C h ris tm a s D a y . I f a n y o f th e s e d a y s fa ll o n Sun­
d a y t h e n e x t secu la r o r bu sin ess d a y is a legal h o lid a y . L e g a l o r b u s L
n ess p ro ce e d in g s h a d o n a h o lid a y , e x c e p t S u n d a ys, are v a lid .

Husband and Wife. (See Married Women.)
Injunctions. Injunctions may be granted by a district court or
by the judge thereof at the beginning of an action or afterwards, in
his discretion. A bond must be given to protect the defendant
against any loss in case the injunction is wrongfully obtained. In
the absence of the judge from the county the probate judge may
grant temporary injunctions.
Insolvency. (See Assignments.)
Interest. Legal rate. 6 per cent, but 10 per cent may be agreed
upon. Excess of 10 per cent is forfeited, and in addition thereto there
Bhall be deducted-.from the amount due for principal, with lawful
interest, an amount equal to the Interest contracted for in excess of
10 per cent. The legal interest originally contracted for continues
until the debt is paid, and no additional'Interest can be charged by
way o f p e n a lty fo r d e fa u lt e x c e p t fr o m d a te o f d e fa u lt. A p u rch a se r
of a n e g o tia b le n o t e f o r v a lu e b e fo r e m a tu r ity , w it h o u t n o tic e , tak es
the n o t e fr e e o f t h e u su riou s ta in t.
Judgments. Judgments of courts of record are liens on the real
estate of the debtor within the county from the first d a y of the term
at which the Judgment was rendered; but judgments b y confession
and judgements rendered at the same term during which the action
was commenced are liens only from the d a y on which the judgment
waB rendered. Judgments lose their priority over subsequent judg­
ments unless execution is issued and levied within one year after
ju d g m e n t . A ce r tifie d c o p y of t h e ju d g m e n t a p p e a r in g of r e c o r d in
t h e d is tr ic t c o u r t m a y b e filed in t h e o ffice of t h e cle rk of th e d istrict
c o u r t of a n y o t h e r c p u n ty a n d t h e ju d g m e n t w ill th e n b e a lien o n
rea l es ta te in t h a t c o u n t y . A b s tr a c ts or* tra n s crip ts of ju s tic e o o u r t
ju d g m e n t s m a y b e filed in t h e d is tr ic t c o u r t of t h e sam e c o u n t y ,
after w h ic h e x e c u tio n s issue o n ly o u t of sa id d is tr ic t c o u r t o n s u ch
u d g m en ts .

Jurisdiction., (See Courts.)
License. Agents of insurance companies are required to take out
licenses from the superintendent of insurance. Cities are authorized
to enact license ordinances and certain classes of business are required
to take out a license.
L i e n s . M e c h a n ic s , m a te ria l-m e n , a n d la bo re rs, b o t h o rig in a l c o n ­
t r a c to r s , a n d s u b -c o n tr a c to r s , a n d la b o r e rs Of c u b -c o n t r a c t o r s , are
e n title d t o o b ta in lien s u p o n rea l-esta te fo r la b o r p e rfo rm e d o r m ate ria l
fu r n ish ed in th e e re c tio n o r re p a ir o f a n y b u ild in g . S w orn s ta te m e n ts
ite m iz e d as fu lly as p r a c tic a b le as t o tn e a m o u n t o f t h e c la im , fo r
w h a t an d w h en it w as ren dered a n d b y w h o m , g iv in g n a m es o f c o n ­
t r a c t o r a n d o w n er a n d d e s c r ip tio n o f p r o p e r t y a n d d a te o f last m aterial
fu rn ish ed , m u s t b e filed in th e o ffice o f th e cle rk o f th e co u r t. O rig in a l
c o n t r a c t o r ’s lien c la im m u s t b e filed w ith in 4 m o n th s fr o m d a te o f
la st m ateria ls, o r la b o r fu rn ish e d a n d oth e rs e n title d t o lien w ith in
s ix ty d a y s a fte r la st m ate ria ls o r la b o r fu rn ish e d . L ie n c la im a n ts
o th e r th a n orig in a l c o n tr a c to r s , m u s t g iv e im m e d ia te n o t ic e o f filing
o f lien c la im t o o w n e r o r p e rso n in possession o f th e p rem ises, w h ere
th a t m a y b e d o n e , o th e rw is e m u s t p o s t n o t ic e o n t h e prem ises.
S u p rem e c o u r t has re n d e re d n o t ic e a lm o s t u n n ecessa ry . A c t io n t o
fo r e c lo s e lien m u s t b e b e g u n w ith in o n e y e a r a fte r filin g cla im . L iv e r y s ta b le k eep ers, fo r w a r d in g m e rch a n ts and c o m m o n carriers hav.e liens.
(S ee J u d g m e n ts .)
A tt o r n e y s h a v e lien o n p a p e rs a n d fu n d s in h a n d
f o r gen eral “b a la n c e o f c o m p e n s a tio n an d ' h a v e lien o n m o n e y s in h a n d s
c lie n ts a d v e r s a r y d u e clie n t in a n y 'm a tte r , a c t io n o r ; p ro ce e d in g , in
w h ic h t h e a t t o r n e y w a s e m p lo y e d fo r s e rvice s th e re in fr o m t h e tim e
o f s e r v ic e o n t h e a d v e rs e p a r ty , in t h e m an n e r o f a s u m m o n s, o f
w r itte n n o t ic e o f t h e lien.
B la ck s m ith s , horsesh oers, w a g o n m ak ers a n d ga ra g e p ro p rie to rs
g iv e n lien fo r m a te ria l a n d la b o r in th e ir w o r k p e r fe c te d b y filin g
s ta te m e n t o f lien w ith in s ix ty d a y s a fte r t h e se rv ice s in th e office
o f t h e reg ister o f d eed s c f t h e c o u n t y w h e re p e r fo r m e d — fo r e c lo s e d
in s a m e m a n n er as c h a tte l m o rtg a g e .

Limitations of Suits) An action for the recovery of real property,
■old on execution or by executors, administrators, or guardians,
brought by the execution debtor, or the heirs, ward, or guardians,
within five years after the deed is recorded. Other actions for
recovery of real property, within fifteen ye a rs. On official b o n d s
and contracts in writing, five years. Contracts not in writing, three
years. Trespass, detinue, replevin, injuries Dot arising on contract,
and relief on the ground of fraud, two years. Action for libel, slander,
malicious transaction, or false imprisonment upon a suit for penalty
or fo rfe itu re , o n e y e a r. Action fo r a n y o th e r re lie f n o t b e fo r e
p r o v id e d fo r , fiv e y e a rs . I n a n y ca se fo u n d e d o n c o n tr a c t, part
p a y m e n t, o r a n express w r itte n a c k n o w le d g e m e n t o r p ro m ise , ren ew s
the c o n tr a c t. T h e s ta tu te rim s fr o m t h e d a te o f s u ch ren ew a l. , C o n ­
tractual lim ita tio n s d iffe rin g fr q m t h e sta tu te s a re v o id .

Married Women. The real and personal property owned by a
woman at the time of her marriage, and any property whioh comes
to her by desoent, devise, or bequest, or gift of any person except her
husband, remains her sole and separate property notwithstanding her
marriage, and is not subject to the disposal of her husband or liable
for his debts. Married women may sell and convey their real and
personal property and enter into any contract with regard to the
sam e in the same manner and to the same extent as a married man
m a y In relation to his property. She may sue and be sued/ in the
sa m e manner as if she were single. She may carry on any trade or
b u sin ess, perform labor or. services for her separate account, and her
earn in gs or proeeeds from labor, trade, or business remain her separate

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Federal Reserve Bank of St. Louis

p r o p e r t y , a n d m a y b e u s e d a n d in v e s te d b y h er in h e r o w n nam e.
H e r h u sb a n d is n o t lia b le fo r h e r d e b ts in cu rre d in h e r se pa ra te bu si­
ness u n d e rta k in g s b y v ir tu e o f t h e m arriag e re la tio n . S he m a y also
c o n tr a c t w ith h e r h u s b a n d w ith t h e s a m e e ffe c t as t h o u g h th e m arried
r e la tio n b e tw e e n th e m d id n o t exist.
Mines and Mining. T h e la w p r o v id e s fo r th e a p p o in tm e n t o f a
m in e in s p e c to r w ith a u t h o r it y t o re q u ire m in e ow n ers t o \p r o v id e
c e r ta in fa c ilitie s fo r t h e h e a lth a n d s a fe ty o f p erson s e m p lo y e d and
c o m p e l p r o p e r v e n tila tio n , re g u la te e x c a v a tio n s , air cou rses, etc.
T h is la w is q u ite e la b o r a te a n d V io la tio n s o f t h e s a fe t y p ro v is io n s o f
th e a ct— re su ltin g in in ju r y t o e m p lo y e e s, u s u a lly resu lts in liability
e v e n w h ere t h e K a n s a s W o r k m e n ’s C o m p e n s a tio n A c t d o e s n o t
a p p ly , o n t h e p a r t o f t h e m in e o p e r a to r t o t h e e m p lo y e e s b e ca u s e o f
t h e p o s itiv e d u t y re s tin g o n t h e o p e r a to r t o p o m p ly w ith s u ch s ta tu tory
p ro v is io n s .
Mortgages. A m o r tg a g e o f re a l e sta te , t o b e v a lid as against
s u b se q u e n t b o n a -fid e p u rch a sers w it h o u t n o tic e , m u s t b e d u ly ac­
k n o w le d g e d a n d r e c o rd e d in t h e o ffic e o f t h e re g iste r o f d eed s o f t h e
c o u n t y w h e re t h e la n d is s itu a te d . M o r tg a g e s m a y b e v a lid as against
a tta c h in g c r e d ito r s w it h o u t re c o rd in g . M o r tg a g e s m a y b e d isch a rged
o n m a r g in o f r e c o r d b y m o r tg a g e e o r a tt o r n e y o r assign ee b y d u ly
a c k n o w le d g e d p o w e r o f a t t o r n e y o r a ss ig n m e n t in p re s e n ce o f register,
o r b y s a tis fa c tio n e n te re d o n th e in s tr u m e n t w h en c o p ie d o n th e
m a r g in b y t h 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 a ck n o w led g ed
a n d re c o r d e d ,
w i f e m u s t jo in in all m o rtg a g e s e x c e p t th o s e fo r
p u rch a se m o n e y , e x c e p t in cases w h ere sh e has n e v e r b e e n a resident
o f th e S tate. M o r tg a g e s a re fo r e c lo s e d b y su it o n ly .
B y an act
o f th e L e gis la tu re w h ich t o o k e ffe ct M a y 18, 1893, real e s ta te sold
u n d e r fo r e c lo s u r e o f m o r tg a g e is s u b je c t t o e igh te e n m o n th s re d e m p tion .
I f t h e m o r tg a g e fo r e c lo s e d is o n a b a n d o n e d p r o p e r t y o r n o t o cc u p ie d
in g o o d fa ith a n d th e c o u r t s o finds, six m o n th s o n ly is a llo w e d for
r e d e m p tio n . T h is a c t d o e s n o t a p p ly t o m o rtg a g e s e x e c u te d p rior
t o th e d a te th e a c t t o o k e ffe ct. W h e n a m o rtg a g e is assign ed the
a ssign m e n t s h o u ld b e a c k n o w le d g e d a n d r e c o rd e d . I f th e assignm ent
w as e x e c u te d p rio r t o M a r c h 15, 1899, it ca n b e re c o r d e d w h eth er
a c k n o w le d g e d 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 r d e d w ithin
fo u r m o n th s fro m t h a t d a te o r p a y m e n t t o th e re c e n t o w n e r o f the
m o r tg a g e w ith o u t n o t ic e o f t h e o u ts ta n d in g a ssign m e n t, w ill b e a
c o m p le te d e fe n s e t o an a c t io n th e re o n .
(F o r F o r m s , see D e e d s ; see
E x e c u tio n s .) 8
( F o r M o r tg a g e s o n C h a tte ls, see C h a tte l M o r tg a g e s : see E x e cu ­
tio n s.)

.

Notaries. Notaries are appointed by the Governor and serve for
four years. They give bond in the sum of $1,000 and are required
to affix the date of the expiration \oi their commission to all certifi­
cates.
Notes and Bills of Exchange. U n ifo r m N e g o t ia b le In s tr u m e n t
A c t t o o k e ffe c t J u n e 8, 1905.

Partnerships. Limited or special partnerships may be formed
for any legal purpose except banking or insurance. Such partnerships
may consist of one or more persons who are general partners, and
one or more who contribute a specific amount of capital and shall
be called special partners. The special partners are not liable for the
debts of the partnership beyond the amount contributed by them
respectively but the names of ,tbe special partners must not be used
in connection with the business. Such a partnership is formed by
executing a certificate stating the name, the nature of the business,
the names of the general and special partners, and their place of
residence, and the amount of capital contributed by each special
partner, and the period when the partnership is to commence and
when it will terminate. The certificate must be acknowledged and
filed and recorded in the ofljce-of the county clerk.
Power of Attorney.' (See Deeds.)
Probate Law. (See Administration.)
Protest. (See Notes and Bills.)
Records. (See Deeds.)
Redemption. (See Mortgages.)
Replevin. The plaintiff in an action to recover the possession of
specific personal property may claim the immediate delivery of the
s a m e b y filin g a ffid a v it a n d g iv in g b o n d d o u b le t h e s w o rn v a lu e o f
th e ,p r o p e r ty . P r o p e r t y r e p le v in e d m u s t b e h e ld b y t h e o ffice r tak in g
it t w e n t y -fo u r h o u rs, d u rin g w h ic h t im e t h e p a r t y fr o m w h o m t h e
p r o p e r t y is ta k e n m a y g iv e b o n d t o t h e p la in tiff fo r n o t less th a n
d o u b le t h e a m o u n t o f th e v a lu e t h e r e o f c o n d it io n e d fo r t h e return
o f t h e sam e o r its v a lu e in ca s e it shall b e a d ju d g e d t h e p la in tiff is
e n t itle d th e r e to , a n d t h e re u p o n m a y h a v e t h e p r o p e r t y re tu rn ed t o
h im .

Service. All sendee of process is made by the sheriff or by con­
stables, or by some one specially authorized in any particular case,
and must be issued In the name of the state with the seal of the
officer issuing the same affixed.
Suits. (See Actions.)
Taxes. One-half the annual levy for taxes becomes due Decem­
ber 20, and if not paid the whole amount become! due and there is a
penalty of five per cent added. If the whole amount is pald-there
is a rebate of 5 per cent on the last half. If not. paid by June 20 of
the succeeding year, another 5 per cent penalty is added. When
the tax upon real estate is delinquent, it is sold for taxes on the first
Tuesday in September following. After sold it bears interest at the
rate of 15. per cent per annum and the same rate upon subsequent .
taxes paid and indorsed on the tax certificate. The tax lien attaches \
to real estate on November 1, in the year in which the tax is levied.
After land Is sold for taxes, it may be redeemed within three years
from date of sale. The interest of a minor may be redeemed at any
time within one year after he attains his majority, and idiots and
Insane persóns may redeem within five years after the sale.
Trust Companies. Trust companies may be organized with a
capital of not less than $100,000, and may receive moneys in trust
and execute any trust committed to them, either by any person or
by order of any court, and may execute or guarantee any bond
required by law to be given in any proceeding in court, and act as
agent for the investment -of money and for the purpose of Issuing,
registering, transferring or countersigning certificates of stock, bonds
or other evidences of debt, act as guardian and guarantee the fidelity
and performance of duty of persons holding public offices or private
trusts, and certify and guarantee title to real estate and sell all kinds
of negotiable paper, and receive deposits from banks and other trust
companies or public officers. They are required to keep on hand 25
per cent of deposits subject to check and 10 per cent of time deposits,
in the same manner as state banks. Each director must be a stock­
holder in the sum of not less than $1,000. Trust companies are
under the supervision of the bank commissioner and subject to bis
examination.
Trusts and Powers. All trusts concerning lands must be created
in writing except such as arise by implication of law.
Warehouse Receipts. /Practically the Uniform "Warehouse
Receipts Act.”
,
Wills. Any person of full age and sound mind and memory, hav­
ing an interest in real or personal property, may give and devise the
same to any person by last, will and te sta m e n t lawfully executed,
s u b je c t, n ev erth eless, t o th e rig h ts of, cr e d ito rs a n d th e e s ta te g iv e n
a s p o u se b y / s ta tu te . W ills m u s t b e in w ritin g , sig n e d a t t h e en d b y
th e te sta to r , o r a n o th e r in his p re s e n ce an d b y his express d ir e c tio n .

BANKING AND COMMERCIAL LA W S— KENTUCKY
and s u b scr ib e d in h is4presen ce b y t w o o r m o re c o m p e t e n t w itnesses
who saw him s u b scr ib e o r h ea rd him a ck n o w le d g e it. W ills execu ted
w ithout th e S ta te' in t h e m an n e r p re s crib e d b y th e la w e ith er or th e
nlace w h ere e x e c u te d o r o f th e te s t a to r ’s d d m ic ile o r o f th e S ta te o f
Kansas a re d ecla red le g a lly e x e c u te d . C o m p lia n c e w ith th ese re ouirem ents sh ou ld a p p ea r n th e w itn essin g clause, A will e x e c u te d ,
Proved, a n d a llo w e d in a n o th e r S tate, in t h e c o u r t o f o rig in a l p r o b a te ,
a ccordin g t o th e law s o f t h a t S tate, m a y , re la tiv e t o p r o p e r t y in th is
State, b e a d m itte d t o r e c o r d in t h e p r o b a te c o u r t ,o f t h e c o u n t y m
w hich s u ch p r o p e r t y is s itu a te d , b y p r o d u c in g an a u th e n tica te d co p y ,
o f th e w ill a n d o r d e r o f p r o b a te a d m ittin g it t o p r o b a te b y t h e p ro p e r
court o f t h e c o u n t y ' a n d S ta te o f w h ic h d e ce a se d d ie d a re sid e n t.
E very w ill, w h en a d m it t e d t o p r o b a te , sh all b e filed in t h e o ffice o f
the p r o b a te c o u r t a n d r ec ord e d .

SYNOPSIS OF

THE LAWS OF KENTUCKY
R E L A T IN G T O

/BANKING AND COMMERCIAL USAGES
P rep a red a n d R e v is e d b y W . T . G o d f r o y , E s q .,
A t t o r n e y a t L a w , L o u is v ille .
(See C ard in A t t o r n e y s ’ L is t.)

A ck n ow led g m en ts. D eed s e x e c u te d w ith in th e S ta te m a y be
a ck n ow ledg ed b e fo r e th e cle rk o f a c o u n t y c o u r t o r a n o t a r y p u b lic,
or m a y b e a c k n o w le d g e d b e fo r e a n d p ro v e n b y t w o w itn esses. D eeds
execu ted w ith o u t t h e S ta te a n d w ith in th e U n ite d S ta te s m u st be
ack n ow ledged b e fo r e th e clerk o f a co u r t o r his d e p u ty , n o ta r y p u b lic ,
m iy o r o f a c it y , s e c r e ta r y o f s ta te , co m m is s io n e r o f d e e d s, o r ju d g e o f
a co u rt; If e x e c u te d w ith o u t th e U n ited S ta te s m u st b e a ck n o w le d g e d
before a fo r e ig n m in ister, con su l, o r se cre ta ry o f le g a tio n o f th e U n ited
States, o r t h e s e c r e ta r y o f fo re ig n affairs, o r ju d g e o f a su p e rio r co u rt
of th e n a tion w h ere th e d eed shall b e e x e c u te d , a tte s te d in e ith er case
by th e o ffic e r ’s seal o f office. W h e n th e a c k n o w le d g m e n t is tak en ,
the officer m a y s im p ly c e r t ify t h a t th e d e e d w as a c k n o w le d g e d b e fo re
him. a n d w h en it w as d o n e .
A c t io n s .
A c t io n s are c o m m e n c e d b y filin g in th e cle r k ’ s o ffice o f
the p r o p e r c o u r t *a p e titio n s e ttin g fo r t h th e ca u se o f a c t io n and
causing a s u m m on s o r a w a rn in g o r d e r t o be Issued th e re o n . N o n ­
residents a n d co r p o r a tio n s , o t h e r th a n b a n k s, cr e a te d b y la w s o f this
State, are re q u ire d t o g iv e s e c u r ity f o r co s ts.
A d m in is tr a tio n o f E sta te s .
P e rso n a l e sta te s o f d e ce a se d p er­
sons m u s t b e a d m in is ter ed b y th e e x e c u to r s n a m e d in th e w ill, o r if
these refu se t o q u a lify , o r n o n e are n a m e d , th e n b y an a d m in is tr a to r
appoin ted b y t h e c o u n t y c o u r t o f th e c o u n t y in w h ic h t h e d e ce d e n t
resided a t th e tim e o f h is d e a th . A d m in is tr a to r s a n d e x e c u to r s are
required t o g iv e b o n d f o r t h e fa ith fu l p e r fo r m a n c e o f th e ir du ties
and w ith s u re ty u n less o th e rw is e d ire cte d b y th e w ill. T h e y are
required t o file an in v e n t o r y o f t h e e s ta te w ith in th re e m o n th s and
to m ak e s e ttle m e n t w ith in t w o y e a rs fr o m th e d a te o f q u a lifica tio n .
A f f i d a v i t s . X n a ffid a v it m a y b e rea d t o v e r ity a p le ad in g , to
Drove th e s erv ice o f a su m m on s, n o tic e , o r o th e r p ro ce s s , in an a c t io n ;
to o b ta in a p r o v is io n a l re m e d y , a n e x a m in a tio n o f a w itness, a sta y
of p rocee d in g s o r a w a rn in g o r d e r ; o r, u p o n a m o tio n . A n affid a v it
m ay b e m a d e : 1. I n this S ta te , b e fo r e a ju d g e o f a c o u r t, o r a
justice o f th e p ea ce, n o t a r y p u b lic , cle rk o f a co u r t, o r m a s te r-co m ­
m issioner. 2. O u t o f th is S ta te , b e fo r e a co m m is s io n e r a p p o in te d
by th e g o v e r n o r o f th is S ta te ; o r b e fo r e a n y o th e r p e rs o n e m p o w e re d
by a com m is s io n d ir e c te d t o h im b y c o n s e n t o f th e p a rtie s o r b y
order o f th e c o u r t ; o r b e fo r e a ju d g e o f a c o u r t, a Justice o f th e p e a ce ,
a m a y or o f a c it y , o r n o t a r y p u b lic .
A p p e a l s . A p p e a ls m a y b e tak e n fr o m a Justice’ s c o u r t t o th e
quarterly c o u r t regardless o f th e a m o u n t in c o n tr o v e r s y ; fr o m th e
quarterly c o u r t t o th e cir c u it c o u r t w h en th e va lu e in c o n tr o v e r s y ,
exclusive o f in terest a n d cos ts, exceed s $ 25 ; fro m th e circ u it co u r t to th e
cou rt o f a p p eals as a m a tter o f rig h t in all cases in w h ich th e title to
land o r th e righ t' t o an easem en t therein, o r th e rig h t t o e n fo r ce a
sta tu tory lien is d ir e c tly in v o lv e d , a n d in all cases w hen th e value
in co n tr o v e r s y , exclu siv e o f in terest a n d co s ts, a m o u n ts t o $500 or
more, b u t w hen such a m o u n t in c o n tr o v e r s y e xceed s $200 a n d is less
than $500, th e p a r t y d eser v in g th e a p p e a l, m a y u p o n p a y m e n t o f th e
tax and filin g th e re c o r d in th e cle r k ’s o ffice o f th e C o u r t o f A p pea ls,
enter a m o tio n t h a t th e a p p e al b e g ran te d . I f th e c o u r t u p o n e x a m ­
ination o f the re c o r d d e cid e s th e a p p e al sh o u ld n o t b e gran ted , the
m otion shall b e o v e r ru le d w ith o u t a w ritte n o p in io n , a n d n o p e titio n
for a reh earin g will b e en terta in e d , b u t i f th e c o u r t sh o u ld b e o f op in io n
the ends o f ju s t ic e req u ire th e ju d g m e n t b e reversed th e n th e ap p eal
will b e g r a n te d a n d a w ritte n o p in io n w ill b e filed. N o ap p eal lies
i to th e c o u r t o f a p p eals fr o m a n y ju d g m e n t o f a q u a rte rly , c it y , p o lice ,
fiscal o r ju s t ic e ’s co u r t, n o r fr o m a n y ju d g m e n t o f the c o u n t y co u rt.
A r b it r a t io n ;
A ll co n tr o v e r s ie s w h ic h m ig h t b e th e s u b je c t o f a
»ult m a y b e s u b m itte d t o th e d e c is io n o f o n e o r m o re a rb itra to rs , o r
two a n d th e ir u m p ire. T h e su b m is sio n m a y b e in w r itin g o r b y
entry o f r e c o rd , a n d th e a g re e m e n t o f su b m issio n sh all b e b in d in g o n
the pa rties t h e re to , if it s ta te s th e m a tte r t o b e s u b m itte d a n d w h o
are t o b e th e a rb itra to rs .
E a c h a r b itr a to r a n d th e u m p ire, if o n e
be ch osen , shall ta k e a n o a th t o d e c id e t h e m a tte r in c o n tr o v e r s y
fairly a n d im p a r tia lly a c c o r d in g t o la w , ju s t ic e a n d th e e q u it y o f
the w h o le case. T h e a w a rd m u s t b e In w r itin g s ig n ed b y e a ch a r b i­
trator a n d t h e u m p ire , if a n y , a n d sh all b e a final se ttle m e n t o f th e
con tr ov e rs y b e tw e e n th e p a rtie s . A c o p y o f t h e a w a rd m u st b e
given w ith in a rea s on a b le tim e a n d sh all b e b in d in g u p o n b o th .
A r r e s t . A n o r d e r f o r th e a rre st o t th e d e fe n d a n t shall b e m a d e
by th e c o u r t in w h ic h th e a c t io n is b r o u g h t o r p e n d in g , a t its c o m ­
m en cem ent, o r a t a n y tim e b e fo r e ju d g m e n t, if a n a ffid a v it o f th e
plaintiff b e file d in h is o ffice s h o w in g : 1. T h e n a tu re o f p la in tiff s
claim . 2. T h a t it is ju s t . 3 . T h e su m o r v a lu e , w h ich th e affiant
believes t h e p la in tiff o u g h t t o r e c o v e r . 4. T h a t th e affian t Relieves«
eith e r th a t th e d e fe n d a n t is a b o u t t o d e p a r t fro m this S ta te a n d w ith
in tent t o d e fra u d h is cr e d ito r s has c o n ce a le d , o r m o v e d fr o m this
State, his p r o p e r t y , o r so m u c h th e r e o f th a t th e p ro ce s s o f th e co u r t
after ju d g m e n t ca n n o t b e e x e c u t e d ; o r t h a t th e d e fe n d a n t h a s m o n e y ,
or secu rities fo r m o n e y , o r e v id e n c e s o f d e b t, in th e p ossession o f
him self, o r o f oth ers f o r h is use, a n d is a b o u t t o d e p a r t fr o m this
State w ith o u t le a v in g p r o p e r t y th e re in s u fficien t t o sa tisfy p la in tiff s
claim .
A s s ig n m e n ts a n d I n s o lv e n c y .
S u b je c t t o N a tio n a l B a n k ru p t
Law . E v e r y v o lu n t a r y a ssign m e n t m a d e b y a d e b to r t o a n y p erson
in tru st fo r his cr e d ito r s shall b e f o r th e b e n e fit o f all th e cr e d ito rs o f
the a ssign or, in p r o p o r t io n t o th e ir re s p e ctiv e cla im s , a fte r th e P ay­
m ent o f th e exp en ses o f th e t r u s t; e x c e p t t h a t p r o p e r t y c o n v e y e d
b y th e d e e d o f a ssign m en t, a n d u p o n w h ic h th e re Is a v a lid lien,
shall b e a p p lie d first t o th e d isch a rge o f th e lie n d e b t ; a n d e x c e p t
that d e b ts d u e b y th e a ss ig n o r as gu a rd ia n , c o m m itte e , tru s te e o f
an exp ress tru s t cr e a te d b y d e e d o r w ill, o r as p erson a l r e p re s e n ta tiv e ,
shall b e p a id in fu ll b e fo r e t h e gen eral cr e d ito rs r e c e iv e a n y th in g .
The In ten t o f t h e a ssign or in m a k in g th e d e e d o f a ss ig n m e n t shall
n ot in v a lid a te t h e d e e d , un less h e b e s o lv e n t, a n d it-a p p e a r t h a t th e
assignm ent w a s m a d e t o h in d e r dr d e la y cr e d ito rs . T h e d e e d ve sts


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

1739

in th e assignee th e t itle t o all th e e sta te , real a n d p erson a l, b e lo n g in g
t o th e a ssign or a t th e tim e o f m ak in g th e a ssign m en t, e x c e p t th a t
p r o p e r ty e x e m p t b y la w shall n o t p ass u n less em b r a c e d in th e d e e d .
I f th e assignor, b e fo r e m a k in g th e d e e d , sh all h a v e m a d e a p referen tia l
or fra u d u le n t tra n sfer, c o n v e y a n c e , o r g ift o f a n y o f his p r o p e r t y ,
o r fra u d u le n t p u rch a se o f a n y p r o p e r t y o r th e n a m e o f a n o th e r, th e
p r o p e r ty so fra u d u le n tly tra n sfe rre d , c o n v e y e d , o r p u rc h a se d shall
ve st in th e assignee, a n d it shall b e his d u t y t o In stitu te s u ch p r o ­
ceed in g s as m a y b e xn e ce ss a ry ¡to r e c o v e r sam e. I f, u p o n d e m a n d ,
he refuses t o d o so, a n y c r e d ito r m a y , a n d th e p r o p e r t y so reoov erefi
shall b e c o m e a p a rt o f th e e sta te , a n d b e d istrib u te d as o th e r a ssets.
I f cre 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 ir d s o f th e
a m o u n t o f d e b ts aga in st th e e s ta te shall so req u est in w r itin g , th e
co u r t sh all re m o v e th e a ssignee a n d a p p o in t a n o th e r in h is ste a d .
A t t a c h m e n t s - . T h e w r it m a y issue aga in st a d e fe n d a n t w h o is a
fo re ig n co r p o r a tio n o r n o n -re sid e n t o f th e S ta te ; o r has b e e n a b s e n t
fr o m 1S ta te fo u r m o n th s ; o r has le ft th e S ta te w ith in te n t t o d e fra u d
c r e d ito rs ; o r has le ft his c o u n t y t o a v o id s e rv ice o f su m m o n s: o r
so co n ce a ls h im se lf t h a t s u m m o n s ca n n o t b e s e r v e d ; o r Is a b o u t t o
re m o ve , o r has r e m o v e ! his p r o p e r t y o r m ate ria l p a rt o u t o f th e
S ta te n o t le a v in g en o u gh t o s a tisfy cla im o f p la in tiff o r d e fe n d a n t’ s
c r e d ito rs ; o r has d isp o s e d o r is a b o u t t o d isp o s e o f o r sell h is p r o p e r t y ,
o r p e rm itte d t o b e sold o r d isp o s e d o f w ith fra u d u le n t In te n t t o ch e a t
h in d er o r d e la y cr e d ito rs . A ls o in a c t io n fo r m o n e y d u e u p o n c o n ­
tra ct ju d g m e n t o r a w a rd , if d e fe n d a n t h a v e n o p r o p e r t y in S ta te
s u b je c t t o e x e c u tio n , o r n o t e n ou gh t o s a tisfy p la in tiff a n d c o lle c tio n
will b e e n d a n g ered b y d e la y in o b t a in in g , ju d g m e n t a n d re tu rn o f
nulla b o n a . A ls o in a c t io n f o r p erson a l p r o p e r t y o rd e re d t o b e
d e liv e re d t o "p la in tiff w h ich as p a rt th e re o f has b e e n d isp o s e d o f,
re m o v e d , o r c o n ce a le d , so th a t o rd e r o f d e liv e r y ca p n o t b e e x e c u te d .
A ffid a v it as p re s crib e d b y c iv il c o d e a n d b o n d re q u ire d , e x c e p t n o
b o n d req u ired in a c t io n u p o n n u lla .b o n a return.
B an ks.
I t is u n la w fu l fo r a n y p e rs o n o r p erson s, e ith e r as
In dividu als o r c o -p a rtn e rs t o en g ag e In o r c o n d u c t th e busin ess o t
p riv a te b a n k in g in th is c o m m o n w e a lth . C o rp o ra tio n s m a y b e o rg a n ­
ised t o c o n d u c t b o t h a b a n k in g a n d tru st c o m p a n y bu sin ess. T h e
b oard s o f d ire cto rs o f b an k s a n d tru s t c o m p a n ie s d o in g bu sin ess in
this S ta te h a v e fu ll p o w e r a n d a u th o r ity t o fix th e h o u rs o f o p e n in g
a n d c lo s in g o f said b an k s a n d tru s t co m p a n ie s, a n d m a y p r o v id e
th a t o n S a tu r d a y o f e a ch w eek such h o u r o f clo s in g b e as e a rly as
tw e lv e (12) o ’c lo c k n o o n . A D e p a rtm e n t o f B an k in g, p r o v id in g fo r a
B an king C om m ission er, d e p u ty com m is s io n e r an d exam in ers o f S tate
ban ks, a p d p re scrib in g their d u tie s a n d fo r th e e xa m in a tion o f all
flnancial' in s titu tion s o rgan ized and d o in g busin ess u n der th e law s o f
the S tate w as cre a te d b y a law e ffe ctiv e J u ly 1st, 1 9 1 2 .,
|
C h a tte l M o r tg a g e s a n d D eed s o f T ru st.
N o de& i o f tru s t o r
m o rtga ge , c o n v e y in g a legal o r e q u ita b le title t o real o r p erson al
estate, sh all b e va lid against a p u rch a se r fo r a va lu a b le c o n sid e ra tio n ,
w ith o u t n o t ic e th e r e o f o r a ga in st cr e d ito rs , u n til su ch d e e d shall b e
a ck n o w le d g e d o r p r o v e d a c c o r d in g t o la w , a n d lo d g e d f o r r e c o r d . I t
Is a pen al offense, p u n ish a b le b y fine an d Im prison m en t, fo r a n y p e r­
son t o sell a n y p ersonal p ro p e r ty , on w h ich th e re is a m o rtg a g e o f
record , w ith th e in te n t t o p re v e n t th e fo re clo s u re o f th e m o rtg a g e
an d a sale Of th e p ro p e rty .
C h e c k s . T h e issuing o f ch eck s in this S ta te u p o n ban ks w here
the draw er has nob sufficient fu n ds on d e p o sit t o p a y sam e is n o w a
crim inal offense. I f a m o u n t un der $20.00 it is a m isd em ean or, a n d
th e p e n a lty $100.00 o r jail co n fin e m e n t o n e t o th irty da ys, o r b o th
such fine a n d im p riso n m e n t in d iscretion o f th e C o u r t o r Ju ry .
If
th e c h e ck b e fo r $20.00 o r m ore, it is a fe lo n y a n d co n fin e m e n t in
p e n iten tia ry fo r n o t less than o n e o r m o re than t w o years, b u t i f
th e d ra w er o f th e ch e ck shall p a y sam e w ithin tw e n ty d a y s a fter
receiv in g n o tic e o f th e d ish o n o r o f th e ch e ck , h e shall n o t b e p rose­
c u te d ; o r i f th e p ro s e cu tio n has been begu n , it shall b e dism issed a t
c o s t o f th e m ak e r o f th e ch e ck .
C o n t r a c t s . A seal o r scroll is in n o case necessary t o g iv e e ffe ct
to a d eed o r o th e r w ritin g . A ll unsealed w ritin gs sta n d u p o n th e
sam e fo o t in g w ith sealed w ritings, h a v in g th e sam e fo r c e a n d e ffe ct,
an d th e sam e a c tio n s m a y be fo u n d e d u p o n th em . T h e S ta te o r
o o u n ty seal, o r th e seal o f a co u r t, c o r p o r a tio n , o r n o t a r y t o a n y
w ritin g has n o t, h o w e v e r, b e e n d ispensed w ith .
C on veyan ces.
(S ee A c k n o w le d g m e n ts .)
C o r p o r a t i o n s fo rm e d u n d e r th e general law s f o r tra n s a c tio n o f
a n y la w fu l busin ess. S p e cial reg u la tion s p re scrib e d f o r fo re ig n co r ­
p o ra tio n s d o in g busin ess in the S ta te , a n d fo r b an k in g, b u ild in g and
loan , tru st, in surance, a n d ra ilro a d c o m p a n ie s. C u m u la tiv e v o t in g
p rescrib ed . S to c k h o ld e rs in ban k s, tru st c o m p a n ie s, g u a r a n ty c o m ­
panies, in v e stm e n t co m p a n ie s a n d Insurance co m p a n ie s a re lia b le
e q u a lly a n d r a ta b ly , a im n o t o n e f o r th e oth e r, fo r a ll c o n tr a c ts a n d
liab ilities o f c o r p o r a tio n t o e x te n t o f th e a m o u n t o f th e ir s to c k a t
p a r v a lu e in a d d itio n t o a m o u n t o f su ch s t o c k ; but^ p e rso n s h o ld in g
s to c k , as fidu ciaries, a re n o t p e rs o n a lly lia b le , b u t esta tes In th eir
h an ds are in sam e m an n er a n d t o sam e e x te n t as o t h e r s to c k h o ld e r s ,
a n d n o tra n sfe r o f s to c k o p e ra te s as a release, o f a n y such lia b ility ,
e x is tin g a t tim e o f transfer, p r o v id e d a c t io n t o e n fo r c e th e lia b ilit y
b e co m m e n c e d w ith in t w o y e a rs fr o m tim e o f th e tra n sfer. A rtic le s
a ck n o w le d g e d a n d r e c o rd e d lik e d eed s In c o u n t y in w h ic h p rin c ip a l
p la c e o f busin ess is s itu a te d , a n d a c o p y th e re o f , filed a n d re c o rd e d
in th e o ffice o f th e s e cre ta ry o f S ta te . A ft e r su ch filin g a n d re c o rd in g ,
a n d p a y m e n t t o S ta te o f lice n s e t a x o f o n e -te n th o f 1 -per c e n t o n
its ca p ita l s to c k , c o r p o r a t io n is d e e m e d o rg a n iz e d ; b u t, b e fo r e trans­
a c t in g bu sin ess o t h e r th a n w ith its o w n s to c k h o ld e rs, a t le a st 50
p e r ce n t o f s t o c k m u st in g o o d fa it h b e s u b scr ib e d , p a y a b le a t such
tim es a s b o a r d o f d ire cto rs m a y req u ire.
C o u rts.
G eneral civ il a n d cr im in a l Jurisdiction is v e s te d in o i t
c u lt c o u rts w h ic h h o ld te rm s in e a ch c o u n t y as p r o v id e d b y s ta tu te .
' C r e d it's . B y an A c t a p p r o v e d M a r c h 14, 1914, i t , is p r o v id e d
th a t a p e rso n w h o shall k n o w in g ly in p e rso n o r th ro u g h a n y a g e n c y
m ak e a n y fa lse sta te m e n t in w ritin g w ith in te n t it shall b e relied
u p o n , re sp e ctin g h is financial co n d itio n , o r m ean s o r a b ility t o p a y ,
fo r th e p u rp o s e o f p ro cu rin g d e liv e ry o f person al p r o p e r ty , th e p a y ­
m ent o f cash, th e m ak in g o f a lo a n o r cre d it, o r e xten sion o f cr e d it,
and p rocu res u p o n fa ith th e r e o f e ith er o r a n y o f th e th in g s o r benefits
m e n tio n e d , shall b e g u ilty o f a fe lo n y a n d u p o n c o n v ic t io n , shall
b e con fin ed in tn e p e n ite n tia ry n o t less th a n o n e n o r m o re than five
years.
D ays o f G race.
(S ee N o te s a n d B ills o f E x ch a n g e .)
D e p o s i t i o n s m a y b e ta k e n in a ll e q u ita b le a c tio n s , a n d in o r d in a r y
o r c o m m o n la w a c tio n s , w h ere w itn ess resides t w e n t y mlleB o r m o re
f r o m 1p la c e w h ere c o u r t is h e ld , o r is a b s e n t fr o m S ta te , a n d in m a n y
o t h e r Cases e n u m e r a te d in th e s ta tu te w h ere th e w itn ess is p riv ile g e d .
D e p o s itio n s a re ta k e n e ith e r o n n o t ic e t o o p p o s it e p a rty , o f u p o n
w r it t e n /in te r r o g a t o r ie s . T h e o r d in a r y m e th o d o f ta k in g is u p o n
n o tic e , 'b u t w h e re p la c e o f ta k in g is m o re th a n o n e d a y ’s t r a v e l b y
o r d in a r y 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 fr o m th e p la c e
• o f sittin g o f c o u r t , th e p a r t y re c e iv in g n o t ic e m a y re q u ire d e p o s itio 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 t ic e t o t h a t e ffe c t t o
a d v e r s e p a r t y o r h is a tt o r n e y u p o n s am e d a y , o r d a y fo llo w in g o n e
u p o n w h ich first n o t ic e w as s e rv e d .
E x c e p t In d iv o r c e ca ses, d e p o ­
s itio n s a re re q u ire d t o b e ta k e n u p o n in te rro g a to rie s , if a ll pa rties
a g a in s t w h o m t h e y a re t o b e re a d h a v e b e e n c o n s t r u 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 r e 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 t h e r th a n c o v e r t u r e o r in fa n c y a n d c o v e r t u r e c o m b in e d .
I n se ve ra l

1740

BANKING AND COMMERCIAL LA W S— LOUISIANA

other eases enumerated In ttae civil code, the court may require
depositions to be taken upon interrogatories, and they may always
be so taken by consent ot all parties. Officers authorized to take
depositions in this State: An examiner appointed by Judge of cir­
cuit court of this district, a judge or clerk of a court, justice of peace,
or notary public. Depositions may be taken out of this State before
a commissioner appointed by governor of this State or before a
judge of a court, a justice of peace, mayor of city, notary public,
or any other person empowered by a commission issued to him by
consent of the parties or by order ot court. It deposition is taken
upon Interrogatories neither party is allowed to be present, either
in person or by agent attorney. The officer’s certificate must state
when and where the deposition was taken; that the witness was
duly sworn before giving it, and that it was written and subscribed
by him in officer’s presence, or was written by officer in presence
of witness and read to and subscribed by witness in presence of officer.
Desefent and Distribution of Property. The real estate of, a
person dying intestate shall descend in parcenary to his kindred, male
and female, in the following order, viz: (1) To his children and
their descendants; if none, then (2) to his father and mother equally
if both be living; if either be dead, tbe whole estate descends to the
pne living; if both be dead, then (3) to his brothers and sisters and
their descendants; if none, then (4) one moiety of the estate shall
pass to the paternal and the other to the maternal kindred, in the
following order: (5) to the grandfather and grandmother, or which­
ever may be living; if both are dead, then (6) to uncles and aunts
and their descendants; if none, then (7) to great grandfather and
great grandmother, and so on in other cases without end. passing
to the nearest lineal ancestors and their descendants. (8) If there
is no kindred to one of the parents, the whole shall go to the kindred
of the other. If there is neither paternal nor maternal kindred, tbe
whole shall go to the husband or wife of the Intestate, or if he or
she be dead, then to his or her kindred as if he or she had survived
the intes.tate and died entitled to the estate. When any or all of a
class first entitled to take are dead, leaving descendants such descend­
ants shall take per stirpes, that is to say, .by representation, the shares
of their respective deceased parents. Collaterals of the half blood
shall inherit only half so much as those of the whole blood. In making
title by descent, it shall be no bar to a party that any ancestor,
through whom he derives his descent from the Intestate, is or has
been an alien. Bastard can Inherit in the descending line only from
tbe mother and her kindred, and can transmit inheritance in the
ascending line only to the mother and her kindred.
Dower. (See Husband and Wife.)
Executions may issue upon judgment any time until collection
of it is barred by limitation, but no execution shall issue on any
judgment, unless ordered by the court, until after ten days from
rendition. Execution constitutes lien on property of debtor from
time it reaches hands of proper officer. Execution may be replevied
tor three months, any time before sale under same, by defendant
giving to the officer an obligation (replevin bond) payable to plaintiff,
with good security for the amount thereof, interest and oosts. A
judgment to enforce a lien cannot be replevied. No replevy allowed
upon judgment against any collecting officer, attorney at law, or
agent, for a delinquency or default in executing or fulfilling duties
of his office or place, or for falling to pay over money collected by
him in such capacity, nor against a principal by his surety, nor upon
a debt due by obligation having the force of a judgment, nor upon
judgment for specific property, or for the property, or its value.
If land sold does not bring two-thirds of appraiser s valuation, defend­
ant and his representatives have right to redeem within a year from
the day of sale, by paying purchaser or his representatives original
purchase money and ten per centum per annum Interest.
Exemptions. The following property of persons with a family
resident in this Commonwealth, shall be exempt from execution,
attachment, distress, or fee bill, namely: Two work beasts, or one
work beast and one yoke of oxen; two plows and gear; one wagon
and set of gear, or cart or dray; two axes, three hoes, one spade, one
shovel; two Cows and calves; beds, bedding and furniture sufficient
for family use; one loom and spinning wheel and pair of cards; all
tbe Bpun yam and manufactured cloth manufactured by the family
necessary for family use; carpeting for all family rooms in use; one
table; all books not to exceed seventy-five dollars in value; two
saddles and their appendages; two bridles; six chairs; or so many
as shall not exceed ten dollars in value; one cradle; all the poultry
on band; ten head of sheep, not to exceed twenty-five dollars in value;
all wearing apparel; sufficient provisions, including breadstuff and
atiimn.) food to sustain the family for one year; provender suitable
for live stock, if there be any such stock, not to exceed seventy dollars
in v&lue; and if such provender be not on hand, such other property
as shall not exceed such sum in value; ail washing apparatus, not to
exceed fifty dollars in value; one sewing machine, and all family
portraits and pictures; one cooking stove and appendages, and other
cooking utensils not to exceed in value twenty-five dollars; ninety
per centum of the salary, wages, or income earned by labor, of every
person earning a salary, wages, or income of seventy-five dollars or
less per month, provided that the lien created by service of garnish­
ment, execution, or attachment, shall only affect ten per centum
of such salary, wages, or income, earned at the time of service of
process; of the salary, wages, or income earned by labor, of every
erson earning a salary, wages or income in excess of seventy-five
ollars per month, sixty-seven and one-half dollars per month and
no more shall be exempt.
Tools of a mechanic, not exceeding one hundred dollars in value;
libraries of ministers of the Gospel, professional libraries of lawyers,
professional libraries and instruments of physicians and surgeons, not
to exceed in value five hundred dollars. In addition to personal
property there is for actual bona fide housekeepers with a family
resident in this Commonwealth a homestead exemption of so much
land including the dwelling house and appurtenances owned by
debtor as shall not exceed in value one thousand dollars. This
does not extend to a mortgage on or purchase money due for the land
or for debts or liability existing prior to the purchase of the land, or
of the erection of the improvements thereon.
Personal property or money on hand or in bank to the amount of
3750.00 shall be exempt from distribution and sale and shall be set
apart by the appraisers of the estate of an intestate to his widow and
children, or, if no widow, to his infant children or child surviying him.
The appraisers shall state in their appraisement the money or the
articles and value of each set apart by them to the widow, or infants,
separately to the articles appraised for sale, but if the widow be present
at the time of the appraisement, or any one authorized by her in
writing, she may make her selection out of the property appraised to
the amount of said $750.00 and said appraisers shall so report. The
provisions of this section shall apply to cases where the husband dies
testate, and the widow renounces the provisions of the will in the
time prescribed by law.
Holidays. The 1st day of January, the 22d day of February, the
80th day of May, the 4th day of July, the first Monday in September
(Labor Day), the 12th day of October (Columbus Day); the 25th
day of December of each year, and all days appointed by the president
of the United States, or by the governor of this State, as days of fasting
and thanksgiving are declared holidays, and shall be treated as Sun­
day. If any of those days named as holidays shall occur on Sunday,
the next day thereafter shall be observed as a holiday.

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Husband and Wife. By an act which took effect June 12, 1894,
the following important changes were made in the common law of
coverture which theretofore prevailed in Kentucky. Marriage give*
to the husband during the fife of the wife no Interest in any ot
the wife’s property. She has full power to contract and to bind
herself and her property, except that she can not bind herself to
answer for the debt, default, misdoing of another, exoept as to property
set apart for that purpose by mortgage. She may sell and dispose
of personal property as if unmarried, but may not sell or convey
real estate unless her husband unites in the contract, or conveyance,
unless empowered to do so by decree of court In case of Insanity,
oonvlotion of felony, or abandonment by the husband. After tnc
death of either husband or wife the survivor shall have a life estate
in one-third of all the realty of which the decedent was seized in fee
simple during the coverture unless such right shall have been for­
feited or relinquished. Such survivor has also one-half the personalty
of the decedent left after the payment of debts. Abandonment and
living in adultery by either party, or divorce works a forfeiture of
these rights.
Interest. The lawful rate of Interest is 6 per centum per annum,
and contracts for a greater rate are void as to the excess of Interest.
Judgments. A judgment does not constitute a lien on property
In this State. All judgments bear interest from their dates. (See
Executions and Limitations.)
Limitations. The following are the periods within which actions
must be brought, the time commencing to run from the accrual of
the cause of action. Fifteen years: Actions to recover real property;
actions upon judgments and written contracts, except negotiable
instruments.- Seven years: Actions by senior patentees against
Junior patentees, who have held possession for seven years. Five
years: Actions upon verbal contracts; upon a liability created by
statute; actions for trespass to real or personal property or for dam­
ages for withholding same; for the specific recovery of personal prop­
erty; actions upon negotiable instruments, though as to"the makers
of an undiscounted note it is fifteen years and as to sureties seven
years; actions upon accounts between merchants, and actions for
relief from fraud or mistake. Two years: Actions upon merchant’s
accounts for goods sold. One year: Actions for injury to person or
character and for breach of promise of marriage.
Notes and Bills of Exchange. An act relating to negotiable
instruments became a law June 13, 1904. Section 1 declares that an
instrument to be negotiable must conform to the following require­
ments. (1) It must be in writing and signed by the maker or
drawer. (2) Must contain an unconditional promise or order to
pay a sum certain in money. (3) Must be payable on demand, or
at a fixed or determinable future time. (4) Must be payable to tht
order of a specified person or to bearer. (5) Where the Instrument
Is addressed to a drawee, he must be named or otherwise Indicated
therein with reasonable certainty. Days of grace are abolished.
The signature of any party may be made by an agent duly authorized
in writing. Every negotiable instrument is payable at the time fixed,
therein; when the day of maturity falls upon Sunday, or a holiday,
the Instrument is payable on the next succeeding business day.
Powers of Attorney. Powers of attorney to convey real or per­
sonal property may be acknowledged, proved and recorded in the
proper office in the manner prescribed for recording conveyances. If
the conveyance made under a power, Is required by law to be recorded
or lodged for record to make the same valid against creditors and pur­
chasers, then the power must be lodged or recorded in like manner.
Protest. Where any negotiable instrument has been dishonored
it may be protested for non-acceptance or non-payment as the case
may be; but protest is not required, except in the case of foreign bills
of exchange. It is the safer practice to protest in all cases, because
In all cases notice of dishonor is necessary to charge parties secondarily,
liable.
Taxation. Taxes due the State by banks and trust companies are
payable directly into the State treasury on or before the first day of
July succeeding reports by their chief officers required to be made te
auditor of publio accounts, and taxes to counties, cities, towns and
districts are paid at the time fixed by law for payment of like taxes.
Wills. Any person of sound mind and over twenty-one years of
age may make a will. Wills must be in writing with the name ot
the testator subscribed thereto.either by himself or by some other
person in his presence and by his direction. If not wholly written
by the testator the subscription must be made or the will acknowledged
by the testator in the presence of two witnesses, who shall subscribe
their names in the presence of the testator. The will of a person
domiciled out of this State is valid as to personalty, if executed accord­
ing to the law of the domicile; but to be valid as to lands, it must 1m
executed as required by the law of this State. The oounty court
has exclusive original Jurisdiction over the probate of wills.
SYNOPSIS OF

THE LAW S OF LOUISIANA
RELATING TO
BANKING AND COMMERCIAL USAGES

Revised by Messrs. M e b b i c k , G e n s l e b & S c h w a r z ,
Attorneys at Law, New Orleans.
(See Card in Attorneys’ List.)
Accounts. (See Acknowledgments.)
Acknowledgments of deeds executed within the State may bo
made before a judge, notary publio, parish reoorder or his deputy, in
the presence of two witnesses. These witnesses must be over fourteen
years of age. In other States, before a commissioner of Louisiana,
or any officer authorized to take depositions in the State where he
resides, but the official character ot such officer must be properly
verified. A Louisiana commissioner may certify to the official posi­
tion of any public officer in the State for which he is appointed. A
deed to be authentic and to be admissible in a court of iustioe with­
out other proof ot signature, must be acknowledged and signed before
a notary or commissioner of deeds. In other states any oath or
acknowledgment made before a notary public, duly appointed in suoh
states, when certified under the hand and official seal of such notary,
shall have the same force and effect without further proof of the
signature, seal and official character of such notary, as if taken or
made by or before a Louisiana commissioner residing in such State.
Act 140 of 1896. In foreign countries every deed, conveyance, mort­
gage, sale, etc., made or taken before any ambassador, minister,
ehargS d'affaires, secretary of legation, consul-general, consul, viceconsul, or commercial agent, and every acknowledgment, attestation,
•r authentication of any of said instruments, oaths, etc., made by
any of said officers under their official seals and signatures shall have
the full force and effect of an authentic act executed in this State.
No witnesses necessary. Party appearing before any of said officers
need, not be a resident of the place where said officer is located.
Notarial copies of original when deposited in this state in a notary’s
office have full force and effect of authentic copies of acts executed
in this State. [Act 164 of 1898.]

BANKING AND COMMERCIAL LA W S— LOUISIANA

Actions. Commenced by petition setting forth cause of action,
articulately in numbered paragraphs, signed by plaintiff or his attorney
and duly sworn to. Plaintiff must give resident security for costs or
make deposit to cover same if demanded. (See Act 300 of 1914
regulating pleadings and practice.) After filing of petition, defendant
is cited to appear ten days after receipt of citation in District Courts
and Justice or Peace courts outside of city of New Orleans. In city
courts of New Orleans, defendant must appear three days after receipt
of citation. Neither day of service nor day on which answer must
be filed is included in delay. If defendant fails to appear, judgment
by default is rendered against him. In district courts such judgment
is confirmed two judicial days after preliminary entry of default. In
Justice of Peace courts judgment of default is confirmed the same day
as that on which default is entered.
Administration of Estates by ezeoutors, administrators, or
tutors who are ex-officio administrators—also by dative ezeoutors—
where there is no heir present or agent of heir, publlo administrator
takes charge. A non-resident executor of a will must in all cases give
bond; a resident does not unless required by creditors. Administra­
tors and executors of other states must open succession of deceased
la the courts of this State, and be reoognized as such here before they
•an sue or be sued or transfer property in this State. Stock in local
•orporations may be transferred by non-resident, executors, etc.,
without the necessity of securing an order from the local court, but
no transfer can be made until the inheritance tax is adjusted. No
debts can be paid by administrator without authorization of probate
court. The administrator or executor presents to the court an
account or tableau of distribution setting forth the payments and
disbursements he proposes to make. Parties interested are notified
by publication to show cause within ten days why the account so filed
should not be approved. Any party interested may oppose the
account by opposition in writing at any time within the said ten days.
In absence of opposition account is homologated upon production of
satisfactory evidence by administrator of executor, and the funds
ordered distributed in accordance therewith.
Claims against estates should be presented in writing to the admin­
istrator or executor. Should he approve the same in writing, no
further action is required except to see that the claim is placed upon
his account when filed. Should he decline to recognize the claim,
creditor may file suit against succession representative and obtain a
judgment to be paid in ordinary course of administration. If there
is no danger of prescription, creditor may await filing of account and
then oppose same of claim, not included.
Affidavits. (See Acknowledgments.)
Aliens. There is no law excluding them from buying or holding
lands. They are only excluded from voting.
'Arbitration. Agreements to submit to arbitration recognized by
law. Arbitrators must be sworn, otherwise decision is not binding.
State board of arbitration of labor troubles established. [Act 139
ef 1894.1
Arrest for debt may be made on affidavit that the debt is really
due, and that petitioner Verily believes that debtor is about to remove
from the State permanently, without leaving in it sufficient property
to satisfy his demand; and that he does not take his oath with inten­
tion of vexing debtor, but only in order to secure his demand. Debtor
may be discharged by disproving facts; by giving bond, by making
surrender, by delivering to sheriff property sufficient to satisfy
demand. Arrest oi the deDtor only secures his presence to answer
the suit; he cannot be held for the payment of the debt. Minors,
interdicted person and women not subject to arrest for debt.
Assignments and Insolvency. State insolvent laws superseded
by National Bankruptcy act.
Attachment. Writs of attachment issue on application of credi­
tor, under oath, when the debtor resides out of the State; when he
eonceals himself to avoid being cited; when he has mortgaged, assigned
or disposed of, or is about to mortgage, assign, or dispose of his
roperty, rights, or credits, or some part thereof, with Intent to
efraud his creditors or give an unfair preference to some of them;
and when he has converted, or is about to convert, his property into
money or evidences of debt with intent to place it beyond the reach
ef his creditors, or, if debt not due, is about to remove his property
out of the State. Creditor must furnish bond equal to the amount
Maimed to be due, with at least one solvent surety, residing within
the jurisdiction^]of the court, conditioned for payment to any party
injured by Issuance of writ of all damages sustained by him in case
it is decided that the attachment was wrongfully obtained. (Act
No. 7, 1888.) Bond for $250 is sufficient if debtor resides outside of
state but bond may be increased toe amount of claim upon order of
court at demand of debtor. Garnishment may be had as anaccessory
either to a writ of attachment or fieri facias.
Banks. Banking corporations organized under banking laws
adopted In 1855, amended in. 1888. in 1892. and in 1902. Savings,
deposit, and trust companies provided for by Act 150 of year 1888,
amended by Act 95 of 1892, which is now amended by Act 189 of
1902. The number oi persons organizing must be five or more. No
•peoial act of incorporation can be passed. By Act 189 of 1902,
the general banking act of 1855 and the amendatory acts of 1888 and
•f 1892 are amended as follows: 1. Period of time must be fixed
m act not to exceed ninety-nine years. 2. Banks can not nold real
•state for longer time than five years, except such as necessary for
the transaction of their business, or except that held as agent or
trustee. 3. All, managers and directors shall be dtizens of Louisiana.
4. Sate deposits and trust banks without power to issue bank notes,
may be organized under this law with a capital of $50,000 or more,
ef which capital at least $10,000 shall be paid up before commencing
business. In incorporated towns with less than 20,000 inhabitants
must have cash capital of not less than $30,000, which must be paid
up before can commence business. It may be made a receiver,
trustee; assignee or syndic, and execute trusts of every description.
Money or other valuables deposited by married women or minors
may be drawn out without the authority of their husbands or tutors.
Under Act 45 of 1902, banks organized to do a savings, safe deposit
and trust banking business must be composed of more than five
persons, may be organized for not longer than ninety-nine yean,
may not hold real estate for longer period than ten yean, except
such as is held as agent or trustee, or necessary for/transaction of
their business; may accept and exeoute trusts or agencies of all
descriptions, may be appointed by any person or by court executor,
administrator, syndic, receiver, curator, tutor, trustee or assignee.
Capital stock considered as security for faithful performance of duty,
though oourt may require other security, and may require the state
examiner of banks to investigate the affairs and management of
the bank. Such banks can not issue notes and must have a capital
not less than $100,000, which must be paid up in cash. (See Act 121
of 1910, amending Act 45 of 1902 as to capital required in cities of
less than 30,000.) (See also Act 179 of 1902. and amendment thereof,
Act 140 of 1906 and amendment thereof Act 152 of 1910 and amend­
ment thereof Act 96 of 1912.) Act 238 of 1910, amending Act 45
of 1902, provides for branches. Act 112 of 1910 creates a State
Banking Department having supervision over all state banks. Amend­
ed by Act 48 of 1912.
Chattel Mortgages. As provided for by Act 198 of 1918, any
kind of movable property may be mortgaged for debts, for money
loaned, future advances or to guarantee contractural obligations.

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1741

The act of mortgage must be passed before a Notary Public and two
witnesses and must be recorded in Parish where property is situated
and Parish where mortgagor resides in order to affect third persons
without notice. Chattel so mortgaged cannot be transferred from
one parish of the State into another without written consent of
mortgagee.
Collaterals must be delivered to be effectual, Act 9. of 1914
makes it a felony for a customer of bank to wrongfully dispose of
collateral security pledged to bank; Uniform Bills of Lading law
obtains. (Act 94 of 1912.)
Conditional Sale. Act 119 of 19l8 makes lawful a conditional
sale of tank cars providing for retaking of car by conditional vendor
without right of redemption being given to vendee, all payments of
such date of retaking being forfeited.
Conveyances. All agreements affecting real property must be
In writing, and transfers and mortgages, etc., must be recorded In
the place where the property is situated to affect the rights of third
ersons. Deeds are made under private signature or by act passed
efore a notary public in the presence of two witnesses. Both vendor
and vendee sign, though signature of vendee is not essential, as any
act of acceptance will answer. The notary in Parish of Orleans pre­
serves the originals of deeds passed before him and certified copies
given by him are received as evidence in the courts. Every notarial
deed should contain (1) date of act and place where it was passed, (2)
names and surnames and qualities of contracting parties, (3) description
of the property, etc., (4) price of transfer and terms and conditions.
(5) The marital status of all parties must be given. When a married
woman executes a deed she must be authorized by her husband. The
husband acts alone in the sale of community property; the signature
of the wife being unnecessary.
Corporations. Any number of persons, exceeding six, may form
themselves into corporations tor literary, scientific, religious, and
charitable purposes; for works of public improvement, and generally
all works of public utility and advantage; and any number of persons,
not less than three, may form themselves Into a corporation for the
purpose of carrying on mechanical, mining, or manufacturing business,
except distilling or manufacturing intoxicating liquors, with a capital
not less than $5,000 or more than $1,000,000. Any number of per­
sons, not less than three, may form themselves Into a corporation on
complying with the general corporation laws, for the purpose of carry­
ing on any lawful business or enterprise not otherwise specially pro­
vided, for, except stock-jobbing. Fifty per cent of capital stock must
be subscribed before filing articles of incorporation and 50 per cent
of all stock subscribed must be paid in before corporation en­
gages in business and the remainder in twelve months under
penalty of dissolution. The legislature can not pass a special act
conferring corporate powers. Corporation committing a trespass
or damage may be sued at place where it occurred. [Act 22 of
1894.] AU corporations hereafter organized must have their char­
ters, etc., recorded in the office of the secretary of state. [Act
59 to 1898.] (See act 154 of 1902 for formation of corporations for
works of public Improvement.) Act 120 ofl902 provides for organ­
ization, etc. of local and foreign building and loan or homestead
associations. Three or more persons may form a corporation to
carry on any business specified in charter that would be lawful for
any individual to carry on. May carry on any named business or
different branches! of business, whether related or not. Must have
capital of not less than $3,000. [Act 78 of 1904.] No corporation
can declare dividends out of its capital stock, under penalty of for­
feiture of its charter. Meetings of corporations must be held at
domicile (Act 63 6f 1910).
Foreign Corporations may be licensed and taxed by a mode differ­
ent from that provided for home corporations. No domestic or for­
eign corporations shall do any business In this State without having
one or more known places of business and an authorized agent or
agents in the State upon whom process may be served. All corpora­
tions (except mercantile corporations) domiciled out of the State and
doing business in the State in default of filing with the secretary of
state a declaration of the place of its locality or domicile together with
the name of Its agent in the State upon whom service of process may
be made, may be sued upon any cause of action in any parish where
the right of action arises.
Foreign corporations must file in office of secretary of state a written
declaration setting forth and containing the place or locality of its
domicile, the places in the State where It is doing business, and the
name of it^agent or other officer in this State upon whom process may
be served. (Act 54 of 1904 amended by Act 284 of 1908. Act 284
of 1908 amended by Act 243 of 1912. See Act 194 of 1912.)
Act 267 of 1914 relating to corporations repealed several
previous acts and undertakes to embody in one act all essen­
tial details with respect to the organization, power and duties
of trading corporations, foreign and domestic. (As to non­
trading corporations see Act 259 of 1914.)
Courts. Terms and Jurisdiction. In parishes other than Orleans:
Justices’ courts—exclusive jurisdiction up to $50, and concurrent
with the district courts, between $50 and $100. 2. District courts—
concurrent with justices’ courts, between $50 and $100; exclusive for
all civil matters over $100, and in all probate matters and appellate
jurisdiction in all civil matters in justices’ courts. In Orleans parish:
1. City courts—exclusive jurisdiction up to $100. 2. Civil district
courts—exclusive over $100. Justices and city courts open at all
times. In parishes other than Orleans, district courts shall hold con­
tinuous sessions during ten months of the year. In parish of Orleans,
civil district court sits from October 15th to end of June, but shall
remain open on all legal days during the whole year for granting Inter­
locutory orders, issuing writs, trials of rules to quash same, trying
proceedings instituted, ot on appeal therein by a landlord for the
possession ot leased property, partition proceedings, ana for suçh
special probate and Insolvency business, as the court en bano may by
rule determine. On all amounts up to $2,000, inclusive, an appeal
may be taken to the court of appeals, from the city and district courts
respectively, and on all amounts over $2,000, to the state supreme
court. An appeal lies on both law and facts. Appeals from the city
courts shall be tried de novo.

Days of Grace. Abolished.
Depositions. To take testimony ot witness residing out of parish
or State it is necessary to file motion duly sworn to showing non-resi­
dence and materiality of evidence. Written interrogatories are pre­
pared and served on opposite party, or his counsel, who has three days
in which to cross. Commission then issues, directed to some proper
officer, with interrogatories and cross interrogatories annexed, who
must cause witness to appear before nim to answer under oath ths
direct and the cross interrogatories. He should reduce answer to
writing, read same to witness and cause witness to sign same. The
officer then prepares a process verbal of the whole, attaches it to the
commission, Interrogatories, etc., and should return same to the court
issuing the commission within the time fixed therein for taking the
deposition. The deposition of a fugitive from Justice is not admissible
in evidence. (Also see Act 176 of 1910.) *
Descent. If one dies leaving no descendants, but a father and
mother and a brother and sister, or descendants ot these last, the
succession is divided into two equal parts, one goes to father and
mother, the other to brothers and sisters or their descendants. If
either father or mother of deceased dies before him, the portion which
would have been inherited by such deceased parent goes to the

1742

BANKING AND COMMERCIAL L A W S— LOUISIANA

b ro th e rs a n d sisters o f th e d e ce a se d , o r th e ir d e sc e n d a n ts.
I f d eceased
le ft n e ith e r d esc e n d a n ts n o r b ro th e rs n o r sisters, n o r d e sc e n d a n ts fr o m
th em , 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 , t h e y in h erit
t o th e e x c lu s io n o f all co lla te r a ls . J.t a sc e n d a n ts in p a te r n a l and
m a tern a l lines a re a ll o f th e sam e d e gre e , th e e s ta te is d iv id e d Into
t w o p a rts, o n e go e s t o a sc e n d a n ts o n th e p a te r n a l a n d th e o t h e r t o
a sc en d a n ts o n t h e m a te rn a l sid e. I f th e re is in t h e n earest d e gre e
b u t o n e a sc en d a n t in th e t w o lines s u ch a sc e n d a n t e xclu d e s all o th e r
a scen d an ts o f a m o r e r e m o te degree. I f 'o n e d ies le a v in g n o d e sc e n ­
d a n ts, a n d h is fa th e r a n d m o th e r s u rv iv e , h is b ro th e rs a n d sisters,
o r th eir d escen d a n ts, ta k e h a lf o f h is estate. I f th e fa th e r o r m o th e r
o n ly s u r v iv e , b ro th e rs a n d sisters, o r th eir d e sce n d a n ts, ta k e th re e fou r th s. I f o n e d ies le a v in g n o d e sce n d a n ts n o r fa th e r n o r m o th e r,
h is b roth ers and sisters, o r th e ir d e sce n d a n ts, ta k e all th e esta te.
T h e p a rtitio n o f th e h a lf, t h e th re e -fo u r th s, o r t h e w h o le o f a su c­
cession fa llin g t o b r o th e r x a n d sisters as a b o fe s e t fo r t h , is m a d e equ al
If t h e y are o f th e s am e m arriage, i f o f d ifferen t m arriages th e s u ccession
is e q u a lly d iv id e d b e tw e e n th e p a tern a l a n d m ate rn al lines o f th e
d ecea sed . I f d e ce a se d d ie d w ith o u t d e sce n d a n ts, le a v in g n eith er
b roth ers n o r sisters, n o r d e sc e n d a n ts fr o m th e m , n o r m o th e r n o r
fa th er, n o r a sc en d a n ts in th e /p a te rn a l o r m a te rn a l lines, h is su cce ssio n
passes t o h is o th e r c o lla te r a l re la tio n s, t h e o n e n earest in degree
ex c lu d in g th e o th e rs. W h e n th e d e ce a se d h as le ft n e ith e r law ful
d escen d a n ts n o r la w fu l a sce n d an ts, n o r c o lla te r a l rela tion s, th è law
ca lls t o his in h e rita n ce e ith er th e Surviving h u sb a n d o r w ife, o r his
o r h e r n a tu ra l ch ild ren , o r th e S tate. I f n a tu ra l m o th e r le ft n o
la w fu l ch ild ren o r d e sce n d a n ts, h er n a tu ra l ch ild re n , a ck n o w le d g e d
b y her, in h erit t o th e e xclu sion o f h er fa th e r a n d m o th e r a n d o th e r
a scen d an ts o r co lla te ra ls o f la w fu l k in d re d . N a tu ra l ch ild ren inherit
fr o m th eir n a tu ra l fa th e r, w h o h a s a ck n o w le d g e d th em , w h en h e has
left n o d escen d a n ts n o r a sce n d an ts, n o r c o lla te r a l rela tion s, n o r
s u rv iv in g w ife, a n d to \ th e ex c lu sio n o n ly o f th e S tate. D o n a tio n s
in ter v iv o s o r m o rtis ca u sa c a n n o t e x c e e d tw o -th ir d s o f th e p r o p e r ty
o f th e d isp oser i f h e le a v e a t h is d e ce a se a le g itim a te ch ild , o n e -h a lf
i f h e lea v es t w o ch ild re n , a n d o n e -th ird i f h e le a ve s th re e o r m o re .
A n in h erita n ce ta x is le v ie d u p o n all in h erita n ces, lega cies a n d d o n a ­
tion s, p r o v id e d n o d ir e c t in h e rita n ce o r d o n a tio n t o a n a sc e n d a n t o r
d e sc e n d a n t b e lo w $ 10,000 shall b e ta x e d . T a x is 2 p e r c e n t o n d ire ct
in h erita n ces a n d d o n a tio n s t o a sc e n d a n ts o r d e sc e n d a n ts o r s u rv iv in g
w ife o r h u sb a n d a n d 5 p er c e n t f o r c o lla te r a l in h e rita n ce s a n d d o n a tio n s
t o colla tera ls o r stran gers. B e q u e sts t o e d u ca tio n a l, religiou s o r
ch a r ita b le in s titu tio n s a re e x e m p t. In h e r ita n c e ta x n o t d u e w h en
p r o p e r ty in h erite d , b e q u e a th e d o r d o n a te d s h a ll h a v e b o r n e its ju s t
p r o p o r t io n o f taxes p rio r t o tim e o f s u ch d o n a tio n , b e q u e st, o r in h e rit­
a n ce. R . C . C . 915 a m e n d e d t o rea d " I n a ll cases w h en e ith e r hu s­
b a n d o r w ife s h a ll , d ie le a v in g n o d e sce n d a n ts, n o r a scen d an ts and
w ith o u t h a v in g d isp o s e d b y la st w ill a n d te sta m e n t o f h is 'o r h e r share
in th e c o m m u n it y p r o p e r t y , s u ch u n d is p o se d o f sh a re shall b e in h erited
b y t h e s u r v iv o r in fu ll o w n e r s h ip .”
(A c t 57 o f 1 910.) ?
D iv o r c e .
(S ee S e p a ra tio n fr o m B e d a n d B o a r d .)

Dower. (See Married Women.) '

E m p lo y e r s L ia b ilit y A c t .
T h e r e is a gen era l E m p lo y e r s L ia b ility
A c t in t h e S ta te setting, fo r t h sp e c ia l c o m p e n s a tio n f o r v a rio u s in ju ries.

Execution. Property taken under a writ of fieri facias, must be
advertised and appraised, and can not be sold for less than two-thirds
of the appraised value, until it has been re-advertised. Advertise­
ments of movables three times in ten days—of real estate once a
week for thirty days. If two-thirds of appraised value is not bid,
property must be re-advertised for fifteen days, and sold on a oredlt
for twelve months for whatever it will bring. There is no redemption
of property sold under execution or mortgage. No stay of execution
is given except on appeal, and execution may Issue at any time after
the delay for appealing suspensively has expired. Act 113 of 190ft
authorizes sheriffs and constables to put purchaser of seized property
In possession.
Exemptions. To head of family, real éstate if owned and occupied
as a residence, together with certain furniture, stock, implements,
provisions, etc.; the property not to exceed $2.000, and orovided the
person claiming the benefit of the homestead execute a written declara­
tion. of homestead (Acts 1880, No. 114), and no exemption if wife
has separate property worth over $2,000. No registry required In
parishes other than Orleans. (Operative Jan. 1, 1899.) Widow or
minor children surviving is entitled to $1,000 out of deceased hus­
band's estate, if in necessitous circumstances, by preference over
even a first-mortgage creditor. Sheriff or constable can not seize
linen and clothes of debtor or his wife, nor his bed, nor those of his
family, nor his arms and military accoutrements, nor tools hnd Instru­
ments and boohs, sewing machines necessary for the exercise of his
or her calling, trade, or profession, by which he makes a living, the
right of personal servitude, of use and habitation, of usufruct to the
estate of a minor child, the income of total property, money due for
salary of an officer, wages or recompense for personal service (laborers’
wages) cooking stove, plates, etc., family portraits, musical Instru­
ments played on by family. (Acts 1876. No. 79.)
Fraud vitiates all contracts. Action barred by one year limitation
to annual sale on account of fraud. : For fraud on part of purchasers
of goods see Act 114 of 1912 amending Act 94 of 1896.
Garnishment. Wages earned out of this State and payable out
of this State, shall be exempt from attachment or garnishment in all
oases where cause of action arose out of this State, and it shall be the
duty of garnishees in suoh cases to plead such exemption unless the
defendant is actually served with process. [Act 165 of 1904.] (See
Attachment.)
H o lid a y s .
S u n d a ys, J a n u a ry 1st, J a n u a ry 8 th , F e b r u a r y 22d ,
G o o d F r id a y , J u n e 3 rd . t o b e k n o w n as C o n fe d e r a te M e m o r ia l D a y ,
J u ly 4 th , t h e first M o n d a y Of S e p te m b e r, t o b e k n o w n as L a b o r D a y ,
O c to b e r 12th, C h ris to p h e r C o lu m b u s D a y , N o v e m b e r 1st, T h a n k s ­
g iv in g D a y , as d e sig n a te d b y t h e P r e s id e n t o f t h e U n ite d S tates,
D e c e m b e r 2 5 th , a n d all gen era l e le c tio n d a y s , w h e th e r P re s id e n tia l,
C o n g r e ss io n a l, S ta te , m u n icip a l; o r p a r o c h ia l, in th e lo ca litie s w h ere
sa id e le c tio n s are h e ld ; a n d in t h e P a rish es o f O rlea n s, S t. B e rn a rd ,
J efferson , St. C h a rles, a n d S t. J o h n t h e B a p t is t , M a r d i G ras, a n d also
in citie s a n d to w n s w h e n t h e p o p u la tio n s h a ll e x c e e d 10,000, a n d in
th e P a rish es o f St. B e rn a rd , J e ffe rso n , S t. C h a rle s ,a n d S t. J o h n th e
B a p tis t e v e r y S a tu r d a y fr o m t w e lv e o ’ c lo c k n o o n u n til t w e lv e o ’ c lo c k
m id n ig h t, t o b e k n o w n as a h a lf h o lid a y ; a n d in a ll citie s a n d t o w n s
w h o se p o p u la tio n e x c e e d .10,000, w h e n e v e r J a n u a r y 1st, J a n u a r y 8 th ,
F e b r u a r y 2 2 d , J u n e 3 d , J u ly 4 th , N o v e m b e r , 1st, D e c e m b e r 2 5 t h sh all
fa ll o n a S u n d a y t h e s u c c e e d in g d a y sh a ll b e a le ga l h o lid a y .

Husband and Wife. (See Married.Women.)
Interest. Legal rate is 5 per cent, but 8 per cent may be agreed
upon in writing. If higher than 8 per cent Is charged, it is reducible
to 8 per cent. If’maid, it may be sued for and recovered within two
years.
Judgm ents recorded in the office of the parish recorder become
mortgages from date of record upon all real estate of the debtor, and
may be thus recorded in any parish where debtor owns real estate.
They are valid for ten years, when they must be renewed.
Liens or Privileges. The following have special privileges, viz.:
1. Lessor’s privilege. 2. Privilege of the oredltor on the thing
pledged. 3. Privilege of a depositor on the price of a thing deposited.
4. Privilege for expenses incurred in preserving thing. 5. Privilege
of the vendor of movable effeots so long as they are in the possession


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Federal Reserve Bank of St. Louis

o f th e v e n d e e . 8. P riv ile g e o f th e in n k e e p e r o n th e e ffe cts o f the
tra veler. P riv ile g e s restin g u p o n im m o v a b le s are as fo llo w s , viz.;
1. T h e v e n d o r o n th e es ta te b y h im s o ld , fo r th e p a y m e n t o f the
p rice o r so m uch- o f it as is u n p a id , w h e th e r it w as s o ld o n o r w ith ou t
a cr e d it,
2. A r c h ite c ts , u n d e rta k e rs, b rick la y e rs , p a in te rs, m aster
b u ild ers, c o n tr a c to r s , s u b -c o n tr a c to r s , jo u r n e y m e n , la b o r e rs, cajrtm en, a n d o th e r w o rk m e n e m p lo y e d in c o n s tr u c tin g , re b u ild in g , or
rep a irin g h ou ses, b u ild in g s , o r m a k in g o th e r w o rk s. 3. T h o s e who
h a v e s u p p lie d t h e o w n e r o r o t h e r p e rs o n e m p lo y e d b y th e ow ner,
his a g e n t, o r s u b -c o n t r a c t o r , w ith m ateria ls o f a n y k in d fo r th e con ­
s tr u c tio n o r re p a ir o f an e d ific e o r o t h e r w o r k , w h e n s u oh m aterials
h a v e be e n u sed in t h e e re c tio n o r rep a ir o f su ch h o u se s o r o t h e r w orks.
[A rt. 3252.] P riv ile g e o n cr o p s t o b e re c o rd e d ( A c t o f 1890.)
The
v e n d o r o f a n a gric u ltu ra l p r o d u c t o f t h e U n ite d S ta te s has a fiv e d a ys’
p rivile ge fo r u n p a id p u rch a se p rice in p r e fe re n ce t o a ll o th e rs . P rivi­
lege g r a n te d e m p lo y e s In saw m ills, e t c .
( A c t 145 o f 1888, am en ded
b y A c t 52 o f 1910 a n d A c t 23 o f 1912. W id o w arid ch ild ren left in
n e cessitou s circ u m sta n ce s are e n title d t o an a m o u n t in h u s b a n d ’s or
fa th e r ’s s u cce s sio n s u fficien t t o m ak e $1,0 00 in clu s iv e o f p rop erty
a lre a d y p ossessed ” b y th e m . T h is p rivile ge p rim es all o th e rs except
v e n d o r ’s prive le g e , t h a t fo r expen ses o f sellin g p r o p e r ty a n d con ­
v e n tio n a l m o rtg a g e s re p re se n tin g m o n e y a c tu a lly lo a n e d fo r n o t less
th a n o n e y e a r a t n o t e xc e e d in g 6 p e r c e n t fo r in terest, d is c o u n t and
ch arges.
L im it a tio n s
to
S u i t s . P r e s c r ip tio n — A c c o u n ts
s ta te d
and
a c k n o w le d g e d In w r itin g a re p re s crib e d o n ly b y te n yea rs. [A c t of
1888.] P e rs o n a l a c tio n s o n e y e a r : A c t io n fo r to rts o f a ll k in d s ; for
In ju ry t o 6 r n o n -d e liv e r y o f m e rch a n d is e s h ip p e d o n vessels; f o r fees
o f ju s t ic e , n o t a r y , o r c o n s t a b le ; f o r in n k e e p e rs ’ a c c o u n t s ; f o r a cco u n ts
o f re ta ile rs o f liq u o r s ; f o r w a g es o f la b o r e rs o r s a ilo rs ; fo r fr e ig h t; and
fo r t u itio n b y m o n th . T h r e e y e a r s : A c t io n fo r arrea ra ges o f rent
ch arge s, o r h ire o f m o v a b le s o r im m o v a b le s o r m o n e y le n t ; f o r salaries
o f o ve rse e rs, clerk s, o r t u itio n b y q u a rte r o r y e a r ; f o r fees o f p h y sicia n s ,
a p o th e ca rie s , a tto r n e y s , sheriffs, olerks, a n d r e c o rd e rs ; o n open
a c c o u n ts o f m e rch a n ts , w h e th e r w h o le s a le o r re ta il, a n d o th e rs . F ou r
y e a rs : A c t io n s b y m in o rs a ga in s t th e ir tu to rs , c o u n tin g fo u r years
fr o m m a jo r it y . F iv e y e a r s : A c t io n .o n b ills o f e x c h a n g e o r p rom is­
s o r y n o te s , c o u n tin g fr o m m a tu r ity , a n d f o r n u llit y o f c o n tr a c ts or
w ills; f o r re c is io n o f p a r titio n s ; t o set a sid e p u b lic an d ju d ic ia l Bales
fo r in fo rm a litie s. T e n y e a r s : A ll o th e r a c t io n s ; th e r ig h t t o a usu­
fr u c t o r s e r v it u d e ; a ll ju d g m e n ts , w h e th e r re n d e r e d w ith in o r w ith ou t
tn e S ta te , b u t Ju d gm en ts m a y b e r e v iv e d b e fo r e la p s e o f te n years,
a n d a re t h e n g o o d f o r te n ye a rs fr o m d a te o f re v iv a l. P re s crip tion
d o e s n o t ru n a g a in s t m in o rs o r p erson s u n d e r I n te rd ictio n . H u sb an d
a n d w ife ca n n o t p re s crib e a g a in s t e a ch o th e r.
L im it e d P a r tn e r s h ip .
(S ee P a rtn e rs h ip .)
M a r r ie d W o m e n .
A c t 94 Of th e L e g is la tiv e S ession o f 1916 p r o ­
vid es t h a t a m a r rie d w o m a n o f this S ta te shall b e c o m p e t e n t t o c o n ­
tra ct a n d b in d a n d o b lig a te h e r s e lf p e r s o n a lly a n d w ith re fe re n ce t o
her s e p a ra te a n d p a ra p h e rn a l p r o p e r t y , a n d t o a p p e a r in C o u r t and
t o sue a n d b e s u e d t o th e s a m e e x te n t a n d in t h e s am e m an n er as
th o u g h sh e w ere a fe m m e s o le ; p r o v id e d t h a t n o t h in g h erein c o n ­
ta in e d s h a ll b e d e e m e d o r co n s tr u e d t o a ffe c t in a n y w a y th e s ta tu tes
o f th is S tate, esta b lis h in g a n d re g u la tin g th e m a trim o n ia l c o m m u n it y
o f a c q u e ts a n d ga in s, a n d p re s crib in g w h a t shall b e d e e m e d c o m ­
m u n it y a n d w h a t b e d e e m e d s e p a ra te p r o p e r t y o f th e o th e r s pou se.
R e v e n u e s o f aH se pa ra te p r o p e r t y a d m in is te re d b y th e h u s b a n d , a n d
all p r o p e r t y a cq u ire d b y e ith er h u sb a n d o r w ife a fte r m arriage, ex c e p t
b y d o n a t io n o r in h e rita n ce c o n s titu te p a rt o f c o m m u n ity , unless
b o u g h t w ith th e se pa ra te m ean s o f e ith er a n d as a sep a ra te a cq u i­
s itio n . W ife has n o d o w e r in her h u s b a n d ’s real esta te. T h e w ife
c a n h a v e n o c la im u p o n th e p r o p e r ty o f th e h u sb a n d t o th e p re j­
u d ic e o f th ird pa rties, unless re co rd e d . W h e r e o n e o f t h e spou ses
is a g e n t fo r th e o th e r, h e o r sh e m a y b e w itness fo r th e o t h e r in,
a m a tte r c o n n e c te d w it h t h a t tra n s a c tio n , o th e rw is e h u s b a n d o r w ife
c o n n o t t e s t ify in f a v o r o r a ga in st th e o th e r e v e n th o u g h b o t h litig an ts
c o n se n t.
A fte r d iss o lu tio n o f m arriag e b y d e a th o r d iv o r c e t h e sur­
v iv o r is e n title d t o o n e -h a lf o f all p r o p e r t y re m a in in g a fte r p a y m e n t
o f d e b ts , a c q u ir e d d u rin g m arriag e , a n d in ca s e o f d e a th , th e u su fru ct
o f th e o th e r h a lf, un less th is h a lf is d is p o s e d o f b y w ill o f d ecea sed
s pou se. W ife c a n n o t b e a w itn ess t o h u s b a n d ’s w ill.
(S ee “ L ien s
an d P r iv ile g e s .” )

Monopolies or Trusts are regulated and rights are given against
them similar to those existing under Federal Law. The state author­
ities may take action and the individual may recover threefold damages
sustained. See House Bills Nos. 7 and o, extra session'1915, approved
June 10, 1915.
M o r t g a g e s ca n b e fo r e c lo s e d a t a n y t im e a fte r m a t u r it y o f 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 t a in in g J u d g m e n t th e r e o n , o r
if t h e a c t im p o r ts a c o n fe s s io n o f ju d g m e n t in f a v o r o f t h e h o ld e r, he
ca n a p p ly t o th e c o u r t f o r a n o r d e r d ir e c tin g t h e sh e riff t o s eize -and
sell th e p r o p e r t y . A ll m o rtg a g e s m u s t b e re c o r d e d b e fo r e t h e y ca n
h a v e a n y e ffe c t a s a g a in s t th ird p a rtie s . T ru st d e e d s a re n o t legal,
a n d ch a tte l m o rtg a g e s a re u n k n o w n t o th e law s o f L o u is ia n a e x c e p t
as s ta te d u n d e r h e a d in g “ ch a tte l m o r tg a g e s .”
T h e r e is n o red e m p ­
tio n o f .p r o p e r t y s o ld u n d e r m o rtg a g e . A ll t a c it m o rtg a g e s h a v e
been a b o lis h e d s in ce 1870. I n m a k in g sales o r g iv in g a m o r tg a g e
u p o n h is p r o p e r t y , it Is n o t n e ce ssary fo r th e h u sb a n d t o ot>tain the
sig n a tu re o f th e w ife . A m o r tg a g e re su ltin g fr o m re c o r d in g a ju d g m e n t
ca n n o t h a v e t h a t e ffe c t u n til a fte r a d jo u r n m e n t o f co u r t. [A c t 1888.]
Lessees o b lig a te d t o e re c t bu ild in gs, e t c ., u p o n lea sed p r o p e r t y , ca n
m o rtg a g e t h e lease, to g e th e r w ith t h e im p r o v e m e n ts , e tc .
( A c t 21
o f 1 908.) . L ea ses a n d c o n tr a c ts t o e x p lo r e fo r. o il, ga s a n d m in erals
m a y b e m o r tg a g e d ( A c t 232 o f 1910).

Negotiable Instruments, “Negotiable Instrument Act” (No.
04 of 1904) changes in many respects the laws formerly applicable to
bills and notes. Under it, days of grace, which formerly were custom­
ary, are abolished. Instruments are payable to bearer if made payable
to the order of a fictitious or non-existing person, when such fact is
known to the one making it so payable; when name of payee does
not purport to be name of any person; or when the only or last indorse­
ment is in blank. When there is a discrepancy between the words
and the figures of an instrument, the sum,denoted by the words is
the sum payable. Two or more persons signing instrument contain­
ing words, “ I promise to pay,” are jointly and severally liable thereon.
Presentment for payment is unnecessary to bind party primarily
liable, but is necessary to charge drawer or indorser. Notice of dis­
honor must be given to drawer and indorser when instrument has
been dishonored by non-acceptance or non-payment, otherwise they
are discharged. A bill of exchange does not operate an assignment
of funds in hands of drawee available for payment thereof, and drawee
Is not liable till he accepts same. Holder may require acceptance
to be written on bill, and if refused may treat the bill as dishonored.
An acceptance written on paper other than a bill, and an uncondi­
tional written promise to accept a bill before it is drawn, binds the
acceptor only in favor of a purchaser for value on faith thereof.
Drawee has twenty-four hours to decide whether he will accept or
not. A drawee who destroys a bill presented to him for acceptance,
or who fails to return the bill within twenty-four hours, Is deemed to
have accepted the same. Where a signature is so placed upon a
negotiable instrument that it is not clear in what capacity the person
making same Intended to sign, he is deemed an Indorser. Foreign
bills must be protested for non-acceptance or non-payment. Where
a bill does not appear on its face to be a foreign bul, protest thereof
in ease of dishonor is unnecessary. A check must be presented for
payment within a reasonable time or drawer will be discharged from

BANKING AND COMMERCIAL LA W S— MAINE

any loss caused by delay. Bank Is not liable to holder of a check
until It accepts or certifies same. When the last day to do an act
required or permitted to be done under the act falls on a Sunday or
legal holiday, it may be done on the next succeeding secular or busi­
ness day. When day of maturity falls on a Sunday or a holiday, the
Instrument Is payable on next succeeding business day. Instruments
falling due on Saturday are to be presented for payment on next
succeeding business day. except that instruments payable on demand
may, at option of holder, be presented for payment before 12 o'clock
noon on Saturday when that entire day is not a holiday. If the day
or days next succeeding the protest for non-acceptance or non-pay­
ment shall be days of public rest or legal holidays or legal half holi­
days, then the day next following shall be computed as the first day
after the protest. “Service of citation shall not be waived, nor judg­
ment confessed, by any document under private signature executed
prior to the maturity of the obligation sued on.” [Article 91, Con­
stitution 1898.] Acceptance must be in writing and signed by
drawee. It must not express that drawee will perform his promises
by any other means than payment of money. (Act 189 of 1908.)
Partnership, Limited and Special. Stipulations that one shall
participate in the profits and shall not contribute to losses Is void,
both as regards partners and third persons. Partnerships are divided
as to their object Into commercial and ordinary partnerships. Com­
mercial partnerships are such as are formed: 1. For the purchase
of any personal property, and the sale thereof either In the same
state or changed by manufacture. 2. For buying or selling any
personal property whatever, as factors or brokers. 3. For carrying
personal property for hire, in ships or other vessels. Ordinary part­
nerships are all such as are not commercial. There is also a species
of partnership which may be incorporated with either of the other
kinds, called partnership in commendam. It Is formed by contract,
by which one person or partnership agrees to furnish another person
or partnership a certain amount, either in property or money, to be
employed by the person or partnership to whom it Is furnished. In
his or their own name or firm, on condition, of receiving a share In
the profits, in the proportion determined by the contract, and of being
liable to losses and expenses to the amount furnished and no more.
Partner In commendam cannot bind other partners by his act. Part­
nership In commendam must be made in writing: must express amount
furnished or agreed to be furnished; the proportion of profits which
partner Is to receive and expensesiand loses he Is to bear; must state
whether it be received in goods or money, etc.: must be signed by
parties in presence of at least one witness and recorded In full within
six days in mortgage office. If branch houses are established the con­
tract must be recorded In parish where branches are located. If
partner in commendam allow his name to be used, or If he take any
part In the business of the partnership, he will be liable as a general
partner. Ordinary partners are not bound In solldo for debts of
partnership, and no one of them can bind his partners unless they
have given him power to do so; each is bound for his share of. the debt
In proportion to the number of partners. Commercial partners are
each liable for the entire debts of the partnership.
.Powers of Attorney. May be written or oral. May be either
general for all affairs or special for one affair only. One conceived In
general terms confers only power of administration; to sell mortgage
or do any other act of ownership, the power must be express and
special.
Probate Law. There is no special probate court. District courts
are vested with probate jurisdiction. Successions are opened upon
petition of Interested persons in the parish where the deceased resided,
if he had a domicile or fixed place of residence in the state; In the
parish where he left his landed property. If he had neither domicile
nor place of residence in the state; or in the parish In which it appears
from the inventory -tha* his principal property was situated, If he
left property in several parishes: in the parish where he died. If he
had no certain domicile nor any fixed property. If presumptive; heir
does not begin legal proceedings to settle succession within ten days
after death of "de cujus,” creditors may demand that he state whether
he accepts or rejects succession, or if no heirs appear, that a curator
ad hoc.be appointed to settle the estate. TJje judge appoints an
administrator when deceased leaves no will. Administrators must
render annual accounts, and are allowed 2 1-2 per cent on the inven­
tory as commissions. Attorneys at law are appointed to represent
absent heirs. Properties acquired during marriage are presumed to
be community property, and surviving spouse is owner of one-half.
When either husband or wife dies, leaving no ascendants or descend­
ants, and without having disposed by will of his or her share in the
community, the survivor holds such share In usufruct during his or
her natural life. (See Successions.)
Protest. (See Negotiable Instruments.)
Separation from Bed and Board. May be claimed reciprocally
for: 1. Adultery. 2. When spouse Condemned to infamous pun­
ishment. 3. Habitual intemperance, excesses, cruel treatment, or
outrages, when such renders living together Insupportable. 4. Public
defamation of one spouse by the other. 5. Abandonment. 6.
Attempt of one spouse against life of other. 7. When one spouse
charged with Infamous offense actually flees from justice.
Judgment of Divorce. “ A vinculo matrimonii” can be ¡obtained
immediately for first two causes. For other causes it is necessary
first to obtain judgment of separation “ a mensa et thoro.” After
judgment of separation from bed and board, if there has been no
reconciliation, party in whose favor judgment iS*rendered can obtain
final divorce one year after finality of judgment of separation. Party
against whom judgment is rendered must wait two years. When
marriage is celebrated outside of state parties cannot obtain divorce in _
state on grounds occurring outside of state.
Taxes. Taxes on real estate cannot be enforced until the expira­
tion of the year for which they are levied and after legal notices to
delinquents and advertisement. Lands sold for taxes are redeemable
within one year, by the owner, his agent, or heirs, or any creditor,
on payment of the purchase money, with 20 per cent Interest and
costs, and all subsequent taxes paid. Lands sold tor taxes due prior
to 1880 are not redeemable. State taxes are 8 mills on the dollar,
and parish taxes not exceeding ten mills; city of New Orleans tax
22 mills on the dollar. Delinquent state taxes bear interest at 2 per
cent a mohth, city taxes, 10 per cent a year.
Wills. There are four different kinds of wills, viz.: The olo­
graphic, nuncupative by public act, nuncupative by private act, apd
mystic (or sealed) will. The olographio will must be wholly written,
dated, and signed by the testator, and may be made within or with­
out the State. Nuncupative, will by public act as written by a
notary in presence of three witnesses, over the age of 18 years com­
plete, not Insane, deaf, dumb or blind, residing In the place where
will Is executed, or five witnesses not residents of the place, at the
dictation of the testator. Nuncupative will by private act and mystic
wills are subject to many formalities which may be best obtained by
reference to Civil Code Arts, 1581-1587 both inclusive. All persons
of sound mind over sixteen years of age may dispose of their property
by will. Wills executed without the. state given force and effect
provided same be in writing and subscribed by testator and follows
form of-place where executed, or of testator’s domicile.' (See act 176
of 1912.)

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1743

SYNOPSIS OF

THE LAWS OF MAINE
RELATING TO
BANKING AND COMMERCIAL USAGES

Revised b y S y d n e y B. L a b b a b e e ,
Attorney at Law, Portland.
\
, (See Card in Attorneys’ List.) \
' Acknowledgments. (See Deeds.)
Actions. At law begun by writ, under common law practice, but
containing declaration. Suits in equity are begun by bill of comlaint, filed with clerk of court and subpeena issued by him, or may
e inserted in writ of attachment and served by copy of bill and writ.
On motion non-resident plaintiffs required to give security for costs.
Administration of Estate. (See Estates of Deceased Persons.)
Affidavits. Affidavits may be made before a notary public or
justice of the peace. In some court matters authority of magistrate
must be proved by certificate of clerk of a court of record..
Aliens. Aliens may hold and convey real estate and personal
property. Wills of aliens may be proved and allowed in this State.
Widow of a citizen of United States who was an alien when she married
him has right of descent in his estate (but see Married Women).
Arbitration. Judge of probate court may authorize executors or
administrators to adjust 'by arbitration claims for or against the
estates represented by them. All controversies which may be the
subject of personal action may be submitted, by the parties, to referees
for arbitration. Majority of referees may make report to Supreme
or Superior Courts.
Arrest. (See Executions.) In actions ex delicto, on mesne proc­
ess and execution, as of course without affidavit or order; in actions
ex contractu, on mesne process, upon affidavit of the creditor, his
agent, or attorney, that he has reason to believe and does believe
that the debtor Is about to depart and reside beyond the limits of
the State and carry with him means of his own more than are neces­
sary for his immediate support, and that at least $10 is due on the
claim; on execution, only after supplementary proceedings and fraud
proven, but if contract judgment or action existing March 17, 1887,
arrest on execution. Debtors arrested on mesne process or execution
may disclose, give up property not exempt from attachment and be
discharged from arrest, or may give bond and disclose according to Its
terms. No arrest in actions ex contractu for less than $10, and none
of married women in civil actions.
Assignments. Common law assignments for the benefit of
creditors may be made, and after four months will be good against
bankruptcy proceedings. Assignments of wages must be recorded
In town clerk’s office. •
Attachment. All property not exempt attachable rfh mesne proc­
ess as of course without affidavit; security for costs .by indorser of
writ only If creditor is non-resident; lien by attachments In the order
In which they are made continue for thirty days after judgment
(extended where execution is delayed, appeal from taxation of costs
is taken, or decision of law court certified down in vacation), within
which time levy may be made. Personal property may be appraised
and sold on mesne process to avoid expense, depreciation or loss,
on request of either party and proceeds held by officer in lieu of the
property; foreign attachment (garnishment), known as trustee process,
attacnes property by or debt due from trustee unless: 1. Due on
negotiable paper. 2. Money collected on process by officer. 3.
In hands of public officer. 4. Due on contingency. 5. Trustee
liable to execution on same. 6. Twenty dollars wages, for personal
labor of the debtor, wife or minor child within one month, and $10
exempt in all cases. 7. In certain cases money due on life and
accident policies, and from fraternal beneficiary associations. (See
Creditors’ Bills.)
'I Banks. Savings bank business and discount banking permitted
only under special charter, and under state supervision. Trust com­
panies may be organized under general statutes on obtaining approval
of state bank examiner. General statutes relating to discount bank­
ing repealed by Laws 1903, C./166. Foreign banking associations hav­
ing a branch here pay a tax of three-fourths of one per cent per annum
on the amount of business done in this State. Savings banks have
no capital, and do business only for the benefit of depositors, under
statute regulations restricting investments, requiring reports under
oath and examinations by bank examiner. Must not pay over 2 1-2
per cent dividend semi-annually. Franchise tax is five-eighths per
cent, regulated to favor home investments. Use of the words “bank,”
"trust company,” and similar words in designating a business, for­
bidden, except by corporations organized as above or under laws of
United States. Corporations, if licensed by bank commissioner, may
receive savings deposits from their employees. Dealers in urities
must be registered with bank commissioner and are subject to certain
regulations.
Collaterals. (See Mortgages.)
Conditional Sales, Consignments. No agreement that personal
property bargained and delivered to another shall remain the property
of the seller until paid for, is valid unless in writing and signed by the
person to be bound. Such agreement, in whatever form It may be,
is not valid except as between original parties, unless recorded in the
office of the clerk of the town in which the purchaser resides at the
time of the purchase. This does not apply to goods consigned for
saleConveyances. (See Deeds.)
Corporations. Three or more persons may form a corporation to
carry on any lawful business excepting banking, insurance, construct­
ing and operating railroads, savings-banks, trust companies, or corporations Intended to derive profits from the loan or use of money,
and safe deposit companies, but corporations may be formed under
the general law for the construction and operation of railroads outside
the State of Maine., Corporations for other purposes, excepting for
municipal purposes,.and where the objects of the corporation can not
be attained without'special acts, are also formed under general laws.
Organization becomes void unless corporation begins business within
two years. Corporation may capitalize to an unlimited amount and
may increase or decrease the amount of their capital or the par value
of the shares. No portion of capital is required to be paid in; stock
may be issued for property or for services and in absenoe of fraud
the judgment of the directors as to the value of such property or
services is conclusive- the stock thereupon becoming fully paid.
Only original subscribers and takers of stock are liable on same to
extent of unpaid par value and then only for debts contracted during
their ownership of stock, and action to enforce such liability must be
commenced within two years and can be maintained ohly by a judg­
ment creditor of the corporation who shall have begun proceedings
to obtain such judgment against the corporation during the owner-

1744

BANKING AND COMMERCIAL L A W S— MAINE

ship of such stock or within one year after its transfer by such stock­
holder is recorded on the corporation books. Directors must be
stockholders or members of another corporation which Is a stockholder.
If corporation falls for six months to elect directors, court may appoint.
Corporations must pay to the State upon organization, a fee as fol­
lows: Where the capital stock is $10,000 or less, $10; exceeding
$10,000 and up through $500,000, $50; above $500,000, $10 for every
$100,000 of capital. Other fees for organization are: attorneygeneral's fee $5, register of deeds $5, secretary of state $5. The
annual franchise tax is as follows: $5 provided authorized capital
does not exceed $5.0,000; exceeding $50,000 and up through $200,000,
$10; .exceeding $200,000 and up through $500,000, $50; exceeding
$500,000 and up through $1,000,000, $75; and the further sum of
$50 per $1,000,000 or any part thereof in excess of $1,000,000. Cor­
porations which have suspended business temporarily and have been
excused from filing returns of amount of capital stock, etc., are not
llablfi for franchise tax. Meetings of stockholders must be held within
the State. Clerk must be resident and keep stockholders’ records in
the State. His records are open to Inspection by stockholders but
not by mere creditors. With the exception of banking corporations
no public reports are required except one to the secretary of state
showing names and residences of officers and amount of capital stock.
Delivery of certificate of stock to bona fide purchaser or pledgee for
value together with written transfer of same or written power of
attorney to sell, assign, and transfer same, signed by owner of cer­
tificate, transfers title against all parties. Foreign corporations have
practically same rights as domestic, but are required to file copy of
charter with secretary of state, also a copy of the by-laws, ana are
also required under severe penalties to file certificate showing among
other things the names of officers, amount of capital stock authorized,
amount issued and amount paid in; also must file certificate showing
any change in above particulars. Such corporations must also appoint
a resident of Maine, having an office or a place of business In the
state, to be Its attorney on whom process may be served in any legal
proceeding. Corporations may dispose of their franchises on majority
vote of the stockholders; may sue and be sued, and have generally
the powers of individuals.' Public service corporations are subject
to a Public Utilities Commission.
Courts. Terms and Civil Jurisdiction. Supreme judicial court:
Two or three terms a year in each county: unlimited jurisdiction exoept
as specified below; full jurisdiction In equity; appellate jurisdiction
en banc on questions of law, from trial terms and superior courts.
Superior courts: In Cumberland County except equity,
real actions, extraordinary legal remedies and some others; exclusive
Jurisdiction with exceptions to $500 and in divorce, concurrent juris­
diction above $500; sits first Tuesday of every month, except June,
July, and August. Kennebec. County; exclusive jurisdiction, with
exceptions to $500; concurrent in habeas corpus and divorce; sits
second Tuesday of January and first Tuesday of April and September
at Augusta; second Tuesday»of June and November at Waterville.
Courts of probate: Usual jurisdiction concurrent in equity of probate
matters. Municipal courts and trial justices: Exclusive jurisdiction
of forcible entry and detainer and in other cases up to limited amount;
appeals to superior court where established, and elsewhere to supreme
judicial court.
Creditors’ Bills. Bill In equity may be maintained to reach
property of debtor which cannot be reached by process at law, and
b not exempt from attachment; also property conveyed In fraud of
creditors and property secreted so that It Is not repleviable.
Isays of Grace. (See Negotiable Instruments.)
Deeds. Any owner of real estate having right of entry may con­
vey It by deed. No estate greater than tenancy-at-wlll can be created
except In writing. Deeds must be acknowledged by a grantor or
one of them or by attorney in fact, executing the same, before a justice
of the peace, notary public having a seal, or woman qualified to take
acknowledgments; outside the State, and in the United States, before
a clerk of a court of record! having a seal, notary public, or commis­
sioner of deeds tor this State, and m a foreign country before a notary
public, or a consul or minister of the'Unlted States, but If magistrate
acting outside of State has no official seal, his authority and the
genuineness of his signature must be authenticated by the clerk of
a court of record In county where he resides. Unacknowledged deeds
cannot be recorded. No special form of acknowledgment required.
Deeds must be recoraed to be valid against parties without notice of
the conveyance. Deeds must be under seal, but witness Is not
required for validity although usual to have one. Leases for more
than seven years must be recorded. Trusts concerning real estate
can be created only In writing, except those arising by Implication
of law.
Depositions. Depositions may be taken by disinterested justice
of the peace or notary public; may be taken when deponent is unable
through age. Infirmity, or sickness to attend at place of trial; when
deponent resides out of, or is absent from the State; when deponent
resides In town other than that in which trial Is to be held, etc. Depo­
sitions so taken may be used In all civil suits or causes, petitions for
partition of land, libels for divorce, prosecutions for the maintenance
of children, petitions for opinions In trial before courts of arbitrators,
referees and county commissioners, and In cases of contested senatorial
or representative elections. Depositions or affidavits may also be
taken in applications for pensions, bounty, or arrears of pay under
any law of the United States. Courts may Issue commissions to
take depositions out of the State, or they may be taken out of State
by a justice, notary, or other person empowered, but In the latter
ease It Is within the discretion of the courts to admit or reject them.
Descent and Distribution of Property. (See Estates of De­
ceased Persons.)
Dower. Abolished by laws of 1895, chap. 157, taking effect as
ta persons not then married. May 1, 1895; as to others, Jan. 1, 1897.
Wife or husband may bar the right by inheritance to one-third or
one-half, as the case may be. of realty by joining In the other’s deed,
or by sole deed, or by ante-nuptial settlement, or by jointure. Either
refusing to join In other’s conveyance (or if incapacitated with no
guardian in this state, other being a non-resident) may be barred of
inheritance upon application to supreme judicial court and decree
after hearing. (See Estates of Deceased Persons.)
l&states of Deceased Persons. Eighteen months after notice of
appointment allowed creditors to present claims and suit must be
begun and service of process made within twenty months after such
notice of appointment. Allowance to widow and minor children,
made by court from estate. Non-resident executor or administrator
must appoint attorney. Time of demand or notice extended for absent
creditor if further assets, but prior payments no< disturbed thereby.
No administration granted after twenty years. The real and personal
estate of a person deceased intestate (excepting wild lands conveyed by
him) being subject to the payment of debts descends according to the
following rules: 1. If he leaves a widow and Issue, one-tblrd to
the widow. If no Issue, one-half to the widow. And If no kindred,
the whole to the widow. And to the widower shall descend the same
shares in his wife’s real and personal estate. There shall likewise
descend to the widow, or widower, the same share in all such real
estate of which the deceased was seized during coverture, and which
has not been barred, or released, as herein provided. In any event,
one-third shall descend to the widow or widower free from the pay­
ments of debts. 2. The remainder of which he dies seized, and if
no widower, or widow, the whole, together with all wild lands shal

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descend In equal shares to his children, and to the lawful issue of a
deceased child by right of representation. If no child Is living at
the time of his death, to all his lineal descendants; equally, If all are
the same degree of kindred; If not, according to the right of repre­
sentation. 3. If no such Issue, It descends to his father and mother
in equal shares. 4. If no such Issue, or father, it descends one-half
to his mother. If no such Issue or mother, it descends one-naif to
his father. In either case, the remainder, or If no such issue, father
or mother, the whole descends In equal shares to his brothers and
sisters, and when a brother or sister has died, to his or her children
or grandchildren by right of representation. 5. If no such Issue,
father, brother or sister, It descends to his mother. If no such Issue,
mother, brother or sister. It descends to his father. In either case,
to the exclusion of the issue of deceased brothers and sisters. 6. If
no such Issue, father, mother, brother or sister, it descends to his next
of kin in equal degree; when they claim through different ancestors,
to those claiming through a nearer ancestor. In preference to those
claiming through an ancestor more remote. 7. When a minor dies
unmarried, leaving property inherited from either of his parents. It
descends to the other children of the same parent, and the issue of
those deceased; in equal shares 11all are of the same degree of kindred;
otherwise, according to the right of representation. 8. If the
Intestate leaves no widower, widow or kindred. It escheats to the
State. . An Illegitimate child is an heir of its parents who Intermarry;
also of Its mother, also of its father, who adopts It or acknowledges
It before a magistrate; and in any case where the child Is treated as
an heir It inherits from the lineal and collateral kindred of the parent,
and they from it. (See Wills.)
Executions issue after twenty-four hours from rendition of judg­
ment, returnable In three months, renewable within- ten years after.
No stay except by order of court for cause and one year against absent
defendants unless bond filed; levied on real estate by appraisal and
extent, also on real estate and Interests In the same and franchises
and personal property by sale; money and, by consent, circulating
notes applied directly. Real estate sold on execution may be re­
deemed In one year. Attaching creditor may within forty-eight
hours after notice redeem personal property of debtor which Is subject
to mortgage pledge, or lien; may also redeem real estate subject to
mortgage or othpr lien, Special provisions for redemption of certain
other special classes of property, such as buildings on leased lands,
franchises, etc.
Exemptions from Attachment and Execution. Homesteads,
not exceeding in value $500, when duly registered; debtor’s apparel,
necessary furniture for family, not exceeding In value $100; bed and
bedding for each two persons; family portraits, blbles, school books
In use: State statutes: library, $150; regular*pew; cook stove and
Iron warming stoves; charcoal, twelve cords of wood, five tons an­
thracite coal, fifty bushels bituminous coal, $10 worth of lumber,
wood, or bark; produce of farms till harvested; barrel of flour, thirty
bushels of corn and grain, potatoes for family, one-half acre of flax
and manufactures therefrom for family; tools of trade, and materials
and stock, $50; sewing machine, $100; pair working cattle, or pair
mules, or one or two horses, $300: hay to keep them; harness for
eaoh horse and mules, $20; horse sled or ox sled, $20; domestic fowl,
$50; two swine, one cow and one heifer, if no oxen, horse or mule,
two cows; ten sheep, their wool, their lambs until one year old; hay
to keep them and cattle; plow, cart, truck or express wagon, harrow,
yoke with bows, ring and staple, two chains, mowing machine; fish­
ing boat ot two tons; debtor may elect If he has more than-ls exempt.
Life and accident policies are exempt from creditors, except any
excess of $150 per year premium paid within two years, except suits
for necessaries. (See Attachment.)
Foreign Judgment. Action of debt lies on a foreign Judgment
and record of it Is prima facie evidence of Indebtedness. Is conclusive
except for fraud when given by court having Jurisdiction of parties
and subject matter.
\
Fraud. Usual common law rules as to what constitutes fraud,
fraudulent representations, etc.; also statutory penalties for fraud,
cheats, etc. Court of equity has power to afford relief. Statutory
provisions to prevent sale In bulk of part or whole of stock of mer­
chandise In fraud of creditors.
Frauds and Perjuries. No action shall be maintained upon any
contract -to charge an executor or administrator upon any
special promise to answer damages out of his own estate; nor te
charge any person upon any special promise to answer for the debt,
default, or misdoings of another; nor to charge any person upon an
agreement made in consideration of marriage nor to charge any per­
son upon any contract for the sale of lands, tenements, or heredita­
ments, or of any Interest therein; nor to charge any person upon any
agreement that Is not to be performed within >one year from the
making thereof; nor to charge any person upon any contract to pay
a debt after discharge therefrom under bankrupt laws of the United
States or assignment or Insolvent laws of this State; unless the promise,
contract, or agreement or some memorandum thereof Is In writing
and signed by the party to be charged, or his agent. No action shall
be maintained on a minor’s contract unless ratified by him In writing
after becoming twenty-one years of age, except the contract be for
necessaries or real estate where he has received title and obtained
benefit. No oontract for sale of goods, etc., of $30 or more In value
Is valid unless purchaser accepts or receives a portion of the goods
or gives something to bind the bargain, or invpart payment thereof,
or some memorandum Is made and signed by party charged or his
agent. Contracts whereby one becomes agent for sale of lands become
void in one year unless time for termination definitely stated.
Garnishment. (See Attachment.)
Husband and Wife. Each may hold and deal with property
Individually, subject to right of descent In real estate. (See Estates
of Deceased Persons.) Husband not liable for debts of wife con­
tracted before marriage, nor afterward In her own name, nor for her
torts. Equity Court: has special jurisdiction of disputes between
husband and wife relating to property. After petition to and decree
by probate court either may convey real property as if sole, and other
is barred of all right by descent where deserted without just cause
or if actually living apart for just cause, and desertion or living apart
has continued one year.
Interest. Six per cent or any other rate agreed upon in writing;
judgments, same rate; accounts and debts not on time bear Interest
from demand. Special rate in time notes does not continue after
maturity, unless so provided; nor after judgment In any case; ne
usury laws. On loans for less than $200, secured by mortgage or
pledge of personal property, the rate shall not exceed 3 per cent per
month for first three months, and 15 per cent per annum thereafter.
Loans negotiated in this state by agent of non-resident borrower
with intent to evade usury laws of state where borrower resides are
voidable.
Judgments. At law; by general order at end of term on all eases
where verdict or default, unless stayed by proceedings for new trial,
or continued for judgment by plaintiff; in equity, only by decree
signed by justice. No lien except by virtue of attachment on mesne
process (q, v.) and where speclaUy provided by law.
Liens. (Voluminous Statute Provisions, tor Mechanics, Material.
Men, Hotel and Boarding-House Keepers, Stable Keepers, Agister,
etc.)

BANKING AND COMMERCIAL LA W S— MARYLAND

1745

Limitation of Actions. Six years: debt on unsealed contract or security for antecedent debt gets no greater right than agent. Title
liability (except Judgments) : actions upon Judgments out of State of to property passed by endorsement, but not in blank, to purchaser
pledgee In good faith. Property In warehouse may be attached
IvTurt not of record: for arrears of rent: of account, assumpsit, or or
naae on contract or liability express or Implied; waste; trespass qu. as that of person named In reoelpt, or of last endorsee shown by books
il and d. b. a.; replevin; case, except slander and libel. Four years: of warehouseman. Common law rules prevail generally.
asalnst sheriff. Two years: assault and battery, false Imprisonment,
Wills. Wills must be In writing signed by the testator, or at his
■lander, libel and penalty. One year: escape, scire facias and on request by some person In his presence, and subscribed in his presence
recognizance. Eighteen months: stolen bonds and coupons, except by three witnesses In presence of each other, may be made by any
hv owner. Twenty years: witnessed notes, bank bills, specialities, person of age and 6f sound mind, and may dispose of all property.
real action, other Judgment and all other personal actions. Suit Wills executed In another State or country according to laws thereof,
begun when writ was made. Incapacity of plaintiff, death of either may be proved and allowed In this State In the county where the
narty before or within thirty days after expiration of time, fraudu­ testator had his residence at time of decease; If proved without .this
lent concealment of action, absence from State when cause accrues State (at his domicile), may be allowed in any county here where he
nr residence out of the State and absence afterwards, extends time, has property. Widow or widower may within six months waive
lotions barred where both parties lived are barred here. New provision In will of deceased husband or wife and claim same share
nromlse must be In writing or part payment must be made, to extend In personal property as would have had In case deceased died intestate*
time Against executors and administrators, twenty months after ■(But see Husband and Wife.)
fillnz of affidavit of notice given of appointment of executor or admin­
Nuncupative will must be reduced to writing within six days, or
istrator, unless further assets or claim not matured. Against heirs proved by testimony within six months, from time words spoken.
nr devisees, one year after claim accrued: remedy in equity, If not No letters in such till fourteen days after decease of testator. Not
prosecuted within time limited and if without culpable neglect.
effectual to dispose of more than $100.00 worth of property unless
Limited Partnership. May consist of one or more general part­ proved by three witnesses who acted at testator's request.
ners and one or more special. Special shall contribute specific amount
of capital or property at cash value, and be not liable for debts
beyond that amount. General partners must transact the business.
SYNOPSIS OF
Married Women have same rights and liabilities as to property
eontracts and all suits as men. Wife’s property not liable for her
husband’s debts, nor his liable for her prior debts nor for others made
T H E L A W S OF M A R Y L A N D
on her credit. She may sue and be sued as If sole. May not be
Dartner of husband and not liable for family expense except by express
promise. (See Arrest, also Dower, also Estates of Deceased Persons,
R E L A T IN G TO
also Husband and Wife.)
Mortgages. Of real estate: executed and acknowledged as deeds
and must be recorded as to third parties; convey fee with condition
BANKING AND COMMERCIAL USAGES
of defeasance. Foreclosed without possession by serving or adver­
tising notice, or by possession obtained peaceably, or by consent, or
by suit. Redemption In one year from notice or possession; power
Revised by T. H o w a r d E m b e r t , Attorney at Law, Baltimore.
of sale mortgages not authorized by statute and not much used.
(See Card in Attorneys’ List.)
Supreme court may authorize a mortgage by a person In possession
In
general. Bagby’s Annotated Qode (1911) and Supplemen­
of an estate subject to a contingent remainder, executory devise, or
nower of appointment, and such mortgage Is binding on all parties. tary Volume (1914) embrace the Public General Laws of Maryland.
Chattel mortgages unless and until possession taken and retained by Including those of the 1914 session. By statute, the Code or 1911
mortgagee to be good against third parties must be recorded m town has been made evidence; special reference to statutes in the follow­
clerk’s office where mortgagor resides when mortgage is given; or, if ing is therefore unnecessary.
any of mortgagees are non-residents, then in registry of deeds in
Acknowledgments of conveyances of any Interest In real or lease­
county where mortgagee resides, when mortgage is given. Mort­ hold
property for above seven years, may be made within the State,
gage on household furniture must state amount of loan, interest and In
county or city in which the land, or any part of it, UeSg
rate, and cost of procuring loan. Agreements, whether in form of before athe
notary public, justice of the peace, a Judge of the orphans
note, lease, conditional sale, etc., or otherwise, that chattels bargained court, a judge
circuit court of any county, or a Judge of the
and delivered shall remain property of seller till paid for, must be in supreme benchofofthe
Baltimore oity. If within the State, but out of
writing and recorded as chattel mortgages; such mortgages and notes the county in which
estate conveyed lies, they may be made
foreclosed by sixty days’ notice to mortgagor or assignee of record, before a judge of any the
court for the circuit where the grantor
or if out of State, by publication; redemption in sixty days. Col­ may be, or before anycircuit
Judge
of the orphans' court for the city or
laterals pledged on notes, etc., or for the performance of anything, oounty In which the grantor may
notary public, or a Justice of
after failure to pay or perform by the pledgor, may be sold by the the peace; the official character ofbe,
the Justice must be certified by
pledgee he first giving written notice to the pledgor of the proposed the clerk of the circuit court of the county,
or superior court of Balti­
Mile or if his residence is unknown, by publication of notice once a more city, under his official seal, or any Judge
of the supreme bonch
week for three successive weeks in a newspaper in the city or town of Baltimore city. If grantor be In Baltimore city.
without the
where the pledgee resides, recording said notice and affidavit of service State, they may be made before a notary public, aIfJudge
any
of same in the clerk’s office of city or town where the pledgee reside, oourt of the United States, or of any state or territory court of
and after thé expiration Qf the sixty days from the time of said record­ a seal, or a commissioner of deeds for this State. The seal having
of the
ing.
officer or court to be affixed to the certificate of acknowledgment
Negotiable Instruments. Days of grace abolished except as to In all cases. It acknowledged without the United States, the acknowl­
sight drafts. Falling due on Sunday or bank holiday payable and edgment may be made before any minister, consul general, vice or
presentable for payment on secular or business day next succeeding. oonsular agent or deputy, or a notary public, or a commissioner to
If holiday falls on Sunday then following Monday is deemed bank take acknowledgments for State of Maryland. No separate examin­
holiday. On notes payable at fixed place on demand at or after a ation of a married woman is required. Defective acknowledgments
time certain, ho recovery unless demand proved there before suits cured. (Seq Conveyances.)
usual demand and notloe to charge indorser; notarial protest proves
Actions. The forms of actions, which still savor of the common
If but one Indorsing note at Inception before payee does is a maker. law are now very simple, any plain statement of facts constituting
Waiver of demand and notice, acceptance of bill, draft, or order must a good cause of action being sufficient. Amendment Is allowed at
be in writing and signed. Recovery from indorser without suing any time before verdict. Equitable defenses are now allowed
maker. Rate of damages on protested bills of $100 or more payable to be made In a court of law, although there are still law courts and
In this country, 1 to 9 per cent according to place. Negotiable paper equity courts having different and distinct jurisdiction. Speedy
presumed to be taken In payment of debt or liability for which it Is judgment Acts are in force in Baltimore City and in many of the
riven, unless creditor would thus lose security he otherwise would Counties. (See Suits.)
have had. Legal holidays are January 1; February 22; April 19;
Administration of Estates. The orphans’ court of the counties
May 80; July 4; first Monday In September: Thanksgiving: Christmas,
the orphans’ court of Baltimore city are the courts of probate.
and Arbor Day. If note reads “ I promise to pay all signers are and
In cases where decedent left a will, letters are granted to executor
Jointly and severally liable.
and executrix named In the will. In granting letters of administra­
Partnership. Personal property of partnership, or interest of tion, where decedent died without leaving wfll, letters are granted:
partner therein, exempt from attachment on mesne process, or seizure 1. To widow or child or children; 2. Grandchild; 8. Father; 4.
on execution for any individual liability or such partner; but Is statu­ Brothers and sisters; 5. Mother; 6. Next of kin; 7. Largest creditor
tory provision for reaching same after judgment. Partners in mercan­ applying for letters. In each class, males are preferred to females.
tile enterprise must file sworn certificate with city or town, clerk Bond Is required with two sureties, or one of certain local surety
■where business to be carried on, showing names and residences of companies where authorized by their charter to aot as sole surety.
partners, nature of business and partnership name. (See Limited
When testator requests in will that executor be excused from giving
bond, court only requires nominal bond for amount sufficient to pay
Partnership.)
estimated debts. Six months notice to creditors must be given by
Powers of Attorney. Usual common law rules.
publication before estate is distributed. Personal property must be
Probate Law. (See Estates of Deceased Persons.)
appraised, accounted for ana distributed through the orphans court
Protest. (See Negotiable Instruments.)
county or city In which decedent resided. All salee must
Replevin. Goods or chattels wrongfully taken or detained may of the
authorized and ratified by the orphans’ court. By Aot of 15**.
be replevied by owner or party entitled to possession. Replevin bond be
Ch.
246,
provisions were made applicable to estate*
must be double the value; of property replevied. If dismissed with­ of persons above
absent and unheard of for above seven years. This act
out trial, suit may be brought on the Dond, in which suit title may be has
been
held
unconstitutional.
Re-enacted with amendment».
shown to mitigate damages.
(Acts 1908, Ch. 125.) This act constitutional by decision of Court
Taxes may be collected by arrest, distress, or suit. On real estate of Appeals in case of Savings Bank vs. Weeks 110 Md. 78.
they are a lien: proceedings to enforce by sale begin upon non-pay­
Affidavits. (See Acknowledgments.) No particular form neoeoment for nine months; non-resident owners have one year from sale sary,
but whoever can take an acknowledgment can take an affidavit
to redeem by paying tax, costs, and 10 per cent Interest from day of Affidavits
required in a mortgage as to the bona fids* •£
sale; residents, two years with 10 per cent Interest from day of sale mortgage always
consideration; and the payment of tax on annual interest
on whole sum of tax and costs. Land on which taxes are unpaid, In certain counties.
(See Mortgages.)
sold on first Monday in February in year succeeding the year in which
Aliens. Allens, not enemies, may take and hold lands, tenements,
tax was assessed; sale Is oi smallest fractional part of Interest to one
hereditaments acquired by purchase, or to which they would.
who will pay taxes. Interest, and costs therefor. State tax assessed and
by board of state assessors on gross receipts of railroads and express If citizens, be entitled by descent, and may sell, devise, or dispose
the same or transmit the same to their heirs as fully and effectually
companies, and telegraph and telephone lines, collected by suit. of
Corporations, other than those especially provided for, P^y a franchise and in the same manner as If by birth they were citizens of this State.
t«x of $5.00 If authorized capital does not exceed $50,000.00, of
Arbitration. Disputes between parties may be conducted by
$10 00, If capital does not exceed $200,000.00; of $50.00, If capital any Judge or Justice of the peace mutually agreed upon. Special
does not exceed $500,000.00; of $75.00, If capital does not exceed agreements for arbitration of such disputes to be valid. Parties may
$1,000,000.00; and the further sum of $50.00 for each $1,000,000.00, be represented by an attorney, and award of arbitrator or arbitrators
or fraction thereof. In excess of $1,000.000,00. Foreign corporations to be a Judgment, and oourt may give Judgment and Issue exrisutton
Day annual license fee of $10. Inheritance tax ranging from 1 to 7 on the award. Act 1904. Ch. 671, provides a means for the settlement
per cent, according to degree of relationship and amount of bequest. of disputes between employers and employees by mediation or volun­
$500 exempt In all cases, and $10,000 exempt in case of certain near
arbitration.
relatives. Special exception^ and exemptions from assessment, and tary
Arrest. No arrest for debts in this State. In criminal oases a
special provisions for taxing personal property situated here but sentence
may be passed, imposing a sum of money as ay fine, and
owned out of the State. Real estate mortgages exempt. (See thflii In lieu
of payment by party, of fine imposed, he 1* liable to
Banks
y*
Wages.
Weekly payment required in most Industries. (See Imprisonment.
Attachments
tor debt (See Act 1890, Chap. 549), or for unliqui­
Assignments, Attachment.)
damages, either in contract or tort, pan be obtained In an
Warehouse Receipts. Holder deemed true owner so far as to dated
oases
when
the
defendant
la a non-resident or has absconded, affidavit
give validity to contract for sale of merchandise covered, or to protect
first made by the plaintiff to the correctness of his claim and
rac acting on faith of such ownership; but one taking from agent as
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tue fact that the defendant Is a non-resident or has absconded. They
Courts. Terms and Jurisdiction. The circuit courts in the
may be also obtained In connection with an original process when counties have juricdictlon at common law in cases involving more
the creditor or some one in his behalf shall give bond in double the than $50, and equity in all cases Involving more than $20. They
amount of the debt, with sureties to be approved by the clerk, and hold from two to four regular terms in each county at which
make affidavit before the clerk at the court where the suit Is brought they have a jury; there are, however, intermediate terms fixed by
that the defendant Is bona fide Indebted to the plaintiff In the sum the rules, to which process may be. made returnable. The circuit
olaimed, and that the plaintiff knows or has good reason to believe court and circuit court No. 2 of Baltimore city have exclusive equity
that the debtor has absconded or Is about to abscond from the State, jurisdiction In the city. The superior court, tHe court of common
or that the defendant has assigned, disposed of,' or concealed, or pleas, and Baltimore' city court have concurrent common law jurisdic­
Is about to assign, dispose of, or conceal, his property, or some portion tion in cases involving more than $100^ The court of common pleas
thereof, with Intent to defraud his creditors, or that the defendant has exclusive jurisdiction In insolvency, and the criminal court In
fraudulently contracted the debt or incurred the obligation; or that criminal cases. The orphans’ courts in Baltimore city, and in the
the defendant has removed or is about to remove his property, or counties- have probate jurisdiction. Justices of the peace have
some portion thereof, out of this State, with Intent to defraud creditors jurisdiction to the amount of $100. The common law courts have
and the attachment may be maintained, although the debt or obliga­ three terms In the year, and rule days every month In the year to
tion upon which the action Is brought may not have 'matured. but which process may be returnable. The equity oourts have six terms
the date of the maturity of the debt or obligation must be set forth In the year, beginning the first Mondays of January, March, May,
in the affidavit (Act 1894, Oh. 648). A claimant may have the July, September, and November.
attached property released by filing a bond in jdouble the amount
Depositions. When the courts are satisfied, by affidavit or
of the appraisement. Any kind of property or credits belonging
that there are material and competent witnesses residing
to the defendant, in the Dlaintlff’s own hands or in the hands of any otherwise,
without the State, they will direct that a commission be issued to
one else may be attached. There is a special provision for capital take
the testimony of such witnesses. The commissioners are selected
stock of a corporation. The certificate itself must be seized. Credits by the
court, and must qualify before some person authorized to
not dbe may be attached, but wages, hire, or salary not due can administer
an oath in the state where they reside. The depositions,
not be attached, and 90 per cent of wages, hire, or salary due shall duly certified
by the commissioners, shall be admitted as evidence
always be exempt. i (Act 1908, Ch. 665.) Imprisonment for debt at the trial of the
cause, subject to the same objections and exceptions
is abolished. Defendant may be sued wherever he does business. as the same testimony
would be If the witness had been personally
In addition to attachments against non-residents or absoondlng debtors present in court and there
examined. Parties have the right to be
for debt (1. e., a liquidated sum), as heretofore, attachments may present when the testimony
under the commission, and
now be issued against such debtors in cases arising from contracts must receive reasonable noticeisoftaken
the time and place. Examination
when the damages are unliquidated, and In actions for wrongs Inde­ Is restricted to the parties and Interrogatories
and cross-interroga­
pendent of contract, but In such cases no attachments can be Issued tories annexed to the commission. Testimony
of non-resident
until a declaration Is filed setting out specially and In detail the witnesses can also be taken upon proper notice, as provided
by Seo.
breach of the contract complained of or the tort actually committed,
verified by the affidavit of the plaintiff or some one' in his behalf, 17 of Art. 35 of the Code.
Descent and Distribution of Property. As to descent, see
and until a bond shall be .filed similar to the bond required In attachmente for fraud. (Code Art. 9.) All papers in attachment pro­ Code 1904, Art. 46, and as to distribution, Code, 1904, Art. 93.
An attempt to abrogate the Rule in Shelley’s case has been made by
ceedings «can now be amended, as in any other actions at law. (Act
Oh. 144, Acts 1912.
1898. Ch. 44.)
■
Dower.
The common-law right of dower exists In Maryland, and
Banks. The Act of 1910, as amended by the Acts of 1912 and
to equitable estates. By act 1898, the husband’s dower
1914, made important changes in the banking laws of this State. extends
was created; an estate of the husband in his wife’s estates of inheri­
The law now. provides for the appointment .of a Bank Commissioner tance,
exactly equivalent to the wife’s dower In her husband’s estate.
with broad powers for the examination of all banking institutions A devise
or bequest of real or personal property to the wife or husband
in this State other than National Banks and an annual report thereon shall
construed to be in lieu of dower in lands or share of personal
to the Governor. Whenever capital is reduced by impairment estate,berespectively,
otherwise expressed in the will. If the
commissioner may require Bank to make such deficiency good within widow or widower unless
renounces formally In writing, however, such
sixty days, and upon failure to do so may take possession of property provision made for her
him by the will, within six months after the
and business of such institution and retain possession until affairs grant of administrationor
on the estate of the deceased husband or wife,
are finally liquidated. This also applies where the business is con­ the dower right and the share
of personal property remain undisturbed.
ducted in an unsafe or unauthorized manner. The requirements
(See
Married
Women.)
for the incorporation of such institutidns are fully set forth in the
act. This act also provides for the incorporation and supervision
Executions may issue and judgments may be renewed or revived
by the State of saving institutions and trust companies. Chattel
by scire facias at any time within twelve years from date of judgment
loan companies are required to take out a license, pay a fee where or from the expiration of any stay, and may be thereafter levied
the loan is $300 or more, and inspected by the State Banking Depart­ on any property of the defendant. In the circuit courts for the
ment.
counties there is a stay until the first Thursday of the term succeeding
rendition of the judgment, provided the judgment is obtained
Collaterals. The conversion by any banker, broker, merchant, the
at the second term after the defendant Is summoned. There is no
attorney, or agent of collaterals is made a misdemeanor. (See Code. stay
upon judments rendered In the courts of Baltimore city or by
Art. 27, Sec. 93.)
justices of the peace In the city or«counties, but execution may issue
Contracts. The normal condition of all persons Is one In whioh forthwith. The defendant may stay the execution by superseding
they are capable of making any contract. The fourth and seventeenth with sureties for six months. Copy of docket entries of judgment
sections of the Statute of Frauds are in force In Maryland. Acts 1900, when recorded in another county makes the judgment a lien there.
Ch. 362, make It no longer necessary to show that the consideration (Act 189p, Ch. 314.)
for a promise to answer .for the debt of another is in writing. A
Exemptions. No homestead law. Wearing apparel, books and
citizen oan not make a contract with an alien enemy during the
(not kept for sale) and $100 of property in addition, whether
continuance of hostilities; but aliens, not enemies, may contract and tools
same
oonslsts of money, land, goods, or money payable as insurance,
hold real property as fully as citizens. The later cases decide contract benefit;
or relief in the. event of sickness, hurt, accident, or death,
of Infants to be voidable and not void; and they are capable of are exempt
from execution, except on judgments for breach of promise
ratification by Infants on arrival at age of twenty-one. The contracts to marry and
not applicable to any but actual bona
of infants for necessaries are binding upon them. The contract of fide residents ofseduction,
State. Equitable interests in personal property
a lunatic is voidable and not void. The statute provides that a oan not be sold this
under
execution,
but may be levied upon, and the
married woman may engage In business, oontract, sue. and be sued
thus acquired may be enforced In equity. Choses in action may
upon contracts and torts, as If unmarried. (Acts 1898, Ch. 457.) lien
attached.
_
All gambling contracts and contracts made on Sunday are void. t beForeign
Corporations. (See Corporations.)
Conveyances. No estate or title to any property lying with­
Foreign Judgments. Judgments of the courts of other states
in this State, for any period above seven years, shall pass or take certified
under the act of congress, are proper causes of action against
effect unless the deed conveying the same shall be executed, acknowl­ any person
subject to the process of the courts of this State.
edged, and recorded. (See Code, Art. 21, Seo. 1.) Every deed
Fraud. When any false representation is made by one to another
of real estate shall be signed and sealed by the grantor and bargainor, with
the
Intent
to defraud, and the defrauded party, thinking the
and attested by at least one witness. No words of Inheritance neces­
fraud to be true, acts upon it, any contract thus made can
sary, but every deed shall be construed to pass fee simple tilde unless alleged
be enforced. But If the Injured party knows such representations
the contrary appear. A scroll with the word "seal” therein by way not
It can not be said to have Influenced his oonduct. For
of a seal. Is sufficient. A deed must be recorded within six months to be false,
doctrine in this State see McAleer vs. Horsey 35 Md. 439.
from date, In oounty or Baltimore City, where land lies, but If recorded general
Giving
checks
or drafts without provision for acceptance is prima
after this, deed, 'while valid between parties. Is Invalid as to deeds
evidence of intent to defraud, and is punishable as a crime
to bona fide purchasers without notice recorded prior thereto. A body facie
such provision is made within ten days. Every person buying
corporate must embody in the deed Itself the appointment of an attor­ unless
in bulk shall demand and receive from the vendor a
ney to acknowledge the deed as and for the corporate act of said merchandise
statement under oath containing the names and addresses
corporation or have It acknowledged by the President or Vice-Presi­ written
all creditors with amount of indebtedness at least five days before
dent without such appointment. Vendors’ lien may be released in or
the sale is consummated. The vendee at least five days before
original deed or upon records where recorded. (Code Art. 66, Sec. 31). consummating
sale shall notify all of said creditors either per­
Conveyances defectively executed made valid by Acts 1908, Ch. 105 sonally or by such
registered mail of such nroposed purchase,
sale
and Acts 1914,NCh. 259 and Ch. 421. 1 «
or transfer of goods m bulk without such notice shall as to all sub­
Corporations are organized under the authority of the General sisting
creditors
of
che
vendors
be
Void.
incorporation Law, completely revised. Act 1908, Chap. 240. Liberal
Chapter 370, Acts of 1916, adds additional section to Article 27 of
provisions are made for general Incorporation: only exception (for I Bagby
s Code and provide# that if any person shall make, or cause to
municipal purposes) Is in the constitution. All corporations (under ! be made, either directly or indirectly, through any agency, whatsoever,
the general law) must pay a bonus tax of one-eighth of 1 per cent any'false statement as to his financial condition for the purpose of
upon Its authorized capital stock and any Increase. Corporations procuring the delivery of personal property, etc., shall be guilty of a
have perpetual succession, may carry on business anywhere, may misdemeanor and be fined not more than $1,000, or imprisonment for
Issue bonds, and secure them by mortgage of all property Including one year.
1
.
.
^ ,
franchises. Foreign corporations must file list of resident share­
Chapter 371, of the Acts of 1916 adds new section 831 o f Bagby’s
holders, and amount held. The corporation’s certificate must be filed Code and provides that any vendor of stock of goods who shall know­
and $25 paid; annual renewal fee of $1 is charged. All corporations, ingly and willlingly make or deliver any statement of which any
not paying a gross receipt tax (a long enumeration), shall pay an material portion is false, shall be guilty of a misdemeanor and upon
annual franchise tax on their capital employed in this State, of 50 conviction shall be fined $1,000, or imprisonment for one year.
cents per $1,000 but no less than $25;. If capital is over $500,000
Garnishments. - (See Attachments.)
then one-fourth of 1 per cent on the excess to $5,000,000, etc. Section
and Wife. (See Dower, Divorce, and Married Women.)
99 of Article 81 of Code, amended by providing for annulment of InHusband
this State the husband is not liable for wife’s ante-nuptial debts
Charter for non-payment of taxes. Domestic corporations may issue or oontraots.
Husband is liable for necessaries of wife. Acts 1898
all kinds of preferred and common stock, and exchange same for Stock
457, gives husband same Interest in wile’s estate as wife has in
or good will. Valuation in absence of fraud is conclusive. As to Oh.
husband’s
estate.
Married women are expressly authorized by the
Stock certificates, see “ Uniform Laws.”
Aotsof 1900. Ch. 633, to become partners and to contract with hus­
Law amended by Ghapter 596, Acts of 1916.
band. Either can relinquish Interest In other’s real estate by joint
' Chapter 318, Acts of 1918, provides that all corporations who shall er
deed, or by agent or attorney properly constituted.
refuse or neglect to pay franchise tax Or tax' on capital stock for a Theseparate
wife’s property is protected by the Constitution from the debts
period of two years, the charter is annulled and forfeited.
>Any corporation chartered by this state, which for a period of ten of the husband.
Interest. The legal rate of interest Is 6 per cent per annum.
days next preceding is without one resident agent, whose name and
post office address is given in charter or filed with State Tax Commis­ Judgments bear Interest from their date. A person proved guilty
sioner, may be deemed a defendant In an attachment in the same of usury forfeits the excess over the real sum or value of the goods
manner as non-residence, unless said corporation shall have been and chattels lent, and legal interest thereon. v Since 1876, where the
incorporated under thè laws of this state prior to June, 1916, and whole debt, including the usury, is paid, the usurious Interest can
have at least one Director, who is a citizen of this state, actually resid­ not be' recovered hack. Since September 1st, 1914, judgments
bear interest from the date of the verdict. !
ing therein.

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BANKING AND COMMERCIAL LA W S— MASSACHUSETTS

Judgments aré Hens lor twelve years trom date of rendition on
any Interest ol the defendant in real or leasehold property within
the county where rendered. They can be transferred from one county
to another by sending a copy ol the docket entries to the clerk lor
record. The Hen commences from the date ol the entry ol the docket
entries by the clerk. Judgments are not liens on mortgages. Judg­
ments are not liens on personal property until execution has Issued
and the writ Is In the hands ol the sheriff. (See Act 1890, Chap.
558, as to examination ol judgment debtors.) (See Suits.)
Liens. (See Judgments.) Mechanics’ Liens. Every building
erected, repaired, rebuilt, or improved to the extent ol one-lourth
•1 Its value Is subject to a lien lor work done or materials furnished
lor or about the same. Act ol 1898, Ch. 502, abolished lien lor
materials furnished lor buildings In Baltimore city. Every machine,
wharf, or bridge, constructed or repaired is subject In like manner
as buildings are, to a lien according to the provisions of Code 1888,
Art 63, Sec. 22. Ail boats or vessels are subjeot to a lien lor materials
furnished or work done ln building, repairing, or equipping the sameGarages b y Act 1918 given lien for storage and accessories. T o secure
the lien and lay foundation for enforcing it, the material man must
within six months after the last work has been furnished, file a claim
in the superior court for' Baltimore C ity, or in the circuit court for
the county. The liens are enforced by spire facias or b y bill in equity.
Section 53 B, Bagby’s Oode, amended by Chapter 355, .Acts of 1916,
entitled “ Additional Contracts.” Every note, sale, or contract for
sale of goods and chattels wherein the title thereto, or lien thereon is
reserved until the same be paid in whole or in part, shall be void as
to third persons without notice until such note, sale, or contract be
in writing signed by the vendee and .be recorded in the Clerk’s office
of Baltimore City, or the counties, and such recording shall be suffi­
cient to give actual, or constructive notice to third parties.
Limitations of Suits. Accounts and notes are barred after
three years, sealed instruments after twelve years; Judgments twelve
years except against foreign corporations (no limitations.) Act
1 9 1 4 Ch. 846. A verbal promise or acknowledgment will revive a
debt barred by the statute.
Married Women. Act of 1898, Chap. 457, Code Art. 45, repeals
and re-enacts the entire law in this State. Married women may
hold and dispose of their property lawfully as if unmarried, but
husband must join in conveyances of real estate to release his interést. Married women may engage in business, contract, sue, and
be sued upon contracts and for torts, as if unmarried. Married woman
is alone liable for ante-nuptial debts and contracts. Husband is
still liable for necessaries. Widow is entitled to dower in real estate,
and one-third of the personal estate if there are children, and if no
children, one-half of the personal estate; husband has same rights
in wife’s property as wife has in husband’s property. Where the
wife is adjudged a lunatic upon inquisition, and the finding remains
in force, husband may convey after acquired property by separate
deed, as if unmarried.
Mortgages are executed, acknowledged, and recorded same a«
deeds, and are not valid against creditors unless recorded within six
months. There must be an affidavit made by the mortgagee or his
agent at any time before recording, that the consideration Is true and
bona fide, and, in the four Counties mentioned below, that the mort­
gagee will not require the mortgagor, or any other person for him
to pay the tax levied upon the mortgage interest, and upon the assign­
ment of any mortgage except for the purpose of foreclosure, a like
affidavit must be made by the assignee. If made by agent, he must,
in addition, make oath that he is the agent of the mortgagee. A
like affidavit is required to chattel mortgages, and absolute bills
of sale, both of which must be recorded within twenty days, The
lien of a mortgage may, by ceasing to pay interest or any install­
ment of the principal for twenty years, be barred. They may be
foreclosed at any time after the debt becomes due and before the
lien is barred. Mortgagees aré required to pay a tax of 8 per cent
on the interest covenanted to be paid in the mortgage, in Somerset,
Montgomery, Frederick, and Dorchester counties. Nontax in Balti­
more City and other counties. (Code Art. 81, Ch. 187.)
Notes and Bills of Exchange. Negotiable Instruments are de­
fined by Ch. 119 of the Laws of 1898, which repeals all laws Incon­
sistent with the provisions of this act. Section 20 provides as follows:
“An Instrument to be negotiable must conform to the foUowing
requirements: 1. It must be in writing and signed by the maker or
drawer. 2. It must contain an unconditional promise or order to
pay. a sum certain In money. 3. Must be payable on demand, or at a
fixed or determinable future time. 4. Must be payable to order or
, to bearer; and 5, where the Instrument Is addressed to a drawee,
■he must be named or otherwise indicated therein with reasonable
certainty." Its negotiability is not affected by a seal, or by a provision
which authorizes the sale of collateral securities in case the instrument
be not paid at maturity, or authorizes a confession of judgment If
the Instrument be not paid at maturity; or waives the benefit of any
law Intended for the advantage or the protection of the obligor: or
elves the holder an election to require something to be done in Ueu
of payment of money. It Ms not necessary that paper should be
made payable at a bank or any fixed place. To charge Indorser,
notice of non-payment must at once be given to him. The time
of maturity is regulated by-Art. 13, as follows: “ Section 104: Time
of Maturity. Every negotiable Instrument is payable' at the time
fixed therein without grace. When the day of maturity falls upon
Sunday, or a holiday, the Instrument is payable on the next succeeding
business day. Instruments falling due on Saturday are to be presented
for payment on the next succeeding business day, except that instru­
ment» payable on demand may, at the option of the holder, be pre­
sented for payment before 12 o’clock noon, on Saturday, when that
entire day Is not a holiday.” Legal holidays are: Christmas,
New Year’s Day, February 22, Good Friday, July 4, May 30, 1st
Monday in September, 12th day of September, and the 12th day of
October, all days of general arid congressional elections throughout
the State and any day of public thanksgiving or humUiation and
prayer proclaimed by the governor or legislature, and all Saturdays
after 12 o’clock noon are legal half hoUdays. Monday is treated
as Sunday when immediately preceded by one of the holidays afore­
said. By act 1898, Ch. 198, it shall be lawful for banks and bankers
In the city of Baltimore to close their doors for business at 12 o’clock
noon, on each and every Saturday in the year, and every Saturday
in the year, after 12 o’clock noon, shall be a legal half-hoUday, so
far as regards the presenting for payment or acceptance, and the
protesting and giving notice of the dishonor, of bills of exchange
and other negotiable paper, and for these purposes shall be considered
as the first day of the week, or Sunday, and aU negotiable paper
shall be deemed to be presentable on the secular day next succeeding.
Bagby’s Code amended by Chapter 355, Acts of 1916. Notes
wherein reservation of title is embodied mrist be recorded in the
Clerk’s office of Baltimore City, or in the counties.
Power of Attorney. Every power of attorney authorizing an
agent or attorney to sell and convey any real estate^shall be attested
and acknowledged in the same manner as a deed, and recorded prior
to or with the deed executed In pursuance of such power of attorney.
A corporation shall have power to appoint an attorney for the fame
purpose, by Its corporate seal. Such power of attorney shall b*
deemed to be revoked when the instrument containing the revocation
Is recorded In the office In which the deed should properly be recorded.
Probate, Law. (See Administration of Estates and Wills.)

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1747

Protest Is usually made by notary public. Notary must keep
register of protests'. A protest of notary public Is prima facie evidence
of non-acceptance or non-payment, and of the presentment of said
note for payment, or ,of said bill for acceptance or payment, at the
time and in the manner stated in the protest, and the protest shall
also be prima facie evidence that such notice has been sent or delivered
In the manner therein stated. (See Notes and Bills of Exohange.)
Replevin Is a remedy to recover specific goods and chattels to '
whose possession the plaintiff is entitled. Also the proper remedy
to recover possession of goods distrained unlawfully. Bond1must be
given to the State of Maryland,- and any party having an interest
In the property, may, upon breach of any covenant In bond, maintain
an action In the name of the State for his or her use. j
Sales & Notices. Act 1910, Ch. 846, provides a Uniform Sales Act.
Taxes. The county commissioners of the several counties of the
State, and the mayor and city council of Baltimore' City are directed
to levy a tax annually upon real and personal property situated
within the State, and no person who Is not assessed to the sum of
S100 shall bè required to pay any tax. Beginning with 1915, the
State tàx is thirty-two and one-third cents, beside the County tax.
The County tax on Banks located and in business anywhere in Mary­
land is uniformly 1 per cent. The property of religious, charitable,
benevolent, and educational institutions, and ceirietery companies is
exempt from taxation. On timely application exemption may be
had for manufacturer’s tools and machinery in actual use from Munic­
ipal taxation in Baltimore City and in some of the Counties, and
beginning with 1915, from State taxation. Collectors .may sell
property to compel payment of overdue taxes, upon giving due notice
of sale, and complying with other requisites,of statute, and any person
Interested in property may redeem within twelve calendar months
from date, and in default of redemption, title to property vests in
purchaser. Taxes are considered in arrears on first day of January
next succeeding the date of their levy, and bear interest from that date.
“ Uniform State Laws” intended for adoption by all the States
and adopted by Maryland: (1) Negotiable Instruments, (2) Bills of
Lading, (3) Sales, (4) Warehouse Receipts. (5) Stock Transfer. (6)
Probate of Foreign Wills. (7) Uniform Bad Check Act, provides
that drawers shall be given ten days notice to make good check,
before prosecution.
'
Certificates of capital stock, bills of ladings and warehouse re­
ceipts, roughly speaking, (1) are negotiable, (2) represent the property
certified to.
Wills of land or personal property, and any codicil thereto, must
be in writing, signed by the testator, or some one else foi; him, In
his presence, at his request, and witnessed by two or more credible
witnesses, as and for last will and testament of the testator, in the
presence of all the witnesses thereto. Nuncupative wills Invalid
except In case of disposition of personal property by soldiers and
marines in actual service. Every will or other testamentary instru­
ment executed without this State in the mode prescribed by' law,
either of the place where executed or ot the testator’s domicile, or
according to the forms required by the law of this State shall be
deemed to be legally exeèuted, and shall be of the same force and
effect as if executed in the mode prescribed by the law of ¡this State,
provided, said last will and testament is in writing and subscribed
by the testator; and if the testator was originally domiciled in Mary­
land, although at the. time of making the #ill or at the time of his
death he may be domiciled elsewhere, the said last will or testamen­
tary instrument so executed shall be admitted to probate in any
orphan’s court of this State; and when so admitted shall be governed
by and construed and interpreted according to the law of Maryland,
without regard to the lex domicilii, unless the testator shall expressly
déclare a contrary intention in said will or testamentary instrumerit.
Code Art. 93, Ch. 334. No will, testament, codicil, or other testa­
mentary paper shall be subject to caveat or other objection to its
validity after the expiration of three years from ;its probate. (Acts
1894, Ch. 405.) When a person is unheard of for above seven years,
and supposed to be dead, the orphans’ court, under the provisions
of Act or 1908, Oh. 125, may grant letters testamentary or of admin­
istration as the case may be.
Workmen’s Compensation. By the Act of 1914, Chapter 800,
provision is made for the insurance by employers of their employees
engaged in extra-hazardous occupations, to provide for compensation
for injuries and death. This Act is intended to supersede within
its scope recovery for injuries through negligence as a tort, and to
do away with such defenses as “ assumed risk,” “ fellow servant
and,.to some extent, “ contributory negUgence.” The extra-hazard­
ous employments are enumerated at length, and the extent of com­
pensation set out. Employers and employées, may by filing agree­
ment, classify their occupation as extra-hazardous, although not so
enumerated in this Act. Article 101, Amended by Chapter 86, Acts
of 1916, so as to extend benefits to alien non-resident defendants Upon
certain terms.
SYNOPSIS OF

T H E L A W S OF M A SSA C H U SE T T S
^RELATING TO

BANKING AND COMMERCIAL USAGES

V Revised July 1, 1919, by L l o y d M a k e p e a c e , Attorney at Law.
Boston, Mass. (See Card in Attorneys’ List.)
The next Legislature convenes January 7, 1920.
Acknowledgments and Deeds. < Acknowledgments may be made
before any justice of the peace, notary publlo 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 shaU 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 sueh
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 bis 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 hi 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.

1748

BANKING AND COMMERCIAL L A W S— MASSACHUSETTS

Actions. There are three classes of actions: contract, tort, and
replevin. Actions at law are begun by writs issued in blank form by the
clerks of the several courts. No declaration need be inserted in the
writ, except in cases of arrest on mesne process or of an attachment
of a vessel. Suits in equity are begun by filing a bill upon which a
subpoena is Issued by the clerk of the oourt. Actions begun by
trustee process must be brought in the county in which the trustee
or one or them resides or has his usual place of business.
Administration of Estates. The judge of probate for the county
where deceased last resided may appoint any person of sufficient
capacity as executor or administrator. Exeeutors 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 if testator
so directs. An administrator will be exempt ,if ail 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 eacn county to whom administration is granted upon
estates of persons who die intestate leaving property, and not having
any husband, widow, or heir in this State. Ancillary administration
may be granted upon the estate of a non-resident who dies leaving
property In this State. Every administrator and executor shall file
an inventory within three months, and publish notice of his appoint­
ment, Notice of a debt and demand for its payment should be given
to an executor .or administrator within six months after his appoint­
ment and the debt should be paid after six months and within one
year of the appointment. No suit can be brought by a creditor
against. an executor or administrator within six months after his
giving bond, except on a claim not affected by the insolvency of the
estate. No suit can be brought against an executor or administrator
who has published notice of his appointment, after one year from
time of his giving bond, unless he has received new assets after the
expiration or the one year, or unless further time is allowed by court.
A creditor whose claim does not accrue within the one year may
cause assets to be reserved to answer to his claim. When the estate
is insufficient to pay all claims, the executor or administrator shall
represent the estate insolvent, and commissioner will be appointed
to receive proof of claims. Claims for funeral expenses, last sickness,
and charges of administration, are not affected by the insolvency of
the estate. Executors and administrators shall render an account
at least once a year.
Allens. Resident or non-resident aliens may sue and be sued and
may hold and convey real estate.
Arrest. In an action of contract, the defendant unless she is a
woman, may be arrested on mesne process provided the plaintiff, and
except in actions on negotiable instruments, the original party to the
contract or his executors or administrators makes affidavit and
satisfactorily proves to the court to which the writ is returnable that he
expects to recover a sum amounting to $20; that he believes that de­
fendant has property which he does not intend to apply to payment of
plaintiff’s debt; that he believes that defendant Intends to leave the
State. Actions of tort, against women as well as men, except for
slander or libel, may be begun by arrest of the defendant, on the
plaintiff or some one in his behalf making certain affidavits. A de­
fendant arrested on mesne process may give bail or he may apply, to
lake an oath that he does not intend to leave the State, or the oath
for relief of poor debtqre; on taking such oath he is rreleased from
arrest. No arrest can be made if the property of defendant is attached
upon the same writ. On an execution, except for costs, or for ali­
mony, or one issued in an action of tort, or where debtor is about to
leave the State, he can not be arrested until he has first been cited
before a magistrate for examination, and it appearing that he has
property and refuses to assign it. the magistrate may order his arrest.
When arrested on execution the debtor may apply to take the path
for relief of poor debtors.
Assignments for benefit of creditors. A voluntary assignment to
trustees for benefit of creditors can not be avoided by creditors who
assent thereto, except- by proceedings in bankruptcy begun within
four months or by proof of fraud. If there is property in excess of
the claims of creditors who have assented, the excess in hands of the
trustee can be reached by trustee process. Acts done in good faith
by the trustee, under an assignment are valid, though the assignment
be afterward set aside, if the assignment is assented to in' writing by
a majority in number and value of the creditors not secured. The
trustee shall on acceptance of the trust give notice in writing to all
known creditors of the assignment and acceptance thereof and shall
deposit with the clerk of the city or town wherein the debtor has his
principal place of business a copy of the assignment. The above
would probably not apply under the provisions of the National
Bankruptcy Act.
Insolvency. There is an insolvent law, but it is superseded by the
National Bankruptcy Act of 1898.
Attachment. All real estate, goods, and chattels not exempt,
may be taken in attachment on the original writ and held as security
for judgment, except that lands and tenements oan not be attached
in suits Involving less than $20. Attachments may he made in suits
hy or against non-residents as well as in1suits by or against residents.
No bond is required to make an attachment. Shares of stock in
oorporations organized under laws of this State, or of United States,
cannot be attached except by bill in equity. Attachment of shares of
stock is not valid against a bona fide transfer, although not recorded in
book of corporation. Shares in foreign corporation cannot be attached
except by bill in equity. Debtor may dissolve attachment by furnish­
ing bond with sureties to pay judgment obtained or value of property
attached determined by appraisement. Upon affidavit made before
the Court to which the writ is returnable by the original party to
the contract except in actions on negotiable instruments that he
hsis reason to believe that the debtor intends to leave the State and
has property not exempt from attachment which he does not intend
to apply to the payment of plaintiff’s claim, the debtor may be arrested
and held to bail. Debtor against whom judgment is rendered for
over $20 may be subjected to sworn examination touching his prop­
erty, and if he refuses to deliver up such property (not being exempt
from attachment), an order for arrest will issue and he can then
apply to take the poor debtor’s oath and be examined as to his prop­
erty after notice to creditor. Proceedings in insolvency dissolve
attachments made within four months of first publication. An
attachment is dissolved by death of the defendant if administration
is granted upon his estate upon application made within one year
after his death.
Banks. In this State, safe deposit, loan and trust companies are
governed by the provisions contained in chapter llfi, revised laws, and
amendments thereto. Under the law twenty or more persons and
their successors may form a corporation for the purpose of carrying
on the business of banking. The general court may, by special act,
annul or dissolve any such corporation; but its dissolution shall not
impair any remedy against the same for liability previously Incurred.
The capital stock of each bank shall not be less than $200,000 nor more
than $1,000,000.00, except in cities or towns whose population is not
more than 100,000, the capital may be not less than $100,000.00,
and except also that in towns whose population is not more than
10,000, tne capital stock may be not less than $50,000, divided into
shares of the par value of $100.00 each. No business shall be trans­
acted until the whole amount of its capital stock is actually paid in.
Before commencing business the president and directors shall make a
certificate specifying the corporate name, which shall be different

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from any previously organized in the commonwealth; the location
of said bank; the amount and number of shares of its capital stock*
name and residence and number of shares of each stockholder, and’
the time when it is t6 go into operation; a copy of which certificate
shall be filed with the secretary of the commonwealth. No part
of the capital stock can be sold or transferred until the whole amount
thereof is paid up. No person can hold more than half the capital
stock, exclusive of that held as security. .In addition to the capital
stock to which a bank is entitled, the commonwealth may subscribe
thereto an amount not exceeding 50 per cent of its authorized capital,
when provision is made therefor by law. Said commonwealth shall
be entitled to its proportionate share of profits and dividends. Upon
the vote of three-fourths of its stockholders, a bank may increase its
capital stock to an amount not exceeding $1,000,000. The cashier
is required to give bond in not less than $20,000, with two or more
sureties, before entering upon his duties. The debts of a bank shall
at no time exceed twice the amount of capital stock paid in exclusive
of deposits not bearing interest, nor shall there be due the bank more
than double the amount of capital stock paid in. Every bank is
required to keep a reserve in lawful money Or the United States, equal
to 15 per cent of its liability for circulation and deposits in City of
Boston. Trust companies doing business in the City of Boston shall
keep a reserve equal to 20 per cent of its liabilities. Stockholders of
a bank are liable In their individual capacity for the payment of all
the circulating notes remaining unpaid in proportion to the stock they
respectively hold when it stops payment.
Any committee appointed by the general court may examine Into
the affairs of any bank, and shall have free access to its books and
vaults. The bank commissioner shall visit once in every year, and
as much loftener as they, may deem expedient, all such banks, and
examine all their affairs, and make such inquiries as may be necessary
to ascertain their condition, and make a report of such investigation
to the general court.
Chattel Mortgages. Chattel mortgages must be recorded in the
records of the city or town where the mortgagor resides when the
mortgage is made, and in the city in which he then transacts business;
every mortgage must be recorded within fifteen days of the date;
until reoorded the mortgage is not valid except between the parties,
unless possession is delivered to and retained by the mortgagee. On
loans less than $1,000 secured by mortgage, the rate of interest can
not exceed 18 per cent. It is a criminal offense to remove, sell, or
oonoeal mortgaged property.
Corporations. By special act of 1003, chapter 437, the law of
business corporations was revised and applies to all corporations
organized in this commonwealth for the purpose of carrying on busi­
ness within the commonwealth for profit, except the following;
Banks, savings banks, co-operative banks, trust companies, surety
or indemnity companies, safe deposit companies, insurance com­
panies, railroad or street railway companies, telegraph or telephone
companies, gas or electric light, heat or power companies, canal,
aqueduct or water companies, cemetery, or crematory companies, or
any corporations which now have or may hereafter have the right to
take or condemn land, or to exercise franchises in public ways, pro­
vided that corporations formed for purpose of dealing in real estate
shall state the term of the duration of the corporation, such term not
to exceed fifty years.
Under this act three or more persons may associate together and
form a corporation for carrying on any lawful business not Included
in the’ above provisions. Such a corporation must have a capital
of not less than $1,000. There is no maximum limit. The shares
must have a par value of not less than $5. The stock may be divided
into two or more classes with such preferences, voting powers, restric­
tions and qualifications as may be fixed by the agreement of associa­
tion. Upon due organization of the associates and filing a copy of
the agreement of association with the commissioner of corporation»
and on payment of a fee of one-twentieth of 1 per cent of the capital,
but not less than $25, a certificate of incorporation is Issued by the
secretary of state. The capital stock may be Issued for cash property,
tangible or intangible services or expenses. The amount of capital
Btock may be Increased from time to time. The corporation must
have not less than three directors, president, clerk and treasurer.
The directors, treasurer and clerk are elected by the stockholders.
The president is chosen by and from the board of directors. The
clerk must be a resident of the commonwealth. Meetings of stock­
holders must be held within the commonwealth, but directors may
meet within or without the commonwealth. Voting by proxy is
permitted, but no proxy dated more than six months before the
meeting named is valid. Any corporation may hold, purchase, con­
vey mortgage or lease such real or personal property as the purposes
of the business may require.
Every such corporation is required to file an annual report of Its
condition, and if its capital stock is over $100.000, to file a written
statement under oath by an auditor. It is also required to make
an annual return to the tax commissioner. Every corporation organ­
ized under the general law is taxable locally >upon all real estate and
machinery owned by it in the commonwealth, and is subject to a
franchise tax aggregate market value of its shares after deducting
therefrom the value of real estate and machinery subject to local
taxation as above, and the value of any property of the corporation
situated In another state or country and- subject to taxation there.
Every foreign corporation which has a usual place of business
here, or is engaged here permanently or temporarily in the construc­
tion, erection, alteration or repair of a building, bridge, railroad, rail­
way or structure of any kind, shall before doing business here appoint
the commissioner of corporations, its attorney for the service of proc­
ess, such authority to continue as long as any liability remains out­
standing against it in this commonwealth: and shall file with the
commissioner of corporations a copy of its charter, articles or certifi­
cate of incorporation, by-laws, and a certificate setting forth its
name, location, names and addresses of its officers, date of its annual
meeting, amount of its capital stock authorized and issued, the num­
ber and par value of its shares, the amount paid thereon, and details
of any payment thereof not made in money. They are required
to file annual statements with the commissioner of corporations
showing their condition. Officers of a foreign corporation are liable
for all debts and contracts made while they are such officers if any
statement or report required by law made by them is known to be
false. Failure to file the above statements renders every officer
and agent liable to a fine of not more than $500. A foreign cor­
poration is subject to taxation locally on its real estate, machinery
and merchandise in this commonwealth, and to an. excise tax of
one-fiftieth (1-50) of one per cent of the par value of its author zed
capital, but the excise tax shall not exceed $2,000 a year.
Service of process in an action against a corporation, except munic­
ipal and religious corporations and proprietors, may be made on the
clerk, cashier, secretary, or any other officer in charge of its business,
and if no such officer is found, on any member.
Courts. Terms and Jurisdiction. Trial justices may severally
bold courts within the counties for which they are appointed, ana
shall have original jurisdiction, exclusive of the superior court, of all
actions of contract, tort, or replevin, where the debt or damages
demanded or value of the property alleged to be detained does not
exceed $100, and concurrent jurisdiction with the superior court of
such actions where auoh amount exceeds $100 and is less than $300.
Police and district courts may in their respective counties have original
jurisdiction, exclusive of the Superior Court, of actions of contract, tort

BANKING AND COMMERCIAL LAW S— MASSACHUSETTS

or replevin, in which the debt or damages demanded or the value of
the property alleged to be detamed does not exceed $100 and have
original and cbncurrent jurisdiction with the Superior Court of actions
of contract, tort or replevin in which the debt or damages demanded
or the value of the property alleged to be detained is more than $100
and does not exceed $1,000. The supreme judicial court has original
jurisdiction in all equity matters and may on appeal hear all matters
determined by the probate court, and determine questions arising under
wills. Superior court has jurisdiction where the ampunt claimed ex­
ceeds $20. Municipal court of the city of Boston has jurisdiction con­
currently with the superior court in the county of Suffolk, in actions
where the debt does not exceed $2,000, provided one or more of the
defendants resides or has bis usual place of business in the bounty of
Suffolk.
Land Court has exclusive original jurisdiction for registering titles
to real estate under the Torrens system, and of writs of entry and
petitions to clear titles to real estate.
Depositions. The deposition of a witness without the State may
be taken under a commission issued to a person qualified to take
depositions as stated in commission in any other state or country by
the court in which the casq is pending, or it may be taken by a com-.
missioner appointed by the governor for that purpose. Every
deposition taken under a commission must be upon written inter­
rogatories, to be exhibited to the adverse party, and cross-inter­
rogatories may be filed by him but neither party to the action shall
attend at the taking of the deposition or be represented by attorney.
Oral examination is allowed if the court so orders.
Dower and Curtesy. A wife is entitled to dower in this State as
at common law. A husband shall on the death ol the wife hold onethird of her land for his life, this interest is known as curtesy. If the
deceased leaves no issue, the surviving husband or widow shall take
$5,000 and one-half of the remaining real estate and personal property.
If deceased leaves issue, the surviving husband or widow takes onethird of the remaining real estate and personal property. If deceased
leaves no kindred, a surviving husband or widow shall take the whole
of the remaining property.
Executions can not issue until twenty-four hours after judgment
rendered, and an original execution must be issued within one year
after plaintiff is entitled to sue out the same. Original executions in
all courts are returnable within sixty days alias executions five years.
There is no stay of execution except by special order of court. Execu­
tions may be served by levy upon real or personal estate of the debtor
or by arrest when arrest is allowed. Certain personal property and
real estate are exempt from levy.
Exemptions. Homestead, if recorded, to the value of $800.
Necessary wearing apparel of family, certain specified articles ol
household furniture, and $800 worth in addition thereto; library, $50;
tools and implements, $100; stock, $100; boats and fishing tackle,
etc., $100; one cow, six sheep, one swine, and two tons of hay, sewing
machine, necessary wearing apparel, pew in church, etc. Materials and
stock designed and necessaryfor carrying on his trade and Intended to
be used or wrought therein, not exceeding $100 in value. Shares in
oo-operative associations not exceeding $20 in value, funds of railroad
relief societies assessment insurance benefits, uniforms, arms, and
equipments of militia officers.
Frauds, Statute of. No contract for sale of goods for $500 or
more shall be good unless the purchaser accepts and receives part, or
gives something in part payment or unless a memorandum in writing
Is made of the bargain and signed by party to be charged. No action
ean be brought in the following cases unless the contract is In writing
and is signed by party to be charged or his agent: 1. To charge
an executor, administrator, or aslgnee in Insolvency. 2. To charge
a person for the debt of another. 3. On a contract for the sale of
tern estate or interest therein. 4. On an agreement not to be per­
formed within one year.
Holidays. January 1st., New Years Day, February 22nd,
Washington’s Birthday. April 19th, Patriot’s Day. May 30th,
Decoration Day. July 4th, Independence Day. First Monday
in September, Labor Day. October 12th, Columbus Day. Novem­
ber, Thanksgiving Day. December 25th, Christmas Day. Revised
Laws provide that when the day or the last day for the performance
of any act falls on Sunday or on a legal holiday, the act may be per­
formed on the next succeeding secular or business day, unless it is
authorized or required to be performed on Sunday or on a legal holi­
day. Also when any of said dates fall on Sunday, the following day
shall be observed as the holiday. Banks close at 12 o’clock noon
on Saturdays.
Interest. Legal rate, 8 per cent, which Is allowed on judgments.
There are no usury laws, except on loans less than $1,000, and any
rate may be reserved or contracted for in writing, and rate reserved
In note is payable after maturity of note as before; loans less than
$1,000, shall be dischargeable upon payment or tender of the sum
actually borrowed and interest in an amount not to exceed 3 per cent
per month. A supervisor of loans has charge of the business of making
small loans. (See Statute of 1916, Small Loans Act.) No bond can
be issued by a corporation at more than 7 per cent.
Judgments in lower courts may be entered within four days of
default, but do not constitute a lien upon realty or personalty of
debtor not attached on the original writ. Are not outlawed for
twenty years. Foreign judgments are proved by a copy of the record.
Limitation of Suits. Contracts or liabilities, express or implied
and not under seal and not otherwise limited, six years; real actions,
those upon an attested note, if suit is fraught by original payee or
1his executor or administrator, and personal actions on contracts not
limited, twenty years. Revivor: Part payment by the party sought
to be charged or new promise to pay in writing. Absence from the
State prevents the running of the statute of limitations as to a defen­
dant until he comes into the State. If the person entitled to bring an
action is a minor or .is insane or imprisoned when the right to bring
such section first accrues, such action may be commenced within the
time hereinbefore limited after the disability is removed. The Statue
does not run pgainst those residing out ,of the State.
Married Women. The real and personal estate of a married
woman, acquired at any time, remains her sole and separate property,
not subject to the control of her husband, nor liable for his debts.
Married women may carry on trade or business, make contracts, sue
and be sued, in all matters relating to their separate property, and
such contracts are not binding upon the husband. Wife carrying
•n business on own account must record certificate with city or town
clerk; neglect to do this renders her property so employed liable for
husband’s debts, and renders husband liable for her debts thus con­
tracted. Deeds, but not mortgages can be made direct from husband
to wife. (See Dower and Curtesy, as to rights of husband in estate
of deceased wife.)
> fc
,,
Mortgages. Mortgages now In common use contain a provision
authorizing a sale of premises in case of a breach of any of the con­
ditions. Power of sale mortgages may be foreclosed by a sale in
accordance with the provisions of the power contained in the mort­
gage. and an affidavit that the mortgagee has complied with the pro­
visions of the mortgage shall be recorded in the registry of deeds
within thirty days after the sale. Notice of the sale must be pub­
lished once a week, for three weeks (sale to be not lass than twenty•ne days after first publication), the publication to be in the city or
town where property Is situated or, if no paper so published, then in

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1749

a paper published In the county. Proper execution of the power
et sale forever bars all right of redemption. Mortgages may also be
foreclosed by entry and peaceable possession for three years, which
entry must be certified by two witnesses. Possession may also be
obtained by action at law.
Notes and Bills of Exchange. The law of negotiable Instru­
ments Is codified in Revised Laws, Ch. 73, taking effect January 1,
1899. It does not apply to instruments made and delivered prior
to that date. An Instrument to be negotiable must be in writing,
signed by the maker or drawer; must be a promise to Pay a sum cer­
tain in money, on demand or at a fixed time payable to order or
bearer. An Instrument payable upon a contingency is not negotiable.
The validity and negotiable character of the Instrument are not
affected by the fact that it is not dated, or does not state where pay­
able. An instrument is payable on demand when It is expressed
payable on demand, or on presentation, or when no time for payment
u expressed. When an instrument is payable on demand present­
ment must be made within a reasonable time; presentment must be
made at a reasonable hour on a business day, at the place specified;
when no place is specified or address given then at the usual place of
business or residence; the Instrument must be exhibited and when
paid delivered to party paying it. Presentment for payment is dis­
pensed with when the drawee is a fictitious person, or by waiver of
presentment. Every negotiable Instrument is payable at time fixed
therein without grace, except drafts and bills of exchange payable
within this State at sight, on which three days grace are allowed;
when the day of maturity falls on Sunday or a holiday the instrument
Is payable on the next succeeding business day. Instruments falling
due on Sunday are to be presented for payment on the next succeeding
business day, except that those payable on demand may at option
of the holder be presented for payment before 12 o’clock noon on
Saturday, when that entire day is not a holiday.
The acceptance of a bill of exohange must be in writing and signed
by the drawee. The drawee Is allowed twenty-four hours after pre­
sentment to accept the bill.
When a foreign bill Is dishonored by non-acceptance It must be
protested for non-acceptance; if not so protested the drawer and
Indorsers are discharged.
A negotiable promissory note Is an unconditional promise in writing
by one person to another, signed by the maker, to pay on demand or
at a fixed time a sum of money to order or to bearer. A check is a
bill of exchange drawn on a bank, payable on demand A check
must be presented for payment within a reasonable time after its
Issue. When a check is certified at request of holder the drawer and
indorsers are released.
A bank Includes any person or association of persons carrying on
business of banking, whether incorporated or not.
The negotiable instrument act of Massachusetts Is about the same
as the law now in operation In New York, Connecticut, Colorado,
Florida, Maryland, and Virginia. All persons becoming parties to
promissory notes payable on time by a signature In blank on the back
thereof, shall be entitled to notice of the non-payment thereof the
same as indorsers. Checks drawn on a bank may be paid notwith­
standing the death of drawer if presented within ten days after date,
and a savings bank order if presented within thirty days after date.
Suits. Civil actions in general, except those concerning land (it
one of the parties lives In the State), must be brought in the county
where one of them lives or has his usual place of business. Where
all parties are non-resident, action may be brought in any county.
Attachment of property owned by defendants residing out of State
may be made sufficient to give jurisdiction in suit after notice published
by order of court. Such notice to be given within one year from the
entry of the suit. Persons commorant in State may also be arrested
on mense process and held to bail.
Taxes are assessed as of the first day of April in each year, and on
real estate are a lien for two years after they are committed to the
collector; but the collector may sell real estate for taxes after two
years have elapsed, unless the estate has been alienated prior to the
giving of the notice of such sale. If not paid on demand, collector
may sell after advertisement. Owner, his heirs or assigns, may
redeem within two years by paying or tendering to the collector
when he exercises the power of taking, or to the purchaser of the sum
paid by him, with 10 per cent interest and all necessary Intervening
charges, and person having title may redeem in two years after notice
If property is taxed to a person unknown, or to tenant or occupant
not owner, or wrong person or mortgagee of record. The purchaser
under a tax sale, if resident in the city or town where the estate is,
must record his residence or place of business. If he resides elsewhere
he must appoint an agent or attorney and record such appointment,
under Statute 1916 ch. 269 income from stocks, bonds, etc.;, is subject
to an annual tax at rates stated. For full details see said ch. 269.
Legacy and Succession Tax. All property within the state
belonging to inhabitants of the state and all real estate within the
state belonging to persons who are not inhabitants which shall pass
by will or by laws regulating intestate succession or by deed, grant or
gift to take effect in possession after the death of the grantor to any
person, absolutely, or in trust, except to or for the use of charitable,
educational or religious societies or institutions the property of which
is by the laws of the state exempt from taxation, or for or upon trust
for any charitable purposes to be carried out within the State, or to or
for the use of a city or town within the State for public purposes, shall
b e-subject to the following tax; all property passing to a husband, wife,
lineal ancestor, lineal descendant, adopted child, lineal descendant of an
adopted child, the adoptive parent, or lineal ancestor of ah adopted
parent, the wife or widow of a son, or the husband of a daughter, of
the decedent, shall be subject to a tax of one pei; cent of its value if
said value does not exceed $50,000, to a tax of two per cent if its value
exceeds $50,000 and does not exceed $250,000, to a tax of 3 per cent
If its value exceeds $250,000 and does not exceed $1,000,000, and to a
tax of 4 per cent if its value exceeds $1,000,000. All such property
passing to or for the benefit of a brother, sister, nephew or niece of a
decedent, shall be subject to a tax of 2 per cent of its value if its value
does not exceed $10,000, to a tax of 3 per cent if its value exceeds
$10,000, and does not exceed $25,000, to a tax of 5 per cent if its value
exceeds $25,000 and does not exceed $50,000, to a tax of 6 per cent if
its value exceeds $50,000 and does not exceed $250,000, to a tax of
7 per cent if its value exceeds $250,000 and dobs not exceed $1,000,000,
and to a tax of 8 per cent if its value exceeds $1,000,000.
Property passing to or for the benefit of any other person, not
exempt, shall be subject to a tax of 5 per cent if its value does not
exceed $50,000; to a tax of 6 per cent if its value exceeds $50,000, and
does not exceed $250,000; to a tax of 7 per cent if its value exceeds
$250,000 and does not exceed $1,000,000; and to a tax of 8 per cent
if its value exceeds $1,000,000.
No bequest, devise, or distributive share passing to a husband, wife,
father, mother, child, adopted child, adoptive parent of a deceased,
unless its value exceeds $10,000, and no other bequest, devise, or dis­
tributive share of an estate unless its value exceeds $1,000 shall be'
subject to a tax.
, _,
Shares of stock of non-resident decedents in Massachusetts corpora­
tions, national banks and trust companies are subject to k tax on the
trans ert ®^eo^ g igxs, applying only to property passing upon
the death of persons dying after this act and within one year there­
after subjects such property to an additional tax of twenty-five per
cent of the inheritance taxes imposed by Massachusetts statutes.

1750

BANKING AND COMMERCIAL LA W S— MICHIGAN

Transfer of Corporation Stock. The delivery of a stock certifi­
cate of a Massachusetts corporation to a bona fide purchaser or pledgee,
for value, with a written transfer of the same, or a written power of
attorney to sell, assign or transfer the same, signed by owner of cer­
tificate, shall be a sufficient delivery to transfer the title as against
all parties.
Trustee Process. All personal actions except replevin, and actions
of tort for malicious prosecution, slander, libel, or assault and battery
may be begun by trustee process, and goods, effects, or credits of
defendant in hand,of a third person may be attached and held to
satisfy final Judgment.
Wills. Any person of full age may make a will disposing of his
estate. The will must be signed by the testator and attested by
three witnesses in presence of the testator. A married woman may
make a will, but such will shall not deprive her husband' of his tenancy
by the curtesy in her real estate, or of a life estate in one-half thereof
if they have had no issue bora alive.

stockholders. No more tnan tne legal rate of interest in advance
shall be received; file correct list of stockholders with commissioner
of banking, and county clerk and report four times a year to be
published in newspaper where bank is conducted. Commercial loans, i
not to exceed 50 per cent of the capital, on real estate securities, by
two-thirds vote of directors, except to secure debts due the bank.
Savings deposits payable as directors prescribe; commercial deposits
payable on demand. * Banks combining commercial and savings
deposits cannot issue post notes nor any bill or note or certificate
ets money. Savings depositors preferred in distribution of savings
department funds. Stockholders Individually liable equally and
ratably and not one for another to the amount of the par value of
stock, for the benefit of depositors. All transfers o f property, and
payments of money after actual or contemplated in s o lv e n c y to pre­
vent legal application of assets null and void; total liabilities of any
borrower shall not exceed one-tenth part of the whole capital and
surplus, may be increased'to one-fifth by two-thirds vote of directors;
not to Issue certificates of deposit for borrowed money nor make
partial payments on such certificates; not liable to depositors for pay­
ment of a forged or raised check unless notified within three months
after return of voucher.
-SYMOPSIS OF
All shares of bank stock shall be assessed against their owners in
the township, village, or city where the bank is located, taxes not
T H E L A W S OF M IC H IG A N
paid by stockholders, bank's duty to pay.
Trust deposit and security companies may be incorporated under
the general laws of the State applicable thereto. Seven or more
R E B A T IN G TO
persons may associate to establish—capital graded from $100,000
to $5,000,000 according to population of cities where conducted;
BANKING AND COMMERCIAL USAGES
deposit with the state treasurer 50 per cent of the capital stock
to bonds or real estate mortgages worth doiible the amount secured;
Revised b y H e n r y W u n s c h and E d w a r d F . W u n s c h .
powers
suoh as are customary for trust companies. They cannot
Attorneys at Law, Detroit, Michigan.
do^ny banking business.
Collaterals. Stocks, bonds or other personal property pledged
j (See Card in Attorneys' List.)
as collateral security for payment of money or the performance of
obligation, upon default may be sold at public (or private sale
Acknowledgments of real estate Instruments may be before one any
if
so authorized by the contraot) to satisfy the debt; but before publle
of the following officers: 1.—Within this State: Any judge, clerk sale,
ten days notice must be given and served on pledger or legal
or commissioner of any court of record, notary public, justice of the representative
personally or by mall; such sale must be between
peaoe or master in chancery. The official should certify that “ On nine o’clock forenoon
and sunset, at a public place in the township,
this day before me personally appeared............................to me known
to be the person or persons who executed the foregoing Instrument city, or village where held.
Conditional
Sales.
Are valid between the parties: if consignee
and acknowledged that he (or/ they) executed the same as his (or
their) free act and fieed.” Notary’s certificate must show date of or purchaser, on condition title is retained by seller, is authorized by
expiration commission. Such instruments must have two subscribing the contract to sell, all such sales are valid. The consignee or pur­
witnesses. 2.—In any other state, territory, or district of the United chaser cannot make valid sales against the legal owner without the
States: Same officials as described above or any officer authorized authority of consignor or legal owner. (See Liens.) (See Frauds.)
by the laws of such state, territory, or district, or before a com­
Conveyances. Any person, of full age or otherwise capable may
missioner appointed by the Governor of this State for that purpose. convey by deed any interest in lands, whether in actual possession
Any such Instrument niay be executed according to the laws of any or not. All grants and devises of lands to two or more persons create
such other state or territory. If officer has no seal, certificate of the estates In common; no joint tenancy, unless expressly so declared,
Clerk of the comity or district, or of the Secretary of State within except such as are made in trust or to executors, and except such as
which taken shall be attached. 3.—In any foreign country: notary are made to husband and wife, who take as “tenants by entirety.”
public, or minister plenipotentiary, minister extraordinary, minister The words “conveys and warrants” in the deed describing the premises
resident, charge d’affairs, or commissioner or counsul of the United and specifying the consideration, dated, duly signed and acknowledged
States, appointed to reside therein.
by grantor are sufficient to convey title in fee simple and to warrant,
Actions. Common law forms of pleadings are used, but In some that grantor and his heirs and personal representatives is. seized of
respects modified by statute. Non-resident plaintiffs must give the premises, has good right to convey same, guarantees quiet pos­
session thereof, and that he will warrant and defend the title against
security for costs.
claims. The words "conveys and quit claims” duly signed,
Administration of Estates: In probate court of each county. all lawful
and acknowledged by grantor are sufficient to convey grantor’s
Claims'are passed on by judge of probate or commissioners appointed sealed
Interest.
The words “mortgages and warrants” and duly described
for eaoh estate; within such time allowed by the court, not exceeding
specifying “to secure the payment” and reciting the sum
In first instance one year nor less than four months; may be extended premises,
which mortgage is given and the notes and other evidences of
not to exceed two years from date; the court may revive commis­ for
debt secured thereby, mortgage being dated, signed, sealed and
sion any time before estate is closed and allow further time three acknowledged
by grantor, is sufficient and warrants perfect title in
months to examine any claim; an appeal to circuit courts from allow­ the grantor and
against all previous incumbrances; omitting the
ance or disallowance of any claim. All claims barred, not presented word “warrants” sufficient,
but without any warranty. Dower and
before administration is closed:—
homestead rights not waived, unless wife Joins in the mortgage. No
Administration of Intestate estates is granted: 1st, to surviv­ homestead right will avail against the mortgagee if there is no wife,
ing husband or wife, or kin or grantee, or such one of them as judge nor If wife joins in the mortgage. Married women of full age joining
may appoint, or as they may request. 2nd, to one or more of the with husbands in any deed, mortgage, power of attorney or other
principal creditors. ^3rd, to such other person as the judge may think writing, shall be bound in, respect to their own title.
proper. Non-resident administrators and executors appointed In
Corporations. Banks, mining, manufacturing, insurance—fire,
other states, territories, or foreign countries cannot sue as such In marine,
accident, burglary—printing and publishing, manufacturing
this State without procuring administration in this State.
and mercantile, or a union of the two, partnership associations, real
Affidavits may be taken by any judge, master in chancery, clerk estate associations, real estate, railroads, street railways, co-operative
of court, justice of the peace, police magistrate, notary public, or benefit associations, co-operative savings associations, and religious
circuit court commissioner. Any oath authorized or required to be societies, are respectively organized under State general laws; required
made, without the State for use in judicial proceedings here, must be to file with the secretary of state, articles of association.
authenticated by judge of a court having a seal, and the genuineness
Business Corporations. Three or more persons may organize. One
of such Judge’s signature, existence of the court, and that such judge half
capital must be actually subscribed and at least 10 per cent
Is a member thereof, certified by the clerk of the court under the seal eitherof in
money or property must be paid in; if in property same
thereof. If in any other state or territory, may be taken before a must be for
the purpose of the business, and described and its value
commissioner appointed by the governor of this State, or any notary specified in the
Stockholders vote in person or by proxy.
public or justice of the peace authorized by the laws of any such state Each share has articles.
as many votes for directors as directory numbers,
or territory to administer oaths therein.
the aggregate vote may be distributed for one or more of direc­
In actions at law affl davits of amount due on open and stated and
tors. May issue preferred and common stock of the par value of
accounts, attached to and served with process as commencement of $10
or $100. Preferred entitled to dividend not to exceed 8 per cent
suit make a prima facie case, unless denied by the defendant’s affidavit quarterly,
semi-annually or annually and if not paid be accumulated,
filed apd served with plea.
and paid, before any dividend paid on the common. Artioles of
Aliens. May inherit or purchase and hold and convey personal association to be recorded in the county clerk’s office of county where
and real estate
operations carried on, and office of the secretary of state. May hold
estate for the purpose of the corporation and such as acquired
Arbitration. Competent parties to any controversy which is or- realsecurity
or in payment of debts; managed by not less than three
might be the subject of an action at law or suit in equity, may agree as
chosen by the stockholders annually »hold office until suc­
to arbitrate, and judgment of any circuit court rendered upon the directors
cessors are chosen; make duplicate reports in January or February
award. No arbitration Of claim of any person to any estate in fee annually
for the fiscal year last ending, of the financial condition and %
or for life In real estate.
of the corporation to secretary of state: stockholders are
Arrest. By writ of capias in personal actions In tort and In actions property
liable
for
labor
debts; they make all by-laws for corporation. Foreign
tor money collected by any public officer; or upon promise to marry; corporations organized
under the laws of any other state of the United
also by warrant allowed by any justice of the peace or judge of a states or of any foreign
unlawful to carry on business in
court of record, under the fraudulent debtor's act, when the creditor this state until certificatecountry,
of authority procured from secretary of
has commenced suit or obtained judgment and the debtor has disposed State:
not
capable
of
making
valid
contracts
this state until author­
of or concealed, or is about to dispose of or conceal property liable to ized to carry on business: unlawful for any in
person to act as agent of
execution, or the debt was fraudulently contracted.
until authorized to do business. Sales/ of goods or merchandise by
Assignments for the benefit of creditors are void unless made the right of inter-state commerce not affected by state laws.
without preferences; must comprise all of assignor’s property not
Terms and Jurisdiction. Circuit courts, holding two
exempt from execution. The circuit court In chancery has super­ orCourts.
more terms annually in each county, have original jurisdiction in
visory jurisdiction of such assignments.
all oases of law and equity wherein the amount in controversy is $100
Attachments. Writs may be issued from justice and circuit courts and upwards; and have appellate jurisdiction from justice of the
on affidavit showing: debt due on excess Or implied contract, and peace probate courts and other inferior tribunals. Justice courts in
either that the debtor has absconded or is about to abscond from each county have jurisdiction of cases at law involving from $100 to
the State or has assigned or disposed of or is about to assign and $500. In Grand Rapids is a "Superior Court” for civil oases, limited
dispose of his property with intent to defraud his creditors; or is a to parties resident of the city. Probate courts in each county have
non-resident of the state, or a foreign corporation. May issue from Jurisdiction of estates of deceased persons and testamentary trusts.
the circuit court for debt not due but to become dqe, upon satis­ Supreme court has Anal appellate jurisdiction from circuit, munic­
factory showing to the circuit judge, but in such cases judgment can­ ipal \and recorder;’ courts
not be taken until debt is due. May issue in actions of tort against
DAys of Grafce. Abolished.
non-residents in certain cases.
Depositions. Testimony of any witness without the State or
Banks. Incorporation of:—Any number of persons not less than more
than fifty miles from the court may be taken de bene esse,
five may associate to establish for a period not to exceed thirty years,
any Judge of any state or of the United States, or of any foreign
commercial banks, savings banks, and banks having for both classes. before
country, or before any circuit court commissioner in this or any other
Capital required is graded—$20,000 to $250,000, according to popula­ state
the United States, or any commissioner of this State, any
tion of cities or villages where conducted. Upon filing articles of asso­ consulororofconsular
officer, justice of the peace, officer or notary public
ciation. commissioner of banking department and Secretary of State
to administer oaths in the state or county where taken
issue certificates of organization; board of directors chosen by the authorized
and not interested as attorney or counsel or In the event of the cause;

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BANKING AND COMMERCIAL LAW S— MICHIGAN

reasonable notice given' In writing by party or his attorney proposing
to take, to opposite party or his attorney of record, stating names of
witnesses, time and place of taking and official before whom to be
taken. Commissions to take depositions of any witnesses may be
Issued by circuit court wherein the suit Is pending or by the judge or
register thereof, or by a justice of the peace In a suit before him on
written interrogatives. Fees for taking, certifying, sealing and for­
warding $2; for each 100 words In deposition ten cents and copies
three cents. Each party pays for his own examination or cross
examination in the first Instance.
Descent. Real estate and personal property of Intestate after
payment of debts and administration expenses and allowances, as
follows:
Real Property. One-third to widow, remaining two-thirds to his
Issue; If no widow the whole to his Issue to share equally If of same
degree of kindred to Intestate, otherwise by representation; If no
issue, husband or widow to the father and mother In equal shares.
If only one living to the survivor alone. If surviving husband or
widow and no issue, one-half to such survivor, remainder to father
and mother or ‘their survivor. If no issue or parents, husband or
widow, equally to brothers and sisters and the children of deceased
brothers and sisters; if none such relatives, to next -of kin in equal
degree through nearest ancestor; if any unmarried child dies under
age, his or her inheritance from any parent, to other Surviving children
or same parent and their issue by representation. .If husband or wife
survive and no issue, parents, brothers or sisters, or their children to
husband or wife, and if no foregoing relatives whomsoever estate
escheats to State. Illegitimates heir to mother; dying intestate
estate descends to mother or her relatives if she be dead; become
legitimate by parents, intermarriage or father’s written acknowledg­
ment. The foregoing provisions for the widow are In lieu of dower
and homestead right unless one year after administration granted
she applies for assignment of dower and homestead In which case
her Interest in deceased husband's lands is limited to the dower and
homestead right and the residue shall descend as above provided for
that portion not taken by her.
Personal Estate. Residue—one-third to widow, two-thirds to
children or Issue by representation; one child; one-half to child and
one-half to widow; no widow or child; to all lineal descendants equally.
If widow and no children or issue, to widow, not exceeding $3,000;
estate excess of that; one-half excess to widow, other half to surviving
parents, and if none such to brothers or sisters; and none such, all
such excess to widow. Married women Intestate, one-third to hus­
band,, two-thirds to her children or their issue by representation;
only one child or issue of deceased child; to husband and such child
equally; If no child or issue of deceased child, one-half to husband
and other half to surviving parents, and if none; to brothers or sisters
or Issue of them and if none, all to husband. In any other case same
as for real property. Estates by courtesy abolished.
Dower. Wife entitled to use of one-third part of all lands owned
by her husband as estate of inheritance any time during marriage.
No dower as against mortgages for purchase price, or mortgages made
before marriage, except in surplus. Must exercise option to take
dower in lieu of rights under will or statute within one year after
administration; residing in this State and eighteen years of age and
upwards may bar by Joining in husband’s conveyances and mort­
gages or by deed alone to one who has husband’s title, intent to bar
being expressed; or by jointure secured as bar.
Execution. May issue to any county at once, unless stayed after
judgment In oircuit court. In lustice courts, expiration of five days;
not Hens on real estate or personal property until levy by proper
officer. Real estate is sold without appraisement to the highest
bidder, except homestead, to determine excess of value above $1,500
redemption claim. Defendant or his heirs or assigns may redeem
within twelve months, his judgment creditors and others having valid
liens within fifteen months from date of sale. Execution against the
body may be issued on all judgments in actions of tort. Personal
property levied on, after setting oil exemptions, may be sold on six
days’ notice at public sale, to highest bidder to a sufficient amount to
satisfy the debt and costs; no redemption after such sales. Execu­
tions from justice courts do not run against real estate.
Exemptions. Homestead—selected by the owner and occupied
by him; not exceeding forty acres of land and,dwelling thereon; or one
lot with dwelling thereon within any recorded town plat or city or
village not exceeding in value $1,500. Same cannot be alienated or
incumbered without consent of wife or sold on any execution or any
other final process from any court, unless appraised to exceed the
value of $1,500 and that amount Is paid or, realized on sale under
such process. Exemption of homestead continues during Its occupa­
tion by the widow or minor children of deceased person who when
living occupied the same.
Fraud. Criminal fraud—obtaining the signature of any person,
firm, or corporation with Intent to defraud fraudulently Issuing or
selling or duplicating and disposing of any stock, scrip, or evidence of
debt of tiny bank or other incorporated company of this State; issue
of any false receipts by warehousemen, merchants, or their agents—
reoelpt; or to wrongfully dispose of or convert property to thei’r own
use after Issuing receipt; wrongfully removing or disposing of any
personal property by any agent delivered upon written agreement or
instructions; wrongfully to dispose of property covered by chattel
mortgage by mortgagors or of property held by contract of purccase
without legal title by such purchaser or of property held under any
lease by lessor. For any officer or stockholder of any bank or any
other person for such bank; to sign, issue or knowingly put in circula­
tion any note or bill of any such bank, before the capital stock is
paid in, or before the president and directors thereof have complied
with the law; for any officer or agent of.any bank knowing such bank
to be Insolvent or in contemplation of Insolvency, or for any assignee
of the property of such bank to sell or dispose of,any money dr property
of such bank with Intent to defraud, delay or hinder creditors thereof;
or for any agent or person to fraudulently obtain or dispose of any
money belonging to any insurance company organized in this State.
Frauds—»Statute of. No executor or administrator is liable on
any special promise to answer damages out of his owm estates.
Fraud. Civil. Sales, transfers and assignments of stocks of goods,
wares merchandise and fixtures in bulk pertaining to conduct of any
business, otherwise than In ordinary course of trade of seller, etc.,
void as against creditors, unless the seller, etc., five days before sale,
make Inventory of the goods and cost price to seller of each article
and unless the purchaser demands from seller list of names and
addresses of creditors and his Indebtedness, and within five days
before taking possession and payment notifies every creditor of such
sale.
Garnishment. Process may Issue in any action brought In any
justice court or circuit court on contract expressed or implied, judg­
ment or decree, to hold whatever property any person may own or
have belonging to the debtor. Bills of exchange and promissory
notes due in the earnishee’B hands at the time of serving summons
are gamishable. Property, real or personal, things in action, equitable
Interests, held by fraudulent transfer from the debtor and any prop­
erty liable to execution or to the payment of the debts of the debtor
In the garnishee’s hands may be recovered; wages of any householder
not more than $30 and less than $8 for his personal labor, and of any
other person for labor not more than $15 and not less than $4; and
benefits payable by fraternal beneficiary societies, shares In building
and loan association of any debtor, except as to one having a home­
stead exemption, are exempt from garnishment.

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175i

Holidays,' (Legal) January 1st, February 12th, February 22nd,
May 30th, July 4th, first Monday in September, Thanksgiving Day
as specified by the Governor of State, December 25; every Saturday
from 12 o’clock noon to 12 o’clock midnight, all -National, State,
County, or »City election days. ■
Husband and Wife. If sued together she may defend and if
either neglect to defend the other may be ordered to defend for both.
If he deserts her she may be authorized by the probate court to proseI cute or defend In his name. If either wrongfully retains the other’s
property, acquired before or after marriage, the owner may sue for
same as If unmarried. Neither liable for the debts of the other before
marriage, nbr earnings or property of either nor the income thereof,
nor shall either be liable to make compensation for labor or services
rendered for the other. Husband is liable after marriage for family
expenses, and for debts incurred by the wife with his express or
implied authority. Either may constitute the other an attorney in
fact to dispose of property. Expenses of family and children’s edu­
cation are not chargeable upon the property of the wife but are
chargeable against the husband and he may be sued therefor.
Interest. Legal rate 5 per cent but by written agreement may be
charged not to exceed 7 pe,r cent. Forfeiture of all Interest is penalty
for usury. When any installment of Interest upon any note, bond,
mortgage or other written contract shall become due and remains
unpaid, interest Is allowed on such InstaUment from the time It became
due at same rate specified In the obligation or at the legal rate. Legal
rate collectable on all moneys due on any written obligations and on
aU moneys due on all contracts express or implied, whether verbal
or written; and on settlement of accounts from day of ascertaining
balance due; and On judgments from day of entry; and on verdicts of
Jury from date to date of entry of judgments thereon. In computing
time of interest and discount on negotiable paper, a month means
a calendar month and a year a calendar year of twelve months.
Judgments of courts of record are not liens on real estate or
personal property until by levy thereon of execution Issued from the
courts upon such judgments. Liens under execution levied upon
real estate exist five years from and after the levy. Judgments expire
by limitation In ten years from date of entering In courts of record
and six years in justice courts, and cannot be renewed except by action
at law thereon before expiration. Judgments of the Justice of the
peace may be entered In the circuit courts on transcript duly taken
to the circuit court and thereupon become judgments of such circuit
courts. »
Liens. Any person, who pursuant to a contract with any owner,
part owner or leasee of any land, furnishes labor or materials in the
construction of a building, etc., on such land, shall have a lien on such
structure and land to the extent of one quarter section or If In a city
or village, the lot or lots upon which such structure is situated. And
any sub-contractor, who furnishes materials or labor In carrying fore­
ward or completing such contract shall havfe a lien upon such building
and land to the extent of the Interest of such owner, etc. Any person,
artisan, or tradesman for labor and skill applied upon any property
delivered for that purpose shall have a prior lien for amount due for
such labor. Hotels, boarding houses and lodging houses have a lien
upon baggage and other valuables of guests, boarders or lodgers for
accommodations. Any person keeping and caring for domestic ani­
mals intrusted to them for that purpose have a Hen for proper charges.
Limitation of Suits. Judgments of courts of record and sealed
Instruments ten years, justice court Judgments'six years; accounts
and notes and other simple contracts and tor taking, detaining or
injuring goods and chattels, six years from the date the action accrued;
revivor: part payment, of promise In writing to pay. Absences from
the State deducted from the period of limitation. Mortgages fifteen
years after due or after last payment thereon. .For trespasses on
lands/assault and battery, false imprisonment, slanderous words or
libels and mal-practice against physicians, surgeons, and dentists,
two years. For misconduct of sheriff or their deputies, three years,
and for personal’injuries three years. For the recovery of real prop­
erty, five years where the claim arises against executors, guardian’s
qfr sheriff’s deed; five years where the defendant claims and is in pos­
session of lands under deed made by auditor general of this State for
taxes; and by minors and others under legal disabilities three years
after removal of such disabilities; In all other cases fifteen years.
Limited Partnerships. May consist of one or more general and
one or more special partners. Specials contribute specific amount
of capital in cash or property at cash value, and If actually paid in
not liable for firm's debts in excess of such special capital. General
partners transact the business of the firm.
Married Women. May make contracts in respect to their own
property and may hold and enjoy, and have the same rights and
remedies regarding their property as If unmarried. They may carry
on business in their own names with their own property by consent
of their husbands; cannot enter Into partnership with husband or
any other person and become liable for the firm contracts. Married
women’s contracts to pay or to become liable for debts of husbands or
other person voidable, may however charge their real estate or per­
sonal property to secure such Indebtedness by deed, mortgage of
contract. Married women are entitled to have ariH to hold their
earnings made by their own personal effort, and may make any con­
tracts relative thereto.
Mortgages on real estate, executed and acknowledged the same
as deeds; may be foreclosed under power of sale by advertisement
or In circuit court in chancery of the county wherein the property
Is situated. Trust deeds not In customary use but may be made and
executed and will be treated as mortgages.
Chattel mortgages and bills of sale; intended as security by mort­
gagor, signed and delivered to the mortgagee, sufficient between the
parties, but void as to creditors, subsequent purchasers and encum­
brancers In good faith and without notice, unless such mortgages and
bills of sale or true copies are filed in the city or township clerk’s office
where mortgagor resides, or if non-resident of State, in city pr town­
ship where the property is situated; and unless affidavit of mortgagor
or of some one for him having knowledge of the facts Is annexed to
the mortgage or bill of sale, showing consideration Is actual and
adequate and in good faith. Without such affidavit officers forbade
to receive and file such mortgages; cease to be valid against creditors,
subsequent purchasers, and encumbrancers in good faith, on expira­
tion of year from filing date, unless renewed within thirty days next
preceding expiration by affidavit of mortgagee showing his Interest,
etc., filed ana annexed to the mortgage in said clerk’s office; likewise
each succeeding year while the mortgage exists.
Negotiable Instruments.' A promissory note is an unconditional
promise In writing to pay a sum certain in money, on demand, or at
a fixed and determinate future time, to the order of a specified person
or to bearer.
A bill of exchange Is an unconditional order of one person to another
requiring the drawee to pay to a certain person, or order, or bearer on
demand or at a fixed or determinate future time a certain sum of
money May be payable In installments and contain provisions that
j on default the whole sum of money shall become due with exchange,
j fixed or current rate. Interest and attorney’s fees for collection. May
[ authorize sale of collaterals and confession of judgments. If it reads
“ I promise to pay,” all makers are jointly and severally liable.
| Must not be payable upon contingency. Cannot waive exemption
from execution. Need not specify "for value received” nor place
where drawn or payable. If issued, accepted, or indorsed when over

1752

BANKING AND COMMERCIAL L A W S— MINNESOTA

duo la payable on demand. May be payable to two or more payee«
Jointly or one or more of several payees. Want or failure of con­
sideration, a defense against one not a holder In due course, partial
failure a defense pro-tanto. One not a party, or the Payee of the
paper placing a signature in blank on the paper before delivery becomes
an endorser. Indorser engages on due presentment the paper shall
be honored and that he will pay to holder or any subsequent indorser,
who may be compelled to pay; where maturity falls on Sunday or on
a holiday, payment due on the next business day; but where all of such
day not a holiday may If payable on demand be presented before noon.
Fraud In procuring signatures and delivery defense against any holder.
Presentment not necessary to charge anyone primarily liable. If
not payable on demand present on the day due; If on demand present
within a reasonable time after issue; bill of exchange payable on
¡demand present reasonable time after last negotiation.
Fraudulent or material alterations do not affect the original instru­
ments in the hands of innocent holder in due course.
Unconditional promise in writing to accept a bill of exchange,
given before or after drawn, valid in favor of all who take it upon
faith thereof for value; holder may decline qualified acceptance; if
he takes qualified acceptance, drawers and indorsers are discharged.
Protest of foreign bills of exchange may be made by a notary public
or any respectable resident of the place of payment in the presence of
two or more creditable witnesses; drawee is not liable unless he accepts.
Check or a bill of exchange on a bank payable on demand, must be
presented reasonable time after issue, and if dishonored notice must
be given or drawer Is discharged to extent of loss caused;does not
operate to assign any part of drawer’s funds; bank is not liable unless
it accepts or certifies. If holder has check certified drawer^ and
Indorsers are discharged.
The present negotiable instruments law of Michigan took effect
Sept, 16, 1905, and repeals all acts or parts of acts inconsistent with
its provisions; but does not apply to Instruments made prior thereto;
materially changes the law in this State and should receive special
examination in every doubtful case.
Power of Attorney. Almost every act that any person, firm or
corporation may perform, may b6 performed by an attorney in fact.
Conveyances, mortgages, or leases for more than three years’ term
by attorney In fact, the power of attorney must be in writing signed,
sealed and acknowledged same as a. deed of lands, to be admitted for
record or to proof thereof.
Probate Law. (See Administration of Estates.)
Protest. (See Negotiable Instruments.)
Replevin. Goods or chattels wrongfully taken or detained may
be replevined by owner or part owner or party entitled to possession.
Affidavit of plaintiff or agent necessary for issue of writ. If from
circuit courts plaintiff required to give bond with sufficient sureties
to the officer within twenty-four hours after seizure and appraisal of
the property which must not be delivered to plaintiff within fortyeight hours; and in the meantime if the defendant shall give sufficient
bond to the officer he shall return the property to the same person
from whom he took it ; In that case if plaintiff .recovers he may recover
on the defendant’s bond; If he fails defendant may recover on plain­
tiff’s bond according as the judgment may warrant. In justice courts
bond with sufficient sureties must be given and filed In double value
of the property before writ Issues.
Taxes. State and county payable every year after Deoember 1st,
delivered to county treasurer March 1st, thereafter, and if delinquent
Mar interest 1 per cent per month. Returned to auditor general of
State, if not paid, and by him enforced by foreclosure in chancery In
every county, and the taxable property sold under decree of the
court by county treasurer each parcel for the amount of taxes and
charges against same: redeemable one year thereafter and does not
becomf absolute until proceedings taken by purchaser for writ of
assistance, which must be instituted within five years by service of
written notice upon owners six months before application for such
writ. If decree regular and property taxable, and due notice is given
and served, purchaser is entitled, upon due proof thereof to writ of
assistance and possession unless redeemed pending the notice by
payment of double the amount paid by purchaser and $5.00 for each
parcel redeemed. City taxes are governed by charter or by the
general act under which cities and villages are organized.
Wills. Codicils. Every person of full age (twenty-one years) and of
sound mind may make; must be in writing, signed by testator or by
some person in his or her presence duly authorized by him or her and
attested and subscribed in his or her presence by two or more witnesses
competent as such at the time. If one of the subscribing witnesses
shall testify to the execution of the will in all particulars and testa­
tor was of sound mind at the time will was made, the court may
admit the will, in case no person appears to contest it; if none of
tl»e witnesses reside in the ¡State at the time of proving the will, the
court may admit the testimony of other witnesses to prove testator’s
sanity and execution and proof of the signature of testator and sub­
scribing witnesses. Probate of will conclusive of its due execution
and cannot be assailed collaterally. Foreign wills, duly admitted to
probate without the State, may be admitted and recorded in any
county of the State in which testator left real or personal estate by
duly filing, an exemplified copy of said will and of the record admitting
same to probate, a nuncupative will in which the value or the estate
bequeathed does not exceed $300, duly proved by two witnesses, may
be allowea. Wills may be revonea by Duming, tearing, cancelling,
or obliterating with Intention of revoking same by testator, or by some
other writing signed, attested, and subscribed in the manner provided
for execution of wills but shall prevent revocation implied by law.

for that purpose. 3. In foreign countries by a notary public, or
by any minister, chargé d'affaires, commissioner, consul, commercial
agent or other consular or diplomatic officer of the United States
appointed to reside in such country, and deputies or other represen­
tatives of such officers. The form of the certiflcatè may be, “ On
this...........................day of.............................. 19........ before me personaliy appeared................... to me known to be the person described in
and who executed the foregoing instrument and acknowledged that he
executed the same as his free act and deed. ” In case of corporation
•J may be, "On this ...........day of........... 19.., before me appeared
A. B. to me personally known,- who being by me duly sworn
did say that he is the president (or other officer) of (name of corpo­
ration), that the seal affixed to the foregoing instrument is the cor.
porate seal of said corporation and that said instrument was executed
in behalf of said corporation by authority of its board of directors
and said A. B acknowledged said instrument to be the free act
and deed of said corporation. ” If made outside the State the impres­
sion of the official seal of the certifying officer must be affixed, or
there must be attached the certificate of the clerk of a court, of record
of the county or district in which it is made under his seal that the
signature of the certifying officer is genuine.
Actions. The distinction between actions at law and suits in
equity is abolished. There is only one form of action. It Is called
a civil action and must be prosecuted in the name of the real party
in interest except that executors, administrators, trustee or an express
trust and persons expressly authorized by statute may sue without
Joining the person for whose benefit the suit is brought.
Administration of Estates. Estates of deceased persons are
administered in probate courts of which there is one in each county
presided over by the probate Judge of the county.
In granting letters of administration preference is given: 1. To
the surviving spouse or next of kin or such suitable person as they
or either of them select. 2. If no application is made for thirty
days after death of intestate, to principal creditor or creditors, or
some person interested, and if deceased was native of foreign country
to the consul or other representative of that country residing in this
State, or to such competent and suitable person as he may select.
Upon granting letters the court makes an(order limiting the time
within which creditors may present their claims. This time must
not be less than six or more than twelve months; but may be extended
for good cause to a date not more than eighteen months after notice
given of the order. On proof by affidavit that there are no debts
the time limited may be three months. Notice of the order is given
by publication thereof once each week for three weeks in a newspaper
In the county. Claims not presented within time limited are barred.
Non-resident executors and administrators may sue in this State.
Aliens. (See right to hold property.)
Arbitration. All controversies which can be the subject of a civil
action may be submitted to one or more arbitrators for decision,
except a claim to an estate In fee or for life in real estate.
Arrest. There is no arrest for debt.
Assignments. Statutes relating to assignments for the benefit of
eredito» are In foroe except as affected by the U. S. Bankruptcy Act
of 1898.
Practically they may be said to be superseded by that act.
Attachment. Before allowing a writ of attachment, the court
must require of the plaintiff a bond in the sum of at least $250, and
an affidavit of the plaintiff, his agent or attorney. (1) That the debt
was fraudulently contracted or (2) the defendant is a foreign corpora­
tion or non-resident or (3) has departed from the State as he believpg
with Intent to defraud or delay his creditors, or to avoid the service of
a summons or keens himself concealed therein with like intent or (4)
has assigned, secreted, or disposed of his property with intent to delay
or defraud his creditors or is about to do so.
Banks. Three or more persons may incorporate as a bank. They
must first secure from the state securities commission a certificate of
authorization, which is granted or denied after a hearing and'intro­
duction of evidence. Capital required is $10,000 in towns of 1,000
or less population; $15,000 in towns of 1,000 to 1,500; $20,000 in
towns of 1,500 to 2,000; and $25,000 in towns exceeding 2,000 popu­
lation. Capital stock must be fully paid in cash before bank can do
business. Stockholders are individually liable for debts of bank in
an additional amount equal to the par value of stock owned by them,
and this liability continues one year after any transfer of the stock.
At least one-fifth of the net profits must be placed in surplus fund
before any dividend is paid until the surplus amounts to 20 per cent
of the capital, and this surplus must be maintained unimpaired.
Every bank must make to the superintendent of banks not less than
four reports eaoh year which must be published. Liabilities to a bank
of any person, corporation or firm, for money borrowed, including
therein liabilities of the several members thereof, shall at no time
exceed 15 per cent of Its capital and surplus. It must have a reserve
equal to one-fifth of all its matured or demandable liabilities, one-half
of which must be cash, and the remainder may be balances due from
solvent banks. In case of insolvency or violation of the banking laws,
the superintendent of banks may take possession, and apply to the
oourt for a reoeiver.
Bills of Lading. The Uniform Bills of Lading Act became effec­
tive April 20, 1917.
Initial Carrier receiving property for transportation between points
within the State, liable for loss, damage or injury caused by ft or
other carrier en route, and all contrary provisions in Bill of Lading
void,
Chattel Mortgages. Every mortgage of personal property which
is not accompanied by immediate delivery and followed by aotual and
continued change of possession is void as to creditors and subsequent
SYNOPSIS OF
purchasers and mortgagees In good faith, unless It is made in good
faith, attested by two witnesses, acknowledged and filed with the
register of deeds of the county in which the mortgagor resided at
the time of its execution, if a resident of the State, or of that in which
T H E L A W S OF M IN N E S O T A
the property was then situated if a non-resident. If the mortgagor
resides m St. Paul, Minneapolis or Duluth or is a non-resident, and
the
property is situated there, the mortgage must be filed with the
R E L A T IN G TO
city clerk of such city instead of the register of deeds of the county.
Duplicates or copies certified by any officer with whom the mortgage
has been properly filed, may be filed in other places wherein any part of
BANKING AND COMMERCIAL USAGES
the property was situated when the same was made. As against
creditors of the mortgagor and subsequent purchasers and mortgagees
in good faith the lien does not continue beyond the term of six years
Prepared and Revised by M o o r e , O p p e n h e im e r & P e t e r s o n
from- the date of filing the mortgage unless the indebtedness is not
then due and payable by its terms, in which case it continues two years
Attorneys at Law, St. Paul. (See Card in
after the maturity of the debt and no longer.
Attorneys’ List.)
Chattel mortgages given by a married man or woman on property
Acknowledgments may be certified by the following officers: exempt from execution must be executed by both husband and wife
1. Within the State by a resident judge, clerk or deputy clerk of if living.
Conveyances. Deeds and mortgages of real estate must be exe­
any court of record therein, a notary public,- justice of the peace,
town, city or village clerk, or recorder, court commissioner, register of cuted in the presence of two subscribing witnesses and to entitle them
deeds, or county auditor, or their deputies, county commissioner, or to record must be acknowledged by'the person executing the same.
member of the legislature. 2. Out of the state but in the United States Conveyances made out of the State may be executed as above, or
by a judge of the supreme, circuit, or dlstriot courts of the United according to the laws of the place of execution.
States, or of any court of record of. any state, territory, or district,
Corporations. May be organized by any number of persons, not
the clerk or a deputy clerk of any such court, a notary, a justice of the less than three, for the purpose of engaging in any lawful business.
peace, or any commissioner appointed by the governor of this State I The amount of capital stock shall in no case be less than $10,000.

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BANKINÇ AND COMMERCIAL L A W S— MISSISSIPPI

divided into shares oi not less than 51.00 or more than 5100. The
Ineorporators must sign and acknowledge a certificate specifying; 1.
thename, general nature of business and principal place of transacting
the same. 2. Period of its duration If limited. 3. Names ana
places of residence of incorporators. 4. In what board ihanagenient Is vested, date of annual meeting at which such board shall be
elected, names and addresses of persons composing board until first
election. 5. Amount of capital stock, how the same is to be paid,
number of shares and par value of each, and if more than one class, a
description, and terms of issue and method of voting of each. 6.
Highest amount of indebtedness to which corporation shall be subject.
This certificate is filed with the secretary of state and with the register
of deeds of the county in which the principal place of business is
located and published in such county two successive days in a daily
newspaper, or two successive weeks in a weekly.
E v e ry s to c k h o ld e r in a n y co r p o r a tio n , e x c e p t t h o s e o rg a n ize d f o r the
purpose o f c a r r y in g o n a m a n u fa ctu rin g o r m e ch a n ica l bu sin ess is
liable t o c r e d ito r s o f th e co r p o r a tio n in an a m o u n t equ al t o th e par
value o f t h e s to c k o w n e d b y h im .
F oreign C o rp o ra tio n s. E v e r y fo re ig n c o r p o r a tio n o rg a n ize d fo r
pecuniary p r o fit b e fo r e it ca n tra n s a c t o r co n tin u e busin ess in th is
State, a cq u ire, h o ld o r d isp o s e o f p r o p e r ty o r bring su it here m u st

appoint an agent residing in the State, authorized to accept service
of process, and mUst file with the secretary of state an authenticated
copy of such appointment and of its charter and a verified statement
showing the proportion of its capital stock represented by its property
and business in this State, and upon that it must pay a fee. This act
does not apply to exclusively manufacturing corporations, traveling
salesmen soliciting business for non-resident corporations, nor to those
engaged o n ly in th e bu sin ess of lo a n in g m o n e y o r In v estin g in securities,
nor to th ose org a n ize d t o raise and im p r o v e liv e s to c k , cu ltiv a te farm s,

can fru its o r v e g e ta b le s, n o r t o th o s e w h o se sole busin ess is tra n s p o r­
tation o f fr e ig h t o r p assengers b y w a ter.

Courts. District courts hold one or more terms a year in each
organized county, have original jurisdiction in all civil actions at law
and in equity, and in all criminal cases where the punishment exceeds
three months’ imprisonment or a fine of more than 5100.
The supreme court has appellate jurisdiction in all cases, but there
is no trial by jury in that court. It has original jurisdiction in such
remedial cases as are prescribed by law.
i Probate courts have exclusive jurisdiction of matters connected
with the settlement of estates of deceased persons, minors, and insane
persons. Terms are held on the first Monday of each month In each
organized county.
Municipal courts exist in certain cities, and are courts of record with
/limited jurisdiction in civil and criminal actions.
Ju stices o f th e p e a ce h a v e n o ju r is d ic tio n in c iv il a c tio n s w h ere th e
a m ou nt I n v o lv e d e x c e e d s 5100.

Days of Grace are abolished.
Depositions may be taken at any place within or without the
State upon notice in writing, stating the reason for taking the same,
the time and place, and giving the opposite party one day for prepa­
ration, and one day for every 100 miles, exclusive of Sundays and
the day of service, before any officer authorized to administer oaths.
' Descent and Distribution of Property. Homestead descends
to surviving spouse for llfej remainder to children and issue of deceased
children. If no children or issue of deceased child, then to surviving
spouse in fee, exempt from debts not a valid charge thereon at time of
Intestate’s death. After payment of debts and certain allowances to
the surviving spouse out of the personal property, the residue of the
estate descends as follows: 1. One-third to the surviving-spouse/
balance in equal shares to children and lawful issue of deceased child
by right of representation. 2. If no surviving child, or lawful issue
of deceased child, the whole estate descends to surviving spouse if
any. 3. If no issue or surviving spouse, to father and mother in equal
shares, or if but one survive, to such survivor. 4. If no surviving
issue, spouse, father or mother, in equal shares to brothers and sisters
and lawful issue of deceased brother or sister. 5. If no issue, spouse,
father, mother, brother, sister, or living issue of deceased brother
or sister, to next of kin, tn equal degree, but those who claim through
nearest ancestor preferred to those claiming through ancestor more
remote. 6. If no spouse or kindred, to the State.
Dower is abolished.
Employers Liability Act, Effective since April 24. 1913. (
Executions issue from district courts any time within ten years
after judgment and may run to any county where judgment is docketed
are returnable in sixty days and may be renewed for sixty days at a
time on request of judgment creditor or his attorney. Personal prop­
erty is sold on ten days’ posted notice; real estate on six weeks’ pub­
lished notice, and subject to redemption by judgment debtor or his
assigns within one year from date of sale.
Exemptions. ) Homestead outside of incorporated municipality
may include eighty acres. If in Incorporated place containing less
than 3,000 inhabitants, its area shall not exceed one-half acre, and in
larger incorporated places one-third of an acre without regard to value.
Family pictures, library, musical Instruments for use of family, wear­
ing apparel, beds, stoves, cooking utensils used by family, other house­
hold furniture not exceeding 5300 in value, three cows, ten swine, one
yoke of oxen and a horse, or in lieu thereof, a span of horses or mules,
twenty sheep, the wool therefrom raw or manufactured, food for
such stock for one year’s supply, one wagon, cart or dray, one sleigh,
two plow;s, one drag, and other farming utensils not exceeding 5300 in
value, provisions for debtor's family for one year’s support, tools kept
for purpose of carrying on trade, and stock manufactured in whole or
in part by debtor not exceeding in value 5400; library of professional
man; presses, type, and tools of publisher of newspaper not exceeding
52,000, and his stock in trade not exceeding 5400; watch, sewing
machine, typewriter, bicycle, seed for use of debtor for one season not
exceeding certain amounts; library and apparatus of college or school;
money payable to wife or child from insurance on life of deceased hus­
band or father not exceeding 510,000; money or relief from benefit
association: money from insurance on exempt property; wages not
exceeding $35 for services rendered during preceding 30 days; but all
wages paid and earned within said thirty day period shall be con­
sidered a part of (or all) of said exemption (Chap. 202, Laws 1915.)
Holidays. January 1st: February 12th and 22d; Good Friday;
May 30th; July 4th; first Monday in September; Tuesday after first
Monday in November, each even-numbered year (election day), and
December 25th are legal holidays. Thanksgiving day is so far that
negotiable Instruments or contracts due that day are payable next
succeeding business day.
Interest. Six per cent is legal rate, but by special contract any
rate not exceeding 10 per cent may be exacted. Usurious contracts
are void.
Judgments may be entered by default in district courts at expira­
tion of twenty days after service of summons. When docketed in those
courts they become liens upon all real estate of the debtor in the county
where docketed then owned by him or afterwards acquired, and the
lien continues for ten years after the entry of the judgment. Trans­
cripts of judgments In justice and municipal courts may be filed in
district court and there docketed, and then become lien on real estate.
Liens. To preserve a mechanic’s lien a verified statement must
be filed by the lien claimant within ninety days after furnishing the

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1753

last Item of labor or material in the office of the register of deeds of
the county In which the Improved premises are situated, or If claimed
upon a line of railway or its appurtenances with the secretary of state.
Limitation of Actions. On contracts express or Implied six
years; judgments ten years; to foreclose mortgages fifteen years; to
recover real estate, fifteen years. But no action shall be maintained
on a judgment note, or other instrument authorizing Confession of
Judgment unless begun within one year after Cause of Action accrued;
and no action shall be maintained upon any Judgment of any Court of
the U. S. or of any State or Territory entered by Confession under a
warrant of attorney, unless the action upon such judgment be begun
within one year after the rendition or entry thereof.
Married Women. Property acquired by wife before or after mar­
riage remains her separate estate, it is liable for her debts and torts
to the same extent as If she were unmarried, and she may make any
contract which she could make If unmarried, except that no convey­
ance or contract for sale of her homestead or any interest therein is
-valid unless her husband joins in the same.
Both husband and wife are liable for necessaries furnished to and
used by the family.
Mortgages on real estate executed in the presence of two subscrib­
ing witnesses, acknowledged and recorded In the office of the register of
deeds of the county in which the mortgaged premises are situated may
be foreclosed by publication or by action. The mortgagor. or his
assigns may redeem within one year from the date of the foreclosure
sale.
The authority of an attorney conducting a foreclosure by adver­
tisement, must be in the form of a Power of Attorney, executed and
acknowledged by the mortgagee or assignee in the same manner as
a conveyance and recorded prior to the sale in the County where
the foreclosure proceedings are had.
The mortgagor may covenant to pay or authorize the mortgagee
to retain any attorney’s fee in case’of foreclosure of not exceeding
$25; where the mortgage debt does not exceed $500; $50 where the
mortgage debt exceeds $500 and does not exceed $1,000; $75 where
the mortgage debt exceeds $1,000 and does not exceed $5,000; $100
where the mortgage debt exceeds $5,000 but does not exceed $10,000;
and $200 where the mortgage debt exceeds $10,000.
A Registry Tax of 15 cents is imposed upon each $100 or fraction
thereof of the principal debt secured by any mortgage covering prop­
erty within the State of Minnesota and recorded in said State. In
case the maturity of any portion of the debt so secured shall be fixed
at a date more than five years after the date of said mortgage, the
amount of such Registry Tax shall be at the rate of 25 cents on each
$100. No such mortgage or assignment or satisfaction thereof or
papers relating to its foreclosure, shall be recorded or registered unless
such tax has been paid, nor shall any such document or record thereof
be received in evidence in any court or have any validity as notice or
otherwise. If sdch mortgage describe real estate outside of Minne­
sota, such tax shall be imposed upon sucfr proportion of the whole
debt secured as the value of the real, estate described in this State
bears to the value of the whole real estate, such value to be deter­
mined by the State Auditor upon application of the mortgagee.
Notes and Bills of Exchange. Uniform Negotiable. Instru­
ments Law has been in force since April 15, 1913. Commercial paper
is payable at the time fixed therein without grace. When due
or payable on Saturday or on Sunday, or any legal or bank holiday,
the same is payable upon the business day next succeeding, and may
be protested on such succeeding day.
Bight to Hold Property. No person unless he be a citizen of the
United States, or has declared his intention to become a citizen, and
no corporation unless created under the laws of the United States, or
of some state thereof, shall acquire lands exceeding 90,000 square feet,
except by devise, inheritance, or through security for indebtedness.
This does not apply to actual settlers on farms not exceeding 160 acres,
or to subjects of a foreign country, whose rights to hold lands are
secured by treaty.
No corporation, more than 20 per cent of whose stock is owned by
persons not citizens of the United States, or by coiporations not
created under its laws, or those of some state thereof, can acquire
lands, and no corporation unless organized for the construction of
operation Of a railway canal or turnpike can acquire more than 5,000
acres or more than is necessary for its operation, and lands granted
it by the State or United States.
But this does not. apply to lands acquired in the collection of debts,
nor to a person or corporation*' engaged in selling lands to actual
settlers, or engaged in manufacturing in Minnesota while so engaged.
Such persons or corporations not so engaged must sell what they had
April 13, 1911, within ten years from that date and sell what they
'acquire subsequent to that date within ten years after they acquire it.
Sales of Goods. The Uniform Sales Act became effective April
20, 1917.
Taxes on real estate may be paid one-half before the first day of
June and one-half before the first day of November of the year follow­
ing the levy thereof, and if not so paid a penalty of 10 per cent at­
taches. If taxes on personal property are not paid before March 1st
of the year following the levy thereof, a penalty of 10 per cent attaohes.
Wills. Every person of full age and sound mind may dispose of
property by will in writing, signed by the testator, or by some person
in his presence and by his direction, attested and subscribed' in his
presence by two or more competent witnesses. Every person includes
married women. It, after making a will the testator marries, the will
is thereby revoked.
SYNOPSIS OF

T H E L A W S OF MISSISSIPPI
R E L A T IN G TO

BANKING AND COMMERCIAL USAGES

Prepared and Revised by C h a m b e r s & T r e n h o l m .
Attorneys at Law, Jackson. (See Card in Attorneys’ List.)
Accounts. Sworn to entitles plaintiff to judgment, unless defend­
ant files affidavit denying. The affidavit must be by the creditor or
his agent. All accounts must be itemized. *
Acknowledgments before any judge, clerk of a court of record
under his seal, justice of the peace, notary public, or member of the
board of supervisors, before any police justice, or mayor of any city,
town or village. Acknowledgments in another state may be before
any of the judges of the supreme court, or any district judge of the
United States, or a judge of the supreme or superior court in any state
or territory, any justice of the peace, whose official character shall
be certified to under the seal of some court of record in his county,
or by any commissioner residing in such state or territory, appointed
by the governor of Mississippi, or a notary public or a clerk of a court
of record having a seal of office. Acknowledgments or proof of
deeds to property in this State by persons in a foreign country may be

1754

BANKING AND COMMERCIAL L A W S— MISSISSIPPI

made before any court of record, or the mayor or chief magistrate Mortgages on property to be aoqutred are validj but not on a changing
of any city, borough, or corporation where the grantor or witnesses stock of goods if the mortgagor remain tn'possesslon and continue
reside, or may be; or before any commissioner appointed by the gov­
Reservation of title by the seller of a chattel to secure
ernor of this'State, or before any ambassador, foreign minister, sec­ business.
purchase money is valid without record, even against purchasers
retary of legation, or consul of the United States. The certificate without
notice..
shall show that the party or party and witness were identified before
Collaterals. General law prevails.
the officer, and that the party acknowledged the execution of the
for sale of land, or for lease for more than one year,
instrument, or that the execution was duly proved by the witness or toContracts
be in writing. Same in regard to sale of chattels of the value of
witnesses. Acknowledgment must state that party “ acknowledged more
than
$50,
unless delivery in whole or In part is made. Dealing
that he signed and delivered” instrument.
futures is forbidden and a ground for attachment. Gambling oonActions. All distinction as to forms abolished. Servlpe five days [ in
tracts and ordinary contracts made on Sunday void. Contracts by
before return day. All action triable in the circuit court at first term foreign corporations who have not complied with registration, of
in which the defendant has been personally served with process thirty charter law are void.
days before the return day. Mandamus, quo warranto, mechanics'
May* vest title presently or in future. All estates
liens, attachments, and replevin triable at return term on five days' InConveyances.
land greater than for one year must be by deed, and to affect pur­
notice.
chasers without notice must be recorded. Estates tail prohibited,
Administration of Estates. Had in chancery court, according exoept that a deed or devise may be made to a succession of living
to will, if any. /Claims against deceased must be registered within one donees not exceeding two and to the heirs of the body of the remain­
yearafterthe first publication of notice to creditors; registration stops derman, or, in default thereof, to the right heirs of the donor in fee.
the general statute of limitations. All debts are to be paid before Corporations convey under seal. In all other cases private seals
heirs, distributors, or legatees. Claims against insolvent estates are abolished.
Conveyances or devises to two or more, or to husband
paid pro rata.
and wife, create tenancy in common. Rule ip Shelly’s case abolished.
Affidavits or Oaths before a judge of any court of record, clerk of Remainder good without particular estate. The words “grant, bar­
such court, master in chancery, member of the board of supervisors, gain, and sen” operate as a covenant that grantor is seized of some
justice of the peace, notary public, mayor, or police justice of a city, estate of Inheritance. Words “convey and warrant” operate as a
town or village; in another state by any officer thereof, or of the general covenant, of warranty. The words “convey and warrant
specially" operate as a warranty only against the grantor or those
United States, authorized to administer oaths.
under him. A quitclaim deed has practically the same effect.
Allens. No restrictions on the rights or resident alien's to acquire claiming
Husband and wife, if living together, must join In conveyance or
property or dispose of it Non-resident aliens can not hold land, but incumbrance
of homestead of either, or It will be void as to all under
may take liens thereon to secure debts and purchase at foreclosure $3,000.
thereof, and thereafter hold it for not longer than twenty years, with
Corporations.
Corporations except for the construction and
power to sell to a citizen in fee; or he may retain It by becoming a operation of a railroad,
other than street railroads, and the carrying
citizen-.
on of an Insurance business, other than mutual insurance, may be
Appeals from justice court to circuit court within ten days. From oreated under a general charter.
circuit and chancery courts to supreme court within one year. Appeals
Application for charter signed by each of the incorporators and
also in certain cases from board of supervisors and municipal courts. acknowledged. It must then be published three consecutive weeks
Arbitration. Parties may submit to arbitration of one or more in a newspaper published at the domicile of the proposed corporation.
disinterested arbitrators, with agreement that proper court shall enter The application, with proof of publication, must be forwarded to the
seoretary of state together with the fee for recording. The same to
judgment.
attorney general for his opinion as to the constitutionality and
Arrests made by certain officers, or private persons may arrest for the
of the proposed corporation, after which it is referred to the
offense committed in bis presence. No arrests or imprisonment for | legality
governor fer his approval or disapproval. The governor then returns
debt.
it to the secretary of state with his action endorsed thereon. If he
Assignments and Insolvency. No insolvent law. An assign­ approve it. the secretary of state shall record it in his office and
ment may be made for the benefit of creditors. Debtor, though oertify to the same records, and transmits it to the applicants. It
insolvent, may prefer creditors, if in good faith and no benefit, direct must be recorded in the office of the clerk of the chancery court of
or indirect, is reserved. No provision for the discharge of a debtor the county In which the corporation shall do business. Within thirty
on his making an assignment. In general assignments, where the days after the organization, the corporation must make feport of
value exceeds $1,000, the assignee must give bond and administer the organization to the seoretary of state. If such report be not made
the trust m chancery. Preferences not prohibited. Practically super­ the charter granted shall be void, ' and all persons doing business
seded by bankrupt law.
thereon shall be deemed partners In the business, and liable as such.
thus created possess the powers usual and incident
Attachment. Against a debtor who is a non-resident or who to Corporations
private corporations generally, but existence is restricted to fifty
removes or is about to remove himself or property out of the State; years.
Corporations created as above named may hold property
who so absconds or conceals himself that he cannot be served with a necessary
for their purposes, not exceeding one million dollars, manu­
summons; or who incurred the debt in conducting the business of a facturing companies
and banks excepted, which may hbld property
ship, steamboat or other water craft in some of the navigable waters to the amount not exceeding
two million dollars.
of this State; or who assigns or disposes of his property, or some part
Under the laws passed by the Legislature of 1912 all corporations,
thereof, or is about to assign or dispose of his property with intent to whether
domestic or foreign, are not allowed to acquire title in fee,
defraud his creditors; or who has property or rights /in»action which 1 or for a term
of years, to, or own land for agricultural purposes, m
he conceals and unjustly refuses to apply to the payment of his debts; this State outside
of an incorporated city, town, or village. A cor­
or who has converted or is about to convert his property into money poration may be lessor
lessee for not more than twenty years of
or evidences of debt, with the intent to place it beyond the reach of as much as 10,000 acresor
of land to be used for agricultural purposes,
creditors; or who has fraudulently contracted the debt or incurred but any such lease or contract
shall not be renewed or extended so
the obligation for which suit has been or is about to be brought, may as to authorize the holdings of said
lands for another period.
be attached. In addition to those named above, the following grounds
law does not prevent corporations from taking deeds of trust,
exist: “ 9. That the defendant is buying, selling, or dealing in, or orThis
mortgages on real estate to secure loans or debts, or from acquiring
has within six months next befere the suing out of the attachment, title
upon foreclosure of such securities or from acquiring
directly or indirectly, bought, sold, or dealt in future contracts, com­ title thereto
to land by deed for the collection of debts, and that all lands so
monly called ‘futures.’ 10. That he is in default for public money,
may be used and operated after foreclosure for all agricul­
due from him as a principal, to the State, or some county, city, town, or acquired
purposes during the time so held for not longer than twenty
village thereof. 11. That defendant is a banker, banking company, tural
or corporation, and received deposits of money, knowing at the time years.
also the duty of every corporation that shall acquire interest
that he or it was insolvent, or has made or published a false or fraudu­ in Itor istitle
to land in this State to file tbe deed to same in the office
lent statement as to his or its financial condition. ” Attachments for
the Chancery Clerk of the county in which such land, or a part of
debts not due allowed for last six grounds—or when the creditor has of
located within sixty days after the date of the deed.
Just cause to believe that the debtor will remove himself or his effects It, Ifis any
corporation or other person shall have acquired any right,
out of State before debt will be due, with intent to defraud. Non­ title or interest
any land in violation of this Act, they shall be dis­
resident creditors have the same rights of attachment as resident solved by a suitinbrought
the Attorney General of the State or by
creditors, whether the debtor be resident or non-reeident. Plaintiff the District Attorney, if by
is a domestic corporation, and if a non­
must furnish bond double the debt and make affidavit as to one or more resident corporation theyitshall
not be permitted to do business in
grounds. Suit does not abate on verdict for defendant, on a plea deny­ this State, and the court shall thereafter
appoint a receiver to take
ing grounds; but judgment on the debt, to be offset by damages in favor charge of all property in this State belonging
to such corporation- or
of defendant for wrongfully suing out attachment. Any creditors may I so
held in trust and to dispose of the same under order of the court,
intervene and contest ground of attachments
after paying all debts of the corporation and all costs and charges
Attachment in Chancery on bill against the property, or debts and
to said suit, the remainder shall be paid and distributed to
of an absent, non-resident, or absconding debtor. A lien is acquired by incident
the stockholders.
the suit. If a writ for the seizure of goods is obtained, bond is re­
This Act does not affect the rights of existing -corporations in this
quired. Available to non-residents.
State, but is passed to prevent a monopoly in agricultural lands.
Corporations may take a lien on property real, or personal, to a
Banks. Required, capital stocks as 'follows: In cities, villages,
and communities with population 1,000 or less $10,000; population . greater amount than they may hold as a security for a debt, if same
1.000 and not more than 2,500, $15,000; population 2,500 and not ' shall be held for a longer period than ten years. Stockholders
more than 6,000, $25,000; population from 6,000 to 10,000, $35,000; individually liable for the debts the corporation contracted during
10.000 or more, $50,000. This does not apply to .existing banks of his ownership of stock for, the balanoe that may remain unpaid for
(1914.) There shall be a board of bank examiners of three men to stock subscribed for and may be sued by any creditor. Directors are
be elected, duties to enforce banking laws and examine banks period­ liable for the wilful mismanagement or for allowing capital withdrawn
ically. Deposits guaranteed; depositors names not to be divulged; while debts exist. Corporations under the laws'of other states or of
Banks penalized for failure to comply with orders \of examiners; foreign countries may sue in this State, and have the same rights in
Banks must have at, least three directors; unlawful for any banks to the State as non-resident individuals. The legislature may repeal or
receive, deposits for six months in excess of ten times its paid up amend charters granted after November 1. 1890.' provided rights of
capital and surplus: Banks officers must not contribute to campaign stockholders are not infringed. All foreign corporations doing business
fund of candidates.
in this state shall file a certified and duly authenticated copy of its
All, except, national banks, are required to make a report, not less charter or certificate with the secretary of state. Charter must be
than four times each year, to the commissioner. And the commis­ certified by the president and secretary or other chief executive under
sioner shall make requisition on all banks for these reports to be the corporate seal. Fees are to be paid according to capital stock, viz.:
made as of dates prior to the date of the requisition, and such date $10,000 and under, $20.00. Between $10,000 and $30,000, $40.00.
to be known only to himself.. Such reports shall he verified and shall /Between $30,000 and $50,000, $60.00. When over $50,000, one-tenth
be published in full in 'a newspaper of the town or city where the 1 of one per cent and not to exceed $250.00.
bank is located. Resources and liabilities shall be stated in such
Costs. Non-resident or insolvent plaintiff required to give security
reports. , Banks collecting drafts with bill of lading attached must though
an insolvent may sue in forma pauperis.
holdj funds at least ninety-six hours. Banks must give notice to
Courts. Terms and Jurisdiction. Justices’ courts meet twice each
administrator or executor of deceased persons of deposits of money month;
and chancery courts in each oounty twice a year;
and papers held for the deceased. Directors of every bank to hold supremecircuit
court twice a year, in October and Maroh. Justices' courts
at least three regular meetings each year and keep a complete record have jurisdiction
up to $200. Circuit courts have general jurisdiction
of all proceedings: E very bank with paid up capital of as much of all common law
where the amount or value exceeds $200,
as $100,000 may do business as trust company; may act as guardian, and jurisdiction of actions
appeals from justices’ and mayors’ courts, and
receiver, etc.; may execute bonds in legal proceedings and generally boards at supervisors.
Chancery courts have jurisdiction of the
perform the duties of a trust company; may establish a special mutual administration of estates of
deceased persons, of minors' business and
loan department; in such department interest on loans not to exceed other probate matters, and of
all matters in equity. Appeals may be
8 per cent per annum. Bank not permitted to allow the use of taken to the supreme court from
any final Judgment of the circuit
its name by others in making loans.
oourt.
and
from
the
chanoery
court,
except in suits for not more than
Chattel Mortgages and Deeds of Trust may be executed and $50 originating in the justice’s oourt.
of equitable cognizance
recorded as other mortgages. Foreclosure is usually hy trustee’s sale. Improperly brought in the circuit courtSuits
are transferred to chanoery
If property be removed to another county, mortgage must be there oourt, and vice versa. No suit dismissed because
being of an equitable
recorded within twelve months to affect purchasers without notioe. nature it is improperly brought in the circuit court
and e converso.

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BANKING AND COMMERCIAL L A W S— MISSISSIPPI

Creditor’ Bills may be filed under general Laws to subject equi­
table assets and In aid of execution at law. Such bills may, under the
statute, be filed to subject property of a debtor fraudulently conveyed
without a judgment and return of nulla bona; and this whether com­
plainant’s debt Is due or not. No bond Is required unless a sequestra­
tion Is desired.
Curtesy and Dowfer. Both abolished since 1880.
Deeds. (See Conveyances.)
Depositions in civil oases, on written or verbal Interrogatories;
ten days’ notice to opposite party. If suoh party Is absent and has
no attorney, filing Interrogatories ten days sufficient. The officer
shall swear tl»e witness to testify the truth, and shall Impartially
examine him on the Interrogatories. The testimony shall be fairly
written down by the officer or witness, or by a disinterested person In
the presence of, and shall be subscribed by the witness. Depositions
then certified, and transmitted by mall or other safe and convenient
manner to the court where the same are to be used. Officer’s certlfloate prlma facie evidence of his character.
Descent and Distribution. Estates of inheritance, real and
personal descend, l. To children and their descendants per stirpes.
2. To brothers and sisters and father and mother in equal parts and
their descendants by representation. 3. To the next of kin according
to the civil law. Except Among brothers and sisters there is no
representation among collaterals. Advancements must be brought into
hotchpot. No distinction between children of the whole blood and
those of the half blood, except that children of the whple blood are
preferred to those of the half blood in equal degree. Where there Is
no one to inherit property escheats. Illegitimates inherit from the
mother and from her other children and her kindred. Children of
illegitimates and their descendants inherit from brothers and sisters
of their\father or mother and from grand parents. But children of
illegitimates do not inherit from any ancestor or collateral kindred if
there be legitimate heirs of such ancestor or collateral kindred, in the
same degree. Exempt property of husband or wife descends to sur­
vivor and children as tenants in common.
i
Dower and Curtesy have been abolished since 1880.
Evidence. In the main, common law rules apply. Parties,and
interested persons competent; except against decedent. Affidavit to
open account entitles to judgment, unless defendant denies under
oath. Warehouse receipts and bills of lading conclusive evidence in
favor of a bona fide holder that the property was received by the
Issuer. (See also Accounts and Affidavits.)
Executions in circuit court issue within twenty days after the
adjournment of court unless otherwise ordered by the plaintiff, and
In justices courts after the lapse of ten days from judgment rendered,
unless recovering party makes affidavit that he Is in danger, by delay,
ef losing his debt or demand, in which case execution issues forthwith.
No redemption of property sold under execution or mortgage.
Exemptions. The following personal property Is exempt from
seizure under execution or attachment, to-wit:
The tools of a mechanic necessary for oarrylng on his trade.
The agricultural Implements of a farmer necessary for two male
laborers.
The Implements of a laborer necessary in his usual employment.
The books of a student required for the completion of his educa­
tion.
The wearing apparel of every person.
The libraries of all persons, including pictures, drawings, and paint­
ings, not exceeding five hundred dollars in value; also the Instruments
of surgeons and dentists, used in their profession, not exceeding two
hundred and fifty dollars In value.
The arms and accoutrements of each person of the militia of the
State.
- All globes and maps used by the teachers of schools, academies, and
colieges.
The following property of each head of a family, to be selected by
the debtor, Is exempt:
Two work-horses or mules, and one yoke of oxen.
Two head of cows and calves.
Ten head of hogs.
Twenty head of sheep and goats each.
All poultry.
All colts under three years old raised in this State by the debtor.
Two hundred and fifty bushels of com.
Ten bushels of wheat or rice.
Five hundred pounds of pork, bacon, or other meat.
One hundred bushels of cotton, seed.
.
One wagon, and one buggy or cart, and one set of harness for each.
Five hundred bundles of fodder and one thousand pounds of hay.
Forty gallons of sorghum or molasses or cane syrup.
One thousand stalks of sugar cane.
One molasses mill and equipments, not exceeding one hundred and
-fifty dollars In value.
Two bridles and one saddle, and one side saddle.
One sewing machine.
Household and kitchen furniture not exceeding In value two hun­
dred dollars.
All family portraits.
One mower and rake for cutting and gathering hay or grain.
And the following property shall be exempt from garnishment or
other legal process, to-wit:
The wages of every laborer or person working for wages, being the
head of a family, to the amount of fifty dollars per month: but this
paragraph shall not apply to a debt for board and lodging or a judg­
ment founded on a debt for board and lodging.
.The proceeds of Insurance on property, real and personal, exempt
from execution or attachment, and the proceeds of the sale of such
property
Payable to Executor. Life insurance policy not exceeding five
thousand dollars, payable to the executor, or administrator, shall
inure to the heirs or legatees, freed from all liability for the debts of
the decedent, except premiums pakl on the policy by anyone other
than the insured and debts due for expenses of last illness and for
burial; but if the life of the deceased be insured for the benefit of hls
heirs or legatees at the time of hls death otherwise; and they shall
collect the same, the sum collected shall be deducted from the three
thousand dollars, and the excess of the latter only shall be exempt.
Life insurance policy to amount not exceeding $10,000.00 goes to parties
named as beneficiaries free frqm liability for debts of insured.
Homestead In Country. Every citizen being a householder, and
having a family, shall be entitled to hold exempt the land and build­
ings owned and occupied as a residence, but the quantity shall not
exceed one hundred and sixty acres, nor the value thereof. Inclusive
of improvements, save ai hereinafter provided, the sum of three
thousand dollars.
Homestead in Cities. Every citizen being a householder, and hav­
ing a family residing In any city, town, or village, shall be entitled
to hold, the land and buildings owned and occupied as a residence by
such person, not to exceed in value, save as hereinafter provided,
three thousand dollars, and personal property, to be selected by
him, not to exceed in value two hundred and fifty dollars, or the
articles specified as exempt to the head of a family.
Homestead exemption may be increased to $3,000 In value by
filing for record in chancery clerk’s office a declaration claiming as
exempt certain property.

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1755

No property is exempt as against purchase money or for labor per­
formed on it or material furnished therefor. Money loaned at rates
of interest not exceeding 6 per cent Is exempt from taxation.
Foreign Corporations may do business and sue and be sued as
In case of domestic corporations. (See Corporations.) Foreign
corporations doing business in the State without recording their
charters are subject to fine; and all contracts are null and void.'*
Sales of merchandise otherwise than in usual course of business and
sales of entire stock of goods in gross presumed fraudulent and void as
to creditors, unless 5 days before sale, seller make complete inventory
and the purchaser made demand of seller for name, address and amount
of claim of each creditor, and the purchaser notified personally or by
mail each of creditors or prased sale and of cost price of merchandise
and the price to be paid therefor.
In case of destruction of stock of merchandise by fire, on which there
Is insurance, holder of policies to notify creditors he owes for merchan­
dise of his loss and amount of insurance carried, within 5 days.
Fraud and Fraudulent Conveyances. (See Attachment, Bills
of Lading, Limitations, Creditor’s Bill.)
Garnishment on judgments or in attachment. Binds debts or
property of debtor In garnishee’s hands.
Grace. Abolished.
Holidays are Jan. 1, Feb. 22. April 26. June 3. July 4, first Monday
In September, fourth Thursday in November, and December 25.
Instruments falling due on a holiday are-payable on the next succeeding
business day. Instruments falling due on Saturday are to be presented
for payment on the next succeeding business day except that instru­
ments payable on demand might at the option of the holder be pre­
sented for payment before twelve o’clock noon on Saturday when that
day is not an entire holiday.
Homestead owned and occupied by husband living with wife cannot
be sold or encumbered unless the wife joins in the conveyance. The
same is true as to husband if wife owns homestead. (See Exemp­
tions.)
Husband and Wife. The disabilities of coverture are abolished,
as are dower and curtesy. Husband and wife may contract with
and sue each other, but contracts for compensation for services ren­
dered to each other are void. If husband rents wife’s land, mules,
etc., and does business in his own name, it will be deemed the business
of the wife as to those without notice, uniess the contract be recorded.
Transfers between are void as tb third persons unless recorded. (See
also Married Women, Wills, and Homestead.)
Insolvency. No general Insolvent laws, but Insolvent estates of
decedents are divided among creditors pro rata.
In case of insolvency partnership property is applied first to partner­
ship debts, and e converso.
Interest. Legal rate 6 per cent per annum, and is exempt from
any taxes, but parties may contract in writing for 8 per cent, when
more is stipulated or collected all interest is forfeited. When above
20 per cent interest and principal forfeited and payments forfeited.
Judgments enrolled become liens on defendant’s property within
the county. A junior judgment creditor may obtain priority as to
property levied on by him, if, after ten days’ notice, the senior judg­
ment creditors fail to Issue executions and point out the property.
Lien of judgment continues seven years.
Jurisdiction. (See Courts.)
Liens. Lien of an enrolled judgment, of mechanics and material
men, of landlord and laborer on agricultural products, innkeeper’s
and stablekeeper’s lien. The seller of goods may enforce lien for the
price of the same, provided the goods avg still in the hands of the
purchaser or one having notice. The procedure is by affidavit, filed
at the commencement suit, stating that the purchase money is unpaid.
A writ of seizure Issues, and the goods are taken. Title to personal
property may be reserved by the seller as security for the price, and
this is good even as against a subsequent bona fide purchaser, with­
out any writing or record.
Limitations. Open accounts, accounts stated, and verbal con­
tracts, express or Implied, three years; all other contracts, six years;
awards of arbitrators, six years; judgments and decrees rendered in
another state against resident of this, three years; rendered In this,
seven years; real actions, ten years. Actions to recover property
sold under order of chancery court must be brought within two years,
where possession is taken and purchase money paid in good faith.
When the legal title to property or right in action is in an executor,
guardian, or other trustee, beneficiary, though under disability, is
barred when trustee is barred. Action against administrator or
executor on claim against person deceased limited to 4 years from date
of qualification of such administrator or executor. Statute does not
apply to suits on notes or evidences of debt of banks or other moneyed
corporations. An acknowledgment or new promise must be in writing.
Statute does not run during fraudulent concealment, nor against Infant
on person non compos mentis, nor against a convict in actions for
assault, etc., until after release, nor against State, county, municipality,
or any political subdivision of StateMarried Women retain their estate, common law disabilities of
coverture abrogated; have capaoity to make contracts and do ail
acts in reference to property Dower and curtesy abolished. Hus­
band and wife must join in conveying or encumbering homestead.
(See also Husband and Wife and Descent.)
Mortgages and Trust Deeds do not take effect as to creditors or
purchasers In good faith and without notice until they are delivered
to the clerk for record; with power of sale are foreclosed by sale Va
pals; without power of sale, by suit in chancery court, and after fore­
closure there Is no redemption. (See Chattel Mortgages.)
Notaries. Have power to administer oaths, take acknowledgments
and to protest notes and bills. (See Conveyances.)
Notes and Bills. Uniform Negotiable Instruments Law adopted
and now operative. 1
■: ‘
Partnership. Few statutory provisions. Governed by general
law. In ease of insolvency, partnership property must go to pay
firm debts, and e converso. Provision made tor limited or special
partnerships.
Powers of Attorney. May be acknowledged or proved and
recorded as deeds. May be revoked In like manner. Conveyances
of land or other property under powers of attorney are valid.
Redemption. No redemption from sales under mortgage, execu­
tion, or other judicial sale. Two years allowed for redemption of
land sold for taxes, saving to minors and persons non compos mentis
a like period after removal of disability.
Replevin lies to recover personal property wrongfully withheld
from the owner. The property may be restored to defendant on bond.
If be declines to bond, plaintiff may do so. If neither does, a claimant
of the property may give the bond and receive possession. Damages
may be assessed for wrongful taking or detention.
Taxes. Personal property is assessed once a year; real estate
every two years, and taxes constitute a prior lien. Land delinquent
sold on first Monday of April. Redemption' within two years, on
payment of all taxes, costs, 25 per cent damages, and 5 per cent ou
amount paid. Infants and persons of unsound mind may redeem
within two years after removal of disability, on paying the value of
permanent improvements put on the land after two years from date
of sale.

1756

BANKING AND COMMERCIAL L A W S— MISSOURI

Trust Companies. Provision tor such companies with general
trusts, make bonds and the like. (See
' Warehouse Receipts. (See Bills of Lading.)
Wills executed by anyone twenty-one years old, of sound mind.
As to land, if not wholly written and subscribed by testator, must be
attested by two subscribing witnesses. A nuncupative will (of per­
sonalty) may be made during last sickness of testator at habitation,
or where testator has resided ten days next before death, or where
erson is taken sick from home and dies before return; must be proved
y two witnesses. Nun-cupative wills not to be established where value
bequeathed exceeds $100.00. Soldiers and sailors in actual service may
bequeath personalty free from statutory restrictions. No restriction
upon the power to dispose of property by will except that religious or
charitable trusts or bequests void. Provisions made for renouncing
will by surviving husband or wife in certain cases. Probated in com­
mon form may be contested within two years. One who kills another
cannot take under his will.

The corporate seal must be affixed to deeds of corporations. The
use of the word “ heirs” ixl a deed is not necessary to create a fee
simple. The statute abolishes estates tail and converts an estate
tail into a life estate for the first taker with remainder in fee simple
to the heirs of his body. The words "grant, bargain and sell are
employed in the grainting clause of a warranty deed; by statute those
words constitute express covenants that the grantor was seized of an
indefeasible estate in fee simple; that the real estate was free from all
incumbrances done or suffered by him or any person under whom he
claims; and for further assurances of the title to be made by him and
his heirs. Title, subsequently, acquired by the grantor in a warranty
deed, will immediately pass to the grantee without further convey­
ance. An estate of freehold may be made to commence in future,
by deed. An interest in real estate, granted or devised to two or
more persons., other than executors or trustees, or husband and wife,
is a tenancy in common unless expressly declared to be a joint tenancy.
A conveyance to husband and wife creates an estate in entirety, as
at common law. Females of eighteen years are considered of full
age for the purpose of conveying real estate.
Corporations are formed under general law. In the case of manu­
facturing and most other business corporations, the capital must be
not less than $2,000 nor more than $500,000,000. One-half must be
SYNOPSIS OF
subscribed and actually paid up in money or property of-the full
value thereof, If part of d;he capital stock is paid in property, there
must be an Itemized description, the actual cash value of each item
being shown. Part of the stock may be preferred, paying not to
T H E L A W S OF MISSOURI
exceed 6 per cent annual dividends. Cumulative voting is permitted.
Directors must not be less than three nor more than twenty-one: three
of them must be citizens and residents of the State. A stockholder
R ELATING TO
having paid for his stock in full is subject to no further liability. The
amount of the bonded indebtedness cannot, in any event, exceed the
amount of the authorized capital stock. The bonded indebtedness
cannot be increased nor the capital stock increased or diminished
BANKING AND COMMERCIAL USAGES
except with the consent of persons holding the larger amount in value
of the stock. Two-thirds in value of the stock may apply to the cir­
cuit
court for a decree for the winding up of the business. The
Prepared and Revised by Messrs. G a g s , L a d d & S m a l l , Attorneys at General
Assembly of 1913 enacted what is popularly known as a
Law,' Kansas City. (See Card in Attorneys’ List.)
“ blue sky law,” placing under strict supervision of the Bank Com­
missioner, corporations and partnerships' carrying on the business of
selling and negotiating stocks, bonds and securities (a few securities
Acknowledgments. Acknowledgments of instruments affecting excepted).
real estate may be before one of the following courts or officers. 1.
Ample powers of visitation and summary action are conferred upon
Within this State, some court having a seal, or some Judge, justice or the Bank Commissioner, and penalties of fine and imprisonment
elerk thereof, a notary public, or some justice of tne peace of the imposed for violation of the law.
county in which the real estate is situated. 2. Outside of this State
A foreign corporation must file In the office of the secretary of state
and within the United States, any notary public, any court having a a copy of its oharter with a statement of the proportion of Its capital
seal or the clerk of such court, or commissioner of deeds. 3. Without stock invested in Missouri and pay certain fees. It then receives a
the United States, any court having a seal, the mayor or chief officer license to do business in the State. It must also maintain an office
of any city or town having an official seal, any minister, consul or in the State. Its personal property in this State may n’ot be Incum­
officer of the United States, or notary public having a seal. The bered to the Injury of any creditor who is a citizen of this State, and
official should certify that ‘‘before me personally appeared...................
no mortgage by a foreign corporation except a railroad or telegraph^
and.....................his wife, to me known to be the persons described In,
company, to secure a debt created in another State Is effective as
and who executed the foregoing instrument and acknowledged that against any citizen of this State until Its debts, due to resident citizens
they executed the same as their free act and deed.”
at the time of recording the mortgage, have been paid. A corporation
with these provisions is subject to a fine and cannot
Actions. There Is In this State but one form of civil action the falling to acomply
suit in a court of this State. A corporation of any country
practice being under a code. A non-resident plaintiff must file the maintain
outside of the United States before being authorized to transact busi­
written undertaking of some resident for costs.
in this State must have a public office in the State, where books
Administration of Estates. The probate court In each county ness
shall be kept, showing in detail its assets and liabilities, the names
has Jurisdiction of the settlement of the estates of deceased persons. and
residences
of its shareholders, officers, directors, and managers.
Claims presented to the court for allowance within six months after None of these requirements
apply tb Insurance companies.
the grant of letters are preferred over those presented later. Claims
Courts. Circuit courts have original jurisdiction in all cases of law
not presented within one year trom the granting of letters are barred.
Letters are granted: 1. To the husband or wife. 2. To those and equity and hold two or more terms in each year in each county.
entitled to distribution, or one or more of them. If after the expira­ Jurisdiction of the settlement of estates of deceased persons Is vested
tion of thirty days after death of deceased, such persons do pot, on five in a probate court in each county. Justices of the peace have juris­
days’ notice, appear and qualify, letters may be granted to any other diction limited to $250; in townships having 200,000 and less than
person. Non-residents cannot be executors or administrators, nor 400,000 inhabitants the jurisdiction is $500. Appeals lie from judg­
may non-resident executors or administrators maintain an action in ments of justices and the probate court to the circuit court.
this State.
Days of Grace are abolished. (See Negotiable Instruments.)
Allens. Allens or alien corporations may not acquire, hold or own
Depositions. May be taken on notice of at least three days and
real estate except such as may be acquired by Inheritance or In the one
additional for every fifty miles of the first 300 and beyond that
ordinary course of justice In the collection of debts. Real estate one day
additional day for each 100 miles from the place of serving the
aoquired by an alien creditor at foreclosure sale must be disposed of notice.
If ¡taken outside of the State a commission issues from the
within five years.
In which the suit is pending. They may be taken within
Arbitration. Parties to a controversy may submit the same to court
the
State
any judge, justice of the peace,notary publio,clerk of a court,
arbitrators, and their award be confitmed by a court and judgment mayor orby
chief officer of a city or town having a seal of office; and if out
rendered thereon.'
of the State by any officer appointed by authority of the laws of this
State to take depositions, a consul or commercial representative of
Arrest. No person oan be arrested under civil process.
States having a seal, or mayor of any city or town having a
Assignments. Voluntary assignments must be for the equal the United
or any judge, Justice of the peace, or other judicial officer, or a
benefit of all the creditors of the assignor and are administered In the seal,
notary
public.
They may be taken upon written interrogatories, but
circuit court. No such assignment operates as a discharge of the this is not customary.
The names of the witnesses or of the officer
assignor from his debts.
need
not
be
mentioned
in the notice. Objections to the competency
Attachments. The writ may Issue when the debtor Is a non-resi­ or relevancy of the testimony
need not be noted, but can be first made
dent; or conceals himself so that the ordinary process of law cannot
be served; or, has absconded or absented himself from his usual place when it is offered at the trial.
Descent and Distribution of Property. The real and persona)
of abode In this State, so that process cannot be served; or, Is about to
remove his property out of tbe State with intent to defraud, hinder, or estate of an Intestate descends and is distributed as follows: 1/ To
delay his creditors; or, is about to remove out of the State and change his children or their descendants in equal parts. 2. If there be no
bis domicile: or, has fraudulently conveyed, concealed, or removed children or their descendants, then to his father, mother, brothers, and
his property, or is about to do so, to hinder or delay his creditors; or, sisters, and their descendants in equal parts. 3. If there be no chil­
has failed to pay the price of any article which he was bound to pay for dren or their descendants, father, mother, brother or sister, nor their
upon its delivery, or has fraudulently contracted the debt; or, where descendants, then to the husband or wife; if there be no husband or
the cause of action accrued out of this State and the defendant has w^fe, then to the grandfather, grandmother, uncles and aunts, and
absconded or secretly removed his property Into this State; or, where their descendants In equal parts. 4. If there be no children or their
the damages sued for arise from the commission of a felony or mis­ descendants, father, mother, brother, sister, or their descendants,
demeanor or the seduction of a female; or, the defendant Is a corpora­ husband or wife, grandfather, grandmother, uncles, aunts, or their
tion whose chief office or place of business Is out of this State. The descendants, then to the great-grandfathers, great-grandmothers, and
plaintiff, his agent, or attorney must make affidavit to one or more of their descendants, In equal parts, and so on, in other cases without end
these grounds, and the plaintiff, except where the defendant Is a non­ passing to the nearest lineal ancestors and their children, and their
descendants In equal parts. Posthumous children inherit. When
resident, must give bond tor double the amount of the debt.
there are collaterals of the half blood, they Inherit half as much as those
Banks are organized under a general law. The cash capital must of
the whole blood. Lineal descendants In equal degree take per
not be less than $10,000 nor more than $5,000,000, and in cities of capital:
but where part of them are dead and part living, the Issue of
150,000 or more, not less than $100,000. The entire capital must be those dead
take per stirpes. When a wife shall die without any child
subscribed, one-half thereof paid up on organization, and the other or other descendants
in being, capable of inheriting, her widower shall
half within one year. Directors must be residents of this State. The be entitled to one-half
real and personal estate belonging to the
receipt of deposits with knowledge of the fact that the bank is in falling wife at the time of her the
absolutely, subject to the payment of
circumstances, Is punishable by fine or imprisonment, and officers the wife’s debts, and thedeath,
widow
takes a like share of the estate of her
and agents consenting to the creation of debts with such knowledge,
on his death without lineal descendants. An illegitimate
are Individually responsible therefor. Not more than 25 per cent of husband
child
inherits
from
Its
mother,
and
vice versa. ' An Illegitimate child
Its capital stock must be loaned to any Individual or corporation.
Large powers of supervision and control are vested in the bank com­ becomes legitimate If the parents Intermarry.
missioner. Private bankers must have a paid-up capital of not less
Dower in real estate is as at common law, but the widow
than $10,000. and in cities of 150,000 population or more, ,not less than hasDower.
the right, at her election, to choose certain portions of her hus­
$ 100 , 000 .
estate asolutely, in lieu of dower. A widow may renounce
Every firm or individual as /well as every corporation that engages band’s
In a will in lieu of dower and elect to take absolutely certain
in the business of banking shall be subject to the strict supervision of provisions
portions of the estate. No conveyance by the husband or sale under
tl\e State Banking Department.
judgment or decree will bar dower. The estate by the curtesy exists
Conditional Sales of personal property, unless recorded, are void as at common law.
as to subsequent purchasers In good faith and creditors.
Executions. Unless motion for new trial is filed within tour days
Conveyances. A person may convey title to lands although not after judgment, execution issues Immediately. Real estate must be
In possession, and although the same be in adverse possession. The sold during a session of the court which rendered the judgment. Sales
signature of the grantor in a deed need not be attested by a subscrib­ of real estate must be advertised for twenty days; of personal property
ing witness. A deed by a natural person need not be under his seal. for ten days. Execution sales are for cash. No execution Is a lien

administer all
gowers—to
anks.)


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BANKING AND COMMERCIAL LA W S— MONTANA

upon personal property until actual seizure thereof. It may Issue at
any time within ten years from the rendition of the judgment. Deeds
to the purchaser are made at once by the sheriff, no confirmation of
■ale being required.
Exemptions. The homestead of the head of a family Is exempt.
In the country to the extent of 160 acres not exceeding in value $1,500,
in cities of 40,000, eighteen square rods, not exceeding In value $3,000;
in cities of 10.000. thirty Bquare rods, not exceeding in value $1.500; in
towns of less than 10,000, ten acres, not exceeding in value $l,50u.
The exemption continues to the widow and to the children until their
majority. There are also exempt, when owned by the head of a family,
ten hogs, ten sheep, two cows, and certain farm implements; two work
animals spinning wheel, loom, and small quantity of hemp, flax, and
wool; wearing apparel; $100 In household and kitchen furniture;
mechanic’s tools; provisions on hand for family use; Bibles and other
books used in the family. Lawyers, physicians, ministers, and
teaohers have the right to select professional books In lieu of other
property allowed to them and doctors may select medicines. In lieu
of oertain of the exempted articles any other property, not exceeding
$300 in value, may be selected.
t Frauds and Perjuries. No executor or administrator Is bound by
his promise to pay any debt or.damages out of his own estate, and no
person Is liable upon any agreement to answer for the debt, default, or
miscarriage of another, or made In consideration of marriage, or for
the sale of lands or any interest In or lease thereof tor a longer time
than one year, or on any agreement that is not to be performed within
one year unless the agreement sued on, or a memorandum thereof,is in
writing signed by the party to be charged or his authorized agent; and
no contraot for the sale of lands by an agent is valid unless the author­
ity of the agent Is In writing. Every gift; conveyance, or assignment
of or charge upon real or personal property made with intent to hinder,
delay, or defraud creditors or defraud or deceive persons who shall pur­
chase the same lands. Is void against creditors and purchasers, prior
and subsequent. The disposition of the larger part or the whole of a
stock of merchandise pertaining to vendor’s business otherwise than
In the ordinary,course of trade, is fraudulent and void as against credi­
tors of the vendor, uhless the vendee shall; at least seven days, before
the sale<furnish to the creditors a statement of the consideration for
the sale, the amount of the indebtedness of the vendor, and the names
of his creditors. All creations of trust In lands must be in wrltlfag
except those resulting by Implication of law.
Garnishment. Garnishees may be summoned under writs of
attachment or execution. A garnishee may discharge himself by
delivering up the property or paying the debt to the officer under order
of court. Credits or property attached In the hands of a garnishee
may be claimed by a third person, who may assert his title by Inter­
pleader. Not more than 10 per cent of the wages due for the: last
thirty days’ service of the head of a family and resident of this State
can be garnished. Public corporations and their officers are exempt
from garnishment, as are also administrators and executors prior to
an order of distribution.
Holidays. January 1, February 22, May 30, July 4, the first
Monday of September, any general primary election day, any general
state election day, any thanksgiving day appointed by the President
or Governor, and December 25 are public holidays; and when any of
them fall on Sunday, the next day is such holiday. February 12,
known as “ Lincoln Day” and October 12, known as “ Columbus Day"
are also holidays, but are not such as respects commercial paper.
Husband and Wife. (See Married Women.)
Interest. Legal rate 6 per cent, but by agreement In writing any
rate not exceeding 8 per cent. The legal rate is collectible on moneys
after they become due; on written contracts or accounts, after due
and /demand made; on money recovered for the use of another and
retained without the owner’s knowledge. If usurious interest has been
paid that part In excess of the legal rate is deemed payment and credit­
ed on the debt, the holder of which recovers the debt only with legal
Interest after deducting such payments, and costs are adjudged
against him. The receipt or exaction of usurious Interest upon a debt
secured by lien upon personal property renders the Hen Invalid. Part­
ies may oontract that Interest may be compounded, but not oftener
than one* In a year.
Judgments. Judgments and decrees rendered by a court of record
are liens on the real estate of the person against whom they are rend­
ered situate in the county tor which the court is held. Transoript of
a judgment filed In the office of the clerk of the circuit court of any
other county becomes a Hen upon real estate In such county. The
lien of a judgment continues for three years, and may be revived at any
time within ten years from Its rendition. Execution may Issue at
any time within ten years from the rendition of a judgment. When
two or more judgments are rendered at the same term as between
parties entitled to the judgments, the liens commence on the last day
of the term at which they are rendered. Judgments bear Interest at
6 per oent, but if upon contracts bearing more than 6 per cent, the
judgment' bears the rate of the contract.
Liens. Statutory provisions exist for mechanics' liens, liens of
keeping horses and other animals, Hens of inn and boarding-house
keepers, liens of contractors, material-men, and laborers against
railroads. >
Limitations. Actions must be commenced within ten yean:
1. Upon any writing for the payment of money or property. 2.
On any covenants of warranty or seizin contained In any deed. 3.
For recovery of lands. 4. For relief not otherwise provided for.
Within five yean: 1. Upon contracts, express or Implied, except
judgments or decrees of court. 2. Upon a statutory liability other
than a penalty or forfeiture. 3. Trespass. 4. Replevin, and for
any other Injury to the penon or rights of another not arising on con­
tract and not otherwise enumerated 5. For relief on the ground of
fraud. Within three yean: 1. Against public offleen for acts of
official commission or omission. 2. For a penalty or forfeiture when
the action Is given to a party or a party and the State. Within two
yean: Actions for libel, slander, assault, battery, false Imprisonment,
or criminal convenatlon. Statute does not begin to run against a
resident of this State who Is absent at the time It accrues, until his
return; If he depart after it accrues, the period of his absence is not
counted. Acknowledgments or promises, to take a case from the
operation of the statute, must be in writing. Judgments are pre­
sumed to be paid after ten yean. A cause of action barred by the
laws of the State In which It originated Is barred In this State.
Limited Partnership. May consist of one or more general and
one or more speolal partners. Special partners contributing a speci­
fied amount In cash to the capital are not penonally liable for the debts
of the partnenhlp and have no power to transact Its business. A
verified statement of the terms of the partnenhlp must be filed with
the recorder of the county. There can be no limited partnenhlp for
the business of Insurance or banking.
Married Women. A married woman is deemed a femme sole so
far as to enable her to carry on or transact business on her own account,
to oontract and be contracted with, to sue and be sued, to enforce or
have enforced against her property such judgments as may be rendered
for or against her. and may sue or be sued at law or in equity, with or
without her husband being joined as a party. Her real estate and
personal property cannot be taken by any process of law for the debts

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1757

of her husband. Neither the rents, issues, or products of her real
estate, nor the Interest of her husband In her right in any real estate,
ean be levied oh for his debts.
Mortgages. Mortgages on real estate are executed like deeds.
Husband and wife must join to bar dower or homestead, except to
secure purchase money. The common form of real estate security
is a deed of trust with power of sale in the trustee upon default in
the payment of the debt. Sale is at pubUc auction, upon twenty
or more days’ public notice, as may be provided in the instrument.
The trustee executes deed to the purchaser. There is no redemption
Iroin sale unless the holder of the debt is the purchaser, in which case
the debtor may redeem within one year if he gives written notice at
the sale or within the preceding ten days of his purpose, and within
twenty days after sale give security for payment of interest to accrue
within the year and all interest on prior incumbrances paid by the
creditor and taxes and assessments (accruing during the year. Evi­
dences of debt secured by mortgage or deed of trust must be produced
to the_ recorder when satisfaction is entered. N o foreign corporation
or individual may act as trustee in any deed of trust unless there be
named as co-trustee a Missouri corporation or Individual citizen of
this state, and the resident trustee must be a party plaintiff In ,an
action to foreclose.
Chattel mortgages are invalid except as between the parties unless
possession of the property be taken and retained by the mortgagee
or the mortgage be acknowledged and recorded In the county of the
mortgagor in the same manner as conveyances of real estate, or unless
the mortgage or a copy thereof be filed in the office of the recorder of
the county of the mortgagor, or, where he is a non-resident of the
State, then in the office of tbe recorder of the county In whioh the
property is situated. Every sucb mortgage ceases to be valid after
the expiration of five years from the filing of the same.
Negotiable Instruments. The General Assembly of this State
has codified the law of negotiable Instruments by the passage of “An
act relating to the negotiable Instruments, to revise and codify the
law concerning the same, and to establish a law uniform with that
of other states on the subject.” The act Is the same as that adopted
by many other states In accordance with the recommendation of the
American Bar Association. It became effective In Missouri June 1$.
1905.
Power of Attorney. An Instrument of writing containing a power
to do any act or business, including the conveyance of real estate, as
agent or attorney for another, when acknowledged In the same form
as required for deeds, may be read in evidence without further proof
of Its execution.
Probate Law. (See Administration of Estates.)
Protest. (See. Negotiable Instruments.)'
Replevin. Goods or chattels wrongfully taken or retained may be
replevied by the owner or party entitled to possession. Affidavit
must be filed and bond In double the value of the property given. In
certain cases defendant may retain possession of the property by giving
a bond in double Its value. If plaintiff fail In his suit, defendant
recovers judgment against plaintiff and the sureties on the bond for
the value of the property and damages.
Taxes. State and county taxes are usually paid In November
or December. If not paid, they are regarded as delinquent from the
first day of the succeeding January. State and county taxes for each
year are a lien upon the real estate from the first day of June of the
preceding year. Delinquent state and county taxes are collected by
suit. Municipal taxes are payable according to the provisions of the
charters or general laws by which they may be governed. In some
cases the payment of delinquent city taxes may be enforced by a sale
of the property without suit; in others, suit must be brought before
sale can be made. There is no redemption from a sale under a judg­
ment for state and county taxes. Redemption Is usually allowed in
a sale for city taxes under the provisions of the particular charter.
Wages. (See Garnishments; Exemptions.)
Wills. Every male person twenty-one years of age may, by his last
wUl, devise all of his estate, real, personal, and mixed, and every male
over the age of eighteen! years! may; bequeath his personal estate.
Women of eighteen years of age and upward, married or unmarried,
may devise their real estate and bequeath their personal property. A
will must be In writing, signed by the testator or some person by his
direction In his presence, and must be attested by two or more com­
petent witnesses subscribing their names to the wUl In the presence of
the testator. If after making the wiU the testator shall marry and die
leaving issue of the marriage living at the time of his death, or bora to
him after his,death, the wlU shall be deemed revoked. The will of an
unmarried woman is revoked by her subsequent marriage. If a child
or children, or the descendants of such child or children. In case of
their death, are not named or provided for In the will, the testator Is
deemed to nave died intestate as to such child or children or their
descendants. WOls must be presented for probate to the probate
court of the county In which was the place of abode of the testator,
WOls may be contested within two years after the probate thereof by
petition to the ciroult court of the county. Real estate In this State
may be devised by last wUl executed and proved according to the laws
of this State. Personal estate may be bequeathed according to the
laws of the state or country in which the will shall be made.

1
SYNOPSIS OF

T H E L A W S OF M O N T A N A
R E L A T IN G T O

BANKING AND COMMERCIAL USAGES

by W i g h t a n d P b w .
Attorneys at Law, Helena.

R e v is e d

Abstracters. Must give $5,000.00 bond to state and shall receive
certificate from State Treasurer authorizing him to do business.
Abstract furnished by authorized abstracter admitted in court has
prima facie evidence of contents.
Acknowledgments of instruments may be taken In this State.
1. Before supreme court Justice, district judge, justice of the peace,
clerk of any court of record, county clerk, notary pubUc, or U. S. Com­
missioner. 2. Outside Montana in the United States. Before the
justiee, judge or clerk of any court of record of the United States or
any state or territory; a commissioner appointed by the governor for

1758

BANKING AND COMMERCIAL, L A W S— MONTANA

that purpose, a notary puDlic, or any other officer authorized to take
acknowledgments. 3. Outside United States before minister, com­
missioner or chargé d’affaires, consul, vice-consul or consular agent of
the United States, a judge of court or record, commissioner appointed
by governor or notary public. In all cases acknowledgment must be
taken within jurisdiction of offlcèr taking.
Must be in substantially following form: “State o f ................. ..,
county o f...............s. s. On this............day o f............. 190.., before
(name and quality of officer)' personally appeared ............... known
to me (Or proved on oath o f...........to be the "person whose name is
subscribed to the within instrument, and acknowledged to me that
be (or they) executed the same.” Same for married women. In
case of corporation same to star, then “ president or vice president
(or secretary or assistant secretary) of the corporation that executed
the within instrument and acknowledged to me that such corporation
executed the same,” and in case of attorney in fact, “ whose name is
subscribed to the within instrument as attorney in fact of................. .......
and acknowledged to me that he subscribed the name of........................
thereto as principal, and ms own name as attorney-in-fact.” Outside
of county must be accompanied by certificate of county clerk.
Administration of Estate Is had in district Courts. Notice to
creditors published four weeks. Claims not presented in tour months
after first notice, if estate $10,000 or less, or ten months if over
$10,000, are barred.
Letters of administration granted to: 1. Surviving husband or
wife or competent appointee. 2, Child. 3. Father or mother. 4.
Brother. 5. Sister. 0, Grandchild. 7. Next of kin who inherits.
8. Public administrator. 9. Creditor. 10. Any person legally
competent. When several claim right' and equally entitled, oourt
appoints, preferring males to females and whole blood to half blood.
Affidavits may be taken or oaths administered before any judicial
officer, clerk of any court, county clerk or notary public in this State;
in any other state before a commissioner appointed by the governor,
notary ptfblio, or judge or clerk of any oourt of record having a seal;
In a foreign oountry before an ambassador, minister, consul, viceconsul, or consular agent of the United States, or judge of a court of
record having a seal.
When taken before a Judge in any other state or foreign oountry,
the existence of the court, signature and official character of the judge
must be certified by the clerk of such court, under its seal.
Allens and Denizens have same right as citizens to acquire, use
and dispose of mining property and real estate in connection there­
with.
Arbitration. Any controversy except over title to real property
may be submitted to arbitration by a written agreement to that effeot
filed in oourt and may be made an order of court. When made an
order of court is irrevocable; otherwise it is revocable at any time
before award. An agreement to arbitrate cannot be specifically
enforced.
Arrest. Defendant in a civil action may be arrested when about
to leave the State or conceal his property, with Intent to defraud
creditors, and in certain other action where fraud, wilful injury, or
wUful violation of duty, or wrongful conversion of money or property
by a public officer or a fiduciary, or for fine or penalty.
Assignments. Voluntary assignments for benefit of creditors
allowed if without conditional preference, not po-ercelve. Impartial,
without reservation for fraudulent benefit of assignor, and does not
confer power upon assignee to delay execution of the trust, nor exempt
him from liability i for negligence or misconduct. Is under partial
supervision of the district court.
AttachiAents. Writ of may be had at the time of issuing sum­
mons or any time thereafter in actions upon unsecured contracts
express or implied for direct payment of money; or if contracts origi­
nally secured, when security has become worthless without plain­
tiff’s fault. Is Issued upoh affidavit on behalf of plaintiff, after filing
bond in double amount \of claim, if Under $1,000; if over, in amount
of claim; bond never to exceed $10,000. Any property, real or per­
sonal, or debt due from or money or personal property held by third
person, including judgments, may be attached.
Banks. No special provisions regarding national banks except
that all banks, organized under laws of this State or the United States,
shall be taxed for value of its stock in county, town, city or district
where located and not elsewhere, regardless of residence of stock­
holders.
•
J
Banks of discount and deposit, incorporated under laws of Montana
for not less than $20,000, all paid in cash, may do business when
authorized by state auditor, certificate of auditor to be published
four times in, town or county where located. Each director must
own at least ten shares of the bank’s stock. Bank may deal in real
estate only as is necessary to the proper transaction of its business,
or in realizing upon securities. Directors must declare semi-annual
dividend out of net earnings, and at same time make report to State
auditor of assets and liabilities, and publish once. Stockholders are
liable for banks’ debts to - extent of stock held by them. Their
liability continues six months after a transfer of the stock. Failure
to comply with requirements for sixty days forfeit franchise.
The total liability of any person, firm, corporation, or company to
any such bank for money borrowed shall at no time exceed fifteen
per cent of paid in capital and permanent surplus; this does not apply
to discount of bills of exchange drawn upon existing values or of com­
mercial paper owned bv person negotiating same.
Eacb such bank must keep on hand funds equal to 20 per cent of
Its immediate liabilities half cash and half balanoes due from solvent
bank. One hundred dollars to five hundred dollars penalty tor
making new loans while reserve beloflf-the proportion. Laws provide
for state examiner, who visits and examines financial condition of
banks yearly. Banks charged certain fees for State examiner fund.
Any employee, officer, or agent of any bank or person doing a bank
business, who receives deposits knowing or having reason to know
that such banking institution is unsafe or insolvent, is guilty of felony,
and Is liable to Imprisonment for one to twenty years.
Banks may be dissolved by district court upon voluntary applica­
tion, or when declared insolvent by state examiner. Saving Dank
corporation may be organized with not less than $100,000 nor more
than $500,000 capital divided into shares of $100 each, $100,000 to
be subscribed in cash before beginning business. May do a general
deposit and loan business. Stockholders liability to same extent as
in other banks. '
Foreign banking corporations may establish branch banks In this
State upon compliance with oertaln special laws.
Bank is not liable for payment of forged or raised check, unless
claim is made within one year after check is returned paid to deposi­
tor. (Session 1909.) Liable for non-payment of check without
malice only to amount of damages proven.
Contracts. Contracts of conditional sale retaining title in vendor
must be filed with county clerk or are void as to bona fide purchasers,
mortgagees or attaching creditors prior to filing.
Conveyances. Title to property of any kind (except a mere pos­
sibility not doupled with an interest). Including a right of re-entry for
breach of condition subsequent, and property in the adverse possession
of another, may be transferred. Deed to several persons, except to
executors and trustees, creates tenancy 1A common, unless expressly
declared a joint tenancy in the deed«, Tfiefee simple title passes by.

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a grant, unless expressly limited to a less title in the deed. Cove­
nants that the grantor has made no previous deed to any other per­
son, and that the premises are free from incumbrance by the grantor
or any one claiming under him are implied from use of word ’’grant.’’
A married woman joining with her husband in any Instrument
affecting real property is bound thereby the same as though single
if duly acknowledged by her. Instruments affecting real property
may, if acknowledged, be recorded, and such reoord imparts notice
to the world. (See Acknowledgments.)
Corporations are formed under the general statute, exoept bank­
ing. insurance and railroad corporations, and corporations not for
profit, which are governed by special laws. Stockholders have one
vote for each share, may vote in person or by proxy, and may cumu­
late votes in director elections. Articles of incorporations filed in
county where principal office located, and copy filed with secretary of
State; many hold only necessary real estate; from three to thirteen
directors, who may be empowered to make by-laws; may classify
directors; control business; stock issued for money or property; stock
liability limited to unpaid portion, directors assenting to creation of
debts beyond subscribed capital stock or making dividends out of
capital stock are jointly and severally liable therefor; stockholder may
examine books; written transfer or power of attorney to sell, and\
delivery of certiflcate.passes title, between parties and against creditors;
may :be attached on books of corporation. Every domestic corpora­
tion having a capital stock must file report in county clerk’s office,
within twenty days after December 31st of each year, showing amount
of capital stock, amount paid in cash, and amount paid in property,
amount of existing debts, and names and addresses of directors, presi­
dent, vice-president, general manager and secretary; directors neglect­
ing to file are jointly and severally liable for debts existing during
failure to file; director may exonerate himself by filing within ten days
after default affidavit showing that during the twenty days he asked
president or sufficient directors to file, and that default is not due to his
neglect. Subject to State tax of one per cent on net income over
$ 10 ,000 .

Foreign corporations, except insurance companies and corporations
otherwise provided for, may do business after filing with secretary
of state and in county where intend to do business, copy of charter
and verified statement of president and secretary, showing name,
capital stock, amount paid in money or property, assets and of what
consist, and their actual cash value, and amount of liabilities; also a
consent to be sued and appointment of agent for service of process
and acceptance of same. Must pay to'Secretary of State filing fees
upon proportion<.of business and assets in Montana to total business
and assets of corporation. If capital increased or diminished must file
certificate thereof with secretary of state and county clerk, and refusal
to do so forfeits right to do business in State. Must within/two months
after April 1st, file report like verified statement just mentioned, in
county clerk’s office, and copy with secretary of state. Can have no
greater rights or privileges tnan domestic corporations.
Foreign corporations doing business in this State are made subject
to the jurisdiction of the courts of this State the same as domestic
corporations and their stock is made attachable in this State. (Ses­
sion 1909.) May be served, if no officer, agent or other representa­
tive can be found in Montana, by leaving process with Secretary of
State. (Laws 1917.)
Foreign incorporations subject to State tax of one per cent on net
income over $10,000.00 on business done in Montana. (Laws 1917.)
Courts. District courts have original jurisdiction in law and
equity where over $50 Involved; have probate and criminal Juris­
diction. City police courts of petty criminal jurisdiction. Justioes
of peace limited to $300, petty criminal cases; cannot try title-to land,
nor questions of constitutionality. Appeals lie from justice to dis­
trict and from district to supreme court. Supreme court appellate
oourt of last resort, except has original jurisdiction in applications for
habeas corpus and similar writs.
Days of Grace. None.
.
Depositions of resident may be taken when witness is a party in
interest, or resides out of the county, or is about to leave and will
probably continue absent, or is too infirm to attend; or the testimony
is to be used on a motion, or when witness is only one who can estab­
lish a material fact and his presence cannot be procured at the trial.
Examination may be upon oral questions or by agreement upon
written interrogatories. In case of non-resident within United States,
judge may issue commission upon five days’ notice, if parties do not
agree upon person, to any Judge, or Justice or commissioner. If out
of United States, may be directed to a minister, embassador, consul,
vice-consul or consular agent of the United States in such country,
or to such person as may be agreed upon. Examination, of non­
residents unless otherwise agreed, must be by written Interrogatories.
Descent. Intestates’ real and personal property, subject to pay­
ment of debts, descends as follows: If widow or surviving husband
and one child, half to each; if widow or surviving husband, and more
than one child or one child and lawful issue of one or more, deceased!
child, one-third to husband or wife and two-thirds to such children
and issue per stirpes; if no child living, two-thirds to lineal descend­
ants, equally if of same degree, if not, per stirpes; if issue and no hus­
band or wife, whole estate to issue if such issue consists of more than
one child living and lawful issue of deceased child or ohlldren, then
in equal shares to living children and issue of deceased children per
stirpes; if no issue, one-half to husband or wife and one-half to father
and mother in equal shares, or is either be dead, the whole half goes
to the survivor. If no father or mother one-half in equal shares to
brothers and sisters or „heir children per stirpes. If no issue nor
husband or wife, entire estate to father and mother equally, or tosurvivor. If no issue father, mother, husband, nor wife, in equal
shares to brothers and sisters and to children of any deceased brother
or sliter per stirpes. If surviving husband or wife, and neither issue
father, mother,' brother, nor sister, entire estate to husband or wife;
if none of above mentioned, to next of kin in equal degree, claiming
through nearest ancestor; if leaves more than one child, or one and
the issue of one or more deceased children, and any such child die
unmarried under age, his snare goes to children of same parent or
their issue per stirpes. If no husband, wife or kindred, the property
escheats to State. Illegitimate child is heir of person who acknowl­
edges himself, in writing before a competent witness, to be its father
ana is an heir of his mother; if parents intermarry, is legitimatized.
Dower. Curtesy abolished. Wile endowed of third of land»
owned by husband during marriage. Equitable estates and contracts
included. No dower in lands mortgaged for purchase price as against
mortgagee, nor in lands conveyed to him by way of mortgage unless
he acquire absolute title during lifetime, Devise or bequest bar»
widow’s dower unless: otherwise expressed in will, but she may elect
between devise or bequest and dower, within one year In writing.
If husband die leaving no children nor descendants of children, widow
may have, absolutely, one-half of all his estate after payment of
debts. If she elect within two months after payment of debts. A
woman may be barred of dower by jointure-with her assent before
marriage, consisting of freehold in lands of life, at least, beginning at
death of husband. Dower is not affected except by wife’s deed.
Execution unless stayed by order of court, may issue at once upon:
rendition of Judgment; becomes lien on personalty upon seizure by
officer holding writ. All property sold to highest bidder. Defendant

BANKING AND COMMERCIAL LA W S— MONTANA

or creditor may redeem from sale of real estate within year, or sixty
jays after previous redemption.
Exemptions. To head of family, homestead to value of $2,500,
and descends as such to surviving wife or husband and children.
Head of family allowed wearing apparel, chairs, tables, books, at
$200, all necessary household goods and certain domestic animals and
provisions for three months; forty-five days earnings exempt where
necessary for support of family, except one-half such earnings may
be taken for debts for necessaries. Generally, tools and implements
of trade.-'llbraries, etc., of professional men who are heads of families,
are exempt.
Fraud. It Is criminal fraud to attempt to obtain Insurance money
wrongfully; or fraudulently, destroys Insured property; to issue, sell,
transfer or pledge any false, fraudulent or simulated stock certificate
or evidence of shares of any corporation, or any officer to sign any
such certificate; unauthorized use of another's name In selling stock;
for a director, officer, or agent of corporation to publish false report
of its affairs; to falsely represent one’s self as competent to sefl or
mortgage real estate when signature of husband or wife Is necessary;
to get money or property by false representations as to wealth or
mercantile character; to sell any land after having once sold or
agreed in writing to sell the same to another; to convey any real or
personal property with intent to defraud and deceive others or to
hinder or delay creditors; to wilfully certify any false acknowledgment
with Intent to defraud; to issue any false warehouse receipts or to
wrongfully remove or. dispose of any property for which a warehouse
receipt has been issued; for the mortgagor to dispose In any manner
of any property covered by chattel mortgage. Any negotiable Instru­
ment procured by fraud or circumvention to be executed Is void even
In hands of innocent holder.
Frauds. St&tute of. Agreement of executor or administrator to
answer for obligation of decedent out of his own estate; agreement
not to be performed In one year; promise to answer for obligation of
another, unless it Is made an original obligation of promissory; an
agreement upon consideration of marriage, except mutual promise to
marry; for sale of personalty at a price of over $200, unless part of
prloe paid or part of goods accepted, except at auction sale when
auctioneer enter sale In sale book; lease for over, one year; for sale of
realty, or authorizing broker or agent to sell land for compensation;
Is void unless in writing signed by party to be charged or his agent
duly authorized (in writing In case of agreements affecting real estate).
Every transfer of property, or charge thereon made, every obligation
Incurred, every judicial proceeding t&ken, and every act performed,
with intent to delay or defraud any creditor, or other person, of his
demands. Is void against all creditors of the debtor and their represen­
tatives or successors In lnterst, and against any person upon whom
the estate of the debtor devolves in trust for the benefit of others than
debtor. All declarations of trust In lands shall be In writing, except
resulting trusts or trusts created by Implication or operation of law.
Husband and Wife. Husband must support wife If able; if not,
she must assist; husband has no curtesy; wife has dower; neither
can be excluded from others dwelling; may contract with each other,
or any other persons, the same as though unmarried; cannot alter
legal relation by contract, except may agree to immediate separation,
mutual consent being sufficient consideration; may hold property
jointly or in common; wife may sue and defend alone; all property of
wife is her separate property, and she can convey, or execute power of
attorney thereon without husband’s consent. Her deed must be
acknowledged. Filing inventory of her personal property exempts
same from claims against husband, except for necessaries for herself
and her children. Wife must support husband out of her property
If he is infirm. Wife may dispose of her property by will, except that
such will must not, without his written consent, deprive husband of
overtwo-thirds of her real estate or two-thirds of her personal property;
wife may make contract, etc., the same as though single. If husband
neglect to support his wife, bills for necessaries sold her can be collected
from him, but not when separated by consent, unless support stipu­
lated in such agreement.
Interest. Bight per oent on Judgments and damages. In other
cases 8 per cent in absence of agreement. May contract for not more
than 12 per cent per annum.
Judgment of ootlrts of record (Including federal courts of county)
If transcript of such judgment If filed In district court are lien on
realty In county for six years; realty in another county becomes sub­
ject to lien upon filing of transcript of judgment In such county.
Abstraot of justice court judgment becomes lien on realty in any
county where filed In district oourt.
Liens. Laborers and materialmen have lien, for labor or material,
on property. Must file in couty clerk’s office within ninety days
and suit must be brought within a year after filing. Hotel, boarding,
and lodging house keepers have lien on baggage of guests brought
Into suoh house. One performing service with respect to personal
property, Including feed and care of animals, has a lien upon such
personalty or animals. Person furnishing another seed grain has lien
upon crops produced thereby up to 700 bushels, to secure payment of
purchase price. Verified lien must be filed an the office of the Clerk
and Recorder. Such lien is prior to all other encumbrances.
Threshermen have lien upon crops threshed for services in threshing
subject only to seed lien. Verified lien must be filed in the office
of the Clerk and Recorder.
Limitations of Actions. Action upon judgment of any court of
record, aotlon to redeem from mortgage when mortgagee Is In posses­
sion, ten years; actions for recovery of real estate or mesne profits
thereof, ten years, but In Buch cases statute does not run against
person who at the time title first descends or accrues Is a minor, or
Insane, or Imprisoned on criminal charge for less than life, until such
disability ceases; upon contract, account or promise in writing,
tight years; to establish lost, concealed, or destroyed will, or upon a
judgment of a court not of record, five years; against sheriff, coroner,
or constable for breach of official duty, action for damages for wrongful
death, or for obligation not in writing, other than a contract, account
or promise, three years; upon statutory liability, for waste or trespass,
detainer of or injury to chattels, for relief on ground of fraud or mis­
take, or for libel, slander, assault, battery, false Imprisonment or
seduction against a railroad for killing or .injuring; livestock, two years.
Against a sheriff or other officer for escape of civil prisoner; against
municipality for violation of ordinance, against officer for. money or
property taken as such, one year; to recover stock sold for delinquent
assessment, and actions against a county after rejection of claim by
county commissioners, six months.
All cues not specifically mentioned, five years. Statute does not
run during absenoe of defendant from this State.
Loans. Farmers loan department established.
' Married Women. (See Husband and 'Wife.)
Mortgages of real estate-are executed same as deeds. Husband
and wife must join to bar dower or homestead, except purchase money
mortgages. Non-judicial sale under power valid. Lien good Jar
eight years after maturity of debt,- and may be renewed by affidavit
for eight years more. As to any mortgage now existing as to which
eight years or mòre has elapsed same may be renewed for eight years
by filing affidavit in six months from February 17, 1913.

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1759

Chattel mortgage must be duly acknowledged, and be accompanied
by affidavit of mortgagee that same is made in good faith and not to
hinder, delay, or defraud creditors; not valid except between parties
until filed in county where property is situated. Lien good until
maturity of debt not exceeding two years and sixty days. May be re­
newed by filing affidavit within sixty days after expiration of two
years, stating amount still due, and alleging good faith, etc.
Negotiable Instruments. Must be payable In money and must
contain an unconditional promise to pay a sum certain on demand or
at a fixed or determinable future ilme;must be payable to order or
to bearer; may be in installments and contain provision that on any
default the whole shall become due; with exchange fixed or current
rate, interest and attorney’s fees for collection may authorize sale
of collaterals and confession of judgment; If it reads “I promise to
pay” all signers are Jointly and severally liable may be payable at
fixed time after date or sight, or after specified certain event, but not
upon a contingency; need not specify value given nor place where
drawn or payable; If issued, accepted, or endorsed when overdue It Is
payable on demand; may be payable to two or more payees jointly,
or one or more of several payees; absence or failure of consideration a
defense against one not a holder In due course^and partial failure a
defense pro tanto. One not a party to instrument placing a signature
In blank before delivery becomes an endorser. Every endorser
engages that on due presentment it shall be honored or that he will
pay the amount to holder or any subsequent endorser who may be
compelled to pay; no days of grace; when maturity falls on Sunday
or holiday payment Is due on next business day; if due on Saturday
must be presented on next business day, but if payable on demand
holder may present same before noon on Saturday. Fraud and cir­
cumvention in procuring execution of Instrument is a defense against
any holder.
Presentment. It is not necessary to charge one primarily liable If
payable at special place ability and willingness to pay it there at
maturity is equivalent to a tender; If not on demand It must be pre­
sented on day It falls due. If on demand then within a reasonable time
after Its Issue, except a bill of exchange must be presented within
reasonable time after its last negotiation.
Alterations. Fraudulent or material, do not affect original Instru­
ment in hands of Innocent holder in due course.
Acceptance. Uncohdltional promise In writing to accept a bill
before or after drawn is good In favor of all who take It upon faith
thereof for value. The holder may decline a qualified acceptance and
trfeat the bill as dishonored; If he takes qualified acceptance drawer
and endorsers are discharged, unless they consent thereto.
Protest, of foreign bills may be made by notary public or by any
respectable resident of the place In presence of two or more credible
witnesses; bill of exchange does not operate to assign funds In hands
fit drawee and he Is not liable unless he accepts.
Promissory Note. Must be unconditional promise In writing to
pay on demand or at-fixed or determinable time a sum certain In
money to order or bearer, and where drawn to maker’s own order is
hot complete until endorsed by him; may be in Installments.
A Check Is a bill of exohange on a bank payable on demand; must
be presented within reasonable time after issue and if dishonored
notice must be given or drawer is discharged to the extent of loss
caused by delay; does not operate to assign any part of drawer's
funds In bank and bank Is not liable unless it accepts or certifies. If
holder has check certified the drawer and endorsers are discharged.
The present negotiable Instrument law of Montana consisting of
198 sections went Into force March 7, 1903. Its provisions do not
apply to Instruments made prior thereto. \The act so materially
changes the law In this State as to suggest the propriety of special
examination In any doiibtful case.
This law is nearly if not quite Identical with that now In force la
New York, Illinois, and other states.
Replevin. The plaintiff In an action to recover possession of per­
sonal property may replevy the same at the time of issuing summons
or at any time before answer, upon making affidavit showing that the
plaintiff Is the owner of the property or entitled to possession thereof;
that It Is wrongfully detained, and has not been taken for a tax,
assessment or fine pursuant to a statute or seized under an attachment
or an execution against the plaintiff; or if so seized that it is exempt;
and also stating the actual value of the property. A demand for the
delivery of the property should -be Indorsed upon the affidavit and an
undertaking in double the value of the property must be\ given.
The defendant has two days in which to except to plaintiff’s sureties,
or he may require the return of the property by giving an undertaking
In double the value of the property. If such undertaking is not given
within five days from the replevy the property must be turned over
to the plaintiff.
Tax<58. All kinds of property, except public property and property
for beneficent purposes, are subject to tax for public purposes only.
Such taxes are a lien upon the property, which Uen has the effect of
an execution levied on all such as are delinquent after the 30th day
of November, after which a penalty of 10 per cent is added. The
delinquent tax list Is published In some newspaper on or before the
last Monday of each year, ana In not less than twenty-one and not
more than twenty-eight days after the first publication sale of the
real estate Is made, subject to redemptiion within thirty-six months
from date of sale. The purchase money draws interest at 1 per cent
a month from the date of sale. The purchaser is entitled to a tax
deed at the end of the thirty-six months but must give thirty days’
notice to the owner or occupant of the property. Taxes are assessed
to the party in whose name the property stands of record on the first
Monday In March of each year. An Inheritance tax of $5 for every
$100 worth of property must be paid by anyone, not a blood relation,
inheriting such property; and blood relations and adopted children
pay a tax of $1 for $100 worth of property inherited. Estates under
$7,500 not liable for Inheritance tax.
Redemption may be made before deed by payment of taxes, 10 per
cent penalty, 50 cents for publication, and interest at 1 per cent per
month.
Action to annul tax deed must be brought In two years after date
of Issuance. [Session 1909.]
Wills. Every person over eighteen years at age and of sound mind
may dispose of au his estate, real and personal, by will. All wills,
except nuncupative, must be In writing. And ail wills, except -nun­
cupative and holographic, must be executed and attested as follows:
1. Must be subscribed by the testator himself, or sone one In his
presence and by his direction, must subscribe his name thereto. 2,
The testator’s signature must be made in the presence of the attesting
witnesses or acknowledged to have been made by him or by his author­
ity.' 3. The testator must declare to the attesting witnesses that
the Instrument Is his will. 4. There must be two attesting witnesses
who must sign the will at the testator’s request, in his presence. An
holographic will is one entirely written by the testator himself -and
subject to no form. The estate bequeathed by a nuncupative will
must not exceed $1,000 In value, must be proved by two witnesses,
must have been made in actual contemplation, fear, or peril of death,
and must be proved within six months after stating the testamentary
words unless the substance thereof was reduced to writing within
thirty days after, they were spoken. A will executed according to
law of the State where the testator was then domiciled may be pro­
bated In this State.
v .Vi

1760

BANKING AND COMMERCIAL L A W S — NEBRASKA

register of deeds office, and within thirty days It shall be recorded in
any other county where property conveyed be situated. A creditor
may file and proVe a claim and concurrent therewith, may pursue a
separate remedy against the assignors for the collection of such daim.
Conveyances, preferences, payments, pledges or transfers of property
made by an Insolvent debtor in contemplation of such Insolvency,
within thirty days prior to making an assignment, are void, except
that the assignor may pay or secure clerks or servants’ wages, not
exceeding $100 to any one person, and may pay or secure any debt
created within nine months prior to that time and may secure any
debt contracted simultaneously with the giving of such security.
Assignments of wages of head of family void unless executed and
acknowledged by husband and wife.
Attachments. The plaintiff at or after the commencement of an
action may have an attachment against the defendant’s property,
when the amount is due, by filing an affidavit showing any of the
following grounds: 1. That the defendant is a foreign corporation'
or non-resident of the State. 2. Has absconded with intent to
SYNOPSIS OF
defraud creditors. 3. Has left the county of his residence to avoid
the service of summons. 4. So conceals himself that a summons
cannot be served upon him. 5.* Is about to remove his property,
or a part thereof, out of the jurisdiction of the court with the intent
TÎiE LAWS OF NEBRASKA
to defraud his creditors. 6. Is about to convert his property, or
part thereof into money for the purpose of placing it beyond the
reach of his creditors. 7. Has property or rights in action which he
conceals. 8. Has assigned, removed, or disposed of, or is about to
R E L A T IN G TO
dispose of his property, or a part thereof, with intent to defraud his
creditors. 9. Fraudulently contracted the debt or, incurred the
obligation for which suit is brought. The affidavit must further
BANKING AND COMMERCIAL USAGES
show the nature of plaintiff’s claim, that it is just and the amount
which affiant believes plaintiff ought to recover. No undertaking is re­
quired where the defendant is a foreign corporation, or is a non-resi­
dent of the State but in such cases no attachment can be had for claim
Revised by Montgomeby, H ale & Y oung , Attorneys at Law, Omaha.
other than debt or demand arising upon contract, judgment or decree,
(See Card In Attorneys' List.)
unless plaintiff has been bonaflde resident of state for six months
preceding filing of petition. In all other cases plaintiff must give an
undertaking
in double the amount of his claim. 1f property cannot be
Acknowledgments. (See Deeds) may be made In this State
by the officer it may be reached by garnishment process. To
before a notary, judge or clerk of any court, justice of the peace, seized
obtain
attachment
in an action not founded on contract, original
county clerk or deputy, register of deeds or deputy, deputy clerk of
must be presented to judge of supreme, district or county
district or county court in name of his principal, secretary of state, petition
who shall make an allowance thereon of the amount in value
under seal, if the officer have one. If acknowledgment taken in any court
the property that may be attached, and the amount of bond, if
other state or territory, it must be in accordance with the laws of of
this State or of the state or territory where taken, and must be before any, to be given by plaintiff.
some court of record or clerk or officer holding seal thereof, or a
Banking. Only National banks and state banks which are in­
commissioner of deeds appointed by the governor of this State for corporated under the laws of Nebraska, can transact banking busi­
that purpose, or notary public, or Justice of peace; if before justice ness here.. State banking board has general supervision and control
of the peace, acknowledgment| must be accompanied by certificate of all state banks. Every state bank must obtain charter from
of his official character under hand of clerk of some court of record,
this board. Board appoints examiners who investigate affairs
to which the seal of such court shall be affixed. If the officer have
of each hank at least twice a year. After each examination bank
no seal, then the acknowledgment must have attached thereto a must pay to state treasurer fee of $15 or more, according to capital.
Certificate of the clerk of a court of record, or other proper certifying Savings banks must have at least $15,000 capital; if in city of 50,000
officer of the district or state where taken under the seal of his to 100,000, $35,000; 100,000 or more, $75,000. Other banks must have
office, showing that the person taking the acknowledgment was capital as follows: Minimum, $10,000; in town of 100 to 500, $15,000;
at the date thereof, such officer as he is therein represented to be, 500 to 1,000, $20,000; 1,000 to 2,000, $25,000; 2,000 to 5,000, $35,000;
that he Is well acquainted with the handwriting of such officer; that he
5,000 to 25,000; $50,000; 25,000 to 100,000, $100,000; 100,000 or more,
believes the said signature of the officer to be genuine, and that the
$200,000. , Such capital shall be in money, credits, national, state,
deed or other instrument is acknowledged in accordance with the laws county or municipal bonds* bank furniture, and the bank building and
of such state, district, or territory. If acknowledgment taken in a
ground on which situated, which ground shall be unincumbered, but in
foreign country, it may be acknowledged before any notary public,
no case shall the bank building and ground, together with furniture and
minister plenipotentiary, extraordinary or resident, chargé d'affaires,
fixtures, exceed in value one-third or the furniture and fixtures alone
commissioner, commercial agent or consul of the United States. In
1 0 per cent or the national, state .county and municipal bonds oneexecuting acknowledgment, notaries public must write In the date of the half paid-up capital. Before commencing business the bank shall
when their commission expires or else said date must be Imprinted on
make a detailed statement of the proposed business to the banking
their seals. Acknowledgements, attestations, and affidavits before board, which, after approval, shall Issue a charter. Every bank must
U. S. army officers in foreign places are valid if officer authorized by make at least quarterly detailed reports under oath, showing the
amount loaned upon bonds and mortgages, amount loaned upon notes,
laws of United States.
bills of exchange, overdrafts, and other securities, with the actual
Actions. Must be brought by real party In Interest, except as to
administrator, trustee, etc. However* assignees of choses in action market value thereof, the amount of rediscounts and of commercial
paper past due, the amount invested In real estate, at cost, the amount
assigned for purpose of collection'may sue on any claim assigned in
cash on hand and on deposit In banks or trust companies, with their
writing; but such assignees must give security for costs. Non-resident of
names and the amount deposited in each, and the amount of all other
plaintiff must give security for costs.
assets,
together with such other information as the banking board may
Adm inistration of Estates. (See Decedents.) County courts
require. A summary of such report must be published in some local
have exclusive jurisdiction over estates. Administration Is granted
newspaper
and proof of such publication transmitted to the banking
to widow or next of kin, or both, or some one selected by them; but if
board, and such board may call for special reports at any time. Fail­
unsuitable, or if they fall for thirty days after death of a party to apply
ure to make reports entails a penalty of $50 for each day’s delinquency,
for letters, same may be issued to a creditor, or to some one selected
and those making false statements in such reports or in the books of
by the Judge. Executors and administrators must give bond, as
the bank may be punished as felons. It is likewise a felony for a bank
required by the court, and must, within three months after appoint­
to receive moneys or permit same to be received on deposit when the
ment, make report of all property belonging to deceased. General
bank Is insolvent; to loan to an officer or employe of the corporation
letters of administration are only issued after due notice to parties
without the approval of a majority of the directors; to carry as assets
Interested, and If oase 1b urgent a special administrator may be ap­
any note or obligation of the partnership, member thereof, or individu­
pointed. who shall make report within two weeks. Personally is disal, where such partnership or Individual do a banking business; to
osed of under direction of the county court, but to sell real estate,
permit shareholders, where the bank is a corporation, to become in­
Soense
must be obtained from the district court. Debts of deoedent
debted in a sum exceeding 50 per cent of the paid-up capital of suoh
are a lien upon all real estate. If no administration within two years
bank. Every stockholder Is liable for debts acoruing during his
any heir of deceased or any person having acquired real estate from
of stock, for an amount equal to the paid-up value of the
deceased or heirs may obtain from county court determination of ownership
held, and all shares of stock are assessed In the place where ths
heirs of deceased degree of kinship and right of descent of real property shares
bank Is located, whether the owners thereof reside there or not, and
of deceased.
taxes are a lien upon the stock. A guaranty fund is provided by
Affidavits. (See Depositions.) Affidavits may be made before
assessments on all state banks based upon the average daily deposits.
Claims of depositors and of holders of exchange have priority over all
anyone authorized to take depositions, and must be subscribed in
other claims, except taxes, and, subject to taxes, are first lien on all
presence of the officer and sworn to before him, and this fact must be
assets of bank when bank closed. Bank other than savings bank
stated In the affidavit. If made out of State and the officer has no seal,
shall not permit loans and investments, exclusive of reserve and
affidavit must have attached thereto a certificate of clerk of a court
banking house and fixtures to exceed fifteen times amount of capital
netting authority of such officer.
and surplus. All state banks in cities of o-ver 25,000 must keep a
Allens. Non-resident aliens and foreign corporations may not own
reserve of 20 per cent, and two-fifths of the 20 per cent shall be cash
or hold real estate In Nebraska, but the widows and heirs of such aliens
in vaults, but two-fifths of said two-fifths of 20 per cent may be in
who held lands prior to March 18, 1889, nave ten years to dispose of
Liberty or other U. S. war bonds. Rediscounts and bills payable must
their interests, and those who aoqulred their ownership prior to that
not exceed paid up capital and surplus except for payment of depositors
date may dispose of same during their life. . If not so disposed of. the
State banks and trust companies may become members of federal
lands escheat to the State. However, non-resident aliens may acquire
reserve bank. It is unlawful to bid or solicit for purchase of bank
a lien upon real estate, ana, pursuant or subsequent to such, may pur­
stock above par until banking corporation organized and actually
chase such real estate, but shall dispose of same within ten years from
engaged in banking business. Every bank must have reserve of
time of acquiring title. These provisions do not apply to railroads nor
15 per cent. One-third of the 15 per cent must be in cash in vaults
to real estate upon which buildings are erected and maintained for
of bank.
manufacturing purposes, nor to that within the corporate limits of
eltles and towns. Aliens who declare their intention to become citizens
of the United States thirty days before an election, conformably to the
laws of the United States on subject of naturalization, are electors,
same as citizens. Aliens ase not eligible to hold public office or official

position.

Arbitration. Instead of submitting a controversy to a court,
parties may agree in writing to arbitrators, whose deoislon. after confir­

mation by the court, shall stand as a verdict. Judgment may then
be entered and execution issued.
Arrests. Arrest and imprisonment in civil actions for debt are,
abolished.
A ssignm ents. (See Exemptions, Acknowledgments.) Every
assignment for benefit of creditors shall be made to the sheriff of the
county, and shall include all property of the assignor, except such as
may be exempt. Assignments shall be executed and acknowledged
the same as a deed to real estate, and within twenty-four hours after
its execution shall be filed for record in the oounty clerk's office, and
if real estate is mentioned therein, it shall also be recorded in the


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Federal Reserve Bank of St. Louis

Bills of Exchange*

(See Notes and Bills of Exohange.)

Blue Sky Law. (See Corporations.)
Bulk Sales. (See Sales.)

Chattel M ortgages. Every ohattel mortgage, If not accompanied
by an immediate delivery of the goods and be followed by an actual
and continued change of possession thereof, is absolutely void as
against creditors of the mortgagor and as against subsequent pur­
chasers and mortgagees in good faith, unless such mortgage, or a copy
thereof, be filed in the county clerk’s office wnere the mortgagor resides,
and if he be a non-resident, then in the clerk's offloe of the oounty
where the mortgaged property be situated. Such ohattel mortgage
need not be acknowledged unless it convey household goods used la
the family by the husband and wife, or either, in whleh oase it must be
signed and acknowledged by both husband and wife, the same as real
estate conveyances, verbal mortgages are good between the parties.
It is a felony to transfer or dispose of personal property mortgaged
without procuring the consent of the mortgagee, or to remove same

BANKING AND COMMERCIAL L A W S— NEBRASKA

out of the oounty with Intent to defraud the mortgagee of hla security.
Mortgagor required to give accounting for mortgaged property from
time to time on demand of mortgagee, and to give mortgagee notice
in writing within 10 days after loss or death of mortgaged articles
or animals.
Claims. (See Acoounts, Administration of Estates.)
Commercial Travelers. (See Licenses.)
Conditional Sales. A sale or lease of personalty may be made
and title thereto retained in the vendor until the purchase prloe be
fully paid, or condition compiled with, by having the oontract of sale
or lease in writing signed by the vendee or lessee, and then tiling copy
of same in the county clerk's office, with affidavit of vendor, his agent
or attorney attached thereto, giving names and full and true interest
of parties and description of the property. Such sale or lease shall be
invalid at expiration of five years as against purchasers in good faith,
or Judgment or attaching creditors, unless the vendor or lessor shall,
within thirty days prior to the expiration of the five years, repeat the
Sling, whioh must be made annually thereafter. These sales are valid
as between the parties and as against judgment or attaching creditors
and subsequent purchasers and mortgagees with notice.
Consignments. It is a felony on the part of a factor or agent to
whom goods have been consigned to sell or assign, such goods with
intent to defraud the owner. Is also a felony for the owner of goods,
after receiving an advancement upon the shipment, to sell or transfer
such goods contrary to the agreement between him and the consignee.
Contracts. Every contract for the purchase or sale Of real estate or
any interest therein, except a lease tor a period not exceeding one year
from the making thereof, must be in writing and subscribed by the
party to be charged. Every agreement by its terms not to be per­
formed within one year from the making thereof, every special promise
to answer for the debt, default or misdoings of another, every agree­
ment, promise, undertaking made upon consideration of marriage,
except mutual promise to marry, ahd every special promise of an
executor or administrator to answer damages out of his own estate,
and every contract for the sale of goods and things in action, for
the price of $50, or more, shall be void unless note or memorandum
be made in writing by the party to be charged thereby. If, however,
when oontract for sale of goods and chattels of the value of $50 or
more is made, and a part of the purchase price thereof is paid, or a
part of the goods and chattels are delivered, to the buyer, no memoran­
dum Is necessary. (See Statute of Fraud.)
Conveyances. (See Deeds, Mortgages, Conditional Sales.)
Corporations. (See Foreign Corporations.) Any number of per­
sons may associate and Incorporate for the transaction of any lawful
business, including the construction of canals, railways, bridges, and
other works of Internal improvements. Every corporation, as such,
has power: l. To have succession by its corporate name. 2. To
sue and be sued, to complain and defend in courts of equity and law.
3 . To make and use a common seal and alter the same at pleasure.
4. To hold personal estate and all such real estate as may be necessary
for the legitimate business of the corporation. 5. To render all
interest of the stockholders transferable. 6. To appoint such
subordinate officers and agents as the business of the corporation shall
require, and allow them a suitable compensation therefor. 7. To
make by-laws not inconsistent with any existing law, for the manage­
ment of its affairs. Every corporation previous to the commencement
of any business, except its own organization, when the same is not
formed by legislative enactment, must adopt articles of incorporation
and have them filed in the office of the secretary of state; and domestlo
corporations must also file with the county clerk in the county where
their headquarters are located. Banking corporations and building
and loan associations must also file with State Banking Board. In­
surance companies, holding companies and all companies under con­
trol of state auditor must also file with that department. The ar­
ticles of incorporation must fix the highest amount of indebtedness
of liability to which the corporation shall, at any one time, be sub­
ject, which must in no case exceed two-thirds of the capital stock.
(Exceptions made for insurance companies, deposits in banks, loan
and trust companies.) Must incorporate within one year after
organization, or power ceases. Notice must be published in some
newspaper near the principal place of business, for four weeks. Such
notice shall contain: X. The name of the corporation. 2. The
principal place of transacting its business. 3. General nature of
the business to be transacted. 4. The amount of capital stock author­
ized» and the time and conditions on which it is to be paid in. 5.
The time of commencement and termination of said corporation.
6. Highest amount of indebtedness or liability to which corporation
is at any time to subject itself. 7. By what officers the affairs of
the corporation are to be conducted. The notice required must
be published within four months from the time of filing such articles.
Two-thirds of its members may dissolve corporation unless other­
wise adopted in articles of incorporation. Copy of by-laws of the
corporation, with the name of all the officers appended there
must be posted in some conspicuous place at the place of doing busi­
ness, subject to public inspection. Shall give notice annually, in
some newspaper printed in the county or counties, or in State if
none in the oounty, of the amount of all existing debts of the cor­
poration, signed by the president and a majority of the directors. If
corporation shall fail to do so, stockholders of corporation shall be
Jointly and severally liable for all the debts of the corporation after
exhausting its assets, and for all debts contracted before said notice
is given, to the amount of the unpaid Individual subscription of any
stockholder to capital stock, and in addition thereto the amount of
capital stock owned by such individual.
,
All corporations, whether incorporated under laws of Nebraska or
any other State, must procure a state occupation permit from secre­
tary of state, annually, before they may do business here. Annual
fees for such permit as follows based upon capital stock or uome
companies, or on that portion of capital stock of foreign companies
which represents Nebraska business: Capital of $1,000 to $10,000,
fee of $5; $10,000 to $20,000, $10; $20,000 to $30,000, $15; $30,000 to
$40,000, $20; $40,000 to $50,000, $25; $50,000 to $60,000, $30;
$60,000 to $70,000, $35; $70,000 to $80,000, $40; $80,000 to $90,000,
$45; $90,000 to $100,000, $50; $100,000 to $125,000, $60; $125,000
to $150,000, $70; $150,000 to $175,000, $80; $175,000 to $200,000, $90;
$200,000 to $225,000, $100; $225,000 to $250,000, $110; $250,000 to
$275,000, $120; $275,000 to $300,000, $130; $300,000 to $325,000,
$140; $325,000 to $350,000, $150; $350,000 to $400,000, $160; $400,000 to $450,000, $170; $450.000 to $500,000. $180; $500,000 to
$600,000, $200; $600,000 to $700,000, $250; $700,000 to $800,000,
$300; $800,000 to $900,000, $350; $900,000 to $1,000,000, $400;
$1 000,000 to $10,000,000, $400, and $75 additional for each million
or’ fraction thereof over $1,000,000; $10,000,000 to $15,000,000,
$1,200; $15,000,000 to $20,000,000, $1,500; $20,000,000 to $25,000.000
$2,000; over $25,000,000, $2,500. These fees, taxes and penalties
are first lien on all property of the corporation.. Fee for domestic
.corporations payable July 1st. for foreign corporations, during month
of July. Fifteen per cent penalty for 30 days delinquency after
3 months wilful default, attorney general on request of secretary of
state must bring action to forfeit charter. Foreign corporation
must appoint resident agent on whom process may be served.
Blue Sky Law, prohibits sale of most corporate securities except
upon permit by State Trade Commission. Detailed sworn statements
required. Permit fee, $10, if capital does hot exceed $25,000, other­
wise $25; for each agent, one permit, one-dollar per year. State trade
commission investigates and gives information but does not recom­
mend securities. Commission must not exceed 15per cent of par value,
organization and promotion not more than 2 y% per cent.
112

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Federal Reserve Bank of St. Louis

1761

Costs. (See Security for Costs.)
Courts. (See Actions, Appeals.) Juvenile courts are established
tor treatment and control of dependent, neglected and delinquent
children. Justice and county courts are for all practical purposes,
open at all times except holidays; but their Jurisdiction is limited.
District courts have general jurisdiction, and have exclusive juris­
diction in certain cases. The terms of the district court in each
county are fixed by the presiding judge at the beginning of each year.
The supreme court has original jurisdiction in a few cases provided by
statute, but its work is principally confined to reviewing decisions of
the district court. Municipal courts are provided for cities.
Curtesy. Abolished 1907. (See Decedents.)
Days of Grace. (See Notes.)
Decedents. (See Administration of Estates.) If a party leaves
no will his property descends subject to his debts as follows:
1.
One-fourth to the husband or wife, if survivor is not the parent
of the children. 2. One-third to the husband or wife, if survivor is
parent of the children. 3. One-half to husband or wife, if one or no
child living. Residue to blood relatives. 4. If no husband or wife
surviving, to the children in equal shares and lawful Issue of deceased
child by representation. 5. If no issue, to father and mother or
survivor. 6. If no Issue nor parents, in equal shares to brothers
and sisters and children of such deceased, by representation. 7. It
no parents nor brothers nor sisters, to next of kin in equal degree,
but where ,there are two or more collateral kindred in equal degree,
but claiming through different ancestors, those claiming through
nearest ancestor are preferred to those more remote. Provision is
also made for surviving children dying under age unmarried. Claims
against estates must be presented within time fixed by probate court,
of which notice is given by advertisement, and is not less than six
months nor more than two years after letters of administration issue.
Dower and curtesy are abolished.
Deeds. (See Acknowledgments, Married Women) must be signed
in presence of one witness and acknowledged. Grantor’s seal not
required. Deed conveys all interest of the grantor, unless a contrary
intention is expressed. Deeds and. conveyances must correctly state
actual consideration, where it exceeds $100.
Depositions may be taken at any time after service of summons,
and may be used as evidence only when the witness does not reside in
the county of trial or is absent therefrom, or is unable to attend court,
or is dead, or when written testimony is required Instead of it being
oral; may be taken before various officers, but are usually taken before
a notary public. The officer must not be a relative or the attorney of
either party or otherwise Interested in the event of the action, and this
fact should be stated in his certificate attached to the deposition. If
taken out of the State, and the officer has no seal, a certificate under
the great seal of the State, or of a clerk of a court of record under seal
should be appended, stating that the officer was, at the time of taking
the deposition, properly authorized.
Descent and Distribution. (See Decedents.)
Distress for Bent. No authority for it.
Dower. Abolished 1907. (See Decedents.)
Employers Liability Act, in force.. Applies to employers having
five or more employes. Provides for medical and hospital services
and medicines, and schedule of benefits payable weekly. Maximum
for death, $¿,250; for injuries not fatal, $4,500.
Estates. (See Deoedents.)
Executions (see Judgments, Proceedings in Aid of Execution
Mortgages) may issue at any time after judgment, if no stay bond
be filed, and until five years thereafter. Lana sold upon execution or
decree of court may be redeemed by the debtor at any time before
confirmation of such sale. A stay of execution is allowed by giving
bdnd with approved sureties as follows: In district court within
twenty days, on judgments not exceeding $50, three months; $50 to
$100, six months; exceeding $100, nine months. In justice and
county courts, within ten days, as follows: $10 or under, stay of
sixty days; $10 to $50, ninety days; $50 to $100, six months; over
$100, nine months.
Exemptions. A head of a family has exempt from levy and sale
certain personal property and household furniture enumerated In the
statute, and in addition thereto has exempt a homestead not exceeding
in value $2,000, exclusive of the mortgage thereon, consisting of a
dwelling in which the party resides and appurtenances and 160 acres
of land on which same may be situated, or, at the option of the party,
two contiguous lota taxany Incorporated city or village. Such exempt
property shall be free from all judgment liens and from sale on execu­
tion, except that the homestead may be sold on foreclosure of me­
chanics’ liens, and of mortgages executed by both husband and wife.
If party has no homestead as above stated, he shall have exempt the
sum of $500 in personal property In addition to the articles enumerated
by statute. Mechanics, miners, or other persons, whether heads of
families or not, have their tools and instruments exempt, and a pro­
fessional man’s library and implements are likewise exempt. All
pension money, and property purchased and Improved therewith,not
exceeding $2,000 in value, is exempt. Exemption law does not apply
to claims for clerks, laborers or mechanic's wages, nor can an attorney
plead exemption in a suit for money or other valuable consideration
received by him. Only 90 per cent of wages are exempt as against
a debt for necessaries of life.
Foreign Corporations (see Corporations, Allens) may become
domestic by filing with the secretary of state a true copy of charter or
articles of association, together with a certified copy of resolution
adopted by the board of directors accepting the provisions of the
act of the legislature of Nebraska, Chapter 42, Laws of 1889; must
make written report to Secretary of State annually in July in form
prescribed by secretary of state and pay fee same as occupation tax
for domestic corporations; must on or before September 15th, of
each year, file a statement with attorney-general of State, sworn to,
showing capital stock, its market value, how paid, nam'es of officers,
directors and agents, amount paid in dividends and rate of percentage
thereof, all stock held in other corporations and value of such stock,
amount of its own stock held by other corporations and value thereof,
and amount of trust stock held by other corporations. Does not
apply to insurance companies or common carriers. Must appoint
agent and file name with secretary of state and with register or deeds
In county of principal place of business. Service may be had on
such agent or on state auditor. Secretary of state charges fee of
$50.00 for keeping record of agent. Penalty $1,000 fine. Agent
or representative doing business here for corporation that has no
resident agent, subject to $25 fine. Does not apply to insurance
companies and railroads. Any corporation whose products are sold
in Nebraska must have a resident agent oh whom service in'legal
action can be had. Sale by jobbers of goods of foreign corporations
not so represented is prohibited.
Fraud. (See Statute of Frauds, * Limitations, Consignments.)
Conveyances made for the purpose of defrauding creditors are void
and intent Is deemed a question of fact, not of law.
Garnishment. (See Attachment.) Writ may be Issued before
judgment in attachment proceedings. After judgment and after
execution returned unsatisfied, writ will issue by filing affidavit for
same. No bond required after judgment.
Holidays are January 1st, February 12th, February 22d, April 22d.
May 30th, July 4th, first Monday in September, October 12th.

1762

BANKING AND COMMERCIAL L A W S — NEVADA

Thanksgiving, and, December 25th. N o court can be open, nor can
any judicial business be transacted on a holiday or Sunday, except,
first, to give instructions to a jury then deliberating op their verdict;
second, to receive a verdict or discharge a jury; third-,'to act as mag­
istrate in a criminal proceeding; fourth to grant or refuse a temporary
Injunction or, réstráining order. If any such fall on" Sunday, the next
day shall be a Holiday.
Homestead. (See Exemptions.)
Husband and Wife. (See Decedents,1Divorce, Evidenoe, Exemp­
tions, Married Women, Marriage.) 1
Infancy. Males under twenty-one and females under eighteen
are Infants. County court appoints guardians, but If Infant over
fourteen years, may nominate his own. Infants' real estate may be
sold or mortgaged to obtain funds for maintenance by permission of
dlstriet court.
Insolvents. (See Assignments.)
Interest. Legal rate Is 7 per cent and contract raté 1.0 per cent.
Judgments draw same .rate as specified in the instrument on which
judgment obtained, otherwise 7 per cent. A contract is not avoided
by usury, but in action thereon all payments are deducted from the
principad and plaintiff recovers only the balance, without interest ahd
pays all costs.
Judgments. (See Aotlons, Appeals, Exemptions, Executions.
Interest.) Those recovered in district court are liens upon real estate
of debtor from first day of term at which rendered, except those by
oonfession and those rendered at the same term at which action com­
menced are liens only from date of rendition. Judgments of county
and justice courts become liens from date of filing transcript in the
office of the fclerk of the district court. Judgments may be made a
lien upon lands in other counties by.filing transcripts in the office of
the olerk of the district court in such counties. A judgment becomes
dormant in five years and lien upon real estate is lost if execution hot
issued within that time. After dormancy may be revived by certain
proceedings. Dormant judgments cannot be revived unless action to
revive be commenced within ten years. In judgments by confession
cause of action must be stated in the judgment or in a writing filed as a
pleading. Deficiency judgments may be recovered in mortgage fore­
closure cases, if the deficiency be Such that it may be recovered at law.
Jurisdiction. (See Actions, Judgments.)
Justices of the Peace. (See Courts, Judgments, Actions.)
License. (See Insurance Agents.) Commercial travelers are not
required to take out a license. There is a provision in the code
requiring peddlers and commission merchants to take out a license.
Does not apply to persons selling their own works or productions or
books, chart®, maps or Other educational matter, or fresh meats,
fruit, farm products, trees Or plants exclusively.
Liens. (See Judgments.) Material men and laborers and me­
chanics are entitled to liens upon the building or improvements for
material furnished and labor performed, by filing in the office of the
register of deeds an Itemized statement of account duly verified by
affidavit, of party, showing amount due, nature of the contract
description of property, names of the parties; and if the claim arise
out of a written contract, or if a note or other written evidence has
been taken in payment of the account, copies must be attached. An
original contractor must file such statement within four months from
the time of furnishing such material or performing the labor; a sub­
contractor within sixty days. Lien dates back to commencement of
work or labor and is valid for two years from date of filing. All
mechanics’ liens on the same premises are of equal priority and pro­
rate in the proceeds of sale of property, if sold under foreclosure thereof.
Limitations* Actions brought to recover real property or fore­
close mortgages thereon must be commenced within ten years after
cause of action accrues. Actions for forcible entry and detention,
libel, slander, assault and battery, malicious prosecution, false Im­
prisonment,, and those to enforce penalties or forfeitures, must be com­
menced within one year. Actions for trespass to real property, taking,
detaining or injuring perspnal property, upon contracts not in writing
upon a liability created by statute other than a forfeiture or penalty,
for injuries to rights not arising out of contract, for relief on the
ground of fraud, and all other actions not specifically limited by
statute, must'be commenced within four years. Actions upon a
specialty, agreement, contract in writing, promissory notes, etc., and
foreign judgments, must be commenced within five years. Actions
upon official bonds of executors, administrators, guardians, sheriffs,
or other officers, and upon statutory bonds, must be commenced with­
in ten years. If parties under disability, causa of action does not
commence to run until such disabilityremoved. Actions for damages
for causing death must be brought within two years.
Limited Partnership. (See Partnerships.) Articles thereof
must be in writing, acknowledged by the parties and recorded in the
office of the county clerk of every county where partnership shall have
a place of business. The special partner Is not liable beyond the
amount contributed to the partnership funds, but has nothing to do
with the management or conduct of the ousiness; otherwise is liable
as general partner. Special partner’s name shall not appear in the
firm.
Married Women (see Decedents, Evidence, Exemptions, Mar­
riage) may contract, bargain, sell, and convey their separate property
In the same manner as may a married man, and retain ownership
and control of their own property notwithstanding the marriage.
May sue and be sued, carry on trade or business as if Unmarried, and
earnings of any married woman are her sole and separate property.
Mortgages. (See Actions, Acknowledgments, Courts, Dower,
Limitations, Chattel Mortgages.) Mortgagor, regardless of stipulation
contained in mortgage (and in the absence of special agreement, which
must be in a separate writing), retains legal title and right of possession
of property. In case of assignment of mortgage it is safer to record
the assignment. If note secured by mortgage is negotiable assign­
ment need npt be recorded. Release may be by separate Instrument
or upon the mortgage records in register of deed’s office, and if mortga­
gee. after mortgage fully paid, neglects or refuses for seven days to
discharge such mortgage, he is liable to a penalty of $100 and all actual
damages suffered by the other party. Mortgages can only be fore­
closed by suit, and after foreclosure suit commenced no action can be
nfaintamed at law upon the debt, unless authorized by the court and
if action be first commenced at law, cannot foreclose the mortgage
until judgment obtained and execution returned thereon unsatisfied.
After decree of foreclosure of mortgage obtained, defendant may stay
further proceedings for nine months by filing a request for stay in
the office of the clerk of the court within twenty days after such
decree entered. Such stay is equivalent to redemption period allowed
in other States, and owner may redeem at any time before confirma­
tion of sale. Deeds are held to be mortgages when intendéd only as
security, and must be foreclosed same as mortgages. Mortgage must
state actual consideration where it exceeds $100.
Negotiable Instruments. (See Notes.)
Notes ancLBills. All notes, bonds, or bills of exchange, except
bank checks %nd instruments payable on demand, are payable at
timeB fixed therein, without grace; are not negotiable unless drawn
payable to a person, bearer, order, or assigns. If date of maturity fall
on Saturday or Sunday, or a holiday, are payable-on the next business
dav. Party purchasing negotiable paper before maturity, without

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notice, take same free rrom equities between original parties. Uniform
negotiable instrument law is in force.
Partnership (see Limited Partnerships) must adopt and sign
articles of partnership agreement showing firm name, nature and place
of business, name and residence of each member, and file same in the
office of the county clerk of the county where business is located.
Neglect or refusal to comply with this requirement entails Denalty,
but does not affect legality of business transacted. Partnership may
sue and; be sued in the firm name, and it is not necessary to set forth
in the pleading, or prove at the trial, the names of the persons com­
posing the firm, but in such event plaintiff must give security for costs.
Pleadings. (See Actions.)
Power of Attorney to convey real estate must be. executed and
acknowledged same as deeds and may be recorded.
Practice. Regulated by code which is patterned after Ohio.
Probate. (See Courts, Decedents.) County court has exclusive
original jurisdiction of all probate matters.
Promissory Notes. (See Notes.)
Proof of Claims. (See Decedents, Accounts.) Same rules oi
evidence govern as in civil actions.
Protest. (See Notes.)
Replevin. Party may recover possession of personal property
within four years after cause of action accrued by filing petition and
affidavit of himself, agent or attorney, giving a description of the
property, stating the facts connected with the ownership, and that he
is entitled to the immediate possession, etc., of the property. It is
then seized by the officer and duly appraised, and within twenty-four
hours thereafter plaintiff must give bond in double the appraised value,
conditioned that he will duly prosecute the action and pay all costs
and damages that may be awarded against him, and return the proper­
ty or its reasonable value to the defendant in case judgment for a
return be rendered.
Revenue. (See Taxes.)
Sales. (See Conditional Sales.) Merchant cannot sell in bulk
without notice to creditors.
Security for Costs. Non-resident plaintiff must give security for
costs or furnish cash bond.
Statute of Limitations. (See Limitations.)
Stay. (See Executions, Judgments, Mortgages.)
Suits. (See Actions.)^
Summons. (See Actions, Attachments, Divorce, Service.)
Taxes. Taxes on real property are a lien thereon from October 1st
of year of levy. Taxes on personal property are a lien thereon from
November 1st of year of levy. Tax deed may issue after two years
from date of sale certificate. Inheritance tax runs from 1 per cent
upward. For all real estate taxes delinquent one year or more, the
county may sell the property by action in court.
Torrens System. Provision is made for registration of land
-title, under Torrens System, upon application of owner.
Trust Companies are authorized to act as executors, adminis­
trators, receiver, agents, etc.
Trust-Deeds are seldom used and are treated as mortgages.
Wills. (See Decedents.) Every person of full age and sound
mind may dispose of his property by will, which must be signed by
the testator, or under his express direction, by some one in his presence
and subscribed in his presence and in the presence of each other, at
his request, by two or more competent witnesses. Nuncupative wills
are valid when proved by the oath of three witnesses present at the
making thereof, and when the testator at the time asked the persons
to bear witness that such was his will, or words of like effect. No will
shall be effectual to pass title to any property unless probated. Foreign
wills duly proved and allowed in any state or foreign country may be
probated in this State in any county wherein the testator shall have
real or personal property, on which the will shall operate
Witnesses. (See Evidence.)
Workingmen's Compensation. (See Employers Liability.)

SYNOPSIS OF

THE LAWS OF NEVADA
R E L A T IN G T O

BANKING AND COMMERCIAL USAGES

Prepared and Revised by A yres & G ardiner, Attorneys and Coun­
selors at Law, Reno. (See Card in Attorneys’ List.)
Acknowledgments. Every mortgage, deed, or other conveyance,
conveying or affecting real estate, shall be acknowledged or proved
and certified as follows; If within this State it may be a judge or
clerk of a court having a seal, notary public, county recorder, or
justice of the peace. If without this State, and within the United
States, by a judge or clerk of a State, United States, or territory court
having a seal, a commissioner of deeds for this State, or some notary

BANKING AND COMMERCIAL LA W S— NEVADA

public or justice of the peace in his county. A justice’s certificate
which is attached to a deed to be recorded out of his county, must
haye a certificate of a clerk or a court of record 'of his county as to
his signature and official character. If outside of the United States,
the acknowledgment can be had oefore a judge or clerk of a court
having a seal, or a notary public or a minister, commissioner, or counsel
of the United States, the certificate of the officer taking the acknowl­
edgment shall be annexed to or endorsed on the Instrument, and shall
be under hand and seal except m cases of justices of the peace which
shall be under the hand of such justice of the peace and certified as
above stated. The party executing and acknowledging the instru­
ment must be known or proved by oath of witness to be the proper
party, and the certificate must state such fact.
Conveyance by a married woman is acknowledged in the same way
and form as that of a man and has the same effect as if she were
unmarried. The form of acknowledgment by an individual shall be
substantially as follows:
State of Nevada, County of........................ On this...................day
of..................... A. D. .......................... .............. personally appeared
before me, a notary public (or judge or other officer as the case may
be) in and for the County of...............
State of........................,
.......................known (or proved) to me to be the person described in
and who executed the foregoing instrument, who acknowledged to
me that he (or she) executed the same freely and voluntarily and for
the uses and purposes therein mentioned.
In witness whereof I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.
........................ Notary Public in and for the County of...........................
State of........................(or other official name of the officer who takes
the acknowledgment).
Form of acknowledgment of a corporation.
State of Nevada, County of....................... On this....................... day
of..............., A. D................. personally appeared before me a notary
public (or other officer or judge as the case may be) in and for the
County of......................... State of......................... (name of party who
executes and acknowledges instrument) known (or proved) to me to
be the president (vice-president or secretary) of the corporation that
executed the foregoing instrument and upon oath did depose that he
Is the officer of said corporation as above designated, that he is ac­
quainted with the seal of said corporation and that the seal affixed to
saidinstrument is the corporate seal of said corporation; that the signa­
tures to said instrument were made by officers of said corporation
as designated after said signatures; and that the said corporation
executed the said instrument freely and voluntarily and for the uses
and purposes therein mentioned.
In witness whereof I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.
.............. ..............Notary Public in and for the County of..........................
State of. '.....................(or other official name of the officer who takes
the acknowledgment).
Form by attorney-in-fact:
State of Nevada, County of....................... On this................... day
of.................... A. D............... personally appeared before me a Notary
Public (or judge or other officer as the case may be) in and for the
County of.. . . . . . . . . . . State of Nevada (name of person who exe­
cutes and acknowledges instrument) known (or proved) to me to be
the person whose name is subscribed to the within instrument as the
attorney in fact of................... and acknowledged to me that he sub­
scribed the name of said................... thereto as principal, and his own
name as attorney-in-fact, freely and voluntarily and for the uses and
purposes therein mentioned.
In witness whereof I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.
.....................Notary Public in and for the County of......................
State of................... (or other official name of the officer who takes the
acknowledgment). By the laws of the §tate of Nevada, any acknowledgment hereto­
fore or hereafter taken' Or certificate thereof made without this State
either in accordance with the laws of this State or in accordance with
the laws of the State, Territory, or Country where the acknowledg­
ment is taken, shall be sufficient in this State. Nevertheless a Notary
should affix his seal even in those states which do not require it.
The certificate of acknowledgment of conveyance:
A certificate of acknowledgment of any conveyance or other instru­
ment in any way affecting the title to real estate or personal property,
or the proof of execution thereof as provided in the laws of Nevada,
signed by the officer taking the same, and under the seal of such
office, shall entitle such conveyance or instrument with the certificate
or certificates of acknowledgment to be recorded in the office of thé
recorder of any county in this State provided that any State of United
States contract or patent for land may be recorded without any such
acknowledgment or proof.
Actions. (See Suits, Limitations.)
Affidavits. Affidavits taken out of this State but within the
United States to be used before any court or officer in this State must
be taken before a notary public, a commissioner appointed by the
governor of this State, or a judge of a court having a seal attested by
the clerk. If in a foreign country such affidavits shall be taken before
an ambassador, minister, consul, or vice-consul of the United States,
or judge of a court in such foreign country having a seal. The
genuineness of the signature of the judge, the existence of the court
and the fact that such judge is a member thereof shall be certified by
the clerk of the court, under the seal thereof.
Allens. Persons and corporations, except subjects of the Chinese
Empire, have the same rights as resident citizens and domestic cor­
porations,, except that foreign corporations must comply with corpora­
tion laws of this State.
Appeals. Aotlons tried in Justice court may be appealed to dis­
trict courts, where trial is had de novo and can proceed no farther.
Actions in which the district courts have original jurisdiction may be
appealed to the supreme court.
Arbitration. Provision is made by law for the settlement of dis­
putes by arbitration; the award of the arbitrators to be filed with the
elerk of the district court and docketed the same as a judgment in
civil action.
'
Arrest. A fraudulent or absconding debtor, or one who conceals
his property, or removes or disposes of it with intent to defraud his
creditors, may be arrested on affidavit of the fact made; surety in not
less than $500 being given by the plaintiff. (See Attachment.)
Assignments and Insolvency. Except as affected by the
national bankruptcy act of 1898, the statute respecting assignment
is in force: Insolvent debtors may be discharged from their debts
by complying with provisions of insolvent laws. An assignment of
insolvent debtor, not in compliance with insolvent laws, is void as
to creditors.
Attachment. Writ of attachment may be issued with summons,
or at any time afterward on affidavit and bond. In an action upon
a judgment or upon a contract for the direct payment of money, made,
or by the terms thereof payable, in this State, which is not secured
by mortgage, lien, or pledge upon real or personal property, situated
or being in the State; if so secured, when such security'has without
act of plaintiff or person to whom given become valueless or insufficient
in value to secure sum due in which case attachment may issue for

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Federal Reserve Bank of St. Louis

1763

unsecured portion or excess of debt over value of» security. In an
action upon a contract against a defendant not residing in this State,
in an action by a resident of the State for the recovery of the value
0;.?r°Per?7' where such property has been converted by a defendant
without the consent of the owner. Where the defendant has ab­
sconded, or is about to abscond, with intent to defraud his creditors,
where the defendant conceals himself so that service of summons can
not be made upon him. Where a defendant is about to remove his
Property-, or any part thereof, beyond the jurisdiction of the court
with the mtent to defraud his creditors. Where a defendant is about
jo convert his property, or any part thereof, into money with intent
to place it beyond the reach of his creditors. Where a defendant
na,s assigned, removed, disposed of, or is about to dispose of his prop­
erty, or any part thereof, with the intent to defraud his creditors.
Where a defendant has fraudulently or criminally contracted a debt
or incurred the obligation for which suit has been commenced. Gar­
nishee process may be had in aid of attachment. The clerk of the
c2S!i SS lssue the writ of attachment upon receiving and filing an
affidavit by or on behalf of the plaintiff, showing the nature of the
plaintiff s claim, that same is just,' the amount which the affiant
believes the plaintiff is entitled to recover, and the existence of any
one or the grounds for an attachment above enumerated, with an
undertaking not less than $500, and an amount equal to one-fourth
or demand, but not exceeding $5,000. In Justice’s Courts (See
Courts) bond must be in amount sued for but not under $50.
Banks. State—are regulated and controlled by a comprehensive
general banking law. Amended (1915) to permit State banks to join
Federal Reserve Bank System.
Conveyances. The husband has the entlre’management and control
or the communityproperty, with the like absolute powerof disposition
thereof, except as hereinafter provided, as of his own separate estate;
provided, that no deed of conveyance, or mortgage, of a homestead as
now defined by law, regardless of whether a declaration thereof has
been filed or not, shall be valid for any purpose whatever, unless both
husband and wife execute and acknowledge the same as now pro­
vided by law for the conveyance of real estate.
Corporations. The laws of this State are substantially the same
as those of New Jersey. Foreign corporations to transact business
and institute actions in this State must file certified copy of articles
of incorporation with the secretary of state and county clerk; also
designation or resident agent. There is no license tax. Stockholders
and directors meetings of Nevada Corporations may be held in or
out of State. There is no “ Blue Sky” law. The laws of this State
are generally regarded as most desirable in every way for the formation
of corporations to do business in other states.
Curtesy is not recognized in this State.
Courts. Jurisdiction. District courts have original, statutory,
and common law Jurisdiction in all cases at law and in equity, also in
law, when the title or possession of land or mining claims may be
involved, or legality of any tax, etc., also In actions to foreclose
mechanics lien; and in all cases In which the demand, exclusive of
Interest, or the value of the property in controversy exceeds $300,
and in probate In all cases relating to estates of deceased persons, and
persons and estates of minors, insane persons. Justice’s Jurisdiction.
$o00( exclusive of interest» and attorney’s fees.
Deeds. A deed of quit-claim passes all the title that the grantor
has m the date of the conveyance. A deed of grant, bargain and sale
carries with it the statutory covenant that at the time that the
grantor executed the deed, he had not conveyed it to any other
person and had placed no encumbrance upon it. This form of
deed conveys any title that the grantor shall afterwards acquire.
A warranty deed contains a covenant: “ The grantor herein will
forever warrant and defend the title to the premises herein des­
cribed against any and all persons whomsoever claiming the same ”
The law governing and form of acknowledgments is titled under
"Acknowledgments.”
Depositions. Depositions may be taken within this State before
any judge, clerk. Justice of the peace or a notary public, upon notice
to the opposite party of the time and place of taking. Depositions
may be taken out of the State upon commission under the seal of the
court upon proper application, or by stipulation of the attorneys.
Divorce, divorce from the bonds of matrimony may be obtained
by complaint under oath to the District Court, of the county in
which the cause therefor shall have accrued, or in which the defendant
shall reside or be found, or in which the plaintiff shall reside, if the
latter be either the county in which the parties last cohabited, or in
which the plaintiff shall have resided six months before suit be brought,
for the following causes:
First: Impotency at the time of marriage continuing to the time
of the divorce.
Second: Adultery, since the marriage, remaining unforgiven.
Third: Wilful desertion, at any time, of either party by the other
for the period of one year.
Fourth: Conviction of felony or infamous crime.
Fifth: Habitual gross drunkenness, contracted since marriage
either party, which shall incapacitate such party from contributing
his or her share to the support of the family.
Sixth: Extreme cruelty in either party.
Seventh: Neglect of the husband, for the period of one year, to
provide the common necessaries of life, when such neglect is not the
result of poverty on the part of the husband which he could not
avoid by ordinary industry.,
Residence is defined as follows;
"The legal residence of a person with reference to his or her right
of suffrage, eligibility to office, right of naturalization, right to main­
tain or defend any suit at law or In equity, or any other right dependent
on residence, is that place where he or she shall have been actually,
physically and corporally present within the state or county, as the
case may be, during all of the period for which residence Is claimed
by him or her; provided, however, should any person absent himself
from the jurisdiction of his residence with the intention in good faith
to return without delay and continue his residence, the time of such
absence shall not be considered in determining the fact of such
residence."
Dower is not recognized In this State.
Executions. Stay of Execution; Judgments. The laws of Nevada
on these points are similar to those of California [see ante], except
that when redemption is made of real estate, one per cent per month
must be paid in addition to purchase money. When property is
redeemed from a previous redemption, which may be done within
sixty days, his purchase price plus two per cent thereon is required.
Exemption. Homestead, $5,000; the earnings of the debtor, if
earned thirty days proceeding, if it is made to appear necessary for
the support of the debtor, exempt where debt is for necessaries, or his
family; personal and mining property, tools, implements, etc.,
exempt same as in California [which seej.
Garnishm ent.

(See Attachment.)

Holidays. Sunday, New Year’s Day, Lincoln's Birthday. Wash­
ington’s Birthday, Memorial Day, Fourth of July, Labor Day, Octo­
ber 12th (Columbus Day) and 31st (Nevada admission day). Thanks­
giving, December 25th. and all days oi which a primary or a general

BANKING AND COMMERCIAL L A W S — N E W HAMPSHIRE

1764

election is held, are non-judiclal days and are termed legal holidays
and generally observed as such. Also Arbor day fixed by proclama­
tion of governor one month before fixing such date, and is only a
holiday for public schools. Bills of exchange, checks, promissory
notes, and other negotiable instruments falling due upon any holiday
are payable the day previous.
Husband and Wife. (See Married Women.)
Interest. The legal rate is 7 per cent per annum, but parties may
contract in writing for the payment of any other rate not in excess of
12 per cent per annum. After a judgment on such a contract, only
the original claim shall draw interest, and the rate of interest must
be mentioned in the judgment. Unadjusted accounts do not bear
interest.
lim itations of Suits. Open or store account and contract not
in writing, four years; upon contract or instrument of writing, six
years; actions concerning real property, except mining claims, five
years; mining claims two years. Judgment, or decree of the district
court—six years; of the justices court—five years. Revivor: Ac­
knowledgment or new promise in writing or payment on account.
Judgments become a lien upon real property for two years.
Married Women. All property of the wife, owned by her before
marriage, and that acquired afterward by gift, bequest, devise or
descent, her separate property. In Nevada, under the statute of
1873, the wife has absolute power over her separate property, and
may dispose of the same without the consent of her husband. All
other property acquired during coverture by husband or wife, eommon
property, but controlled by husband. Upon a dissolution of the com­
munity by the death of the husband, the homestead set apart by the
husband and wife, or either of them, goes to the wife and minor
ohildren, and if there are no minor children, to the widow. The hus­
band may dispose of one-half of the common property by will, exclu­
sive of the homestead. The other half of the community property
goes to the wife, subject to administration and debts of the husband.
Separate property of wife should be inventoried and recorded. Fail­
ure so to do raises prima facie presumption property is not her separate
estate.
Mortgages must be recorded. No mortgage of personal property
is valid unless possession is delivered to and retained by the mort­
gagee, or unless the mortage be accompanied by the statutory aiddavit of the mortgagor and mortgagee or some person on their behalf
and is recorded in the county where the mortgagor and mortgagee
Notes and Bills of Exchange. The uniform negotiable Instru­
ment law has been adopted In this State.
Probate. All claims against estates of deceased persons must be
filed within three months after the first publication of the notice of
appointment of the executor or administrator. Estates not exceeding
$2,000 in value, in the discretion of the judge, may be summarily
administered, and in cases of summary administration all regular pro­
ceedings and notices are dispensed with, exoept the notice of the
appointment of the executor or administrator. Creditors of such an
estate must file their claims within forty days.
All estates of husband or father of $500 or less are distributed to
widow or ohildren under age without probate, not subject to any debts.
Sales. The uniform sales act is in force in Nevada. There is
also a "bulk sales” act.
•
Suits. Practloe is under a code, and there is but one form of action,
known as a civil action, and commenced by filing complaint with the
dork of the court and tbe Issuance of a summons. Service on non­
residents may be had by publication. Personal service of a copy of
summons ana complaint is equivalent to the publication of the sum­
mons.
Taxes are a lien upon the property assessed and the real estate of
the owner thereof from tbe first Monday in March in each year.
Suits for delinquent taxes may be commenced by direction of the
oounty commissioners, and there is redemption of real estate sold at
tax sale in the same manner as realty sold under ordinary execution.
Wills. ' Wills executed out of Nevada are good here if good where
made.

SYNOPSIS OF

THE LAW S OF N E W HAMPSHIRE
R E L A T IN G T O

BANKING AND COMMERCIAL USAGES

Revised by J ohn R. S p h i n g , Attorney at Law, Nashua.
(See Card in Attorneys’ List.)
Acknowledgments of deeds or other conveyances of real estate
must be made before a justice, notary publio or commissioner, or in
foreign countries before a minister or consul of the United States. The
signature of the grantor must be attested by one witness.
Actions. The common law prevails as to procedure. Non-resi­
dents can institute suit, a resident becoming responsible for costs by
indorsing the writ, or giving bond. Transitory action may be brought
ip the county where one of the' parties resides. If both are non­
residents the action may be brought in any county.

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Federal Reserve Bank of St. Louis

Admlnistatlon of Estates. Administration shall be granted In
the following order of precedence; To the executor named; to the
widow, or any of the next of kin, or to such person as they shall
nominate; to one of the devisees or to a creditor; to such other person
as the judge shall think fit. A nop-resldent shall not be appointed
unless urgent necessity demands. An ample bond with resident
sureties shall be filed. No suit shall be brought against the admin­
istrator within the first year of his administration. Claims shall be
presented within one year after his appointment, and no action, oan
be brought after two years. Actions are not maintainable against
an administrator of an estate, after a decree ol Insolvency. Estates
may be administered in the insolvent course, and then a commissioner
shall be appointed to examine and allow claims. Preferred claims,
to be settled in full are: Expenses of administration, widow’s allow­
ance, charges of burial, and taxes. Claims for the last sickness shall
be paid in full if there remains anything after paying the preferred
claims. (See Arbitration.)
Affidavits. Affidavits are not admissible in evidence, being ex
but motions are beard upon affidavits presented to the court.
Sarte,
lay be made before an officer authorized to administer oaths. (See
Attachments.)
Allens. They are not entitled to vote. An alien may purchase,
hold and convey real estate, and It will descend in the same manner
as if he were a native bora citizen. When the wife of an alien has
resided in the State six months, separate from her husband, she
acquires all the rights of the wife of a native bora citizen.
Arrest. No female can be arrested in any action founded upon a
contract or upon a conditional sale of clothing; nor can a voter on
election day, or a defendant in a real action. The sheriff is exempt
from arrest. (See Attachments.)
Assignments and Insolvency. Assignments for benefit of credi­
tors to be filed in the probate court of the county in which debtor
resides. The provisions of the law upon this subject are suspended
by the United States bankrupt law.
Attachments of all real and personal property may be made on
the original writ, and constitute a valid lien on the property for thirty
days after judgment, within which period tbe execution must be levied
to preserve and perfect the lien. All attachments take precedono«
In order of priority, except In case of liens of builders, contractors,
etc., when they take precedence in the order or priority of the lien.
Trustee process (analogous to garnishment in other states) may be
used to reach money or credits of the defendant in the hands ol
another. Save as against claims for necessaries the wages of the
defendant up to $20 are exempt from such process. In actions on
contracts where debt exceeds $13.33, defendant may be arrested on
affidavit of plaintiff that he (defendant) has concealed his property
or is about to leave the State to avoid payment of his debts. (See
Garnishment.)
Bank. Banks can be chartered only by a special act of thè legis­
lature. Building and loan associations may be organized as volun­
tary associations. Once every year a thorough examination shall be
made into the condition and management of every bank, building
and loan association, and trust company in the State by one of the
three bank commissioners. The commissioners shall on or before
the 1st day of October, annually, file their report with the secretary
of state. They shall give in their report a detailed statement of au
the items of expense of each institution, with the names of the treas­
urer and clerks, the salary of each, with the kind and amount of stocks
and bonds held by each, with the par value thereof, and the cost and
the market value at the date of examination. The cashiers of every
state bank, and every association or partnership formed for the pur­
pose of transacting such business as is usually transacted by banks,
shall, on the first Monday of March, June, September, and December
in each year, make a statement of its condition on said day, specify­
ing in separate columns the capital stock actually paid in; debts due
the bank secured by pledge of its stock; value of real estate belong­
ing to the bank; amount of debts due from directors; amount of specie
in the vaults; amount of bills of other banks on hand; amount of
deposits in the bank; amount on deposit in other banks for the
redemption of its bills; and the amount of bills of the bank then la
circulation; which statement shall be signed and sworn to by the
cashier, and returned to the secretary of state. The trustees of sav­
ings banks shall make a thorough examinatio