Full text of Rand McNally Bankers Directory : July 1921 : Digest of Banking and Commercial Laws

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)  DIGEST OF BANKING AND COMMERCIAL LAWS Compiled Expressly for  THIS EDITION OF itre.  RAND-MCNALLY BANKERS DIRECTORY. AND  BANKERS' REGISTER BLUE BOOK BY  Those Prominent Lawyers Whose Names Appear at the Head of the Laws of Each State  2.  The Following States Have Put in Operation  THE NEGOTIABLE INSTRUMENTS LAW State  State  In Effect  Alabama ............................ Jan. Arizona ............................. Sep. Arkansas ........................... Apr. California. . . . . . . . . . . . . . . . . . . . . . . . . . . Colorado ............................ July Connecticut ......................... Apr. Delaware ........................... Jan. Dist. of Columbia .................... Jan. .............. Aug. Florida Hawaii::::::::::::::: .............. Apr. .......... Mar. Idaho ~ llinoi~: : : : : : : : : : : : : : : : : : : .......... July tdiana ............................. Apr. . ........... July owa. Kansa~· · · · · · · · · · · · · · ·:: ............ June Kentuck~·.·.::::::::::: .............. June Louisiana ........................... Aug. Maryland ........................... June Massachusetts ....................... Jan. Michigan ........................... Sep. Minnesota .......................... Apr. M~ssissippi .......................... July Missouri ............................ June iytontana ........................... Mar.  In Effect  Nebraska .................... , ...... Aug. Nevada ............................. May New Hampshire ..................... Jan. New Jersey ......................... July New Mexico .................~..... Mar. New York .......................... Oct. North Carolina ...................... Mar. North Dakota ....................... July Ohio ............................... Jan. Oklahoma ........................... July Oregon ............................. May Pennsylvania ........................ Sep. Philippines .......................... May Rhode Island ........................ July Sou th Carolina ...................... Mar. South Dakota ....................... July Tennessee ........................... May Utah ............................... July Vermont ............................ Feb. Virginia ............................ July Washington ......................... June W. Virginia ......................... Jan. Wisconsin ........................... May Wyoming ........................... Feb.  I, 1908  1, 190 l 22, 1913 1917 19, 1897 5, 1897 1, 1912 12, 1899 3, 1897 20, 1907 10, 1903 l, 1907 30, 1913 4, 1902 8, 1905 13, 1904 1, 1904 1, 1898 1, 1899 16, 1905 24, 1913 7, 1916 16, 1905 7, 1903  I. 1905 1, l, 4, 21, 1, 8, 1, l, 20, 19, 2, 31, 1, 25, 1, 16, 1, 13, 1, 7, 1, 15, 15,  1907 1910 1902 1907 1897 1899 1899 1903 1909 1899 190 l 1911 1899 1914 1913 1899 1899 1913 1898 1899 1908 1899 1905  For Tabulated Information concerning Interest Rates, Days of Grace and Statutes of Limitation see Page 7  J 845  117   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Dates of Regular Meetings of Legislatures  •  Alabama _______________ January, 1915. and every four years. Alaska _________________ A Territory. Arizona ________________ January ________________ Every odd year. Arkansas _______________ January ________________ Every odd year. California ______________ January ________________ Every odd year. Colorado _______________ January ________________ Every odd year. Connecticut ____________ January ________________ Every odd year. Delaware _______________ January ________________ Every odd year. District of Columbia _____ Under U.S. Government. Florida _________ _! _ _ _ _ _ _ _ April ___________________ Every odd year. Georgia ________________ June ___________________ Every year. Hawaii _________________ February _______________ Every odd year. Idaho __________________ January _________________ Every odd year. Illinois _________________ January ________________ Every odd year. Indiana ________________ January ________________ Every odd year. lowa ___________________ January ________________ Every odd year. Kansas _________________ January ________________ Every odd year. Kentucky _______________ January _________________ Every even year. Louisiana ______________ May ____________________ Every even year. Maine __________________ January ________________ Every odd year. Maryland ______________ January ________________ Every even year. Massachusetts __________ January ________________ Every year. Michigan _______________ January ________________ Every odd year. Minnesota ______________ January ________________ Every odd year. Mississippi- _____________ January ________________ Every even year. MissourL _______________ January ________________ Every odd year. Montana _______________ January ________________ Every odd year. Nebraska _______________ January ________________ Every odd year. Nevada ________________ January ________________ Every odd year. New Hampshire _________ January ________________ Every odd year. New Jersey _____________ January ________________ Every year. New Mexico ____________ January ________________ Every odd year. New York ______________ January ________________ Every year. North Carolina __________ January ________________ Every odd year. North Dakota ___________ January ________________ Every odd year. Ohio ___________________ January ________________ Every odd year. Oklahoma ______________ January ________________ Every odd year. Oregon _________________ January ________________ Every odd year. Pennsylvania ___________ January ________________ Every odd year. Rhode Island ___________ January ________________ Every year. South Carolina ____ ______ January ________________ Every year. South Dakota ___________ January ________________ Every odd year. Tennessee ______________ January _____________ ___ Every odd year. Texas __________________ January ____________ _: ___ Every odd year. Utah ___________________ January _______________ __Every odd year. Vermont _______________ January ________________ Every odd year. Virginia ________________ January ________________ Every even year. Washington ____________ January ________________ Every odd year. West Virginia __________ January ________________ Eyery odd year. Wisconsin _____________ January ________________ Every odd year. Wyoming ______________ January ________________ Every odd year. 1846  DIGEST OF BANKING AND COMMERCIAL LAWS COMPILED EXPRESSLY FOR EACH EDITION OF THE RAND-McNALLY 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 Tabulated Information, for quick reference in regard to Interest Rates, Days of Grace, and Statutes of Limitations, see page 7. Aliens. "Foreigners who are, or may hereafter become, bona fide residents of this State, shall enjoy the same rights in respect to the possession, enjoyment, and inheritance of property as native-born citizens. "-Sec. 34, CoDSt. Alterations. When a negotiable instrument is materially altered without the assent of all the parties liable thereon, it is voided except as against a party who has himself made, authorized, or  SYNOPSIS OF  f:f;1~~~;i h~\!~t~r;~f~ri!fl~ !1t~~:~u::J i~~~or~:"fian:su~f':_h:i1d~r;  in due cour e, not a party to the alteration, he may enforce payment  THE LAWS OF ALABAMA  thereof according to its original tenor. :Material alterations consist of any changes in date; sum payable, interest on principal; time or place of payment; number and relation of parties; medium or currency in which payment is to be made. Arbitration. Courts are compelled by statute to make an order  RELATING TO  :i ~~~;g~ 0  BANKING AND COMMERCIAL USAGES. Prepared and Revised by RITTER ~ WYNN, A,tto.rneys at Law, Birmingham. (See Card 10 Attorneys List.) Acknowledgments or proof of real estate mstr:ull!ents _may be ta.ken before one of the following officers: 1st. \V1thm this State. judges of the supreme and circuit co1:1rts and the clerks of such courts, ~ha.ncellors, registers in chancery, Judges of the c~urts of proba~e. Justices of the peace, and notaries publ~c. The offiCI!)-1 should ~crt1fy that the person signing the conveyance 1s known to him and acknowledges that "being informed of the contents of the conveyance h,~ executed the same voluntarily on the day the same bears ~ate. 2 d. Outside of State-Judges and clerks of ll.nY fe~eral C0'l}.ft, Judges a:qd ~lerks of any court of record in any sta~e. notaries public, or coi:nnuss1oners appointed by the governor of this State; beyond the limits of ,the United States, by the judges of any court of record, mayor .or chie~ magistrate of any city, town or borough, or ~ounty, notaries 'PUl?hc. or by any diplomatic, consular, or comm~rc1al agen~ of the United States. Foreign officers must attach official seal which fact must be recited in body of certificate. For forms of deeds see "Conveyances.•• Actions. All ordinary suits at law are co=ence~ by su~ng out a. summons which must be accompanied by a co_mplamt _statmg ~he cause of action. Non-resident plaintiffs are. reqmred to g1v_e security for costs. ·when two or more persons are J0IDtly bound_b! Judgment, bond, or agreement, the obligation is several as well as Jomt. Actions on Account. Suits upon open accounts may b~ accompanied by itemized verified statement of the account, which when tiled with the summons and complaint may l:!e adJl'.!issible in evidence to Prove the account unless its correctness 1s demed under oath by defendant within the time allowed for pleading. Such statements lllUst be sworn to by a person having knowledg_e . of the correctne:55 of the account and must show that the amount 1s due and unpaid a_fter allowing all offsets and counter claims a_nd when sworn to <:mt~1dc State, must bear official seal of officer, which fact must be recited m the jurat. Acceptance. Unconditional promise in writing to '.1-ccept a ]?ill before or after drawn is good in favor of all who take 1t 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 ' payab e 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 ~used by delay· does not operate to assign any part of drawer's funds in bank, and bank is not liable unless it accepts or cer~lfle . If holder has check certified the drawer and endorsers are discharged. The lllaking, uttering, drawing, or delivery of a check, ~aft, or order upon which payment is refused upon d)le p~esentatioJ? because of lack of funds shall be deemed prima far.1e evidence of mtent to de. . fraud and party may be convicted of a misdemeanor. The present negotiable instrument law of Alabama, _cims1strng of 196 sections went into force Ausugt 9, 1907. It prov1s1ons do_ not apply to in truments made prior thereto. The act . so materia!lY 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 pro~at~ courts of decedents' residence. All claims must be presented w1thm twelve months after the same have accrued or within twelve months after the grant of letters testamentary or of administration, or eh,e harred.. In~ants and P~rsons of U11Sound mind have one year to present thl'.1r clauns after disabilities are removed. Administration of in!e tat,~ 1s granted, ls.t: To the husband or widow; 2d: The next of kin ~nt1tled to _share m the distt•ibution of the estate; 3d: 'l'be largest creditor of the 1ptestate residing within this State; 4th: Such other per~on a.<i the J~1dge_ of Pro1:>ate may appoint. There can be no apporntment until after expu·ation of fifteen davs from date of death. Preference mus_t be exercised within forty days or rights relinquished. If several entitled to admini ter men are preferred to women and whole blood ~o ha~f blood. Non-re ident executors and administrator ' may sue rn_ t?IS tate by recording in probate judge'• office copy of lett_ers and g1vmg bond to faithfully administer propet'ty. A non-re 1dent may be appointed administrator or executor of a deceased resident's estate. Atlldavits may be taken within the State befor~ every _judge or clerk of any court justices of the peace, and not,aries pubhc 01· any Other person invested by law with judicial functions. Out. ide 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, n~tarles public and commissioners appointed by th~ governor. Fore1g~ officer taking affidavit must attach seal which fact must be recited in the jurat.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  !~i  Po~:~~swr~ bhJt i~~rg~t~~e it1:sc~~~eaf~~t~;~~~b?o~ out consent of :parties, or good cause being shown therefor. The award of the arbitrators may be entered up and enforced as the judgment of the proper court whether made in a. pending suit or not. Arrest. There can be no arrest on civil process, except for contempt and in cases of alleged lunacy. A signments and In olvency. Every general assignment :w.ade by a debtor, or conveyance by a debtor of sub tantially all of his property in payment of a prior debt, by which a perference or priority of payment is given to one or more creditors. shall enure to the benefit of all the creditors equally, but this section shall not apply to mortgages, pledges, or pawns given to secure a debt contract,ed contemporaneously with the execution of the mortgage. All assignments by a debtor made with intent to hinder, delay, or defraud creditors are void. All deeds of assignment for the benefit of creditors shall, as soon as executed, be filed and recorded in the oflice of the judge of probate of the county in which the property is situated. Every judgment confessed, attachment procured by the debtor, or other disposition 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 proce:;., cannot be served upon him, or is about to remove out of the State, or nas or is about to fraudulently dispose of his property, or fraudulently withholds money, chattels, or effects which are liable to the satisfaction of bis debts; plaintiff must give bond in double the amount claimed. Attachments will issue for the following demands: 1. To enforce the coUectlon 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 contract when the damages are not certain 01• liquidated. 4. When the action sounds in damages merely in falling cases. viz.: 1. Where defendant is a non-resident. 2. When the defendant ha'> absconded. 3. When defendant has secreted himself. 4. When defendant is about to remove from the State. 5. "\,Vhen defendant is about to remove his property from State. 6. When defendant is about to or has fraudulently disposed of his property or fraudulently withholds same. One non-resident may sue out an attachment against another non-re ident by making oath that the defendant has not sufficient property within the State of bis residence wherefrom to satisfy the debt. Attaclunents may be sued out in aid of a pending suit when any of the above grounds exist by making affidavit and executing bond. Garnishment process will issue in aid of attachment in all such cases. Garnishment may be dissolved by givinp: 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 without giving bond, but if defendant appears and pleads, bond must be given or the attachment dismissed. Bank·. The national bank system is in force in this State uncontrolled in any \\-ay by State laws, except that the shares are subject to taxation a other personal property, but the bank is required to pay the tax. Thel'e is no provision of law for tbe establishment of banks of issue in this Sta1e. Banks of discount and deposit may be established under the general incorporation laws. Open depositors and savings depositors on equal footing in case of insolvency. Any banker who discounts a bill or note at a greater rate than 8 pel' cent cannot enforce the collection of same except a to the principal, and if any interest has been paid it must be deducted from the principal. Collateral'>. Receipt must be given for if demanded. Pledges or collateral· not transferable without transfer of the debt; after two days' notic'e in writing collaterals may be sold, by adverLising for 11ve days, at public outcry. Conditional Sales are good between the parties, but void where personal property delivered to vendee as against purchasers for a valuable consideration, mol't.gages and judgments creditor, without notice, wiless iu writing and recorded in the office of the probate judge. Conditional contracts of sales must be recorded in office of the Judge of l'l'obate of the county in which the property is located, to be valid again ·t subsequent purcha. er:,, judgment creditors, or mortgagees without notice, except in c-ount ies having a population of more than '0,000 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 bis agent duly authorized in writing, and att-ested by one witness, or if the grantor cannot write, by two witnes.<ies who are able to write and who sign their names as witnesses. If the grantor is not able to sign his name it must be written for him, and the words "his mark" writte1:1 over or against it. The person writing his name must sign as a w1tne s. A parol lease for less than one year is valid, A married  1847   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  BANKING AND COMMERCIAL LAWS-ALABAMA  1848  woman over eighteen years of a~e 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'. separate estate. Conveyances. to operate as notice. must be acknowledged and recorded. General acknowledgment must be signed to make instrument self-proving. Married women must acknowledge twice in the event the homestead is conveyed. Form of general acknowledgment is as follows: The State of Alabama, ............ County. I, ........................................ , a (style of officer), hereby certify that .......................... whose name is signed to the foregoing conveyance and who is known to me, acknowledged before me on this day. that, being informed of the contents of the conveyance, he executed the same voluntarily on the day the same bears date. Given under my hand and seal, this .......... day of .......... A.D. (Seal) .................... "l'io'ta.i-;;i>ubiic". No time is required within which conveyances shall be recorded. They operate as notices from date of delivery to probate judge for record. (See Acknowledgments.) They may be used as evidence without further proof of execution. Leasehold estates may be created to last not exceeding twenty years, but if longer void as to excess. A married woman must make the following acknowledgment to a conveyance of a homestead: State of ..........• County of ......... . I, ............ judge of ........ (or other officer) do hereby certify ~hat, on the .......... day of .•.......... , 19 .... , came before me the within named .................... , known to me (or made known to me) to be the wife of the within named ................ , who, being examined separate and apart from her husband touching her signature to the within .......... , acknowledged that she signed the same of her own free wrn and accord, and without fear, constraint, or threats on the part of her husband. In witness whereof, I hereto set, my hand and official seal this ............ day of ............ 19 ... .  · · · · · · · · · · · · ·comcia1· cha.racier.>· ···  Corporation to make following acknowledgment:  name as:::::::::::::::~~~~  wlio·se· ·oi the· saici corporation: ·is ·signed to the foregoing conveyance, and who is known to me, acknowledged before me on this day that. being Informed of the contents of the conveyance, he. as such officer, and with full authority, executed the same voluntarily for and as the act of said corporation. Oorporations. Every company, corporation, or association, not organized under the Jaws of Alabama, engaged in any other business than insurance, shall, before engaging in any business in this State, file in the office of the secretary of state, at the capitol in Montgomery, an instrument in writing under the seal of such company, corporation. or association, and signed officially by the president and secretary thereof, designating at least one known place of busine in this State, and an authorized agent residing thereat. If such corporation is engaged in any business of insurance, the statement must be tiled in the office of the insurance commissioner. If the agent is chan~ed, a new paper must be flied. Held not to apply to corporations ·elllng goods by travelling agent or sample. Foreign corporations transacting business in this State without complying with above provisions for each offense forfeit to the State 1.000, and any person acting as agent for foreign corporation that has not so complied, forfeits for each offense $500. All foreil:{n corporations doing business ln this State are required to pa. license fees ranging from $2_5 upwar~. according to capital. Foreign corporations can do no busmess until fees are paid and all contracts before then are void. Every foreign corporation required to procure from secretary of state a permit to do business in the State. This permit costs $10 per annum. Courts. Terms and jurisdiction. The supreme court. except to issue writs of injunction, habeas corpus, quo warranto, and other remedial and original writs necessary to its supervision of inferior courts, and impeachments of judicial officers, has only appellate jurisdiction and cases are tried on the record sent up. Court of appeals has final appellate jurisdiction in the following cases: 1. When the amount involved exclw;ive of interest and costs does not exceed the sum of Sl,000. 2. Of all misdemeanors, including the violation of town and city ordinances, bastardy, habeas corpus, and all felonies, where the puni hment 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 cotmty. Chancery courts have full equity powers. Justices of the peace have jurisdiction of all civil causes where the amount in controversy does not exceed $100 in value, except in cases of libel, slander. assault and battery, and ejectment. Names of all parUes, plaintiff and individual names of co-partners, must be set out in writs. Partnership may be sued in courts or law, in firm name, without setting forth names of co-partners but judgment in such suits bind only partnership's property, not that of individual partners. Tbe writ may be served upon any one of the partners; tbe 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 co=enced or within such time thereafter as the court may direct. Money may be deposited with the clerk instead of sureties. Days ot Grace are abollshed. (See Negotiable Instruments.) Depositions. In cases at le.w, deposltJon!! may be tak~n or witnes.<ses who cannot be present at the trial m the followmg cases: When the witness Is a female; when the witness is too sick to attend cow·t; when the witness re ·ides more than 100 .miles from the place of trial or is ab ent from the 'tate; when tbe witness 1s atx?ut to leave the State and not return in time for the trial; when the witness Is the sole witness of the facts; when tbe witness is one of the officers designated in Code o. 40:30. Ailldavit must be made or one of the ~bove facts and of Lhe materiality of the witness. l\.lay be taken on mterrogatories by a commissioner appointed by the court for that purpo e. The commi<;Sioner may he any suitable person, need not be an officer. In equity suits, whNe witnesses live within 1_00 1;lliles or the place _of trial, depositions may be taken by _or~! exammat1on before the regISter, or a special examiner, or commissioner appointed for the purpose. Descent and Dhitributlon. The real estate of persons dying lntestate in this State, descends. subject to the payment of debts and the wido~·s dower as follows: First to the children of the inte tate or the,r descendant, per stirpos in equal parts. Next. to the parents, if they survive. in equal parts. If only one parent sur_vlve., then one-balf to such parent and one-half to the brothers and sisters of the deC'Elased or their descendants, and if there be no brothers and si_st~rs and their descendants, tben the whole estate shall go to the surviving pa.rent. If there are no children or their descenda}?ts, and no fath~r or mother. then to the brothers and sisters of the mtestate. or their descendants in equal pa.trs. lf there are none of the abo, e to take. then the whole to the husband or wife of the intestate. and if there be no husband or wife or none of the foregoing living. then to the next ot'kin in equal degree in equal parts. If there are no next of kin  it escheats to the State. The personal estate is distributed the same as the real estate, except that if there are no children the widow Is e.ntitled to alJ of the personal estate. If but one child she takes onehalf. If not more than four children to a child·s part and if more than four to one-fil'th. Posthumous children take as others. lJlegitimate children inherit from their mother. The husband upon the death of the wife is entitled to half of ber personal estate absolutely, and to the use of all of her real estate for life, unless he ha,;; been divested of all control over her estate by a degree of the chancery court. Damages recovered by personal representative for death of deceased are distributed according to statute of distribution and are exempt from payment of debts. Dower. Unless the wife has relinquished her right of dower in the manner provided by statute she i-s, 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 death 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 amounts as with her estate will make the full value of the dower. 1  wi:f~:\~~i~:,~ndi~flb.~~ l~~~fet1t1etg~ a ;:;fegneq~t~. ril~1i~a~ the purchase money, or in which he has vesteci interest. in possession. reversion, or remainder, whether he has the entire estate, or is entitled to it in common with others. 2d: On personal property of the defendant (except things in action), whether he has t,be absolute title thereto, 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 right of the defendant, and subject to all his disabilities. Writ of fleri facias is a lien only within the county in which it ls received by the officer, on lands and personalty of defendant subject to levy and sale. from the time only that the writ is received by sucl1 officer and continues as 0 ~~~fr:-"t~~. is r~i!~~%e<!iel\~-;~e1u~ g~:nsth~!~!itie1Jhg;\~e('~:~~eoftt:! court may be flied in the office of the judge of probate, which makes the judgment a lien within the county in which it is flied for ten years thereafter. Execution may be i ued on such judgment at any time.  g;i~:1:vi~  di:~~;  :::et~i:J~huige~yai~J~;?!/rf~~~n~~~~: t~n must be obtained from the circuit court for the sale of lands levied on under execution from a justice's court. No stay of execution in circuit court except by appeal, and supersedeas bond which delays collection until afilrmance by supreme court, and entails 10 per cent damages, with legal interest and costs. In justice's cow·t stay is granted on good security, below $20, thirty days over S20, sixty days. Exemptions. Homestead not exceeding 160 acres or $2,000 in value. Personal property to the amount of Sl ,000. Exemptions of personal property may be waived by instrument in writing except as to certain household furniture and provisions and wages to amoWl.t of $25,00 per month. Fraud. Obtaining money or goods on credit under false color or pretense of carrying on business, or under fal e representation of pecuniary condition, with intent to defraud, or bringing into the State money or goods so obtained, punished as larceny. Statute or Frauds. In the following cases, every agreement, or note or memo thereof, expressing the consideration, is in writing and signed by the party to be charged: 1st. Every agreement which bY its terms is not to be performed within one year from the making thereof. 2d. Every special promise by an executor or administrator to answer damages out of his own e tate. 3d. Every special promise to answer for the debt, default, or miscarriage of another. 4th. EverYf agreement, promise, or undertaking, made upon consideration o marriage, except mutual promises to marry. 5th. Every contrac1i for the sale of lands, tenements, or hereditaments, or of any interesli 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 judgment, without bond. Holldays. The following are the legal holidays: Sunday, Chrfst-f mas Day, First day of January, 10th day of .January. 22nd day o February, Mardi Gras Day, 13th day of April, 26th day of Aprll, Tuesi day before Ash Wedne day, 3rd day of June, 4th day of July, fl.rs Monday in September, 12th day of October. 2nd Tuesday in Octobefc 1  t1b~i~~J~~g~.a~~dth~ fl~~: d~~vir1}~~i~~/~~ ~1e·r~tt~~;~han· uary, or the ~2nd day of February, or the 13th day of April, or tlle 26th day of April, or the 3rd da.y of June. or the 4th day of July faflS on Sunday, the Monday following is the holiday. If any paper becoul8i due on a holiday, it must be taken as due on the next succeeding bUS • ness day. Husband and Wife. The wife has full legal capacity to contract as if she were sole, except that she can not alienate or encumber real estate without the husband joining in the conveyance, unless t ,d husband be in ane or bas abandoned her, or is a non-resident, or "' 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 earnin~ of the wife are her separate estate, and are not liable for the debts ors the husband. The wife must sue and be sued alone for alJ matte relating to her separate e tate or contracts, and for all torts to be! person or property. The chancery court has power to relieve of aJlJ or all disabilities of coverture. Interest. Legal rate is 8 per cent, and same i~ allowed on all ope~ accounts, judgments, and decrees. Usury forfeits aJJ interests an 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 transcrit~ Judgment not a lien, but when a ceritfled tatemcnt thereof, made It the clerk of the court is died in the office of the probate Judge, becomes a. lien on all property of the defendant therein in the countYn which is subject to execution for ten years, to enforce which execut may issue at any time within that period. Execution received . 1s sheriff during life of defendant may be levied after his decease. or ah~ execution i · ·ued and levied if there has not been lapse of entire do as t-0 destroy lien originaJJy <.Teated. Above applies to exec_ut O e from circuit and chancery courts. An execution i ·ned by a Just!~ of the peace I a lien only from time of its levy. All agreemeut.~e t~ed'Fo!~e~~e~e~~t~nt~ as~1~h~ ~Jg:f:~~uj~~~!°c~t~ are so confirmed are void. • l\lechanlcs' Lien. Contractors, including subcontract0 mechanics, material men, and laborers have a lien on houses b Uw and the ground on which they stand upon complying with the 1a ·  bg~  g  trr:s  g~rb~  1ifi  p  t J)  a.  VI' 0  a:  II,  Cl  a1 tl  BANKING AND COMMERCIAL LAWS-ALASKA  -------------- - - - -  to aid on. led  r or  of tate  or and bY king ator mise  ;e~ tract rest Jess aser  ist-  Y of  ues• t1tst  ~beft Jan· r tb 8 falls co~ busi·  0 peil s and  ed oll  criPt• de bY ge, it uutY, utiOJl d bY r alia.q terJl'l  utioil8 ustice nts to roade ts are  c~~i  fe Ia"•  Lien for Rflnt. The landlords of any store house .. d,velllng house, or other build,ing shall have a lien on the goods, furniture and effects belonging to the· tenant, and sub-tenant for his rent, which shall be superior to alf other liens, except those for taxes, also on crops grown on rented premises for rent of the current year Limitations. Notes and stated accoun~s. six years; OP!3n accounts, three years; ·sealed instruments, real actions, ~nd motions against officers, ten years; judgments, twenty years; actions on the ~se, one Year. Bar c1·eated by statute can only b~ removed by a partial pay~ent, made on the contract before the bar 1s e:omplete, o~ by an une;ond1tional promise in writing. If anyone entitled t~ brmg an action, or make an entry on land, or defen~e founded on title to real estate, be at the time such right accrues, w1thm the age of twenty-one ye~rs, or insane or imprisoned on a criminal charge for a term less tha_n l\fe, he shall have three years, or the period allowed by law, for brmg!ng such action, if the period allowed by la~v be less t~an three years, a{_ter the termination of such disability to brmg such suit, eUi .. ~ut _no action can be commenced after twenty years. St_atutes of hnutat10n ap~ly to married women's separate estates. Actions founded on a promise in writing not under seal. or for trespass to. p~rso!I or property. mu~t be brought within six years. Statutes of l1.1mtat10n are m~de apphcable to equitable as well as legal demands, but do not run _agamst dlf'el't trusts. Any agreement or stipulati_on t_o sh~rten th~ period P:escr1b!3d by law for the bringing of any action is vmd. Actions seetnng relief on ~he ground of fraud where the statute created a bar, ~he cause of action begins to run upon discov~ry of t~e fraud by aggrieved party. No promise or acknowledgment 1s sufficient to remove the bar to a suit, except a partial payment made upon the contract by the_~arty sough:t to be charged before the bar is complete, or an uncond1t10nal Promtse in writing, signed by the party to be charged thereby.  Married Women. (See Husband and Wife.) l\tortgages are executed and acknowledged i!1 the same mann':lr. as deeds. May be foreclosed by bill in equity, or 1f there be a prov1~1on to that effect, by ale under power, upon ~uch default as auth?r1zed a s11;le. All mortga.ges are void against creditors or purchasers without not.ice, unless recorded. Mortgages operate ?,S notice fr9m d3:y ?f delivery to prohate judge for record. There 1s no fixed tune w1thm Which they shall be recorded. Homestead realt.y cannot be mortgaged or otherwise aliened without the voluntary s1~ature and_ ass~nt of Wife, evidenced by acknowledgment, upon _private exammatlon separate and apart from tile husband, and certified. All mortgages must be in writing signed by the mortgagor. PaYJ?ent of mortgage debt made before or after maturit,y of debt, revests m the mortgagor, or his assigns the title to the real or personal property mortgaged, if made in the iifetime of the mortgagor; if made after his death, such P_aYment revests title to personal property in the personal representative, and title to realty in the heirs, devises, or legatees of the mortgagor. Chattel mortgaaes must be in writing. When the mortgagor is sued by the mortgaaee for possession of the mortgaged property, he may defend by showing payment of the debt, or part payment and a tender of the balance, or may pay it after judgment. Ne~otiable Instruments. Must be payable in I?oney and must contam an unconditional promise to pay a sum certam on deruan~ or at a fixed or determinable future time; must be paya_hle t,o 8: '!pec1fied Person or bearer; may be in installments and C?ntam prov1s10n that on any default the whole shall become due; with exchange fixed _or current rate, interest, and attorney's fees for coll~ction: _may auth~ri2'.e sale of coUat,erals but cannot authorize confess10n of Judgmen~ 1f 1t reads, "I promise to pay" all signers are joint~y and severally h3:ble; may be payable at fixed time after date or sight, or afLer specified certain event but not upon a contingency; can waive exemption from execution; need not Rpecify value given nor place whe~e. drawn or Payable; if issued, accepted, or endorsed when over~~e 1t 1s payable on demand· may be payable to two or more payees Jomtly, or one or more of several payees or to the estate of a deceased perRon; absence or failure of consideration a defense against one not a holder in due course and partial failure a defense pro tanto. Of!.e not a party to inst,rument placing a signature in blank before delivery becoi:ues an enctorser. Every endorser engages that on due pre entment 1t shall be honored or that he wm pay the amount to holder or any subsequent endors_er who may be compelled to pay; n~ days of grace; ,yhen maturity falls on Sunday or holiday payment 1s due on. next busmess day; if due on Saturday must be presented on next busmess day, but if Payable on demand holder may present same befo:e noo~ on Saturday. Fraud and circumvention in procuring execution of mstrument is a defense against any holder. Powers of Attorney. Powers of attorney or other instruments confe1•ring authority to convey property must be proved or acknowledged in the same manner and must be received as evidence to the same extent as conveyances (see Conveyances~. an~ msut be executed as conveyances. A power of attorney to relmqu~ 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 primariJr liable except in case of bank notes; if payable at special place ab1hty an~ 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, exce(.!t a bill of ex<:ba:1ge IllUst be presented within reasonable time after its last negot1ation. Proba1e I~aw. A court of probate, con ! ting of on~ jud~e •. is established for earh county in the State. This court has Jurlsd1ct1~m of the probate of will of granting letters te. tamentary and of admmi. tration, and the repeal of revoration of the ,a.me; of the se~tlem_e~lts of accounts of executors and administrators, of tbe sale ai:icl c)1Sp(?s1t10n ~f the real and personal property belonging to. and the d1stribut1on of, Also of the appointment, remo_val, and s~til!3ments In testates' estates. of guardians for minors and persons of unsound nu_n~. the bmdmg out of apprentice . the allotment ofdowor, and the part1t1on of land belonging to joint owners. A court of probate must be held at the court ~ou::;e of each county on the second Monday of each month, and the Judge may hold special or adjourned term whenever necessary, but such court mu t at all times be considered open. except on Sundays. It also keep a record of deeds, mortgages, and instruments entitled to record. Promi. ory Note. Must be unconditional promi e in_ ":fiting to Pay on demand or at fixed or determinable time a sum certain m money to order or bearer. and where drawn to maker's own order is not comPlete until endorsed by him; may be in installments. Protest. (See Negotiable In truments.) Protest of Foreign Bills. May be made by notary public or by a~y respertable resident of the place in pre. ence of t~vo or more_ credible Witnesses; bill of exchange does not operate to assign funds m hands of drawee and be is not liable unless he accepts. Replevln. Writ of replevin lies to recover property in custody of an officer of the law, and is limited to this. The action of detinue Iles to recover personal property in all other instances. Sales tn Bulk. Sales of all or substantially all of stock of merchandise except in regular course of trade is prima facie fraudulent ahnd void against creditors unless they are notified in writing prior to t e ale in manner prescribed by statute.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1849  Taxes become due on October 1st, and delinquent on the 31st of December of the year for whi~h they were levied, and the lands may be sold by certain proceedings in the probate court commencod in the month of March following. Rate of taxation is sixty-five per cent on each $100.00, for St,ate purposes. County may levy a like amount. Municipalities may levy a tax not to exceed one half of hove is based on a 60 per cent valuation. Counties one per cont. and Cities may vote additional levy. The purchaser or lands sold for delinquent taxes receives from the collector a cert.iflcate of purchase, containing a description of tbe propei·ty, the date ancl amount of assessment, taxes, cost , fees. etc., which after tlw <•,cpiration of two years from the date of the sale is exchang:eable fur a de<·d from the probate judge-which is prima facie evidence of title. Lands sold for taxes may he redeemed within two years l)y tho owner, mortgagce, or any person having a beneficial interest therein hy depositing with tho probate judge of the county in which the lands w!'l'e soltl, the amount of purchase money, with interest at 15 per cent per annum. and all taxes which have accrued subsequent to the sale, and interest thereon. at 8 per cent per annum; also all costs and char~es. WheneYer land is sold for State or county taxes, and from any caw,e such sale is invalid to pass title to purcb.a.ser, sale operates as transfer to purchaser of lien of slate or county, or the property for payment of taxes for which sold. All cotton factories or cot.ton mills which shall be constructed in this tate within five years shall be exempt from taxation for a period of ten years. pro,·ided such mills represent an investment of $50,000. \l'lll . All wills of real or personal property must he ln writing signed by the testator and declared his last wlll 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 not exceed ;;oo ln value. and must be made during last sickne ·s 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 ,vtinesses within six <lays. 1\1inor ·o will effective over eighteen may make a will of personal property. until probated. May be contested in probate or chancery court.  SYNOPSIS OF  THE LAWS OF ALASKA RELATING TO  BANKING AND COMMERCIAL USAGES Prepared and Revised by 0. D. CocrrRAN, 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 iR but one form of a<'tion, denominated a civil action, fo1· the enforcement or protection of private 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 expre. sly authorized by statute may sue without joining with him the person for whose benefit the action is prosecut,ed; but t,he a.ssignment of a thing in action not arising out of contract is not authorized. Afflda,•it . An affidavit or depo ition taken out of Ala ·ka, otherwise than upon commi sion, must be authenticat.ed as follows: 1. It must be certiOed by a commissioner appointed by the governor of Alaska to take afUdavits 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 subscribed 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 tho 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 a a citizen. Any alien may acquire lands by inhcri(.ance or in the ordinary courne of ju tice in the collection of debts, and may acquire and enforce liens upon lands, but- such lands must be sold \vithin ten years. Any alien may also acquire and hold lots or parcels of land in any incorporated or platted city, t,own, or village, or in any mine or mining claim, but is not authorized io acquire title from the United States to any of the public lands. Arrest. The dl"fendant may be arrested in the following civil actions: 1. For the recovery of money or clamageR when the defendant is about to remove from the district with intent to defraud his creditors: for an injw•y to person: or for willfull:v injuring or wrongfully taking, detaining, or converting proporty. · 2. For a fine or penalty; or for money or property embezzled or fraudulently misapplied or converted to his own use by a public officer. or by an attorney, or by an officer or agent of a corporation in the course of his   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  B A.NKING AND COMMERCIAL LAWS-ALASKA  1850  employment as such, or by any agent, hroker, or other person in a fiduciary capacit~· or for mi. conduct or negle<'t in office or iu a profc ·sional employment. ~- To recover the po. session of personal property unjustly detained, when the propert)· or any part thereof ha.s been concealed, removed. or disposed of, so t.hat it cannot be found or taken by the marshal, and with intent that it should not be so found or taken, or wit,h the intent to deprive the plaintiff of the benefit thereof. 4. When the defendant has been guilty of fraud in contracting a debt, or incurring the obligation for which the action is brought, or in concealing or disposing of tbe property for the taking, detention, or conver:-ion of which the action is hrought. 5. ,vhen the defendant has removed or disposed of his property, ot· 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 propert,y of defendant attached in an action upon a contract, expres.-; or implied, for the direct payment of money, and, 1, which is not secured by mortgage, lien, or pledge upon real or personal property, or if so secured, when th security ha been rendered nugatory hy the act of the defendant; or, 2, against a nonresident defendant. The ~Tit issues whenever th plaintiff. or anyobe in his behalf. flies an affidavit showing that defendant is indebted to plaintiff (specifying the amount of indebtedness over and above all legal set-ofl's or counter-claims) upon a. contract. express or implied,  ~~~i~~  g~e~oR~!:;~~feri': o~~~!a'iet!~~;~~aY~~~~o~!! ;~p:ret;~ and that the sum for which attachment is asked is an actual, bona fide existing debt due and owing from plaintiff to defendant; and that the attachment is not sought nor the action prosecuted to hinder, delay, or defraud any creditor of the defendant. Plaintiff must also file an undertaking, with one or more sureties, in a sum not less than $100, and equal to the amount for which he demands judgment, conditioned that plaintiir will pay all co ts adjudged and all damages su tained by reason of the attachment if the same be wrongful or without sufficient cause, not exceeding the amount specified. Chattel lortgages. Any interest in personal property, capable of being tran. ferred. may be mortgages; but the mortgage is void as against creditors and subsequent purchasers and incumbrancers in good faith and for value, unless po ·ession of the property be delivered to and retained by the mortgager or the mortgage provide that the property may remain in the po. ession of the mortgagor and be accompanied 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 acknbwledged and flied. The mortgage must be acknowledged by the mortgagor as a conveyance of real property is and be flied in the office of the recorder of the precinct where the mortgagor resides and of the precinct where the property is. Within thirty days next preceding the expiration of one year from the fl.ling, a true copy of the mortgage, with a verified statement of the interest of the mortgagee in the property at the time the same is renewed, must be filed in the office where the original was flied, and the lien is thereby extended another year. Chattel mortgages are foreclosed in the same manner as mortgages and liens upon real property. but a clause may be inserted in a mortgage authorizing the mar ·hal to execute the power of sale therein granted to the mortgagee. Corporations. Domestic Corporations. Three or more adult persons, bona fide residents of the district, may form a corporation for the following purpo ·es: To construct, own, and operate railroads. tramways, street railways, wagon roads, flumes, and telegraph and telephone lines in Alaska; to acquire, bold, 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 car!'y on trade, transport.ation, 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 'thin th distri·ct file 1·n the office of the b · · · e · s h aII • b e f or e d orng usmess Wl secretary of tho district and in the office of the clerk of the district court for the division wherein it intends to carry on business a duly t~a1;;:f11°~tmc~;e~fdi!1;f~Ja;!~~et!~: ~~  :u:~~~~<;;t<;,~~&~ct°f1;;"  0  If intestate leaYe no lineal descendants. neither hus1/and nor wife, nor father, such real property de ·rends in equal shares t-o his brothers and sisters, and to the issue of any deceased brother· or sister by right of representation; but if inte. tate leave a moth.,er, she takes an equal share with such brothers and sister. ·. 4. If intei,;tate leave no lineal descendants, neither husband nor wife. nor fatther, brother nor si ter. such real property descends to hi mother. to I the exclusion of the i. sue of deceased brothers and . isters. 5. If in testate leave no lineal descendants. neither husband nor wife, nor fa ~her, mother, brother, nor sister, such real property descends to his next of kin in equal degree, excepting that when there are t,wo or mi:ire collateral kindred in equal degree but claiming through difl'eren.t ancestors, those who claim through tho nearest ancesto!' are prert;1Ted. 6. If intestate leaYe one or more cbilclI'en, and the issue of cme or more decoac;ed children, and any of such ·urviving children·. die under age without havin~ been married, all such real property' that came to such deeeased child by inheritance from such inte tat,!l descends in equal shares to the other children of. uch intestate and tn the issue of any other chilclI'en who have died, by right of representat.~ou. But if all the other children of intestate be dead, and any of tl; em have left issue, . uch real property so inherited by such deceai~ed child descends to all the i sue of such other chilclI'en of the in1 estate ill equal .·bares, if they are in the same degree of kinclI'ed to such deceased child; otherwise, they take by right of rep re. entation. 7. If intestate leave no lineal descendants or kinclI'ed, such real property escheats to the United States. Dower and Curtesy. The wid,ow of every deceru ed 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 ,~~i~~;c~an and his wife are seized in her right of any estate of inheritance in lands, the husband, on the death of his wife, holds tbe lands for his life as tenant thereof by the curtesy, although such 0 ~:go~ ~~;bee ~!~1~~~3 ~o~n~r;eeis on account of huE~~~nac~~ being a party or interested in the event of an action or proceedings, having been convicted of a crime, or bis opinions on matters of religious belief. Persons of unsound mind and chilclI'en under ten years of age who appear incapable of receiving just impression of the fact respecting which they are examined or of relating them truly may not be witne: es. An attorney may not, without bis client's consent, _be examined as to communications made by his client to him or his ad-nee thereon. A priest may not, without the consent of the person makin,s the confession, be examined as to any confession made to him in h1S professional capacity, in the course of discipline enjoined by the church to which he belongs. A physician or surgeon may not, against the objection of bis patient. be examined, in a civil action, or proceeding, as to information acquired in attending the patient which was neces· sary to enable him to prescribe or act. Executions. (See Judgment and Execution.) Executors and Administrators. ,Vhen a will is proven letters testamentary are issued to the persons therein named as executorsd, or to such of them as give notice of their acceptance of the trust an are qualified. Administration is granted as follows: 1. To the widolf or next of kin, or both, in the discretion of the court; 2. To one or more of t be principal creditor·; or, 3, to any other person competeednt and qualified whom the court may select. If deceased were a marri woman admini ·tration shall in any case be granted to tbe hu band: if qualified. and he apply therefor. Claims are paid in the following order: 1. Funeral charges. 2. Taxes due the United tates. 3. Expenses of last sickness. 4. All other taxes. 5. Debts preferred{ by the laws of the United States. 6. Debts which at the death o 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. I r f Exemptions. 1. Earnings of judgment debtor, or persona se • vices rendered within sixty days next preceding the levy of executio~ or attachment, when necessary for the use of his family supporte in whole or in part by bis labor. 2. Books, pictures, and musica1 instruments owned by any person, to the value of $71?. 3. ece~rY wearing apparel owned by any person for the use of bllllSelf or farmlY, but watches or jewelry exceeding $100 in value are not exempt.  WM~  ~~~e~r~:n:~~~!u.~o ~:r~  0 6~h~~:·t~;J~.e.~c~~!W~~: ~~~eto~:;; !t!:::~n~in~f1aa~~r~: s~f fft~d ~~~ {I41[yecc'i~rsys aJ!ti°;{ytelir!f~ , or profcSi ion by which such person habitually earns his living, to tb 8 1 value of 500; also sufficient quantity of food to support such teaill, each year. if any, for six months; the word "team" being construed to include Deeds. A conveyance of lands, or of any estate or interest therein, not more than one yoke of oxen. or a span of horses or mules, or two may be made by deed, signed and sealed by the person from whom reindeer, or six dogs. 5. Tho following property, if owned by ~h8 the estate or interest is intended to pass, and acknowledged or proved, head of a family and in actual use or kept for use by and for his fam1lY, and recorded, without any other act or ceremony. A quit-claim deed or when being removed from one habitation to another on a changbe passes all the estate which the grantor could convey hy deed of 1:>argain of residence: Ten sheep, with one year's fleece or the yarn or clot o covenants are implied in any conveyance. The term and sale. manufactured therefrom; two cows and five swine; household goodS, "heirs," or other words of inheritance, a.re not necessary to create or furniture, and utensils to the value of $300; also food sufllcient to convey an estate in fee simple. Husband and wife may, by their support such animals, if any, for six months, and provisions actuallY joint deed, convey the real estate of the wife, in like manner as she provided for family use and necessary for the support of such persond might do by her separate deed if she were unmarried. A married and family for six months. 6. The eat or pew occupied hy the hea woman residing in the district, joining her husband in a deed, must of a fan1ily or bis family in a place of public worship. 7. All propertd~ acknowledge that sbe executed such deed freely and voluntarily. o article, or the procee of any public or municipal corporation. Wben a married woman not residing in the district joins her husband derived from its sale or exchange, is exempt from execution on 8 in conveying real estate situate ln the district, the conveyance ha'> the price. its for recovered judgment afr~g~vl;~Fe~gfe~r si~:• :~:~iroi:ict,;:yif g~e Garnl hment. (See Attachment.) Homestead. The homestead of any family, or the proceeds district deeds must be executed in the presence of two witnesses, who uch homestead must be the actual abode of, thereof, is exempt. shall subscribe their names as such; and the person executing a deed and owned by, such family or some member thereof, and not exceed may acknowledge the execution before a judge, clerk of the district 1 2,500 in value nor exceed 160 acres in extent, if not located in a toW~ ~~tng~1~i~~~li~~t 'rli1o~set~~e~~~~i~\e~riic~~: ~~~:~ I'a°i;~l or city laid ofl' into blocks or lots; or if located in any such town 5 of acknowledgment and tbe true date of making the same under his city, one-fourth of an acre. This exemption does not apply to decree nd for the foreclosure of any mortga"'e property executed; but if tnde ha · owners of such homestead be married, the mortgage must be execute Depositions. Tht'l testimony of a witness, in the district, may be by husband and wife. taken by deposition, in an action, at any time after the service of Interest. The legal rate of interest is 8 per cent, but on contrac$ the i;ununons or the appearance of the defendant, and in a special interest at the rate of 12 per cent may be charged by express agre~ proceeding after a question of fact has arisen, when, 1, the witness is ment of the parties. If usurious interest bas been received or collec~e n a.wiptna.erssty;stroestfdeenacceti1.osnmoorreprtobcaenedolnneg,hunby~~~ ~fe~s1~~J:a[J!;pl!cetho! the party paying the same, or his legal representatives, may, by act10 brought within two years, recover double the amount of such inte~e~~ trial; 3, the witne is about to go more than one hunclI'ed miles be:vond If it is a certained in any action upon contract that an unauthonzeved the place of trial; 4, tbe witness is too infirm to attend the trial; or, 5, rate of intere •t bas been contracted for, judgment must be render d the testimony is required upon a. motion, or in any other case where th against the defendant for the amount due, without interest, an r ;,g~aie~i~~~t~pao~~ie~t~~ts ihoet Jf,.,~*if.dmay be taken by against the plaintiff for costs. If the rate contracted for is 8 Ptbee upon five davs' notice to the other deposl·t1·on, by comm,·ssi·on i"~ued, cent or le , the debtor may also agree to pay the taxes upon J "" credit, or mortgage. debt, ~~i t<;:;~~n is~ci/1T ~~~tf E!~Yco~~\~ c!e~~~~~h!g~~~d\~o~t:icth1 Judgment and Execution. A judgment is docketed 1nune· agree, to a judge, justice of the peace, notary public, or clerk'. of a dlately after entry. At any time thereafter while execution mffia~ court selected by the officer i. suing the commission. issue a certified transcript of the docket may be flied in the o c The amount of the commissioner's fees should be indorsed upon the of the recorder of any recording district, and from the date of docke~ deposition. ing a judgment or transcript thereof the judgment is a lien upo i Descent and DI trtbutlon. The real property of an Intestate all the real property of the defendant within the recording dist:j~ descends as follows: 1. In equal shares to his or her children and 0 1 r~e~~:ricr~~i~~h~ii°e 1?~~e~g, e ~c~t~h i:::y °l~e~rt1Fv;~d!x!g~tton 01!;!~iftech~t~~{it~\~:~ t1~f:~~at~rn~e!ih~ f? tt~~ei~:~o0 issues within ten years the lien expires, but is renewed if afterwar&; to all his or her other lineal descendants; and if all such descendants leave is given to issue execution and a transcript or the docket 0 are in the same degree of kindred to the intestate, they take equally; th~~~~~ii~~~~t;~:~~haib!;;ct~~ir,;,ithin five years from the en!rY otherwise, by representation. 2. If intestate leave no lineal descendof the judgment ,and thereafter on order of the court made on motioJJ ~:r-inn~~s~ii;le~v~f ~~t~ret°u~~ t~~~~t ~ow:~r tge~efa~~!~.ant  :::i:  ::~:h:s  tg~  l{~~fi;f;t t~:  °  ~l  ~Jil  ii  BANKING AND COMMERCIAL LAWS-ARIZONA  ,  eds of, ed wll  or ees tM ted  of the party in whose favor the jude;mont was given. Such motion must be sub cribed 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~ed as a judgment. Execution may be agai?5t the property of ~he Judgment debtor his person. or for the delivery of the possession of real or personal property, or such delivery with damages. ExecuLion from the district court is returnable within sixty days: from the commissioner's court within thirty days. Until a levy property is not affected by the execution. Licenses. (See Taxes.) Liens. Every mechanic, artisan, machinist. builder, contractor. lumber merchant, laborer, teamster, dra;vman, and. other per on performing labor upon or furnishing material of any kmd to be used in ~be construction, development. alte_ration. or rep~ir. eit.~er in whole or m part, of any building, wharf, bridge, flume, ditch, mme, tunnel, fence, machinery, or aqueduct, or any structure or superstr~cture, has a lien upon the same for the work or labor done or material furnished at the instance of the owner of the building or other improvem~nt or his agent; and every contractor, sub-contra~tor, architee:t, builder, or other person having charge of tho work, m whole or m Part, is, for this purpose, deemed the agent of the owner. Limitations. Civil actions must be. commenced wiphip. the following periods after the cause of action accrued: \V1thm ~en Years-action for the recovery of real property, or the. po session thereof; upon a judgment or ~ec-i:ee of any .court of th? Umted States, or of any state or territory w1tbm the Umted States, upon a sealed instrument. Within six years-action upon a ~ontract or liability, express or implied, except judgment or sealed mstrument.: upon a liability created by statute, other than a ~enalty o_r _forfe1t1~.r~: tor Waste or trespass upon real property; for takmg. ~etammg, or mJurmg Personal property including an action for the specific recovery thereof. Within three years-action against a marshal, 9oro?er, oi; consta~le, up?n a liability incurred by the doing of an act m h.1 official. capac.1ty or m virtue of his office, or by the omission of an offlc1a.l duty, mcludmg the. non-payment of money coUected upon execution, but n<?t an action for an escape; action upon a. statute f<_>r penalty or forfeiture, where the action is given to the party aggr1ev~d. or .to such .Party apd the United States, except the statute prescribe a different limitat10n. Within two years-action for libel, slander, assault, battery, 8 !3duct1on, false imprisonment, or for any injury to the person or r1~hts of another not arising on contract; up~m .a statute for a f?r~ fe1ture of penalty to the United States. Within one year--act10n aga:inst the marshal or other officer for the escape of a person arre~ted or imprisoned on civil process; upon a statute for the penalty given in Whole or in part to the person who will prosecute, pu~ if not commenced within one year by private party may be within two years by the United States. M~Tried ,vomen. The property aJ?,d pecuniary rights of ev:ery marr1ed 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 e~tent an.d in the s~me ,manner that her husband can property belongmg to. him. For civil mjuries 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 8 ~f! :Vere unmarried. All laws which impose or recognize civil disab1ht1es 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 ~Vidence of her separate ownership, and property not. so registered either husband is deemed prima. facie the property of the husband. nor Wife is liable for the debts or liabilities of the other incurred before marriage. Husband and wife may make co~veyances and transfers and create liens between themselves, and either may constitute the other his or her attorney in fact. A woman becomes of age at twenty-one or upon being married according to law. 1:ortgages are executed, ackn<_>w~edg~d. and recorded Mortgages. o covenant 1s rmphod for the payin the same manner as deeds. ment of the sum intended to be secured. Record of assign.mei:it is not notice to the mortgagor, his heirs, or personal representatives. Mortgage may be discharged by entry in margin of record signed by mortgagee or his personal representative or assignee and witnessed by the commissioner or deputy, or by certificate executed and ackno~ledged as other conveyanc~s. l~oreclosure is by action of an equitable nature in which a deficiency Judgment may be had. Notes and Bills of Exchange. On all bills of exchange and all negotiable promissory notes, orders, and drafts payable at a future day certain within the district, 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 r~al propei:ty is void as against any subsequent innocent purchaser m good faith and for a. Valuable consideration whose conveyance is firs~ dulY: ri::corded. Ab commissioner is ex-officio recorder of a recordmg d1str1ct, tile oundarie of which are fixed by the cour~. Conveyances of la~qs n,ot in any recording district are recorded with the clerk of that d1v1s1on of the district court within the limits of which such lands are situated. Replevin. The plaintifl', at any time after the commencement oj f an action to recover the possession of personal property and before Udgment 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 det.ained by defendant· the alleged' cause of detention; that the same has not b e.en 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 Illust first apply for and obtain license so to do from the district court or a subdivision thereof, and pay per annum for such license for the respective lines of trade and business as foUows: Salmon eanneries, 4 cents per case; salmon salteries, 10 cents per barrel; fis~ oil works, 10 cents per barrel; fertilizer works, 20 cents per t.on; freight and passenger transportation lines, propelled by mechamcal Power on inland waters and ocean and coastwise vessels doing local business for hire. Sl per ton on net tonnage; railroads, SlO0 per mile; tramways, $10 per mile; saw-mills, 10 cents per thousand feet on lumber sawed; quartz mills, $3 per stamp: mercantile establlsh!Pents and manufactories doing a business of under $4,000 per annum, •10, and in proportion to the amount of business done to $500 for establishments doing a business of $100,000 per annum; in other lines ~f 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 tnay dispose of all his or her property by will, saving a widow's dower a.nd a husband's rights as tenant by tb-:i curtesy. Will must be In   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1851  writing, signed by the testator, or under his direcUon, 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 bis 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. I>roof of nuncupative will must be made within six months, and the words or their substance reduced to writing within thirty days after they are spoken . A person owning property in, but not an inhabitant of. the district may devise or bequeath the same according to the laws of his domicile. If such will be probated without the district., copies or 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 sea together with a certificate of the chief judge or presiding magistrate, that the certificate is in due form, and made by the clerk or othet· person having tho legal custody of the record, may be recorded, admitted in evidence, or contested and annulled as if executed and proved within the district.  SYNOPSIS OF  THE LAWS OF ARIZONA RELATING TO  BANKING AND COMMERCIAL USAGES Revised by C. B.  & GERARD T. WALL, Attorneys at Law. Flagstaff, Arizona.  WILSON  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 afflant's knowledge, just and true. that it is due, and that all just and lawful offsets, claimants. and credits have been allowed," is p-rima facie evidence, unless one day before trial, defendant files written denial of any item under oath. Acknowledgments. The form of an ordinary certificate of acknowledgment shall be substantially as follows:  "~:i~t~f  ~{.i~~~~'. ................................ } es This instrument was acknowledged before me this ........ day of .......... A. D ........... , by (if by a natural person or persons here insert name or names; if by a person acting in a representative or official capacity, or as attorney in fact, then insert name of person as executor, attorney in fact, or other capacity; if by an officer or officers of a corporation, then insert name or names of such officer or officers as the president or other officer of such corporation, naming it). A .................... B ................... . (Or other officer) .. Notar~ ~ublic. . (My comm1ss1on expires .................... ) Every instrument affecting real property in this state executed, acknowledged and certified in any other state or territory in accordance with the laws of such state or territory, shall be valid and entitled to record as if executed in accordance with the laws of this state. Actions. Distinction in forms between law and equity are abolished. Pleadings are: Complaint and answer, and in some cases a reply. Administration of E. tates. Lie in Superior Court. No public adminL<;trator. Where person dies intestate letters shall issue. Affidavits. J\'.Iay be taken before any officer authorized to take acknowledgments. Aliens. Unless rights are secured • creaty cannot hold land in the state, may acquire by inheritance, or in ordinary course of justice in the collection of debts; may acquire liens on real estate, may lend money and secure same on real estate, but title so acquired must be sold within five years; may acquire patented mines and hold stock in domestic corporation owning unpatented mines. The laws provide that the laws of the state pertaining to aliens shall not be construed as to conflict in any manner with any rights existing under and by virtue of any treaty of the United States with any other country. Appeals, Appeals are allowed from justice or peace to superior ~i::e !!1mg~f~v~:~ ~nf20io~ ot~~~rior court to supreme court 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.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  BANKING AND COMMERCIAL LAWS-ARIZONA  1852  - - - - - ~ - - - - - -- -- - - - - - -- - - - -That-I be published for six days in some newspaper in the county where the principal business is located. Proof of publication must be filed 1i:1h~adi~!~in~~1::i~~t~f ~ES~b~r~~~?<;;onet~~~t~~ ~.fct~e~r with the Corporation Commission. Corporations to endure for is payable in t~is Territory, and that the payment of the same bas not twenty-five year . Corporation must file in office of Corporation Combeen fully secured by mortgage. lien, or pledge of per onal property, mission an appointment of agent who is a bona fide resident of this or if originally so secured, that such security bas, without any act of state for three years prior thereto, on whom all notices and process, including summons, may be served and constitutes personal service. ~1!fies~!~f?;1 t~e ~~~cl~: Charges for incorporation: Recorder's fees, 20 cents folio. Recorder's is due to the plaintiff over and above all legal set-offs or counter-claims, fees, certified copy. 20 cents folio. Recorder's fees certificate to copy. and that demand has been made for the payment of amount due; or, 75 cents. Corporation Commission's fees, filing cost copy, $10. Printers' fees per inch. publishing articles six days, 80 cents. Corpo!cte;~ttd~~t~nt~~t si!i!~di~bj~~ ~~gi~~ii~ies~;!~ga~:f~i~~:1!.111~;~1 ration Commission"s fees, filing proof, publishing $3,00. Corporation set-offs and counter-claims, and that defendant is a non-resident of Commission's fees. filing appointment of agent, SS.00. Where charter this Territory or ls a foreign corporation doing business in this Terriprovides assessments may be levied on shares to par value (1907). tory; or, 3. That an action is pending between the parties, and that Corporations, Foreign. Before It can transact business it must defendant is about to remove his property beyond the jurisdiction of file certified copy of Articles with Corporation Commission and the court to avoid payment of judgment; and, 4. That the attachcounty recorder in county of principal placP of business, also an ment Is not sought for a wrongful or malicious purpose, and that the appointment of agent upon whom a service personal to the corporation action is not prosecuted to hinder or delay any creditor of defendant. may be made. 5. No such att.achment shall issue until suit has been duly instituted, but lt may be issued in a proper case either at the commencement of Corporations, Insurance. May be organized under provision 0 0 peculiarly applicable to insurance companies. !f~~~~h ~1!fntflf.st~~tdo~11:i!f1/!~Jb l~~~c1u:unJ!es;:~rt11:d1fa~1~ui, intent to defraud; no final judgment shall be rendered until such debt CorJlorations, Railroad. Are organized under a statute espeor demand shall become due. Writ may issue at or after action began cially providing for them. upon plaintill' 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. 8~~~~~:n~~ss t~~k~ Tr~~ie~~r!io~r~h~rrn:c!ft~ Sureties can be compelled to justify upon notice. When more than valid. except as between the parties thereto, unt.11 the same is regularly entered upon the books of the company, so as to show the names of the t~\1~\~1n1~~~ev~i~eo¥.1:i~e take priority accordperson by whom and to whom the transfer is made; the number of their designation of the shares, and the date of the transfer. Banks-Savings and Loan. May be incorporated to loan and invest property. May hold lot and building in which business is Costs. Plaintiffs who are non-residents, or those who own no carried on to value of $100.000; such as may accumulate on good property upon which execution may be levied, are required to give faith loans and such personal property as may be required in transsecurity for, within ten days after order made ; bonds for, must acting its business. To purchasP and convey evidence of debt except authorize judgment to be entered against sureties. national, territorial, and municipal bonds must have a capital of Court . Are the Supreme C'ourt of the State, the U.S. district court $100.000. Married women and minors may transact business with for the District of Arizona; one superior court for each County, except such banks. Are required to have license and are examined by the in counties having over certain population in which event two superior bank examiner. Provisions are made for the contents of the charter. courts. justices of the peace, police courts, recorders of cities. The superior court of the several counties is a court of general jurisdiction, both civil and criminal. It has both original and appellate jurisdiction. A!!~~a':in:ar %~~eta te~~t}~~~:. in1~~1f ~i\i~~~eJ~;Pi!1e~!a!~j Its ori~inal jurisdiction extends to all civil cases where the amount without releasing others. (See Holdings.) involved exceeds S200 exclusive of interest, and in all cases involving Bonds. Any standard surety company. organized under laws of the title to or possflssion of real estate. Justice courts have general Unlted tates or of any state, may execute bonds in judicial proceedjurisdiction when amount in controversy does not exceed $200.00, Ing within the state when they have complied with license laws. except when title to real estate is involved. (See Jurisdiction.) (Sfle Guaranty Companies.) Creditors' Bills. o statutory provisions. Chattel lUortgage. To be valid against others than the parties Days of Grace. None. thereto, chattel mortgage must sot out the residence of the mortgagor Depositions. May now be taken either upon oral examination, and the mortgagee, the rate of interest to be paid and time and place of and cross-examination or upon written interrogatories and cross payment of the debt secured, and be accompanied by the affidavit of interrogatories, as is generally provided. both mortgagor and mortgagee that the mortgage is bona fl.de and De cent and Di trlbutlon. (See Savings Banks.) The law of 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 be or she hall die leaving surviving no husband' or wife, shall and the change of po ·ession must be actual and continued, unless the descend as provided. \'Vhen an intestate leaves surviving a wife or mortgage or a true copy thereof shall be forthwith deposited and filed husband another method is provided. Children of the intestate in the office of the recorder of the county where the property shall brothers, sisters, uncles and aunts, take per capita. All property then be situated. Removal sale, or other dii;position of mortgaged property without consent of mortgagee entitles mortgagee to immebelonging to the community estate of the husband and wife shall go diate possession of it, and such removal, transfer, or sale, or subsequent to the survivor, if the deceased spouse have no child or children; if the deceased have a child or children, his or her surviving spouse will ~~c::ie~~.::JetJs c~rw~i~tg;g~afle~~in~~!g~i~~J'~~~~~~rh~ take one-half, and the other half goe to such child or children. The mortgage in such other county. Chattel mortgage may be forecommunity property always passes charged with the debts against closed in justice court if amount of debt does not exceed $300; otherit. Intermarriage between man and woman to whom a child or wise in superior court. Mortgagee may obtain possession of property children had before been born, and recognition by the father of such on default and sell after notice which must be served on owner. cbild or children legitimizes the child or children. Bastards inherit pon stock of goods, wares, and merchandise with continued posse c;ion in frbm the mother and transmit estates as if legitimate. The statute provides for the adoption of heirs. (See Dower, Husband and Wife, 1 ~:iged~ ~nd ~~pc~~!rfrn~Jeta b~t~o~1':~!~or~~il.tnal must be Homestead.) Dower. Dower is abolished. CJa1Jn and Delivery. (See Replevin.) Evidence. The common law rules have not been codified. Parties Clollaterals. No statutory provlslons-<:ommon law prevails. may be examined and the ot,her side not concluded thereby. Statutes Community Property. (See Conveyances.) of other states and territories purporting to be printed under authority may be read. o one is Incompetent to testify because of religious Conditional Sales. Where title remains in vendor until purchase 1 0 0 price Is paid, void as to persons not parties thereto, and persons ~:~ Jopi~c;e~1~~~0~%i~\ !1r~~i;~fe~s ~a~r;!t~~!l a~~~~f~ay ~~d~; without notice, unless subscribed, acknowledged, and flied with inspection or copy of documents. county recorder. Executions. Upon a judgment of superior court, executions may Contracts. (See Bills and Notes.) One or more obligors on a be issued to any county. Lien of date from levy, and if on real propjoint or joint and several instrument may be released without releasing erty. the description is endor ed on execution and filed with county the others, and may be sued eparately under certain conditions withrecorder. 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 a.c; upon real estate. (See Judgment, Liens.> Conveyances. Conveyances of estate In lands for term more than Proceeding supplemental to execution-when returned unsatisfied one year shall be by instrum·e nt in writing subscribed by party making it, or his agent, duly authorized thereto by writing. A conveyan<'e is ~~:dt;~~~~t~~tit~idD~~ ~Ys~;te:r!e~~i~ i~~t~~u~t;ninrsc~:<;1~~~ 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 conveyan<'e Court or judge may order suit brought to determine the denial ·of purporting to convey a greater estate than the grantor has passes only owning or of having property. the estate t,hat be actually ha . A general grant or devise p~ -:es the Exemption . Every person who is the bead of a family, and fee unless expressly 11.m.ited to a less estate. All deeds to realty must who.c:ie family re ide within this state, may hold as a homestead, be signed by both husband and wife except a 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 hornestcarl shall be in one comsome officer authorized to take acknowledgment, and properly cerpact body, not to exceed in value four thousand dollars, upon filing tltled by him to entitle same to regist,ration. The use of the word affidavit designating such homestead in the Office of the County "grant" or ''convey" implies the following covenants and none Recorder on county where property I situated. Such homestead other: 1. That previous to the time of the execution of the conexempt from date of 0linl? said affidavit. The following property veyance the grantor has not conveyed the same e. tate, 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. i. sued from any court: 1 The family bible. 2. A seat or pew in That suC'h e. tate is at . the time of the execution of such convevance any hou. e or place of public worship. 3. A lot, in any burial ground. free from incumbrances. l\larried women seventeen years o·r age 4. ece ary 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 and Wife, carry on his trade , etc. 6. The sewing machine and implements Homestead.) of a seamstre. · actually used in pursuing her vocation. 7. One Corporation Commission, organized under Chapter 90, First watch, one sewing machine. one type·w riting machine, and one biSession, Laws 1912. Has general supervision of corporations. cycle. 7a. Five milch cows. 8. The camping outfit of every Corporations in General. Any number of persons may become pro pector in this tate, including bis mining tools, saddles and burros. Incorporated for the transaction of any lawfUI bu. iness. Before com9. The farming utensils and Implements of husbandry of the debtor, men<'ing any busines,c:;, they mu~t adopt articles of incorporation etc. 10. Poultry not exceeding in value twenty-five dollars. 11. which shall be signed and acknowledged by them as deeds and be Two horses and two mules and their harness: one cart or wagon: filed in the ofilce of the Corporation commission at the tate Capital one dray or truck: one coupe; one hack or carriage for one or two and a certified copy thereof filed in the office of the County Recorder, horses or one automobile by the use of which a carman, drayman, trnckman, hurkster, hackman, teamster, chauffeur. or other laborer in each county in the state in which they transact business. 'l'he habitually earns his living. and one horse with vehicle or harness or articles of incorporation must contain: 1. The name of corporators, and its principal place of transactin1t buslne -. 2. The general riht~eeli~m;;~! ~:r.~~t~reao}Uhfse~~cleh·~~i.a~,.ii~~~~adbl?o~~c;~~tgl:.::s naturP of the business proposed to be transacted. 3. The amount of capital stock autborizerl and the times when and conditions upon or mules for one month. 12. Fuel nece sary for the use of the debt or and bis family for the period of six months. 13. The presses, which it ls to be paid in. 4. The time of the commencement and termination of the corporation. 5. By what officers or persons the stones. type. cases and other tools and implements used by anY affairs of the corporation are to be conducted, and the time at which person or copartnership ln printing or publishing a newspaper or In they are to be elected. 6. The highest amount of Indebtedness or condu<'ting any printing establishment or by any person hired to use them; not exceeding two thon:sand dollars in value; toget,her with liability to whi<'h the corporation is at any time to sub.iect itself, which must not exceed two-thirds of its capital st.ock. 7. \Vhether private stock in trade not exceeding four bundrerl dollars in value. 14. The property is to be exempt from corporate debts. Unto· so exempted library and philosopbiraJ and chemical or other apparatus belonging stockholders are liable for the debts of the corporation in the pro• to and used for the instruction of youth in any university, college, portion which their stock bears to the whole capital stock. Must seminary of learning or school. 15. All moneys received by or Attachment.  Writ will issue on ~davit showing:  ~~°n~i  rJ:1~!~  ~nf~\~ilil~;J~:ns. ~t~~~~::i!.~;  fia~i:irL:r~·  ri:  J!~E?s~:il~s  fl~~  t:~~h!r  :r~~!'f  1.  BANKING AND COMMERCIAL LAWS-ARIZONA pa.ya.hie to a survivin~ wife or child upon the life ot a deceased husband or father, not ex<'eediJ1g ten thousand dollars. 16. All moneys arising- from fire or other insurance upon any property exempt from salt- on exe<'nt.ion. 17. All moneys, relief, or other benefits payable to or to be renrlered by any police department association, fire department a.ssndaLion, heneflciary association, or fraternal benefit a.<;sociat ion. and any perc;on entitled to _assistance therefrom, or to any <'E'rt ifl<'ate holder thereof or beneficiary under such certificate. 18. Any <'laim for damages recoverable by any person by reason of any levy urion or sale under e xecution of his exempt personal property or by reason of the wrongf~ taking or detention of such propE'rty h.v an.v person, ancl any Judgment recovered for such damages. 1H. :rhe earnings of the minor child of any debtor or the pro<'eeds thereof by reason of any liability uf such debtor not contrarted for the spe ·ial heneflt of such minor child. 20. One half of thE' earning<, of the wa·.?ec; or salary of any pers()n for his personal servkes renctered at any time within thirty days next preceding the levy of attachment, irarnishment• or execution when it appears hv the affidavit of the deht()r or otherwise that such earnings !l,re neees,iary for the use of the family resitting in thic; state, supported m wholE' or in part by him. 21. All arms. uniforms and accoutrerne11ts required by law to he kept hy any perc;on and also one gun  ~~~~~t~~~;}~d N t'ri1de~~~ho!!es. Aj~i~~e  :~t ~l\e.  ·pro le~fl ~~~ clarect to he e ·empt by this chapter shall not he rxempt from attachment, or sale in any artion bro11ght or judgment recovered for ~he pur<'lm<se pricE' of such propE'rty so lr>n!! as c;uch propert,y remains m the posse<;.-;ion of thE' orildnal purcha er. (~ee Homestead, Liens.) Frau"~ 11nd Fraudulent Convevances. Ag-reements must be in writing and c;i!!11ed b.v the parties to he charged 1. By an e ·rcutor or admini"trator to answer for the deht of his testator or intestate out of_his own estatE' 2. By a person to an wer for the deht, default or m1s1·arria'(e of another. ~- To charge an.v person upon an agreement made unon consideration of marriage. 4. For <;ale of real estate or lease thereof for a term Ionizer than one year. !\. Those which are not t.o he performed within the spare of one year after thP making thereof. ft~verv gift convevance, or aso;;ignment.. or tran<:fer. or charge uprm any e,iate. rea·1 or per,;;onal; any suit commenced on decree, jud!nl'lent, nr e,ce<'utions c;uffered or obtained, or any bond or other writ ina: ,:riven with intent to rlelay. hinder. or defraud creditors, purcba-;ers or other persons, shall to su<'h persons hE' void. All b~rgains. sales, and o1her conveyances of lands. tenements, and hered 1taments, deed" 0 1 settlement of marria"e. <iPerls of trust, and mortgages, are void as to creditors and su,1<sef(ue111 purcha-;e~. without notie;e, unless properly recorde~I. The erer!it:nr must IJ~ a judg!!lent creditor, and notice must ho prior to elate of Judgment he?. A Judgment creditor may he an inno<'ent purchac;e-r. Every gift, conveyance, a. signment, transfer or charire i:11ade by a debtor .. which is I!Ot upon consideration deemed Yaluable m law shall be v01d as to prior C:editors, if debtor had not then other property in the State sufflc1e.nt to pay all his indebtedness. Not on that account, however, void as to subsequent cre<lit,ors. . To gift of any goods and chattels shall he valid unless duly acknowledged, or proven and recorded , or b~ Will, or unless actual possession shall have come to and remained :,v1th the donor or some one claiming under him. Fraudulent int,ent }s a Question of fact and not of law. Conveyance shall not be adjudged raudulent merely be<'ause not for valuable consideration. If any person shall do or transact business as a merchant or trader, with the 8:ddition of the words agent, factor, company, or & Co., or words of liJ.<:e significance or import, and shall fail to disclose tbe name of bis Pri~cipal, or partner, or other person who may be interested in such busmess by a sign in letters easy to read, pla<'ed conspicuously at the pla~e where such business is transacted, or if any person shall transact busmess 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 t,he creditors of any such person, be liable for his debts, and be, in all respects, treated in favor of his creditors as bis property. Criminal Prosecution for fraud is provided. (See Conditional Sale.) Garnishment. Writ may issue: 1. Wbere writ of attachment has issued. 2. Upon affidavit that the debt is just due, and unpaid, a1;1d that de-fendant bas not, within afflant's knowledge, property in h1s possession subject to exe<'ution sufficient to satisfy such debt, and ihat the ,vrit is not sued out to injure eitht'.r the defendant or p;arnishee. · Upon judgment, when a!flant makes _affiqavit that. the qeft;nda!!t ~as not. within his knowledge, property m bis pos. ess1on withm this r_ei:ri_tory sufficient to satisfy said judgment. Proceedin~ under su~d 1v1s1on 2 requires a bond in double tbe amount of the debt, conditioned that plaintiff will prose<'ute the suit to effe<'t, and pay all damages and costs that may be adjudged a!(ainst him for wrongfully suing out the garnL hment. The proceedings are docketed and judgment rendered as if in an independent proceeding. (See Attachment.) Holidays. Legal holidays are January 1, February 14, February 2 2, July 4. October 12. Thanksgiving, May 30, December 25. Arbor Day, Labor Day every 8unday and general state ele<'tJOn day, or adny special election day that may be called by the govero?r, and any ay appointed by the president or governor. Any promissory note, b ank check biJl of exchange acceptance, or other negotiable instrument, made payable at any future period, which falls due on any or these days mentioned, shail be considered due and colle<'tible on the day following and if January 1, February 14, February 22, July 4 , October 12 December 2.5. of May 30, and Arbor Da.v, shall fall u Pon Runday,' then tbe ::v.Ionday following shall he consider_ed as a 1egaJ. holiday. ·writs of injunctions, attachments, replevm, and prohibition may be issued and served on. E Bom~stt>ad. Deed to, must be signed by husband and wife. (See xempt1ons.) Husband and Wife. All property, both real and personal, of t~e husband or wife, owned or claimed by him or her before marriag~, and that acquirect afterward by gift. devise, or descent_, as also the mcreru e, rents, issues, and profits of tho sa~e .. ball be _h1~ or her separate property. The earnings and ac<'umulat,1ons of the iv1fe and her mmor children in her custody while !-he has Jived or may live separate al!d apart from her husband, shall also be the separate propertr of the W1fe. All property acf(uired by either husband or wife durmg tbe marriage, except tbat which is acquired by gift, devise, or descent, or e.arued by the wife and her minor children while she ba.s lived or may hve separate and apart from her husband, shall be deemed the common ~!'OPerty of the hw,band and wife. and during the coverture may be ic;posed of by tbe husband only. 1arried women of the age of twenty-one years and upwards shall have the same legal ri11:hts a.s men of the age of twenty-one years and upwards, except the riitht to make chontracts binding the common property of the hushanrl and wife: and s au be subject to the same legal liabilities. ( ce Dower, Conveyance.) Injunction. Is issued, where party is entitled to relief and traint, is required of some prejudicial act; where, pending litigaion, an act is done which tends to render judgment ineffectual, and When applicant is entitled under principles of equity. Under certain conditions may be granted ex parte at chambers or by consent. Bond may be fixed by judge and approved by clerk, except to restrain collection of money judgment, when it must be double the amount of such judgment. pe~~i:::~~ef~~f~sr;:;!: Employer's Liability and Compulsory Com-  t~·   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  11  0  1853  Insurance. (See special chapter pertaining to Insurance.) Intere t. :May contract, in writing, for any rate of, not exceeding 10 per cent per annum. Any rate exceeding this ls usurious. ·when no express contract, on bond, bill, note. or Instrument of writing, or judgment, for money lent, or due on set,tlement of accounts from ?,ate of ~scertained balance, and money received for W:;e of another, mterest 1s computed at 6 per cent per annwn. Judgments. Judgments of superior courts become a lien upon all real estate of judgment debtor in the county as soon as entered and docketed. Upon filing with the clerk of the superior court a transcript of judgment from justice court or of superior court of another county the same becomes a lien on all real estate of judgment debtor in the county. No execution can be issued on any judgment after the expiration of five years from the date of its rendit.ion 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 gamhling prohibited. Liens. All persons who may labor or furnish materials in the constl;'uction or rep1,1,iring of any building, superstructure, canals, dams, mmes. or other impro, ement, or cuts cordwood, shall have a lien on the same, and in case of buildings and superstructures, on the lot of land whereon the same is situate and connected therewith. To fl. and secure the lien, the person performing labor or furnishing material must. within sixty days after the completion of such labor or the furnishing of materials, file hi!- 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 partieulars should be made, under oath and one delivered to the recorder and filed for record and the other 'rurnisbed the party owing the debt, or his agent. Laborers' and like liens are 1 0 0 f~~be~efle! cf!~~~ie~g~to ~~1l~ce~ 1i!ftgti·fi:1e~1~~~t~~~1itfe~:·ma~si be commenced. within six month after filing tbE' same in the recorder's office. In case of the levy of writ of attachment or execution, clerks, laborers, and employes of debtors have a preference claim for wages for service performed sixty days before levy of writ, not exceeding $200. upon filing notice of <'!aim unpaid with credit,or, debtor, and officer executing writ. Proprietors of hotels, boarding houses, and lodging houses have special lien on all property or baggage deposited with them by guest,s for price of guests' entertainment. Agister and liveryman have lien by statute. (See Judgment, Mortgage.) Limitations. To recover realt,y a~alnst person in peaceable and adverse possession under color of title, three yea1·s; against such po~ession where person pays taxes and has deed recorded, five years, otherwise ten years; to recover lots in city or village against person having recorded deed, and pays taxes, flve years; where party in posses'iion claims by right of possession only, two years. Personal ActionsOne year: Personal injuries, malicious prosecut,ion, false imprisonment, libel, slander. seduction, breach of promise. Actions for relief on the ground or fraud; must be brought within one year from discovery of fraud. Two years: Trespass to property, detention or conversion of personal propert,y to own use, taking and carrying away goods and chattels; and injuries to person where death ensues, to accrue from date of death. Three years: Actions for debt not In writing; on stated or open accounts other than mutual between merchants or their factors and agents; all accounts, except as between merchants and factors and agents, limitations run from date of each item of delivery. Four years : For penalties or damages on any bond to convey real e. tate; 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, administrators, or guardian, after death, removal, etc.; specific performance; to contest will after discovery of fraud; and where no provision is otherwise made. Five years: On domestic jud11:ment where execution has been issued within one year after rendition. ix 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 not.ice is to be placed on discovery; title work consisting of a shaft 4 x O x feet deep, or Its equivalent in an open cut so that mineral in place is discovered 8 feet from the surfa<'e must be done and notice recorded within three months, and annual asse<ssrnent work amounting to 100, maintained each year thereafter, until patent is ordered. Minors. ( ee Savings Banks.) l\lortga~es. Mortgage may contain power of sale. Whether it does or not, mortgage may be foreclosed by suit in superior court. Fa!lure of mortgagee t,o lawfully release a satisfied mortgage tor seven days after demand for the relea.<;e, subjects him to liability for $100 and actual damages. l\.lortgages on real estate are executed, acknowledged, and recorded as conveyances of real estate. (See Conveyances, Chattel Mortgage, Acknowledgments, Redemption.) Notary Public. In all certificates and acknowledgments the date of expiration of commission must be stated. as "commission expires-" No certificate of holding office, etc., is required when notary acts in foreign state or country. ot.es and Bills or Exchange. (See Bills and Notes.) Partnerships using fictitious name may file certificate showing names of partners with county recorders. Foreign partnerships may do so. Powers of Attorney. o special statutory provL-,ions relative to. To confess judgment must be executed subsequent to maturity of debt confessed, and must be acknowledged. To convey lands or relea e mortgages should be acknowledged as deeds, and recorded. Probate Law. (ocee avings Banks and Administration of Estates.) Protest. Liability of drawer or indorser of hill or note may be fixed by regular protest and notice. etc., according to the usages and custom of merchants. (See Bills and Notes.) Records. 'l'be superior courts of each county are courts of record. The recorder's omce in each county relates to titles of real estate and personal property, and probate record instrument therein ls notice. The minutes of the Sanitary Live Stock Board are notice of all brands and marks of live stock. Redemptions. From sheriff or judicial sales, six months, by debtors or uccessors in interest; any lien bolder may redeem within  t~:~rn:ii'it\~! i~h~~~ad~6:s ~he~ :~~ s~~~o~t~~to~~en~:t:·~1! applies to foreclosure of mortgages and trust deeds whether by court or under powers of sale. Replevin. For possession of specific personal property which bas not been seized under any process, execution or attachment against the property of tbe plaintiff. Sales. The "uniform sales law" is in force. Seals. Addition or omi . ion of seals or scrolls to instruments of writing in no way affect the force and validity of the instrument. ~fi!~~:d~nts executed by corporations must have a corporate seal  !~t~r  0   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  BANKING AND COMMERCIAL LAWS-ARKANSAS  1854  ~r~~n;J·  1 a ~~ ':ith 1~;~r~:n~Y~I:ire~o~:est~1!r~r ~:srJe~t:?~~ dEten:lant, with a member of his family over the age of sixteen years; against incorporated city, or town, or village; upon major, clerk, secretary, or treasurer; against incorporation or joint stock association, upon president, secretary, or treasurer, director or local agent 0 8 0 ~m~;e~irle cg:rirc~~!i J~:1d~g0Nic~ ~~~; ~ ~ 0 o~rci:~ri;~f;~~/~~hi~o~/f:::re ~~~~tir u';~~ domestic corporation by serving on statutory resident agent, and where there is no officer upon whom service can be made in the State. service may be had by delivering duplicate copies of summons and complaint to the secretary of the Corporation Commission, and upon foreign cor.J;>oration by delivery to statutory agent. Personal service ot summons may also be had by serving upon defendant by registered mail, as provided in statutes. u.lts. (See Actions.) Taxe . 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 Equalization; 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 count,y assessors. The assessing of value begins in February of each year. Taxes are levied on the third Monday of August in each year. The lien attaches on the first Monday of February in each year. Taxes become due not later than the third ::\Ionday in September, and become delinquent if not paid on the third Monday of December. The penalty for delinquency is 5 per cent. Within 00 days after delinquency action may be commenced in district court to foreclose delinquent real estate tax liens, and property sold as under execut,ion. Personal property tax is collected by jlistress warrant. Taxes after de),inquency draw interest at one per cent per month after action commenced to foreclose tax lien penalty of twenty-five per cent is added. There is doubt about the right to redeem from tax sales. ,varehouses. Personal property in, may be sold for unpaid charges. Transfer of Corporation Stocks. (See Corporations.) ,vm . Wills must be in writing, signed by the testator, or by someone tor him, in his presence and by his direction, and must be attested  ~:~1~~!P:,  gm~:  ~Jit  ~/~:u::i~:  ~let;~~~~~:e<;[:fobf:e:~:iigs:~: t~1~!o~~e a~°e~ft~t:,m 7se,~b801l~  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 ts his will, and that the testimony, or the substance thereof, was committed 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 wllls, the probate whereof is duly authenticated, may be probated here. Contests of wills can not be initiated after one year from date of probating.  Actions. Suits are pro ·ecuted under a reformed code of civil procedure differing from the ... ew York code chiefly in maintaining the distinction between law and equity. Administration of Estates. Executors and administrators must be residents of the tate and mu t give bond in double the Yalue of the property. Foreign executors and administrators can maintain actions in our courts. Claims are paid in the following order: First, funeral expenses; second, expenses of last illness; third, judgments which are liens on the lands of the deceased; fourth, demands presented within six months; fifth, demands presented within one year. All demands not presented in one year are barred. Demands must be authenticated by an affidavit to the effect that nothing has })een paid or delivered toward their satisfaction except what is credited thereon, and that the sum demanded, naming it, is justly due. Demands mu t 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. otes and debts secured by mortgages or deeds of trust must be probated as any other claim, and if not presented to the executor or administrator within one year after appointment, are barred by the statute of non-claim of one year. ·when the note or debt is barred this carries with it a barring of the mortgage or deed of tru t 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 tate before a judge, mayor, notary public, justice of the peace or commissioner for this State. Aliens may hold and transmit property in all respects as residents. Arbitration. Controversies may be submitted to arbitration , and the award of the arbitrators is filed in court, and is subject to review on equitable principles only, and not for matters of form. \Vhen not set aside they are entered of record and become the judgment or decree of the court. Arrest. Defendants may be arrested for debt only when the plaintifl.' flies an affidavit charging that the debt was fraudulently contracted; 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 defraud his creditors, has concealed or removed from the tate his property or so much thereof that the process of the court after judgment can not be executed; or that the defendant has money or securities in the possession of himself or of others for his use, and is about to depart from the tate not leaving sufficient property therein to satisfy the plaintifl.''s claim. Bond must be given conditioned to pay the defendant all damages that he may sustain if wrongfully arrested. Assignn-ients for the Benefit of Creditors may be general or partial, with or without preferences, and where all the debtor's property 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 proc eds to the creditors 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 ::!Yl:;fd!ri~ t~~~:i~~~~~n~ifu;~~;tt:}tihe/!~c~!tu~~e~h;~ proceeds are fistributed equally among all the creditors. Assignees close up their accounts under the direction of the chancery courts. Corporations can not prefer creditors. Attachments may be sued out where the defendant ls a foreign corporation or non-resident, or has been absent from the State four months, or has left the State with intent to d fraud hi creditors, or has left the county of his re idence to avoid the ervice of ummons, or conceals himself so that summons can not be sen·ed 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, conveyed or otherwise disposed of his property, or suffered it to be sold with the fraudulent intent to cheat. hinder, or delay hi creditors, or is about o to do. It is obtained by fll~ng an affidavit stating the nature of the plaintiff's claim. that it is just, its amount and the existence of the ground, and by giving bond conditioned to pay all damages the defendant may sustain if the attachment is wTongfully sued out. The defendant is allowed to traver e the attachment, and the affidavit  trih!r:~~~~~r i:\Tfsdo~eS.11t~i~~1e~~~~t ~!~hh~~: l';~~ss~i:it of damages upon the bond in the same suit. Persons claiming the attached property may interplead in the same action . Attachments may be sued out before the debt,.is due where the defendant has sold, conveyed, or otherwise disposed of his property, or permitted it to be sold with the fradulent intent to cheat, hinder or delay his creditors, or is so to do, or is about to remove hL property, or a material part thereof, out of the tate with the intent of cheating, hindering or delaying his creditors. Bank . The banlcing business is controlled by a state bank department under the direction of a bank commissioner. Any five or more persons, the majority of whom must be resident of this tate, may apply to the commi ioner to be incorporated and the shares of capital stock shall be not less than S25 nor more than 100 each; application may also be made by an individual or firm and hall then be in such form as the commissioner may prescribe and such individual or firm shall adopt a name which will show that it i not incorporated; all property owned by such bank hall be held in the name of the bank and not in the name of the individuals composing the firm and all  SYNOPSIS OF  THE LAWS OF ARKANSAS RELATING TO  BANKING AND COMMERCIAL USAGES. Revised by E rnuso~. DONHAM & SHEPHERD, Attorneys at Law, Little Rock. (See Card in Attorneys' List.) Accounts verified by the plaint1ft as just and correct prove themselves in suits thereon unless denied under oath. Acknowledgments may be taken within the State before the supreme or circuit court. or a judge thereof, or clerk of any court of 1 0 ii~~~!~~rifa~ie lo~ieiia:in~o~a~[J~~l~~~ts~r~i~~ ioJ:1t~ notary pubhc. mayor having a seal, or commissioner of Arkansas; without the United tates before any court having a seal. mayor of a city having a seal, United tates consul. or any otflcer authorized by the laws of such country to probate conveyances of real estate, proyfded he has a ea.I.  ui~Y~ci  ~~filto~fof~~chui~di~~tt11e o~ati1~a~~tir:iffl!trinr~se~r~iu~;~Jt h~~ been paid; upon the cleath of an individual banker his widow is not endowed of any property of the bank except such as remains after the payment of all depo ·itors and other cr"ditors. ~ o corporation, firm or indiYidual 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 commil- ·ioner. Fees at the same rate must be paid on each increase of the capital stock and for each amendment or supplement to the articles of agreement, except for an increase of capital stock, there shall he paid an additional fee of 10. There is also due the commissioner an annual fee of 15 in addition to a payment of fifty cents on each 1,000 of the bank's capital stock. The fully paid-up capital stock of any bank organized after the passage of the banking act ( 1arch, 1913) cannot be les than 10,000 in cities having less than 2,500 inhabitants, not less than . 20,000 in cities having more than 2,500 and less than 5,000 inhabitants, not less than $25,000 in cities more than 5,000 and less than 10,000 inhabitants and not le· than .. 50.000 in cities having more than 10,000 inhabitants. The banking- act does not apply to trust companies whose minimum capital stock is 30,000. The afl'airs of an incorporated bank are controlled by a board of directors chosen fr m the stockholders; each director mu. t 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 re erve as much a 15 per cent of the ag1,,rregate of its deposits. Stoc1·holders are llahle for tile debts of the hank in the sum of the par value of their .·tock in addition to the amount inve ted in such stock. (..\.ct ~o. 113, Acts of 1913, page 462). Bills. Exchange and Prontls ory otcs. The Negotiable Instruments Law went into effect on April 22, 1913.  n  sJ:  d 0  Pl  $' 0  bi cc  tr be I&  es sli of fo  'IV'  or  co  a.t  SU  BANKING AND COMMERCIAL LAWS-ARKANSAS 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 oinn another paper than the bill, it shall not bind the acceptor except favor of the person to whom such acceptance shall have been ~hown, and who, on the faith thereof, shall have received the bill •Or a valuable consideration. Every holder of a bill presenting itth for acceptance may require an acceptance on the bill; otherwise otwithstanding the e bill can be prote ted for non-acceptance. above provisions any one promising to accept a bill i • liable to any Person to whom a promise to accept it may have been made; and 'f~o, on the faith of the promise, has drawn and negotiated the bill. .Q..UY person on whom a bill is drawn, a.nd to whom the . ame may bt e delivered for acceptance, who shall destroy it or refu e within wenty-four hours or such time as the bolder may allow to return tbe bill accepted or not accepted to the holder. shall be deemed to h ave accepted the same. \Vhen the bills become due on any holiday, they are payable the next succeeding busines." day. Instruments falling due (or becoming payable on) Saturday are to be presented for payment on the next succeeding business day; except that insturments payable on demand may be presented for payment before 12 o'clock on Saturday if it is not a holiday. The following damages are allowed where a bill is protested for non-acceptance or non-payment: If the bill is drawn on any place in this tate, ~Per cent; if payable in the states of Alabama, Louisiana, '.Ii.. issippi, ennessee, Kentucky, Ohio, Indiana, Illinois, or Missouri, or any_ point on _the Ohio River 4 per cent; if drawn on any other place m the U mted States, 5 per cent; if beyond the limits of the United t!lte;'>, 10_Per cent. If the bill be drawn by any person at any place w1~hm this tate, at the rate of 2 per cent; if drawn by anyl}erson at any Place without this State but within the limits of the nited States, 6 Per cent; if drawn by 'any person without the limits of the United States, 10 per cent. The holder of any bill prote ted for n~m-payment or non-acceptance is entitled to costs of protest and interest at the rate of 10 per cent per annwn on the amount of the bill from date of protest. The term Bill of Exchange includes all draft,.<, or orders drawn by one person on another for the payment of a sum of ~oney specified therein. Bills and notes given for patented machines, uuplements, substance or instruments of any kind, given to any Cittz~n of this State are not commercial paper, unless executed on a Printed form, and• showing for what consideration they were exe~gited. This applies to patent rights and rights to use any patented ng of any kind. But this provision does not apply to merchants lnud dealers who sell patented things in the usual course of business. blank assignments are taken to have been made on uch day as i~all be most to the advantage of the defendant. In other respects e general rules of commercial law apply. Bllls or Lading. ( ee Warehouse Receipts and Bills of Lading.) Collaterals are governed by the law merchant. .,.. Contracts touching ~ommercial matters are governed by the law ~erchant. knConveyances may be either witne ed by two witnesses or acowledged. (See Acknowledgments.) If witne, ed they are proved ~~he oath of two witne . es, and are then entitled to r cord a though th owledged. Dower can be relinquished only by the wife joining 6 rusband. The wife may convey property acquired since October 30 or 'b 8?4, by deed as a single per on without her husband joining her, Y J0!ning with him in the form above. The wife may convey 1.>y Power of attorney a.nd make executory contracts of ale. Deeds Which have been recorded and are properly acknowledged prove them80p/ves.. Any substantial departure from the form of acknowledgments . escr1bed by the statute, such as the omission of the words "con~d-1ation" or "purposes," makes 'the acknowledgment and record t.01 : but statutes have been passed from time to time curing defecl~ve acknowledgments previously made. Such a statute was paJ ed ary~ti:- fi_new Curative Act was passed and approved Febru19  B Oinorporatlons are organized only under general incorporation laws. US ess corporations must consist of not less than three persons who :rail elect a board of directors. The president and secretary are to be ected by the board and the president must be a member of it. The ~ecretary and treasurer must reside and keep the books of the comt~Y Wi~hin the State. The articles of association mtL<,t be signed by e .President and a majority of the directors, and must be accomPani!'ld by a certificate signed in a like manner and sworn to by the 0 s1dent and a majority of the directors, setting forth the purpose.of ~dcorporation, the amount of its capital stock, the amount actually Eai in, the names of its stockholders and the number of shares held thy each respectively and the articles and certificate must be filed in e office of the cle~k of the county in which the corporation is to transact business and then with the clerk's endorsement in the office ~f the secretary of Stat . The ·tock can be transferred only upon the ompany's books and a record of the transfer has to be deposited with }he county clerk in order to be valid as against creditors of the transsrokhr. The corporation has a lien on its stock for debts due from the oc olders. The president and secretary are required to fl.le with r;:e county clerk an annual statement of its financial condition. and case of a failure to do so become liable for its debts. It the direcfJ>rs declare a dividend when the corporation is insolvent they become for all the corporate debts. Any corporation which is insolvent ;bhle 0 may be wound up on the suit or any !)S ceased to do btL'-ine creditor or tockholder by a decree of the chancery court. Preferhares of stock are in ~nces by insolvent corporations are forbidden. enommation of 25 or 100. Before any corporations, foreign or ~mestic, can do any bw;inoss in this tate. an annual franchise tax USt be paid to the State Treasurer. to-wit: One-flfteenth of one fter cent each year upon the proport-ion of the outstanding capital 0 <:k of the corporation represented by property owned and used in b US1ness transacted in this tate. Every corporation doing business for profit and organized as a mutual life, tlre, accident, surety, health or other insurance company ~tllhaving a capital stock and not organized for charitable purposes a pay an annual tax of $100. 00. d ~l foreign or domestic insurance companies, of whatsoever nature, fm g business in this State and having au outstanding capital stock 0 1 {!Ss than $500 000 shall pay an annual tax of .• 100; and such comiig6es having a capital stock of'S50 ,000 or more an annual tax of other 1~~~;_ax being in lieu of the ta on the capital as provided in b Every investment company, foreign or domestic, except ational coanks and corporation not organized for profit, incorporated or uninrporated, .which shall sell or negotiate the sale of any stock'-, contracdsts, bonds or other securities of any kind or character other than of the United States, or of some municipality authorized to isson ue bonds of the State. and notes secured by mortgages 011 real !~ta te located in the State, or sell building stock or loan inv stments, a 11~ file in the office of the Ilank ommissioner. together with a fee if v ._oo, in addition to the fees required of all inc-orporations, the ~il?h~g documents: A stateme_nt showing in detail tho plan upon 1 or it~~~ p~~~~:e~~str~~w~Iit i~~~ioiesa tcg~a1tea~!i~gnt~actt ignft: contributors; a statement showing name and location of company ~dhar:,. itemized account of its actual financial condition and any other c mformation which the Bank Comm.is ioner may require; if  f~  sin es an  ts  ts.  ID  or he d  a  he cb le   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1855  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 co_rporation it shaJJ file a copy of its articles of incorporation, cons~1tut1~n. and by-laws and all other papers pertaining to its organizat10n; 1f 1t be or~anized under the Jaws 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 incorporat~d. _and also a copy of its charter, articles of incorporation. ~~~~~ut1on and by-laws and other papers pertaining to its organtThe Bank Commissioner hall 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' ~ay, within twent_Y da:ys, !1-Ppeal to.the chancery <:ourt of any county m ~he state where its prmc1pal office is located or prmcipal agent resides. If 1t be found that the refusal or revocation was justified the co t sf!'l~fe~ paid by the company; otherwise by the state as provided by 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. . Forei~n Corporations shall, before doing busine s in the State, by its president Ole 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 8tate upon whom service of process can be made. 'rhe certificate shall state the principal place of bu.·iness of the corporation· and servicf> on the agent shall bind it. The corporation mu t al o a certified copy of its charter together with a statement of its as ets and liabilities, and the amount of its capit,al employed in this state in the office of the secretary of State, and in the omce of the county where it opens an office, and must pay same fees as are required of home corporations. It must also tile a resolution of its board of ~~!~si:gtt~t}e~e~:i rA~e;!~~:t;~~sgr1tit~;~~!1~ei;:1!:egg~cf~~~~1~e~n court or removes a suit there without consent of its adversary its right to do business is revoked. Doing business here without compliance witb the Jaw subjects the corporation to a fine of not less then $1,000. These r quirements do not apply to railroad or telegraph companies that had built lines in the tate prior to Feb. 16, 1 90. It any corporation •fails to appoint an agent, service of process on the auditor of State shall bind it. ~ •o foreign corporation can sue on any contract made in this tate until these provisions are complied with. Courts. The supreme court is held at Little Rock and has jurisdiction of appeals from the circuit and chancery courts. In all countie eparate courts of chancery have been established. The ~ tates 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 jm;tices' courts have jurisdiction of matters or contract not exceeding 300, aud matters of tort not exceecting 100. Two terms of the circuit and chancery court and four of tho county and probate courts are held in each county per year. Deed . ( ee Acknowledgments and onveyances.) 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 tate, judge. justic of the peace, mayor, notary public, or person commi ioned by the court or by consent of parties . Descents and Di tributions. Property dpscencls 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 Uneal ance 'tor or his  file  t?ft  ~~~ci~f;~t ~nei~!rft~~~lf~~:1ff!sino~~!f~~t~e sii:gtr:~ni::~rer;:; if legitimate. If the parents of illegitimate children subsequently intermarry and the father recognizes them as his, they shall be deemed ~~g~~~~°iid ti:r:~~f~~1ri~st~:tt~rile mg;r!ltft~e~ ~~~~i~:in1i goes to the blood of the ancestor from whom it was derived. Relations 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 per onal e tate absolutely and one-third of the real ed.ate 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, 01· one-third absolutely as against creditor . If it is an ancestral e tate. she takes one-half for life against heirs and one-third for life against creditor:<. Execution from the circuit court are returnable in sixty days, those from justices' courts within thirty. They may be stayed for six months by giving bond. They are a lien on the property of the defendant in the county from the time they come to the officers' hands. The officer before levying on personal property, the title to which is doubtful, may require the plaintifl' to give him an indemnifying bond, and then suit must be brought by the claimant upon the bond. The defendant and other judgment creditors have one vear in which to r deem from the sale of real estate. In case the w1:it is returned nulla bona the plaintiff may proce d by biJI of di. covary against the defendant and examine him on oath, ancl enforce a surrender of concealed property by imprisonment. Exemption'!. Unmarried persons are entitled to 200 and man'ied person and heads of families to $500 in selected articles of personal property as exempt again t debts by contract. Persons who are married or heads of families are entitled to a homestead a. again t all debts, except the purchase-money, specinc lien.-. laborers' and mechanics· liens, taxes and clainL'> for trw t fund. converted. The home tead 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 goos to the widow and minor children after the husband's doa1,h. The ho~estead can only be conYeyecl by deed in which tbe wife joins and which is acknowledged by her, and if the thusband neglects to claim the homestead the wife may do so. Fraud. _The _English statute of fraudulent comeyances has been re-enacted m this State. Garnishments may be sued out pending suit upon giving bond in double the amount garni ·bed, or after judgment "ithout bond. ~olldays. The following are et a1>art a11d designat d as lega ew Year's Day (Janholidays: Christmas Day (December 23th); uary 1st); July I~ourth; Thanksgiving Day (last Thw·sday in November); W~shington's birthday (February 22nd); Labor Day (first Monday m eptember); General Robt. E. Lee's bithrday (January 19th); AU general biennial election days; Birthdays, Jefl'crson Davls, Pres1d nt of the C'onfederate States of America (.Tune 3rd); Arbor Day (fir ·t Sat nrday m :M arch, a pocial day). Wh n bills become due on an,y oi: these dayS, they are payable the next busine. day, October ~2th 1s C'olumbus Day (a public holiday, but not affecting commercial paper. or the execution of written instruments nor ' interf ring with judicial proceedings). 1  'f:   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  18S6  BANKING AND COMMERCIAL LAWS-ARKANSAS  ---------------~--  ----nushand nnd Wife. (See Married Women.) lnJuni·llons may be Issued hy <'ircuil judges, chanrellors, or the juch?e ur any court In which suit 1,.. brought. The per,.;on applying for the injurwtion must ghe bond as the eom•1 or judge may direct. lnl<Oh'eIH'". The :-:!upreme <'ou ·t ha, hPld that t.he Federal Bankruptcy .\<"t has '-USpend,•d the Rtate insolvency laws. Interest. The legal rate of int Prest i-.; Ii per cent, hut parties m11;y contract Jn writing for not e ·cee<lirw 10 per c-rnt. lntPrest exacted m excess of 10 per cent forfeits thr dPbt. 1.n compurirw the Interest commis. ion<: paid to the airE'm of the lende- are countf!d a.c, interest Whore usury i:- ,·barged the horrower n,ay go Into equity and have the debt and seC'11ritie-; can,·elled without tendPring the amount lawfully due. Judgmrnts hrar the same rate of interest as the ol)ligatioo sued on. Judgments against <"ount ieo; bear no interest. Judgment (~ee interest) are lif'n~ upon the real ei:;tate of ~he debtor in the county where rendereu for thrf'f' years only. The hen may be renewed and continut>d for three years by sdre faC'ias. Judgments of the United States ancl other courts <·an he made liens on lands in counties other than that where they are rPndered hy flling a rertifled copy in the office of the circuit, derk. A jutlgment sur,·ives for ten years. Jurisdiction. (See <'ourti-;.) Liens. ).1echanics, builders, artisans, laborers, and others doing any work upon or furnishinii; any maLerial for any buildin11: or erection under any contract with the owner or his agent. contractor or subcontractor, 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 c·ountry: if in a city the lot or land upon which the erection is situated. Hotel keepers have lien on baggage and personal effects of guests. Liverymen have lien on all stock and property left in their care. Limitations. Suits for the poss s.o;ion of real estate must he brought within seven years. saving to minors and lunatic. three years after their disabilities are removed. Actions for rec·o\'ery of lands sold at judicial sales must be brought within fh'e year-,, sa, ing to minors and lunatics three years after removal of disahilit ies. Actions for the recove1·y of lands held under ta'< tit le must be hrou~ht In two years. Actions for forcible entry and detainer. on contra('ts not in ,vritlng, for trespass and for libel, within three years. Actions for criminal conversation, assault and battery, fal-.;e imprisonment. and slander, within one year. Actions on written im=truments. within five years: on judgments, wiLhin ten years: on bonds of e erutori:: and administrators, within eight years. In all cases, except al'1 ion,:; for tho recovery of lands, minors and lunatics have, after remo\'al of their di. ability, the statutory period in which to i::ue. \'erhal promises or acknowledgments do not take a claim out of tho statute. One year is allowed after dismi. sal of a suit in which to he~in a new action. No person can avail himself of a disability which did not exist at the time the right of act.ion accrued. No endorsement of payment made by the payee or on his behalf is sufficient proof to take the case out of the statute. Limited Partner hip may consist of one or more general. and one or more special partners. The latter of wr.om shall constitute in ca.'!h a specific amount as his ,:;hare of the capital, beyond which he is not liable for firm debt,s. 'fhr,se forming such partnership must make and file in oillce of circuit clerk of county, and principal place of business. a certificate showing name of firm. names of parLner;;. distinguishing between general and special, nature of business, amount of capital contributed by ea.ch partner, period of commencement and torminat,ion of partnership. Business to be co11ducted by general partners and suits brought by or against them. l\1arrlecl Women. The property, rPal and personal, of married women remain· their separate estate as long as they choo. e. and may be devised or conveyed without tho husband's assent, and is not sul>ject to his debts. If she dies without making any dispo ·ition of her real estate, he is entitled to curtcsy. She may carry on any business or perform any services on her own account, and her earning.,; are hers, and she may sue alone in respect of her separate property. She can bind herself by contract only in reference to her separate estate or business. She can not enter into partner. hip with her husband. If she does not file a schedule of her personal property, the burden of proof is on hor to show that it is hers. Mine/I an<l !\-lining. Under control of commissioner of mines. All documents relating to mines rou. t be recorded in the rococder's oillce of the county; and miner· of the county may make by-Jaws regarding the time, manner, and amount of work necessary to hold claims and other rules and regulations not in conflict with law. Extensive provisions are made for the protection of the health and sarety of miners. (Acts 1 93, p. 213.) Miners have a lien on the output, machinery, and tools used to secure payment for work done. Three years' possession of a mille, with work required by law, gives possessory right. 1\-Iortgages are not liens as against any one, though such per on has actual notice of their existence, until they are acknowledged in 1 ~~~fte~vl~~ert11c~r1anct111~~~a::a ~:rt~~;;~a~i personal property in the county of tbe mortgagor's residence. If the mortgagor of per onality is a non-rcsillent the mortgage is record d In the county where the property is ituated. Sales under mort~ages and deeds of tru. t can be made only after appraisement, and tho property must bring two-thirds of the appraised value. In case it ls offered and fails to bring the required amount real est.ate may he offered again after one year and personal propert.y after slxt y days, and is then sold for what it will bring. The mortga~or of real estate has one year from the elate of sale in which to redeem. In action to foreclose a mortgai;e, it is sufficient defence that the debt (which it recites), is barred by. tatute of limitations. Chattel Mortgages may be acknowledged and filed a.'! other mortgages, or they may be endorsed "This instrument is to he filed b~t- not recorded," signed by the mortga~ee. and may then he filed m the recorder's ofllce with the same effect as though recorded. :\.Tortgages of personal property reserving in the mortgagor the power of disposition are fraudulent. Mortgages and Deeds of Trw,t may be enforced by foreclosw·e at any time within tho period prescribed by law for foreclo, ing mortgage or deed of trust so far as the property mentioned and described in such mortgage or deed of trust is concerned, but no claim or debt against the e tate of a decea..,ed person shall be probated against such estate whether securf'd by mortgage or deed of trust or not except within tbe time prescribed by law for probating claims against said estate. Power .. ot Attorney. Lands may be conveyed by power of attorney, which is acknowledged as deeds and recorded in the county where the lands lie. Probate Law. ( ee Administration of Estates.) Protests. (See Bills of Exchange and Promissory "ote ·.) Records. (, ee Acknowledgments, Conveyance , l\Iortgages, Chattel Mortgages, and Powers of Attorney.) Redemption. (See Executions and Mortgages.) Replevtn. Tbe plaintiff in replevin may Ole an affidavit describing the property, stating its value and tbe amount of damages he expects  to recover, his title, that the property is wrongfully detained by _the defendant that it has not been taken for a tax or under process agamst plaintiff. and that his cause of action has accrued within three years, and upon giving bond in double its value, the property shall be takeD from the defendant and given to the plaintiff pending the suit. unless the defendant within two days after it is taken gives a cro s-bond. Revision. The last revision of the statutes was in 1904. Taxes are a lien between vendor and purcha..,er from the first Monday in December. They are payable between the first Monday in January and the 10th of April. In case of non-pa)'.'m~nt a penalty of 2fl per cent is added. Lands may be redeemed w1~hm two yea_rs by paying taxes, penalty, _and costs, with 10 per cent wt~r~st. Mmors, lunn.til's, and persons m confinement may redeem ~ithm two years after their disability is removed. ( ee also Corporations.) Tf'stimony. ( ee Evidence.) Tran11fer of Corporation Stock. ( ee Corporations.) Tru ➔ t Companies must have a paid-up capital of $50,000, and in countiec, with a population exceeding 50,000, they must h~ve a subscrihe<I capital of not le. s than $100,000. They may exerc1Se all the power. commonly conferred on such companies. ,i·ave . No assi,,.nment or order of wages to be earned in the future to secure a loan of less than 200, shall be valid against any employer or the person making such a sigrunent or order, until such ru si;i:nment or order is accepted in writing by the employer and the said assignment or order and the acceptance of same has been tiled with the recorder of the county where the party making the a.ssignment or order resides, if a rei:;ident of the state whore he is employed. N'o assignment or order of wages to he earned in the future shall be valid when made by a married man unless the written consent of his wife to making such an a..-;sii,;nment or order for wages shall be attached. Warehou~e R<-cei1>ts and Rills of Ladin~ shall not be given except where the rommodities mentioned are received on the premises, and are under the contrill of the warehow,Pman at the time of its issuance. No warehouseman shall sell. encumber, hip, or remove any such commodity for which a reC'eipt has been given ~vi_tbout the written assent of the hr1lder of the re<'eipt. The same provisions cover owners and agents of boats and ye-.;sels. All warehouse receipts and bills of Jaclin~ arc made negotiable by written endorsement and deliYering the samP. ru hills of exchange and promi. ,ory note . and no printed or wri11en ronditions, clauses, or provisions inserted in or at tachPd t,o them shall in any way limit their negotiability or impair the ril-{hts and duties of the parties thereto, or peri:;ons jntere:-ted tberE'in, or such conditions shall be void. ,varehouse receipts given by any warehouseman or other person for goods and otl_icr commodiliei:; depo·ited. and all billi; of lading iz;iYen by any carrier, boat, vesst•I, railroad, tran portation, or transfer company may be transferred by endorsement and delivery; and I.he transferee shall be deemed to be the owner of such commodities !;o far as to give validity to any pledge, lien, or tran. fer given, made, or created thereby; and no property so stored or deposited s~all be deliyered exc·~pt on surrender and cancellation of such receipts and biU.· of ladm11:. unless uch receipts and bills of lading have the 1rnrds '_'not negotiable" plainly written or stamped on their face. A carrier may ho,':ever deliver to shipper or con. ignee goods without presentation of bill of lading upon receiving from Stt('h shipper or consignee bond in double the value of the goods conditioned for delivery to the carrier thereafter the original bill of lading (acts 1907). Penalties are denounced against any warehouseman or other person who ·ball violate _any of the provisions of this statute. So much of the act as forbids the delivery of property except the surrender and cancellation of_ the original receipt or bill of lading shall not apply to property replevmed or removed by operation of Jaw. ,vms. A will must be subscribed by the testator or by some person for him at his request in the presence of two attesting witnesses, and he must acknowledge it to be his will to each of them. He must declare at the time of his subscription or acknowledgment to the witnesses that the instrument is his will and testament. The witnesses must sign their name. at the end of the will as witnesses at the request of the testator. If, however, the entire will is in the hand-wr1tin(l: of the testator it need not be attested, but may be proved by three witnesses familiar' with the hand-writing. uch will, howeYer, can not be p~eaded i_n bar of an attest<;~ will. Wills _are r~voked by marriage and birth of 1ssue unlei:;s prov1s1on for such 1ssue 1s made by settlement. or is provided for in the will. The will of an unmarried woman io revoked by her marriage. Afterborn children not mentioned in the will take their regular di tributive share. If the testator fails to mention in his w111 any child, or its legal representatives. living at the time of executing the will. he shall, as to such child, or its representatives, be deemed to have died intestate, and such child, or its representatives, ls entitled to its regular share.  ;.1;: ~~~:te1st~ ~i~  a.  Pe de Ar in go St, foe in  an  Ur  in  die  in  1857  BANKING AND COMMERCIAL LAWS-CALIFORNIA SYNOPSIS OF  THE LAWS OF CALIFORNIA RELATING TO  BANKING AND COMMERCIAL USAGES. Revised by HENRY G. W. DINKELSPIE!' Attorney and Counselor at Law,, S!!-n Francisco. (See Card in Attorneys List.) Accounts. An account is assignable, and t1:te ass!gnee may maintain an action thereon, although the account 1s assigned merely for collection. An action to recover a balance due upon a mutu!!-1 current and open account or upon an open book account ls _barred within four Years. The cause of action on a mutual account 1s deemed to have accrued from the date of the last item. In the case of_ an open book account, each item becomes outlawed four years after its date. (See Actions and Limitations.) Acknowledgments. Before an instrument can be r_ecor?ed, f~s execution must be acknowledged by the person executmg it, or if executed by a corporation, by its president or s~cretary, or other Person executing the same on behalf of t_he corpor~t1on , or proved by a subscribing witness, or by judgment m an act1~n brought for the Purpose. '£he proof or acknowledgment of ap. 11;1strument may be made at any place within the State before a Justice or. clerk of ~he supreme court, and within the city, county, _or township for which the officer was appointed or elected, before either: (1) A Cl!Jr~ of ~ court of record; (2) a county recorder; (3) a court comm1SS1oner, (4) a notary public: (5) a justice of the peace. The ackno-w:Ied&"rnent of an instrument must not be ta.ken, unless the officer t_aking it knows or has satisfactory evidence, on the oath or aillrmat1on. of a credible witness that the person making such acknowledgment 1S th~ individual who is described in, and who executed the instrument, or if executed by a corporation that the person making s~ch acknowledgment is the president or secretary of such corJ?oration, or _otJ?.er Person who executed it on its behalf. Officers takmg and certifym~ acknowledgments or proof of instruments for_ ree:ord, must a~thent~cate their certificates by affixing thereto their signatures, also their seals of o1Ilce if by the laws of the State or country where the acknowledgment or proof is taken, or by authority of which they are acung they are required to have official seals. Acknowledgments taken 'out of this State to be used within th~s State may be taken before a notary public, a commissioner appomted b;v the _governor of_ this State, a judge, or clerk of a court of record, or m foreign c~untr1es a minister, consul, vice-consul, or consular agent o( the Umted States, or a judge of a court of record or a notary public. Actions. All civil actions are commenced by filing a complaint, Upon which plaintiff may, at any time within one year thereafter, have a summons issued. There is but one form of act10n and the op.ly Plfladings allowed on the part of the plaintiff are: 1. The complaint. 2. 'l'he demurrer to the answer. 3. The demurrer to the cross-complaint. 4. The answer to tbe cross-complaint, .and on the part of the defendant: 1. The demurrer to the complamt. 2. The answer. 3. The cross-complaint.. 4. The demurrer to the answer to the cross-complaint. Administration of Estates. Upon the admissio? of a will to Probate, letters testamentary al'e granted by th~ superior court t? ~he executor named in the will, unless he be dead or ~ncapable or unw~~g to act in which case letters testamentary are issued to an adm1mstrator' with the will annexed, appointed by said court. In case ~f intestacy, letters of administ.ration are issued to the bona fide r:es1dent of the state entitled thereto, in the following order: 1. Relatives of whole blood entitled to administer in preference to those of half blood. Surviving husband or wife, or some competent person named by either. 2. Children. 3. Father or moth~r. 4. Brothery;. 5. 8!8ters. 6. Grandchildren. 7. Next of kin entitled to share m th~ distribution of the estate. 8. Public administrator. . 9. Cr:editors. 10. Any person legally competent. Where tbe person entitled to administration is a minor or incompetent. letters must be granted to his 9r her guardian, or to ai:iy other person entitled to lett~rs of administration in the discretion of the court.. _Bonds for faithful Performance of duty are required of an . admm1strator_ aT)d of an executor unless waived by the will. Notice must be given by the ~dministrator or executor by publication to all th~ creditors to C(?me m and prove their claims within ten months after its first publication. When the estate exceeds in value the sum o~ ten !11:ousand dollars, and four months when it does not. 11. Ola.nus ansmg on contract Whether due or not due or contingent, and funeral expenses must ):le Presented within t,ime prescribed by notice to cr«':d1tors, other_w1~e they are forever barred, unless it appears by affidavit of the cred1to!s that such creditor was outside of the State an<;) e:onseque?tlY ~1d D?t receive notice. Unless claim is approved w1th~11 the time p10v1ded for in the notice it is barred, unless the claunant can prove to the satisfaction of the court that he had no notice by reason of being out of the State, in which case the claim may be present~d ?t any time before a decree of distribution is _eJ?tered. When a_cla1m ls rejected either by the executor or adip.mistrator or the Jt!dg_e, the holder must bring suit in the appropriate court thereon w1th!n three months after tbe date of its rejection. if it be th n due or withm two months after it becomes due, otherwise the claim is forever barred. No claim can be allowed which ls barre_d ~Y the Statute_ of Limitations. Claims against the estate are paid m the fo_llowmg order: 1. Funeral expenses. 2. 'l'he expenses of th_e last sickness. 3. Debts having preference by the laws ~f t]?.e pm_ted States. 4. Judgment rendered against tbe decedent m his llfet1me, and mortgages and other liens in the order of their date; and 5, all other demands against the estate. Affidavits. An affidavit to be used before any court, ju<;)ge, or Officer of this State may be taken before any oillc~r authorized to administer oaths. In this State every court, ~very Judge or clerk of' any court, every justice and every no~ary pubhc_. and every o~cer 01 Person authorized to take testimony m any action or proceedmg, or decide upon evidence has power to administer oaths and affirmations. An atndavit taken in another State of the United States to be used in this State may be taken before a commissioner appointed by the govemor of this State to take affidavits and depositions in such other ~tate, or before any notary public in another State, or bef!)re any ~Udge or clerk of a court of record having a seal. An affidavit taken 1D 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 soal, 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 ellgible to citizenship may acquire and pos ess land i n accordance with the terlllS of any existing treaty with any foreign   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  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 agricultural purposes for three years. 4. When it appears in any probate proceedings wherein any alien is an heir that be could take real property except for the provision of 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 final judgment the lands shall escheat to the State. 6. When it appears that any alien or aliens are holding any leasehold interests in violation of the above provisions the attorney-general shall likewise institute forfeiture proceedings, and such leasehold interest or !ts monetary value together with the costs of such forfeiture proceedings shall escheat to the State. No non-resident alien can take by !mccession 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 flied by the clerk. If the submission 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 awa1·d must be in ·w riting, 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 Arbitration 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 fiduciary capacity; also in actions to recover the po-;session of personal property where it hac; been concealed or removed or disposed of to preYent its being found; also in cases where the defendant ba been guilty of a fraud in contracting the debt or obligation for which action is brought· or in concealing or disposing of property; also when the defendant 'has removed or disposed of his property or is about to do so with intent to defraud creditor·s. Bail given upon arrost is liable upon judgment secured. Assignments for tho Benefit of Creditors. Assignments for the benefit of credito!'s must bo written and acknowledged by the assignor or his agent authorized thereto in writing and recorded, and must be made to the sherilf 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 attachment lien upon real property continues for three years and may be extended for two years more. Tbe clel'k of the court must issue the writ of attachment upon l'ecoiving an aflldavit by or on behalf of the plaintifi' showing, (1) That the defendant is indebted to t,he plaintiir, specifying the amount of such indebtedness over and above all legal set-offs or counter-claims, upon a contract, express or implied, for the direct payment of money, and that such contract was made or is payable m t.llis state, and that the payment of the same has not been secured by any mortgage or lien upon real or personal property, or any pledge of personal property, or, If originally so secured, that such security has, without any act of plaintiff, or the person to whom the security was given become, valueles ; or (2) That the defendant is a non-resident of the State, and is indebted to plaintiff, specifying the amount of such indebt,edness over and aboYe 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 con. equence of tbe negligence, fraud or other wrongful act of the defendant, and that the defendant is a non-resident of the tate; and (4) 'l'hat the attachment is not sought. nor is the action prosecut,ed, to hinder, delay, or defraud any creditor of defendant. Before issuing the writ, the clerk must require a written undertaldng on the part of the plaintill, 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 rea. on of the attachment, not exceeding the sum specified in the undertaking. Banks, Savings. A savings bank may purchase or hold; (1) Real Estate, furniture, flxtures, etc., in which its business may be conducted. (2) Property mortgaged or held in trust on account of 0  0  0  ~,t~~°t~~:  ~~~o~itiobee~t/nelt~tc c~)s~)i:ct!>ui: rn~ere!t t~~~in~ of the United 8tates (2) bonds of the State. (3) Bonds of any state which ha not defaulted in payment of either principal or interest within five y · ars. (4) Bonds of any county, city or town or school, road, sewer, drainage, reclamation, protective or sanitary district, organized under the laws of the state, t,o limited amount. (5) Bonds of any county, city or town of any state of a population of more than 200,000 and an entire bonded indebtedness less than fifteen per cent of the taxable property, wher·e interest or principal has not been defaulted within five years. (6) Bonds of railroads organized under tbe state and operating exclusively therein or of railroads operating at least 500 miles of standard gauge tract, or of any railroad corff p';~!1~e~~h~~efn ~fc~1~e~hebKeihe~1~~~~c;~~~ as required by st.atute. (7) Bonds of Public Utility corporations, incorporated under the laws of the State of California, provided t,he properties ancl earnings, et.c .. a1·e as required by statute. (8) Notes or bonds secured by first lien on real estate to sixty per cent of its market value. (9) Collateral trust bonds or notes secured hy deposit of authorized bonds fifteen percent 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 bonds deposited equal such collateral bonds. (10) Bonds accepted by savings banks under the laws of New York or Massachusetts. (11) Cert.iflcates issued by corporations with a paid up capital stock of not less than $100,000, secured upon real estate  ~~1;;~~°of:Ii~~~~s   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1858  BANKING AND COMMERCIAL LAWS-CALIFORNIA  and guaranteed in the manner required by the Bank Act. ~ ~o savings bank must loan money except on adequate security on real or personal property and such loan must not be for longer than ten years. It must have a paid up capital stock graduated from $25,000 when located in any place of less than 5,000 population, to $300,000 when the population is in excess of 200,000. Savings banks organized without capital stock must have a reserve fund of $1,000,000. The capital · stock and surplus of savings banks, must equal ten per cont to and including $2,000,000 deposit liabilities, must exceed seven and one half per cent of deposit liabilities from S2,000,000 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, w:lthout 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 corporation are classified as : Commercial, 8avings or Trust companies, and, together with building and loan associations, are conducted under the supervision and inspection of a 8tate Superintendent of Banks, to whom such banks must sub1 0 :itaa~a~t~J~1~e[;: fa~ ~r~a;t~re m~~ ~~eeif o~l!~~~ gaged in the banking busine. ·, or use the word bank, savings or trust company in connection with his business. Every bank may  £~~  ~fictcif !it~=ef~i!l 1~~i~r~1:si~fi~~~iJo ~~~~\~!1o~t!~~~~ to $25,000, or both or either departments in conjunction with a trust department if the ame amount 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 ..3ither in conjunction with a trust department. If the population is from 25,000 to 100,000 a capital of $200,000 and 5400,000 respectively, is required; if the population is over 200,000 a capital of 300,000 and 500,000, respectively, is required. Every bank must designate the character of its busine . A bank organized under the laws of another state must comply with all the requirements of the State Bank Act, set apart to its business conducted here the surplus paid up stock requiFed of California corporations, and constitute, the State Superintendent of Banks its agent for service of process. A banker has a general lien dependent upon possession of all property in his hands belonging to a customer for the balance due to him from such customer in the course of business. The same capital stock is required of commercial banks as of savings banks. (See savings banks.) With some exceptions no commercial bank can lend more than 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 banlc may buy or discount bills of lading or exchange drawn against actual value or buy and di ·count commercial paper, not to exceed twenty-five per cent of its capital and surplus. Bills and Notes. 'I'he Uniform Negotiable Instruments Law is in force. Statutes of 1917. Chapter 751. Chattel 1\-Iortgages may be made on any personal property, including growing crops and fruits, except personal property not capable of manual delivery, articles of wearing apparel and personal adornment, and the stock in trade of a merchant, provided that when said personal property refers to fixtures or equipment of a merchant. seven days' notice must be giYen, otherwise the ame is void as to creditors of the mortgagor. In the absence of delivery and cont.inued change of possession, the chattel mortage will be void as to creditors of the mortgagor unless acknowledged or proved, certified, and recorded, as required in cases of grants of real property and accompanied by affidavits of all the parties that it is made 1n good faith, and without any design to hinder, delay or defraud creditors. Such mortgages mu t 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 to pledges of per• sonal property. A pledge is a deposit of personal property by way of security for the performance of any act. Delivery of the thing 1 f~~!gaetc~,;oi~~~t~~ ~~rt~vehi"J: ~~~ p1~di:ee i~a~~~s d!11~ !t~1~ei; 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 the property pledged will be sold, a.t such a reasonable time before the sale as will enable the pledgor to attend, but notice of the sale may be waived by the pledgor at any time. The sale must be by public auction and must be for the highest obtainable price. After the sale the pledgee may deduct from the 11roceeds the amount due and the nece;;sary expenses of sale and collection, and must pay the surplus to the pledgor. The pledgee, or a pledgeholder, may purchase the property pledged when th;e same is sold at public auction. A pledgee can not sell any evidence of debt (collateral) pledged to him, except the obHgations 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. ( ee 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 long~r period than ten years and of city property for a. longer period than fifty years are void, A fee simple title is presumed to be intended to pas by a grant of real property, unless It appears from the face of the grant that a Ies er estate was intended. A grant of real property may be made in the following form: "I, A. B., grant to C. D. all that real property situated in (insert name of county) county, tate of alifornia., bounded (or described) as follows: (Here insert description, or if the land sought to be conveyed has a well-established descriptive name, it may be described by such as for instance: 'The Norris Ranch.') Witness my band this (insert) day of (insert month), 19A. B.'' The use of the word "grant" implies the following covenants: 1. That previous to the time of the conveyance the grantor had not conveyed the same estate, or any right, title, or interest therein to any person other than the grantee. 2. That such estate :Is at tho time of the execution of the conveyance free from incumbrances, done, made, or sufl'ered by the grantor. Subsequently acquired title passes by operation of law to the grantee, or hi. sueco · 'Ors. Instruments entitled to be recorded must be recorded by the county recorder of the county in which the real property affected thereby is situated. Every conveyance of real property, acknowledged or proved and certified and recorded as prescribed by law from the tlme it is filed with the recorder for record, is constructive notice of the contents thereof to subsequent purchasers and mortgag es, and every conveyance of real property other than a leruse for a term not exceeding one year is void as against any sebsqeuent purchaser or  mortgagee of the same property, or any part thereof, in good faith and for a valuable consideration, whose conveyance is first duly recorded. Corporations. Private corporations may be formed by the volun• tary association of any three or more persons, in the manner prescribed by statute not to exceed fifty years. A majority of such persons must  ~~;~~~!! Flr t!~chtt~~vi~~i;i:t~~~rra~Jlf~~~a~: t~::s8e1v~~~ The number of directors of corporations for profit, except those mentioned as excepted, may be increased or diminished, by a major• ity of the stockholders of the corporation to any number, not less than three, who must be members of the corporation. A copy of the articles of incorporation, certified by the secretary of State, must be filed with the county clerk of every county where the corporation purchases, acquires or locates property, within sixty days after such purchase or location. Upon filing the article of incorporation in the office of the county clerk of the county in wbich the principal business of the company is to be transacted, a copy thereof, certified by the county clerk, with the secretary of State, the secretary of State must issue to the corporation over the great seal of the tate a certificate that a copy of the articles containing the required tatement of facts has been filed in his office, and thereupon the persons signing the articles, and their associates and successors, shall be a body politic and corporate by the name stated in the certificate, and for a term of fifty years, unless it is in the articles of incorporation otherwise stated, or in the code otherwise specially provided. A copy of any articles of incorporation flied in pursuance of this chapter, and certified by the secretary of State, must be received in all the courts. and other places as prima facie evidence of the facts therein stated. (See Foreign Corporations.) All stocks is asse sable for the purpose of paying debts and meeting expenses but no single assessment must exceed 10 per cent. The franchise of all corporations as distinct from its tangible property is subject to taxation . Each stockholder of a corporation is individually and personally 1 ~!b~a1°~ cfe~rt~nt({! tl~t~~1bi~iJi~1i:1e~urt:!e~1i; him bears to the whole of the subscribed capital stock or shares of the corporation, and for a like proportion only of each debt or claim against the corporation, but such liability is barred within three years after the obligation is incurred. Any creditor of the corporation may institute joint or several actions against any of its stockholders for the proportion of this claim, payable by each, and in such action  !ii~JrCbf  ~~:~tt  !~~i; d~f!~1!.~t3fsc~r!t\~. t~~Jri~~~~~~ %~i~~:imm~;:le~: f~~n~::~~ against each in conformity therewith. If any stockholder pays his 0  g~o~a:;i~~c~fst~~kh~idh;r, dl;; i~r~~iet~~ 1~~~r!~~nf~1~e:ei:o~1 liabilities for such debt; and if an action has been brought against him for such debt, it shall be dismissed as to him upon his paying the costs, or such proportion thereof as may be properly chargeable against him. The term "stockholder" extends to every equitable owner of stock, although the same appears on the books in the name of another, and also to every person who has advanced the installments or purcha,;e money of stock in the name of a minor, so long as the latter remains a minor; and also to every guardian or other trustee who voluntarily invests any trust funds in the stock. Stock held as collateral security, if fact of pledge appears, or by a trustee, or in any other representative capacity, does not make the holder tbertiof a stockholder, except in the case above mentioned, so as to charge him with any proportion of the debts or liabilities of the corporation; but the pledgor, or person . or estate represented is to be deemed the stockholder as respects such liabilitie ·. In corporations having no capital stock, each member is individually and per onally liable for his proportion of its debts and liabilitie , and similar action may be brought against him, either alone or jointly with other members, to enforce such liabilities as by this section may be brought against one or more stockholders, and similar judgments may be rendered. Courts. Terms and Jurisdiction. Jm,tices' courts have civil jurisdiction: 1. In actions arising on contracts for the recovery of money, only if the sum claimed, exclusive of interest, does not amount to $300, and the jurisdiction of a justice of the peace in all cases where money judgment is recoverable is limited to 5300. 2. In actions for damages for injury to the person, or for taking, detaining. or injuring personal property, or for injury to real property, where no issue is raised by the verified answer of the defendant involving the title to or possession of the same, if the damages claimed do not amount to 300. 3. In actions to recover the possession of persona.I 0  s:rgo  ~~ :&i8~io~s tfc,~ :a~:. °te~~f~.pi~1}~~1!it~~=sngf~!~~~~gtio given by statute, or the ordinance of an incorporated city or town, where no issue is raised by the answer in olviug the legality of any tax, impost, assessment, toll. or municipal fine. 5. In actions upon bonds or undertakings conditioned for the payment of money, if the sum claimed does not amount to 300, though the penalty may exceed that sum. 6. To take and enter judgment for the recoverY of money on the confe. · ion of a defendant, when the amount confessed, exclusive of interest, does not amount to $300. 7. Also concurrent jurisdiction with the superior courts, within their respective townships in actions of forcible entry and detainer, where the rental value of the property entered upon or unlawfully detained does not exceed $25 per month, and the whole amount of damt>.ges claimed does not exceed $200. Also in actions to enforce ancl foreclose liens on personal property, where neither the amount of the liens nor the value of the property amounts to 300. Superior Court. '.rhe jurio;diction of the superior court is of two kinds: 1. Original. 2. Appellate. The superior court has original jurisdiction in all cases in equity; in all civil actions in which the subject of litigation is not capable of pecuruary estimation; in all cases a.t law which involve the title or po ·session of real property, or the legality of any tax, etc., and in all other cases in whir.h the demand, exclusive of interest or the value or the property in controversy, amounts to $300; of action of forcible entry and detainer, of proceedings in insolvency; of actions to prevent or abate a nuisance: of all matters of probate, of divorce and for annullmeut of marriage; and of all such special cru e and proceedings a are not otherwise provided for. They also have power to issue writs of mandamus, certiorari, prohibition, quo warranto, and of habeas corpu,; on petition by or on behalf of any person in actual custody in their respective counties. Injunctions and writs of prohibition may be I sued and served on legal holidays and non-judicial days. The superior courts• have appellate jurisdiction in cases ari ing in justices' and other inferior courts in their respective counties provided the appeal be taken within thirty days of the judgment. District ourts of Appeal. The tate is divided into three appellate districts, each of which has a court of appeals with three justices. These courts have appellate and original jurisdiction. The general line of demarcation between the supreme court and these courts Js the amount of money or the value of the property involved. The district , courts of appeal have appellate jurisdiction on appeal from the superior courts in all cases at law in which the demand exclusive of interest or the value of the property in controversy amounts tD $300 and does not amount to 2,000; al.·o in all cases of forcible entry and detainer (except such as arise in the justices' courts); in proceedings in insolvency, and in actions to prevent or abate a nuisance; in proceedings in mandamlL'l, certiorari and prohibitioV  BANKING AND COMMERCIAL LAWS-CALIFORNIA usurpation of office, contesDing elections and eminent domain, and  in such other special proceedings as may be provided by law (except-  ing in cases in which appellate juri5diction is given to the supreme court); also on questions of law alone in all cases prosecuted by indictment or information to a court of record, excepting criminal aid courts also cases where judgment of death has been rendered. have appellate jurisdict.ion in all cases, matter· and proceedings pending before the supreme court which shall be ordered by the supreme court to be transfer-red to a district court of appeal for hearing and decision. Supreme Court. Ha.s original and appellate jurisdiction. In the exercise of original jurisdiction it shall have power to is.·ue writ of mandamus, certiorari, prohibition,. and habeas corpus; it shall also have power to issue all other writs necessary and proper for the complete exerci e of its appellate jurisdiction. The supreme court has appellate juri diction in all cases in equity, except such as arise in the justices' courts; also in all cases _at law which i~volve the title or possession of real e tate or the legahty of any tax, 1mpo t, assess!'.?Jent. toll or municipal fine, or in whicJ?. the demand exclusive of interest or the value of the property in controversy amounts to $2,000; al5o in all such proba~e matt!)r~ as may be provicleq. by law; 1  h~:  1  :pt::d~~g;:~~ ~ri~:tl1w:;ii~~ifr~~d:;~3f rh:~~f:t~i~tc~~o diction in all ca es, matters and proceedings penclin~ before a district court of appeal which sha_ll be order~d. by the supreme court to be transferred to itself for hearmg and dec1s10n. Depositions. The deposition of a witness out of this State may be taken upon a commission issued from the court under the seal of the court upon an order of tho court, or a judge or justice thereof, on the application of either party, upon .five days' previ~u~ notice to the other. If the court be a justice's court, the comm1ss1on shall h3:ve attached to it a certificate under seal by the clerk of the superior court of the county to the efl'ect that the person issuing. tl)e same was an acting justice of the peace at the date of the commission. If is.•med to any place within the United States, it may he directed to a person agreed upon by the parties, or if they do not ~gree, to any notary public, judge or ju~tic~ of_ the. pecae or ~ommi. ·s10ner selected by the court or judge or Justice 1ssumg it. If issued to any country out of the United States, it may be directed to a minister, ambassador, consul, vice-consul, or consular agent of the United. States in such co:un_try, or to any person agreed. UJ?On by the P!lrties. The comm1ss1on must authorize the commJSS10ner to adfillni:ter an oath to the witness. The testimony of a witne~ out of tho tat~ may be taken by deposition in an action, at any trme ?-fter the. sernce of .the SUDlllJ.ons or the appearance of the defendan.t; ID a special _proce~d_mg, at any time after a question of fact bas arisen therein. Depositions must be taken in the form of question and an ·wer. The wo:rd · of the Witne must be Wl'itten down, in the presence of the witne s, by the officer taking the depo ition or by ~ome inditreren~ pe~on appointed by him. It may be taken down m short hand in whic!J. case it mu. t be transcribed to long hand by the person who took it d(?wn. When completed, it must be c?rofull)'. rea<;I to or b~ _the witness and corrected by him in any particular. 1f de. ired, by wr!t!ng, or cau ing bis corrections to be written at_the bottom of t~e deposition, and must than be ::mbscribed by the witness. Corrections must be initialed by officer before whom deposition is taken. If the parties ~~riiu~~"J.iting to any other mode, the mode so agreed upon must Depositions in this State. The testimony of the witne. in this State may be taken by depositions in an action at any time after the service of summons or the appearance of defendant, and in a special Proceeding after a question of fact has arisen therein, in certain enumerated cases. Depositions for Use out of the State. Any party to an action or special proceeding in a court or· before a judge of a sister state, may obtain the testimony of a witness residing in t~i · tato, to l:>e used in such action or proceeuing, in the cases ment!oned following: If a commission to take such testimony bas been issued from the court, or a judge hereof before which such action or proceeding is pending, on producing' tho cornmis. ion to a judge ot' the supe!'ior court With an affidavit sati factory to him of the materiality of the testimony, he may issue a subprona to the witness, requiring him to appear and testify before the commissioner named in the commission, at a specified time and place. If a commission has _not. been issued and it appear to a judge of the s~perior court, 01· a JUS~1ce of the peace, by affidavit satisfact,ory to hin1: 1. That the te_st1_mony of the \vitness is material to either party. 2. That a comn11 ion to take testimony of such witness ha not been ii:;sued. a. That ~ccording to the Jaw of the State where the action of special proc~eding 1s pending, the deposition of a ~vit~e · t~keu und_er . -~1cb c1rct1?1stance ·, and before such judge or Justice, will be i:e~e1ved m t~e action or proceeding he murt issue a subpcena requmug the w1tne. s to appear and te' tify before him at a spoci.fled t~me. and place. Upo? the .appearance of the witn~. ~• tbe Judge or JU."?tlce must cau~e bis testtmony to be taken in wr1tm~. and must certify and transm\t t~e same to the court or judge before whom the action or proceedmg is Pending, in such manner as the law of that tate reqmres. De cent and Dhitribution of Property. Property, both real and personal of an intestate pa es to his heirs. A . urviving wife succeeds to one-half of the community propert;Y, i. e., _all property ~CqUired by husband or "ife during the marria~e. "h1<;h does not lllclude property acquired by either husband or w1fe by ~1ft, bequest, devise or de;;cent which is separate property. Dower mtere t does not exist. The separate estate is distri1?utecl as follows: If the decedent leaves a surviving husband or wife and only o_no child, or the lawful i 'UC of one child, in equal :>bares to the s~1r_dvmg husband or wife and child or issue of such child. If a urn vmg hushancl or ~ife and more than one child living, or one child )iving and the l~w_ful issue of one or more deceased children, one-thu·d to the sury1vmg husband or wife and the remainder in equal shares to Urn chd~ren and to the lawful' issue of any deceased child by right of roprescnta~10n. But if there be no child living, the remainder goes to. all tho !meal descendants, and if they are in the same de~ree of kmdred to _the decedent they share equally,. o~herwise by r1gh~ or represcntat10n. If the decedent leaves no surv1vmg husband or wife, the whole estate goes to the issue--the issue of children taking by right of repre entation. If there is no issue the e tate goes one-half to the s~rviving husband or wife and the other half to the fathe1· and mother m equal shares, or, if one be dead, to the survivor; if there be no father or ~other, then their ono-half goes in equal sl:!ares ~o tho brothers and sisters or to their representatives. If there 1s no i.·sue, or lm ·band or Wife, the estate goes to the father and motbet', or the survivor. or, if both be dead then in equal shares to tho brothers anc.l. si ·ters, and to the children of any doccas d brother or istcr by right of representation. If the decedent leaves a surviving husband or wife, and neither issue, father, mother, brother, nor sister, tho whole e.~tate goe to the surviving bu. band or wife. If the decedent leaves neither issue, husband wife, father, mother, brother, nor sister, the estate Illust go to the next of kin in equal degree. Illegitimate children Inherit from mother, also from father if recogniz d in writing but can only inherit directly and not by ropre. entation. Th ·e are the Principal provisions of the law of succe ion. Tenancy by the cour~ tesy is not known to our law. If the person dies testate, all property Pas es as directed by the will.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1859  Executions. May issue any time within five years from entry of judgment and after lapse of five years the judgment may be enforced or carried into execution by leave of court upon motion, or by judgment for that purpose, founded upon supplemental proceedings. No right of stay exists except by order of the court in its discretion. Execution may issue against the property of a judgment debtor after his death, only if the judgment be for recovery or real of personal property, or the enforcement of liens thereon. Real property may be redeemed within one year, personal property not at all. Exemptions. The following property i e empt from execution: 1. Chair'. tables, desks, and books, to the value of S200. 2. , ec • sary household, table and kitchen furniture belonging to the judgment debtor, including one sewing machine, stoves, stove-pipes and furnl-  ~f{tai~~t:;~~ga~Rfi!\,~~·~:~~~~ ~1n~:tt~a~n~a~~:tf1~trt5e 1  family, and family portraits, and their noce ·sary frames, provisions and fuel actually provided for individual or family use sufficient for three months, and three cows and their sucking calves, four hogs with their sucking pigs, and food for suc-h cows and hogs for one month, one piano, one shotgun, and one rifle. 3. The farming utensils or implements of husbandry not exce cling in value the sum of $1,000; also two oxen or two horses, or two mules, and their harne s; one cart or buggy and two wagons, and food for such oxen, horses or mules for one month; also all iseed, grain, or vegetables, actually provided, reserved or on band for the purpose of planting or sowing at any time within the ensuing si: months, not exceeding in value the sum of $200, and seventy-five bee hives, and one horse and vehicle belonging to any person who is maimed or crippled, and the same is necessary in his business. 4. The tools or implements of mechanic or artisan necessary to carry on his trade; the notarial seal, records, and office furniture of a notary public; the instruments and chest of a surgeon, physician, surveyor, or dentist, necessary to the exercise of their profession, with their professional libraries and necessary office furniture; the professional libraries of attorneys judges, ministers of the gospel, editors, school teachers and music teachers and their necessary office furniture, Including one safe and one typewriter, also the musical instrwnents of music teachers actually used by them in giving instructions; and all the indexes, abstracts, books, papers, maps, and office furniture of a searcher of records necessary to be used in his profe. sion; also the typewriters or other mechanical contrivances employed for writing in type actually u.s;ed by the owner thereof for making his living; also one bicycle when the same is used by its owner for the purpose of carrying on his regular business, or when the same is used for the purpose of transporting the owner to and from his place of business. 5. The cabin or dwelling of a miner not exceeding in value the sum of $500; also his sluices, pipes, ho e, windlass, deiTick, cars, pumps, tools implement·, and appliance nece sary for carrying on any minin~ 0 i~~r1;~~is, ~~~e~~e:f~fe!~ ~l~e~!fr ~~::,~~ a;~mf<>°Jd ig~:s:!:ie for one month, when necessary to be used in any whim, windlass,  h!!  ~~~~fcit~olcti: E~mh~ntn~iisJ~!e~~~· iiin~:i~-~ Two horses, two oxen, or two mules, and their harness, and one cart or wagon, one dray or truck, one coupe, one hack or carriage for one or two horses, by the use of which a cartman, truckman, huckster, peddler, hackman, teamster, or other laborer habitually earns his living, and one horse with vehicle and harness, or other equipments used by a physician, surgeon, con table or minister of the gospel in the legitimate practice of his profession or business, with food for same for one month. 7. One fishing boat and net, not exceeding the total value 500, the property or any fl ·herman by the lawful use of which he earns a livelihood. 8. Poultry, not exceeding in value $75. 9. eamen's and seagoing fishermen's wages and earnings not exceeding $300. 10. The earnings of tho judgment debtor for his personal services rendered at any time within thirty days next preceding the levy of execution or attachment, where it appears by the debtor's affidavit or otherwise, that such earnings are necessary for the use of his family, residing in this State supported in whole  ~~~i~~r~!~  ~~r~~l.a~; ~rs ~~Trc!a~:nr~i!n~ fo~.e~t:~~~~~ i~~~!~~i~l ;Prif!~~~  have been incurred at a time when the debtor had no family residing in this State, supported in whole or in part by his labor, the onehalf of such earnings above mentioned are nevertheless subject to execution, garnishment, or attachment to satisfy debts so incurred. held by a member of a homestead association duly 11. The shar 0 1 1 0 •n~it t~!c~~!~f 0~ av~~~e~le~~ ·u~ct!~etiftri~s ~~ State. 12. All the nautical in trument' and wearing apparel ot any master, officer, or seaman of any steamer or other vessel. 13. All .fl.re engines, hook and ladders, with carts, trucks, carriages, ho e. buckets, implements. and apparatus thereunto appertaining; and all furniture and uniforms of any fire company or department organized under any law of this 'tate. 14. 11 arms, uniforms and accoutrements required by law to be kept by any person, and aho one gun to be selected by the debtor. 15. All court houses, jails, and town, county, and State buildings; all public buildings, grounds, places, etc. 16. All material purchased for use in the construction, alteration, etc., of any building, mining claim, etc., not exceeding the value of 1,000. 17. All machinery, tools, and implements necessary in and for boring, sinking, putting down, and constructing surface or artesian wells; also the engine neces.·ary for operating , uch machinery, implements, tools, etc.: also all trucks necessary for the transportation of such machinery, tools, implements, engines, etc., to the value of 1,000. 1 . All moneys, benefits, privileges, or immunities ac ruing, or in any manner growing out of any life insurance  ~1 1~~  ~\;~~!t1~  ~~'i~~~!t,~~ci~ i~~~~sd~f t~t~c~ j~e ~yni>~il~~~~~:inJ ~ot~e the value of Sl.000. 20. Pen ions from the United States Government. Nb article, however, or species. or property mentioned in this section, is exempt from exe<·ut ion issued upon a. judgment rect>vered for its price or upon, a judgment of foreclosure of a mortgage or other lien thereon. (For Homestead Exemptions, see Homestead.) 0  \1~  fo~~  l!'raud. (For Fraudulent Debtors, see Arrest.) Any contract obtained through fraud is voidable. Consent Is deemed to have been obtained through fraud only when it would not have been giYen had such cause not existed. Actual fraud consists in the uggestion as a fact of that which is not true, tho positive assertion of that which is not true in a manner not warranted by the information of the person making it though be believes it to be true, the suppression of that which is true by one having knowledge of it, and promio;es made without any intention of performing, or any other act fitted to deceive. 'oustructivc fraud, consists of a.ny breach of duty, which without an actual fradulent intent, gains an advantage of t.he person in fault by mi-;loacling another to his prejudice. Actual fraud is always a question of fact. pon receiving inil,ruction in writing from the <?ai:ni hn:ient. p)a111ttff or his attorney that any person,ias in hi.· posse. sion, or under his contt·ol, any credits or other p rsonal property belonging to the defendant or is owing any debt to the defendant, the sherur must serv upon such person a copy of the writ aud a notice that uch ~redits, or other property_ or debts, a.-; the e· so may be, are attached. m pur. l!-ance of s~ch writ. All _Person having any such property at the time of sernng of uch wnt, unle , it i:s delivered up or trans-   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  BANKING AND COMMERCIAL LAWS-CALIFORNIA  1860  ferred or paid to the sheriff, shall be liable to the amount of such credits, property, or debts, until the attachment be discharged, or any judgment by him recovered be satisfied. Homestead. The homestead consists in the interest of the claimant, divided or undivided, in the dwelling how e in which the claimant resides, and in the land on which the same is situated, selected. if the claimant be married, from community property, or the separate property of the husband. or, with the consent of the wife from her separate property. When the claimant is not married, but is the head of a family, the homestead may be selected from any of his or her separate property. The homestead can not be selected from the separate property of the wife without her consent, shown by h~r making or joining the declaration of homestead. The home. tead 1s exempt from execution or forced sale, except in satisfaction of judgments obtained: 1. Before the declaration of homestead was filed for record and which constitutes liens upon the premises. 2. On debts secured by mechanics' contractors', sub-contractors', artisans', architects', builders', laborers' of every class, materialmen's or vendors' liens upon the premises. 3. On debts . ecured by mortgages on the premises, executed and acknowledged by the husband and wife of an unmarried claimant. 4. On debts secured by mortgages on the premise , execuued and recorded before the declaration of homestead was filed for record. In cases not enumerated above, in which, after a judgment has been docketed again t the homestead claimant, and an execution for its enforcement levied on the homestead, it may be shown by an appralsement applied for to, and ordered by, the court, after proper proceedings, that the homestead exceeds in value the amount of homestead exemption. Then steps may be taken, if it can be done without material injury to the land, to divide the property and reach the excess. The homestead of a married person can not be conveyed or encumbered unle the instrument by which it is conveyed or encumbered is executed and acknowledged by both husband a.nd wife. Home teads may be selected and claimed: 1. If not exceeding $5,000 in value, by any bead of a family. 2. If not exceeding $1,000 in value, by another person upon death of either spouse if homestead is selected from community property or from separate property of spous~ joining therein, title thereto vests in survivor otherwise to the heirs or devu es of the person whose property was selected. Husband and Wife. The husband is the head of the family. He may choose any reasonable place or mode of living, and the wife mu<;t conform thereto. In other respects their interests are separate. Neither husband nor wife has any interest in the separate property of the other, and either may enter into any engagement with the other or with any other person, respecting property, which either might if unmarried. All prop~rty of either, own_ed by him or 11:er before marriage, and that acquired afterward by gift, bequest, devise or descent. i · the separate property of such person. All other property acquired after marriage by either husband or wife or both, is community property, but wheneYer any property is conveyed to a married woman by an instrument in writing, the pre:;umption is that the title is thereby vested in her a her separate property. The bu band has the management and control of the community property, with absolute power of di~posal other than testamentary, provided that he cannot make a gift of the same or convey the same without valuable con. ideration, unless the wife con ·ent in writing. Tbe community property is not liable for the contracts of the wife made after marriage, unlc ·s secured by a pledge or mortgage thereof executed by the husband. The husband is not liable for damages or torts committed by wife except in a case where be would be jointly liable with her if the marriage did not exL-.t. The separate property of the husband is not liable for the debts of the wife contracted before marria~e and the ·eparate property of the wife is not liable for the debts of her husband, but is liable for her own debts contracted before or afte1· marriage. A husband and wife may bold property as joint tenants, tenants by entreaties, tenants in common, or as a communiLy property upon death of wife entire community property goes to husband. whereas on death of husband wife gets one half of community. Interest. The legal rate of interest is 7 per cent and is due upon judgments after rendition and upon other obligations unle there ls an express contract in writing fixing a different rate. The parties may agree on a higher rate of Interest and on the compounding of same. but personal property brokers may charge not to exceed 2 (two) per cent per month. Judgments. (See Actions.) Upon filing the judgment roll, which is a record of the proceedings in the case, it must be docketed by the clerl<, whereupon it be~omes a lien UPOJ? any real property of ~ judgment debtor not exempt from execution in the county which the said judgment debtor own at that time, or which he may thereafter acquire. This lien continues for five yeai:s, unless ~be enforceme::it of the judgment be stayed on appeal. A Judgment 1s barred by the act of limitation withln five years, unless revived by leave of court upon motion or by an action upon the judgment. Judgment must first be satisfied out of property of the judgment debtor which bas been attached and in the cu..,tody of the sheriff. Liens. J.\,lechanics, material-men. contractor·. sub-contractors. artisans, architects, macbinbls, bullders, znim·rs, teamste!'5, draymen and all persons and laborers of every class performmg labor upon or furnishing material to be used in or furnishing appliances, tea.ms and power contributing to the construction, alteration, or repair of any building, wharf, bridge, ditch, flume, aqueduct. well, tunnel, fence, machinery, railroad, waf!:on road, or other structure, have liens upon the property upon which they have worked or furnL':lhecl material, and any person performing labor in a mining claim bas a lien upon the same, and the works owned and used hy the owners for reducing the ores from such mining claim, for the work or labor done. 'l'be common carrier bas a lien upon the luggage of a passenger for the payment of his fare. One who :;ells real property ,has a vendor's lien thereon. Improver,; of per ·onal property, depo ·iraries for hire veterinary surgeon. , livery stable keeper and persons pasturing hors'es or stock, bave a special lien, dependent upon possession. !~actors banks, and laundry proprietors have a p:enera lien. dependent on po session, on any personal property in their hands. Seaman have general lien: independent of po. ses.,,;ion. Owners of anin1als u-;ed for propairatin[ purposes have a lien for the agreed  g~\~: aufJ'~tJ~; tf!1fe~.intrave i1f:: ti;!~e~~tfr ~h~"~~~u~~ ~u~ fgr 0  0  their personal services. Every person performing work or labor in, with, about, or upon any threshing machine or engine, borse-powe1·. wagon, or other appliance thereof, while en~aged /n threshing, has a lien tbe~eon to the extent of the value of bi:; services, for ten days after ceasmg work or labor, provided within that time, an action is brou~ht to recover the amount of the claim, persons repairing or altering af!Y personal property have a lien for the reasonable value of such service. Ltmltalion.. If real estate ls held adversely for five years, such adverse po, ·e Jon ripens into title if claim11:m I~a_ys tax~s for flye years, 1  0  it  1  1  :~;i~fe~afo~i~h~ ~i::;e~~~nr:~r ~c~?o~~/~~t~~ ~han o~\~:r~~~~f:r°; of real property, are as follows : Within five years; (I) An action upon a Judgment or decree of any court of the United States. or of any State within the L'nit.ed t.ates. (2) An action for mesne profits of real property. \Yitbin four years: (I) An action upon any contract. ubligation or liability founded upon an instrument in writing,  executed in this tate. (2) An action to recover a balance due upon a mutual open and current count or upon an open book account. ·within three years: (1) An action upon a liability created by statute, other than a penalty or forfeiture. (2) An action for trespass upon real property. (3) An action for taking, detaining or injuring any goods or chattels, including actions for the specific recovery of personal property. (4) An action for relief on the ground of fraud or mistake, the cau e of action in such case not to be deemed to have accrued un;il 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 upon an instrument of writing executed out of the State. (2) An action on a debt. liability or obligation evidenced by an abstract, guarantee or certificate of title; and such action shall not be deemed to have accrued until the discovery of the loss or damage. (3) An action against a sheriff, coroner, or constable, upon a liability incurred by the doing of an act in bis 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, \\hen the action is given to an individual or to an individual and the 'tate, 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 injury to or for the death of one caused by the wrongful act or neglect of another, or by a depositor against a bank for the payment of a forged or raised check. (4) An acLion against a sheriff, or other officer, for the escape of a prisoner arrested or imprisoned on civil ~~~~J~ies(ib tr°o;~;f~nc!~~~5t:; ~~{;iEt~i~~~po{~figfnrii~ ~~~t';~ (1) An action to recoYer property seized by tax collector. (2) To recover corporation stock sold for delinquent assessment. To actions  g~~1~~ :~~icgi:p~u°;,eir°ia~~:~ ~~cfY~~ ~~~?e1;~dt~~;~ i!nJo~t~:  tation. If when the cau e of action accrues against a person, he is out or the ~tate. tl1e action may be commenced within the term herein limited, after bis return to the tate, and if, after the cause of action accrues, he departs from the tate, tbe time of his absence is not part of the time limited for the commencement of the action. And if the person entitled to bring the action be, at tho time the action accrued, either a minor, insane. impri ·oned for a term less than life. or a married woman, and her husband is a necessary party with her in commencing such action, the time of such disability is not a part of the time limited for the commencement of the action. No acknowledgment or promise Is sufficient to take a case out of the operation of the statuLe of limitation , 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 lin1itations. ·where a cause of action bas arisen in another State, and would be barred by the statute of limitations of that 'tate, an action cannot be maintained here. There is no limitation upon actions to recoYer money or property with banks or trust companies. ( ee Accounts.) !\tarried ,von1en. \Vben 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 bis 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 bas re ided for six months next preceding the application. The husband of the sole trader is not liable for any debts contracted by hel' in the course of her sole trader's business unle~s contracted upon his written con."ent. A matTied woman maY convey without consent of her htL'-band, and is not liable for the debts of her husband, but is liable for her own debts contracted before or after her marriage. She may contract as a femme sole so as to bind her separate property. The wife may make'a will of her separate property. The earnings of the ·wife arc 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 mortgaJ?;ed. A mortgage can be created, renewed. or extended only by writing executed with the formallties required in the case of a grant of real property. Every transfer of an interest in real property, other than in trust, made only a':l the security for the performance of any act, is to be deemed a mortgage, and the fact that the transfer was made subject to defcasance on a condition may, for the purpose of showing such transfer to be a mortgage, be proved (except a,; again ·t the subsequent purchru:;er or encumbrancer for value and without notice) although the fact does not appear bY the terms of the instrument. A mortgage i · a lien upon everything that pa.,ses by a grant of the property. A mortgage does uot entitle the mortgagee to the possession of the property. The assignment of a debt ·ecured by a mortgage carries with it the security. When a mortgage i. · sat bfled or the mortgage indebtednes.s paid, the mortgagee must atisfy the mortgae;e of rerord under penalty. a mortgagee may foreclose the right of redemption of the mortgag_ee. unless expressly stipulated the mortgage is not a personal obligat10n on part of mortgagor. Note!'! and nms or Exchange. ( ee Bills and Notes.) Pledge. ( •e Collaterals.) Powers or Attorney. An attorney in fact may be appointed for any purpo e for which an a~ency can lawfully be created. Powers odf attorney can onlf be conferred by an instrument in writing subscribe by the prinf'ipa which must particularly specify the power:; con~ ferred. If the instrument contains a power to convey or executde instrument.' affecting real property, it mu t be duly acknowledge and mu.,t IJe recorded in the county within which the real propertY to be conveyed or afl'ected is situated. ·o such instrument which bas been so recorded is revoked hy any act of the party by whom it w1>'l executf'd. u11less the Instrument containing such revocation is also acknowledited or proYed, certified, and recorded In the same omce in which the instrument containing the power was recorded. When an attorney in fact executes an instrument transferring an esta_te in real property, he must subscribe the name of bis principal to it, and his own name as attorney in fact. Probate Law. ( ee Administration or Estates, Claims agait}St Estate!< of decea-; d p r,-ons. Des<'ent and Distribution.) The ·upepor court ha Jurbdictiou of proc edings in probate. and such proceedings must be instituted (1) In the county in which the decedent was a re ·ident; (2) in the county in which be may baYE! died, leaving esta~e therein, he not being a resident of tbe State; (3) in the countY Ul which any part or the estate may be, if the decedent died out of th! tate and was not a resident. (4) In any county in which any par 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 <?1-"es where application is first made, any per ·on interested may petition for probate of a will or may contest such probate within one ye~• An mventory and appraisement i. required of the executor or adwiD· istrator within three months. Upon the return of the inventory tb1 court may set apart for use of the survi\·ing bu. band or wife, or. 0 , the minor chlldren, all the property exempt from execution includ1DJf  BANKING AND COMMERCIAL LAWS-COLORADO any homestead selected, providing the same was selected from the common property or from the separate property of the person selecting or joining in the select-ion of thf) same. If none has been selected, the court must select designate and set apart and cause to be recorded a homestead for the· use of the surviving husband or wif'.e, or of the minor children, or if there be no surviving husband or wife, t!'J.en for the use of the minor children out of the common property, 9r if there be no common property, then out of the real_ e tate belongmg to t!1e decedent. Property so set apart is not subJect to further admim'-tration. 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 rep!evin 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 affiday1t must he mad_e }?Y the plaintiff or by some one in his behalf showmg that the plamtiff 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, ~essment or fine, or seized under an execution or attachment, or if _so seized that it is exempt; also the actual value of the property. Plamtifl' must also give a bond in double the yalue of the pr_ope~ty. The defendant may give to the sheriff a written underta}.<mg m dou~le the value of the property, and retain the same1 b)-lt m c3:se he f3:ils so to do the property is delivered to the plamt1ff. Third parties ~ay upon affidavit of ownership, claim s~ch propert1 a{!,d ecure Its release under bond . The judgment m such actH:m 1s in the alternative for a return of the property or for its value 1Il case a delivery can not be had. Sale of Stock Shares. Permit must be obtained from State Corporation Commissioner. Statute or Frauds. A will must be in writing, except a nuncupative will. (See Wills.) An agreement not to be p~rformed Within a year from making it must be in writin!!':; also a special promise 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 chattel<; or things in action at a price not less than $200, unles · the buyer accept and receive part of the same or any part of the purcha<;e money. No estate in land will pass other than lea.'!es not to exc~ed one year, unless in writing. An agreement authorizing or employ~ng an agent or broker to purchase or sell real estate for compensat10n or for a commission. An agreement by its terms not to be perform~d in the lifetime of the promise or to make, devise or bequeath by ~vill. No evidence is admissahle to charge a person upon repr~sent3:t1_011s as to the credit of anoLher, unless the representations be m wr1tmg. However where promisor has received property to apply. pursuant to promise or a discharge of an obligation in consideration of the promise, or where a creditor parts with value or where the n~w ~rom1se is substituted for the old debt, or where levy or execution 1s released or there is benefit moving to promise from any party or where a factor undertakes for a commission to guarantee a sale, contracts to answer for the default of another need not be in writing. Transfer of personal property capable of manual delivery, except wine in cellars and tanks. when not accompanied by delivery and change of poS! ession are deemed fraudulent as to third parties unless notice of intention of sale is recorded fl ve days before transfer is made in accordance With law. Supplementary Proceedings. When ~n execution is r~turned 1:tnsatisfled, the judgment creditor can obtarn ~n oc:der reqmnng the Judgment debtor to appear and answer concernmg Jus property_bef~re the judge or referee appointed by him, also, in case after the 1ssumg of an execution, upon proof by affidavit that the judgment de}:>~or I?,as Property which he unJusLiy refuses to apply toward the sat11:;fact1on of the judgment the judge may make the order, and instead thereof. if it appear that' the debtor is about to abscond, he may, by order of the judge, be arrested and required by ~im to ~ive sec~rity for the judgment, or that he will attend from t1~e to ~1me durmg ~he pe_~dency of the proceedings, and that he ~ill not m the me~11t1me dispose of any portion of his property, and m default of security he may be committed to prison. Ta,i:es. On the fir t lV[onday of December of each year taxes become delinquent, except the last installment <:Jf the real pro"Qerty taxes, and thereafter 15 per cent is added for cl~lmque!1cy; provided, ~hat if they be not paid before the last 1\Ionday m .April next succee~mg, 5 per cent is added for delinquency. On the l~t _Monday m April of each year all the unpaid portion of tbe remammg one-half of the taxes on all 'real property is delinquent, and thereafter 5 "Qer cent i added for dellnquency; and provided _further, tha~ the entire tax on any real property may be paid at the time tl?,e first mstallmo?t a\l above provided is due and payable; and provided further, that the taxes on all personal property, uu ecured by real pro~erty, shall be due and pavable immediately after the assessment of said personal Property is ma.de. Public Utility corporations are taxed for t_he support of the State other property is taxed for county and city Purposes. _Wills. Every per. on over the age o_f eighteen years, of ~ound Inmd, may, by last will, di, pose of all his estate, real and p~rso~1al. A married woman may dispose of all her separate estate by '':Ill_ w1~hout the consent of her husband, and may alter or revoke the will m like ~anner as if she were single. Her will must be executed and pro".ed in like manner as other wills. Every will other than a nuncupat1".e W\II must be in writ,ing, and every will other than an holograp~1~ win and a nuncupative will, must be executed and attested as f(?ll0"s. l. It must be subscribed at the end thereof by the testator hnns~lf. or some person in bis presence, and by his direction ~ust subscribe his name thereto. 2. 'l'he subscription mu t be made m the 11re ence of the attesting witnesses, or acknowl~dged by _the testator to them to have been made by him or by bis authority. 3. The testator must. at the time of subscribing or acknowledging th~ san:ie, declai·e to the attesting witnes.os that the instrument is his will, !1nd 1· There must be two attesting witnesses, each of whom must sign h1s name as a Witness at the end of the will, at the testator's request, and in his presence and in the presence of each other. An holographic will is one that is entirely written, dated, and signed by the hand of the testator hin1 elf. It is subject to no other form, and lll!),Y be made in or out of this St!tte, and need not be wi~nessed. A W1tne&.;; to a will hould always write his name and residence. All devises or gifts to a subscribing witness are void unle · there are two Other competent subscribing Witnesses. No will made out of this St.ate is valid as a will in this State, unless executed according to the 0 :1~~ohnihoef tt~t~t~~eirs edg~~it~!tat tfi:g~iits d~~\t~!;.;g1~;11~ M a Will under the law of such State or country is valid in this State ~s to per. onal property. ·wms proven out of state may be recorded 1n county where testator has left over estate. Bequests for charity are void unless made than thirty days b efore death and must in no case exceed moremore than one third of the e tate unless there are no legal heirs. \Viii<; are revoked by marriage ~;~~S:r~rovision for the same or an intention not to provide clearly  r:  ti!~  118   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1861  SYNOPSIS OF  THE LAWS OF COLORADO RELATI TG TO  BANKING AND COMMERCIAL USAGES Revised by MESSRS. GARWOOD AND GARWOOD, Attorneys at Law Denver. (See Card in Attorneys' List.) Acknowledgments. Of deeds and instruments concerning rea estate may be taken as follows: 1. 'Within thls State. before any judge, clerk, or the deruty clerk of any court of record, clerk, and rec?rder of any count_y, ?r h!s deputy, or notary public, or before any ju. t1ce of the p_eace w1thm his county. 2 Out of this State and within the Umted States before the secretary of any such State or 'I'erritory, tbe clerk of any court of record, any notary public, or any commlssioner of deeds for any such fo1·ei~n Stato or Territory appointed under the laws of this State· before any other officer authorized by the laws of any such State 'or Territory to take and certify such acknowledgment: provided, there shall be affixed to the certificate of such officer, ot,her than those above enumerated, a certiflcat.e by the clerk of some court of record of the county, city or district wherein such officer resides, under the seal of such court, as to the official capacity, true signature and authority of the person certifying such acknowledgment. 3. Out of the United States. before any judge, clerk1 or deput_y clerk of any court of record of any foreign kingdom. empire, republic state' principality, province, colony, island possession or bailiwick, befor'e the chief magistrate or other chief executive officer of any province, colony, island po. essio.n or bailiwick, before ·the mayor or chief execuLive officer of any city, town, borough, county or municipal corpora.Lion, having a seal, or before any aruba'iSador, minister, consul, consuJar agent, cba~ge d'af!a.ires, commercial ageI?,t, or any vice consul, etc., or any d1plomat1c consular or commer_c1al agent or repre entative, or deputy of any thereof, of the Umted States or any other government or country appointed to reside in the foreign country or place where the acknowledgment is made, each and all certifying same under his official seal. 4. Out of the State, and within any colony, island possession or bailiwick of the United States, before any such officer as above enumerated in relation to acknowledgments in foreign countries (except ambassadors, etc.) or before any notary public, having a seal. Actions. The di tinction between the forms of actions at law and suits in equity is aboli ·hed. All actions must be prosecuted by the party in interest, and are govemed by a code of civil procedure. Admini~tration of Estates. All demands not xbibited in twelve mont.hs are barred, unless such creditor can find otner e:tate of the deceased not inventoried, saving, however, to femmes covert, persons of unsound minds, imprisoned or beyond the seas, the term of one year after their di ability has been removed to exhibit their claims. Creditors having liens on the pro[lerty of the decedent can not foreclose for one year unless permitted by the court, and in no event until tho claim has been allowed. Administration is granted to surviving husband or widow, or next of kin of an intestate. if tbey will accept or are not disqualified; if no such relative appears within twenty days after death of inte tate, admini tration may be granted to a creditor; if no creditor appears in ten days after twenty dayg from death of intestate, or if next of kin files written relinquishment county judge may select administrator. In counties having a population of more than 50,000 on default of relatives administration is ma.de by public administrator. An abbreviated form of administration is provided fore ·tat s of, 2,000 or less. (See Wills; JI usband and Wife; Descents and Distributions.) Agent. (See Partnerships.) Aliens. annot hunt or possess fir arms. Arbitration. Difl'erences may be submitted to arbitration by consent of the parties in the form prescribed by st,atute, and a judgment may be entered by the clerk of the District Court upon the finding of the arbitrators. Arrest. Imprisonment for debt, except in cases where one refuses to deliver up his estate for the benefit of his creditors, or in cases of tort or wheee there is a strong presumption of fraud. is abolished. In civil actions founded upon tort, where tbe finding is in favor of the plaintiff and the verdict state that defendant was guilty of fraud; malice, or willful deceit, execution may issue against the body or the defendant, but not where the defendant shall have been convicted in a Cl'iminal proceeding for the same wrong. Imprison-   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  BANKING AND COMMERCIAL LAWS-COLORADO  1862  ment shall not exceed one year, and the prisoner is relea ed upon payment of the debt. The writ of ne exeat is granted under proper circumstances. (See Fraudulent Purchasers.) As bmment. Assignments for the benefit of creditors may be made in accordance with provisions of the Assignment Act. Assignments of wages not covered at the time of the assignment, or of other sums to become due to the assignor, are invalid unles recorded with the recorder of the county where the wages are to be earned, or the sums are to become due, within five days from date thereof. If the assignor is a married man or woman. residing with the wife or husband, he or she must join in the assignment. There are also provisions regulating assignments to wage-brokers and others. Attachments. In actions on contracts, express or implied, the 0  g~~iti~ ~ttibl~arie t~iiig~~~n~~:nor ~?[~YaMj!~~f~f ,~rn~~~\i; 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) fradulently concealed or removed or disposed of his property, or (8) and (9) is about to do either, or has departed or is about to depart from this ·tate, with the intention of having his effects removed from this tato. 10. Has failed or refused to pay the price or value of any article delivered to him to be paid for upon delivery, or (11) of any work or labor performed, or for any service rendered by plaintiff, for defendant, to be paid for upon completion. 12. That the defendant fraudulently contracted the debt, or procured the money or property of the plaintifl'. In justice courts, the fact that the debt is for farm products. house rent, household furniture and furnishing, fuel, groceries and provisions, clothing: and wearing apparel for the debtor or his family, is additional ground for attachment. Garnishee process will issue in aid of attachment when money or property of the debtor is found in possession of third persons, property of non-residents and ab conding debtors can be attached as in most other States. Bank , State. Any number of persons, not less than , three, may engage in the business of banking: the capital ·tock 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 busine , and certificate 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  :i~:  tr~t~~r p~~~Jt ~~r th~k!o~l :g~~?o1 n~K F;rr~~; tt:rs<;Ji~~l nor may it hold or purchase any portion of its own  any other bank; stock, or of the capital stock of any other corporation, unless such purchase is necessary to prevent loss upon a debt previously contracted in good faith, or in other peculiar circumstances. Stock so purchased must be sold within three years, and sooner if this can be hareholder · in done without impairing the bank's investment. banks, savings banks, tru t depo it 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 then twenty years, or hy a fine of not more than $2,000, or both, and in addition shall be individually responsible for the property received. Failure of the bank or banker within thirty day after receipt of such money or property is prima facle evidence of knowledge of the insolvency at the time of such receipt. Loans to any one individual or corporation are limited to 20 per cent of the paid in stock and surplus of the bank. Loans secured on real estate limited to 25 per cent of total interest bearing securities and to a period of three years, but further loans allowed secured by first mortgage on real e ·tate worth double amount of loan linlited to 50 per cent of o bank may engage in saving deposits and to a period of five years. trade or commerce; or acquire realty, except such as is nece - ·ai·y for its busine · or such as is necessarily acquired in the protection or sati ·faction of previously existing loans made in good faith. Any realty o acquired must be sold in five years, or sooner if po ·ible. :No director may borrow money in exce · · of 10 per cent of the capital and surplus, without the consent of a majority of the directors other than the o bank shall loan to any officer or employe thereof. borrower. ational Banks, are under the supervision of the All banks except State Bank Commissioner who examines each institution at lea.·t twice yearly. If he finds capital impaired, he requires the bank to make up deficiency, or takes posse. sion for purpo es of liQuidation, as circumstances may require. Insolvent banks may be placed in control of t-be 'tate Bank Commissioner. Usually no receiver can be appointed, nor can a bank make an assignment for creditors. Every bank makes reports of it condition to the commi 'ioner five tim . yearly. . o bank can do busine. without a certificate of authority from the commiidoner. ·aving - banks are subject to the tate banking law under a number of special provbions and re ·triction ·. Bills of Exchange. ( ee Commercial Paper.) Bills of Lading and Promi ory . . otes. (See Commercial Paper.) Chattel .M ortga~e when recorded are good for two year.- whore sum secured does not exceed 2,500; for tl ve years, when sum does not exceed $20,000, and not exceeding ten years where sum secured exceeds $20,000; but if the sum secured be greater than $2,,->00 mortgagee must annually record statement stating that the mortgage secures a bona fide indebtedne.· ·, the portion which has b en paid, and Lhe amount . till due. Chattel mortgages may be extended after maturity, but not more than thirty days after maturity, by filing an executed instrument of extension of mortgage with the county recorder. As between the parties thereto, all chattel mortgage are good until the indebtedna-;s is paid or i barred by the statute of limitations. .M ortgages of stocks of ~oods which reserve po. session and power of. ale to mortgagor, are void as against creditors and bona fide purchaser·. Di.-posing of mortgaged property is larceny. Chattel mortgagee, his agent or attorney, now allowed thirty days after maturity of deht in which to take po ·e sion of mortgaged chattels, and during said thirty days, or until pos: ession is taken by mortgagee, hb agent or attorney, the mortgagor shall have the right to _pay said debt and have mortgage dLscharged ll.! if debt had been paid at maturity. Chattel mortgages, . ecuring the purchase price of any articlo may, at any time within thirty days after the maturity of the indebtedno.·s, be extended by the mortgagee for a period not exceeding two years, and for like periods thereafter. Chat.tel mortgages upon household goods used by the family, when made by husband or wife re ·iding with the other, must be mado by husband anq wife jointly. ollatcral . Persons holding stocks n corporations ll.! collateral security not per.-onally liable as stockholders for corporate debt·. A pledgee of stock may nevertheless represent same at corporate meetings. Transfer of .-tock either iu pledge or otherwi!· , must bo noted on the book of the company within ::,ixt.y days or the transfer ,void for some purpo ·e ·. Commercial J>aper. To be negotiable, au in trumcnt must contain an unconditional order or promise to pay to order, or to bearer,  a certain sum of money or demand, on at a fixed or determinable time or times. The instrument may authorize that upon default of payment of any installment, or of interest, the whole shall become due, and in case of non-payment, the sale of collateral securities, or confe ·sion of judgment, or waiYe benefit of any law intended for the advantage of the obligor. An instrument payable on contingency is not negotiable. The date expressed is prima facie the ,~fe d;~flior?t;e t~  s~,~~f{~ gf~~g~f~~:g~~i;rui:u9s~t ?ea~fr~~;  g~u?/a v~~U:J?:r:;~~e~atPt~a ~a~~cl~~daet1on !af{t~4T~m~ to a bolder for value with notice. Two or more payees, unless partners. must all indorse unless one has authority for all. An instrument payable to a person as cashier or other fl.seal officer of a bank or corporation is deemed prima facie payable to the bank or corporation, and may be indorsed by the corporation or by the officer. For one to be a holder in due course the instrument must be complete and regular, and taken ln good faith for value before overdue, and without notice of any infirmity in the instrument or defect in title. Holder is deemed prima facie holder in due course; but when the title of a person who has negotiated it is shown to be defective, the burden is upon the holder to prove himself a holder in due cow-se. A qualified indorser warrants the genuineness of the instrument; that he bas a good title, and that he bas no knowledge of any invalidity. An unqualified indorser warrants the instrument valid and ub ·isting. One indorsing an instrument negotiable by delivery is liable as indorser. Except when excused, pre.-entment for payment, or acceptance, on the day when due is necessary to charge drawer or indorser of an instrument. Presentment must be made on due day, and notice of non-acceptance of non-payment given on next business day to all parties primarily liable unless one has authority for all. Every negotiable instrument is payable at the time fixed without grace. ·w aiver of protest Is deemed a waiver of formal protest, presentment, and notice of dishonor. Prote. t is required only in case of dishonored bills appearing on their face to be foreign. It is optional in case of other negotiable instruments. Bills drawn and payable within this State are inland; others are foreign. Parties secondarily liable are discharged by extension of time of payment. Payment by a party secondarily liable, unle an accommodation party, does not discharge the instrument, but he may agin negotiate it. A qualified acceptance discharges drawer and indorser unless they assent. A.- ent is pre urned after notice, unle · · they dissent. Ilold r can refuse to receive a qualitled acceptance. No pre.. entment for payment is necessary after non-acceptance. A note drawn to maker's order is not complete unle. indor ·ed by him. A check must be pre ·ented within a reasonable time or drawer will be di ·charged to the extent of the lo caused by the delay. The bank is not liable to the holder until it accepts or certifies the check. \,hen not otherwi e provided by this act, the law merchant prevails. 'l'his act applies only to instruments executed on or after July 20, 1807. All instruments falling due on Sunday or holiday are payable the next business day. In Denver. during June. July and August, .::aturday from twelve o'clock noon until twelve midnight is a holiday, but negotiable instruments falling due on Saturday are payable and protestable on Saturday or next business day at the option of the holder. The provisions concerning commercial paper in this state are practically the ·ame as in all state where the ... Tegotiable Instruments Act has been adopted. Con,·eyances. ... ·o joint tenancy in real property unless expressly declared in the deed, except in certain particular cases. Unless so declared grantees shall be deemed tenants in common, Lands ~ ot necessary for wife to join not in po · ·ession may be conveyed. in deed except in a conveyance of or a mortgage of a homestead, entered as such of record. \Yitne · es are unnece.-sary. . eals are not necessary but a printed or ink seal i advisable. Unacknowledged deeds are doomed notice from the date of filing but they can not be read in evidence unle.-s subsequently acknowledged or proved, unle · they are on record for over thirty years. ( ee Acknowledgment·; Husband and Wife.) Corporation . Three or more per. ons may form a corporation by filing a certificate in the proper offices, tating t-he name. objects for which organized. amount of capital ·tock, nwnber of bares (not Je.,;s than 1. 00 or more than 100. 00 per share), term of exiJ tence (not to exceed twenty year,;, except in particular cases), number of directors (not le· than three or more than thirteen), and names of those to manage the corporation for the first year, the place where principal office is to be k pt, and counties in which its business i,; to be carried on. If part of the company's business is to be carried on beyond the limits of tho ,. tate, that fact shall also be stated in the certificate. The c-ertiflcate shall also tatc whether or not cumulative voting shall be permitted. Fee for filing Article· of Incorporation of dome tic companie · i 20. and 20 cent · on each thousand dollars in exce.- of 50,000. Foreign corporation 30, and 30 cent· on each thousand dollars in exce ' of 50,000 represented by capital, property and as ets employed and located in olorado. Directors of a mining or manufacturing corporation cannot encumber the mines or plant of such corporation until the question has been submitted to the stockholders and a majority vote of all the hares of tock bas been made in favor of such proposition: and -uch mortgage or encumbrance umula.tive method of without such con ·ent is ab ·olutely void. balloting for directors is permitted. , tockholders are liable for corporate debts to the amount unpaid upon the . tock, except that stockholders in bank.-, avinl?S banks, trust, deposit, and security ru ·ociatiou · are indi iduallv reHponsible in double the amount of the par valyc of their ·tock. \Vnen the tock becomes fully paid up, a certificate to that effect should be filed. The directors are required annually, and within sixty day - from January 1st, to fl.le a report stating the amount of tho capital stock the proportion actually paid in. and the amount of existine; debt. , together with many other particulars. \ failure to tile such report makes all the director· and officers of tho company jointly and everally liable for all the debts of tho company contracted during the year next precerling the time when such report should have been flied, and until such report shall be made and filed, and ubJect.,; pre ident and _. -retary to a fine of not le than 1,000. ... ~o meetin · of the boarll of directors can be held out ide the .'tate unle · · so provided hy tho Articles of incorporation. Corporations may be di! olved b:r a two-thirds vote of the entire tock. A cori:ioration under the la s of olorado, maY extend it charter by ·peclal meeting of the . tockholclcrs, called orporate lifo shall be by 10 per cent of the entire> capital ·tock. renewed for entire term, not e ceeding twenty years. Foreign corporations doin bw,ine · in this 'tatc arc not allowed a longer term of corpor te exist n e than dom tic corporations of like character. but must tll ren wnl certlfl ·ate. and pay fee.- therefor in the sam • manner as <lorn stic corporation .. pruvitlod that such renewal must not ext 11d th life of th foreign corporation beyond the ter!Il fixed by the :tato wllcre it was organized. (,enerally no foreign corporation shall have or o. erci any corporat powers or hold or acquire any real or per onal property, franchi e-. rhtht . or prh·ll~~s. or be permitted to do any hu-,in · or pr ecute or defend any mt 1n thi 'tato, until it hru tiled in the proper ofUce copy of it." charter and incorporation act, and de ilmated an a nt upon whom service o! proce: · can b made, nd until all pr, cribed fee inclullin~ license tax. ·hall hav' b en paid, and until I,· uancc of a c rtificate setting forth uch full pa~'lll0Dt. In addition to all otber re~. and ta,res. every dome tic corporation shall pay on or before the fir ·t day or .May or each year, an annua1 0  BANKING AND COMMERCIAL LAWS-COLORADO State corporation license tax to the secretary of the State of Colorado, of ten dollars on a capitalization of one hundred thousand dollars or less and ten cents on each one thousand dollars or fractional part thereof, when the capitalization is more than one hundred thousand dollars, and every foreign corporation shall pay at the same rate upon that proportion of its capital, property and assets located and e~[i!~dp~~s~~~~t the Revenue bill, approved August 4, 1917, and this act regarding annual reports, assessment of tangible and intangible property, etc., too voluminous to be quoted, make it advisable that care should be exercised by both domestic and foreign corporations operating in the State to acquaint themselves fully with its requirements. (See Guaranty Companies; Trust Companies; Transfer of Corporation Stock.) . Courts. Justices of the peace have jurisdiction in matters involvmg less than 300, county courts in matters involving less than $2,000, except in the administration of estates, where jurisdiction is unlimited. The district court is the court of general jurisdiction. The supreme court is the court of final appeal, and also has some original jurisdiction, as in cases of habeas corpus, mandamus and other remedial writs. Days of Grace. Are abolished. (See Commercial Paper.) Depositions. The deposition of a witness out of the State shall be taken upon commission issued by the clerk of the court where the suit is pending on the application of either party on five days' ~revious notice to the other, which notice shall be accompanied 0  t! ~i~J  ~t!r~~';;~~i::X.!~l~P~~a~efh;°p;~iie~o~ss~~Y ~[ ~a~ Judge or justice of the peace, or to a commissioner appointed by the to take affidavits and depo itions in other States State the of governor and Territories, or to a notary public. The adverse party may file ~d have attached to the commission such cross-interrogatories as  t{;e ~!io~!f~~·oriif;~i~. ~~~na~~~~e~Yd:~t;~o~~~;i ~b~~~a~~ order of court directing it to be so taken. Depositions can be taken at any time after starting suit. Descents and Distributions. The estate of an intestate descends one-:\}alf to the surviving husband or wife, and the residue to the surviving children and descendants of children, if any; if none, then the whole descends to such surviving husband or wife. Except ashilenumerated the e tate of every intestate descends: 1. To his cth dren urviving, and the de cendants of his children who are dead, e descendants collectively taking the share which their parents wthould have taken if living. 2. If no children nor their descendants, en to his father and mother. share and share alike, and if one dead, t~en to the other; if no father or mother, then to his brothers and sthisters, and to descendants of borthers and sisters who are dead, e descendants collectively, taking the share of their immediate ancestors in equal parts. 3. If none of the foregoing living, then to the grandfather, grandmother, uncles, aunts and their dEl! cendants. the descendants taking collectively the share of their immediate ancestors in equal parts. 4. If none of the relatives above enumerated be living, then to the nearest lineal ancestor and their descendants, the descendants collectively taldng the share of their immediate anfcestors in equal parts. All posthumous children or descendants o the intestate, inherit as if born in the lifetime of the intestate, andllall children of the half blood and all legally adopted children sha .iD?erit as children of the whole blood. Illegitimate children inh er1t if parents subsequently intermarry. Dower. Common Law Dower and curtesy are abolished, as such, binut .statutory half of husband and wife in each others estate is given beu of old common law dower and surtesy. (See Statutes.) Executions. Executions may be issued where no appeal is taken, and when placed in the hands of an officer become a lien upon all pe~so)'.lal property of the debtor not exempt, in ~he county to whiqh it 1s issued, and it may be directed to the sheriff of any county m the State. Executions may issue upon judgments at any time after five days from judgment and within twenty years from the date of entr:y but from and after twenty years from the entry of judgment. it is considered satisfied unless revived as provided by law. Debtor or legal representative has sb: months to redeem land from sale under execution. Judgment creditor has three months after expiration of said six months. Judgments can be made a six year lien on real ~~a~:a~fe~i~t~r s~£u~t~r:i~ transcript with recorder of the county where 0  Exem1>tion . Homestead, consi ting of town house and lot or lots, or of any farm to the value of not to exceed $2,000, i · exempt, When such home ·tead has been entered of record as such, and is occupied by a householder the head of a family. Personal property exempt include all wearing apparel of the debtor and his family Pictures, school books and library, beds and bedding, stoves, cooking utensils, and household furniture. not exceeding '100; provisions and fuel for sb: months; tools, implement , or stock in tr~de, up to $200; one cow and calf ten sheep and necessary food for six months; wor!{ing animals up to' 200; the l!brary and impleme;its of a ~rofe ·1onal man up to 300 · one bicycle and one sewmg machine. Persons not tho heads of fanlilies are entitled to tools, working animals, and stock in trade not exceeding $300 in value. When debtor is hea~ of family, or wife of bead of family, 60 per cent of. wages d~e at time of levy under execution, attachment, or garm hment, 1s exempt, when such family resides in the 'tate and i dependent, wholly or partially upon such earnings for support. If uch wages do not exceed 5. oo 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, remov~ 01: dispose of any go_ods or chatt,els, or are parties to any bond, su~t. Jud~me!1t. or execut1<;>n, contract or conveyance had made, or contrived ,y1th mtent to. d~ce1ve and defraud or defeat hinder or delay creditors; are crrmmally liable. One 'who purchases goods on credit under au a,<;sumed or fictitious name with intent to defraud the seller; or having purchased goods on credit shall, with intent to defraud the seller, sell, hyp_otbecate, or otherwise dispose of them out of the usual course of busmess, or secrete himself, or abscond, shall be guilty of a mi ·demeanor. Frauds, Statute or. The following must be in writing: Contracts for leasing of land for period longer than one year or ~or the ~ale of lands or any interest in land ; every agreement wh1ch by its terms is' not to be performed within one_ year_: evefY special Promise to answer fo1· the debt, default or miscarriage of another; every agreement, promise, or und_ertaking made upon consideration of marriage except mutual prolillSes to marry, and every contract for the sale 'or any goods, chattels, or things in action, for the price of $50 or more unless the buyer accepts and receh"e part of such goods or the e,·ideuce of some of them. or the buyer at the time payg part of the purchase money. ( ee Sales of Personal Property.) Garnishment. ( ee Attachments.) llolidays. 1'he 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. Thanksgiving Day, .Arbor Day, being 3rd Friday in April. Colorado Day, being August 1st. Labor Day, being first ~londay in eptember, Columbus Day, being 12th day of October. In addition to the above,   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1863  Saturday is a legal half holiday during June, July and August in all -ot all cities of Colorado having a population of 25,000 and over. tho above are legal holidays for every purpose. personal real, property, separate their Husband and Wife retain and mixed owned at marriage, and any such property which shall come to either of the~ by descent, devise, or bequest, or the gift uch property of the of any person, for their own separate use. wife is. not liable for the husband's debt . Wife may carry on trade or busmess, sue_and be used, contract debts,. and execute prombsory notes, bonds, bills of exchange, and other mstruments 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 futurt:, _when. made by husband or wife residing with the other, must be JOJned ID 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 wTiting of the other, executed after death of the testator or of testatrix. Marriage revokes a will previously made. 'l'he husband is liable for the debts and liabilities of the wife contracted before marriage to the extent of the real and personal property he may receive with or through her, or derive from the sale or rent of her lands. and no further. The expenses of the family and the education of the children are chargeable upon the property of both husband and wife, and in relation thereto they may be sued jointly or severally. Either husband or wife living together can , eparately declare property of record in the name of the other "A Homestead " either can mortgage by an entry of record over his or her ignature. nor convey homestead without the signature of the other. Interest. The legal rate is 8 per cent, hut any other rate may be flx~d by agreement with the exception of loan - of $300 or less upon which the maximum rate is 12 l)Cr cent. .b.:ight per cent is allowed on overdue (londs, hills, promissory 1~ott.,>s, ~nd judgments. ( 'ounty tow~ .. and. city warrants a.od other like evidences or certificates of muruc1pal mdebtedness bear 6 per cent interest from pre eotation. Judgments. A transcript of judgment may be filed in the office of the county clerk and recorder of any county in the State and thereupon such judgment becomes a lien upon all real property owned by the judgment debtor in that county. The lien holds for six years from the date upon which filed (and successive transcripts may be fl.led.) An unsatisfied judgment should be revived every twenty year·. ( ee Executions.) Limitations. Actions for the recovery of land must be brought within twenty years after accrual of right. Actions for the recovery of lands actually occupied by another under a connected title deducible of record or under tax or execution or other sale ordered by court must be brought within seven years after possession taken If title is acquired after taking pos ession, statute runs from date of acquiring title. Actual posses ion 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. 'rhe 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 trespass on land and for replevin, mu t be begun ,vithin six years after the cause of action accrues. Actions against sheriffs and coroners, for liability incurred by them in their official capacity, shall be brought ,vithin 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 discovery, in case of a trust not cognizable by the courts of common law within five years. In actions accruing out of the State upon contract, express or implied, or upon any sealed 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 doubtful. (See 117 Fed. 400.) Married Women. (See Husband and Wife.) l\.Iechanics' Lien . Mechanics, material-men, contractors, subcon tractors, builders, miners, and all per ·ons of every class performing labor upon, or furnishing materials used in the construction or repair of any building, or any other stFucture o! improv~ment upon land, also all who have rendered their profess10nal, skilled service upon such structure, have a lien upon the property, also those who work or furnish materials or machinery for the working of a mining claim or mineral deposit shall have a similar lien. Liens rank in the following order: 1. Laborers or mechanics working by the day or piece without furnishing material. 2. 'ub-contractors and material-men' who e 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 flle claim of lien. Action to enforce such lien must be commenced cl~i~d.ix months after completion of the building upon which it is l\lortgages. Ordinary mortgages on realty are in common use· also deeds of trust to a public trustee and to p1·ivate trustees. A trust deed to private trustee is foreclo ed as to a mortgaae. In case the public trustee is named, the property is sold by him a.c;; provided in the deed, after advertisement in a newspaper designated in the t~ust deed, and such adv~rtisement shall not be le. s than four weeks. t: pon a sale. by the public trustee, a certificate of sale is i sued. A subsequent mcumbrancer may redeem by paying the amount bid and the sum so paid shall be added to the amount of tho subsequent encumbrance. 'I'he grantor in the trust deed or his assigns may !'(:!deem from sa).e within six i:nonths. After six months, and within nme months, a Judgment creditor may redeem. After the expiration of the period of redemption the public trustee executes a deed to the propeFtY to the holder of the certificate of sale, which is assignable. gt~n from ales of mortgaged property the same as sale.-; under 0  !~~~~t1  Notes and Bills of Exchange. (See Commercial Paper.) Partne!' hips, Limited and Special. A limited partnership ~ay consist of one or more g~neral partners, jo!ntly and severally hable, and one or more special partners contributing a specified amount o~ ca.sh or property, who are not liable for the debts of the partnership be;vond the amount so contributed. Only the genera[ partners ca~ bmd the firm. A certificate must be signed acknowledged, pubhshE:d, and. filed of record giving details of partnership All persons. dom~ bu. mess under. any n!lme other than their personal names, must file an affidavit showmg the real per ons repre~~~~~te~r a~J~!~~ not bring suit upon debts due, and may be   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  BANKING AND COMMERCIAL LAWS-CONNECTICUT  1864  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  ~~:ss~?~h~f tr~~r~;~ ~wEe~id~ejinof~~e~t°i>n~ri~igi~u~1,e p~~~ se sion, wrongful detention and value of property, etc. Redelivery bond in similar amount may be given by defendant in forty-eight hours after levy. Sales of Personal Property. Every sale or assigm;nent of goods and chattels in the po ession 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 posse ion. Sales of any portion of a. stock of merchandise otherwise than in the ordinary course of trade are prima facie fra.dulent and void against creditors, unless seller and purchaser together, before sale, make inventory, showing quantity, and cost price of the various article ; and unle purchaser makes full inquiry of the seller as to names and addre es of all creditors of seller, and the a.mount due to each, and obtains a.n answer; and notifies each creditor of the proposed sale, the cost price, and tbe proposed selling price; and unless the purchaser retains the inventory and written answer at lea ·t 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 a.re some other exceptions to this law. (See Husband and Wife.) Suits. (See Actions.) Taxes a.re generally a lien on real estate until paid, as also upon stocks of goods induding new goods added thereto, Taxes may be pa.id in two semi-annual installments; the first on or before the last day of February, and the residue on or before the last day of July of the year following the one in which they are assessed. Tax  tt~:l~~~~o R:i  ~t1 ti:~  ~e~r~nh~t~~ rr~~~~r~; ~~~n ~:; re;;f~~~s estate sold for taxes redeemed any time until treasurer's deed issues. 1::1i~:fitt~?o~finltfrgraet~t~h°M1t~ c!~~s~:,n~:tia~~~mf~ad tt! taxes levied and enforced by sale of the property taxed in default  Ffe°J~~~~:?'  l::e~nc!~:tt~t~~re~fh:[ fl3:~~i~fon;bt~ ~!fia~~~;ti:. is 18 per cent per annum. Household goods to the value of $200 belonging to a head of a. family are exempt. WIils. Ma.Jes of the age of twenty-one years, and female of the age of twenty-one years, may dispose of their real and persona.I  0 ~~1;Yp~;o:~r ~~! ~=::~i~ee!~f;!!Yy:tr b~g;sr~l~~t~~~y~v~ E~ 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 bim in his pre ·ence and at his direction, and attested in his presence by two or more credible witnes!Oes. Unless otherwise expressed in the will an after-born child will share in the property. Devises and bequests to witne ·es 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 bis presence and by his direction and consent, or by another will or credit, declaring the same, duly signed and witnessed, or by a. formal annulment thereof. The property devi ed by will must be administered by the county court, and all property of non-re.-;idents must generally be administered to clear title to real property situated in this tate. (See Husband and Wife; Descents and Distrjbutions. Admiuistration of Estates.)  SYNOPSIS OF  THE LAWS OF CONNECTICUT RELATING TO  BANKING AND COMMERCIAL USAGES Revised by WM. A. ,vnraaT & SoN, Attorneys at Law, New Haven. Account . 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 uits.) Acknowledgments. ( ee Conveyances.)  Actions. There is but one form of civil action. Mesne process in civil actions consists of a writ of summons or attachment, describ-  ing the parties, the court to which it is returnable, and the time and ~~etg~a~J~:~ ~°o~t~fonef~fig~ ~~~ ~1!fiPi;1'j~:dabi superior court, or judge or clerk of the court to which it is returnable. The complaint should contain a concise statement of the facts constituting the ca.use 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 or Estates. The probate court has jurisdiction of deceased estates. Administration on intestate estates is granted to the husband or wife, or next of kin or to both. · On their refusal or incapacity, or upon objection by any creditor or heir to such appointment found reasonable by the court, then to any other person whom the court deems proper. Bond·. which must be furnished by the administrators or executors, are usually made double the estimated value of the persona.I property. Bonds of surety companie authorized to do business in tbe tate may be accepted. Where the will waives the bond a nominal bond is required, usually in double the amount of the debts of the te ta.tor. Deceased estates may be settled as soh·ent or insolvent. Not le · than six months a.re limited for the pre ·entation of claims against deceased estates, whether solvent or insolvent. Such claims are pre·ented to tbe administrator or executor if the estate is solvent, or to commissioners appointed by the probate court if the estate is in olvent. Creditors not inhabitants of this ta.te may exhibit their claims against any e tate which bas not been repre ented insolvent, at any time within one year after order of notice, and if presented more than six months after order of notice, shall be entitled to payment only out of the clear e.·tate remaining after payment of claims exblbited within time limited. Suit must be brought within four months from the time of receiving written notice from tbe administrator or executor of a solvent e ·tate of the disallowance of a claim. Twelve months is the usual time allowed for the settlement of decea.,;ed estates. Administrators and executors may mortgao-e real e ·tate if sbo;n1 to be for benefit of the estate, after due application to and hearing in probate court. Affidavit,;. Civil action;; do not ordinarily have to be supported by afJldavits. A.fllda.vits have no weight as evidence, and are never admitted as such. Aliens. Any alien re ident of any of the United tates, abd any citizen of France, so long as France shall accorrl the same rignt to citizens of tbe United · tates, 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 agreement in the court having jurisdiction of the subject matter, have this agreement entered of record and obtain a rule of court that the said parties shall submit to and be finally concluded by such arbitration; or the ·aid parties may personally appear in court and acknowledge that they have mutually decided to submit their controver ·y to the arbitration of certain named per ·ons and may obtain a rule of court of similar purport; or in ca:·e of an action pending in court, if the partie · thereto de ire to refer it to arbitration, each may choo. e one arbitrator and the court appoint a third; and in either of the.·e three case·. the award of the arbitrators being returned and accepted by the court, judgment shall be rendered pursuant thereto, and e. ecution granted thereon, with costs. Arre t. The body is exempt in ordinary action for debts, except for money received by one acting in a. fldu<'ia.ry capacity, or where  °a.J~~~ii:  itc~:;a~~ftet~!a~~ ~; ~rvir ;rco~ad.~ ~.g 1~t~~~~~ ~~~~~A;, generally, no attachment shall be granted against the body except debtor committed to jail on civil process can be released for fraud. on taking poor debtors' oath. The debtor will not be released if his oath i overcome by rebutting evidence. A . lgnment in In olvency. Operation of this section suspended during continuance of U. . Bankruptcy Act. Attachment . Attachment may be made upon the original proce· ·. and i served by attaching the good. or lands of the defendant, or, if ufficient good be not found, the per.-on in actions where there is fraud in contracting the debt or concealing property or refusing to pay an admitted debt. Attachments may be granted upon all complaints containing a money demand. Supplemental attachment may be ordered by the court upon application at any time during the pendency of the action. If the plaintiff be a non-resident, he is required to furnish a l>ond for prosecution from twenty dollars to one hundred and forty dollars, according to amount attached. An attachment lien expires unle s execution is leYied within sixty days after final judgment upon the attached personal property, or within four months upon the attached real estate. ( ·ee Exemptions.) Banks. ( ee tate Banks and Trust Co .) Bill of E. change. ( 'ee .1. Totes and Bills.) Bills of Ladln . Uniform Bill· of Lading Act p~_sed In 1911. Chattel 1 fort age . ( 'ee .Mortgages, Conditional Sales, and Interest.) Collateral Inheritance or Succe · ion Tax. (See Taxes.) Conditional ale . All contract for the ale of personal prop• erty, except household furniture. musical instruments, bicycles, phonographs and phonograph supplies and uch property as is by law exempt from attachment and execution, conditioned tbat t}le title thereto . hall remain in the yendor after deliyery, must be in writing, de.scribing the property and all condltiow; or ale, and ackno" ledged before proper authority, and recorded in town where vendee re.-sides. Jf not made as required, they arc held to be ab ·olute sale . except as between the vendor and vendee or their personal represeutativ ·, A crime to conceal or convey personal property held on such conditional sale. Contract·. Ordinary pro\·i. ion· of • tatute of Frauds apply. Court of probate having jurisdiction of tbe . ttlement of the C! tate of any decease<l p rson may, concurrently with the courts of equltY, authorize the exu ·utor or a.dminl trator to convey the title of the deceased in any real estate to any person entitled to it, by virtue of any contract of ·uch deco: ed per on, and the court of probate in which the guardian of any minor h~ been appointed may, in like manner, order such guardian to convey the interE'-st or his ward in any real estate which ought in equity to be conveyed to another ontrac for the com·e. a.nee of lands or of any interest person. therein, may be recorded in the record. of the town in which such land - are: and such r cord shall be notice to all the world of the equitable int-0 t thu · created. Gaming or wagering contracts ~ontract of incapable person pending appointment or are void. conserrntor or of ·pendth.rift pendlnu: appointment of overseer, voidr when elect, men have filed ln town clerl 's office certified copy o application in ca-;e of incapable person, and c rtitled notice of propo ed appointment in case of ·pcndthrift. _ ·o person who receives a valuable com ideration for a contract, expr · · or implied, made on unday, hall defend any action upon uch contract on the ground that it was -o made until he re t re· uch con~icteration. The Uniform .'ale:s Act, pa. cd in l!.l07 c ver contract~ to ell. (See Sales by Retail Dealers.)  r~~tl  0  0  1  1865  BANKING AND COMMERCIAL LAWS-CONNECTICUT ss  ibnd ch he le.  ·cis  eir  to her urble  ted Vet' ahd  :ignt or orn the and reeave :that uch  urt  heir ay tion itra. d;  eing ered cept here able ions cept ased his  11. and  pply. state uitY, f the  ·rtue obate y, in ward other tere t such f tbe tracts nt of , void PY of f proceives made ound Uni· Sales  Conveyances. All conveyances of land must be in writing, signed, sealed, and acknowledged by the grantor, and atte ted 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 tate or of the United States, a clerk of the superior court, court of common pleas, or district court, justice of the pease, commissioner of the school fund, commissioner of the superior court, notary public, town clerk, or assistant town clerk, if in this State, and if in any other State or Territory of the United States, then before a commissioner appointed by the governor of this State, or any officer authorized to take the acknowledgment of deeds in such State or Territory, and if in a foreign coUlltry, before any consul of the United States, or notary public, or justice of the peace in such foreign country. Conveyances of real estate situated in this State, exec-uted and acknowledged in any other Atate or Territory, in conformity with the laws of such State or Territory, are valid, If the land conveyed belong to the wife, the husband should join in the conveyance, if married before April 20, 1877. If the land conveyed belongs to the hushand, the Wife need not join in the conveyance. No separate examination of a married woman is required in taking her acknowledgment. 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 th~ town in which the land lies. Corporations. Corporations may be formed under the 11:eneral laws by three or more persons for the transaction of any lawful business 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 company, and gas and electric lighting, water company, or any company Which shall need to have the right of eminent domain. A certificate of incorporation mru t be filed, iiimed, and sworn to b_y all the incorporators, giving the name and location of the corporat10n, the nature of the business, the amount of authorixed <'apital stock, which must not be Jess than 2,000, number of shares and Par value of each, which shall not be less than S2/i, amount of capital shtock with which it will commence business, which shall not qe le. s t an $1,000. A certified copy must be filed in the town clerk's office. The organization fee must be paid to the State, of fifty cents on every thousand of its authorized capital stock up to five million, no payment to be less than $25. Stock may be paid for eit,her in cash or property, but if in property, a majority of the directors mm,t 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 valuat ion, directors Personally liable. f Certificate of organization must-be signed and sworn to by a majority ~ the directors and filed in the office of the secretary of state, setting ~orth the amount of stock subscribed for. amount paid in cash and m Property names and addresse of subscribers with number of sbbares subscribed for. statement that the directors ·are officers have een duly elected and by-laws adopt,ed, name 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 b e filled by remaining directors. f: No stoc-k can be issued until it bas been paid for in full. Receipts _eror Partial payments of .·t,ock may be Lsued by the trea. urer. tblflcates for fractional shares cannot be L sued. The corporat10n . as a lien on capital tock owned by any person for debts due to lt from the stockholder. The corporation may acquire its own •'~Pita! stock with the approval of three-fourths of the stockholders, given at a meeting called for that purpose. Stockholders' meetings must he held in this State. Similar corporations may consolidate. A corporation may be wound up by V<Jluntary a~eement of all stocl~holders, sie;ned and acknowledged, directors actmg as trustees to wmd up the bu iness. . Receiver may be appointed on application of stockholders OWJ:!mg one-t,enth of the stock in case of. fraud. mismanagement, or 1f assets are in danger of waste by attachment, or when corporation has abandoned its business. Annual statements must be flied in the office of the secretary of ~tate and a certiiled copy thereof in the town clerk's office. either 1D Ja~uary or July, giving tbe names and addre',es of _the offlc~rs and directors amount of outstanding stock not paid for in full with the amount due thereon the locat,ion of the principal oilke in this State with the name of 'the a~ent in charge on whom process may he served. For failure to flle annual statement the corporation may forfeit 25 to the State. osts. For case before justice of the peace, a~tual cash_ costs not less than $5; before city court. from . JO to a0, aceordmg to amount involved· before court, of common pleas or superior court, not les.s than $25: before supreme court of error . not 11.'ss than $50. Attorney's fees :riot inducted. Attorney justified in a;;king deposit of Sl5 for case in justice's court and i>O in any other court before bringing suit. (See Insurance Companies, Injunction , etc.) Courts. Terms and Jurisdiction. Ruperior court holds one _te\m Per Year in each county for the trial of ch:il ca~-;es, and has JU1:"ISdictio!J in au law and equity cases exceedmg -.>DO, and exceeding Sl00 1D those counties whero there are no courts !,)f common pleas. e"'. ~on.don, and Court of common plea.s in Hartford, Fairflel~. ew Haven counties bas exclusive law and eqmty junsd1ct1on aboYe SlOO and below 500 and cont'urrent juri. diction with the superior court ahove $,500 and up to 1.000, and in Litchfield 'ounty ha.<; ot le. s than four te_rm, each exclw,h-e jurisdiction up to $1,000. ;vear are held in each of the counties named, a11c1 there are c:-1ty !'0~1rts ID many of the cities, and a di. trict court at ,\aterhury, with lumted civil jurisdiction. also town court in many of the towns. Probate courts have jurisdiction of the settlement of the est~tes of_ de<'ea. ed, insolvent, am! incompetent persons, and are. es~abhshed _m a ~arii:e number of 1,rohato districts-one for each dist.net. Justices of the Pea,c,~ have c-ivil jurisdiction up to 100. In • 'ew Haven and Ha_rtforct Jurisrli<'tion of justiee of tho peace has been tran ferred to city court, except in cases of summary process and ba.'>tardy. uays of Grace. (See otes and Bills of Exchange.) Deeds. (. ee Conveyances.) Depositions. May be taken in a civil action _by a Judge C?r ~Jerk of any court; justice of the peace, notary pubhc, or comm.c 1oner Of the superior court, when wit.ne. _s li~es out (?f the , tate. or more than twenty miles from place of trial. 1s over sixty year.· of age and unable to a'ttend the trial. is going to ea, or out of the • tate, or by age and infirmity is unable to travel to court, or is confined in jail. Reasonahle notice mu-;t be given to adYet'!!e party. Depon 'Hts must be cautioner! to speak the whole truth, and carefully e,amined. They nmst subsceibe their depositions and make oath before the authority taking the same, who shall attest the . ame and certify that the adverse party or his agent was present (if so), or that he Was notified and shali aJ-,o certify the reason of taking such deposition. seal it up, direct it to the court where it i. to be u.·ed, and delir.ver it, if desired, to the party at who. e reque. t it was taken. Depositions may be taken in any other , tate or country hy a nota1·y Public, commissioner appointed by the governor of thi State, or by   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1 !~~ ~ar!ki:1~tge~:r;i~gfo~~;~r ~-ini!~e~ ~l~/;,~a~;t~1• le~1::l lot~.e~o~~L or vi<'e-<"onsul appointed hy the lTnited Sta, 01-o, if tak<'n out of t.he Uniter! ~tatr.s. A judg-e of the superior. c-ommon pleas. 01 di-;trlct court c-an issue a "commission" to take the <leposit inn of a J>Prson residing out of this Flt.ate. to be m e<I in a cause pendin!? t ,efore sm·h court. The superi' r court. upon petition. may allow depo--itiomi to be t.aken to perpetuare testimony C"nn<·erning th:H whi<'h may thereafter be the suhje<'t- of a -,uit. 1'he per-.;on taking depo-;itions may compel attendance or witnesses by suhprena and c-apia-; oescent and Oistrihution of rropertv in Intestate Estat.,.s. (As to the share of a surd,ing husband or wife see the title Husband and Wife.) After the share of tie surviving husband or wife, the residue of the real or personal estate i..: di:stribntecl in equal proportions among the children and the legal representatives of any of them who may he dead (children who have re<'eived estate hy advan<'ement of the intestate in his lifetime IJeing <'harged with the same in the distribution). If there be no children or leg-al represE'ntatives thereof, such re. idue shall he distributed to tJ1e pal'ent or parents, then equally to the brothers and sist,ers of the intestate of the whole blood, and tho e who legally represent, them: and if there be no such kindred, then equally to the brothers and sisters of the half hlood and those who legally represent them: and if none, then equally to the next of kin in equal degree. kindred of the whole blood to take in preference to kindred of the half blood. in equal degree, and no representatives to be admitted among collaterals after the representatives of brothers and sisters. Dower. (See Husband and Wife.) Evidence.· (See Courts, Insurance Company. Corporations.) Executions. Issue on final judgment, and are returnable within o execution issued in an action founded on contract sixty days. merely can be levied on the body of the debtor exc-ept for breach of promise of marriage, misconduct or neglect in office or professional employment, or breach of trust and cases where the rip;inal attachment is against the body. Any judgment debtor. an exe<'ut.ion against whom shall have been returned unsatiflsed in whole or in part, may be examined on oath touching his property and means of paying such judgment, and may be committed for contempt. (See Exemptions.) ExemJ)tions. Homestead, to the value of $1,000, if deC'laration to hold it as such is recorded. Of the property of any one person, bis necessary apparel and bedding and horu ehold furniture ne<'essary for supporting life; any pen. ion moneys received from the l'nited States while in the hands of the pensioner (which bas been construed to cover also such pen.,ion money when deposited in a :-avings bank); implements of the debtor's trade, his library not exceedin~ ,mo in value; sundry domestic animals not exceeding $150 in value; so much of any debt which ha.s accrued by res.son of the personal services of the debtor as shall not exceed 15, inrluding wages duP for the personal services of any minor child (but there shall he no exemption of any debt accrued by reason of the personal services of the defendant against the claim for the defendant's personal board, or for the rental of any house or tenement occupied by the defendant as a place of residence when such rental shall not exceed $25); of the property of any one person having wife or family. two tons of coal, specified amounts of food-stufl's; the horse of any physician or surgeon not exceeding $200 in value, and hi'l saddle, bridle. harne. s, and buggy, also his bicycle; one boat_ owned by one person, with rig~ing, tackle. etc., not exceeding 200 m value. used for planting or t·aking oysters or clams or taking shad; one sewing machine being property of any one person using i~. or ha':ing a famil):: 0?,0 pew being property of any per. on havmg family who ordmar1ly occupy it. and lots in any burying ground; and all benefits allowed by any association of persons in this tate toward the support of its members, incapacitated by sickne. · or infirmity, shall be exempted from foreign attachment or execution. Foreign Attachments. Good concealed in the hands of agents or debts due the defendant are rea,•hed by foreign attachment which o assignment of future earnings takes the place of garnishment. 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 shaU be tated therein as nearly as possible, nor unless the term for which they are ~ signed shall be definitely limited in the assignment, nor unless recorded before such attachment in the town clerk'<; office in the town where the assignor resides, or if he resides without the tate, in the town where the employer resides, and a copy left with the employer. (See al ·o Exemptions.) ForeiAD Corporations. Every foreign corporation. except insurance and suret,y companies and building and loan a sociation.· 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 cho. es in action of other per ons or corporations as investments), shall, before transacting business in this State, file in the office of the secretary of the State a cert.ifled copy of its charter or certificate of incorporation, together with a statement, signed and sworn to by its pre. ident, trea.surer, and a majority of its directors, showing the amount of its authorized capital tock and the amount thereof 111 ~:e~!I~e Ptt~n in a~~~hi,f :~J'h !t ~~:~ihsg:~~it f~:rhbit~ part,iculars thereof. • ec. 83.-EYery foreign corporation with an office or place of busine in this State, except insurance companies. surety companies, and building and loan associations, shall, before doing busine. s in this State, appoint in writing the secterary of the State and nis successors in office to be its attorney, upon whom all process in any action or proceeding against it may be served; and in such writing such corporation shall agree that any process against it which is served op such secretary shaU be of the same legal for<'e and validity as if served on the corporation, and that such appointment shall continue in force as long as any liability remain, outstanding against the corporation in this L tate. Such written appointment shall be acknowledged before some officer authorized to take acknowledgments of deeds and shall be filed in the office of said ecretary, and copies certified by him shall he sufficient evidence of such appointment and agreement. Service upon said attorney shall be suffi<'ient service upon the principal, and may be made by leaving a duly atte. ted copy of the process with the secretary of tbe State or at his office. Every foreign corporation doing bu ines.'l in thi !-Hate shall, within thirty days after an increase or reduction of its capital stock file in the office of the ecretary of the State a certiflca1 e sub. tantially like that required of dome. tic corporat.ions organized under the like conditions. The pre. ident and trea.surer of every foreign corporation doing business in this State which is not re11uieed 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. ecretary of the State a certificate similar to the cert,iflcate required of domestic 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 certifl<'ate in a book kept by him for that purpose and shall furnish a certified copy to be recorded in th office of the tO\vn clerk of the town in this tate in which such corporation has it. principal office or place of business, and said town clerk shall reC'ord the . ame in a book kept by him for that purpose. On the fifteenth day of March and September  :!~~  P:f   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1866  BANKING AND COMMERCIAL LAWS-CONNECTICUT  the town clerks of the several towns shall report to the secretary of the tate the names of all corporations who ·e annual report 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  s :~  1  fiihj~t~~~~f-~!':i~r~~ ~g~f1.fo~~r ~e f~~et~:ss 3!et~J:?m 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 judgment rendered in another State, evidence on the part of the defendant that he had no legal notice of the suit and did not appear, is admissible, although the record of the judgment stated that uhe 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 Connecticut, unless such court had jurisdiction of the person against whom it is rendered, acquired either by ervice upon him of the process in the suit, or actual notice to hipi of tho suit, or at least by his having appeared in it, and thus submitting to the juri diction of the court. Jurisdiction presumed to have been properly exercised, if court once had jurisdiction. Notice presumed of re umption of jurisdiction if required by practice of foreign court. A judgment recovered in a sister State is a bar to the further prosecution of an action pending at the time in this State between the same parties on the same cause of action. It makes no dillerence that the judgment 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 sueh pleas are pleadable to a foreign judgment, as are pleadable when rendered. Fraud. All fraudulent conveyances, suits, judgments, executions, or contracts, made or contrived with intent to avoid any debt or <1:uty belonging to others, shall, notwithstanding any pretended consideration 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.) Holiday . (See Notes and Bills of Exchange.) Husband and WUe. 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 e tate 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 charge.5 allowed against the estate. The right to such third can not be defeated by will. Where there is no will the survivor shall take such third absolutely, and if there are no children, shall take all of the estate of the decedent absolutely to the extent of $2,000, and one-third 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 judf.!:e may dissolve temporary injunction granted by other court. All facts stated in application 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 adver e party, that he may show cause why such injunction should not be granted; and it shall be sufficient, on such application for a temporary injunction, to present to the court or judge the original complaint containing the demand for an injunction, duly verified, without further complaint, application or motion in ,vriting. 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 returnable, or by any judge of the superior court; provided a written motion for such dissolution shall be prepared before the return day. Any person who may be directly or indirectly interested In, or affected by the granting of any temporary or permanent injunction, may ~ppear 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 continuance of such injunction, either party may apply to the court rendering such judgment, representing that he is desirous of taking the case to the supreme court of errors, and praying that said temporary injunction may be continued until the final decision therein; and unless said court shall be of opinion that great irreparable injury will be done by the further continuance of said injunction, or that said application is made for delay and not in good faith, it shall be the duty of the court to continuelsaid injunction until a final decision be rendered in the supreme court of errors. '\Vnen in any action judgment shall be rendered for a permanent injunction ordering either party to perform any act, upon similar application to that above mentioned, a stay of operation of such injunction, pending final decision of supreme court of error', may be granted for similar reasons. The court in which such case is pending may. however, if in its opinion the cause of justice shall so require, dissolve ·aid temporary injunction or remove the stay or said permanent injunction while said cause is so pending in the supreme court of errors. uspended, owing to United State· Bankruptcy Act. In olvency. Interest. Legal rate, in ab ence of expre.' 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 intere t charge which can be made by any ... Tational Bank or any Bank or Tru t Company, incorporated under the laws of thL 'tate nor is there any limit to the interest charge on a bona fide mortgage of real property pecial la:w. for pawnexceeding the sum of five htpidred dollars. brokers. Loan companie licensed by Bank Commissioner may charge not to exceed -12 per cent per annum on unpaid balances on all loans up to 300. Judginents carry 6 per cent interest, but are not Hens, and execution may be had at any time during the life of both parties. Judgment 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 hi a signee in town clerk's  office, and such judgment from the time of filing such certificate shall constitute a lien upon the real e tat,e 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.) JI..Iechanics' liens for labor or materials furnished in the construction or repair of any building may be flied by original contractor within sixty days after completion of work; but sub-contractor must serve owner of building with notice of his intention to claim a lien within sixty days after he shall have 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. Jl..:Iechanics' liens are foreclo ed same as real estate mortgages. Unless foreclosure is instituted, liens expire two years after filing. {For judgment Liens, ee Judgments.) Llmitations to Suits. Open accounts and contracts not under seal, six years; contracts under seal and promissory notes not negotiable, 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 presumption of payment after twenty years exists. Limited Partnerships. Such partnerships (except banking and insurance) shall consi t of one or more partners, jointly and everally 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 partner.·hips shall be condu<.:ted under a company name, in which the name of one or more of the general partners shall appear; and if any special partner's name shall be used in said company name, he shall be held liable as a general partner. No such partnership shall be deemed to be formed until the persons forming it shall make, and severally sign and acknowledge before any officer authorized to take the acknowledgment of deeds, a certificate stating the company name and names and residences of all the partners designating which are general and which are special partners, and which of the general partners are authorized to transact the partnership business and sign the firm name, and also the amount of capital furnished by each special partner and the time at which the partnership is to commence and terminate: nor until such certificate, and also a certificate of the amount actually paid in by each special partner, signed and sworn to by such of the general partners as are authorized to transact the partnership business, shall be filed and recorded in the office of the town clerk of the town where the principal busine · of the partnership is to be carried on; and a copy of such certificate shall be prima facie evidence of the matter therein contained; and the partnership shall be re ponsible only for the acts of the general partners de ignated as specially authorized as aforesaid: and copies of aid certificates shall, in like manner, be filed in every town where such partnership may have a place of busine . Terms of such partnership must be published for six weeks in newspaper published in county where business is to be carried on. Any such partnershi/?i, may be renewed by filing at any time before its expiration,  ~~~ta,  ~;thtt:et~~ecl~f•;J~rs!i<;t;!:~:1 t~~~~e~~J~~~ni~ capital has been reduced or impaired since the last certificate filed by said partnership, and if so, to what amount, and by publishing not less than once a week for two weekc; in a new ·paper published  °~  tre;=:t:~ ::!i~ i:: r~ld;:r~~::sd  tt~~ii~~g ~sp~J~~g :e'ii~~n!~c1 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 or 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 10 per centum upon the ca.sh contributed by him to thfl capiLal stock; provided that such payment hall only be made out of the net profits actually earned by such partnerships during o special partner shall the year for which such payment is made. under any circumstances be considered a creditor, or allowed to o special partner shall be joined as a party claim as a creditor. in any action by or against such partnership unless liable as a general partner. tarried Women. (See Husband and Wife.) :\lortgage of real estate a.re executed, acknowledged, and recorded in the 'a.me manner as deeds, and are foreclosed by ·trict foreclo ·ure hattel mortgages to be good against third or by a decree of sale. parties, where the mortgagor retains po e.. ion, must be executed, acknowledged, and recorded a mortgages of land, and can only be made of the following described personal property-'\\ith or without the real estate in which the ame is situated or used-namely: machinery, engines, or implements situated and used in any manufacturing or mechanical establi. hment; machinery, engines, implements, cases, types, cuts, or plates situated and used in any printing, publishing, or engraving establishment; household · furniture in a dwelling house used by the owner therein in housekeeping; bay and tobacco _in t~e leaf in any building. Piano, organ, m lodeon, and any musical instrument used by an orche tra or band. Brick burned or unburned, in any kiln or brickyard. Hotel keepers may mortgage the furniture, fixtures, and other personal chattel contained and used in the hotels occupied by them or employed in connection therewith. Chattel mortgage are foreclo ed by . ale under order of court. In all chattel mortgages there must be a particular defcription of each article of personal property. Judgment for deficiency after sale, permitted. ·ota.rie!! Public hold office for two years from first clay of February of year in which commissioned, unle. commi. · ·ion i · ooner revoked by governor. ::\lay exerci ·e their function at an:v place in State. May take acknowledgments, administer oath take doposition subpoona witne · es to give dopo ·ition. The authoriuy amt ofllciai acts of any notary may be certified to by the clerk of tho superior court of the county in which he resides, except in -ew London 'ounty, where the certification is made by the clerk or the court of common pleas. ct Note. and Bills of E change. Negotiable Instruments now in force. Power. of ttorney. "Where a deed i· e. ecuted by a power of attorney it is recorded with tho d ed. Powers of attorne,· to convey real e tate must be executed and a knowleclg d in the manner required for the execution and acknowled!l:ment of the conveyance It elf. Pril'ate Bank . ( ee end of tate Bank· and Trust omoanies.)  Pro ments and D Pro Rec in Offi( mortg: of fut1 in offi to be f ance C Red Re the p posse inwhi and t posse suffici bond of at nizan Sal an int or hat ities a pro trade, not le Sal  BANKING AND COMMERCIAL LAWS-DELA WARE Probate Law. (See Administration of Estates, Appeals, Assignments _an~ In~olvency, Collateral Inheritance Tax, Courts, Descent and DIStribution of Property, Husband and Wife, and Will .) Protest. (See Notes and Bills of Exchange.) . Records. Warranty, mortgage, quitclaim deeds must be recorded m office of to~ _clerk ~ town where land lies, also assignments of mortgage, condit10nal bills of sale, chattel mortgages assignments 9f future earnings. Certificate of trade-mark to be filed for record m office of secretary of State. Certificate of unsatisfied judgment to be filed for record in town clerk's office. ( ee Conveyances Insurance Companies, Limited Partnerships, Judgments, etc.) ' Redemption. (See Mortgages.~ Repl_evy. Replevin lies for g9ods wrongfully detained , in which the pla1:Dtiff has a _general or ~pecial property with right to immediate possess10n. A writ of replevm can not issue except upon an affidavit in which the affiant states the true value of the goods to be reple,ied and th~t he believes that the plaintiff is entitled to the immediate posse. ion of the same, nor until the plaintifl' furnishe · a bond with sufficient surety_ in a sum double the value of the property. This bond or recogruzance must be signed by the obligor in presence z!~c~ast one witness other than the authority taking the recog-  ~f  S_ale of R;etail Business. Any person (including a person having an mtere t m a barber shop, dental parlor, restaurant, shoe shining 9X: hat cleaning business?, who make it his bu.sine · to buy commod~ 1ties and sell the same m small quantities for the purpose of making a profit and desiring to sell the whole pr a large part of his stock in trade, must file a notice of such intention in the town clerk's office not less than fourteen, nor more than thirty days prior to such sale. Sales. Uniform Sales Act passed in 1907. Service. Service of a writ of summons in case of a resident i ma9-e by r_eading it and ~he complaint accompanying it in the defendants hearmg, or by leanng an attested copy in the defendant's hands or at his usual place of abode; in case of a non-resident, the several co~rts, other than courts of probate, and the judges, clerks, and assistant clerks thereof, or any county commissioner, in term time or in vacation, may, except where it is otherwise specially provided by law, m<!-ke 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 per on so interested therein, that they ought to be made parties thereto, reside out of the State, or when the names or resi!fenc::es _of any such persons in interest are unknown t-0 the party mst1tutmg the proceeding; and such notice having been given and proved shall be deemed sufficient service and notice. State Banks and '!'rust Companies. A reserve fund of 12 per cent of its demand deposits and 5 per cent of its time depo its must be held and maintained in the banking office, of which 4-12 must be gold and silver coin, demand obligations of the United tates or national bank currency, or federal reserve notes and federal reserve bank notes. The remainder of said reserve fund may consist of balances subject to demand draft with reserve agents, which are members of the clearing house associations of New York Bo ton Pbhiladelphia, Chicago, or Albany, or Buffalo, or a federal reserve ank, or national banks, state banks, or trust companie . located in Bridgeport, ew Haven, or Hartford, or Waterbury, and of bonds which are legal investments for savings banks which bond shall at no time exceed at par value one sixth of the total reserve fund. o new loans or discounts may be made when the re erve is below 12 per _cent. Bank commissioners may apply for appointment of a rec~iver when the reserve falls below 12 per cent after thirty days' no~ice. "Demand deposits" shall mean all deposits payable within thirty days and "time deposits" shall mean all deposits payable after thirty days. No one person, corporation or firm may borrow more than 10 per cont of the amount of the capital stock paid in and surplus undivided 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 execut,ive officers or clerks may not be discounted. Loans to parties outside the State can only be made when the loans and discounts in tho 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 tate. o d irector may be obligated to a bank or trust company in an amount e::rceeding 5 per cent of the capital actually paid in and surplus undivided profits combined. This does not apply to loans secured by collateral. ashier'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 commi sioners, which shall be published !n a newspaper in the county where the bank or the tru t company i s 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 hall not apply to firms or individuals doing busine · as private bankers or brokers under their own names. who deposit ,~ith the tate trea urer a bond of $10,000, or acceptable sccuritie of that amount for tho protection obf c_ustomers from styling themselve~ banke_rs ii:1 ~be con~uct of their usmess. Banks and trust compames mamta1nmg sanngs departmen~s must invest depo. its according to the laws of the , tate concernmg investments of savings banks, and must make ·worn statement. to the bank commissioners on October 1st in each :rear and oftener if required by the commissioners, of the amount of uch deposits and the securities in which they are in,ested. A tato Bank 0 r Trust Company may he incorporated under General Law as provided in Chapter 194, Public Acts of 1913. Suits. (See ctions.) urety Companies. Any corporation with a paid-up capital of not less than $250,000 incorporated and organized for the purpose of tran. acting business as surety on obligation for per ·ons or corporations, on complying with certain requirements of law ]!lay be a~cept d a surety upon the bond of any per on or corporat10n reqwred by the laws of this State to execute a bond. Every foreign corporation !:>efore transacting any business i~ this State amu~t deposit wi~h _the Ul.·urance com.mi· ioner a copy of its charter or article:; of sociation, anct sworn tatcment of the condition of its busine.· . The in.·urance cb·ommissioner may thereafter issue to such company a licen ·e to do usincss in thi<i 'ta,te. uch company must appoint the insurance conintissioner its agent on whom proce s may be served. uch comPany must flle annually on or before March 1st, with the in urance ~0 mmissioner a statenient of the capital of such company and its investmonts and risks. An annual license is granted if annual statement be satisfactory. Local agents must procure certificate of !).Uthority to act as agent from the in urance commL sioner. The msurance commissioner may also at any time examine the affairs of any suretv company doing business in the tate. A r . erve fund must be maintained equal to 50 per cent of the gro: amount of   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1867  premiums received on business in force. No such company can mcur on behalf of any one person or corporation a liability for an amount larger than one-tenth of its paid-up capital stock and surplus without givin~ collateral security. Taxes. Land may be sold for delinquent taxes after due advertising, only so much being sold as is necessary to pay taxes and costs. Owner has one year in which to redeem, by paying the purchase ~one~. with 12 per cent interest. Bonds, notes, Qr other choses 11:1 action,. except bonds and notes secured by mortgage on real estate s1tu~ted m this State, may be exempted from all local taxation by paymg to the State a tax of 2 per cent on the face amount thereof for five years, or at the option of the holder thereof for a greater or less number of years at a proportionate rate. Inheritance taxes are levied on a!l property '!ithin C(?nnecticut possessed by any resident ot: C9nnecticut !3-t the time of his decease, and all tangible property withm 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 p_erso1:1, corporation, _Y?luntary association or society, with exempt10ns m favor of charities and on certain particular kinds of property. Rates of the ta~es are 1 per cent of the value of all property in excess of $10,000 passmg to aJ?,Y parent,. grandparent, husband, wife, lineal descendant, adopted child, adoptive parent and lineal descendant of any adopted chil_d, up to $50,000 with l:?'aded increases; 3 per cent on property passmg 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 !fesce!!dant of such J:)rother or sister in excess of $3,000 up to and mcludmg 25,000, with graded increases: 5 per cent of the value of all property in excess of 500 passing to any persons other ~han those above mentioned up t,o and including $50 000 with graded mcreases. Only one exemption is allowed for each clas.. Transfer of Corporation Stocks. (See Corporations.) Trust Companies. (See State Banks and Trust Companies.) in ~hou e Receipt . Uniform Warehouse Receipts Act passed  '[o:~r7  _Wills. All_ persons of ~he age of eighteen years, and of sound mm?, may dispose of. their estate (real or personal) by will. No de"'."1se, except for pubhc and charitable uses, or for the care of cemet~nes 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 mu~t be in writing, sub. cribed by the testator, and attested by three witnesses, each of them subscribing in his presence, but they will be effectual here if executed according to the la'Ys 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 a:nd no pr9vision is made in the will for such contingency, such mar: ri~e. or: birth sh.all operate as a revocation of such will. A will or codi~Il I!> otherwise revoked by burning, canceling, tearing, or obliteratmg 1t by the testator, or some person in his presence by his direction, 9r by a later will or codicil. A devise of bequest to a subscribmg witness or t9 the husI?and or wife of a subscribing witness, is void unless the will 1s otherwise legally attested, or unless the devisee or legatee. be an heir to the _testator. Wills are proved and estates se~tled m the probate court m the district where the deceased resided. Wills. of non-residents o,vning property in this State may be proved by fllmg exemplified copies thereof in district where property is located. e 1~~e~ourse sliould always be taken in order to pass good title to real Workmen's Compensation Act.  Passed in 1913.  SYNOPSIS OF  THE LAWS OF DELAWARE RELATI  TQ  TO  BANKING AND COMMERCIAL USAGES Revised by TowNSEND & BAR KY, Attorney at Law, Wilmington. ( ee Card in Attorneys' List.)  Acknowledgment. (See Conveyances.) Actions. Suit may be commenced by capias, summons, and (where defendant is non-resident) by attachment of property. Summons in justice's court may be i.·sucd r turnable in flye davs from date of service, or may be made returnable forth"ith, upon plaintitr filing an affidavit that t,here is danger of his lo ing the benefit of his process by delay. In superior court tho summons must be erved personally on debtor before court its, or by lea,ing a copy of the summons at his usual place of abode, in pre ·ence of some white adult person, six days before court its. ervice by publication allowed in the court of chancery only. Affidavit may be administered in the "tate by the chancellor any judge, justice of the peace. or notary public, and out of t,he tate by any official duly authorized to take acknowledgments of deeds. etc.; but before a notary public is preferable. The afliant must sign the affidavit. Assignment and Insolvency. There is a domestic insolvent law I?ro_viding for a full surrender and equal distribution of all property, but 1~ IS very seldom u.5e·d, and there is no provi: ion in the act for the_ discharge of the debtor upon hi: making an assignment. The assignee mu t file a schedule of property assigned within thirty days and two apprai ers are then appointed by the chancellor. Assign: ment mu t be for the benefit of all,lcreditor alike.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1868  BANKING AND COMMERCIAL LAWS-DELA WARE  court; regular terms, New Castle County, at Wilmington, on the Attachments. Domestic attachment may be issued against an fourth :Monday in March and second .:\Ionday in September: Kent inhabitant of this State, after a return to a summons or capias issued County, at Dover, third :\londay in March and third :\l or1day in ten days before the return thereof, of non est inventus, and proof September; Sussex County, at Georgetown, second .:\fonday iri i\larcb of cause of action: or upon the filing of an affidavit "that the defendant is justly indebted to the plaintiff in a sum exceeding $50, and and first l.vlonday in eptember. Superior court, and court of general sessions are held in ~ew Castle County at Wilmington the flrst i\lonhas absconded from tbe place of his usual abode, or gone out of the day in January, :\larch, :\lay, and Xovember anu third .:\lon ·ay in State with intent to defraud his C-Teditors. or to elude process, as is believed." The writ directs the attachment of property and sum. eptember, in Kent County at Dover, the first :Monday in July and the third Monday in February, April, and October, and in ::.-\ussex mons of garnishees. Attachment may be dissolved on entering security to satisfy any judgment to the extent of the property attached County the first Monday in February, April, and October and last that may be recovered against the defendant. On return of attachMonday in June in Georgetown. Oyer and terminer meets on call of judges. Jurisdiction-The superior court has jurisdiction in all ment the court appoints three persons as auditors of the claims of civil cases, but if suit be brought for less than $50, costs will not creditors; the creditor attaching is allowed a double share for his be recovered. Justice's jurisdiction, $200. New Court known as diligence, not to exceed full amount of debt. Any creditor not duly presenting bis claim receives no share in the distribution. Plaintiff Court of Common Pleas was recently created for ew Castle County. is not required to give security. \Vages are exempt from attachPresided over by one of the Judges of Superior Court. Open continuously except July and August. Jurisdiction of all cases ex conment in New Castle County except for board or lodging. Foreign tractu up to 1,000. attachment may be issued against any person not an Inhabitant of the State after a return of non est as in domestic attachment, Depositions. In any suit pending, the protbonotary, on applior upon affidavit being made "that the defendant resides out of the cation, enters a rule commission on the part of the applicant to any State, and is justly indebted to the plaintiff in a sum exceeding $50." of the State or other per on. The commission issues commi'iSioner Foreign attachment may also issue against a foreign corporation, but on ten days' notice of interrogatories filed. Exceptions to interroga in this ca e the amount of the real debt must be particularly speciflied before the commission i ·ues, and are heard be must tories fied in the affidavit, and must exceed $50. Unlike domestic attachbefore a judge at chambers. Exceptions to· the execution must be ments the plaintiff in foreign attachments bas the benefit of his own after publication. If the commi · ·ioner employ days two within filed discovery and does not share with other creditors. It is similar to a clerk, add "The clerk hy me employed in taking, writing, trandomestic attachment in all respects except as to appointment of scribing, and engrossing the said depositions, having first duly taken auditors and distribution among creditors. The court or any judge the oath assigned to the said commission according to the tenor upon petition may investigate any allegation in affidavit, except as · thereof." to the amount of the debt, and di olve the attachment if sufficient Executions are a lien upon personalty from the time the sheriff ground be not shown. Foreign attachment is otherwise dissolved by received the writ, if actual le,·y be made within sixty days thereentering special bail. By recent amendment in cases of foreign after. Priority of lien remains in force five years. Execution may attachment it is no longer nece.· ary to enter security to discharge be i sued within five years after date of judgment. An execution the attachment, before an appearance can be entered. An appearance from a jmtice is a lien from time writ is received, if levy be made may be entered without security to discharge the attachment, and within thirty days and priority of writ remains for two years. Executhe goods attached remain as security pro tanto. tion can not issue after three years without revival. Goods and Banks. There is no general banking act and but one State bank, chattels of a tenant are liable to one year's rent in preference to which was chartered by the legi lature in 1807. Banking companies execution or mortgage. In Tew Castle County wages for a month can not be formed at present, except by special act of the Legislature. the execution. There is no redemption on property sold under The holders of stock are taxed at the rate of one-fourth of one per of employes of corporations are preferred to the execution. Stay centum on the ca h value of each share of capital stock. There of six months is granted in rourts of record upon judgments recorded have been recent-ly several trust companies formed in the St.ate. for want of affidavit of defence, provided security be given within either by special act before the 1897 constitution. and by general twenty days after judement. In ju. tice's courts defendant may have corporation act since, which have been granted banking powers by six months' stay, upon pleading his freehold; nine months' stay upon special statute. Banks and trust companies are now subject to giving security. examination and inspection by insurance commissioner. By recent E.·emptions. No homestead law. Family pictures, bible, and amendment, Tational Bank may act as Trustee, Executor, Adminislibrary; lot in burial ground and pew in church; all wearing apparel; trator, or Registrar of stocks and bonds. Bank by recent amendmachines in private families; tools of trade not to exceed $50 sewing ment, prevented from loaning more than ten per cent of capital st,ock in Kent, or. 75 in ew Castle County; and to the head of a family and surplus to any one person. in~ ew C'astle County ~200 of per·onal property and in Kent County Bills and . otes. Acceptance hould be in writing on the bill. . 150, consi ·ting of household goods only. ~ To additional exemption All checks, notes, drafts, or bills, foreign or inland, payable without in Sussex. The provisions of the exemption law extend and apply time or at sight, are due on presentment without grace. to a person dying and leaving a widow, giving and .securing to such widow the same benefit of exemption that her husband would have Chattel Mortgages must be accompanied with an affidavit that had if living. \Yage · are exempt from execution at,tachment in New tbe mortgage is made for tbe bona fide purpose of securing a debt, Castle County except for board or lodging. Piano and organs leased and not to defraud creditors, and if recorded within ten days from or sold under contract exempt from execution process or distress the acknowledgment thereof, is a valid lieu for five years on personal rent, provided the lessor or vendor noti.fle the landlord in writing for property, tho possession of which may remain in the mortgagor. of tbe claim thereof. Claims Against Estates ot Decea ed Persons are paid in the Frauds. Sale of goods void as to third parties, unless for valufollowing order: 1. Funeral expenses. 2. Bills for medicine, medable consideration and the po se ion thereof be actually delivered ical attendance, nursing, and necessaries for last sickne · of the to the vendee. A promise to pay the debt, default, or misc·arriage deceased. 3. No more than one year's wages of servants in house of another to the extent of $5 is binding if proved lJy the oath or the and laborer on a farm. 4. Rent for not more than one year, either promisee; for an amount between 5 and 2,> n111s~ be proved by growing due or in arrears. 5. Judgments and decrees in e(Juity credible witne. s or some memorandum in writing ~i"ned by the one obligaother and against deceased. 6. Recognizances, mortgages, to be charged therewith; for an amount exceeding 25 there person . Contions of record. 7. Obligations and contracts under seal. must be some memorandum or promi. e in writing signed by the tracts under hand for the payment of money, delivery of goods, ale of Goods in Ilulk Law recently be charged therewith. to party wares or merchandise. 9. Other demand'.!. Administration is impo ing penalty upon seller and purchaser where requiregranted: 1. To the person entitled to the residue. 2. To one or ' amended not carried out. is creditor on notice to as ments more of the creditors. 3. To any suitable person, re ident or nonresident. Bond must be given for an amount double the value of Garnishment. All persons except public officers, attorney-, etc., deceased the against claims of givEin be must the estate. Notice are subject to summons as garnishees. \Vages are not subject to within six months from granting of letters (except claims of record), garnishment in ~ Tew Ca ·tie County except for board or lodging. or executor or administrator is protected in paying debts of a lower Holiday , Legal. January 1st, February 12th, February 22d, grade. One year i allowed for settling the estate, and until the Good Friday, :'.\lay 30th, July 4th, first :\Ionday in 8eptember, Octoexpiration of that time, he need not make distribution. nor is he 12-Columbus Day: Day of the general election as it biennially ber removed be chargeable with interest on the a. ·ets in hand. Ho may occurs. Thanksgiving Day, and Chri. tmas, and aturday afternoon upon sufficient cause. Letters granted in other states and produced in New Castle County. If legal holiday fall on Sunday the next under the seal of the officer or court granting the same, is competent day is ob erved. ~ ·egotiable paper falling due on legal holiday is authority for him to act in this State. due and payable on the next pr edim~ secular day; if falling due on aturday half-holiday, if not pre. ented for payment before noon, is Contracts are joint and several, unless otherwise expre ed. not due until the next succeeding secular day. Conveyances of Real E tate mu t be under seal (a scroll is Homestead. There is no home.·tead law in Delaware. sufficient), and should be executed before one witness at least. Deed Interest. Legal rate is 6 per cent. Any per-;on who takes more may be acknowledged out of the tate before any consul-general. the use or the loan of money hall forfeit and pay to any one suing for appointed duly tates. United the of agent commercial or consul, the same a sum equal to the money loaned, one-half for the use for in any foreign country at the places of their respective official residence; of the tate, and the other for the party . uing. before the judge of any district or circuit court of the United tates, of court. of record are liens upon all real estate of the Judjt'lnents or the chancellor or any judge of a court of record of any state, terridebtor in the county where judgment i entered from their date. for tory, or country, or the mayor or chief olDcer of any city or borough, years and may he revived and kept alhe and a lien ten of period a and certifled under the hand of such chancellor, judge, mayor. or by EI. FA. or agreement before e.·piration of ten year.· from date of officer. and the seal of his office, court, city, or borough, by certificate may be extended into either or both the other lien This entry. acknowledgment such or deed; the to endorsed upon or annexed counties. Judgments can only be obtained in this tate upon judgor proof may be taken in any such court and certified under the hand ments in other states hy suit upon a certified copy of the record of • of the clerk or other officer of said court, and the seal of said court said judgment authentiC'ated under the Act of Congrers passed in like manner. In case of such certitkate by a judge, the seal of • fay 26, 1790. Tran ... cripts of judgments recovered before justices his court may be affixed to his certificate, or to a certificate of atof the peace may he entered in the superior court and thus be made testation of the clerk or keeper of the seal. Such acknowledgment liens on real estate after execution and return by Constable on goods may also be taken by any commi.sioner of deed for this State, or of defendant. :atisfaction must be entered within :-ixty days after by a notary public of any state or territory. Wife must join in deed 00 1 0 10 to bar dower, and husband to bar curtesy. A deed by a corpora~O~ll~~ee r6~~l. !tic~ ~r ap~i:ge, k~~at/~f~ ¥ra;~c~~ttrJ tion may be executed and acknowledged by t-he president or other three accounts book and hand under not Contracts Limitations. presiding office duly authorized by resolution of the directors, trustee , years, bills and note under band ,,ix years. .Judgments and special· or other managers, or by the legally constituted attorney of such corties are merely presumed to have been paid after the lap. e of twenty poration under its corporate seal. Deeds must be recorded within year·, but this presumption may be overcome by proof to the conthree months after sealing and delivery, to avail against creditor·, trary. All juda:ments must be renewed within ten years in order notice. without purchasers, fide bona mortgagee, or to preserve their liE'n on real estate. The statute does not begin to run in favor of non-resident del.Jtor until he come into the tate, in Corporations. General Corporation Act for all purposes other such manner that he may be served with process, and if a debtor than banking. Each stockholder is individually liable for the amount remove after the cause of ac ion ha· accrued. the time of his absence of capital stock not paid in in proportion to the amount subseribe<l is not computed. On recognizance: of heriffs', admini trators', or by him. Corporation of other states may be sued in thi ,'tate, executors' bond. , within . ix year: from dat • Bond of guardian and the property of the same found here may be eized hy attachment. All foreign corporations must file with the secretary of state. wi~~~nrri~ee\\y;~jr~~af:et~e~~e~:1f ~~~n p~~~~!f~~~~;~~Y owned statement of assets and liabilities, and the name of its authorized at marriage or received from any pen-on other than the husband, agent upon whom process may be served; must pay a .:'tate tax of l\1ay receive wage: for th ir pen,onal labor, and pro ·ecut.e and defenifd SIO, and fees of secretary of state (this State tax is paid but once) suits for pr ·ervation and protection of their own property, as must file with the prothonotary of each county the name of authorized unmarried, and the rem , i. sues, and profit:~ of their ~eparate estate agent upon whom proce may be erved. are not controllable by the husband. Dower: The v.idow is entitledd Costs. Non-resident plaintiffs may be required to give ecurity to one-third part of all the land: an<! tenements ,\her of her husban for costs. was . eized at any time durin!l her marriage. unle:s ·he shall bave Courts. Terms and Juri diction. The different courts of the relinquished . uch ri~ht, for and during the term of her natural Jlfe. State are as follows: Supreme court; regular term at Dover third If her husl,and dies without i:sue or the ehildren of i. sue she takes a Tuesday in June and January. Court ot chancery and orphans, moiety instead of a third part of the real {,,:;tate. A married womaD  ¼~7  1e°J  1~1  p  se  BANKING AND COMMERCIAL LAWS-DISTRICT OF COLUMBIA  the :ent , in LrCh eral onin and  t:e~  call all not as 1ty. con~on-  reay ion ade cuand liO  nth der tay ded bin ave pon  of the age of twenty-one years and upward may dispose of her property, both real and personal, by will, wit.bout the written consent of her husband, but subject to bis right of courtesy. Two or more witnesses are necessary for a will. Husband and wife may test,ify t£.ea~~If~il actions in which either or both are or may be parties to l\:Iortgages 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 mortga~e should be recorded within thirty days to avail against a subsequen u innocent holder. Proof of Claims. The full individual names of plaintiffs and defendants, to~ther with style of doing busine s, must be stated; or if a corporation, the laws of what state under which incorporated. One of the plaintiffs. if a partnership, or the treasurer or cashier of a corporation, must make affidavit to the amount claimed, giving an itemized copy of the cause of action attached thereto. It is ~dvisable to have the affidavit made before a notary public, though 1t may be made before others. ( ee Affidavit.) Protest. (See Bills and Notes.) Replevin. The writ issues out of the superior court to obtain Possession of goods unlawfully taken or unlawfully detained. No affidavit is required. but before the officer to whom it is directed can execute it the plaintiffs or some sub tantial per on for him mu t enter into bond to such officer in a penalty of double the value of the goods to be replevined, conditioned to prosecute the suit with effect, etc. Defendant may give counter bond and retain the goods. Summons may be served on the defendant by stating the substa_nce 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 pres~nce of some adult person six days before the return thereof. Ag~mst a corporation may be erved on the president or bead officer, if residing in the State, and if not, on any officer, director, or manager oif the corporation or duly authorized agent named for said services. nh chancery service may be had by publication under order of the c hancellor. From a justice service must be personal if forthwith, ot erwise four days mm,t intervene before bearing. Taxes laid and imposed by the levy court of a county or by the rtate for its own purposes, are a lien upon all the real estate of the haxable upon whom they are imposed, for two year , and such lien as preference to all other liens against him. General ass~ sments are made every four years. \ViUs. Any person of the age of twenty-one years or upward, or sound mind, may make a will a« well of real a.5 per onal estate. Every Will must be in writing and signed by tbe testator, or by some Person subscribing the testators' name in bis presence and by his express direction, and attested and subscribed in his pre. ence by two or more credible witnesses, or it shall be void, A will .·hall be Ptrovhed before the regis1 er of the county in which the te ·tator re ided a t e time of his death. A nuncupative will of personal estate not arnoun~ing to over $200 and pronounced by the testator in his last itllness. 1_n the prespnce of two or more witnesse. i Yalid if reduced o wr1tmg and attested by said witne. es within three days after. fhhildren born after the date of the will of the parent are emitled to iniesst1;,1fe~ share of the parent's estate as if such parent had died  alured iage the by the  Columbia, but within the United Rtates. the acknowled~ment may be made before any judge of a court of record and of law, or any chancellor of a State, any judge or justi e of the supreme. circuit, or territorial courts of the United State,, or any justice of the peace or notary public; Provided that the certificate of acknowledgment aforesaid, made by any officer of a State or Territory, not having a seal, shall be accompanied by a certificate of the register, clerk, or other public officer that the officer taking said acknowledgment was in fact the officer he professed to be. Deeds made in a foreign country may be acknowledged before any judge or notary public, or before anysecretary of legation or consular officer or acting consular officer of the United States as such consular officer is described in ection 1674 of the revised statutes of the United , tates, and when the acknowledgment is made before any other officer other than a secretary of legation or consular officer or acting consular officer of the United Stat.es, the official character of the person taking the acknowledgment shall be certified in the manner prescribed as to deeds out of the District of Columbia but within the United States. No deeds of conveyance of either real or personal estate by individuals shall be executed or acknowledged by attorney. Actions. The common law forms of actions are used except as modified by statutes. Administration. The probate court, a special term of the supreme court of the District of Columbia, has exclusive jurisdiction ?f the settlement of estates. A written petition stating the facts m the case must be filed with the register of will5. This petition is acted upon by a justice of the supreme court of the District, who sits daily. All executors and administrators and guai:dians 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 su.flicient to cover the debts and legacies of the deceased not to exceed double the value of the personal estate. Ily act of Congress, certain trust companies incorporated thereunder may act as executor or administrator without bond, and corporations having power under their charters may act as sureties in all cases where individuals can. Creditors may be barred in thirteen months provided the required notice is properly published. Probate court may 01·der sale of real estate to pay debts, in case personal assets are insufficient. As.sets of non-residents in District of C'olumbia are subject to claims of local creditors for one year after death. Affidavits. Affidavits for use in the District of Columbia should be taken before a justice of the peace, notary public, judge of any court of record, or a United States comm.is ioner. Alien . Aliens may bold real and personal property in the District of Columbia, and may acquire real estate by descent. Alien corporations are prohibited from acquiring real est.ate. Corporation.;;; of which over 50 per cent of the stock is or may be owned by persons or associations 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 $100 is involved, and in actions for the recovery of possession of real estate. Appeals may be taken from the supreme court of the District of Columbia to the c·ourt of appeals of the District of Columbia. Certain eas s are appealahl direct to the 'ourt. of Appeals. Appeals may be taken from th court of appeals to the suprenw court of the United 'tates: 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. C'onstruction of any Jaw of U. . is drawn in question. Arre t. 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,  ~o~~ ~i!s~!h~;;~~~~h~rg~~~;J;~}• ~~e~n~~i!~t\i~e~~~e~~ 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 fraudulently 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 ote . 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?~~~s ftw is now ip. force in this District. (See Legal Holidays and Chattel :Mortgage . To bill of sale or mortgage or deed of trust to secure a debt of any personal chattels whereof the vendor, mortgagor, or donor shall remain in poc; es. ion, is valid and effectual to pass the title herein, except as between the parties to such Instrument and as to other persons having actual notice of it, unless the same be executed and acknowled~ed and within ten days from the date of such acknowledgment recorded In the same manner as deeds of real estate; and as to third persons not having notice of it, such instrument shall be operative only from the time within said ten days when it is delivered to the recorder of deeds to be recorded. Collaterals. Tbo holder of the note as collateral security for deht stands upon the same foot,ing as the purchaser and may maintain suit thereon for his own benefit. The collateral pledged may be sold in accordance with the terms of the collateral note which w ually provides that the collateral may be sold upon non-payment of the principal of Lhe 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. Contract . Every contract and obligation entered into by two or more por ons, whether partners or merely joint contractor., whether t;mder sea.I or not, w1itten or verbal, and y,hether expre:sed 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 ame extent ac;; if the same were expressed to be joint and everal. In actions ex contractu a!!ainst alleged joint debtors it is not nece ary for the plaintiff to prove their joint liability in order to maintain his action, but he i. ent,itled 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, 1f he alone is ·hown to be indebted to him, and judgment will be rend~red as if the others had not been joined in the suit. Any of several Joint debtors, when their debt is o,·ecdue. may make a separate composition or compromise with their creditors. Cora>orations. Any three or more pe1·sons may form a compa.uy for the purpose of carrying on any enterprise or blL<siness which may be !awf~lly cond~cted by an individual, excepting banks of circulation or: discoUJ~t. railroads and such other enterprise or bu:iness as is otherWlse pronded for. . uch corporations may have a perpetual existenee. No such C?mpany 1s authorized to tran. act busine. until 10 per cent of the capital St(?Ck sball have been actually paid in. either in mon1:1y or_ property a_t its act1:1al value; and the recorder of deeds, before fllm_g any certificate of 11\corporation, must be batisfled that the entire capital stock has been sub cribed for in good faith. All of the tockhold~rs 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.  ,i;~~~:.  SYNOPSIS OF  THE LAWS OF THE DISTRICT OF COLUMBIA RELATI. G TO  BANKING AND COMMERCIAL USAGES Prepared and Revised by JOHN B. LARNER, E::;Q. Attorney at Law, "'ashlngton Loan & Trust Bldg., \Ya.-;hington. Acknowledgment . Tho deed of a corporation shall be executed bhy having the seal of the corporation attached and being signed with tb e name of the corporation, by its president or other oflicer, and shall e aclmowledged as the deed of the corporation by an attorney  d~~t~~ei:◊in~h!!ta~r~sf11eY-~f:0Et~~d~i t~~rgor~;;~~od~~ i~ tt: annexed to and recorded with the deed. · Acknowleclgment of Deed!!. ·when any deed or contract under seal rela.Ling to land is to be acknowledged out of the District of   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1869  J~~f   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  BANKING AND COMMERCIAL LAWS-DISTRICT OF COLUMBIA  1870  for all debts and contracts made by such company, tmtil the whole amount of capital stock fixed and limited hy such company shall have been paid in, and a certificate thereof shall h:i.ve been made and recorde~. Every such company must annually, except insurance compames: within twenty days from the flNt of January, make a report, which shall be duly published and which report shall state the UIJ?Ol!-nt of capital and the proportion actually paid and the amount of exIStmg debts. Foreign corporations doing business in the District of Columbia are subject to service of process on their agents or on the perso:os conducting th_eir business, or by leaving copy thereof at th~ prmcipal place of !)usme s of such company, or at the residence of its ag-ent. The afl'aU"S 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 ~rst 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 certificates of incorporation where capital stock is authorized is forty (40) cents on each 1,000 of the amount of the capital stock of the et forth in its certificate, provided that no fee shall ¥,~1e~-~aw:;~ Courts in session continuom;ly throu~hout the year. Suits on contra<;ts,. accompa~ed by sufficient affidavit of right to recover, result m Judgment m twenty davs. exclusive of Sundays and legal holiday . after day of service on defendant, unle.·s defendant files an :~~ndi~;?etJ!~~ forth facts which, if true, would in law con titute  . Garni~hment._ After judgment the writ of garnishment may issue agamst specific propert~· or credits in the hands of the garnishee and on tbe return of the writ, if there be credits, the judgment or condemnation follows. The writ of g-arni hment ran not be issued again ·t tho United tates or the District of Columbia. Legal holidays are January 1st Fcbrua1·v 22d Holidays. l\Iay 30th, July 4th, first .Monday in • eptember (Labor Da\·) becem: ber 25th, or the following day when any of these dates fall' on Sunda:\:, and such day aJ may be appointed by the Presiuent of the Un1ted States for fa.~tm_g and prayer. Every aturday is a legal half and notes tailing clue on that daY arc not paYahle until hohday 1 .:\}onday, Process is not is ·ued or s rved by the marshal after 12 o clock on aturday. Husband and Wife. The wife's property is exempt from the husb~nd's debts. 'rhe husband may convey direct to his wife. The wife may u.se all of her property of every description as fully a.<; if she were unmarried, and _may dispose of the same by deed. etc .. a.s fully as 1f she were unmarnod. 'he also ha.<; power to trade and to sue and be sued, bu_t no married woman under the age of twenty-one year· can make a valid deed or conveyance. On the death or a nrn.rriecl woman the hu.'-baJ?,d is enti_tle<_i to an estate by courtesy in her fee simple property of which she dJCs mtestate. On the death of the wife intestate her entire personal ~tate becomes the property of her husband. The bu..,band 1s not hable for the deb~ of hi. wife contracted before marri~ge. A_ husband, . who willfully neglects to provide for wife or :mmor child under sixteen years, in de ·titut.e circunl) tances, may be adjudged guilty of a misdemeanor, and may be fined, or imprisoned. Days of Grace abolished. by the court having juri ·diction. Deeds. The following form of deed is now all that is required in Interest. The legal rate of interest in the District of olumbia i the District. of Columbia to convey a fee simple title to real estate: 6 per cent, and in any suit where the contract is tainted with u.,;urv the This deed._ made this .... day of. ...... in the year ..... by me, ... . plaintifl' forfeits the whole of the interest so contracted to be rere'ived, of ...... , w1tnesseth: That in consideration of (here insert conand where usurious interest has been paid it can be recovered proideration). I, the said ...... , do grant unto (here insert grantee's vided action for such recovery be brought within one vear. In an name), of ..•.... all that (here describe tho property) action on a contract for the payment of a higher rate of interest than is l~wful in the Di.~trict. made or to be performed in any state or ................ ( eal.) Witness my band and seal. territory of the mted tat s where such contract rate of interest A deed must be acknowled~ed and recorded with the recorder of deeds is lawful. the judgment for the plaintiff shall include uch contract from the time of recording. A croll i · considered a interest to the date of the judgment and interest thereafter at the rate of Cl per centum per annum until paid. llY expr ss contract this Depositions. Depositions of witnesse to be used in any civil 1 rate may b increa ·ed to per cent. · cause whether the case be at i sue or not, may be taken under any of Judgment . Every judgment is good and enforceable bv an executhe following conditions~ 1. "\Vhere the witne lives beyond the from the date when an years twelve of period a for thereon issued tion Di~trict of Columbia. 2. Where the witness is likely to go out of the execution might first have been i! ·ued thereon or from the date of the Uruted States or out of the District and not return in time for the of the municipal court Judgments . facia scire by thereof revival last the reason any for or aged, or infirm is witness the Where 3. trial. are not liens on real estato until recorded in the supreme court of the party desiring hi._ testimony fear he may not be able to secure the same District of Columbia. at the time of trial, whether the said witne s reside within the DisJurisdiction. ( ee Actions, Appeals, and :\Iuniclpal Court.) tric~ or not. 4. If during the trial any witne is unable, by reason Limitation . Fifteen years for recover~· of land , tenements or of ·1ckne · • or other cam,e, to attend the trial, the depo ition of such executor's or administrator'· bond, five years; instruhereditaments; the at read and taken be witness may, in the discretion of the court, ments under seal, twelve years; ·imple contracts and recovery of pertrial. The deposition may be taken before any judge of any court of sonal property and damages for its unlawful detention, three years: the United , tate ; before any c mmissioner or clerk of any court of statutory penalty or forfeiture. libel, slander. a.!·sault. battery, maythe_ United tate , or any examiner in chancery of any court of the hem, wounding, malicious prosecution, fal ·e arrc. t or imprisonment. Umted 'tates; before any chancellor, justice, or judge or clerk of sual xception in favor one :mar; all other actions three years. a?Y court of any tate or Territory or other place under the soverof pe1 ·ons under disability. Acknowledgment to reYiYe aetion on 01gnty o_f t_he United States, or any notary public or justice of the tako debt out of statute. will payment }>art writing. in be must bt d tates: , United the of sovereignty the under place any peace withm Provided, that no such person shall be elig-ible to take such deposition , tarried ·w omen. ( ee Husband and Wife.) who is counsel or attorney for any party to the cause, or who is in ;\lortgai:e .·. :\Iort11:agcs are almost entirely '-Upplanted by deeds any,\ ise interested in the event of the cause. of trust, reqwrm11: no court proceeding.· to foreclose. Joining the wife is nee~- ·ary to bar dower. Do,,cent and Distribution. The ordinary rules of de cent may be stated as follows: 1. If an inte ·tate leaves a child or children, or :\Iunicipal Court. This court which takes the place of what was descendant of such child or children, his property de. cends to such formerly known as the justice of the peace court has jurisdiction child or children, or their descendant , subject only to the dower right to the amount of f)00. Thi · juri:diction is exclusive when the the to descended of the ,\idow, if there be one. 2. If the estate amount claimed for debt or dama~es or value of per.·onal property intestate on the part. of the father or mother and there be no child or does not exceed 100, and concurrent with the supreme court of the the descendant of any child, then to the brothers and sisters and their District of Columbia when it exreeds 100 and not in exce. of 500 descendants. -.i 3. Ir none, to the mother or father or the ancestor· with right of certiorari in cases of concurrent jurisdiction. of tile intestate and their descendants of the blood of the mother or Partnership . Limited partnership for the traru action of any father. grandmother or grandfather. a._ tho case may be, subject to the mercantile, mechanical, or manufacturing bu. ine · within tho District widow's dower. 4. If none. tpen to the hu band or wife and their may be formed by any two or more persons, but the number of special kindred in equal degree. equally. 5. . . ·o di! tlnction between whole partner· is limited to six. The special part.ners are not liable for and half blood on part of parent from whom e ·tate descended. 6. If the debts of the partnership beyond the fund contributed by them there be n heir, the lands shall escheat to the District of Columbia. the capital. A certificate settin11: forth the firm name; general to Personal Property: If a widow and no child or descendant • parent, nature of the bu ·in s. to be ronducted; name. of all the general brother, or sister or descendants, the widow shall have the wholo, special partners intere. ted therein, di ·tinguishing which are and in if only; of child or descendants, the widow shall have one-third general and which are . pecial, and their respective places of re ichild or descendants, but parent, brother, etc .• the widow shall have denco; the amount of capital contributed by each special partner one-half. The surplus shall go a follows: (1) If children or de ·cento the common stocl..:; and tho period at which t-he partnership is dants, to them equally per tirpe ; (2) If no child or de cendant, and to commence and terminate must, be fll d with the clerl, of the supreme a father, then to the father; (3) If no father, but a mother. then to after having be n acknowledged in the manner prescribed for court the mother; (4) If none, hut a brother or sister or descendants, to deeds. them equally per stirpes: (5) If none, to collateral relations in equal Prote t. ::\fay be made by a. notary public UI.1Cler hi. hand and degree; (6) There is no di. tinction betw n the whole and half hlood; . ea!; 01· by any respectable resident of the place wher the hill is (7) ~ 'o representation after de:-.cendant. of brothers and si. ters; (8) Beyond the fifth degree. the per ·onal estate goes to the Di ·- • dishonored, in the presence of two or more credible witne.~ ·e . "\\'here a foreign bill, appearin"' on Its face to be such, i. dishonored by nontrict of Columbia; (9) The husband on death of the wife is entitled acceptance, it must be duly prote ted for . ame; and whore such a to all her personal property in po se · ·ion without administration, but _which has no previously b en di. honored by non-acceptance. !>ill ;~i~fiJr:~~b~~d.usually resorted to for protection of parties dealing i · dishonored by non-payment, it mu t b duly protested for . ame. If it i. not protc.·ted the drawer and indorscrs ar discharged. Where Dower. A wife is entitled to dower in all real estate owned by the a bill doe: not so appear to be a foreign hill, protest ther of in case husband at the time of his death, including equitable as well as legal of dishonor is unnece.·. ar:r. The protest mu.·t he annexed to tho bill estates. or contain a copy thereof and must state the (1) time and place for pr sentment; (2) the fact that pre ·entment wa made and the Evidence. (See Deposition .) mann r thereof; (3) th cau.·e or rea.1 on for prot ting: (4) the demand Executions. Executions may be le,·iod upon all good· and chatmade and the answer given. if any, or th fact that tho drawer or tels of the debtor not exempt. and upon gold and silver coin, bank acceptor cannot be found. notes or other money, bills, checks, promiS! ory note or bonds, or Record. . The exemplification of the record under tbe hand of the certificate of tock in corporations owned by ·aid debtor, and upon keeper of the . ame. antl the ·ea! of the otTice or court where ·ucb money owned by him in the hands of the mar.'hal or of the constable may be mado, is good and ufllri n e\"ldcn e to prove any rucord leaselegal all upon also and writ, uch charged with the execution of record made or entered in anv of the. rates or Territori of the nited hold and freehold estates of the debtor tn land. Executions on judgStat s: and tho certificate tif tho party purporting to he the keeper ments before justices of the peace ma~· be super oded, according to of such record. accompanied by uch . ea!, ls prirna fa ie evidence the amount of the judgment, upon good and sufficient security being 9f th~t. faet. A copy of tbo record of any deed or other instrument entered by a person who may at the time be the owner of umcient m wr1tmg not of a. t01 tameutary character where the laws of the real property located in the District, above all liabilities and exemp.'tate, Territory, or c-ountry where the .-amc may be record d require tions, to ecure the debt, eo ·t and intere ts from one to sb:: months, such rocord, and whl ·h h~ b en re<'ordecl ag-r eably to such Jaw , but there can be no i;tay of execution for wages of servants or common and the copy of any ·ill which . aid la\li. r •quire to be admitted laborers, nor upon any judgment for le. than 5. to probate. aJ?d record, by judicial deer e, and of the deer e of the Exemptions. (Actual residents.) In addition to wearing apcourt adm1ttmg the same to probate and record, uncler the hand parel, etc., household furniture to the value of 300, implements of the clerk or other keep ·r of ·uch record and the ea! of the court of debtor's trade or busine. · to the value of 200, stock for carrying or offico in whi_ch th r cord has b en mad , i · prima faci evidence on business to amount of 200, one horse, harne and cart, wagon to prove U1e en·t nc and cont nts of .·uch deed, will or other in~t,ruor dray, and earning of married men or heads of famili ·• not to mcnt in writin~. and that it " · e.·ecuted as it purpor · to have been, exceed 100 por month for two months. Exemptions are only allowed Ta. ·e. . The rate or int •1· st is now ·ubj1• t to the ,, ill of Congress where the party claiming uch i · the head of a family or householder to be fl: ed each year as may be exp di n • At pr >sl•nt tho rat is residing in the District. 1.05 per hundred upon ll!·se · (d valu s of r al and pl't. onal property . flxf d at appro.·ima ly t" o-third: of .A.· e sm 'nt · of real cstat a uitJ may be instituted in the supreme Foreign Judgment . real value. P nalty of 1 p r c nt p r mcmth for rl fault in payment. court of the Di trict of Columbia on any jud1.nnent of a court, of record • \\ a . l' ment arc made Taxes are pa~·ablc in ,:\lay of each Yl' r. in any other jurisdiction. The declaration in any such case must be every two years for real estate (unlc .· improveuwnts ar • put on) and accompanied by a transcript of the record of. uch judgment verified every year for personal property by a perman nt Uoarcl of ,\.-s •~sorsaccording to the act of congre.·s in such cases made and provided, and Intangibl s arc taxed at th rato of three-t"nth. of ono p rrentum of judgment In due course may be rendered on such transcript as in the fair \'alue thcr of. any other case.  sls.  :~i~~t\:~fct  0  ge  ca  d Fe  Pl:  th  BANKING AND COMMERCIAL LAWS-FLORIDA Trust Companies. Trust companies can be organized under the general provisions of the code on that subject. No tru.. t company can be incorporated with less capital stock than $1,000,000. May do a storage business with a capitalization of not less than Sl,200,000. Foreign companies desiring to operate in the District must first comply with the provisions for the organization of trust companies under the laws of this District. Wills. All wills and testaments must be in writing and signed by the testator, or by some other person in his pre. ence 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, testament, or codicil is effectual for any purpo e whatever unle · the person making the same be, if a male, of the full age of twenty-one years, and if a female, of tbe full age of eighteen y ears, and be at the time of executing or acknowledging it, of sound and disposing mind and capable of executing a valid deed or contract. Any will executed after January 17, 1887, and before January 1, 1902, devising real e ·tate, from which it shall appear that, it was the intention of the testator to devise property acquired after the execution thereof shall be deemed, taken and held to operate as a valid devise of all such property; and any will hereafter executed. which shall by words of general import devise all of the estate or all of the real estate of the testator shall be deemed, taken and held to operate as a valid devise of any real e tate acquired, by said testator after the execution thereof, unless an intention shall appear to tbe contrary. '\Vhere a devisee or legatee dies before the testator, leaving issue, such i ue stands in the place of the deceased devisee or legatee unle a contrary intention appear from the will .  r  e  SYNOPSIS OF  THE LAWS OF FLORIDA RELATING TO  BANKING AND COMMERCIAL USAGES Revised by  HALEY  &  HEINTZ,  Attorney at Law, Jacksonville, Fla.  Accounts. Open accounts are barred in three years. AcknowledgIDents must in every instance be under o!Jicial seal. If made in the Rtate of Florida, may be made before any judire, justice oft_he peace, clerk or deputy clerk ofa court of record, or notary public; or !f made out of the 'tate, and within the United State·, before a. United States Commissioner of Deeds appointed by the governor of this State, or before a judge or clerk of any court of the United States or of any state territory or djstrict, havjng a seal, or hefore a notary PUblic or justice of the peace of such state, territory or district, ha\'lng abn official seal, and the certificate of acknowledgment or proof hall e Under the seal of the court or officer as the case may be. If made out of the United States, before any commissioner of deed· appointed b Ybthe governor of the . tate to reside in such country, or any notary Pu lie of such foreign country, or before any minister charge d'aJiaires, consul-general consul vice-consul, commercial ag-ent, or vice-comgiercial agent of the United State appointed to reside in such country.  die~~efua~;:f e~faii~~sfb~ er;.~';:Jl:d ~ f~~~~n~i i!h;o~t:~~~g:S real estate. A wife's acknowledgment must be taken separate and ~art from her husband. Officers must certify that the grantors are nuown to him. The following is the usual form adopted, -viz:  gf  0  e  Coun~;a~t ~~ ~-l~~i~_a.' .... } Before the subscriber personally appeared ............. . ...... and his Wife .......... known to me to be the individuals de.-;cribed in and who executed the foregoing instrument who acknowledged that they executed the same fo. the uses and purposes therein expre ed &nd the said .............................. wife of the aid . .... . ·fromb~~~gs~i1 ~t~sl~~e~c~~Ji~::d e:;cffe~1a~:ga[£ii shhe executed tbe same freely and voluntarily, and without fear, appreension, compulsion, or constraint of, or from her said husband, and for the purpo e of renouncing and relinquishing all her right, of whatsoever kind, in and to said property. ?_i~~n under my hand and seal official this ........ day of ....... . 19  anci" apart  ,....  otary Public.  ,.viy COmmission expires. . . . . . . . . . . . . . . . . . . . . . . . . . . ( ee notaries.)  Action . Suits shall be begun only in the county (or if le than 1100 in justice district) where the defendant re ides, or where the   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1871  cause of action accrued, or where the property in Jit.igation is. If brought in any count,y where defendant doe>S not reside, the plaintiff, or some person in his behalf, shall file with the precipe or bill in chancery, 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 brou1?;ht in any court (or justice district) wher · any one of the defendants resides. or where the cause of action accrued or where the property in litigation is. Corporations (domestic) can only be sued in a county where they keep an office. Foreign corporations may be sued in any county where they have an agent, or where the cause of action accrued or where the property in litigation is. Adrnini tration of Estates. Upon the death of a person inte.<;tate or having made a will but appointing no executor, the county judge appoints an administrator, preferring fu•st 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 sherifl' to act. 'l'he 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 e tate. The sheriff when acting as administrator is liable upon bis official bond. Claims against an estate are barred after two years from date of notice given by administrator to present same. Debts due more than five years prior to death are barred, saving to married women, minors and per ·ons non compos mentis, imprisoned, or out of State, three years, after removal of disabilitie.5. 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 ales made of personal and real property. Administrators must make annual settlements before the first day of June each year or forfeit commi sion . 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, ju, tice of the peace, or notary public. Aliens. No distinction between any citizens, except that they are not allowed to vote. Appeals. Appellate proceedings for the common law side are by writ of eITor, which must be sued out within six months from the date of the judgment. The record must be fl.led in appellate court on or before the return day of the writ, under penalty of dismissal. Questions of fact can only be taken up by bill of exceptions, which must be presented within the term of the court unle. by special order the time is extended. Appeal 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 eITors, the duty of appellate court in giving judgment, in causing execution of its decrees and quashing writs of error, are applicable to appeals in chancery. Notice of appeal in chancery must be filed with clerk and recorded in minutes. This gives appellate court jurisdiction. Arbitration. Parties to the controversy may make a rule of court of any arbitration to which they may desire to submit by flling a statement 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 arbitration can only be set aside for fraud, corruption, gross negligence. or misbehavior of one or more of the arbitrators or umpire, or evident mistake acknowledged by the arbitrators or umpire, who made and signed the award. Arrest. No arrest for non-payment of money unless it be for nonpayment of a fine lawfully imposed. As ignrnents 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 defendant ,viU fraudulently part with his property before judgment can be recovered or is actually removing his property, or is about to remove it out of the State, or resides beyond the limits thereof, or is actually removing or about to remove out of the State, or absconds or conceals himself or is secreting property or fradulently disposing of same, or actually removing, or is about to remove, beyond the judicial circuit in which be, 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 dispo, ing of his property for the purpose of avoiding the payment of his just debts or demands, or is fraudulently secreting his property for such purposes. Proof must also, be exhibited to the officer by affidavit other than that of the plaintiff, of the existence of the special ground. The maldn~ of the_ a~davit causes all debts to mature for the purpo e of the smt. Plamtiff 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 garni hment may be issued at commencement of suit or at any time afterward, 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 garni5hment 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 sati ·fy 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 co t. and damages which defendant may sustain in consequence of plaintifr's improperly suing out the writ. Banks. o banldng 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 comptroller, be organized in any city or town of not more than 6,000 inhabitants. avings banks may have not less than 20,000 capital. Banks are formed as other corporations are, and can not begin busines until authorized by the comptroller. The comptroller of the State may inspect and supervise the business of tbe 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 wheneyer 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, a~d own t~n shares of tock of 100 per share. The comptroller, with the aid of the courts, winds up the affairs of insolvent banks. Private bankers are subject to all penalties of the State   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1872  BANKING AND COMMERCIAL LAWS-FLORIDA  devises, etc. No person is excused from testifying or producing documents in trialc; for bribery, burglary, larceny, gambling, or illegal sale of liquors, on ground that it may tend to convict him of crime but no such person shall thereafter be prosecuted or subjected to any penalty on account of anything concerning which ho may so testify or produce evidence. Executions. Executions can be issued immediately upon the entry of the judgment and within three years thereafter, and are a lien upon real estate from date of entry, and upon personal property from the time the sheriff receives them. They can be renewed any time within twenty years from entry of judgment,. Both real and personal property are subject to sale under execution. Executions are returnable when sat,isfled, sheriff reporting progress at each term. Sale day o redemption of propfirst Monday in each month. No stay law. erty sold under execution. Exemptions to every head of a family residing in the tate homestead of 160 acres of land, and improvements, if in the country; onehalf acre of ground, if in an incorporated city or town, together with $1,000 worth of personal property. The exemptions in a city or town shall not extend to more improvements or buildings than the residence and business house of the owner. No property is exempt from sale for taxe. or asse ments, or for obligations contracted for its purchase, or the erection or repair of impro,·ements thereon, or for house, field, or other labor performed thereon. The wages of every laborer who is the head of a family residing in the State, are exempt from garnishment. Foreign Corporations. Commercial corporation.,;; can do business in this State without restriction upon complying with requirements as to foreign corporation, provided its name is not the same or so nearly similar to any domestic corporation as to cause confusion. (See Service of Process.) Foreign Judgments. Judgments obtained in the several courts of the State, may be recorded in any county and have same force and effect as if originally obtained therein. Judgments obtained in other States or countries, merely evidence, and have to be sued upon to be made effective as judgments. Fraud. ( ee Limitations of Actions.) Obtaining money or property under false pretense or by falsely persona ting another, are punishable criminally. Garnishment. ( ee Attachment.) Guaranty Companie . 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, January 19th, February 22d, April 26th, June 3d, July 4th, First .Monday in September, second Friday in October, Thank giving Day, Christmas and Shrove Tuesday or ~Iardi Gras in cities where there is a Carnival Association organized for the purpo e of celebrating it. Husband and ·wue. The husband has full control of wife's property and i. not chargeable by the wife with the rent 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. Ha no interest in her separate earnings, Has action for negligence C'ausing her death; wife's property not generally liable for husband's debts. ,vife may sue with respect to separate igr\~!o~tatfh~~\e~~eie°ef ~2 1~o:S e;;i: \1'oig/~g~~i~J:;o~~5cf.ay(~~: estate without. husband joining. Infant wife may join husband in sale of her real estate. Service of Process.) Costs. Non-resident plaintiff required to give $100 bond to secure Injun<·tions. Injunctions are granted without bond upon afficosts. The defendant may have suit dismis.<sed if bond is not given. davit of inability to give bond, and upon proof satisfactory to the that such affidavit is true, and that the statements of the bill judge Courts. Circuit courts hold two terms a year in each county, are true. Injunctions are granted to stay proeeedings at law; to except in twelfth where four terms are held and in first, ninth, eleventh the sale of property under execution or decree ohtained against restrain have and year, a terms three and fourteenth circuits where they hold one other than the owner of the property; to restrain the destruction original jurisdiction in all equity cases, also in all cases at law not of timber by cutting, boxinit, or otherwise; to restrain a levy upon cognizable by inferior courts. County courts have juri diction of exempt property; to prevent the claiming of exemptions upon property amounts not exceeding $500. County judges, at all times open for not legally exempt; to preYent the removal from the State or mortprobate busine s, have full probate power , have also civil jurisdiction personal property, and to abate bawdy houses and gambling gaged to extent of $100. Justice's jurisdiction. $100. dens. judgto re<luced is claim Creditors' Blll may be brought before Statutes suspended by national hankruptcy law. Insolvency. ment, but suit at law must be flrst brought and judgment must be Insurance Companie~. Foreign and domestic, are placed, by obtained before decree can be rendered. statute, under control of tate treasurer. They muc;t annually file Days of Grace are abolished. a statement with. and obtain from tbe tate treasurer, a certificate before being authorized to do busine s. Certiflt·ate may be revoked Depositions may be taken upon commission when witness resides If company refuses to pay judgments which have been legally obtained out of the county, or is bound for se)\, or ls about to go out of the against it. 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 ca.-se or defense Interest. Eight per cent is allowed on judgments and contracts depend,;; upon the testimony of uch witness. The time for the suing where interest is payable but no rate i specified. Contract for more out of the commis.<:ion, the names of the witnesses, and the name of than 10 per cent i usurious, and all interest forfeited. one comrois.c;ioner must be given to opposite side a reasonable time Jud~ment of a court of record are a lion for twenty years upon before commission is is. ued. Printed instructions for the guidance of real e ·tate of debtor within the county where rendered, and may be commissioners usually accompany commis, ion. Fees of not le than extended to other counties hy recording certified tran ·cript of judg$5 a witness are to be taxed as costs by the clerk and paid by losing ment in any county where a lien i. sought. Judgments of jm,tice of the party. peace may be made a lien upon real e tate by recording in the office Descent and Distribution ot Property. Property descends: 1. of clerk of circuit court. To the children and husband in equal shares. 2. lf there be no Liens. In order to ecure a lien by !is pendens, a. statement must children then all to the husband or wife. ;3, If there be no children, be filed with the clerk of the circuit court, and recorded by him in a husband or wife, then t,o the father and mother in equal shares, or to book kept for that purpo e, setting forth the name of the parties. and survivor. 4. If no father or motlrnr than to the brothers and i ters the nature of the relief ·ought, and the de. rription of the property and their descendants. 15. If there be no brother or sister nor their tatut-0ry liens are given to upon which it i desired to obtain a lien. descendants, then the estate shall be divided into moieties, one of laborers and material-men. Property for which materials are furwhich shall go to the paternal anrl one to the maternal branches in liable to person. not in i done, boen has labor which upon ni-.;hed the following course: I. To grandfather. 2. To grandmother, uncles privity with owner to the e.·tent, of the unpaid balanre of debt due and aunts. 3. To great-grandfathe~. 4. To great-grandmother. amount. , tatutorY like in liable personally Owner contractor. to brothers and sisters of greaHtrandfathers. etc., passing first to nearliens upon real estate. in order to he available as ac:ain t subsequent e t lineal male and then to lineal female ancestors and their descendrerorded, and suit be t mu. notice, without lienors or purchw·ers no leaving issue, without if decedent, infant an or ant . The estate mu,;t he brouid1t within twelve months after tho furni. ·l1ing of the husband or wife, shall descend: 1. To father or infant. 2. :VI other of material, or the performance of the labor. Liens upon per:;onal infant. 3. Brothers and sisters of infant. 4. In ca.<;e no father, mother, property exist only while po.· ·e.· ·ion is retained by lienor. brothers or sic;ters or their descendants surviving, then it descends according to thll general rules of descent prescribed by statute. Half'ivil actions <'an only be commenced Llmita tion of Actions. children as bloods inherit only one-half. Adopted children are treated within the following periods after the cau. e of action . hall have of blood. Bastards inherit and transmit through mother's side, as to wit: Actions on Florida judgments, actions on conif legitimate. ;\liens have same right as citizens. There are no ' accrued, tra~ts or obligations in writing and under ·eal twenty (20) years: entailed estates nor right. of survivorship. actions for the reL·overy of real property, action on judgments of Dower. Deceased may not by will cut off his widow's right to courts of the -nited tates or any other state or territory seven (7) dower. If dissatisfied with terms of will, she may di.·sent within years. On contracts in writing not under ·eal, five (5) years. On one year after probate of will and she will then be entitled to one-third all actions not herein and specifically mentioned, four (4) years. of the real estate for life, and, if there are two or more children, to 1 Tr ·pass to realty, action upon liability ereated by statute other one-third of the personalty in fee simple; if there are no children, or thau a penalty of forfeiture. taking, detaining or injury to chattels, he may only one, she will be entitled to one-half the personalty. for relief on the ground of fraud, upon contract not founrled upon within one year elect to take a child's part in lieu of dower. If the instrument of writing, inC'lucling an action open acC'ount for goods. ware:- and merchandise, three (3) year:;. Actions for libel, slander, husband die inte.·tate, without children, the wife takes the whole a ·sault, battery, false impt·i ·onment, or an action by another than the estate, or dower, at her election. State upon a tatute for a penalty or forfeiture two (2) years. .A<·tions Evidence. ,vitnes.o;;es not disqualifled by rea.c;on of interest. In for wrongful death of a child, action,~ agaifu railroad companies for civil cac;es, husband and wife may testify for or against eac·h otherkilling cattle, and any action by the . 'tate for a statutory penalty or lo suits by or against lunatics or personal representatives. heirs-at. forfeiture, one (1) year. law, next of kin, a.c,signee, legatee. devisee, or survivor of a person deceased, no evidence of a transaction or communication between tarried ·women retain their property, real or personal, owned such lunatic or de<·ea.c;ed person and the opposing party or those under at marriage or acquired thereafter I.,y gift, devi e, descent, or purchase, whom he claims, can be given by the opposin~ party, unless such eviand it is not liable for husband's debts except by her written consent dence Is first offered in behalf of such lunatic re;>resentatives legatees executed according to law rogul· ting conveyance· of marrio<l women banking laws and to the supervision and control of the State Comptroller. No new private banks permitted after June 4, 1915. It is a misdemeanor to make wilful and malicious derogatory statements affecting banking institutions. Bill~ of Lading. Bills of lading are evidence against the carrier of the direction by which freights are to be received, carried, and delivered -collector or holder of commercial paper, attached to a bill of lading not a warrantor of the quantity or qualif,y of the goods represented thereby, except by expres.-s contract in writing, and the officers, agents, and employes of the carrier are requied to comply with the terms of the bill of lading under penalty of criminal prosecution. Chattel Mortga~es and Deeds or Trust. All conveyances intended to secure the payment of money are mortgages. Chattel mortgages must be recorded or the property delivered to mortgagee to make them affectual against. bona flde creditors and purcha.c;ers for value. Injunction will be granted against the removal of mortga!.?ed personal-ty from the State; can only be foreclosed by bill in chancery unless under 5100, and upon personal property, when a common law action may be brought in justice of the peace court, and mortgage flied with precipe. The form and effect of trust deeds have not been disturbed by statute. It is a criminal offence to mortgage personal property more than once without the conc;ent of first lienor. Chocks and l)ratts. 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. Tt ic; a misdemeanor to sell, pledge. loan, or in any way dispose of collateral security without the consent of pledgor. A written agreement may be made at the time of making the pledge for the sale of the collateral in such manner and upon such terms as the parties may desire, but notice must be given to pledgJr ten days prior to sale. Contrac:ts. Statute of Frauds. In order to bind an administrator personally, or any one for the debt or default of another. or one upon an agreement made in consideration o~ marriage; or upon contracts for thesaleoflands .tenements.or hereditaments or any uncertain interest therein or for any lease thereof for a period longer than one year; or upon an agreement not to be performed within one year, there must be an agreement, note, or memorandum thereof in writing signed by the party to be charged, or some one lawfully authorized by him. Contracts for the sale of personal property must be in writing or the property must be delivered or earnest money paid. Newspapers and periodicals must either be subscribed for or ordered in writing. Conveyances. (See Acknowledgments.) All conveyances of real estate, or any interest therein for a term of years of more than two years, must be by deed in writing, signed, sealed and delivered in the presence of at least two subscribing witnesses; and in order to be effectual against subsequent grantee or incumbrances, must be recorded. The wife's eparate estate can be conveyed only by the joint deed of heraelt' and husband, and confirmed by her acknowledgment, taken separate and apart from her husband. Words of limitation unneceassy. 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-  B  w  tt h1  1 a1  tt w  in  b b b  a  w  h  a. b  j  ti  BANKING AND COMMERCIAL LAWS-GEORGIA Husband must Jorn in all sale , transfers, and conveyance of the wife's property, except when he bas been adjudged insane for more than a year. Wife may sue concerning her real estate without joining her husband with her in the suit. Widow takes as dower a life e tate in one-third part of the real estate of which her husband was seized a~na~:?;u;~u~t :£11~J>g}s!ft~~~~;~{y~i~e !~;inftb~~rcg;iri~rf with the children of the husband, and if there are no children she will inherit all the property, real and personal. Minors. Both sexes a.ttain their legal majority at the age of 21 years. Minors who deposit in savings banks may control, transfer or withdraw the money so deposited. All other contracts made by them are voidable, except for necessaries. Marriage removes disability of non-age of male minor. Mortgages of real estate must be executed and proved or acknowledged in the same manner as deeds, and they, likewise as ignments thereof, to be effectual against creditors or bona fide purchasers, must be recorded. Are foreclosed by bill in equity in the circuit property is court. Chattel mortgages must be recorded unle delivered to mortgagee and remains in his possession; becomes subject to debts of mortgagee if left in bis 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 ot 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 commercial paper protested in this tate. Negotiable instruments falling due upon a holiday (see Holidays) are payable on the next ucceeding business day. Instruments falling due on Saturday are to be presented for payment on the next succeeding business day, except that instruments payable on demand may, at the option of the holder, be presented for payment before noon on Saturday unless that entire , day is a holiday. Partnership, Limited, and Special. Mone. Powers of Attorney. Any contract or conveyance may be made by power of attorney. A conveyance of a married woman's real estate by power of attorney In order to be valid the power of attorney must be acknowledged by her separate and apart from her husband, and the acknowledgment must state that she executes it freely and voluntarily, without compulsion, fear, apprehension, or constraint of or from her husband. The husband mu t 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 administration 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 be dies out of the State. If death takes place within the tate, then in the county in which he has bad 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 good'> 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 plaintifl', or when plaintiff is not entitled to possession. Affidavit must be flied, de. cribing 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 ot Process. Out of circuit court, made by the sberifl' or his deputy. Out of county judge's or justice of peace courts, may be ervice in civil actions may be made made by sherill or constable. eit1?,er upon the person of the defendant, or by leavini?: a copy at. his residence with some person over fifteen years of age. Proce agamst a domestic or foreign corporation may be served upon any oftlcer or business agent of said corporation residing in Florida. If defendant corporation is doing or has done business in the tate, and the sheriff makes return that he cannot serve the process because of the corporation's failure to elect officers or appoint agents, the court will make an order requiring defendant to appear and defend upon a rule day after four weeks' publication of the order. Suits. Actions at law are commenced by filing a precipe with the clerk. Personal service is required except in suits by attachment and garnishment Writs are returnable on the next rule day, provided ten days intervene· if not then on the rule day in the next succeeding month. If no appearance of defendant, default i · entered forthwith. Default may be entered for want of plea or other pleading on rule day, next after appearance day. Taxe . Taxe are not due and payable until the first day of November, and if not paid by first day of the following April property may be sold. Owner has two years· within which to redeem. Taxe are a lien from the first day of the year of the a. e . ment. ai:id have the force and e.trect of a judgment upon which execution may J.SSUe. Testimony. (See Depositions.) tqck is tran ferable in the manner prescribed Transfer of Stock. o stock can be transferred until, aft-er all pre,ious in the by-Jaws. asse.~<iments thereon have been fully paid. The transferee succeeds to all the rights and liabilities of the prior holder. Warehouse necctpts. Uniform ·warehouse Receipts Act adopted, and effective after July 31st, HJl 7. Wm . Any person over twenty-one years old an,~ of ound mind may make a will This includes married women. "ills or real e ·tate must be signed by testator or 1:,ome person in hi pre. ence and by his express direct,ion and must have two witne.· es who must ubscribe In tei;~ator' · pre ence. Wills of personal prop_erty mw t be in writin_g and signed by the testator or ·ome one ID h1 pre.·ence. and by bis ·uncupat,ive wills are good ru to personal property. express direction. RevocaUon may be by subsequent will or codicil atte.-;t •ct like the original, or by burning, cancelling, tearing or obliterating the same by the testator or by his dlr ct,ion and consent, or by the act and operation of Ja.w. WJIL-, must be probated before ~dmittance in evidence. .l<'oreign wills, when duly probated accordmg to law of the State, where made and duly recorded in this tate, are as effective as wills executed in tllls State. Foreign wills are construed according to law of tate where they are executed.  1873  a:t!1~  n  e   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  SYNOPSIS OF  THE LAWS OF GEORGIA RELATING TO  BANKING AND COMMERCIAL USAGES Revised by RANDOLPH & PARKER, Attorneys at Law, Atlanta. (See Card in Attorneys' List.) Acknowledgments. (See Deeds.) Actions. All distinction between suits at law and in equity 1s abolished. Equitable relief can be had in superior courts of law. Administration of Estates. Letters of administration issue in the line of preference, first to the hlL-,band or wife, second to the next of kin, relations by consanguinity are preferred to those by affinity. If there are several of the next of kin in the same degree, preference is given to that one selected in writing by those most interested in the estate. If no preference is expre. · ed the ordinary exercises his discretion. If no application is made by next of kin a creditor may be appointed, and if no application is made the ordinary will vest the administration in a county administrator, an officer authorized by statute for that purpose. Administrators must give bonrl 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 upport for the family, to be laid ofl' by co=issioners 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 bondsmen 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 rune bond as in the case of {i~:ifil1a~d~fg;\~~he !8i~~f \1'?~~rif o1t~! c~~\~stom;hi<~~~u1ft is brought, a properly authenticated copy of their letters of administration. 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 ollicer is evidence that he was authorized 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 ~~~tu~rr~o~~~uine, and that the court over which he presides is a Alien . The subjects of governments at peace with the United States and this State are entitled to the rights of citizens of other States, resident here, in so far a~ 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 r~~t~m~irnfou~1i~~~o~~;i;:~:~ct~~~ ~~~n~Itnt,:~~~trr:~ti~ g; jail unless be shall give bond and good security, or deliver up the 0  Ef~~~!!ar i~ ~~du~~ f~e satisfaction of the court that it is without Assignments for the benefit of creditors are perAttachments. A summary process of attachment will lie in the following. cases: 1. Where the debtor resides out of the State. 2. Where he 1s actually removing, or about to remove, without the limits of the county. 3. When he ab ·conds. 4. When he resi~ts a legal arre ~- .5. Wher_e he is attempying to remoYe his property beyond the hm1ts of this State. 6. \\ here he has disposed of or threatens to conceal. his property, liable for the payment of his debts or shall make. a fradulent lien thereon to avoid paying his debts'. Attachment will he to recover the purchase money of an article sold when the d~btor i still in the pos. ession of the property. Attachments may is ue upon affidavit by the plaintiff, his agent or attorney who must swear tilat one of the state of facts exists which authorize an at~ac~ment, and also as to the amount of the claim. Bond and ecurity. m double the amount sworn to, must accompany the affidavit on-resident corporations and t!Je officers require personal security. are liable to attachments, and one non-resident may attach the ~~~E:dt~iito~fit~est~ie~-resident in this State, except for wages  mitt'!:'J~ments.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1874  BANKING AND COMMERCIAL LAWS-GEORGIA  Bank . Any number of pen:-ons, not le: ~ than three, may form • a corporation for the purpose of carrying on the business of banking. ::luch corporations, when organized ha\·e power to have continual succession for thirty years, with right of renewal; to sue and be sued; to have and use a common seal; to appoint officers and agents; to make by-laws; to hold, purchase, dispose of, and convey such real and personal property as may be nece · ary for it' 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 depo its; 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. ~ o bank shall be chartered without a capital subscription in good faith of at least $25,000, of which not less than 20 per cent, and in no case less than $15,000 must be paid in before filing the declaration wit,h the secretary of tate. The corporation shall be responsible to its creditors to the extent of its capital and its assets, and each stockholder shall be individually liable for all debts of the corporation to the extent of his unpaid shares of stock, and shall be further and additionally liable, equally, and ratably (and not one for another as sureties) to depositors of said corporation, for all moneys deposited therein in an amount equal to the face value of their respective shares. All corporations doiug 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 by the bank examiner. No bank shall loan to its officers any money without good collateral, or other ample security, and when such loan exceeds 10 per cent of the capital stock it shall not be made until approved in writing by a o bank or corporation doing majority of the board of directors. banking business shall reduce its cash in hand, including amount due by banks and hankers, aud the value of all stocks and bonds actually owned and held, below 25 pee cent of demand deposits. ,_ ·o bank or corporation doing a banking business hall loan to any one person, unless such loan is amply secured by good collateral security, more than 10 per cent of its capital stock and surplus. Banks may charge same rate of interest as individuals and the rules of bank discount, that is to say, taking interest in advance within the lawful rate , have 'o dividend shall be declared by any bank been held not usurious. except from tbe net profits, nor ·hall the capital stock be applied to the purchase of its own share . If the a sets 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. expre' ed or implied, to the contrary, the bank taking paper for collection i liable for tho defaults of its agents and correspondents to whom the paper has been entrusted for collection. If any insolvent bank or banker. with notice of such insolvency, shall receive money or general deposits, and 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 St.ate has a . pecial lien for all public money depo ·ited. State banks are authorized to become members of the Federal Reserve Bank. Bills of Lading and Prom is ory • 'otcs. A bona fide a. signee of a l>ill of lading of goods will be protected in bis title against the seller's ri~ht of stoppage in tran ·it. 1t will not be necessary to protest prombory notes in order to bind the endorser except, in the following case: 1. '\Vhere the paper is made payable on its face at a bank or banker's omce. 2. Where it is discounted at a bank or banker's office. 3. Where it is left at a bank or banker's office for collection. Accommodation endorsers, sureties and endorsers may be sued in the same county and in the same action with the maker, drawer or acceptor. Bills of exchange must be accepted in writing to bind the acceptor. A contract to pay attorney's fees cannot be enforced unless the debtor when served ten days before suit is filed with a written notice of intention to sue with amount and term of court to which suit will be brought, shall fail to pay such debt before return day. A waiver of homestead in a promissory note is a bar to such a claim as against the collection of such note. Promissory note.-; 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. Corporation . Power to create corporation in tbi. State is vested ·aid courts may in tbe general assembly and the superior courts. grnnt charters to all corp rations except hanking. insurance. canal, navigation, express, and telegraph companie and railr9ads. The Secretary of State may grant charters for the corporations abo\'e enumerated in manner prescribed by law in the particular case. A charter for a private corporation is obtained by a petition to tho superior court, setting fort:h, the 0!Jject, parqcul?,r busine.· ,-. c~rpor~tion name capital. place of bwuness, time for which mcorporat 10111s de. ·ired, not e~ceeding twenty years. The petition and order granting the ·ame constitute the charter. In such corporations t-he liabilities of the stockholder is ineasured by the amount of WJpa.id stock imbscription due by him. In tbe chat·ter of many hank now org-ani.-:ed tbe rule of personal liability varies. In ·ome bank· tockholders art; liable as partners: In others liability exists w1uer the g~neral rule, nz.,. to. ~he extent of twice the arnow1t of stock held, and ID some banks hahll1ty exists only to the e.·tent of stock and unpaid sub -criptious thereon. The payment of 10 per cent of the capital stock is nece.·sary before commencing busine.·s. General power:s of corporation· are conferred on all corporations organized in this state. All corporations or •anized under the laws of the 'tate or doing busine.· therein are required to register with the ecretary of 'tate and pay a graded license fee, with a minimum of . 10, maximum 2UIJ. \'oluntary di. .. olution of a corporation ma:i,: be .:-:ranted ~Y the Superior C'ourt u~on petition flied by the Corporation it authorized_ by two-th1rd_s _of cap1t~I sto_ck. Lost stock certillcates must be ertabhshed by pet1t1on to uper10r Court. Cost . A deposit of 10 i · re~uired iJ? courts of r0<:ord fro!'n non-resident; plaintiJis before the filmg of smts and a deposit of G 111 all divorce cases. Court ·. The term, jurisdiction, etc., of the several cour~s or the 'tate are as follows: J 'TICE 'OCRT~' hold monthly session-; and have ('ivil juris<lictiou up to 100. In crimin, l matt, rs they ar:o only committing courts. ~;O_ ~T.' OF ORl_H ... 'AR\ .~old_the1r sessions monthly and have Jur1. d1ct10n over will,;, adm1m trati(!n of estate.,. and of the conduct of administrators, executors an_d guardian~. COU ~TY 'O HTS ha\·e moutbly and quarterly se.·s1ons. The•~ IT\ jurisdiction is limited to controversies not exceeding aoo. COURT · hold four e ion. per annum, but the city court of Atlanta has ·ilc terms. The jurisdiction of city ~0~1rts i.' unlimitt;d exce1>t. in matters of di\'orce, titles to land and adm1111strat1on of eqwtable relief. The municipal court of Atlanta., recently established, replace. tlle Ju<;tices Cnurts. Its juri. oirt ic,nal limit is 500. It holds two terms each month. SUPERIOR COURT,' have jurisdiction of all ·uits  and controversies and have exclusive juri ·diction 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 witne ·ses. one of whom shall be an officer authorized for that purpo e. They should be recorded in the office of tbe 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 purchasers. To authorize the record of a deed to realty, it must be attested by or acknowledged before, if executed out of this State, a  f:?rfnY~c.sf!i: r~~gr~~di/~r c~~u1:ai: ~~~g~~~g~~~in:r (the certificates of these officers under their seals being evidence or 0  0~  the fact). When the deed is executed out of this tate 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 witness ·. besides the officer who takes the acknowledgment. If executed in this State, it must be atte ·ted by a judge of' a court of record of this tate, or a justice of the peace, or notary 1 ;;;egfig~e:: o%J~~ ~~~i~~1Iv~~~~olf ::rr°~:~rn\~':~~~rtPres~t~~~ quent to its execution the deed is acknowledged in the presence of either of the named officer·, that fact. certified on the deed by uch officer, shall entitle it to be recorded. (Act or 1 93.) Deeds to secure loans are in more common use than mortgages because they have been held to pass the absolute title and protect against year's support and dower, the equity of redemption remaining in the maker, can not be levied upon until the debt secured by the deed has been paid ofl'. Under the law of Georgia these deeds can not be foreclosed as mortgages, the note, they are given to secure must be sued to judgment, the land must be re-conveyed to tbe grant.or, and then levied on, but the lien of the judgment relates back to tbe date of the conveyance. In the Federal court.s, however, foreclosure can be made in equity as in the case of ordinary mortgage·. Usury will, however, void such a conveyance, only as to the interest paid on such debt. Depositions. Testimony is taken in this iate by written interrogatories where the witness is a female, or where the witness does not reside in the county where tbe suit is pending, or by reason of disability is unable to attend court. In all counties within this tate, depositions may be taken upon five days· notice to the other party of the tin1e and place at which the witne · is to be examined. 'rhis latter  r~~  N~i~~iti~;~~~:ieu ~~e~ ~At1f:gr \~i1~~r~h~u~1~:. ~~tt~~t '~~:~ mission, before a nof,ary public or any officer authorized to issue attachments. If within the state or if taken without the state, before any omcer of the state or county where taken, authorized by laws of' Georgia to atte t deeds or take acknowledgment , npon 10 days' notice to opposite party. In takin11; answers to interrogatories, which must be authorized by a commission is.sued for uch purpose 'ommi. · ioner · must by the court here, two commissioners must act. be disinterested and not related to either party, or coru1ected with the case: attorney· of the parties are incompetent. ~~one of the parties to the case, nor their agents or attorney·, can be present when the commission is executed. 'l'he witne · can only write bis answer in tbe presence of the commi. sioners. It i usual. and the better practice, for one of the commissioners to ,nite the answers of the witness as they are given. Depositions may be written with the typewriter, and commissioners ma:r adjourn their sittin~s from day to da:r. The following iru tructions for taking te ·timony are important: Instructions for taking answers to interrogatories: 1. Insert the commissioners' names in the commission; any two respectable citizens will do. 2. State the case as you find it. Then comes the caption, thus: (Hore insert the county and State State of. . . . . . . . . . . . . . County or .•........•... ss. where the commission is executed.) By virtue of a commission from the .......... court of .......•.. county, we have caused the person in said commi.. ion named to come before us, who being duly sworn true answer:s to make to certain interrogatories thereto annexed, depo. eth and answereth as follows: (Ilere insert answer· of the witne. ·e · to each interrogatory in order 3. Let the witne sign tbe answers; tben ay: "~wered, sworn to, and sub cribed before w. this .•.. da:r of. ......... 19 .... " Then sign your own names, adding the words .. Commissioner (L. .) " after eal all up together. using two wafers, each comeach name. 4. missioner WYiting his name with · · Commissioner'' across a wafer or seal. 5. , tate the case on the package, a.nd addre.· · it to the clerk of the court is.suing the commfr ·ion. 6. U it i · to go by mail, get the postmaster to receipt on tbe package. "Received from one or the commissioners (giving hi· name) the within interrogatories. to be forwarded by due course of mail." naming his po ·t-o.tilce. Testimony thus taken must be ent by mail, or by some person specially authorized by the commissioner to carry it to the court. De cent and Di trlbutlon of Property. The husband is the sole heir to his inte tate vife, unle.· she leave children. and in tbat event the husband and children shall inherit per capita, but the descendants of children shall take P.er stirpe. Ir a man die without children, or the descendants of children, leavin" a wife, the wife is hi · sole heir. If there are children, or tho~e representing deceased children, the wife hall take a child's part, unle:,:s the share exceed five in number, in which ca,;e the l\-ife shall haYe one-tlfth part of the estate. I! the wife elect · to take her dower, ·he has no further interest in the estate. Children stand in the first degree to the intestate, and inherit equall)·. Po tbumous children tand upon the same footing with other children. Lineal de t·endant of children stand in the place of their deceased parent , and take per ·:tirp , and not p~r capita. Brothers and si. ter . taud in the 'econd degree and inherit if there be no widow or children, or rcpresentatiyes ot' children. The half-blood on the paternal :,;ide inherit equally with the whole blood. The father. if living, inherits equally "ith brothers and i.·ter ·, and stands in the same dec:ree. If there be no father, and the mother is ali\'e, she ball inherit in the ame manner as the father would. Heal es ate de ·ccnds direct to the heirs, and p rsonal e. tate to tbe administrator. But real estate is ubjec~ to administration ,for the purpose of paying debts. aud if nece · ·ar:r. for dbtributiou. Dower. In this t te the wife ls entitled to an e.·tate for !ffe in onethird of all lands of which the hu.·band dies 'eized or po. ·e.·,.,ed at the tnue of his death, or to which the bu band obtained title in right of his wife. There i. no necei;.sity for renunciation of do,, er in this state. and a married woman, on that question, need not join with her husband in conveying land, except inc, e · where. b fore 1 flu, he obtained real estate belonging to his wife, hy virtue of the marital relation. E. ·ccution . . Iu. t folio, the Judgment or d cree from which they i. sue. They are good for seven year· and may be renewed for a like period by entry nulla l>ona. nder the constitution and la~·s Exemption and Home tend . of Georl(ia, each bead of a family or guardian, or trustee of a fan~1IY of minor children, or of an a"ed or iullrm pc1-son. or a person hanmz: care and upport of dependent female:· of any age, who Is uot the head of a family, ball have e.·emption of realty, or personalty,. or both, to the ac:gregate or $1600. 'l'be d btor shall ha, e power to watYe or renounce, in writing, hi. right to the benefit or e emption al>o\tb'e stated, except as to wearing apparel and not e.·c eding 300 wor  of or sa de Up or  an  co th de. w  COi  po co an po fo ar iss wl re or ad 0\  ca lll  co  5.  pr  7.  in bu or 8.  0  1  for Stat dee X sory  Pay  BANKING AND COMMERCIAL LAWS-IDAHO of household and kitchen furniture, and provisions. The homestead or exempt.ion may be sold by the debtor and hi'> wife, if any, "ith the sanction of the judge of the superior court of the county where the debtor resides, or the land is situated. The proceeds to he re-invested upon the same uses. A general waiver in writing, of the homestead, or exemption, is good. Foreign Corporations. All corporations, except those chartered and organized under the laws of this State, are held to be foreign corporations. Such corporations are recognized by comity only; they are subject to attachment, but have all the rights of replevy and defense. They cannot exercise any corporate powers or privileges which by the constitution and laws of Georgia are denied to domestic corporations or the exerci e of which would be contrary to the public policy of this State. There is otherwise no restriction upon foreign corporations except in the case of insurance companies and building and loan associations, which are required to make deposits. All corporations are subject to license fees for doing busine and all are liable for taxes on property owned or held in the State' ( ee Corporations.) Fraud. Contracts, awards, marriages, judgments. sales, and wills are void when they are brought about and procured by fraud. Promissory 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 writinv, signed by the party, or his authorized agent, to be binding: 1. A promi ·e 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 miscan·iage of another. 3. An agreement made upon consideration of marriage, except marriage articles as otherwise provided. 4. Any contract for the sale of lands, or any interest in or concerning them. 5. Any agreement that is not to be performed in a year. 6. A promise to revive a debt barred by statute of limitations or bankruptcy. 7. Any contract for the sale of goods, wares, and merchandise, in existence or not in esse, to the amount of $50 or more, except the buyer shall accept part of the goods sold and actually receive the same or give something in earne t to bind the bargain or in part payment. 8. An acceptance of a bill of exchange. Garnishments. This process may be invoked in any ca::--.Ie. Garnishment may be dic;solved by giving bond and a third party may claim a fund held up under garnishment and may release the fund by giving bond. Any person may claim exemption from garni bment as to wages to the extent of 1.25 per day and one-half of the remainder. llolldays. January 1st ( ew Year's Day), January 19th (Lee's Birthday) February 22nd (Washington's Birthday), April 26th (l\Iemoriai Day), June 3rd (Jeffer on Davi • Birthday), July 4th ndependence bay), First Monday in September (Labor Day), ecember 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 exce s if u ury is set up. Usury has no pre ·ent penalty in Georgia, except forfeiture of all interest paid upon the debt. Judgments create liens from their rendition upon the real or personal property of the defendant; all judgments at the same term rank equ~Uy, and property sold by a debtor _after judg~ent is ob~ained agamst him is only discharged from tbe lien of uch Judgment, if ,eal estate, after four years' posse sion by the vendee, and in cases of peronal property after two years'. Judgments, whether in the United tates 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 thlrty days. its lien will only date from the time of record. (See Actions.) Jurisdiction. (.. ee Title Courts.) License. No licen. e is required of commercial travelers. Itinerant traders must pay license fees. Liens. Under the laws of Georgia mechanics, material-men, D?-aCbinists, employes of steamboats, millwrights, builders of go~d D?-llle machines, stone-cutters, and marble works laborers have special li4:Jns on property improved or worked on. Landlords have a general hen Which takes effect from the levy of distress and a special li~n on ~ops for rent of land on which they are raised. Common law hens of mnk!'lepers, factors, pawnees. carriers, attorners and others are recognized. Vendor's lien on land bas been abolished. Attorney· _hav~ a special lien on papers in their hands and on property recovered m swts brought by them or successfully defended by them. Limitations. 'uits on open accounts are barre~ after four year , on promic;sory notes and bills after six years .. op instruments under seal after twenty years, on suits for personal mJury after tw_o years. Seven years' adverse possession of real e tate under <;olor o~ title, and tw4:Jnty years' adverse po session witho1;1t c~~or of title, will bar the claims of all person<s not laboring under d1sab1hty. Infants have se, en Years to assert their rights, after becoming twenty-one years of ag_e. l\1arrted. Women. The wife may contract and sue and be sued m her own name in respect to her separate estate as a femme ·ole, except that she can not bind her separate esta~e by sll!-"etys"\liP for any one, and any promise to pay her husband s debt 1s void. She cannot sen to her husband or trustee for any purpose, except by order of the superior court. A wife or her heirs may sue and reco~·er from any Person money or property used by her husband to pay his d~bt where t~e creditor takes with notice. All the property of tl?-e wife at the tune of marria"e and all she may acquire by gift, inheritance, or purchase, hall vest 'in and belong to her, and shall ~10t J?e liable ~or the !lebt, default, or contract of hc.>r bus band. The wife with her children, if any, is entitled to twelve months' support out of the e tate (?f h~r decea~cd hu band. The husband is bound to supp_ort and ma~n!arn the wife, and his con ent is presumed to hez: agenc:y JD the pur hw,;e of necessaries. The wife's separate property 1s not _hable for deht;; contracted by her as a"'ent of her husband in the ordmary suppor~ of h rsetr and children but by special contract in her own capacity, and not a· agent for her husband, she could bind her separate estate, ~or that purpose. A manied woman can dispose of her property by will. l\fortgagcs. Mortgao-es are only security for debts. They may elll))racc property in the "'mortgagor's po session,, or to which he J;i.as !'I- right of possession. 1'hey may cover a stock m bulk: but changm_g 1n Peciflcs, and after acquiring propertr. o pa~1c~ar for~ IS necessary, but it must be cleared that the mstr_ument wdicates ,ien, dci.cribes the property and specifics the debt 1t_ ·ecur ·. :\Iorw~ages on land are not goocl against dower, and a wife cannot waive her !1owe1· as against this lien. Mortgages must be executed and attested ID the same manner a deeds, except that in morte;ae;e on_ personal Property, only the official witness is ncce sary. ::--.Iortga" ~"1th power of .sale are valid in Georgia. Homestead and exemption may b_e Wawed in the mortgage. All mortgage on persol}al property mu, t be recorded in the county whcr the mortgagor re 1de;; ~ud the property is located. Mortgages on land must be recorded w the count.y Where the land is situated. Notaries. ommercial notaries, male or female, are appointed for four years by the superior courts, and for the state a~ large by the State Librarian. They must have seals and are au~horized to atte t deeds and mortgages and make prote. t of commercial paper. Xote and Bills Fxcb.ange. ( 'ee Bi_lls of Lading and Promissory Notes.) Promissory notes are negotiable by endorsement of Payee, or holder. notes payable to bearer are transferable by delivery  g  t e  t ·s d d  of   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1875  only. Bonds, specialties, contracts, bills or lading, and warehouse receipts, are negotiable by endorsement or written assignment in the same manner as bills of exchange and promissory notes. Endorsements may be limited by express restrictions. Acceptances of bills roust 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 aking 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 Mortgages.) Prote ts. (See Bills of Lading and Promissory Notes.) Records. (See Deeds and Mortgages.) Redemption. There is no redemption in this State under judicial sales except in case of sale of property under tax execution where parties may redeem in twelve months if improved land and wild land within two years. Replevy. All property seized under attachment, distress, or other similar process, may be replevied. Prop~rty 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 <'reditors 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. ales of property for taxes are conducted in the same manner as other judicial sales. One year in which to redeem is allowed. Wills. All persons of full age and sound and disposing memory, including married women, may make wills, and dispose of their estates. Wills must be executed in the presence of three witnesses, all of whom shall be present, must be called by the testator as witnesses, and must sign, and shall certify that they signed, in the presence of the testator, and in the presence of each other. Wills must be in writing, except nuncupative ,vills. Wilie; of citizens of other States, where executed according to the laws of the tate, 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 sucl:I__probate was made, had original jurisdiction of the subjectmatter. Wills art-l probated in the court of ordinary in the county where the testator resides at the date of his death. All wills executed out of this State by citizens of this State to dispose of property in Georgia must be executed according to our law. A foreign will, executed according to the law of Georgia, will constitute a muniment of title to real property without being probated in this State, when recorded on the record of deeds in tho county where the land lies. together with an exemplification of record admitting it to probate in another tate, certified according to the Act of Congress.  SYNOPSIS OF  THE LAWS OF IDAHO RELATI 1 G TO  BANKING AND COMMERCIAL USAGES Revi. ed_.by R1cnARD0 & HAGA, .Attorney. at Law, Boise. in Attorney ' 1.ist.)  ee Card  Acknowledgment . All conveyances and other instruments required to be acknowledged in tbis tate must be acknowledged, if within the State, before a judge or clerk of a court of record, a county recorder, a notary public, or a justice of the peace. If without the State, but within the United tates, they must be acknowledged before any uch officer. or a commissioner of deeds for this State, or before any officer authorized by the laws of this State or_Territory..to_take   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1876  BANKING AND COMMERCIAL LAWS- IDAHO  such acknowledgment. If without the United States. they must be acknowledged before a minister or charge d'afl'airs of the United States, resident and accredited in the country where the acknowledgment is taken, before a consul of vice-consul, a judge of a court of record, a duly appointed commissioner, or a notary public. The certificate of acknowledgment, if made before a justice of the peace, when used in any county other than that in which be resides, must be accompanied by a certificate, under the band 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 handwriting, and believes that the signature is genuine. Proof of the execution of an instrument may be made though it has not been acknowledged. Form of married woman's acknowledgment the same as that of a single person. (See Conveyances.) Actions. There is but one form of civil action in this State. As action is commenced within the meaning of the statute when the complaint is filed with the derk. Every action must be prosecuted in the name of the real party in interest. Affidavits are used only to verify pleadings, to prove service of summons, notice, or other paper. to obtain provisional remedy. Aliens. Code provisions as to holding property by aliens have been repealed. (Bess. 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 fee or for life. Arrests. The defendant may be arrested in a case for the recovery of money or damages on a cause of action arising upon a contract, express or implied, when the defendant is about to depart from the State with intent to defraud his creditors; also for money or propertl' 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 bis property with intent to defraud his creditors. Assignments and lnsolvenc:y. An insolvent debtor may be discharged of his debts by executing an assignment of all his property, real and personal, which, with a sworn inventory of property and schedule of creditors, must be filed in the district court. At a creditors' meeting, held after thirty days' notice given, one assignee is appointed, and claims proved. Court will be set aside property exempt, and issue order for direct payment of money, where no mortgage or pledge had been given, or where such security, if given. has been rendered neugatory by act of defendant. Assignee must furnish bond, with two sufficient sureties. 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 judgment. Defendant in a ciYil 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 complete law upon the formation and regulation of banks and the formation of banking corporations. o banking corporation can have Jess than five directors. All banks, other than national banks, are under the . upervision of the Commissioner of Commerce and Industry. The banker has a general lien, dependent upon pos ession, upon all property in his hands belonging to a customer for the balance due him from uch customer in the course of the busine · . (Compiled tatutes 1919, secs. 5205-5304, Laws 1921, p. 55.) 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 tates 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. (Compiled Statutes 1919, secs. 53055324, Laws 1921, pp. 29, 297, 375.) 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 w.riting, subscribed by the party or bi<; 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 bas the management, control, and absolute power of disposition of her separate property, and may bargain, sell, and convey her real and personal property, and may enter into any contract with reference to the same, in the ame 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 tbe obligation is for her benefit or benefit of her separate property. An instrument purporting to grant real property to take effect upon condition precedent, does not pass the estate upon the performance of the condition. uch instrument is merely an executory contract. (See Acknowledgments.) Corporations. Private corporations may be formed by three (3)  ~i  1tw~e gf~~-ns•s~~~ea:Jrg~:ag~:h~mfor:1~!~ b~: ~~~~un~~ r:~t1~: of incorporation, containing: 1. The name of the corporation. 2. The purpose for which it is formed. :3. The place where its principal business is to be transacted. 4. The term for which it is to exist (not exceeding fifty years). 5. Tne number of its directors or trustees, not exceeding fifteen, who must be tockholders of the corporation. 6. The amount of the capital i;tock and the number of shares into which it is dividect. 7. The amount actaully subscribed, and by whom. The articles may provide for the election of one-third of its direct.ors annually. Railroad, wagon road, telegraph and telephone corporation: mu t state also in their articles: 1. The kind of road, telegraph or telephone line intended to be constructed. 2. The estimated length of the road or line. 3. They may provide in their artir.les 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 meelings of the hoard shall be hE1lcl within or without the ,:tate. 5. Whether . to,·khol(.]ers shall be individually liable for debts of corporation. Railroad coq1oratio11s must have subscribPd, before filing artic'les. $1,000 per mile: Wa.!(on road corporations, $300 per mile; telegraph corporations, $100 per mile, and the articles mu. t be verified by affldavit of president, secretary, or treasurer named in article'>, that such "tock has been subscribed. All articles of incorporation must be filed in the office of the  county recorder, in which the principal place of business is located, and a copy thereof certified by the recorder, flied with the Secretary of State. All corporations, except insurance. non-productive mining companies, co-operative telephone and irrigation companies, must gay between July 1st and , eptember 1st of each year, a license fee  $~~1 ~nf!r1~~~~J~ ~~~~~itf~~:~e~~~~• l~rtn~fJt:tp!~~l~~ of SlO, and a failure to malrn 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 business in this State, may have all the rights and privileges of like domAF:tic corporations, by filing with the secretary of State, and In the office of the county recorder of the county wbere the principal place of business of such corporation is to be conducted, a copy of their articles of incorporation, and the designation of some person residing in the county in which such principal plare of business is to be located upon whom process issued hy aut-hority of or under any law of this State may be served. De ignation of agent must be filed with Clerk of District Court instead of County Recorder. Courts. Terms and Jurisdiction. The judge of the district court of each of the judicial districts of the State must annually fix the time for holding the district court in the several count.lei" of his district; and he may hold such special term"> as he deemc; proper and necessary. District courts have original jurisdiction in all civil cases. Probate court<; are held in each county continuousl:i,, and have jurisdiction up to $500, in civil cases and concurrent jurisdiction with justice's courts in all criminal cases. Justices' jurisdiction, $300. Curtesy does not exist. Days of Grace abolished by statute. Depositions may he taken before any judge, justice of the peace, notary public, or United tates commissioner, or any other person agreed upon by the parties, upon notice served upon the opposite party, stating the court, action, timA, 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, con.<:tructing canals, railroads, etc., must make, record, and publish a statement, under oath, setting forth the following: The name of the owner of the premises where work is being done or upon which it is 0 0 ~t~~d!iJ c~~f~;l~~~; !~;:g~: gf ~h;rEe~p onn °;"u~imgr~~i;e~~a1t~ conditions under which such person or corporation is prosecuting the work as agent, owner, etc .. the principal office or the owner and the agent in this tate; the time and place where payment of la.borers and mechanics will be made. A copy of the statement must be posted at the place where work is prosecuted. Employer's Liability Law. Provides for damages not to exceed $5,000 for injuries to employe 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. Homt>Stead, not exceeding $5,000, if declaration of homestead is duly acknowledged and recorded: office furniture and library, $200; nece~ ary 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; al'lo crop" growing or grown on fifty acres of land, leased. owned or po essed by person cultivating the same; tools or implements of mechanic necessary for his trade of the value of 5500: all instruments of surgeons, etc., also all professional libraries; miner's dwelling of value 500, and hi pipes. cars, etc., of the value of S200; pack animals and equipments, not exceeding 250; team, wagon, etc., of drayman; <:eventyfl.ve per cent of the personal earnings of a debtor within thirty days  ~r:tet~::~~::-~~~lct~/;~~Uiheu.teu?1~f;;:1~irc1  r::1~d~fs rt~~~ Association to the value of Sl,000; provided. such per·on has no homestead; all benefits ari ing 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. Garnl hment. Any personal property or credits In the hands of another, belonging to the defendant, i. subject to garnishment, a.s are debts owing to him from another if due. Guaranty, Title and Trust Co. May furnl. b abstracts. act as surety, trustee,• fiscal agent. Paid up capital of 25,000 required. Capital deemed security for the performance of their duties. Holidays. January 1st. February 22nd, May 30th, June 15th, (Pioneer Day), Fourth of July, first Monday in September (Labor Day), October 12th, Thanksgiving Day, Christmas, undays and any day on which a general election is held. Hu band and Wife. All the property of the wife owned by her before marriage, and that acquired afterwards by gift, bequest, or de ·cent, or that which she shall acquire with the proceed-. of her separate property and her per onal earnings and the income from her separate property, . hall remain her ole and separate property, to the ame extent and with the same effect ~ the property of a husband similarly acquired. The wife has the management, control, and absolute power of disposition of her separate property, to the same extent and with llke effect ao;; a married man may have in relation to his real and personal property. The separate property of the wife i not liable for the debt,, of her bu ·l.Jand, but i · Iial.Jle for her own debts contracted hefore or after marriage. Tbere is no estate hy courtesy or in dower. • larriage ·ettlements are provided for. and when ihoperly executed and recorded may vary the statute 0 ~i~b~~infrino'i-s r~!~ ~e~teh~~~fJ1~!~r1ag~i~eet property In tne t. Where there is no express contract in writing fixing a definite rate of intere 't, the rate i · 7 per cent per annum. Parties may agree in writing for interest at a rate not to exceed 10 per cent per annum. Judgments bear lntero-t at the rate of, per cent per annum, compound interest allowed. Judgments are liens on all real e.·tate or debtor within the county. from time of docketing, and may be extended to other counties bY filing transcript in recorder':s o!lice. Lien cont lnues five years, Ju.·tice's court judgments become liens when cerWtled and recorded. 1 lay be revived by l:suing execution within limitation. I.lens, ::uechanlc '. Every person performing labor upon or f!-11'· nishing materials u ed in the construction or repair •of auy rnirung claim, building. or other improvement, has a lien thereon. Farm la.borers have lien upon the crop and product thereof, upon which they bestow labor. All liens must be se, forth by a statement in 1  i~~:~~ug  C 0  C  a  re ill Os  er  01'  a  es  "a  co to  it hn co1  • ow Wit ni, t,h  th ses ~  Cia  ~  are  Siu,  ~  cac  l>Ol' l"Cll  con  SUtJ  the 'J  at Yea  BANKING AND COMMERCIAL LAWS-ILLINOIS writing showing the amount, due. the facts connected with the matter, that there are no credit,s due on the claim, or o:fl'sets against the same· which statement must he verifled by the claimant, and recorded in the office of the county recorder, if on claim of original contractor. within ninety days, if on claim of other persons. within sixt.y days from the time of the completion of the structure the completion of the tahor, or the furnishing of the materials. Lien must he enforced by suit within six months, unless credit is given, expire a1, all events in two years. Lilnitation to Suits . Contracts not in writing and open accounts, four years· instruments in writing, five year.'; judgments and decrees, six years. ' Revivor: Only by instrument )n writing; part payment docs not. :\tarried \Vomen. All property. real or personal , a cquired before marriage and acquired after marriage, by gift. l>eque. t , dev ise. or descent, and her pe1-:,;onal earnings and the income from her separate property are the ,,ife 's separate property; all other property acquired after marriage , common property; "ife must record inventory of separate personal property. " o estate as tenant by courte. y allowed the husband nor dower to the wife. l\lines and l\lining. (Pt·incipal regulations under United States tatutes.) Quartz locations may be 1,500 feet long and 300 feet on each side of the middle of loclo. }.Ionuments must be established a.t all exterior angles of claim. Claim should be tied to some natural or permanent monument. Copy of location notice must be posted at di coven' within three days after discovery. ~ Tot ice of location must be recorded within ninety days after location; within sixty days ten-foot shaft must ho sunk or its equivalent. Location notice must contain name of locator, name of claim, date of disco\·ery, dimensions, distance from some permanent. natural, or artificial objeet,; name of mining district, county, and state. Placer loc-at.ions marle in same manner as quartz locat.ions. except that within fifteen day. after making location, locator must excavate not le.· than 100 cubic feet for purpose of prospecting claim, and must record notice of location within thirty days aft,er making location. J.\,[ortgages. A real estate mo!'tgage must be acknowledged and certified, and recorded in like manne.c as con--veyancos and deeds of real prope1·ty, and is foreclosed by action in the district court. Chattel Mortgages must be acknowledged as real estate mortgages and sworn to by tho mortgagor that the ame is made in good faith without any design to hinder. delay, or defraud credit,ors. ~ lust. be filed and a minute record made by recorder, unless mortgagee has Pos.·ession. Survives ru long as the debt. :\lortga2;es are di. charged hy a satisfaction duly executed and recorded, or I y entiT on margin of the record. witnessed hy rec-order. Tegotiablc Instruments. Negotiable in. trum nts are 1:mverned by the rules of the Uniform egotiable Instrum nt Law, as recommended by the American Bar Association. ( eo Laws 1903, p, 3 0.) Notaric , when requested, to demand acceptance and pa::rmenti of foreign, domestic, and inland bills of exchange or promissory notes ancl protest the same for non-acceptance and non-payment; exercise . uch othe1· powers and duties as by the law of nations and commercial u. age, or bY the laws of any other Territory,. tate, government, or country may he performed by notaries. ttach acknowledgments or proof of power of attorney; mortgage., deeds, grants, transfers, and other instruments of writing executed by any person. Give certificate of such proof or acknowledgment, to take depositions, aflida\it , and admi1Jister oaths and affirmations in all matters incident to duties of the office. To keep a record of all official acts; when requested, and upon payment of his fees therefore, to make ancl give a certifted copy of any record in his office; to provide and keep an official seal, on which must be engraved his name, the words " .. -otary Public," and the name of the county for which he i. commissioned. To authenticate with his oflicial seal all official acts. The commission is good throughout tho State. J>ower of Attorney. Powers of attorney fo.c grant· of real e-;tate and to execute a mol'tga.ge must be in writing, subscribed, acknowledged or proved certHled and recorded as other instrument.<; affect,ing t·eal property. l'owors of attorney which have b en recorded ~ust he revoked by revocation in writing, a~knowledged, proved, certified, and recorded the same as origi1ml power. Probate La.w. Probate courts have jurLdiction to open and receive proof of "·ills and admit them to proof; Lo g-i:ant letter:l testamentary and guardianship and revolce same; app 111t appraisers of estates, compel executors. etc., to render accounts; order sale of property of estates and minors; order payment of debts due from estates, order and regulate di ·tribut ion of property _or estates: compel_ a1tendanre of ,vitne.<.! es and production of all mstruments pertammg to estates and pro 1 erty of minors, and make such o~der · as m~y be necessary to exercise all powers conf rred .. Proc_eec,lmg of .this co_urt_ ~re construed the same as courts of general Jur1 d1ct10n and hko fore e gn en to its records. Protest. ( ee otaries.) Uccords. All deeds, mortgage , real and chattel, and in. truments affecting the title to lands must be recorded. Inventory of the seJ_)arate personal estate of a married woman when recorded, IJe~omes Pl'lma facie evidence that the property therein ei umeratcd 1.· her ;;eparate property. In case of le,·y of attachrnen upon r al estate, a copy of the writ. with a copy of the notice of leyy attached thereto, must be filed in the omce of the count~· recorder. Ucdemption. Property may be redeemed within one year aft~r 8 !1,le, on payin~ purcha ·er amount paid 011 sale auc~ 10 per ("ent. add1tu_m~l. Property may be rc,Ieeme<l: hy succ •:-·1~· redc1_npt10ners W1thm sixty clays from last rcdcmpt10n, and wit lll one ~ ear from sale, by paying an adtlil ional l per cent. In case· of ta.· . ales, the owner may redeem in three J·cars Replcvin. Action of, must be brou~ht within.three ;.vea1: fro~ ti!Ile !t accrues. Plaiutill may sue for the poss~ss1on w1th~ut cla_mung 11nmediate possession, or ho may claim immed1a~e posscs--101~ a~ t1!De of commencing suit or aflenHu·cl. .Aflltlavit show1n~ t_ha.t plamt1!f 1s the myner, the detcnt.ion, the unlawfulness of ~he detent10~. etc .. and bond With sureties required to ol>l,ain immechate J?Oss~ss1011. Defo~dant may execut,e undertakin" "'ith approved. sureties, !or the ret entJ()n of the property and tlmt it' will be forthcoming, subJect lo t~e order of tho court in· \~hich the action is pending, and thereupon retam the possession of the pi·operty involved. . S:iles. Uniform sales Act recommended by American Bar Association. Se:Lls. The distinctions between sealed and unsealed instruments a_re abolished. Writt,en contracts presumpti\ e eYidcnee of c nsictcration. Succession to J>roJ)crtv. If decedent leave spow,e and one c• ild each entit.Ied to one-half of decedent's ~evarate propPrty, hoth r!•al ~ nd . I>ersonal: if more than one child, sm·v1vmq spou.~c gets one-th11'd and 1' ntainder in enual shar s to surviving children. In the 1·a•·e of com_11111nity property, the ·ur\"iving _spou:,E:: take., all th_e property Ul>Jer-t to t.he rig-ht oft stamontary dispos1t10n of one-hall thereof by the decedent. (See ·wms.) 'I'axe.. All property must be assessed with referenc to it.· Yalue at twelve o'clock noon on the second }.!onda}' of January of each Year at its full cash value, and the owner or other claimant of the  119   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1877  property shall have the same listed for taxation, and such taxes are a lien from and after that date. If taxes are not paid by the fourth Monday in December they become delinquent, but half of t,he ta:e,, may be paid before said date and the remaining half before the fourth Monday in June without delinquency. A penalty of 6 per cent is added on all delinquent taxes. Delinquency <"ertiflca,tes issued to the county for all delinquent taxes dated as of the second J\Ionday in January, bearing interest at 12 per cent, whic-h are assignable. For taxes levied for 1917 and subsequent, year. the owner must, redeem 1 0 ~\~sltf~se~~I~e~v,;!f!~ ~r~~e d;i~ehi~f ~f~'1\Wi~tt> Ii;gi~eio ~~~i~~c1~~ tax deed on record owner of land and person in posse.· ion at least three months and not more than five months before the expiration of three years, and on holders filing aflidaYit for record showing compliance. and after expiration of three years. he is entitled to tax deed conveying absolute title to the land.· . (( ompilcd Statutes l!Jl9, chapter 14 L ) Trust ompanies. (See Guaranty Companies.) \Varehouse Receipts. The Uniform Warehouse Receipts Act, recommended by the .i-unerican Bar Association. \\'ill . Every person ovei· the ag-e of ighteen years, and of sound mind, may make a will. E,·ery wiJl, other than a nwicupative will, must be in writing, and every will other than an olographic and a nuncupative will, must be executed by the testator subscribing thereto or some person by his direction, which must be done in the presence of two attesting witne ses, each of whom must sign his name and state that the testator reque ·ted him to witne. · the testator's signatw·e, and the testator must also declare in the presence of the witnesses that such is his last will and testament. One-half of community property may be disposed of by will to his, her or their children, but not to exceed one-fourth to a parenG 01· parents of either spouse. ·work1ncn's Com1lensation Act. See ( hapter 236 Compiled Statutes 1919, amended Laws 1921, p. 47-!,)  1  SYNOPSIS OF  THE LAWS OF ILLINOIS RELATING TO  BANKING AND COMMERCIAL USAGES PrPpan cl .ind HcYised by ".\Icssrs. :\I 1 ,-,c;n , E. 0PPE'>HEnr. - [ rK1-.1,, ~.R , · L1pp1.·, · 01T, Attorneys at La". Chica~o. ('-Ice ard in .\ttorne)·'s, List.) Acknowled~rncnts. Of deeds of real estate and other instruments, may be taken before the following omcer ·: \Vithin this State before a ma..,ter in chancery, notary public, nitod , tates commissioner, county clerk, ju-;tice 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 C'olumhia, before a justice of the peace. notary puhlic. master in chance1·y, nited F\tates comrnico ioner, commissioner to take acknowledgmei1ts of deeds, mayor of a city, clerk of a county, or before any judge, just ire, clerk or deputy clerk of the 1:mpreme, or district court of the l'nited States. or before any judge, just.ice, clerk or deputy clerk, prothonotary, surrogate, or rciistrar of the supreme, circuit, superior, district, counLy, common pleas, probate. orphans or surrogate court of any of the St.ates, 'Territories, or dependencies of the United States. In any dependency of the United States, such aclmowledgment or proof may also be taken or made before any commissioned officer in the military service of the 'Gnitecl Stat s. When such acknowledgment or proof is made hefore a notary public, United tates commissioner, or commLsioner of deeds, it must be cert,ified under his seal of office.• If taken before a mayor of a city, it must be certified under tho seal of the ri1y; if hoforo a clerk, de1mty cle1k, protht,nor ·1 ry, registrar. or surrogate, under tho seal of his court; if before a justice of tho peace or a master in chancery, there mu t be added a certitlcate of the proper clerk under the seal of hi office setting forth that such per. on was a justice of t,110 peace or ma ·ter in chancery at the time of taking such acknowled11;mo11t or proof. An acknowledgm nt or proof of execution may he made in conformity with the laws of the , tate, Territory, dependency, or district where it is made. Without the United tates, before any court of any republic, dominion, state, kingdom, empire, colony, territory, or dependency having a eal   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1878  BANKING AND COMMERCIAL LAWS-ILLINOIS  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 amhassador, minister. or secret&.ry of legation, or consul of the United States, or vice-consul, deputy consul. commercial agent, or consular agent of the United State·. The acknowledgment of a conveyance by a married woman may be made and certified as if she were single. An acknowledgment taken by any one interested in the con \'eyance is void. Actions. Forms of action ancl pleadine:s are substantially as at common law except in ju tice courts and the municipal court of Chicago, wherein the practice has been much simplified. A non-resident is required to give a bond for costs. Administration or 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 decea'led, then administration is granted to the public administrator oft-he proper county. The administrator must be a resident of the :-:rate. A foreign executor or administrator, within the t:'nited States, may prosecute suits to enforce claims or to sell lands to pay debts. The Uniform Foreign Probate Act is in force in 11Jinois. The executor or administrator must file an inventory , itbin three months from the date of his appointment and mlL'>t fL"C 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 flle his verified claim, which, if not objected to, may be allowed without further evidence. 1f objected to, the claim is srt down for trial. If the claim is not presented at the time fixed upon, it may afterwards, within one :rear, from the date of the issuance of letters of administration, be filed with the clerk, whereupon a summons issues against the executor or administrator, and the matter is beard at a sub~equent term. All claims not exhibited within one year from granting of administration are barred. Claims are classified a<; follows: 1. Funeral expenses and cost of administration. 2. ".idow's or children's award. 3. Expenses of last illness, other than physirian·s bill, and demands due household laborers or servants of deceased for lat.or. 4. Debts due common school or town ·hip fund'i. 5. Phy. i<'ian's bill for la t illness. 6. Trust funds. 7. All other debts. '!aims have priorit,y of payment in the above order. Atnd:n-its. 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 jurisdicLions. Without the State the oath or afiirmation 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 ofllcial seal is received as prinie facie evidence of his authority. Aliens. The present law went into effect July 1, 1~97. 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 certain restrictions mentioned in the act, may acquire and for a limitf.'d time hold real estate situated in this 'tate by deed, deviso. or descent, and may transfer devise or encumber it. Arrest and Bail. .. o 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 1llinois Act relating t-o voluntary assignments for the benefit of creditors has been suspended by the national bankruptcy law. Attacb1nc11t,1. A creditor, resident or non-resident. who e claim is due. may bring attachment in a court of record if the amount exceeds 520, and in ju tice court for any amount not exceeding 200, on any of t,he following grounds: 1. ,vtere the debtor is a non-resident, of this 8tate. 2. \Vhere the debtor conceals himself, or stands in defiance of an ofiicer o that process can not be .·erved upon him. 3. Where the debtor bas departed from this Htate with the intention of ha·ving his effects remoYed from this tate. •1. Where the debtor is about to depart from this State with the intention of having his effects removed from this State. 5. Where the debtor is about to 1 0 ~~m~te1:I;" t£~ J;b~~r fi;~~ i~a~.~~/~J~ctfntt~~ i~i£~eg/\~~ affidavit required, fraudulently conveyed 01· assigned his effects. or a. part thereof, so as to binder or delay bis creditors. 7. Where the debtor bas wilhin two years prior to the filing of such affidavit framlulently concealed or disposed of bis vroperty . o as to hinder or delay his creditors. 8. '\\'here the debtor is about fraudulently to conceal, assign, or otherwise di'lpose of his property or effects so as to hinder or delay his creditors. 9. Where the debt sued for was fraudulently contracted 011 the part of the debtor, provided the statement.· of the debtor, his agents or attorney, which constitute the fraud, shall have been reducell to writing, and his signature attached thereto by himself, agent. or attorney. The creditor must give bond in double tho amoun.; of the claim. Real estate or personal property may he attached or funds p;arnished. The property or funds may be released by the ctebtor giving a forthcoming l>011d, or entering into a reeognizance in court to pay tho judgment. Banks and Banking. Under the state constitution stockholders have a double stock liability, and every bank mu ·t make, under oath, and publish each quarter a full and a<'curate tat.emcnt of its alfair ·. An Act to revise the law in relation to banks and banking was passed and approved June 23, l!)W, aud ratified by referendum at the election of November 2, 1920. Banks may be formed under the statute for the purpose of di<,count, and d<•posit, buying the selling exchange, and doing a general ba.oking busine. s, except tl,e b. uinp; of hills to circulate as money; may loan 011 both personal and rt'al estate secw·Hy. and may accept and e. ceute trusts. An a.s oda ion of persons, not less than three. may organize a bank by fllinf.?: a statement with the Auditor, giving the place of !Ju. ·inc.:,,, amount of caµital, name and duration, whereupon the Auditor i. · ·ue,- a permit to org, nizo. Tbe shares shall be $100 each. After the permit to organize i i uccl and the stock fully ub. cribed, the toddwlde1 meet, llx the numb 'r of directors and elect the director:; who shall manage the corporation for one year, or until their successor. arc elected. At the election of directors. stockholders have the right of curuulati\·e voting. The directors elect one of their number President. appoint the uece. ary ofllc-ers ancl cmploycs. fix their alaries and ma! e by-laws. had1 director shall file v.ith the ·tate Auditor an alt dadt tl1at !Je will faithfully perform the duties of bis o!llce in accordance 1'ith Jaw; that, he is the owner in his own right, of ten. bares or the stof'k of the bank, free from incurnbrance. Tbe directors must cause suitable books to be kept and tlle with the Auditor a lbt of stockholders ancl a copy of any other records the Auditor may requin,. l:nles another day i · fixed by the by-laws of the • ociation, tho stockholders ·hall meet the tirst l\londay in January and elect director::;. Yacan ies are filled by vote of two-third:: of the director... .Each director must own ten shares of the stock of the bank and tlle a certificate or certificates thereof with the Cashier, to be held during his terru as director. A quorum of the directors must meet once each month. Any olilcer. director or employe who shall make a false tatement to any oillcial authorized to examine the affairs of the bank, upon conviction shall  ~~ii!\~~  be punished by imprisonment of not I~·s than one or more than ten years. When the State Auditor is satisfied on examination that the bank has been duly organized and its stock fully paid, he issues a certificate that the bank is authorized to commence business, which certificate must be flied with the Recorder of Deeds of the county in which t!J.e bank is to carry on its business. The double liability of stockholders applies to all debts contracted while they hold stock in the bank and is not relea-;ed by an assignment of the stock. The President or Cashier must, within thirty days after organization fl.le with the Recorder of Deeds, a complete list of stockholders and their holdings and record thereafter a certificate of all transfers ,vithin ten days after such transfers. A statement of the resources and liabilities of the bank mlL'lt be flied with the State Auditor when required by him. The Auditor must call for such report at lea.st once each three months. This report must be published in a newspaper of the city or town where the bank is located. The State Auditor shall appoint a suitable per.-on, not connected with tbe bank, to make a thorough examination of the affairs of each bank once a year, and report the same to the Auditor. A bank may hold only such real estate as may be necessary for a banking house or such as may be acquired in tho collection of debts. Real ertate acquired for debts must be disposed of within flye years. The total liability for money borrowed of any person. corporation or firm (including the members of the firm) to any banking associat.ion shall at no time exceed 15 per cent of the capital and sw·plus (not including undivided profits) of such bank and shall in no event e.-ceed ao per cent of the capital stock actually paid in. Pro,·ided, however, that money borrowed within the meaning of the Act shall not include (1) the discount of bills of exchange drawn in good faith against actually existing values; (2) the discount of commercial or business paper actually owned by tbe person negotiating tho same; (3) the purchase of or loaning money iu exchange for, evidences of indebtedness which shall bo secured by mortgage or trust deed upon productive real estate, the value of which. exclw;ive of buildings, as ascertained by the oath of two disinterested appraisers, i double tho amount of the principal debt secured; and (4J the purchase of, or loaning money in e.·change for, evidences of indebtedne~ secured by a wl'iuen pledge covering live stock, the president, vice-pre, ident or ca.-;hier or such bank or association certifying at the time of ·uch purehase or loan that tbe -value of such live stock is doui.Jle tho principal debt secured; but in no event shall the liabilitie · of any . ucb per>,on, coFporation or firm to such ban.I;: exceed the amount of its capital stock. or 25 per cent of its depo ·its. Directors are made personally liable for any violations of thi. provision to the extent of tho loss occasioned thereby to the bank, its st.ockholders or any other party. • ro loan shall be made to the Pre,.,ident, \ ice-President or any empl oye or the bank Ulltil the loan shall have been approved by t,he Uoard or Directors. '1 be minimum amounts provided for the capital stock of banks are as follows: In cities, towns and villages that l!ave 1101, e:ceeiling five hundred inhabitants, 10,000; bot.wen five hundred and fifteen hundred, 15,000: between 11fteen hundred and five thousand, :!5,000; between five thousand and ten thousand, 50,00U; between ten thousand and fifty thousand, 100,000; tJcrncen tt•n thou at d ant lifty thousand .. 50.000. pruvi ed de~osi ,., hall not o. ·co •d :mo 000; over fifty thousand 100.000. Upon impairment of the eapital stock, the Auditor may require a se. ·sments of stockholder· or a reduction of the capital. If be shall deem the bank is being conduct,ed in an unsafe. fraudulent or illegal manner, be may fl.Id a bill for an injunction, di ·olution and rcech er, but such a bill can be maintained only in the name of the .Auditor. Upon defkieucy of asset , the coun ma:r require, in such :i suit, that the receiver proceed against the stockholders on their stock lia1Jility. There are provisions for consolidation, change of 11ame and voluntary dissolution. AU banking a ociations heretofore organizi:d by general or pecial Act, are made subject to all the provisions or tnis Act. After January 1. H.121, no natural per:.on or natural persons, firm or partnership shall transact the busine:s:s of bankiug or the business of receiving money upon deposit. or :hall use tho word "ilanK" or "Banher" in connection i u said btL-;mc.· ; pro, it1td, that nothing herein contained shall be constru ·d to JJrobioit ba11t,s in · rµurated under the law of 1, is ·tato or of the united tate. from appointing natwal persons as agents to receive deposit' of aviug:s in am! tnrough the pubtic schools. Any person viulating the ct b guilll of a misdemeanor and is subject to a tine not exceeding l ,OUO, or imprisonment in the penitentiary for one year. A banker is liable to Hne and iJ.nprisonruent if he recehes a deposit after Le lmow:s the bauk bas become insolvent and thereby the depositor suffers lo.s. One drnwing aud delh ering a check, draft, or order on a bank with intent to defraud, and knowing at the time that, he bad nut sullicient fw1ds in or credit with the bank to pay the c11eck, draft or order in full is guilty or a misdemeanor and is subject to a 11nc ot · 1,ouo or impri:sonment for oue year, or both. llills of Lading. '1 be niform Bills of Lading Law is in force in Illinoi ·. IUue Sky Law went into effect Juno 10, 1919, governing the sale ot stock:s of corporatiou.s. Securities are di\ idetl into four classes. Certain securities can L,o sold ouly after a lull tatemunt Ill regard tl1ereto ba:s been flied "ith the ~ccretary of tat• amJ a JJermit i:ssued 'J he law i-; :stringent. ' Copie:s of the law and forms for 1.1.-.e thc.i·euncter cau lie obtained by writiug to the ollice of the ocrelary of . tat~: pringfleld, Ill. 'l lte act is entiLled "1 he lllmo e~uritie Law. C hattcl l\lort •a •c • ~ 'o mortgage, trust dccrl, or other i;onve~ance or personal proµerty ha, in!:I" tl!e effect of a mortga u or lieu, 1s valid against third person:s, u11l · po..,,_-,es;:.ion b•3 deli,er •d to, a:nd remain \\lllt the gramce; or tho iu ·trume11t 1,rovidc;; for tuu po. sess!Ofl or the vroperly to remain witl1 the grautvr, and the inst1·u111011t tS ad,110\\leuged anti rei;ordcd. 'J. he in.-.trumcut rum t be acl no 1!edged, in countle:, havin • a po1,1ulation of le: than t, o h nc.1red t 1ou ·and, before a JlLs;tice uf tbu poa,·e, police magbtrat.o. a cler or ueputy clerk of a municipal court, , r county jud"e ot the ·ount,l, in w.t.111.: 1 tile morligagor re i< e.s; in counties bavlu, a population of 200,u O. or more. belore a ju tie oft 1e peace of the to\\n r precinct, or if there~'-: nalo jw ti ·c or tue _pea ·e, telure tho clerk or deput:i, cl r.K of the mu111c1p. court, in the dt:strict re the morL.,,a •or re i e . lf the mortgago_r i8 a nou-re iuent of u,c ate. Lho mongage rnay l)e ac llO\\ lecti;ou oelodre auy olJJcer authorized by la · to uu,.e ac1<n01\ledgmen of dee. s. .Attcr ackllO\ le mcnt the instrument mu,-t be tiled tor rucord v1th the re ·vrder or tlio county in \\ bicb the mortga •or reside ,, hen tll8 i11strument is o. ccuted, or. in c; e of a uon-r~c ent ol tl.le taw, t_ben iu the county 1, here the property b • ituated. '!'he mortga •e 1s a valiu lien tuitil t e m, tUritY of rho entire cbt or ot1li,,at1011, not e. cectlin • tJu•ce y •ar:, from i.ho ft!Jng of tho mortha •e, allll uiaY be reno,1 t'< for one .i, oar. note _ cured b.i, c mttcl mort •a'~ tnusli state 011 its fa ·e that 1t i o ecuro , otllen,J.S • u10 mort a..,o 1:s vol~mortgagt: may Ger I a, •u on tl.le mar Jiu oft.lie record. or IJY a rele3l?e deod. A mort •ag on a. Lock of ~ood.s permlttm mort.;agor to retai.d po. c sion ami ouy and :sell i void as to creditor,-. Cornmercil l l'a1>c1·. l~ce 1 ·e otiaule Instrument .) Uonditional , ate and like ugreemenL-., inclu< iw•. generallY, lease , re en ing title or lien in eller who part \\_ith po .. lon, 3 not ~a.lid in this 'tate a tu purcilas rs or part1 a· 1U1r111g 11 e while the property remains iu the po e, ion of tue vo.ndee or Iessee - d (.;011,.ii.'Dn1cnt ·. . gruomeut to sell on co11 ·i~1uuc11t are va11 • If a couunission merchant, or party ·elling- on comm! 1 11, convertS the property consi!{ued. or after demancl faib to ac ount. tor the proceed.·, lie is subject, to flue ancl impci:onruent, and Iiat,lu fo: double the value of the property o conve1·ted.  !:  amc  cast  flea the Pai on by the lzed Stat  st  terr n1 ex.c hold St of ti then heh F(  Pecu  sure1 befo1  Wgi  In tt not 1 Pora·  copy  sta.te the .t  had.  BANKING AND COMMERCIAL LAWS-ILLINOIS  re,  uo pal !' is  ore Lis, itb t.lle  en  Conveyances. (See Deeds.) Corporations. Corporations, except for charitable, educational, penal, and reformatory purposes, may be organized only under general laws. (Const. art. XI, 1.) In all elections of directors every stockholder has the ri~ht to vote, in person or by proxy, for the number of shares of stock owned by him, or may cumulate his votes. (Const. art. XI, 13.) A new act relating to corporations for profit, became in force July 1. 1919. Corporations may be created under tne act for any lawful purpose, except for banking, insurance, real estate , brokerage, the operation of railroads, or the business of loaning money; and may be organized also, for any one of the following purposes: ( 1) ' ' building corporations," for acquiring, owning, erecting, leasing, or operating only one building and the site therefor of not more than 80,000 square feet of land; (2) ''agency and loan corporations," for the purpose of acting as agents for others in the purchase, sale, renting, and management of real estate and leasehold interests in the operation of an insurance agency business, in the negotiation of loans on real estate and leasehold interests, of lending money on bonds or notes secured by mortgages or trust deeds on real estate or leaseholds or on tlle mortgage bonds of industrial or railroad companies or of any public service corporation or on any State, municipal, or quasi-municipal bonds, or for the purpose of buying, selling. pledging, mortgaging, or otherwise dealing in any of such securities; (3) "real estate improvement coeporatiom1," for the purpose of owning land, erecting residences thereon, and selling or lea':.ing such land or residence , which land so owned shall be situated only in the county in which the corPoration 's principal office is located. Corporations under the act have the following rights, powers, and Privileges: (1) succession; (2) to sue and be sued in its corporate name; (3) common seal; (4) capital stock, with or without a par value, and divided into classes (under a ruling of the Secretary of State any class of stockholders by a provision in the certificate of incorporation may be deprived of the right to vote); (5) to acquire, and to own, Possess, and enjoy so much real and personal property a,; may be necess.ry for the transaction of the business of such corporation, and to lease, mortgage, pledge, sell, convey, or transfe!' the i;arue; (6) to ~wn, purchase, or otherwise acquire, whether in exchange for the issuance of its own stock, bonds, or other obligation or otherwise, and to hold, vote, pledge, or dispose of the stock.<:, bon<ls, and other evidences of indebtedness of any corporation. domestic or foreign; (7) to borrow money at such rate of interest as the corporation may determine without regard to or restrictions unuf'r any usury law of this State and to mo!'tgage or plfldge its property, both real and personal, to secure the payment thereof: (8) to elect officers, appoint agents. define their duties and rtx their compensations; (9) to lease, ex~ihange, or sell all of the corporate assets with the consent of twothirds of all of the outstanding capital stock of the corporat10n at any annual meeting or any special meeting called for that purpose; (10) to make by-laws not inconsistent with the laws of this State for the administration of the business and interests of such corporation: (11) to conduct business in this State. other States. the District of Oo~urnbia, the Territories, possessions, and dependencies of the U n1tecl States and in foreign countries, and to have one or more otnces out of this State, and to hold, purchase, mortgage, and convey real and personal property outside of this State necessary and requisite to carry out the object of the corporation: (12) in time of war to transact any lawful business in aid of the United States in the prosecution of war to make donations to associations and organizations aiding in war 'activities, and to loan money to the tate or Federal Government for war purposes; (13) to cease doing business and to surrender its charter; (14.) to have and exercise all the pow~rs necessary and convenient to cart·y into effect the purpose for which . such corporation is fot•med. The right of a corporation to hold the stocks of other corporat10ns is restricted to cases where the effect thereof shall not be in restraint of tra;de, to lessen competition, nor 1:0 create ~ monopoly. No ~orporation, except as specifically provided herem, shall be orp;amzed Under this act for the purpose of acquiring or <?wning real e;o;;tate. ~o Corporation under the act shall, except as provided. by any i!Dplicat1rm or 1:onstruction, be deemed to possess the power. of carrymg on the busm~ss of discounting hills, notes, or ot!Jer evidene:es of debt,. or r<:ceivmg deposits of money, or foreign coms, or bul:rng and sellmg bills of exchange, or issuing bills, notes, or other endences of debt for circulation as money; but corporations created, ~r to be .created Undei: the provisions of the art, to buy, sell, or otherwise deal m notes (~o~ mclucling the discounting of notes), open accounts, and other snnilar evirlences of debt (not including biJls of excban~e), shall not be considered within this prohibition . . No corp~rat10n sha!l be created under this act to deal in commercial paper m the exercise of the functions of bank discount. 'I'he board of directors must consist of at least three persons. wb_o Shall be stockholders and one of whom must be a resident of ~his State. Tho directors oxet·cise the corporate powers of the corporation. 'rhey rnay hold meetings and transact business outside of this St11:te. They elect omcers adopt by-laws and may appomt an executive comrnittee. The name of a corporation must indica1<; tl:at it is _a If the name of a person or copartnersl11p 1s used. 1t corporation "incorpor~ted:" ~ 1 1:tst_ be followed by the word "corporation.'_' limited," or their abbreviations. The corporation must mamtam an olli~·e or pla<'e of business in this State, with a reside1_1t officer or agent in charge. The secretary of State must be_ kept mforrned of any change of address of such office or place Qf busmess. Ea.ch share of stock when i.·sued shall have stamped ther~on tJ:ie amount actually received by the corporatiou fo_r - uch st.ocl~,. either 1~ cash, property, ::;e1·vices rendered, or expenses m,·m-red. l~ach certificate must contain a statement of t.be rights of the hold~r, whether thE? stock has been fully paid, and if not what per cont of 1t ~as been Paid. ·when additional payments are made they mu.·t be stamped on the certificate. Shares without par value :shall be repre ·ented by certiflcates which shall st,ate the number of shares,. th~ name of ~he holder and the total number of shares the corporat10u 1_s ~uthO\'I~ed. to issue. All stockholders· meetings must he held \~·1tl11n tins 8 tate. Directors are elected at the reg-ular annual rncetmg of the To stock can be voted which shall haYe tieen transstockholdot·s. ferre<_I on the books of the corporation within ten day:s ynor to S)JCh ll1eetmg. No proxy is good after eleven months from 1t · e e ·ui10n, except where the stock is pledged as security for a <lebt to the pe1son . holding the pro.·y. Sto<'kholders are liable to creditors. after exbau. t10n or the a<;sets or tho corporal ion. only to the amount _uupai<l_ on ~ho_ -.hares held hy them. An assignee of unpaid stock, with notwe, 1s !table a~ tl~oua;h he had been the original subscriber; but only t.he real owner 1 • liable. l<'oreign Corporatlom,1. Each foreign corporation organized for Pecuniary prollt (except. banking, insurance. buildi_ng a_nd loan, and surety companies), not now licensed to _do 1?usiness 111 th~s St:3:te,,sball before it transacts any business or mamtams an oflice m tWs ~tate, proc_ure_a certificate of authority therefor f:om ~be Secr~t.ary of S_tate. ~o iore1gn corporation shall enga~e OT'. contrnue man~• kind of h1;1•m1e~s in this State. th,~ transaction of which by dome.·tJ corporat1011s 1s not PermiUcd by the laws of this State. Eaeh licensed foreign corporation shall keep on file in the office of the ecretary of , tate a copy of its charter and all amendments thereto; and al.'o a verified shtaternent giving the location of its principal office in this State and t e name and address of an agent on whom service of process may be o foreign corporation doing business in this State without a had.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1879  license shall be permitted to maintain any suit at law or in equity in any of the courts in this State upon any demand, whether arising out of contract or tort; and all such corporations shall be liable by reason thereof to a penalty therefor of not less than $250 nor more than $1,000, to be recovered in any court of competent jurisdiction, in a civil action to be begun and prosecuted by the Attorney-General. Each corporation including railroads, domestic and foreign, other than homestead associations, building and loan associations, banks, religious corporations, insurance companies, and corporations not for pecuniary profit shall make a report in writing to the Secretary of State between February 1 and l'.'.Iarch 1 of each year for the calendar year ending December 31, preceding, on forms to be prescribed and furnished by the Secretary of State. Such report shall give the address of the corporation, officers and directors in this State by street and number; and also shall disclose such facts as necessary to enable the Secretary of State to asceetain the proportion of its capital stock represented by business transacted and tangible property located in this State and such other information as may be necessary or appropriate in order to assess the annual license fee or franchise tax. Fees and Taxes. To the Secretary of State on filing a cerWlcate of incorporation one-twentieth of 1 per cent upon the amount of authorized capital stock, but in no event less t.han $20. If the stock has no par value, for the purpose of fixing the fee the shares are con sidered as having a par value of $100 each. A like fee upon any subsequent increase. Upon the filing of a certificate of amendment additional fee of $20. A foreign corporation, other than an insurance company or building and loan company, upon o btaining a certificate to do business in Illinois pays the same fees upon the amount of its capital i;tock repeesented by business transacted and tangible property in Illinois as similar domestic corporations pay upon incorporation. If the stock of a. foreign corporation has no par value, for the purpose of fixing fees and taxes the shares are considered to have a par value of $100 each. .t\ domestic corporation or a foreign corporation  1~  0  1  i~!~~~i·et!~~ ~~~te~r! re~~i~~tiis~~/~~~~:1 C:e~~i~t.i:~~t~~~ of State an annual license fee or franchise tax amounting to 5 cents on each $100 of tile proport.ion of its authorized capital stock represented by business transacted and property located in this State, but in no event shall any such license fee or franchise tax be less than $10 for any one year. If it appears from the annual report that the corporation has no tangible property located in this State, and is transacting no business in this State, the following franchise tax must be paid annually: on capital stock of $50,000 or less, $10; between $50,000 and $200,000, $15; between $200,000 and $500,000. $20; between $500,000 and $1,000,000, $fi0; between $1,000,000 and $10,000,000, $200; over $10,000 ,000, $1,000; Rtoclc of no par value being considered to have a par value of $100 per share. The franchise tax is payable on July 1 for the succeeding t~velve n::ionths. _Tf a corporation fails to make an annual report withm the time reqmred. the Secretary of State assesses a franchise tax on the best available informalion, adding a penalty of 10 per cent on the amount of such assessment. In case a corporation fails to file an annual report or pay its franchise tax as required by tlrn act, the Att,orney-General may take proceedings to forfeit its charter. No. corporation reQuired to pay a franchise tax or fee under the laws of tlus State shall transact maintain any a_ction at law o_r suit in any busine:,;s in this State equity, unless such corporation shall have paid such franchise ta~ or such fees when the same become due and payable. Corporat10ns are taxed on their tangible property, real and personal, within the State, and also upon the fair cash value of their capital. stock,_including franchii;es, over and above the assessed value of their tangible property. Shares of stock of domestic corporations, whose ta_ngible property or capital stock is taxed, are not subject to taxation m the hands of owners. A corporation organized for the purpose of accepting and executing trusts may be appointed assignee or trustee by deed, and executor, guardian, or trust.ee by will, and any court may appoint such c_ompany receiver, assignee, guardian, conservator, executor, admmistrator or other trustee, provided such appointment apply to the estate' only and not to the person. Such corporation is ~o~ gener!'tllY required to give bond for the performance of a trust. but it 1s reqmred to deposit with the Auditor of Public Accounts $200,000 in bonds of the llnited States, or in municipal bonds of this Stat.e_. or real es~ate mortgages and to make a statement, and file reports with the Auditor annually. ' Tbere are special acts also .a.~ to the orga!11zation of corporations not for pecuniary profit, religious. corporat10ns, loan associations, co-operative associ~tions for prory.t, ins~ra~ce, etc. CorporaLions, foreign or domestic, under certam restnct10ns, may do a surety business. Courts. Supreme court (seven j!J.dges); four 3:ppe~late cour~ (intermediate colU't of appeals, three Judges each); circmt courts (m Cook County also superior court of equal jurisdiction); criminal courts; count,y courts (which also exer<·ise prob3:te juris~ict,ion. in counties having less than 70,000); probate courts (lll counties havmg over 70,000); municipal courts (Chica~o has a municipal court with a chief justice and thirty assaciate judges and special practice); and jw,;tice courts. Jla.ys of Grace are abolished. (See Negotiable Instruments.) Deeds conveying land should be signed, sealed, and acknowledged by grantor. Scrawl seal is su!Iicient. No subsc~ibing_ witnesses are required. Statutory forms of warranty and qu1t claun deeds and mortgages are provided. The words employed are (ll conveys and warmnts, (2) conveys and quit claims, (:3J mortqages an_d warrants. No deed releases the right of homestead unless 1t coota111s a clause substantially aH follows: "Hereby releasing and waiving all rights under and bv virtue of the homestead exempt.ion laws of the Rtate or Illinois." ln which case the certiflcat.e of acknowledgment, should contain the dause, "including the relea'rn and waiver of tbe ri~bt of homest.ead." To release dower the htL<;band or wife must join ln the conveyance. except in the case of a mortg-age for purchase money; othen,ise the hni-hand and wife may convey as unmarried. Deeds and other instrument:,; affecting real est.at,e should be recorded in the county where tho real e:,;tate is situated: until so recorded they are void as to creditors and subsequent purehasers without notice. Depositions. In chancery ca-,es if the witness resides in the county, depositions may be taken on fl ·e days' notice; otherwise on ten days' notice and one clay in addition for every fifty miles. At la\\, on like t-en days' notice, ,vhere the wi ness resides in another county or is about to depart from the state. ,vhere the witness resirles out of the c·ounty or state, the deposition may be ta.ken before a notary public or commissioner on a commission is,;ued on ten days• notice·, either on written or oral interrog-atories; one day additional notice of the time and place of taking the deposition being required for each one hnnllred mile . If a wit.ness subpoenaed to give his deposition before a notary public or other officer under cornmi:slon issueLi by a court of this State. or of any other State or country, declines to appear or testify he may be cited before the circuit court of the county where he reside. and be compelled to appear, testify, and produce documents. Des<·ent and nistribution. 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 d~cendants 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  or  1   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1880  BANKING AND COMMERCIAL LAWS-ILLINOIS  to th~ parents, brothers, _an~ '.'isters an_d their descendants equally, action of their clients, after the service of notice upon the adverse allowmg to. t,he parents, 1f hvmg, a child's part, or the survivor a party. Cont_ractors and sub-contractors, including architects, :superdoubl_e portion; anc~ if there is no parent living, then to the brot,hers mten~ents. _tnnekeepers, etc., have liens on any real estate, interest and s1stlrs a.nd tbe1r descendants. 3. \Yhen tl1ere is a widow or surtherem. or 1mproveme_nt ther1:on, for all kind · of labor and services vh ing husband, and no child or descendant of a child, one half of perfornJed, and matcnals furmsbed for the erection of any building, the real estate and the whole of the personal estate goes to the widow or the improv~m~nt of an~ real estate, or thing connected therewith. or surviving_husbaud absolutely, and the other half of the 1·eal estate A person furmshing material, apparatus, fixtures, maclliner:v or labor desce_nd. as m other cases where there are no children or descendant to a contractor for a publir: improvement. has a lion upon tile money, of ch_1ldren. 4. \Yhen there is a widow or suniving bu band. and also b~nds or warrants due or to become due under such contract: Proa child or descendants of a child, the widow or surviYing husband vuled, the claimant erves upon the municipality a notice of his claim receives one-third of the personal estate ab olutely (see Dower and before payll'!ent be made to such contractor; but the lien attaches only Curtesy). 5. If there is no child or descendant of a child and no to the port10ns of the money. bonds, or warrant:, against which no parent, br?ther, or siste_r,_ or descendant of parent, brother, or sister: ;g~~~e~i;t~!~f~t'idence of indebtedness b~ been issued and deliYered and no ,udow or survivmg husband, the estate descends in equal parts to ~he next of kin in e_qual degree (computing by the Civil Law), Limitatio~s. In personal actions as follow : Libel and slander there bemg no representat10n among collaterals, except with descenone year; act10ns for damages for injury to persons, two years (where d~ts of IJrothers and sisters, and no di.·tinction being made between re. ults, one year after death); for false imprisonment, malicious death kindred of the whole and the half blood. CL In case of a \\idow or pr_o -~cut10n. for a. statutory penalty, for abduction, 'eduction, or survivi1_1g_ husband, and no kindred, the whole estate goes to the widow C(?nversat10n, two years; actions on unwritten contracts crunmal or survrvmg husband. ~xpress or implied, on award: of arbitration, to recover damages for ~ower. A surviving husband has dower (i. e., life interest. in a lDJury to property real or personal, to recover pos. e.·,-;ion of personal ~bird. part of a_ll lands _whereof deceased was seized of an e. tate of prop~r~y, or: damages for tJ?e detention of conversion thereof, and mhentance durmg marnage) the same as a widow. Equitable estates, all civil acti?US not otherwise provided for, five years; actions on and land contracted for before death, are subject to dower. Dower bonds, prorrus ory no~e , bills of exchange, wi-itten leases, written may_ b_e barred by jointure assented to; by devise, unle s widow or contracts, or other evidence of indebtedness in writing, ten years· surviving husband renounces benefit of devi. e within one year from bu~ any payme_nt or new promise to pay in writine: renews the right of date_ of letters of administra~ion; by d_ivorce a· to the party in act10n OJ?. ucb m. trume;nt_ for ten years from the time of such payment fault, ~nd by abandonment coupled with adultery. Tbere is no rf~~~i:n c:u~t°~r°r!~~l~~~f~~e~~its~ court Of record, twenty years; dower m land as against a purchase-money lien. The husband or ~e may ren'?unce any devise under the will of the other and take Pai:t~ership. There are statutory provisions as to the L~ted if there be children, dower and one-third of personal estate or if no ~~=-~~"ino~n\ii~~;~d partnerships, but such partnerships are not children, one-half of both real and personal estate absolutely'. ' Executions. (See Judgments and Executions.) ~tarried lVom.en . . A mar~ied woman may sue. be sued, or defend, as if she were unmar:rnd._ ,, hen the husband de erts, the wife may Executors and Administrators. (See Administration.) pro ecute or defend m bis name. The hu band has the ame right Exemptions. There is a homestead exemption to the extent of The husband is not liable for t e UJ?OI~ the desertion _of the wife. $1000. _ It may be extinguished by conveyance joined in by hu band :wife s torts_ exceT?t m ca ~s where he would be jointly re ponsible and wife properly_ acknowledged. ( ee Deeds.) The following if the marnage did not exist. The husband or wife is not liable for p~rsonal property 1s exempt: 1. The necessary wearing apparel the debt of the other incurred before marriage_ or for the separate Bibles, school books, and family pictures. 2. One hundred dollars debts of each after marriage, except that the husband and wife are worth of other property, to be selected by the debtor, and in addition, jointly_ and severally_ liable f9f the. expenses of the family and the when the debtor is the head of a family and resides with the same education of their children. Ihe '\\ife may contract as if unmarried $_300 worth of other l?roperty, to be selected by the debtor. Exemp~ except that she can not carry on a partner hip busine s without the t1ons can not be clauned out of partnership property. The wages consent of ~er husban9-. u~less he has abandoned her, or is insane, of a wage earner being the head of a family and residing with the or C?nfined m the pem~entiary. She may recei\ e and use her own same are exempt from garnishment to the amount of 15 per week. e~~wgs free from the mterfer~nce of tlle husband or bis creditors. writing: in be should contracts following The of. Frauds, Statute either the husband nor the wife can recover compen. ation for any I. A promise of an executor or administrator to an ·wer anv debt or !abor performed or seryices rendered for the other. 'be may own damages out of his own estate. 2. A promise to answer for ·the debt, her own right real and per onal property obtained by descent, i~ default, or miscarriage of another. 3. An agreement made in congift, or purchase, and manage, ·ell. and convey it to the ame extent sideration of marriage. 4. An agreement not to be performed within the husband can property belonging to him: but no transfer of that intere.,;t one year. 5. Any contract for the ale of lands, or any per,onal property between the husband and wife lh'ing together is therein for a longer term than one year. 6. Express trusts relating good as against third persons, unless ack,10wledged and recorded as to real e tate. "A contract to ell or a ale of any 1?ood or cho. es chattel mortgao-es are re<iuired to be. A married woman who without in action of the value of five hundred dollars or upwards is not enher fault lives apart from her husband may maintain an action for forcible by action, unle the buyer accepts part of t.hc; ~oods or choses reasonable support and maintenance. The wife may insure ber in action so contracted to be sold or sold, and actually receiyes the he may husband's life.. he m~y become urety for the husband. same, or gives something in earne t to bind the contract. or in part; ~x:jirw:. will, if over eighteen years of age, at which age be attains the of writing in payment, or unless some note or memorandum contract or sale be signed by the party to be charged or bis agent in Mortgages. Real estate mortgages should be executed and acthat behalf. T.he act applies to sales for future delivery and to goods knowled_ged the same ru deeds. The wife must join to bar dower, to be obtained or manufactured by the seller, but, not to sale of goods except m mortgages for purcha. ·c-money. Trust deeds are often to be manufactured on special order if they be not suitable for sale prefe~red to ~ortgage · becam,:e_ of the facility in the transfer of the to others in the usual course of bu ine s." security and, m ca 'e of non-resident creditors, in obtaining a release Garnishment. The funds or property of a debtor in the posses.,;ion the tru tee generally being a re:ident. Real estate mortgages may of a third party may be garnished in an attachment suit, or in a separate be releas d upon the record or hy relea e deed. ::\lort"ages and proceeding after judgment has been obtained against the pri11cipal tr~st_ deeds must be foreclosed by scire facias or by regular foreclosure debtor. (See Attachments.) smt m a ~ourt of chancery. In extreme case·. wh re the mortgaged Holiday , Legal. January 1st, February 12th, February 22d, property 1s clearly of fes value than the debt ecured and the mortgagor is insolvent, there may be a strict foreclo,ure which cut o:tr the May 30th. July 4th, October 12th, December 25tll, first l\Ionday in right of redemption, in "hich case the mortgagee take· the property September (Labor Day), Thanksghing Day, and Tue.days next after the first Mondays in November in even years (election days); al ·o in discharge of the debt. In other cams. after decree of foreclosure, the of!lcer designated to execute the decree delivers a c·ertillcate there every Saturday from 12 o'clock noon to 12 o'clock midnight. Where of to the creditor and files a copy thereof for record. The debtor ma.y holidays fall on Sunday, the day following. redeem within twel...-e months, or if no judinnent creditor redeems, Husband and Wife. (See l\Iarried 'Women.) ~hen within f}fteen months; at the end of which time the real estate lntere t. Extreme contract rate. 7 per cent; legal rate. 5 per cent. IS old ~o sat1Sfy the decree and costs, with six per cen~ interest. The !merest is allowed at the legal rate on money after they become duo holder m due cour:se of a note secured by a mortgage or trust deed on on any bond, bill, promissory note, or other instrument in writing; real estate in Illinoi stands in no better position, so far as the enforceon money loaned or advanced for the use of another; on money due ment of hi security L· concerned, than the payee or original holder; on the settlement of an account, from the date of ascertaining the but this doctrine doe· not apply to corporate bond. payable to bearer. withretained and another, of use the to recohed balance; on money e~otia1,le lnstru~·e~otiahle In..,trurnents. The ·· Tuirorm out t,he owner's knowledge; and on money withheld by an unreasonn cnts La\\" is in fort· in lllinoi.. a to all comnwreial paper <'.X(•cuted able and vexatious delay of payment. Judgment· or decrees draw J. 11 l'romis ·orY modification followiup; th· \\ith l!l07, 1. .July aftt•r interest at ;; per cent. Penalty for contracting for more than 7 per ·ot ·, Bonds, Due Bills, and other in trum •nt in "ritin". "herctJY cent is the loss of the entiro interest. and only the principal sum can of personal artil'i1· or •. mou of um any. pay to es. agr or promises one this in made, be recover d. A written contract. ·where\ er payable 1>ropcrty, or any sum of mom•y in per.·01L"tl prop rt), <)I' ackno\\leclges State between citizens of this State and of a foreign State (or secured a.nY stun of money or artic_le of per,·onal property to be ctue, are negoby a morwage on lands in this State) is controlled by the law of thi. tia.ble. Except a. to Pron11:sory .. ote.· payable in money due diligence tate as to the rate of intere.~t, and the penalty for usury. Usu1·y must be used by the holder ai?;ain. ·t the maker. if be be a r •ident must Le specially pleaded. But corporations cannot claim a forsolvent, hy suit at fi1•st t rm of ourt after matu1·ity. in order to and feiture of legal interest on account of usury. In all computations hold the endorser. 2. ccommodation paper ma.y IJe i:sued after of time, and of inter st and discounts, a month is considered to mean if such wa · the intention of the accommodnting party. maturity, a calendar month. and a year twelve calendar nont.b . and a day 3. The addition of word of a . hnm1ent or ~uaranty to a blank indor. ethe thirtieth 1rnrt of a month. A foreign corporation is subject, to not affect the .·ignature as an indor:-ement unless othen,ise does ment !::Hate. this of citizen a the same penalties for usury as expressly stated. -1. The defense,:, of fraud ant! <'ircumveniion in Judgments and 1:xecutions. A judgment is a lien on real the execution of ne::wtiable paper. or that the consideration arose estate ·ituated in the eounty where the jwl"ment is rendered, for out of a gambling transaction prohibited by . octions 130 131 and seven years from its date. If an execution is not i.·.·ued on a judgment 13G of our Criminal <. ode may be a.<. ·erted ru against a hoider in due within one year the judgment cea ·es to be a lien. A transcript of a cours . 5. The fact that a depositor make his not paYable at a judgment in anotl er county may he flied and thereupon become.· a bank does not authorize the bank to pay it ou of his rund, on deposit. lien upon real estate of tl,e def ndant in the county where filed, and U. An alteration of an in trument avoid· it c,nly , hen it is material or execution may issue thereunder. ., n e ec·ution hccomes a lien on fra1;1dulent, a_nd made by the hol~ci:. 7. A promi in writing to accept per onal property from the time it i · delivered to the ofllcer to be a bill made either before or after It 1s drawn is deemed an actual acceptexecuted. All goods and cl'lattels, including money and tock in a . ·ection a!1ce as to the l?er,,on rT C'eh·_ing the bill on the faith thereof. corporation, may be levied on. Per_-onal property may be .·old under 1.37 of t,\1e Umform i egouahle In. trumcut · Law. providing that the execution on ten days' notice. A forthcoming houd ma:v be gh en destruct10!) by the dra we of a bill of e. ·change left with bim for acceptby the defendant t,o the omcer. A third party elaiming the property ance, or lus refusal to return tne samo ,,ithin t,·cntv-four hour· after levied on may have a trial as to the right of property in the county delivery to him or within such further period a· ·the holder might court. Judgments may be confessed by a debtor 01· his authorized 1 rH~~i~.,~~t_ld be deemed an ac ·eptance of the bill, is omitted frorn tbe attorney without process in term time or , acaiion. Liens. A landlord ha a lien for rent upon crop growing on the nifor!D Li!!{e~r1r:~~"r::;Jph~\c~n~~~ry~ }:;~~n1~'4:Win!i;;~ and the demised premises. Hotel, inn. and boarding-house keepers have a lien upon baggage and other valuables of e;uests. Stable-keepers have Probate Law. (, ee .\dministration of Estate:·.) a lien upon horses, carriages, and harncs · for the keeping thereof. Re<·ording Act. . In countie having a population or less thall Garaae keepers are entitled to liens on automnbiles. part · and acc~·60,000, the clerk of the circuit eourt i. ox officio the r>cordcr. ID sories, for keeping, repairing, materials furni-;hed thereto, and the countie · a "record •r of de •d " i elected. As to nhat instruother expPnses bestowed thereon at the request of the owner. or the person ments must be 1·ecorded .. ee resp ctiYe titlc:s. having the possession thereof. Agisters and persons keeping-, yarding, T,!J.e action lie· for per onal property wrongfully deJ?:cple\in. and feeding domestic animals bani a lien therefor. All persons furnish~amed. rbe act1011 may be brought in any county wher the propertY ing supplies, or doing work for any railroad organized under the laws Before 1. , or wh r.e any of the d fendants re. idt:l or may he found. of this State, necessary for the construction, maintenance, operation, the execution of the writ, the plaintitr, or om one in his behalf, or repair of tho road, have a lien therefor on all the property of tbe roust give the officer a hond with sufficient ecurity (a real estate company, which is good as against mortgage and other liens acquired owner of the county is generally required) in double the value of tbe after the commencement of the delivery of supplie.. or the doing of property. the work. Attorneys have liens on all demands, claims, and causes of  gf  1  i  BANKING AND COMMERCIAL LAWS-INDIANA  1881  Sales. The Uniform ales Act has been adooted in Illinois. and if upon claim of non-resident creditor. within two years of the settlement of the estate. Sales ln Bulk. Sales of the major part or ~11 of a stock in trade, chattels or flxtw·es not in the ordinary course of busines , are frauduAffidavits may be taken before any omcer qualifie<l to take acknowledgments (see al)ove). Date of expiration of officer's commission lent and void as to directors unless the buyer obtains from the seller must be cert iflecl l>Y the oflwc>r himself. an affidavit giving a list of his creditors with addresses and amounts due each, and the buyer, five days before payment, gives notice to Aliens. Resident aliens w.11O have declared their intention to each creditor personally or by mail of the contemplated purchase. become citizens, may acquire, hold, and enjoy real estate. and may devise, mortgage, or otherwise encumber the same, in like convey, Taxes. Al_l real and persona:! property in this State, including manner and with the same effect as ciLizens of this State. Aliens, moneys, credits, bonds, stocks, mvestments, bare of stock in corwhether resident or not, may own real estate not exceeding 320 a<-Tes porati9ns (see Corporations), and of banks doing business in thi. tate. lands in excess of that amount they must convoy within five years or 1s subJect to taxation. Real and personal property is listed with the suffer escheat as to such exce . County Assessor and asses ed between April 1. t and June 1st as of Arrest for Debt. Defendant in a civil action may be arrested and ensuing the April 1st. The taxes are payable on or before ~ lay 1st of held to bail in the amount claimed, at any time before judgment, or year; after which time penalties arc added. There i. an Inheritance affidavit that he is about to leave the State, takinl? with him property TaX; Law, the rates varying accot·ding to the relationship of the heir, subject to execution, with intent to delay or defraud the plaintiff dev1s_ee, or legatee, a!1d the amo~nt of the legacie~, ranging from 1 per Bond is required of plaintiff. cent m the case_s of widow and children, as to legacies exceeding Sl0,000 Assignments and Insolvency. Any debtor may make a general and not exceedmg $50,000, to 15 per cent on large amounts bequeathed assignment of all property in trust for benefit of all bona fl.de creditors to persons not related to the deceased exceeding s.noo. trust is administered under the direction of the county court. This Warehouse Receipts. The Uniform Warehouse Receipt Law Dividends are allowed on all claims allowed by the trustee or court. is in force in Illinois. Debtor is not discharged from his liabilities. Wills. Every male over twenty-one, and female over eighteen Attach1nent may issue against the property of a non-resident or is competent to make a will. It must be signed by the testator or foreign corporation, and against any who may have disposed of, or be by some person in bis presence and by his direction, and attested in about to dispose of, property, to cheat, hinder or delay creditors, or his presence at his request by at least two witnesses. The witnesses again t a creditor who conceals himself so that summons can n0t be should be disinterested. A de;-ise to a witness is void unle s the will served upon him. An affidavit is 1·equircd, and a bond to pay dambe otherwise duly attested by two witnes. es exclw,iYe of such per on. ages if the proceedings be wrongful 01· oppressive. f'reditors who file ·where the subscribing witne. es are dead, secondary e, idence of the under the original attachment, before final judi:rmcnt-, are required execution is admissible. '.rhe will is proved, after notice 1,0 b irs and to furnish a like ailldavit and bond, and all share pro rata in the legatees, in the county (or probate) court, and may be contested, in , proceeds of the attached property. The wages of a resident housechancery, within one year after its probate. Will!· or authenticated holder. not exceeding one month at any one time. are exempt so long as copies, afl'ecting estate within this , tate, duly proved out:,;icle of this debtor remains in such employment. It is a misdemeanor to send State, in accordance with the law of the State where executed arcomclaims out of the State to be collected by attachment, or garnishment, panied with a certificate of the proper officer of that fact, 'may be when creditor. debtor, and person owing for earnings intended ta recorded here. Wills executed and publi" bed out of this State may be reached are all wHbin the jurisdiction of the court of this State. be admitted to probate in any county iu this State where the testator The collection of claims o sent may be enjoined. bad lands or personal property upon like proof a'> if executed and pub'Banks, Private. Act of 1907 (in eil'ect Dec. 1, 1907), regulating Ii hed here. whether or not the will ha! been first probated in another private banking applies to any one w.ho mav use t11e word "hank" state or county. The niform Foreign Probate Act is in force in bi business. Capital must be at least 10:000. not more than onein Illinois. All or.iginals wills, after being filed, must remain in the office third of which may be invested in the bank building. All real estate of the county (or probate) court. Children may be di;;inberited. must he held in name of bank. Bank cannot, in v~~st in real estate except in realizing on doubtful claim. Statement must be flied 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 or omcers must be posted in hank. Two reports or re ources and liabilitic · are called for each year bv auditor and pubJi .hed in local newsnaper. Examination · of ba11k made at least annually by auditor. - tatement of property held in trust by bank must be flied in county recorder's office. Depositors have lien on asset. . Jurisdiction over all persons interested is obtained by process served on officer in charge. Banks can not commence business SYNOPSIS OF until chartered by State Charter Boa.rel. Banks cannot establish branches without first having obtained a cha:·ter from tho State Charter board. Banks, Savings. Governed by a general . tatute which regulates in minute detail the investments and conduct of business. Savings banks may purcba. e, bold. and convey real estate for the following purposes, and none other: For the location of banJ-ing house; real RELATING TO estate mortiraged to it in good faith for money loaned, 01· upon which it shall have purchased a mortgage; real estate taken upon judgments and decrees on behalf of the bank, or purchased to pl'event loss on claim held by the bank. BANKING AND COMMERCIAL USAGES Ba ks, State. H(•gutatecl by a general hanking la". The state depart nwnt of banking appomts a bauk examiner who shall not be a director or other officer of the bank, and shall have power to make Prepared and Revised by Mc srs. PICKENS, MooREs, DA\'IDSON a thorough examination into all the affairs of tho bank, and, i.J1 doing AND PICKENS, Attorneys at Law, Indianapolis. so, to examine any of the officers and agents thereof on oath. The ( ee Card in Attorneys' List.) examiner reports in detail the condition of the bank from time to time. 'rbe state banks must make not less than five reports each Acknowledgments. All conveyances of real estate, except leases year. verified hy the pre ident, or other managing agent, which for le.·s than three years. must be in "Titing, and acknowleclg d and reports mu t exhibit the resources and liabilities at tho close of bu">irecorded at once, or thoy will not bind third parti s. Wilhin the ness on any past day to be by the auditor specified. The report so State acknowledgments may be taken before a judge or clerk of a required must be published in a new ·paper where the bank is estahcourt of record, justice of the peace, auditor recorder. notary public, or, if there is no newspaper in the place, then in one publi.hed, member of the p;eneral assembly, or mayor of a city, and in other lished nearest t,hereto in the same county or an adjoining county. states and territories before the like officers, or a commi · ·ioner of The auditor may require special reports from any hank, whenever deeds for Indiana. In any foreign country, before a diplomatic or in bis judgment, it , hall be necessary in order to a full knowledge of consular officer of the United St.ates. If such acknowledgment or its condition. Any bank failing to make such report shall be subject Proof is in some other than the English language, or is 1_1ot attested to a penalty of $100 for each day that it delays to make and transmit by such olficial seal, it must be accompanied by the certificate of an the same. All banks are empowered to execute trusts and act as ?fflcer of the United States, to tho efl'ect that it is duly executed acrordtrustees. tng to the laws of such foreign country, and t,bat the officer has legal On eptembcr 30, 1920 all duties, power and authority formerly authority to certify to the proof or acknowledgment and the meaning vested in the auditor of State as to banks of all kinds buidling and :\Tifc must join in of his certificate if made in a foreign language. associations, morL~age guarantee rompanies, rural loan and saving loan deeds and mortgages of hu hand's lands in order to carry her inassociations, will bo lodged in a Banking commis.sioner appointed by 'o separate acknowlchoate one-third interest in husband's lands. and said Commissioner will be at the head of the DepartGovernor the interesti inchoate her convey to ~dgment of wife necPssary in order ment of Banking a separate branch of the 8tate Government. All 111 husband's lands although . he must acknowledge. The certifying laws relating to above named companies remain ill full force and efl'ect. officer _.hould state'the date when his commission expires. -o grace is allowed. Bills of Exchange and Promissory otes. Actions. Tbc distinctions between law and equity are aboli,.hecl. Damages for prote:t on bills upon any person at any plaee out of The statute provides but one form of action. Pleadi.J1p;· are governed this tate, but within the United States, 5 per cent on bills drawn by code. 1.: on-resident plaintills must give bond to .·ccure co ·t ·. upon any person at any place without the nited States, 10 per cent. Administration or Estates. Exe pt in ~Iarion County, which The Tniform. ·cgotiahle Instrument La11 his h1 en in force in Indiana ~n.,;;_ a separate probate court, the circuit court has exclu~he prob?te since IDI:3. (Hee ·egotiable Instrument.-.) JU1·1sdiction. In cases of intestacy letLer~ are _granted m followm,g Blu(' Sky Law ([Cnacted 1921). Whol'Y r offers or a(hcrtis s order. 1. Widow or widower. 2. Next of km. 3. Largc~t- resisecurities for sale must, fllo with the , ccrotar ., or 8latci his afildaYit dent creditor. Letters of administration shall b!:3 granted m the set t_ing forth: addresses of director.~. otncl'r s. all partners, and all county. 1. ,vhere intestate was inhabitant at time of death: 2. ag-ents proposing to sell it securities, aucl the 11atui-e ot' the interest here Wb~re, not, being inhabitant of the State he I~ayes a. ets. of ach. an 1_ntestate, not being an inhabitant, shall die out of _the State, The location of applicant' principal oflice and l)J'indpal ofliec in leavmg assets in seYeral counties, letter· may be granted m any one the state, general haracter of applicant's businl'ss. rlas,-es of property of the counLies in which such assets may be at time of death, and to h d 'alt in and the purpose of proposc1 l is ·ul'. \JI itemi:wd statethe administration first lawfully granted shall exten<:1 to all of the ment of the financial condition with balance shct t of a ·st't · and liabiliestate. Letters cannot issue t-o a married woman w1th?~t her _bu t-ie ·. plan of pro])oscd business, and approximate prke of seeurities b1!,nd's consent in writing. Such consent, makes husband Jomtly !table of sccui-ity itself, copy of publicity matter, stawrncnt of applicants copy d!')eedent a of_ utor exe foreign to given is Preference wife. With income and expenses and fixed chargi:s for past year. amount of com!1°t an inhabiLant of State, if, before letters are gra1Jted ill this tate mi ·sions to bo paid for sale of securities and how. detailed statement 1t appears that proper letters have been granted_ ill an9ther sta~e. of ca ·h. prnpcrty, Sl'n-ices, patents, and good "ill and any other conex_eept 1'1ere be rc.~ident, crcdit01·s. lcp;atoes and b~1r · en!1tled to di. id ration for whiC'h securities haYe he< n or are to b' bisued in paytr1bution who are inhabitants of the State. _ o action . hall be · ment, amount of promotion stock set apart. but decedent: the against claim any for estate an brought iip;ainst Cop_y of artidcs of partner:h~p or incorporation a11cl by-laws, copy t~e holder thereof, whether the claim be due or not, shall filo a sucof all mstruments of tl"ust. certified copy of cha1·tcr and authority to cmct and definite statement thereof in the office of ~he cl~rk of the do business in lncliana and in it,s own state. court, setting forth all credits to wblc!'t tbe es_tate 1s entitled, and Fon'ign investment companies must, file> writ.ten consC'nt to he suocl accompanied bv u10 alliclavits of the cla1mant, hts agent, or attorney, Indian~ f!)l' matters growing out oft ho v_iola( ion of the Blue Hky Law in_ a by d sccur t.hat the claim 'is just and wholly unpaid. Ir claim l?O ~?~t-~>rov1s10ns for scrnce and process on its agent or the Hecretary of h~n. _the lien shall be particularly set forth .. pie cla~m mus~ be filed w1th10_ one year from the not.ice of _the adnnmstrator. app~nntment, .\. slate scc·uritics commissioner is authorized to P\amine into tho or claimant must pay cost. ; and 1f not !lled at least, thirty day affairs of anr concern falling \\ithin the provisions of the law ancl before the final settlement of the estate, it -~all be barred, except suspen~ tl?e hC'C'nse to sell ::;c ·urilies upon a sho,, ing that the eertiflcate that heirs, clevis s and distribntees shall )Je lial~le to the. xtent of bo~cl ·r 1s 11.1solYC>nt. has YJOlat!'d. any provisions of th, law, has been the Property received bv them, to any unpaid creditor who six months gu11tr _of d1,-honesty or fraud, 1s i? bad business rcput , or in unsound Prior to the final settiement was insane, an infant,, or out of the cond1t1on. .\.gent .. must cc·m·c license from state. State,-suit to be brought within one year of removal of di ability,  THE LAWS OF INDIANA   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ,v   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1882  BANKING AND COMMERCIAL LAWS-INDIANA  The law extends to domestic as well a;, foreign investment companie;;, but exempts the following securities: municipal bouds, bonds suJ.,je ·t to regulation by the l'ublic Hen·ice Commission, bonds sold at judicial or probate sales, bonds and notes secun·cl by first mortgage on real estate "here the entire issue is sold at one time, securities of corp(>rations regulated by the U.S. Government, ·ecurities listed on respon, ihle stock e. change approved by the state, ecurities i. sued by corporations !'or benevolent purposes. and securities pledged to hanks. Tho ar.t clues not apply to disposal of securities to a corporation, to tbe con veyanee or real flstate, for disposal of one's own pro pert~-. for tbe owner's account, when made in the r·ou1·se of a single transaction by the mn1cr. to notes given in the ordinary course of business, for goods purchased, to commercial paper running le.·s than twel\•e months, unrler certain conditions, to di posal of proverties made by trustee pur~uant t.o law. to pledges in the ordinary course of husines.,, to the issuance of' securities under Lbe corporation laws of the state, in good faith, for the sole account, of tho issuer, without commission. at an expense of le ·s than one per cent of t c purchase, and where no part of tJie is,me is in payment of patents, en ice. goocl will. trademarks, lea es, c:op~•rights, proe .:s, formulae, or other intangible a.<;s • ·, or for property loc-ated outside tbe stato, to securities sold by Indiana corporations or by foreign corporations having seventy-flye per c-cnt of 1heir a.5scts within the state and authorized hcrure Au!sust 1, 1!)20. The act regulates ri~idly as to advertisements and publicity of such sales and imposes penalties. Chattel l\lortgages. Chattel mortgage on personal property left in the hands of the mortgagor with power to sell must stipulate that the money received by tbe sale be applied to the payment of the mortgage debt, and should be drawn in the form of an absolute hill of sale. mu. t be acknowledged in the ame manner as prescribed for the aclmowledgments of deed. and recorded within ten days from execution, and in the count.y 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 per on than the parties thereto, unle ·s such mortgage shall be acknowlede:ed, and recorded within ten days after the execution thereof. )\'here delfrery of the chattels to the mortgae:ee occurs at the time. record is unnecessary. A morte:agee of household goods can not sell mortgaged 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. Con,:eyances. 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, le see or mortgagee. Lands in this State may be taken, held, conveyed, devised, or passed hy descent, hy or from any citizen of the United States; or by or from any alien (see Aliens), with some provided exceptions as to cle:-:cent · or devise. Lands which may have come by descent, or purchase to the wife of an alien. ma~· be held, conveyed, devi<;ed and passed by descent by and from her, notwithstandine; 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, conveyance of lands, or of any interest therein, must be by deed, subscribed, and acknowledged by the grantor or by his attorney in fact. The joint deed of a husband and wife is sufficient to pa ·s the lands or the wife. Except in cases of mortgages, conveyances in trust, conveyances to husband and wife, and cases of estates vested in executors or trustees, as such, and so held by them in joint t,enancy, all conveyances and devises of lands, or of any interest therein, made to two or more persons, shall be con trued to create estates in common, and not in joint tenancy, unless it shall be expressed therein that the grantees or devisees shall hold the same in joint tenancy and to the survivor of them, or it shall manife tly appear from tenor of instrument, that it was intended to create an estate in joint tenancy. 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 mu. t be so expressed in the deed. Liability on lineal and collateral warranties is expressly abolished; a covenant or agreement of any person leav~ heirs and devisees answerable thereon only to the extent of property descended or devl 'ed to them. Any conveyance of land worded" A. B. conveys and warrants to C. D. (here describe the 1iremi'es) for the sum of (here insert the con. ideration)," or" A. 13. quit-claim· to C. D. (here describe the premises) for tbe sum of <here in ert the consideration),"-the same being dated, and duly signed and aclrnowledged by the grantor,-shall. in the one case, be a conveyance in fee simple to the grantee, his heirs and a.<.signs, with covenant from the grantor for himself and bis heirs and personal representatives that ho is lawfully seized of the premi~es, ha.,; good right to convey the same, and guarantees the quiet pos. ession thereof. that the same are free from all incumbrances, and that he will warrant and defend the title of the same against, all lawful claims; and shall, in the other case, be deemed to be a good and sufficient conveyance in quit-claim to the grantee, his heirs and assign·. Any mortgage of lands worded - " A. B. mortgage. and warrant to C. D. (here describe the premh·es) to secure the repayment or (lrnre recite the ·um for which the mortgage is granted or the note or other evidences of debt, or a description thereof, sought to be secured. also the date of the repayment "-the same being dated and duly signed and acknowledged by the grantor -is a sufficient mortgage to the grantee, his heir:s, assigns, executors and administrators, with warranty from the grantor and bis 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, defcasible by force of a deed of defeasanee, bond or other instrument for that purpose, the original conveyance shall not thereby be defeated or affected as against any person other than the maker of tbe defeasance, or hi heirs or clevu·ees. or persons having actual notice thereof, unless the lnstrumen 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 e\·ery lease for more th, n three years, shall he deemed fraudulent and void as against any suboequent purch~·er, leasee or mortgagee in good faith and for a Yaluable consideration. unle ·-s rePorded in the recorder's ofllce of the county where such lands are situated. (See Acknowledgments, :Married Women.) Wben either the husband or wife is of unsound mincl the party with the sound mind can either join in the guardian's deed or make his separate deed and the effect would he the same as a joint deed of husband and wife both of whom are of ound mind. Corporations. Domestic Corporations. Corporations are created 1 ~~lci~ri~~~ ~fe°ciet;!u~tf~~tse:cret~s of stif!~ a~ ~i~a~:ci:d:ti~ ~'1ei! of the county, as provided by statute. The liability of tockbolder. varies according to the nature of the corporation in question and the law under which it was organized. In the corporation. which were in existence • ovember 1, 1851, and which accepted the terms of the act of March 6, 1883, stockholders are liable, in case of insolvency, for a sum at least eoual 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 employcs. Shares of capital stock in a private corporation are subject to attachment. Annual reports must be flied In June with the Secretary or State. A new code regulating the incorporation of companies for profit has been enacted (1921) which supplants many existing statutes creative since corporations.  Foreign Corporations. Agents of foreign corporations, before entering upon the duties of their agency in this State. hall deposit in the clerk's office of the county, where they oropose doing business, the power of attorney, or appointment, under which they act. They shall also file a duly aut,henticated order, resolution or other sufficient authority of the board of directors authorizing citizens or residents of this State having a demand against such corporation arising out of any transaction in this tate with such agents to maintain a action in respect to the .·ame in any court of this State of competent jurisdiction, and authorizing service of process on such agent, and that such service shall authorize judgment and all other proceedings against such corporations. By act of 1913, foreign corporations must file with auditor of State certified copy of vote of directors consenting to accept service of summons on auditor of State as summons on corporation. If forci!O} corporation bas no agent within State, summons may be served on Auditor of State, wllo shall notify corporation. Contracts made by such agents shall not he enforced in any court of th! State until there has been a compliauee with the above provision'. Failure of a foreiITTl corporation to comply with the ·e provisions will not bar-but wilJ abate ·uch action. Any person who shall, directly or indirectly, receive or transmit money or property to or fo1· ·uch corporation. or make any contract, or transact any business for or on account of any such corporation. shall be deemed a~ent. This provision does not apply, however, to persons actine: a-; agents for a special or temporary purpo e or for ' purposes not within the ordinary busine s, nor doe. it apply to attorneys at law. 1 ny person acting as agent of a foroign corporation, who shall neglect or refuse to comply with the foregoing provisions, is liable to a fine in any sum not less than 50. In 1879 it was enacted that: Every foreign corporation now doing or transacting, or that shall hereafter do or transact, any busine ·s in this State. or acquire any rig-ht, title or intere ·t in or lion upon real e.·tate in t.lds State. that shall tran. ·fer or cause to be tran. ferr-ed from any , court of this State to any court of tbe United ta.te ·, save by reii:ular course of appeal after trial in the State courts, any action commenced by or ae:ainst such corporation in any court of this tate by or against any citizen or re:·ident thereof; or that shall commence in any court of tbe United . tates in this State, on any contract made in this  ~~ ~:~~~\ft ~'n~:ds~~f!eb~' I~~ra~~~\~!uai~~~btgi~~r!ita~Il right and authority to do or transact bu.'ine!·s in this State, or hold real property or liens thereon, and all contrar.ts between such corporations and citizens and residents of this . tate made after the passage of this act shall be rendered void, as in favor· of such corporations, but enforceable by such citizen at bis elertion. The provisions 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. Ily the act of 1901, foreign corporations are required to dcsi:rnate an agent In this ~tate upon whom legal process may be erve<}; 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 Secretary of State showing: articles of incorporation, lmsiness intended to pursue, capital stock, proportion of its business carried on in this State, amount paid in on capital stock, and answers to other interrogatories propounded by the Secretary of tate, and . hall pay a fee of 25 on first 10,000 of a.< ·et.5 used in Indiana, 10 for each additional Sl0,000. Annual report must be flied in .January and fee of 51 paid. Foreign corporations may not hold real eslate except , such as may be necessary for proper carrying on of its legitimate business.  ~At!:n  Courts. Terms and Jurisdiction. The circuit court is tbe only court of original general civil jurisdiction in the State. It has full probate powers, except in Marion County, where there is a separate uperior courts have been e.·tablished in many probate court. counties. Justice's jurisdiction, 200. Party may confe.·s judgment before a justice of the peace for 300. 1\11en a written obligation for money binds more than one party the justice of the peace may issue process to con table of any county in the tate where party resides. 'I'he supreme court has no original juri~diction. It sits at Indianapolis. The appellate court bas final juri.·diction in many ca ·es. 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 deposition·. Person taking depo:ition must not be of kin to either party or intere. ted in the action. When taken outside of the l'nited ~tate they hall be taken pur ·uant to ·an order of the court, under a com mi. ion, witb such reasonable notice of the time and place of tal,inJl 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. ,. otlce 8  g~r\~e o~a~~ga~~~~eey,d:g~Jg~~gs~gf~~ee, !~e~~~t°~r t~:h,~~1~1~1 trial, the time and place of taking, and the names of t.he witnes es. Reasonable time shall be allowed for the attorney so ·erved to communicate with the client, and for traYel to the place of taking, exclud· ing tbe day of service, of the taking and intervening ..:undays. The dedponent shall be first. worn according to law. Ile 'hall then he examine by the party producing him, aud then hy the adver. ·e party, and then bY the officer, if he see catL e. The depo ·it ion. hall be written down by the officer, by the deponent, or by some disinterested person. in tbe presence and under the direction of the officer. and after the same bas been carefully read shall be ubscribed by deponent. The following factst shall be stated in a cert.illcatc to be annexed by the officer: 1. Tha the deponent was ·worn according to law. 2. Dy whom the depo-d sition wa written, and if written by deponent or some di. intereste person, that it was written in the presence and under the direction of the officer. 3. ·whether the adYerse party attended. 4. 'fhe time and place of taking, and the officer. hall sign and attest the cortiticat1?, and . eal tbe same, ff be have a seal of office. If he have no . cal, h1S certificate shall be authenticated by the certificate and seal of thhe clerk or prothonotary of any court of record of the county in whic certificate shall be authenticated by the certificate and ea! of tbbe clerk or protbonotary of any court or record of the county In which the officer exercises the duties of his office. The officer taking t e deposition shall . eal the same in a sufficient envelope and himselfh, post, or exprCJ , or deliver the . ame to tbe clerk, of the court in whlc the action is pending, endor ing on the envelope the name of tne parties and of the court and of the witnesses whose depositions ahre enclosed. Adjournments may be had from day to day after t e deposition has been begun, and for longer periods, upon written con· , sent of the parties, which written consent must be attached to tge deposition. Adjournments bould be noted at the place in t Ae deposition when tbey occur. A narrative fonn may be used. witness identifying a written in. trument should attach It to hlS depositio making It a part of his answer. Descent: The real and personal prop<:rty or any int0l tate. shall descend to his or her children equally; and po thumous children inherit equally with tho. e born before the death of the ancest0r·8 Children of deceased children take the share which would h&.V descended to the father or mother and grandchildren, and mor8 remote descendants, and other relath·6! , lineal and collateral, inberlt by the same rule, excepting that if the heirs are all grandchildr8 0  BANKING AND COMMERCIAL LAWS- INDIANA  or out of any contract relating to transportation, and for injuries to persons or property: also to employes of any corporation as against any of its corporate property or earnings for labor done; also to keepers of Jiyery stables and all persons engaged in feeding stock, for the food and care bestowed upon the same. also to blacksmiths; also to contractors, sub-contractors, mechanics, journeymen, laborers, and all persons performing labor or furni t ing material or machinery for erecting, laboring, repairing or rem) lug 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 trade.-.;men for their valid and reasonable charges in the construction, repair, or alteration of any article of value; also to the bailee or keeper of personal property for any feed or care bestowed by him upon such property; special lien for stora""e 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 supplies or repairing a m(\tor vehicle or garage owners have lien on motor vehicle which can be foreclosed within one year from failure of owner to pay charges. Judgments rendered in any county in the Rtate are a lien upon the real estate situated in such county for a period of ten years from the rendition thereof, and judgments rendered in the federal courts are a lien upon any real estat,e in the State for the same period, Provision is made by statute, however, for the filing in tile county where the real estate i · 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 !is pendcns record, in which notice of the filing of complaints to enforce lien.<; are required to be recorded. and alro in cases wllere real m,1ate is seized by attachment or execution. Unle. so recorded the bringing suits does not operate as a constructi ·e notice. Lilnitations to Suits. Actions for injury to person and character, and for statutory penalty or forfeiLUre, 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 prnflts of real estate, injuries to and cletent.ion of property, recovery of personal property and relief against frauds, six years; upon promissory notes, bills of exchange and other writ,tcn cont,racts for payment of money, ten years; actions not limited by statute, fifteen year::;; other written contrac s, judgments of courts of record and real actions, twenty years. Revivor: part payment or new promi.~e in writi..t1g. Except in favor of suretic , the statute of limitations does not run a<Tain ·t, the State. l\larried ,11,·on1en control their real and personal property. The husband is liable for the wife's dehts contracted before marriage to the extent of the personal property he may recciye from her, and no further, and her lands are liable for such indeb1,edness. A married woman mav elm, ise her separate estate; may sell and transfer her. ·eparate personal property; carry on any busine . labor, or service, and receive the earnings accruing therefrom; enter into any cont.ract in regard to her separate personal est.ate 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 vears or less and execute mortgages to secure purchase money, without husband' joining. She is bound by covenants of tit.le in conveyances of her separate real estate. Her deed conveying her real estate, he may sue as a femme her husband not joining, is ab ·olutely void. he is bound in solo for any damage to her person· or character. like manner as principal on ber official bond. Disability a to suretyship has heen 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-  they inherit equally. "'here there are no heirs as aforesaid, onehalf of the estate goes to the father and mother as joint tenants, or to the survivor, and the other half to the brothers and . ister·, and to the descendants of such as are dead, as tenant in common. If there he neit,ber father nor mother, the brothers and sisters, and the other descendants, take the estate as tenants in common; or,  it: 1~n~bl;gJ1 ir:::::~r  ettl?i~tw~!~af1~ -~f ;nheur;b~Y!: ~~~J~~~t~r blood in property purcha.'led by the ancestor; otber,,i.·e, as to property acquired by gift, devise, or descent. lllegitirnate children inherit from the mother same as if they were legitimate, and vice versa. Tenancy by the curtesy and dower are abolished. and widows take one-third of the real estate in fee simple, unle · the property is worth over 10,000, in which ease, as against creditors, she take one-fourth only; and where the real estate is worth over 20,000, one-fifth only as a!!;ainst creditors, but as against other heir:s slle 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 wi.fe, however, takes only a life estate iu her bu band's lands, if there be a child or children by a previous marriage, and none by such widow. Other spedal provisions of the statute arc too extensive to set out. The estate of a person dying inte tate without kindred capable of inheriting will escheat to the State for the support of the common schools. Dower. (See :;\[arried Women.) E. ·ec•ution may issue at any time within ten year aft.er judgment and are returnable in 1 'O clays. From a court of record may i!!sue to any county in the State. Are a lien on personal property within the county from the time they are placed in hands of officer. The liens upon personal property attach in the order in which the hen levy is upon real estate the dates of omcer receh cs them. the judgment control the right to participate in the proceeds, and they mu ·t be applied according to their priority. Personal property taken in execution may be left with execution defendant by t,he giving to tbe oIDcer of a delivery bond with uflicient sul'ety; debtor may, by giving sufficient freehold surelies, have a ·tay of exe<'ution on an~" sum exceeding 100, for six months. "\'{here the sum is less than $100. the stay is not so long, varying with amount of judgment. Lands sold under execution may be redeemed "ithin one year by the ow11er, mortgagee or person having a lien thereon, thP. owner retaining posses•,ion during the redempt.ion year and being liable for reasouahle rents and profits in case of failure to redeem. Exemptions. Propert,y up to 600 is exempt in uitl on contract Where debtor is a resident householder. Resid nt hou eholder is entitled to exemption as well when in transit, with his family and Property as when permaneut,ly sett,led. The dP-btor must file a schedtle of all of his property, and select the property claimed, which is then appraised. Contract waiving exemption is void. Pension money in tran:it to pensioner is e.·empt, 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 i still employed. Fraud. Assignments, in writing or otherwise, of any property made or suffered with intent to hinder, or defraud are Yoid as to the fi1~~l,defrauded. The question of fraudulent intent is a question  ·ted ace rd, erted hail itb  as  bY  uce  r:-.e 1 of  ses.  omuddened  bY  the  nee  een cts  bat  poted of  illlO  te, biS the icb the icb  the  elf, icb the are the onthe the  A  hiS  all  ren or. ave ore erit ren  Frau cf. -statute of. 'rhe following con tracts. if enforceable in court, must be in writing and signed by the party to be charged: 1. To charge an executor or administrator, upon any .·pecial promi e, to answer damages out of his own estate. 2. To charge any person, upo1_1 any special promise, to answer for the debt, default, or miscarnage of another. 3. To charge any person, upon an.· agreement or pro mi. e, made in consideration of marriage~ 4. Upon any contract for the sale of laud (except loan not exceeding the term of three years). 5. Upon any agreement not to be perform d ~ithin OJ?-e Year from the making thereof. 6. Sale of goods exceedmg $50 m value, unless part payment or part delivery be ruade. 7. Up'?n any repre. ent.ation made concerning the character, conduct, crecht, ability, trade or dealings of any other person. Garnishment. (See Attachment.) Garni. hment is a remedy in aid of aLt.achment.. Upon any per.·onal action arising out of contract any person may he summoned as a garnishe_e defendant upon an affidavit, that offidal has good reaso~ to. beheyo ~hat any perso_n named has properiy of the defendant m his po 'e . 1011 or under hlS control, or that he is inctehtcd to tbe defendant, or h~ control or age~cy of money, property, credits, or.eti;ects; that he lu~s any share or mterest in the stocl{ of anv associat10n or corporation. and all morwy •>r property in tl1e hand·· ol the garni. b4::e defendant is bound from the time the summons is served upon lnm. He !dent householder.· are entit.led to an exemption or GOO in garui ament proceeding., as in all other case.,;. Wages of non-residents, to the amount of ~25, and of resident householders to the extent of one month's ~ages, are exempt from excC'utiou so long as _the defendant, remains n the employ or the p;arnisbee. Indiana cl_a11ns can n?t l_el?a!IY be sent or taken out of the Siate for prosecution, and .·u1t.· mst1tuted elsewhere in violation of this prohibition may be enjoined and the o1Iender he criminally prosecuted. Holidays. (See Legal ITolidays.) Husband and Wife. (See Married Women.) Inheritance Tax. (. ee '!'axe .) Interest. The legal rate is O per cent, but interest ll}aY he taken o agreement to pay a higher rate 1s Yalid unlCS!· the In advance same be in· writing and in such case it is not Ia, ful to contract for more than 8 per cent. ·when a greater rate is contrar.t~d for .. the contrart i. yoicl as to all interest in exces of 6 per cent, 1 u ur1ous and illegal, and the e ·ccss may be recou~ed. b;r the d bt«:>r whenever it has been re.·ervecl or paid before the brwgm!s of tile sutt. Interest on judgments runs from the date of the verclic~ or finding, at the rate S))ecifled in the original contract, not exceedmg G per cent, and if no contract has been made 6 per cent is allowed. Judgment~ of courts of record are a lien upon all real e tate of defc•ndant within the county for ten years. Judgment may be Obtained at the first term of the court, after proce. s has b6<:n ~erv_ed on debtor ten days prior to the first day thereof. Judgment: m Justice court becomes a lien on real estate of judgm1;11t ~efendant from ~ime Of llling a transcript in ofilce of the clerk o~ c1r~utt court. A cert1_fled copy of any judgment rendered by the c1rcmt court of the mted States for district of Indiana may be filed with tile county clerk. Legal Holidays as to commercial paper are as follow : The first day of the week, commonly called Sunday; the 1st day of January; the 4th day of July; the 2:;th day of December; any day appointed by tho pre.'>ident or governor for public fasting or thanksgiving; 12th day or I~ebruary; 22d day of February; 30th day of :'.\I:-1Y: tlrst :'.\fonday of September; 12th day of October; and any election day; when any holiday (ot,het· than Sunday) comes on Sunday the ~londay next succeeding shall be the legal holiday; aturday afternoon is a legal half-holiday In t110 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 attorney·: to per ·ons holding claims against watercraft on account of upplie furnished or work done; also for demands for damages ari ing out of freight contracts, or for willfulness or negligence of the master, owner, or agent,   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1883  ~f h~t~!~~~~S°i;~~b~ll~~: ~~~r~~i~~ $i~0~ee, !n'cti1~~ fl~~i1~~~=t~f1)l from all demands of creditors, where thee tate does not exceed SI0,000;  1  one-fourth, if under 20,000, and one-fifth, if above that amount. She also takes a child's interest in the personality where tbe number of children does not exceed two, and where there are more than two, her interest shall not be le. s than one-third of t,he whole of personalty after payment f debts, and in all cas takes .500 without a~counting, and may occupy the dwelling of forty acres of her husbands land for a year, rent free. But t,he one-third of he: real ~state which, the widow takes in feo, can not. upon her marrymg agam, be effectn'ely conveyed or mortgaged by her, if there be a child or children, or their des •endants, alive ·by the previous matTiage. Real estate which husband aud wife hold by title made to them as husband and wife, is held as an estate by entirety; it cannot be taken for the debt of either; is not, subject to the lien of a judgment against either, except in case of the death of either or upon divorce granted, when the estate is destroyed and becomes subject to levy and sale; and a mortgage thereof by them both for a debt of the husband has no legal validity. :\Jorti,:ai::e:. (See Conveyances.) ,. ·e~otiu h• Instru1nenb arc defined by hapter 63 of the Acts of rn1:1 \\hich is the mform ... Tegotiable Instrument Act. ~oction 1 pro, ines t11al an ins nunent t,> be negotiable must conform to the . following niquiremcnts: 1. It mu ·t be in writing and signed b:r tho maker or drawer. 2. ::'\lust contain an unconditional promise or order to pay a certain sum in mone)·. 3. Must be payable on demand, or at a fixed or determinable future time. 4. !-,Just be payable to order or to bearer. 5. \Vhere the in ·trument is addre.'>sed to a drawee, he mt1St be named or otherwise indicated therein with rea onable certainty. Its negotiability is not alfected 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 oblie;or, or 1:1;ives 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 grJ1.ce. Where day of maturity falls on Sunday or a holiday, instrument is payable on next succeeding business day. Instruments payable on Saturdays are to bo pre.'lcnted for payment on next succeeding busine. day, except that demand instrument may be presented for payment before noon ~ aturday when thatentire day is not a holiday. In any case not provided for in the act the law merchant governs, and all laws in conflict are repealed. Act does not apply to negotiable instruments made and delivered before April, 1913. Power of Attorney must be executed and acknowledged, and (iJ for the conveyance of real estate, or to affect real estate) recorded, in the same manner that deeds are made. Probate Law. (See Administration of Estates.) Protest. The statutory damages on such protest are 5 per cent on the principal of a bill of exchange, if drawn or negotiated within this tate, upon any per on, at any place out of this State, but within the United 'tates, and 10 per cent if upon any person, at any place without the United States.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1884  BANKING AND COMMERCIAL LAWS-IOWA  Reple,in. ·when any personal property is wrongfully taken or unlawfully detained. or, if taken on execut-ion or attachment. i · claimed by a third party, the owner or claimant may bring an action for possession thereof. He may claim immediate delivery upon affidavit th refor, whereupon the neriU takes po.session of the properLy, and if delivery bond is given on behalf of the defendant within twenty-four hours. the property is retm·ned to him, otherwise the plaintiil' may give bond and take the property; failing to do so it is returned to tho defendant. The plaintiff has twenty-four hour· in which to file bond. Justice of the peace have jurisdiction in replevin suits involving property worth $200 or lo . Procedure is same before justice of the peace, except t-hat t-he plaintiff must file bond in all such cases. Heplovin may also be had without bond, by allowing defendant to retain possession of property pending suit. Suit·. ( ee Actions.) Taxes. State, county, town hip, municipal. school, and road taxes attach as a lien on real estate on )larch 1st of each year, and penal tie attach on first, Monday in .c\lay in the next year. One-half of all taxes may be paid without penalty, if paid before first :\Ionday of ... lay; other half. if paid before first )lonclay of • ~o..,-ember provided that all war taxes charged shall be included in the first in. tallment. ales of real estate for truces are held on the serond ::\Ionday of February, and all lands on which truces are delinquent for two years are oll'ered. Owner has two years in which to redeem, by paying the amount set forth in the certificate of purcha. e \\ith all subsequent taxes paid, and 10 t-o 25 per cent upon the whole sum, with legal interest from the date of purcha<;e or payment. Lands are sold for one year'. delinquency, but the following year's tax (not yet delinquen:,) 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 re ident decedent, and upon tangible proper of non-resident decedent. Tax applies as well to gifts made in anticipation of death, to t.ake effect at that time. Inheritance taxes do not apply to the transfer of the estate of any decedent leaving an estate of less than g25,ooo, dying or who has died while in the military or naval forces of the nited tates during the "·orld 1' 'ar or ,,ithin one year after the termination of the war. (Revi ·ion of the tax laws made by 1010 Legislature and for further information reference should be made to the Act 1919.) uncupative wills, whore property of more than the value Will . of 100 is bequeathed, are not valid, except as to the personal property and wages of oldiers and sailors in actual service. A nuncupa.tive will must be reduced to writing within flrteen days after it shall have been declared and proved by two competent witne. ses who shall have heard the testator request ,ome of tho e present to bear witness o will in writing is valid uni ss signed in the presence of thereto. two or more witnesses by the te tator. or by ·ome one for him in his pre. em·c. with his con ent, and attested and subscribed by two or more witnesses at his request, and in his presence and that of each other. ·wrn made before marriage become:s void on marriage.  SYNOPSIS OF  THE LAWS OF IOWA RELATL"G TO  BANKING AND COMMERCIAL USAGES Revised by B. J. c.~VA,•.-1.GH, Attorney at Law, Des :\Ioine'. ( ee Card in .Attorney·' List.) Account and Claim of. Statements of account, for use in court or for proof in the settlement of estate. of deceru·ed and rn guardianship matters. must be itemized and verified. A statement of "balance," or "goods," or "merchandise" is not sufficient. 11 instrument.,-; affecting real estate, inrludAcknowledgments. lng mortgage·, deeds of tru. t, powers of attorney relating thereto, and leases for more than ono year, mu. t be acknowlecle:od or the execution thereof proved. and the in truments mu ·t be recorde(l in the proper ofilce, as so to afrect third parties. 'l'bo .-ame i. also true as to hills of ale, absolute or conditional, and chattel mortgages relating to personal property. Articles of incorporation mu t also be acknowledged and recorded. Tho forms of acknowledgment and the officer . within and without the tate, before whom uch acknowledgments may be made are prescribed by statute. Action. . The common law forms of pleading are not w·ed, although the common law forms the basis of procedure. Pleadinp:, practice, and procedure are tatutory, and accord, in the main, \\ith what i · known a· the reformed, or code procedure. Administration of E ·tatt•s. "\Vhere an executor is not appointed by wrn, administration shall be granted: 1. To the spou e of th deceased. 2. To the next of kin. 3. To creditors. 4. To any other person whom the court may select. C'laims against the estate of a decearncl person are payable in the following order: 1. Debt entitled nit d , tates. 2. Public to a preference under the laws of tho rates and taxes. 3. <'laims filed "ithin six months after the llr.·t publication of the notice given by the e ·ecutors or arlminbtrators of their appointment. 4. All other debts. !i. Lee:aci · and distributive shares. All claims of the fourth of the above clw ses not filed and allo,ved, or if filed and notice thereof not served within twelve months from the giving of the noti<- of appointment are barred, except as to actions ag-ain.-t doc dent pending in the di trict or supreme court at the time of hi · death, or unle · · peculiar circum·tances entitle the claimant to equitable relief. Affidavit. . Affidavits may be taken before any person authorized to administer oath· in the tate where taken. If taken , ithout the tate of Iowa, the official character of the officer administerin~ the oath ,should be evidenced in the same way a.i; the ollicial character of an ollicor taking depositions. ( ee Depositions.) Affidavits may bo taken within the Htate for any la,,-ful purpo. o, of one unwillin~ to voluntarily make an a!Jiclavit, by Olin~ a petition with an officer autho~-  1  ized to administer oaths, who may cause the person to come before him and make allida,·it. This proceeding is statutory and must conform st1·ictly to the statutes of Iowa. .Affidavits for proving account and form: • tate of ............. . County of. . . . . . . . . . s, 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 . old and delivered to said .......... at the prices and times ther in named and agreed upon, and that said articles were reasonably of the value charged, and that the aid ccount is due and unpaid. That there i no legal set ofl' or credit to he same or any part thereof e:rcept as herein stated. Subscribed and sworn to before me, by the said . ........ . this ... . day, etc. Aliens. J. on-resident aliens or corporations incorporated tmdor the laws of any foreign country or corporations organized in this country, one-half of the stock of which i, owned or controlled by nonre.·ident aliens are prohibited from acquiring title to or holding any real e tate in Iowa, but the non-resident aUen widow. heirs, or devisees of an alien or naturalized citizen may hold the .-ame for twenty years, and if not sold within that time, e cheat · to tho talc. .\liens may acquire property of any kind within a city or town or lan<ls not exceeding 320 acres or stock in any corporation for pecuniary profit and may alienate or devise the same. but this law does not affect personal property. A lien holder may acquire title to the property embraced in such lien but real estate so acquired must be sold within ten years after title is perfected in an alien, otherwise it will oscheat to the tate. Arrest. ... -o per on can be imprisoned for debt on either mesne or final proce.· . unless in case of fraud. Dehtor·. however, may be ordered to appear before a court of record wherein a jud"ment has been rendered, and if the debtor is about to leave the State, or conceal himself, he may be arre ted and compelled to give bond to appear before the court for examination, and in the meantime, not dispose of his property. (. ee upplementary Proceedings.) A signments and Insolvency. General aJ signments not valid unless for benefit of all creditor·, when a. ent of creditors is presumed. The debtor mu t annex to the instniment of a signment a sworn inventory and li t of creditori;; and sueh instrument must be aclrnowled~ed and all of the papers recorded like a deed of real estate. The assignment vest in the a signee title to all propert.y of the debtor. A· ignee must give bonds, prepare a verified inventory and valuation, and notify creditors by mail to fl.le claim.- within throe months. All claims not filed within three month.· after notire published or within uch extended time as the court grant·, not exceeding nine months, including claims not yet due. C'an not be paid until all clain1s fi)prf within said time are paid. An a;·;;ignment does not di. charge the debtor from bi· debt and liabilities. but only entitles creditors to share equally in his estate. All clain1s flied must be itemized and sworn to. Attachment . 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. .\ bond must be flied for three times the a.mount claimed, if the action is founded upon contract, otherwise. in a sum to be fixed by the court. if the action I not founded upon contract. Garnishments may be effected under the writ of pecial attachments are permitted, to attach specific attachment. personal property, in a few pre cribed cases. Banks. The banks organized under the laws of Iowa are respectively designated as a.vings banlc and . tate banks. , aviug · banks mu t 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 ·tatutory provisions mus be consulted concerning the manner of organization. the i. uance of and payment for capital . tock, the board of directors, quonim, voting by proxy, limitation of deposits, and the inve. tment thereof, the loaning of funds, the cash reserve required, and the di.- ·o!ution of uch bank.. State bank. mu t have a minimum capital of from . 25,000 to 30,000. according to the population of the city or town in which each is located. Each share mu t be of the par value of 1oo. The .·tatutory provi. ions mu t be consulted for the particular above referred to on the ubject of savings banks. Banks and loan and trust companies may obtain power to act as executor, administrator, guardian, receiYer, a.·signce, trustee, or in ·auonal Banks may exercise the same other fiduciary capacity. powers when authorized by ~\ct of Cong-re s. .\n~• Iowa State or .'avings Bank or Trust Company may become a rucmher of the Federal Re ·erve bank s:n,tem. Bill-. of Exchange. The ne~otiable in,-,"trum nt law re<'ommcnded by the interstate commis. ion on uniformity of law has b •en ena(·ted and i. now la,, in Iowa. (For Grace, :ee Day· of Ura<'e.) .\. pro, ision for the payment of exchanc:e, in addition to th amount of pl'incipal ancl intere·t, doe· not render a bill of exchange non-negotiable. Bill"! of Lading. The uniform Bill of Lading law has been adopted in Iowa. Chattel :\lort~ai:e . . '"o .-ale or mortgage of personal proJ)ertY, where the vendor or mortgagor r tains actual po.·. e: sion. is Yalid against exi ting creditors or ·ubsequent pur baser.- witnout notice. unless a written instrum nt con,·eying .·ame, be execut rl acknowledged like conveyances of real e ·tate, and filed for record with the recorder of deeds of the county \\·here the bolder or the property reside:-. o encumbrance of personal property which may llo exempt from execution by the head of a family if a r ident of tho tate shall be of any validity uni · the ame be by written in ·trument and unJes,; the hu. band and wife concur in and ign the. a.me joint instrument. Collateral ecurltie . There are pocial tatutory provi ions concernin" the pledging of corporate .-tock. a. . ecurity; a11d also upon the subject of ales of collat.eral.· by action in court and judicial ale. Otherwise the subject i · governed by the common law. 'o sale, contract, or lease wherein the Conditional ale"I. transfer of title or owner-hip of p rsonal propcrt)" is made to depend upon any condition, shall b ,·alid a"ainst any creditor or purchaser of the vendee or 1 · · in acwal po ~ .. ion, obtain d in pur.manco thereof, without notic . uni · the . ame be in \Hiting, exeeuted by th vendor or le. or, acknowledged and re..ord d the same as chattel morti-tage . Con,·eyances. No particular form is nee,· ·ary for conveyances or mortga~es. The name of tho parti s, the de cription or th' propertY , the con.-ideration, the date, signature, and acknowled11:nwnt, is al 1 that is nee• ary; as between the partie · they are valid without heinJ!' r c·ord d. Th "ife mu. join ,·ith h r hu hand in <·om·cyance.._d.. and a conveyance of th horn stead i.: of no ,·nliclity unle. · l,u:b3:u and wife concur in and .-kn th .-am joint in:strument. A corporation al, except when~ executes conveyances under its corporate uch com eyance mu. t be s1gne c-orporation ha· not adopted a ,'eal. in the name of the corporation by the oill ·ors authorized o to ct o, by the Art.icl · of Incorporation, or By-Law·, or by resolution du1Y entered of record in th minut s of the corporation. and duly acknowledged by such ofllcer.·. a. the ar.t of the corporation. i  i  tbs  BANKING AND COMMERCIAL LAWS- !OW A e  r  s  to ch he ve as in 18  or he ed ed on al ed  1\d  <'e, ed er e ·. ID  be ess  nt.  ns lso ial he  nd ser ce ed  as  ces  ~)i  ut, •es, nd iOil  the ed do, ulY wl-  Cori>orations. Private corporations, sole or a~gregatc, may he formed for any lawful purpose. But there are special statutory provisions which must be complied "ith for the organization and government of insurance, banking, loan and tru,;;t, building and loan , and railway corpora,t.ions. In all cases, the articles of incorporation must be acknowled!rnd ancl reeorded, in the manner provided by law. and approved hy the ' ecre tary of state. With a few exceptions, an incorporntion fee of . 2.'>, plus $10 for each thousand dollars of capital in excess of 10,000 must be paid, upon the organization or i·enewal 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. ba; ed, however, upon the property of the corporation, within the State of Iowa. Foreign public , ervice corporations, other than steam railroads, doing busine s in Iowa, and holding companies controlling the-st,ock of such companies, are made subject to many of the laws of Iowa affecting similac domestic corporations. Courts. Terms and Jurisdiction. The district court has jurisdic~ion of all actions, civil and equitable, and has criminal and probate Jurisdiction. Superior courts may he established by the vote of the people in any city of 5 ,000 inhabitants. It has juri. diction to try all violations of city ordinances, and the same criminal juri. diction a~ justice of the peace court . It ha jurisdiction to try and determine civil and criminal appeals and civil writs of error from justice, of the peace, situated in the township where the court is located. IIas the same jurisdiction M the district court to try all suits in law and equity, except grant divorces, alimony, and separate maintenance, 1:tnd it has no probate jurisdiction. Transcripts from . uperior and Justice's courts must be flied in di ·trict court to create a lien on real ~state. and are then enforced as judgments of the district court; Justice's jurisdiction, 5100, or. by writ,ten consent of parties, 5300. 'l'he supreme court has only appellate jurisdiction and holdi'. sessions a_t Des Moines, January to l\1ay, from May to September (le s vacation), and from September to December. . D::iys of Grace. Every negotiable instrument is payable at the time fixed therein without grace. ])~Jlositions may be takon wit.11in the 8tate, on notice. and within or without the State, on commission, issued after notice by the clerk of the proper court. \'\71en to he taken on commis ion, defendant m ay elect, in writinl!', duly served. to cro examine orally: thereupon P 1amtiil' may also elect in writing to examine orally. Exceptions nbiust be filed within three (3) clays, after the fllinir of the deposition, ut objections may neverthele. s be made on the trial for competency, materiality, and relevancy. ne,ll'ent and Distribution of Property. Subject to rights of ~ower and other charge· thereon, and burdens impo. ed during the hffetime of the decedent. and in the absence of a valid will. the estate o .one cleceased shall descend in equal shares to his children. The heirs or any deceased child shall inherit in same manner a though stuhch child had outlived his parents. If the inte.-;tate leave no i sue e whole of the estate to the extent of 7.500 after payment of debt an_d admini.·tration expense, and one-half of the e tate in exces of said • 7,500 goes to the surviving spouse and the other half to the parents. If no suniving spouse, the whole thereof shall go to his parents or the survivor of them; and so on through a,;;cending ancestors and their issue, if both parents be dead. Per ·onal property nhot necessary to pay deht. is distributed to the ame person , and in t e same proportion as though it were real e. tate. . Dower. Dower in Iowa is abolished, but the surviving spouse ~s entitled to one-third in value of all the legal and equitable estates m real property posse sed by the deceased spouse at any time during ~he maniage, which have not heen old on execution or any other JUdicial sale, and to which ·uch urvivor has made no relinquh-hment of r~ght. A spouse, heir or devis e feloniously takin~ or procurini; the tal~mg of the life of the othel' spou. e, or decedent. cannot have dower or mherit power or take under the will of the decedent. ( ee Limitations.) Employers Liability. Employers liability and workmen's compensation is governed by statute. Executions may be stayed, according t,o their amount, for ninety days o~ six month'. with a few specified exceptions. and the issuance.of execution may he prevented by filing an appeal bond. Otherw1 e ~xecution 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. Execution be.come liens on personal property on~y from. the time of th~ levy_ a~d seizure. Real estate is sold on execut10n subJect to redemption withm  :tr:~~~  1  gpt~ga~e:~;eg; }~ ;_ppe~l:Ji£i~~e~~~ ';~J~:!h1r:~ew~ ;a:!i ~onths ancl before nine months fl'om date of sale. Per ·onal property ts old without redemption. Exemptions. The bead of a family i entitled to a homestead of ~rty_ acres or le s of farm land, or half an acre or le:-ss in cit;1: or town. ens1on money, its proceeds, wages of the head of a family for 90 days pa t, and numerou items of pez·sonal property are exempt by ratute. There are statutory provisions concernin!{ the creation of iens on exempt real or p rsonal prop~rty, and the. a. ·i~nment of exempt wages. ,\s to alimony there 1s no exemption unle·s the Pat·ty in whose favor rcnclel'ed remarrie . Fraud. In actions for fraud, heretofore. olely cognizable in a cow·t of chancerv tlio cause of action shall not be deemed to hav' accrued until. the fr,{ud c-omplained of shall )l~Ye been di.·co\:ered by the party l!,ggr1eved by the exercise of due d1hgence. In a •(1011. brought by a l,Udgment creditor to set aside a fraudulent conveyance of property ti:om one spouse to the other and to subject said property to execution, eJiher husband or wife may be compelled. to testify again t the other. C,ross fraud is puni habl by fine or impnsonment. Garnishments. (See Attachment.. ) IIusbancl and ·wife. (Ree Married Women. lloli1la:vs. The first day of the week, January 1, February 12, rebruary 22, l\fay 30, Jul.v 4 , the first ::V1onday in ept_ember, DecemJer 2.i, the day of general elec_Lion and any day appomtcd or rec?mmend d by the governor of this State or the Pre ·1dent of the mie<l 'tates as a day of fa.sting or thanksgiving are hoHda~· ·, for all purpose relating to the pr sentation for payment or acceptance. and for the protbesti~ and giving notice of the dishonor of bill' of exchange, drafts, ank checks, orders and promissory notes. per cent. Interest. By written contract, maxinlum legal rate, Judgments draw 6 per cent,, or such rate as is fixed by the contract per ou which the judgment or deer e i rendered, not exce ding cent per annum. Open accounts draw 6 per cent aft r sbc months from date of last item; mou y loaned. money due, money due on settlement of accounts, boar int,erest at 6 per cent per annum. Contract for more than 8 per cent forfeits all interest, and costs. Judgment· in the district and sup rior courts may be obtained at _flr:-st term after suit commenced, if undefended; an equitable action, except one for for closure of mortgage, or mechanic's lien or for divorce, is t,riable at the second term after the ca. e is at i. sue. J udgments of the district court are liens on r al e tate owned by   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1885  tbe debtor at the time of rendition. if the lands lie in any other county, from the time of filing therein an attested copy of th judgment. Lien also covers all lands which defendant may acquire within ten years from date of judgment, or upon which a levy is made afLer ten or before twenty years from the date of the judgment, but this lien dates only from the time of the levy. Judgments of superior courts and ju,;;tice of peace courts become liens on real estate by filing transcript in district court within county where obtained, and become lien · in other counties in the same manner as if rendered in the district court. Liens. These are mainly created by stat,ute 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 period of limitation, fixed by statute, extending from three months to ten years after the cause of action accrued. Actions upon judgment8 rendered in courts of record have a limilation of t1'·enty years. Dower right. and mortgages existing or created prior to January 1, 1~ 5, are barred, unless now properly preserver! in the recorder's ofiice. Imperfect deeds by executors. administrators, trustees, or guardians made prior to January 1, 18 5, are confirmed in favor of grantees in pos ession. l\Iarried ,vomen may own in their own right. real and personal property, and may manage, sell, convey, and deYise the same by either husband nor wife i. liable for the debts or liabilities will. 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. Ioratorium. Soldiers and sailors and other persons in the military or naval service of the government or who may hereaft,er 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 payment of 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 person who is or hereafter may be a party to litigation may on request have same continued until the termination of such service or deat,h. The statute of limitations against such persons is toiled for the same period. '.\lortgages must be subscribed and acknowledged by the pa~ties creating the lien and recorded same as deed, are foreclosed by equitahle action. The wife should join in the in trument, except morti;ai::es for purchase money, and mortgages upon non-exempt personal property. The mortgagor bas one year in which to redeem real e. tate after execution sale, except as tated under the sub-title" Rxecution , " '\\'hen 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 Mol'tgages.) (See Limitations.) • Ton-residents. Action may be brought against non-re iclents to enforce liens on any property within the state; to enforce any debt against a non-resident where action is aided by attachment on property found within the State. Personal judgment cannot in any case be rendered against defendants, not appearing, unless personal on-residents service is had on such defendants within the State. may not sell at auction unless reciprocal legislation exists in the state of their residence. Notarl~s. 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 partner ·hips are permitted, but not favored. The statutes on this subject must be strictly compiled with. A certificate bowing prescribed  ~ct~!~~ :~~  g1!~Ni1  ~r  0  t~;~e~ou~fk~} ~~; th! gfn~~eoF~1t~~!~lf on!~~ 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 busine . There must be an affidavit that the amount stated in the certificate has been actually contributed by each separate partner. Publication mu t be made of the certificate and affidavit for ix 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 recordoJ 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. Taxe or debts due the United . t,ates. 2. Taxes or debts due the State. 3. Debts owing to employes for labor, not exceeding $100. Records. All instruments conveying or creating liens upon the real or personal property, 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 counties where the property conveyed is ·ituated, or the minor child is. Unle so recorded, such instruments are invalid as to a bona fide purchaser or encumbrancer or a articles of adoption. Redemption. Redemption from a herifl''s . ale of real estate. whether sold under a general or special execution, may be made by a creditor who has a lien on the property old, 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 pm·chaser's bid, with interest at the same rate that the judgment bears. \'Vithin the time 11amecl creditor· may redeem from each other. After nine months, and within one year from the date of sale the owner of the real e. tate sold has the exclusive right to redeem from such sale, and, in so doin!!, the debtor must pay· otr the c•laims of judgment creditors, who have made redemptions as herein above stated, in addition to the amount originally bid. Replevin. In actions for the recovery of per. onal property, the petition must be verifiecl; and if plaintiil' desire· immediate delh'ery of the property, he shall execute a bond for douhle the value of the property sought to be recovered. The defendant may stay all proceedings and retain the property by executing a bond to the plaintiff with sureties to be approved by the clerk. ales. This State has a uniform sales law. ales. including exchange and assignSales of Good in Bulk. ments, of the whole or major part of a stock of goods, or fixtures, or stock of goods ai;d fi".'tur_es, i~ _bull~. is p~esumptively fraudulent, unl~ss seven days. notice m wntmg 1, pr~".10usly sent by regi ·tered mall to ea ·h creditor of the eller, clescribmg in general terms the propert! ~o _be s?id, ru igned or ~eliv~red, and the part,i . thereto. Bot~ pa~tie must, eYef! day' pr-i_or to the . al or transfer make a detalled mventory; showm~ quantity and co. t of price to seller and ~~~1:~~t. must furni h under oath a Ii. t of bis creditors and the amount   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1886  BANKING AND COMMERCIAL LAWS-KANSAS  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ----- -  - - - -- - - - ~ - - - - - - - - - - Security for Costs. Non-resident plaintiffs may, on motion of will, unless administration upon the estate has been granted in this defendant, be required to file a bond with sureties to be approved for State; provided ;that at the time of such conveyance an authenticated security of costs either in justice court or district court. copy of such will bas been recorded in the office of the probate court in the county in which the land is situated. Statute of Frauds. No evidence except in writing and signed by the party to be charged or by his authorized agent, is competent Affidavits. Affidavits may be made in or out of the State by the relative to the following contracts: 1. In relation to sale of personal same authority and with like authentication, as depositions. property. when no part of the property is delivered and nopart of Aliens. Law prohibiting aliens from inheriting or holding rea.} the price is paid. 2. In consideration of marriage. 3. Wherein estate, repealed 1901. (See Foreign Corporations.) one promises to answer for the debt, default or miscarriage of another, Arbitrations. Persons having controversies may submit them to including promises by executors to pay the debt of decedent from their the arbitration of any person or persons mutually agreed upon and own estate. 4. For the creation or transfer of any interest in lands, may make such submission a rule of any court of record in the State. except leases for a term not exceeding one year. 5. Those not to The parties may enter into arbitration bonds conditioned for the be performed within one year from the making thereof. faithful performance of the award. Stocks and Bonds. The sale of stocks and bonds is governed by Arrest. A defendant may be arrested in a civil action upon filing what is termed a "Blue Sky Law." an affidavit with the clerk of the court that he bas removed or begun Supplementary Proceedings. When an execution has been to remove his property out of the jurisdiction of the court with returned unsatisfied, plaintiff may have an order for the appearance !ntent to defraud his creditors; or has begun to convert his property and examination of the judgment debtor; or such order may be mto cash, for the purpose of placing it beyond the reach of his creditors; obtained after execution has issued upon proof by plaintiff's affidavit or has property which he fraudulently conceals; or fraudulently conor other proof that debtor has property which he unjustly refuses to tracted the debt. apply to the satisfaction of the judgment. If any property be found Assignments and Insolvency. Assignments must be for the by such examination it may be levied upon; if in the hands of others benefit of all creditors and only discharge the debtor to the amount the court may require its delivery to satisfy the judgment, and of payments made. appoint a receiver of debtors property, forbid the sale thereof and order Equitable interests in realty to be sold. Attachment. At or after the commencement of an action an attachment may be had by plaintiff. The affidavit of the plaintiff, Taxe . Real est.ate is assessed every odd year; personal property his agent, or attorney must be flied, stating the nature of the claim, is assessed every year. All property is assessed at its actual value. that it is just, the amount afflant believes ought to be recovered, and taxed at twenty-five (25) per cent of the assessed value. All and the existence of some one or more of the following grounds: 1. road taxes and one-half of the other taxes levied are payable without That defendant is a foreign corporation or a non-resident of the State interest or penalty before April 1st; the balance is payable (but in this case for no other claim than a demand arising upon conbefore October 1st. Delinquent taxes bear interest at the rate of tract. judgment, or decree. unless the cause of action arose wholly 1 per cent per month. Taxes upon realty are liens thereon; taxes within the limits of the State). 2. That the defendant ab,;;conded upon personalty are liens upon the owner's realty, except the homewith the intention to defraud bis creditors. 3. That the defendant stead, and may be continued at such liens. if the statute is complied has left the county of his re.<.idence to avoid a service of summons. with, from year to year. Taxes on personalty are liens on the personal 4. That he so concealed himself that summons can not be served property on Con-residents, stocks of goods sold in bulk, and buildings or additions made after the assessment for taxation in the odd years. ' upon him. 5. That he is about to remove bis property or a part thereof out of the jurisdiction of the court with the intent to defraud Personal property may be levied on and sold for taxes by distress his creditors. 6. That he is about to convert his property or a and sale. Real estate is sold for uupaid taxes, after notice by publicapart thereof into money for the purpose of placing it beyond the tion, on the first Monday in December of each year, subject to redempreach of his creditors. 6. He has property or rights in action which tion in three years from the date of sale. he conceals. 8. Has assigned, removed, or disposed of, or is about Trust Companies. Domestic trust companies are organized under to dispose of his property. or a part thereof. with the intent to defraud, and governed by the general corporation laws of the State. Foreign hinder, or delay his creditors. 9. Or fraudulently contracted or trust companies doing business in this State are governed and conincurred the debt on which the suit is brought. 1O. ~r that the trolled by the general statutes concerning and relating to foreign suit is brought for damages from the commission of some felony or corporations doing business in Iowa. (See Corporations.) misdemeanor. 11. Or that the debtor has failed to pay for any Trust Deeds. They must be executed and foreclosed, and considarticle or thing delivered for which by contract he was bound to pay ered as mortgages. That is, the power of sale on notice is aboli hed, upon delivery. A bond in double the amount of plalntilf's claim is and they must be foreclosed by equitable action. required except where by the attachment affidavit defendant i · shown to be a non-resident of the State. Warehouse Receipts. Any person, firm, or corporation desiring Banks and Banking. There is no constitutional pr°';sion relatto issue elevator or warehouse certificates (or receipts must file a ing to banks, except banks of issue. Other banks are organized written declaration with the recorder of deeds in the county where under a general act. The charter, in addition to the requirements his or its elevator or warehouse is situated, setting forth the particuof the law relating to corporations, shall contain the names and lars required by statute, which declaration must be recorded by the places of residence of the stockholders and the amount of stock subrecorder of deeds. Thereafter he or it may issue certificates for scribed by each, and may contain such other provi.ion. not inconcommodities actually in such elevator or warehou e, but the certifisistent with law, as the stockholder mav deem proper and shall cates must conform to the statutory provisions. A register of be subscribed by at least flve of the stockholders of the proposed certificates issued must be kept by the parties issuing them. A bank who are residents of the State of Kan a . Board of directors violation of these provisions, issuing double certificates for the same shall be not less than five, nor more than thirteen. a majority of whom property, or selling or encumbering property included in any warehouse receipt, is made a criminal offense. There is also a criminal 1 ~;f~h ~t/~~~~~tslo~!:.t!~~ c,¥~~t:oiJ fh;iY't1:iti:1~~ejh/;t t~ statute against issuing false warehouse receipts or certificates. title. The full amount of the capital stock must be subscribed before Wills. Any person of full age and sound mind may dispose of the charter is filed. The bank shall transact no business, except the his property by will, subject to the rights of homestead and exempelection of officers. the taking and approving of their official bonds. tion created by law and the distributive share in his e tate given and the receipts of payment· on account of subscriptions to its capital by law to the surviving spouse, except sufficient to pay his debts stock, until it has been authorized by the bank commi.. ioner to and expenses of ad1ninistration. ·wms, to be valid, must be written, commence busines ·. The capital stock must be paid, in full, in cash witnessed by two competent witnesses, signed by the testator, or and shall not be less than 10.000. No bank. hall employ its money by some person' in his presence and by his express direction. ubdirectly or indirectly in trade or commerce by buying and selling scribing witnesses can derive no benefit from a will, unless there be goods, chattel·. wares, and merchandise. and hall not invest in the two competent witnesses besides them. ·wms executed outside of stock of any bank or corporation, nor make any loan on the secui·ity Iowa, in accordance with the laws of the State where executed or of the shares of its own capital, nor be the purchaser or holder of of the testator's domicile, if in writing and subscrihed by the testator any such shares. except to prevent loss upon a debt previously conare valid in Iowa. If probated in any other state or country they tracted in good faith. All such property coming into the possession shall be admitted to probate in thi - tate on the production of a copy of the bank in the collection of debts shall not be considered as ets of such will, and of the original record of probate thereof, authenticated after the expiration of six months. Banks must have on hand in by the attestation of the clerk of the court in which such probaavailable funds the following sums: In citie having le.-s than 5,000 tion was made or of the probate judge, under seal, if they have one. population. 20 per cent of their depo.·its; in cities having over 5,000 All wills must be probated before they can be effectual. s~~u;;i~ng~~ ~~rv~~~\~:Sh~~af!d":~lc~Ol~~rg~~s~-,:nf!rsb!1:sc:i such other points as the bank commissioner may approve. The other half shall con. i. t of actual cash. Ollie r · are per. ·onally liable SYNOPSIS OF for paying overdrafts. ~rot more than 15 per cent of the capital stock and surplus can be loaned to any one person. company or corporation. Penaltie are provided for fa! ·e ·tatement · and for receiving deposit when the bank L· in a failing condition. Private banks are subject to the provisio~ of the law. The bank commi. ·sioner or deputy, must make examination of each bank at least once a year. Four reports per annum are required. and the commLsioner may call RELATI TG TO for others. Banks may purchase, hold. and convoy real estate under certain conditions to the extent of one third of their caJ)ital and surplus. Shareholders are additionally liable for a sum equal to the BANKING AND COMMERCIAL USAGES par value of stock owned and no more. Depo ·it Guaranty Fund. Any bank havin~ an unimpaired surplus equal to 10 per cent of il<; capi al, may participat in the guaranty fund act. .~uch bank mw,-t depo it with the ate trea ·urer moneY Revised by KRAUTHOFi\ ~ IcOLINTOCK & QUA."T or bonds of the United 'tate., tate of Kansas, or of any township, Attorneys at Law, Kansas< ity. school di.-trict, hoard of education or city within the tato, to the (See Card in Attorneys' List.) amount of !iOO for each 100,000 of its average deposits eligible to guaranty (le;·s It. capital and surplus). It hall al o pay in cash an a.mount equal to one-twentieth of one per cent of its average deposits Acknonledgment . (See Deed'.) eligible to guaranty (le:,s it· apltal and. urplu. ,. Actions, Civil actions are conducted a required by a code or In January of each year tbe commi. loner .·hall mal·e 8.! ~essments procedure. ecuriLy for costs must be given or resident plaintiffs of one-t.wentieth of one per ceut of the aYera.,z:e guaranteed deposits may deposit 15 in Heu of bonds for cost. Non-re ident plaintliis of each bank until the cash fund accumulated amounts to 300,000. may be required to give bond for costs. The commissioner may make additional 8.!. ment of the same size not more than five in any one year. If a bank fail.·. the bank commisAdministration of Estates. Probate courts in each county have sion •r takes charge and wind up its affair • Ile !.:sue to each jurisdiction of estates. Demand. against the estate are di\"ided into deposit-Or a certilkato bearing li per cent interest. ny balance due the follo\\ing classes: I. J:t'uneral expenses. 2. Expenses of the after a. sets are exhau tcd i.-; payable out of the guaranty fund. last sickness; wages of servants; demands for medicines and medical Depo. its otherwise cured do not participate, r10r a bank':s obligation attendance during the la.st sickness and exoense of adminh,"tration. ru indorser upon bill. re-di cow1ted, not bill payable, nor moneY 3. Debts due the State. 4. Judgments rendered against the borrowed from it corr1 pondeut or others. deceased in his lifetime; but if such judgments are liens upon real Banks ar prohibited from advertising that deposit are ~uaranestate and the estate be insolvent, such judgments shall he paid teed by the State but are permitt 11 to advertl e that depo its are without reference to classification, except the first two which have guaranteed t,y the Bank Depo ·itors' Guaranty Pund. precedence. 5. All demands wit.bout regard to quality which shall be legally exhibited against the e tate in one year after granting Bills of Exchange. ( ee ~ ~ote and Bills of E:-;change.) letters of administration. 6. All demands thus exhibited after the ' Bills ot Lading. These are governed by the common law. end of one year and within two years. Demands not e.rllibited within Bulk Sale. "The sale or dispo ·al of any part or the whole of a two years are barred, except as to infants, persons of unsound mind stock of merchancll e or the fixtures pertaining thereto, otherwise or persons imprisoned or absent from the United States, who shall have one year after the removal of their disabilities. Foreign ex- , than in the ordinary cour e of his trade or business, shall be void as against the creditors of the . eller, unless the purchaser receives frOID ecutors, and administrators with the will annexed, may sell real the seller a list of the names and addr es of the creditors of the estate in this State in accordance with the power contained in the  .!ifjil~~!  THE LAWS OF KANSAS  BANKING AND COMMERCIAL LAWS-KANSAS  is  ,d  rt  le  seller certified by the seller under oath to be a complete and accurate Dce,ls of Trust in the nature of mortgages are not used so far 88 list of his creditors and unless the purchaser shall, at least seven days sale by the trustee is concerned. (See Trusts, etc.) before taking possession of the property, or before paying therefor, 0 notify in person or by registered mail, every creditor whose name pa~;~os6~~~:· ar~!fs~s~~1~~rt~:dti~e~Pgg::i~ ~g~~is~~o~~~s and address is stated in said list, or of whom he has knowledge, of depo itions. The depositions may be taken before any person authorthe proposed sale." ized to take acknowledgments. Each witness must sign his own In lieu of notice may give bond twice amount debts shown by deposition. The notice must be attached to the depositions and sellers affidavit signed by two resident sureties, who justly for propinclosed with them. The depositions should be commenced on the erty in excess of the obligation of the bond the bond to be approved day named, and some portion of a deposition taken on each succesby and filed with the clerk of the district court of the county where sive day. Sundays and national holidays not being regarded. If the property sold is located. taken by interrogatories and cross-interrogatories, under agreement Chattel Mort~ages. A mortga&-J of personal property. where the or otherwise, each interrogatory and cro -interrogatory mu t be property is not immediately delivered to the mortgagee who retains put to each witness and answered so far as he can answer it, and the actual and continuous possession thereof, is void as against creditors answer written down. If the depositions are taken before the mayor, of the mortgagor and as against subsequent purchasers and mortgages in good faith, unless the mortgage, or a copy thereof is filed in the office :J>~~·d~; h1~=!1°s~~). ap&~~l;~ !1~/J~~:~i~ott~~fse:~: of the register of deeds in the county ,vbere the property is situated, a seal. a certificate must be annexed, under the seal of the county, or or if the mortgagor is a resident of the state, then of the county of the great seal of the State, that the officer by whom the depositions which be is at the time a resident. A mortgage so filed is in valid were taken was. at the time of taking the same, such officer as he after two years unless within thirty days next preceding the expiration represents himself to be in his certiflctae. This should be attached of such two years and each two years thereafter the mortgagee, his to the certificate of the officer (not pos essing a seal) who took the agent or attorney, makes an affidavit exhibiting the interest of the depositions. mortgagee in the property and showing the balance unpaid on the Descent and Distribution. The homestead is the absolute debt, and flies the same in the same manner as the mortgage. In property of the widow and children-one-half in va.lue to tbe widow, case of default the mortgagee may sell in the manner provided in the and the other half to the children, when both survive. Tbe homechattel mortgage. stead can not be divided or sold by an act.ion for partition until all A mortgage of exempt personal property is hn·alid unless executed the children attain majority. One-half of all real estate owned by jointly by husband and wife where that relation exists unless it be husband during: coverture, and not conveyed by husband and wife, given for the purchase price of the mortgaged chattel. nor sold at judicial sale. and not nece .. sary to pay debts goes to the Collaterals. Governed by the common law on Bailments and wife in fee simple; except of land sold by husband whose wife never Pledge. before sueh conveyance resided in the State. Remaining real ·tate Conditional Sales. Conditional contracts, by which the ownergoes to the surviving children, and living is. ue of prior deceased ship remains in the party proposing to sell unt,il the purchase price children, children taking per stirpes, in equal shares, or, if none, the is paid, are treated as chattel mortgages and must be filed in the whole estate goes to the widow. For want of wife or child or living office of the register of deeds in the same manner as such chattel issue of deceased child the whole estate goes to the parents. Tbe rules mortgages but remain in force without the renewal affidavit required applicable to widow of deceased husband apply to hm~band of deceased in chattel mortgages. wife. fllegit.imate children inherit from tbe mother, and also from Contracts. All contracts which, by the common law, are ~oint the father, if his recognition ha.s been general and notorious, or in writing. When a child would inherit from either pa1·ent, such parent only, shall be construed to be joint and several. The use of private seals in written contracts (except seals of corporation) is abolished, ,\ ill inherit from the child. Pe1-sonal property descends in the same way as real e ·tate except exempt household furniture is sole property a?~ in suits upon written contracts, as to the performance of conof surviving spouse. Property descending by law or will is subject to ditions precedent, it is sullicient after setting out the contract to an inheritance tax, varying in percentage according to relationship and allege generally that plaintill has fully performed the contrnct. amount. (See Exemptions.) Conveyances. (See Deeds.) Dower. Dower is abolished by law. (See Descent and Distri- • Corporations. Corporations are formed under a general statute. bution.) Prospective corporations must apply to the chart1::r b9ard for a charter. Evidence. (See Testimony.) A $25 application fee must accompany an application. barter fee is one-tenth of one percent of its aut,horized capital stock upon the Executions may be ordered as soon as judgment is obtained if stay first Sl00,000: one-twentieth of one per cent _on all in exce. · of $100,000. has not been granted or supersedeas given. Executions rwming to Forms for applications and charters furmshed: by the S~cretar_y ~f the shcrilr or the county where the levy i.~ tn be made, may be levied State. Every corporation must commence active operat10ns. within on property in any county of the State and issue only out of court one year after filing its charter with the secretarr of state; failure to where Judgment obtained except where abstract or transcript of justice do so works its dissolution. Duration of charter 1s fifty years. <?r less, judgment flied in district court of same county as that of the justice as m~y be specified in the charter. No corporation (ex~ept ra1lrC?a~. court, execution will issue on said judgment only out of said district bank1!1g, and building and loan), can ~ommence _buune: ;> until it court. There is no stay of execution in the district court except by file with the secretary of state an affidavit made by 1ts pre~1dent 11:nd supersodeas bond which may be given on appeal. In justice's courts, secretary setting forth that not less than 20 per cent of its capital by filing bond, stays of execution are granted as follows. On any stock has been ·paid in actual cash, or property equivalent theret?, judgment for $20 and under, thirty days; over $20 and under $50, but a corporation de facto exists if the 20 per cent bas been paid sixty days: over $50 and not exceeding 100, ninety days: over $100, even though the affidavit has not been filed. The name adopted one hundred and twenty days. Real estate is only subject to execumust indicate the nature of the business. The corporate name must tion issued out of district court of county wherein judgment rendered begin with the word "the" and end with the word "corporation." or abstract or transcript from justice of the peace filed. Executions "company," "association," or "society," but thi docs not apply are liens on personal property only from time of levy. Real estate to banks, benevolent or religious societies. There mw,t be at least sold on execution or order of sale, giving the debtor eighteen months five directors, three of whom must be resident· 9f the State. The in which to redeem. The debtor is entitled to posses."ion of the annual statement shall be made by each corporatwn for profit or on property and rents and profits, during the period provided for redempbefore Ma1·ch 31st of each year, showing a complete detailed statetion, except in case of waste. Receiver may be appointed to present ment of the condition of such corporation, on the 31st day of December waste and may use so much of rents and profits as are necessary to next preceding. Pailure to file this report within ninety days from repair waste and pay costs of receivership. Surplus if any to be paid time fixed works a forfeitw·e of the charter, and a penalty _of $-'> for to judgment. debtor free from the lien of any judgment. each day the report is delayed. Tl_10 capital s~o.ck can be mcrea.s~d Exe1nption . Homestead of lG0 acres of farming land, or of one to an amount not exceeding throe tunes the ongmal an;1ount fixe~ m acre within an incorporated town or city, with buildings thereon, the charter and to any further amount of bona fide paid up c~p1tal. appurtenant to the u.·e of the propert:r as a homestead, lmlimited in pap ital stock may also be decreased. !'referred. s;ock can be 1 · ued value. .All household goods and wearing apparel; two cows, ten lf all the holders of common stock consent .. Dn·1dend:s can not be hogs, one yoke of oxen, and one horse or mule or in lieu of one yoke declared from any source other than that which re:·ult from profl~s. of oxen and one horse or mule, a span of horses or mules, and twenty The corporation can borrow money not to exceed the amount of its sheep ancl their vool; necessary food for the support of such stock for capital stock. one year, one wagon, two plow·. drag, and other fa:r1ning utensils, not Cost~. (See Actions). Corporations (except ba~ks, insurance, exceeding . :lO0; grain, meat, vegetables, groceries on hand, etc., building and loan companies and t!1ose not ~r!{amzed lo: -~rofi,t) m~t necessary for the family for one year: the tools and implements of Pay an annual franchise tax on paid-up capital as foll'?'\ :s. ~ ot _over anv mechanic. miner, or other person, kept for the purpose of carrySl0,000, IO: over $10,000 and not over 25,000, .• 2.,: over $2u,000 ing ou his busine: , and in addition thereto stock-in-trade not exceedand not over 50 ooo 50· over 50 000 and not over 100,000, SlO0: ing S-tOO in value; library, implements, and office furniture of any over 100,000 and not o;er $250.000, 125: over 250,000 and _not professional man necessary for carrying on such trade. Also personal over Sfi00,000, . 250: over S500,000 and not o er SI,000,000, ;,0o: earnings of the debtor earned during three months preceding the over $1,000,000 and not over $2,000,000, 1,000; over 2,000,000 garnishment or attachment, and three months' pension money, where a~d not oyer S3,000,000, $1,500; over 3,000.000 and not over such earnings or pension money is necessary for the support of the $0,000,000, $2,000; over $5,000,000, $2,500. debtor's family, but 10 per cent of such earnings may be required to I.Je paid in and applied on the judgment. Courts. Terms and Jurh,diction. District. cour~ ·,. hol~iDf:!: t~vo_ to ~hree terms a year in every county, have general original Juri.·d1ct19n Foreign Corporations. A foreign corporation doing business in 1D law and equity. Regular terms of the probate co!lrt are _held m this State IlllL'-'t file a certified copy of its charter or articles of ineach "0Unty on the first. Iondayiu each m~ntb and pe, 1a.l o~ a<lJo~~d corporat,ion with the secretary of state and pay to the tate treasurer t~rm:s may be held as busine"· may reqmre. ,, Ju_ t1ce JUr~s~lct1on_ m the same fees upon the amount of capital invested or used in this civil actions for the reco •ery of money, .... oo. w recO\eI specifi:c sLate as a domestic corporation, when it receives a certificate authorPersonal property not valued in excess, ...,300. The supremo court 1s izing it to do business and is then subject to substantially the same pro, isions, judicial control, restrictions and penalties as a domestic the court of last resort. corporation. Annual statements must be filed on or before March Creditors' Bills. creditors may bring an action in the nature of 31st. giving condition on the 31st of December preceding. If a a creditors' bill to marshal assets or set aside fraudulent conveyances foreign corporation fails to file with the secretary of state the stateas in 01,her states. ment requir d by law within ninety days after the time provided for, Days of Grace. Abolished. • it ri.,ht to do business in the State i · thereby forfeited. A penalty Deed. . No particular forms of coll\·e)'.ances. are pre.·c~ibed. As is imposed of 5 for each day this report is delayed. Foreign cora rule the form used in other Siate:s 1s su!lic1ent. .As between porations must pay an annual franchise tax on that portion of their tho parties conveyances are v~lid wit~iout bt:mg rcco,rded. Deeds capital represented by its property and business in Kansas on the 1;1ay be valid as against attachmg cred1t_ors without I?. ing recorded. same basis as domestic corporations. Failure of foreign corporations 'I he wife should join with her husband m t!1e conve~ anc.e,_ an~ any who transact business in Kansas, other than interstate commerce conveyance or mot·tira~e of the hon_iestead without her Ul}ltmg m the to comply wit.11 this law renders. them subject to ouster and receiversame i absolutely •oid. If the wife has never re ided m the , t.ate ship prm•ecrlings on tllo part of i he State hut does not, now affect t,he her signature is not nece sary. Grant~rs need not attach an:, . eal right of such forei!?n corporation to sue in the court of this 'late. or scroll to their si"nature ·, and no w1tne. ~ are ncce,,. ary unle s Fraud. ("'ee Attachments. Arrest, and A:signment<;.) f,,'l'antor· are unable ~to write. Corporations con, ey by dE;f]d, sealed Garnislnnent in District Courts. At or after the time of With the <"orporate seal and si~ned by pre. i<lent, vice-pr ·1dent. prebeginning an action to recover damages founded upon contract, ~iding memher, or trustee. The ackno":ledr;mcnt mu~t b_e before a judgment or decree, or after the issuance of an execution and before Judge or clerk of the district c,mrt bavmg a seal. a Justice of the it is returned, if the plaintiff cause to be filed with the clerk an affidavit Peace, notary public, county clerk, regi.-ter of deeds, mayor. or cJe_rk stating the amount of his claim over and above all offsets, that he o_f an incorporated city. Every_ no~ary pub~lc shall 3:d<.! to bis ofl1c1al believes that some peri-;on, naming him, indebted to, or has property signature tbe elate of the e.·p1rat1on of his co_muu 1011 as notary in his possession or unde1· his control belonging to the defendants, and public. In cases where the acknowledgment 1s made out of the State It must be made before a court of record, a clerk, or other that such defendant bas no property liable to execution sufficient ofllcer having the seal thereof, a commission r of deed for ransas, to satisfy his debt, and that tbe indebtedne · or property so held is justice of the peace or notary public, or before any consul of the , not by law exempt from seizure or sale upon execution, the clerk United State. resident in any foreign country or port. Deed. and sball issue a garnishment summon.. In justice courts the affidavit mortgage must be recorded in the office of the register of deeds of differs from that acquired in dist,rict court actions only in that afflant the county in which the land is situated, or they will be void as to states that plaintiff i. in danger of losing his claim, in lieu of the subsequent grantees in good faith without notice. allegations that the defendant has not property subject to execution  fJ'~~=  g~\f!hiff  us tY eY  ip, he to an its ts its  o.  ize is-  cb ue id. on eY  1887   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1888  BANKING AND COMMERCIAL LAWS-KANSAS  :.\Torti;:-ages. A mortgage of real estate, to be valid as against suh:;equent hona-flde purchaser · without noLice. must he duly acknowlectrwd and re<"ordecl in the ofll<'e of the register of deeds of the county where the land is situated. :\Iort!!'.ae;es may be Yalid as against attaching creditors without rerording. :'.\Iortgages may be di"ehargcd on margin of record by mortgagee or attorney or assignee by duly acknowledged power of attorney or assignment in presence of reg-istPr, or by . atisfaciion entered on the instrument when copied on the margin h:,.' the register ; or hy an independent release duly arknowledged and recorded. l\'ife must join in all mortgages except those for purchase money, except in cases where .. he has never heen a resident of the State. Mortgages are fl wclosed by suit only. By an act of the Legislature which took efl'ert :'.\clay 18, 1893, real estate sold under foreclosure of mort1,r nge is subject to eighteenmonthsredemption. Ir the mortp;age foreclosed is on abandoned property or not occupied in good faith and the court so finds, six month only is allowed for redemption. Thi act does not apply to morte;ap;es executed prior to the date the act took effect. \Yhen a mortgage is a,;;signed the a. signment should be acknowledged and recorded. If the a.%ignment was executed prior to l\larch 15, I ·99, it can he recorded whetller acknowledged or not. and under the laws must be recorded within four months from that date or payment to the recent owner of the mort::rage without notir-e of the outstanding assignment, will be a romplete defense to an action thereon. (For Forms, see Deeds; see Executions.) ( For Mortgages on Cb at tels, see Chattel :'.\Iortgages: see Executions.) Notaries. Notaries are appointed by the novernor and serve for four years. They give bond in the sum of 1,000 and are required to affix the date of the expiration of their commission to all certificates. Notes and Bills of Exchange. Uniform ~ •egotiable Instrument Act took effect June . 1005. Partnerships. Limited or special partnerships may be formed for any le:zal purpose except hanking or in urance. Huch partnerships may consist of one or more persons who are general partners, and one or more who contribute a ·pecific am01mt of capital and shall be called special partners. The . pecial partner are not liable for the debts of the partnership beyon<t the amount contributed by them respect,h·ely but the name. of the special partner;; mu.·t not, be used in connection with the business. Such a partnership is formed by executing a certificate stating the name, the nature of tbe business, the names of the general and special partners. and their place of residence. and the amount of capital contributed by each special partner, and the period when the partnership is to commence and when it will terminate. The certificate must be acknowledged and filed and recorded in the office of tbe cotrnty clerk. Jurisdiction. (See Courts.) Power of Attorney. ( 'ee Deeds.) Probate Law. ( ee Aclmini ·tration.) License. Agents of insurance companies are required to take out licenses from the superintendent of insurance. Cities are authorized Protest. (See Notes and Bills.) to enact license ordinances and certain cla ses of business are required R<'cords. (See Deeds.) to take out a !icon e. Redemption. (See ~Iortgages.) Repte, in. The plaintiff in an action to reco\·er the possession of Liens. Mechanics, material-men, and laborers, both original conspeciflc pPrsonal property may claim the immediate delivery of the tractors, and sub-contractor , and laborers of sub-contractors are same by filing affidavit and givin~ bond double the sworn value of entitled to obtain lien upon real estate for labor performed or material the property. Property replevined mu.st be held by the officer taking worn statements furnished in tbe erection or repair of any building. it twenty-four hours, during which time the parry from whom the itemized as fully as practicable as to the amount of the claim, for property is taken may give bond to the plaintiff for not le ·s than what and when it was rendered and by whom, giving names of condouble the amount of the value thereof conditioned for the return tractor and owner and description of property and date of last material of the same or its ,·alue in case it shall be adjud~ed the plaintiff is furnished, must be filed in the office of the clerk of the court. Original entitled thereto, and thereupon may ha\"e tbe property returned to contractor's lien claim must be fl.led within 4 months from date of him. last materials, or labor furnished and others entitled to lien within sixty days aft,cr last materials or labor fllrnished. Lien claimants Senice. AJI sen·ice of proce. is made by the sheriff or by conother than original contractors, must give immediate notice of filing stables. or by ome one specially authorized in any particular case, of lien claim to owner or person in possession of the premises, where and must be issued in the name of the state with the ·ea! of the officer that may be done, otherwise must po ·t notice on the premise . i suing the ame affixed. Supreme court has rendered notice almost unnece sary. Action to Suits. (See Action .) foreclose lien must be begun within one year after filing claim. LiveryTaxes. One-half tbe annual levy for ta.·e,, become. due Decemstable keepers, forwarding merchants and common carriers have liens. 20, and if not paid the "bole amount becomes due and there is a ber hand in funds and papers on lien have Attorneys (See Judgments.) penalty of five per cent added. If the whole amount is paid there for general balance of compensation and have lien on moneys in hands is a rehate of ,5 per cent on the lru t half. If not paid by June 20 of clients adversary due client in any matter, action or proceeding, in which the attorney was employed for service therein from the time , the succeeding year, another 5 per cent penalty is added. ·when tho tax upon real e tate is delinquent it is old for taxes on the fir t of service on the adverse party. in the manner of a summons, of Tuesday in eptember following. After sold it bears interest at the written notice of the lien. rate of 15 per cent per annum and the ame rate upon subsequent Blacksmiths, horseshoers, wagon makers and garage proprietors taxes paid and indor ed on the tax certificate. The tax lien attaches given lien for material and labor in their work perfected by filing to real estate on Tovember l, in the year in which the tax is levied. statement of lien within sixty days after the services in the office After land is sold for taxes, it may be redeemed wiibin three years of the register of deeds of the county where performed-foreclosed from date of sale. The interest of a minor may be redeemed at any in same manner as chattel mort!!"age. time within one year afl,er he attains hi majority, and idiots and Li ns similar to ordinary mechanics lien arc girnn by statute for insane per ons may redeem within five years after the ale. materials and labor furnished on oil leases in their development, and are foreclosed in like manner. Trust Companie . Trust companies may be orgamzed with a Limitation of Suits. An action for the recovery of real property, capital of not Jes. than 100,000, and may receive money" iu trust sold on execution or by executors, administrat.ors, or guardians, and execute any trust committed to them, either by any person or brought by the execution debtor, or the heirs, ward, or guardians. by order of any court, and may execute or guarantee any bond required within five years after the deed is recorded. Other actions for , by law to be given in any proceeding in court, and act as ag-ent for recovery of real property, within fifteen years. On official bonds the investment of mone)', and for the purpose of i.~suim~. registering, and contracts in writing, five years. Contracts not in writing, three transferring or count rsigning certificate of stock, bonds or other years. 'l'respass, detinue, replevin, injuries not arising on contract, evidences of debt, act as guardian and guarantee the fidelity aud perand relief on the ground of fraud, two years. Action for libel, slander, formance of duty of persons holclin::r public offices or private trusts, malicious transaction, or false imprisonment upon a suit for penalty and certify and guarantee title to real estate and sell all kinds of or forfeiture, one year. Action for any other relief not before negotiable paper, and receive depo-;it · from banks and other trust companies or public omcer ·. 'l'bey are required to keep on hand 25 provided for, flve years. In any case founded on contract, part payment, or an express written acknowledgement or promise, renews per c nt of deposits subject to check and 10 per cent. of time deposits. onin the same manner as state banks. Each direcror musL be a stoclcthe contract. The statute runs from the date of uch renewal. tractual limitations differing from the statutes are void. holder in the sum of not Jes,· than 1,000. Tru.st companies are under the supervision of the bank commissioner and subject to his l\larried ,vomcn. The real and personal property owned by a examination. woman at the time of her marriage, and any property which comes Trust. and Power . All tru. ts concerning lands must be created her except person to her by descent. devise, or bequest, or gift of any in 11Titimr except ·uch a ari. e by implication of law. husband, remains her sole and .·eparate property notwithstanding her marriage. and is not subject to the dispo al of her husband or liable \\'arehou e Receipb. Practically tlle Uniform "Warehouse for his debts. ~1arried women may soil and convey their real and Receipts Act." personal property and enter into any contract with regard to the Any person of full age a.nd sound mind and memory. haYWills. same in the same manner and to tlle same extent a,;; a married man ing an interest in real or per.·onal property, may giYe and deYise the 'he may sue and be sued in the may in relation to his property. person by last will and te ·cament lawfully executed. any to same or trade any on carry same manner as if she were single. Rho may subject. neverthele.-;.s, to the rights of creditors and t-he estate giyell business, perform labor or sen·ices for her separate account, and her a spouse by statute. Will. · mu. t be in writing, signed at the end bY earnings or proceeds from labor, trade, or busines.,;; remain h rs parate the testator, or a.not her in his nresence and h;\' his express direction. and subscribed in his pre. enc aud at his r quest hy t ,, o or more ff~f~rJ[ria~~dis~~~ J!b~ 1~r 1~e~ 1~b!!tt~c~>lre~ei~ i~e~~~P~~i\enr,g~t \\ itue. ·st•~ \\ ho saw him sul>. ·rilJC' or lwarcl him ac·kno\\ Iccl~l' com111'tent ness undertakings by virtue of the marria~e relation. , he may also it. \\·ills ext>eutc(i ,,ithout the .~ tate in th• 11m1111Pr pre c·rihed l>Y tlld contract with her lmsband with the same efiect, as though the married the place ,,h •re execut d or of thl' tl'stator·s domicile or of oithcr law relation between them did not exist. ofth HtatcofKansa · arcdt•clarcdlei..:all)· c ecutPcl. <' om1,liancewi~h requiremputs should appear in tho ,litnP.,..,ing c-lau e. A \\Jlfl th1• ].\,fine~ and :\lining. The law provides for the appointment of a. ex ·ute I, pr,wP1l, and allow d in anoth r State, in t!Je court o mine inspector with authority to require mine owners to provide original probate. a t·cording to the law· of that :tall', may, rl'lati\C certain facilities for the health and safety of per. ons employed and to property in thi, Hta.te, he a1lmit t d to re .. ,,rd in the proha.te court compel proper ventilation, regulate excavation. , air courses, etc. of the eounty in wl kh .·uch propl•rty L· s ,twltt>cl , by prnduC'in~ an This !av, is quite elaborate and violations of the safety provi ions of the act--resulting in injury to employees, usually re ·ults in li,1.hllity authenticated c-npy of tlte will and orclt: r o prob.ill' admittln!s it.t~ even where the l{ansM "-'orkm(•n's Oompensation Act doe not prohato by the pro1 E'r C'ourt of the cc unty au<l . tatl or '"l11cf apply, on the part of the mine opera.tor to t.he employees because of i~ i:\~~~;1ilfi~:te~l the positive duty resting on the operator to C'omply with uch statutory provisions. the pro Late cn1rt and r •~orde I. sufficient, to satisfy the debt. In the district courts bonrt in double amount clairnecl is required on garnishments hefore jucl!m1cnt. P ·<'ept whore defendant is a non-resident. No bond required in justkc courts. Guaranty Companies. ( cc Trust Companies. ) Holidays. The following are legal holidaYs : Januarv 1st. known as .,.ew Years Day. February 12th, Lincohi's Birthday. February 22nd, ·washington's Birthday. May 30th . 1\lemorial Day. July 4th, Indepem1ence Day. First Monday in Reptcmber, Labor Day. O<'tober 12th, <'olumbus Day (but does not affect commercial paper). Deeember 25th, Christmas Day. If any of these days fall on Sunday the next secular 01· business day is a legal holiday. Legal or business proceedings had on a holiday, excepts Sundays, are valid. Husband and Wife. (See Married Women.) Injunction . 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 p;iyen to protect the defendant against any loss in case the injunction is wrongfully obtained. ln 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 IO per cent may be agreed upon. Excess of 10 per cent is forfeited, and in addition thereto there shall be deducted from the amount due for principal. with lawful interest, an amount equal to the intere t contracted for in excess of 10 per cont. The legal interest originally contracted for continues until the debt is paid, and no additional interest can be charged by way of penalty for default except from date of default. A purchaser of a negotiable note in due cour ·e take · t.he note ftee of the usuriou~ taint. Judgments. Judgments of courts of record are liens on tbe real estate of the debtor wit.hin the county from the first day of the term at which the judgment was rendered; but judgments by confession and judgments rendered at the same term during which the action was commenced are liens only from the day on which the judgment was rendered. Judgments lose their priority over subsequent, judgments unless execution is issued and levied within one year after judgment. A certified copy of the judgment appearing of record in tbe district court may be filed in the office of the clerk of the district court of any other county and the judgment will then be a lien on real estate in that county. Abstracts or transcripts of justice court judgments may be filed in the district court of the same county, aro liens on real estate in such county from the date of filing. after which executions i ·sue only out of. aid district court on such judgments.  ~~1!~~~1:~·,1 1:~,1~'.ro~~feP!~~iftt~ON1 -~t 0r-::i i1t0:~0or  BANKING AND COMMERCIAL LAWS-KENTUCKY  SYNOPSIS OF  THE LAWS OF KENTUCKY RELATING TO  BANKING AND COMMERCIAL USAGES u-  or ed  "fl-  nt ed ps nd all be m ed by ss, of ial nd nd  Prepared and Revised by MooRMAN & WooDWARD, EsQ., Attorneys at Law, Louisville. (See Card iu Attorneys' Li t.) Acknowledgment . Deeds executed within the tate may be acknO\vledged before the clerk of a county court or a notary public, or may be acknowledged before and proven by two ·w itne. es. Deeds executed wit,hout the State and within the United 'tat.es must be acknowledged before the clerk of a court or his deputy, notary public, mayor of a city, secretary of state commissioner of deeds, or judge of a court; if executed without the United States must be acknowledged b erore a foreign ministe1·, consul, or secretary of legation of the United 8 tate. , or the secretary of foreign affair. , or judge of a superior court, obf the nation where the deed shall be executed, attested in either case Y the officer's eal of office. "\: hen the acknowledgment is taken, thI?-e officer may simply certify that the deed was acknowledged before un, and when it was done. Actions. Actions are commenced by filing in the clerk's office of ~he proper court a petition setting forth the cause of action and causon-resi~g a summons 01· a warning order to be i ued thereon. and corporations, other than banks, created by laws of this setnts ate, are required to give security for costs. Administration of Estates. Personal estates of deceased persons must be administered by the executors named in the will, or if these ref:iise to qualify. or none are named, then by an administrator apP0t_nted by the county court of tne county in which the decedent resided at the time of his death. Administrators and executors are required to give bond for the faithful performance of their duties and ,wit,h surety unless otherwise directed l?Y _the will. They are required to file an inventory of the estate within three months and to make settlement within two years from the date of qualification. Affidavit. . An affidavit may be read to verify a pleading, to prove the service of a summons, notice, or other proce s, in an action; to obtain a provisional remedy, an examination of a witne s, a stay of proceedings or a warning order; or. upon a motion. An affidavit ~ay be made: 1. In this State, before a judge of a court, or a JU~tice of the peace, notary public, clerk of a court, or master-commissioner. 2. Out of this State, before a commissioner appointed by the governor of this State; or before any other person empowered by a commis. ion directed to him by consent of the parties or by order of the court· or before a judge of a court, a justice of the peace, a mayor of a city,' or notary public. Appeals. Appeals ma.y he taken from a justice's court to the quarterly court reQ;ardless of the amount in controversy; from the quarterly court to the circuit court when the ·\'alue in controversy, exclusive of interest and cost , exceeds ,.25; from the circuit court to the court of appeals as a matter of right in all c~ es in which the title to land, or tbe right to an easement therein, or the right to enforce a ~tatutory lien is directly involved, and in all cases when the value m controversy exclusive of interest and co t , amount to 500 or more, but when such amount in controversy exceed · 200 and is less than 5500, the party deserving the appeal, may upon payment of the tax and filing the record in th clerk's office of the Court of Appeals, 0  ted use  avthe ted. ·yen  bY  ion. JOI'!'  (I"(' [11~  c or dth "ill  t of th·e  ourt an it (0 J1ich eof. e or y  0  0  ri1:i~; ~ ili°e r~~tJh3/P!eea~~ee :;~~~~d~ho~1Jhioi ~~t g~~grer;~ motion shall be overruled without a written opinion. and no petition for a rehearing will be entertained, but if the court. hould be of opinion the ends of justice require the judgment be reversed then the appeal will be granted and a written opinion will be flied. • ·o appeal lies to the court of appeals from any judgment of a quarterb'. city, police, fiscal or justice's court, nor from any judgment of the county court. ;1\rbitration. All cont,roversies which might, be tho s~bject of a suit may be ubmitted to the decision of one or more arbitrators, or two and their wnpire. Tho submi.. ion may be in writing or by entry of record, and the agreement of ubmi ion shall _be binding ou the Parties thereto, if it stat s t,he matter to te subm1tte<;1 an~ who are to be the arbitrators. Each arbitrator and the umpire, 1f one b~ chos n, shall take an oath to decide \he !natter in contr~ver y fairly and impartially according to law, Justice and the equity of the whole case. The award must be in writing signed by each arbitrator and the mnpit· , if any, and shall be a anal eLtlement of the C?ntroversy between the parties. A copy _of. the award must be given within a reasonable time and shall be bmdmg upon both. Arre t. An order for the arrest of the defendant. shall be made by the court in which the action is brought or pending, at its commencement. or at anv time before judgment. if an affidavit of the Plaintifl' be flied in hf office showing: 1. The nature of plaintiff's claim. 2. That it is just. 3. The sum or value, which the afflant helieves the plaintitr ought to recover. 4. That the a!Iiant believes, !'}ithcr that the defendant is about to depart from thi · State and with mtent to defraud his creditors has concealed, or mo,·cd from this State, hi property or so much thereof that the proc ss of the court after judgment can 'not be executed; or that the defendant bas money, o~ securities for money, or evidences ?f debt, in the po ...ession of himself, or of others for his use, and 1s about to depart from this State without leaving property therein sufficient to sal.i:fy plaintiff's claim. Assignments and Insolvency. 'ubject to -'- ·ational Bankrupt ~aw. Every voluntary assignment made by a debtor to any person m trust, for his credit.ors shall I e for the benellt of_all the creditors of the assi~nor, in proportion to their respective claims. after the payment or the expenses of the tl'ust; except that property con eyed by the deed of assignment, and upon which there is a Yalid lien, shall be applied first to the di·charge of the lien debt: and except that debts due by the assi~nor as guardian, committee, tru tee of an expre. ·s tru t · created by deed or will, or a pe1 onal representative shall be paid i11 full hofore the grneral c1·e 1iitor,; r eiYe anvthino-' 'l'he intent of the a. signor in making the deed of as. ignment s:ia1i   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1889  not invalidate the dee , unless he be solvent, and it appear that the assignment was made to hil1der or delay crotlit,ors. The deed vests in the assignee the title to all tbe estate, real and personal, belonging to the assignor at the time of making the a. ·sigument, except that property exempt by law shall not pass unless embraced in the deed. lf the assignor, before making the deetl, shall have made a preferential or fraudulent transfer, conveyance, or gift of any of his property, or fraudulent purchase of any property in t.he name of another, the property so fraudulently transferred, conveyed, or purchased shall vest in the assignee, and it shall be his dut.y to institute such proceedings as may be necessary to recoYer same. If, upon demand, he rel'w;es to do so, any creditor may, and t,he property so recovered hall become a part of the estate, and be distributed as other a.-;sets. If creditors representing one-half in number and two-thirds of the amount of debts against the estate shall so request in writing, the court shall remove the assignee and appoint another in his stead. Attachments. The writ may issue against a defendant who is a foreign corporation or non-reisdent of the State; or has been absent from State four months; or has left the State with intent to defraud credit,ors; or has left his county to avoid service of summons; or so conceals himself that summons cannot be served; or is about to remove, or ha remoYed his property or material part out of the State not leaving enough to satisfy claim of plaintifl' or defendant's creditors; or has disposed or is about to dispose of or sell his property, or permitted t,o be sold or disposed of with fraudulent intent ot cheat, hinder or delay creditors. Also in action for money due upon contract judgment or award, if defendant have no property in State subject to execution, or not enough to satisfy plaintiff and collection will be endange1·ed by delay in obtaining judgment and return of nuJla bona. Abo in action for personal property ordered to be delivered to plaintiff which as part thereof has been disposed of. removed, or concealed, o that order of delivery can not be execut~d. Affida'\'it as prescribed by civil code and bond required, except no bond required in action upon nulla bona return. Banks. It is unlawful for any person or persons, either as individuals or co-partners to engage in or conduct the business of private banking in this co=onwealth.. Corporations may be organized to conduct both a banking and trust company business. The boards of directors of banks and trust companies doing business in this State have full power and authority to flx the hours of opening and closing of said banks and trust companies, _and may provide that on at,urday of each week such hour of closmg be as early as twelve (12) o'clock noon. A Depart,ment of Banking, providing for a Banking Commissioner, deputy commissioner and examiners of State banks, and pre cribing their duties and for the examination of all financial institutions organized and doing business under the laws of the State was created by a law effective July 1st, 1912. Chattel l\.lortgages and Deeds or Trust. No deed of trust or mortgage, conveying a legal or equitable title to real or personal estate, shall be valid against a purchaser for a valuable consideration, without notice thereof or against creditors, until such deed shall be acknowledged or proved according to law, and lodged for record. It is a penal o:fl'ense, puni,;hable by fine and imprisonment, for any person to sell any personal property, on which there is a mortgage of record, with the intent to prevent the foreclosure of the mortgage and a sale of the property. Checks. The issuing of checks in this State upon banks where the drawer bas not sufficient funds on depo it to pay same is now a criminal offense. If amount under $20.00 it is a misdemeanor, and the penalty 100.00 or jail confinement one to thirty days, or both such fine and imprisonment in discretion of the Court or Jw·y. If the checlc be for $20.00 or more, it is a felony and confinement in penitentiary for not less than one or more than two years, but if the drnwer of the check shall pay same within twenty days after receiving notice of the dishonor of the check, he shall not be prosecuted; or if the prosecution bas been begun, it shall be dismissed at cost of the maker of the check. Contracts. A seal or scroll is in no case necessary to give effect the upon stand writings to a deed or other writing. All unsealed same footing with sealed writings, having the same foree and e1Iect, and the same actions may be founded upon them. The State or county seal, or the seal of a court, corporation, or notary to any wrilb1g has not, however, been dispensed with. Con,•o;yances. (See Aclmowledgments.) Corporation . Formed under the general laws for transaction of pecial regulations prescribed for foreign corany lawful business. porntions doin~ business in the State, and for banking, building and loan, trust, insurance, and railroad companies. Cumulative voting pre ·cribed. Stockholders in banks, trust companies, guaranty companies, investment companies and insurance companies are liable equally and ratably, and not one for the other, for all contracts and liabilities of corporation to extent of the amount of their stock at par value in addition to amount of suer stock; but persons holding stock, a.s fiduciaries, are not personally liable, but estates in their hands are in same manner and to same extent as other stockholders, and no transfer of stock operates as a release, of any such liability, existing at time of t,ran fer. provided action t,o enforce the liabilit,y be commenced within two years from time to the transfer. Articles acknowledged and TC'corded like deeds in county in which principal place of businef<S is situated. and a copy thereof fited and recorded in the office of the secretary of State. After uch filing and recording, and payment to tate of license tax of one-tenth of 1 per cent on its capital stock, corporation is deemed organized; but, before tran acting business other than with it own st,ockholder , at least 50 per cent of stock must in good faith be subscribed, payable at such time· as board of directors may require. In 1!)20 Kentucky adopted a "Blue Sky" law prohibiting the sale of stocks or securities (wi.th named exceptions) until approved by t,he State Banlcing Commissioner, who requires full information on blanks furnished by his office. Courts. General civil and criminal juri diction is vested in circuit courts which hold terms in each county as provided by statute. Credits. By an Act approved March 14, 1!)14, it is provided that a person who shall h-nowingly in per on or through any agency make any false statement in writin~ with int.ent it shall be relied upon, respect,ing I?-is fina~cial co_ndit.ion, or means or ability to pay, for t,he purpose of procurmg delivery of personal property, the payment of ca.sh, the making of a loan or crctlit.. or extension of credit and procures upon faith thereof either or any of the things or benefits mentioned, ~hall be g~lty. of a felouy ancl upon conviction, shall be confined m the pemtentiary not less than one nor more than five years. Dass of Grace. ( ee Notes and Bills of Exchange.) Depositions may be taken in all equitable acUons, and in ordinary or common law actions, where witness resides twenty miles or more from place where court ~s held, or is absent from tate, and in many other <;a.:-;es enumerMed 1r.i the statute _where the witness is privileged. Depos1t1ons are taken either on notice to oppo ite party or upon wri~ten interro~atories. The ?rdi~ary method of taking i upon not~co, but where place of takmg 1s more than one day's travel by orJ1_na_ry m thorls and morC' than one hun<lrerl miles from the l)lac-e of s1ttmg of comt, _the party rE:ceiving !'~tice may require deposition to be taken upon mte1Togatones by g1vmg notice to that effect to   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1890  BANKING AND COMMERCIAL LAWS-KENTUCKY  adverse party or his attorney upon same day, or day following one Up!)n which firs~ notice was sened. Except in divorce cases, depos1t1~ns are required to be taken upon inten·ogatories, if all parties agamst whom they are to be read have been constructively summoned and have not appeared, or be dfendants, or under di--ahility other than coverture or infancy and coverture combined. lb several other. <;ases enumerated in tb_e civil code, the court may require depositions to be taken upon mterrogatories, and they may always be so taken by consent of all parties. Officers authorized to take depo ·itlons in ~his. St~te: f\n examiner appointed by judge of circuit court of t~1s district,. a. Judge or clerk of a court, justice of peace, or notary pubhc. Depositions may be taken out of this State before a commLsioner appointed by governor of this State or before a judge of a court, a justice of peace, mayor of city, notary public, or any ot,her perso~ empowered by a commission issued to him by conse~t of the parties qr by order ?f court. If deposition is taken upon mterrogator1es neither party 1s allowed to be present, either in pe1·son or hy agent attorney. The officer's certificate must state when and where the deposition was taken; that the witne was duly sworn before giving It, and that it was written and subscribed by ~im in officer's presen<'e, or was written by officer in presence of witness and read to and sub cribed by witness in presence of officer. Descent and Distribution of Property. The real estate of a person dying /ntestate sl1all_ descend in parcenary to bis kindred, male and female, m the followmg order, viz: (1) To bis children and their de cendants: if none, then (2) to his father and mother equally 1f both be living; if either be dead, the whole estate descends to the one living; if both be dead, then (3) to his brothers and sisters and their descendants; if none, then (4) one moiety of the estate shall pass to the paternal and the other to the mtarenal kindred in the following order: (5) to the grandfather and grandmother, or'whichever may be living; if both are dead, then (6) to uncle>" and aunts and tneir descendants; if none, then (7) to great grandfather and great grandmother, and so on in other cases without end passing to the nearest lineal ancestors and their descendants. (8) ' If there is no kindred to one of the parents, the whole shall go to the kindred of the other. If there is neither paternal nor maternal kindred, the whole shall go to the husband or wife of the intestate, or if he or she be dead, then to bis or her kindred as if be or she had survived the intestate and died entitled to the estate. ·when anv or all of a class first entitled to take are dead, leaving descendants such descendants shall take per stirpes, that is to ay, 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. Dastard can inherit in the descending line only from the mother and her kindred, and can· tranc:mit 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 for three months, any time before sale under same, by defendant giving to the officer an obligation (replevin hond) payable to plaintiff, with good security for the amount thereof, interest and costs. A judgment to enforce a lien cannot be replevied. No replevy allowed upon judgment against any collecting officer, attorney at law, or agent, for a delinquency or default in executing or fulfilling duties of bis office or place, or for failing to pay over money collected by him in such capacity, nor against a principal by his surety, nor upon .a debt due by obligation baying 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, defendant and his representati"ves have ri~bt to redeem within a year from tne 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 hill, namely: Two work beasts, or one work beast and one yoke of oxen; two plows and gear; one wagon and set of gear, or cart or dray; two axes, three hoes, one spade, one shovel; two cows and calves; beds. bedding and furniture sufficient for family use; one loom and spinning wheel and pair of cards: all the spun yarn and manufactured cloth manufactured by the family necessary for family use; carpe1ring for all family rooms in use; one table; all books not to exceed seventy-five dollars in value; two saddles and their appendages; two bridle ; 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 provi ions, including brea<.lstutl' and animal food to sustain the family for one year; provender suitable for live stock. if there be any such stock, not to exceed seventy dollar.· in value; and if ucb provender be not on band, such other property as shall not exceed such sum in value; all washing apparatus, not to exceed fifty dollars in value; one . ewing machine, and all family portraits and picture : one cooking . tove and appendage . 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 Jess per month, provided that the lien created by ser·rice of garni hment, execution, or attachment, shall only atrect ten per centum of such salary, wages, or income, earned at the time of service o! process; of the salary, wage', or income earned by labor, of very person earning a salary, wages or income in exce. · of seventy-five dollars per month, sixty- ·even 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 mini ·ter. of the Go pel, professional libraries of lawyers proresi-;ional libraries and instruments of physician. and sur1-reon , not to exceed in value five hundred dollar·. In addition to personal property there is for actual bona fide bou. ekeeper 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 dollar·. This does not extend to a mortgage on or purch~ e money due for the land or for debts or liability existing prior to the purchase of the land, or of the ere<'tion of the improvements thereon. Per ·onal property or monev on hand or in bank to the amount of $750.00 shall be exempt frorri di. tributlon and . ale and ·ball be set apart by the appraisers or the estate of an intestate to his widow and children, or, if no widow, to his Infant children or child i-;urviving him. The appraisers shall ·tate 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 apprai.;;ed for sale. but if the widow be pre ·ent at the time of the apprai. ement, or any one authorized by her in writing, she may make her selection out of the property apprai ·ed to the amount of. aid 750.00 and said apprai. ers hall so report. The provisions of this section shall apply to cases where the bu. band dies testate, and toe widow renounces the provisions of the will in the time prescribed by law. Holid ays . 'l'he 1st day of January, the 22d day of February, the 30th day ot May, the 4th day o! July, the first Monday in September  !-  (Labor Day), the 12th day of October (Columbus Day), the 25th day of D~cember of each year, and all days appointed by tne president of the Urute~ ~tates, or by the governor of this State, as days of fasting and thanksg1vmg are declared holidays, and shall be treated as Sunday. If any of tho. e days named as holidays shall occur on Sunday the next day thereafter shall be observed as a holiday, • Busba~d ~d Wife. By an act which took effect June 12, 1894, the followmg important changes were made in the common law of coverture which theretofore prevailed in Kentuch-y. Marriage gives to_ t-';1e husband during the life of the wife no interest in any of the wifes property. She has full power to contract and to bind herself and her property, except that she can not bind herself to answer for the debt, default, misdoing of another, except as to property set apart for that purpose by mortgage. She may sell and dispose of personal property as if unmarried, but may not sell or convey real estate unless her husband unites in the contract, or conveyance unless empowered to do so by decree of court, in case of Insanity conviction of felony, or abandonment by the husband. After the death of either hu ·band or wife the sun-ivor shall have a life estate in one-third of all the realty of which the decedent wa<; seized in fee simple during the coverture unless such right shall have been forfeited or relinquished. Such survivor bas 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 i' 6 per centum per annum, and contracts for a greater rate are void as to the excess of interest. . Ju~gmcnts. A judgment does not constitute a lien on property m 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 o! the.cause of act.ion. Fifteen years: Actions to recover real property; actions upon Judgments and written contracts, except negotiable instruments. Seven years: Actions by senior patentees against junior parentees, who have held posse. ·ion for seven years. Five years: Actions upon verbal contracts; upon a liability created by statute; actions for trespa<;s to real or personal property or for damages for withholding same; for the specific recovery of personal property; actions upon negotiable instruments. though as to the makers of an undiscounted note it is fifteen year and as to sureties seven years: actions upon a('counts 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. J.\,lerchandise in Bulk. An Act of the 1!)20 Legislature provides that when any one who shall buy any stock of n-oods in bulk or tlxtures before he shall deliver to the vendor the purchase price or any promissory note therefor shall obtain from the vendor a verified written statement of all the creditors of the-vendor ton-ethcrwh,h their addresses and the amount of indebtedness due to each, also an aerurate inventory of the stock or fixtures to be pur,·ha. ed and making it the duty of tho vendor to furnish such statement under oath. Upon recei-ving such a. statement the purchaser shall notify. per.sonally or by registered mail, each of the creditors of said vendor a. appear on t:J:I~ list, of the proposed sale, the price to be paid therefor, the condit10ns of the sale and a copy of the statement, furnished bv the vendor. This notice hall be giyen or ent at lea..;;t ten davs before the completion of the sale. If any such purcha er fails to obtain a verified statement from the vendor or to give the notiee to the <'reditors as above or to see that the proceeds of the sale are prorated among creditors according to dignity of their claims then su<'h .ale or transfer shall be fraudulent and ,·oid and shall operate as a i;teneral assiimment ~1r th~es~ff ~~toi~i~l~e o<(f ~~Jli;~tevg~1)f i~et ~r~h1~: the fair , alue of all property so bought or sold, provided, however, such suit must be brought within four month • Notes and Bills of K"\'.change. An act relating to negotiable instruments became a law June 13, 1904. Section 1 declares that an instrument to be negotiable mu t conform to the following requirements. (1) It must be in writing and signed by the maker or drawer. (2) • Tu t contain an unconditional promise or order to pay a certain sum in money. (3) • lust be payable on demand, or at a fixed or de_tenninahle future time. (4) ~ tu t be payable to the order of a specified per.son 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 a~ent duly authorized in writing. Every negotiable instrument is payable at the time fixed therein; when the day of maturity falls upon ~unday, or a holiday, the instrument is payable on the next succeeding busine. day. Powers of Attorney. Powers of attorney to convey real or personal property may be acknowledged. proved and recorded in the proper office in the manner prescribed for recording conveyan('es. If the conveyance made under a power is required by law to be recorded or lodged for record to make the same vahd against creditor· and pur~ chasers, then the power must be lodged or recorded in like manner. Prote t. ·where any ne~otiable in trument has been dishonored it may be protested ror non-ac('eptance or non-payment as the case may be; but protest i .. not required, except in the ca..5e of foreign bills of exchange. It is the safer practice to prote·t in aU ('ases, because in all cases notice of dishonor is nece sary to charge parties secondai·ilY liable. Taxation. Taxes due the State by banks and tru 't companies are payable diro<'tly into the tate trea.,·ury on or before the tlr~t day or July succeeding repor by their chief officers required to be made to auditor of public account , and taxes to couutie,;, citie , towns and di tricts are paid at the time fixed by law for payment of like taxes. Will • Any person of , ound mind and over twenty-one year. of age may make a will. Wills mu t be in writing with the name o! tho te. ta.tor . ub.·crlhcd thereto either by hinll elf or by some other 1 1 0 E~rrg~ t~~t~t~lt~~e c~~~ i~K r:;ttd~~e~~i~- or tb! ~ill by the testator in the pre ence of t o witn ses, who hall subscribe their name in the pr ence of the testator. '1 be ·ill of a per ·on domiciled out of th!· State i valid as to pe onnlty, if executed according to the law of the domicile; but to be valid a to lands, it must be executed as required by the law of this State. The county court has e. elusive ol'i•.,.inal juri diction over the probate of wills.  g~t  ~~b  1i!g~  Ri~~l~~if  1~~.1~~,;r~~i;:~  BANKING AND COMMERCIAL LAWS-LOUISIANA  1891  --------~  SYNOPSIS OF  THE LAWS OF LOUISIANA RELATING TO  BANKING AND COMMERCIAL USAGES evised by Messrs. r1ERRICK & SCHWARZ, Attorneys at Law, Orleans. (See Card in Attorneys' List.)  ears the the the 'fled .• as  ong sfer 1ent hall for ver, able tan irer or r to  perthe  It  •  rded pur-  r.  ored case billS ause rilY  .L  ew  Accounts. (See Acknowledgments.) Acknowledgment of deeds executed within tbe St.ate may be ma.de before a judge, notary public, parish recorder or his deputy, in the presence of two ·witnesses. These witnesses mu t be over fourteen years of age. In other States, before a commissioner of Louisiana, or any otiicer authorized t.o t.ake depositions in the tate where he re.'-ides, but the official character of such officer must be properly verified. A Louisiana commh;sioner may certify to tbe official position of any public officer in the , tate for which he i - appointed. A deed to be authentic and to be admissible in a court of justice without other proof of signature, must be acknowledged and signed before a notary or conunissione1· of deeds. In other states any oath or acknowledgment made before a notary public, duly appointed in such state·, when certified under the hand and official seal of such notary, s~1all have the same force and efl'ect without further proof of the signature, seal and ofTicial character of such notary, as if taken or made by or before a Louisiana commissioner residing in such , tate. Act 140 of 189G. In foreign countries every deed, conveyance, mortgage, sale, etc., made or taken before any ambassador. minister, charge d'afl'aires, secretary of legation, consul-general, consul, viceconsul, or commercial agent. and every acknowledgment, atte. tation, or authentication of any of said inst,ruments, oaths, etc., made by any or said officers under their official seals and signatures shall have the full force and effect of an authentic act executed in this State. No Witne ·es necessary. Party appearing before any of said'officers need not be a resident of the place where said officer i located. Notarial copies of original when deposited in this state in a notary's office h ave full force and etfect of authentic copies of acts executed in this State. [Act 1G4 of 1898.J 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 re ident security for costs or make deposit to cover same if demanded. (, ee 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 of Peace courts outside of city of New Orleans. In city courts of New Orleans, defendant must appear three day after receipt either day of service nor day on whlcb answer must of citation. be filed is included in delay. If defendant fails to appear, judgment by default is rendered against him. In district court 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 executors, administrators, or tutors who are ex-officio administrators-also by dative executorswhere there is no heir present or agent of heir, public administrator takes charge. A non-resident executor of a will must in all cases give bond; a resident does not unless required by creditors. Administrators and executors of other states must open succes,,.ion of deceased in the com-ts of this tate, and be recognized at sucb here before they can sue or be suecl or transfer property in this tate. Stock in local corporations may ho transferred by non-resident, executors, etc., Without the necessity of securing an order from the local court, but no transfer can be made unt,il 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. Partie · interested are notified by publication to show cau e within ten days why the account so ti.led should not be approved. Any part.y intere.-ted may oppose the account by opposition in writing a~ any time within the said te~ days In ab ence of opposition account 1s homologated upon production of sat,isfactory evidence by administrator '?r e. ecutor, and the funds ordered distributed ill accordance therewith. Olaims against estates should be presented in ,niting to the administrator or executor. Should he approve the sa~e i_n writing, no further action is required except to see that the claim 1s placed upon his account when med. Hhould be decline to recognize the claim, <:reditor may file suit against succession represe!]t!ltive _and obtain a ~udgment t.o be paicl in ordinary_ course of ad!Jl1m_strat10n. If there is no danger of prescription, creditor may await fllmg of account and then oppose same of claim, not included. Amda,·its. (See Acknowledgments.) Alien.. There is no law excluding them from buying or holding lands. '.rhey are only excluded from voting. Arbitration. Agreements to submit t~ arhit'.:i.tion. recogni?'.ed_ by law. Arbitrators nnvt be sworn. otherwise dec:1s1or} is not bmdu~g. State board of arbitration of labor trouhle established. [Act 139 of 1894.J Arrest for debt may be made on affidavit that the debt is really due, and that petitioner verily believes tha_t de_bt(?r l · D;b'?ut to remove f1•om the State permanently, without leavmg m 1t. ul,lc1ent_pr~perty to satisfy his demand; and that he does not take !ns oath with mtention of ve ing debtor, but only in order to secm:e _Ins demand. Dcb~or may be discharged by disproving farts; by ~n:mg bond: by ruakmg surrender, by delh·ering to :sheriff prop_erty sufl1cient to, at1 ·fy cleman_d. Arrest of the debtor only secures Jus pre. ence to _ans\\ er the . mt; he cannot be held for the payment of the de!Jt. ::\Imors, mterd1cted person and women not subject to arrest for debt. As. ignn1ent and In olvency. State insolvent laws superseded by Tational 13ankTuptcy act. Attachment. Writs of attachment i. ue on application of creditor, under oath, when the _deht?r resides out of the State; ,\h1;11 he conceals himself to avoid bemg cited; when ~e ha. m?rtgaged, 11:· s1g11ecl d1:po.·e of h1l> propor disposed of, or is al>l>Ut to mortgage, a...;s1gn, e1:ty, righ1,s, or credits, or i;'?me part thereof. with intent to defraud his creditors or give an unfair preference t,o ?me of them.: and when he has converted, or is al~out to convert .. h1.· property mto mone_y or evidences of deht with mtent to place 1t b yond the reach of his credlto,s or if debt not due. is about to remoYe his property out of the State. Creditor must furnish bond equal to the amount claimed to be due, with at least one solvent surety, residing within the jurisdiction of the court, conditioned for payment to any party Injured by issuance of writ of all damages u ·tained by him in case it is decided that the attachment was wrongfully obtained. (Act No. 7, 1888.) Bond for $250 is sufficient if debtor re ·ides outside of   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  or  state but bond may be increased to amount of claim upon order of court at demand of debtor. Garnishment may be had as an accessory either to a writ of attachment or fleri facias. Attachment may now is ue for an offense, quasi offense or tort if defendant is non-resident (Act 215 of 1920). Banks. 13anking corporations organized under banking laws adopted in 1855, amended in 188 , in 1892, and in 1902. Savings deposit, and trust companies provided for by Act 150 of vear 1888° amended by Act 95 of 1892, which is now amended by Act 189 of 1902_. The nu~ber of persons organizing must be five or more. No special act of mcorporation can be passed. , By Act 189 of 1902 the general banking act of 1855 and the amendatory acts of 1888 and of 1892 are amended as follows: 1. Period of time must be fixed in act not to exceed ninety-nine year . 2. Banks can not bolo real estate for longer time than five year , except such as necessary for the transaction of their busine s, or except that held as agent or trustee. 3. All managers and directors shall be citizens of Louisiana. 4. Safe deposits and trust banks without power to issue bank notes may J?e orga_nized under this law with a capital of $50,000 or more: of which capital at least $10,000 shall he paid up before commencing busine. s. 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 ~an commenc!=) 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 o! 1902, }?anks organized to do a savings, safe deposit and trust bankmg busmess must be composed of more than five persons, may be organized for not longer than ninety-nine years may not. hold real estate for longer period than ten years, except sue~ as ~s held as agent or trustee, or necessary for transaction of therr busmcss; may accept and execute trusts or agencies of all descrip~ions, may be. appoin~ed by any per. on or by court executor, administrator, syndic, receiver, curator, tutor, trustee or assignee. Capital stock considered as security for faithful performance of duty though court may require other security, and may require the state examiner of banks to investigate the affairs and management of the bank. Such banks can not issue notes and must have a capital not less than 100,000, which must be paid up in cash. ( ee Act 121 of 1910, amending Act 45 of 1902 as to capital required in cities of less than 30,000.) (See als.o Act 170 of 1902, and amendment thereof, Act 140 of 1906 and amendment thereof. Act 152 of 1910 and amendment thereof. Act 96 of 1912.) Act 238 of 1910, amending Act 45 of 1902, pro,;des for branches. Act 112 of 1910 creates a State Banking Department having supervi ion over all state banks. Amended by Act 48 of 1912. Chattel Mortgages. A provided for by Act 198 of 1908, any kind of movable property may be mortgaged for debts, for money loaned, future advances or to guarnntee contractural obligations. The act of mortgage must be pa sed 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 afl'ect 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 Salo. Act 119 of 1918 makes lawful a conditional sale of tank cars providing for retaking of car by conditional vendor without right of redemption being given to vendee, all payments of such date of retaking being forfeited. 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  g:ro~~~  nR::tp~htc~~dtti~~!;eE~~v;lt:~g~!t~~;s~t b t ; : e:;d~~ and vendee sign, though signature of vendee is not essential, as any act of acceptance will answer. The notary in Parish of Orleans preserves the originals of deeds pa.ssed before him and certiOed 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 pa.<;sed, (2) names and surnames and qualities of contraeting 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 for literary, scientific, religious, and charitable purposes; for works of pu!Jlic improvement, and generally all works of public utility and advantage; and any number of persons, not less than three, may form them.selves into a corporation for the purpose of carrying on mechanir.al, mining, or manufacturing business except distilling or manufacturing intoxicating liquors, with a capitai not less than $5,000 or more than $1,000,000. Any number of persons, not less than three, may form themselves into a. corporation on complying with the general corporation laws, for the purpose of carrying on any lawful bu iness or enterpri e not otherwise specially provided for, except stock-jobbing. Fifty per cent of capital stock must be subscrihed before filing articles of incorporation and 50 per cent of all stock subscribed must he paid in before corporation engages 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.) All corporations hereafter organized must have their charters, etc., recorded in the office of the secretary of st,ate. (Act 59 to 1898.) (See act 154 of 1902 for formation of corporations for works of public improvement.) Act 120 of 1902 provides for organization, etc., of local and foreign building ancl loan or homestead associations. Three or more per. ons may form a corporation to carry on any business specifled in charter that would he lawful for any individual to carry on. :\Tay carry on any named business or different branches of lmsfoess, whether related or not. l\Iust have capital of not les than . 3,000. ( \ct 78 of 1904). No corporation can declare dividends out of its L·apital stock, under penalty of forf iture of its charter. Meetings uf corporations must be held at. domicile (Act 63 of 191'l). T<'orei~n Corporations may be licen. ed and taxed by a mode difl'eren t from that provided for borne corporations. No domestic or foreign corporations shall do any business in tWs State without having one or more known place of business and an authorized agent or a_gents in the tate u~on whom p_rocess ma;v _be served. All corporations (except mercantile corporations) dom1c1led out of the • tate and flling with tbe secretary of doing business _in the State in d_efault stat,e a declai:atwn of tpe place of its locality or domicile together with the name or its agent m the State upon whom service of process may t1£e~i~tt• ir!~t~en sf~~e~?on any caw;e of action in any parish where Foreign corporations must file in office of ecretary of state a written declar!ltion setting forth and cont.aining the place or locality of its domicile, the places in the State where it is doing business, and the  or   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1892  BANKING AND COMMERCIAL LAWS-LOUISIANA  name of its agent or other officer in thi. State upon whom process may be sened. (.Act 54 of 1904 amended b:,· Act 284 of Hl08. Act 284 of 1008 amended by Act 243 of 1912. ee Act 194 of 1912.) Act 267 of 191-1 relating to corporations repealed several previous acts and undertakes to embody in one act all essential details with respect to the organization, power and duties of tradin~ corporations, forei~ and domestic. (As to nontrading corporations see Act 259 of 1914.) Courts. Terms and Jurisdiction. In pari hes other than Orleans; Just-ices' courts-exclusiYe jurisdiction up to $50, and concurrent with the district courts, between 50 and 100. 2. District courtsconcw-rent with justices' courts, between 50 and $100; exclusive for all civil matter over $100, and in all probate matters and appellate jurisdiction in all civil matters in justices' court . 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 continuous session during ten months of tbe 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 interlocutory orders, issuing writs, trials of rules to quash same, trJing proceeclings instituter!, or on appeal therein by a landlord for the possession of lea ed property, partition proceeding , and for such special probate and insolvency busine s, 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 tho 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 of witne residing out of parish or State it is necessary to file motion duly sworn to showing non-residence and materiality of evidence. Written interrogatorie are prepared and served on opposite party, or hi counsel, who has thre~ days in which to cross. Commission then issues, directed to some proper officer, with interrogatories and cross interrogatories annexei, who must cause witness to appear before him to answer under oath the direct and the cross interrogatories. He hould reduce answer to writing, read same to witness and cause witne.. 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 de cendants of these last, tbe succession is divided into two equal parts, one goes to father and mother, the other to brothers and isters or their descendants. If either father or mother of deceased dies before him, the portion which would have been inherited by such deceased parent foes to the. brothers and sisters of the deceased, or their descendants. If deceased left neither descendants nor brothers nor sisters, nor descendants from them, nor father nor mother, but only other ascendants, they inherit to the exclusion of all collaterals. If ascendants in paternal and maternal lines are all of the same degree, the estate is divided into two parts, one goes to ascendants on the paternal and the other to ascendants on the maternal side. If there is in the nearest degree but one ascendant in the two lines such a,;cendant excludes all other ascendants of a more remote degree. If one dies leaving no descendants, and his father and mother survive, his brothers and si ·ter , or their descendants, take half of bis estate. If the father or mother only survive, brothers and sisters, or their descendants, take threefourths. If one dies leaving no descendants nor father nor mother, his brothers and sisters, or their descendants. take all the e tate. The partition of the half, the three-fourth , or the whole of a succession falling to brothers and sisters as above set forth, is made equal if they are of the ame marriage, if of different marriages tbe uccession is equally divided between the paternal and maternal line · of the clecea ed. If deceased died without descendants, leaving neither brothers nor sisters, nor descendants from them, nor mother nor father, nor ascendants in the paternal or maternal lines, hi succe ion passes to his other collateral relations, the one nearest in degree excluding the others. When the deceased ha left, neither lawful descendants nor lawful ascendant , nor collateral relations. the law calls to bi inheritance either the urvivin~ husband or wife, or his or her natural children, 01· the tate. If natural mother left no lawful children or descendants, her natural children, acknowledged by her, inherit to tlle exclusion of her fatber and mother and other ascendants or collaterals of lawful kindred. atural children inherit from their natural father, who has acknowledged them, when he bas left no descendants nor ascendants, nor collateral relations, nor surviving wife, and to the exclusion only of the tate. Donations inter vh·os or mortis cau a cannot exceed two-thirds of the property of the disposer if he leaves at his decease a legitimate child, one-half if he leaves two children, and one-third if he leaves three or more. An inheritance tax is levied upon all inheritances, legacies and donations, provided no direct inheritance or donaUon to an ascendant or desceudant below $10,000 shall be taxed. Tax is 2 per cent on direct inheritances and donations to ascendants or descendants or urviving wife or husband and 5 per cent for collateral inheritances and donations to collaterals or strangers. Beque.<;t to educational, religious or charitable institutions are exempt. Inheritance tax not due when oroperty inherited, bequeathed or donated shall have borne its ju:st proportion of taxes prior to time of such donation, bequest, or inheritance. IL ('. C. 915 amended to read "In all cases when either husband or wife shall die leaving no descendants, nor ascendants and without having dispo ed by last will and testament of his or her hare in tho community property, such undisposed of. hare shall be inherited by the survivor in full ownership." (Act 57 of 1910.) Divorce. ( ee eparation from Bed and Board.) Dower. ( ee Married Women.) Employer· Liability Act. There i a general Employer Liability Act in the tate setting forth special compensation for various injuries. Execution. Property taken under a writ of fleri facias must be advertised and appraised, and can not be sold for less than two-thirds of tbe apprah,ed value, unta it has been re-advertised. Advertisement 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 mu t be re-advertised for fifteen days, and old on a credit for twelve months for whatever it will bring. There is no redemption of property sold under execution or mortgage. No tay of execution is given except on appeal, and execution may is. ue at any time after the delay for appealing suspensively has expired. Act 113 of 1006 authorizes sheriffs and con tables to put pw·cbaser of seized property in po session. Exemption . To head of family, real e.·tate is owned and occupied as a re ·idence, together with certain furniture, tock. implements, 111 ovisions, etc.; the property not to exceed 2,000, and pro\'idecl the I,Hson claiming the benefit of the homestead e. ecute a written declarati< n of home toad (Acts 1 · 0, No. 114), and no exemption if wife has separate property worth over $2,000. No registry required in p:-rishes other than Orleans. (Operative Jan. 1, 1890.) Widow or minor children surviving i-s entitled to $1,000 out of deceased bu~-  banrl 's estate, if in necessitous circumstances, by preference over even a fir t-mortgage creditor. heriff or constable can not . eize linen and clothes of debtor or hi wife, nor his bed. nor tbo:·e of his family, nor his arms and military accoutrements. nor tools and instruments and books, sewing machine necessary for the exerci -e of his or her calling, trade, or profe sion, by which be 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, et,c., family portraits, musical instruments played on by family. (Acts 1876, To. 79.) Fraud vitiates all contracts. Action barred by one year imitation to annual sale on account of fraud. For fraud on part of purchasers of goods see Act 114 of 1912 amending Act 94 of 1 96. Garnishment. Wages earned out of this State and payable out of this State, shall be exempt from attachment or garnishment in all cases where cause of action arose out of this State. and it shall be the duty of garnishees in such cases to plead such exemptions unle s the defendant is actually served with process. (Act 165 of 1904.) ( ee Attachment.) Holidays. Sundays, January 1 t. January th, February 22d. Good Friday, June 3rd, to be known as Confederate Memorial Day, July 4th, the first .Monday of September. to be known as Labor Day, October 12th, Chri topher Columbus Day, November 1st.. Thanksgiving Day, as designated by the President of the United States, December 25th, and all general election days, whether Presidential. Congr~ssional, State. municipal or parochial, in the localities where said elections are held; and in the Pari hes of Orleans. St. Bernard, Jefferson, St. Charles, and St. John the Baptist, Mardi Gra.. and also in cities and towns when the population shall exceed 10,000, and in the Parishes of St. Bernard. Jefferson, t. Charle . and t. John the Baptist every Saturday from twelve o'clock noon until twelve o'clock midnight, to be known a a half holiday; and in all cities and towns whose population exceed 10,000, whenever January 1st, January 8th, February 22d, June 3d, July 4th, November 1st, December 25th shall fall on a Sunday the succeeding day shall be a legal holiday. Husband and Wife. ( ee Married Women.) Interest. Legal rate is 5 per cent, but per cent may be agreed upon in writing. If higher than per cent is charged, it is reducible to 8 per cent. If paid, it may be sued for and recovered within two years. Judgments recorded in the office of tbe parish recorder become mortgages from date of record upon all real estate of the debtor, and may be thus recorded in any pari b where debtor owns real estate. They are valid for ten year , when they must be renewed. Lien or Privileges. The following have special privileges. viz.: 1. Lessor's privilege. 2. Privilege of the creditor on the thing pledged. 3. Privilege of a depo itor on the price of a thing deposited. 4. Privilege for expenses incurred in preserving thing. 5. Privilege of the vendor of movable effects so long as they are in the po. session of the vendee. 6. Privilege of the innkepeer on the effects of the traveler. Privileges resting upon immovable are as follows. viz.: 1. The vendor on tbe estate by him old, for the payment of the price or so much of it as is unpaid, whether it was sold on or without a credit. 2. Architects, undertakers, bricklayers. painters, master builders. contractor::;, sulH:ontractor ·, journeymen, laborers, cart-  1  ~~~irfu11gd h~t~:~. b~~fcf~ts, eg;P~;.:Iiilnoth~1:5~~~;~g, 3:eb¥:~~~g,v~~ have supplied the owner or other person employed by the owner, his agent, or sub-contractor. with materials of any kind for the construction or repair of an edifice or other work. when such materials have been used in the erection or repair of such houses or other works. ( rt. 3252.) Privilege on crop to be recorded (Act of 1 '90.) The vendor of an agricultural product of the United tates bas a five days' privilege for unpaid purchase price in preference to all others. Privilege granted employe in saw mills. etc. ( ct 145 of 1 . amended by Act 52 of 1910 and Act 23 of 1912. Widow and children left in nece:· itous circumstances are entitled to an amount in husband's or father's succession sufficient to make 1,000 inclusive of property already possessed by them. This privilege primes all others except vendor's privilege, that for expenses of selling property and conYentional mortga<Tes, repre ·enting money actually loaned for not le. s than one year as not exceeding 6 per cent for intere t, discount and charges. Limitations to Suits. Pre:;cription - Accounts stated and acknowledged in writing are prescribed only by ten years. (Act of 188 .) Per onal actions one year. Action for torts of all kinds; for injury to or non-delivery of merchandise shipped on vessels; for fees of ju:stice. notary, or constable; for innkeepers' account ; for accounts of retailers of liquors: for wage of laborers or sailors; for freight; and for tuition by mrmth. Tb1·ee years: Action for arrearage.- of rent charges. or hire of movables or immovables 01· money lent; for alaries of oYer ·eers. clerks. or tuition by quarter or year; for fees of physicians apothecaries, attorneys, herills, clerks, and recorden;: on open accounts of merchants, whether wholesale or retail, and others. Four years: Actions by minors again.st their tutors. counting four years fl'om majority. FiYe years: Action on bills of exchan~e or promissory note . counting from maturity, and for nullity of contracts or wills: for recision of partitions; to set a ide publi~ and judkial sales for informalitie.. Ten )"ears: All other actions: the right to a usufruct or ervitude. all judgments. whether rendered within or without tho 'tate, but judgments may be re\'ived before lapse of ten years. and are then good for ten years from date of revival. Prescrivtion of ten and thirty years now runs against min rs, interdict.· and married women (Act 161 of 1920). llushand and wife can not proscribe against each other. Limited Partner hip . (. ee Partner. hip.) .Married \'\-"omen. Act 94 of the Legi ·Iath'e es ·ion of 1916 provide - that a married woman of this , tate shall be competent to contract and bind and obligate herself personally and with reference to her separate and pa1·apb rnal property, and to appear in 'ourt and to ue and be sued to the ame extent and in tl.e ·ame manner as though she were a gemme ole; 11rovided that nothing herein contained shall be deemed or con:strued to affect in any way the statutes of this State, establishing and regulating the matrimonial community of acquet and gains, and prescribing what hall be deemed community and what be deemed separate property of the other spouse. Revenues of all separate property admini tered by the hu 'band. and all property acquired by either bw band or" ife after man-ia~e. ex<'cpt by donation or inheritance constitute part of community, unle.bought with the separate means of either and a a separate acquisition. 'IYife has no dower in her hu band's real estate. The wife can have no claim upon the property of the husband to the prejudice of third parties, wile.· recorded. Where one of tho :spouses is agent for the other, he or he may be witne,,,·s for the other in a matter connected with that transaction. otherwi e husband or "ife cannot te: tify in favor or again t the other even though both litigants consent. After di· ·olution of marriage by death or divorce the ,;urvi\'or is entitled to one half of all property remaining aftor payment of debts, acquired during marriaF;e, and in case of death. the usufruct of the other half, unle this half is dispo ·ed of by will of deceased spou:,;e. Wife cannot be a witness to husband's will. ( 'ee ''Liens and Privilege .")  BANKING AND COMMERCIAL LAWS-MAINE  render annual accounts. and are allowed 2 ½ per cent on the inventory as commi,;sions. Attorneys aL law arc appointed to represent ab:sent heirs. Properties acquired during marriage are presumed to be community propert,y, and surviving spouse is owner of one-half. ·when either husband or wife dies , leaving no ascendants or descendants, and without haYing disposed by will of his or her share in the community, the survivor holds such share in usufruct during bis or her natural life, (Pee Successions.) Protest. (See Negotiable Instruments.) Separation from Bed and Board. ;.\Jay be claimed reciprocally for: 1. Adultery. 2. ·w hen spouse condemned to infamous puni hment. 3. Habitual intemperance. exce.·ses, cruel treatment, or outrages, when ·uch renders living together in upportable. 4. Public defamation of one spouse by the other. 5. Abandonment. 6. Attempt of one spouse against life of other. 7. \\'hen one spouse charged with infamous oil:en e actually !lee: from justice. Divorce may now be obtained if both parties ha.Ye li,·cd separately for seven yea1·s. Judgment of Divorce. "A vinculo matrimonii" can be obtained immediately for first two causes. !<'or other causes it is nece. sary first to obtain judgment of separation "a men ·a et thoro." After judgment of separation from bed and board, if there bas 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 i'> rendered must wait two years. \\' hen marriage is celebrated outside of state parties cannot obtain divorce in state on grounds occurring outside of state. Taxes. Taxes on real estate cam10t be enforced until the expiration of the year for which they are levied and after legal notil'es to delinquent 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 intere t and costs, and all subsequent taxes paid. Lands sold for taxes due prior to 1880 are not redeemable. State taxes are 7 mills on actual value, parish taxes are exceeding 10 mills. City of cw Orleans taxes are 23 ½ mills on 90 per cent of actual value. Delinquent staLe taxes bear interest at 2 per cent a month, cit>, taxes, 10 per cent a year. ,vrns. There are four dillerent kinds of wills, viz.: The olographic, nuncupative by public act, nuncupative by private act, and mystic (or sealed) will. The olographic ·will must be wholly written, dated. and signed by the testator, and may be made within or without the tatc. Nuncupative will by public act as written by a notary in presence of three witnesses, over the age of 16 years complete, not insane, deaf, duinb 0i' 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, 15 1-1587 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 sub:scribed by te tator and follows form of place where executed, or of testator's domicile. (See act 176 of 1912.)  l\fonopolies or Trusts are regulated and ri~hts are giYen against them similar to those exist-in~ unde1· Federal Law. The state authorities may take action and the individual may recover threefold damages sustained. See House Bills Nos. 7 and 8, extra sos ion 1915, approved June 10, 1915. Mortgages can be foreclosed at any time after maturity of the debt, by instituting a regular suit and obtaining judgment thereon, or if the act imports a confession of judgment in favor of the holder, he can apply to the cout"\, for an order directing the sheriff to seize and sell the property. All mortgages must be recorded be fore they can have any effect as against third parties. Trust deeds are not legal, and chattel mortgages are unknown to the laws of Louisiana except as stated under heading · 'chattel mortgages." There is no redemption of property old under mortgage. All tacit mortgage have been abolished since 1870. In making sale or giYing a mortgage upon his property, it is not nece sary for the husband to obtain the signature of the wife. A mortgage resulting from recording a judgment can not have that effect until after adjournment of court. [Act 1 8 .) Lessees obligated to erect buildings, etc., upon leased property, can mortgage the lease, together with the improvements, et,c. (Act 21 of 1908.) Leases and contracts to explore for oil, gas and minerals may be mortgaged (Act 232 of 1910) . Negotiable Instruments. "Negotiable Instrument .\ct" ( yo.  giil~fa~~ !bt~~~nb~d~ri~Ja;:5tre~;!c~;v~~~ ~g~~!~l~ ~~¥!i~~~i~!~ 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 per on; or when the only or la t indorsement is in blank. ·w hen there is a discrepancy bet-ween the words and the figures of an instrument, the sum denoted by the words is the sum payable. Two or more persons signing instrument contain0  ?r~;;~~~e~l Fi~~:;!~E;~~. ~t~~~1IJntosebi~Ju;1~rt~);~;r11i liable, but is necessary to charge drawer or indorser. Notice of dis-  honor must be given to drawer and indorser whe,n instrument has been dishonored by non-acceptance or non-paymerlt, otherwi. e they  ~?1u~cti~~tt!~c1s tr~~~:~~ e:s~itfgfe tire~a~!e~e[;!~e~P. !~~~~.~~~! 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 unconditional 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, i deemed to have accepted the same. Where a signature is so placed upon a negotiable instrument that it i 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. ·w here a bill does not appear on its face to be a foreign bill, protest thereof in case of dishonor is unnecessary. A check must be pre. ented for payment within a reasonable time or drawer will be di charged from any loss caused by delay. Bank is not liable to holder of a check until it accepts or certifies same. \\'hen the last day to do an act required or permitted to be done under the act falls on a unday or legal holiday, it may be done on the next succeeding ecular or bu. iness day. When day of maturity falls on a . unday or a holiday, the instrument is payable on next succeeding bu iness 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-payment shall be days of pnhlic rest or legal holidays or legal half holidays, then the day next following shall be computed as the fir t day after the protest. "Service of citation shall not be waived, nor judgment confessed by any document under private signature executed prior to the maturity of tbc obligation sued on." [Article 91, Constitution 1898.) Acceptance must be in writ,ing 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 190 .) Partnership, Limited and Special. Stip_ulations that 0~10 sh?,11 participate in the profits and shall not contribute to _Jos. es IS_ '"'.01d, both as regards partners and third persons.. Partnerships ~re d1v1ded as to their object into commercial and ordmary partnerships. Commercial partnership are such as are formed: 1. For the purchase or any personal property, and the sale thereof «:ither in t~e same state or changed by manufacture. 2. For buymg or ..; cllm~ 3:ny Personal property whatever, as factors or brokers. 3. l ~r carrymg personal property for hire, in ships or ot}?er v~,-.-els .. Ordmary partnerships are all such as are not commercial. . rhei:c 1. also a species 0! partnership which may be incorporat,ed w1~h either of the other kmds, called partnership in commcndam. It 1s fo_rmed by contract, by which one person or partnership agrees to furmsh another person or partnership a certain amount, eithE:r in propcrt~ o_r rnon<:Y- to 1?e ei:nployed by the person or partnership. t_o whom 1t _1s_ furni. heel, !D bis or their own name or fil"m. on cond1t1on, of 1·ec n mg a share_ JD t_he profits, in the proportion determined by tlte co!ltra~t, and of bemg hable to losses and ex1)enscs to the amount furmshel, ~ud no more. Partner in commendam cannot bind other p~rtncrs by his act. Partner hip in commendam must be made in writrng:; n:iu:t expre"- am0l!,nt furnished or agreed to be furnished; the propor~10n of profits which partner is to receive and expense and losses he 1: to bear. m_ust tate whether it be receiv d in goods or money, etc.: must ~e s1~ne9- ~Y P_arties in presence of at least ono witness and recorded. m full "1thin six days in mortgage ofllce. If branch house · are cstabhshed the contract must be recorded in parish where branch - ar~ loc-ated. If Partner in commendam allow bis name to be_ usecl. _or if he take any l)art in the bu iness of the partnership. he w1l! be h~ble a a general Partner. Ordinary part,ncrs are not b<_mnd _JU sohdo _for d~bts of Partnership and 110 one of them can bmd bis p3:rt,ncrs unless they !lave given him power to do so; each is bound/or his s~iare of the debt m proportion to the number of partners. C om?"1erc1al partners are each liable for the entire debts of the partnership. Powers of Attorney. l\1ay be written or oral. l\Iay be_ eith~r general for all affairs or special for one afl'.ai_r onl?- One conceived m general terms confers only power of adnum ·trat1on: to sell mortgage or do any other act of ownership, the power mu.st be express and special. Probate Law. There is no special probate ~ourt. District courts are vested with probate jurisdiction. . , uccess10ns are opened 1;1pon petition of intercst,cd persons in t,he pa~1sh wb_ere the dece~ed res1d~d. if he had a domicile or fixed place of re~1dence m the ;itate; m tqe_ parish where he left his landed propcrt.y, 1f he had neither don11c1lc nor Place of residence in the state; or ~n the parish in whi_ch it aPI?ears from the inventory that hi_ prin~ipal prop~rty was sit uat_ed, 1_f he left property in several panshes; m the pan h where he die~. 1f 11:e had no certain domjcile nor any fixed property. If prcsumpt1Ye hell' does not bc~in legal proceeding to settle succ~ sion within ten day: after death of "de cujus," ct·~ditors ~ay de11:and that h ·t:i.te whether be accepts or reje<'.ts succession, or if no heirs appear, that a c·urator ad hoc be appointed to set.tie the estate. The juda;e appoints an admini. trator when deceased leaves no will. .\dmini ·trators mu t  120  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1893  SYNOPSIS OF 1  -·I i  ,'  I  i lI I  1i  ,,./  I  i' 11  ,·I I  THE LAWS OF MAINE  I  RELATI YG TO  :1  If  BANKING AND COMMERCIAL USAGES Revised by SYDNEY B. LARRABEE, Attorney at Law, Portland. (See Ca.rd in Attorneys' List.)  I I  I I'  i  I  ,;  1  Acknowledgments. ( ee Deeds.) Actions. At law begun by writ, under common law practice, but containing declaration. Suits in equity are begun by bill of complaint, flied with clerk of court and subpoona issued by him, or may be inserted in writ of attachment and served by copy of bill and writ. On motion non-resident plaintiffs required to give secm-ity for costs. A<lministration of Estate. ( ee Estates of Deceased Persons.) . A~da,its. Affidavits may be made before a notary public or Just1c of the peace. In some comt matt.ors authority of magistrate mu ·t be proved by certificate of clerk of a court of record. Aliens. Aliens may bold and convey real e. tate and nersonal property. \\'ill of alien may be proved and allowed in this StatE> '''idow of a citizen of United tates who was an alien when she married him has right of descent in his estate (but see Married Women),  I  I:I •  I (L:  I',  ;- : j  l   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  BANKING AND COMMERCIAL LAWS-MAINE  1894  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 process 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 bas reason to believe and does believe that the debtor is about to depart and reside beyond the limits of the St.ate and carry with him means of his own more than are necessary 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 dii:;close, give up property not exempt from attachment and be discharged from arrest, or may give bond and disclose according to its terms. No arrest, i'n actions ex contractu for less than $10, and none of married women in ci vii actions. Assl1,!Dmcnts. Common law assignments for the benefit of credit.ors may be made, and after four months will be good a1sainst bankruptcy proceedings. Assignments of wages must be recorded in town clerk's office. Attachment. All property not, exempt attachable on mesne process 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  1  Creditors' Bills. Bill in equity may be maintained to reach property of debtor which cannot be reached by pro<'e s at. law, and IS n<?t exempt from attachment; also property convoyed in fraud of creditors and property secreted so that it is not reple" !able. Days of Grace. (See Negotiable Instruments.) D~eds. Any oirner of real extate baying ri.1sht of entry may convey 1t by deed. No estate great.er than tenancy-at-will can he 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 ,voman qualified to take acknowledgments; outi:iide the tate, and in the United Rtates, before a. clerk of a court of _record havlnf; a seal, notary public, or commisswn~r of deeds for this ~t~te, and ma fo~eign country before a notary public, or a consul or muuster of the Umted States. but if ma~istrate acting outside of State has no official eal. his authoritv and the genuineness of his si!?llature must be authenticated by the clerk of a rourt of record in county where he resides. Unacknowledged deeds cannot be recorded. No special form of acknowledgment required. Deed'> must be recorde<l to be valid airainst parties without n01,ice of the conveyance. Deeds must he under seal, but witne.s is not required for validity although usual to have one. Lea;;es for more than seven years must he recorded. Trusts concerning real estate created only in writing, except those arising by implication  fffc~·:r ·£~~-i~~~:~;~:n~~tlg;~~if~g;:nt~ui~~~~l~<;;?usi~e ~~~e~~ negotiable paper. 2. Money collected on proce;;s by officer. 3. In band;; of public officer. 4. Due on contingency. 5. Trustee liable to execution on same. 6. Twenty dollars wages, for personal labor of t,be debtor, wife or minor child within one month, and 10 exempt in all cases. 7. In certain cases money due on life and ~;i~ft~~lo~iul!~) and from fraternal beneficiary associations. (See  f  Banks. Savings bank business and discount bauking permitted only under special charter, and under state supervision. 'l'rust companies may be organized under general statute;; on obtaining approval of state bank examiner. General statutes relating to discount banking repealed by Laws 1903, c. 166. Foreign banking associations having 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, re<1uiring reports under oath and examinations by bank examiner. Must not pay o,·er 2 1-2 per cent dividend semi-annuaIJy. Franchise tax is five-eighths per cent, regulated to favor home im·estments. Use of the words ''bank," ''trust company," and similar words in designating a business, forbidden, except by corporations organized as above or under laws of United States. Corporations, if licen. ed by bank commi. ·ioner may receive savings deposits from their employees. Dealers in securities must be registered with bank commissioner and are subject Lo certain regulations. Collaterals. (See Mortgages.) Conditional Sales, Consignment. . No agreement that personal property bargained and delivered to another shall remain the property of the seller until paid for, is valid unles 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 purcliase. This does not apply to goods consigned for sale. Conveyances. (See Deeds.) Corporations. Three or more persons may form a corporation to carry on any lawful business excepting banking, insurance, com;tructing and operating railroads, savings hanlcs. trust companies, or corporations intended to derive profits from the loan or use of money,  :ci  g~8;f:ri1era~!i}o~ :r~~::tr!it1oi1°i?i~~~~~!ti~;~f~~~i~~ o~~1J~ the State of I\Iaine. Corporations for oLher purposes, excepting for municipal purposes, and where the objects of the corporation can not be attained without special acts, are also formed under general law·. Organization becomes void unless corporation begins busines. within two years. Corporation may capitalize to an unlimited amount and may increase or decrease the amount of their capital or the par Yalue  ~~ ~~~~ i~f g~~~ ~a~ te ht:~~d ~~ g~i~i;r~y ~iafo~aJe}~.fcee~u~;g the judgment of the directors ~ to the value of such property or services is conclusive, the stock thereupon becoming fully paid. Only ori~inal sub ·cribers and takers of stock are liable on .·ame to extent of unpaid par value and then only for debts contracted during their ownership of stock, and action to enforce such lial.Jility mu ·t be commenced within two years and can be maintained only by a ju<lgment creditor of the corporation who shall ha.ye begun proceeding.· to obtain such judgment against the corporation during the ownership of such stock or within one year after ils transfer by such stockholder is recorded on the corporation books. Directors must be stockholders or members of another corporation which is a stockholder If corporation fails for six months to elect, directors, court may appoint. Corporations must pay to the ,'tate upon organization, a. fee as follows: Where the capital stock is 10,000 or less, 10; exceeding $10,000 and up through ~500,000, 50; above fi00,000, $10 for every $100,000 of capital. Other fees for organization are: a.tt.orne:rgeneral's fee ii; register of deeds Ii, secretary of state 5. The annual franchise tax is as follows: $5 provided authorized capital does not, eK<·eed $50,000: e ·ceeding $50,000 and up through 200.000, $10; exceeding $200,000 and up throu!?h $500,000, S30: exceeding S.'i00,000 and up through $1,000,000, $75; and the further sum of 'or$50 per $1,000,000 or any part thereof in excess of $1,000,1JOO. porations which have suspended lmsiness temporarily and have i>een excused from !Hing returns of amount of capital stock, etc .. are not liable for franchibe tax. Meetings of stockhol<lers must he held within tbo State. Clerk must be resident and keep stockholders' rel'ords in the State. His records are open to inspection by stockholders hut not by mere creditors. With the exception of banking corporati1)ns no puhlic reports are required except one to the secretary of st t.e showing names and re ·idences of ofllcers and amount of capital tocl{. Delivery of certificate of stock to bona fide purchaser or pledgee for value together with written t,ransfer of . arne or written power of attorney to sell, w sig11. and transfer same. siJmed by owner of certificate, tran. fers title again t all parties. J.'oreiin1 corporation,.,; have practically same rights as dome tic, but are required to file copy of charter with secretary of state, also a copy of the by-law , and are also required under sovere penalties to file certifl<'ate showing among other things the names of officers, amount of capital stock authorized, amount issued and amount paid In: also must me certificat,e ::;bowing any change in above particulars. Such corporations must also appoint 1  gf~1~:.  Depositions. Depo ·ition. may be taken bv disinterested justice of the peace or notary public; may be taken wh·en depouent is unable through age. infirmity, or sicknes' to attend at place of trial; when deponent resides out of, or is absent from the 'tatc; when deponent resides in town other than that in which trial is to be held, etc. Depositions so taken may be used in all ciYil suits or cau:-es, petitions for partition of land, libel<: for divorce, prosecutions for the maintenance of children, pet.itions for opinions in trial before court: of arbitrators referees and county romml:sioners, and in ca. es of contested senatoriai or representative elections. Depositiom; or affidavit. may also be taken in application_s for pensions, bounty, or arrear. of pay under any law of the Umted tates. Courts may issue com mi· ·ions to take d_epo~itions out of the State, or they may be taken out of State by a. J~t1c~. ~otary, _or other person empowered, but in the latter case It 1s w1thm tho discretion of the courts to admit or reject them.  11  0  0  fg  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 franrhises 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 except as specified below; full jurisdiction in equity; appellate jurisdiction en bap.c on question of law, from trial terms and superior courts. Superwr courts: In Cumberland County except eriuity, real actions, extraordinary legal remedies and some others; exclusive jurisdiction with exceptions to S,500 and In divorce. concurrent jurisdiction above $500; sits first Tuesday of every month, ex<'ept June, July, and August. Kennebec County; exclusive jurisdiction, with exceptions to 500; concurrent in habeas corpus and divorce: sits econd Tuesday at Augusta· of January and flr·t Tuesday of April and Rentemher second Tuesday of .Tune and 'November at ,,1aterville. Courts of prob~t!'l: Usual jurisdiction concurrent in equity of probate matters. ~ 1umc1pal courts and trial justice : Exclusive jurisdiN ion of forcible entry and detainer and in other c_ases up to limited amount; appeals j~di~YJ:trdg~rtourt where established, and elsewhere to supreme  I  Descent and Distribution of Property. (See Estates of Deceased Persons.) Dower. Abolished by laws of 1895, chap. l-'i7, taking effect as to persons not then married, May 1, 1895; as to others. Jan. 1, 1897. '\V1fe or hm,band may bar the ri~ht by inheritanre 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 incaparitated· with no gua1·dian in this state, other being a non-resident) may be barred of inheritance upon application to supreme judicial court and decree after hearing. (See Estates of Deceased Persons.) Estates of Decoa~ed l'er. om,. Eighteen months after notice or appointment allowed creditors t,o present claims and snit must be beg~n and serv~ce of process made within twenty months after such notice of appomtrneut. Allowance to widow and minor children. Ton-resident executor or administrator mado by court from estate. must appoint attorney. Time of demand or notice extended for ah. ent c~oditor _if_ furtJ?.er asset., but prior payment' not, di.'turherl thereby. .. o admm1strat10n ~ranted after twenty years. The real nud personal e ·tate of a per ·on decea ed int ·tate (excepting wild lands conveyed by him) l~eing subject to the payment of debts de cends ac ordini?" to the follow.mg rules: 1: If he lea Ye a widow and is me, one-third to the widow. If no 1 ue, one-half to the widow. And If no kindred, the whole to the widow. And to the widower. ball descon<l the same shares In his wife·. real an<l p r.·onal e~tate. There shall like,~i. e de. cend to the widow, or , !<lower, the .ame share in all . uch real estate of which tho docea ed wa . elzed during covert11re, aml which has not been barred, or relca ·ed, a· herein provided. In anv e,·ent, one-third shall descend to the widow or widower free from the payment:· of debts. 2. The remainder of which he dies seized. and if no widower, or widow, the whole, together with all wild land. shall descend in equal shares to hi clul<lren, and to the la" fnl Issue of a deceased child by ri"ht of repre entatlon. If no c.hil<I is lh·in~· at the time of bis death, to all hi' lineal descendant · equally if all are the. sa!Ile degree of kindred; if 1~ot. according t? the right of representation. 3. If no ·uch !. sue, 1t de cends to lu father and mother in equal share·. 4. If no such i. ·ue, or father, it de1 cends one-half to hi mother. 1f no ucb is uo or mother, I descend.· one-half to his father. In either ca e, the remainder, or if no u<'h issue, father or mother, the whole de·cends in equal sharCJ to his brothers and sisters, and_ when a br~ther or si ·ter has died, to hi or her children or grandchildren b~• right or repre:entation. 5. If no such issue, father, brother or . ister, it clesrends to his mother. Jf no such issue, mother, brother or . i tcr, it descends to hi. father. Jn either case, to the exclusion of the is ·ue of deceased brothers nncl sister.·. G. I! no S?CI~ issue. fat.her. mot her, brother or sister, it de-rend to his next of km m equal de"'ree: when they claim through diffcront ancestors. to .th~. e claimin' thr<,u •h a nearer ancestor, in preference to those cla1mmg throu~h an ance tor more remote. 7. \\'hen a minor dies unmarried, leaving r,roperty inherited from cit her of hi parent:, it de rends to the other children of tho same parent, and the i · ·ue or those deceased; In equal bare if all are of tho ame degree of ldnrlred; . If the otherwise, according to the right of repr entatiou. lnte. tate lea,·o no widower, widow or kindred, It ~ cheat to the • tale. An illedtimate child i an heir or i pnren , 110 intermarry; al o of it mother. nl o of I father, who adop it or acb.-nowle<lges It before a• ma!?i trat.e: and in any ca e where the child i treated as an heir it inheri from the line I and collateral kindred of the parent, and they from it. (:-;ee Will! .) Execution. is ue after twenty-four hour from rendition of judgment, returnable in three months, renewable ";thin ten years arter  BANKING AND COMMERCIAL LAWS-MAINE No stay except by order of court for cause and one year against ab ent defendants unless bond flied; levied on real estate by appraisal and extent, also on real estate and interests in the same and franchi es and personal property by sale; money and, by consent, circulating notes applied directly. Real estate sold on execution may be redeemed in one year. Attaching creditor may within forty-eight hours after notice redeem personal property of debtor which i subject to mortgage pledge. or lien; may also redeem real estate subject to mortgage or other lien. Special provisions for redemption of certain other special classes of property, such as buildings on leased lands, franchises, etc. Exeu1ptlons from Attaclnnent and Execution. Iloruesteads, not exceeding in value $500, when duly registered; debtor's apparel, nece~ary furniture for family, not exceeding in value $100; bed and bedding for each two persons; family portraits, bible , chool books 1n use; State statutes : library, S150; regular pew; cook stove and Iron warming stoves; charcoal, twelve cords of wood. five tons anthracite coal, fifty bushels bituminous coal, $10 worth of lumber wood, or bark; produce of farms till harvested; barrel of flour, thirty bushels of corn and grain, potatoes for family, one-half acre of flax and manufactures therefrom for family; tools of trade, and materials and stock, $50; sewing machine, $100; pair working cattle. or pair mules, or one or two horses, $300: hay to keep them; harness for each horse and mules, $20; horse sled or ox sled, $20; domestic fowl, $50; two swine, one cow and one heifer, if no oxen, horse or mule, two cows: ten sheep, their wool, their lambs until one year old; hay to keep them and cattle; plow, cart, truck or express wagon. harrow, Yoke with bows, ring and staple, two chains, mowing machine; fishing boat of two tons; debtor may elect if be has more than is exempt. Life and accident policies are exempt from creditors, except any exc, i of 150 per year premium paid within two years, except suits for necessaries. (See Attachment.) Foreign Jud.1m1en t. Action of debt lies on a foreign judgment and record of it is prima facie evidence of indebtedness. I.' concluo:;i ve 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 repre. entations, 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 or stock of merchandise 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 tate: nor to charge any person upon any special promise to answer for the debt, default, or misrtoings of another; nor to charge any person upon an agreement made in consideration of marriage nor to charge any person Upon any contract for the sale of lands, tenements, or hereditaments, or of any interest therein; nor to charge any person upon any ai;reement 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 insolYent 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. ~ o 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 receiYed title and obtained benefit. No contract for sale of goods, etc., of 30 or more in value ls valid unless purchaser accepts or receives a portion of the goods or gives something to bind the bargain, or in part payment thereof, or some memorandum is macle and signed by party charged or his agent. Contracts whereby one become agent for sale of lands become void in one year unless time for termination deflnitely stated. Garnishment. (See Attachment.) Husband and ,vtrc. Each may bold and deal with property lnclividually, subject to right of descent _in real estate. ( ee _Estates of Deceased Persons.) Husband not hable for debts of wife contracted before marriage nor afterward in her own name, nor for her torts. Equity Court has special jurisdiction of_ ~isputes between husband and wife relating to property. After pet1t10n to and deeree by probate court either may convey real property as if sole, and other is t>arred of all right by de ~ent where deserted ~ithout. jl;lSt cause or if actually li\·ing apart for Just cause, and de ·ert10n or livmg apart has continued one year. Interest. Six per cent or any other rate agreed upon in writing; judgments, same rate; accmmts and debts not on time be~r interest from demand. Special rate in time ~1otes does not contmue after maturity, unless so provided; nor after Judgment in any Ca! e; no 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-residen~ borrower ~vith intent to evade usury laws of state where borrower resH1es are v01dable. .Judginents. At law; by general order at end o! term on all c3.;c;es where verdict or default unless st.ayed by proceedmg.· ror new tnal, or continued for judgment by plaintiff; in equity, only by decree signed by justice. No lien except by ".irtue of attachment on mesne process (q. v.) and where specially provided by law. Lien. . (Voluminous Statute Provisions, for :\lec!Janics, l\Ia~erial Men, Hotel and Doarding-llouse Keepers, Stable l\.eeper , Agu;ter, etc.). Limitation of Actions. Six years; debt on unsealed contract or liability (except judgments); actions upon judgments out of t~te of court not of record; for arrears of rent_; of. account, assumpsit, or case on contract or liability expre. s or implied; waste; trespass qu. cl. and d. b. a.; replevin: case. e.·cept. lander and libel: I (?Ur years; against sheriff. Two years: as ault and battery, fa_lse llllJ?m,onment, slander, libel and penalty. One year: escape, c1re fac1a and on recognizance. ~}ighteen months: stolen bonds and C?upons. ~xc~pt by owner. Twenty years: witnessed notes, bank bills, ~pecialt 1e~. real action, other judgment ancl all. other pe:so_nal act10ns. _Suit begun when writ was made. lncapa<;1ty of J?la11.1t1fl', de~th of either narty before or within thirty days after e,:p1rat10n of time, fraudu1':lnt concealment of act.ion, absence from • tate when cau. e accrues or residence out of the State and absence afterwar<ls. extends time. Actions barred where both parties lived are barred here. • Tew Promise must he in writing or part payment must he made, to extend time. Against e ecutor: and administrator·, twenty months after !lling of atlldavit of notice given of appointment of e ecutor ~r adm~ng~mst. heirs istrator, unless further as ets 9r claim not mature~. or devisees one year after claim accrued; remedy m eqmty, if not Prosecuted '.within time limited and if without culpable negle t. Lin1lted Partner. hi11. :i\1ay consist of one or more general partners and one or more special. Special shall contrilmte ·peciflc amount of capital or property at cash value, and be not liable for debts beyond f'.hat amount. General partners must tran,act the bu ine.,s. Married ,vomen ha.ve same rights and liabilities as to property contracts and all suits as men. Wife's property not liable for her husband's debts nor his liable for her prior debt , nor for o hers made on her credit. 'She may sue and be sued as if sole. • 1ay not be partner of husband and not liable for family expense e.·cept by expre promlc,e. (See Arrest, also Dower, also Estates of Deceased Persons ' also Husband and Wife.)   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1895  l.Uortgages. Of real estate executed and acknowledged as deeds and must be recorded as to third parties; convey fee with condition of defeasance. Foreclosed without possession by serving or advertising notice, or by possession obtained peaceably, or by consent, or by suit. Redemption in one year from notice or possession; power of sale mortgages not authorized by statute and not much used. Supreme court may authorize a mortgage by a person in poS! ession of an estate subject to a contingent remain!ler. executory devic;e, or power of appointment, and such mortgage 1s binding on all parties. Chattel mortgages unless and until possession taken and retained by mortgagee to be good against third parties must be recorded in town clerk's oillce where mortgagor resides when mortgage is given; or, if any of mortgagees are non-residents, then in registry of deeds in county where mortgagee resides, when mortgage is given. .M ortgage on household furniture must state amount of loan, interest rate, and cost of procuring loan. Agreements, whether in form of note, lease, conditional sale, etc., or otherwise, that chattels bargained and delivered shall remain property of seller till paid for, must be in writing a.nd recorded as chattel mortgages; such mortgages and notes foreclosed by sixty days' notice to mortgagor or assignee of record or, if out of State, by publication; redemption in sixty days. Col: laterals _pledged on notes, etc .. or for the performance of anything, after fallure to pay or perform by the pleda;or. may be sold by the pleclgee, he first giving written notice to the pledgor of the proposed sale. or if his residence is unlmown, by publication of notice once a week for three successive weeks in a newspaper in the city or town where the pledgee resides, recording said notice and affidavit of . ervice  ~~~i~~ ~;da~t~~nt~~~;b!~~~1o~~}etg! ~~f/ct1~~o~!h: ing. Negotiable Instruments. Days of grace abolished except as to sight drafts. Falling due on Sunday or bank holiday payable and presentable for payment on secular or business day next succeeding. If holiday falls on Sunday then following Monday is deemed bank holiday. On notes payable at fixed place on demand at or after a time certain, no recovery unless demand proved there before suits usual demand and notice to charge indorser; notarial protest proves it; but one indorsing note at inception before payee does is a maker. Waiver of demand and notice, acceptance of bill, draft, or order must be in writing and signed. Recovery from indorser without suing maker. Rate of damages on protested bills of 100 or more payable in this country, 1 to 9 per cent according to place. Negotiable paper presumed to be taken in payment of debt or liability for which it is given, unless creditor would thus lose security be otherwise would have had. Legal holidays are January I; February 22; Aprll 19; May 30; July 4; first Monday in eptember; Thanksgiving; Christmas, and Arbor Day. If note reads "I promise to pay" all signers are jointly and severally liable. Partnership. Personal property of partnership, or interest of partner therein, exempt from attachment on mesne process, or seizure on execution for any individual liability or such partner; but is statutory provision for reaching same after judgment. Partners in mercantile enterprise must file sworn certificate with city or town clerk where business to be carried on, showing names and residences of partners, nature of business and partnership name. (See Limited Partnership.) Powers of Attorney. Usual common law rules. Probate Law. (See Estates of Deceased Persons.) Protest. (See Negotiable Instruments.) Replevin. Goods or chattels wrongfully taken or detained may be replevied by owner or party entitled to possession. Replevin bond must be double the value of property replevied. If dismissed without trial. suit may be brought on the bond, in which suit title may be shown to mitigate damages. Taxes may be collected by arrest, distress, or suit. On real estate they are a lien; proceedings to enforce by sale begin upon non-payment for nine months; non-resident owners have one year from sale to redeem by paying tax. costs, and 10 per cent interest from day of 0 ~~e~i~1~d:~:· Jria~e:~8a ~ii~ts~ f-~nii°~! ~t~~ts\!:~~~ i:yu~~!fa~ sold on first Monday in February in year succeeding the year In which tax was assessed; sale is of smalle t fractional part of interest to one who will pay taxes, interest, and costs therefor. State tax assec;sed by board of state asse ors on gross receipt' of railroads and express companies, and telegraph and telephone lines, collected by suit. Corporations, other than those especially provideµ for, pay a franchise tax of $5.00 if authorized capital does not exceed $.50,000.00; of $10.00 if capital does not exceed 5200,000.00; of 50.00, if capital does not exceed 500.000.00; of 75.00, if capital does not exceed $1.000,000.00; and the further sum of .'i0.00 for each Sl,000,000.00, or fraction thereof, in excess of 51.000.000.00. Foreign corporations pay annual license fee of $10. Inheritance tax ranging from 1 to 7 per cent, according to degree of relationship and amount of bequest, $500 exempt in all cases, and $10,000 exempt in case of certain near relatives. Special exceptions and exemptions from assessment, and special provisions for taxing personal property situated here hut owned out of the State. Real estate mortgages exempt. (See Banks.) "·agei,. Weekly payment required in most industries. (See Assignments, Attachment.) ,~arehouse Receipts. Holder deemed true owner so far as to give ,·alidity to contract, for sale of merchandbe covered, or to protect one acting on faith of such ownership; but one taking from agent as security for antecedent debt gets no greater right than agent. Title to property pa:;sed by endorsement. but not in blank, to purchaser or plcdgee in good faith. Property in warehouse may be attached as that of per'on named in receipt, or of last endorsee shown by books of warehouseman. Common law rules prevail generally. Wills. Wills must be in writing signed by the testator, or at his request by some person in his presence, and subscribed in his presence by three witnesses in presence of each other, may be made by any person of age and of sound mind, and may dispose of all property. ·wms executed in another tate or country according to laws thereof, may be proved and allowed in this State in the county where the testator had bis residence at time of decease: if proved without this State (at his domicile), may be allowed in any county here where he ha, property. "'idow or widower may within six months waive provision in will of deceased husband or wife and claim same share in per ·onal property as would have bad in case decea ed died intestate · (But see Husband and 'Wife.) uncupative will must be reduced to writing within six days or proved by .t,estimonr within six months, from time words spoken. To letters m such till four~een days after dece!\Se of testator. Not effectual to disoo e of more than 100.00 worth of property unless proved by three witnesses who acted at testator's request.  l?:il~l~~   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  l8%  BANKING AND COMMERCIAL LAWS-MARYLAND Arrest. No arrest for debts in this State. In criminal cases a senie1:ce :111ay be passed, imposing a sum of money a.s; a fine, and ~hen. m heu of payment by party, of fine imposed, he is liable to 1mpnsonment.  ~;itri~t 1  SYNOPSIS OF  THE LAWS OF MARYLAND RELATIXG TO  BANKING AND COMMERCIAL USAGES Revised by T. How ARD EMDERT, Attorney at Law, Baltimore. (See Card in Attorneys' List.) In general. Bagby's Annotated Code (1911) and Supplementary Volume (1914) embrace the Public General Laws of Maryland, including tho e of the 1914 session. By statute, the Code of 1911 ha.'> been made evidence; special reference to statutes in the following is therefore unnecessary. Acknowledgments of conveyances of any interest in real or leasehold property for above seven years, may be made within the tate, and in the county or city in which the land, or any part of it, lies. before a notary public, justice of the peace, a judge of the orphans' court, a judge of the circuit court of any county, or a judge of the supreme bench of Baltimore city. If within the State, but out of the county in which the estate conveyed lies, they may be made before a judge of any circuit court for the circuit where the grantor may be, or before any judge of the orphans' court for the city or county in which t.qe grantor may be, notary public, or a justice of the peace; the official character of the ju tice mu<;t be certified by the clerk of tbe circuit court of the county, or uperior court of Baltimore rity, under his official seal. or any judge of the supreme bench of Baltimore city, if grantor be in Baltimore city. If without the tate. they may be made before a notary public. a judge of any court of the United States, or of any state or territory court having a seal, or a commissioner of deeds for this State. The seal of the officer or court to be affixed to the certiflcate of acknowledgment in all cases. If acknowledged without the nitec! States, the acknowledgment may be made before any minister, consul general, vice or consular ag-ent or deputy, or a notary public, or a commissioner to take acknowledgments for tate of Maryland. o separate examination of a married woman is required. Defective acknowledgments cured. (See ( 'onveyance .) Actions. The forms of actions. which still savor of the common law are now very sin1ple, any plain tatemcnt of facts constituting a good cause of action being sufficient. Amendwent is allowed at any time before verdict. Equitable ,Jefenses are now allowed to be made in a court of law. although there are still Jaw courts and equity rourts having different and di tinct jurisdiction. Speedy judgment Acts are in force in Baltimore City and in many of the L'ounties. (See Suits.) Admini tration of Estates. The orphans' court of the counties and the orp-tiaru ' court of Baltimore Oity are t.he court of probate. In cases where decedent left a will, letters are granted to executor and executrLx named in the will. In grantin~ letters of administration, where decedent, died without leaving will, letters are granted: 1. To widow or child or children; 2. Grandchild; 3. Father; 4. Brothers and sisters; 5. ~!other; 6. Text or kin; 7. Largest creditor applying for letterR. In each cla.ss, males are preferred to female8. Bond is reciuired with two sureties, or one of certain local surety companies where authorized by their charter to act as sole surety. \Vhen testator request. in will that executor be excused from giving bond, court only require nominal bond for amount sufficient to pav estimated debts. Six months notice to creditors must be given by publication before e ·tate L distributed. Personal property must be appraised. accounted for and distributed through the orphan • court of the county or city in which decedent resided. All sales must be authorized and ratified by the orphans' court. B~· Act of 1 06, Ch. 246, above provisions were made applicable to .. ·e~tates of person. absent and unheard of for abo.-e seven years." This act has been held unconstitutional. Re-enacted with amendments. ( ct 1908, Ch. 125.) This act con titutional by deci'iion of Court of Appeals in case of Savings Bank vs. Weeks 110 Md. 7 . Affidavits. (Sec Aclmowledgments.) No particular form nece sary, but whoever can take an acknowledgment can take an affidavit. Affidavits always required in a mortgage a.'> to the bona tides of mortgage consideration; and the payment of tax on annual interest in certain counties. ( ee l\Iortaagcs.) Alien'!. liens. not enemie , may take and hold lands, tenements, and hereditaments acquired by purchase, or to which they would, if citizens, be entitled by descent, and may sell, devi e, or di. po~e of the same or transmit the , ame to their heir as fully and efl'ectually and in the same manner as if by birth they were citizen· of thi'i , tate. Arbitration. Disputes between partie. may be conducted by any judge or justice of the peace mutually agreed upon. pecial ae;reemcnts for arbitration of such disputes to be valid. Parties may be represented by an attorney, and award of arbitrator or arbitrators to be a judgment, and court may ~ive judgment and issue execution on the award. Ac-t 1904. C'h. 671, provides a means for the. cttlement of disputes between employers and emplovees by mediation or voluntary arbitrat.ion. ·  9  5  t~>  da~~~!1~:~J. f~~1:re~~ ;r ~•0:;~~~-n ·oi~i!°:e:f\~q~ii cases when the defendant is a non-resident or has absconded, affidavit beim~ first made by the plaintiff to the correctness of his claim and the fact that the defendant is a non-resident or bas absconded. They may be also obtained in connection with an original process when the creditor or some one in his behalf shall give bond m double the amount of tl!e debt, with sureties to be approved by the clerk, and make affidavit before the clerk of the court where the suit is brought th3:t the defendant is bon~ ~de indebted to the plainti.f:r in the sum claimed, and that the plamtiff knows or has good reason to believe that the debtor has absconded or is about to ab cond from the State ~r that the d_efenditnt has assigned, disposed of, or concealed, or 1s about to as 1gn, dispose of, or conceal, his property, or some portion thereof, with intent to defraud his creditors. or that the defendant fraudulently contracted the debt or incurred the obligation; or that the defendant has removed or is about to remove his property, or some portion thereof, out of this tate, with intent to defraud creditors and the attachment may be maintained, although the debt or obligation upon which the action is brought may not have matured but the date of the maturity of the debt or obligation must be set forth in the affidavit (Act 1 04, Cb. 64 ). A claimant may have the attached property released by filing a bond in double the amount of the appraisement. Any kind of property or credits belonging to the defendant, in the plaintiff's own hands or in the hands of'any one else may be attached. There is a special provision for capital stock of a corporation. The certificate itself must be seized. Credits not due may be attached, but wages, hire or salary not due can not be att~ched, and 90 per cent of wages, hire, or salary due shall !3-lways. be exempt. (Act 1908, Ch. 665.) Imprisonment for debt 1s abohshed. Defendant may be sued wherever ho does business. In addition to attachments against non-residents or absconding debtors for debt (i. e., a liquidated sum), as heretofore, attachments may now Le issued against such debtors in cases ari ing from contracts when the damages are unliquidated, and in actions for wrongs independent of contract, but in such case· no attachments can be issued until a declaration is filed setting out specially and in detail the breach of the contract complained of or the tort actually committed, verified by the affidavit of the plaintiff or some one in his behalf, and until a bond shall he flied similar to the bond required in attachments for fraud. (Code Art. 9.) All papers in attachment proceedings can now be amended, as in any other actions at law. (Act 1898, Ch. 44.) Banks. The Act of 1910, as amended by the Acts of 1912 and 1914. made important changes in the banking laws of this State. The law now provide' for the appointment of a Bank Commissioner with broad powers for the examination of all banking institutions in this State other than .l -ational Banks and an annual report thereon to the Governor. \Vhenever capital is reduced by impairment commissioner may require Bank to make such deficiency good within sixty days, and upon failure to do so may take possession of property and business of such institution and retain po ·e ion until affairs are finally liquidated. This also applies where the business is conducted in an unsafe or unauthorized manner. The requirements for the incorporation of such institutions are fully set forth in the act. This act also J?rOv~des_ roi: the incorporation and supervision by the State of savmg m<;t1tut10ns and trust companie . Chattel loan companies are required to take out a license pay a fee where ~:n~an is 300 or more, and inspected by the tate Banking DepartCollaterals. The com·ersion by any banker, broker, merchants, attorney, or agent of collaterals is made a misdemeanor. ( ee Code, Art. 27. Sec. 03.) Contracts. The normal condition of all persons is one in which they are capable of making any contract. The fourth and seventeenth sec-tions of the t-;tatute of Fraud are in force in l\faryland. Acts 1900, Cb. 362. make it no longer nece . ary to show that the consideration for a promise to answer for the debt of another is in writine;. A ciLizen can not make a contract with an alien enemy dw·ing the cont,inuance of ho. tilities. but alien . not enemies. may contract and hold real property as fully as citizens. The later cases decide contract of infant to be voidable anrl not Yoid; and they ar capable of ratification by infants on arri.-al at age of twent.y-one. The conti·acts of infants for nece · aries are binding upon them. The contract of a lunatic is voidable and not void. The statute provides that a married woman may en~age in businel s. contrac-t. ue, and be sued upon contracts and torts, ag if unmaITied. (Acts 1~98, Ch. 457 .) All gambling cont,racts and contrarts made on , w1day are void. ~onveyances. No estate or title to any property lying within this State. for any period above e,·en years, shall pas· or take effect unles the deed conveyin~ the same shall be executed, at·knowleciged, and recorded. ( ·ec Code. Art. 21, :ec. 1.) Every dee<! of real est.ate shall be signed and ealed by the gra.ntor and harg-ainor. and attested by at least one ,,itne.ss. ~ o words of inheritance ne<'e. sary. but every deed shall be construed to pas,, fee simple Litle unl"ss the contrary appear. .A scroll with the word ". ea!" therein by way of a ea!, is su!Jicient. A deed mu t bo recorded within six months from date, in county or Baltimore City, where land lies. but if recorded after this, deed, while valid between parties, is invalid as to deeds to bona tide purchasers without notice recorded prior thereto. A body corporate must embody in the deed it. elf the appointment of an attorney to acknowledge the deed as and for th corporate aC't of said corpo1·ation or have it acknowledged by the President or Vi<'e-Presidcnt without such appointment. 'Vendors' lien may· be released in original deed or upon record where recorded. ( ode Art. 66, .'ec. 31). Conveyance· defectively e:ecuted made valid by .Acts 190 , Ch. 105 and Act 1914, Ch. 259 and h. 421. orporation"I are organized under the authority of the General Incorporation Law, completely re,·isecl, Act 190 , hap. 240. Liberal provisions are made for general incorporation: only exception (for municipal purposes) is in the constitution. All corporations (under the general lawJ must pay a bonus tax of one-eighth of 1 per eent upon it authorized capital stock and any increase. Corporations ha\·e perpetual sucrc ·sion, may carry on business anywhere. maY issue bonds, and secure them hy mortgage of all property including franchises. Forcirrn corporation.· mu'-'t file list of resident shareholder:., and amount held. The corporation's certificate must, be filed and 2.:; paid; annual rcn wal fee of l is charl?ed. All corporations, not paJ-ing a gro.·s receipt tax (a long enumeration). shall pay an annual franchi. e tax on their capital employed in thi 'tate, of 50 cents per 1.000 but no 101 s than 25. If capital i oYcr 500,000 then one-fourth of J per cent on the exce.- to 5,000,000, etc. ·ection !J!) of Article 1 of 'ode. amended by providing for annulment of Charter for non-payment or taxes. Domestic corporations may i ·sue. all kinds of preferred and common tock, and e. c-hange .-ame for· stock or good will. Valuation in ab ·ence of fraud i · conclush·e. As to tock certificate·, see" niform Law ." Law amended by Chapter 59u, Act· of 191G. Chapter 31s. Act of Hit , provid · that all corporations who shall rPfn e or nel?IPrt to p, y franchise tax or ta. on capital ·tock for a period of two year·, the charter is annulled and forfeited.  BANKING AND COMMERCIAL LAWS-MARYLAND  Lses a , and )le to  liquiln all davit land They when e the . and ~ugbt sum  11i :;~~ d, or  rtion tdant ' that ,., or itors ligabut ortb the ount ging any pital dits  --------------------  Any corporation charterer! by this State, which for a period of ten days next preceding is wit,bout one resident agent,, whose name and p_ost o!Iice addre;;s is given in charter or filed with State Tax Commissioner. may be deemed a defendant in an atta<'lm1ent in lhe same manner as non-residence, unless said corporation t-hall bave been ncorporated under tbe Jaws of this State prior to June l!HO and ~;~;~/;i~tt one Director, who is a citizen of this 'tate. actually resid-  ere art1ts, de, "ch nth 00, ion A  :the nd act of cts of  al al  11 a  or: s~parate cleed,_or by agent or attorney properly constituted. The wifes property is protected by the Constitution from the debt of tbe husband. Interest. The legal rate of inter st is O per cent per annum. Judgments bear interest from their date. A person proved guilt v of usury forfeits the exce. s oYer the real sum or value of the good·;; and chattels lent, and legal interest thereon. Since 1876, where the whole debt, including tbe usury, is paid, the usuriou interest can ~~!r i)ite~~;fr~~~ t~:~kate ~}n£~e ~:m~.ber 1st, 1914, judgments  Courts. Terms and Jurisdiction. The circuit courts in the counties have jurisdiction at common Jaw in ca<;es involving more than . 30, and equity in all cases involving more than 20. They hold from two to four regular terms in each county at which they have a jury; there are, however, intermediate terms fixed by the rules, to which process may be made returnable. The circuit court a~d circuit court No. 2 of Baltimore city have exclusive equity jurisdiction i~ the ci~y. The superior court, the court of common pleas, ~nd Baltrmore city court have concurrent common law jurisdiction m case;; i~volyin~ ~o.re t_ha~ $100. Tbe court or common pleas h3:s ~xclusive Jurisdiction m msolvency, and the criminal court in criminal cases. Tbe orphans' courts in Baltimore city and in the <;:ountics have probate jurisdiction. Justices of the 'peace have Jut•isdiction to the amount of $100. The common law courts have thr~e terms in the year, and rule days every month in tbe year to ~luch process may be returnable. The equity courts have. ix terms 1Jn the year, beginning the first Monday of January. :\farcb, May, uly. September, and November. _neposition. ·when the courts are satisfied. by affidavit or otherw1 e, that there are material and competent ·witnes e re. iding without tho State, they will direct that a commission be i ued to take tbhe testimony of such witnesses. The commissioners are selected Y t_h~ court. and must qualify before some per. on authorized to admm1ste_r an oath in the state where they reside. The depositions, d uly certified by the commissioners, shall be admitted as evidence at the trial of tbo cause, subject to tbe same objections and exceptions as the s~me testimony would be if the witness had been personally Present m court and there examined. Part-ies have the right to be present when the testimony i taken under the commission. and must r~ceive rea.-,onablc notice or the time and place. Examination is ~estr1cted to the parties and interrogatories and cross-interrogao.~ies annexed to tho commission. Testimony of non-resident ~ls.l~tc~~ ~~ih~e upon proper notice, as provided by ec.  7,#  Ju_dgment are liens for twelve rears from date of rendition on any mterest of the defendant in real or leasehold property within the county where rendered. Tbey can be transferred from onP county to another by sending a copy of the docket entries to the clerk for record. The lien co=ences·rrom the date of the entry of the docket entries by the c)erk. Judgments are not liens on mortgages. Judgments are not hens on personal property until execution has issued and the writ is in the hands of the sherill'. (See Act 1890 Chap 558, a5 to examination of judgment debtors.) (See Suits.) ' Lien . (See Judgments.) Mechanics' Liens. Every building erected, repaired, rebuilt, or improved to tbe extent of one-fourth of its value is subject to a lien for work done or materials furnished for or_ about ~he same. Act of 1898, Ch. 502, aboli,hed lien for materials ful·?i bed for buildings in Baltimore city. Every machine wharf_. ~r bridge, cons~ructed or repaired is subject in like manner a.5 bu1ld1~gs are, to a hen according to the provisions of Code 1888, Art. _63, Sec. 22. All boats or vessels are subJect to a lien for materials furm. hed or work don~ in building, repairing, or equipping the same. Gara~es by Act 1918 gn-en lien for storage and accessories. To secure t~e l_1en_and lay foundation for enforcing it, the material man must ~1tbm six m<;mths after the la.st work has been furnished, flle a claim rn the supenor court for Baltimore City, or in the circuit court for the county. The liens are enforced by scire facias or by bill in equitv. Section 133 13, Bagby's Code, amended by Chapter 355 Acts of 19IU entitled "Additional Contracts." Every note, sale, or contract for sale of goods. and chattels wherein tbe title thereto, or lien ther on is reser~ed unt!l the ~ame be paid in whole or in part, shall be void as ~o th1_r~ pei:sons without notice until such note, sale, or contract be m writmg Stll'ned by tbe vendee and be recorded in the Clerk's office o~ Baltim9re City, or the counties. and such recording shall be sufficient to give actual, or constructive notice to third parties. Li.Initations of Suits. Accounts and notes are barred after three years, sealed in. truments after twelve years; judgments twelve years except against foreign corporations (no limitations). Act 1914, Cb. 846. A verbal promise or acknowledgment will revive a debt barred by the statute. Married \Vomen. Act of 1 98, Chap. 457, Code Art. 45, repeals and re-enacts the entire law in this ::-tate. :\1arried women may bold and dispose of their property lawfully a.<; if unmarried, but husband must join in conveyances of r al estate to release his interest. 1'1arried women may engage in business, contract, ue, and be sued upon contracts and for torts, as if unmarried. Married woman is alone liable for ante-nuptial debts and contract . Rusbaud is still liable for necessaries. Widow is entitled to dower in real estate, and one third of the per onal e tate 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 hw band's property. ,vhere the wife is adjudged a lunatic upon inquisition, and the finding remains in force, hu band may convey after acquired property by separate deed, as if unmarried. Mortgages are executed, acknowledged, and recorded same as deeds. and are not valid against creditors unless recorded within six months. There must be an affidavit made by the mortgagee or his agent at any time before recording, tbat the consideration is true and bona fide, and, in the four Counties mentioned below, that tbe mortgagee will not require the mortgagor, or any other per·son for him to pay the tax levied upon the mortgage interest, and upon tbe assignment of any mortgage except for the purpose of foreclosure, a like affidavit must be made by the assignee. If made by agent, he must, i!J addition,. m_ake oa~h that he is tbe agent of the mortgagee. A hke affidavit 1s required to chattel mortgages, and absolute bills ~f sale, both of which must be recorded within twenty days. The hen of a mortgage may, by ceasing to pay interest or any installment of the principal for twenty years, be barred. They may be foreclosed at any time after the debt becomes due and before the lien is barred. Mortgagees are required to pay a tax of 8 per cent on the interest convenanted to be paid in the mortgage, in Somer et, Montgomery, Frederick, and Dorchester counties. No tax in Baltimore City and other counties. (Code Art. 81. Ch. 187.)  ci~~:~  Descent and Distribution of Property. As to de cent, see Code 190!, Art. 46, and as to dist,ribution, Code, 190-1, Art. 93. A.n attempt to abrogate the Rule in helley's case has been made by Ch · 144, Acts Hll2. Dower. The common-law right or dower exists in :\Iaryland. and extends to equitable estates. By act l 898, the busban<l's dower was created; an e, tate of the husband in his wife's estates of inberitndce,. exactly equivalent to the wife's dower in her husband's estate. ev1se or bequest of real or personal property to the wife or husband 8 \all be construed to be in lieu of dower in land'> or share of personal es date, respectiYely, unless otherwise expressed in the will. If the W 1 oyv_ or widower renounces formally in writing, however, such prov1 ion made for her or him by the will, within ix month after the grant of administration on the estate of the decea ed husband or wife, t(hSe dower right and the share of personal property remain undi turbed. ea Married ·women.) Ex~cutions may issue and judgments may be renewed or revived by fscire facias at any time within twelve years from date of judgment or rom the expiration of any stay, and may be thereafter levied on a~y property of tbe defendant. In the circuit courts for the cthount1es there is a stay until the first Thur day of the term succeeding a rendition of the judgment, provided the judgment is obtained at tbe second term after the defendant is summoned. There is no ~tay_ upon judgments rendered in the courts of Baltimore it,y or by iustices of the peace in the city or countie , but execution may i: ue ~orthwitb. The defendant may stay tbe execution by superseding with sureties for six months. Copy of doclcet entries of judgment w(Ahen recorded in another county makes the judgment a lien there. ct 1890, Ch. 314.) Exemptions. No homestead Jaw. ·wearing apparel, books and tools (not kept for sale) and $100 of property in addition, whether same consists of money, land, goods. or money payable a insurance, benefit, or relief in the event of iclrness, hurt, accident. or death, atre exempt from execution, except on judgments for breach of promi a o piarry and seduction, not applicable to any but actual bona fide resident of this tat . Equitable interests in per ·onal propert,y can not be sold under execution, but may be levied upon, and the lbien thus acquired may be enforced in equity. Cho es in action may a attached. Foreign Corporation . (, ee Corporations.) F~reign Judgment . Judgments of tbe court of other states certified under the act of congress, are proper causes of action against any person subject to tbe process of the courts of thi 'tate. Fraud. ·when any false representation is made by one to another w ith the intent to defraud, and the defrauded party, thinking the a 1!aged fraud to be true, acts upon it, any contract thus made can not b enforced. But if the injured party knows such repre. entations to be false. it can not be said to bave influenced his conduct. For ~eneral doctrine in this State see l\IcAleer vs Hor,,ey 35 Md. 439. i".'ing checks or drafts without provision for acceptance is prima f ac1e evidence of intent to defraud, and is punishable as a crime Unless such provi. ion is made within ten days. Every per ·on buying merchandise in bulk shall demand and receive from the vendor a written statement under oath containing the names and addresses of all creditors with amount of indebtedneS! at lea ·t ll ·e days before the sale is consummated. The vendee at least five days before consummating such sale shall not,ify all of said creditors either personally or by registered mail of sucb proposed purchase. A sale ~ransfer of goods in bulk without uch notice shall as to all subs1stmg credjtors of the vendors be void. Chapter 370, Acts of l!H6, adds additional ection to Article 27 of Bagby s Code and provides that if any per on .-ball make, or c·ause to be made, either directly or indirectly, through any ae;ency, whatsoever, any false statement a· to his flnancial condition for the purpo. e of Pr~curing the delivery of personal prop rty, etc., shall be guilty of a misdemeanor and be fined not more than 1,000, or imprL':ionment for one )·ear. hapter 371, of the Acts of 1916 aclds new section 31 of Bao-by's 9ode and provides tbat any vendor of tock of ~ood. who, hall knowingly and willingly make or deliver any statement of which any material portion is false. shall b guilty of a misd meanor and upon conviction shall be fined $1,000, or imprisonment for one year. Garnishments. (See ttachments.) Husband and Wife. ( 'ee Dower. Divorce. and :\1arried \Vomen.) In this State the husban_d i~ not liable for w!fe' · ante-nuptial debts or contract . Husband 1s hable for neceS! arias of wife. Act. 1S98 Ch. 457, gives husband same intere t in wife', estate ru· wife ha in h usband's estate. Married women are expre .-ly authorized by the Acts of 1,~00. Ch. 033,. to }?eco?le partJ?er and to contract with husband. E1tber can relmquish mterest m other's real estate by joint  or   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1897  1  Notes and Bills of Exchange. Negotiable Instruments are deflped by Ch. 119 of tbe Laws of 1 98, which repeals all laws incon~_i.sten~ with the pwvi ions of t~is act. Section 20 provides a follows: An. mstrument to be negotiable must conform to the following requirements: 1. It must be in writing and signed by the maker or drawer. 2. It must contain an unconditional promi e or order to pay a sum certain in money. 3. 1'1ust bo payable on demand or at a fixed or determinable future time. 4. J:\Iust be payable to order or to bearer; and 5, where t,he instrument is addressed to a drawee. he must be named or otherwise indicated therein with reasonable cerrainty." ~t. negotiability is not affected by a seal. or by a provi. ion which \ uthor1zes the sale of collateral se urities in ca a the instrument be u_-,. paid at maturity. or authorizes a confession of judgment if the i?strument be not paid at maturity; or waives the benefit of any 13:w mtended for the adYantage or the protection of the obligor; or gives the holder an election to require something to be done in lieu of payment of money. It is not necessary that paper hould be ma9e payable at a bank or any fixed place. To charge indorser, notice o~ n~n-payment must at once be given to bim. Tbe time of matur1~y is regulated by Art. 13, as follows: "Section 10-1: Time of Matur1tr. ~very negotiable instrument is payable at the time fixed therem without grace. When the day of maturity falls upon Sun_day, or a holiday, the instrument is payable on the next ucceeding busrness day. Instruments falling due on Saturday are to be pre~ented for payment on the next ucceeding business day, except that m ·trument:'> payable on demand may, at tbe option of the bolder, be pre~ented for.payment befoi-e 12 o'clock noon, on Saturday, when that entire da~ is not a holiday." Legal holidays are: Christma . ew Yea;r spay, February 22, Good Friday, July 4, May 30, 1st Monday m September, 12th day of eptember, and the 12th clay of October, all clays of general and congre sional elections throughout the tate an~ any day of public thanksgiving or humiliation and prayer prorla1med by the governor or legislature, and all aturdays after 12 o clock _noon 1:tre legal half holidays. Monday is treated as. unday when mlllled1ately preceded by one of the holidays afore~aid. ~Y act 189., Ch. 19 , it shall be lawful for banks and bankers m the city of Baltimore to close their doors for bu iness at 12 o'clock ;10011, on each and every atw·day in the year and everv Saturday m the year, after 12 o'clock noon, hall be a '1eo-a1 half-holiday so f ar a.,; regards th_e . presenting for payment or acceptance, and 'the protestmg and _givmg notice of the dishonor. of bills of exchange and other ~egot1able paper, and for the. e purpo es shall be considered as the fir t day of the week, or unday, and all negotiable paper shall be deemed t-o be presentable on the ecular day next ucceediug.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1898  BANKING AND COMMERCIAL LAWS-MASSACHUSETTS  Bap;by's Code amended by Chapter 355, Acts of 1916. Notes wherein reservation of title is embodied must be recorded in the Clerk's office of Baltimore City, or in the counties. Power of Attorney. Every power of attorney authorizing an agent ot attorney to sell and convey any real estate, shall be attested ai;id acknowledged in the same manner as a deed, and recorded prior to or with the deed executed in pursuance of such power of attorney. A corporation shall have power to appoint an attorney for the same purpose, by its corporate seal. Such power of attorney shall be deemed to be revoked when the instrument containing the revocation is recorded in the office in which the deed should properly be recorded. Probate Law. (See Administration of Estates and Wills.) Protest is usually made by notary public. Notary must keep register of protests. A 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 prote t shall also be prima facie evidence that such notice ha" been sent or delivered in the manner therein stated. (See Notes and Bills of Exchange.) Replevin is a remedy to recover specific goods and chattels to whose possession the plaintif? is entitled. Also the proper remedy to recover posgession of goods rlistrained unlawfully. Bond must be  f~vthne ~~o~~~~~¾~tut1oa;~t~h ~~da::~o~~fnff;~JnJ,n an action in the name of the State for his or her use. Sales & Notices. Act 1910, Ch. 346, provides a Uniform Sales Act. Taxes. The county commissioners of the several counties of the State, and the mayor and city council of Baltimore City are directed to levy a tax annually upon real and personal propert.y situated within the State, and no person who is not assessed to the Slllll of $100 shall be required to pay any tax. Beginning with HH5, the State tax is thirty-two and one-third cents, beside the County tax. The County tax on Banks located and in business anywhere in .Maryland is uniformly 1 per cent. 'l'he property of religious, charitable, benevolent, and educational institutions, and cemetery companies is exempt from taxation. On timely application exemption may be bad for manufacturer's tools and machinery in actual use from Municipal taxation in Baltimore City and in some of the Counties, anrl beginning with 1915, from State taxation. Colle:-tors may sell property to compel payment of overdue taxes, upon giving due notice of sale, and complying with other requisites of statute, and any person interested in property may redeem within twelve calendar months from date, and in default of redemption, title to property vests in purchaser. Taxes are considered in arrears on first day of January next succeeding the date of their levy, and bear interest from that date. Trust Companies. Laws of 1920, Chapter 268, Section 46, subsection ninth. provides that trust companie-:, by it!'l directors, duly authorized officers or agents, shall have the powers as shall be usual in the carrying on of the han.1.."ing busme.«s. by buying, discounting, negotiating- promissory note--. bonds, draft , bills of exchange, foreign and domestic . and other evidences of indebtedness. Laws of 1920, Chapter 64. Trust companies tax one per cent, same as state banks. "Uniform State Law " intended for adoption by all the tates and adopted by Maryland: (1) i Tegotiable Instruments, (2) Bills of Lading, (3) Sale.'>, (4) Warehouse Receipts, (5) Stock Tran. fer, (6) Probate of Foreign Wills, (7) Uniform Bad Check Act, provides that drawers shall be given ten days notice to make good check, before pro ecution. Certlflcates of capital stock, bills of lading, and warehouse receipts, roughly speaking, (1) are negotiable, (2) represent the property certified to. Wills of land or personal property, and any codicil thereto, must be In writing, signed by the testator, or some one else for him, in bis 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 marmes in actual service. Every will or other testamentary instrument executed without this State in the mode prescribed by law, either of the place where executed or of the testator's domicile, or according to the forms required by the law of this State shall be deemed to be legally executed, and shall be of the same force and effect as if executed in the mode prescribed by the law of this State. provided, said last will and te tament ls in writing and subscribed by the testator; and if the testator was originally domociled in Maryland, although at the time of making the will or at the time of his death be may be domiciled elsewhe1·e, the . aid last will or te tamentary instrument so executed shall be admitted to probate in any orphan.· court of this tate; and when so admitted shall be governed by and construed and interpreted according to the law of :\Iaryland, without regard to the lex domicilii, unless the testator shall expres: ly i~~!rl:t_ci3~rc?. ifJ!~ti~rio i1!.iit~e;ffn~:ni~~~diiit~f mentary paper shall be subject to caveat or other objection to its validity after the expiration of three years from its probate. (Acts 1894, Cb. 405.) ,Yhen a per:;on is unheard of for aho,e seven years, and supposed to be dead. the orphans' court, under the provisions of Act of 1908, Ch. 125, ma.· grant leLLers testamentary or of administration as the case may be. Workmen's Compensation. By the Act of 1914, Chapter 800, provision is made for the in ·urance by employers of their employees engaged in extra-hazardous occupations, to provide for compensation for injurie · and death. TbL<; Act i intended to supersede within its scope recovery for injuries through negligence as a tort, and to do away with such defenses as '.'a.-;sumecl risk," "fellow en,ant" and, to souie extent, ''contributory negligence." The extra-hazardous employment . are enumerated at length, and the extent of compensation set out. Employers and employees, may by filing agreement, classify their occupation as extra-hazardous. alt.hou~h not so enumerated in this Act. Article 101, Amended by Chapter 86, Acts of J 916, so as to extend benefit:s to alien non-resident defendants upon certain terms.  SYNOPSIS OF  THE LAWS OF MASSACHUSETTS RELATL.G TO  BANKING AND COMMERCIAL USAGES Revised by RAYMOND T. PARKE, .Attorney at Law. Boston, Mass. (See Card in Attorneys' List.)  ~~~f!f!  ~rh~i;.ure:.r::  Accounts. Ex parte affidavit on claims and accounts is of no value. They must be established by evidence produced in court after suit brought either by testimony or deposition. Acknowledginents and Deeds. Acknowledgments may be made before any justice of t,he peace, notary public or special commissioner in the State; when the acknowledgment is marle by any person without this State and within any other state, territory or dic;trict of the United States, it may be made before any officer of such state. territory or district authorized by the laws thereof to take the proof and acknowledgment of deeds, and when so taken there shall be attached to the certificate of acknowledgment a certificate of the secretary of the state or territory in which such officer resides, under the seal of the state or territory, or a certificate of the clerk of a court of record of such state, territory or di trict, in the county in which such officer resides. under seal of said court, certifying as to the authority, of such officer to take acknowledgments and as to the genuineness of his signature. In deeds where there is more than one grantor. the acknowledgment of one of them is sufficient. Official taking acknowledgment should state date of expiration of bis commission. No separate examination or acknowledgment of wife joining in a release of dower nece. sary. 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, unle.: · recorded in the county in which the real estate is situated. Deeds must be under seal, a scroll being insufficient. No subscribing witness is nece·sary. Hele~ e of dower, homestead and other interests must be explicitly stated in deed, wife's joining in deed merely, being insufficient. Hu ·band and wife may make conveyances of real estate to each other e.·cept by way ot mortgage, as if unmarried, but no such conveyance shall have any efl'ect, either in pa.c;sing title or otberwi e. until the deed describing the property to be transferred is duly acknowled1?ed and recorded in the registry of deeds for the district where the land lies. Any interest in real estate may be tran ferred by a person to himself jointly with another person or persons in the same manner in wWch it might be transferred by him to another person. ~o interest in land except an estate at will can be created except by instrwnent in writing or by operation of law. Actions. There are three classes of actions: contract, tort, and replevin. Actions at law are begun by writs L ·ued in blank form by the clerks of the several courts. No declaration need be inserted in the writ, except in ca ·es of arrest on mesne process or of an attach· ment of a vessel. Suits in equity are begun by filing a bill upon which a subprena is issued by the clerk of the court. Actions begun by trustee process mu t be brought in the county in which the trustee or one of them resides or has his usual place of business. Admini tration of E tate . Administration or probate is to be taken out in county where deceased last resided. Executors or administrators are required to give a bond of about double the value of the personal estate. An executor "ill be exempt from giving sureties if testator so direct· . An administrator will be exempt if all persons intere ted in this tate except creditor:s con. ent and all creditors are notified by publication. In case a non-resident i appointed executor or administrator, be must appoint a resident agent. There are public administrators in each county to whom admiul ·tration I· ~ranted upon estates of person" who die intestate leaving property, and not having any husband, widow, or heir in th.is ·tate. nclllary, administration may he granted upon the e ·1ate of a non-r ident who dies leaving property in thi State. Every administrator and executor shall file an in rnntory "itbin three months. and publi;;Jt notice of his appoint-ment. -otice of a debt, and demand for it · payment hould be given to an executor or administrator within six montru after hi. appoint-ment and the debt should be paid after ·Ix months and within one year of the appointment. .. -u suit can be brought by a creditor airainst an executor or administrator within si. month after hiS giving bond, e.·cept on a claim not affected by the in:olvcncy of the e. tate. ,.~o uit can be brou~bt against an executor or administrator who has published notice of his appointment. after one year from time of his gi\'ing hontl, unless he ha,- received new assets after the expiration of tho one year, or unless further !ime i allowed by court, A creditor who ·e claim does not accrue within the one year maY cause as.,;et to be reserved to answer to his claim. \Yhen the estate is insuflicient to pa.y all claims, the executor or administrator shall represent the estate in. olvent and commi loner will be appointed to receive proof or claims, or the Court may receive and act upon the claim-;. Claims for funeral expense . la.st sickne · , and charges of administration. are not affected by the in ·oh·ency of the estate. li;xecutors and admini tTators shall render an account at least once a year. Aliens. Resident, or non-rec·ident aliens may ue and be sued anil may hold and convey real e tate. Arrest. In an action of contract, the defendant unless she is ad woman. may be arrest d on mei ne proc · provided the plaintiff', an except in act ions on nc!.(otiable in trument . the original party to tbde contract or hi:s executor or administrators make afJldavit an satisfactorily proves to the court to which the rit i returnable tha? be e pects to recover a um amountin!.( to 20: that he hclieves tha• defendant has property which he doe· notintencl to apply to paymenl of plaintiff's debt: that he bellove. that d fendant intend to leave the • tate. ctiun of tort, a:::ain.-.;t omen as , II a m n, except tor , lander or libel, may be hegun by arr ·t of the defendant, on the plaintiff or ome one in hi be.half making certain affidavits. A defendant arrested on me ·ne proce. s may give hail or h may apply tob take an oath that he do not intend to leave the . tato, or the oat for relief of poor debtors; on taking uch oath he i. relea.,;ed frODl arrest. .. To arrest can be made if the property of defendant is att~~ upon the same writ. On an execution, except for co ts, or for ~• mony, or one I ·suecl in an action of tort, or where debtor Ls; about to J.  1  BANKING AND COMMERCIAL LAWS-MASSACHUSETTS leave the State, he can not be arrested until he has first been citeu before a magistrate for examination, and it appearing that he has  'TS  f no court  ~i~~r~1!~te~e~~ee~~~u~i~~ntl~ ~~t~:g:!1";~~:i;Yt~ri~kehth!r:;!;~ 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. Attachment. All real estate, goods, and chattels not exempt, may be taken in attachment on the original writ and held as security for judgment, except that lands and tenements can not be attached m suits involving less then $20. Attachments may be made in suits bNy or against non-residents as well as in suits by or against residents. - o bond is required to make an attachment. hares of stock in corporations cannot be attached except by bill in equity. Attachment of shares of stock is not valid against a bona tlde transfer although not recorded in book of corporation. Debtor may di solve attachment by furnishing bond with sureties to pay judgment obtained or value of property attached determined by apprai ement. Debtor against whom judgment is rendered for over $20 may be subjected to sworn examination touching his property, and if he refuses to deliver up such property (not bein~ exempt from attachment). an order for arrest will issue and he can then apply to take the poor debtor's oath and be examined as to his property after notice to creditor. An ttachment is clissolved by death of the defendant if administration a~t~~a~i~eie~fh.n his estate upon application made within one year  f  Ranks. Tho banking business is extensively regulat _cl by statute. In general, savings banks, co-operatiYe bank·. trust companie.,, or other corporations or persons doing banking business in ::.\Iassachusotts ahre subject to supervision of cornmi sioner of banks. (General Laws, c_, ~G7. ch. 168, ch, 100, ch. 170, ch. 172,. No foreign banking asso~iatiou 01· corporat.ion shall transact busine · in :\las. achusetts until lu has received certificate from board of bank incorporation. There 3:re very few existing state banks, and Rev. Laws, ch. ll5. in view of ~t. Hl18 ch. 12, was not re-enacted in the consolidation of tatute.c; m G~moral Laws, e:l!ective January 1, 1921. Fore. tensi\e provisions re1ative to Savings Banks, see Gen. Laws, ch. 1G8. . 1'he tru.st company is the prevailing form of hanJ-ing institution. Fiftee? or more persons associating by written agreement may, upon comphance with statute, become a trust company. Agreement of association must set forth corporate name, purpose, city or town in ~tlas.<;achm;ett where bru;iness is to be transacted, amount of capital s Ock and number of hare·. ... ~otice of intention to form ti·ust company shall bo given to hoard of bank incorporation. and such notice must he published. nless the board issues a certificate that public ~onvenience and advantage will be promoted b)' e,,tahlishm nt of such a trust company, no furt]ler proceedings shall be had, but after one year tho application may be renewed. After the first meeting of tho subscribers the president and majority of hoard of directors ex~cute ill duplicate articles setting forth copy of agreement of association, names of subscribers and names and residences of officers, date <:>f _tlrst meeting; one of the cortilleates is submitted to bank comn11. ·siouer. the other together with records of pro po. ·ed corporation t o. C~lllmis.-,ioner of corporations and taxation. ppro\"al by commiss~<mer must bo endorsed if be finds that legal requirements, incluclm~ certificate of convenience, have heen met. The articles are filed with the secretary of state, with fllinµ; f o of one twentieth of 1 per cent of capital stock, and certificate of incor11orat ·on is ·ue . 13 eforn business can be commenced a certificate authorizing such must be obtained from board of bank incorporation. roen. Laws. ch. 172, section 11 ). A director of trust company must hold at least ten shares of unpledged stock, and majority of dir cto1s must be citizdi·1:ms or and resident, in .Massachusetts, and not over one-third of the . rectors hall be directors in any other such corporation. Except m smalle1· municipalities capital stock of trust compan~ must be not l ess 1,han $200,000; shares par value of $100 each. hntirc capiLal sbtocl, must be paid in in cash. Stockholders of trust company shall e personally liable, equally and ratably and not one ror another, ~o amount of their stock therein at par in addition to amount in, ested 1D ~uch shares, for all contracts, debts and engai;ernents of the eon>orat1on. In case of impaired capital, bank commi ioner h; · authority to act. Commissioner of bank.· has extensive power to require returns U:U<l to supervise and examine. Savings depa1·tmcnt. may he e:-;tabIished. The kinds of business which may be tlono arc prescribed by statute with considerable detail. BUls and Notes. 'fhe law of negotiable ui,,trument · is governed by the Negotiable Instruments Law, as amended. where appllcable; in other ca~es by tlJC law merchant. A per ·on h coming a party ~o a non-negotiable promissiory note payable on tme, by signature 1n blank on the back thereof, is entitled to notice of non-payment sahme as an indorser. A depositary of funds, subject to withdrawal by ~ eek or demand draft may pay a check or demand draft drawn on iht. by a depositor having funds on deposit to pay ·ame, not:withstanding is death, upon presentation within ten days after its date. . Prot.est of bill, note or order duly certified by notary public under h is hand and official seal is prima facie evidence of fact ·, stated in su9h protest and of giving notice to .drawer or fndor er. . . rhere are various statutory prov1. 10ns bearmg upon the vahd1ty 0 .r the notes of municipalities of this Commomrnalth. Where a negotiable instrument is not payable on demand. pr~·entment must be Inade on the day it falls due.· Where it is payable on demand pre ·eotment mu1-t be made within a reasonable time after its issue. An accommodation party to a negotiable instrument is liable thereon to I!, holcler in due course notwithstanding such holder at the time of ~!l.kmg the instrument knew him to be only an accommodation party. .Vhen the day. or the last day, for the performance of any act, !ncludi ng the making of any payment or tender of payment, , uthor1zecl or required by statute or by contract falls on ·uuday or on a legal holiday, the act may be performed on the next succee~ing . ocular or busine. s day, unless it is spec•iflcally authorized or rec1mred to l>e performed on Sunday or on a legal holiday. . Every negotiable instrument is payable at the time fl.-ed therein Without grace except that three days of grace shall be allowed upon a draft or bill of exchange made payable "ithin la achusotts at sight Unless there is an expre s stipulation to the contrary. \ here the clay, of maturity falls upon , aturday, Sunday, or a holiday, instrument, is Payable on next succeeding business day which is not a aturday. lnstrumont payahle on demand may, at option of hold r, be pre, ented for payment before twelve o'clock noon on Saturday when that entire day is not a hollday; provided howev.er that no per. on receiving any Check, draft. bill of exchange or pron11sso~y ?Oto payable on, demand, 8!1at_l ho <.:barged witl1 any neglect or om1ss1011 of dut~· or mcur any liability, for not pT'esenting for payment or acceptance or collection such _check, draft, hill of exchange, or promissory note on a 'aturday: J>rovicl cl al~o that the i;amo shaU be duly pres ntod for J>aym •11t ac<•eptanc·e, or collection on tho next st~c~·ooding hw inc s day. ' Under cer·tain drcumstances the or1gmal named payee of order Pa.per may he a holder in due course. No bank shall he liable to a depositor, or to the drawer of a bill of eh~change upon the bank, for an amount charged to or collected from un on account of payment by such bank of a negotiable in ·trument   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1899  upon which the signature of any party is forged, or which is made, drawn, accepted or indorsed without authority, or which is materially altered or the amount of which is raised; unless within one year after return of such negotiable instrument to such depositor or drawer, he shall notify the bank in writing that, as the case may be, the instrument was made, drawn accepted or indorsed without authority, that signature of a party to instrument is forged, or that instrument has been materially altered, or that the amount has been raised. Bills of Lading. The so-called Uniform Bills of Lading .Act is in force, and has been held constitutional by the Supreme Judicial Court. A bill in which it is stated that the goods are consigned or destined to a specified person is a non-negotiable or straight bill. A bill in which it is stated that the goods are consigned or destined to the order of any person named in such bill is a negotiable or order bill. A non-negotiable bill cannot be negotiated, and indor:ement of such a bill gives transferee no additional right. A negotiable bill may be negotiated by indorsement of person to whose order goods are deliverable by tenor of bill. Such indorsement may be in blank or to a specified person. If indorsed to a specified person. it may be negotiated again by the indorsement of sucn person in blank or to another specified person. Subsequent negotiation may be made in like manner. A negotiable bill may be negotiated by any person in possession of same, however such possession may have been acquired if, oy the terms of the bill, the carrier undertakes to deliver the goods to the order of such person, or if at time of negotiation bill is in such form that it may be negotiated by delivery. Indorsement of bill does not make indorser liable for any failure on part of carrier or previous indorsers of the bill to fulfil their respective obligations. Any provision in an order bill that it i non-negotiable shall be void. Bills of Sale. A bill of sale of personal property intended for security must be recorded, the recording provisions as to mortgages of personal property being applicable. See Chattel ::.\llortgages. Chattel Mortgages. Chattel mortgages must be recorded in the records of the city of town where t,he mortgagor resides when the mortgage is made, and in the city in which he then transacts business, every mortgage, must be recorded within fifteen days of the date, until recorded the mortgage is not valid except between the parties and record subsequent to time limited is void. If mortgage is given by non-resident mortgagor, record must be made in city or town where property then is. If record in two places is required, and mortgage is recorded in one place within fifteen days. it may be recorded in other place within ten days after date of first record . Conditional Sales. If a contract for sale of personal property is made on condition that title shall not pass until purchase money has been fully paid, and vendor upon default takes possession of property, the vendee may within fifteen days after such taking redeem the ~WEerire:istt~~~n a~f 1~!It3gc~~r;~.n~c:d t~:p~~;e;~~~mtto t~:~d~~paid There are special statut,ory provisions affecting conditional sales of furniture or other houc;ehold effects. By statute no conditional sale of heating apparatus, plumbing goods, ranges, or other articles of personal property which are afterwards wrought into or attached to real estate, whet,her fixtures at common law or not, shall be valid against any mortgagee, purchaser or grantee of such real estate unless not later than ten days after delivery thereon of such personal property a notice in form prescribed by statute is recorded in registry of deeds of district where land lies. Statute also applies to registered land. In the ordinary ca e, contracts of conditional sale need not be recorded. Selling or concealing personal property held by veudee under a written conditional contract of . ale, before performance of condition and with intent to defraud. is a criminal offense. , Corporations. By special act of 1!)0:3, chapter 437, tho law of business corporations was revised and as amended. and now codified in General Laws. applies to all corporations organized in this commonwealth for the purpose of carryinµ; on business within the commonwealth for profit, except the followiJ:1µ;: Banks, saYings hanks, cooperath-e banks, trust, companies, surety or indemnity companies, safe deposit companies, insurance companies, railroad or st,reot railway companies, telegraph or· telephone <'ompauie , µ;as or electric light, heat 01· power companies, canal, aqueduct; or· water companies, cemetery, or -rcmatory companies, or any corporation which now have or may hereafter haYe the right to take or condemn land, or to o.·ercise franchise in public ways, prnvidl'd that corporations, formed for purpose of dealing in real e tate ,a:hall state the term of tho duration of the corporation, such term not to exceed fifty years. Throe or more persons may ru sociate toµ;eth rand form a corporation for carr~•ing on any lawrul busiI1es · nut included in the ahoYe pro\"isions 'uch a corporation must have a capital or not l~s thau '1,000, if ha\'ing shares onl~· "\\ith par \'alue. There is no maximum limit. llusine s corporat,ions may create shares or stock with 01· without par value. and cm·porations with stock with par value may, by appropriate proceedmgs, change such stock to stock without par value. The stock may be divided into two or more classes with such ~~efi~~icei,yv~~~g a~~;;::nrir~~~~~~atti:. ~~~~cacl~~s o;-:a:z~ tion of the associates and filing a copy of the agreement of associatio11 with the commissioner of corporations and on payment of a fee of one-twentieth of 1 per cent of total amount of author• izod capital stock with par value, and fi\c cents per share for all authorizc•d share· without par value, hut in no case !es,, than :;o. a certitieate of incorporation is issued hy the :c-ccrC'tary of state. The capital stod{ may be issued for cash proport~•. tangible or intangible sc,·vicos or expenses, but not for notes. Th amount or capital st.ock may he increased from time to time. Th<' co!'poration must have not le. ·s than throe directors, president, cle!'l and t rea:·ur r. The clirc-ctors, treasurer, and clerk are elected hy tbe stockboldors. The prl'sident is chosen by and from the board of clircciors. The clerk must ho a resident or the commonwealth. • leetings or stockholders must bo hold within the commonwcalih, but directors may meet within or without the commonwealth. Voting by proxy is permitted, hut no proxy dated more than . ix months before the meeting uamed is valid. Any corporation may hold, purchase, convey mortgage or lease such real or personal property as tho purposes of the busine. - may require . Every such corporation i' required to illo an annual report of its co11cliiion, and if its capital stock i.· over. 100,000, har .· without par value being taken as of . 100 in value, to file a written statement under oath hy an auditor. It, is also required to make an annual return to the tax commissioner. Every foreign corporation which bas a usual place of business here. or is engaged here permanently or temporarily in the construct ion, ernction, alteration or repair of a building, bridge, railroad, railway or str_uc~ure of any kind, shall before doin~ business here appoint the comm1ss10ner of corporations, its attorney for tho se1·vice or process, such authority to continue as long as any liability remain outstanding against it in this commonwealth, and shall flle with the commissioner of corporationA a copy of its chart.er, articles or certificate of inc?rporati~n, . by-laws, and a certificate setting forth its name, l?cation of prmcipal office, names and addre scs of its oflicor ~ate of its annual meeting, amount of its capital stock authorized anci i,,sued, the number and par value of it shares, the amount paid thereon, and details of any payment thereof not mad in money Such !:0~1>orations are required to file annual . tatements with the comn11,;s10nor of corporations howingLtheir condition.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1900  BANKING AND COMMERCIAL LAWS-MASSACHUSETTS  Courts. Terms and Juri,;diction. Trial justices may severally hold courts within the rounties for which they are appointed, and shall have oril?'inal jurisdiction, e ·clusi ve of the superior com·t, of all actions of contra<'t, tort. or rcplevin. where the deht. or damages demanded or value of the p1•opcrty alleged to be detai11e•l does not exceed 100, anr! concurrent jnri.·diction with the superior co11rt, of such actions where such amount exceeds $100 and is ie,:;s than . :ioo. Polire and district courtll may in their re,,pective countie. have original jurisdiction, exclusive of the Superior 'ourt, of actions of contra<'t tort or replevin, in which the debt or damages demanded or the value of the property alleged to be detained does not exceed $100 and have original and concurrent jurisdiction with the Superior Court of artlons of contract, tort or replevin in which the debt or damages demanded or the value of the property alle:sed to be detained is more than ~ lOO and does not exceed Sl,000. The supreme judicial court has ori~innl jurisdirtion in all equity matters and may on appeal hear nil mattei·s determined by the probate court, anrl determine questions arising unrlor uperior court has jurisdiction where the amount claimed exwills. ceeds 20. Municipal court of the city of Bo ·ton has jurisdiction concurrently with the uperior 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 his U<;ual place of busines.s in the county of Suffolk. The Land Court has exclusive original juri diction for registering titles to real estate under the Torrens system. The Probate Courts have jurisdiction over administration of e ·ta.tes of deceased persons, matters of adoption, guardianship, conservator, hip, trusts under wills and written instruments, petitions for separate support. and of partition of land. There is a Probate Cou1·t and Re1,1;istry of Probate in each county. Ju:i~f~f ycj~~~iction is lodged in the Superior Court and in Supreme Depo itions. Taking of such is governed by statute and rules of courts. The commission issued to take depositions contains full instructions to magistrate how to proceed. Descent and Distribution of Property of Decedents. After deducting widow's allowance and allowances for minor children, and payment of debts and expenses of administration, the remaining personal and real estate is distributed as follows: If deceased leaves no issue. surviving husband or widow shall take $5.000 and one-half of remaining real and personal property. If deceased leaves issue, surviving husband or widO'w shall take one-third of remaining real and personal property. If deceased leaves no kindred, survhing husband or widow shall take whole of remainin.g real and personal 11ropcrty. A husband on death of wife shall hold for his life one-third of all land owned by her at any time during coverture. estate known as tenancy by curtesy. Wife i entitled to dower at common la,\·. But in order to be entitled to such curtesy or dower election and claim therefor must be filed in re1?istry of probate with six months of approval of bond of executor or administrator, and such election i a waiver of the interests on real property above mentioned. Probate Court assigns dower or curtesy. Rights of curte y which exist on February I, Hl19, may be claimed as above provided, but in such case husband shall take no other intere ·t in real or personal property of wife, and except as above prCi erved curtesy at common law is aboli.·hod. ubject to all the above. the re ·t and residue of intestate property is distributed as follows: 1. In equal share1- to children and issue of any deceased child by right of representation; if there i no urviving child. then to the other lineal descendants if all are in same de~ree of kindred, otherwi. e by right of representation. 2. If intestate I aves no issue. then in equal shares to father and mother. 3. If no issue nor mother, then to father. 4. If no i ue or father, then to mother. 5. If no i.· ue, father or mother, then to brothers and sisters and to issue of deceased brothers or sisters by right of representation: if no surviving brother or sister, then to issue of such equally if all in same a.egree of kindred to intestate, otherwise by right of representation. 6. If he leaves no i sue, no father, mother, brother or sister or issue of decea ed brother or sister, then to next of kin in equal degree. but if there are two or more collateral kindred in equal degree claiming through different ance to1·s, those claiming through neare t ancestor are preferred. If intestate leaves no kindred, husband or widow, estate escheats to commonwealth. Executions can not issue until twenty-four hours after judgment rendere<l, and an original execution must be issued within one year after plaintiff is entitlerl to sue out the same. Original executions in all courts are returnable within sixty days alias executions five years. Exemptions. Homestead, if recorded, to the value of SS00. Necessary wearing apparel of family, certain specified articles of household furniture, and "300 woI"th in addiLion thereto. library, i>0; tools and implements .• 100; stock, 100; boats and fishing tackle, etc ... 100; one cow, six sheep, one swine, and two tons of bay. sewiu~ machine. nece·sary wearing apparel, pew in church, etc. ::\Iaterials and stock designed and necessary for carr:ving on his trade and intended to be u,ed or wrought therein, not exceeding 100 in Yaluc. . ha.res in co-operative associations not exceeding ~20 in value. funds of.railroad relief societie ru se went in urance benefits, uniforms, arms, and equipment of militia officers. :Factor's Act. A factor or other a2ent intrusted \\ ith possession of mer<'handi.<;e or of bill of lading consig-ning merchandise to him with authority to s •ll the same shall b deemed the true owner of suc·h mcrchandi.·e. so far as to give vali<lity to any bona fldf' con ract, of sale made by him. Bona fld consig-nces from ·hipp<•1-s in lawful possession have liens for aclvanee · or ·ecurities to shipper. Bona fide pledges from consignees or factors ar • also protected. Frauds, Statute of. ~ To action can be brought to charge an executor or administrator on a. special promise. to charge any person upon a special promise to answer for debt, default or misdoing of another, upon an agreement marle on cowicleration of marriac:(e. upon a contract for ale of any intere ·t in land. upon an a~eem nt not to be performed within a )'ear. to charge a cli charged <lcbtor. unless the promise, contract or agreem/lnt or some memorandum thereof is signed by the party or hy his aut,horizf'd agent. , ·o agreement to make a will, or to devise 01· to !.(ivc a legacy is binding unle ·sin writing. No contract of sale of per.·onal properly of ~;'iOO or over is actionable unless there is part payment, accept a.nee and receipt of part of the goods, or some memorandum in writing signed by party to be charg'cd or his agent. In olvency. There is an insolvent law, but it is superseded by the National Bankruptcy Act of 1898. As to insolvent estates of deceased persons, see Ad.mini. tration of Estates. Gifts between Husband and \ ·ife. Oifts of personal property husband and wife shall be vali-1 to sam, extent as if they were S!)le. Holiday·. January 1st, ~ew Year's Day; February 22nd, Wa.·hington's Birthday; April 19th. Patriot's D;:.y; :'.\fay :30th. DeC'oration Day; July 4th, Independence Day; First :\londay in .·eptemher. Labor Day; October 12th, Columbu... Day: • •overnber 11th, Armi ·tice Day; Thanksgiying Day; December 25th. Christn1a, Day. Interest. Legal rate is 6 per cent. There are no u. ury laws, but there are certain statutory provisions relative to interest upon small loans. Judgnwnts. .\. jud~mcnt or clcere<' of a court of record of the or of any state tlwreof shall he pr ... um cl to I><' paid Unitl'tl Htat and satisfied at the expiration or t wcnty years after it was render 'd,  Limitation of Suit,1. Contract express or implied and not under seal and not otherwise limited, six year;,;: real actions, those upon an attested note, if suit is brought hy original payee or his executor or administrator, anrl per.·onal actions on contracts not limited. twenty years. Absence from th<' State prevents the running of the statute of limitations as to a defendant until he comes into the State. If the person entitled to brin2 an action is a minor or is insane or imprisoned when the right to bring such action first accrues. such action may be commenced within the time hereinbefore limited after the disability is remo,•ed. The statute does not run against, those residing out of the State. 'ee also Admini.stration of Estates. 1'-larried "'omen. The real and personal estate of a married woman, acquired at any time, remains her sole ancl separate property, not suhject to the coutrol of her hw band, nor liable for his debts. ?l,larried women may carry on trade or business. make contracts, sue and be sued, in all matters relating to their separate property, and such contracts are not binding upon the husband. Wife carrying on business on own account must record certificate with city or town clerk; neglect to do this renders her property so employerl liable for hu ·band's debts, and renders husband liable for her debts thus contracted. l\lechanic's Liens. Subject covered by statute. l\.Iortgages of Real E:state. Power of sale mort2age is universally used. Foreclosure is regulated by statute, requiring publication prior to sale, and ale bar· redemption. ~Iortgage · may also be foreclosed by entry and peaceable possession for three years. Sales of Per.;onal Property. Uniform 8alcs Act adopted in mos, is now Gen. Laws ch. 106. There is a Bill,; of Lading st::itute, (Gen. Laws ch. 108), and Gen. Laws ch. 105 relates to warehouse rcce:pls. As to sales of . ,iOO or over, sec Frauds, Htatutc of. Sales of merchandise in bulk arc fraudulent unless the pro,isions of Gen. Law1, <"h. l 06, sec. 1, arc r·omplicd with. Delivery of a bill of sale is not constructive cklivery of the goods. Delivery of possession of goods sold is essential as to third persons without not ice who 1m1·chasc same goods for Ya!uc, ,,r as to atta,·hing creditors without, notice. Vendor's retention of possession after sale is prin1a facic evidence of fraud. As to conditional sales. sC'e that topic supra. Statutes. Oe1w1·al rnvision and consolidation of statutes, efl'cctive January 1, 1921 under title of General Laws. Stock Tr nsfer. This subject is covered by Stock Transfer ~\ct as codified in Uen •ral Laws. Suits. Ch·il actions in general, except those concerniJ1g land (if one of the parties lives in the. tate), must be brought in the county where one of them lh·es or has his usual place of busines!'. But in lower courts Yenue depend. on residence or place of busine~s of defendant. 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 ~ive juri diction 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 , tate may also be arrested on mense proces and held to bail. A nonresident plaintiff L usually required to furnish indorser for costs. See also Actions, supra. Taxes are a,._-;e · ·ed 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 . ell 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. Tru tee Proce . 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, etrects, or credits of defendant in hand of a third person may be attached and held to sati fy final judgment. See alc;o Actions, supra. Warehouseman and W'arehouse Receipts. The Warehouse Receipts Act as codiflcd into Gen. Laws is in force. Wills. Every per·on of full age and sound mind may make a will. Will must be signed by testator, or by some person in bis behalf. by his express direction, and be attested and subscribed by three or more competent witne · es in his presence and in the presence of each other. A will executed in mode pre cribed by the law either of place where will is executed or of place of testator's domicil, shall he deemed legally executed and shall be of same force and effect as if executed in mode pre cribed by laws of Massachusetts provided will is in writin~ and subscribed by testator. As to waiver of provisions of will bY husband or wife, sec Descent and Distrihr:it n, :-.u1,ra, .. bu Cc.icral Laws ch. l!JO, section 15  BANKING AND COMMERCIAL LAWS-MICHIGAN SYNOPSIS OF  under ,on an tor or wenty tatute e. If rnprisaetion ~r the iding  THE LAWS OF MICHIGAN RELATING TO  BANKING AND COMMERCIAL USAGES  arried rerty, debts. s, sue r, and rrying town )le for s con-  samP dor' ...; raud. ctive r ~\<.:t  don the two o the ector tions ttery ·ts of Id to ouse will. f. by more tber. here med uted ·itin~ II by :icral  R vised by HENRY ,vuNSCH and EDWARD F. WuNscn, Attorneys at Law, Detroit, Michigan. (See Card in Attorneys' List.) fAcknowledgments of real estate instruments may be before one o. the fo_llo_wing officers: 1. Within this State: Any judge, clerk or comm1ss10nor of any court of record, notary public, justice of the r:!-1,ce or master in chancery. The official should certify that "On 1s day before me personally appeared .......... , to me 1..--nown to be the person or persons who executed the foregoing instrument and_ acknowledged that he (or they) executed the same as his (or the1_r) free act and deed." Notary's certificate must show date of e~Plration commission. Such im;truments must have two subscribing :ttnesses, 2. In any other state, territory, or district of the United b •ates: Harne officials as described above or any officer authorized J'. t_he laws of such state, territory, or district, or before a comm1ss10ner appointed by the Governor of thi State for that purpo e. Any such instrument may be executed according to the laws of any c1ch other state or territory. If officer has no seal, certificate of the ~rk of the county or district, or of the Secretary of State within wh1c~ taken shall be attached. 3. In any foreign country: notary PUI!dhc, or minister plenipotentiary, minister extraordinary, minister st"i ent, charge d'afi'airs, or comlnissioner or consul of the United ates. appointed to reside therein. re Actions. Common law forms or pleadings are used. but in some spects modified by statute. on-resident plaintiffs must give security for costs. ~d~nistration of E tates: In probate court of each county. g1a1ms are pa sod on by judge of probate or commissioners appointed . reach estate; within such time allowed by the court, not exceeding ~n rrst instance one year nor loss than four months; may be extended s·o to exceed two years from date; the court mav revive commision any time before estate is closed and allow ft1rther time three months to exalnine any claim: an appeal to circuit courts from allow~nfce or disallowance of any claim. All clainis barred, not presented e ore administration is closed:i Ahdministration of intestate estates is granted: 1st. to surviv~g usband or wife, or kin or grantee, or such one of them as judge ~Y ~ppoint, or as they may request. 2nd, to one or more of the Prmc1pal creditors. 3rd, to such other per on as the judge may think Pigpor. Non-resident administrators and executors appointed in ihi ers· state , territories, or foreign countries cannot sue as such in s tato without procuring administration in this tate. Affidav~ts may be taken by any judge, master in chancery, clerk of c~urt, Justice of the peace, police magistrate, notary public, or circdUlt C<?urt commissioner. Any oath authorized, or required to be ma e, ~ithout the "tate for use in judicial proceedings here, must be authent1_catecl by judge of a court having- a . eal, and the genuinene s ~f such Judge's signature, existence of the court, and that such judge a member thereof, cerU0ed by the clerk of the court under the seal ereo_f.. If in any other state or territory, may bo taken before a com1!1L'>Si~ner appointed by the governor of this State, or any notary I>ltbhc !)r .Justice of the peace author~ed by the laws of any such state or territory to administer oaths therein. In actions at law affidavits of amount due on open and stated ac~ounts, attached to and served with proce. ·' a.s commencement of iu it make a prlma facie case, unless denied by the defendant's affidavit 1ed and served with plea. Aliens. :i\Iay inherit or purchase and hold and convey personal and real estate. _Arbitration. Competent parties to any controversy which is or might be the ubjoct of an action at Jaw or suit in equity, may agree to arbitrate. and 3urlgment of any circuit court re11dorecl upon the award. ~o arbitration of claim of any per ·on to any e,- ate in fee or for life in real estate. Arrest. lly writ of capias in personal actions in tort and in actions f1r money collected by any public omcel'; or upon pi·omise to marry; a so by warrant allowed by any justice of the peace or judge of a court of record, under tbe fraudulent debtor's act, when the creditor hfas commenced suit or obtained judgment and tho debtor has clisposed 0 or concealed. or is about to dispose of or conceal property liable to execution or the debt was fraudulently contracted. .Assi~nments for the uenefit of creditors are void unless made without preference ; must comprise all of assignor''- property not 8 empt from execution. Tho circuit court in chancery ha superv sory ju1·isdiction of such as.·igmnent . Attachments. Writs may be issued from ju ·tire and circuit courts 0 !1 affidavit showing: debt, due on expre.· or implied contract, and either that the debtor has absconded or is about to abscond from ~~o State or has ruc·signe<l or disposed of or is about to ru.sign and ispose of his propertv with intent, to defraud his creditors; or i a uon-resident of the state. or a forei,m corporation. ~lay i. sue from le circuit court for debt not due hut to become due, upon satisfactory .bowing to the circuit judge, but in such cases judgment cannot be taken until debt is due. May issue in actions of tort against non-residents in certain cases. Banks. Incorporation of: Any number of person not less than fl ve may ru sociate to establish for a period not to exceed thirty years, ~?m~ereial banks. savin~s hanks, and banks havina; fOI_' both classes. :aP1tal required is graded- 20,000 to. 250.000, a,.cordmg to populat~on or cities or , illag •s where conducted. pon filing articl s of asso~iation, commissioner of banking department and ::;ecrotary of ...•tate 1ssne certificates of organiza.tion; hoard of directors cho. en by the stockholders. No more than the legal rate of intero ·t in advance s~all be received; file correct list of stockholclers with commi ·sioner banking, and county cleric and report four times a year LO IJe pubished in newspaper whore bank is conducted. ommorcial loans, 1ot to exceed 50 per cent of the capital, on real e.·tate secUt'ities, by ,wo-thirds vote of directors, except to secure debt· due the bank. Savings deposits payable as directors pre cribe; commercial deposits Payable on demand. Banks combining commercial and savings deposits cannot issue post notes nor any bill or note or certificate as md oney. Savings depositors p1•eferrod in di. trihution of savings apartment funds. Stock.holders inrlhidually liable equally and ratably and not one for another to the amount of the par value of stock, for the ... benefit of depositors. All transfer· of nroperty and payments of money after actual or contemplated insolvency to pre-  ~1  f  ff  t   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1901  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-filth 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 fc!r payment of a forged or raised check unless notiiled within three mouths after return of voucher. All shares of bank stock shall be assessed against their owners in the township, village, or city, where the bank is located, taxes not paid by stockholders, bank's duty to pay. Tru t deposit and security companies may be incorporated under the general laws of the State applicable thereto. Seven or more persons may a.'>sociate to establish-capital graded from $100,000 to $~,000,000 according to population of cities where conducted; deposit with the state treasurer 50 per cent of the capital stock in bonds or real estate mortgages worth double the amount secured; powers such as are customary for trust companies. 'l'hey cannot do any banking business. Collaterals. Stocks, bonds or other personal property pledged as collateral security for payment of money or the performance of any obligation, upon default may be sold at public (or private sale if so authorized by the contract) to satisfy the debt; but before public sale, ten days notice must be given and served on pledger or legal representative personally or by mail; such sale must be between ~{t;, sunset, at a public place in the township,  g~~~Y~fgi:h~~i~{t  Conditional Sales_. . Ar~ va\id bo~ween the parties: if consignee or purchaser. on cond1t1on title 1s retamecl by seller, is authorized by the contract to sell, all such sales are valid. The consignee or purchaser cannot make valid sales against the legal owner without the authority of comignor or legal owner. (See Liens.) ( ee Frauds.) Conveyances. Any person of full age or otherwise capable may convey by deed any interest in lands, whether in actual possession or not. All grants and devises of lands to two or more persons create e tates in common; no j_oint tenancy, unless expressly so declared, except such as are made m trust or to executors, and except such as are made to husband and wife, who take as "tenants by entirety." The wore.ls '.' conveys an~ war~ants" in the deed de ·cribing the premises and specifymg the cons1derat10n, dated, duly signed and acknowledged by grantor are sufficient to convey title in fee simple and to warrant.. that grantor and his heirs and per onal representatives is seized of the premises, has good right to convey same, guarantees quiet possession thereof, and that he will warrant and defend the title against all lawful claims. The words ·•conveys and quit claims" duly signed, sealed and acknowledged by grantor are sufficient to convey grantor's interest. The words "mortgages and warrants" and duly described premises, specifying "to secure the payment" and recitina: the sum for which mortgage is given and the notes and other evidences of debt secured thereby, mortgage being dated, signed, sealed and acknowledged by grantor, is sufficient and warrants perfect title in the grantor and against all previous incumbrances; omitting the word "warrants" sufficient, but without any warranty. Dower and homestead rights not waived unles wife joins in the mortgage. No homestead right will avail against the mortgagee if there is no wife, nor if wife joins in the mortgage .• l\farried women of full age joining with husbands in any deed, mortgage, power of attorney or other writing, shall be bound in respect to their own title. Corporations. Banks, mining, manufacturing, insurance-fire, marine. accident, burglary-printing and publishing, manufacturing and mercantile, or a union of the two, partnership associations, real estate associations, real estate, railroads, street railways, co-operative benefit associations, co-operative savings a., ociations, and religious societies, are respectively organized under State general laws; required to file with the secretary of state, article of association. Business Corporations. Three or more persons may organize. One half of capit.al must be actually subscribed and at least l U per cent either in money or property must be paid in; if in property same must bo for the purpo. e of the busine . , and described and its value specified in the articles. Stockholders vote in person or by proxy. Each share has as many votes for directors as directory numbers, and the aggregate vote may be distributed for one or more of directors. l\'lay issue preferred ancl common stock of the par value of $10 or $100. Preferred entitled to dividend not to exceed per cent quarterly, semi-annually or annually and if not paid bo accmnulatec!. and paid, before any diYidend paid on the common. Articles of association to be recorded in the county clerk's office of county where operations carried on. and office of the secretary of state. ~ lay hold real e tate for the purpose of the corporation and such a.'> acquired as security or in payment of debts, managed by not Jess than throe directors chosen by the stockholders annually hold office until successors are chosen; make duplicate reports in Janua1·y or February annually for the fiscal year last ending, of the financial condition and property of the corporat,iou to secretary of state: stockholders arc liable for labor debts; they maim all by-laws for corporation. Foreign corporations organized under the laws of any other state of the United States or f any foreign country, unlawful to carry on business in this state ntil certificate of authority procured from secretary of State; not capable of making valid contracts in this state until authorized to carry on business; unlawful for any person to act as agent of until authorized to do business. ales of goods or merchandise by the right of inter- tate commerce not affected by state laws. Courts. Terms of Jurisdiction. Circuit courts, holding two or more terms annually in each county, have original jurisdiction in all cases of law and equity wherein the amount in controversy is 100 and upwards; and have appellate jurisdiction from justice of the peace probate courts, and other inferior tribunals. Justice courts in each county have jurisdiction of cases at law involving from 100 to $500. _In Gr~nd Rapids is <:1- "Superior Court" for civil cases, limited ~o par:ti(!s resident of the city. Probate courts in each county have Jur1sdwt1on of estates of deceased persons and testamentary trusts ~upremc court has final appellate jurisdiction from circuit, munei1pal and recorders' courts. Days of Grace. Abolished. Depo. itions. Testimony of any witness without tho fltate of more than _flfty miles from the court may be taken de bene e. se, before any Jud~e of any ~tate or of the United State·, or of any foreign ountry, or before any circuit court commi. sioner in this or anv other . tate, or of tho United tates, or any commis. ioner of this ta'i:e any consul _or consular <?ff~cer, justice of the peace ofilcer, or notary publfo aut,honz<;')d to adlnimster oaths in tho state or county where talrnn aucl not mterested as attorney or counsel or in the event of the cau. e· reasonable notic~ given in writjng by party or his attorney proposing to_ take to o_ppo. 1te party 01· his attorney of re ord, stating name. ol' w1t-nesses, t,1me and place of taking and official before whom to be taken. 0!}lm~ssions to take depositions of any witne sc: mav be 1sst~ecl ~)Y c1rcmt court wl!ere)n the suit is pon~ing or by the judge or rer::1stm ~hereof, oi: by a Justice of the peace m a suit before him on ,\TIU.~n mtcrrogat1ves. Fees for taldng, certifying, sealing and forward.mg 2; for each 100 words in deposition ten cents and COllie three_ cc~t,s .. Each part~ pays for his own examination or cro~s exam1Dat1on m tbe first mstanct. · De cent. Real estate and personal property of inte. tate after fc;1i~v~~t of debts and administration expenses and allowance , as   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1902  BANKING AND COMMERCIAL LAWS-MICHIGAN  . Real Property .. One-third to widow, remaining two-thirds to bis L<;.'>ue; if no widow t,he. whole to his issue to hare equally if of same ~egree of kindred to mtef>'tate, otherwi ·e by representation· if no 1s ·ue, hu band or widow to the father and mother in equal' shares if. only one livi_ng to the survivor alone. If sur\'iving husband widow and no issue, one-half to such survivor, remainder to father a~d mother or their survivor. If no issue or parents, husbands or widow, equally to brothers and sisters anu the cbiluren of duceased brothers and ;;isters; if none ucb relatives, to next of his kin in.equal degree through n!:'arest ancestor; if any unmarried chilu dies under age, his or her inheritance from any parent, to other surviving children of same parent and their issue by repre:sentation. If husbanu or wife survive and 110 issue, pa1·ents, brothers or sisters, or their children to husband or wife, and if D'> foregoin!!; relatives whom:;oever estate escbeats to .'tate. Jllegit1mat,es heir to mother; dying intestate estate descends to mother or her relatives if she be dead· become legitimate by p,irents, intermarriage or father's written 'acknowlment. The foregoing provisions for the widow are in lieu of dower and hom_estead rig~t unless one year after administration granted she _applies ~or as·1gnment of dower and homestead in which <'a, e her mterest 111 deceased husband's lands is limited to the dower and homestea~ right and the residue shall descend as above provided for that portion not taken by her. tersonal !•:state. Residue - one-third to widow, t,vo-thirds to ch1lclrc11 or issue by repre en tat ion; one child; one half to child and one-l_1alf to widow; no widow or child, to all lineal descendants equally If widow and no children or issue, to widow, not exceeding $:J 000 · estate exce.-;s of that, one-half exce ·s to widow, other half to surviving parents, and if none such to brothers or sisters; and none ,'UCh, all su<'h e.-cess to widow. Married women intestate, one-third to husband, two-thirds to her children or their issue by representation only one child or issue of deceasert child; to husband and such child equally; if no child or issue of decol\!·ed child, one-half to husband anq other hall' to surviving parents, and if none. to brothers or sisters or issue of them and if none, all to husband. In any other case same as for real property. Estates by curtesy aholished. Do,ver. Wife entitled to use of one-third part of all lands owned b,Y her husband. as estate of inheritance any ,time during marria~e. .. o dower as. against mortgages for purchase price, or mart.gages made before marnage, except in surplus. :\lust exercise option to take dower in lieu of rights under will or statute within one vear after administration: residing in this State and eighteen yea,s of age and upwards may bar hy joining in hu hand's conveyances and mortgag-es or hy deed alone to one wbo has husband's title, intent to bar being expressed; or by jointure secured as bar. . :ExcC'ution. l\Tay issue to any county at once, unless stayed after Judgment in circuit court, in ju -t,ice courts, expiration of tlve da:rn: not liens on real estate or personal property until levy by proper o~cer. Heal estate is sold without appraisement t,o the highest bidder, except. homestead, to determine excess of Yalue above 1,500 re!le1:11ption claim. Defendant or his heirs or assigns mav redeem 'Y1tbm ~w~lve months, his judgment creditors and others having valid hens w1thm 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 . etting oil' exemptions, may be sold on 'ix: da~s· notice at public sale, to highe, 't bidder to a sufficient amount to satisfy tho deht and costs; no redemption after such sales. Executions from justice courts do not run against real estate. Exem1>tions. Homestead-selected by the owner and occupied by hi1?; 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 U>OO and that amount is paid or realized on sale under such proces . ExP.rnption of home·tead continues during iis occupation by the widow or minor children of docea.sed person who when living occupied the same.· Fraud. Criminal fraurl-obtaining the signature of any person, firm, or corporation with intent to defraud. Fraudulentlv Lsuing or selling or duplicating anti disposing of any stock, scrip, or ·evidence of debt of any bank or other inC'orporated company of this tate; i: ue of a!lY false receipts hy warehou. emen. merchant·, or their a 'eDL. receipt; or to wrongfully dispose of or convert property to their own use after issuing receipt; wrongfully removing or disposing of anv personal property by any a~ent delivered upon written agreement or lru:tructions; wrongfully to dispose of proper y covered by chattel mortgage by mortgagors or of property lleld by contract or purcha.<;e without legal title hy such purcha: er or of property held under any lea: e by lessor. For any otlicer or stockholder of any bani, or any o~her person for such bank; to ign, i"sue or l nowingly put, in circulation any note or bill of any such bank, before the capital sto<'k is p~id in, or before the pre.,ident and director. thereof ha.Ye cornpli d with the law; for any olIJcer or agent of any bank kuowing ·uch bank to be insolvent or in contemplation of insolvency, or for any a ·,;ignee of the property of such hank to sell or di:po e of any money or property of such bank with intent to defraud. delay or hinder credit r. thereof, or for any agent or per. on to fraudulently obtain or dispo ·e of any money belonging to any Insurance company organized in this State. Frauds-Statute or. ~ 'o executor or administrator is liable on any special promise to answer damages out of his own e.....-tates. Fraud, Civil. Sale, , transfer:s, and assignments of stocks of goods, wares, merchandise, and fixture.~ in bulk, pertaining to conduct of any busine. , otherwise than in ordinary course of trade of ·eller, etc., void a~ against creditors, unless the seller, etc., tlve day· before ale, make inventory of the goods and co~"t price to seller of each article and unless the purcha.ser demand, from seller li.'t of names and addre ·ses of creditors and his indebtedne" , and within five days before taking posse··ion and payment notifle· every creditor of such sale. . Garnishment. Process may i sue in any action brought in any Justice court or circuit court on contract expres: ed or implied, juugment or dec!·ee, to bold whate,·er P.roperty any person may own or have bolongmg to the debtor. Bills of exehange and prom· ory notes due In the garnishee's hands at the time of serving :;ummons are garnishable. Property, real. or personal, things in action, equitable interests, held by fraudulent, transfer from the debtor and any property liable to execution or to the payment of the debts of the debtor in the garnishee's hands may be reco\·ered: wages of any householder not more than 30 and less then SS 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 societie. , share in building and loan as<;ociation of any debtor, except as to one having a homestead exemption, are exempt from garnishment. Holidays. (Legal) January 1st, February 12th, February 22d, May 30th, July 4th. first 1\londay in eptember, 'fhanksgiving Day as specified by the Governor of ·tate, December 25th; every. aturday from 12 o'clock noon to 12 o'clock midnight, all .:ational, tate, 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 prosecute or defend in his name. If either wrongfully retains the other's property, acquired before or after marriage, the owner may sue for  or  same_ as if w11narri~d. ~ -either liahle for the debts of the other before marriage, nor earning-: or properly of either nor the income thereof nor shall either be liable to make compensation for labor or sen ices rendered for the other. Husband is liable after marriage for family !)XPe!1ses, and for deb incurred by the wife with his expre.,s or 1mphed 3:uthority. Either may constitute the other an attorney in fac~ to d1spo,·e of property. E. penses of famil~· and children's education are not_ chargeable upon the property of the wifo hut are chargeable agamst t,he husband and he may he ued therefor. Intere:t. Legal rate 5 por cent but hy written aisreement may be charged not to exceed 7 per cent. Forfeiture of all intere·t is penalty for usury. "'hen any installmeut of interest upon any not-0 bond mortgage or other ,Hitten l'0ntract shall become duo· and r'emains unpaid, interest is allowed on such irn,tallrnent from th(• time it became due at sa.me rate specitled in the obligation or al tht• legal rafe. Legal rate colle('tahle on all monc~·s due on any written obligations and on all mc:>neys due on all contract. exprc :s or implied. whether verbal or written; and on s_ ttlement 9f a<"count, from day of a ·certaining !Jal, nee due: and on Jtlflgmeut from day of entry; and on verdicts of Jl}rY frlll1:J date to dato <?f entry of judgments thereon. In computing trnrn of mtere: and d1. ount on negotiable paper, a month means a calendar mouth and a year a calendar ycnr of twelve months. Judt:"mcnts of court of record are not lien· on real estate or personal property until li)' levy thereon of execution i sued from the courts upon _such jud~ments. Lien,; under e ecution le, ied upon real !)st_ate_cx1s_t five years from and after the le,·y. Judgment expire by lu:rut,atton. 1n. te~ yea1 from elate of entering in court of record and six years m Justice courts, and cannot he renewt>d e cepL bv action at law thereon before expiration. Judgment· of the ju tice of the pea<'c may be entered in the cir<"uit courts on tran<:cript, duh· taken to the circuit court and thereupon become judgments or such circuit courts. Liens. Any per,~on, who pursuant to a contract with an\' owner part owner or lea ·ee of any lauu, furni;;he · labor or matcrhil.· in the con ·t,ruction of a huildini:;, etc .. on such land, 1-hall lia ·e a lien on ·ach struc ure and laml to the l'Xtent of one quarter ection or if in a citY or ·illage, the lot or lots upon which ·uch structure b. it11ated. nd any sub-contra ·~or, who furni~hes materials m· _labor in earrying foreward or completm::t such contract shall hM·e a lien upon ·ucll buildin" an~ land to the extent of the inter<> t of ;SUch 0\~uer. etc. A11y per:on~ art! an, or tradesman for labor and skill apphod upon uy property <lehvered for that purpose shall have a prior lien for amount due for such labor. Hotels, boarding h<mse. and lodging hou cs have a lien upon bagga~e and other valuable ~f guests, bqarder;; or loclg<'r for a,·co1i:u11odat1ons. ny p rson keepmg and carmg for dome ti· animal· rntru,-,ted to t,hcm for that purpose have a lieu for prupPr charires. 1 1 0 1 ju j~dg~~.\~t.' si~ ~~~~r:~~t~tgto~~~l-tsagJ rl~~r ~~~ l~ett~;. simple contracts and for takin~. detaining or injuring good, and chattels, si. years from the date tlle ar•tion acrrued; revi ·or; part payment, or promi!,:e in writing to pay. b onces from tlll' State deducted from the period of limitation. _ Io1•trrao-o flfto n year.;; 0 1 1I ~~ndrb;~\~~;~1\1~a)i!:~~~~t 1i!~ci'e;:;~ Pt•o~~, - ~r amt mal-practlce against phy.·iriaus, surgeon , and cl ntist:s two years. For ~ni c~ncluct of ·herifl or their depu i . , thr (I years, a 1<1 for personal rnjuries thr e yea1._. For ~he r ·o, ery of r al property, fl, c .:v~aI.' where the claim ari ·e,; ag-am..t ex •rutors, uardiau's or hc1:1fl' s ~leed; five years 11 r tl,e d fondant claims 11d 1s in posi;e 'IOn of lands under deed made by auditor Ken ral or thi .'tate for taxe ; an by minm and o hers under !e~al di abilities three Years aft<'r remo, al of u ·b di. ·abiliti s; in all other ca:; · fin '011 year-: Limited Partnership-.. . lay consist of one or more general and one oi: m~re spe~ial partner . 'pedal· contribute specillc amount of capital Ill ca.sh or property at ·ash value, and if actunlly paid in not liable for flrm'. dehts in exee of uch special capital. (.,oneral partner· transact the bw·!nes' of tbe firm. Iarried \\'omen. , fay make contrac · in r spect to their own property and may hold and enjoy, and have the ame right! and remedie re.,.arding their property as if unmarried. The • may carry on husines,, in their own name 'l\ith thelr own property by con ·ent of their husband ; cannot enter into partnership with bu band or any other person and become liable for the firm contract,,. , [arried women'. eontracts to pay or to become liable for debts of hu·hands or other person -. oidahle, may howe, er charge their real e ate or peronal property to secure uch indebtedne ·: by deed, mortgage or contrac-t. • Tarried women arc entitled to have and to hold their t1lfer~:~i-r own per ·onal effort, and may make any con:\lort 1.mi::e~ on real e tate, executed and acknowled ed tho ame as deeds; may be forc<'io · d under power of sale bv a\h·erti ement or in cir ·uit court in cham·ery of the county wherein the property is ituated. TrtLst deed not in cus omary use but may be made and executed and will be treate1l a mort"a"e . hattel mortgage· and bm · of ale; intended a · . ecurlty by mortgae;or, igned and deliverPli to the mortgagee, ufficient Jptween the partie . but void a to creditors, ·ubs quent pur ha: ers and encumbrancers in good faith and without notice. unle · uch mortgages and bill· of sale or true cople are llled i.u the city or town, hip rt rk' office where mort~a"'or re'ide , or if non-resident of 'tate. in <'it,. or to\1 nship where the property i, ituated: and nn!e., affidavit o(mort agor or of some one for him having knowledge of the fa<'b is annexed to the mortKage or bill of . ale, .showing con ·ideration i a1·t ual and adequate and in good faith. Without sul'b amdavit offt ers forbade to re<'eive and flle i;uch mortgages; cea.,e to be valid again t l'reditors. sub:equent purch ors, and encumbrancers in good faith. on e. piration of year from fllin2: date, unle r newed within liirty day, next preceding expiration by affirlavit of mortgagee , howin • JJI;; intere t, etc .. llled and anne. ·ed to the mortgage in , aid derk' ofllc ; likewise each succeeding year whJle U1e mortgage exi t, . • ·cgolia.ble ln-.tru1n nt. . promi , ory note i.· an un ouditional promise in writing to pay a sum certain in money, on demnud. or at a fixed nn<J determinate future time. to the order of n specifled person or to bearer. A bill of e.·change l · an unconditional order of one per on to another requiring the drawee to pay to a certain per on, or order, or hearer on demand or at a fixed or determinate fuiure time a certain sum or money. • lay be payable in installments and contain pro\·isions that on deft ult the whole . um of money shall become due with exehange, fl ·ed or current rate. intere t and attorney' fee for collection. ~ 1aY authorize sale of collateral· and confes ion of jndgmen . If it reads "l promise to pay," all makers are jointly and everal!y liable. Must not be payable upon contingency. { annot waive exemption from execution. ~ Teed not specify "for value received" nor place where drawn or payable. If i ·-ued, ac epted, or indor ed, when over due is payable on demand. .. Iny be payable to two or more pavees jointly or one or more of several payee. . "·ant or failure of consideration, a defon:;e agairu t one not a bolder in <lue cour::;e, partial failure a deferu e pro-tanto. Ono not a party, or the payee of the paper placing a ignatnr In blank on the paper before delivery becomes an endorser. lndorscr ngage. on due presentment the paper shall be honored and that he will pay to holder or any ub equent indorser, who may be compelled to pay; where maturity fall· on 'unday or on a holiday, payment due on the ne t busine: day: but h re all of such day not a holiday may if payable on demand be pr entcd before noon.  'tt!: ~~}!~  ~r~~~11  r~gL~~:1~fi:  i~l;[~~r,  ~b~ls  BANKING AND COMMERCIAL LAWS-MINNESOTA  1903  Fraud in procuring signatures and delivery defen. e against any SYNOPSIS OF holder. Presentment not nece sa.i•y to charge anyone primarily liable. If not payable on demand present on the day due; if on demand present within a reasonahle time af'ter issue; bill of exchange payable on demand present reasonable time after la.st negotiation. Fraudulent or material alterat.ions do not affect the original instruments in the hands of innocent holder in due course. RELATL 1 G TO Unconditional promise in "Titin~ to accept a bill of exchange, given before or aft.er drawn, valid in favor of nil who take it upon faith thereof for valuo; holder may decline qualified acceptance: if he takes qualified acceptance, drawers and imlorsers are di charged . BANKING AND COMMERCIAL USAGES Protest of foreign bills of e.·change may he maria by a notary public or any respect.able resident of the place of payment. in the presence of accepts. he unle.;,s liahlc not is drawee es; witnes creditable more two or Check or a bill of exchange on a bank payable on demand, mu ·t be presented rca..--tmable time after is ue, and if dishonored notice must Prepared and Revi. cd by 1LOORli:, OPPENHF.IMER & PETERSON be given or drawer is discharged to extent of loss causcci; does not Attorneys at Law, St. Paul. (. ee ard in operate to assign any part of drawer's funds : bank i ~ not liable unless Attorneys' List.) it accepts or cerWles. If holder has check certified drawers and indorsers arc discharged. The prm,ent negotiable instruments law of Michigan took effect Acknowledgments may he certifled by the following officers : Sopt. l(i, 1905, and rupoals all acts or parts of acts incon. istent with 1. WiLhin the tate by a resident jud •e, clerk or deputy clerk of its provisions; but does not apply to instruments made prior thereto: court of record therein, a. notary public, just ice of the peace, any materially chan~es the law in this State and should receive ·pecial town, city or village clerk, or recorder, court commissioner, register of examination in every doubtful c~·e, deeds, or county auditor, or their deputies, county commi . . ioner. or !most every act that any person, firm or Powci: of Attorney. member of the legi.-lature. 2. Out of the 'tate but in the Unit.cd corporation may perform, may be performed by an attorney in fact. , tates by a judge of the supreme. circuit, or district, courts of th ConveJ ances. mort~age . or lea e for more than three year·' term United States, or of any court of record of any state, territory, or di by attorney in fact, the power of attorney must be in writin,,. .·igned, trict, the clerk or a deputy clerk of any. uch court, a notary, a justice of the peace, or any commissioner appointed l)y the goYernor of this sealed and acl·nowledged same as a deed of lands, to be admitted for record or to proof thereof. State for that 1mrpo e. 3. Tu foreill,'n countries by a notary public. or by any minister, charge d'atraires, commi. sioner, consul, ·ommer ial Probate Law. (See Administration of Estates.) agent or other consular or diplomatic officer of the lhlited States I>rotc!'lt. ( ee Tegotiable Instruments.) apJ?ointcd to reside in such country, and deputies or other reprosenta~n·e:s of such officers. The form of the certificate may he, "< n Replevin. Goods or chattels wrongfully taken or detained ma.y this .......... day of ..... . ... _.. , l!l .... , before me personally be replevined by owner or part owner or party entitl d to possession. appeared . .......... . to me known to he the person described in, ~fficiavit or plaintiff or agent necessary for is ue of writ. If from aud who executed the foregoing in. trument and acknowledged that circuit courts plaintiff required to give bond with . ulllcient sureties he e. ocuted the same as his free act and deed." In case of corporato the otlicer , ithin twenty-four hours after seizure and appraisal of tion it may be, "On t,his . . . ...... . day of ......... 19 ..... heforo me t~e propert.~· which mu. t not be delivered to plaintiff within fortyappeared A. B. to me personally known, who boing by me duly sworn e1gbt hours; and in the meantime if the defendant ball give sufficient did say that he is the presicient (or other ofllcer) of (name of corporabond to the officer he shall return the property to the a.me per ·on tion), that the seal affixed to the foregoing in. trument is the corporate from whom he took it; in that case if plaintiff recovers he may recover seal of said corporation and that said in~:trument was executed in on tho defendant's bond; if he fails defendant may recover on plainbehalf of said corporation by authority of its board of dirnctor.', and tiff's bond according a:· tJ10 judgment may warrant. In ju .tice courts said A. B. acl nowleclged said instrument, to be the free act and deed bond with sufllcient . ureties must be given and filed in double value said corporation." If made out ide the . tatc the imprcs. ion of the of issues. writ of the property before seal of the certifying officer must be affixed, or there mu be 1: axes. State and county payable every year after December 1st, ofllcial the certificate of the clerk of a court of record of the county attached delivered to county treasurer l\larch 1st, thereafter. and if delinquent or disLrict in which it is made under his seal that the signature of the bear interest l per cent per month. Returned to audit.or general of officer is genuine. • certifyin Stato, if not paid, and hy him enforced by forcclo:ure in hancery in Actions. The distinction bet, ·een actions at Jaw and suit in every county, and the ta.·able property sold under d ere• of the There is only one form of action. It is called abolished. is equity ' and taxes of amount the for parcel each court by couJit.y treai-urer a ciYil action and must he prosecuted in the name of the real party charges again5t same: redeemable one year thereafter and doe.· not in interest e.·cept that executors. administrators, trustee of an e.·pre. bec_ome ab. olute unt.il proceeding taken by purch er for writ of t,ru t and per·ons expressly authorized by statute may sue without w ~1stance, which must be instituted within five year' by .. ervice of joining the person fot· whose benefit the suit is hrought. wr!tten notice upon owners six months before application for 'UCh writ. If decree regular and property taxable, and due notice is given Ad,ninistration of E tates. Estates of deceased person.· are an<! . erved, IHlI'Chai er is entitled, upon due proof thereof to writ of administered in probate courts of which there is one in each county as. !Stance and posse. sion w1less redeemed pending the notice by 1 presided over by the probate judge of the county. payment, of double the amount paid by purchaser and 5.00 for each In r{l'anting letters of administration preference is given: 1. 'l'o ity ta. e are governed by charter or by the parcel redeemed. the surviving spouse or next of kin or such suitable person as they general act under which cities and villac:res are organized. or either of them select. 2. If no application is made for thirty days after death of intestate, to principal ·creditor or creditors, or Wills. Codiclls. Every person of full age (twenty-one years) and some person interested, and if deceased was native of forei,:rn country of sound mind may make; must be in writing, signed by testator or by to the consul or other representative of that country residing in this some person in hi.· or her presence duly aut,horized by him or her and State, or to such competent and :-uitable person as he may select. attested and subscribed in his or her presence by two or more witnesses Upon granting letters the court makes an order limiting the time competent as such at the time. If one of the ub. cribing witne ·sos which creditors may present their claims. This time must within shall testify to t.11e execution of the will in all particulars and tc ·tanot be less than six or more than twelve mont,hs; but may be ext.ended tor wa.., of sound mind at the time will was made, the court may for good cause to a date not more than eighteen months after notice adruit the will, in case no person appears to con t it: if none of given of the order. On proof by affidavit that there are no debts the ,vitne. ses reside ht the State at the time of proving the ,viii, the the time limited may be three months. Notice of the order Is given court may admit the testimony of other witnes.·es to prove te. ta.tor's by publication thereof once each week for three weeks In a newspaper sanity and execution and proof of the si,:mature of tc tator and subin the county. Claims not presented within t.ime limited are barred. scribing witnc ·ses. Probate of will cooclush e of It due execution executors and administrators may sue in this State. Non-resident to admitted duly wills. Foreign collaterally. d ail a, and cannot be Probate without the ,'tate, may be admitted and recortlod in any Alien . (See right to hold property.) county of the 8tato In which testator left real or personal estate by Arbitration. All controversies which can be the subject of a civil duly tiling, an e. emplified copy of said will and of the record admitting action may be ubmitted to one or more arbitrators for deci ion. saruo to probate. A nuncupative will in which the value of the e,,tate a claim to an estate in fee or for life in real estate. except may witnesses, two by proved duly $:300, d bequeathed does not oxce Arrest. There is no arrest for debt. be allowed. , 'ills may be revoked by burning, tearing, cancelling, or obliterating wiLh intention of revoki11g same b:r t~ ·ta.tor, or by .-ome Assignment. . Statutes relating to assignments for the benefit or other writin"' signed, attested, and sub cribed !n t)1e m_anner I'rov:ided creditors are in force except as atrected by the U. S. Dankruptcy Act ror execution of •ills but shall prevent revocation 1mphed by aw. or 1808. Practically they may be said to be superseded by that act. Attachment. Before allowing a writ of attachment, the court must require of the plaintifl' a bond in the ,'Um of at least $250, and an alflclavit of the plaintif?, his agent or attorney. (1) That the debt was fraudulently contracted or (2) the defendant is a foreign corporation or non-resident or (3) has departed from the State as he believes with intent to defraud or delay his creditors, or to avoid the. ervice of a summons or koeps him elf concealed therein wit,h like intent or (4) has ai signed, secreted, or disposed of his property with intent to delay or defraud his creditors or is about to do so. Bank!'!. Three or more persons may incorporate as a bank. Thoy must first secure from the state securities commission a certifll'ate of authorization, which is granted or denied after a hearing and introduction of evidence. Capital required is $10,000 in towns of 1,000 or Jess population; $15,000 in towns of 1,000 to 1.,'>00; $20,000 in towns of 1,500 to 2,000; and $25,000 in towns exceeding 2,000 popu-   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  THE LAWS OF MINNESOTA  Ct~~b~l~~i:~~t ~::it'll  1g  u~t~d lta~1!s~o~ea~~~sb~~\;;i h3~!i~~es..__ca • an additional amount equal t,o the par value of stock owned by them, and this liability continues one year after any tran fer of the :-,;tock. At least ono-flfth of the net profits must be placed in surplus fund before any dividend is paid until the surplus amounts to 20 por 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 each year which must be published. Liabilities to a bank of any person, corporation or flrm, for money borrowed, including therein liabilities of the seYeral members thereof, hall 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 Ca.<;e of insolvency or violation of the banking laws ~~~riuF0~1;>-t:ic~T~!r ~f banks may take po es.sion, and apply to the tiv~l~pr~f J'o~d 1fJ J,.;_ The Uniform Bills of Lading Act became effec1 1 _In!tial Carrier re<:ehring property for transportation between points w1thm thE: tate, hable for lo. , damage or injury cau ed by it or ~~~J: carrier en route. and all contrary proYisions in Bill of Lading   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1904  BANKING AND COMMERCIAL LAWS-MINNESOTA  Chattel ::\fortgages. Every mortgage of personal property which in part by debtor not exceeding in value $400: library of professional is not accompanied by immeiliate deliv0ry and followed hy actual and man: presses, type, and tool5 of publisher of newspaper, not exceeding continued change of posses~ion is void a'i to creditors and subsequent 2,000, and his stock in trade not exceeding $-100; watch, sewing purchasers and mortgagees in good Caitb. unless it is made in good machine, typewriter. bicycle, seed for use of debtor for one season not faith, attested by two witnesses, acknowledged and filed with the exceeding certain amounts . library and apparatus of college or school; register of deeds of the county in which the mortgagor resided at money payable to wife or child from insurance on life of deceased husthe time of its execution, is a resident of the State, or of that in which band or father nor exceeding $10,000; money or relief from benefit the property was then situated if a non-resident. If the mortgagor association: money from insurance on exempt property; wages not resides in St. Paul, Minneapolis or Duluth or is a non-resident, and exceeding $35 for services rendered during preceding 30 day. : but all the property is situated there. the mortgage must he Oled with the wages paid and earned within said thirty day period shall be concity clerk of such city instead of the register of deeds of the county. sidered a part of (or all) of said exemption (Chap. 202, Laws 1915.) Duplicates or copies certified by any oilicer with whom the mortgage Holidays. January Jst,, February 12th and 22d, Good Friday, bas been properly filed, may be filed in other places wherein any part of May 30th, July 4th, first Monday in September, Tuesday after first the property was situated when the same was made. As against Monday in November each even-numbered year (election day), creditors of the mortgagor and subsequent purchasers and mortgagees ' ovember llth (Armistice Day), and De<·eml>er 2iith are legal holiin good faith the lien does not continue beyond the term of six years days. Thanksgiving day is so far that negotiable instruments or from the date of flling the mortgage unlei;;s the indebtedness is not contracts due that day are payable next succeeiling business day. then due and payable by it. terms. in which case it continues two years after the maturity of the debt and no longer. Interest. Six per cent is legal rate, but by special contract any Chattel mortgages gfren by a married man or woman on property rate not exceeding 10 per cent may be exacted. Usurious contracts ex:empt from execution must be executed by both husband and wife are void. if living. Judginents may be entered by default in district courts at expiraConl'eyances. Deeds and mortgages of real estate must be exetion of twenty days after service of summons. ·when do keted in those cuted in the presence of two sub cribing witnesses and to entitle them courts they become liens upon all real estate of the debtor in the county to record must be acknowledged hy the per on executing the same. where docketed then owned by him or afterward · acquired, and the Conveyances made out of the State, may be executed as abO\·e, or lien continues for ten year:- after the entry of the judgment. '.rranaccording to the laws of the place of execution. scripts of judgments in justice and municipal court · may be filed in district court and there docketed, and then become lien on real estate. Corporations. May be organized by any number of persons. not Liens. To preserve a mechanics lien a Yerified staterne11t must less than three, for the purpose of engaging in any lawful business. be fl.led by the lien claimant within ninety days after furnishing the The amount of capital stock shall in no case be less than . 10,000, last item of labor or material in the office of the register of deeds of divided into shares of not less than . 1. 00 or more than 100. The the county in which the improved premi: es are situated, or if claimed incorporators must sign and acknowledge a certificate specifying: 1. upon a line of railway or its appurtenances with the secretary of state. the name, general nature of business. anrl principal pla"e of transacting The lion may be released hy a court order on deposit \\ ith the clerk the same. 2. Period of it duration, if limited. 3. Name. and places of the District Court of a sufficient sum of money to protect the lien of residence of incorr>orators. 4. In what board management is claimant, and anyone interested in the property may bring an action vested, dato of annual meeting at which such board shall be elected, in the nature of an action to determine adYCJ. e claims to n•moYc the names and addresses of persons composing board until first. election. 1icn. Action to foreC'lose the lien must he commenced within one 5. Amount of capital stock, how the same is to be paid, numoer of year of the time of tho filing of the verified ·tatement. shares and par values of each, and if more than one class, a description, and terms of issue and method of voting of each. 6. Highest Limitation of Actions. On contracts expre, or implied si."'C This subject. he amount of indebtedness to which corporation shall years; judgments ten years; to foreclo e mortgages fifteen years; to certificate is filed with the secretary of state and with the reg-ister recover real estate, fifteen year·. But no action hall be maintained of deeds of the county in which the principal place of business is on a judgment note, or other instrument authorizing Confession of located and published in such county two successive days in a daily Judgment unless begun within one year after Cause of .Action accrued: newspaper, or two successive weeks in a weekly. and no action shall be maintained upon any judgment of any court of Every stockholder in any corporation, except those organfaed for U. S. or of any State or Territory entered by Confe~sion under a the the purpose of carrying on a manufacturing or mechanical business warrant of attorney, unle s the action upon such judgment be begun is liable to creilitors of the corporation in an amount equal to the par ono year after the rendition or entry thereof. within value of the stoclc owned by him. Married Women. Property acquired by wife hefore or after marForeign Corporations. Every foreign corporation organized for riage remains her separate estate. It is liable for her debts and torts pecuniary profit before it can transact or continue business in this to the same extent as if she were unmarried, and she may make any State, acquire, hold or dispose of property or hring suit here must which sbe could make if unmarried, except that no conveycontract ervice accept to authorized State, the in appoint an agent residing ance or contract for sale of her homestead or any intere ·t therein is of process, and must file with the secretary of state an authenticated valid unles her husbru.1d joins in the same. copy of such appointment and of its charter and a verified statement Both husband and wife are liable for neces ·aries furni. heel to and showing the proportion of its capital stock repre 'ented by its propert.y used by the family. and business in this tate. and upon that it must pay a fee. This act does not apply to exclusively manufacturing corporations. traveling on real estate executed in the pre.·en<'e of two subscribl\Iortgages salesmen soliciting business for non-resident corporations. nor to those ing witnesses, acknowledged and recorded in the office of the register engaged only in the business of loaning money or investing in securities, county in which the mortgaged premises are situated the of deeds of nor to those organized to raise and improve live stock. cultivate farm·, may be foreclosed by publication or by action. The mortgagor or his can fruits or vegetables, nor to those whose sole business is transporwithin one year from the date of the foreclosure redeem may assigns tation of freight or passengers by water. ale. Courts. District courts hold one or more terms a year in each The authority of an attorney conducting a foreclosure by adverorganized county, have original jurisdiction in all civil actions at law tisement, must be in tho form of a Power of Attorney, executed and and in equity, and in all criminal cases where the punishment exceeds acknowledged by the mortgagee or assignee in the same manner as three months' imprisonment or a fine of more t,han 100. a conyeyance and recorded prior to the sale in the County where The supreme court has appellate juri'>Ciiction in all ca es, hut there the foreclosure proceedings are had. is no trial by jury in that court. It has original jurisdiction in such The mortgagor may covenant to pay or authorize the mortga!?.'ee · remedial case as are prescribed by law. to retain any attorney·s fee in case of foreclo ·ure of not exceedin~ Probate courts have exclusive juri5diction of matters connected 2,3; where the mortgage debt does not exceed . 500; . iiO where the with the settlement of estates of deceased person.', minor . and insane mortgage debt exceeds 500 and does not exceed 1,0 O: 7,5 where per ons. Terms are held on the first Monday of each month in each the mortgage debt exceeds 1,000 and does not exceed . ,3,000: 100 organized county. where the mortgage debt exceed 5,000 but doe not exceed . 10,000; Municipal courts exist in certain cities. anrl are courts of record with and . 200 where the mortgage debt exceeds 10,000. limited jurisdiction in civil and criminal actions. A Registry Tax of 15 cents is impo ed upon each 5100 or fraction Justices of the peace have no jurisdiction in civil actions where the 0 ~~i;e~ S;i~h:h~rk~~fea~ttr\!~~~r~ ~irda~:c~3~~gi~es~?ct. e~i~i/ r a.mount involved exceeds $100. case the maturity of any portion of the debt ·o secured shall be fl:recl Day of Grace are aboli hed. at, a. date more than five yearn after the date of said mortgage, the Depositions may be taken at any place within or without the amount of such Regi try Tax shall be a.t the rate of 2,3 cents on each State upon notice in writing, stating the reason for taking the same, o such mortgage or a ignment or satisfa<:tion thereof or 100. . the time and place, and giving the opposite party one day for prepapapers relating to its foreclosure, shall be recorded or registered unless ration, and one day for every 100 miles, exclusive of Sundays and such tax has been paid, nor shall any uch document or record thereof the day of service, before any officer authorized to administer oaths. be received in evidence in any court or have any validity as notice or Descent and Distribution of Pro1,erty. Homestead descends otherwise. If such mortgage describe real estate outside of .Minneto surviving spouse for life, remainder to children and i sue of deceased such tax shall be imposed upon such proportion of the whole sota. children. If no children or issue of deceased child, then to surviving debt secured as the value of the real estate described in this State spouse in fee, exempt from debts not a valid charge thereon at time of to the value of the whole real e tate, such value to he deterbea1·:s intestate's death. After pavment of debts and certain allowances to mined by the tate Auditor upon application of the mortga~ee. the surviving spouse out of ·the personal property, the re.sidue of tte ~otes and nills of Exchange. Uniform negotiable Instruments e tate descends as follows: 1. One-third to the surviving spouse, ·ommercial paper is Law has been in force since April 15, 1913. balance in equal shares t,o children and lawful issue of deceased cbild J.t the time fixed therein without grace. When clue or payvayahlP by right of representation. 2. If no surviving chlld .01: lawful i. s~e ahlo on Saturday or on Sunday, or any legal or bank holiday, the of deceased child the whole estate de·cends to survivmg spouse 1f same is payable upon the bu ine.· day next succeeding, and may any. 3. If no issue or surviving spouse, to father and mother in ~q~rn.l be protested on such ucceecling day. shares, or if but one survive, to such ur\'ivor. ,!. If no survivmg si.ters and brothe_rs is ue, spouse, father or mother, in equal bares to Right to Hold Property. .. ~o person unle, . he he a ritizen of the and lawful issue of deceased brother or ister. ,5. If no issue, spouse, ~nited tates, or has declared hi intention to become a citizen. and father, mother, brother, sister, or living i. sue of rlecea ~d brother no corporation unle. s created under the law of the nited State>". or or sister, to next of kin. in equal degree,_ b1:1t those who claim through of' :some state thereof, 'hall acqufre lands exceeding 90,000 :quare feet, neare. t ancestor preferred to those claiming through ancestor more e.-.cept by devise, inheritance. or through security for inclebtedne,-,s. remote. 6. If no spouse or kindred, to the tate. This does not apply to actual ettlers on farms not e.·ccoding rno acres. or to subjects of a foreign country, who. e rights to hulcl Janel· are Dower is abolished. secured by treaty. Employer Liability A.ct. Effective ince _April _24._ 1913. • 'o corporation, more than 20 per cent of who'e stock is O\ ncd by Executions i~ ue from district courts any time within t~n years nited ·tate·, or by corporation· not persons not citizens of the after judgment and may run to any county where jud~m~ntis docketed. under it· laws, or tho. e of some state thereof, can acquire created are returnable in ,'ixty days and may be renewed for sixty days at a. and no corporation unless organized for the construction or lands, time on reuest of judgment creditor or his attorney. f>er:-onal propoperation of a railway canal or turnpike can acquire more than 5,000 erty is sold on ten days' posted notice; real es_tate on six weeks' PU'?acres or more than is nece ·sary for its operation, and lands granted lished notice, and subject to redemption by Judgment debtor or his it, by the tate or United tates. assigns within one year fl-om date of sale. But this does not apply to lands acquired in the collection of debts nor to a person or corporation engaged in :,;ell in , Janel· to ,~ctual Exemptions. Homestead outside of incorporated mu:ni_cipality soUlers, or engaged in manufactw·ing in ~Iinne, ota whiles<) engaged. may include eighty acres. If in incorporated place contammg le: s uch persons or corporation.· not so enga~ed must. ell \\l,at they had than 5.000 inhabitants, its area ,hall not exceed; one-half acre, and m April 13, 1911, within ten years from that date and sell what they larger incorporated places, one-third of an acre without regard_ to value. acquire subsequent to that date within ten years afLer thoy acquire it. Family pictures library musical instruments for use of family, wearing apparel, beds, stoves', cooking utensils used by family, othe: houseSalo of Good . Tho Uniform ales Act became effective .'\.pril hold furniture not exceeding 500 in value. three cow·. ten swme, one ' 20, 1017. yoke of oxen, and a horse, or in lieu thereof, a span of horses or mules, on real estate mn.y be paid one-half before tho first clay of Taxe twenty sheep, the wool therefrom raw or manufactured, food . for June and one-half before the first day of .i.. Tovemher of tile vear followsuch stock for one year's supply, one wagon, cart or dray, one sleigh, thereof, and if not o paid a penalty of 10 per cent atlevy the ing two plows, one drag, and other farming utensils not exceeding 300 in taches. If taxes on personal property are not paid before :\Ia, ch 1st value, provic;ions for debtor's family for one year's support, tools kept for purpose of carrying on trade, and stock manufactured in whole or l of the year following the levy thereof, a penalty of 10 per c nt att.a.ches.  r~  BANKING AND COMMERCIAL LAWS-MISSISSIPPI Wills.  Eve:ry_ pers~J?, of f)-111 age and sound mind may dispose of  Pi<;;·sg~ · f~ l~~-tJr~Ier~~~l ~li;;mJs s:lf:1e~t~K. t~:t:;;:!t~~ct°~ub6sgr1g1e~ on includes 0  pl'e ·ence by two or more competent witnesses. Every per ~arried women. If, after making a will the testator marries, the "ill • 1s thereby revoked.  1905  he conceals and unjustly refuses to apply to the payment of his debt.s · or who has converted or is about to convert his property into money'. or evidence 'of debt, with tbe intent to place it heyond the reach of creditors; or who has fraudulently contracted the debt or incurred the obligation for wh~c_h suit has been or is about to be brought, may be attached. In addition to those named above, tho following grounds exist: "o. That the defendant is buying, selling, or dealing in or has within six months next before the suing out of the attachment direct,ly or indirectly, bought, sold, or dealt in future contracts com~ monly call~d 'futur1::s.'. 10. That be is in default for public money, d~e from him as a prmc1pal, to the Stat~. or some county, city, town, or village thereof. 11. That defendant 1s a banker bankino- comany or corporation, and received deposits of money, knowing at the time that he or it was insolvent, or has made or published a fa!. e or fraudulent statement as to his or its financial condition." Attachment-, for debts not due allowed for last six grounds-or when the creditor has just cause to believe that the debtor will remove himself or his effects onout of State before debt will be due, with intent to defraud. resident creditors have the same ria:hts or attachment as resident creditors, _whether the debtor be resident or non-resident. Plaintiff must furmsh bond double tbe debt an I make afliclavit as to one or more grounds. Suit does not abate on verdict for defendant, on a plea deuving grounds; but judgment on the debt, to be offset by damages in favor of cl_efendant for wrongfully :-;uing out attachment. Any creditors may mtervene and contest ground of attachment. Attachment in (?hancery on hill_ against tho property, or debts of an absent, non-resident, or absrondmg debtor. A hen is acquired 1g~n~~;si1°~~1fs~ of goods is obtained, bond is ~Jq~~·~d.uitAvi£;b1  I ,: ' i ,d  I: :111  ! 1  I  ·1  i  .  I  • I  ·  i  ~vr£~  SYNOPSIS OF  THE LAWS OF MISSISSIPPI RELATING TO  BANKING AND COMMERCIAL USAGES Prepared and Revised by CHAMBERS & TRENHOLM, Attorneys at Law, Jackson. (See Card in Attorneys' List.) worn to entitles plaintiff to judgment, unlo: defendAccounts. ant files allidavit denying. The affidavit must be by the creditor or hi agent. All accounts must l>e 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 tate may be before any of the judges of the supreme court, or any di. trict judge of the United 8tates, or a judge of the supreme or superior court in any state or territory, any justice of the peace, whose official character shall be cet•tifled to under the seal of , ome court of record in his county, or by any commissioner residing in such tate or terTitory, appointerl by tbe governor of Mississippi, or a notary public or a clerk of a coun of record having a seal of oillce. Acknowledgments or proof of deeds to property in this tate by persons in a foreign country may be made before any court of record. or the mayor or chief ma""istrate of any city, borough, or corporation where the grantor or witnesses reside, or may be, or before any com.mi5Sioner appointed by the governor of tbi State, or before any ambassador, foriegn mini ter. secretary of legation. or consul of the United States. The certificate shall show that this party or party and witness were identified before the officer, and that the part,y ac1...iowledged tho execution of the Instrument, or that the execution was duly proved by the witness or witnesses. Acknowledgment must state that party "acknowledged that he siyned and delioered" instrument. Actions. All distinction as to forms aboli bed. _ervice fi.-e days before return da:v. All action triable in the circuit court at fir ·t term io which the defendant bas been personally served with proce s thirty days before the return day. ::.\fandamus, quo warranto, mechanic·' liens, attachments, and replevin triable at return term on five da.ys not.ice. Administration of Estatec;, Ha.d in chancery court, according to will, if any. Claim. against deceac;ed mW' t be registered within six months after the first pul.>lication of notice to creditor·; reii:i ·trati.on stops the general statute of limitations. ~ll dchL·_are t9 be paid before heirs, distributors, or legatee.·. Clauns agamst msol\·ent estates are paid pro rata. Affidavits or On ths before a judge of any coun of record. clerk of such court master in chancery, momt)er of the l>oard of supervisors, justice of the peace, notary public, mayor, or police ju ·tice of a city, town or villa""e· in another st.ate hy any officer thereof, or of the l:nitcd States7 authorized to administer oaths. To restrictions on t,he rights of resident aliens to acquire Allens. Property or di ·pose of it. , ·on-re ·ident aliens can not hold land, but inay take liens thereon to secure debts and pur ·ha ·e at forcclu ure thereof, and theroafLer hold it for not louger Uiaf! t ') enty . ·ear,·._,\ ith po,\er to sell to a citizon in J'eo; or he ma retam 1t by beconung a citizen. See title "Corporations." . A1,1>cal~ from justice court to <'ircuit court with_in _ten <lass. From circuit and chancery courts to s1:1preme_ C<?urt w1thm one yea:, hut notice to stenographer must b ~1v n w1t1:un ten days aft ·r actJournlllent of Colll't, iu order to incorporate ev1_dcnce In reco:<~- App a.ls also in certain cases from board of supern,;ori:, and mumc1pal c urt . Arbitration. Parties may submit to arbitration of one or more <:lisintercstcd arbitrator·, with agr ement that proper court shall enter Judgment. Arrests made by certain omrers, or private porso:1s m~y a.rre t for offense committed in his presence. No arre ·ts or 11npr1soument for debt. A. signn1ents and Insolvency. No insol_vent law. _\.n a! signn1ent may be made for the benefit of creditor,,.. Debtor, though ins~ilvent, may prefer creditor-, if ~n. good faith a?d no benefit, direct o prov1s1on for the ~1schargc of a debtor or mdircct, i reserved. on his making an a sigmnon~. In general_ assignments. whe:e. the value exceeds $1,000, the assignee must g!". bond and_ adnum.·tcr the trust in chanc 1•y. Preferences not prohibited. Practically superSodod by bankrupt Jaw. Again t a dehtor who is a non-re. ident or who Attachment remo,·es or is ai)out to remoYc himself or property out of the tate: Who so ahsconds or conceals himself t~at he can!iot !Jc. er,·~d with a summons• or who incuITod the d ht m conductmg the busme. · of a ship, steamboat or other water craft in om~ of the na via:able waters of this State· or who a.c;signs or di po. es of hi. property, or some part thereof or about to a.ssign or dic;pose of his property with intent to defraud his creditors; or who has property or rights in a tion which  is   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Banks. ~e_quire_d capital s_tocks as follow. : In cities, villages, and commumtie with population 1,000 or less, 10,000; population 1,000 and not more than 2,500, $15,000; population 2 500 and not more than 6,000, $25,000; population from 6,000 to 10,boo, s:~il,000; 10,000 or ,more, $50,000. This does not apply to existing banks of (1914). '!here shall be a board of bank examiners of three men to be elected, duties to enforce banking laws and examine banks periodically. Deposits guaranteed; depositors names not to be divulged· Banks penalized for failure to comply , ith orders of examiners'. Banks must have at lea t three director ; unlawful for any banks to receive, deposits for six months in exce;;s of ten time its paid up ~E~t~f~~~JI:r~l~s~; :Banks officers must not contribute to campaign All, exce~t national banks, are required to make a report, not less than four times each year, to the co=issioner. And the commissioner shall make requisition on all banks for these reports to be made as of dates prior to the date of the requisition, and such date uch reports hall be verified and shall to be known only to himself. be published in full in a newspaper of the town or city whe1·0 the bank is !orated. Resources and liabilities shall be stated in such reports. Banks, collecting drafts with bill of lading attached must hold funds at least ninety-six hours. Banks must give notire to administrator or execut,or of deceased pei·sons of deposits of money and papers held for the deceased. Directors of every l.>ank to hold at lea5t tht·ee regular meetings each year and keep a complete record of all proceedings. Every bank with paid up capital of as much as ~00,000 may do business as trus~ company: maY_ act a a gua1·dian, receiver, etc.; may execute bonds m legal proceedmgs and generally perform the dutie of a trust company; may establish a special mutual loan department; in such department interest on loans not to exceed • per cent per annum. Bank not permitted to allow the u ·e of • its name by others in making loans. Banks are authorized to charge exchange of not exceeding onetenth of one per cent on "ca h items" and never le s than ten cents, and hall charge exchange on checks and drafts payabla to nonre ident. , except the United States. Cash items , hall not he prote ted for non-payment of exchange, but payment may be refused unless exchange is paid. Chattel 1\-lortgages and Deeds of Trust may be executed and recorded as other mortgages. Foreclosure is usually by trustee's sale. If property be removed to another county, mortgage must he there recorded within twelve months to affect purcbasers without notice. Iortgages on property to be acquired are valid, but not on a changing stock of goods if the mortgagor remain in pos.,ession and continue business. Reservation of title by the seller of a chattel to secure plll'chase money is valid without record. even against purchasers ,,ithout notice, except as to chattel. used or acquired in the business of a "trader." Banks, professional men and manufactw·ers, are not traders. Collaterals. General law prevails. ContraC'ts for sale of land, or for lease for more than one year, to be iu writing. Same in regard to sale of chattels of the vali.1e of more than 50, unles delivery in whole or in part is made. or payment in whole or part is made. Dealing in futm·es is forbidden and a ground for attachment. Gambling contracts and ordinary contracts made on Sunday void. <'ontract' by foz•eign corporal-ions wbo haYo not complied with registration of charter law are void. Conveyances. l\1ay vest title presently or in future. All estates in land greater than for one year must bo by deed, and to affect pw·chasers without notice must be recorded. Corporations must me all deeds to them in si.·ty days. Estates tail "prohibited, except that a deed or devise may be made to a succe ·sion of living donces not exceeding two and to the heirs of the body of the remaindermau, or, 'orporat ions in default thereof', to the right heirs of the donor in fee. 'onconvey under seal. In all other ca e · priYate seal. aboli. bed. veyanccs or devises to two or more. or to hu.,hand and wife, create tenancy in common. Rule in Shelly' · case abolished. Remainder  ~i1~?; ~~)~~~t afait~~t!~a~~tt~!t d~!r~to';~~d,·ci~!ciagi'so~~~g;tfat!~1 inheritance. ·words "convey and warrant" operate as a general covenant of warranty. The words "convey and warrant specially" operate as a warranty only again t the grantor or those claim.mg under him. A quitclaim deed has practically the same effect,. Husband and wife, if living together mu. t join in conveyance or incumbrance of home ·tead of either, or it will be void as to all under $:3,000. Coruoration . Corporations except for th~ construction and operation _of a railroad _other than str t railroads, and the cal'l'ying oo of an m-,urance busmess, other than mutual insurance, 1,iay be ct·eat d under a general charter. ApphcaLion fol' charter sig;ned by each of the incorporators and achnuwl dged. It must than be publish~d three con. ecutive \\Ceks io a newspaper published at the domicile of the proposed cu~p iration The applicalion, with proof of publication, mnst be forwurde I to tbc ccretary of state together with the fee for recording, and he must refer the same to the attorney general for his opinion as to the con~ti~utio;1ality and legality of the p~oposcd corporation, after which it 1s re,ecred to the governor for his approval or disapproval. Tho governor then returns it to the ecretary of state with his action ~n_dor~ d tber on. If_ he approve it, the secretary of st,ate shall record it m his ofllce and cer~1fy to the same and transmits it to the applicants. It must bo -!'ecor~ed m the ollice _of the clerk of the chancery coui·t of the county m which the corporation hall do business. Within thirty days afte_r tJ?.e organization, the corporation must make report of the orgamzat10n to the secretary of tate. If such report be not made the charter granted shall be void, and all p rsons doing bu iness thereon shall be deemed partners in the business, and liable as such  I I  1· I  11  I !  f  i '  I I I  ,I  I  I'  :!  I  f   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1906  BANKING AND COMMERCIAL LAWS-MISSISSIPPI  Corporations thus created possess the powers usual and incident Exemptions. The following personal property is exempt from to private corporations generally, but existence is restricted to fifty seizure under execution or attachment, to-wit: • years. Corporations created as above named may hold real property The tools of a mechanic necessary for carrying on his trade. necessary for their purposes, not exceeding one million dollars, manuThe agricultural implements of a farmer necessary for two male facturing companies and banks excepted, which may hold porperty laborers. to the amount not exceeding two million dollars. Corporations may The implements of a laborer necessary in his usual employment. own such personal property as may be necessary to their business. The books of a student required for the completion of his educaUnder the laws passed by the Legislature of 1912 all corporations, tion. whether domestic or foreign, are not allowed to acquire title in fee, The wearing apparel of every person. or for a term of years, to, or own land for agricultural purposes, in The libraries of all persons, including pictures, drawings, and paintthls State outside of an incorporated city, town, or village. A corings, not exceeding five hundred dollars in value; also the instruments poration may he lessor or lessee for not mo1·e than twenty years of of surgeons and dentists, used in their profession, not exceeding two as much as 10,000 acres of land to be used for agricultural purposes, hundred and fifty dollars in value. but any such lease or contract shall not be renewed or extended so The arms and accoutrements of each person of the militia of the as to authorize the holdings of said lands for another period. State. This law does not prevent corporations from taking deeds of trust, All globes and maps used by the teachers of schools, academies, and or mortgages on real estate to secure loans or debts, or from acquiring colleges. title thereto upon foreclosure of such securities or from acquiring The following property of each head of a family, to be selected by title to land by deed for the collection of debts, and that all lands so , the debtor, is exempt. acquired may be used and operated after foreclosure for all agriculTwo work-horses or mules. and one yoke of oxen. tural purposes during the time so held for not longer than twenty Two head of cows and calves. Ten head of hogs. years. It is also the duty of every corporation that shall acquire interest Twenty head of sheep and goats each. in or title to land in this tate to file the deed to same in the office All poultry. of the Chancery Clerk of the county in which such land, or a part of All colts under three years old raised in this State by the debtor. it, is located within sixty days after the date of the deed. Two hundred and fifty bm;hels of corn. If any corporation or other person shall have acquired any right, Ten bu hels of wheat or rice. title or interest in any land in violation of this Act, they shall be disFive huudred pounds of pork, bacon, or other meat. solved by a suit brought by the Attorney General of the State or by One hundred bushels of cotton seed. the District Attorney, if it is a domesLic corporation, and if a nonOne wagon, and one bue;gy or cart, and one set of harness for each. Five hundred bundles of fodder and one thousand pounds of hay. resident corporation they shall not be permitted to do business in this State, and the court shall thereafter appoint a receiver to take Fol'tY gallons of sorghum or molasses or cane syrup. charge of aJl property in this State belonging to such corporation or One thousand stalks of sugar cane. so held in trust and to dispose of the same under order of the court, One molas,;es mill and equipments, not exceeding one hundred and and after paying all debts of the corpo1·ation and all costs and charges fifty dollars in value. incident to said suit, the remaining shall be paid and distributed to Two bridles and one saddle, and one side saddle. One sewing machine. the stockholders. This Act does not afl'ect the rights of existing corporations in this How ehold and kitchen furniture not exceeding in value two hunState, but is passed to prevent a monopoly in agricultural lands. dred dollars. Stockholders individually liable for the debt: the corporation conAll family portraits. One mower and rake for cutting and gathering hay or grain. tracted dW'ing his ownership of stock for the balance that may remain And the following property shall be exempt from garnishment or unpaid for stock subscribed for and may be sued by any creditor. Directors are liable for the wilful mismanagement or for allowing otbel' legal process, to-wit: The wages of every laborer or person working for wages, being the capital withdrawn while debts exist. Corporations under the laws of other states or of foreign countrie · may sue in this State, and have head of a family, to the amount of llfty dollars per month. but this the same rights in the State as non-re. ident individuals. 'I he legi ·paragraph shall not apply to a debt for board and lodging or a judglature may repeal or amend charters granted after Tovember 1, 1 '90, ment founded on a debt for board and lodging. provided rights of st,ockholclers are not infringed. All foreign corThe proceeds of insurance on property, real and per.·onal, e. empt porations doing business in this state shall flle a certified and duly from execution or attachment, and the proceeds of the sale of such authenticated copy of its charter or certificate with the secretary of property. state. Charter must be certified by the president and secretary or Payable to Executor. Life insurance policy not e.·ceeding five other chief executiYe under the corporate seal. Fees are to be paid thousand dollars, payable to the executor, or administrator, shall accordiug to capital stock, viz.: 10,000 and under, 20. 00. Between inure to the heirs or legatees, freed from all liability for the debts of $10,000 and 30,000, -10. 00. Between 30,000 and . ;30,000, 60. 00. the decedent, except premium. paid on the policy by anyone other When over .30,000, one-tenth of one per cent and not to exceed 250. than the insured and debts due for expenses of last illnc: s and for burial; but if the life of the deceased be insured for the benefit of his Costs. :Non-resident or insolvent plaintiff reriuired to give security heirs or legatees at the time of his death otherwise; and they shall though an insolvent may sue in forma pauper is. collect the same, the sum collected shall be deducted from the flve thousand dollars, and the excess of the latter only shall he exempt. Courts. Terms and Jurisdiction. Justices' courts meet twice each Life insurance policy to amount not exceeding 10,000.00 goes to month; circuit and chancery court· in each county twice a. year; partie · named as beneficiaries free from liability for debt. of insured. supreme court twice a year in October and :\!arch. .Justices· courts Homestead in ountry. Every citizen being a householder, and have jurisdiction up to S200. Circuit courts have general jurisdiction having a family, shall be entitled to hold exempt the land and buildor all common law actions where the amount or value exceeds $200, ings owned and occupied as a residence, but the quantity shall not and jurisdiction or appeals from justices' and mayors' courts, and exceed one hundred and sixty acres, nor the value thereof, inclw,ive boards of supervisors. Chancery courts have jurisdiction of the of improvements, save as hereinafter provided, tho sum of three administration of estates of decea ·ed persons, of minors' bui_iness and thousand dollars. other probate matters, and of all matters in equity. Appeals may be Homestead in Cities. Every citizen being a hou ·eholder, and havtaken to the supreme court from any final judgment of the circuit ing a family residing in any city, town, or village, shall be entitled court, and from the chancery court, except in suits for not more than to hold, the land and buildings owned and occupied as a residence by $50 originating in the jusLice· court. ~uits of equitable cognizance such person, not to exceed in value, save as hereinafter provided, improperly brought, in the circuit court are transferred to chancery three thousand dollars, and personal property, to be selected by court, and vice versa. o suit di ·missed because being of an equitable him, not to exceed in value two hundred and fifLy dollar , or the nature it is improperly brought in the circuit court and e conver.·o. articles pecifled as exempt to the bead of a family. Ilome,;tead exemption may be increa5ed to 3,000 in value by Creditor' Bills may be flied under general Laws to subject equifiling for record in chancery clerk's ollice a declaration claiming as table a ets and in aid of execution at law. Such suits may, under the exempt certain property. statute, be flied to subject property or a debtor fraudulently conveyed 0 without a judgment and return of nulla bona; and this whether comfor'~~Jrggi~t~/~ea~:1~f ~~~Jt tg~r.~ro~. mfg;[/fo~~:~~a~r\ff!; plainant's debt is due or not. No bond is required unless a sequestraof interest not exceeding 6 per cent is exempt from taxation. ' tion is desired. Foreign Corporations may do busine. and sue and be sued as Curtcsy and Dower. Both abolished since 1880. in c~ e of domestic corporations. ( ·ee 'o poration .) Foreign corporations doing business in the State ithout recording their Deeds. (See Conveyances.) charters are subject. to fine; and all contracts are null ancl void. Depositions in civil cases, on written or verbal interrogatories; Fraud and Fraudulent Conveyances. ( ee .At.ta.clunent, Bills ten days' notice to opposite party. If such party is absent and ha.· of Lading, Limitation . 'reditor's Bill.) no attorney, filing interrogatories ten day· ·uificient. '1 be o!licer .. al~· of merchandise otherwise than in usual cour ·e of businr. and shall swear the witness to te.,.tify the truth, and shall impartially sal of entire stock of goods in gross pr ·urned fraudulent and void as examine him on the interrogatories. The testimony hall he fairly to creditor. , unles · ,> day.- before _·ale. i;eller make complete inventory written down by the omeer or, itne. s. or by a disintere·ted per.·on in and the pw·chaser made demand of seller for name, addr and amount the presence of, and shall be subscribed by the witne s, Depositions of claim of each creditor, and the purchaser notifieu personally or bY then certilled, and tran:mitted by mail or other afe and convenient mail each of credit,ors of propo:,;ed sale and of co:,t price of merchandise manner to the court where the Harne are to be I.Lled. Officer's cerand the price to be paid therefor. Purchaser violating thb act held tificate prima facio evidence of his character. to be tmstee for seller'. creditors to extent of rea onable \alue or De cent and Distribution. E ·tates of inheritance, real and good and required to pay them to that amount,, even ii' he has paid personal descend. 1. To children am! their de cenrlant per stirpcs. seller in full. _: 2. To brothers and sisters and father and mother iu equal parts and In ca:·e of de ·truction of tock of merchandi. e by fire, on which there their descendants by representation. 3. To th' next of kin accordiui; i in ·urnnce. holder or policie · to notify creditors he ow · for merchanto the civil law. Except among brot,hers and sister there is no dise of hls Jo-s and amount of insurance carrioo, , ithl11 5 days. representat,ion among collaterals. Advancements must be brought Garnishment on judgments or in attachment. Binds debts or into hotchpot. .. To distinction between i·hildren of the whole blood proi,erty of debtor in garnbhec's bands. and tho,e of the half blood, e.·cept thnt children of the whole blood arc prefe1Ted t-0 tho:;;e of the half blood iu equa! degree.. \YlI~re ther i · Grace. ..\boll hed. no one to inherit property e cheat.. Illeg1tfmates mher1t from the mother and from her other ('hildren and her kindred. 'bildren of Holidays are Jan. 1, Feb. 22, prll 26. June 3, July 4, first. rondat illegitimates and their descendan inherit from brothers and si. ters in September, fourth 'l'hursday in ,. O\"ember, and December 25. of their father or mother and from grand parents. But children of 1 1 illegitimates do not inherit from any ancestor Clr collate_ral kind[ed if ~~-.Y~:~~~~d1~t i~~e. a~eu~a~~hl~aft?rJ'~; there be legitimat,e heirs of such auce ·tor or CClllat_eral kmdred, m the are to be pre ented for payment on tile next ucce ding bu in . day same degree. Exempt, property of bu ·ball(.l or vife descends to sure. ecpt that i11struments payable on demand may a the option of the ,ivor a11d children as tenants in common. hol<ler he presented for payment before t, ·elYe o'clock noon on 'aturclay when that. day is not an entil'e holiday. Dower and Curtcsy have been aboli. hed. ince 1S80. Evidence. In the main common law rules apply. Parties and Homes1 cad owned and occupied by hu. band living with wife cannot interested persons competent: except against decedent. Affidavit to be sold or encumbered unle.. the wife joln.s in the conveyanre. The open account entitles io judgment, unle. s defendant deni · under same is true as i-0 husband if wife owns hom tead. ( · 'e Exempoath. \Varehou:,;e receipts and bilb of ladine: conclu ·i,,e evidence lo tion.·.) favor of a bona fide bolder that the property was received by the Husband and Wife. The di abllities or coverture are abolished, issuer. ( 'ee also Accounts and Allidavit ·.) as are <lower and curt y. llusband and wife may contract with and . ue each other, but contracts for compen ·ation for ervices renExecution in circuit court i.·sue '\\,ithin twenty days after the dered to each other are void. If bu band rent.< wife' land, nn!les, adjournment of court unless otherwise ordered by the plaintiff. and etc .. and dc•e:,; busines in his own name, it will be deemed the business in justices courts after t,he lapse of ten days from judgment rendered, of the wife as to tho.'e without notice, unle: · the contract be recorded. unlei-s recovering party makes affidavit that he is in danger, by delay, Transfers between are void as to third person. uni of losing his debt or demand, in which case execution issues forthwith. recorded. (See No redemption of property sold under execution or mortgage. also Married Women, Wills. and Homestead.)  t~f  ~ra:. ~J~~tri,~~n~ l-~~fn  BANKING AND COMMERCIAL LA WS·-MISSOURI  1907  Insolvency. No general insolvent laws. hut insolvent estates of decedents are divided among creditors pro rata. In case of insolvency partnership property is applied first, to partnership debts, and e converso. Interest. Legal rate 6 per cent per annum. and money loaned at not exceeding that rate is exempt from any taxes. but parties may contract in writing for 8 per cent; when more is stipulated or collected all interest is forfeited. When above 20 per cent interest and principal forfeited and payments forfeited. Judg1nents elll'olled 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 judgment creditors fail to issue executions. Lien of judgment continues SYNOPSIS OF seven years. Jurisdiction. (See Courts.) Lien . Lien of an enrolled judgment, of mechanics and material men, of Jancllord and laborer on agricultural produ !ts, innkeeper's and stablekeepcr's lien. The seller of goods may enforce lien for the price of the i:;ame, provided the goods are still in the hands of the purchaser or one having notice. The procedure is by affidavit, flied RELATING TO at t,he commencement of the suit, stating that the purcha e money is unpaid. A writ of seizure issues, and the goods are taken. No boncl required of plaintiff unless third person claims the property. BANKING AND COMMERCIAL USAGES 'l'itle to personal property may be re erved by the seller as security for the price, and this is good even as against a sub.·equent bona fide or acquired where purchaser, without any writing or record, except , Prepared and Revised by SANFORD B. LADD, EsQ., Attorney at Law, used in the busine. sofa trader. Kansas City. (See Card in Attorneys' List.) Limitations. Open accounts, accounts stated, and verbal contracts. express or implied, three years: all other contracts, sL'll'. year award· of arbitrators, six years; judgments and decree· rendered in Acknowledgment:-;. Acknowledgments of instruments affecting another state against re ·ident of this, three :rear : rendered in thb, real estate may be before one of the following courts or officers. 1. seven years, real actions, ten years. Action. to recover property Within this ~tat,e. some court having a seal, 01• some judge, justice or sold under order of chancery court must be brought within two years, clerk thereof, a notary public, or some justice of the peace of the where possession is talrnn and purchase money paid in good faith county in which the real estate is situated. 2. Outside of this State ,vhen the legal title to property or right in action is in an executor, and within the United Htates, any notary public, any court having a guardian, or other t-rustee, beneficiary, though under disability, is seal or tho clerk of such court. or commissioner of deeds. ~- Without barred when trustee is barred. Action against administrator or the United States, any court having a sea.I, the mayor or chief ofllcer executor on claim against person deceased limited to four year· from of any city or town having an official seal, any minister, consul or date of qualific'aLion of such administrator or executor. ."tamte does ofllcer of the United States, or notary public ha'l-;ng a seal. The not apply to suits on notes or evidences of debt of bank. or other official should certify that "before me personally appeared . . . . moneyed co1·porations circulating as money. An acknowledgment or and ........ , his wife, to me known to he t,he persons dcscrihed in, fraudduring run not doe· ~tatute writing. in be new promise must and who executed the foregoing instrument and acknowledged that ulent concealrnent, nor against infant or per ·on non compo.· men tis. they executed the same as their free act and deed." nor against a convict in actions for assault, etc., until after release nor against State, county, municipality, or any polit il'al subdivision Actions. There is in this State but one form of civil action the of State, nor in favor of persons who remove from the state. practice being under a code. .\ non-resident, plaintiff must file the written undertaking of some resident for costs. Manied \ omen 1·etain their estate, common law clisahilities of coverture abrogated; have eapacity to make contract. and do all Administration of Estates. The probate court in each county acts in refor·ence to property. Dower and curtesy aholished. Hushas jurisdiction of the settlement of the estates of dccea.:sed persons. baud and wife must join in conveying or encumbering homestead. Claims 1i1·esented to the court for allowance within six months after (See also Husband and Wife and Descent.) the grant of I •t,ters are preferred over those presented later. Claims not presented within one year from the granting of letters are barred. 1\1ort gages and Trust Deeds do not take effect as to creditors or Letters are g-ranted: 1. To the husband or wife. 2. To those entitled purchasers in good faith and without notice until they are delivered to distribution, or one or more of them. If after the expiration or to _the clerl{ for record: with power of . ale are foreclo ed by sale in thirty clay,, aner death of deceased, such persons do not, on five Pais; without power of sale, by suit in chancery court, and after foredays' notice, appear and qualify, letters may be granted to any other closure there is no redemption. (See Chattel ~Iortgages.) person. Non-1·esidents cannot he executors or administrators, nor Notaries. Have power to administer oaths, take acknowledgments may non-resident executors or administrat,ors maintain an action in and to prntest notes and bills. (See Conveyances.) this State. • ·otes and Bills. Uniform ogotiable Instruments Law adopted Aliens. Aliens or alien corporations ma.' not acquire, hold or own and now operative. (See Holidays.) real estate except such as may be acquired by inheritance or in the Partnership. Few statutory provisions. Go,·e,ned by gen ral ordinary course of justice in the collection of debts. Real e ·tate law. In ca e of insolvency, partner'ihip property mu,-,t go to pay acquired hy an alien creditor at foreclosure sale must be disposed of Provision made for limited or special firm debt . and e couver o. within five yea.rs. partner ·hips. Arl1itration. Parties to a controversy may submit the same to Powers of Attorney. :May be acknowledged or proved and arbitrators. and their award be confirmed by a. court and judgment recorded a.'! deeds. l\lay be revoked in like manner. Co_nveyances rendered thereon. of land or other properly under powers of attorney are vahd. Arrest. No person can be arrested under civil process. Uedemptiou. No redemption from sales under mortgao-e, ~xecuAssignments. Voluntary assignme11ts must be for the equal tion, or ot,her judicial sale. Two years allowed for redemption (?f benefit of ,ill the creditors of the ru si~nor and are administered in the land sold for taxes, saving to minors and persons non -eompos mentrs circuit court,. No such assignment operates as a discharge of the a like period after removal of disability. assignor from his debts. Replevin lies to recover per,-,onal property wrongfully withheld Attachments. Tho writ may issue when the debtor is a non-resifrom the owner. The property may be restored t_o defendant on _bond. dent; or conceals himself so that the ordinary prnce ·s of law cannot If he declines to bond, plaintiff may do so. ~f neither d_oe ·, a claimant served; or, bas absconded or absented hiLUself from his usual place be of the property may give the bond and rec-eJYe po. · 100. Damages of abode in this State. so that process cannot be served, or, is about to may be w·se: sod for wrongful taking or detent10n. remoye hi· property out of the State with intent to defraud, hinder, or 1'axes. Personal property is a.·sessed once a year: real_ estate delay his creditors: or, is ahout to remove out of the Mate and change every two yoa1·s, and taxes constitute a prior lieJ?-, . Land delrn(Jueut his domicile; or, has fraudulently conv-eyccl, concealed. or removed sold on first ;\londay of April. l{edemption w1tl11n two years, on bis property, or is about to do so, to hinder or delay his creditors: or, payment or all taxes, co. ts, 25 per cent damages, a!ul 5 per cent on ha. failed to pay the price of any article which ho was bound to pay for amount paitl. Infants and persons of unsound mind may redeem upon its delivery, or has fraudulently contracted tho debt: or, where Within two years after 1·emoval of disability, on payin" the value of the cause of action accrued out of this , t.ate and the defendant has Permanent improvements put on the land after two :rears from date absconded or secretly removed his property into this ~tate: or, where of sale. the d:1mages sued fo1· arjse from the co11unissio11 of a. relony or misdemeanor or the seduction of a female; or, tho defendant is a corporaTrust Companies. Provi. ion for such companle ,nt_h general tion whose chief olllce or place of hw·iness is out of this State. The Powers-to administer all tru t ·, make bonds and the like. (See plaint.iif, his a~ •nt, or attorney must mal,e allida,•it to one or more of Banks.) these grounds, and the plaintiff, except \\ here the fedendant is a nonWarehouse RecelJ>ts. (See Bills of Lading.) re.-;ident., must gh-e bund for donble the amoui t of the debt. Wills executed hy anyone twenty-one y~ar old, of ound mind. Banks are organized under a general law. The cash capital must As to land, if not wholly written and subscnhed by t. stato_r, mu,,,1, be not he less than 810,000 nor more than $.i,000,000, and in cities of attested by twu suhscrii>ing witnesses. A nuncupatlve \Jll (_of J?Cr150,000 or more, not. less than $100,000. The entire capital must be sonalLy) may be made during last sickness of testator at bab1tat1011, sullscrihe,J, 011e-llu.ll' thereof paid up on or!!:anizu.Uon, and the other or where test,ator has resided ten days next before death, or where half within 0110 year. Directors must be re ·klcnts of this State. The person is taken sick from home aurl die· before returr!, must he pro\ eel reecipt of deposits with knowledge of the fact that, the ba11k is in failing by two wit ues:·n-.. ,. 'nncupative wills not to _he c: _tabhshed where value is puni llable by floe or imprisonment, and o/Il •ers circumstances, n~ay servlc~ actual, 1!1 sa1lu~ bequeatht•d u.·<'eed-.; 1oo. 'oldiers and a •ents consenting Lo the creation of debt· with suC'h knowledge, and o r. trict1on bequeath personally free from ·tu.tulory re _tr1ctron.. a1·e individuallr resµonsihle therefor. _Tot more than 2;; per cent of Ur,ou the power to clbpose of property hy \\ di except that religious. or its capital sto •k must be loaned to any indi\idual or corporation. cbaritahle trusts or bt'Quests void. Provision. made for renouncing Large powers or supen ision and control are , csted in the bank comWill by sun i ing hw·hand or wife in certain case·. Proba~ed in comPrivate bankers must ha, e a paid-up eapita.l of not less missioner. another kills who n1on form may be conte ·ted within two years. One than .. llJ,000, and iu cities of 150,000 population or more, not less than cannot take under his will. $100,000. Every firm or individual as well as every corporation that engages in Lhe busiue. s of banking shall be subject to the strict su1iervision of the State llanking Department. Conditional Sale of personal property, unle s recorded, are void as to subsequent purcbw ors in good faith and creditor·. Conveyan<:e . A per·on may convey title to lands although not ii: po.·,,,e.-sion. and although the same be in ad\·er. e pos,;ession. The signature of the grantor in a deed need not he atte,,,tcd by a subscribing witness. A deed by~ natural per·on need not be under his i:;eal The corporate seai must be atllxe<l to deeds of corporations. The use of the word "heirs" in a deod is not necessary to create a fee simple. The statute abolishes est.ates tail and co'i1verts an estate tail into a; life estate for the fir t taker, with remainder in fee simple to the heirs of bis body. The words "grant, bargain and sell" are employed in_ the granting clau e of a warranty deed: by statute those words constitute express covenants that the grantor was seized of an µtdeferu ible estate in fee. imple; that the real e 'tate was free from all mcumbrances done or suffered by him or any per on under whom he   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  THE LAWS OF MISSOURI   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1908  BANKING AND COMMERCIAL LAWS-MISSOURI  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 deerl, will immediately pass to the grantee without further conveyance. An estate of freehold may be made to commence in future, by deed. An interest in real estate, grant,ed or devised to two or more persons, other than execut,ors or trustees, or husband and wife, is a tenancy in common unless expressly declared to be a joint tenancy. A conveyance to hu ·band 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. Corponttions are formed under general law. In the case of rnanufacturiug and most other bnsine.·s corporations, the capital must be not less than $2,000 nor more than 300,000,000. One-half mu.·t be subscribed and actually paid up in money or prope1·ty of the full value thereof, if part of the capital stock is paid in property, there must be an itemized de cription, tlle actual cash value of each item being shown. Part of the stock may be preferred, paying not to exceed (i per cent annual dividends. Cumulative voting is permitted. Director· must not be le than three nor more than twenty-one: three of them must be citizens and residents of the State. A stockholder having paid for his stock in full is subject to no further liability. The amount of the bonded indebtedne. s cannot. in any event, ex('eed the amount of the authorized capital stock. The bonded indebtedness cannot be increased nor the capital stock increased or diminished 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 circuit court for a decree for the winding up of the business. Corporations owing no debts may also be dissolved by -unanimous vote of all shareholderi. A corporation pays an annual franchise t,ax equal to one tenth of one per cent of the par value of its outstanding capital stock and surplus. The General Assembly of 1913 enacted what is popularly known as a "blue sky law," placing under strict supervision of the Bank Commissioner, corporations and partnerships carrying on the busine. s of selling and negotiatin 5 ~ tocks, bonds and securities (a few securities excepted.) Ample powers of visitation and summary action are conferred upon the Bank Commissioner, and penalties of fine and imprisonment imposed for violation of the law. A foreign corporation must flle in the office of the secretary of state a copy of its charte!' with a statement of the proportion of its capital stock invested in ::V.Ci souri, and pay certain fees. Tt then receives a license to do business in the State. It must also maintain an office in the State. It,s personal property in this State may not be incumbered to the injury of any creditor who is a citizen of this State, and no mort~age by a foreig-n corporation except a railroad or telegraph company, to secure a debt created in another State is effective as a~ainst any citizen of this State until its debts, due to resident citizens at the time of recording the mortgage, haYe been paid. A corporation failing to comply with the ·e provisions is subject to a fine and cannot maintain a suit in a court of this State. A corporation of any country outside of the United States before being authorized to tran ·act business in this State must have a public omce in the State, where books shall he kept, showing in detail its as. ·ets and liabilities. the name· and residences of its shareLolders, officers, directors, and managers. .. · one of the. e requirements apply to in urance companies. Courts. Circuit Courts have original jurisdiction in all cases of law and equit.y and hold two or more terms in each year in each county. Juri. diction of the settlement of estate of deceased persons is vested in a Probate Court in each county. .Ju.-;tices of the Peace haYe jurisdiction up to $250; in counties and cities having over 50,000 and less than 200,000 population up to . 300: in townships having more than 200,000 and Jess than 400,000 population, up to $500; in cities of over 300.000 population up to . .500; in cities of more than 300,000 in some cases $600. Appeals lie from judgments of Justice and the Probate Court to the Circuit Court. There are three appellate courts in tbe state to which appeals lie from the Circuit Courts in all cases (wit.h cert,ain exceptions). involving not more than $7,500; in all other cases appeals lie from the Circuit Court to the Supreme Court. Days of Grace are abolished. (See Negotiable Instruments.) Depositions. May be taken on notice of at least three days and one day additional for every fifty miles of the first 300 and beyond that one additional day for each 100 miles from the place of serving the notice. If taken outside of the Htate a commission issues from the court in which the suit is pending. They may be taken within the State by any judge, justice of the peace, notary public, clerl, of a court. mayor or chief officer of a city or town having a seal of office; and if out of the State by any officer appointed by authority of the laws of this Ht ate to take depositions. a consul or commercial representative of the United States having a seal, or mayor of any city or town having a seal. or any judge, justice of the peace. or other judicial officer, or ii notary public. They may be taken upon '1\-Titten interrogatories, hut this is not customary. The name· of the witnesses or of the oflll'er need not be mentioned in the notice. Objections to the compecency or relevancy of the testimony need not be noted, but can be first made when it is ofi'ered at the trial. Descent and Di. tribution of Property. The real and personal e. tate of an intestate de·cends and is distributed as follows: 1. To his children or their de cendants in equal parts. 2. If there be no children or their descendants, then to his father, mother. brothers, and sisters, and their descendants in equal parts. 3. If there be no children or their de.:;cenclants, father, mother, brother or sister, nor their descendants, then to the husband or wife: if there be no husband or wife, then to the grandfather, grandmothet', uncles and aunts, and their descendants in equal parts. •L If there be no children or their desc-endants, father, mother, brother, si ·ter, or their descendants, hw,hand or wife, granrlfather, ~ranclmotbcr, uncles. aunts, or their descendants. then to the grcat-gran<lfathers. great-grandmothers. anu their descendants, in equal part-, and so on. in other cases without end passing 1.0 the nearest lineal ancestors and their children. and their descendants in equal parts. Po.~thumous children inherit. "'hen there are collaterals of the half blood, they inherit half as much as those of the whole blood. Lineal descendants in equal degree take ])er capital; but where part of them are dead and part living, the issue of those dead take µer stirpes. "'hen a wife shall die without, any child or other descendants in being, capable of inheriting, her wido" er shall be entitle<! to one-half the real and personal estate belonging to the wife at the time of her death, absolutely, subject t,o the payment or the wife's debts, and the widow takes a like share of the estate of her huc::band on his death without lineal descendants. An illciritimate child inherits from its mother. and vke versa. An illegitimate child become legitimate if the parent interruarry. Dower. Dower in real estate i.· a. at common law, but the widow has the right, at her election. to choose certain nortiorn of her husband's estate absolutely, in lieu of dower. A widow may renounee provisions in a will in lieu of dower and elect to take ab olntely l'Crtain portions of the estate. • -o conveyance by the husband or. ·tie uncler judgment or decree will bar dower. The estate by the curte ·y exist as.at common law. Executions. Unle s motion for new trial is flied within four day after ju,lgment, execution i sue.· immediately. Real P,tatP mu<.:t. be sold during a session of the court which rendered the judgment. Sales  1  of real estate must bo advertised for twenty days; of personal property for ten days. Execution sales are for cash. No execution is a lien upon personal property until actual seizure thereof. It may issue at any time within ten years from the rendition of the judgment. Deeds to the purchaser are made at once by the sherifl', no confirmation of sale 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 square rods not exceeding in value Sl..500, in towns of less than 10,000, ten acres, not exceeding in value $1,.500. The exemption continues to the widow and to the children until their majority. There are also exempt, when owned by the head of a family, ten hogs, ten sheep, two cows, and certain farm implements; two work animals. spinning wheel, loom, and small quantity of hemp, flax, and wool; wearing apparel; $100 in household and kitchen furniture; mechanic's tools; provisions on band for family use: Bibles and other books used in the family. Lawyers, physicians, ministers, and teachers have the right to . elect profe.- ional books in lieu of other property allowed to them and doctors may select medicines. In lieu of certain of the exempted articles any other property, not exceeding 300 in value, may be selected. Frauds and Perjuries. 'o 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 fo1• the debt, default, or miscarria11:e of another, or made in consideration of marriage, or for the sale of lands or any interest in or lease thereof for a longer time than one year, or on any agreement that is not to be performed within one year unless the agreement sued on, or a memorandum thereof is in writing signed by the party to be charged or his authorized agent; and no contract for the sale of lands by an ag-ent is valid unless the authority 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 purcha. e 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 orclinary course of trade, is fraudulent and void as against creditors of the vendor. unless the vendee shall, at lea.<st seven days before the sale furnish to the creditors a statement of the consideration for the sale, the amount of the indebtedness of the Yendor, and the names of his creditors. All creations of trust in lands must be in writing except those resulting by implication of law. Garnishment. Garnishees may be summoned u'nder 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 interpleader. ·ot more than 10 per cent of the wages due for the last thirty days' ervice of tho head of a family and resident of this State can be garnL hed. Public corporations and their officer· are exempt from garni. hment, at; are also administrators and executors prior to an order of distribution. Holidays. January 1, February 22, :\lay 30, July 4, the first l\.Ionday of eptemher, an~· general primary election day, any general state election day. any thanksgiving day appointed hy the President or Governor, and December 2,> 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 a.s "Columbus Day" are also holidays, but are not such as respects commercial paper. Husband and Wife. (See :\-Iarried ,,·omen.) Income Tax. A tax of one and one-half per centum is levied upon tbe annual income of individuals and corporations, with proYisions for certain deductions and exemptions. Inheritance Tax. A tax is levied upon the estates of deceased persons varying from one to five per cent, depending on the relation of the beneficiary to the deceased, and exceeding those rates when the value of the property rereived by a beneficiary exceeds $20,000, with certain exemptions in favor of di.trerent classes of persons mentioned in the law. Interest. Legal rate 6 per cent, but by ae;reement in writing any rate not exceeding s per cent. The legal rate is collectible on moneys after they l.Jecome due; on ,nitten contracts or accounts. after due and demand made; on money recovered for the use of another and retained without the owner's knowlede;e. If usurious interest ha.s been paid that part in excess of the legal rate is deemed payment, i\lld credited on the debt, the holcler of which recovers the debt only with le!!al interest after cledul'ting uch payments, and costs are adjudged against him. The rec.:eipt or exaction of usurious intere ·t, upon a debt secnred by lien upon personal property renders the lion im·aJid. Parties may contract that interest may be compounded, but not oftener than once in a year. Judgment,;. Jud:.rments and decree renrlered by a court of record are liens on the real est a e of the person all'ainst whom thPy are rendered situate in tlle county for which the court is held. Tran. cript of a judgment flied in the office of the clerk of the circuit court of anY other county becomes a lien upon real estate in such county. The lien of a judgment continues for three years, and may he revived at au time within ten year from it· rendition. E ·ecution may i sue at any time within ten year: fro 1 the rendition of a judgment. When two or more judgments are rendered at the . ame term as hetweeu parties entitled to the judgments. the liens commence on the lac.;t daY of the term at which they are rendered. Judgments hear interest at ti per cent, but if upon contracts bea:-ing morn than 6 per cent, the judgment bears the rate of the contract. Liens. Statutory provi.-ions exist for mechani ·' llens, liens of keeping horses and oi her animals, lieu.· of inn and hoarding-house keepers, lien· of contractors, material-men, and laborers against railroads. Limitations. Actions mnc.;t be commenced within ten years: 1. Upon any vriting for the payment of money or property. 2. On any covenants of warranty or seizin c ntaine<l ln any deed. 3, For recovery of lands. •I. l'or relief nut otherwise proYided for. \Vithin five years: 1. l pon contract·. expre.-s or implied, except judgments or decrees or court. 2. Gpon a statutory liability other than a penalty or forfeittlre. 3. Tre. pa s. 4. Replevin, and for any other injury to tho person or rights of another not ari:lng on con-f tract and not otherwise enumerated. 5. For relief on the ground of fraud. Within three years. I. Against public of lcen:; for act-; o oillcial commi ·sion or omission. 2. For a penalty or forfeiture where the action is given to a party or a party and the State. \\'ithin two years: Actions for libel, ·larnler. a.· ault, battery, fa! e impri,;onmont. or criminal conver ation. :tatute d es not b "in to run against _a resident of this • tale who i ab .ent at the time it accrues, until return; if he depart after it accrues, the period of his ah. once is no counted. Acknowledgmt'n or promi es. to take a C::l e from tbO operation of the :tatute, mu,,t be in writin~. Ju1l..,ment, are presumed to be paid after ten years. au e of acrion barred by tllO laws of the tate in which it ori"'inated is barred in this State. Liin.ited Pn.rtnershio. . !ay con ·i,,t of one or more ireneral an~ one or more . p ·cial partners. .. pecial partner· contrihuting a .specified amount in cash to the capital are not personally liable for the debts  hii  BANKING AND COMMERCIAL LAWS-MONTANA of the partnership and have no power to transact its bu,incss. A verified statement of the terms of the partnership mu ·t be flied with the recorder of the county. There can be no limited partn rship for the business of insurance or banking. l\larried \Vomen. A married woman is deemed a femme sole so far as to enable her to car1·y on 01· transact busine.· on her own account. to contract and be contracted witb, to sue and be sued, to enforce or have enforced against her property such judgments a 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 a.· a party. Her real estate and personal property cannot be taken by any process of law for the debts of her husband. Neither the rents, issue.. or products of her real estate, nor the interest of her husband in her right in any real estate, can be levied on for his debts. Mortgages. l\Iortgages on real estate are e.·ecuted like deed . Husband and wife must join to Qar dower or home tead, except to secure purchase money. The common form of real estate sE>c·urity is a deed of trust with power of sale in the trustee upon default in ale is at public auc,ion upon twenty the payment o the debt. or more days' public notice, as may be provided in the instrument. The trustee executes deed to the purchaser. There is no redemption from sale unless the holder of the debt is the purchaser, in wllicl1 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 ot accrue Within the year and all interest on prior incumbrances paid by the creditor and taxes and a! se: ments accruing during the :rear. Evidences of debt secm·ed by mortgage or deed of trust must be produced to the recorder when satisfaction is entered. .1. -o foreil(n corporation or individual may act as trustl'e in any deed of trust unless there be named as co-tru. tee a .M i.·souri corporation or indi\'idual 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 mort.gagee or the mortgage be acknowledged and recorded in the county of the mortgagor in the same manner as conveyances of real estate. or unless the mortgage or a copy thereof be filed on the office of the recorder of the county of the mortgagor, or, where he is a 11on-resideut of the State. then in the office of the recorder of the county in which the property is situated. Every such mortgage cea.-;es to be valid after the expirat-ion of five ~·ears from the filing of the ·amc. cgotiable Instruments. The General As:embly of this . tate has codified the law of negotiahle instruments by the passage of" An act relatin~ to the negotiable in trument , to re,·ise and codify the law concerning the same, and t,o establish a law uniform with that of other states on the subject." The act is the .. ame as that adopted by many other states in accordance with the recomruendaLion of the American Bar Association. It becan1e effective in Mi.· ouri, June 16, 190,5.  Power of Attorney. Au instrument of wri ing 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 i"f~~~:~if~~~eeds, may be read in evidence without further proof  ~i  rd 1dof ny  he an at en  of  se  st  Probate Law. (See Administration of Estate.. ) Protest. (See Negotiable Instruments.) Re11levin. Goods or cbattels wrongfully taken or retained may be replevied by the owner or party entitled to po.·se, sion. _Atndavit must be flied and bond in double the \'alue of the property given. In certain cases defendant may retain possession of the propertl· by giving a bon<l in double its value. If plaintiff fail in his uit, defendant recovers judgment against plaintif? and the sureties on the bond for the value of the property and damage·. Taxes. State and county taxes are usually paid in November or December. If not ])aid, they are regarded as delinquent from the first day of the succeeding January. 'tate and county taxes for each year are a lien upon the real estate from the tlr ·t day of June of the pr~ceding year. Delinqueut slate and county ta es are ~9llected by suit. '.Municipal taxes ar pa;vable according to the prov1s1ons of the charters or general laws by which th y may he go,·erned. In some cases the payment of delinquent city taxes ma)· he enforced by a sale of tho property without suit; in others, suit must be brought b_efore sale can be made. There is no redemption from a sale under a Judgment for ·tate and county taxos. Redemption is usually allowed in a sale for city taxe · under the provbion of the particular charter. Wages. (See Garnishments; Exemptions.) .Wills. Every male person twenty-one years o~ age may, b.Y his last will, devise all of his est.ate, real, personal, and m1x~d, and m; ery male over the age of eighteen years may bequeath h1': personal e.-;t~te. Women of eighteen years of ap;e and up"ard_. married or unmarried, may devise tbeit· real estate and bequeath their personal property. !',. ":ill must be in writing, signed by the testator or some per ·on by hlS d1rertion in his presen<'e, and must bo atte ·ted by t_wo or more competent witnesses sub. cribing their names to the ,,111 m the prc..;ence C?f the testator. If after making tbe will t,he testator ~hall marry and die le_aving issue of the m1u·riage livinp; at the time of In· death. or _born to hun after bis death, the will sball be deemed re..-oked .• The will of ~n unmarried woman is re,•okcd by her ·ub ·equent rnar_nage. . If a chlid or children or the desc ndants of such child of ch!lclren, JU ca e ~r their death' are not named or provided for in tbe will, the te...;tator 1s deemed to ·have died intestate as to such child or children or their descendants. Will: must be prc:ented for probate to the probate court of the county in which was the place of abod of the te:-tator. Wills may be contested within 1,wo years after the probat.e th~rcof by Petition to the circuit court of the county. Heal c ·tat.e JU this tate may be devised by last will executed and proved accordm!! t_o the laws of this St-ate. Personal estate may be beql}-eatl!ed accordmg to the laws of the state or country in , hich the will shall be made.  or. pt er for nof of ere wo  nt.  a l1iS ot be robe  1909  SYNOPSIS OF  THE LAWS OF MONTANA RELATL.G TO  BANKING AND COMMERCIAL USAGES Revised by  CHARLES  E.  PEw,  Attorney at Law, Ilelena.  Abstractors. Mu ·t give $.5,000 hond to state and shall receive certil1cate from StaLe 'rreasurer authorizing him to do bu:ine: s. Abstract furnished by authorized abstracter admitted in court has prima facie evidence of contents. Acknowledgments of instrument. may be taken in this State. 1. llefore supreme court justice, district judge, justice of the peace clerk of any court of record, county clerk, notary public, or U. S. Com~ mis. ioner. 2. Outside :'.\:Iontana in the United Star.es. Before the justice, judge or clerk of any court of record of the United States or any state or territory; a conuui.· iouur appointed by the governor for that purpose, a 11otary public, or any other officer authorized to take acknowledgments. 3. Outside United 'tates before minist,er, commissioner or charge d 'affairs. consul, ,·ice-consul or consular agent of the United State ·, a judge of court of record, commissioner appointed by governor or notary public. In all ca ·e · acknowledgment must be taken within jurisdiction of officer taking. Must be in substantially following form: "State of ........... . countyof . . ...... . . s.s. Outhis ........ dayof .... 10 .. before (name of quality of officer) personally appeared. . . . . . . . . . known to me (or proved on oath of ...... Lo be the person whose name is subscribed to the within instrument, and acknowledged to me that he (or they) executed the same." Same for married women. In c~-e of corporation . ame to st.ar. then "president or vice-president (or secretary or ar islant secretary) of the corporation that executed the within instrument and acknowledged to n1e that such corporation executed the same," and in ca.e of attorney in fact, "whose name is subscribed to tbe within instrument a<; attorney in fact of ......... . and acknowlodged to me that he suhscribed the name of .........• theruto as principal. and his own name a.-; attorney-in-fact." Outside the county must be accompanied by certificate of county clerk. otice to Administra.tion of Estate is had in district courts. creditor publi!-.bed four weeks. < !aims not presented in four months after first notice, if estate 10,000 or less, or ten months if over 10,000, are barred. Letters of administration granted to: 1. Surviving husband or wife or competent appointee. 2. bild. a. Father or mother. 4, Brother. 5. Rister. O. Grandchild. 7. ~ ext of kin who inherits. . Public administrator. O. Creditor. 10. Any person legally competent. ·when several claim right and equally entitled. court appoints, preferring males to female and whole blood to half blood. Afflda\·it may be taken or oaths administered before any judicial omcer, clork of any cotu·t, county clerk or notary public in thi:- .'tate; in any other state before a commissioner appointed by the governor notary public, or judge or clerk of any court of record having a seal; in a foreign country before an ambassador, minister, consul. viceconsul, or consular agent of the United 'ta.tes, or judge of a court of record having a seal. ,Yhen taken before a judge in any other state or foreign country, the existence of the court, signature and official character of tbe judge must be certified by the clerk of ··uch court, under its seal. Aliens and Denizens have same right ru citizens to acquire, use and di pose of ntining prope1·ty and real estate in connection therewith. Arbitration. Any controversy except over title to real property may bo submitted to at·bitration by a writ.ten agreement to that e!fect flied in <'ourt an<l may be made an order of court. ,vhen made an order of court 1s irrevocable; otberwi. e it i' revocable at any time before award. An agreement t,o arbitrate. cannot bo specifically enforced. Arre. t. Defendant in a civil action may be arrested when about to leave the State or conceal his proper1,y, with intent to defraud c1·editors, and in certain other action where fraud, wilful injury, or wilful violation of duty, or wrongful com·ersion of money or property by a public otllcer or a fiduciary, or for tine or penalty. A sho1ments. Voluntary assignments for benefit or creditors allowed if without, conditional preference, not coercive, Impartial without resen ation for fraudulent benefit of assignor, and does not confer power upon a.· ignee to delay execution or the trust, nor exempt him from liability for negligence or misconduct. I under partial supervision of the district court. Attachments. Writ of may he had at the time of issuing summons or any time thereafter in actio11s upon unsecured contracts expre.-;s or in1plied for direct payment of money, or if contra<:t, originally securecl, when security bas be<'ome worthless wit.bout plaintiif's f?,ult. ls issued upon a~da';'it on 1,cbalf of P!aintiff, after filing bond m double amount of claim, 1f under $1,000; 1f over, in amount of claim; bond never to exceed .., 10,000. Any property, real or personal, or debt due from or money or personal property held by third pet·son, including judgments, may be attached. Banks. No special provision regarding national banks except that all banks, organized under laws of this tate or the uited Stat.cs hall be taxed for value of its stock in county, town, city or district b~~~~ ~ocated a.lld not el ewbere, regar<.lle - of residence of stockBanks of discount and deposit, incorporated under laws of Montana for no~ less than 20,00~. all pai~ in cash, may do bu.-lne. s when authonzed by state auditor, certificate of auditor to be published  nd  ci-  ts  121   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  BANKING AND COMMERCIAL LAWS-MONTANA  1910  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 tran fer of the stock. Failure to comply wit.h requirements for sixty days forfeits 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 commercial paper owned by person negotiating same. Each such bank mm:;t keep on hand funds equal to 20 per cent of its immediate liabilities half cash and half balances due from solvent bank. One hundred dollars to five hundred dollars penalty for making new loans while reserve below the ptoportion. Laws provide for state examiner, who visits and examines financial condition of banks yearly. Banks charged certain fee._ 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 application, or when declared insolvent by state examiner. Saving bank 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 certain special laws. Bank Is not liable for payment of forge('} or raised check, unless claim is made within one year aft.er check is returned paid to depositor. (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, mortgages or attaching creditors prior to filing. Conveyances. Title to property of any kind (except a mere possibility not coupled with an interest), including a right of re-entry for breach of condition suj)sequent, and property in the adverse po· ession of another, may be transferred. Deed to several persons, except to executors and trustees, creates tenancy in common, unless expressly  ~et~nef. tJ~~t ;;g;:~ryii!~fe~e:g•a ~~e liiYesfii1~~et~l~Iass~~.?e: nants that the grantor has made no previous deed to any other person, and that the premises are free from encumbrance by the grantor or any one claiming under him are implied from u e of word "grant." A married woman joining with her husband in any instruments affecting real property is bound thereby the same as though single if duly acknowledged by her. Instruments affecting real property may, if acknowledged, be recorded, and such rocord imparts notice to the world. (See Acknowledgments.) Corporations are found under the general statute, except banking, 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 cumulate votes in director elections. Articles of incorporations flied in county where principal otnce 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 sub cribed capital stock or making dividends out of capital stock are jointly and severally liable therefor; stockholder may examine books; written transfer or power of attorney to sell, and delivery of certificate passes title, between parties and against creditors; may be attached on books of corporation. Every domestic corporation having a capital stock must file report in county clerk's office, within twenty days after December 31st of each year, showing amount of capital stock, amount paid in cash, and amount paid in property, amount of existing debts, and names and addresses of directors, president, vice-president, general manager and secretary; directors neglecting to file are jointly and severally liable for debts existing during failure to fl.le, 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 bis neglect. Subject to State tax of one per cent on net income over Sl0,000. 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 busine , copy of charter and verified statement of president and secretary, showing name, capital stock, amount paid m 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 increa: ed or diminished must fl.le 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 than 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 corpol'ations and their stock is made attachable in this State. (Session 1909.) May be served, if no officer, agent or other representative 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 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 jurisdiction. City police courts of petty criminal jurisdiction. Justices of peace limited to $300, petty criminal cases; cannot try title to land, nor questions of constitutionality. Appeals lie from justice to district and from district to supreme court. Supreme court appellate court of last resort, except has original jurisdiction in applications for habeas corpus and similar writs.  Days ot..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 establish a material fact and hi'l presence cannot be procured at the trial.  ~=r!~~~o~:lri~ uri~!~f ~~~;~~fJe~i ~fhi~fh~~:3~t'!~~n judge may issue commission upon five days' notice, if parties do not If out of United States, may be directed to a minister, ambassador, consuJ. agree upon person, to any judge, or justice or commissioner.  vice-consul or consular agent of the United States in such country, or to such person as may be agreed upon. Examination of nonresidents unles,;; otherwise agreed, must be by written interrogatories. Descent. Intestates' real and personal property, subject to payment 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 decea-;;ed 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 descendants, equally if of same degree, if not, per stirpes; if issue and no husband or wife, whose estate to issue if such issue consists of more than one child living and lawful issue of deceased child or children, then 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 if either be dead, the whole half goes to the survivor. If no father or mother one-half in equal shares to brothers and sisters or their children per stirpes. If no issue nor husband or wife, entire estate to father and mother equally, or to survivor. If no is.'lue father, mother, husband, no wife, in equal shares to brothers and sisters and to children of any deceased brother or sister per stirpes. If surviving husband or wife. and neither issue father, mother, brother. nor sister, entire estate to husband or wife; if none of above mentioned, to next of kin in equal degree, claiming through nearest ancestor; if leaves more than one child, or one and the issue of one or more deceased children, and any such child die unmarried under age, his share goes to children of same parent or their issue per stirpes. If no husband, wife or kindred, the property escheats to State. Illeg!Umate child is heir of person who acknowledges himself, in writing before a competent witness, to be its father and is an heir of his mother; if parents intermarry, is legitimatized. Dower. Curtesy abolished. Wife endowed of third of lands owned by husband during marriage. Equitable estates and contracts included. No dower in lands mortgaged for purchase price as against mortgagee, not in lands conveyed to him by way of mortgage unless be acquire absolute title during lifetime, Devise or bequest bars widow's dower unless otherwise expressed in will, but she may elect between devise or bequest and dower, within one year In writing. If husband die leaving no children nor descendants of children, widow may have, absolutely, one-half of all his estate after payment of debts, if she elect within two months after payment of debts. A woman may be barred of dower by jointure with her assent before marriage, consisting of freehold in lands of life, at least, beginning at death of husband. Dower is not affected by wife's deed. • Execution unless stayed by order of court, may issue at once upon rendition of judgment; becomes lien on personalty, upon seizure by officer holding writ. All property sold to highest bidder. Defendant or creditor may redeem from sale of real estate within year, or sixty days after previous redemption. Exemptions. To bead 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 good'! and certain domestic animals and provisions for three months; forty-five days earnings exempt where necessary for support of family. except one-half such earnings may be taken for debts for necessaries. Generally, tools and implements of trade, libraries, etc., of professional men who are heads of families, are exempt. Fraud. It is criminal fraud to attempt to obtain insurance money 1 1 fr:~d~ie;f~ejJ~Yf?;JYito~°ic i~~iifi~!t~ p?!d~;'!,~~ 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 fal. ely represent one's self as competent to sell or mortgage real e tate when signature of husband or wife is necessary; to get money or property by false repre entatlons 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 binder 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 instrument procured by fraud or circumvention to be executed is void even in hands of innocent holder. Frauds, Statute of. Agreement of executor or administrator to answer for obligation of decedent out of bis own estate; agreement not to be performed in one year; promi e to answer for obligation of another, unless it i 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, unlei-s part of price paid or part of ~oods accepted, except at auction sale when auct.ioneer enter sale in ale book; lease for over one year; for sale of · realty, or authorizin~ broker or agent to ell 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  ~~~f!~lr;  1~f. !,  0  ~1f~s  ~iirr~tmet~Yd~Yf;c:; S!frat~1t~~/~~iti;do:~~tierac~~i~ demands, is void against all creditors of the debtor and t~eir representatives or successors in interest, and against any person upon whom the estate of the debtor devolves in trust for the benefit of others than debtor. All declarations of trust in land shall be in writing, except resulting trusts or trusts created by implication or operation of law. Hu band and u,ife. Husband must support wife if able; if not, she must assist; husband ha no curtesy; wife has dower; neither can be excluded from others dwelling; may contract with each other. or any other person·, the same a.'! though unmarried; cannot alter legal relation by conLract. 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 coru ent. Ber deed must be acknowledged. Filing inventory of her personal property exempts same from claims against husband, except for necessaries for herself and her children. 1Vife mu t support husband out of her property if he is infirm. Wife ipay dispo ·e of her property by will, except that such will must not, without his written consent, deprive husband ot over two-thirds of her real estate or two-thirds of her personal property; wife may make contract, etc., the same as though smgle. If husba.na neglect to support his wife, bills for necessaries sold her can be collected support stipufrom him, but not when separated by consent, unl lated in such agreement. Interest. Eight per cent on judgments and damages. In other cases 8 per cent in absence of agreement. lVIay contract for not more than 10 per cent per annum. .Judginent of courts of record (including federal courts of county) if transcript of such judgment if flied in district court are lien on realty in county for six years; realty in another county becomes subject to lien upon ftling of transcript of judgment In such county. Abstract of justice court judgment becomes lien on realty in anY county where flied in dlstrict court.  BANKING AND COMMERCIAL LAWS-NEBRASKA Liens. Laborers and materialmen have lien, for labor or material, on property. Must file in county 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 such 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 bas lien  i~o  fi~~~h~\J~ ~~~eofa~~l~~: ~~gh~~P~rftidui~rii~~min ~uts~ 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 ot any court of record, action to redeem from mortgage when mortgagee is in possession, ten years; actions for recovery of real estate or mesne profits thereof, ten years, but in such cases statute does not run against  Pne::~~. ~~Yi:;rls~~!~~nt~~tu?;!r ~;:;;~1~r fe:SCiit~~ i\}e~ ~lii°~ug~ 0  0  ~i~~ga  ~i~~ri~~!rs~ei1e~~tabt~i l~~i.t~~cJce!fe~ug; d~~tfo";~i~ill~nor 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 of promise, three years, upon statutory liability for waste or trespass, detainer of or injury to chattels, for relief on ground of fraud or mistake, or for libel, slander, assault, battery, false imprisonment or seduction against a railroad for killing or injuring live stock two years. Against a sheriff or other officer for escape of civil pri oner; 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. mont,h s. All cases not specifically mentioned, five days. Statute does not run during ab:;;ence 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 for eight years after maturity of debt, and may be renewed IJY affidavit for eight years more. As to any mortgage now existing as to which eight years or more elapsed same may be renewed for eight years by filing affidavit in six months from February 17, 1913. Chattel mortgage must be duly acknowledged and be accompanied by affidavit of mortgagee that same is made in good faith and not to hinderA delay. or defraud creditors; not valid except between parties untu nled in county where property is situated. Lien good until maturity of debt not exceeding two years and sixty days. May be renewed 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 time; 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 fL~ed or current rate, intere t 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 payee ; 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 pre ented on next business day, but if payable on demand holder may present same before noon on Saturday. Fraud and ciri~h~~~~ in procuring execution of instrument is a defense against  y  Presentment. It is not necessary to charge one primarily liable if payable at special place; ability and willingness to I?aY it there at maturity is equivalent to a tender, if not on d~m!),nd it must be I?resented on day it falls due. if on demand then w1thm a reasonable .tm?,e after its issue, except a bill of exchange must be presented withm . reasonable time after its la t negotiation. Alterations. Fraudulent or material, do not afl'ect origmal instrument in hands of innocent holder in due course. 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 be takes qualified acceptance drawer and endorsers are discharged, unless they consent there~o. Protest !of foreign bills may be made by notary pubhc 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 be accepts. Promissory Note. Must be unconditional promise in writing to Pay on demand or at fixed or determinable time a um certain in money to order or bearer, and where drawn .to _maker's own order is not complete until endor ed by him; may be mm tallments. A Check is a bill of exchange on a bank payable on demand; must be presented within reasonable time after i ue and if dishonored notice must be given or drawer is discharged to the extent of loss caused by delay· doos not operate to assign any part of ~rawer's funds in bank and bank is not liable unles it accepts or cert1fle. . If holder has check certified the drawer and endorsers are di cbar~eq.. The present negotiable instrument law of Montana .c?nSL',tmg of 198 sections went into force March 7, 1903. Its provl' ions do not apply to instruments made prior thereto. The act . so materia~ly changes the law in this State as to suggest the propriety of special examination in any doubtful case. This law is nearly lf not quite identical with that now in force in New York, Illinois, and other states. Replevln. The plaintiff in an action to rec;over P.O ~ssion of personal property may replevy the same at the trme of 1ssumg summons or at any time before answer, upon making affidavit showing that the Plaintiff is the owner of the property or entitled to po ·es. ion 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 bas 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 propert,y. If such undertaking is not given Within five days from the replevY the property must be turned over to the plaintiff.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1911  Taxes. All kinds of property, except public property and property for beneficent purposes, are subject to tax for public purposes only. Such taxes a.re a lien upon the property, which lien 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 tbe last Monday of each year, and in not less than twenty-one and not more than twenty-eight days after the first publication sale or the real estate is made, subject to redemption within thirty-six months from date of sale. The purchase money draws interest at 1 per cent  1!t\~ ~Jhif 1t~ t~A;~~ix ~~:t~g~r:~i ~;~1ti?1r~ ~at;;; ~e~ notice to the owner or occupant of the property. Taxes are assessed 0  0  to the party in whose name the property stands of record on the first Monday in March of each year. An inheritance tax of S5 tor every ~ggrtt~ihs~~J'rori;~rt~U:~~eby~~~ ~!1~~eai3t:i~li~ pay a tax of $1 for $100 worth of property inherited. ~states 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.J Wills. Every person over eighteen years of age and of sound mind may dispose of all his estate, real and personal, by will. All wills, except nuncupative, must be in writing. And all wills, except nuncupative and holographic, must be executed and attested as follows: 1. Must be subscribed by the testator himself, or some 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 authority. 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. 'l'he estate bequeathed by a nuncupative will must not exceed Sl,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 probated in this State.  ~fi~~:n  SYNOPSIS OF  THE LAWS OF NEBRASKA RELATING TO  BANKING AND COMMERCIAL USAGES Revised by MONTGOMERY, HALL & YOUNG,._f~torneys at La.w, Oma.ha. (See Card in Attorneys' LlSli,) Acknowledgments. (See Deeds, Notary Public) may be made in this State before a notary, judge or clerk of any court justice of the peace,. county clerk or deputy, register of deeds or deputy, deputy cle~k of d1stric1, or county court in name of his principal, secretary of ~tate, under seal, if the officer have one. If acknowledgment taken m any other state or territory, it must be in accordance with the laws of this State or of the state or territory where taken ;,.nd must be before some court of record or clerk or officer holding' seal thereof or a commissioner of deeds appointed by the governor of this State for that purpose, or notary public, or justice of peace, if before justice of the peace, acknowledgment must be accompanied by certificate of his official character under hand of clerk ot some court of record to which the seal of such court shall be affixed. If the officer have no f!eal, then the acknowledgment must have attached thereto a certificate of t~e clerk of a court of record, or other proper certifying officer of the district or state where ta.ken under the seal of hls office showing that the person taking the acknowledgment was a.t the dat~ thereof, such officer as he is therein represented to be that he .1s well acq~ain~ed with the handwriting of such officer; that he behaves the said signature of the officer to be genuine and that the deed er other instrument is acknowledged in accordance with the laws of such state, dis,trict, or territory. If acknowledgment taken In a fore~gn country, it ip.ay be acknowledged before any notary public, mimster plenipotentiary, extra.ordinary or resident charge d'affa.ires commissioner, commercial agent or consul of the United States.  In   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1912  BANKING AND COMMERCIAL LAWS-NEBRASKA  executini;i; acknowledgment, notaries public must write in the date WhE!n their commissilln expires or el ·e said date must be imprinted on their seals. Acknowledgment . attestations, and alfida,·it before irifiiit~:i;r;t!~. foreign places are valid of officer authorized by  showing the a~ount loaned upon bonds and mortgages, amount loaned upon notes. bills of exchange, overdraft:. and other securities, with the actual market value thereof, tne amount of rediscounts and of commercial paper pa.st due, the amount invested in real estate. at 0 cost. th~ am~unt or. c~ h on hand and on deposit in hanks or trust compames, with their names and the amount deposited in Pacli, and A«?t~ons. Must be brought by real party in interest, except as to the amount of all other as.·ets, to....ether with uch other information admm1strator, trustee, etc. However, assignees of rhoses in artion as the h_ankin~ board may 1·equire. A summary of such report must assigned for purpose of collection may sue on any claim assigned in he pul ~1shed m some local newspaper and proof of such publication writin~; but such assignees mtL<;t give ecurity foi· costs. :!'Ton-resident transmitted to the department of trade and commence and such plaintiff must give security for costs. department, may calJ for special report· at an time. Failure to Adn1ini. tration ot Estates. (See De<'edents.) County courts make reports entails a penalty ~f 50 for each day's delinquency and have exclusive jurisdiction over estate . Administration is granted those makmg false s1aterncnts m such reports or in the books of the to widow or next of kin, or both, or some one selected b:v them. but if bank may be punished as felons. It is likewise a felony for a bank unsuitable, or if they fail for thirty days after death of a party to apply to receive moneys or permit. same to he receh·ed on deposit when the for letters, same may be i. sued to a creditor. or to some one selected hank is in<;olvent; . to loan t!) an ofJicer or employe of the corporation; by the jud~e. Executors and administrators must give bond. as or to loan to a director without the approval of a majority of the required by the court. and must, within three months after appointdirectors; to carry a~ a.":o:;e_ts any note or obligation of tho partnership, ment,, make report of all property belonging to deceased. General member thereof, or rnd1v1dual where sucb partnership or individual letters of administration are only is ·ued after due notice to parties clo a banking bu. iness; to permit shareholders. where tbe bank is a int_erested. and if ca. e is urgent a special administrator may be apcorpor~tion, to t?ecome indebted in a um exceeding 50 per cent of pomted who shall make report within two weeks. Personalty is disthe paid-up capital of such hank. Every stockholder i. · liable for 0 debt acc1·uing during his owner,:;hip of stock. for an amount equal g.~:~hci1:il!&i~r~r;;ur~~t e~!~ ~?~e~!~~i to the paid-up value of the shares held. and all shares of stock are are a lien upon all real estate. If no administration. within two years a-:sessed in. the place where the bank is locat eel, whether the owners any heir of deceased or any person having acquired real estate from thereof reside there or not. and ta:es are a lien upon the stock. A deceased or heirs may obtain from county court determination of guaranty fund is provided by a 'Cssments on all state banks based ~t~gfa~:~:ased degree of kinship and right of descent of real property upon the average daily deposits. Ulaims of depositors and of holders of ~xchange have priority over all other claims. except taxes. and, i;ubJect to taxes, are flrst,.lien on all assets of bank when hank closed. Affidavits. (See Depositions.) Affidavits may be made before Bank other than savings hank shall not permit loans and investments anyone authorized to take depo itions. and must be sub cribed in exclusiYe of reserve and banking house and fixture. to exceed fifteen presence of tbe oflker and sworn to before him, and this fact must be times amount of capital and surplus. All state banks in cities or stated in the affidavit. If made out. of State and the officer has no seal, over 25,000 must keep a reserve of 20 per cent, and t ,vo-flfths of the affidavit must have attached thereto a certificate of clerk of a court 20 per cent shall be ca.:·h in vaults. but tW(1-flfth.· of :aid two-fifth<; reciting authority of such officer. of 20 per cent may be in Liberty or other CT. ,·. war bonds. JledisAlien!!. on-resident aliens and foreign corporations may not own count and bills payable must not exceed paid-up capital and surplus or hold real estate in ebraska, but the widows and heirs of such aliens except for payment of depo. ·itor . 'tate banks and trust companies who held lands prior to March 15, 1 i.9. have ten years to dispose of may become members of federal re ·erve bank. It is unlawful to bid their lntere.·ts, and those who acquired their ownership prior to that or solicit for purchase of hank . tock above par until banking corpodate may dispose of same during their life. If not so dispo ed of. the ration organized and actually engaged in banking bu ·iness. Every lands escheat to the tate. However. non-resident aliens may acquire bani, must have reserve of 1f> per cent. One-third of the 1.5 per cent a lien upon real estate, and, pursuant or subsequent to such, may purmust be in cash in vaults of bank. chase such real estate. but. ball di,;po e of same \\ithin ten years from Bills of Exchange. C ee ~ otes and Bills of Exchange.) :~~~h°Jn!~q~~~nte1~!t~·ph Tt~tf~~~~si~~: ars~!!tetowft~l~oa{ii'e Blue Sky Law. Prohibits ale of most corporate securities except corporate limits of cities and towns. Only persons possessed of full upon permit by ~Hate Bureau of Securities. Detailed i;worn statecitizenship are eligible to vote or to b.old public office or official position. ments requir!Jd. Permit fee 10, if c..a.pital does not exceed 25,000, Arbitration. Instead of submitting a controversy to a court, otherwise ...,2.>; for each agent, one permit one dollar per year. 'tate parties may a~'Tee in writing to arbitrators, whoso decision, after confirtrade commi ion investigates and give· information but does not mation by the court, shall stand as a verdict. Judgment may then recommend ecurities. Commission must not excoed 15 per cent of be entered and execution issued. par value. organization and promotion not more than 2½ per cent. Preferred stock must have equal voting power with common ·tock. Arre ts. Arrest and imprisonment in civil actions for debt are abolished. Bulk Sales. (. ee ales.) Chattel :\rortgag . . Every chattel mortgage. if not accompanied Assi~n1entR. (See Exemptions, Acknowledgments.) Every by an immediate delivery of the good and be follow d by an actual assignment for benefit of creditors shall be made to the sherill of tbe and continued change of posse'sion thereof, i ab. olutely void as county, and . ball include all property of the a.:·signor, except suclt as again:t creditors of the. mortirar.t<?r and as against sub. equent purmay be exempt. Assignments shall be executed and acknowledged cha..;;ers and moi:tgall;ees rn good fa.1th unles: ·uch mortgage, or a copy the same as a deed to real estate. and within twenty-four hour· after thereof, be filed m the county clerks office wbere the mortgairor rel ides its execution shall be flied for record in tho county clerk's office, and and if he be a non-resident, then in the clerk's olllcc of the county if real estate is mentioned therein, it shall also bo recorded in tho where the mortgaged property he situated. . uch chattel mortga1£e register of deed's office. and within thirty days it shall be recorded in need no.t be acknowledger! nnle;·s it convey household good8 used in any otber county where property conveyed be situated. A creditor the family by the hushanrl an<l \\ife. or either, in which ca ·e it must be may file and pro,·e a claim and concurrent therewith, may pursue a signed and acknowledii,ed by both husband and wif . the same a.<; real separate remedy against the assignors for the collection of such claim. estate conveyances. Verbal mortgaires are good b >tween the parties. Conveyances, preferences, payments, pled!J;es or transfers of property It. is a felony ~o transfer or dispose of per:onal property mortgaged made by an insolvent debtor in contemplation of ucb insolvency, without procurrng the w ntten .:c;.;.~,mt of the mortgagee, or to remove within thirty days prior to making an a. signment. are void, except same out of tho county with intent t.o defraud the mortgagpe of his that the assignor may pay or secure clerks' or ervants' wages, not security. .:\'Iortgagor required to giye accounting for mortgaged propexceeding 100 to any one person, and may pay or secure any debt erty from time to time on demand of mortgagee, and to gi\'C mortcreated wit bin nine months prior to that, time and may secure any gal?ee notice in writinrr within 10 day after lo · or death of mortgaged debt contrarted simultaneously witb the p:iving of such security. articles or animals. Assignments of wages of head of family void unle s executed and acknowledged by husband and wife. laims. ( ee Account . Administration of Estates.) Attachments. The plaintiff at or after the commencement of an Comn1ercial Traveler . ( 'ee Liceu. es.) action may have an atLachment again ·t the defendant's property, Conditional Sale . ,-ale or lease of personalty may be made when the amount is due. by filing an affidavit showing any of the and title thereto retained in the vendor until the purchase price be following grounds: 1. That the defendant is a foreign corporation fully paid, or condition complied with, by havin the contract of' ale or non-resident of the State. 2. Has absconded with intent to or lease in writing signed by the vendee or le ·se . and then filing copy defraud creditors. 3. Has left the county of bis residence to avoid of same in the county clerk's office, with affidavit of vendor, h!.s agent the service of summons. 4. o conceals him elf that a summons or attorney attached thereto. giving names and full and true intere t cannot be served upon him. 5. ls about to remove bis property, of parties and description of the property. 'uch .sale or lea.·e .shall be or a part thereof. out of the juri, diction of the court with the intent invalid at expiration of five year· as against purcha ·ers in good faith, . to defraud his creditors. 6. Is about to convert hi<; property, or or judgment or a.tta.ching creditors. uni : the vendor or le or hall, part thereof into money for the purpo ·e of placing it beyond the within thirty days prior to the e.·piration of the five years. repeat the reach of his creditors. 7. Ilas proi erty or rights in action which he filing, which must be mad annually thereafter. Th '>8 sale· arc valid conceal . 8. Has assigned, removed, or disp .·ed of. or is about to as bet.ween the parties and a., agaia ·t judgment or at ching creditors di pose of his property, or a part thereof, with intent to defraud hi and subsequent purcha:er. and mortgagees with notice. creditors. 9. Fraudulently contracted the deht or, incurredtbe obligation for which suit is brought. The affidavit must further Consit01ment8. It is a felony on the part of a factor or agent to show the nature of plaintiff's claim. that it i · just and the amount whom goods have been con-igned to ·ell or ~ sign ·uch goods with which affiant believes plaintifr ought to recover. ~ ·o undertaking is reintent to defraud the O\rner. I: al o a felony for the owner of goods, quired where tbe defendant is a foreign corporation, or is a non-resiafter rereiving an advancl~ment upon the hipment, to <:ell or transfer dent of the State hut in such cases no attachment can be had for claim uch ~ood contrary to the agreement between him and the con ·ignee. other than debt or demand arising upon contract. judgment or decree, ContractR. Ev ry contract for the purchru·e or. ale of real estate or unless plaintill has heen bonaflde re:-ideut of state for sbc: months any interest therein, except, a lease for a period not exce ding one year preceding filling of petition. In all other cases plaintiff must give an from the makinl!: t!Jernof, must 1,e in '"Titlng and sub ibed by the undertaking in double the amount, of his claim. If property cannot be party to he charged. J~very ar.n·cement by its term.· uot to he perseized by the officer it may be reached by garni. hment proces-. To formed within oiie year from the making thereof, every p cial promise obtain attachment in an action not founded on contract, original to an ,rer for the debt, default or misdoin,zs of another, every agreepetition must be presented to judge of supreme, district or county ment. promise, undertaking made upon con.~ideration of marriage, court who shall make an allowance thereon of tne amount in value exrept mutual promise to marry, and every . pec:ial promi. e of an of the property that may he attached, and the amount of bond, if executor or adminlstr tor to an wcr damage out of bl. own e, tate, any, to be given by pin.inti.er. and every contract for th . ale of i:tood and thine: In action for Banking. Only ~ ~ational banks and state banks which are Inthe pr!C'e of 50. or more, ·ball be void uule. · not or memorandum corporated under the laws of , ·ebraska. can transact banking busibe ma.de in writing hy the party to be charged thereby. If, however. ne · here. Department of Trade and 'ommer<"e has general ._uperwhen rontrar.t for ale of 'OOd and chattels of the valu of ;:;o or vision and control of all state banks. Every state bank must obtain more is made. and a part of the purcha ·e price thereof i. paid, or a. charter from this de1iartment. Department appoints examiners ,vho part of the goods and chattel: are deliYercd. to the buyer, no memoraninvestigate a!Iairs of each bank. After eacu examination bank must dum I. necessary. (Sec , ta.tute of Fraud.) pay to state treasurer f'ee or 15 or more, according to capital. Savonve:yance . (. ee Deed .• lortgage ·. Conditional ales.) ings banks must have at least 15,000 capital; if in city of 50,000 orporation.. (. ce Foreign Corporation.. Illue. k)· Law.) Any to 100,000, $35,000; 100.000 or more. $75,000. Other hanks must have number of per ·ons may a.:·:oC'iate and incorporat for the tran action capital as follow:: :Minimum, ~I0.000; in town of 100 to 500, 15,000; of any lawful bu:-:ine: ·. luclulling the construction or canal·. railways, 500 to 1,000, 20.000: 1,000 to 2,000, 2fi,OOO: 2,000 to 5,000, 35,000; bridges, and other work· of int rnal imprm rncnt . !<.very corpo5,000 to 25,000. $.50,000; 25,000 to 100,000, Sl00.000; 100,000 or more, $200,000. Surh capital shall be in money, credits, national, state. 1 ration, as such, ha:· power: 1. To have ucre Ion by It corporate name. 2. To sue and be ·uecl, to romplain and defend in court of cquitY county or municipal bonds. bank furniture, and the bank building and and law. 3. To make and u. ea common al and alter the ame a pleai ground on which situated, which ground shall be unincumbered, but in ure. 4. To bold persoual e:-tMe and all uch real e tate a.s may be necesno case shall the bank building and ground. together with furniture and sary for the legitimate lm,:,in · of the corporation. .5. To ren,Jer all fixtures. exceed in value one-third or the furniture and fixtures alone interest of tbe . tockholder · transferable. G. To appoint U<'h sub10 per cent of tbe national, state, county and municipal bonds one-half ordinate officers and agents a tbe bu. lue of the orporation .. hall of the paid-up capital. Before commenr:ing hu<;ine:s the bank hal require, and allow t,bem a suitahl cornpcn ·atlon th r for. 7. To make a detailed statement of the propos d business to the Department ma.ke by-laws no incon·lstent with any e.·i. ting law, for the manageof Trade and Commerce which, after approval. shall issue a charter. ment of its afl'ai.J. . Every corporation previou.s to the commencement Every bank must make at least quarterly detailed reports under oath,  -g_ws -  fl~!~~e l~td~~ ~t;r;i~~d  if  ii ~i:1  BANKING AND COMMERCIAL LAWS-NEBRASKA of any busine,-s, except its own organization, when the same is not formed by legislative enactmoot, mu. t adopt articles of incorporation and have them filed in the office of the secretary of state~ and domestic corporations must also file with the county clerk in the county where their headquarters are located. Banking corporations, insurance companies, holding Companie.·, and building and loan ru sociations must also file with Department of Trade and Commerce. The articles of incorporation must fix the highest amount of indebtedness of liability to which the corporation shall, at any one time, be subject, which must in no case exceed two-thirds of the capital stock. (Exceptions made for insurance companies, deposits in banlvl, loan and tru.·t companies.) l\Iu ' t incorporate within one year after organization, or power ceases. otice must be published in some newspaper near the principal place of bm,ine. ·s, for four week . Such notice shall contain: 1. The name of the corporation. 2. The principal place of transacting its husines. . a. General nature of tho business to be transacted. 4 . The amount of capital stock authorized, and the time and conditions on which it is to be paid in. 5. The time of commencement and termination of said corporation. 6. Hi11;hest amount of indebtedness or liability to which corporation is at any time to subject it,. elf. 7. By what officers the ail'airs of the corporation are to be conducted. The notice required mu.·t be published within four months from the time of filing such articles. Two-thirds of its members may dissolve corporation unle. s otherwi.·e 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  fi~~Jf~f~~~ ~f,-~h~off;gea~~Ja~f~~ i~~~~~~ 'n!~~ie~Je~p~~~~~ in the county or counties, or in State if none in the county, of the amount of all existing debts of the corporation, igned by the president and a majority of the diroctori-. If corporation . hall fail to do so. stockholders of corporation shall he jointly and . eYerally liable for all the debts of the corporation after exhausting its asset , and for all debts contracted before i,aid notice is given . to the amount of tho unpaid individual ubscription of any stockholder to capital. stock, and in addition thereto tho amount of capital tock owned by such individual. All corporations, whether incorporated under laws of ~ ~ebra.,ka or an~, other Rtate, must procure a state occupation permit from ecretary of state, annually. before th y may do busine ·s here. Annual fees for !>UCh permit as follows ba ed upon capital tock on home companies, or on that portion of capital stock of foreign companies which represents 'ebraska business ('apital of 1,000 to . 10,000, fee of ~S-5; 10,000 to, 20,000, 10: . 20,000 to 30,ooo. $15; :rn.ooo to 10.000. 20: -10,000 to , .">o,ooo. s2;;; ,;o.oon to . r,o,oon, . 30; $GO,OOO to 70,000, .• 35; 70,000 to 0,000, 40; 0,000 to. 90.000, t.'i: . 90,000 to 100,000, $.'iO; 100,000 to 12.5,000, oo: 125,000 to.100,000. 70: 150,000to 175,000, , 0; 175,000to 200,000. 90; $200,000 to $225,000, 100; $225,000 to $250,000, . 110; $250,000 to $27!>,000, 120; $27,,,ooo to $:100,000, 1:10; 300.000 to 825,000, HO: 325.ooo to 3r,o,ooo, rno; ar,o,ooo to uoo,ooo, IGO: 400.ooo to $450,000, . 170; $4,50,000 to 500.000. 1 O; 500,000 to sooo,ooo, $200; $600,000 to $700,000, $250; 700.000 to .. 00,000, 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; $10,000,0 0 to 15,000,000, Sl ,200; 15,000,000 to 20,000,000. 1,500; 20,000,000 to 25,000.000, 2,000; over $25,000,000, 2,;;00. These fee , taxe and penalties are first lien on all property of the corporation. I•ee for domestic corporations payable July 1st. for foreign corporatioru·. during month of July. Fifteen p r cent penalty for ao days delinquency after 3 months wilful default, attorney general on reque. t of secretary of state must bring action to forfeit charter. Foreign corporation mu t appoint resident agent on whom proce.· may be ·erved. Costs. ( ee ~curity for osts.)  ~~in  Courts. (See Actions, Appeals.) Juvenile court· are est3:hlished for treatment and cont,rol or dependent. neglect d and dohnquent children. Justice and county courts are for all practical purposes, open at all times except holidays, but, their jurisdiction t: li~it~d. ~is~rlct. courts have general juri<,cliction, and !3a--.:e exclus1\'~ Jur1sd1ct1on ID certain casei-;. The t rm of the clLc;;tr1ct court ID each county are fixed by the presiding judge at the beginning o~ ea~h year. The supreme court has original jurisdiction in a re,~· c3:--es proy1~ed by statut,e. but its work is principally confined t~ rev1ewm~_dec1 ions of the di 'trict court,. l\Iunicipal courts are pronded for c1t1os. Curte y. Aboli.-,bed 1907. ( ee Decedents.) Days of Grace. (See otes.) Dec•edents. (, ee Admini. tration or gstate:.) If a party leaves no will his propor1y de.seem.ls subje ·t _to ~is dch_ts as.follows: 1. One-fourth to the husband or wife if surnvor I;', n~t. the J?aren_t of the children. 2. One-third to the hui-;band or w1f~. if_ 'Urv1vor 1s Parent of t,be children. 3. One-half to husband or w1f .• if one or !10 child living. R&lduo t,o htootl relatives. 4. If no _children or wife surviving to tho chiltlron in equal shares and lawful 1: ·u of derca.: ed cltilti by 'representation. .5. If no issue. to father and moth.er or survivor. 6. If no issue nor pa1·cnts, in equal shai·c · t? brot;!1ers and sisters and children of such deceased, hy rcJ?r . ntat10n. , . If no parents nor brothers nor ·isters, to next of km ~n equal degree, but where there are two or more collateral kindred 11~ C!1ual dep:reo, but claiming through different, ancestors. ~ho_-,o cla111111!g \~roug~ near st, ancestor are preferred to those more 1omote. _J ro\l. !Of!. 1s also made for sur\'iving children dying under age unmarrwd. la1m · against state must b pr<'sent •d within time flxe~ by probate cour_t. or which notice is given l)y advertisement, and 1s 1~0~ le:s. tha_n six months nor more than t,wo years after letters of adm1111strat10n 1s ·ue. Dow()r and curtesy aro abolished. . needs. (See Acknowlodgmouts, l\Iarried Women.) • Iu~~ ~e signed in presence of one wit.ne ·s and ackno11 lecl2;od. Grantor s se,tl not required. Deed <'on, oys all inter st of the grantor, unleS! a. contary intention is cxpr ssed. Dect!s and com·eyanc s must correctly state actual consideration, whore 1t exceed. 100. • Deposition. may be taken at any time af~er service of sumr.no°:s, and mav be tised as e i<iencc only when the \ 1tnc ·s does not reside ID the ·oui1 ty of trial or i: absent therefrom, or is _unat~lc to atten~ col!rt, or is dead or when writ,tcn t st,imony is required Ill. tead of 1t bemg oral; may 'bo taken before ,·arious offleors, but, ar. u. ·ually tak n before a.notary public. Tho_otl!cer mul'it ~ot be a relauv or th~ attorney <if either party or otherwise mterosted m thee, nt of the act10n, ~nd this fa.ct should he stated in his certific-a.te attached Lo th cl poslt1ou. If taken out of tl;e state, anti tho olflcer has no. ea.I, a certificate under the great seal of the St,1lo, or of a clerk of court of reeord und r s~a.l should be appended, stating tha_t the olllcer was, at tho t1n1e of takmg the deposition, properly autbonzcd. Descent and Distribution. ( ee Decedents.) Dlstre s for Rent. No authority for it. Dower. Abolished 1907 (Soc Decedents.)  Emi,Io:rers Liability ct i!1 fore . API?lie · to emplorers ha--.1ng five or mol'O employes. Prov1des for medic l and ho:p1tal . e~--.1c s and schedule of benefits payable w kly. • Iax1mum for death, s;;,i;o; for Injuries not fatal. 4.500. and medicine.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1913  Estate . (See Decedents.) Executions. (See Judgment.s, Proceedings in Aid of Execution. Mortgages.) May issue at any time after judgment, if no stay bond be filed. and until five years thereafter. Land sold upon execution or decree of r,ourt may be redeemed by the debtor at any time before confirmation of such sale. A stay of execution is allowed by giving bond with approved sureties as follows: In district court within twenty days. on judgments not exceeding S,50, three months: $50 to $100, six months; exceeding $100, nine months. In justice and county courti-;, 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 per. onal property and household furniture enumerated in the statute, and in addition thereto bas exempt a homestead not exceeding in value $2,000, exclusive of the mortga~e thereon, consi ting of a dwelling in which the party resides and appurtenances and 100 acres of land on which ame may be situated, or, at the option of the party, two contiguous lots in any incorporated city or village. Such exempt property shall be free from all judgment liens and from sale on execut,ion, except that the homestead may be sold on foreclosure of mechanics' 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 tatute. Mechanics, miners, or other persons, whether heads or families or not, haYe their tools and instruments exempt, and a professional 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 clain1s for clerks, laborers or mechanics' wages, nor can an attorney plead exemption in a suit for money or other valuable con: ideration received by him. Only 90 per cent of wages are exempt as against a debt fo1· necessaries of life. Foreign Corporations (, ee Corporations, Aliens.) 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 12. Laws of 1889; must make written r port to ecretary of ::itate annually in July in form prescribed by secretary of state and pay fee !>ame as occupation tax for dome ·tic corporations; must on or before September 15th, or each year, file a statement with attorney-general of State, sworn to, showing capital stock, its market value, how paid, names of officers, directors and agents, amount paid in dividends and rate of percentage thereof, all stock held in other corporations and value of such . tock. amount of its own st-ock held by other corporations and value thereor, a1 l amount of trust stock held by other corporations. Does not apply to in ·uranco companies or common carriers. Iust appoint agent and file name wit,h secretary of state and with register of deeds in county of principal place of business. Service may be had on such agent or on state auditor, Secretary of state charges feo or $50 for keeping record of agent. Penalty 1,000 flne. Agent or representative doing business hero for corporation that has no resident agent, subject to $2,3 fine. Does not apply to insurance companies and railroads. Any corporation whose product.;5 aro sold in N"ebraska must bave a resident agent on whom serv1co m legal action can be had. Sa.le by jobbers of goods of foreign corporations not so represented is prohibited. Fraud. (See Rtatute of Frauds, Limitations, Con ignments.) 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 nnsatisfled, writ will i ·ue by filing affidavit for same. No boud required after judgment. Holiday are January 1st, February 12th, February 22d, April 22d, May.30th, July 4th, first ~fonday in eptemb r. October 12th, '.rhanksgiving, and Deceml)er 25th. o court can be open, nor can any judicial busine. · he traru acted on a holiday or Sunday, except first, to give instructions to a jury then deliberating on their verdict; second, to receive a verdict or discharge a jury; third, to act as magi ·trate in a criminal proceeding; fo1rrth, to grant or refuse a temporary injunction or restraining order. If any such fall on Sunday, the next day shall be a holiday. Homestead. (See Exemptions.) Husband and Wife. (See Decedent. , Divorce, Evidence, Exemptions, Married Women, l\larriage.) Infanc:r. ::\!ales 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 district court. In olvents. ( ee Assignments.) Interest. Legal rate is 7 per cent and contract rate 10 per cent. Judgments draw sam rate as specifl d in tho instrument on which judgment obtain d, ot!J.erwise 7 per cent. A contract is not avoided by usm·y, but in action thereon all payments are deducted from the principa.l and plaintilf recovers only the balance, without interest and pay · all costs. Judgments. (. ee Actions, 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 confession and those rendered at tho same term at which action commenced are liens from date of rendition. Judgments of county and justice courts become liens from elate of filing transcript in the office of the clerk of the district court. Judgments may he made a lion upon lands in other counties by filing transcript· in the ofllce of the clork of the district court, in such counties. judgment becomos dormant in five years and lien upon real e-tate is lost if cxe ution not issued within that time. Aft r dorman<"y may be revived by certain proceedings. Dormant judgments cannot be re,ived unless action to revive be commenced within ten year. . In judgment · by confession cause of action must be stated in the judgm nt or in a WTiting filed a! a pleading. Deficiency judgment. may bo recov red in mort,gage foreclosure cases, if the deftcienry be l-uch thiit it may be recovered at law. Juri diction. ( ee Actions, Judgment·.) Ju~tic •s of the Peace. ( ee ourts, Judgments, Actions.) License. (Seo Insurance, Agents) Commercial travelers are not required to tak out a liceni-;e. '!'her is a provision in the code requiring peddlers and commission merchant. to take out a license. Does not, apply to person sellino; t,heil· own works or productions or books, charts, maps or other educational matter, or frosh meats fruit, farm products, trees or plants ex lu 'ively. ' Lien . ( ee Judgments.) Material men and laborers and mechanics are entitled to liens upon the building or improvements for material furnished and labor performed, by filing in the otnce of the register of d eds an itemized statement of account duly verified by   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1914  BANKING AND COMMERCIAL LAWS-NEVADA  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 l>een 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 subcontractor 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 prorate in the proceeds of sale of propert,y. if sold under foreclosure thereof. Limitations. Actions brought to recover real property or foreclose mortgages thereon must be commenced within ten years after ca.use of action accrues. Actions for forcible entry and detention, libel, slander, assault and battery, malicious prosecution, false imprisonment, and those to enforce penalties or forfeitures, must be commenced within one year. Actions for trespass to real property, taking, detaining or injuring personal 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 specially 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, ~ i!~e~~:~~rsifn/~f~sn ~~t~~iai~~~: ~~eb~fc~~fo~0 CJie:~~t commence to run until such disability removed. 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 business: otherwise is liable as general partner. Special part.ner's name shall not appear in the  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 ystem, upon application of owner. Trust Companies are authorized to act as executors. administrators, 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  ~-~ 1;JfJ~ii~K !;gr~~e°J b; ~g~~:~gn;f~1t~~55~\ne ~ng~fs!~l~n~: 0 :a~~~ ::~:~%-t~~t s~~~ w~8hi~!.3Jto/!i~dstm1k3:~ii~c\~e 0  w~~u  shall be effectual to pass title to any property unless probated. Foreign wills duly proved and allowed m 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.)  firm.  Married Women. (See Decedent , Evidence, Exemptions, Marriage.) 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 busine s as if unmarried, and earnings of any married woman are her sole and separate property. Mortgages. (See Actions, Acknowledgments, Courts, Dower, Limitations, Chattel Mortgages.) 1ortgagor, regardless of stipulation contained in mortgage and in the absence of special agreement, which must be in a. separate writing, retain legal title and right of poss~on of propert.y. In case of assignment of mortgage it ls safer to record the assignment. If note secured by mortgage is negotiable assignment need not be recorded. Release may be by separate instrument or upon the mortgage records in register of deeds office, and if mortgagee, after mortgage fully paid, neglects or refuses for seven days to discharge such mortgage, he ls liable to a penalty of $100 and all actual damages uffered by the other party. Mortgages can only be foreclosed by suit, and after foreclosure suit commenced no action can be maintained at law upon the debt, unle authorized by the court and ff action be first commenced at law, cannot foreclose the mortgage until judgment obtained and execution returned thereon unsatisfied. After decree of foreclo ure 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 ooriod allowed fn other states, and owner may redeem at any time before confirmation of sale. Deeds are held to be mart.gages when intended only as security, and must be foreclosed same as mortgages. Mortgage must state actual consideration where it exceeds SlOO. Negotiable Instruments. (See Notes.) Notary Public. General commission may be issued by governor, authorizing notary to act in any county of state in which he flies cert.ifled copy of his commission and bond with county clerk. Notes and Bllls. All notes, bonds, or bills of exchange, except bank checks and instruments payable on demand, are payable at times fixed therein, without grace: are not negotiable unle. s drawn payable to a person, bearer, order, or as igns. If date of maturity fall on Saturday or Sunday, or a holiday, are payable on tbe next business day. Party purchasing negotiable paper before maturity, without notice. take same free from equities between original parties. Uniform negotiable instrument law is in force. Partnership. (See Limited Partnership.. ) Must adopt and sii:m articleH of partnership agreement showing firm name. nature and place of busine , name and residence of each member. and file same in the office of the county clerk of the county where business i located. Neglect or refusal to comply with this requirement entails penalty, but do88 not affect legality of business transacted. Partnership may sue and be sued in the firm name, and it is not necessary to set forth tn the pleading, or prove at the trial, the name of the per ons composing thti drm, 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.  or~:iaJ~isd~~~Dcgr:ti• pi;?;i:r:r:n~lte~.ounty court has exclusive Promissory Notes. (See Note .) Proof of Claims. (See Decedents, AccountiS.) Same rules of evidence govern as in civil actions. Protest. (See Notes.) Replevin. Party may recover po ·e ·. ion 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 posi esslon. etc., of the property. It is then seized hy the officer and duly appraised, and within twenty-four hours thereafter plaintiff must give bond in double the apprai ed value, conditioned that he wlll duly prosecute tbe action ancl pay all costs and damage. tha.t may be awarded a$(a.inst him, and return the property or it.s reasonable value to the defendant in ca '8 judgment for a return be rendered. Revenue. (See Taxes.) Sales. ( ee Conditional ales.) Bulk sale of a stock of goods by merchant void without notice to creditors. Security for Co ts. Non-resident plaintiff must give ecurity for costs or furni h cash bond. Statute of Limitation . (, ee Limitations.) Stay. ( ee Exe~utions, Judgments, ~lortgage •. ) Suits. (See Actions.) Summons. (See Actions, Attachments, Divorce, Service.) Taxes. Taxes on real property are a llen thereon from October 1st of year of levy. Taxes on personal property are a lien thereon from  SYNOPSIS OF  THE LAWS OF NEV ADA RELATI  •a TO  BANKING AND COMMERCIAL USAGES Prepared and Revi ed by A TRES & GARDINER, Attorneys and Counselors at Law, Reno. ( ee 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 tate 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 tate, and within the nited States, by a judge or clerk of a tate, United tate ·. or territory court having a eal. a commi.·s!oner of de ds for this ,_ tate. or ·ome notary public or justice of the peace in his county. A justice's certificate which is attached to a <iced to be recorded out of his county must have a certificate or a clerk or a court of record of hi· county' as to his signature and official character. If outside of the United .' tat s the acknowledgment can be had before a judge or C'lerk of a court having a s!:lal. or a notary pul l~c or a minister. commi:sioner. or corm el of tbe Umted tates, the certificate of the officer taking the acknmvledgment shall be annexed to or endorsed on the in trument and shall be under band and seal except in ca.·es of ju. tice: of the peace which shall be under the hand of . uch ju ·tice of the peare and certified as above stated. The party executing and acknowledging the instrument must be known or proved by oath of witne · to be the proper party, and the certificate must st.ate ·uch fact. onveyance by a married woman is acknowledirnd in the ·ame way and form as that. of a man and hru the ·ame e!l'ect as if she were unmarried. The form of acknowledgment by an individual hall be substantially as follow. : tate of .. Tevada, County of . . . . . . . . . . . . On this ...... day of ............. A. D. . ................. personally appeared before me. a. notary puolic (or judge or other officer as the cru e may be) in and for the County of . . . . . . . . . . . . , t.ate of .............. • .......... known (or proved)_ to _me to be the person de. crihed in and who executed the foreii;omg mstrument, who acknowll'd!!;ed to me that he (or . be) e.·ecuted the same freely and voluntarily and for the use. and purpo e therein mentioned. · In witne. ,' whereof I have hereunto set my hand a.nd affixed my oillcial seal the day and year in thi. certificate flm above written. . ............... ~ ·otary Public ln and for the ounty of ....... . State of .............. (or other otncial name or the oillcer who takes the acknowledgment). Form of acknowledgment of a corporation. tate of evada. ounty or ............ On thi ~ •••••••••• day of .. : ....... A. D ....... personally appear d before me a. notary public (or other oftlcer or Judge as the case may be) in and for the County of . . . . . . . . . . . . tate of. . . . . . . . . . (name of party ho executed a~d ackn~wledge~ instrument) known (or proved) to me to be the president (v1ce-pres1dent or ecretary) of th • corJ)oration that executed the foregoing in. trument and upon oath did depose that he is the otncer of said corporation ru above designated that he is acquainted with the seal of. aid corporation and that the . cal affixed to said instrument is the corporate eal of said corporation; that the igna-  BANKING AND COMMERCIAL LAWS-NEVADA 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 . .u. . ....... 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 executes 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 subscribed the name of i-aid .......... 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 State of evada, any acknowledgment heretofore or hereafter taken or certificate thereof 111.ade without this tate either in accordance with the laws of this St.ate or in accordance with the laws of the tate, Territory, or Country where the acknowledgment is taken, shall be sufficient in this State. Neverthele s 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 instrument in any way affecting the title to real estate or personal property,  ~f~~~ t~ 0 ih~f ~M;irtit~kf~:rti~ a:a~ivi!~~d ~d~~e t~:~if1  o1v:Jct  office, shall entitle such conveyance or instrument with the certificate or certificates of acknowledgment to be recorded in the office of the recorder of any county in this , tate provided that any , tate 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 tates to be used before any court or officer in this tate must be taken before a notary public. a commi . loner 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 tates, or judge of a court in such foreign count.ry having a seal. The genUineness of the signature of the judge, the existence of t,he court and the fact that si1ch judge is a member thereof shall be certified by the clerk of the court, under the seal thereof. Aliens. Persons and corporations, except subjects of the Chinese Empire, have the ame ri~hts a resident cit.izens and domestic corporations, except that foreign corporations must comply with corporation laws of this State. Appeals. Actions tried in justice court may be appealed to distrist 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. ProvLsion is made by law for the settlement _or disputes by arbitration the award of the arbitrators to be filed with the clerk of the district· court and docketed the same as a judgment in civil action. Arrest. A fraudulent or absconding debtor, or one who conceals bis property, or removes or dispo es of it with intent to defra1_1d his creditors, may be arre. ted on affidavit of the fact made. surety m n9t less than $500 being given by the plaintiff. ( ee Attachment.) As l~nments and In olvency. Except as aff~cted _by the national bankruptcy act of 1898, the statute respectwg a~ 1gnment is in force: Insolvent clehtors may be discharged from ~heir debts by complying with provl!·ion of insolvent laws. An 3' t!:'nme!}t of insolvent debtor not in compliance with insolvent laws. 1 · void as to creditors. ' Attachment. \Vrit of attachment may be i ·ued with s~mons, or at any time afterward on affidavit and bond. ln an action upon a judgment or upon a contract for the di:ect paymen_t, of _money. made. or by the terms thereof payable, in this tate. which 1. not 1?ecured by mortgai;e. Lien, or pledge upon real or per onal pr(?J)~rty. s1~uated or being in the State; if so secured, when :ucb security D!),S "1t~out act of plaintiff or person to whom iz;iven become valueless or m _ulfic1ent in value to secure sum due in which c-ase attachment ml!-Y issue for unsec-ured portion or excess of debt, over value of _·ec~nty._ In an action upon a contract against a defendant not rcsidmg ID this S~ate. In an action by a resident of the 'tate for the recm·ery of the , alue of property, where uch property ha,;; been conver ed by a defendant Without the consent of t,he owner. Where the defendapt ha~ abS<'Onded, or is about to abs<'oml. wit,h intent, to rl~fra.ud h1 creditors. Where the clefenJ.aut conceals himrelf o tllat erv1ce of .-ummon.· ca_n not be macle upon rum. Where a defendan~ i~ alJO~t to remove bis property, or any part tbereof, beyond the Jur1sd1et1on of t~e court With the Intent to defraud his creditors. Where a defendan~ 1s _about to convert hi. property. or any part ther _of, into 1poncy , 11,h mtent to place it beyond the reach of his creditors. ''.l_1er~ a defendan~ ha.<i assigned removed, disposed of. or ls about to dispose _or h1. J_>rop erty or a,ny part thereof with the intent to defraud h1. creditor . Wliere a clefendant has fraudulently or criminally contracted a d,ebt or incurred the obli..,ation for which suit has been commenl'ed. Garnishee process may 0 ne bad in aid of attachment. 'f'he clerk _of,,. the court, shall is. ue the writ of attachment upon r~<'einng and flhn,., an affidavit by or on behalf of the plaintiff, ·bowmg th~ nature of the plaintiff's claim. that same is just, the amount wht~h the amant belleves the plaintiff Is entitled to recover. and the ex1 ;tence <:>f any one of the grounds for an attachment a.hove emtmerated, with an Undertaking not less ban $.';00, and an amount equa,l to one-fousth of demand, but not exceeding $/l,000. In Ju ·t1ce · o!:1-rt ( ee Courts) bond must be in amount sued for but not under ,,0. Bank.. , tate-are regulated and~controlled_ h~ a comprehen~i~•e ~,eneral banking law. Amended (191;,) to pernut tate banks to JOlD Ii ederal Reserve Bank System. ConveYnnc·es The husband has the entire_ manai;ement and control of tne community property, with the hk~ ab ·olute po~ver of disposition thereof, except as hereinafter proncl d. as of n1 ....o:n separate est.ate; provided, that no deed of con~eyan:-e, or m?rt,,,a~e, of a. homestead ~ now defined by law, reiz:ardle s ~f whether a deC'lara.tion thereof has been flled or nor. sha_ll he valid for any purpose whatever unless both the husband and wife ex c-ut and acknowledge the same' as now provided by law for the conveyance of real estate. Corporations. The Jaws of.this State a:e sub tantially the ._a.me as those of ·ew Jersey. Foreign corporations ~o tran ·act bus1!30! and institute action . In this State must flle certified copy of articles of incorporation with the secretary of stat~ and county clerk; als<? designation of resident agent. There 1s no hcense tax. tockholders   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1915  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 d busine s in other states. There is no stockholders' liability and ck may be eit,ber assessable or non-asses.<;able as provided in articles . Curtesy is not recognized in this State.  an~~~~~on ~~~s1~r!%1ctio~ir~rl'ir c~~t:t ~;ean°d"i~neaciuil;~t:~~rrn 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 or interest, or the value of the property in controversy exceeds S300, and in probate in all cases relating to estate of decea.c;ed persons, and per<;ons and estate of minors, in. ane persons. Justice's jurisdiction, $300, ex:clusive of interest, and attorney's fees. Deeds. A deed of quit-claim passes all the title that the grantor has at 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 bad not conveyed it to any other per. on 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 described against any and all persons whomsoever claiming the same." The Jaw governing and form of acknowledgments is titled under "Acknowledgments." Deposition . 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 c;hall have resided six months before suit be brought for the following earn es: First: Impotency at the time of marriage continuing to the time of the divorce. Second: Adultery, since the marriage, remaining unforgiven. Third: ·wilful de ertion, at any time, of either party by the other for the period of one year. Fourth: Conviction of felony or infamous crime. Fifth: Ha.bit.ual gross drunkenne , contracted since marriage of either party. which shall incapacitate such party from contribuUng his or her share to the support of the family. Sixth: Extreme cruelty in either party. Seventh: eglect of the husband, for the period of one year, to provide the common necessaries of life, when such neglect i not the result of poverty on the part of the husband which he could not avoid by ordinary industry. Provided, that unless the cau. e of action shall have accrued within the county while plaintifI and d Cendant were actually domiciled therein, no ::ourt ·hall have jurisdiction to grant a divorce unless either the plaintiff or th defendant shall have been a resident of the state for a period of not less than six mouths next preceding the commencement of tb.e a tion. (.Tew 1\121). 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 maintain or defend any suit at law or in equity, or any other right dependent on residence, is that plare where he or she shall have been actually, physically and corporally pre. ent within the state or county, as the case may be, during a.II of the period for which residence is claimed by him or her; provided, however, should any person ahsent himself from the jurisdiction of his residenC'e with the intention in 11:ood 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. Execution . Stay of Execution; Judgments. The laws of Nevada on these points are similar to tho,;;e of California (see ante), except that when redemption is made of real estate, one per cent per month must be pa.id in addition to purchase money. When property ls redeemed from a previous redemption, which may be done within sixty days, his purchase pt·ice plus two per cent thereon is required. Exemption. Home tead, $5,000; the earnings of the dehtor, lf earned thirty days preceeding, if it is made to appear nece·sary for the support of the de tor, except where debt is for necessaries. or-his family when only one-half exempt; personal and mining property, tools, implements, etc., exempt same as in California (which see). Garnishment. (See Attachment.) Holidays. Sunday, New Year's Day, Lincoln's Birthday, Washington's Birthday, Memorial Day, Fourth of July, Labor Day, October 12th (Columbus Day) and 31st (Nevada admission day). Thanks• giving, December 25th, and all day of which a primary or a general election is held, are non-judicial days and are termed legal holidays and generally observed as such. Also Arbor day fb:ed by proclamation 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 afterward. 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. Limitations or Suits. Open or store account and contract not in writing, four years; upon contract or instrument of writing, six years; actions concernini; real property, except mining claims, five years; mining claims two years. Judgment, or decree of the di trict court, six year. ; of the justice court, five years. Revivor: Acknowledgment or new promise in writing or payment on account. Judgments become a lien upon real property for two years. J\larried lVomen. All property of the wife, owned by her before mar1·lage, and that acquired afterward by gift, bequest. devise or de. cent, her_ separate property. In Nevada, under the p;tatute of 1R73, ~he wife has ab. olute_ power over her separate property, and may d1spo e of the same without the con ent of her husband. All other property acquired dw·ing coverture by husband or wife, common property, but controlled by bu. band. Upon a di. solution of the community by the death of the husband. the homestead et apart- by the husband and wife, or either of them, goes to the wife and minor children, and if there are no minor children, to the widow. The bUBb_and may dlspo e of one-half of the common property by will, exclusive of the home.stead. The other half of the c-ommunity property goe to the wife, subject to admini tration and debts of the husband.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1916  BANKING AND COMMERCIAL LAWS-NEW HAMPSHIRE  Separate property of wife should be inventoried and recorded. Failure 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 mortgagee, or unless the mortgage be accompanied by the statutory affidavit of the mortgagor and mortgagee or some person on their behalf and is recorded in the county where the mortgagor and mortgagee reside. Notes and BIiis of Exchange. The uniform negotiable instrument law bas 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 proceedings and notices are dispensed with, except 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 children 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. Practice is under a code. and there is but one form of action known as a civil action, and commenced by filing complaint with the clerk of the court and the issuance of a summons. Service on nonresidents may be had by publication. Personal i:-ervice of a copy of summons and complaint is equivalent to the publication of the summons. Taxes are a lien upon the property assessed and the real estate of the owner thereof from the first :Monday in March in each year. Suits for delinquent taxes may be commenced by direction of the county commissioners. and there is redemption of real estate sold at tax sales in the same manner as realty sold under ordinary execution. Wills. ·wills executed out of N evada are good here if good where made. The Uniform Wills Act ha been adopted.  SYNOPSIS OF  THE LAWS OF NEW HAMPSHIRE RELATING TO  BANKING AND COMMERCIAL USAGES Revised by JOHN R. SPRING, Attorney at Law, Nashua. (See Card in Attorneys' List.) Acknowledgment of deeds or other conveyances of real estate must be made before a justice, notary public or commissioner, or in foreign countries before a minister, ambassador, envoy or charge d'affairs, or before any consular officer of the U. S.; a notary public; or any of the following officers having a seal: a commissioner or other agent of this State having power to take acknowledgments of deeds. The signature of the grantor must be attested by one witness. Certificates of acknowledgment outside U. S. must contain name of persons making the acknowledgment; date and place; statement that signers knew the contents of instrument and acknowledged same to be his; name of person taking acknowledgment, title and seal and be substantially in form prescribed by statute. Actions. The common law prevails as to procedure. Non-residents can institute suit, a resident becoming responsible for costs by indorsing the writ or giving bond. Transitory action may be brought in the county where one of the parties resides. If both are nonresidents the action may be brought in any county. Administration of Estates. Administration shall be granted in the following order of precedure: 1. To executor named. 2. To widow, husband, or any of next of kin, or their nominee. 3. To one of divisees or creditors. 4. To any other person judge may think proper. A non-resident shall not be appointed unless urgent necessity demands. An ample bond with resident sureties shall be fllad. No suit shall be brought against the administrator within the first year of his administration. Claims shall be presented within one year after his appointment, and no action can be brought after two years. Actions are not maintainable against an administrator of an estate, after a decree of 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 allowance, charge 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 admi-,sible in evidence, being ex parte, but motions are heard upon affidavits presented to the court. May be made before an officer authorized to administer oaths. (See Attachments.) Aliens. They are not entitled to vote. An alien may pw·chase, hold and convey real estate, and it will descend in the same manner as if he were a native born citizen. ·w hen the wife of an alien bas resided in the State sbr months, separate from her husband, she acquires all the rights of the wife of a native born citizen. Arrest. No female can be arre ted 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.) Assignn1ents and Insolvency. Assignments for benefit of creditors to be filed in the probate court of the county in wbich debtor resides. The provision of the law upon this subject are suspended by the United States bankruptcy 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 wbich period the execution must be levied to preserve and perfect the lien. All attachments take precedence 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 reac_h money or credits of the defendant in the hands of another. Save as against claims for necessaries the wages of the defendant up to $20 are exempt from 1mch process. In actions on contracts where debt exceeds $13. 3:{, defendant may be arrested on affidavit of plaintifl' that he (defendant) has concealed his property or is about to leave the State to avoiu payment of bis debts. (See Garnishment.)  Bank. Banks can be chartered only by a special act of the legislature. Building and loan associations may be organized as voluntary 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, fl.le their report with the secretary of state. They shall give in their report a detailed statement of all the items of expense of each institution, with the names of the treasurer 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 purpose of transacting such business as is usually transacted by banks, shall, on the first Monday of Mar..:h, June, September, and December in each year, make a statement of its condition on said day, specifying in separate columns the capital stock actually paid in; debts due the bank secured by pledge of its stock; value of real estate belonging to the banks, 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 in circulation; which statement shall be signed and sworn to by the cashier, and returned to the secretary of st ate. The trustees of savings banks shall make a thorough examination of the affairs of their respective banks once in every six months, and a report of such examination, signed b. a committee of the trustees, shall be returned to the bank commissioners, and a copy of the report published in a newspaper published in the place where such bank is established; or, if there be no newspaper in such place, then in a newspaper at the nearest vlace. Bills of Exchange. (See Notes, and Bills of Exchange.) Chattel Mortgages. (See Mortgages.) Collateral. There have been no statutory enactments on this subject. Pledges of stock is not liable as a stockholder, but the general owner is. Conveyances. Every deed. and lease for more than seven years, shall be signed, sealed, atte 'tod by one witness acknowledged before a justice of the peace, notary public, or commii:;sioner, and recorded in the registry of the county wherein the real estate is situated. Every power of attorney to convey real estate must be executed with the same formalities. Conditional conveyances must state the sum to  ~;;Jet~1;;~i~es ~;~ec~~~ly tgn~; ~~~rr~~of tt~J~!~t~~~s;l:;1~~<ij;?;i"e court. Sheriff's deeds shall give full particulars as to the action, and shall covenant that he bas observed all the requirements of law. Corporations. Voluntary corporations can be formed for any purpose excepting banking, the construction and maintenance of railroads, insurance, business of making contracts for the payments of money at a fixed date, or the bru iness of a trust company, surety or indemnity company, a safe deposit company, or a trading stamp business. Three or more per ons may associate themselves by articles of agreement, which must contain the name of the corporation, object or objects for which it is established, city or town in which its principal place of business is to be located, the amount of its authorized capital stoclc with nominal or par value, and in the case of a corporation with capital stock or any class thereof without nominal or par value the total number of shares authorized. and any other provisions not inconsistent with law for its dissolution or for limiting, defining, or regulating the powers of the corporation. its directors, stockholders, or any class of stockholders, and shall be signed by the associates with the designation of the post office address of each. Any name may be adopted not in use by any other New Hampshire corporation or foreign corporation doing business in the State. Such corporation may issue stock with or without nominal or par value, shares being not less than ten in number, which may be issued from time to time in such amount and for such consideration as may be authorized by vote. Two or more kinds or classes of stock with preferences may be provided. Stock with nominal or par value. shall be not less than $1,000 in amount, par value of the shares shall not be less than $5.00 or more than $1,000. After tho organization meeting the treasurer and a majority of the directors shall make, sign and make oath to the record of organization, which shall contain the original or a true copy of the articles of agreement, the date or dates of the organization meeting, the names and address of the officers and director·, and the original or true copy of all votes pas ed determining the amount of capital stock, the kinds and clas es of stock, and when and how to be issued. Such ,record shall contain a statement that the consideration for which stock with nominal or par value is to be issued is of actual value in money e(Jual to the par value of the stock. The record shall be submitted to the Attorney General, approved by him and filed with the secretary of state. together with the filing fee, which is 10 where the capital stock does not exceed $10,000; $25 when it does not exceed $50,000; 100 when it does not exceed $250,000; $150 when it doe' not exceed 50(1,000; $250 when it does not exceed $1,000,000; and $10 for each $100,000 above $1,000,000. The clerk of every corporation shall be and continue a resident of the State. Stock may be issued for cash, property, real or personal, rights, franchises, services or expenses, and may be issued from time to time in accordance with the provisions of the statute. C"orporations must render a return on or before :M arch 1st of each year, stating the amount of its authorized capital, the amount of stock issued, number of shares, par value thereof, amount of indebtednes. , value of all its property and a:· ·ets as of the flrst of the preceding January, and shall pay a flling fee of . 5.00. Fine of 5,000 or impri 'onment for five years, or both, for failure of trerusurer or directors ne~lecting to tile. All corporations shall annually pay to the tate a fee equal to onefourth the amount paid upon filing its original record of organization, plus on -fourth of additional payments for increases in capital stock, fee to be not less than 5.00 nor more than $100. Courts. The superior court bas original jurisdiction over all causes The supreme court decides questions of law upon bills of exception, transfel'red from the superior court, and it holds its sessions every month, except July and August. Probate court have jurisdiction over estates of deceased pe1·sons. in-;olvent e:-tates. minors. insane persons, adoptions, change of uames. trustees, and partition of real estate. District police courts and justices of the peace have concurrent jurisdiction with the superior court up to 100 (except in cities of 50,000 or more population they have civil jurfrdiction up to $500) when the title to real estate is not involved. and can render judgment upon confession up to 200. The terms of the superior court shall be held in each year at the times and places following : For the county of Rockingham. at Exeter, on tho third Tuesday or January and thef third Tuesday of April, and at Port. mouth on the third Tuesday o October. For the county of trafl'ord, at Dover, on the second 'l'uesday of February, and the third Tuesday of September. For the county of Belknap, at Laconia, on the first Tuesday of March and the first Tuesday of November. For the county of arroll, atf Ossipee, on the third Tue day of :\lay, and the ·econd Tuesday o 0  BANKING AND COMMERCIAL LAWS-NEW HAMPSHIRE  e  e f  (  ovember. For the county of . Ierrimack, at Concord, on the first Tue.<;day of April and the flrst Tue ·day of Oct,oher. f<'or the county of Hillsborough. at ~Ianchester, on the first Tue-day of January, and the first Tuesday of :\lay, and at Nashua the third 'l'ue.sday of September. For the county of Cheshire, at Keene. on the first Tuesday of April and the first Tuesday of October. For the county of Sullivan. at ewport, on the second 'I'uesday of :\fay and the . ccond Tue day of November. For the county of Coo , at Lancaster, on the third 'I'uesday of April; at Colebrook, on the fir ·t Tuesday, of 'eptember, and at Berlin, on the first Tuesday of December. For the county of Grafton, at Plymouth, on the second Tuesday of • lay and the second Tuesday of November; at Haverhill, on the third Tue day of March and the third Tuesday of September; at Lebanon, on the third Tuesday of April and the third Tuesday of October. Dayg of Grace. None except on sight drafts. Depositions. The party proposing to take depo. ition' shall give the opposite party a four days' notice, of which the following is a rorm. "To A. B. C .. of etc., or ........ att'y of record: Depositions will be taken at the office of ........ , in .......... , in the County of . . . .... , and State of .......• , on the ...... day of .......... 19 .. at ..... o'clock in the ...... noon, in which action ...... is plfl'. and ...... is cleft., to he heard and tried at the .......... Court to be holden at ........ , in the County of ......... on the ...... day of .......... , 19 ...... Dated at ........ this ........ day of .... 19 .. ...................................... , Justice of the Peace." One extra clay's notice to be given, up to twenty day . for each twenty additional miles. They are taken before a justice of the peace or a commissioner. They can only be taken by written question and answers proposed by counsel and adrnini.·tered by the ma"i ·trate. Objections are minuted on the depo ition by the magistrate, 1>.ut he docs not pass upon the validity of such bjections. Deposit10ns shall be signed by the deponent. and he shall be sworn tote ·tify to the truth, the whole truth, and nothing but the truh. They must be enclosed in an envelope and sealed up by the magi ·trate, with the f ollowing endorsement: "To the Supreme Court: Enclosed is the deposition of .......... to be u ed in the action or .......... vs ............. . Sealed up by me ........... . . Ju tice of the Peace." t They should then be mailed to the clerk of the court where they are o be used. ·o deposition can be used in a jury trial unle. s taken before the Tuesday next preceding the Tue day on which the term commenced. A copy of the notice with the affida-vit, of .ervice mu t be annexed tdo the depo it.ion. The following is a form for the caption of the eposition: "State of ............. } ss County of............ · P~r onally appeared before me, a Justice of the Peace within and for said County, the within named .............. , on the ........ day of ~i' ....... , 19 ... , at ..... o'cloc~ in the ...... no_on,_a~ the office • • ........ , .......... Street, m ............ , m said ounty, and made oat,h that tbe annexed deposition by him ·ubscribed contains the truth, the whole truth, and nothin~ but the truth relative to th cause for which it was taken. aid deposition is taken at the .tiit/~~~.e~~ .. ~~·_-_-_-_-_- ·ourtin· a,;; jjendi;~ (~~ t~st~ entered) in said Court, wherein of, etc., is plfl'. and of, etc., is deft. The taking of said deposition was begun at ......... o'clock in the ··•• .... noon of said day, and was continued until finished. The said .......... wa - (not) present aud did (not) object. Dated at said .......... this ........ day of .......... 19 ..... . ..........•....... Justice of the Peace"  in  action ·now·  Descent of Pro11crty. The real estate subject to dower or curtcsy an~ hom stead ball d scend in equal hare: as follows: 1. To the children and to the legal representatives of, uch of ~hem as are dea~. 2. If there be no issue, to the father and mother rn equ, 1 ·l:).are. , 1f both are living. and to the father or mother, if one of them 1s dead. 3. If there be no issue or father or mother, lD equal . hare· to the !Jrothers and sister. or their representatives. 4. •.ro the next of kin Ill equal shares. If a per ·on dies under age, his estate. derived by descent or devise from his father or mother, shall de cend to J.iis brothers and sisters, or their representativei-, if an:, to the cxch1i·1on of the other p,irent. < 0 representation allowed beyond the degree o~ brothers' ancl sisters' grandchildren. The personal e tate sl~all be distributed as follows: 1. To the widow, her share arcordmg to law. 2. To the same persons who would take as in the case of realty. The widow is entitled, in addition to her dower and homestead, t,o one-third or one-half of the per·onalty, as she doe or does not leave issue surviving, and she hold. the same interest i~ ~he real estate, by releasing her dower and homestead, and by wa1\'Jng .any Prov! ion in the will in her favor. In rase the real e ·tate (proVJ.ded no i. ue survives) does not exceed ;>,000 in value. th.a. surv1yor husband or wife takes the whole thereof. The same prov1s1on exists a' to distribution of t,he p rsonalty. As to any balat}C_ above 5,000, the distribution is mad according to the other pro ·1 ·10n · .of th~ la,~. a~ a!>ove set forth. A surviving husband has the sarpe rights m ~1: Wifes e ·tate that a wife would have in her husband s estate. ( ee Dower.) Dower. widow i,; entitled to dower in the real e ·tat~ of .which !J.er husband died seized. excepting in land not under cult1vat10n or in a wood lot not u:cd in connection with a ~arm. The dower ~nay he assigned by mote ... and hounds, and the , 1dow J:iru aJ?, und1vHled net third part of the rents and proflts until dower 1s a.'-. 1~ned. She rnay be endowed with so much of the real est3:te of her late ~u. band as ~vl)l produce a yearly income equal to one-tlurd <?f. tlt.e ~otal mc~nnc. . Evidence . Persons are not excluded from test1fytn"? ~ecau. e of llltere.t, except \\here the party is an excc~tt-or, adzmru. trator. or guardian of insane and the subject of the testimony o~curred durmg the life of the deceased or prior to the warct· · insanity, unle. · the e. c~utor, administrator,' or guardian of tho insane pe_rso~ ele ·t · to testify, or, when it is clcarl:r shown to the court that 111Just1ce may lJe <l9ne by the e.-clusion of the testimony o~ uch person. Husband and Wife are competent witne ·ses for or agamst ea;ch other, exrept 3:s to D_latters, which in the opinion of .th~ rourt. mu1ht leacl to the v10lation. of marital confidence. In cr1mmal proceedmgs, r' ·pondent: n~ay testify in his own bepalf, if he elects. hut not otl1ei:,~s . _'onv1ct10n of an infamous crime does not bar the party from ~1VJI1'~ enclcnre but bears upon his credibility. 'l'he ru les of common law go,·ern generally the adrni.· iliility of evidence. Executions may be taken twenty-f~mr hours _aft~r judgment, and are returnable before justi e's· and pohce courts 111 sixty days; before ._-uperior court, at the next trial term of_ court. \Vrit of p e. ·ion issued sixty days after judgment. review may be ~anted by the co.urt when inj~stice appears to have been done through ~ccident, mistake, or mi fortune. Real property taken under xecut1on may be rode med ,\ithin one y ar.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1917  Exemptions. Homestead to the vallte of ~500; neccs. ary apparel and bedding and hou.·ehold furniture to tho value of 100: bibles and school books in use in the family, library to the value of 200; one cow, one hog, and one pig, and pork of .-amo when slaughtered; tools of occupation to the value of $100; six sheep and their fleeces, one cooking stove and its furniture, provision. and fuel to the value of 50, and one sewing machine; one yoke of oxen, or a horse, when required for actual use; domestic fowls not exceeding $50; one pew. one lot in a cemetery, and hay not exceeding four tons. Fraud. Aside from criminal frauds, the superior court, in the exerci ·e of its equity functions. has jw•isdiction o, er frauds. Garnishment. Known to our law as trusteeing. Any personal action except tre.spa.,;s. defamation of character. and malicious prosecution, may be begun by tru tee process. Tru ·tees are not chargeable upon default. \Vages earned after the service of the writ, are not held hy the process. Twenty dollar· in wages are exempt as a"ainst all claims except for nece. saries. (Subject to pas age of pending legislation-1913.) Holidays. (See table, page 13.) Husband and Wife. They may make ante-nuptial agreements which can be in lieu of dower, homestead, and distributive share. (See Arrest, Aliens. Descent of Propert,y, Dower, Divorce, 1'.1arried \Vomen, and Wills.) Interest. At the rate of 6 per cent per annum. If any person, upon any contract, rec ives at a higher rate than 6 per cent,. he forfeits three times the exec.<; paid. to the person aggrieved and suing therefor; but no contract is invalidato<i by reason of any stipulat.ion for usm•ious interest; the money actually advanced may be recovered with legal interest. Interest upon all judg-ments is at the rate of 6 per cent per annum. Interest upon unpaid taxes is at the rate of 10 per cent after the first day of December following their a. sessment, until sale of property taxed, and 12 per cent thereafter unt,il time of redemption. Upon current account.· interest commences from date of demand for payment, unless controlled by the custom of trade, which is a question of fact to be determined by a trial thereof. Judgments arc not a lien upon real estate, except when attachment is made on the original process, when a lien exists for thirty clays after judgment. 'ix per cent annual interest allowed on judgment·. In actions on mort.~a2es the judgment i conditional, that if the mortgagor pay the amount of the judgment, within two months, the judgment shall be void. Jud!lments are rendered on the la.'>t day of the term of tho court where the action has bee11' disposed of. Liens. Besides the common law lien the legislature bas provided for a. lien upon all the efiects and baggage of a boarder; also liens or the pasture of hor es, cattle. sheep, or other domestic animals. A person who may have performed labor or furnished material toward building, repairing, flttin~ or furni. hing a ye·. el shall have a lien thereon for the . pace of four days aft er completion. A person ~ho may have furnished a monument or tablet, or curbing, shall have a lien thereon. And a per on haYing a lien on personal property, when no time is limited for Lhe paymont of the debt,, may sell the same at auction, fourteen day. ' notice of the sale being re(]uired, if the value of the property exceeds $100, anrl a sworn rot.w-n of said sale shall be recorded in the offlce of the town clerk. Limitations of Suits. Accounts and simple promissory notes six years after maturity; judgments, sealed instruments, and note· secured by mortgage, twenty years. Time of debtor's absence from the t.ate is excluded. rbal acknowledgment and promi ·e to pay is sufficient to revive the debt. Action against administrators limited to two yea!'$. l\farricd Women retain all propcrt.y owned by them before marriage. or acquired afterward in any way except tht·ough property of the husband. to their sole and separate use, a if unmarried. All their contracts in relation to such property ar valid and binding, and all their other contracts are binding, except those as sureties or guarantors for their husbands. or for and in behalf of their husbands. Upon the death of wife, the husband is entit.led to substantially the same share of her estate as she would be of his estate in case of his death. ( 'ee Desrent of Property.) They are liahle for debts contracted while single, and their property may he attached to pay them. They are also liable for their torts before maniage in relation to their separate property. The husband is not ia ble for the wire·s ante-nuptial debts. and cannot conYey his improved real estate so as to bar his wife's right of dower and home ·tead without her consent. J\1arried women of the age of twenty-one years may dispo. e of thei.r property by will, but not to affect hu. band's rights, nor can they onvey so as to deprive the husband of his right. l\fortgn.~es. Real E tate. A conditional conveyance shall be ineffectual unless the . um to be paid, 01· the thing to be done, is stated in the cou veyance. All mortgages shall be signed in the presence of witnesses and acknowledged before a Justice of the peace or a notary public. Mortgages may be foreclos d. 1. Ily entry under process of law into the premises and continued actual possession for one year. 2. Ily peaceable entry in t,he presence of two witnes ·es and continued actual po- ession for one year. 3. By the mortgagee in possession taking formal possession under the second method. 4. By a sale under the provisions of a power of sale mortgage. Mortgages of personal property, to be effectual, the mortgagor and mortgagee mu.'>t take and subscribe the follo,,ing oath: "\Ye severally swear that tho foregoing mortgage is marle for the purpose of securing the debt pecifled in the condition thereof and for no other pw·pose whatever, and that said debt was not created for the purpose of enabling the mortgagor to execute the said mortgage, but is a just debt, honestly due and owing from the mortgagor to the mortgagee." The mortgage must be recorded in the otnce or the clerk of the town where the morLgagor re. ides, and in ca.'le of Lhe non-re idence of the mortgaaor. it must be recorded in the office of the clerk of the town where the property 1. situated. ~otcs and nms of Exchange. n instrument to be negotiable must conform to the following requirement.s: J. It mu.st 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. ::\Iust be payable on demand, or at a tlxed or determinable future time. 4. :\lust be payable to order or to hearer; and 5. 'Where the instrument i · addr .-.·ad to a drawee. he mU'st be named or otherwLse indicated therein ,~ ith rt•~ onable certainty. Its negotiability is not affected by a provision which authorize· the sale of collateral secw-ities in case the instrument he not paid at ma.turitv, or authorize. a confes~ion of judgm nt if the in~trumcnt he not· paid at matw·ity; or wan-es the benefit of any law mtended for the advantage or the protection of the obligor: or gives the bold ran election to require omet,hing to be done in lieu of payment of money. To charge indorser notice of 11011-paymeut must at once be given to him. Time of Matutity: Every negotiable instrument is p· yable at the time fixed therem without grace. except sight draft . When the day of maturitv falls upon un~ay, or a holiday, the instrument is payabie on the next succeeding busmc. day. Instrument falling due or becoming pavahle on . aLm-day a1·e t,o be pr~sented for payment on the next ·ucceeding busme. s day, except that mstrument payable on demand may at the option of the holder, be pre.-;ented for payment before 12 o'clocl~ noon on a.turday, when that entire day is not a holiday. ( ee Holidays.)   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  BANKING AND COMMERCIAL LAWS-NEW JERSEY  1918  Power of Attorney. (See Conveyances.) Probate Law. The probate court is a county court, and bolds numerous sessions in various places. Proceedings are begun by petition and citation issued. The citations are served twelve days before the return day. The court may proceed without notice in the following cases. In the probate of wills in the common form; in the appointment o! an executor nominated in a will; in the appointment of appraisers of an estate; in licensing the sale of real estate under $200 in value, or where the heirs consent in writing; in appointing guardians and commissioners; in granting allowances; in assigning dower and homestead, in making orders for suits upon bonds, in changing names; in appointing trustees nominated in a will. (See Administration of Courts, Descent of Property, Dower, Married Women, and  tttJ.f•  Protest. Notaries public are the proper protesting officers. Notice of the non-payment or the non-acceptance upon residents by mail is sufficient. (See Notes and Bills.) Replevin may be brought to recover goods or chattels in specie. The question of right of possession being in issue, the plaintiff shall give bond to the sheriff in a sum not less than double the value of the property to be replevied, to pay such damages as may be awarded against him. If the defendant shall prevail he shall have judgment !or the return of the goods, and other damages, or for their value. Taxes become a lien upon the realty simultaneously with their assessment (April 1st of each year). One year from the day of sale is allowed In which to redeem land sold for taxes, costs of sale and interest at the rate of 12 per cent per annum being added. A succession or inheritance tax of 5 per cent upon inheritances by collateral heirs, is collected through the probate courts. Wills. Every person, including married women, of the age of twenty-one years, of sane mind, may dispose of their property by will. No will is effectual to pass property unless it is in writing, signed by 0  ~1t:e;~~t;,t~~J'rat~~fecfi'ii fi!!sg~e:n~sbr:;~;~:~or~ycr~i~l~~~ nesses. Can be in type writing. A seal is not necessary. Foreign wills valid in the state where executed may be allowed here. Every child or grandchild, or every child born after the decease of the testator, shall be entitled to bis distributive share in the estate, if not named in the will. A foreign will is proved here by the production of an authenticated copy thereof, together with an authenticated copy of the probate thereof.  I  I SYNOPSIS OF  THE LAWS OF NEW JERSEY RELATING TO  BANKING AND COMMERCIAL USAGES Revised by EDWARD R. McGLYNN, Counselor at Law, Newark and East Orange. (See Card In Attorneys' List.) Questions In regard to New Jersey law will be cheerfully answered by this attorney. Acknowledgments of deeds are made within the State before the chancellor or a justice of the supreme court, a master in chancery, attorney at law, judge of the court of common pleas. commissioner of deeds, surrogate or county, or a deputy surro11:ate. or rem. ter of deeds,  fhu:~~~~~~~ori~~~~1cti~ntfi1te8d  ;,~~i~/iheksf:t~.eE~flri~u~!ti~~e~~ States, circuit or a district judge of the same, or a jud1-te or justice of the supreme or superior court or chancellor of the Statf', di<;trict. or territory, or before any mayor or chief magistrate of any city, borough, or corporation. duly certified under the seal of such city, borough, or corporation, or hefore a judge of the court of common plea.s or county court of such state, district or territory, or commissioner for New Jersey, duly certified, under the official seal of such commissioner. or by a master in chancery, or attorney at law of this State, notary public. or by any officer authorized at the time of such proof or aclmowledgment, by the laws of the State wherein the same shall be made or taken, to take the acknowledp;ment of deeds of lands lying and being in such state. In case the acknowledgment is made before a mayor or chief magistrate, the certificate must be attested by the seal of t,he city; if before a judge of the court of common plea.'> or county court. or other officer It must be attested by seal of such court, and certified by the clerk the court. If before an officer not enumerated but authorized as above stated. It must be certified that he i uch officer and authorized under the laws of such state, district or territory. at the time of taking uch acknowledgment to take acknowledgments and proofs. In foreign countries acknowledgment or proof may be made before a master in chancery, any court of law, notary public, mayor, or chief ma~istrate, or any ambal sador, consul. consular agent. or other representative of the United tates; if before foreign officer then tbe proof or certificate must be accompanied by a certificate under the great i-eal of such foreign h.i.ngdom. etc., that the officer was authorized under the laws of such kingdom, at the time, to take acknowledgments and proofs of deed or conveyance of lands, tenements or hereditaments in such kingdom, etc. Actions. All common law actions are now denominated "action at law"; this, however, does not apply to proceedings upon Prerogative Writs.  of  Administration of Estates. Wills are proved before the ordinary of the State, or the surrogate of the county, and letters testamentary are granted. In case there is no will, letters of administration are granted. Should there be a contest of the will or dispute as to the  ~~~  r:  ~mi:s~;;b~~·t;fti8u~~f~;~llc~;u~:: i~ ~!~t!~ ~~\st~~ ls the auditor of all accounts, and bas varied powers in matters regarding estates, such as the right to appoint trustees under a will, partition where minors are interested in lands, etc. Affidavits in the state may be taken before the Chief Justice of the United States or any associate Justice of the Supreme Court of the United States, the Chancellor, Vice Chancellor, a judge of any court of record, master in chancery, attorney at law of New Jersey, justice of the peace, mayor, recorder, or alderman of any city or borough, supreme court commissioner, city clerk, clerk or surrogate of any county, clerk of a court of record, notary public or commissioner of deeds. · Aliens. No restrictions as to holding property. Foreign corporations, other than municipal, may purchase, use, and convey real estate in New Jersey. (P. L. 1903, Chapter 22.) Appeals. From justice's court to court of common pleas of county. From district court to supreme court on question of law or evidence. From common pleas or circuit court to supreme court. From circuit or supreme court to court of errors and appeals. Except in first two or supreme court to court of errors and appeals. From orphans' court to prerogative court. From prerogative court or court of chancery to court of errors and appeals. Arbitrations may by the submission be made a rule of court, concluding the parties, by the award. Arrests. In civil actions. upon contract, a debtor may be arrested under the following circumstances: I. When be is about to remove any of bis property out of the jurisdiction of the court in which an action is about to be commenced with Intent to defraud creditors. 2. When the defendant bas property or rights in action which be fraudulently conceals. 3. 'When be bas assigned. removed, or dis1 0 ~~s;d~¥h ri~;i!'t°1t~ ~~:d~t~rs~r ~PW:e~· ~~Yf~!~~~it contracted the debt in question. o capias will issue except by order of court, judge, or court commissioner. As ignxnents and Insolvency. The insolvent laws provide for the discharge of a person under arrest for debt or damages on his delivering up all his real and personal property to his creditors. Assignments by debtors for the benefit of creditors must be without preference, and all others are void. Debtor must annex sworn inventory. Wages of servants, clerks. and laborers up to $300 each are preferred claims. Assignee must file list of creditors at the i:ind or three months, and make dividends at the next term of court. Creditor not presenting claim does not share in the dividend, but retains his right of action against the debtor. Corporation may make assignment for the benefit of its creditors. Attachment. A creditor may attach the property of a nonresident or absconding debtor by making oath to the fact, and to the amount of his claim, before any officer authorized to administer oaths or affirmations. Attachments are for the benefit of all applying creditors, but the plaintiff or plainti.trs are to be first paid the amounts due him or them before division with other creditors. Debts not due may be proved under any attachment issued, and receive their pro rata dividend. No attachment can Issue against the members of a co-partnership, where one of them resides in the State, nor against wages or personal property of non-resident when said property is exempt by laws of the State where debtor resides, at the suit of a nonresident creditor. Garnishment can be effected only in attachment cases. Where capias ad re'pondendum will L ue in an action upon contract, an attachment will lie; awarded by court or a judge thereof, or supreme court commissioner upon affidavit filed as required to obtain capias ad respondendum. Attachment will issue against female, corporation or organization as if such defendant were liable to arrest. (In actions of tort attachment will issue if summons can be served.) (See Arrest.) An action may be commenced by attachment upon 0  t~:r:!~·  g~or ~uc~eur;;f !~fi~~•. ~~ai~~tni~~i:3nii~ti~u1'!~h~ta~~r defendant absconds from his creditors or is not resident and that summons cannot be served. (But no attachment will i ·ue hereunder against the rolling stock of a common carrier of another state or against the goods of a non-re.-.ident in transit in the custody of a common carrier of this or another state.) 2. That cau e of action survives against heirs or devisees of decedent, and that some of such are unknown or non-resident and there is property of decedent in this State liable to answer the cause of action. Banks are incorporated under special act. Under certain conditions may purchase. hold, and convey real estate. Have the same general powers and are. ubject to the restrictions and liabilities contained in the general corporation act, ·o far as the same are applicable. Every bank shall make at least four reports each year to commissioner of banking and in urance. These reports shall be published in newspaper where bank is located. Individual or private bankers are subject to the supervision and control of the department of banking and insurance. (See P. L. 1899, p. 431.) Chattel Mortgage . ChaLtel mortgages to be valid must be acknowledged as deeds and affidavit of the con. ideration must he made by the mortgagee. They must be recorded immediately in the county where the sale or transfer takes place. In case household goods are mortgaged, the wife must also join. Collaterals. As security for loans, regulated by commercial law. Pledges of property to pawnbrokers regulated by statute. Contract . The following must be in writing: Lea es for a longer term than three years. A. ·ignments. grants, or urrender of leases. Declarations or creations of trust (doei not interfere with implied or constructive trust ). grants and assignment.· of trust . ·pecial promise of executor or admini ·trator to answer out of his own e ·tate. Special promi.·e to answer for the debt, default, or mi carriage of any other person. To charge any person upon any agreement made upon promise of marriage. Contract or sale of lands. tenements, or hereditaments or any interc tin or concer,ning them. Any agreement not to be performed within one year of the making thereof. Contract for the sale of goods of the value of 500 or upward (acceptance of part of the goods or payment of part of the price obviates necessity of writing): applies to sales for goods to be made a well as sueb are in existence, unless goods are to be made especially for purchaser and are not suitable for sale to others in ordinary cour e of eller's business. Promise made after coming of age to pay debt contracted in infanc-y. Promise of bankrupt to pay after di charge. Promise to pay claim barred by , tatute of Limitations. Commi-.sion to broker or real estate agent, authority to ·ell must be in "riting and rate of commL·sions stated. In ca. e of debts fraudulently contracted, sult may be brought for recovery as oon as the fraud i<; discovered, notwith. tanding debt may not be due. Conveyance . Usually bargain and sale or warranty. 1ust be acknowledged to be recorded. Acknowledgment of wife may be taken in presence of husband. ( f'e Married Women.) Corporation . Corporations are formed under the general act; however, insurance, safe depo it or trust companie . banking corpora•  tfi1!::1tl~  BANKING AND COMMERCIAL LAWS-NEW JERSEY  Executions issue immediately upon a rendition of judgment, and are returnable either in term or vacation. An execution and levy  !~:iis·oit;;11ggn!>;:~!s ~ffit1ni~~lt~i~~ri~e ~r~lt~~o~~J>:t~~ g~  ~Yi~~h;.lu:11~~Jt1i:r::3\et;:t~f}~!!trn~J:~ a,Jg~~~~j~~~~:~~1:J to the payment of the execution upon which the sale is had. There is no stay of execution, except on those which are issued out of justices' courts. In these courts thirty days are allowed on sums up to $15; three months up to 60, and six months on all sums over $60, and this only ca.se of judgment by confession and defendant giving good and sufficient freehold security. There is no redemption after sale in any case. Where an execution has been returned unsatisfied, the court out of which it was issued may, on application of the judgment creditor, make an order compelling the debtor to appear before the officer named and make discovery on oath concerning bis property. The judgment creditor shall present to the court a petition verified by oath, in which be shall state the amount due on said execution, the return made, and his belief that the debtor has property in his own right over and above that which is reserved by law. Court may make order forbidding debtor from receiving or transferring property where it is shown he has property or rights in action. Order may also ba made against third person owing debtor or having his property in control, custody, or possession. Arrest on a capias can only be had in case of fraud or attempted removal or disposal of property with intent to defraud creditors. Creditor may proceed upon unsatisfied judgment at law by bill in chancery; court has power to compel dfs... covery, examine debtor, and to preserve and make disposition or property. Where an execution upon a judgment is returned unsatisfied and the judgment debtor is earning $18 or more per week, you can attach the salary up to 10 per cent thereof where it is under Sl,000 per annum. But if over 1,000, the judge may order a larger percentage thereof to be attached. Exemptions. The lot and building thereon, owned and occupied by the debtor, being the bead of a family, to the value or $1,000, providing that in the debtor's deed it is set out that the property is intended for a homestead, or else that notice to such effect is filed in the county clerk's office. Personal property to the amount of $200, besides wearing apparel, owned by a resident head of a family, ap-  ~~~~r~~~~t!~ p~~~~s s~eecf!f~~r~~~~~~°: ~ci. companies. The certificate of incorporation shall be signed personally by all subscribers to the capital stock and set forth; 1. The name of the corporation. 2. The location of its principal office in the State. 3. The object or objects for which the corporation is formed. 4. The amount of the total authorized capital stock of the corporation, which shall not be less than $2,000, the number of shares into which same is divided, and the par value of each share. The amount of capital stock with which it shall commence business to be not less than $1,000, which may be paid either in cash or property, and if there be more than one class of stock created by the certificate of incorporation, a description of the different classes with the terms on which the respective classes of stock are created. 5. The names and postr-office address of incorporators and the number of shares subscribed for by each, the aggregate of which shall be the amount of capital stock with which the company will commence business, and shall be at least $1,000. 6. The period, if any, limited for the duration of the com1 0 ~:g~sio~· a'!'ht~ iir:i~~~Yat~~nino~ ~Yi~rai~rne~a~n~ s~o;3~Jti~f ~i~ affairs of the corporation, and any provision creating, defining, limiting, and regulating powers of the corporation, the directors and the stockholders, or any class of stockholders, provided such provision be not inconsistent with the act concerning corporations. Every certificate and report must give address of ew Jersey office and name of agent in charge thereof, upon whom process against the corporation may be served. Directors shall be stockholders, and shall be chosen annually by the stockholders. They must be three in number, at least. The officers are chosen annually, president must be a director. One director must be a resident of the State of ew Jersey. By chapter 197 Laws of 1916, rule is changed and none of directors need be residents of New Jersey. By chapter 168, Laws of 1920, corporation may now issue stock without any nominal or par value. Change in the nature of corporation's business name, amount of capital stock, classes of stock, etc., may be made by vote of two-thirds of stockholders. (P. L. 1920, p. 343.) Corporation may determine the manner of calling and conducting all meetings, and what number of  0 ~~~\~  0  ~:~i~  ;:t~ii  ~ti~~ fft!~irv~Ji~~~ei:eat:~~u.;. ~Ni tr; ~~~clry~igi ap~~:.t~~r~g;  '  and appointment of receiver of such insolvent company. Laborers and workmen have first lien upon assets to a limited amount. Liability of the stockholder ceases when shares are fully paid for, or in other words, a stockholder is only liable to the amount of his unpaid subscription to the capital stock. Foreign corporations are subject to the provisions of the general corporation act in so far as the ame are applicable; the provisions of which having been complied with, there is issued by the secretary of state to such foreign corporations a certiflcate that it is authorized to transact business ln this state. It is unlawful for a foreign corporation to transact buslne s in this State until such certificate is obtaiued. Foreign corporations, other than municipal, may purchase, use, and convey real estate in ew Jersey. Associations not for pecuniary profit may incorporate under special law providlug for such incorporat.ion. A copy of the corporation law of the State, with full forms and instructions for incorporating, is sent without expense by the secretary of state, Trenton, N. J., upon application. A copy of the corporation act may be had free upon application to New Jersey Registration and Trust Company, 525 Main Street, Ea.st Orange, N. J. Courts. Terms and Jurisdiction. Circuit courts and courts of common pleas, holding three terms a year in ea.ch county, have jurisdiction in all civil cases, but to carry costs must recover at. least $100, except that the court of common pleas has no juri ·diction where title to lands comes into question. The supreme court, holding three terms a year at Trenton. has also original jurisdiction in all cases, but must recover 200 to carry costs. Courts of chancery has exclusive equity jurisdiction, and sits at Trenton. Di trict court jurisdiction, co-exten ive with county, in amounts $500 or under; justices' court jurisdiction co-extensive with county, in amount 200 or less. In cities where district courts are established and defendant or justice of the peace re .ide within the limits of said city _the justices' <;o'!lrt has no civil jurisdiction whatever. (See district court, rev1s1on P. L. 1898.) The court of errors and appeals has no original jurisdiction but hears appeals from court of chancery, prerogative court, supreme court and circuit courts." Curtesy. (See Dower.) Days of Grace. Abolished since July 4, 1895, unless stipulated to the contrary. Depositions of material witness residing in the tate, who is ancient or very infirm, sick, about to go out of the.' ta~e. or ab ent from the State, may be taken de bene e. se before a Justice of the supreme court judge of the court of common pleas, supreme court commissioner or master in chancery, on notice to adverse party. Of material witne s residing out of t,be tate by virtue of a commission !ssued out by the court before whi~h the action is pe~ding, either on mterrogatories or orally upon notice. The co!Dm1· 1~mer must first take and sign an oath, "faithfully, fairl3', and 1"!11part1ally to execute the said commission" before any officer authorized to take an oath. Such depositions may also be taken before a judge of th~ ~upreme court, or district court, or court of common pleas, comnuss1on~r of deeds appointed by the governor of the tate of • ~w Jersey resident where the witness is, on notice of one day, exciu.1ve ~f unday, for every fifty miles of travel and not less than ten clays m all. If the Witness reside on the l'aciflc co~st, the court fixes the lene;th of notice. It in a foreign state or kingdom, not le. s than forty day notice must be given. ( ee Jeffery's Law Precedent , p. 260. et seq., and Dickinson's Chancery Precedents, p. 217, et seq .. for forms and Instructions.) Descent and Distribution. Descent; 1. T~ children and grandchildren, and so on, tbat is, lineally, ad infinitum. 2. In .d~fault of class 1 to brothers and sisters of the whole blood, and their 1. ue. 3. In default of classes 1 and 2. to the father and moth~r a tenants by the ent,irety, aud if the mother be dead to the father 1~ fee, unl~ss the inheritance ca.me from the mother by de cent,. devise, or gift. 4. ln default of classes 1, 2. and 3, to the mother m fee unle the Property ca.me through the father. 5. Tn default of th~ former classes, to the brothers and i,;isters of the half blood and children of such, provided the inheritance came from the common hlood or by Purchase. 5. In default of all of these to the persons of equal degree of con anguinity. 7. In default of all above classes to the bu. b~nd or wife, if any, in fee simple. Escheat I? tate after all above c~a1ms a.re exhausted. Distribution: 1. One-t,l11r<;1 to the h~ band or widow, re idue to children and legal representat1Ye of children. 2. ~f no children or legal representative who!~ of estate t? busba~d or widow. 3. If no husband or widow all to children, and 1f no child, no~ representative of child equally among parents and brot~er~ a:nd !sters, except where intestate a. minor then all to pa.rents 1f hvmg, 1f not living, then to brothers and s~sters equ~lly. -4. If no husband or Widow child legal repre entat1ve of child, nor parent, brother or sister, 'than all to next of kin in equal degree. Dower. Widow entitled to one:thi.rd for life of all t~e lands of Which her husband was seized durmg coYerture, for which she has given no relinquishment or release by deed, properly executed an . acknowledged. (See Descent and Distribution.)   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1919  1  f!:f1;d o~~ ~1!:'cee~.fe1s~;;i:siir~!.~t~?al: ::: s~~~11!ke:1p1i~~eo~°oo ~ against the creditors. Family of absconding debtor may claim exemption of $200 as above. Frauds. (See Contracts.) Garnishment. (See Attachment, also Exemption.) Holidays. Legal holidays are: January 1st, commonly called New Year's Day; February 12th, called Lincoln's Birthday; February 22d, known as Washington's Birthday; Good Friday; May 30th, known as Decoration Day; July 4th. called Independence day; first Monday of, eptember, known as Labor Day; October 12th, known as "Columbus Day' ·; December 25th, known as Christmas Day; Thanksgiving Day, and any general election day. If any of these days happen on Sunday the holiday is kept Monday. Every Saturday from 12 o'clock at noon to 12 o'clock at midnight is a half-holiday. Husband and Wife. (See Married Women.) Inheritance Taxes-Transfer Taxes. Property in excess or $5,000 passing to father, mother, brotherJ sister, wife of son, widow of son, husband of daughter is taxed at tne rate of 2 per cent up to $50,000; 2½ per cent between $50,000 and $150,000, etc.; passing to a husband, wife, child at the rate of 1 per cent up to $50,000; I½ per cent between $50,000 and $150,000, etc. All others, except churches, ho pitals, charitable institutions and the like. organized under the laws of and operating solely within this state, are liable to a 5 per cent tax on amounts of $500 or more. All taxes impo ed by the act are due and payable upon death of the person from whom the property passes or is transferred. Ir paid within one year a discount of 5 per cent is allowed, and if not paid within one year interest at rate of 10 per cent per annum is added. (See P. L. 1914, Chap. 151.) Interest. Legal interest on debts and judgments, 6 per cent. Usury is punishable by forfeiture of all interest and costs. Interest on an open account accrues on each item from its date, as at common law. No corporation can make defense of usury. Judgments become a lien on land from time of actual entry, and so remain for twenty years. Where there are several judgments, that under which the first levy is made takes priority. Judgments recovere under which the first levy is made takes priority. Judgments recovered or docketed in the supreme court are a lien on all lands of defendant within the State. Judgments recovered before a justice of the peace may be docketed in common pleas, so as to be a lien upon lands. Decrees In chancery may be enrolled in supreme court; when so recorded. have effect of judgment recovered therein. Linutations of Suits. Contracts not under seal, six years; Tort actions, two years; real actions and judgments, twenty years; notes secured by mortgage and contracts under seal, sixteen years. Revivor: Part payment or new promise or acknowledgment in writing. Where the defendant leaves the State the running of the statute is suspended dming such absence. Married Women hold and control their property, real and personal, precisely as if unmarried. But a married woman cannot become an accommodation indorser, guarantor, or surety, except under certain conditions. (See P. L. 1895, p. 821.) She cannot convey or encumber real estate without her husband, except she is living in a state of separation from her husband, and there has been no issue of such marriage. or her husband is unable to join through lunacy or other mental incapacity, or in case an assent to the same has been signed and acknowledged by the husband. A married woman may make a will of her separate estate as if she were sole, but cannot defeat her husband's interest in her real estate (see note under Dower), although he can make absolute disposition of her own private per onal property without regard to her husband. A married woman who is an executrix or trustee may convey lands of testator without husband joining. A married woman may execute a valid conveyance of life estate. (See Dower.) A married woman may sue, or be sued, without joining her husband, in any case in which he would be an unnecessary party if not her husband. Mortgages. Unless to secure purchase money, wife must join (safer to follow this rule. See note under Dower.). A married woman cannot execute any mortgage without husband. li'oreclosure Is by act.ion in equity. Chattel mortgages are absolutely void as against creditors and sub equent bona fide purchasers and mortgagees, unless the mortgage is acknowledged or proved according to law and recorded. or unless the mortgage is accompanied by immediate delivery and followed by continued change of possess.ion of mortgaged property. Foreclosure of chattel mortgages is usually effected by eizure and sale, although may be foreclosed in equity. Chattel mortgages must have an affidavit annexed, setting out the interest of the mortgagee, consideration of the mortgage, and the amount due a!l,d to grow due thereon, said affidavit to be made by the holder, or his agent or attorney. Chattel mortgages upon household furniture in the use of the family, unless given for the purchase thereof, must be executed and acknowledged by both husband and wife. Negotiable In truments. Regulated by an act entitled "A General Act relating to negotiable instruments (being an act to establish a law uniform with the laws of other states on that sub-   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1920  BANKING AND COMMERCIAL LAWS-NEW MEXICO  ject)." The act is quite identical with that passed in New York, Massachusetts, Connecticut, Rhode Island, Pennsylvania, Maryland, Virginia, North Carolina. Tennessee, Florida, Wisconsin, North Dakota. Virginia. North Carolina. Tennessee. Florida, Wisconsin, North Dakota, Colorado, Utah, Oregon, and Washington. Powers of Attorney for sale of land in which married woman joins, must contain a full and particular description of the lands, tenements, or hereditaments authorized to be conveyed. Probate Law. (See Administration of Estates and Wills.) Replevin requires bond from party issuing the writ. Officer holds for twenty-four hours, during which defendant may give bond and retain the goods. when the case proceeds. In the same suit damages ~ : be recovered. If no bond is given, goods are delivered to plainSuits are commenced by writs of summons, capias, warrant, or attachment. Service by publication may be made in equity only, and in common law courts, m case of a foreign corporation, if service cannot be made on officers or agents, directors, clerks or engineers. Taxes are and remain paramount liens. except as to taxes subsequently assessed. from and after December 20th following assessment. Taxes due and in arrear eptember 1st next after assessment may be collected by sale of land. Right of redemption extends two years from sale. Taxes payable one-half on April 1, which if not paid on June 1, become delinquent on that day. Remaining half to be paid on or before December 1st. after which date becomes delinquent. Transfer of Corporation Stocks. Shares of stock are personal property, transferable on books, but cannot be voted on if transferred tw.enty days before election. Subject to attachment and levy of eieecution. Wills. There are four requisites to make a valid will in this State. They are: 1. That it be in writing. 2. That it be signed by the testator. 3. That such siir.11ature shall be made by the testator or the making thereof acknowledged by him in the presence of two witnesses, who shall at his request sign their names as such in the presence of the testator and of each other. 4. That it shall be declared to be his last will in the presence of these witnesses. Sealing is customary.  SYNOPSIS OF  THE LAWS OF NEW MEXICO RELATL.·a TO  BANKING AND COMMERCIAL USAGES Revised by A. B. STROUP, Attorney at Law, Albuquerque. (See Card in Attorneys' List.) Acknowledgments.  (See Oonveyances.)  rui~t~1nc~ur(hA1Yr~f;ffeairio~ti ;ft!fri~t ~~~1ris da~e mb~~~:~ ~; follows: All transitory actions shall be brought in the county where either the plaintiff, or defendant, or some one of them. resides, or in the county where the contract sued on was made, or is to be performed. or where the cause of action originated, or indebtednes · sued on was incurred or in any county in which the defendant, or either of them. may be found. in the judicial district where the defendant resides. ·when the defendant bas rendered himself liahle to a ch·il action by any criminal act, suit may be instituted against such defendant in the county in which the offense was committed. or in which the defendant may be found. or in the county where the plaintii! resides. When suit is brought for the recovery of personal p1·operty, other than money, it may be brought as herein stated, in the county where the property may be found. \Vhen lands. or any intcre ·t in lands, are the object of any suit, in whole or in part, uch ·uit shall be brought in the county where the land, or any portion thereof, is situated. Suits for trespa s on land shall be brought as provided for in transitory action . or in the county where the land. or any uits may be brought against transient portion thereof, is situated. persons or non-residents in any county of this State. Administration of Fstates. Letter· or administration are granted in the county in which the mansion. house, or place of abode of the deceased is situated. or in the county in which lands of the decedent are located, and in the absence of all these, in the county where the deceased died. Letter are granted, first, to the husband or wife surviving; secondly, if there be no husband or wife. urvivin~. to those who are entitled to distribution of the estate. or one or more of them, as the probate judge shall believe will b ·t manaite the estate; thirdly, to any creditor thirty clay· after the cleu.th; fourthly, probate judge may i,;elect a suitable person. 'l'he probate cow·t has exclusive jurisdiction. and from all its acts an appeal lies to the district court. (See Claims Against Estates.) 0  1  Affidavits. Affidavits to be used in court may be taken before any person authorized to take acknowledgments. Aliens. By statute of the State foreigners have the same right to own and dispose of real tate that citizens of this country enjoy. and property descends to their heirs and i controlled by their executors and administrators in precisely the same way. Arbitration. All litigants shall have the right to terminate their suits. in whatever condition they may be, by means of arbitrators, the litigants shall enter into an a~eement in writing (the form of which is provided by statute) to submit their differences to arbitration and the arbitrators shall receive proofs and hear arguments of counsel, and render judgment as the majority of the arbitrators may decide. and any of the courts will enforce the decision of the arbit1·ators by issuing execution thereon. Assignments. Insolvent debtors may make assignments for the benefit of their creditors. No preferences are allow d. but the assignment insures to the benefit of creditors generally, pro rata. The court may upon proper application compel the as. ignee to ·urrender the property to a receiver to be appointed by the court. The claims of creditors to be verified by the oath of the creditor. his agent. or attorney. Assignee is required to settle up the estate ,vithin twelve months. Attachment. Creditors may sue their debtors in the district court or justice of peace court for amounts less than two (2) hundred dollars. by attachment in the followin~ cases, to wit: 1. When the debtor is not a resident of nor resides in the State. 2. \Vhen the debtor has concealed himself or absconded. or absented himself from his usual place of abode in this , tate, so that the ordinary process of law can not be passed upon him. 3. \Vhen the debt01· is about to move his property or ofl'ects out of this tate. or has fraudulently concealed or disposed of his property or etl'ects. so as to defraud. hinder. or delay his creditors. 4. When the debtor is about to fraudulently convey or assign, conceal, or dispose of his property or efl'ects, so as to hinder, delay or defraud his creditors. 5. When the debt was contracted out of the , tate. and the debtor has absconded or secretly removed his property or effects into the tate with intent to hinder. delay or defraud his creditors. 6. \Vhen defendant is a corporation whose principal office or place of business is out of thi ·tate. unle s such corporation shall have a designated agent in the Rtate. upon whom . ervice of proces · may be ma'le in suits a~ainst the corporation. 7. When the defendant fraudulently contracted the deht or incurrerl the obligation, respecting which the suit is brou!!;ht. or obta.inetl. credit from the plaint.ill' by false pretenses. An attachment may L-;sue uwm a demand not yet due, in any case where an attachment is authorized, in the same manner a." upon demands already due. The attaching creditor must flle with the clerk of the court a bond with two or more sureties in double the amount of the claim. and an affidavit sworn to by plaintiff or some person for him, setting out the amount of the claim, that it is due after allowing all just creditors and off ·ets, and on what account; and that affiant ha good reason to belie,·e, and does believe. in one or more of the causes for attachment hereinbefore set forth. Any person having property or effects of defernlant in his hands may be garnished. 'l'he attachment may be di>'solved by denying and successfully contesting the truth of the ground of attachment specified in the affidavit, and then the suit proceeds as an ordinary action. Bank<1. Any number of persons not less than three may incorporate a banking company. the capital of which shall be a paid up minimum of not less than 25,000 cash (not applicable to trust companie ·, however). Every bank must maintain a reserve of 12 per cent of its deposits, at least 40 per cent of which reserve shall be in cash in its own vaults. Bills of Exchange. All bills of exchange shall bo due and payable as therein expressed, and shall have the same effect arnl be negotiable in like man.ner and shall have days of grace according to tbe custom of merchants. Damage for non-ace ptance or non-payment by persons outside the United tates 12 per cent upon the principal specified in the bill, with interest on the same from the time of the protest; if drawn upon a person at a place in any of the United ta.te , or territories thereof, 6 per cent with interest. ( ee Bills and ~ otes.) Rills and Notes are assig-nable as at common law. and the a. sie;nee thereof can bring uit in his name. On a joint and several note, any one of the maker· may be sued. Indor er· are subject to the same liabilities as at common law. Intere t is limited by i,;tatute to 12 per cent per annum. Days of grace are allowed. Commercial paper falling due on unda.y or any legal holiday L. under statute, , payable on the next business day thereafter. ('hattel l\lortgage . Personal property of every description, including growing crop . are ubject to mortgage. All in:truments having eil'ect of chattel mortgages mu. t be acknowlede;e·l and recorded as are conveyances affecting real estate. Every mortitage so filed becomes void as to subsequent creditors, purchaser' or mortgae;ees at the expiration of . ix years from filing. In ab ence of contrary stipulation mortgagor r tain · PO''e:-dou. ('laims Against Estate. . Claims mu. t b properly entitled in the name of the claimant again ·t the executor or admini:trator of the estate, and mu. t be filed within one yca.r from tho appointment of the executor or admini. trntor or they will be barred. Tho probate jude;e hear· and determines clairns ae;ain:t the deccclent': ·tate. All claim. flied and not eicpre ·. ly admitt cl in writine; by the oxocutor or laimants may appeal administrator shall be con ·idered u.s denied. st 1 0 0 ~~~:n t~v~t£r1~bt8e ct~ ~\/a°mt~t~ ~~f1o~ ~l't1~"w;:~~?J:t~~i:t~ a~~ within cightc n months after the appointment of the executor or administrator. Claims have preference a· follow:: 1. b:xpenses of administration. 2. Expen ·es of funeral and last :ickn ·s. 3. Allowance for maintenanr:e of widow t nrl children. 4. luim · preferred by the expre:·s provision of the nited :tat ~ or tate h~w ·. :.i. 'raxe·. 6. All other debt·. 7. Le~ai;i s. A claim again. t an c,tate on account of matters occurring during the lifetime of the decea-;ecl cannot be allowed on the uncorroborated evidence of the claimant. Conditional ale . Lease sal '·. ale le· ·, etc., void as to subsequent er 'clitor . liens, etc., unless u.cknowled •ed same a· mortgage and duly recorded or flied with recorder. Conve,·ances. All conveyanc · of real ·tate :hall be sub:cribed by the person transferring his title or int rest in aid r al C!·tate, or by his legal agent or attorney. Every im;trumeut iu writing by which real estate is transferred or atl'octccl. in law or equity, hall ho acknowleclgod and cert.Hied to in tho manner hereinafter pr ·cribed. The acknowledgment of all conveyance or writin~ , l!ectin~ any real ·tate. in law or equity, ~hall be ta.ken b for· any of th following named officers: If the acknowleligment is made within tho ·tate it shall be made before any (1) clerk of the district court, (2) juiigP of probate court w·ing probate seal. {3) notary public, (who has pow r and authoriW to admini. tcr oath anywhere in the ·tat • {4) ju. tice of thP peace. If taken without the .·tate nml within the Unit i 'tates. the acknowledgment to be taken (I) before a clerk of. ome court of record having a ·eal. (2) a commis ·ioner of deeds duly appointed under the law· of this t, te. (3) a notary having a s l. If acknowlorl~ed beyond the limit of the nitecl 'tat ·. it ·hall be don lp"fore any (1) minister. commi-donrr, or chu.rge d'atrairs of the Unite! States r ·ident and accredited in the country wher the a knowlcdgment is mad , (2) con. ul gcneru.l, consul, vice-consul. deputy con ·ul, consular agent of the United ·tatllS, re:;ident in the country vhcre the  BANKING AND COMMERCIAL LAWS-NEW MEXICO acknowledgment is made, having a seal, (3) a notary public having a seal. Husband or wife may convey their separate estate without consent of the other and husband has sole management and disposal of community property other than testamentary, except he cannot make a gift or convey without consideration any community property and be cannot sell, convey or encumber homestead without wife's consent. No seal or scroll necessary to the validity of conveyances except by corporations. Corporations. There is a corporation commission with very limited powers. principally exercising its functions in the granting of charters and filing various corporation annual reports. Any three or more persons may form a corporation for mining, manufacturing, or other industrial pursuits, or the construction and operation of railroads, wagon roads, irrigating ditches, and the colonization and improvement of lands in connection therewith; or for colleges, seminaries, churches, libraries, or any benevolent, charitable or scientific association. To do so they must make, sign, and acknowledgebefore some officer competent to take the acknowledgment of deedsa statement in writing (for the filing of which the State is entitled to graduated fees), setting forth the full names of such persons; the corporate name of the company; the objects for which it is formed; the number of directors and their names, who shall manage the affairs fifty years; the number of shares into which the capital stock i divided; of the company for the first three months, and the name of the city, or town and county in which the principal place of business of the company is located; the amount of the capital stock with which it will commence business, which shall not be less than $2,000, and if there be more than one class of stock created by the certificate of incorporation, a description of the different classes, with the terms on which the 1 ~isi~c~~e oi ~;Sin~~r~g;~to~re a~~e;~t ;n~~e~a~r:h:r~~ by each, and shall also give the name of the agent in charge of the principal office upon whom process can be served. There hall be at least three directors in each company, and a majority of them citizens of the United States, and at least one a resident of the State. And after the expiration of the term of those first selected (three months), they shall be selected annually by the stockholders from among their number, A majority of the whole number of directors form a quorum for the transaction of the business. When the certificate has been flied the life of the corporation begins, with all the usual liabilitie and powers. The stock of the corporation is personal estate. There is no personal liabilities upon stockholders if stock is paid up, except where debts are incurred in excess of the capital stock. The stock of a stockholder may be taken on attachment or execution. The capital stock may be increased or dimini bed by a vote of two-thirds of t,he hares of stock at a meeting of the stockholders, called for that purpose, upon four weeks' notice , signed by a majority of the directors. Foreign corporations, or those organized under the laws of other states and territories, may do business in this state by filing with the secretary of State probate clerk of county in which the principal place of its business shall be a copy of the laws under which they are chartered, and a certified copy of their charter, and also a certificate signed by the pre ident and secretary of such company, duly acknowledged, designating the principal place where the business of said company shall be carried on, and an authorized agent or agents residing at said principal place of business upon whom process may be served. Railroad and banking corporations come under a separate head with peculiar privileges and restrictions. Costs. Security for costs or a deposit of money in lieu thereof is required of plaintifl's, in the discretion of the court. Court . District courts hold two terms a year in all the counties, and have unlimited common law and chance1·y juri. diction. There are probate courts with the u ual powers, holding six terms a year. District courts are at all times in session for the transaction of all bu. iness except jury trials. Days of Grace. (See Bills and • ote .) .i.:i-ot allowed. Depositions. Depositions of "itnesses to be used in any c~urt in this State in all civil cases, and proceedings !-Day 9e ta~en m the following cases: 1. When by reason of age mfirrmty, sickness or official duty it is probable that the witness will be unable to attend the court. 2. When the witness resides without the 'tate, or the county in which the suit i. pending. 3_. Wh~n the wi~n~-; · ha5 _left or is about to leave the tate or county m which the suit 1 • pendmg, and will probably not be present at the trial. Depo. itions may be ta!<e!l on interrogatories and cro -interrogatorie . at~ached to a commu,sion to be issued by the clerk of the court or Justice of the I?eac::e, and may be taken within the State by a district judge, clerk of district court, clerk of probate court or any notary public of the coun~y where taken. They may be taken without the 1?tate by any_ cl~rk oi a court of record having a seal, by a notary public or a comm1_. s_10ner _of _deeds duly appointed under the laws of this tate, and re:1dmg within; the state or territory within which the witness is alleged to be or ~e. 1de . The olflcer to whom the commission i addressed is authorized to • Issue subpoenas for witnesses, and upon their _appearance,. and ta:ke and reduce to writin"' their answers to the mterrogatones, which shall be signed to axfd sworn by the witnesses. The ofllcer. shall certify that the answers were signed and sworn to by the ~ntne · before him and . hall seal them up in an env~lope_ together with the cornmi,sion and interrogatorie , and shall wnte his name acro_ss t_he seal, and shall direct the package to tbe clerk of tb~ court or. Justice of the peace i suing the commission. lf sent by ma1~ the P0'tmaster mailing the same shall indor ·e tbe~·eon ~hat he recen:ed them from the officer taking the same, and Slh'll h1. name. In every c~e the officer taking 1,he deposi~ion shall certify that he k;no~v tb~. w1t?.~ to be the person such witness purport· to be, but 1f . _uch witn~. is not personally known to the officer he shall then reqwre the witness to be identified by at lea t two responsible ~ers0I), we:11 known to. the omcer, and he shall certify to the fact of 1dent1flcat1on of the witness. Dower. There is none. (See Husband and Wife.) Executions. Executions may i sue ~t ~ny time within even Y~~. Pro ided tlr.-t execution is taken out w1tlun five years a(ter _rend1t1on of judgment, and to any county in the State. from district. co~s are returnable in ixty days from deliverr to sheryr, ~nd from Just1!!es o _stay of ~xecut1on courts within thirty days from date ~f issue. ~xcept by appeal. A writ of error w_1ll tay e~ec_ut10n of a JUd~ment 1n district, court. if such writ is apphed for ~v1th~n two months from date of rendition ot' judgment. and bond IS gIVen_. The ·upreme court may ass ss 10 per cent damages where appe;al 1. taken "'.}thout r_easonabie cause. Real estate sold und r exe~ut_10n, and_ . ubJect to ales hens and encumbrances, may be redeemed withi~ one ~ car. !].nder execution must be advertised four weeks pr10r to day of sale, 10 some newspaper. Exe1nptions. neal estate to the val'!~ of 1,000 . ha~l !Je exempt from execution in favor of heads of f_amihes actu~llr res1dm~ (?ll the same, provided the exemption. be cla.uned. But if i? the 01J1ruon of tho creditors the premises claimed as e ompt ~re "orth more than 1,000, it shall be lawful for the officer to advertise aod ell _the premises, and out of the proceeds of such sale pay to the exe~ut1on de~tor • 1,000, and apply tho balance to payment of execution,. proY1ded that no sale can be made unless more than s1.090 be bid for the Premises. Also the clothing, beds, and b~d-clothrne;, nee ·sary for the use of the family, and firewood . uffic1ent fo~ .-b:ty day , hen actually pro, ided and intended therefor. All Bibi , hYlllD-book ,   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  tu~;;m~~  1  1921  testaments, school books used by the family, and familv and religious pictures. Provisions actually provided, to the amount of $50, and kitchen furniture and household furniture not exceeding $200 in value both to be selected by the debtor. Also household goods of the additional value of $75 in lieu of certain domestic animals. Also all tools and implements belonging to the debtor that may be necessary to enable him to carry on his trade or business, whether agricultural or mechanical, to be selected by him, and not to exceed $150 in value. Real estate when sold under execution must be first appraised by two freeholders of the vicinity, and must bring two-thirds of the appraised value. Unmarried men have no exemptions. Any resident of the State owning no home tead, may select other property, not exceeding $500 in value in lieu thereof. Foreign Corporations. (See Corporations.) Foreign Judgments. Action founded upon any judgment of any court of record of any other state or territory of the United tates, or of the federal courts may be brought within seven years from and after the rendition of such judgments, and not afterwards. Fraud. Fraudulent conveyances, or conveyances made with the design to prefer one or more creditors in preference to others, and, when the debtor is insolvent, may be set aside upon application by a bill in equity. (See Assignments.) Garnishment. No garnishment or attachment proceeding may be brought founded on a sale or purchase of intoxicating liquor:s. Eighty per cent of a monthly salary or wage of $75 for last 30 days or less is exempt. Salary or wages in excess of $73 per month not exempt. No exemption whatever where debt incurred for necessities of life and defendant is not head of a family residing in tate. Public officer · may be summoned as garnishees where debts or cau ·e of action has been reduced to judgment. Holidays. Sundays, New Years, Christmas, Fourth of July, October 12th, Columbus Day, 22d of February, 30th of May, Thanksgiving and such other days as may be designated by the government as holidays. Homesteads. (See Exemptions.) Husband and \Vife. All property owned by either contracting party at time of marriage remain separate property of each, likewise all property acquired during coverture other than by onerous title. Property acquired by onerous title belongs to the community. Conditionally it may be said that either is liable for necessities furnished family. Title in wife is presumption that property is her separate property. Insolvent Laws. (See Assignments.) Interest and Usury. Six per cent interest is the legal rate of interest in absence of contract, but parties may agree in writing for any rate of interest not exceeding 12 per cent. Open accounts bear interest at 6 per cent from six months after the date of last item in the account. Judgments bear the same interest as contract sued on, and in the absence of any specified rate, 6 per cent. Judgments. Money judgments of the district and supreme court of New Mexico becomes a lien upon the real estate of the judgment debtor from the date of the filing of a transcript of the docket of such judgment in the office of the recorder of the county in which the real e tate is situated. Jurisdiction. Justice courts have juri ·diction to the amount of 200. District courts have unlimited original jurisdiction. Probate courts hold six terms annually, and have ordinary probate jurisdiction. District courts and probate courts are courts of record. Liens. Every person performing labor upon, or furnishing materials to be used in the construction, alteration, or repair of buildings, etc., ha5 a lien upon the same for the work done, or for the materials furni bed, but every original contractor claiming the benefit of the lien law must, within ninety days after the completion of any building, etc., file with the county recorder a claim showing the amount of his demand remaining due him, name of the per on by whom he was employed, and a general statement of his contract; also a description of the property to be charged with the lien, which claim must be verified by the oath of the party or his agent. Sub-contractors have sixty days in which to file liens. Landlords, innkeepers, and common carriers have the usual lien on property and baggage of tenants, guests, and shippers. ( ee Judgments.) A garage has a lien upon and may retain po ession of automobile for work done upon it or for parts or supplies furnished. Limitations. Ten years adverse possession of land under color of title and payment of taxes for such period, bars all actions. Infants, femme covert, persons of unsound mind, imprisoned, or beyond the limit of the United tates, excepted, and have one year after removal of disability in which to bring act.ion. All other actions must be brought as follows: Upon judgments of courts of record, within seven years; on bonds, promissory notes, bills of exchange, or other contracts in writing, and upon judgments of any court not of record, within six years; on open accounts and unwritten contracts, injuries to property, conversion of personal property, relief on account of fraud, within four years, against sureties on ofilcial bonds, and again ·t sheriffs and public officers, within two years. Actions of replevin must be brought within one year after right of action accrued. Married Women. (See Dower.) May sue and be sued as femme sole. J\,lechanics' Lien . (See Liens.) lortgages of Real Property. (See also Chattel Mortgages.) There is no statute relating to mortgage on real estate, except that they mw,t be executed and recorded in the same manner as deeds. The husband may mortgage his separate estate without the consent or signatw-e of his wife, and wifu may do the same. (See Conveyances.) Notes and Bill of Exchange. (See Bills and Totes.) Partner hips, Limited. Limited partner hips may be formed by two or more persons for the transaction of any mercantile, mechanical manufacturing, or other business, except banking or insurance'. Such partnerships may be general or special. Dis olution of all partnerships must be published in newspapers of general circulatiou. Probate Law. ( ee Claims Against Estates, Descent and Distribution, Executions, and Administration of E tate .) Prote t. Any notary public may make protest of bills of exchange, acceptances, pro mi sory notes, etc., for non-payment. The certificate of a notary, under his oillcial seal, as to presentment, demand nonpayment, or non-acceptance, and notices to parties, shall be prima facie evidence of the facts certified to. Fees for protest and certificate thereof S2 . 00; 25 cents additional for each notice. Records. (See Conveyances.) Redemption. Real estate sold under execution may be redeemed by the execution del>tor within one year, by paying to the purchaser the purchase money with interest thereon at 12 per cent. Real estate . old for t!1,xes may be redeemed within three years, but the debtor shall pay rnterest at one per cent per month on the purchase money. The purchaser under execution is entitled to the growing crops and the rents and profits. When property is sold under a foreclosure   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1922  BANKING AND COMMERCIAL LAWS-NEW YORK  ------------------  proceeding the mortgagor ha.s nine months within which to redeem s:,:~e!>l. paying the amount of the debt and costs, with 12 per cent  of any other state or territory, within the jurisdiction of their courts by the mayor of any city, or by a New York commissioner, or any officer of such state or territory authorized by its laws to take acknowledgments, or proofs or deeds to be recorded therein. When acknowledged as last above stated, there must be obtained a certificate "under the name and official seal of the secretary of state of the State in which su<'h officer resides, or under the name and official seal of the clerk reg_ister, recorder, or prothonotary of the county in which such officer resides, or the clerk of any court thereof having a seal specifying that the officer was authorized. etc." Provision is made by law for acknowledgments and proofs in foreign countries, also Cuba, Porto Rico, and Philippines. "Si!te ~~knJ~'1-~;~t by an individual is in the following form:  Replevln. A:ny person entitled to the immediate possession of p~rsonal proper~y may have a ~nit of replevin for the same, upon ftlmg an affidav1d that he is entitled to the immediate possession of the property, t,hat the same was wrongfully taken or is wrongfully detained by the defendant, and that the plaintiff's right of action accrued within one year. Before the writ is served, plaintiff must give bond to the officer conditioned to hold him harmless, make return of the property, if a return be adjudged and pay all costs that may be adjudp;ed against him, the affidavit to be made and bond executed by the plaintiff. or some responsible person for him. If the. plaintiff fail in his action, or to prose<'ute the same, defendant is entitled to a return of the property, or its value at his option, and is double damages for the detention of the property. No cross replevin ~~~d~d but defendant may retain pos.session by giving a forthcoming  County of . ............. } ss. City of................. ' On this ........ day of ............ in the year one thousand nine hundred and .......... before me, the subscriber, personally appeared . . . . . . . . . . . . . . . . to me personally known to be the same person described in and who executed the foregoinrr instrument, and he .......... . . acknowledged to me that he executed the same.'' The acknowledgment by a corporation is as follows: "State of New York ..... I County of ............• ! ss: On the .......... day of .......... , in the year ... . .... , before me personally came ................ to me known, who being by me duly_ sworn. did depose and say that he resides in .... .' ........ . that he 1s th~ (presid~nt or other o~cer) of the (name of corporation), the corporat10n described m and which executerl the above in.·trument· that he knows the seal of said corporation; that the s<'al affixed to said instrument i,; such corporate seal: that it was so affixed by order ~~!\e t~~~!to o;/f[~tg~e~~ said corporation, and that he signed his (Signature and office of officer taking acknowledgment.) " Administration of ~ tates. The admini<;tration of estates is committed to surrogate's c-ourts. In ca es of inte.<;tacy. letters of admini<;tration are to be granted to the relatives of the deceased entitled to succeed to the personal property of decedent, who will accept the same in the following order: 1. To the surviving husband or wife. 2. To the children. 3. To the grandchildren. 4. To the father. 5. To the mother. 6. To the brothers. 7. To the sisters. 8. To any other next of kin, entitled to share in the distrihution of the estate. If no person entitled to take or share in the estate will accept administration shall be granted (a) To the public administrator. (b) To the County Treasurer. or to the petitioner in the Surrogate's discretion. (C) To any other person. Affidavits may be taken by any officer authorized to administer oaths including commissioners of dee<ls and notaries public, the latter al ·o in counties other than for which they are appomtcd. upon their filing certiflc'ates in such county. Arbitration may be resorted to, upon disputed questions. the p_ractice being regulated by the code of civil procedure. (Chap, 17 tit. 8.) Assliaimen t and In olvency. Statutory provision exists regulating the making of general assignment. in tru. t for the benefit of creditors. (Laws 19!)9, Chap . 17,_ Art. 11) . (as amended by Chap. 360, Law 1914). ,, ages or salanes of emploves for services rendered within three months prior to the assiii1ment not exceeding $300, to each employe are p eferred over all other debts: the debtor may create other preferences to the amount of one-third tn value of the assigned estate left after deducting such wages or salaries and the costs and expenst'S of executing the trust. Also rcirulating the filing of inventory, the giving of bonds and accountinf.'I' by the assignee. Tht> court has power to remove a signecs, and may re{Juire creditors to present claims within a period to be prescribed, notic-e whPreof is to be given by advertisements. etc. The dividends pa.Id by such an assignee need only he applied upon the deht of the a si~nor. and do not discharge or satisfy the whole indebtesness of the assignor. Statutory provi. ion also ex· ts for a resident in. olvent debtor to be discharged from his debts upon hi<> writ ten petition and the written consent of un. ecured c-reditors whose claims amount to not less than two-thirds of all the debts owin~ by the petitioner to creditors residing within the United tates. (Laws of 1909. Chap. 17, Art. III.) This proceeding is rarely resorted to. Attnchment may Ii-sue in actions to recover a sum of money only as damages for breach of contract, wrongful conversion of p'ersonal  Taxation. Taxes have the force and effect of a judgment against the person as.sessed and constitute a lien upon real and peN-onal property. Truces become delinquent, one-half the first day of December of the year for which the same was leYied, and the other half the fir ·t of June following, and such taxes shall, from respective dates of delin-  on~  0  ~~eJg: !~I:r~;~~~J;!te I~J:c~f! ;~~l, ~=rm~fl~h,~no~n~:ig; agent of land, ff known. After sale certificates draw interest at the rate of 1 ½ per cent per month. Real estate sold for taxes may be redeemed within three years. Exemption to amount of $200 allowed to heaq of family residing in State. (See exemptions.) Irrigation, reservoir. and railroad companies exempt under certain conditions for a term of years. Net value only of the annual output of mines taxed. Suit may be brought to collect amounts in excess of $25. "\'\ ills. Any verson of t!le age of twenty-one years or upwards. and iJ? sound mllld, may dispo e of by will all his property, except what IS sufficient to pay his debts. Two or more witnesses shall be sufficient. The witnesses to a written will must be present, see the testator sign the will, or some one sign ft for him at his request as and for his last will and testament, and must sign as witnes.ses at his request. in bis presence and in the pr ence of each other. Any will executed in any foreign jurisdiction sufficient to convey the title or real estate in such jurisdiction, shall be valid in this State to the same extent as in the jurisdiction where made. All written wills are irrevocable. except by specially mentioning it in a subsequent will and declaring that ht. thereby revokes the same or by a subsequent valid will disposing of the same property. The probate judges have ~ower to qualify and app~ove wills after hearing the evidence of the witnesses who attest the will, and any other facts connected with the execution of it. If the probate judge finds everything to be legal and proper he approves the will, but if not, then he returns it to the party applying for its approval. with his reasons for failing to approve the same. The person to whom it is returned may present the same to the district court at the next regular term held in the county for its approval or clisnpproval which is final. ' Workmen's Compensation Act in effect June 9, 1917, applicable only to certain occupations and by mutual consent of employer and employee.  r:~~  ~~~~:~rrr~~r~ur:ro~g?u  0  ~~l~~P;{1ef~u 1~ c°a~J~:n3:ar~ ;~~; the cause of action aro-;e in this state where act.ion i · brought by an executor or administrator. where the defendant is either a foreign corporation, or non-resident. or has left the tate. or conreal himself to avoid service, or bas removed from the tate. or sold, ru ·igned. secreted or is about to remove sell, a sign. or ecrete his property with intent to defraud creditors, or where for the purpore of procuring credit or an extension of credit, a fal e tatement was made in writing, under the hand and signature of the defendant, or a duly authorized agent. made with his knowledge and acqui cence, a to his financial responsibility or standing, or where the defendant, being an adult, has been continuou. ly without the tate of • e,v York for more a~~., ~~t hrsag:h:u:~ ignation of a person upon  ::gr:to :~!~  SYNOPSIS OF  THE LAWS OF NEW YORK RELATING TO  BANKING AND COMMERCIAL USAGES Prepared and Revised by GEORGE J. HATT, 2d. Attorney at Law Albany. (See Oard in Attorneys' List.) AcknowledJ.rD}ents must be made within· the State, before a justice of the supreme court: or within the district wherein such officer ls authorized to perform official duties, before a judge, clerk, deputy clerk, special deputy clerk of a court, a notary public, or the mayor, a recorder or a city. a justic-e of the peace, surrogate, special surrol{ate. special county judge, or commissioner of deeds. (No special form. aeparate and apart from her husband, etc., now required for married women.) If made without the State, they may be taken by judges of United States courts judges of the supreme, circuit or superior court  1  Banks. The constitution prohibits the le~isla.ture from passing any act granting any special charter for banking purpos ·:.; but corporations or associations may be formed for such purposes under genf'ral laws. On April 16. 1914, the present banking act becam a. law. This act repeals virtually all previous laws on this subject and covers the entire banking field. The act expr ly tnclud every private banker engaged in the bu iness of private banklnp; in any city of the :tate. 1. Who makes use of any office ign bearing thereon the word "bank," "banker," "banking." or any derivative or compound or the wor_d '.'bank," ~r any word in a forei"'n language having the same or s1m1lar meanmg , or who makes use of any exterior sign bearing thereon any such word or word·· or any words wh tever to indicate to the general public that such person is engaged in the business of a private banker: or 2. Who payi: or credit interest, or pays, credits or gives any bonus or gratuity or anything, of value except on ct•rtificate · of deposit actually outstanding at the time this act tak t!ll'ect to any depositor on a depo.it balanc-e of (a) l · than $500, if such private banker is engaged in busin · · is a city or the first class, or (b) I · than 300, it such private banker ls engaged in business in a city of the second clas.~. or (c) less than 200, if such private banker is engaged in bu in089 in a city, of the third class: or 3. Who rec-eiv money on deposit for afekeeplng or for transmission to otheri; or for any other purpose in uch ums that the average of the eparate deposits so received by . uch private banker since April 1st, 1914. or during any twelve succ ·ive month.<>, or for such period, lf l than twelve months that uch private banker bas been engaged in such busin • exclu ive of dividend checks coupons or other small collection items collected by such prlvat b. nker for customers in the ordinary course of busin , is (a) less than $500, if such private banker i engaged in such bu.sin · · in a city of the flrst  BANKING AND COMMERCIAL LAWS-NEW YORK clas having a population of over 1,000,000, or (b) less than S300, if engaged in business in any other city of the first class, or (c) less than $200, if engaged in business in any city of the second class, or (d) less than S l 00, if engaged in such business in any city of the third class. The following are some of the more important subjects under this article : Verified certificate to be submitted by private banker to department; Conditions precedent to transacting business; Rights of private banker under authorization certificate; Permanent capital, increase or decrease ; gegregation of investments of capital and deposits, how title to be taken; Depositors preferred in case of insolvency; Annual report of unclaimed. depo. its; Deposit of securities ~th the superintendent of banking; Investment of permanent capital and deposits; resei-ves against deposits. etc. Five or more persons may form a corporation to be known a.c, a. bank. In a village whose population does not exceed 2,000, a capital of 125 ,000 is required; where the population exceeds 2,000, but does not exceed 30,000, $50,000 is the capital required, and not less than $100.000 elsewhere. Provision is made for circulation and a deposit for security therefor. Stockholders of all banking corporations are liable to the extent of the amount of their stock at par, in addition to the amount invested in such shares. for all debts and liabilities; bill holder . in case of insolvency shall be entitled to a preference in payment over all other creditors' of the bank. Quarterly reports are required to be made to the superintendent as of a date designated by him by all private iwings Banks bankers, trm;t companies and banks of discount. are required to report on or before February 1st and August 1st of each year which report shall state its condition on the morning of Januarv 1st and July li::t in said year. The superintendent of ba.1;1-ks is given authority to examine the books of any_ bank. No cor~orati(?n other than a moneyed or insurance corporat10n may do busmess m this State with the words, "trust." "bank," "banking," "insurance," "as·urance," "indemnity," "guarantee," "gu_aranty," "savings," "investment," "loan," or "benefit," as a :oart of its name or corporate title. The genera.I banking act also provides for the organization and . management of savings banks and trust companies. Banks of discount and depo it shall maintain total reserves agau~st lts aggregate demand deposits as follows: 18 per cent of such deposits if located in borough having population of 2,000.000 or over. 15 per cent If in borough of 1 .000,000, 12 per cent elsewhere_ in state. ::\!emJ?er of a Federal Reserve Bank may maintain such portion of reserv • wtth said Fodera.I Bank as required o_f its members. ~ny part. of reserves in excess of 4 per cent of deposits may be deposited, subJect to call, . With federal reserve bank in district. Trust companies having their princip~I place of. bu. mess or a branch office in a borough of this Rtate, havmg population of2,000,000, are required 'to have a lawful money re erve of fifteen (15) per cent, in borough of 1,000,000 population 13 per cent, and in all other pla~es in the State ten (10) per cent. The amount of re. erve to be carru~d on hand is dependent upon location. Any part of _re...;erves _on band m excess of 3 per cent of such deposits. may be deposited , subJe<'t to call, with a federal reserve bank In district where the trust company ls lo<'ated, reserves on hand not so deposited shall consist of gold, gold bullion, gold coin, U. S. gold certificates, U. S. N'otes, or any form . . of currency authorized by laws of the U. S. . Foreign hanking corporations may transact !n this tate the business of buying selling paying or collecting bills of exchan~e. or of i. suing let.ters 'or credit or of receiving money for transm1 ·Ion or transmitting the same or of making ·terling or other loans. i~ the corporation is authorized by its charter to _carry on su_ch busme. s by paying a license fee of S250 a year. submittmg to, UJ?ermtendent of Banks exemplified copy of Its charter and by-laws, designating superintendent a.c; attorney in fact to accept seryice of p1•ocP_-;s an.d otherwise comply with -.:ecs 144-147 of the Banking Law. and receive from the superintendent of· banks a license authorizing it tu transact such bm,lness. _Payment ot savings nnnk Deposits. Deposit in_ na1:1e of any mrnor is free from control of all pei:sons, e~cept creditors, and the receipt of such minor for such deposit is vahd to the bank. Any deposit m tru -t for anot11er, in the event of the _death of the trustee may be paid to tlte per ·on for whom the deposit was made, in the absonce of notice of the existence of a legal trust. A deposit in the names of depositor and _anoth~r porso~ and m~de payable to either or the survivor, may be paid to either durmg tbe lifetime of both or to the surdvor after death of one. Rlll. of E~chan~e. (See otos and Bills of Exchange.) Bulk Sales. ( ee Personal Property Law.) Chattel Mortgages. (See Mortgages.) Con olidnted Laws. The Legislature of 1909 passed a lar~~ n~mber of compiled statutes reported by the Statutory Con o 1dation Board, known as .. Consolidated Laws," to..distinguish th~~ from the "Revii;ed Laws," "Revised Statutes," and General Laws heretofore in force in this State. Conveyances An estate or interest in real property other than a lea.c; 0 for a term not exceeding one year, _cannot be _created or granted except by a deed or conveyance, in writing: subscribed by the person anting the same, or by his lawful ae;ent ther~unto creating and authorized by ~iting. This does not affect t?e power of the testator ln the dL<;position of hi. real proper~y by will. Deeds must be acagainst a sub·equent knF~wledged and take effect fromd dd~hverordoni,f th r . . ,very conveyance not recor e is v 1 • e Purchaser in ood faith and for a valuable con 1derati(?~ r?m same vendor, ghis heirs or devisees, who e conveyance 1s first duly r~~f~~wled ent must be made by the p~rty who .executes the conveyance ~some other per on who Is a w1tne. to its execution, and at the' same time subscribed bis name to the conveyance as a t · I in the conveyance to release her dower. Wire&c,. Th IllaJtried woma'!l- mus JO n R . -eel tatutes relating to the seal0 b:e~r ~~itte~t1rrom the present Real Property inge Law, but it i. the universal pral'tice to affix a ~eal and the forms of t d I the "Real Property Law refer in the atte. tadeeds · tion cl~~<;,~rri~t: affi~ng of the seal. The word ", ea!" or the letters "L. s." 0 osite the signature will, how.ever, su~ce ru the seal of a person. I~P is otherwise as to corporat.ions, which should adopt a seasl and affix It to the conovoyfatnhce.Conc;olidated Laws being hapter Full c r' • f e , ection 258 of Chapter 5 ove52 of the Laws of 1909 , provides the following orm or a Deed with Full Covenants nant Deed: This Indenture, made the .. • - • • • •day of· · · · · · · · · · · · · in the Year nineteen hundred and .... - • • · • · , between· · · · · · · · · · · · · · · · · · of (Insert residence) of the first part, and ................ of (insert res~ence) of the second Pfcit. arty of the first part, in consideration itnesseth, that the sn ~ money of the United tatei, paid 0 · · · · • • • • • • •dollars, ladfu t doth hereby grant and release unto bf· th~ party of the secon ga;a'rt bis heir and a.c;.c,igns forever (deth ~fiorbe appurtenances ~d all _the estate and sc:lpi'i~tfa~y · ge er0 th first part in and to said prenuses. right 8 To ~~;~elna~rro {10 th·e above granted prem~es unto the Raid party of the second part, bis belrs and assigns _forever. And the said part.y of the first part doth covenant With said party of the second Part as follow•:  trr~~dr~:t~  ° ·  tli  f~  13   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1923  1. That the party of the first part is seized of said premises in fee simple, and ha.c, good right to convey the same. 2. That the party of the second part snail quietly enjoy the said premises. 3. That the said premises are free from lncumbrances. 4. That the party of the first part will execute or procure any further necessary assurance of the title to said premises. 5. That the party of the first part will forever warrant the title to said premises. In witness whereof, the said party of the first part ha.th hereunto set his hand and seal the day and year fir. t above written. In presence of: The above enactment does not prevent or invalidate the use o other forms. Corporations. Insurance, banking, railroad, transportation, and busine corporations may be formed under the general laws of the State. Foreign Stock Corporations (other than moneyed corporations) . before doing busine'>s in the State, are required t,o obtain a certificate of authority from the secretary of State. "No foreign stock corpora~i~•e ~~~g ~i;i~~~\/:ctt~"a.J!a~~ iih~l t~:i~~:i~ ~gfutac~ir~~r ifo making of such contract it shall have procured such certific-,ate." "This prohibit.ion shall also apply to any 3/ signee of such foreign stock corporation, and to any person claiminK under such a.'>signee or such foreign stock COt'poration or under either of them." What constitutes "doine: business in this State" depends on the particular tate of facts in each given case: in general it may be said that the selling of goods in this state by mail or through traveling salesmen does not constitut.e "doing business." Foreign corporationc:; doine: business in this State may acquire real property for its corporate purpose,· and convey the same in the . ame manner as a domestic corporation. Foreign corporations may acquire on sale in foreclosure of a mortgage held by them or upon any judgment or decree for debts due them, or upon a settlement to secure such debts, real property in this State covered by or subject to such mortgage, juagment, decree, or settlement, and may take by devise any real property situate within this State, and hold the same for not exceeding five years. An a . ignment for the benefit of creditors made in 1,his tate by an insolvent foreign corporation, valid uncter the law of Its domicile, will be recognized a.s valid here. (Vanderpoel vs. Gorman, 140 N. Y., 563. Jan., J 94.) . o domestic or foreign corporation. except religious, charitable or benevolent corµorat.ions, are authorized to do buc,iness in the State of New York unless its name has such word or words, abbreviation, afflr: or prefix therein or thereto as would clearly indic-ate that it is a corporation as distine;ui ·hed from a natural person, firm or co-partnersnip, or unless such corporation u. es with it corpo:-ate name, in this State, such an amx or prefix; this provic,ion relates only to corporations authorized to do business in this State, or to domestic corporations formed since January 1, 1912. Courts. Terms and Jurisdiction. The supreme court has unlimited jurisdiction. There is a county court for each county (except New York Count.y) having juri dirt.ion to the amount of $2,000, in actions where t.be defendant is, or if there is more than one, where all of the defendants are, residents of tho county. Justices of the peace have jurisdiction in actions on contract where the sum claimect does not exceed S200, and district courts of the city of New York, where the sum does not exceed 2,m, the city court of the city of Albany, where the sum does not exceed $1,000, and the ::\1uniclpal Court of the City of New York where the amount does not exceed $1,000. Days or Grace are abolic,hed. Deeds. See Conveyances. Depositions. The deposition of a party or of a person not a party wit,hin this State, in an action brought or to be brought, may be taken where shown that such testimony is material and nel'e sary in the prosecution or defense of the acrion: or if the action is penaing that the person to be examined i.· about to depart from the Stat.e, or that he is so sick or infirm as to afford rea:·onable ground to believe that he uch deposition, exc-ept that of a will not he able to attend tne trial. party taken at t,he inst.a.nee of an adverse pany, can only be u ed upon proof of the witness' inability to attend the trial. Depositions may  \~!  0  ~: ~~!eJ\~~!~?~ t~et~!ai~i~r 1:~~v~~ci~~l:t:J!iniJa~fo~ ~~~~~i questions or written interrogatories. Depositioni; may also be taken within the State for use without tile , tate in an action or special proceeding pending in a court without the tate, either in the United States or in a foreign country. A person who fails to respond to a subpoona for such examination i guilty of contempt of court. Depo itions may also be taken for use on a motion in any action or proceeding. Dower. (See Ma.rriea Women.) Executions will issue at any time within five years from date of judgment; afcer five yoors, leave must be obtained from the court. Executions may issue to two or more counties at the same time. There are no i::t.ay laws, unless an appeal is taken, when an undertaking securing the judgment can be given. On a judgment, in any case of over $25, after execution is returned qnsatisfled, defendant and others, including corporations, may be examined a.c, to the judgment debtor's property in proceedings supplementary to execution, and required to apply any not exempt in payment. 1,000 (to secure such exemption, Exemptions. Homestead, deed, or notice designating that the property is to be used as a homestead, must be recorded); necessary furniture, tools, team, etc .. $250, except w.aere execution is i ued on judgment for either work performed in the family as a domestic, or for the purchase price of one or ot to exceed 10 per cent of the more articl8l pecially exempt. earnings or income of a judgment debtor receiving $12 or more per week may be collected and applied on judgment by order of the court under a garnish e execution. False Pretenses. A purchase of property by means of a false pretense is not criminal, where the false pretense relates to the purchaser's means or ability to pay, unless the pretense is made in writing, and signed by the party to be charged. ,vhenever property ls purchased by aid of a statement relating to the purcha.-,er·i:: means or ability to pay, made in writing and signed, wherein he states that he keeps books of account, the purchaser upon failure to pay at maturity and during the period of ninety days subsequent to such failure must produce within ten days, upon request, his books of account and permit creditors to examine them. and failure to do o is made presumptive evidence of the falsity of such stacement, and the party so making t;he statement may be proceeded against criminally. False Statement to Obtain Property or Credit. Any person who knowingly makes, or causes to be made, directly or through any a11:ency whatsoever, any false statement, in writing, respecting his financial condition, or that of any peri::on, firm or corporation in whom he is interested, or for whom he is acting, for the purpose of procuring the delivery of personal property the payment of cash the makmg of a loan or credit, the extension of credit, the dic;count of an account receivable, or the making, acceptance, discount, sale or endor ement of a bill of exchange or promissory note for the benefit of either himself or of such person, firm or corporation, or, knowing that a, false statement, in writing, has been made, procures upon tne faith thereof any of the things of benefit above mentioned, or who represents on   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1924  BANKING AND COMMERCIAL LAWS-NORTH CAROLINA  -------  a later day, either orally or in writing, that such statement theretofore made, if again made on aid day, would be then true when in fact, t?e statement if then made would be false, and procures upon the faith thereof any of the things of benefit aforesaid is "'Uilty of a misdemeanor, punishable by imprisonment for not more' tha"'n one year or a fine of not more than $1,000, or both . . Garnishment. (See Exemptions.) Holidays. The term holiday includes the following days in each year: The first day of January, known as New Year's Day; the twelfth day of February, known as Lincoln's Birthday; the twentysecond day of J!'ebruary, known as ,vashington's .Birtnday· the thirtieth day of May, known as Memorial Day; the fourth day or'July known as Independence Day; the first Monday of September, known as Labor Day; the twelfth day of Occober. known as Columbus Day· and the twenty-fifth day of December, known as Christmas Day'. and if either of such days is Sunday, the next day thereafter· each ge~eral election day and each day appointed by the president of the Umted States or by the governor of this State as a day of genP.ral thanksl!:iving, general fasting and prayer, or other general rt>ligious observance. The term half-holiday includes the period from noon to midnight of each Saturday which is not a .holiday. ·where a contract by its terms requires the payment of money, or the performance of a condition on a pubhc holiday, such payment may be made or condition performed, on the next business day succeerung such holiday with the same force and effect as if made or performed in accordance with the term of the contract. Husband and Wife. (See Married Women.) In~olvency. (See Assignment and Insolvency.) Interest. The legal rate of interest is fixed at 6 per cent. All notes, bonds, contracts, securities, etc., ,, hereby a greater rate is reserved, or taken, or agreed for, are absolutely void, and the lender can recover neither principal nor intere t in such case. , but corporations cannot plead usury as a defen e. Usury, in certain cases such misas loans on household furniture, etc., is al o punishable as demeanor by fine or imprisonment, or both. State banks have been placed on the same footing as national banks as regards usury, and are thereby exempt from the extreme penalties mentioned above. On demand, loans of , 5,000 and over, made , ith warehouse receipts, bills of lading, certificates of stock, certificates of deposit, bill of exchange bonds, or other negotiable instruments, pledged a collateral, it is lawful to receive and collect, a compensation for making such advances, any sum, to be agreed upon in writing by the parties to the transaction. Judgments. Judgments docketed in a county clerk's office bind, and are a charge upon, real property for ten year , which the judgment debtor has or acquires within that time. A judgment i presumed to be paid after the expiration of twenty years from the time when tbe party recovering it was flr. t entitled to a mandate to enforce it. Confession or an offer of judgment can be made in an action. Married woman may confess judgment. Limitations of Suits. Contracts, express or implied, except those under seal, six years: recovery of real estate, upon judgments of courts of record and ealed in truments, twenty years. Revivor: Part payment or new promise in writing . .Married ·women may take, hold, mortgage, and convey real and personal property. A married woman may contract with her husband, or any other person, to the same extent, with the effect, and in the same form as if unmarried, and sbe and ber separate estate shall be liable thereon, whether the contract relates to her separate estate or otherwise, and in no case shall a charge upon her separate estate be nece sary. A married woman may convey real estate directly to her husband, and the liusband may convey directly to his wife. Widows have right of dower. Married women may confess judgment. 1\-lortgage!'I must be executed and recorded ame as deeds. Where containing a power of sale, may be foreclosed by an action brought for the purpo e, or without intervention of court (by advertkement.) There is no redemption under a mort"'a~e sale. Chattel mortgages, except where the possession of the property mortga~ed pas es to, and is retained by, the mortgagee, must be flied forthwith, or are void as again ·t creditors and innocent purchasers. 'uch mortgage ceases to be valid in one year, except as to the mortgagor or his representative, unle a copy thereof is refiled annually with certificate of the mortgagee as to the amount unpaid thereon, and this copy, mortga"e, and certificate constitutes a renewal of the mortgage for one year. All mortgages on real estate are taxable at the rate· of five mills on each dollar of the amount of the principal debt, payable at the time of recording the mortgage. Notes and Bills of Exchange. Negotiable instruments are defined by Chapter 38 of the Consolidated Laws. 'ection 20 provide· as follows: " 'ection 20. Form of ·egotiable In ·trument. An instrument to be negotiable must conform to the following requirements: 1. It mu t be in writing and ·igned by the maker or drawer; 2. :Must contain an unconrutional promise or order to pay a um certain in money; 3. fust be payable on demand, or at a fixed or determinable future time; 4. l'lfust be payable to order, or to bearer; and 5, where the in trument is addre. ed to a drawee, be must be named or otherwi ·e indicated therein with rea onable certainty." Its negotiability is not affected by a provision which authorizes the sale of collateral secll!'iLie · in case the instrument be not paid at maturity, or authorizes a confe.. sion of judgment if the instrument be not paid at maturity; or waive· the benefit of any law intended for the advantage or the prot ction of the obligor; or gives the holder an election to require something to be done in lieu of payment of money, or provides for the payment of costs of collection or an attorney's fee in ca<;e of non-payment at maturity. It is not neces ary that pal?er should be made payable at a bank or any fixed place. To charge mdorser, notice of non-payment must at once be given to him. The time of maturity i regulated a, follows by ",'ection 145. Time of .. laturity. 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 ne t . ucceeding busine s day. Instruments falling due or becoming payable on ,'aturday are to be presented for payment on the next succeeding business day, except that instruments payable on demand may at the option of the holder, be pre_·ented for payment before 12 o'clock, noon, on Saturday, when that ontire day is not a holiday. "( 'ee Holidays.) Personal Property Law. By Chapter 571, Laws of 1911, in effect September 1, 1911, the LegMature enacted a law in relation to sales of ~oods. This enactment i: a codiflcat-iou of the entire law as to such sales and makes extensh e chim"'e. in the common law upon the subject. "A contract to sell or a :ale of an.v goods or chose in action of the value of 50 or upwards shall not be enforceable hy action unle ·s the buyer hall accept part of the good: or choses in action, . o contracted to be sold or ·old, nd actually rec i.-e tho same. or give something in earnest to bind the contract, or in part payment, or unless some note or memorandum in writing of tbe contract or ale be signed by the party to be charged or his agent in that behalf." This doos not apply to goods to be manufactured by the seller e'peclally for the buyer and not sul able for sale to others in ordinary course of lm:,;ines:,. The statute al ·o d1>fln :,; ,varranties, expre · and implied, etr.  The transfer of a stock of goods in bulk i ·\'oid as a"'ainst creditors unless they have five days' notice of the proposed transfer. (Chap. 507, Laws 1914.) Probate Law. (See Wills.) Protest. (See .,.otes and Bills of Exchange.) (See Personal Property Law.) Sales of Good Statute of Fraud . (See Personal Property Law.) Tn;xes: Lands 1!1aY be sold for taxes when two years delinquent. Pubhcation of sale 1s made for twelve weeks in the county paper and t~o years after ale are. allowed for redemption, the owner having the nght to redeem by paying the purchase money and interest at 10 per cent per annt.U!1, . A 1:1ortgagee (where the instrument is duly rec9rded) has a :5unilar nght of redempt10n and upon filing a notice of his m~rtgage, its date, rec~rd, etc., with the proper officer, is entit.led pecial prot9 pot1ce before the tax title can cut off his mortgage. V1S1op~ for sales of lands for taxes exist in several cities and counties. In c1t1es, assessments for local improvements may be enforded by sales of the houses and lots asse sed. . ·wms. All pe_rsons, _except idiots, persons of unsound mind, and mfants, may devISe their real estate by will. :Male:,; of eighteen years and upward, and females of sixteen years and upward, may bequeath personal estate. Wills must be subscribed by the testator m the presence of two witnesses, each of whom must sign his name at the end of the will, i:1-t the reque t of the testator, who must acknowledge and decl?-re the mstrument to be his last will. A will of an unmarried womaJ?- is revoked by sub ·equent marriage. A deyi.se or bequest to a witness w.J:;ose testimony is necessary to establish the will is void. '.!'he Code of Civil Procedure regulates the practice of probating wills m the surrogates courts of the several counties of the State.  a  SYNOPSIS OF  THE LAWS OF NORTH CAROLINA RELATLTG TO  BANKING AND COMMERCIAL USAGES Revised by ROBERT H. SYKES, Durham, • -. (See Card in Attorney's List. ) Account and Claim , Proof o . In any action iu.c;tituted in any court of the • tate upon an account for goods . old and delivered, for services. rendered, or labor performed or upon an oral contract for money loaned, an itemized statement of said account. properly verified. shall be received in evidence, and shall be deemed prima facie evidence of the correctness of said account. All creditor: of the maker of a deed of trust or asrignment must file with the clerk of the superior court a statement under oath, that the amount claimed is reditors of a justly due, after allowing all credit and off.' t . de ·edent mu. t present their accounts and claims to the administrator or executor within tweh·e months after publication of notice of administration. But if they fail to do ·o. and the p rsonal repr ·entatiYe has not disbur:;ed the a! sets of the estate. the creditor mny still recover of the personal repr ·entative. If he ha,· di bur eel the a et.-. the creditor may recover of the heir.-. deyi:·e , legate s, or next of kin who may have received property of the inte:;tate . Acknowled~ent. and Probate of Deed . E\'ery conveyance of land mw t be acknowledged or proved and re2:istered in tbe countY where the land lit>.s. All deeds conveying land in thi. tate, or letter· of attorney, or other instruments requiring registration, may be prove_n or acknowled11:ed (1) before any one of the following otllcer. of this State: A justice of tlle supreme court. a judge or he up rlor court, a commi:doner of aflidavits appoint.ed by the go •ernor of thi · State. the clerk of the supreme court, a cl rk of the. uperior court, a deputy clerk of the superior court, a clerk of tbe criminal cour , a notary public, or a Justice of the peace of tni:· tate, or ~) before any one te~~,rgri 'ta6~\~~ t~~1l~iJtrii~\ of. gf~.h~l~~~,~~~~~aTC~~t of and of forcignf countries under the dominion of the nited ._;tat countrie ·, _ ny judge of a court of record. any clerk of n. court o recorrl. any notary public. any mayor or chief ma i trate of an inco~porated town or city, any ambas ador, minister. con. ul , vice-con. u • vicu-t·on-.ul general, or commercial agent of he linlro<l . tat:e . The execution of :uch Instrument ma: be prov n or aclrno,\ledged before auy ju. lice of the peace, or any 'tate or Territory of the Tnit .. tate.-., but \, hen such acknowlcd •m nt or proof ls taken t y tho la t named  :~d  ~c:;3rgf  BANKING AND COMMERCIAL LAWS-NORTH CAROLINA officer residing out of the county in which the instrument 1s offered for registration, the clerk of some court of record in the county where such justice resides must attach his certificate that the justice was at the time an acting justice of the peace of such county. Administration of Estates. Letters of administration are granted by the clerks of the superior court: 1. 'l'o the husband or widow. 2. To the next of kin in the order of their degree, when they are of different degrees; if of equal degree, to one or more of them at the discretion of the clerk. 3. To the most competent; creditor who resides in tho State and proves his debt on oath before the clerk of the superior court. 4. To any other person legally competent. A resident of another state may not act. 5. There may be in every county a. public administrator, to be appointed by the clerk of the superior court, who may obtain letters of administration, if the party entitled does not apply in six months, or if the per on entitled renounces. Where no one applie within six month.', all per ons are deemed to have renow1ced, and the clerk may now appoint any dh;creet person. The following persons are incompetent to qualify as administrators, namely: A minor, a non-resident, an alien, a person who has been convicted of a felony or one adjudged by the clerk incompetent by reason of drunkenness, improvident or want of understanding, or one who refuses or fails to give the bond required. Affidavits may be made before the clerks of the supreme court and superior courts, notaries public, and justices of the peace of the State; and also before commissioners of deeds for .. Torth Carolina residing in other states, and clerks of any court of record for another state. A pleading may be verified before a notary public in or out of the State, as well as before the other officers above named. Aliens. Resident or non-resident aliens may take real property by purchase or descent or other operation of law. Arbitration. '!'here is no statute regulating arbitration. The agreement of the parties as expressed in the "submission" govern ·. Awards are construed liberally and will not be aset side because of a mistake of law unless it appears that it was the intention to decide according to law. Arrest and Bail. The defendant may be arrested in certain cases pre cribed by statute. As ii;nment and In olvency. Debtors are not permitted by the state law to make assignments or deeds of trust with preferences of particular creditors. A general ru. ignment for the benefit of creditors will not affect any lien in favor of a creditor previously obtained. Attachments. A warrant of attachment against the property of one or more defendants in an act.ion may he granted upon the application of the plaintifl' when the action is to recover a sum of money only, or damages for one or more of the following cause . 1. Breach of contract express or implied. 2. Wrongful conver ·ion of per onal pl'operty. 3. Any injury to real or personal prope~ty in consequence of negligence, fraud, or other wrongful act. 4. lnJury to the person caused by neglip;ence or other wrongful act. The warrant of atti1;chment may be granted to accompany the ummons, or at any trme after the commencement, of the action. Banks and Banking. Any number of persons, not less than three, may associate t.o establish banks of discount. and deposit, to be known as comme1·cial banks, and also to estabUsn offices of loan and deposit, to be known as savings banks, or t-o establish banks having departments for both classes of business. The agwegate capital shall be not less than $25,00'), except at a bank organized in a city 01· town not exceeding 1,500 inhabitants can have a capital stock of not less than $5,000, and 5,000 inhabitants of not Je.,s t!1a1:1 10,000. The records of incorporation shall be executed m tnphcate a~d recorded in the ofllce of the superior court clerk of. the coun_ty_ m which the bank is located, in tho omce of the corporation comm1:s10n and in tbe office of the secretary of state. The bank shall not, commence business until the corporation commission 'ha!l have ascertained the amount of money paid in on account of capital, _the name and residence of each of its directors. the amount of capital ::;tock of which each is the owner in good faith, and whether the ba~k has complied with all the provisions of law_. . ""\Vh_er~upon a certificate to this effect from the corporation comm1ss1011 is issued to the bank. Upon its incorporation the bank may exerci. e all_ of su~h pow_ers as are necessary to carry on the busineS! of bankrni:r, discounting o_r negotiating promi5Sory notes, drafts, bill of exchange. :i,nd other evidences of debt by receiving depo,'its, by buying and . ellin!!' exchanges, by loaning money on personal security or real J?roperty. It may take and receive any intere ·t at the leg-al rate upon its loans. It m, Y purchase, hold and convey real estate, such as !nay_ be necessary for the convenient transaction of its businos. , which mvestment shall not exceed 25 per cent of its paid-in capital stock and pe_rmanent • urplu~. such as is mortgaged to it to secure loa~s. such a 1s conveyed t~ it In satisfactory deeds and such as 1t acquires b_Y sale on any executt(?n in its afvor. At lea t 50 per cent of the captt~l stock mw t be pa)d in before it commences business, and the remamder must be paid m monthly installments of at least 10 per cent, the parmont of 1:ach installment to be certified to the corporation co1:1m1ss10~. Provided no bank shall be authorized t-o comf!lence busme. s with less ~han paid in capital of S5,000. The delinquent stockholders. maJ. be sold out by the bank. The transfer of no tock h!),ll be _vahd agamst the bank so long a.c; the registered holder thereof 1· a d_1rector of tho bank. The stockholders shall be individually re;;pons1ble. and not one for another for all contra<'ts of the bank to t~o e. tent. of the Par value of their stock in addition to the amount mvested m such shares. Bills of Exchan~e and Promissory Note . Prot_est is not required ln order to ii.old the maker or endor er of a prom1s 'Ory note. or tho acceptor of a bill of exchange, but it is nece;,sary to hold the b'll f d drawer or endor. er of the bill of e.·cbange. Unless the contrary be plainly expre~. ec!, the en or: c: o. any 1 , negotiable bond, or prom is. •ory note 1s h~hle as a., U) e} , and .no demand upon tbe maker is neces·ary prev10u. to bring-111~ a~ act10n against the endorser. But this doe not apply to btll of exchange, whether inland or foreign, nor to not~,; which are made and become Operative a: contract-s beyond the linut~ of.the tatc, ~or tolendrsement made out of this State. It applles m tho:,e ca•e on Y " ere not only the endorsement in qucst,ion, but all !'-nte~e<le1Jt enJ1or: ~ rnont ,vere mado within this l"tate. A note s1guec. an cp or ~ in another state, but which was never _de~ivered until ncgqt1atcd m nlo t1ethis State i governed by the law of this St~to. ancI ugd{r 10 (? m1< mand ,rotcst or notkc of non-payment 1s req~ur endorsei A.11 'bonds bill' and note· for money wHh or thout; cal, and expressed or not to. be payable _to order. or for .':alu~, recel\' LI, arc negoti 11 · like manner as are mland bills of e. chan,.,e by cu. t of :Fngland Januarv 1st, Januar)· H>th, Febtom of a> ruary 22rer r~f\s2tll, ~fay lOth,.May 20th, July.4th, first rlonda! In Septombel and tbo day appomted by ~he go~ emor ~ a tha~ksgiving day, Tuesday after the first :\~onday 111 o, cmbe: '~ ?e_n ,a ge1:eraJ election is held aucl December 25th of ~ach and e, 01) ) ear., ai e PUhlic holiday::;, and whenever any ,uch h~hda~ sh~ll fall upon . w1following hall L>o a pubhc hohda~, and papers due day the ,r ·d or , Ionda)·~ shall he payable on the ~oxt ,;uc • edi11;gon .tlch busine&· clay. There is 110 di_ffcr •n~e between ~aturdaJ and anl other huslne:s da:v so far a. ncgotiablti m:trumen are CO!! ern d. . \\ 1en tho date of maturity fall: upon 'unday or a le al hohday, the m:tn-  f  im  Sug~~a~r  122  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1925  ment is payable on the next succeeding business day. Demand paper falling due on a Saturday not a holiday may be presented before 12 noon. The Negotiable Instruments Law, which is the same as the New York statute, was adopted in 1899, and is chapter 54 (Sections 2151 to 2346) of H.evisal of 1905. Claim and Delivery. In an action to recover the possession of personal property the plaintiff may, at the time of issuing summons or at any time before answer, claim the immediate delivery of such property. Ho must file an affidavit showing: 1. That the plaintiff is the owner of the property claimed (particularly describing it) or is lawfully entitled to the possession thereof. 2. That the property is wrongfully detained by the defendant. 3. The alleged cause of the detention thereof. 4. That the property has not been taken for a tax, as essment or fine pursuant to statute, or seized under an execution or attachment against the property of the plaintiff, or. if so seized that it is exempt by statute from such seizure. 5. The actual value of the property. The plaintiff must give an undertaking with sureties in double the value of the property, for its return to the defendant, if return thereof be adjudged, and for damages. The defendant may retain the property t-o abide t,he event of the action on giving bond to deliver the prope1·ty to the plaintiff and pay damages, if it be so adjudged. Conditional Sales. All conditional sales of personal property in which the tit-le is retained by the bargainor must be reduced to writing and registered in the same manner, for the same fee, and with tile same effect, as i provided for chattel mortgages; otherwise they are inoperative as against creditors and purchasers, for value, in so far as they reser\'e the title in the vendor. Corporations. lv1ay be formed, by any number of per ons, not le s than three, under the general statute, either with or without personal liability, by filing and recording a plan of incorporation or articles of incorporation, duly signed, in the office of the secretary of state. Thel'eupon the secretary of State shall record them and send a copy of the same to the clerk of the superior court of the county where the oflice of the corporation is located, who shall record the same in his office. Chartel's of corporations formed under general laws may be amended by proceedings before the secretary of state with whom the plan of incorporation was filed, provided there be no change of the busine 'S incorporated. Dome tic corporations may hold, purchase and convey real and personal estate, without limit, in and out of thee 'tate, and may take such property by devise or bequest. Any corporation created by another s1ate or foreign government may acquire by devise or otherwi. e, and may hold, nortgap;e, lease and convey real estate in this State, "for the purpose of prosecuting its business or objects, or such real estate as it may acquire by way of mortgage or otherwise in the payment of debts, provided the foreign government under whose laws such corporation was created be not at war with the United States at the time of purcha ing such real e tate. Foreign Corporations. Every foreign corporation before being permitted to do btLsine in the State of orth Carolina (railroad, banking, insurance. expre s and telegraph companies excepted) shall flle in the office of the secretary of state a copy of its charter, or articles of agreement, attested by its president and secretary, under its corporate seal, and a statement attested in like manner of the amount of its capital stock authorized, the amount act.ually issued, the principal office in this State, the name of tho agent in charge of such oillce, the character of the business which it transacts and the names and postofllce addresses of its officers and directors. And such corpora1,ion shall pay to the secretary of state, for the u e of the State, twenty cents for every $1,000 of tho total amount of the capital stock authorized to be issued by such corporation, but in no case le. s than :s;;.oo. Every corporation failing to comply with the provi. ions of this section shall forfeit to the , tate 5500, to be recovered with costs in an action to he prosecuted by the attorneygeneral, who shall prosecute such actions whenever it shall appear that this section has been violated. Acrs of 1003, page 1124. Courts. The supreme court is the appellate court of last resort. It sits twice a year. The superior courts have exclusive original jurisdiction of ail civil actions, whereof original juri diction is not given to some other court, and they have appellate jurisdiction of all cases determined by a superior court clerk or a just-ice of the peace. They sit twice a year in every county, and in nearly all of the countie oftener. Uerks ·of the superior cow·t have jurisdiC'tion of the probate of deeds, granting letters test3:mentary and _of administration, 3:p_pointment and removal of ~ard1ans, apprent1cmg orphans, auditmg of administration and guardian, receivers' and trustees' accounts, the appointment and removal of trustees. Their otnces are always open. Justices of the peace have original jurisdi tion of all civil actions founded on contracts, when the sum demanded does not exceed $200, and when the title to real estate docs not come into t,he controversy. They also havo jurisdiction concurrent with the superior courts of civil actions not founded on contract, wherein the value of property in controversy does not, exceed S.50. Da:rs of Grace. -'\11 bills of excba_nge p?yable within the state, at 1 sight in which there 1s an expre·s st1pulat1on to that effect, and not otberwi e shall be entitled to days of grace as the same are allowed by t11e customs of merc~ant :iJ1 foreign bill, of ~xchange p~yable at the expiration of a certam period af1er date on sight: Provided that no days of grace shall be allowed on any bill of exchange, promissory note, or draft payable on demand. Deeds. A scroll is a sufficient seal to a deed in North Carolina. When real estate shall be conveyed to any person, the same shall be held and construed to be a conveyance in fee, whether the word "heirs" hall be used or not. unless such conveyance shall in plain and expressed words, show or it hall be plainly intended by the conveyance or some part thereof, that tbe grantor meant to convey an estate of le. s dignity. 1f the deed conveys husband's lands, it should contain a clause releasing dower by the wife, although her signature and acknowledgment alone bars her right of dower. (See Acknowledgments and Probate of Deeds.) Depositions. Any party in a civil action or special proceedings may take the depositions of persons whose evidence he may desire to us . \\Trit.teu notice of the ti.me and place of taking a deposition, specifying t-hc name of the witne: , must he served by tile party at whose instance it is taken, upon the adver, e party or his attorney. The time for serving i;uch notice ,hall be as follows: Three entire day when the party notified reside within ten miles of the place where the deposition is to be taken; in other cases, where the party notified resides in tho State, one day more for each additional twenty miles, except where the deposition is to be taken within ten miles of a railway in running operation in the State, when one day only shall be given for every 100 miles of the railway to the place where the deposition is to be taken. "\Vhere a deposition is to be ta! en beyond the State, ten day ' notice of the taking thereof sball be given, wtien the party whose deposition is to be taken resides within ten miles of a railway connecting with a line of railway within twenty mil · of the place where the per.·on notified resides. In other ca!·es, where there are no railway· running as above pecified, twenty days' notice shall b given.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1926  BANKING AND COMMERCIAL LAWS-NORTH CAROLINA  Descent and Distribution. When any person shall die seized of an inheritance, not having devised the same, it c;ball descend according to the following rules: 1. Real estate lineall:v descends. 2. Female.s shall inherit equally with males. and younger with older children. 3. The lineal descendants shall represent their ance tors. 4. On the failure of lineal descendants, and when the inheritance has been tran. mitted by descent or derived by gift, de-vise or settlement from an ancestor, the estate shall descend to the next collateral relations of the person last seized, who were of the blood of such ancestor. 5. On the failure of lineal descendants, and when the inheritance bas not been so transmitted or devised, or when the blood of such ancestors is extinct, the estate passe. to the next collateral relations of the person la.st seized. 6. Collateral relations of the half hlvod shall inherit equally with those of the whole blood. 7. A person dying, without issue, and leaving no brother or sister, or issue -of such, the father, if living, shall inherit, and if nnt, the mother. 8. When a person shall die leaving no heir . the widow shall be deemed his heir. 9. Illegitimate children shall inherit from their mother. 10. Illegitimate children may inherit from each other. When an illegitimate child shall die without issue, his mother shall inherit from him. 11. The personal estate of a deceac;ed person, in case of intestacy, shall be distributed in the following manner: 1. If not more than two children, one-third to the widow and all the residue equally among the children and uch per. on. as legally represent such persons who may he dead. 2. If there are more than two children, the widow and all the children share alike. 3. If there be no child nor lep;al representative of a deceased child, then one-half of the estate to the widow and the residue equally to the nex-t of kin to the intestate, who are of equal degree, and those who represent them. 4. If there be no widow, then equally among the children and the legal representatives of the deceased children. 5. If there be neither widow nor children nor any legal representatives of the children. then the next kin of the intestate who are in equal degree and those who legally represent them. 6. If, in the lifetime of the father, any of his children shall die intestate without wife or children, then the father shall be entitled to all of the per.sonal property of such deceased child, but, if after the death of ttle father and in the lifetime of the mother, any of his children shall die intestate, ,vithout wife or children, every brother or sister, and the repre;;entatives of them, shall have an equal share witn the mother of tbe deceased child. 7. If there be no child nor legal representative of a deceased child nor any of the next kin of the intestate, then the widow, if there be one, shall be entitled to all of the personal e. tate of such intestate. 8. If any married woman die inte tate leaving one child and a hu. band, her personal estate shall be equally diYided between the child and the husband. If she leave more than one child and a husband, her personal estate shall be divided in equal portions and the husband shall receive a child's part: Provided, However, that this act shall not apply where the husband of the deceased woman is father of all the children, or their descendants of his deceased wife. Detlnue. (See Claim and Delivery.) Dower. The wife is entitled to one-third in value of all the land of which her husband was seized during coverture, including the dwelling house in which her husband usually re ided, for her lifetime. Dower, and all other rights in a husband's estate. are forfeited by elopement with an adulterer, by abandonment without just cause, and by a divorce a vinculo, or divorce a mensa et thoro granted at the suit of the husband. A wife who murders her husband forfeits her right of dower. (See Administration of Estate .) Executions. At any time within three years after docketing of judgment, or after the issue of the last execution, judgments may be enforced by execution without application to court. by the judgment creditors, or in case of his death by bis personal representative duly appointed; after three years from the docketing or date of issue of last execution, only by leave of court, upon ·atisfactory proof that the judgment bas not been paid. Executions issuing from the superior court may issue immediately after the term at which judgment was rendered and shall be returnable to the next term of the court beginning not le. than forty days after t,be issuing thereof. Issuing from a justice's court they are returnable in sixty days. Exemptions. Articles of personal property not to exceed the value of S,500, and real e tate not to exceed $1,000 in value, to be selected by the owner thereof, and to be valued by three sworn appraisers, provided be be a. resident of the State. The home. tead is not exempt from liability to be sold for contract made for the purchase of the same, nor for taxes. The widow and Infant children arc entitled to the homestead unUI the youngest child reaches the age of twenty-one years. The statute of limitations shall not run against any judgment owing by the owner of a homestead or homestead interest, during the existence of such homestead or homestead interest, whether the same has been or shall hereafter be allowed, assigned. or set- apart under execution or otherwi e. The allotted homestead shall be exempt from levy so long ru owned and occupied by the homesteader or by any one for him, but when conveyed by him in the mode authorized by the constitution (article ten, section eight), the exemption thereof cea'>es as to liens attaching prior to the conveyance. The homestead right being indestructible, the homesteader who ha,; conveyed his allotted homestead, can have another a1lotted, and as often as may be necessary: Provided, this act shall not have any retroactive effect. The law of partition has been changed so that lands held in common may be partitioned at the instance of a judgment creditor, in order that homestead may be allotted, and mineral interests and timber Interests may be partitioned separate from the land Interests. Foreign Corporations. (See Corporations.) Fraud. Alienations, which may be contrived for fraud, shall be deemed and taken to be utterly void and of no effect. Every conveyance, of any lands or goods, if the same be made with the actual Intent in fact to defraud such per on as hath purchased, or shall purchase, or to defraud such as shall purchase any rent or profit out or the same, shall be deemed utterly void. Fraudulent Sales. The sale in bulk or a. large part of the whole of a stock of merchandise, otherwise than in the ordinary course of trade and in regular and• usual pro ecution of the seller's business, shall be prima facie evidence of fraud, and void against the creditors of the seller, unle s the seller, at least seven days before the same make an inventory showing the q~anti!Y and, so far as po 'ible, the cost price to the seller of such articles mcluded In the sale, and shall within said time notify the creditors of the proposed sale. and the price, terms and conditions thereof, provided, and if the owner or owners of said stock of goods shall at any time before the said sale execute a good and sufficient bond to a trustee therein named, in an a~ount equal to the actual cash value of said stock of goods, and cond1tion!3-1 that the seller of said stock of goods will apply the proceeds of said sale subject to the right of the owner or owners to retain therefrom the 'personal property exemption or exempt.tons as are allowed ~Y laws so far as It will go in payment of debts actually owing by said owner or owners, then the provisions of this act shall not apply. Fraudulent Trading. That if any person or persons shall transact busine as a trader or merchant, ll-ith the addition of the words "!actor," "agent," and "company," or "and Co." or shall condu~t such business under any name of style other than bis own, _ex~ept ID case of corporation, and fail to disclose the name of his prmc1pal or partner by a sign placed conspicuously at the place wherein such business ts conducted, or If any married woman shall conduct such business through her husband or any other agent, or if any husband  or agent of any married woman shall conduct such business for her without displaying the Christian name of such married woman, and the fact that she is a. feroe convert, by a sign placed conspicuously at the place wherein such business is conducted, then all the property stock of goods a!ld merchandise and choses in action purchased, used and. contracted m the course of su~h bu iness shall, as to creditors, be hable for the debts contracted m the course of such business by the person in charge of same. Any married woman conducting business as aforesaid without complying with the above shall for all purposes be deemed and treated to all debts contracted in the course of such business as a free-trader. No blL'>iness can be legally conducted or transacted in this State by any person or persons under any ac;sumed name, or under any designation, name or style other than the real name or names of the individual or individuals owning, conducting or transacting the same, unless such person or person shall file in the office of the clerk of the superior court of the county or counties in which such business is conducted a certificate duly acknowledged setting forth the name under which such business is to be conducted or transacted, and the true and real name or names of the per. on or persons owning, conducting or carrying on the same, with the home and post office address or addre. ses of aid person or per ons; but the foregoing shall not apply to the selling of goods by sample or through traveling agents or salesmen, or by orders forwarded by purchasers through the mails. Failure to comply is a misdemeanor. Frauds, Statute of. No action shall be brought whereby to charge an executior or administrator upon a specal promise to answer damages out of his own estate or to charge any defendant upon a special promise to answer the debt, default for miscarriage, of another person unless the agreement upon which such action shall be brought or some memorandum or note thereof shall be in writing and signed by the party charged therewith, or some other person thereunto by him lawfully authorized. All contract for the ale of land, and all leases and contracts for leasing land for the purposes of digging gold or other minerals, or for mining generally, of whatever duration, and all other leases and contracts for leac;ing lands, exceeding in duration three years from the making thereof, shall be void unless put into writing and signed by the party to be charged therewith, or by some o acknowled~ent or person by him lawfully authorized thereto. promise shall be received as evidence of a new or continuing contract, whereby to take the case out of the operation of the tatute of limitations, unless the ame be contained in some writing ·lgned by the party to be charged thereby. But this shall not alter the effect of any payment of principal or intere ·t. Garnishee Process. Process may issue upon Judgment and in attachment to hold, and where a third party may owe or have belonging to debtor. Holidays. January 1, January 19, February 22, April 12, May 10, May 20, July 4, first Monday in eptember and a day appointed by the governor as a day of thanksgiving, Tuesday after first Monday of ~ ovember when a general election is held, and December 25, And whenever any such holiday shall fall on unclay, the • fonday following shall be the public holiday. When the day of maturity of a note falls on Sunday or a holiday, the note is payable on the next succeeding business day. (See Bills of Exchange and Promissory otes.) Homestead. (See Exemptions.) Husband and Wile. (See Married Women.) Interest. The legal rate of interest In 6 per cent. Taking, receiving, or charging a greater rate, either before or after the intere t may accrue, when knowingly done, shall cause a forfeiture of the entire interest. The person or corporation by whom it is paid may recover back twice the amount of interest paid in the nature of an action for debt, commenced ,vithin two years after payment. In any action brought to recover upon the note or other evidence of debt, the defendant may plead by way of counterclaim twice the amount of To perinterest paid, and also the forfeiture of the entire intere. t. son shall recover any costs who may endeavor to recover upon a. usurious contract. .Judgments. Judgments or the superior court are liens upon the lands and interests of a debtor within the county from the date of docketing the same for the space of ten years. If three years shall elapse since the date of the last execution the judgment becomes dormant, and execution shall only be i ued thereon by leave of the court upon motion, with personal notice to the adverse party, and after sati factory proof that the judgment or some part therflof remains un atisfled. Tran. cripts of judgments obtained from a. justice of the peace may be docketed in the superior court. and from that time the judg-ment shall be a judgment of tbe uperior court in  th~d~!n~~~e~1e[£~ f;~:~~~ lh~~: i~P;gi~ri~~f[; ~~ai-e1a\~tsii.s between them in the county of their rendition. A tran cript of a docketed judgment properly certified by the clerk, may be flied in the clerk's office of any other county, when it becomes a lien upon the debtor's real estate In that county from tbe date of the docketing in such connty. Judgments of the supreme court may be docketed in the superior court of any county of the State, and when so docketed their lien shall be the same as judgments of the superior court. Judgments of no court constitute a lien upon the personal property before levy. Limitations. Within ten years: 1. An action upon a judgment or decree of any court of this tate, or of the United State or of any state or territory thereof, from the date of rendition of saict' judgment or decree. But no such action shall be brought more than once nor have the effect to continue the lien of the original judp:ment. i. An action upon a sealed instr~1ent against the principal there to. ·within seven years: 1. An action on a. judgment rendered by a justice of the peace, from the date thereof. 2. By any creditor of a deceased person against his perso~al or_ real repre-entative. within . even years net next after the qual1flcat1on of the executor or admini ·trator, and his making the advertisement required by law for creditors of the deceased to present their claims, where no personal . ervlce of such notice in writing is mad_e u1,1on the creditor. and the creditor thus barred of a recovery agarnst the reprerentative of any principal debtor sh~ll _als(! be barred of a rec_overy again t any ltrcty of such debt: Within six year·: ~- An a~10n upon the official bond of anY pubhc officer. 2. _An action agamst any executor, administrator, coll~c.tor, or guardian on bis official bond, within six years after the auditmg of bis final accounts, by the proper officer, and the filing of such a~dited accounts as requi~ed by law, Within three years: 1. An action upon a contract, ol>hga.tion, or liability arising out of fn~o~;~·;i~~s~xpress or implied, except those mentioned in the preced-  ~/1  0  1\larrled Women. A married woman may bold property, both real and personal, free from the debts, obligations, or engagements of her husband. A married woman is authorized to contract and deal so as to affect her real and personal property in the ame manner and with the same effect as if he were unmarri d, but no conveyance of her real estate shall be valid unle made witb the written a.~eut of her husband as provided by section six of article 10 of the Constitution, and her privy examination as to the execution of the same ta.ken and certified as now required by law. The real or personal property of any female In this state, acquired either before or atter marriage, shall remain the sole and separate property of such female.  BANKING AND COMMERCIAL LAWS-NORTH DAKOTA and may be devised or bequeathed, and, with the written consent of her husband, may be conveyed her as if she were unmarried. No man. by marriage, shall incur any liability for any debts owing or contracts made, or for wrong done, by his wife before the marriage. MarTied men whose wives are lunatics may sell their real estate. The deed made under it conveys merely the rignt of the husband, reserving to the insane wife her right of dower, but apparently not her homestead. Married women may confess judgment. The earnings of a married woman by virtue of any contract for her personal ervices, and any damages for personal injuries, or other tort !'mstained by her can be recovered by her suing alone, and such earnings or recovery shall be her sole and separate property as fully as if she had remained unmarried. Mortgages. Mortgages and deeds of trust.are required to be registered, and are only valid as against creditors or purchasers for a valuable consideration from the date of registration. but a mortgage is valid against the maker without registration. Mortgages of incorporate companies upon their property or earnings, whether in bonds or otherwise, hereafter issued, shall not have power to exempt the property or earnings of such corporations, from execution for the satisfaction of any judgment obtained in courts of the State against uch corporation, for labor performed nor for torts committed by such corporation, its agents or employees, whereby any person Is killed or any person or property injured. 1\'hen there are two or more morts:ragee.-; or trustees the survivor is authorized to execute power of sale in the mortgage or deed of trust. and so is the executor or administrator of a deceased mortgage. ,vhen the mortgage or deed of trust contains a Power of sale, it may be exer<'ised after the death of the mortgagor. In case of sale of real estate in deed of tru t or mortgage the promises must be described in t,be notice or sale sub ·tantially as they are described in the deed of trust or morti:rage, and the sale may be made through an agent or attorney for that purpo.·e, appointed orally or in writing, whether the mortgagee or trustee be pre. ent. or not. Deeds of trust, mortgages, and similar sales shall be regulated as to time of advertisement and costs of the same, by the same statute which regulates sales under execution. Negotiable Instruments. (See Bills of Exchange.) Partnership. A partnership doing business under an assumed name must file with the Clerk of the Superior Court the names of the partners. Powers of Attorney. Powers of attorney authorizing the execution of deeds or other acts requiring a seal must be under a seal. It should be recorded along with the deed. Stay of Execution. Judgment in a justice's court only may be stayed upon security given, if asked for at the trial. as follows: For any sum not exceeding twenty-five dollars, one month; for any sum above twenty-five and not exceeding fifty dollars. three months; for any sum over fifty dollars and not exceeding one hundred dollars, four months; for any sum above one hundred dollars, six months. No stay is allowed upon a suit upon a former judgment. Supplementary Proceedings. Upon an affidavit showing: 1, The return of the execution in whole or in part. 2. The want of known property liable to execution. 3. The existence of property belonging to the judgment debtor unaffected by any lien and incapable of levy. 4. The existence of property, choses in action, and things in value (belonging to the judgment debtor) unaffected by any lien, and incapahle of levy, an order may be obtained for the examination of the judgment debtor concerning his property. Supplementary proceeding may likewise be instituted before the return of the execution upon an affidavit showing the foregoing facts. and also that the judgment debtor has property which he unjustly refuses to apply to the satisfaction of the judgment. Third parties may also be examined, if it appears by affidavit that they owe the defendant more than S~O. Witnes.c;es may be examined. Porperty discovered may be applied to the execution. A receiver may be appointed, and transfers by debtors enjoined. Taxes. The lien of the State county, and municipal taxes, levied for all purposes in each year attb.ches to all property subject to such taxes on the 1st day of June annually, All personal property subject to taxation shall be liable to be seized and sold for taxe ·. All taxes are due on the first Monday of September on each year. If the party charged has personal property of the value to the tax charged against him, the sheriff or tax collector shall seize and sell the same as be is required to sell other property under execution. If the party charged has not personal property to be found in the county, of sufficient value, the real estate of the delinquent shall be levied upon and sold. Wms. No last will or testament shall be good or sufficient in law to convey or give an estate, real or ~ersonal, unless such last will shall have been written in the testators lifetime, and signed by him, or by some other person in his presence and by bis direction. All Wills must be subscribed in his presence by two witnesses at least. No one of them shall be interested in the devise or bequest of t}?e Ba.id estate, except as hereinafter provided. Or. unless, uch last will and testament be found among the valuable papers and effects of any deceased person or shall have been lodged in the bands of a Person for sale keeping, and the same shall be in the handwriting of ~uch deceased person, with the name subscribe~ thereto, or inserted 1n some part of such will; and if such bar?wr1ting shall be _proved by three c.redihle witnesses, who verily believe such will ~nd every Part thereof is in the handwriting of this person who e will 1t apfe.ars to be, then such will shall be sufficient to give and ~onvey rea and Personal estate. No person shall be capable of _d1 po Ing of real or Peri:;onal estate by will nor be allowed to quahfy as executor of • will until he shall have 'attained the age of twenty-one l'.ears. A married woman owning real or personal property may d1Spose of the same by will.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1927  SYNOPSIS OF  THE LAWS OF NORTH DAKOTA RELATING TO  BANKING AND COMMERCIAL USAGES Revised by PIERCE, TENNESON. C UPLER & STurnAUGH, Attorneys at Law, Fargo. (See Card in Attorneys' List.) Acknowledgments of deeds or other instruments may be made at any place within this Rtate before a justice or a clerk of tbe supreme court, or a notary public; and within district in this State for which an officer is appointed or elected before a judge or clerk of a court of record, a mayor of city, register of deeds, a justice of the peace a U. R. circuit or district court commissioner, or a county auditor and without the State. but wit,hin the United States and within ,the jurisdiction of the officer, before a justice, judge, or clerk of any court of record of the United States, or clerk of any court of record of any state or territory. a notary public. any other ofilcer of the State or territory where made authorized by its laws to take acknowledgments, a commissioner appointed for the purpose by the governor of this State; without the United States, before a minister, commissioner. or charge d 'affairs of the United States resident and accredited in the country where made, secretary of legation, a consul, vice-consul, or consular agent of the United States re.o:;ident where made. a judge, clerk registrar or commissioner of a court of record of the country where made, or a notary public of such country, or an officer authorized by laws where proof or acknowledgment is taken. to take such; any deputy of these officers in name of principal as deputy. or by such deputy as deputy. Certificate must he authenticated by name and official designation and seal of officer. The form is statutory, and is substantially as follows: State of . . . . ... •. . . . . . . . . t County of .............. J ss. On this . . . . day of . . . . . . . . . . . in the year ...... , before me personally appeared . . . . . . . . . . . known to me to be tbe person who is (are) de.c;cribed in, and who executed the within instrument, and acknowledged to me that he (or they) ~xecuted the same. Acknowledgment of corporation must be substantially in the follow• ing form: State of. ............... l County of . ........... . . f ss. On this . . . . day of ..........• in the year . . . . before me (here insert the name and quality of the officer), personally appeared ..... . known to me (or proved to me on the oath of .......... ) , to be the president (or secretary) of the corporation that is described in and that executed the within instrument, and acknowledged to me that such corporat.ion executed the same. Acknowledgment of an attorney in fact must be substantially in the following form: State of ................ } ss · County of.............. On this .... day of ........ , in the year .. . . before me (here insert the name and quality of the officer), personally appeared ......... . known to me (or proved to me on the oath of ............ ), to be the person who is described in and whose name is subscribed to the within instrument as the attorney in fact of .......... , and acknowledged to me that he subscribed the name of .......... thereto as principal, and his own name as attorney in fact. Actions. Actions in courts of record are commenced by service of summons on the defendant, requiring him to answer within thirty days, and if no appeacance is made within that time. the plaintiff may take judgment by default upon the expiration of the thirty days. When  f;~P:~~y f~~ dJ[:~~c3e~\~~:~~~e~:;idb~n ~~t;~~s ~:e;~i1,~t!~fr~~e:~ defendant ls a non-resident or cannot be found. Personal service outside the State is equivalent to service by publication and service Is complete at the expiration of forty-five days after such personal service. Judgment by default may be taken at the expiration of sixty-six days after the first publications of summons, forty-five days after personal service outside the State. and thirty days after personal service in the tate. Actions involving not more than S200 must be submitted to a concilliator and certificate of such concilliator that an attempt has been made to effect a settlement must be filed in court before process will is.sue. This does not apply to provisional or remedial remedies or actions involving title to or posse ion of real estate. Administration ot Decedent's Estate. Administration ls granted: 1, to surviving husband or wife or some competent person whom he or she may request to have appointed; 2, his heirs. 3, his creditors. 4. Any person legally competent, for lack of any other classes. An executor or administrator must be over twenty-one years of age. An administrator cannot be a surviving partner. A married woman cannot be appointed administratrix. Bond must be given in 88 11 ~~s~Jow~~~ns~~ ~t~J~f;1;~t~;~~t{e~~~ sic~:~s :~~ family in excess of exempt property. 4, debts having preference under the laws of the United States. 5, debts which are liens upon specific property, in the order of their priority, to the extent of the property subject to the lien, 6, all other demands, which includes deficiency on secured debts not paid by sale of the property held a.a security. Notice must be given of the time of presenting claims, which must be presented within six months after notice if the estat exceeds $5,000, and four months when it does not. Exempt propert7 is set apart to the family. Affidavits. An affidavit may be made before any person authorized to administer an oath. Allens may acquire, hold, and transfer real estate same as citizens. Arbitration. Parties may submit controversies to arbitration under statutory provision. Arrest. 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 provided by law, or in cases of tort, or where there Is a strong presumption of fraud. No female can be arrested except for tnjU17  Pfi~::af?   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1928  BANKING AND COMMERCIAL LAWS-NORTH DAKOTA  --~---~------~  to person, property, or character. An order of arrest may be granted by the order of the court in which the action is brought, when it appears by affidavit that the case is one of those in which arrest is provided for.  Insolvency. The State banking board, in case of violation of law or by insolvency of any banking a:·sociation. takes charge of insolvent bank and appoints a temporary receiver, pending action of the courts. Depo its in state banks not otherwise secured are guaranteed by state. State banks must conform to requirement of guaranty fund Assignments. For benefit of creditors are administered under commis ion. Assessment made on state bank to create guaranty the supervision of District Court and th€. public admi.J1h;trator shall fund. be appointed receiver upon hh petition or the petition of any creditor. Other Business. No bank shall as principal employ any of its In the absence of application by public administrator or a creditor, a: ets in trade or commerce. or invest them in stock, corporation, bank the assignee named in the a ·signmeut may administer the estate. partnership or firm, nor in speculative margins or other commodities. Banking Board. The go;-ernor, secretary of state, and attorneyAttachment. In actions on contract or judgment for the recovery of money only, and for the wrongful conversion of personal property, general constitute the State hanking board, and have charge and control of all state banking organization and make rules for their and for damages arising out of contract, or otherwise, attachment government, examine all report.· and approve or disapprove the same. may issue against the property of the defendant. in cases provided The law give Banking Board power to refuse a charter. by law. An action may be commenced before the claim is due. and The law known as the negotiable instrument act, recently enacted property of the defendant attached when be is a non-re ident or has in several states is now in full force here. absconded or concealed himself or is about to remove his residence from the county with intention of permanently changing the same Chattel 1\-fortgages. A mortgage of personal property must be and fails or neglects on demand to give ecurity. In an action to signed by the mort~agor in the pre ·ence of two witnesses who must 0 sign the same,as witnesse thereto. or acknowledge the execution of !;.~c~~~~c~~~r~: i:Yi[i~ese~~nt~Jl~dp~~~n si~~ht~r~:e~1.en1a~~ the ame before some official qualified to take acknowledgments. Garnishment.) And every mortgagee must surrender to the mortgagor at the time of the execution of the mortgage a correct copy of the original mortgage Banks. As ociations for carrying on the business of banking may so signed, with witne. ses or acknowledgment shown thereon. And be formed by any number of natw·al persons not less than three, twothe mortgagor must surrender to the mortgagee a receipt which shall thirds of w.hom shall be residents of the State. be at.tached to the original mortgage showing- that the mortiagee has The persons uniting to form such an organization shall. under their surrendered to him a copy of such mortgage, and . aid receipt must hands, make an organization certificate. specifying: accompany the mortgage when presented to the register of deeds and 1. The name assumed by such association, which shall not be that filed therewith. of any other bank in the State. Collaterals. Collateral note may provide for a . ale of securities 2. The place where the busine s of di-,count and deposit is to be pledged. in which ca e the sale may be made on 10 da:r ·· notice without carried on. court proceedings, but the pled"ee cannot le""all:r purchase at the ale 3. The amount of capital stock and the a.mount into which its unless authorized by the collateral note. shares are to be divided. Contracts. The civil code contains a codification of the law on the 4. The names and places of re~idence of the shareholders and the subject of contracts, not materially different from the rule of tbe number of shares held by each of them. common law. Contracts for sale of real property mu ·t be in writing. 5. The period at which such bank shall commence and terminate signed by vendor or by his agent thereunto authorized in writing. business. Conveyance . Com eyances of real estate or mortgae:es thereof, The organization certificate must be acknowledged and recorded must be by an instrwnent in writing, ub ·cribed by the party disposing in the office of the register of deeds in the county where such bank of the same. or hy his agent having written authority. To entitle such may be established. and tran mitted to the secretary of state, who conveyance to be recorded, it nrnst be acknowledged as provided by must record and preserve the same. law. (See Acknowledgments.) Witne.. ·e · or .·ea! are not requi.J•ed. Upon making and filing said articles and cert.ifl.cate the association Instrument must be recorded to make it valid as against subsequent shall become a body corporate and have power: purchasers or incumbrancers in good faith for value where conveyances 1. To adopt and have a corporate seal. are first duly recorded, and as against judgment and attachments. 2. To have succe sion for a period of twenty-five years. Husband need not sign conveyance of wife's proverty, nor wife that 3. To make contracts. of husband's, unless it i a homestead. 4. To sue and be sued, complain and defend in any court of law or equity. Corporations. Corporations may be formed for any purpose for 5. To elect or appoint directors, two-thirds of whom shall he re iwhich per·ons may lawfully a. sociate, and, except railroads and insurdents of this St.ate. By its board of directors to appoint a pre. ident ance companie. , may bo formed by the ~ . ociation of tbree persons, and vice-president, members of said board, a cashier and other assistand the proper fl.ling of articles of incorporation. Tran. fer. of stock ants, and define their duties. mu t be made upon the books of a corporation. and are only valid as 6. To prescribe, by its board of directors, by-laws, and regulate between the parties unless so made. creditor of a corporation having secured judgment. i. sued execution a~ainst the corporation it business. 7. To exercise, by its board of director , all powers necessary to ther on, may. when the . ame i returned unsatisfied, have a receiver appointed for the property of the corporation, ancl the district court carry on its business of banking. Such banking association shall have power to purchase, hold, and is then empowered to distribute the property of the corporation convey real estate only for the following purpo es: amon2 its creditors. and a settlement of the judgment, which is the 1. Such as may he necessary for its immediate accommodation, not basis of the proceedings, does not prevent the continuance of the exceeding 30 per cent of its capital. action, which may be continued by any creditor. orporations may 2. Such as shall he mortgaged to it as security for debts previously also he dis,:;olved by action on the part of the tate, or in case the contracted, or as security for loans made. attorney-general fails to commell(·e action after proper application. 3. Such as shall be conveyed to it in satisfaction of debts previously by action on tl10 part of the creditor or stockholder. Dome ·tic corporations mm;t file a report <luring the month of .July in each year with contracted. 4. Such as shall be purcba ed by it at sales under judgment . tho ecTetary of state, and failure to do so forfeits charter. Foreign decrees, or mortgages held by it or to secure debts held by it, but such corporations are prohibited from transacting any bu. ine:· in this real estate shall not be held longer than five years. tate, acquiring, holding, or dispo. ine: of any property. real or perCapital Limit. The minimum of capital required depends on the sonal. until they have filed in the office of the. ecretar.· of _·tate a copy population of the town in which the bank is situated. and cannot be of their article: of incorporation, and amendment·. if any. together less in any case than $15,000. All of the capital stock must be paid with a certificate to th effect that the charter of the corporation has in before commencing business. The organization certificate and not been cancelled. and that it i enii;~ed in active bu. ines:- under authorization of the secretary of ·tate mu t be published. its charter, both of which copies of articles and c rtificate . ball be Shares may be old for non-payment of installments. certified to by the ·ecretar)· of state of the . tate in which uch corpoShares shall be $100 oach, shall be deemed personal property, and ration was incorporated or hy the officer authorized to issue charter may be transferable on the books as pre cribed hy the by-Jaws, and to such corporation (or if incorporated in a foreign country, then transfer is only valid between parties when not tran ferred on book. . by the officer authorized to issue ·uch corporate charter). ,Such No tran<ifer of stock is valid against the bank or any creditor thereof corporations must al o file in the office of the secretary of ·tate a as long as registered holder is liable for any past due indebtedne.· , power of attorney appointing the secretary of tate and bis ·uccessors and no dividend. can be paid on such stock as long as such liability their attorney, upon whom proce. may be :erved. In ·urance corcontinues. Every transferee of stock becomes, in proportion to his porations mu ·t file such power of attorney and articles in the office shares, responsible for liabilities of prior holders thereof. of the insurance commi:sioner. All contracts made by a corporation The artides of association. or by subsequent resolution or written or its agent, while it i · in default in the filing of ·uch paper·, are wholly agreement of a majority of its tock it may provide for increase of void as to the corporation. but may be enforced again. t it, and the capital. No increase shall be valid until all is paid in cash and director· and stockholders are personally liable on . uch contracts. certified under oath to secretary of state, and unti approved by the The. e provi ions do not apply to corporations created for religious or charitable purposes only. nor to the holding and di:po:ing of real State banking board. Dividends may be declared semi-annually, but one-tenth of net e tate acquired only by foreclosure or otherwi e, in liquidation of mortgages or other securiti . In urance companie must have profits must be carried to the surplus fund until same amounts to 20 100,000 capital paid in cash. 'onyeyance or other instruments per cent of capital. affecting real estate may be executed b:r any o!I.icer authorized bY Qualifications of Directors. Every director must own at least ten the by-la,,s of the corporation, and in the ab:ence of such by-laws, shares, unpledged and in bis own right, must be sworn, and oath filed the president or secretary of such corporation, or the president, with public examiner. Reports. At least five reports shall be made each year to the public , secretary. or cru bier of any bankinit house. or tru. t company, maY acknowledge and execute such instrument, who mu. t sign the corpoexaminer and published, and the e.·aminer is empowered to call for rate name by himself a~. uch ofllcer, and it mu t be atte·ted by the special reports at any time. Penalty of 200 for not making same. seal and signature of tbe. ecretary. Reserve Fund. Association shall at all times have on band in The state has a "Blue :ky ommi: ·ion" who· r quirements must available funds an amount equal to 10 per cent of its demand depo its bo conformed to before corporate .·tock · can be .·old in the state to and 7 per cent of its time depo its. Whenever such funds get below persons other than banks, bankers and brokers. 10 per cent of its demand depo its and 7 per cent of its time depo·its, liabilities must not be increa.<ied. Examiner may require reserve Costs. Co ·ts are allow d to the prevailin" party in ui . fund to be made good. and failure o to do for thirty days subject· to a penalty of not le - · than 100, nor over $500, to be imposed by Courts. There ar six judicial di:trick. The dbt1·ict courts have exclusive jurbdiction in equity, and at common Ia, ahove :WO and pui~~P~~amm!;· of, hare.holders. Each shareholder shall be individuwhere the _title or boundary of real property i. in que. tion. c pt ~ a ally respon.·ible, equally and ratably, for all contract and debts to f~w ~ount1 s ,v_her~ ~ouat_y court· b ,e concurrent jurbdictiun with the extent of his st-ock, in addition to the amount invested in such d1str1ct court· m c1v1l actions where amount in contru, er. y doe not shares. Such liability continues one year afte: any transfer. . exce d I ,000. Two terms of distric-t court are held ach :.ear in all Security. o loan. shall be ma.do on security of share of 1t own organized counties anti ortener in a few countie---. Each· organized stock. Association cannot purcha e or hold such tock except to county bas a county court, and the county court·• have xclu i,•e prevent los , and shall not have or carry among its assets loans deprobate juri:diction. In :orne countie:--. the c unty court have pendent wholly upon real estate security. jurisdiction of actionc: at l.rn. where claim doe not xcecd 1,000. 'I'otal Loan to One Concern. , -ot to exceed 15 per cent of capital Justices' jurisdiction is 200. may be loaned to any one borrower, including the individual members reditor ' Bills. Cr ditors' bill· are permi . ible. of a company or firm. 'The limit of bank loans to one concern Il(?t to exc-eed 15 per cent of the capital or the ·urplw, st.ock actually paid Da:rs of Grae are not allowed. in may bo loaned to any one borrower, including_ the individual Deed . Deeds must be :ub crih d by the grantor or by hi a:,;ent members of a bank or flnn; but the discount of bills of exchange thereunto authorized in \\Titing. To entitle them to record tboY mu t drawn in good faith against actual existing value or lo~n. ~1pon probe acknowledged. .1. -o ea! or witne ·e ar nee · ·arY. ( an be r ordduce in transit or actually in tock as collateral security 1s allowed ed. on proof by witn · if not a<'knowledged; one member of partnerabove 15 per C'ent. . ship may execute. No banking business ca~ be done otherwise than under.th! law. Deposition . Depositions may he taken 1pon commi ion i ued Violations of the provisions of the act. and false ent.ries and the by a court of record. or upon 11otke, which latter I th n ual method· receipt of deposits when iru olvent, are punished by fine and imprisonThe deposition mu ·t be written by the offic r or In b" pre ·cnce bY ment. the witness, or some di.·inter s ed per. on, and mu he ub cribed bY "Public examiner is e. -officio superintendent of banks.  BANKING AND COMMERCIAL LAWS-NORTH DAKOTA the witness. The officer taking the depo. ition must annex thereto his certificate showing: 1. That the witness was sworn to testify the truth, the whole truth, and nothing but the truth. 2. That the deposition was reduced to writing by some proper person, naming him. 3. That the deposition was written and subscribed in the presence of the officer certifying thereto. 4. That the deposition was taken at the time and place specified in the notice. The deposition so taken must be sealed. endor;;ed with the title of the caw e , with the name of tho officer taking the same, and by him addressed and transmitted to the clerk of the district court where action or proceeding is pending. \Vhen taken outside the State on notice they can be ta.ken by a judge, justice or chancelor or clerk of any court of record, a justice of the peace, notary or mayor, or a commissioner of the State. Descent and Distribution of Property. 1. If a decedent leave a surviYing husband or wife, and only one child, or the lawful i. sue of one child, in equal shares to the surviving husband or wife and child, or issue of such child. ff the decedent leave a urviving husband or wife. and more than one child living, or one child living. and the lawful issue of one or more deceased children, one-third to the surviving husband or wife, and the remainder in equal hares to his children, and to the lawful issue of any deceased child, by right of representation ; but if there be no child of the decedent living at his death, the remainder goes to all of his lineal descendants: and if all the descendants are in the same degree of kindred to the decedent, they share equally, otherwise they take according to the right of representation. If the decedent leave no surviving husband or v.ife. but leaves issue, the whole estate goes to such issue. and if such issue consists of more than one child living. or one child living and the lawful i. ue of one or more deceased children. then the estate goes in 1 0 rsi~: ;1hth~sd~~e~:J~~te~/~11~ai:e ~~ ;~\f~}d:ee;~!~~~!tftn~ t¾~ If the decedent leave no i.. ue, and the estate does not exceed in value the sum of. lfi.000, all the estate goes to the survi,•ing husband or wife, and all the property in excess of $15,000 in value. one-half thereof goes to the surviving husband or wife, and the other one-half goes to decedent's father and mother in equal E-hares and if either be dead, to the survivor, and if both father and mother are dead and the dec-edcnt leaves no issue, and estate does not exceed $25,000, the whole thereof goes to the surviving husband or wife and the excess is divided one-half to the surviving husband or wife and one-half in equal ·hare. to the brothers and 1-isters of decedent and to the children of any deceased brother or sister by right of repre:-;entation. If the decedent leave no Issue, nor husband, nor wife. the estate must go to the father and mother in equal shares and if either is dead, to the urvivor. If the decedent leave a surviving hlLsband or wife, and no issue . and no father nor mother, nor brother, nor sister, nor children of a deceased brother or sister, the whole estate goes to the surviving husband or wife. 3. If there be no issue, nor husband, nor wife, nor father, nor mother, then in equal shares to the brothers and sisters of the decedent, and to the children of any deceased brother or sister by right of representation. 4. If the decedent leave no issue, nor httsband, nor wife, and no father, nor mother, nor brother, nor sister, the estate must go to the next of kin, in equal degree excepting that when there are two or more collateral kindred. in equal degree, but claiming through different ancei:;tors those who claim through nearest anc~·tors must bRe preferred to those claiming throu~h an ancestor more remote. owever, if the decedent leave several children, or one child and the issue of one or more children, and any such surviving c-hild dies under age. and not having been married, all the e. tate that came to the deceased child by inherit,ance from such decedent, desrends in equal shares to the other children of the same parent. and to the is. ue of any such other children who are dead. by right of reprec;entation. 5, If. at the death of such child, who dies under a~e. not having been niarried, all the othei· children of the parents are also dead, and any of them have left, issue the estate that came to , uch child l>v inheritance from his parents descends to the issue of all other children of the same parent; and if all issue are in the same degree of J-indred to the child, they share the estate equally, otherwise they take according to the right of representation. 6. If 1he decedent leaves no husband. Wife, or kindred, the estate escheats to the tate for the support of the common schools. 7. If deceased be infant, and lea es no heir , whole estate goes to foster parent who supports infant. Dower. Dower is abolished. Surviving spolLse has homestead rights to extent of 5,000 in value. Evidence. Evidence, may be given in court orally or by deposition taken in accordance with law. ( ce Depositions.) . Executions. .Judgment creditor may take out execution at any time within ten years after ent.ry of judgment. Real property sold on execution may be redeemed within one year. Exemptions. Absolute ox:emptions are family pi~tures, pew in holLse of worship, a lot or lots in burial ground, family bible and sch9ol ~ooks used by the family and other bool<s used as a p~rt of the fam1\y hbrary, and not exceeding $100 in value, all wearmg apparel and clo~hing of debtor and his family, one year's ne~essary supply of proVis1ous for debtor and family prozided or growmg, or both, and one Year's fuel, and the home tea.'ci, not exceeding . }),000 in value except against mechanic.' or laborers' liens thereon, debt. secured by mort~age thereon, debts for purchac;e money thereof. and taxe th~reon. Husband and wife must join in conveyance of homestead o~ either. In addition to said ab. olute exemptions, if a head of a family may soJect from all other of his personal property, (1.'ood . chattels, merchandi. o, money or other peri:;onal prope~ty up to 1 .000. • o per onal Propert,y, except absolute exemptions. 1s exempt from ex c~1tion .for laborers or mechanics wages, or physician·s, nurse, or ho~p1tal bill , or hills for groceries and provisions, or for propert.y obt~med under false pretenses. No property is exempt from execution for the Purcha.o;e money thereof. . · A partnership can claim hut one exemption of SI ,000 Ill value or alternate property out of the partnership property, and th~ property so claimed as exempt shall constitute a part of the exempt10ns of the sev-eral partners. Fraud. ('ont,racts exempting from responsibility for fraud are declared by statute to be void. Foreign Corporations. 0 foreie;n c<~rp<?rati?n except an ins_urance company can transact any husiness w1thm t~ns_ tate, C?r acqmrE:, !told, or dlspose of property, real or personal. w1thm the , tate until 1~ shall have flied in t.lrn oftlce of tho sec-retary of stat_e a duly authenticated copy of its chat·t r or articles of incorporation, and amendtnents of any together with a cert iflcate to the effect t_h:i:t, th<;,_ chart~r or ~he corporation has not been cancelled an_d that 1t 1. en~ae;ed_m act,1vo business undel' its charter hot.h o~ ,, h1ch . hall b. filed with the s cretary of state and i-hall have appointed the secretary of tate !l,nd his snc-ceo;sors its true and law:ful a_t:torney upon ';hom all proce:. 1n any act ion or proceorl.in~s agau1st 1t may be er~ ed. and therem agrec_s that any proress that m~i,y be s_erved upon saiC!. at,torney sh~ll be_ ol the same force and va.lid!tY as if served up_on 1t_ pe>rso!1a!I~ 1? this . tato, and that such appo111tment shall c~nt1_n11e !n force 1ne,OCahJe so Jon"' as any liahilitv remains outst~ndmg m tin tato. The secretary of state is required to mail forthwith ~opy of p~oc;e. :> served to such corpora.I.ion at it principle plac~ of busmes.. or. 1f 1t i. !1- ~orI>oration of a foreign country. to it.s rc>s1dent maua"'. r the _l m ed State-;. or to :-;uch other person as may ha,·e been pr0Y1ou. Jy d :1e;n'.'-~ed by Writ,ten notice filed in the ofllce of the secretary of <.:tate. Fa1l111g to comply with thcs provision'"' rend rs every officer, a~ent or tock-   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ri  m  1919  holder of such corporation jointly and severally liable on any and all contracts of such corporations made within this State during the time it is in default, and every such contract made without complying with these provisions, is wholly void on behalf of such corporations and its assigns but may be enforced against it. They must fl.le with the secretary of state between July lRt and August 1st of each year, a report showing the location of the principal office in this city, names of officers with their residence and post office addre1's, date, expiration of their terms of office, whether or not they are pursuing active business under charter and kind of business engaged in, and must show paid up capital stock of at least 100,000 in available cash assets over and above all liabilities for losses reported, expenses, taxes and re-insurance of all outstanding risks. Garnishment.• A creditor may proceed by garnishment. No judgment can be rendered against a garnishee on: 1. Upon a negotiable note, bill, draft, note or other security. 2. By reason of money collected by nim as sheriff or other officer. 3. By reason of money in his hands as a public officer, for which he must account to the oefendant as a public officer. 4. By reason of money, or other thing, owing from him to the defendant which shall not have become absolutely due, but judgment may be rendered for any money or other thini.t owing to the defendant after it shall have become due absolutely. Public corporations may be made defendants when owing or holding property belonging to the debtor. \Vages or salary of any person who is the head of a family and a re ident of this state to tho amount of. 15.00 a week arc exempt from garnishment. Holidays. Holidays arc every Sunday, January 1st, February 12th, February 22d, ::-.Iay :30th, July 4th, ovemher 11th, Dercmber 2.'5th. the first Monday in September, Octohrr 12th, every day on which an election is held throughout the State. and every day appointed by the prC'sident of the United tatcs , or by the 1,tovernor of the State. for a public fast, thanksgiving, or holiday. If January 1st, February 22d , July 4th, or December 25th, fall. upon , unday, the l\londay followini.t is a holiday. All other days ar lmsines~ days, and any act of a secular nature appointed by law or contract to be performed upon a particular day. which day falls upon a holiday, may he performed upon the next business day, with the same force and efiect, as if it had been peeformcd upon the day appointed. Husband and Wife. (See Married Women.) Interest. Usury. The legal rate of interest is 6 per cent per annum unless a different rate, not exceeding 10 per cent, is contracted for in writing, and contract shall bear the same rate after as before due, and any contract attempting to increase the rate after maturity is void as to such increase. It is usury to take more than 10 per cent per annum. A contract for usury forfeits all interest. If usury bas been paid, twice the amount of interest and usury may be rerovered back by action commenced within four years, and in addition thereto any per" on who violates this provision shall be guilty of a misdemeanor and on conviction confined in the county jail not exceeding 00 days and be fined not exceeding $300. , Judgincnts of courts of record are a lien on all real estate of the judgment debtor, except the homestead, for ten years from time such judgment is docketed in the clerk's office of the county where the land is ituated, and may be renewed by affidavit within ninety days before expiration of the ten years. Jurisdiction. Courts of the State consist of the supreme court, district courts, county cow·ts, courts of justices of the peace, and such other courts as may be created by Jaw for cities, incorporated towns and villages. Supreme, district, and county courts are courts of record. The supreme court has appellate jurisdiction only, except that it may exercise original juri diction to issue writs of habeas corpus, mandamus, quo warranto, certiorari. and such original and remedial writs as are necessary to the proper exerci1'e of its jurisdiction. But it issues writs of habeas corpus only in case of strictly public concern involving questions affecling sovereign rights of the State, or its franchises or privileges. District courts have general jurisdiction. County courts have original jurisdiction in all probate matters, and in certain counties have concurrent jurisdiction-in civil a tions where amount in controversy does not exceed $1,000, and in criminal actions bolow felony. Courts of justice of the peace have concurrent jurisdiction with the di. trict court in civil actions when amount in controversy does not exceed $200, but have no jurisdiction in cases when the boundaries of. or title to real estate comes in question. Lancl Cont1·acts. Contracts for the sale of land c-an only he cancelled by the vendor by service of a written notice upon the vendee one year b fore such cancellation is to take effect. Such notice to be son·ed in 1ho same manner as a summons in a civil action . Liens. Mechanics, laborers, and furnishers or material, machmery, or fixtures for improvement of real estate. have a lien therefor and must file a verified account of the claim, within ninet,y days from the date of the la: t item, in the office of tbe clerk of the district court. \Vhere a person is entitled to a mechanic's lien for material the owner must sign wrltten consent that lien may be filed if account not paid, and this consent and a notice of intention to claim a lien must be filed in tbe clerk's office by the contractor or material-man; if not filed, deed-; and mortgages fir t recorded will be prior to the lien. Limitations. An action by the State of orth Dakota respecting real property must be commenced within forty years. An action for the recovery of real property or the possession thereof must be commenced within twenty years. Actions other than for the recovery of real property can only be commenced within the following periods after the cause of action shall have accrued: 1. \Yithin ten yel'l,rs: an action upon a judgment or decree of any court in the United States, or of any state or territory wittlin the United tates, or on contract contained in conveyance or mortgage of real property except covenants of warranty, which must be commenced within ten years after the final decision against the title of the covenantor. 2. Within six years; (a) actions upon a contract, obligation or liability, express or implied; (h) action upon a liability created by statute; (c) a<"tion for trespa..-;s upon real property; (d) action for taking, detaining or injuring any goods or chattels; (e) action for criminal conversion; (f) action for relief on i.round of fraud; (g) action for foreclosure of mechanic's lien. 3. Within three years; an action ai?ainst an officer for breach of official duty; an action for a penalty given by statute; actions for death by injury; (two years). 4. \Vithin one year; all actions ~a.inst a sheriff or other officer for the escape of a prisoner arrested or imprisoned on civil process. 5. All other actions for relief in ten years. ...ro acknowledgment or promi e is sufficient evidence of a new or continued contract whereby to take the case out of the operation of tho statute of limitation. unle. s the same be in writing, igned by tho part,y to be charged thereby; hut this does not alter the etrect any of payment of principal or interest. Iarried ,vomen retain their own real and personal property, and may make contracts, sue and be sued as if ,ole. Neither husband nor wife has an interest, in tho property of the other except under the statute relating to the homestead; but neither can be excluded from the other's dwelling. They may enter into any engagement or transaction with each other, subject to the general rules which control the actions of persons occupying confidential relations with each other. J?ower and curtesy a.re aboli. bed. either bu hand nor wife, as_ such, is an._ werahle for the a..:ts of the other. The earnings of the wife are not liable for the debts of the bu hand. The separate propert.y of the husband is not liable for wife"s debts contracted before marriage; nor separate property of wife for bu band' debt , but is   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1930  BANKING AND COMMERCIAL LAWS-OHIO  liable for her own debts contracted before or after marriage. Husband and wife are both liable for necessities while living together. Women may be notaries public. l\>Iortgages of real property must be in writing, and executed as required in case of a grant of real property. Neither husband nor wife need join the other in mortgage except of homestead. Unless mortr gage and assignment of mortgage contain post office address of mortgagee and assignee respectively, they will not be entitled to record. If containing power of sale, mortgage of real property may be foreclosed by advertisement. If no power of sale in the mortgage, it must be foreclosed by action. Mortgagor may redeem from foreclosure sale within one year on payment of the sum for which the property is sold, with 8 per cent interest thereon from date of sale, and also all taxes paid by the purchaser and interest thereon at 8 per cent. Possession of real property sold upon foreclosure not delivered to purchaser until end of year of redemption and debtor is entitled to the possession, rents, use and benefit during the year of redemption. Real estate mortgage cannot be foreclosed by agent or attorney, without power of attorney authorizing foreclosure. Agents and attorneys must have power of attorney to foreclose, which power must be filed with register of deeds and pleaded when foreclosure is by action and before statutory attorney's fees are allowed attorney must file with register of deeds before sale, his affidavit  :~~:n~ ~1iii~:~ l,°a:gf:~Y  ~h~ii;·d!~•~ft1e~h:~tfc8e ~:Stbg~~i~~~ io the record title owner of the mortgaged premises before foreclosure of a mortgage upon real estate can be commenced, either by action or by advertisement. (See also Chattel Mortgages.) Negotiable Instruments. The law known as the negotiable instrument law, adopted in several States, is In effect. Notes and Negotiable Instruments. Law or notes and negotiable instruments is substantially what is called the negotiable instrument law adopted by many States. Notes taken for patent rights, stallions, jackasses, lightning rods, patent medicines, or for cure of diseases, or for the sale of the capital stock of foreign corporations, must have written in red ink or stamped across face, "given for a lightning rod" or "given for a stallion," or other purposes as the case may be, and are non-negotiable. Powers of Attorney. Powers of attorney to convey real estate must be acknowledged and recorded, and can only be revoked by an instrument in writing acknowledged and recorded In the same office in which the power of attorney is recorded. Probate Law. (See Administration of Estates, Descent and Distribution of Property.) The county court has exclusive original jurisdiction of all probate matters. A special administrator may be appointed to preserve and collect the property of the estate when there is delay in the appointment of an executor or administrator. Claims must be presented within the time fixed by law, which is six months after notice if the estate exceeds $5,000, and four months if it does not, and all claims not properly presented and flied in the county court for adjustment a.re barred, but the court may, for good ca.use shown, allow claim to be filed after the expiration of the time stated in the notice. The provision barring claim does not prevent the foreclosure of a mortgage or other lien on specific property by civil action, and does not prevent the foreclosure of the real estate mortgage br adverti ement prior to the time the county court obtains jurisdiction of the estate of the mortgagor. If a claim is rejected, the claimant may bring suit in proper court according to amount within four months after date of rejection if then due or within three months after it becomes due, otherwise it is barred forever. No claim barred by the statute of limitation can be allowed. An executor or administrator, unless otherwise provided in the will, must give bond. Real and personal property is equally liable for the payment of the debts. The executor or administrator must take into his possession all the property of the decedent, real and personal, except thfl homestead and personal property not assets. Time for probating will, within six years after testator's death, or if not ma.de known within that time, within one year after its discovery. Protest. Notice of dishonor of a. foreign bill of exchange can be given only by notice of protest. An inland bill of exchange is one otice drawn and payable within this State; all others are foreign. of protest must be made by an instrument in writing. giving a. literal copy of tho bill of exchange with all that is written thereon, or annexing the original, stating the presentment and the manner in which it was made, toe presence or absence of the drawee or acceptor, as the earn may be; the refusal to accept or to pay, or the inability of the drawee to give a binding acceptance; and in case of refusal, the reason assigned, if any, and finally protesting against all parties to be charged. Protest must be made by a notary public, if with reasonable diligence one can be obtained, and if not, then by any reputable person in the presence of two witnesses. A protest for non-acceptance must be made in the city or town in which the bill is presented for acceptance, and a. protest for non-payment in the city or town in which it i presented for payment. A protest must be noted on the day of the presentment, or on tne next business day. but it may be written out at any time thereafter. Notice of protest must be made and given by the notary who makes the protest. If a foreign bill of exchange on its face waives protest, notice of dishonor may be given to any party thereto, except that if any indorser of such a bill expressly requires protest to be made. by a direction written on the hill at or before the indorsement, protest must be made. and notice thereof given to him and all subsequent indorsers. An irregular indorser is not considered joint maker and must be given notice of prote t to be held . .,.. Redemption. The period of redemption from mortgage foreclosure and judgment sales of real estate is one year. and from foreclosure of chattel mortgages five days, if notice of intention is given at the sale. Replevtn. Personal property may be replevied at the time the summons is issued, or at any time before an. wer. An undertaking approved by the sheriff must be given in double the value of the property. Revision. The late t revi ion of the laws of the State is contained In the compiled Laws of 1913. Service. (See Actions.) Suits. (See Actions.) Taxes. AU personal property taxes becomes due on the first day of December In each and every year for whlch the tax was levied and become delinquent on the first day of March next after they become due, and thereupon a penalty of 5 per cent attaches and ls charged upon all delinquent taxes, and thenceforth there Is charged interest at the rate of 1 per cent per month on the ori~inal amount of taxes until same ls paid. On the 15th day of October following the year in which personal property ~xes are levied, the list of such uncollected taxes is turned over to the Sheriff of the County who immediately proceeds to collect the ame. A11 real e. tate taxes become due on the first day of December in each and every ;rear for which taxes are levied and one-half thereof becomes delinquent on tho first day of ~larch following. If ·aid one-half becoming delinquent on March 1st shall remain unpaid after that date, there attaches thereto a penalty of five per cent on the first day of June following, an additional penalty of two per cent, on the first clay of ovember following, a furth r penalty of three p r cent on the original one-half which became delinquent on March 1st,  as aforesaid. The other half shall become delinquent on the 15th day of October, and if unpaid on that date, a penalty of five per cent shall be added thereto. If said second one-half remains unpaid on the first day of November, an additional penalty of five per cent is added. On the second Tuesday in December following the year for which taxes were levied, the county Auditor ·ells lands for unpaid taxes. Land old for taxes may be redeemed at any time within three years from the date of sale by any person or corporation having an interest therein. who shall pay unto the Treasurer of the County for the credit of the person entitled thereto, the amount paid by the purchaser at the time of sale, with a penalty of 5 per cent and interest thereon at the rate specified in such certificate of sale, together '\\-ith all amount of subsequent taxe , penalties and intere ·t paid by the holder of such certificate of sale up to the date of redemption with interest at the rate of 1 per cent per month from the date of payment of such subsequent tax, which date of payment shall not be prior to the day upon which subsequent taxes became delinquent. Taxes and special assessments become a lien between grantor and grantee on the first day of December in the year levied. No deed can be recorded without County Auditor's certificate thereon that all taxes are paid. Testimony. (See Evidence.) Transfer of Corporate Stocks. (See Corporations.) Transfers of Capital Stock. Certificates of stock may be transferred by indorsement, by the signature of the holder or his attorney or legal representative, and delivery of the certificate, but is not valid except between the parties thereto until entered upon the books of the corporation. Trust Companies. (See Guaranty Companies.) Wills. Every person over the age of eighteen years, of sound mind, may, by last will, di!;pose of all his estate, real and personal. An holographic ,vill is one 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. Every will other than a nuncupa.tive will, must be in writing. The words "writing" and "written" include "printing" and " printed," except in case of signatures, and where the words are used by way of contrast  ~~~ti~~c1e~~:Js~'tt!~ !it t:r~~n:~tit1!di~~~e~~:;hx:;~~~tri: be made with ink, it must be so made. This a.pplie to all instru0  ments and papers. Every will, other than an holographic will and nuncupative will. must be executed and attested as follows: It must be subscribed at the end thereof by the testator himself, or some person in his presence, and by his direction must sub cribe bis name thereto; the subscription must be made in the presence of the attesting witnesses, or be acknowledged by the testator to them to have been made by him or by his authority. Tbe testator must, at the time of subscribing or acknowledging the same, declare to the attesting witnesses that the instrument is his will; and there must be two attesting witnesses, each of whom must sign his name as a witne. at the end of the will, at the te ta.tor's request and in his pre. ence. A witni>.ss to a written will must write, with bis name, the place of residence; and a person who subscribes the testator's name, by his direction. must write his own name as a witness to the will. But a violation of this section does not affect the validity of the will. A will of real or personal property, or both, or a revocation thereof, made out of this State by a person not having his domicile in this tate. is as valid, when executed according to the law of tbe place in which the same was made, or in which the testator was at the time domiciled. as if it were made in this State and according to the provisions of the laws of this State. No provisions made for proof of wills made out of the State different from those made within. A married woman may dispose of a.JI her separate estate by will, ,vithout 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 proved in like manner as other wills. A will executed by an unmarried woman Is revoked by her sub equent marriage, and is not revived by the death of her husband. A foreign will may be admitted to probate, upon the production of a copy of the same, and the probate thereof duly authenticated with a petition for letters, by the executor, or any other person interested in the will, to the county judge, and the same proceedings must IJe had for the settlement of the estate as in the probate of a domestic will.  SYNOPSIS OF  THE LAWS OF OHIO RELATI G TO  BANKING AND COMMERCIAL USAGES Revised by Messrs. STEARNS, CHAMBERLAIN & RoYo:-., Counselors at Law, Cleveland. ( ee Card In Attorney 'List.) Acknowledgm nt . A deed, mortga"'e, a power of attorney tor conveyance or mortgage. or lease for more than thre year.·, of anY estate or interest in real property, hall be signed by the grantor. mortgagor, or le or, and such signing hall be acknowledged by the grantor, mortgagor. or le· ·or, in the pre,ence of two witnes cs, who shall attest the igning and ub ·cribe their name· to the att station and such signing hall also be acknowledged by the grantor, mortgagor, or le or before a judge of a court of record in thi 'tate, or clerk thereof, a coun y auditor, county urveyor, notary public, o eparate examination of wife mayor, or justice of the peace. required. When the officer has a ea!, ame mu t be affixed. A notary public is required to have a. seal. The acknowledgment must  BANKING AND COMMERCIAL LAWS-OHIO be written or printed on the instrument to be acknowledged, and  not on a separate piece of paper, pasted on or attached to it. When executed, acknowledged, and proved out of this State, in accordance With the laws of the place where executed, as valid as if executed in this State. Actions. There is but one form of action, known as a civil action. An action must be prosecuted in the name of the real party in interest except one acting in the position of a trustee or a person in whose name a contract is made for the benefit of another, may sue in his own name. If plaintiff or defendant other than an Ohio partnership, individual names must be given. Administration of Decedent's Estates. The probate court has exclusive jurisdiction. Administration shall be granted by the probate court of the county where decedent was resident at the time of his death. If non-resident, in any county where there is an estate to be administered. If decedent dies intestate, administration granted, first, to husband or widow; second, next of kin, or if above renounce; third, to a creditor; or, fourth, such person as the court may deem competent. Executors and administrators required to give bond in such sum as the court shall order. Executors may be excused from giving bond where will so directs unless interested parties object. Inventory and appraisal of decedent's estate shall be fl.led in the probate court within thirty days after appointment. Claims a~ainst the estate of the deceased person must be flied with the administrator or executor for allowanre, verified by the oath of claimant that the same is justly due, and that no off-sets exist against the same. (See Proof of Claims.) Claims should be filed within six (6) months from the appointment of the administrator or executor. Appraisers should make allowance to widow and children under fifteen years for a year's support. Debts are paid in the following order: 1. Expenses of funeral, of last sickness, and of administration. 2. Allowance to widow and children for year's support. 3. De't>ts given a preference under the laws of the United States. 4. Taxes, etc. 5. Wages due manual laborers accruing within previous twelve months, not exceeding $150. 6. All other debts pro rata. Executors and administrators must file an account within twelve (12) months after appointment, and every twelve months thereafter. Affidavits. (See Oaths, etc.) Allens. An alien can hold and possess real estate as fully as a citizen. No person sha.11 be deprived of inheriting by reason of ancestors being aliens. Arbitration. Any controversy, except as to possession or title of land. may be arbitrated under bond to abide award. Legal proce may issue to compel attendance, oath being administered by judge or justice. The award is written and signed by arbitrators or a majority and filed in court named in bond or in common pleas of county. At next term after fl.ling judgment may be entered on award. Award for other relief than money is enforceable by contempt. Award may be set aside for fraud, corruption, etc. Controversies before justices may be arbitrated, likewise trade disputes and disputes as to value of stock of dissenting stockholders in railroad companies when property sold or leased to another company. Assignments. Voluntary assignments for the benefit of creditors may be made and are administered in the insolvency court. or probate court. Assignee must give bond, make inventory and appraisement and give notice. Creditors must file proved claims six months after Assignee notice, and if rejected must file suit thereon within 30 days. reports at expiration of eight months. Assignment to prefer creditor operates for benefit of all. Assignment with intent to hinder, etc., creditors void and operates for benefit of all. Preferred claims are taxes and labor. Attaclnnent In a civil action for the recovery of money may be had when defendant is a non-resident or a foreign corporalion, excepting such foreign corporations as by compliance with the law tberefor are exempted from attachment as such, or has ab conded or concealed h!m elf, or ls about to remove, convert or assign, or bas concealed his property with intent to defraud creditors, or where the debt was fraudulently or criminally contracted, that the claim i for work, or labor, or necessities. Plaintif? must give bond in double the amount at issue, except where defendant is a non-resident or a foreign corporation, when a bond is not required. An attachment against a non-resident or a. foreign corporation shall not be granted, on a claim other than a. demand arising out of contract, judgment or decree, or for cam;ing death, or personal injury by a negligent or wrongful act. Garn! bee proce. may be had in aid of attachment against any debtor of the defendant. If the answer of the garnishee i not satisfactory, the plaintiff may proceed against him in civil action. A citizen of this State may be enjoined from prosecuting an attachment in another state against a citizen of this State, to suhject to the payment of his claim the earnin~s of tbe debtor, which by the laws of this State are exempt from bemg applied to the payment of uch claim. Attachment before debt due. A creditor may bring an action on his claim before it is due and have an attachment ap;ain. t th~ Property of his debtor: 1. When a debtor has sold, conyeyed, or otherwise disposed of his property with the fraudulent. intent to cheat or defraud his creditors or to hinder or delay them m the colabout to make such . a!e, conve.yance lection of their debts. 2. or dispo ition of bis property with such fraudulent mtent. . 3. Is !),bout to remove his property, or a material p~rt thereof, with the mtent to cheat and defraud bis creditors, !tr to hinder and delay them in the collection of their debt . The plamtiff must give bond as in other cases of attachment, and must by himself, his agent or attorner, be~ore the action is brought or attachment i~ued: make ai:i <?at!J JD Wl'1tin~ showing the nature and amount of his clarm; that it 1s JU t, When 1t will become due, and the existence of any of the gr~und_ . above montbned. Attachment may be discharged by motion if Wrongfully obtained or by bond. Ranks. Under the State constitution the l~gi~lature cannot authorize banks of issue. Savings and loans associat1011s, and tru ·t companied are provided for by statute. Each such b~nk must report to the superintendent of banks on oath q~arterl~. which report m~t be published. Banking institutions may mvest JD: (a~ ommerc1al Banks. 1. Collateral securities. 2. Bonds of the Umted tate.. or tho, e for which the faith of the United ... tates is pledged to pi:ov1?e Payment of t,he lntere t and principal, includin~ bondi-_ of ~he D1i-tr1ct Of Columbia; also bonds or other interest bear1!}g obh[sat1~ms of an_y foreign government. 3. Bonds of interest bearmg obhg~t1ons of this or any other state of the United Stat~s. 4_. Legally 1. sued bon_ds or interest bearing obligations .of any cit¥,. village. <;o!-1-~ty, town: ~1p, school district, or other district, 0!' pol1t1cal subd1v1s10n of tb1 or any other state or territory of the United t.ates .. 5. ::\-1ortgage bonds, coqateral tru t bonds or notes of any regularly wcorporated company Wh1cn has earned for at least four years an amount ~n exce of !),11 fixed rharge 8 equal to double the interest charges required to be paitl. Such loan shall riot exreed 50 per cent of the actual value of the otes secured ~Y mortg~ge on real Property securing such loan. o. estate, where the amount loaned thereon, inclusive or prior encu~brances, does not exceed 40 per cent of th~ value o_f the i:eal. e tate 1f unimproved and if improved 00 per cent o! its value mcludrng 1mproveot mor~ than 50 lllents, which shall be kept ad~quate]Y m ured. Per cent of the amount of paid m capital, surplus and depo ~t _of such bank, at any time, shall be invested _m such real estate e<:ur1ties. (b) o.:avings Banks may inve. t m: 1. Any of the mve tments that can be made by Commercial Banks, except that they may loan 60 1>er cent of the amount of paid In capital, surplus and depo it on   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ls  1931  notes secured by mortgage on real estate. But all loans made upon personal security shall be payable and to be paid at a time not exceedmg six months from date. In the aggregate not exceeding 30 per cent of the capital, surplus and deposit shall be so Invested. 2. Stocks which have pa.id dividends for five consecutive years next prior to the investment, when this is authorized by affirmative vote of board of directors. No purchase or investment shall be made in stock of any other corporations organized or doing business under the same banking statutes of this State, or the National Banking Act of the United States. 3. Promissory notes of individuals, firms or corporations when secured by a sufficient pledge of collateral, approved by the directors, provided such loan shall not exceed 20 per cent of its paid in capital stock and surplus. [The codification of the Ohio Banking Laws, effective July 1919, should be consulted for further provisions.] Chattel Mortgages. Unless possession is given chattel mortgage is void as to creditors unless filed with county recorder. Oath of mortgagee must be attached showing a.mount due and that same was executed in good faith. Mortgage must be re-flied within thirty days before expiration of three years of original filing with new afflda vit. It is a criminal offense to sell, secrete, or remove mortgaged property. Conditional Sales. Where personal property is sold to be paid for in installments or rented to be paid for in installments, or delivered under conditional sale, purchase is void as to creditors unless instrument is executed, verified and filed as required of chattel mortgage. Vendor can11ot maintain posse-sory action without returning at least 50 per cent of amount paid where it exceeds 25 per cent of the contract price, anything in the contract to the contrary notwithstanding and whether such condition be expressed in the contract or not unless such property has been 't>roken or actu<1,lly damaged, when a reasonable compensation for such breakage or damage is allowed. \Vhere property consists of machinery, equipment, and supplies for railroads and contractors, for manufacturing brick, cement, and tiling, and for quarrying and mining purposes, no sums need be returned. Consignments. A carrier. warehouse man, factor, storage, forwarding or commission merchant, or his clerk, agent, or employe, who, ,vith intent to defraud, in any way disposes or converts to his own use any bill of lading, custom-house permit, or warehouse keeper's receipt entrusted to or possessed by him, or any property entrusted or consigned to him, or the proceeds of the sale of such property, or the profits, product, or result thereof, shall be imprisoned in the penitentiary. Corporations. (Domestic.) Domestic corporations are formed under gensral laws and for any purpose except professional business. Each stockholder is liable on his stock for any amount unpaid thereon and stockholders in corporations authorized to receive deposits are al'>0 liable for a further amount equal to the par value of the stock held by them. Articles are filed with secretary of state and must show name, location and purpose of corporation, amount of capital oiu~~~ ~ies~:~fJent~~ t1u~.g~~tbbefl!~~~wfe~:ese~:~:::e i~~:· officer whose official character is certified to by clerk of common  pleas court. Corporations are for profit or not for profit. If for profit, must have not less tnan five or more than fifteen directors, of whom the majority must be citizens of this state and each a holder of stock. Stock is personal property. Capital stock may be increased or diminished. Fee for incorporation one-tenth of one per cent of stock, hut not less than $10. Trustees of corporation not for profit are personally liable for debts. Insurance and certain other companies are incorporated under special laws. Reports must be made to secretary of state annually in May, and fee of threetwentieths of one per cent on outstanding capital be paid, in no case less than $10. Corporations may be formed with or without par value st,ock. F'oreign Corporations. Foreign corporations owning or using a part or all of its capital or plant in Ohio, except for banking or insurance must have certificates from secretary of state before doing business. 'l'o get cert,iflcate corporation must flle sworn copy of charter, state amount of capital stock, business, and purposes of corporation, and fix place in Ohio for its office and designate person upon whom process can be served. Fee varies from $15 to $50 according to capital stock. Failure to get certificate bars suit. Foreign corporations having principal place of business in Ohio shall file statement with secretary of state showing amount of capital stock, and shall pay annual fee of one-tenth of one per cent upon the proportion of its authorized capital stock represented by property owned and used and business transacted in this State. but not less than $10 in any case. Non-compliance bars suit and subjects corporations to penalties. Upon compliance corporations are not subject to attachment for non-residence. Annually in July foreign corporations shall report to the ecretary of state and pay fee of three-twentieths of one per cent upon capital stock repre, ented by its property in Ohio, in no case less than $10. Foreign corporations may hold title to land proper for their corporate uses. Costs. No costs allowed to successful party as and for attorney's fees. Courts. Supreme Court.-Court of last resort. A court of error except in cases where judgment of court of appeals is final. Has original jurisdiction in habeas corpus, mandamus. and quo warranto. Court of Appea}i;.- tate is divided into nine districts. Like original jurisdiction as supreme court and appellate jurisdiction and juri diction in error from the common pleas court. Common Pleas ourt.-Original juri diction in all civil cases where amount in dispute is more than 100, and actions involvin" title to real estate. Appellate juriJ diction from inferior courts and county commissioners in proper count,y. Probate Courts.-Original jurisdiction in control of estates of insolvents, deceased persons, minors, lunatics, imbeciles, and habitual drunkards; probating wills and settlement of estates; original jurisdiction in all matters of guardianship, inquest of lunacy; concurrent jurisdiction with common pleas court in appropriation proceedings. Justice of the Peace.-Exclu ive original juri diction in amounts le than $100; concurrent jurisdiction with common pleas court in amount from $100 to 300, except in cases involving title to real estate. Municipal courts for Cleveland, Cincinnati, Colum't>us, Dayt.on, Hamilton, and Youngstown have jurisdiction in their respective cities concurrent with justice cour s and in ce ·tain cases concurl'ent with common pleas courts. Designed to supersede justice courts and relieve ommon pleas of controYersie of 2,500 and less, the amount varying in the different cities. Insolvency ourt establiJ hed in Cuyahoga County ( leve1and) and Hamilton County (Cincinnati) having jurisdiction in all probate matters in the absence of the Probate Judge, also concurrent jurLsdiction with Common Pleas Court in many matters including divorce and proceedings in aid of execution. Deeds, Morti:ages, etc. All deeds or instruments conveying an lntere. t in real property shall be signed by the grantor in the presence of two witnesses, and such signing shall be acknowledged before a judge of a court of record of this State, or a clerk thereof, a county auditor, county surveyor, notary public, mayor, or justice of the peace, who shall certify the acknowledgment on the same sheet of paper, sub cribe his name thereto, and affix t1is official seal if he have o separate examination of the wife i required. Deeds and one.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1932  BANKING AND COMMERCIAL LAWS-OHIO  instruments conveying an interest in real e. tate must be recorded in the office of the recorder of the county where the land is located, and until so recorded or flied for record, are deemed fraudulent, as to bona fide purchasers without notice. Mortgaaes on real estate take effect from time of delivery for record. Mortgage first presented must be first recorded. Private seals have been abolbhed in this State. Depositions. Depositions can only be used in the following cases: 1. \Vhen the witness is absent from, or i a non-resident of tbe county. 2. \Vben witness is decea ed. or unable to attend the trial. 3. Testimony upon a motion, where oral examination is not required. As soon as service is had in a case, either party may begin taking depositions. Written notice of the intention to take depositions must be given the oppo'ite party, specifying the court, parties, time and place of taking, and if the testimony of a party is to be taken, the notice i:nust so specify. Sufficient time must be iriven the adverse party to reach the place of taking by the usual routes, and also one day for preparation, exclusive of the day of service. The taking of depositions must be continued from one bw,iness day to the next. The depo ition should be written in the pr&ence of the officer taking the same, and when completed, must be read over by the witness, and by him subscribed, and the officer should then conclude the deposition by the following certificate: State of. . ...... l ........ County. I ss: ........ , a ........ in and for the county and State above named, duly commissioned and qualified, do hereby certify that the above named . . . . . . was by me first severally sworn . . . . . . to testify the truth. tbe whole truth, and nothing but the truth, and that the deposition by ...... subscribed as above set forth, w .. reduced to writing by ...... , and w .. subscribed by the said witness . . ... . respectively in my presence, and w .. continued from day to day, as above set forth. that said deposition w . . taken at the tune and place specified in the notice hereto attached, and t,hat l am not counsel, attorney, or relative of either party, or otherwise interested in the event of this suit. In testimony whereof, I have hereunto set my hand and official eal, this ...... day of ........ , A.D. 19 ... . ( ignature and official title.) [Seal.] Depositions out of the State may be taken before a judge, justice. or justice of the peace, notary public, record, of chancellor of any court mayor, or chief magistrate of any city or town corporate. a commissioner appointed by the governor of the tate, or any person authorized by pecial conu:nis.5ion. Descent and Distribution. Any real estate which came to decedent by descent or devise or cteed of gift from any ancestor descends as follows: I. To the children or legal representatives. 2. If no such children or legal representatives, then to hu. band and wife for life. 3. If no hu band or wife, to the brothers and i ters of the blood of the ancestor from whom the e tate came. 4. If no such brothers and sisters, and the estate came by deed of gift from an ancestor who is living, the estate shall a<;cend to such ancestor. 5. If ancestor he deceased, then to his children; if no children, then to tne relir.t of such ance tor if a parent of the decedent: if none such, then to the brother · and sisters of sucn ance ·tor; if none _uch, then to the brotners and si'>ters of tne half-blood of intestate. G. If no half-brothers of intestate, then to tne next of kin of the intestate of the blood of the ancestor. \Vhen tne relict of a deceased husband or wife shalJ die intestate, and without issue, possessed of an real estate· or personal property which came by purchase or from any former decea.sed husband or wife by deed or gift, clevi. e, or by bequest, then such estate shall 1>ass to and ve t in the children of said deceased husband or wife, or their legal representatives. If there are no children. then sucn estate hall pass one-nalf to the brothers and sisters of such intestate, and one-half to the brothers and sbters of such deceMecl bu band or ,~ife from wh1ch such estate came. If the e tate came not by descent, devi. e, or deed of gift, it descends as follows: 1. To children. 2. If no children, to husband or wife. 3. If no husband or wife, then to brother and isters of the whole blood. 4. If none such, then to brothers and sisters of the halfblood. 5. If none such, then to the father, if living; if not, then to the mother. G. If the.·e be dead, then to the uext of kin. The personal property of a deceru ed inte.-;tate shall be distributed as in the case of an e'>tate coming not by descent, except such right as the · widow or widower may have. Dower. A widow or widower who bas not relinquished or been barred of the same, shall be endowed of an estate for life in one-third of all the real property of which the deceased con, ort was seized as , an estate of inheritance at any time during the marriage, and in onethird of all the real property of which tne deceased consort, at decease, held the fee simple in rever.ion or remainder; and also one-third of all the title or interest that the decea ed consort had, at decease, in any real property held by article. bond, or other evidence of claim; and the widow or widower may remain in the man.·ion hou. e of the deceased con ort, free of charge, for one year, if dower is not sooner assigned; but dower sball not be assigned to any widow or widower in any real property of which the deceased consort, at decease, held tne fee simple in reversion or remainder, until the termination of the prior e tate. Executions issue from the court of common pleas to any county. Execution against the per. on will only i."Ue when the judo-e of one of the superior court. is atisflcd of the existence of cause--such a concealment of property by the debtor-or where debtor was arre ·ted before judgment and not discharged under tile law. Lands levied on must be appraised by three di-;interested free-holders, and cannot be sold for Jess than two-thirds of such appraisement. There is no redemption of lands after sale; and stay of execution is allowed in any case taken to higher court. Executions arQ stayed before justices, by entering into a bond to adverse party within ten days after rendition of judgment, on judgments for .; and under, -Jxty day.·; 5 and under $20, ninety days; 20 and under 30, 150 day ; .50 and upward., 240 day·, ancl in .:\Iunicipal Court on judgment for ->0 and under for 1.;o day:,; and <ner ...>0 for I U days, , ·o .·t, Yon judgment in favor of any person for wages due for manual labor i>crformed. ExemJltions. JCvery head of family and widow may hold exempt from execution, at,tachments or sale, wearing apparel. b d aud furniture, certain cattle, certain religious books, family pro, i. ion,:, sewing machines, tools and implements worth 100, personal earning, for three months, previous to issuino- of attachment or rendition of judgment. Every unmarried woman may hold exempt wearing apparel, sewing and knitting machines, religious books and beneficiary funds not exceeding s-o. Regalia. etc., of benevolent ocieites is exempt, Property of municipality or fire companie;, for extinguishing fires is exemp , but owner may mortgage. Hu band and wife living together or widower living with unmarried daughter or minor son, and e,·ery unmarried female having custody of minor child, if resident of Ohio and not owner of homestead, may hold on ·election 500 worth of pe~onal property exempt in lieu of homestead in addition to special exemptions, excepting lien of a vendor for purchase money. Guarantee Companies. The law provide. that guarantee companies complying by clepo ·it of securiLies are accepted on statutory bonds.  Holidav . Every Sunday and the fir ·t l\Ionday in • eptember (Labor Day) are holiday· for all purpo ·es, the first Tuesday after the first Monday in .. .,.ovember (election day) from 12 o'clock noon to 5.30 o'clock P.l\1.; also, every Saturday afternoon from twelve o'clock noon. For holidays as to presenting, etc., of commercial paper, see Notes and Bills. Homestead. Husband and wife living together, \\idow or widower living with unmarried daughter, or unmarried minor son may hold exempt family homestead not exceeding 1,000 in value. Wife may make demand if husband refuses, but neither can demand if other has a homestead. "\'i'here a home. tead is sold for lien, owner may exempt $500 out of exce sin lieu of homestead. Intere t. The legal rate is 6 per cent. Parties may contract in writing for 8 per cent. .. 'o penalty is atLached for the violation of the law. If a contract is made for a higher rate than per cent, the contract as to interest is 'Oid, and the recovery is limited to the principal sum and 6 per cent. Interest i computed upon judgments and decrees at the rate specified in the instrument upon which said judgment or decree is rendered. Intere ·tis not recoverable on open running accounts, when tbere are no circumstances from which an agreement to allow interest, can be inferred, and there bas been no vexatious delay of payment. Open accounts draw interest after statement is made and account rendered. Interest from and after maturity may be allowed on items of wages or salary, payable monthly. Judgments are a lien on real property of defendant within the county, which lien continues for flye year . If execution be not levied within one year from the rendition of the judgment, said judgment 1 0 it~~.t tJ~!te i~e~~fit;1{u~~~e3\JrJ~n°b~! :ia~!. ~~~ becomes dormant and cea es to operate as a lien. A dormaot judgment may be re,·ived on motion. or by action within twenty-one years. Lien . Every person who does work or labor, or furni-;hes machinery, material or fuel, for constructing, altering or repairing a boat, ve ·sel or other water craft, or for erecting, altering, repairini:i; or removing a house, mill, manufactory, or any furnace or furnace material therein, or other building, appurtenances, fixture, bridge or other structure. or for digging, drilling, boring, etc., any oil, gas or other well, or for altering, repairing or constructing any oil derrick, oil tank, oil or gas pipe line, or furni bing tile for the drainage of any lot or land, by virtue of a contract, expre. or implied, with the owner, part owner, or le see, of any intere. t in real estate, or the authorized agent of the owner, and every per·on who hall, a ,'ubcontractor, laborer or material man perform any labor or furnish machinery, materials or fuel to either original or principal contractor. or any subcontractor in the carrying forward, performing or completing such contract, shall have a lien upon the structure, etc., and upon the land whereon the ame is located. upon 11Jing in the office of the Recorder in the county in which . a.id labor wa performed, or material was furnished an affidavit bowing the amount due over and above all legal off-sets, a de. cripLion of the property to be charged with the lien, the name of the per. on for whom such machinery, etc .. were furnished and labor performed, and of the O\vner. part owner or le. ·ee, if known . . aid affidavit must be flied within ,·ixty day from the elate on which the last machinery, etc., shall have been furnished, or the la t labor performed. The original contractor shall, whenever any payment of money becomes due from the owner, or whenever he desires t,o draw any money from the owner, under such contract, or upon written demand of any mortgas:ee, make out and give to such owner. etc., a statement under oath showing the name of every ubcontractor or lahorer in his employ, and of every person furni. hing machinery, labor, material. etc., which statement shall be accompanied by a certificate signed by every person furni bing machinery, material or fuel to him, and. hall also deliver to ~uch owner, etc·., similar worn statement from every ubcontractor accompanied by like certificate . Until such tatements are furni hed the owner, contractor, ubcontractor, etc., shall have no right of action again:t the owner or lien, and any payments made by the owner, before such statements are made, or without retaining sufficient money to pay such subr.ontractors, etc., as shown by . aid tatements, . hall be considered illegal and made in ·iolation of the rights of tbe person intended to be benefited, and the rights of such material men. etc .. to a lien . halJ not be effected thereby. The liens of subcontractor· . hall be superior to any already taken by the principal contractor, but have no priority among themselve , except liens flled by persons performing manual labor shall have priority to the extent of the labor performed during the thirty days immediately preceding the date of the performance of the 1~ t lal;>or. The owner, part 01 ner, etc., shall not be liable to the subcontractor, material men or laborers for any greater amount than he contracted to pay the original contractor, and shall be entitled to set of! any damage which he may sw·tain by rea on of any failure or omission in the performance of uch contract. · Raid lien hall remain .·ix years fr m and after the date of the fl.ling thereof, but if action i. · brought "ithin that time t-0 enforce the lien, the ame shall continue in force until final adjudication. Liens are al o given to persons who furni. h material for the construction of roads, sidewalks, ditches, drains, etc. Limitation . "\V'ithin twenty-one years: An action for the recovery of the title or po. s -<sion of real e ·tate or on a judgment. ,Vi thin fifteen years: An action upon an a n·eement or promise in writing. Within ten year·: An action upon an official hond or undertaking of an assignee, trustee, or administrator. ,vithin six years: An action upon a contract not in writing either e.·press or implied. "\Vithin four years: Actions for trespa s, re overy of peronal property and relief on the ground of fraud. "\Yithin one year: ctions for libel, lander, a ·sa.ult,, battery, malicious pro.·ecution, fals imprisonment or malpractice: ac ion upon a. tatute for penalty or forfeiture. An action may be taken out of the tatute by part payment or an ackno\\ ledgment or promise in writing. l\larried ,,·omen. F me covert may ue and be uod a if . ole, and husband . hall join only "hen caw of actiun i · joint. Like proceedingi, shall be had ancl judgment rendered a though he were ole. Any interests, 1e!?;al or equitable, in realty or pcr.-onalty belongin~ to women at marriage, or vhich ar' acquired by her during r.overture becomes her , parate prope1·ty under her .·ole c·ontrol, not to be taken for debts of husband or conveyed or incumbered by him, and to be either conveyed by her a· if sol , (e. c pt a· to do ~-er of hu band). husband nor "ife, as . ur.h, b answerable for the action· of the other. i.'\linors. The an-e of majoriLy for male:s is twenty-on years; females, eighteen years. fortgag s must be execut d as dePds, and the fir t mortgage recorded bas the preference. \.re for clo,.,ed by uit in the court of common pleas, and ther • i · no r demption of land.· sold under foreclosure after confirmation of ale by the court. ( ee 'hattel Mortgages., . ·ote and Bill of 1<: ·chan e. All bond , notes, bill . and checks payable at a day or after ight, are clue and payable on the day mention d without day of grace. \ ~en the day of maturity fall. upon unday or a legal holiday, the in. tmment i payable on the next succ-eeding bu ine: day. In trument falling du on • aturday are to he presented for payment on the next succeeding bu ine day. except that instrument payable on <lemand m y, at the option of the  ~~:J  rn~~::~1  1933  BANKING AND COMMERCIAL LAWS-OKLAHOMA holder, be presented for payment before 12 o'clock noon on Saturday when that entire day is not a holiday. The 1st day of January, the 4th day of July, the 25th day of December, the 22d day of February, the 30th day of l\1ay, first Monday of September of each year, the 12th day of October, and fast or thanksgiving days or any day which may hereafter be made a legal holiday, shall as to payment, presentment, or protest be considered as the first days of the week. When January 1st, July 4th, December 25th, February 22d, or May 30th, fall on Sunday, the following l\.1onday shall be a holiday. Oaths. An oath required by law may be taken before the following officers: Within State-A judge or clerk of supreme court. or court of common pleas, a probate judge, jw;tice of the peace, notary any officer authorized by Pa~~~~'tak!iodepo~W~irJ st~~  &tt::i:_- BY  Powers of Attorney. A power of attorney for the conveyance, mortgage, or lease of any estate or interest in real property, shall be signed, attested, acknowledged, and certified in the same manner as deed,;;, mortgages, and leases. Practice. Practice is regulated by the code of civil procedure. Proof of Claims. All claims against an assignee or administrator must be verilled by oath of the claimant, his agent or attorney that the same is just and lawful, and that the said amount is now due and unpaid; that there are no set-offs or counter claims, and what if any security the claimant holds. A default judgment may be taken before a justice of the peace on an account thus verified. Repfovin. An order for the delivery of specific personal property shall be issued upon the filing of an aflidaYit of plaintiff, his agent or attorney, showing: 1. A description of the property claimed. 2. That tho plaintiff is the owner of the property, or has an interest thet·ein, stating the facts. 3. That the property i wrongfully detained by the defendant. 4. That it was not taken on process issued against the plaintiff, or if so takf'n. that it is exempt from exeCLttion. An order for the delivery shall thereupon issue, commanding the oillcer to take po session of the property. The sberi.tl' shall then take the property, and cause the same to be appraised. The sheriff shall deliver the property so taken to plaintiff after the expiration of tlvo days, upon plaintiff's executing and undertaking to tbe defendant in. double the value of the property taken; that plaintiff will duly Pro ecute tho action and return the property, or pay the value o apprab,ed; provided, however, that the defendant may at any time Within five days execute an undertaking to the plaintiff that he shall return the property, or pay the value so appraised, together with costs, etc., whereupon the property shall be returned to the defendant by the officer. If the property replevined consists of heir-looms. personal keepsakes, or otner articles of like nature. the beriff shall retain and safely keep the same. subject to the order of the court, if the defendant within t n days serve written notice that he will demand the return of the same upon final hearing of the case. The action of replevin may be maintained before a justice of the peace under proceedings, as abo:ve stated, when the appraised value of the property is $300 or less. If tho appraised value of the property exceed $300, he shall then certify his proceedings to the court of common pleas. Sales of Goods. Sales Code. Sale in Bulk. Sales in bulk, otherwise than in the ordinary cour:so of trade, shall be void as against creditors of the sel!er unl!'ls the purchaser demands and receives from the seller a written h t, certified under oath, containing the names, addresses and amounts due each of the seller's creditors and unless the purchaser shall at lea. t five clays before taking pos:e.-sion of said goods or paying therefor notify personally or by registered mail. every cre(litor whose namo appears on said list or of whom the pm·chaser has knowledge, of the Proposed sale, the price, terms and conditions t_hereof_. _ADY: purchaser not conforming to those terms shall at, any time w_1thm mnety day' after such sale, upon appli<'ation of any of the cred1t9r · of the seller, become a trustee and be held accountable to such creditors fot· all such goods. Service. Service may be made by publication for non-residents of State. . Stay of E.cc-ution . ... ·o stay of execution is all(rn d. except on Judgments rendercu hv justices of the peace or mun1c1pal court, and_ Where ea.'<es arc taken· from a lo" Pl' to a high •r court. I•or ·tay of cx,•eutio11s in justice courts, sc>c I~. ecution;.. Supplem.cntary Proceedinj!s. Such proceeding: _in this ~ato are known by the name of proceedings in aid of execut1011, wherem a debtor, as well as persons suyposed to be indebted to hi:ffi, may be summoned before a referee, all( an examination bad a to his pr~1PE:rt,Y an<:). rights in action, whicn if found may be subjectea to the plamtiff s claim. Taxes. Taxes on real estate become a lien on the day preceding the second 1 Ionday in April. Ta.·cs are due on _December 20th, of each year, but the party charged, may, at bis option pay one-half on that date and the remainder on or before .June 20th, next. If four consecutive years of taxes remain unpaid the S_tate n:iay forec!ose and . ell the land without appraisal and wit,hont rw;ht of r~dempt1<?UIr !).II the taxos and penalties are paid hefore th_e .ale, the t:>tate relinquishes its claim. There is a collateral succession tax. ame as other states. ,l·arehouse Receipts. Wms. Everv last will and testament (exc·e?t nuncupative ~!ls} shall be in writing, and shmecl at th<;i en<;l t,hereof by the part;r m~km~ tb.e same or by some other person Jll his pre.,·ence and by ht e. pre. s directlon,' and shall be atte t cd and _subscribed in the prcsenc_o of such Party by two or more competent witnesses who saw the testator s_ub. o legatee _or dev1 ·ce scribc, or board him ackuowlcdge the same. u_nder the will should be a witness. Verbal w1l_l~ made m tt1_e. la.~ sickness will he valid in respect Lo personal estate 11_ reduced t? w_nting anct subscribed by two competent disinterested w1tne:-.. es w1t1un ten clays after tllo speaking of the testamentary words, and otr~recl for Probate within six montlls after t,lle death of the te. tator. < ontest.· ?f Wills mu.% be bea-un "ithin ono year after probate, except by IUfauts and persons of unsound mind or in c~ptiy\tf, and a~ to S?Ch a /iko perio<.l exists after the respective d1sab1ht1es_ are 1em_o,ecl. Every will when admitted to prollat must be flied m the ofhce of the probate judge. \Vills ex cuted, p1:oved, and allowed out of the ~tate may be admitted to record in this State under proper proceeding' in the probate court.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  SYNOPSIS OF  THE LAWS OF OKLAHOMA RELATI G TO  BANKING AND COMMERCIAL USAGES Revised by OLIVER C. IlLACK, Attorney at Law, Oklahoma City, Okla.  t  Accounts. In all civil actions, allegations of the correctnes of any account, duly verified hy the affidavit of the party, hi agent or attorney, shall be taken as true, u,nless tho denial of the same be verified by the affidavit of the party, his agent or attorney. Acknowledgment . An acknowledgment by individual,;; of any instrument affecting real estate mu t be substantially in the following form, to wit: State of Oklahoma, County of ............. . ... . ss. Before me, a. .......... in and for said county and state, on this . .. .. . . day of ........ . . 19 .... , personally appeared ............. . and ...... . .. .. . to me known to be the identi al person . ....... who executed the within and foregoing instrument and acknowledged to me that . . ...... executed the same as .......... fr e and voluntary act and deed for the u. e. and purposes therein set forth. Every acknowledgment must be taken under tne seal of the officer taking the same; and when Gaken in this State may be taken before any notary public, county clerk, court clerk or county jude;e cf the county court where the land is situated; and when taken out of the St,ate, it may be taken before a. notary public, clerk of a court of record, or commissioner of deeds, duly appointed by the Governor of the , t.ate, for the county, state or territory where the same is taken; and when ta.ken in any foreign country, it may be taken befo1·e any court of record, or clerk of such court, or before any consul of United States. The date of the commission of the officer taking the acknowledgment must also be given. Deeds executed by an attorney in fact should be acknowledged a.,;; the deed of the principal, rather than that of the agent. Corporation Acknowledgment. . ....... State of Oklahoma, County of .............. ss. Before me, ........... . .......... a notary public (or other officer) in and for said county and state, on this ..•.. . day of ............. . 19 .. . . , personally appeared .............. to me known to be the identical per. on who , ubscribed the name of the maker the~eof to the foregoing instrument as its (attorney in fact, president, v1cepresident, or such officer as be may be) and acknowledged to me that he executed the same as his free and voluntary act and deed and as the froe and voluntary act and cleed of such corporation, for the uses and purposes therein set forth. \Vitness my hand and seal the day and year last above written. . ............... (Seal). Ao.mini tration of Estates. County judge bas exclusive jurisdiction. (Seo \\' ills.) ~ otice to creditors to present claims ~ust. be given by posting in three public places in county and by p~1b~1cat1on in a newspaper for two weeks. Claims not presented w1thm four months from date of notice are barred. The debts of the estate must be paid in the following order: 1. Funeral expens~s. ?· _Exp~nses of last sickness. 3. Funds neces. ary for support of family for mnety days. 4. All taxes. 5. Debts preferred under the law. O. Judgments rendered a11;ainst decedent in lifetime, which are liens, and mortgages in order of their dates. 7. Demands or claims presented to administrator for allowance, or proved. within four m,:mths after notice of his appointment. 8. All other demands. Suits may be maintained and defended by foreign administrators. Appeals. Appeals filed in all cas s from the justices of the peace, municipal courts, and board of county commissioners of the county, and from the county court on prol.JaLe matters where a question of fact is involved to tne district court or superior court. Appeal from the county court, superior court and di.·trict c_ou_rt.. in civil ca1,es, is made direct to the supreme court, and upon crimmal cases, from the court of trial to the criminal court of appeal. . Appeal may a_Js~ be had from the corporation commi. sion and such other commissions or courts as are es1ablished by law, to the upreme court. A;isimment. An insolvent debtor may, in good faith, execute an assignment of property to one or more assignees, in trust towa1:d the satisfaction of his creditors, which will not, however, be val!d if it be upon, or contain, any trust or condition hy vhich any creditor is to receive a preference; hut in such case, the property of the debtor become a trn t fund to be administered in equity, inuring to the benefit of all creditors. Tho debtor is incoh'ent when he i. unablo to pay 11is creditor:, from hi. own means, his debts when they f~ll due. An assignment is void again"t any creditor not assentin11; to 1~. 1. If it tends to coerce any cre-Utor to release or compromise his demand. 2. Provides for the payment of any claim known to the assignor to bo false. 3. Reserves any interest in the assigned property t,o tnc assignor, or for his benefit, before his debts are paid, except onfers upon the assignee any po,yer hi· lawful exemptions. 4. wnich, if exerciseo, might pre,·ent or delay the immediate com·erswn of the assign eel propct·ty to the purpo. ·e · of tne trust, or 5. Exempts the a..;:ignce from liability for neglect of duty or mi.·conduct. The a: signment must be in writing, . uhscribcd hy the as-;ignor, or by his auLhorized agent, in writing, and must be acknowleclgect. Within twenty days after the assignment, the assignor must make and Ille a full and true inventory showing: 1. All the creditors. 2. 'l'he place of residen<'e of each creditor if known, and if not, the fact that it is not. 3. The . um owing each creditot', and the 11ature of t,he liahility, whether ari ·ing on written :.;ecurity, account or otherwise. 4. The true con ·id oration of the liabili1.y in each case and t11e place when it arose. r;. Every existing judgment. mol'te-age or other security for the payment of any d ht or liability of t110 assignor. 6. All property of the assignor at the date of the assignment which is exempt by law from execution, and 7. All of the assignor's property at the date of the assignment., both real and personal, of every kind not exempt, and the incumbrance exisling thereon, and all voucher. and sccw·ities relating thereto, and the value of. uch propel'ty according to the best knowledge of the assignor. 'The a ·signor mru.t make affidavit. that the inventory is in all respect. just and true, according to his best knowledge and beli f. The as. ignment must be 1·erorded in the otnce of the county clerk and the iin-entory must be flied witn such officer. If mot'e than on assignor, the a,signment, or a copy of it, must he recorded, and a copy of tile invent,ory filed in ev ry county in which any assignor has a place of busin ss. Tho filing and recording of inventory and assignment must be done in twenty days after the assignment, or it is void. Within thirty days after tho date of an a:·sisrnment for the benefit of creditors the assign e mw tenter a bond to the tate, with sufficient ureties, the amount of aid bond to be named anct approved by tho judge of the district court of the county in which the original inventory was flied, and conditioned for the faithful discharge of the trust and due accounting for all moneys r ceived by the a.,;; ignee, which bond must be flied in the same office with the original im·entory. Attachment. The plaintiff in a civil action may, at or after the   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1934  BANKING AND COMMERCIAL LAWS-OKLAHOMA  - -------------------  - - - - -- ·  commencement thereof, have an attachment against the property of tne defendant: 1. When the defendant or one of the several defendants, is a foreign corporotion, or a non-resident. 2. ·when the defendant, or one of several defendants, has absconded with intention to defraud his 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 to defraud his creditors. 6. Is about to convert his property, or a part thereof, into money, for the purpose of placing it beyond the reach of his creditors. 7. Has any 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. Fraudulently contracted the debt, 0r fraudulently incurred the liabiHty or obligation for which suit is about to be or has been brought. 10. Where the damages for which the ae4iion is brought are injuries ari ing from the commission of some 11. \Vhen felon:Y" or misdemeanor, or the seduction of any female. the debtor has failed to pay the price or value of any article or thing delivered, wnich by contract tle is bound to pay upon delivery. The order of attachment is made by a clerk when there is flled an affidavit of the plaintiff, his agent or attorney, showing : l. The nature of the plaintiff's claim. 2. Ttlat it is just. 3. The amount which the affiant believes the plaintiff ougnt to recover. 4. The existence of some one or more grounds for the attachment above enumerated. But the order shall not be issued until an undertaking on the part of the plaintiff bas been executed by one or more sufficient suretie approved by the clerk and filed in his office, in a sum not exceeding double the amount of plaintiff's claim, to the efl'ect that the plaintiff shall pay to the defendant all damages which be may sustain by reason of the attachment if the order be wrongfully obtained; but no undertaking shall be required where the party or parties defendant are all non-residents or a foreign corporation. The order is directed to ttle sheriff and requires him to attactl the lands, tenements, goods, stocks, rights, credits, moneys and effects of the defendant in his county. Anet orders may issue to the sheriff · of several counties at the same time. The return day of the order when issued at the commencement of tne action . shall be the same as that of the summons, and when issued afterwards, it shall be returnable in twenty days. If several are issued, they must be levied in the order received by the sheriff and take precedence as levied. An order of attachment may be granted by the court in which the action is brought, or the judge thereof, although ttle claim is not due, upon the filing of the usual undertaking and the affidavit of the plaintiff, bis agent or attorney, showing the nature of the plaintiff's claim, that it is just, and when the same will become due, and that the debtor has sold, conveyed, or otherwise disposed of his property with the fraudulent intent to cheat and defraud his creditors, or to binder or delay them in the collection of their debts, or is about to make such sale, conveyance or disposition of his property with such fraudulent intent, or is about  :gere~~6f ~}s cYte°ftinrti'o~r d~f~~~i~:l EfsrtcJ~Ji~~~~.w~~\t~t3:J1n°; ~~ delaying them in tne collection of their debts. No bond is required in the attachment of the property of a non-resident person in any court. Banks. State banks may be organized by three or more per. on the majority of whom shall be residents of this State. The capital stock shall be at least ten thousand dollars and . hares of stock shall be one hundred dollars each and graduated in amount according to the population of the city in whicn tne company is located. No officer can horrow of the bank in which he is an officer. Fifty per cent of the capital must be paid in to transact bu iness. The stockholder is liable additionally for the amount of stock O\vned and no more . The funds are limited strictly for use in the banking business. The state banks are examined at least twice each year. When the deposits of a bank exceed ten time~ its capitalization it shall witnin one year be required to increase its capital stock. The state banks are examined and required to report quarterly each year to the bank commi sioner, and reports may be required by the bank commissioner at any time. By law it is provided that a guarantee fund I created to guarantee to the depositor the rerurn of all money clepositea in state banks of this State and the bank commi. sioner is authorized to close a bank when insolvent or violates the rule and regulations provided by law, and to begin at once to pay the depo. itors of such bank. and if sufficient funds are not in the bank to pay the depositors the guarantee fund is drawn upon and the assets of the bantc become by operation of law the property of the state's guarantee fund to bank depositors until same is reimbur ect. Every bank doing business under the laws of this Fltate shall have on hand at all times in available funds. the following sums, to wit.: Banks located in towns or citie naving a population of !es.<; than twenty-five hundred per oru an amouut equal to 15 per cent of their entire deposits, two-thirds of which amounts may consist of balance<; due to them from good, solvent banks, selected from time to time with the approval of the bank commil ioner, and one-third shall consist of actual cash provided, that any bank that has heen made the depository for tne reserve of any other bank or bank <;ball have on hand at all times in the manner provided herein 20 per cent of its deposits. ,Vbenever tne available funds in any hank <;ball be below the requirecl amount, such bank shall not increase its liabilities l>y making any new loans or discounts otherwise than the discotmtin~ or purchasing of bills of eicchange. payable at sight. nor make any dividends of its profits, until the re uired proportion betw en the aggregate amount of its deposits and Its lawful money reserve ha been restored; and the bank com mi sioner shall notify any bank whose lawful money re.'erve shall he below the amount reriuired to be kept on hand to make good such re,,erve, and if such hanks or a.·•mciation shall fail to do so for a period of thirty days after ·uch notire, it may be deemed to be insolvent, and the bank commis..;inner may take possession or the ame. and proceed in the manner herein pro-  ~1~~  0  ,~~k  0  t~e)~i:i~zdi~ a~n! \~:::,t o~~r--k;, seit: g:::~ce :i::ii~ir;:;,e; from any other bank or ~- ociatlon which shall refuse or ne le t to furnish him with such information a~ he mav re 1uire from time to time relating to Its hu<;iness'with any other hank doing hu,ine s unrler this act, which shall enable him to determine its solvency: pro, Ide<! that all savin~s ac;.sot'lations whir'h do not transact a general ban ·iJJ'Y business snall be requirf'ci to keep on hands at all i,nes in a r tual cash. a um equal to lO per cent of their deposits, all(l <;hall he re 1uire<I to keep a like ~mm Invested in good bonds of the United State-;, or state. county, school district or municipal bonds of the ;'late of Oklahoma, worth not le ·s than par. banker ha.s a general lien, dependent on Lien on Deposits. po. se.<;.<;ion. for all that is due him a.'> such, upon all property In hi-; hands belonging to a customer. for tbe balance due him from .·u ·h customer in the course of the busine s. Penal tatute. Tne law provides that it shall be unlawful for any president, director, ma11a~ r. cashier, or other officer or clerk 1 1 ii~~n<ir ~~~k1 !i~~i1~ ~~t~nc~~a~!c~~"!· ~~t·t~ei~et~r~:tI'o~~;ta1:i;°J!gt after having knowledge of the Insolvency of tbe hank. or tha it i. in a failini:; condition, and for uch violation the off<mcler is subjected to the same penalty as ror stealing a like sum: and all omcers are jointly and severally liable for the amount lost to any one by such violation, the remedy extending to the executors and adminio:;trators of the estate of such officers. 1  Chattel Mortgages. A mortgage on personal property must be signed by the mortgagor. Such signature may either be attested by acknowledgment before any person authorized to take acknowledgments of deeds. or it may be si~ed and validated by the signatures of two persons not interested therein . Tne chattel mortgage or a duly authenticated copy thereof must be flied in the office of tne county clerk of the county where the property ls situated. A chattel mortgage insufficiently witnessed or unflled gives no right against any one. It may provide for attorney fee and contain a power of sale. When the conditions of a chattel mortgage have been broken, it may be foreclosed by a sale of the property mortgaged. Not.ice of such sale shall be given by \',osting in five public places in the coumy where !6:std~cf~t~i'if?r\ ~neT~~~;~~e~~ ~~:cPJ~S1;!s~crsa1!. so~ii;tJ~rc;the assignor, if any. 2. The date  the mortgagor and mortgagee, and of the mortgage. 3. The nature of the default and the amount claimed to be due tnereon at the date of the notice. 4. A description of the mortgaged property, conforming substantially to that contained in the mortgage. 5. The time and place of ·ale. and 6. The name of the party, agent or attorney foreclosing suctl mortgage. The mortgagee, bis assigns, or any other person may, in good faith, become a purchaser of the property. If foreclosed by an attorney of record, an attorney fee, if specified in the mortgage, may be taxed as costs. A chattel mortgage is valid for three years from the date of filing with tne county clerk. At any time after foreclo ure by notice has been commenced and before sale, if it shall be made to appear by the affidavit of the mortgagor, hi · agent or attorney, to the satisfaction 1 ;°n~!e~; gfa~~ ~~~:/~{~=r~~li~~~~~~;~~~f~t~g~tl;i7~gtft! any part of the amount claimed to be due on the mortgage, such judge may enjoin furtner proceedings and direct foreclosure to be made in the district court. Failing debtor may now prefer one or more of his creditors by mortgage. A chattel mortgage ceases to be valid against creditors. subsequent purchasers of incumbrances in good faith after the expiration of three yea.rs from the filing thereof, unles a copy of the mortgage and a ·worn statement of the amount remaining due thereon be flied anew in the office of the county clerk of the county in which the mortgager then resides. Conditional Sales. Any instrument in writing, or promissory note, evidencing tne conditional sale of personal propArty, which retains the title to the :;a.me in the vendor until the purcnase price is paid in full, shall be void as against innocent purch~ ers, or the creditors of the vendee, unless t,he original instrument or a true copy thereof shall have been deposited in t.he office or the county clerk in and for the county wherein the property shall be kept; and when so deposited, it shall be subject to the law applicable to the filing of chattel mortgages; and any conditional, verbal sale of personal property, reserving to the vendor any title in the property sold, shall be void as to creditors and innocent purchaser - for value. Con tracts may be made by all persons except minors. persons of unsound mind, and persons deprived of civil rights. There is no distinction between sealed and unsealed instruments. Minors are males under twenty-one, and females under eighteen year of age. Provisions of the statute or frauds are in force. (See Holiday , Judgments.) Conveyances. Husband and wife may o,vn and convey property separately without the other joining, except homestead. In case of conveyance or mortgage of, or contr'!..::~ relating to home.-sLead, the same may be avoided by one not joining in instrument. Cunveyance valid between parties without being recorded, but no deed, mortgage. contract, bond, or lease (for more than one year) is valid against. third persons unle recorded, except in case of actual notice. Deed intended as security is a mortgage, and must be recorded and roreC'losed as such. Power of attorney must be executed and acknowledged same as deed, and also recorded. To admit to re(;ord, acknowledgment indispensable, in case of instruments affecLing real estate. tatute prescribe forms of deeds and mortgage and ar:knowledgments, which should be complied with in word or substance. {For sales of merchandise, see ales.)  ~i1Yi~  Corporations may be public or private. and formed hy flling articles of incorporation with the ecretary of state. and compliance with statute. Each stockholder is individually liable for the debts of the corporation to the extent of the amount that is unpaid upon tbe stock held by him at the time action is commenced against him, and in mining, manufacturing, and industrial corporations they are jointly t~d c~~~~1if~tc~i~~fhf~~ ,~~bg~td~~~~ss ~1P!~~~~t~~~rmtlia~~~j'i1l~~~fi5e1~ o corporation of any other state or territory may transact invalid. business. or hold and dispo e of property in thi · State without appointing an agent upon whom ervice of legal proce. s may be made, and an authenticated copy of uch commission shall 1>e tiled and recorded in the otllce of the ·ecretary or state. It shall also file a copy of charter or article of incorporation with the se,·retary of state and the a;;ent referred tg shall reside in the capital of the State of Oklahoma. . lust al. o file with corporation l'om m i sion list of officers and stockholders with addre. ·ses and a.mount, of stock tleld by each, and name of aiseut for service. All corporations, foreign or domestic doing buslne: · in . tate are required to Ule in ollice of corporation commis-;ionf'r i. t of "tockholdel's, ofllcer · and directors. with residence and p oi:;1 , Ice addre...s. a111l amount of stock helu >Y each, anu must dcsignatP n 1 a ent re;;iding in 8Lale upon whom proce. · may be ·erved. ~I i11ini.; an I pul1liC service corporations re4uired to -ubmit all labor <lilftn·en ·e t , arhitration. (Hee lines.) {'orporations (ex:l'ept minin~) must pay annual li<·e n ·e ax· ,. fo llows: Dorne~tic eorporations, ,; > cents for each Sl.00 l of at a uthorized capital . Forel 'n c,,rporatlon. , 1.00 on eac:-h 1.000 f It capital employed in busine ·s in ..:tate. License obtained from t :i e Cortat e nent of tJusiues donf' ondl i n etc., poration ~ornmi sion. mu..;t, he tiled annually with n orporatlou 'ommi ion. • lin ing corporation" pay annual i:n-o re \·euue t . upon ou pu t uf o ie-half of I per cent upon q ar1 erl y Latement in lieu of al>ove. Oil nd gas corporation · re JU.ired tu p·iy a per c nt. ~ o corpora.t i 11 shall be c:-reated , licensed. or chartered In thiS tat e for the purpo--e of l>nying, a<' 1uiring, lllng, t Jin >r dealing in real ostate o ther than th e real e tate lo a ed In im· rp ate cit!86 aa<.I town· , and as ad•lit i >II to uch eltie anti to\ , 11 lr ha ll anY corpnratluu doin!.{ b u ine • in !hi · . tate tmy. t:11. a c Jlllre. tra le or deal in rw 1 estate for a n y p11r po ·e e cept uch land may e I <'.a.ted n 1 eu:ept iu Incorporat ed ciLif'..; and towns and a additions thc>ret such a - shall be ne<'e<-.-.ary nd proper for carrying o n the I ine · for whi .h sud1 <'urpnra.tiun wa-. lkcn"'ed or ehartered : no h1 II ny cor• poration be created , lh·en ti. or char ered to do hu Im~ h h i tate for the purpo"e of a ct inc: w ai.rent in buylni;- or ,,ellir1i: r ale t ·1 te . exceP Provided, however. that c ,r.iorat1on sha 1 as herein provided not be vrecluded rr 1m ta ·irut mortgalles on real e tat , t ecure loan: 0 1 1 th [eb ·~r;;~di~pg~eJ%~i tu~~ ~p~r~ ~~e ~~tl~~~i~~ ~~o~:~~~ tion or corporations shall not hold any real e ·tate · > a c 11ired for a ven years and conditioned th. t d i po ition or longer period than incumbrance of uch land shall in no way be made t-0 an ,t her corpora· tlon or corporations. The dire tors of corporations must not make dividends except from the surplu. profit ari"inl{ from the bnsin.ess thereof, nor must they di\'lcle, withdraw, or pay plus profit arising from the business thereof, nor must tbey divide, withdraw. or paY to  t  g~ 1Z  ;}\  1  BANKING AND COMMERCIAL LAWS-OKLAHOMA  ;t be  i by edgures :Iuly ilerk  ~a\;  the 'oresale here 1rein ,s or ilate  )u.nt  tion ~onThe The me rd, sts. ing has the ion teror ch be  ry ich ice the opy in so or opbe or DO  are ge. dgrty or the ce  the stockholders, or any of them, any part of the capital stock; nor must tney create debts beyond their subscribed capital stock, or reduce 1 i~:n;r!ti1~t~~~iroitt~aJr~~~fon~xi11tt18: s!~fi~!~ Mr~~iict~~~lI~~:r whose administration the same may have happened (except tho e who may have caused their dissent therefrom to be entered at large on the minutes of the directors at the time, or were not present when the same did happen) are, in their individual and private capacity, jointly ~nd severally Iiahle to the corporation and to the creditors thereof, m the event of its dissolution to the full amount of the capital stock so divided, withdrawn, paid out or reduced, or debt contracted; and no statut,e of limitations is a bar to any suit against such directors for any sums for which they are made liable. Corporations. An action against a corporation created by the laws of this state may be brought in the county in which it is situated or has its principal office or place of bu. iness. or in wnich any of tbe principal officer thereof may re~ide, or be summoned, or in the county where the cause of action or some part thereof arose. Courts. The courts of the State are: Supreme, district, superior, C<;>unty, and justice of the peace. Supreme court has appellate jurisdiction. .Justice of the peace has jurisdiction of civil actions arising uiripon contract involving amount not in excess of $200, exclusive of tere t, attorney's fees and costs. County court has jurisdiction of all probate matters, and civil actions. up to $1,000. But neither the county nor justice's court has jurisdiction of actions upon real estate con.tracts, libel and slander, misconduct in office, or malicious pro. ecut1on. The district court and the superior court have general jurisdiction. Terms of the district court are fixed by the suprE."Ine court. County court has a regular term every three months, commencing first Monday in January, April. July and October in each Year. Justice court is always in session. Days of Grace. No days of grace on negotiable instruments See Notes and Bills of Exchange.) Deeds. (See Conveyances.) Depositions may be taken at any time after service upon der1ndant, before a judge, a clerk of court of record, county clerk, justice ~ the peace, notary public, mayor or chief magistrate of any city or 0 1 el~r ~t<fie~CT~t::;.~;ed~t fta; ~~k:n tii noht.1ce. specifying the act,ion, or proceeding, the name of the court in 'W !Ch it is to be used, and the time and plaC'e of taking the same, ;~1 h notice shall be served upon the adverse party, or his attorney.  cg~~i;~tgr  b:  °~;i~ ~r  tim~.ng; ~1~~~a~~;~i!~1 :a!!1t~a!\i!n~~~;gv;~ed~~11ir· ~~~~er~~ tion, exclusive of Sunday and the day of service; and the examination way, If so stated in the notice, be adjourned from day to day. Deposiodn, after t.aken, must be sealed, indorsed with the title of the case an the name of the officer taking same, and addre. sed to the clerk or the court where the action is pending, and must be on file at least one day before the day of trial. Descent and Distribution of Property. (See Wills.) Property, not disposed of by will, descends as follows: 1. If decedent leave a shurviving hu.sband or wife, and one child, in equal hares to surviving usband or wife, and child, or issue of child; if more than one child, tbh~ln one-third to surviving husband or wife, and in equal shares to c 1 dren, or issue. But if there be no child of the decedent living at ~is death, the remainder goes to all his lineal descendants. If decedent eave no surviving husband or wife, but leaves issue, the whole estate descends equally to children, or issue thereof. 2. If decedent leave no issue, est.ate goes in equal shares to surviving husband or wife, ahand to decedent's father: if no father, then one-half goes in equal s res to brothers and ·isters of decedent or their children. If he leave a mother, also she takes an equal share with brothers and sisters. If decedent ieave no Issue, nor husband nor wife. the estate must go to the father. 3. If there be no issue, nor hu.sband, nor wife, nor father, nor mother, then in equal hares to brothers and sis~ers, or tbhelr children; if a mother survive, she takes an equal share with the rothers and sisters. 4. If decedent leave no issue, nor hu.c;band, nor tfe, nor father, and no brother or sister is living at the time of his ireath, the estate goes to his mother, to the exclusion of the i ue, any, of deceased brothers and sisters. If the decedent leave a survivin~ husband or wife. and no i. sue, and no father or :,other or brother or sister. the whol estate goes to th_e surviving , Usbanrl or wife. Other more remote descendent particularly set l0,·th. Dower and courtesy are abolished. Executions. All real estate not bound by the lien or the Judgmtient, as well as goods and chattels of the debtor, are bound from the me seized in execution. 'W hen two or more writs are sued out against same debtor during the term in wbicb jud~ent i rendered. or Within ten days thereafter, no preference i~ allowed to either: al;ld if the proceeds fail to satisfy all such executions, they must be d1 • tributed among all creditm·s; but these provisions do not aff~ct any greferable lien under judgment on the land of tbe debtor. Writ must e returnable in sixty days, except before justice of the peace, where it must be returned in thirty days. First levy to be made upon goods and f'hattels, but, if none found, then upon land and teneme_nts. Statutory provisions for subjecting debtor s property by proceedmgs supplemental to execution. E. emption . To the head of a family, not e~ceedil:1g 1_60 acres in one or more parcels to be selected by the owner, 1_ncludmg nnprovements; in f'ity or town, not more than one acre m one :ontmuous t~act, not exceeding 5,000 in ,·alue; all household and kit hen furniture, lot. in cemetery, all implement of bushan~. tool., app_aratu , and hooks used in trade or profession; family library, portrait and 'W~aring al)]>arel: flve milk rows and their calves; one yoke of oxen, "' 1th Yokes and chains; two horses or mules: a wagon, or cart. or <;iray; one carriage, or buggy; ,zun: ten hof,!.'s, twenty sheep; saddles, hridl_es, ind harness for use of family; provisions; forage on hand or iuowmg or home consumption and for use of exempt stoC'k for one year 75 Per cent of current wages and earnings for personal and profe Iona.I servtces within last ninety days. If any creditor endeavor to hold on Rarni hment more than 25 per cent of a person's wa,zei- the ent_lre lebt Will be forfeited The foregoing are not allowed to a corporation or Profit, to a non-resident, to a debtor wbo ls in the ac~ or removi!)g h is family from tbe "tate. or wbo bas ab conded, taking with him his family. To a . Ingle person: Lots or lot in cemetery held for sepulcher; all wearin!!,' apparel, tool., apparatus, and book belongmg to any trade or profes1don; one hor e, bridle. and saddle: or one yoke or oxen, 75 per cent of current wage. for per onal services.• The homestead is not exempt where debt is due for purcha.Re money or part of rame. for taxes for work and material u.c;ed in the construction or lnprovements thereon, or for liens given by tbe owner. Pel'!"onal Property is not exempt from execution or att~chment for wage or c1erk. mechanic, laborer, or ervant. All pens10n money 1s exempt. *Same provision regarding forfeiture or debt. Expres Trusts. E.·pre~.- trnsts may be creat d in real or personal property or both with pow r in the trustee or a majo~ity of the rru.·t es t·i receive title to, hold, buy, sell, e~chang;e, transfer and con~ey re:il and p rsonal pro1 erty f(!r thE. u. e ?f . uch trust, to take, 1 ece1ve, inve,t or di ·bursa the receipts, eammgs. rent , profits c r rbeturn-, from tbe trust (•state, to carry on and conduct any lawful usiness de,ignated in the instrument or trust and gen rally to do any lawful act in relation to such tru t property wbicb any indiVidual 1   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1935  owning the same absolutely, might do. • To .·uch expre.-s trust shall be valid unless created: 1st, By a written iustrumcnt, subs ribed by the grantor or grantors, duly acknowledged as conveyances of real estate. and recorded in the office of the c:ounty clerk of each countv where,n is situated any real estate conveyed to ucb trustees. as weil as in the county where the principal property or busine--s is located or conducted. 2d. By a will duly executed, as required by the laws of the state. Such expre~s trusts ,:;hall be limited in the duration thereof to a definite period not exceeding twenty-one years. Foreign Corporations. Before they shall transact business, they mu.'St appoint an agent who is a resident of the capital of the State, on whom process may be served and file a copy of appointment with the secretary of state. Copy of articles must also be recorded With the secretary. Must file statement With corporation commission showing stock holders, officers, amount of business done, etc. Suit may be brought in county in which the cause of action arose. Contracts of corporations are void as to corporation. if law not complied with and no suit can be maintained in the state courts by a corporation which has not complied With the law. For issuing license to a foreign corporaation the State charges a fee of one-tenth of 1 per C'ent of tbe amount of capital stock. There is also an annual license fee of $1.00 on each Sl.000.00 of the capital stock employed in business in the State. This fee must be paid on or before the fir t of August. In July, each corporation must file with the Corporation Commission, statement, under oath, giving detailed information on blanks furnished by the ommi<;.sion. Penalty of $100 per day for failure or refusal to file statement and pay fees. uch corporations are r quired, upon the order of any court where action is pending, to appear at a time and place ~eg :~~ :~.mination of its officers and agents, and inspection or  0  Mining companies are required to pay an annual iuoss revenue tax of one-half of 1 per CElnt of the gross receipts except oil and natural gas companies upon which tax is 3 per cent. Companies required to pay gross revenue tax are not required to pay the annual license tax, one being in lieu of the other. Foreign Judgments. They are basis or suit as elsewhere, but limitation statute is one year. Garnishment. May issue at the time of the issuing of the summons or at any time thereafter, before final judgment. in any action to recover damages founded upon contra t,. express or implied, or upon judgment or decree, or at any time after the i. suance, in case of an execution against property, and before the time when it is returnable. before order will is ue, statutory undertaking must he given, except in cases agaim,t non-residents. Bond is required in Dist,rict, Superior and County Courts but not in Justice Oourt.s. Holidays. Holidays are every Sunday, first day of January, twent.y-second day of February, fourth day of July, twenty-flfth day of DeC'ember, thirtieth day of May, days upon which elections are held throughout State, first Monday in September (Labor Day), and days appointed by pre ident. or governors of state for a public fast, tnanksgiving, or holiday. If first day of January, twenty-second day of February, fourth day of July, or twenty-fifth day of December falls upon a Sunday, the following Monday is a holiday. Acts of a secular nature, appointed by law or contract to be performed on a holiday, may be performed on the next business day, with full effect. Interest. Maximum rate ls 10 per cent. Usury forfeits all interest, and if usurious interest be paid, double the amount so paid may be reC'overed by suit inside of two years. In absence of stipulation. legal rate is 6 per cent rrom maturity. Banks required to make quarterly report of interest charges on loan in excess of 10 per cent. Ruch reports shall be published in annual report of Bank Commissioner, and when report of any bank shall disclose that it i willfully charging usury, the Governor may direct action by the Attorney General to cancel the bank's charter. o suit upon any contrnct of $300 or le,!1, m· an action in replevin, or to foreclose any mortgag-e or any lien given as security therefor, shall he maintained in tne cour.;s of this state and no petition or bill of particulars shall be flied unless at the ..,ime of filing such suit there shall be with such bill of particulars or pe• 1tion an affidavit setting forth that 1he contract sued on was not made in violation of the inter st law of this state and that a greater rate of interest than ten per cent has not been charged. reserved or collected. If evidence at the trial disclo es usury, the uit should be dismissed at the plaintifi" co t. .Judinnents. Judgment are liens against real estate for five years from time entered on docket. If rendered before a justiC'e of the peace, or prol)ate judge, they become lien upon the filing of a certified copy ,vith the clerk of the district court. If execuLion shall not be sued out within five years from the date of any judgment that now is or may hereafter be rendered in any court of record in thi, State, or if five )'ears shall have intervened between the date of the la.'-t execution issued on such judgment and the time of uin1s out another writ of execution thereon, 1:,ucn judgment sball become dormant, and shall cea.se to operate as a lien on the estat,e of the judgment dehtor. Judgment may be revived upon proper application, and after notire, within one year after becoming dormant. Interest on judgments is 6 per cent per annum, but in case of contract, rate is same as contract, up to 10 per cent. Liens. ( ee Mortgages.) Also allowed in case of labor upon personal property, but dependent upon pos. e sion; and to vendors of real estate for unpaid purchase price. Mechanics' liens allowed. In case of contractor, statement must be flied in four months, subcont,ractors, sixty days. Suit must be commenced in one year from time of filing statement. or from maturity of note given for t-be debt. Lien on OU or Gas Well for Labor or Supplies. Any person, corporation, or co-partnership wno shall under contract, expre. or implied, with the owner of any leasehold for oil and gas purpo, es or the owner of any ga pipe line or oil pipe line. or with the trustee or agent of uch owner perform labor or furni h material machinery and oil well supplies u ·ect in the digging. drillin~. torpedoing, completring operating or repairing of any oil or ga." well or who shall furnish any oil or gas well supplies or perform any lahor in constructing or putting together any of the macninery u.·ed in drilling, torpedoing, operating, completing or repairing of any gas well sllall have a lien upon the whole of such lea.sehold or oil pipe line or ga. pipe line. or lease for oil and gas purpo es, the building and appurtenanc s and upon the material and . upplies so furnished and upon the oil or gas well for which they were furnished, and upon all tbe other oil or gas wells, fixtures and appliances used in operating for oil and gas; purpo es upon the leasehold for which aid material and supplies were furnished or labor performed. uch lien shall be preferred to all other liens or incumbranre which may att,acn to or upon . aid leasehold for gas and oil purposes and upon any oil or gas; pipe line or such oil and ga.s; wells and Lhe materials and machinery so furni. hed and the leasehold for oil and gas purposes and the fixtures and apnliances thereon subsequent to the commencement of or the furnishing or putting up of any such machinery or upplies. Limitations. Chi! actions, other than for the recovery of real property, can only be brought within the following periods, after the ('ause of action shall have accrued, and not afterwards: 1. Within five years: An a tion upon any contract, agreement, or promise in writing. 2. W'ithin three years: An action upon a contract not in writing, express or implied; an action upon a liability created by statute other than a forfeiture or penalty. 3. Within two years   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1936  BANKING AND COMMERCIAL LAWS-OREGON  An action for trespass upon real property; an action for taking, detaining, or injuring personal property, including action for the specific recovery of personal property; an ac.'tion for injury to the riahts of another, not ari:sing on contract, and not hereinafter enumerated: an action for relief on the ground of fraud-the cause of action in such ca e shall not be deemed to have accrued until the di covery of the fraud. 4. Within one year: An action on a foreign judgment; an artion for libel, slander, ~. ault, battery, malicious prosecution, or false impri onment; an action upon a statute for penalty or forfeiture, except where the statute imposing it prescribe a different limitation. 5. An action upon the official bond or undertaking of an executor, admini ·trator, guardian, herifl', or any other officer, or upon the bond or undertaking given in attachment, injunction, arre t, or in any case whatever required by the statute, can only be brought within flve years after the cause of action hall have accrued. 6. An action for relief, not hereinbefore pro,·ided for, can only be brought within five yea.rs afLer the cause of action shall have accrued. larrled \\"omen retain the same legal exi ·tence and personality after marriage as before marriage, and receive the same protection of all their rights as women which their husbands so as men: and for an injury sustained to their reputation, person, property. character, or natural rights have the same right to appeal in their own name to courts of law or equi&y for redress and protection that their husband have in their own names. 1\-lortgages of Real Estate. Must be executed and acknowledged as deeds and the first mortgage recorded has preference. They are foreclosed by snit in the district or uperior courts, and there is no redemption on land sold in foreclosure after confirmation of the sale by the court. otes and Bills of Exchange. The uniform negotiable instrument 1 w is in force. Form of Negotiable Instrument. An in trumeut to be negotiable must conform to tne following requirement·: 1. It must be in writing and signed by the maker or drawer; 2. l\1ust contain an unconditional promise or 01·der to pay a sum cert.ain in money;::!. Must be payable on demand, or at a fixed or determinable future time; 4. ~lu. t be payable to order. or to bearer; and 5, where the instrument is addres ed to a drawee, he must be named or otherwi e indicated therein with rew onable certainty. It. ne~otiability ls not affected by a provi. ion whirh authorizes the . ale of collateral securities in case the in trument be not paid at maturity, or authorizes a confession of judgment if the in. trument be not paid at maturity; or waives the benefit of any law intended for t11e advantage or the protection of the obligor; or gives tbe bolder an election to require something to be done in lieu of payment of money. It is not, nece ary 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 as follows: Time of Maturity. Every negotiable in:trurnent is payable at the time fixed therein without grace. \Vb.en the day of maturity falls upon . unday, or a holiday, the in trument is payable on the next succeeding bm,in ·s day. Instruments falling due or becoming payable on ~ aturday are to be presented for payment on the next succeeding bu.sine day, except that iu~trumentl payable on demand may at the option of the holder, be presented for payment before 12 o"clock. noon, on aturday, when that entire day i not a holiday." ( 'ee Holidays.) lay be general or special. If names not disclo. cd Partnership. in style, certiflcate must be fl.led and ach·ertisement made. ~pecial regulation<.; concerning ·pecial partnership limiting liability to amount of contribution to company, except in ca ·e of violation of statute. Power of Attorney. The power of attorney in fact, for the conveyance of real estate. shall be executed and aclrnowledged a.me as o deed, acknowledgment of other conveyance· of real estato. executed by virtue of such power, :hall be rec ived for record unless the power of aHornoy under which it is executed is, or has been. filed for record in the ame office: Protest. (, ee • otes and Bills of Exchange.) Records kept by clerks of all court. of proceedings therein. County clerk k eps record of all instrument· affecting real and per ·onal property. Red mptlon. If apprai ement be waived. sale can not be ma.de o redemption after sale until ix month afLer date of judgment. of real estate by sheriff, pursuant to decree of court. In case of tax sale, two years are allowed from time of ale. after which tax deed is ue . Limitation of action to et a ide tax deed. one year. Repll'lvin. Plaintiff must file staturory affidavit and bond in not le s than double value of property. Defendant in twenty-four hours may give bond and rota.in po s~ sion. ale of tocks of merchandi:e other than in the ordinary ales. cour·e of trade are presumed fraudulent and void a against creditors. Such pre.-umption can only be rebutted by showing that 10 days before sale, the purchaser received from eller a list of his creditors, their addre · ·es ancl amounts due them, . worn to by ·eller a being a correct list, and lo day· before .-ale, creditors were notified per.-onally or by registered mail. Purchaser must show that purchase was made in good faith for a valuable con ·ideration, actually paid. These regulation do not apply to sale· by executor·, administrators, receiver· or public oflicer:s. Statute or Frauds. The followina: contract. are in ·alid unlc ·s the same, or , omo note or memorandum thereof be in w-riting and sub. cribed by tho party to be charged. or by his agent: 1. An a.gr ement that, by its term , is not. to be performed within a year f1om the makin~ thereof. 2. A special promise to answer for the debt, default, or miscanlage of another e:cept in a few cases. 3. An agl'eement made upon consideration of marriage, other than a mutual pronili to marr:v. 4. An agreement l'or the ale of good<:, chatt I. or things in action, at a price no le. s than 50, unless the bu ·er accept or receh·c part of such goods and chattels. or the evi<l nc of some of them of such tltings in action, or pay at the same time ·ome part of the purchase money hut when a. . ale is made by auction. an entry by th auctioneer in hi: sale hook, at tbe time of the sale of the kind of property sold, tne terms of sale. the price, and the nam of the purchaser ancl person on who. ·e al'count t.he sale wa · ma.de, is sufficient memorandum. 5. An ~r ment for the lea. ing for a longer period han one year or for the ale of real property or of an interest th rein and such agr ement, if made hy an agent of the party sought to he cllal'god, is invalid, uni ss the authority of the agent be in writing, subscrib 'd by the party sought to be charged. uJts. (See Court. .) 11 property i.· subject to ta.·ation. except public propert.y Taxe.. and the grounds and builrling. of any library, scientiUc, beuev,?lcnt or relia:ious institutions de,·oted solely to tho appropriate obJect.of ·uch institution·. and not tJ; ed , ith a view to peeuniary protlt, and the books, papers, furniture, sci ntillc or other apparatw p rtaiI1ing to the above in. titution., family provisions for one year, and s betw en grantor and grant of any land , here family portraits. there i: no expr ssed agreement as to who shall pay tl1e ta es, that may be a ·ses" cl ther •on. taxe on any real e.·tate shall be omc a lien on such e ·tate on the 13th day of October of e; <·h year. and if such real estate is convoyed after such <lat the grantor . ball pay such taxes ancl if conveyed on or prior to October l,3th of such year, the grant o ·hall pay :uch taxe ·. All property is asse., ·ed at its cash value. If tho first, half of the tax s, levied upon ad an valor m  basis for any fiscal year, shall have been paid on or before tho fir ·t day of January, the , econd ha.If shall b come delinquent on the 15th day of June, thereafter. All delinquent taxes, . hall, as a penalty, bear intere t at the rate of 18 per cent per annum. Taxes on real estate are a perpetual lien. ~ To demand of taxe · is ne ·e.- ·ary. Testimony. (See Evidence.) Transfer of Corporation Stock. Subject to regulation of corporation, except in case of non-re ·ident owner, affidavit or bond may be required by officers for protection. Tru. t Companies. Provision for organization by three or more peron:. General authority conferred to hold and administer funds, to perform official acts, make guarantie , loan money. negotiable bonds, etc. Amount of capital ·tock must be not less than 200,000, one-half of which must be paid in cash when articles are filed, and balance within six month . Regulated as trust companies, and must make a deposit as security, and obtain certificates and authority to act in ame manner. ·wills. ::\1arried women may make same as if unmarried. To make nuncupative will valid the e.'tate bequeathed must not exc ed 1,000, must be proved by two witnesse · who were present at the making thereof, one of whom was at the time 3.! ked by the testator to bear witn~ s, or the decedent must, at time, have been in actual military service in the field or at ea, and in actual contemplation, fear, or peril of death. Olographic wilfr are valid ,vithout witne.-ses. Other will must be ignecl by testator, or in his presence, at his direction, and he must, at the time of signing, declare to tho attesting witne. ses that the instrument i. his will, and there mu. t be two attesting witnesses who sign at testator's request and in his presence. No married man can bequeath more than t.wo-thb-ds of his property away from his wife, and no married woman can bequeath more than twothirds of her property from her husband. A will i revoked by as ubequent, marriage, unless provision i · made for wife by marriage contract or will.  SYNOPSIS OF  THE LAWS OF OREGON RELA TL. TG TO  BANKING AND COMMERCIAL USAGES Revised by :\I ' rs. BEACH & Sr rn~. Attorneys at Law, Portland. ( ·ee Card in Attorneys' Li ·t.) Accow1t. . In an action brought to recover a balance du upon a mutual, open, and current account where there ha, e been reciprocal demand. between the parties, the can. e of action shall be <lcemed to  ~i~h:/~t~~~Jr~~l1!~!v~:n: g!r\~u ~ ~b~!:\g~~--o~ei~J~; ~;;W~~!p~~ between any of a erie' of item: or demand·. the~- are not to be deemed such an account. Accounts ar a· ignable either verbally or in writing and the a ·signee may su thereon in his own name. hut the action by the assignee shall l>e , ·ithout prejudice to any set-off or otller defense e.·isting at tho time of. or before notic of the 3.!. ignment. This does not apply to neg-otiahle promi:sory notes or bill.· of e.-change transferred in good faith and upon good consideration before due. Acknowledgment . • lay be tak n in the 'tate by any judge of the supreme court, county judge, justice of the peace. cl rk or the supreme court. county clerk, or notary public. In , ny ot11er ·tate. t rritory, or district of the nited , tate.. according to the laws of . uch state, territory, or di ·trict; or of this tate. before the judl(e of a court of re ord, justice of the p ace, notary public, or other omcer authorized by the la1 ·s of ·uch tate, territory_ or di ·trict, or before any conunis ·ioner appointed by the governor of thi · tale for that purpo.- . Foreign countries: Deed· may be acknowledged according to the law of :uch countr:r. or of thi . tat before any notary public therein, mini tcr plenipotcntiar.r, minister extraordinary, mini ter re:ident, charge d'atrnires, commi. sinner. coun ·el, vice-counsel or coun. el general of the nit d tat. s, appointed to re ido therein. Actions. E,·ery action . hall be brought in the name of the real party in interes but an executor or administrator, n tru tee of an cxpre.. trust, or a per ·on e pr sly auth01·ize I by statute, may sue without joining vith him the per.-on for whom the action is prosecuted. The complaint, an ·wer, and reply must be ,·crifled. Summons mu t he subseribed hy plaintiff or his attorney who ·hall he a resident attorney of Oreg-on. and , ho ·hall s to hi. r idence or post otllcc addr . thereon. Lim·" 1917. A defeuclant must appear. plead. or an. ,1 er within vcn days in the J~·tic anrl Di.-trict Courts, : ml in the ( ircuit C urL ·ithin t n day:, from en ice of ummons, if ·or\"ed in the county whcr th action i · brought; vi thin t\\ entY day.· if ·erved 1 cwhero in th :t t-e, an,l if en 11 by public-ltion by I.he la ·t day of the time pr cribed in the order for publication of ummoru· which mu. t be publi. hed once a week for not Jes' than silt co~· cuti\"e week·. d1nini. tration or E ... tate . Th county court of th county in which the deceased wa · an inhabitant when he dit>d ha e. clu,;ive u II a:· follows: jurisdiction in th fir. t, in ·tanc . L tter · hall b 1. To the wido v, husban,l, or n x-t of kin, or ho h, in the di c.retion of the court. 2. To on• or mor of th prin ipal er ditor . ::i. To anY other suitable per:on , hom the court ma.y el CL, but a non-resident is not qualilled to act as c.·e,·utor or administrator. .\n n tion nmY b 6 eeutor or adrninhtrator any timo after th 6 com111enced acainst an expiration of .-ix mon hs from th granting of l t r. t tam ntary. !)r a.to and d1,;of a<lmini tration, and until t11 tin, 1 . ttlemen of he charKo of such executor or ad mini trator from th' tru t. ancl not otherutor or ad minis• wi. . Pre enta.tlon of t11 plaintiff' claim to th nt t the hrl11giug trator and di. allowance by him i a condition pr pon 1,11·opcr :;ho, ing to tbe co1m1.,y o 1rt, •x ·utor or of aC"tion. administrator may horro, money upon any prop rty h longinA" to e. tato to facilitate the . ttlmn n of the estat , rn! upon proper ·no\\ ing to the county court. ex• utor or adminbtr tor may exe nto deed· of conveyance to fulfill boncl · or contract o onvey real propberty. made by the doc a: cl. E cutor or adminbtrator must pul.Jl 1'noUce of his appointment, and rnako and tile an inventory of tedb6 e ·tate whicn must be appr, i -,.d by tnree comp tent per on· appoint by the court.  a a  t t  BANKING AND COMMERCIAL LAWS-OREGON Affidavits. An affidavit is a written declaration under oath, made without notice to the adverse party. The amant must peak in the first person. An affidavit taken in another state of tne Cnited tates or territory, or the District of Columbia, or in a foreign country, otherwise than upon commission, must be autnenticated as follows before it can be used in this State: First:- It must be certified by a commissioner appointed by the governor of this tate to take affidavits, or it must be certified by a judge of a court having a clerk and a seal, to have been taken and subscribed to before him at the time and place therein specified, and the existence of the court. the fact that such judge is a member thereof, and the genuinene~s of hi signature shall be cert.ified by the clerk of the court under the seal thereof, or before a notary public having a seal and acting as such by authority of any state or territory of United States or District of Columbia. The seal must be affixed together with the expiration of the notarial comml · ion. Can not be used as testimony on a trial upon tne merits against objections. The usual form and function of affidavits are that of proving service of a summons, notice, and facts in ex parte proceedings to obtain provisional remedies. Age of l\1ajol"ity. Males, twenty-one years; females, eighteen years. Aliens. All aliens except Chinese have the same right with reference to holding property in tbi State as citizens of the State. A wife is no~ barred of her dower by reason of alienage. A foreign corporation not prohibit,ed by the laws of this State and having complied with our law with reference to doing business here, may hold propert.y and convey the same as freely as domestic corporations and may sue and be sued. Ap1>eals. An appeal from the Justice and District Courts may be taken within thirty days, and from the Circuit Court to the upreme Court by erving and filing the notice of appeal and bond at any time Within thirty days from the date of the judgment or decree appealed from. Time may be enlarged by order of Supreme C' ourt secured before the thirty days has expired, but shall not extend beyond the term of Appellate Court next following the appeal. Arrest.. Arrest in civil cases is allowed in certain cases, but is a remedy very rarely resorLed to. Sec. 259 L. O. L. Attachment process may be had in actions upon contracts, expre or implied. for the direct payment of money, if the contract L,;; not secured by mortgage, lien or pledge upon real or personal property. or, if so secured, the security has been rendered nug-atory hy the act of the defendant; also in actions upon contract against a defendant not residing in this State. An affidavit must be made shmving the e. isteuce of the facts, iJ,nd a bond given in a sum not le. s than 100 and equal to the amount of the judgment demanded. Debt owing the defendant may be garnished. An attachment is dissolved by an assignment before judgment. Banks. The constitution of the State prohibits the incorporation of any bank or banking company, or moneyed in ·titution for the purpose of issuing or putting into circulation any bill, check, certificate promissory note, or ot.ner paper. or the paper of any bank, company, or person, to circulate as money. The state banking act provides that any person, firm, or corporation (except national banks) having a place of busine. · within thi State, where credits are opened by tho deposit or collection of money or currency or negotiable paper subject to be paid or remitted upon draft, receipt, check, or o!'der, shall be regarded as a bank or bank and as doing a banking business under the provisions of said act. The word bank includes the banking or savings department of any trust company doing banking or savings busine, s. ~ ·ot more than 25 per cent of the assets of any bank, under state superyision, shall be invested in the stock of corporations. Chap. 2.'5 of Laws of 1915 allow state banks to become members of a Federal Reserve Bank by . purchasing. tock therein. Co-operative bank can be started by ten or more per. on . ~fm!mum capital, $10,000. Stockholder _limited to one-tenth of total capital stock. Works under state ba11krng laws. Foreign banks and bankers shall be subject to the act. Banking corf-)orations (and Trust Companies as amended by Laws of 101. 7) may )e formed under Chapter 171 of tbe Laws of 1911 by any number of persons, not Jess than three citizens of the United State1; and residents of Oregon, ru sociating together, and must have a . capital stock as follows: In cities, villages, and communities. having a population of 1.0.00 Inhabitants or Jes..<:, 15.000; population over 1,000, and not o-..er 3,000, S2i,.OOO; population over 3,000, and not over 20,000,. :50,000; Population over 20.000 and upwards. 100.000. The. e pro:i:·1ons do not apply to banks in existence before 1911. And ~,here ~1t.1e h~v.e a population of 50,000 or more, banks may be organ1~ed with a m1mmum capital of $50,000, when located at least t~rn. mile. f:om central Post-office of such city. Loans to one debtor hm1.~ed to 20 per cent of capital paid in, and surplus. certain discounts of_ comm~rcial paper not being included in the 20 per cent limit. Entire capital_ of state bank must be paid in within six months from date charter is 1ssueq. One-tenth of net profits of bank must be put in the surplus fund until surplus equals 20 per cen~ of paid.in capital. Re_serve bank must have at least 75 000 unimpaired capital and surplus. o state bank can mvest in any but Federal Reser~e _Bank stock, ex~ept such as it may acquire to save a lo son a p~·e-ex1stmg debt but . this must be sold within twelve months of acquiring. Banks must have in cash 15 per cent of total d~mand deposits ~nd 10 per cent of total time and saving~ deJ?osits provided th_at two-thir:d~ of reserve may be demand deposit m banks or trust compame . . approved by superintendent of banks. Any hank may Joan not to exceed 50 per cent of its capital, surplus and commercial deposits. upon notes secured h:y mortgages or other real estate •ecurity, but no single loan to exceed .,o _per cent of market o officer, d1r:ector o.r employee Value of the real estate security given. can borrow from the bank, except by approval of directors, and such approval must be a matter of record. Every director must he the owner of at least; $500 worth of stock, Par value. Board of directors shall meet onC(: every thre~ months and examine report of cashier. If approved, 1t must be . i~ed by au directors present and made a part of the _rec~rd. A com_m1ttee of stockholders must make semi-annual exammat10n. ~upermt~ndent of l3anks shall pel'iodically call for sworn reports showi!l,g bank s condition, ab tract of which banks must publi h. lf. UJ?en~tend_ent sh<1;ll be of opinion that any hank is insolvent he may, rn h1~ d1- cret1on, take tock or irnmediate po~ e ion and a receiver may he appomted. every corporation bank shall be a.s essed and taxed shareholders on the value of their hares. Chattel l\Iortgage . (, ee Mortgages.) Claims for Collection. In sending claim for collection, if owned by a partnership, the individual name of e_acb \>artner and th~ firm name should be stated, and if a corpora~100, m wh:'lt !ate mcorl>orated. The claim should be accompame<! by an itemizt;d ~tatelllent, verified by the owner or his agent. or h1~ atto~ney, if w1thm the Personal knowledge to the effect that he believes 1t to be true. and that there are no just offsets, or counterclaims to the same, except as · . . stated. (Ree Accounts.) A!I claims to be filed with adI_T11mstrators or executors, ru ·1gnee or receivers should be likewi. e verified. U·ual rule of law govern. ollateral . 0 statutory provisions.  of   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1937  Conditional Sales. Conditional sales of per. onal property that thereafter becomes attached to real property so as to become a fixture must be recorded within ten (10) days in order to bind purcba.-;ers and mortgages of the real property. (Laws 1909.) Conveyances. (See Deeds. Acknowledgments, Mortgages.) Contracts. Contracts not to be performed within a year contract. to answer for the debt, default, or miscar1·iage of anothe~ contracts by an executor or administrator to pay the debts of bis testator or intestate out of his own estate, contracts made upon consideration of marriage, other than a mutual promise to marry, contracts for the sale of ~ersonal property at a price, not less than $fi0, unless the buyer at the time recel\'e part or pay part, contracts for the leasing for more than one year, or f?r the sale of real property or any interest therein, contracts entered mto subsequent to • lay 20, 1909, authorizing an agent or broker to sell or purchase real estate for compensa1 ion or conlIDission, are void unless tbe same or some note or memorandum ~~!r~~~t;xp;e~:i~ga~~~J~nsideration, be in writing and subscribed by Corporations. The articles of incorporation, or a certified copy of the ones filed with the secretary of the state or with the county clerk, shall be prima facie evidence of the existence of such-corporation fgr1li~~ r~if}e~~g~ht!~~~lsiness mentioned in said articles without any Corporations work under Corpor~tion ~epartment created by Chap. 341 laws ?f 1913. A blue-sky law 1s also mcorporated in this chapter. According to Chap. 112 Laws of 1915 all powers granted or a.ssumed by any corporation. may subsequently be amended. altered or repealed. A. ale. lease, assignment or transfer of business. franchise and property as a whole of any corporation now existinJ:?; or hereafter formed in this tate, may be made with the con. cnt of the stockholder · holding o_f record !iS much as two-thirds of the capital stock of such 'corporat1on, provided such consent be expressed (at a regular or special meeting of the stockholders. of sue~ corp_oration, called for that purpo, e), ~~~tJ~.e conveyance be in cons1derat10n of lawful money of the United  rrivate corporations may be formed under a general law by three or more persons, and organization may be perfected after half or more of the capital tock bas been subscribed. Organization fee to Sta.te depends on capital, ranging from SlO up. Articles of incorporation must be executed in triplicate and acknowledged and one fllecl with the secretary of . tate, one with the clerk of the county court where the business of the corporation is to be carried on, and the third retained by the corporation. A direct01: must be a stockholder in the corporation and a majority must he re31dent of the State of Oregon, except that in mining corporations and common ca1Tier railroads a majority of the directors may reside out of the State. The stockholders are liable for the indebtedness of the corporation to the amount of their stock subscribed and unpaid for, and no more, excepting that the stockbolders of corporations or joint stock companie conducting the business of hanking shall he individually liable equally and ratably"and not one for anot,ber, for the benefit of the depositors of said bank. to the amount of their stock at the par value thereof. in addition to tbe par value of such shares. Foreign corporations may do business in this State as freely as dome tic corporations, upon complying with the laws of this Stat,e. Are required to have an attorney in fact resident within the Rtate and file declaration of intention to engaJ:?;e in business within the State, accompanied by certified copy of the charter, and pay an initial fee of $50 together with the annual license fee due for the succeeding fraction of the fiscal year. Annual license fee is $100. Foreign corporations doing busine.·s in State may withdraw by filing notice ther of with Corporation Commission and paying fee of 5.00 but must thereafter maintain attorney in fact within State upon whom senice may be had until statute of limitations has run. Failure to do so, service may be made on Corporation Commissioner, Laws 1917. Failure of foreign corporations, other than educational. to pay any license fee shall render void its right to transact business in Oregon. Public service corporations doing businef's in the State shall establish and maintain at somo fixed point witnin the State a principal office, and shall maintain thereat a secretary or managinp; agent. Both domestic and foreign corporations, excepting only those hereinafter mentioned, and those organized for any educational. literary, cientiflc, reli 0'ious or charitable purpose, pay a graduated annual license fee based on their authorized capital stock as shown by annual report required. The following is tne statutory form of acknowledgment: State of Oregon, .... l ss County of .......... J · On this ........ day of ........ , 19 .... , before me appeared . . . . . . . . . . . . . . . to me personally known. who, being duly sworn (or affirmed), did say that he is tbe president (er otner officer, otllers or agent of the corporation) of (describing the corporation). and that the seal affixed to said instrument is the corporate seal of said corporation, and that said instrument was signed and . ealed in behalf of aid corporation by authority of its •hoard of directors, and said . .......... , . . acknowledged said instrument to be the free act and deed of said corporation. In testimony whereof, I have hereunto set my band and affixed my official seal this the day and year first in this, my certificate, written. . ............ (Title of officer taking acknowledgment.) My Commission expires ............ or district. Co ts. If plaintiff is a non-re ident of the county, in a justice court, the justice may require bim to give an undertaking for costs. Co ts follow the judgment in justice's court irrE. pective of the amount recovered. In courts of record, if plaintiff recovers, he is entitled to cost iu actions involving open mutual accounts where the total of both parties exceed $150; in other actions for the recovery of money or dama~es if he recovers $50 or more. In courts of equity, costs are discretionary with the judge. Attorneys representing non-resident clients are responsible for costs. Courts. The District court has limited criminal jurisdiction and civil jurisdiction up to $300. These courts are always open. Their process can not reach land. A county court in each county has exclusive probate jurisdiction and civil jurisdiction up to 500. Creditor ' Bills. . General rules of equity govern. Curtesy. The widower of eYery deceased person shall be entitled to tlle use, during his natural life, of one-half part of the lands his wife _wa. eized of an ~state of inheritance at any time during the marnag . although no 1. ue born; all other laws of this tate applicable to dower shall be applicable in like effect to estate by the curtesy. No action or suit shall be brought after ten years from death of a decedent, to recover or reduce to po se ·sion curte ·y or dower by the surviving spouse of such decedent. Day of Grace. (See otes and Bills of Exchange.) Deeds. Deeds must be. ealed and executed in the presence of two witn . e . who sub ·cribed their names to the , ame as uch, and the ex cut10n acknowledged before an officer authorized to adm.ini ter oaths. ( ee Acknowledgments.) If executed in any other state territory, or district of the United tates, or foreign country, shall be   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1938  BANKING AND COMMERCIAL LAWS-OREGON  executed and acknowledged according to the laws of such state, territory, district or foreign country, or according to tne laws of this State. Unless recorded, a conveyance is void a"ainst a subsequent purchaser in good faith and for a valuable consideration whose conveyance is first recorded. Conveyances. transfers, or liens executed by either husband or wife, to, or i.n favor of the other, are valid to the same extent as between other persons. A conveyance to nusband and wife, jointly, creates an estate by entirety. Depositions. In all affidavits and depositions the witness must be made to speak in tb.e first person. Depositions shall be taken in the 0 ~~~:. of ~~g i~1ersD~~~i~~~ gr;\~~~~eotgt~li~~r~~! State may be taken upon a commission issued by the court or the clerk thereof, on the application of either party, upon five days' previous notice to the other. It shall be issued 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 it. (L. 0. L. , Sec. 840.) Such interrogatories, direct and cross, as the respective parties may prepare, may be annexed to the commission, or, when the parties agree to that mode, the examination may be without written interrogatories. If deposition be taken outside of State, eight days' notice shall be given to adverse party of time and place of examination, name of commissioner and the witness, if tne distance of place of examination from place where testimony is to be usect do (does) not exceed fifty miles, and one day in addition for every additional 25 miles. Either party may attend upon such examination, and examine the witness on oral interrogatories, but if either party by written notice to tb.e other, within three days from the service of the original notice, require it, it shall be taken upon written interrogatories, to be settled, if not agreed upon, by the  ci~ 8~t~~  ~~:_~~~; ~~1 \~ !!~tac~e ~1i~~~~~if{~;~~a8fb'!i i:~~~i.t~oe~ffe°J'. 1  and directed by the commissioner in same manner as a deposition upon commission. Laws 1917. (L. 0. L., ec. 841.) Either party may take the deposition of a witneS.':I in this State before any person authorized to administer oaths, upon giving the adverse party three days' previous notice, and one day's additional notice for every twenty-five miles the witness resides from the place of trial, of the time and place of examination, the name of the officer and of the witness. The deposition shall be written by the officer taking the same or by the witness, or by some disinterested person, in the presence and under the direction of such officer. When completed it shall be read to or by the witness and subscribed by him. (L. 0. L.,, ecs. 846-7-8.) The officer taking the deposition shall append thereto his certificate, under the seal of his office, if there be a seal to the effect that the deposition was taken before him, at a place mentioned, between certain hours or a day or days mentioned, and reduced to writing by a person therein named; that before proceeding to the examination the witness was duly sworn to tell the truth, the wb.ole trut,h, and nothing but the truth; that the deposition was read to or by the witness. and then by him sub. cribed. The deposition should then be securely sealed, and addressed to the court or the county issuing the commission. Descent and Distribution of Property. Real property de. cends as follows: 1. In equal shares to his or her children, and to the issue or any deceased child by right of representation; and if there be no child of the Intestate living at the time of his or her death, such real property shall descend to all his or her other lineal descendants; and If all sucb. descendants are in the same degree of kindred to the intestate, they shall take such real property equally, or otherwise they shall take according to tb.e right of representation. 2. If the intestate shall leave no lineal descendants, such real property shall descend to his wife, or if tb.e intestate be a married woman, and leave no lineal descendants, then such real property shall descend to her husband; and if the Intestate leave no wife or husband, then such real property fallrl:~e~1e.!fat~~t!.1Pf~f~!~~n1ln!~1hJ~~~n~~~[:,t~!fu~:A:~~neJ: nor wife, nor father, such real property shall descend to his or her mother; if the intestate shall leave no lineal descendants, neither husband, nor wife, nor mother, such real property shall descend to his or her father; if the intestate shall leave no lineal descendants, neither husband, nor wife, nor father, nor mother, such real propert~ shall descend in equal shares to the brothers and sisters of the inte tate, and to the issue of any deceased brother or sister by right or repre entation. 4. If the intestate shall leave no lineal descendants, neither husband nor wife, nor father, mother, brotner, nor sister, such real property shall descend to his or her next of kin in equal degree, excepting that when there are two or more collateral kindred in equal degree but claiming through different ancestors, those who claim through the nearest ancestor shall be preferred to those claiming through a more remote ancestor. 5. When any child shall die under the age of twenty-one years and leave no husband nor wife nor children, any real estate which descended to such child shall descend to the heirs of the ancestor from whom such real property descended the same as if such child died before the death of such ancestor. 6. If the intestate shall leave no lineal descendants or kindred, such real property shall escheat to the State of Oregon. Personal property descends the same as realty, except that husband surviving takes half wife's personalty, the wife surviving takes half husband's personalty, and survivor takes all in the absence of issue. Dower. The widow of every deceased ls entitled to dower during her natural life of one-half part of all the lands whereof her husband was seized during marriage, unless she is lawfully barred thereof. Same right given to husband re curtesy. Where a husband purchases land during coverture. and mortgages the same to secure payment of the purchase money, his widow Is not entitled to dower as against the mortgagee, although she shall not have united in the mortgage. A woman is not barred of her dower by reason of being an alien. Equity of Redemption. (See Executions.) Executions. The party in whose favor judgment is given may at any time thereafter within ten years, have execution issued to enforce payment. After ten years from the entry of judgment the lien thereof shall expire, provided the judgment is not renewed within the ten-year period, which may be done and repeated until satisfied. Execution may issue against the person or judgment debtor, against his property, or for the deUvery of real or or personal J.>roperty. The sale of property upon execution shall be made by auction. Property sold on execution, when subject to redemption, may be redeemed by the following persons: First--The mortgagor, or judgment debtor or his successors in interest. Second-A creditor having a lien by judgment decree or mortgage on any portion of the property. A lien creditor may redeem within sixty days after confirmation of sale by the court. A mortga11:or or judgment debtor may redeem within one year after confirmation. (L. 0. L. ecs. 245-6-7-8.) Exemption . Homestead exempted from judicial sale. lust be actual abode of, and owned by family, and not exceed 160 acres, or one block if in city, or $3,000. However said 160 acres or block must not exceed S3,000 in value. Personal property exempt Includes books. pictures, and musical instrument. to the value of $75; wearing apparel to the value of 100, and if a householder, to the value of 150 for each member of the family; tools, implement<;, apparatus. team, vehicle, harness, or library when necessary in the occur:ation or urofession of a judgment debtor, to the amount of $400; al ·o  sufficient quantity of food to !>UPPO~ such team, if any, for sixty days and fowl to the value of S.50; if the Judgment debtor be a householder ten sheep, with one year's .fleece, two cows, five swine household goods, furniture and utensils to the value of $300; also food to keep them for three months, also six months' supply provisions ror householder and family plus three cords wood or one ton of coal; the seat or pe,y occupied by a hou: eholder or his family in a place of public wor ·hip; aµ property of the State in any county, incorporated city, t?wn, or village therein, or of any other public or municipal corpora.t10n. No article of property is exempt from execution issued upon a judgment for tbe purchase price. The judgment debtor must select and reserve such property as he claims as exempt at the time of levy. Earnings of judgment debtor for personal services for thirty days exempt up to $7.5 when necessary for the family supported wholly or in part by judgment debtor, except when the debt is incurred for family expenses, ,50 per cent of such earnings shall be subject to attachment, garnishment, or execution. Foreign Corporations. (See Corporations.) Foreign Judgments may be basis of action, but must be pleaded and proved. Frauds. Every conveyance or assignment in writing or otherwise of any estate or interest in lands or personal property, and every charg-e upon lands, goods, things in action, or upon the rents or profits thereof, made with the intent to hinder, delay or defraud creditors or other persons shall be void. Every grant or a.,c;ignment of every existing trust in lands, goods, or things in action, unless the same shall be in writing, subscribed by tne party making the same, or by bis agent, lawfully authorized, shall be void. The question of fraudulent intent shall be deemed a question of fact and not of Jaw. Statute of Frauds. ( ee Contracts.) Garnishment. Attachment of execution may be levied upon personal property of the defendant in the bands of third persons, or on debts due defendant, by leaving a certified copy of the writ and also notice of garnishment with the debtor, and such debtor or third person shall furni h the sheriff a certificate, showing property in his possession belonging to defendant. If the certificate ,Is unsatisfactory, the garnishee may be examined under oath. Holiday . (See Holiday Map, opposite P. 13.) When day of maturity of negotiable instrument falls upon unday, or a holiday, the instrument is payable on the next succeeding bu.sine. s day. Instruments falling due on Saturday are to be presented for payment on next succeeding busine, day, except that instruments payable on demand may at the option of the holder, be pre ented for payment before twelve o'clock, noon, on Saturday. when that entire day is not. a holiday. Whenever any legal holiday other than Sunday fall. upon Sunday, the Monday following shall be observed as ·uch holiday, Designated holidays: Every Sunday, January 1, February 12. called Lincoln's Birthday, February 22, called Washington's Birthday, May 30, July 4, first Monday in eptember, called Labor Day, October 12, called Columbus Day, December 25, and election days and any day set apart by the President or the Governor. ~o judicial busine can be transacted on any of foregoing days except for certain purposes. Laws 1915 and 1917. Husband and Wife. (See Married Women.) Injunction allowed as a provisional remedy, upon giving bond in cases where right thereto is shown. Interest. Legal rate, 6 per cent; contracts may be made in writing for 10 per cent. Usury works forfeiture of principal and interest; but judgment will be rendered against defendant for the principal of the debt to be paid into the common school fund of the county in which suit was commenced and against the plaintiff for costs. Laws of 1915 provide for special license to those engaged in loaning money in excess of 10 per cent. Judgments are a lien from the date of docketing on all defendant's real property within the county or counties where same is docketed, ru13~1!i;t~ w:Wc~n11ey~~ ~~s:a~!~~y t~c~~~e ed~Wh~~:ei lifi~~:et~1 execution on the judgment the lien ceases, provided that before the expiration of tne ten years, the circuit court may upon motion extend the time another ten years, and then another, etc. Ju.rl diction. ( ee Courts.) Liens. Per on furnishing material or performing labor in building or repairing any structure or superstructure has a lien on the same and sufficient land for it enjoyment. Hotel and boarding house keepers have a lien on gue t • baggage. Common carriers and warehousemen have a lien for charges. Various statutes provide for laborers' liens in certain cases. Limitations of Suit . On contracts not under eal, express or implied, six years; on judgments or decrees of any court and sealed instruments, ten years; recovery real property, ten years. Revivor; Part payment or new promi:·e in writing. :Married Women retain their real and personal e. tate owned by them at time of marriage or afterwards acquired, free from the debts and control of tb.eir husbands. A married woman may make contracts in her own name, buy goods, and give note· in settlement. and her real and personal property may be sold to satisfy the same. be may dispose of her real e tate by will, subject to any rights which her nusband may have as tenant by the curtesy. ·wife may manage, sell, convey or devise by will to same extent and in ·ame manner as her husband can. She i entitled to receive and hold the wages of her personal labor, and sue therefor in her own name, and she can pro ecute and defend all actions for the preservation or protection of her property and rights as ff unmarriea. The expen ·es of the family and education of the children are chargeable upon the property of both husband and wife or either of them, and in relation thereto they may be sued jointly or separately. All laws imposing or recognizing civil disabilltie · upon tb.e wife not impo~ed or recognized upon the husband have been repealed. 'rhe wife's dower and the hlL'lband's curtesJ in real property are preserved. fines and :\lining. Any person being a citizen of the United States, or having declared hi· intention to become such, discoYering a vein or lode of mineral bearing rock. may locate claim by po ting notice, and thirty days thereafter marking the boundaries with siX substantial posts, and making the improvements provided by statute within sixty day after the posting of noticei, and within said sixtY days, and after the required improvements have been made, fl.le for record with the recorder or conveyances copy of such notices. All mining claixns in this tate are deemed real e tate, and subject to all the provision.., as to transfer. mortgage, etc., except that redemption from execution salo must be made within sL ty day . bandoned claims may be taken up under the provision of the act without reference to any work previously done thereon. Dit~hes nd mining flume, permanently affl. ed to the . oil are considered real e ·tate, provided tha~ non-\Lc;er for fl \'8 years or removal from the tate will forfeit a 11 title or interest. Grub take contracts must be in writing and recorded in the county where location thereunder are made. AnY person may hold one claim by location and as many by pur base as the laws of the clli trlct where the claims are located wi.11 allow, but the dic;coverer of any new lead or vein not previously located upon may ta.ke one additional claim for discovery. Mortgages of real or personal property and assignments thereof  BANKING AND COMMERCIAL  LAWS-PENNSYLVANIA  are executed and recorded in the same manner as deeds, and foreclosed  ~ s:;~t li:ee~~~Td a.;\~~t~[~!~0rh~~e~~-~r:~::: ~  Notes and Bills of Exchange. The negotiable instrument law, as prepared by the American Bar Association, has been adopted by this State and is the law governing bills, notes, etc. Power of Attorney. Powers of attorney for conveyances of real estate, or whereby real estate is affected must be executed and acknowledged with the same formality that deeds to such property are made. A husband or wife may constitute the other his attorney to make conveyances of and dispose of his or her property, subject to revocation, the same as any other power of attorney. Probate Law. (See Administration of Estates.) Protest. (See Notes and Bills of Exchange.) Records. Public records are notice to the world of their contents when duly recorded. Redemption. Lands sold on execution may be redeemed within one year from confirmation of sale by the judgment debtor or his successor in interest by paying purchase money, interest at 10 per cent per annum, and taxes paid by purchaser. A lien creditor may redeem from sale within sixty days from date of order of confirmation. (See also Taxes.) Replevtn. In an action to recover possession of personal property, the plaintiff may, at any time after the action is commenced, and before judgment, claim the immediate delivery of such property, by filing an affidavit and undertaking as required by statute. Surety Companies. Foreign surety companies with a paid-up capital of $250,000 and having assets of $300,000, or domestic companies with a paid-up capital of $100,000, may be accepted a sole sureties on all bonds. under~akings, recognizances. and obligations required or permitted by Jaw. The foreign corporations must appoint a resident agent to do business for the company and upon whom legal service may be made. A tax of 2 £er cent is payable upon net pre0  ii~!::  ~~:s aa~grt~~!t:~;g1~6i;Je~s~:an~~tr;~~;i~~e~e~~~ a allowing such company to do business from year to year. Taxes. Taxes on real property are delinquent after fifth day of October, except when one-half is paid on or before fifth day in April; balance may be paid on or before fifth day of October. Owner may redeem at any time before tax deed is issued by paying the tax collector, for benefit of holder of certificate of delinquency, the amount Paid for certificate, cost and interest thereon at 15 per cent. Delint~bl~r!rt~rerl lty of 5 per cent on November 5th following, Personal property may be sold for taxes, or taxes due on personal Property may be made a lien on real property. Transfer of Corporation Stock must be on the books of the corporation. Usury. (See Interest.) Warehouse Receipts. Transfer of receipt transfers commodity. Wills. Every person twenty-one years of age, of sound mind, may ~a~gea efe%g~ a~~ 11;1d~!atir 'hu~i~~Joi~i~~~ ite~~r ir1:w;uitt?. Every person over eighteen years of age, of S<?und !l!ind, !lla:Y dispose of his goods and chattels. Every will shall be m wr1tmg, signed by the testator or some other person under his direction, in his presence and shall be attested by two or more competent witnesses su1?scribing their names to the will in tne pre ence of the testator. A will which fails to mention or provide for a living child is inop~rative as to such Child. A widow's dower can not be cut off by will. A legacy or devise to an attesting witness is void and such person shall be admitted as a witness to the execution of such will.  ~~1:i~ltfo°;   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  SYNOPSIS OF  ~~:cr1~c: tEfTI:~  of said mortgage. A chattel mortgage, where the mortgagor is allowed to remain in possession and dispose of the property in the usual course of his business, is void as to purchasers and attaching creditors unless recorded. Every transfer of an interest in real property, no matter what its form, is deemed a mortgage if made as security. A mortgage does not entitle a mortgagee to possession of the property or bind the mortgagor personally to perform the act for the performance of which It is security, unless there is an express covenant to that effect. Mortgage upon real estate shall not be a lien or incumbrance after ten years from its execution or if otherwise disclosed ten years from date of maturity of the principal indebtedness. of ~iJg_r1es. Appointed by governor for four years and give bond  1939  THE LAWS OF PENNSYLVANIA RELATING TO  BANKING AND COMMERCIAL USAGES Revised by MORRIS, w ALKER AND BOYLE, Attorneys at Law Pittsburgb. (See Card in Attorneys' List.)  Acknowledgments of deeds of land in Pennsylvania should be made in the United States before an officer in any state authorized by laws of said state to take acknowledgments, the authority to be proved by certificate of clerk of any court of record, under seal of court. A married woman may make acknowledgment in the same manner and form as a femme sole. Actions. Torts are sued in trespass; all other claims in assumpsit common pleas courts have, equity powers. Assump it to 300, cognizable by justices of tile peace. Common pleas has original jurisdiction in all civil actions. By Act of 1911, and supplements, a. county court was established for Allegheny county, having jurisdiction in assumpsit and trespass to $1,500; also has jurisdiction in 0 a~~:~ ?r~s~rtf~tf~~ ~~~s~pcf~e!~d J;;:inii!i t~rt6:on The muniripal court of Philadelphia County, created by Act of 1911, and supplements, is very similar to the Allegheny county court. Administration of Estates. Administrators must file an inventory and appraisement of the personal estate within thirty days, and settle an account in six months from the date of their appointment. A widow is entitled to retain real or per onal property to the amount of $500. A decedent's debts must be paid in the following order: 1. Funeral expenses, medicine and medical attendance during last illness of the decedent, and servants' wages not exceeding one year. 2. Rents not exceeding one year. 3. All other debts, without regard to the quality of tile same, except debts due the commonwealth, which shall be last paid. Appeals may be taken within six months to the superior or supreme court, according to the nature of the question or amount involved;  f  H~f!!s  ~~fe~~Jr~r~r!b~~c:  1n~?~°:rt~~!e~~ ~6Ju~~r ~~Je~~~~ ~~y weeks from such entry. An appeal may be taken to the county court from a judgment before a justice of the peace at any time within twenty days from date of judgment. A corporation appellant must in all cases of appeal from justice's judgment give bond for debt, interest and costs. (See Courts.) Arrest in civil cases, under capias, issued instead of summons to begin an action, may occur in certain cases of assumpsit and in tort actions on affidavit filed. A defendant may be arrested, after suit brought by summons, upon proof that he is about to remove his property to defraud his creditors, or has done so, or that he fraudulently conceals his property, or that he fraudulently contracted the debt. In civil cases, where the defendant is arrested on a bench warrant in a suit based on the allegation that the debt was fraudulently contracted, the defendant cannot secure his discharge from arrest and confinement (if directed by the court) by going into bankruptcy; since a discharge from bankruptcy does not discharge the bankrupt from debts fraudulently contracted. Assignments and Insolvency. A debtor may make a voluntary assignment in trust for the benefit of all creditors, which must be recorded in thirty days. The assignment does not relieve the debtor from the debt. Insolvency Act of 1901 is similar to the United States bankruptcy law and has been decided to be suspended while the United States bankruptcy is in force, as to cases to wnich the latter applies. Attachment Before .Judgment. Property of resident debtors may be attached, when debtor is about to remove his property out of the jurisdiction of the court in which the attachment is applied for with intent to defraud his creditors; when he bas property which he fraudulently conceals; when he has disposed of or 1s about to dispose of bfa property, witn intent to defraud his dreditors; when he · has fraudulently contracted the debt or incurred the obligation for which the claim is made. Attachment can also be had to seize and hold property of non-resident. Judgment pursuant to foreign attachment binds tbe attached property only, unless the defendant appears Banks. Any association of per ons, not less than five, may organize banks of discount, deposit and circulation, with a capital of not less than $50,000 nor more than 1.000,000. Whenever a person or association desires to establish a bank, or increase the capital. a certificate to that effect must be made and advertised for at least six months in at least three newspapers, one published at the seat of government and the other two in the city or county where such a. bank is located. When a copy of this certificate containing the name,  :~ i~:!~  0  t:;  ~~j!~~~~c~rffii~~ tllu:1a~!~r~~;h;~~~ f~t;°w~i~ife~~~~i~r era! it is recorded after the manner of deeds, and the governor, upon a certified copy of such certificate being produced before him, causes letters patent to be issued. Every person or corporation to whom letters patent may be granted. is authorized to carry on business for twenty years from the date of patent. The auditor general is required to report annually to the legislature, within three days of the commencement of the session, a summary of the condition of every incorporated bank, with an abstract of the amount of banking capital returned by them. The capital stock of each bank is divided into shares of $50 each. It is the duty of every cashier to publish in the newspapers a statement giving the amount of assets and liabilities, circulation, deposits, gold, and silver, with all evidences of debt, with the personal and real property of the bank; and semi-annual reports are required. The audit-or general is to require quarterly statements from cashiers of the condition of banks, and one of the statements shall be made in ovember. Stockholders are individually liable for the notes i!-Sued by the bank, and in case of insolvency are liable for assessment to the par value of their stock. Under the general laws a savings bank can invest in any good bonds or securities; but nearly all savings banks have special charters, and the regulations as to investments in them differ. By an act; passed by the legislature of 1889, the organization of savings banks is facilitated, and their management carefully controlled. All banksi trust companies, and building associations are now under the contro of the banking department created by a.ct of February 11, 1895. Under a.ct of 1907, private banks are subject to supervision of state commissioner of banking. Under act of 1907, state banks and trust companies must maintain reserve of 15 per cent of checking accounts and 7 ½ per cent on savings accounts and time deposits.  g!   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1940  BANKING AND COMMERCIAL LAWS-PENNSYLVANIA  Trust companies are organized under the 1?eneral corporation Jaw for tbe purpose of in ·uring titles capital in any amount, and acquire tru:t company powers by accepting certain Jaw:s and paying up $125,000 capital, at least. ~ To double liability. Bills of Lading. A bill of !acting may be transferred by endorsement and delivery unless the words "not negotiable" are plainly written or stamped on their face. The endorsee is taken to be the owner of the goods. Chattel :\lortgages. Allowed in iron, steel, and certain other articles. ::\1ust be recorded. Contracts may he specifically enforced in equity where t-here is no adequate remedy at law, or damages for the breach be recovered at law. Cont.racts for an interest in real estate, except leases for not exceeding three years and contracts to hold an executor or administra:;or individually, and to hold a guarantor or surety, must be in writing, unle. s the amount involved be less than $20. Cor11orations. A corporation may be formed for any single lawful  ~U:f i:· co~~~?i3~t~3.re ~?~1;;:il~~sfr~Jh:r~irr~~~ ~h~~:~~JW t:e governor; others by the court of common pleas of the proper county. 0  0  The former pay a charter bonus of one-t.nird of 1 per cent on the authorized capital: annual tax 4 mills on apprai ed value of capital stock. Foreign corporations are subject to the same bonus and the same tax on the capital employed in this S.tate. Foreign corporations doing business here must register and comply carefully with the State law under severe penalties and I'isk of avoidance of contracts. Manufacturing corporations are exempt from taxation, if capital is invested in strictly manufacturing pursuits. Days of Grace are abolished. Deeds and l\fortgai:es. Deeds and mortgages hould be under seal and duly acknowledged. •'croll .·eal b suJilcient. Acknowledgments taken out of the State are usually taken before a notary, whose authority should be evidenced by certificate of clerk of court. Husband must join in wife's deed or mortgage. Wife must join in bu·band's deed, not in his mortgage. The wife need not acknowledge separate and apart from husband. B~· tatute, the words "grant and convey·• import all usual coveuants except warranty. Covenants of warranty are added by the words "will warrant generally the property hereby conveyed." or, "will warrant specially the property hereby conveyed," as the case may be. .Essential words of quitclaim deeds are "releac;e and quit<"laim." (For forms see Act 1900, page 01.) A mortgage is in form a conveyance. u~ually reciting a bond which it secures, and containing a class of defea ance. Descent and Distribution of Property. E tates of intestates are to be distributed as follows: 1. ·where an intestate shall leave a spouse surviving and one child only, or shall leave a spouse surviving and no children bnt shall leave de. cendants of one deceased child, the spouse shall be entitled to one-half part of the real and personal estate. 2. Where an intestate shall lea Ye a spou. e surviving and more than one child, or one child and the de. <;end ants of a deceased child or children, or the descendants of more than one deceased child, the surviving spouse shall be entitled to onc-thirrl part of the real and personal estate. 8. \\'here an intestate shall leave a spou e survh·ing and other kinclJ:od, but no issue, the ·urviving spouse shall be entitled to the real or personal estate or both, to the aggregate value of ~5,000, In addition in case of a widow, to the widow's exemption as allowed by law (now $.500); and if such estate shall exceed in value the smn of . 5,000 tne surviving spouse shall be entitled to the sum of < .5,000 absolutely to he cho:en by him or her from real or personal estate or bot.n, and in addition thereto, sball be entitled to one-half part of the remaining real and personal estate. 4. Where a husband, for one year or upwards previous to tho death of his wife, wilfully neglected or refused to provide for his wife. or where for that, period or upwards he wilfully and maliciously deserted her, he shall have no right or interest in her real or personal estate under the provisions of the intestate act. "'here a wife, for one year or upwards previous to the death of her husband, wilfully and maliciously deserts her hu band, she shall have no interest in his real or personal estate after his decease under the inte. tate law. 5. The real and personal estate of an inte. tate not hereinbefore given to the survivine; spou e. if any there be, shall desrend to and be distributed amonf.!: his or her issue according to tbe following rules ancl order of succession. namely: (a) If such intestate shall leave children but no other descendant, being the i ·sue of a deceased child. the estate shall descend to and be di tributed among such children. (b) lf such intestate shall leave grandchildren but no child or other descendant, being the issue of a deceased grandchild, the estate shall descend to and be listributed among such gt·andchildren. (c) If such intestate shall leave descendants in other degrees of consanguinit,y, however remote from him, and be in the same degree of con:anguinity to him, t-he estate shall descend to and be distributed among such descendant . (d) If such intestate shall leave descendants in different degrees of consanguinity to him, the more remote of them being the L ue of a deceased child, grandchild or other descendant, the estate shall descend to and be di tributed among them as follows, namely: (1) Rach of the children of such intestate shall receive such share as such child would have received if all the children of the intestate who shall then be dead. leaving issue, had been living at the death of. uch intestate. (2) Each of the grandchildren, If there shall be no children, in l_ike ~anner shall receive such share as he or she would have received 1f all the other grandchildren who shall then be dead, leaving issue, had been living at the death of the intestate, and shall in like manner to the remotest degree. (3) In every such case tno issue of such deceased child, grandchild or other de ·ccndant. hall take, by repre.·entation of their parents re pectively such share only as would have desceuded to such parents if they had been living at the death of the intestate. (6) In default of issue as aforesaid the real and personal estate of such intestate not hereinbefore given to the surviving spouse, if any there be, shall go to and be vested in the father and mother of such intestate, or if either the father or mother be dead at tho time of the dea.th of the intestate the parent surviving shall take such rf'al anci per onal estate. (7) In default of isc.ue. father and mother, the real and personal estate of such inte tate not hereinhefore given to the surviving spouse, if any there be, shall descend to and be distributed among the collateral heirs and kindred of such intestate. without distinction between tho ·e of the whole and those of the half blood according to the manner enumerated in the Act of 1917. (8) A person adopted shall. for all purposes of inheritance and taking by devolution, be a member of the family of the adopting parent or parents. Every illegitimate child shall be considered a,. a brother or sister to every other child of its mother, legitimate or illegitimate. Dower. (See Descent.) Executions may be issued as soon as judgment is obtained. The writ of exeeution is made returnable to the tir ·t Monday of the following term; but it is the duty of the sheriff to make hi levy at once, and he may proceed to sell per.·onal property upon six days' notice, and distribute the proceeds. tay of execution upon suits in court can be taken, by giving security, or under claim of freehold, on all sums of $200 and under, six months, between $200 and 5500, nine months; over $500. twelve months. In suit· before justices of the peace on sums between $5.33 and 20, three months; between 20 and 60, six months; and over GO, twelve months. The stay is computed from the flrst_._day of the term on which the action was commenced.  E.·emptions. 1·0 homestead law. Real or personal property to the value of S300. in addition to wearing apparel. Bibles, and school books, and a sewing machine, are exempt, but the privilege is personal only and can be waived at any time. Typewriting machines pianos, organs and soda fountains, leased or hired, are exempt from sale on execution or distress for rent, provided notice of such leasing has been given to the landlord. Fraud. (See Attachment.) Garni hm.ent may he had by attachment execution upon any existing judgment of any stock, debts, or deposits of money, or of goods and chattels pawned or pledged. Wages exempt except for board. Holidays. .Janua1·y 1st. February 12th, February 22d. Good Friday, J\lay 30th, known as :.'\Iemorial Day, July 4th, the first ~t:onday of September, known as Labor Day, October 12th, Columbus Day, the first Tuesday after the first ::\Iomlay of N"oYember (election day), Thanksgiying Day, Christmas;, and every Saturday after twelve o'clock noon until twelve o'clock midnight are designated as legal holidays, and in respect to negotiable paper are to be treated and considered as such. Husband and Wife. (See l\Iarried Women.) Interest. The legal rate is G per cent; u urious interest can not be collected, and if paid may be recoYered back, provided suit is brought therefor within six month after final payment of the debt. It is not usury for a borrower to contract to pay tne taxe upon the money lent, nor to pay a reasonable attorney's fee in case suit is brought for its collection. Judgments of record bind all the interest of defendant in real estate within the county where the judgment was entered. The lien is against only real estate then owned in the county by the defendant. After-acquired real estate is not affected by the ,·erdict or judirment, hut a lien may be acquired on sueh after-acquired real estate by revival of the judgment as against it; and in the interim, by execution issued against such after-acquired real estate, and indexed in tbe judgment dockets. Lien exists for five years, and may be continued by revival of the judgment. Ju. tice's judgments become liens by filing transcripts in the court of common pleas. Limitations of Suit . <ontracts, notes, and in. truments not under seal. trespass, detinue, replevin. six years; action for trespass, to person, t,wo years: for death, one year; for slander, one year; judgments, mortgages, and sealed instrument· will be presumed to be paid after twenty years, but this pre~umption may he rebutted. HeviYor: Acknowledgment, coupled with promise to pay; promiso may be implied. if acknowledgment is plain, expre ·s, and nothing to negative such implication. l\farried ·women have all the legal rights and capacity of an unmarried person except that they cannot convey or mortgage real estate without joinder of husband, and cannot become accommodation makers, endorsers or suretie,, or guarantors. (See Deeds.) :'.\fechanics' Claim.·. The right of parties furnishing labor or materials to building,-;, bridges, pipe lines, raih,ays, etc., as to tiling liens, are defined and regulated hy act of 1901. In the case of tenanci s, lea! eholds, alteration and repairs, the claim must be flled in cout·t within three months after the claimant.'s contract or agreement is completed; and in all other ca es, within slx months thereafter. • Any sub-contractor (one who furnishes labor or material by agreement with the contractor or his agent) must give to the owner written notice of his intention to flle his claim, toge-ther ,vith a s, orn statement setting forth the contract, amount, items and date of last work done or materials furnished. Such notice must be sen·ed at least one month before the claim is filed and within three months after the last of his work was done or materials furni.-11ed, if he has six months within which to file his claim, otherwise within forty-five days thereafter. Iortgages are executed and acknowledged same as deeds, and lieu inheres from time of recording except where given for purchase money, when the mortgage is a lien from its date, if recorded within thirty days. By Act of 1915. (See Deeds.) :Sotes and Bills of Exchange. The substantive law is codified in the Tegotial>le Instruments Law of 1901. Supplementary Proccedin~s. Where the heriff makes a return that property of debtor cannot be found snfllcient to .atisfy an execution, the plaintiff may l>y application to the Court compel the debtor to submit to an oral examination for tbe purpose of di covering whether be has property which may be made subject to execution on the judgment. "'arehouse Receipt . Receipts compll·ing in sub tance with act of 1!)0!) are negotiable jf stating that the goods "ill be delivered to bearer or to order of a named person. ,vms. Every will shall be In writing, and unless the person making the same shall be prernnted by the extremity of his last sickness shall be signed by him at the end thereof, or by some person in his presence and by hi exprc ·s direction; and in all cases shall be proved by the oaths or affirmation: of two or more competent witnesses, otherwise such will shall be of no effect. Provided, That personal estate may be bequeathed by a nuncupative will, under the following restrictions: 1. Sucb will shall in all ca ·es be made during the last sickness of the te tator, and in the hou e of his habitation or dwelling, or where he has resided for the si,ace of ten day or more next hefore tbe making of such will. except where such person, shall he sm·prised by sickness, being away from his own house, and shall dio before returning thereto. 2. Where tbe sum or ,·alue bequeathed shall exceed the  ~~~~fng 1 ~~e it:~~!~t~  d~d0 b?f }~:\i:~o~;t~~~~e;; tb~e 't~:: ~~fgr  them, to bear witness that such was his wlll, or to that efJect; and in all cases the foregoing requisites shall be proved by two or more witno ses, who were present at the time of making of such will. A devise or bequest by a hu.·band to .ni wife of any portion or hi estate or property hall be deemed and taken to be in lieu and bar of ber dower in the e ·tate of . uch testator, in like manner as if it were so expres ·ed in the will, unle . .- such testator shall in hi · will declare otherwise. A de~i e or bequest in trust for any reliJdous or charitable use, made within 30 days prior to to-stator's death is void.  BANKING AND COMMERCIAL LAWS-PHILIPPINE ISLANDS  1941  d 1-  iS  n  e ~l ti  t t  t  0  SYNOPSIS AND NOTES AS TO DIGEST OF THE  SYNOPSIS 01"  LAWS OF PHILIPPINE ISLANDS  THE LAWS OF RHODE ISLAND  Prepared by WOLFSON & WOLFSON. Attorneys at Law, Manila. (See Card in Attorneys' List.)  RELATING TO  Judgments carry interest at rate of 7 per cent, but there being no usury laws. any interest contracted for can be recovered. Our JusUce or the_peace in the city or Manila bas juri5dict.lon from one cent to $300. United States currency. For 300 (United States currency) or over suit. must be flied in our court of first instance, which court bas concurrent jurii-diction with the justice of the peace from S!iO, United States currency to $300, United States currency. Appeals ran be taken to the supreme court of the Philippine Islands for any amount over which the court of first instance bas jurisdiction. Special laws relating to land. The cost of filing In the justice court, Inclusive of sheriff's fees, Is about S3. 00 United States currency. The cost of filing suit in the court of first instance, inclusive of sheriff's fees, is about $10, United States currency. The cost for filing a snit in the supreme court is 112, United States currency. 1f facts are to be reviewed, all pleadings must be printed. Cost 11 .00 per page. All costs are payable in advance or fllln~ the cause. A cause is appealed to the supreme court of these Islands by preparing and having approved a bill of exceptions by the court of first Instance, which bill of exceptions contain.~ the pleadings. The evidence and testimony goes to the supreme court from the court of first instance In I Ls original form as filed below. Briefs, of course, are paid for by the re,,pectlve parties and cannot be recovered as costs. There are statutory fees allowed the winninll party. Sections 412 and 424 of the code of civil procedure give the causes which justify an attac.hmcnt. A chattel mortgage law has been enacted by the commission, thus enabling a person to secure Joans on any movable property, except on general stock of merchandise In a going store. Specific merchandise in the store may be mortgaged, hut not a general stock. A corporation law Is now in effect in the Philippine Islands. . The divorce laws have been suspended by our laws (code) or ciVIl procedure. However, our courts will grant judicial separations 10 wig~r':it1s'fi"!.~~t~t~s,~i1~iro~ owed, as well as supplemental pro-  ts ~W  cet~g:upreme court bas decided that the judgment having ol<!est date takes first privilege over proceed" regardless of first execution. no matter how vigilant the subsequent judgment C:edltor. . • Thero Is no settled jurisprudence regarding t~e hen and privilege of a judgment debtor, not have we any recognized or settled Jurisprudences regarding mechanic's liens, as well as !' furn! her of supphes. The civil code treats fully the rights of married women We have several classes of mortgages, which are fully treated in th~ civil code. The form most in vogue here ls the "vent a pacto de ren:o, Which Is a conditional sale. The non-payment of the debt at the time mentioned in the mortgage forfeits the property to the mortgagee. The uniform "Negotiable Instruments Law' is now l_n force here. A claim sent for collection may be proved by deposition or by oral examination in court. If a claim is presented by an a.ttorn~Y. and the amount acknowledged as due and owing by the debtor, his evidence Will be accepted as proof of admission of the claim. All bank checks must be endorc;ed with name of payee. Real estate sold under exe,·ution i'> redeemable by the judgment debtor, or any party in interest, within twelve months from the date or sale, upon the payment of all costs and expenses ~nd 1 per cent per month interest Personal property may be replevmed upon comPlYlng with the condition pre cribed by the code. Service of summons is made by the civil sheriff in the city or Manila, and by sheriffs who are duly appointed In the provinces. otherwise by the governor of the province, who ts the ex-officio officer (sheriff). Under the bead of wills, our law relative thereto is exceedingly simple. A bankruptcy law, practically the same as the national bankruJ?tcy bill or the United states was passed at the 1909 se ion of our l6!1:1slature. A merchant may be put into bankruptcy upon the petitl(!n of three or more local creditors whose claims have remained unpaid for thirty days, provided their claims aggregate $500 United States  mi;-:,nh~~! lli~r~-Torrens Title" system or registering title to lands. This system bas been in force since 1902 and has  worked splendidly. Cadastral surveys are now being made in many parts of the islands. Our mining laws are set forth in the Act of Congre~ or July 1. 1902. A few amendments have been made. Patents to mming claims are easuy obtained at comparatively small expense.  123  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  BANKING AND COMMERCIAL USAGES Revised by PERCY W. GARDNER, Attorney at Law, Pro"idence. Accounts. (See Proof of Claims.) Acknowledgment of any instrument required by any statute or this State to be acknowledged shall be made, within this State. before any state senator, judge, justice of the peace, mayor, notary public, town clerk or recorder of deeds: without this ~tat.e, and within the United States, before any judge or justice of a court of record or other court, justice of the peace, mayor or notary public of the State, District of Columbia, or territory in wbich such acknowledgment ls made, or before any commissioner appointed by the governor of this State; without the limit.,;; of the United States. before any ambassador, minister, charge d'affaire<;, consul-general, vice-consul-general, <'onsul, vice~onsu1. consular agent, or commercial agent or the United States, or before any eommissioner appointed by the governor of this State in the countrv in which such acknowledgment is ~ade. (See Deeds.) Actions and Suits. All actions and suits which concern realty must be brought In the county, or district, If in a di5trict court, in which the land lies; all other actions and suits. either In the county or district where the plaintiff or defendant or some one of the parties, plaintiff or defendanL, shall dwell, or In which the defendant or one of the defendants shall be found. (See Court:s.) Administration of Docedt>nt•s Estntt'. In grants of administration the widower or widow is preferred: after them the next of kin. If these nep;lect "ithin thirty days to apply. any person interested in the estate may petit.ion for the appointment of some suitable person. Non-residents are not appointed l,y rea.<:on of any right to such trust but may be appointed in discret,ion of the court.. Foreign executors and administrators mutt appoint local agent for acceptance of service of process. Bonds shall he given in such amounts and with such sureties as the court shall direct. Executors and administrators shall me acr.ounts within two years after qualification and thereafter annually. The prohate court may allow widow or minor children such household effects and property exempt from attachment as It deems neces..c;ary and shall also make reasonahle allowance for the support of the family not exceeding six months from the date of decea e. Notice of practically all proceedings is given by publication. Where personal property is Insufficient to pay debts, the funeral expenses, charges of administration and expen e of support of family, real estate may be sold or mortga!led by the executor, administrator or guardian upon application to the probate court and upon terms and conditions imposed by the court and under certain limitations as prescribed by statute. Affidavits may be taken by any magistrate within the State and before any com.missioner appointed bythe governor within the State or county described In the commission. Affidavits to be used in this State may usually be taken outside of Rhode Island, before magistrates authorized to take depositions. No particular form is prescribed. Aliens may take hold, convey, and transmit title to real estate, and may sue for and re<:over possession of the same in the same way and with the same effect as if they were native-born citizens of the United States. Appeals may be taken from decree or order of a probate court or town council to the superior court within forty days after the decree or order. Jf no appeal Is taken by reason of accident, mistake or unforeseen cause, a right to appeal may be granted by the supreme court upon petition filed within one year. In all cases where an executor, administrator or guardian is directed by law to obtain the adviee and direction of the probate court before acting, there is no appeal from such advice or direction; and the same is conclusive, and all parties acting thereon are protected thereunder. Appeals from a district court to the superior court may be taken in any criminal case within five days afLer conviction; and 1n any civil case by claim of jury trial within two days after decision; except that in cases for posses..,ion of tenements, etc., the claim must be made within six hours after decision. Arbitration. Controversies or claims relating to estates In the hands of trustees, exe<'utors, administrators, and other fiduciaries may be settled by arbitration and award, under authority or the court. There are especial statutory provisions regarding proceedlnga upon arbitraLion. Arrest. Writ of arrest may issue in contract suits, where defendant bas committed fraud in fact, or ls about to leave the State, and in all tort actions. Assignments. Every person making an as,c;ignment at common law for the benflt of creditors shall file '\\ith his assignee a sworn, itemized schedule of all his assets, showing the amount and kind of his property, wnere located. and the cash value thereof, to the best of bis knowledge and bellef, and a list of bis creditors stating their names, residences. and the amounts due each of them and the evidences thereof and securities therefor, if any, held by them. Such deed and assignment must be recorded, and the assignee must give public notice of his qualification to all creditors to present claims and to all debtors to make payments to such assignee, in some newspaper published in   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  BANKING AND COMMERCIAL LAWS-RHODE ISLAND  1942  the county in which such assignor resides or ls located, and such assignee shall also notify creditors in like manner by mail. One-fifth in amount of the creditors of the assignor, by petition to the superior court, may require assignee to give bond to the superior court, with good surety, in the amount of the total value of all property conveyed  ~ t~~t1!;.d Ju~i~~~!e c~a~ttgie1eg~:d ~t~~~Ee~~ 7t1:~:et sworn report in writing to the superior court of all his doings under his trust. Attachment lies in assumpsit. Writs may issue to attach real 0  0  :&Ji8a~J[.  ~:i:x~~  0  ~~ate~oank~ ~ge:; :nd~~~JhinP~t~~it~ at\i~~~~ that the plaintiff has a just claim against the defendant that is due, on which be expects to recover a sum sufficient to give jurisdiction to the court to wb!cb the writ Is returnable. The property of a non-resident defendant may be attached in tort actions upon like affidavit stating also the fact of his non-residence. Banks and Trust Companies. The bank commissioner, the general treasurer, and the attorney-general constitute the board of bank incorporation. Fifteen or more persons, c-itizens and residents of this State, may associate themselves by agreement in writing for the purpose of forming either a bank, a i:;avings bank, or a trust company. and become a corporation, with all the powers, rights, and 1 Fi:~e~e~it!~1~f¾e~} b!~:r~f t:w~e~tm}g3:• I~~~~~iJ~J~sa~eJ amendments and additions thereto. The bank commissioner shall at least twice in each year visit and examine each bank, savings bank, or trust company incorporated in this State, and be shall annually report to the general assembly the condition of all institutions examined by him. with such recommendations as he may deem proper. Every  ig:  ~i~~~r ~i~/~f~e~f1E:~ytir:e~e~;~in r:~~irc~e~aa:b:e~:.n!t;8~~;  a full and detailed report to the bank commissioner, over the signatures and oaths of its president or vice-president and secretary or treasurer, or cashier, or auditor, and attested by at least three of its board of directors, showing accurately the conrlition of such corporation at the close of business on any past day by him specified; and every savings !Jank, upon request of the bank commissioner, but at least twice within any calendar year. shall make a report to said bank commissioner, signed and sworn to by its president or treasurer, i:;howing accurately the condition of such corporation at the close of business on any pa.<;t day by him specified. In case any such corporation appears to be insolvent, the bank commissioner, with the approval and consent in writing of at least one other member of the board of hank incorporation, shall immediately take possession of said corporation and its assets, and may apply to the superior court for the appointment of himself or a deputy or both. as receiver or receivers thereof. Investments by and reserve funds of such corporations are prescribed and limited by the provisions of said title, and amendments thereto. Bills of Exchange. (See Notes and Bills of Exchange.) Bills of Lading. Every bill of lading must embody within its written or printed terms, the date of its issue, the name of the person from whom t-be goods have been received, the place where the goods have been received, \be place to which the goods are to be transported, a statement whether the goods received will be delivered to a spec-itled person, or to the order of a speclfled person. desrription of the goods or of the pa<'kages containing them, which may, however. be in such general terms as are referred t,o in section 23, and the signature of the carrier. (The Uniform Bills of Lading Act went into effect in April, HH4.)  Chattel Mortgages are executed in the same manner as mortgages  of real estate, and may cover any kind of personal property.  To be valid against third parties, they must be recorded where the mortgagor resides, if be be a resident of the 8tate; if a non-resident the record mui=;t be In the town where the property is at the time of making the mortgage. Or the mortgagee may take posses,;ion of the mortgaged property and will be protected as a pledgee in poss&;sion against third parties. But, the mortgage must be recorded or po. session mu<it be taken within five days of the date of signing, otherwise it is  ;g~:l ~I1c: 0  0  vo;io~:il:~r8: i; u~~:1r;1;~~~tt!1l ;:~!1eh:;~!~ ~~:.lgage. Mortgagor may redeem at any time within sixty days after condition is broken, unless the property shall have been sold pursuant to the contract between the parties. Claims against Estates of Deceased Person!i. All claims must be flied in the office of the probate clerk, within six months from the date of the first advertisement of the notice of bis qualification, or within any longer period not exceeding one year from such date. No claims other than those presented as aforesaid can be enforced  ::!~oi~r  ~f:Jnb; ~~ci~~~s~r c~~T::: o~a:nr5c!1~:ans~~l~e~~i~g~l~i~~ shall be paid if the adminlstrat.or still ha.s fund in his hands. Claims tiled within isix months may be disallowed in thirty days after expiration or six months from first publication of notice; claims flied within one year in thirty days after the year; and claims filed after the year in thirty days after filing. Interested parties may secure authority from the probate court to disallow after the term as above specified has expired. Suits on disallowed claims may be brought in six months after notice has been given of disallowance unless the e. tate ls solvent or commissioners are appointed. Debts due to the United States, the necessary funeral charges of the deceased, the charges for medical attendance and nursing, specially employed, and medicines used in the last illness, debts due to this State, and all state and town taxes, are to be first paid, and in the order in which they are named. If a commission, on either solvent or insolvent estates be requested. such commission shall be appointed by the court at once, and shall report on the contei.-ted claims within a period of three months, unless further time be allowed for cause shown. Such commis.<iloners shall give due notice of the times and places of their meetings to bear the c-reditors on their claims. and they or either of them may administer oath<i to and compel the attendance of witnes.<ies. Any person whose clalm is not allowed in the whole by the commission shall have the right to appeal to the superior court. Collaterals. No person holding stock In any manufacturing corporation as collateral security, shall be personally liable, by virtue of such stock, to any liabilities as a stockholder of such company. There Is no statutory provision as to the method of foreclosure of collateral. Contracts. All contracts, except for neceAAarles, made by any person under guardianship shall he void. Assignments of wages to be  t~~~t~;~e lf:~;a~1~ f~~ s~~!e~f t~~~J~~~ more than one year; contracts made upon consideration of marriage; contracts not to be performed within one year from the making thereof; and contracts to sell or a sale of goods or choses in action of S500 or more, unless the buyer shall accept part of the goods or choses In action and ac-tually receive the same, or p;ives somethln~ in earnest to bind the contract, or In part payment, must be in wrltmg and signed by the party to be charged or his lawfully authorized agent. Conveyances. (See Deeds.) Corporations. Under the provisions of Ohapter 1925, Public Laws, 1920. (a new corporation act having gone into f:ft'e,ct on July 1, 1920), any three or more persons of lawful age may associate for the purpose of organizing any ordinary business corporation, and 1  lh~  J~ J~e~/~Ii~~J~~ 0  upon filing articles of a· ociation with the secretary of state and payment of incorporation fee. secure perpetual charter unless the duration cf the corporation i'l limited in the articles of a"sociation. (Oorporations which shall need to exercise right of eminent domain, insurance companies, banks and corporations to trade in bc:-nds, stocks, etc., are otherwise organized.) Organization fee of 50 cents for each $1.000 of authorized capital, and in ca e of tock having no par value, 5 cents a share; but with a minimum fee af $25.00. Corporation must have place of business within the Etate, and treasurer, if a rnsident. must file name and address with the secretary of state. If trea urer is a non-resident there must be some competent person appointed resident attorney to accept service of process. Records of transfers of stock shall be kept within the tate. Meetings of stockholders mu~t be held within the state, but directors' meetings may be held either within or without the state. There is only a restricted stockholders' liability Costs. In C'ivil actions at law, the party prevailing shall recover costs, except when otherwise specially provided. or as justice may require in the discretion of the court. No allowance is made to pay the expenses of litigation or attorneys' fees. Every non-resident plaintiff, upon motion of the defendant. shall give some sufficient person residing within the State, or some surety company authorized to do hu ines therein as surety for costs. Courts. Terms and Jurisdiction. The supreme court has general supervision of all inferior courts and ha.s jurisdiction of petitions for new trials. bills of exceptions and appeals. Its principal session ls held at Providence from the first ::\fonday in October to the second Monday in July in the following year. The superior court has original jurisdiction of snits in equity, petitions for divorce, all actions at law where the debt or damages laid m the writ shall exceed . 500, of probate appealed cases and claims for jury trials from district courts. District courts have jurisdiction in civil casf'S limited to 500 and are in session throughout the year. Each town and city has its own probate court. The superior court is in continuous session from the third :vlonday in September to the second Monday in July the following year. need . Every conveyance of lands, tenements, or hereditaments absolutely. by way of mortgage. or on condition, use, or trust, for any term longer than one year, shall be void unless made in writing-, duly signed, acknowledged, delivered, and recorded in the records of landevidence in the town or city where the said lands. tenements or hereditaments are situated: Provided. however, that the same. if dPlivered, as between the party and their heirs, and as against those taking by gift or devise, or those having notice thereof. shall be valid and hinding, though not acknowledged or recorded. Such instrument may be referred to as, and shall be, a deed. though no seal bP affixed thereto. Acknowledgment of any deed must be by all the parties grantors, including married women, even though releasing dower only. (See Acknowledgment.) Uepo itions. Except in equity cases, any Justice of the supreme  c%~rs~t.ea~~fo~~i:, tA1  {~f p:s~ii~iit~fli ~~~· i~~ or proceeding, in which be is not interested. nor coun el, nor the attorney of f'ither party, and which shall then be commenced or pending in this State, or in any other state, or in the District of Columbia., or in any tPrritory, government or country. Previous to the taking of any deposition as aforesaid within this State the official authorized to take the same shall, in a!l cas •· cau~e the adver e party, or his attorney of record, to be not1flect or the time and place appointed for taking uch deposition. so that he may attend and put interror.ptorles to the deponent if he think flt. Depositions taken without this tate to be used in the tribunal th<>reof. may be taken by such person and in the manner and with the formalities required by the law of the State. Dii;;trict of Columbia, territory or country in which the same shall be taken. Every person. before deposing, shall be sworn to testify the truth, the whole truth and nothing but the truth, and shall subscribe his name to such deposition in the presence of the official before whom the same was taken. The deposition, so ta.ken, <;hall be retained b~· such magistrate. officer, or commissioner. until he deliver the same with his own hand to the court for which it is taken, or shall, together with a certificate of its having been duly taken. bE>. by said magi. trate, officer, or commissioner. sealed up and directed to such court. and remain so sealed until opened by order of the court. or of some Justice thereof, or by the clerk, by the consent of the parties; and any person may be compelled to appear and depose as aforesaid within this 8tate, in the same manner as to appear and testify in court. Instructions for Taking Depositions. The magistrate, officer. or commi sioner authorized to take depositions. in his notification to the adverse party, should state the time and placo appointed . and the names of witnesses to be examined, which must be ser,·ed by'a proper officer or by any impartial or disinterested person, wbo must make oath to his return. The depositions, when taken, will be returned under seal to the court in which the snit is pending with a certificate, indorsed by the magistrate, of the contents and name of the case. Descent and Distribution. Dower a.nd curtesy exi t. The following provisions go into effect June 1, 1919. Where Intestate dies, without issue, surviving husband or widow takes life estate in all realty. Probate court may, upon petition flied within one year after d cease. set off to widow or hnsband in fee real estate not exceeding five thousand dollars in value, over and above encumbrances, if not required for the payment of debts. Subject to above provision real estatf! descends in the following course: 1. To children or their descendants. 2. To the parents in equal shares or to the surviving parent. 3. To the brothers and sisters and their descendants. In default of these, in equal moieties to the paternal and maternal kindred, each in the following course: 1. To the grandparents, in equal shares. 2. To the unclPs and aunts, or their descendants by representation. 3. To the greatgrandparentc,, in equal shares. 4. To the great-uncles and great-aunts, or their descendants by representation, and so on, in other cases, without end, passing to the nearest · lineal ancestors and other descendants. But if the title of the intestate came "by descent. gift or devise from the parent or other kindred or the intestate, and such intestate die without children, such estate shall go to the kin next to the Intestate or the blood of the person from whom such estate came or d cended. if any there be." Surplus of personal estate. after payment of debts and charges, not bequeathed, is distributed as follows : 1. $3,000 and one-half of the remainder to husband or wife, if there be no issue. 2. One-half to husband or wife, if there be issue. 3. The remainder Is distributed in the manner provided for the descent or rea1 estate. but without regard t,, the blood of the person from whom such personal estate came or descended. Dower. (See Descent and Distribution.) EmployerR' Liability. A Workmen's Compensation Act providing for payments to employees for personal injuri received in the course of their employment applies to employees except in domestic service, agriculture and any other lines, where five or less workmen or operatives are regularly employed. Employers to whom the act appl!es may elect whether or not to accept Its provi loo . but those who do not are deprived by the act of the defenses or umptloo of risk, c-ontributory negligence and negligence of a fellow servant in  g~1:{;y ;A~~%~h~e  ~¥  0  ~tb°e'::~:~~tt1~a~~:~!f~\~zi ~~e~~i~~di~;'\ldm~o6= e~eil~~ rights of action at common law unless notice In writing Is givPn to employers, claiming such rights wltWn a 11pecifled time. For injuries resulting in death of employees or in Incapacity ror labor for a period ot more than two weeks, certain fixed amounts must be paid by  BANKING AND COMMERCIAL LAWS-RHODE ISLAND  1943  ----------------,--------------------- -----------  employers to those dependent upon the employees or to the employees themselves for specified periods of time, the same to be full compe,.nsation for said injuries. Evidence. No man shall be compelled to give evidence cri.m.inating himself. The parties to suits may testify. Husband and wife of eltber party are com.patent witnesses in any civil case, but neither can ~Ive evidence tendmg to criminate the other, nor disclose communications made during marriage, except in divorce causes. Either party to a divorce case may testify. Executions. Execution issues after twenty-four hours immediately following the entry of judgment; returnable three months after date thereof in district court, and in six months in other courts; can only be stayed by order of the court. There is no redemption of property sold under execution. In default of goods and chattels or real estate on which to levy, execution may issue against the body of the debtor in ca es where fraud is alleged, and for recovery of costs in actions of trespass and ejectment. Exemptions. No homestead law. Necessary wearing apparel of debtor and his family; working tools of a debtor, not exceeding 200. including the professional library of any .r.rofessional man in actual  Ffo~tiitia~~!1g~~J1~~!~~J~<;Ji~~eft~Jegtg~8fs sa3~~-u:~:01a!f pt  False Statements to Obtain Property on Credit. The making of a false statement in writing of financial condition for the purpose of procuring the delivery of personal property, the payment of cash, the making of a loan or credit, the extension of credit and the discount of an account receivable, or the making, acceptance, di count, sale or endorsement of a bill of exchange or promi sory note. is a misdemeanor. Forei~n C'orporations. Every foreign corporation, other than national banking as'lOC'iation and foreign insurance companie-;, shall tile lu the office of the secretary of state a copy of its charter and all amendments i;hereto, certified under the seal of the state or country in which such corporation is incorporated by the secretary of state thereof; also a cevtiflcate sigried and sworn to by certain of its officers setting forth the name and place of business in this state of the cm·poration, the character of its busine~s. amount and da.c;ses of its capital stock issued and outstandin~. names and addresses of director and officerR and dates when ra:spcct.lve terms of office expire, and date of annual meeting, and a written power appointine; some competent per ·on resident in this state as its attorney to acce.pt service of process. A"- a condition precedent to carrying on busines.. must pay a fee of $25.00. All foreign corporations must file an annual report with the secretary of state in the month of February of each yeat'. Forelim Judgments. There is no statutory provision as to foreign judgments. Garnishment. Personal estate of the defendant in the hands of any person. co-partnership, or corporation may be attached. The dehtor of the defendant should file an affidavit setting forth his liability etc. Guaranty Companies. (See Surety Companies.) Holidays. The first day of January, the 22d day of February, second Friday in May as Arbor Day, the 30th day of. lay a :\.Iemorial Day, July Fourth, first Monday in September as Labor Day, the 12th day of October as Columbus Day, December twenty-fifth, the Tuesday next after the first Monday in November in each year when a general election of state officers Is held, Sundays, and such other days as the governor, or general assembly, or the president, or the congr ·s of the United States shall appoint as Holidays. Holidays other than Sunday, falling on Sunday, are observed on the Monday following. Insolvency. Any inhabitant of this Rtat~ owing debt in this State to the amount of 300 or more, and who shall be in olvent, may Prefer his voluntar:v petition under oath for relief as an Insolvent; and such person shall be adjudged insolvent if he has within f(_)ur months prior to the filing of a petition in insolvency against him, Procured or suffered to remain for forty days, any attachment of or levy upon his property, with intent to give or suffer a preferenc.e, o_r, being msolvent has suffered judgment to be entered agamst him m this State or eisewhere or has made a conveyance, gift or transfer With Intent to hinder. d'elay or defraud his creditors; or h!JS made an assignment for the benefit of his creditors. or has secreted lus property, With intent to hinder defraud or delay his creditors. or has, within four months ne.xt prior to the filing of a petition a.i;::ainst hi!Jl. know~~gly in writing made a false statement hwolving ~IS financial c~ndit1on, Property, or ability to pay, or bas done or omitted other things pi:e-scribed by Chapter 339 of the general law , 1~09. Pr~fs of claim shall be made in writing under oath by the creditor or h1 a.e;ent. and flled with the clerk of the superior court, unles the ~atter has _been sent to a register, in which event they shall be filed with the register. (See also title Assignments.) Insurance Companies are controlled by the insurance commissioner, who may examine any of their officers or agents !lnder qath, and to whom they must transmit true statements of thell' condition and business in the month of January in each year. Interest. No person, partnership, or corporation, except duly licensed pawnbrokers. shall charge or take interest. on any loan, w:hether before or after maturity, at such a rate 1 includm~ c_ompensat1on !or aer'Vices or expenses incidental to the making, negotiation or c~llect1on of such loans that total of one year's interest shall exceed thll'ty per centum of the amount actually received by the borrower, on all a.mounts exceeding fifty dollars, whether in one or more loans, and on all amounts not exceeding fifty dollars, five per centlllll per month for the first six months - and thereafter two and one-half per centum per Xllonth of the amount actually received by the borrower. .Judgments are not a lien on real estate. Foreig~ judgments are Proved in accordance with a.ct of Congress, There lS no statute or ruie of court on the subject. .Jurisdiction. (See Courts.) Licenses. No license by commercial travelers is required in this State. Peddlers of merchandise must obtain a license from the State treasurer Liens. Persons doing work for, or furnishing materi~ls to be used In the construction, erection, or reparation of any bu1ldlng, canal, turnpike railroad or other improvement of the owner of the !_and on Which same is situated, by contract with such ow~er, ~r with the husband of such owner with the consent of his wife Ill wr1tln~. ha.<1 a lien thereon for such work and materials. subject to ~he encumbrances on land at time or the commencement of work or del!very o_f the ma~ria.Is. A sub-contractor bas such lien. provided he 11:ives wntten notice to the owner of the property affected thereby within forty days after doing such work. and sixty days after materials are placed upon the land, that he will claim such lien. Umttatlons of Actions. Actions for words spoken shall be commenced and sued within one year, next after the words spoken. Actions for Injuries to the person shall be commenced and sued within two Years next after the cause of action shall accrue. Actions of trespass, except for Injuries to the person, sbal! be commenced and All BUed within four years next after the cause of action shall accrue. actions of account except on such a.ccounts as concern trade or merchandise between merchant and merchant their factors and servants, all actions of the case except tor words spoken and tor injuries to the   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  per ·on, all actions of debt founded upon any contract without specialty or brought for arrearages of rents, and all actions of detinue and replevin, shall be commenced and sued within six years next after the cause of action shall accrue. All actions of debt other than those in the preceding sections specified, and all actions of covenant, shall be commenced and sued within twenty years next after the cause of action shall accrue. No executor or administrator may (except in certain cases, for which special provision is made by statute) be sued at law or in equity, by a creditor of the deceased, within six months from the date of the first publication of the notice of the qualification of the fl.rst executor or administrator. No executor or administrator shall be held to answer to the suit of a creditor of the deceased. except to a suit on his bond or as is otherwise provided, unless such suit is commenced within two years from the date of the said first publication and before any order of distribution has been made on the estate of the decea.'ied. 1\-larried Women. The property of a married woman is secured to her separate use, and is not liable for debts of her husband. She can tran act business as a trader as though single and unmarried. Bond executed by her is legal and binding. She may make any contract whatsoever, the same as if she were single and unmarried, and with the same rights and liabilities. Property secured to her shall be liable to attachment and levy for her debts and liabilities under the same circumstances and with the same effect as if she had continued sole and unmarried. (See Deeds.) Mortgages must be executed in the same manner as deeds, and recorded (see aqte). Foreclosure is usually enforced by sale under power in the mortgage, which in most cases enables the mortgagee to sell after prescribed notice thereof published in newspaper. after default. :Mortgages may be discharged by release on the face of the record, or upon original mortgage deed, or by separate deed of discharge and release. Mortgages are usually given to secure promissory note of the mortgagor to the mortgagee's order, described in the mortgage. There is no redemption period. Notaries Public are appointed by the governor in June to serve three years. They have the power to administer oaths, take acknowlments to deeds and other instruments, take depositions and protest bills of exchange, notes and checks. _ otes and Bills of Exchange are governed by the provisions of Title XIX of the General Laws, 1909, entitled "Of Negotiahle Instruments," which is the Uniform Negotiable Instruments law, and has been in force in this State since 1899. Partnershir1, Limited, may be formed for mercantile, mechanical, or manufacturing business. but cannot transact insurance nor become ba_nks of issue and circulation. The persons forming any such partnership shall make and severally sign a certificate, which shall set forth: 1. The name of the _partnership. 2. The names and respective places of residence of all the general and special partners, distinguishmg who a.re general and who are special partners. 3. The amount of the capital which each special partner has contributed. 4. The general nature of the business to be transacted. 5. The time when the partnership is to commence and when it is to terminate. This certificate must be acknowledged by all and recorded in the office of the town or city clerk in the town or city in which the partnership's principal place of business is located. (See Chapter 186 of the General Laws, 1909, as to the liability of the partners.) Probate Law. (See Administration of Decedent's Estate.)  t~~ ~~~Y!~~! ~t:;ei~1!<; exr:;t°fn°i~?o1~~:v. ~ne as mentioned under title Attachment, or Arrest, should be sent with the claim when suit is to be brought. Claims must be filed with assignees within six months from the date of the published notice of the a.."-signment. If disallowed tbe 8-!" ignee gives notice in writing to 'on-resident plaintiffs creditor, who must sue within sixty days. may always be required to give security for costs after a suit is entered in court, and other plaintiffs in the discretion of the court. (See Claims against the Estates of Deceased Persons.) Protest. Notes, bills of exchange, and drafts are protested by notary public. Records, deeds, mortgages, and other writings required to be  ffii°J>!Jt  ~l  ;{8p~~!1:i:~~ ~he~1:it~; ~~: ~~~r8~dcifl i~~~~~!cgf\~! ~h~ ~1tyd of deeds. 0  recorder Redemption. Property sold under execution, or foreclosed and sold under power of sale in a mortgage, cannot be redeemed. Real estate sold for taxes thereon may be redeemed within one year upon repayment to the purchaser of the amount of the tax with expanses · and 20 per cent additional. Replevin. Any personal estate may be replevied by the owner, unless he be defendant in a suit in which such property has been att.ached. Bond in double the value of the property replevied, with sufficient sureties. is required. Revision. The last revision of the Rhode Island statutes went into effect January 1, 1910, and is termed "General Laws of Rhode Island, 1909." has been in effect in Sale of Goods. Uniform Sale of Goods this State since April 30, 1908. Sales in Bulk. The transfer of the major part in value or the whole of a stock of merchandise and fixtures, or merchandise, or fLnures, otherwise than in the ordinary course of trade and In the regular and usual prosecution of the transferrer's business, whether in one or more parcels or to one or more persons, provided the transfer is all part of substantially one transaction or proceeding or occurs ~~~11{fo~i~¥~h~t t~~:s}~~:r 6uhJ~s!>it!~~~!1~;~~~~~~~:cf~~~1:~ from the transferrer a. written list of the names and addresses of the creditors of the transferrer and certltled by him, under oath, to be, to the best of his knowledge and bellef, a. full, accurate, and complete list of his creditors; and unless the transferee shall, at least five da.ya before such transfer, notify persona.Uy, or by registered mail, every creditor whose name and address are stated in said list of the proposed tranRfer. Service. Superior court writs are returnable not less than ten nor more than sixty days from the date of service; district court writs not less than six nor more than twenty days from the date of service. Supplementary Proceedings. Judgment creditor whose execution ha.<1 been returned nulla bona may apply to court rendering judg-  a~us~~~ :~~1~0:tl~ui~fg ~;i~t;~~~a~~~~o~~JSP~~ ab: entered ordering payment of judgment in whole or by installments. Citation shall be served six days before its return day. At bearing, the court shall examine debtor as to the circumstancesi bis income and ability to pay, and if finds able to pay, shall after al owing 11ufficlent for support or debtor and bis family, order payment in whole or by installments. If payments are not made, debtor liable for contempt. Surety Companies must have a paid-up ca.pita.I of $250.000. Foreign surPtY companies must appoint, by written power, the insurance commissioner of this State to be their true and lawful attorney in and for this State. Such companies. complying with the law or this State. may become sureties on any bond.  g~~w   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  BANKING AND COMMERCIAL LAWS-SOUTH CAROLINA  1944  Taxes. All corporations doing business within the State are taxed upon the corporate excess. Stock in all such corporations is exempt from taxation in the bands of resident stockholders. Every corporation, Joint stock company or a.'>Sociatlon incorporated in this State, which pays no tax to the l:ltate or a tax less than two and fifty-one hundredths on each $10,000 or fractional part thereof of its authorized capital, except insurance companies, religious, charitable aud literary corporations, shall pay an annual franchise tax to the State upon its authorized capital stock, which, when added to any tax paid by it in the same year to the State on it." corporate excess, shall equal two and fifty-one hundredths for each Sl0,000 or fractional part thereof of such authorized capital: Provided, however, that such tax shall not be assessed against any such corporation in the year in which said corporation ls incorporated. There is a uniform tax throughout the State on intangihle personal property of 40 cents on the hundred. The tax upon real estate a.ml tangiole personal property is fixed by each town or city. Individual tax payers are not obliged to make returns, but are without recourse if such returns are not made. If returns a1·e made tax payer is entitled to an appeal to the superior court in the event of over-taxation. Taxes are a lien on real e . ·tate and land may be sold for ta'<es after proper 11.S! essment and levy. Owner, his heirs or a~,;igns, may redeem ~ ithin one year by paying purchase money with 20 per centum in addition. By the Inheritance Tax Act of 1916. two methods of taxation are imposed, oue, a tax upon the net estate of the decedent, the other, a tax upon tbe respective shares inherited from the decedent. The net estate tax applies to net estates in excess of $5,000, and is at the rate of one-half of 1 per cent. The transfer tax is subject to the following exemptions and payable at the following rates. When property passes to the decedent's grandparent, parent, husband, wife. child. brother, sister, nephew, niece, wife or widow of son, husband or widower of daughter. legally adopted child, or one to whom the decea.;ed stood in the acknowledged relation of parent for ten years prior to this deatb, or to any lineal lawful decedent, at the rate of one-half of 1 per cent upon amounts in excess of $25,000 and not exceeding $50,000; 1 per cent upon amounts in exces.'i of 50,000 and not exceeding $250,000; 1 ½ per cent upon amounts in excess of $250,000 and not exceeding $500,000; 2 per cent upon amounts in excess of $500,000 and not exceeding $750,000; 2 ½ per cent upon amounts in excess of $750,000 and not exceeding SI,000,000; 3 per cent upon all amounts in excess of $1,000,000. When property passes to others than those above mentioned, the exemption is $1.000, and the rate 5 per cent up to $50,000, 6 per cent up to $250,000, 7 per cent up to $1,000,000, and 8 per cent 011 all amounts in excess of Sl,000,000. Only that part of the estates of non-residents consisting of real property or any interest therein is subject to either the estate or inheritance tax. Sworn inventories must be flied within thirty days after the apJmintment of executors or administrators. The net, estate tax is due upon receipt of notice by the executor or the amount fixed by the Board of 'fax Commissioners. Inheritance Tax is due within six months from the qualification of executors and administrators. Bot,b taxes are a lien upon the property of the estate until paid. Testimony. (See Evidence.) Trade Name. Any person carrying on bU.'-iness, except a corporation, or a pa1-tnership which contains the name of at least one member of the firm. shall file in thP town or city clerk's office a sworn statemeut, givi11g the as urned name and the name of the person or persons carrying on the busines.-;. Failure to comply makes the person or persons liable to one year's imprisonment, or to a fine not exceeding SfiOO. Trnnsfer of Corporation Stock shall be made agreeable to the  f:1~t rM~ ~~~;~~1i4~c;;w~ ;.tib~fro}~'stitkt~r:~:e~ °lc~hode 0  1  Trust Deeds are executed the same as other deeds. ·ware house Receipts must embody within its written or printed terms location of the warehouse where the goodc:; are stored, date of issue of the receipt, its consecutiYe number, a statement whether the goods received will be delivered to the bearer, a specified person or a specified person or bis order, the rate of storage charges, a del cription  g~£~e~!iro~b:iJ>:~!~f~s ~gJ~~~n~~~:~o~~e ~~~~f;rXcf i:h~ in this State. Wills. AH wills of lands, tenement!!, and hereditaments, and bequests of personal e tate .. shall be in writing and signed by the party devising and bequeathing the same, or by some person in his presence and by bis express direction; and shall be attested and subscribed in his presence by at least two witne. se5, or ebe shall be void and or no effect. No form of proof is required, but the subscribing witnesses should appear at probate of the will, if llving in the State. Non-residents may be executors or wills. Every person being upwards or  'r~;~;  ~}gr~~~ntl-i~i: ~~:~e o~aib~!~=:~e;,~~~~f~:fee!t~1eebr1a~f~~n and testament. Tbe wlll of a married woman shall not impair the right.c; of her husband upon her death, &'- tenant by the curtesy. Wills are recorded in the town clerk's office of the town where the..,testator lived.  SYNOPSIS OF  THE LAWS OF SOUTH CAROLINA RELATING TO  BANKING AND COMMERCIAL USAGES Revised by Messrs. RUTLEDGE, HYDE & MANN, Attorneys at Law, Charleston. (See Card in Attorneys' List.) Accounts and Claims. Accounts shall be itemized and contain a statement of all payments and credits. Full names of creditors and re'-idence should be sent. If partnership. firm name and full  s~!~~ ~~i;;ip~;at!tc 1&~~! ~lid~fdn;~:e~rfi~J1i)te~ ~:~t': ~;~t:f of tile firm or officer of the corporation before a notary public having 0  0  a seal, or a commissioner of deeds for South Carolina. Acknowledgments. All deeds for the conveyance of real estate must be signed and sealed by the e;rantor in the pr~ence of two witne.· es, and recorded within the county in which the land lies within ten days from the time of delivery. Before any deed or other instrument in writing can be recorded in the proper office within the State, the execution thereof shall fir. t be proved by the affidavit , in ,vriting, or a suhscribing witness to such instrument, taken before ome officer within the State competent to admini. ter an oath, or before a commissioner or commissioners appointed by cfedlmus, i. sued from the court of common pleas of the county in which the instrument is to be recorded; or, if taken without tbe limits or t,he State. and within the United States, before a commissioner of deeds of the tate, or before a clerk of a court of record, who shall certify the same under his official seal. or before a notary public. who shall affix thereto his official eal, or, if taken without the United St.ates. before a consul or vice-consul or consular agent of the United State." of America. All ~eriflcations of pleadings, affidavits. and proofs of claims made before notaries public in other states have the same force and effect as if sworn to before a com.missioner of deeds, provided notary shall use his official seal. Actions. Suits in the court of common pie~ are behrun by Issuing a summons and filing complaint. The complaint must be signed by the party or his attorney, and may or may not he verified. All distinctions between actions at law and suits in equity have been abolished. Administration of E. tates. Letters testimentary are granted after the probate of any last will and testament in due form of law. by and before the proper judge of probate. The filing of a bond by executors is not required, unle. s such executor be a non-resident. (Act of 1902.) In case any person die intestate. the jud~e of probate or the county where such person was last a resident and died shall grant administration of tbe good" . chattels. rights, credits of such person der-ea.c:ect to hi. or her relations in the order following: 1. 'l'o the husband or wife of the deceased. 2. 'The children or their legal representatives. 3. In defawt of them, then to the father or mother of the deceased. 4. To the brothers or sisters. :;. In default of them, to such of the next or kindred of the deceasi'd, at tbi> discretion of the judge of probate, as shall be entitled to a distributive share of the intestate estate. 6. Next to the largest creditor or such other person as the court shall appoint. Affldi vits. All affida\oits should be made before a commissioner of deeds for South Carolina, or before a notary public ha,'ing an official  ~~~is  0  't!i~.  tt~t;;fJi~ignti?~ ;t:na~a<f.~':iit~m;:,tr\t~e 1P~ffs~~-~~r United States, must be made before a commis! ioner of deeds for this tate, or before the clerk of a court or record. who must, use his official seal, or oefore a notary public. who must also use his official seal. If taken without the United tates it must be made before a consul, vice-<'onsul, or consular agent of the United States. Aliens. No alien person, either in his own right in severalty, or as tenant in common, in fee or for a term of yeaN, or as tr,;stee. cestci qui trust, or airent. hall own or control within the limits of this tate more than 500 acres of land, provided this section does not apply to land purchased under proceedings to foreclo e mortgage held by foreign corporations purchasing the same, but in uch case such foreign corporation shall not be entitled to hold said excess of land more than five years without sale of the same, unless the compt.rollergeneral shall certify that a ale during that tirni> would be detrimental to the interest of such corporation. in which ca e said land may be held for five years longer upon same conditions. This article does 11 ~g~a~f~: ~f~~:J ~:dih~wi!?c~ ;°c,~t~~ ~n~ thr~fc18;8~~J~a~':i to such persons or corporations. Alien widows are entitled to dower and descent can be traced through aliens. It seems as If alien heirs at law and devlsees can not own more than 500 acres of land in thiB State. Arbitration. Sworn arbitrators may be appointed to settle dlfl'erences, the parties giving bond to abide result, with right of appeal to circuit court. In 1r!;o!ing ~1~~~o~~!Iin~f :~~~~~. ~iyci~tr:~~t~o~:dd}i~~ ~ ball. A sli:minent nnd Insolvency. Insolvents may assign for benefit of creditors, without making preferenc&.. and creditor, may appoint a11:1>nt to act with assignee. Debtor can require creditors to release• All transfers within ninety days of assignment are void. Attacbm.ent will i ue in an action arising on contract for the recovery or money, or in an action for the wrongful conversion of personal property, or for the recovery of propt"rty, whether real or personal, and damag for the wrongful conversion and detention of personal property or in an action for injury done to eith r person or property, or against corporation created by or under the laws of anY other state, gov rnment or country, or again t a debtor who hall absconded or concealed himself, or whenever any per on or corporation is _about t? remove any of his or its property from the State, or has as 112:ned, d1 po~ed of, or ecreted. or is about to assign, di<.;pose of, or s crete llDY of his or its property, with intent to di>fraud credltol'II the creditor. at the time or issuing the summons, or at any time th~ after, may have the property of such debtor or corporation attached a a security for t~e satj faction of such judgment · the creditor maY recover. Proceedings m case or attachment are pre; cribed by the ~~~eor :~~'h~ent may issue to secured purchase money of propertY Rank. Sec. 2633, The prec;ident directors and company of authorized to make loans on any iJ?COrporated bank in this tate negotiable paper for any pe,·iod not exceeding twelve months; and al o to open an account and give a credit to any other bank or bankS in any of the sister states.  are  BANKING AND COMMERCIAL LAWS-SOUTH CAROLINA Aec. 2634. Such corporations shall have the power to Ve!'-t, from time to time. such part of their capital, not exceeding (with the amount of stock any such bank may hold) one-half of the amount originally subscribed to such bank, in the stock of this State or United States. Sec. 2635. Banks forfeit $500 a week, if bank notes issued and in circulation exceed for more than four successive week three times the amount of gold and silver coin anrl bullion held by the bank. Sec. 2636. The amount of such notes to be certified to comptroller-general each week, together with amount of such gold and silver coin and buJlion. Sec. 2637. Failure in these matters forfeits $100 a day to be recovered at the suit of the State. Sec. 263~. Felony for officer to receive deposits or trusts, after he shall become aware of insolvency. Parties injured may also recover civilly against such officer. Sec. 2639. Banks not compelled to pay notes or bills torn in half without production of both halves or bond of indemnity. Sec. 2640. Defines "bank notes." Sec. 2642. Banks must publish quarterly statements in newspapers, sworn to by three directors. Sec. 2661. The liability to a bank of any person other than a director or offlct>r, shall not exceed 10 per cent of the capital This debt not to include oills of exchange drawn against value and commercial and busint>Ss pa.per. Two-thirds of directors can increase 10· per cent limit. Sec. 2662. Directors and other officers shall only borrow on security to bP. approve<l by two-thirds of directors in wr,ting. Directors can not endorse for each other. Companies and firms of which directors are officers or members shall not borrow more than 10 per cent of capital. Office~ viola.ting subject to criminal prosf"'ut;on. How Incorporatt>d under General Laws. Under the code of 1912, Section 2634 there ls no distinction in the incorporation of' banks from the incorporation of any other corporation. All corporation'> (except railroad, railway, turnpike, and canal companies) a.re organized under a general law. (See Corporations.) Banks are required annually to set aside not less than one-tenth of the annual net earnings until the surplus is equal to twenty-five per cent of the capital stock, and it is made the duty of a bank examiner to enforce this law. State banks which have branches in more than one county in this State have recently been macie subject to the same law which applies to textile manufacturers, fertilizer companies, etc .. as to the returns upon their property and making them subject to the board of equalization of the State. Any bank officer who issuPS to the comptroller genera.I or any of bis clerks or agents a false certificate of the amount of cash on deposit to the crerlit of any public officer for use in settlement with such public officer shall be guilty of a misdemeanor. Bank Fxnmlner. Code 1912, ·sec. 2643. The governor of the State shall appoint a competent person to examine, from time to time as hereinaftt>r provided into the affairs and the condition of all banks and banking institutions conducted by corporations or persons in this State. That in the selection of said bank examiner the governor may advise with the executive committee of the South Carolina Bankers' Association. Sec. 2644. His duties shall be to examine fully and carefully and report the condition of all banks in the State. Sec. 2645. Fixes compensation and terms of office. Sec. 2646. Fixes time for examination, and mode of payment of salary and expresses by the banks. Sec. 2647. Dank Examiner shall examint3 all Branch banks at least once a year. All ucb banks shall indicate on their stationery, checks, notes, advertisements, etc , the fa.ct that they ar branch banks and the name and place of business ~f t~e J?arr~t 1:>ank. Sec. 264~. Upon discovery that such mst1tut10!1 1s msolvent <;>r fraudulently or dishonestly conducted. the exammer may obtam order of court and take charge of an<;t ad_rninister asse~s_. hofJ;rs~649. To make special exammat1on upon pet1t1on of stockSec. 2650. Examiner to be expert accountant and practical bank officer. Sec. 26-51 and 2652. tatements to be published when called for by examiner a.nd at least once in each quarter. . Criminal code Sec. 209. Provides punishment for mterference With examiner. . Sec. 26,,3. Nothing contained in the Act shall apply to any national b·1nk Sec. 26,i-!. That all Acts and parts of Acts relating to the subject or bank ~xaminer heretofore enacted in this tate are hereby repealed. Bankini.:. AJJ'y person who draws upon a _bank. :pe_r'on. firm or corporation any check. draft or order, not baVJng- sufficient funds on depo it with such person, to meet the same, an<;t shall ther_eby obtain tnoney or any other thing or value, shall be _guilty of a 11?,ISdemeanor a~d _subject to fine and imprisonment. t~1rty ~'lays bcmg allo,".ed :~~~ which to make good to the drawee, m which case prosecut10n Bills and Notes. (See otes and Bills of Excnange.) Ilills ot Lading. The usual principles of mercantile law are applicable to bills of lading in th.is State. • . <h:attel :\ ortirnces. The law in regard to chattel mortgag_es provides that in case the condition is broken the mortgagee appomts. an agent with authority to foreclose. who immediately takes po·. s ·101) of the property and advertises the same for sal~ at a. gn·on date. M:ortgagor has right to redeem property at any time before sa.Je by PU.Ying deht and all costs. Chattel mortga~es m~ist !Je r cor~ed Within ten days in order to take effect from the day ot the1r_execut1{?n, b~t if recorded after such time they take effect as to third parties Without notice only from the date of the record. Cl; im and JlellverY. The plaintiff in a.~ actio~ t~ recover the Poss ssion of personal ·property may at the time of 1~sumg t!'le umtnons or at any time before ai1swer claim the \mmed1ato de_ltvery of ~Uch propPrty by making the nee ssary a1Ildav1t and exocutmg bo?d Ul double tile value of the property, and defendant may require redelivery of property by executing a like bond. Coll te als. Collateral loans are allowed in this State, and collateral not · are commonly used. ontrncts. Every agreement whereby the Yendor or _bailor reserves any interert in per on al. pi:operty, must be reco~ded m. the same manner as mortgagoo. Thlli 1s not applicable to Itvery- table keeper:; and inn keepers. . Co, ve:vnt ces. All conveyance of real estate 1_n~t b~ surned and s aled by· the grantor in the fre.c;ence of t,\:o sub ·cr~b.111:,1; \ ,1tu ·-·~-- ~1:_d recorded within ten ctavs. f recorded alt r JO du)s th _n the) take effect as to third partic.~ only from tho date of recqrd. It th~ grantor be married his wife must renounce her dower Ill a pecuhar form Prescribed by :;tatute. ('orpor; tions. Two or more oersons desiring to form.themselves Into a corporation for any purpose whatsoeyer exc •pt railroad, railway, tramway turnpike and canal corpo~at1ons, and except also for municipal pu.rpo es or one or more comnmed or any character ,vhatsoever, may me w'ith the secretary qf state a. written decl!ll'ation signed by themselves, setting forth: I! U"St, the name and r ·1dences   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1945  of the petitioners; second, name of the proposed corporation; third, place at which it proposes to have its principal place of business; fourth, the genera.I nature or the business which it proposes to do; fifth, the amount of capital stock; sixth, tbe number of shares into which it is to be divided, stating the par value of each share; seventh, any other matter which it may be desirable to set forth. Upon the fl.ling of the petition as above, and the payment of a fee of three dollars for recording of said petition, the secretary of state shall issue to the parties a commission constituting them a board of corporators and giving them authority to open books of subscription after public 0  i~!:~ib?~%~  ~~file5g ;e~xg::f~r tt8en p~~~~selci~Wff~t~~ cg~ Upon th completion of the organization and payment to the treasurer of the corporation of at least 20 per cent of the aggregate a.mount of the capital subscribed, the board of corpora.tors or a majority of them i:;hall, over their signatures. certify to the secretary of state that the requirements of this act have been complied witti. The board of corporators on making their return shall pay to the secretary of state a charter fee: "When the said Charter is Lc;sued or renewed, the sum of one mill upon each dollar of the capital stock authorized up to and including $100,000; the sum of one-half of a mill upon each dollar of the capital stock exceeding $100,000 and up to and including $1,000,000; and the sum of one-fourth or a mill upon each dollar of the capital stock exceeding $1,000,000; for recording each declaration, petition or return precedent to the grantin~ of any commission of corporators, charter, amendment of charter or mcrea.se, or decrease of capital stock, or renewal of charter, required by law to be recorded in said office, the sum of 2. 50 for each paper so recorded.; for filing each declaration or other pa.per, by any foreign corporation. S5.00; for filing each charter granted in another State and by-laws adopted thereunder, or either required by law to be filed, $5.00; Provided, That nothing herein contained shall be construed to apply to municipal charters: Provided, further that nothing herein contained shall be construed to increase the fees for churches, lodges, colleges, schools or other eleemosynary organizations." No fee less than $5. 00 in addition to the recortling fee. Upon the filing or return and the receipt of tho recording fee of three dollars and the charter fee hereinbefore specified the secretary of state shall issue to the board of corporators a certificate to be known as the charter, which must be recorded in the office of the register of mesne conveyance of each county where such corporation shall have a business office. Provided, that in cases when by the terms of the declaration the capital stock is to be paid in in installments, the charter may be issued when  ~~ fJ~ i~~\i~~~:r~~p~\!a~~i11e~"-;~~n ~!~/~ i~~ !~f{i~ffl~  in corporations organized under the constitution of 1895 and the code  of 1912 except in the case of banking corporations which has already been stated. The legislature is prohibited from passing any special charter for banking corporations, and all corporations must be organized under this act. except those enumerated above. Ac; to dissolution of corporations, see Code 1912, 281~ to 2821. Corporations. Unlawful discrimination for the purpose of destroying the business of any competitor in any locality by selling at ii lower rate in one section than another is prohibited, and any person thus discriminating is subject to a penalty of not less than $500 or more than $5,000. In case of a corporation breaching this a.ct, it become~ the duty of the secretary of the state to immediately revoke the permit of the corporation to do businesa in this State. Corporations become subject to a. penalty of not less tha.n 500 if they pay any dividends unless actually earned. Any ottlcer of a. corporation who wilfully uses the name of such corporation or bis connection with it as officer thereof to obtain any credit or anything of value without authority from the corporation, shall be punished by imprisonment in the state penitentiary for not more than 1,en years. The p1·esident or other officer who has the custody of the funds of any domestic c01·pora.tion in this state shall annually make a report to each and every stockholder of such corporation who asks for it and a genera.I itemized statement showing the actual assets and liabilities of the corporation and is guilty of a misdemeanor if he fails to comply with 1,he request. The act does not apply to railroads, banking or building and loan corporations. Co ts. Costs are allowed and follow tbe result of the action and are entered up in the judgment against the losing party. Courts. Terms and Jurisdiction. Cour~s of common pleas are held three times a year in each county. and have jurisdiction in all civil cases not cognizable by the magistrates. There is a probate court in ea.ch county, holding monthly essions and possessing the usual powers. Magistrate's jurisdiction, $100. Actions to be tried in the county where land lies or in which the defendant resides. Creditors' Bills. (See Suits.) Days ot Grace. Days of grace are not allowed in this State on any paper. Deeds of Trust. Deeds of trust are sometimes used within this State, but the usual form is by way of mortgage, whether the same concerns either real or personal property, and a deed of trust for the purpose or securing a creditor would be construed by the courts to be a mortgage. Depositions. Testimony of any witness may be taken in any civil action depending in the court of common pleas for any county in this tate, by deposition de bene esse--wben the witness lives without the county in which such cause is to be tried. or more than 100 miles from the place of trial, or is bound on a voyag-e to sea, or is about to go out of the State or county in which the cause is to be tried or when be is aged or infirm. The deposition may be ta.ken before any c-ircuit judge of this State, or the clerk of any of the drcuit courts, or any notary public, chancellor, judge or justice of the supreme court, or chief magistrate or a city in any of the United States, such notaries, etc., not to be of counsel, nor interested in the cause. Notice not le ·s than ten days must be given to the opposite party, stating the time, place and name of witness. Descent anti Di•tributlon of Intestate' Property. P1•operty of per on dying iutesta.te shall be distributed as follows: Leaving a widow and children, one-third to the widow, remainder to the children; when he leaves no child, but a widow, father or mother. brother or sister of the whole blood. the widow is entitled to one moiety, and the other moiety goes to father, mother, brother or si. ter, children of a deceaserl brother or sio;;ter to represent parents; to take the share they would have been entitled to if living. When the intestate leaves no child or other lineal descendant, father. mother. brother or sister of the whole blood, but leaves a widow and brothers and sisters of the half blood and a child or a brother or sister of the whole blood, the widow takes one moiety and the other moiet,y is equally divided between the brothers a.nct sisters of the half blood and the children of the urothers and sisters of the whole blood. If inte·tate leaves no chilli or lineal descendant, father, brother, mother or sister, the widow takes one moiety and the lineal ancestor the ot-her. If intestate leaves no child or lineal descendants, father, mother, brother or lineal anc-estor, the widow takes two-thirds of the estate and remainder goes to next of kin. De cent and Di tributlon. Illegitimate children shall be heirs at law of the mother, so far a.sher property is concerned. The mother   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1946  BANKING AND COMMERCIAL LAWS-SOUTH CAROLINA  shall inherit from such child or children as if the child had been legitimate. In case or wrongful death of such child, or mother of such child, by negl111:ent act of another, such child or such mother shall have the same rights and remedies in regard to such wrongful death or negligent act as though the child had been born in lawful wedlock. Dower. Widow is entitled to one-third for life, of the lands which her deceased husband was seized in fee at any time du.ring their marrlaA~wer may be renounced by the wife, if she be without this State, by dedimus or before any minister, ambassador, consul general, consul, vice-consul, deputy consul, consular agent, commercial agent of the United States or any other officer appointed by the United States in foreign countries with the power to -.dminister oaths and having a.n official seal, or a clerk of a court of rec rd or before a notary public, who must each append to the certificate the official seal used by him. Evidence. (See Depositions.) Executions may issue five days after the adjournment of each court, and are returnable within sixty days. Stay is only granted on appeal given. Executions may issue at any time within ten years from date of judgment. The clerk shall not, without special leave of the court, enter any judgment until the expiration of five days after the court has adjourned for the term. Fidelity and Surety Bonds. Fidelity and surety companies are accepted as surety on all bonds of every description in this St.ate, Including stipulations and other bonds required in judicial proceedings, provided such foreign surety companies comply with the law governing foreign insurance companies. Fire Insurance Con1panies are required in case of total loss to pay the full a.mount of msurance provided for in the policy, and a proportionate amount in ca. e of partial loss. No statement in the application shall be held to prevent a recovery before a jury in case of partial or total loss, and after the expiration of sixty days the insurer is estopped to deny the truth of the statement in the application except for fraud. ForelJn} Building and Loan As ociatlons. Mortgages on lands In this state are subject to usury laws of this state. o greater rate than 8 per cent can be charged. Foreign Corporations. All foreign corporations within sixty days from acquiring property or commencing bu iness in this tate, are required to tlle in the office of the secretary of state a written declaration designating ome place within the State as principal place of busine . at which all legal papers can be served, and al5o some authorized agent within the State upon whom process can be served to bind the corporation. A number of other requirements exist concerning the fl.ling with the secretary of state of copies of the charter and by-laws and other matters of detail. The act is very mandatory in its provisions, and a fine of $500 ,.is imposed for non-compliance. Foreign Insurance Companies, Service on. Every foreign Insurance company shall, before being licensed, appoint in writing the In urance ommissioner and his succe.· ors in office to be its true and lawful attorney upon whom all legal process in any action or proceeding against it shall be served, and in such wiiting shall agree that any lawful process against it which is served upon such attorney shall be of the same legal force and validity as if served upon the company, and that the authority shall continue in force so long as any liability remains outstanding in the tate. Copies of . uch appointment, certified by the Insurance ommissioner,. hall be deemed sufficient evidence thereof, and shall be admitted in evidence with the ame force and effect as'the original thereof might be admitted. Service shall only be made upon such attorney, must be in duplicate and shall be deemed sufficient service upon such company. \Vhen legal process aga.mst such company is served upon said Insurance Commissioner, he shall forth"ith forward by registered mail one of the duplicate copies prepaid directed to the Company at its home office. Foreign Judginents. Foreign judgments may be sued on in this State and do not constitute a lien till judgment i recovered in this jurisdiction. Fraud. The statute of frauds and perjuries, commonly known as "the Statute of Eliza.beth," i of force in this State. Garnishment. No garnishment law in this State. (See Attachment.) Guaranty Companies. (See Fidelity and Surety Bonds.) Bolldays. ational thanksgiving days and all general election days, the 1st day of January. the 19th of January, the 22d of Fehruary. 4th of July, 25th of December, first :.\Ionda.y in eptember, the 10th of May, and the 3d day of June of each year shall be legal holidays. Provided that each first Monday in any month shall be a legal day for judicial or heriff's ale · or the transaction of any other legal busine . In Charle ton and Richland County every Saturday from 12 noon to 12 midnight is a legal ha.If-holiday so far as regards commercial pa.per. Thursday in fair week in county in which State fair is held. ~ ~o date fixed: usually In -ovember in Richland County. Homestead. Real property of the value of $1,000 and personal property of the value of S500 shall be exempt from levy and sale. Husband and Wife. (See :\Iarried Women.) Injunctions. Writs of injunction may i ue according to the principles and course of the common law not inconsistent with the constitution, subject on motion of either party to re-examination, afHrmatlon, or reversal and final adjudication by the proper jurisdiction. Insolv~ncy. (See Assignments and Insolvency.) Insurance Companies. Recent act enacts that all suits brought again. t any and all Ore, life or other insurance companies doing bm,iness in this State may be brought in the county where the loss occurred; providing further for a change of venue on certain conditions. It is unlawful for any fire insurance company to enter into any compact with other fire insurance companies or associations fot the purpose of governing or controlling rates for Ore insurance charged on any property in the State. The law requires a sworn statement by each company to be flied with the Insurance Commissioner of the State, that the company has not within twelve months previous entered into any trust combination, etc., for preventing competition and insurance rates, and pro\·ides a. penalty in ca.so of a false statement or a One of not les. than . 100 or more than $1,000 and confinement in the penitentiary for one f~\g!n ~n~hi_~~~r~;i~nmg~et~:a;1~~\v~~nfinement in jail for not Intere!'lt. No greater rate of interest than 7 per cent per annum can be charged upon any contract arising in the State, except upon written contracts. wherein by express agreement, a rate of interest not exceeding 8 per cent may be charged. Any person or corporation receiving a great-er rate of interest than per cent shall not only forfeit the intere. t, but also double the um ·o usti.riom;ly received, to be collected by a oparate action or allowed as a counter-claim to any action brought to recover the principal. By act of 1898 the borrower, his heirs, devises, legatees. per.onal repre entative, or any creditor can plead the benefit of th! ·tatute. Investment Companies. Investment Companie.-., before selling or offering for sale any securities of its own issue. shall file in the  office of the Insurance Commissioner a detailed plan of how it proposes to transact its busine ·, a copy of all contracts, etc., which it- proposes  t~:n:~~  iJ!~rti~~~:n~~nt~~b~~tii~~r irA~moetii~ear;.o~~t ~~e Pt~~~ account of its financial condition. If it is a foreign investment Company, it shall also fl.le a copy of the laws under which it Is incorporated and of its Charter and of its Constitution and Bylaws, and shall pay a. filing fee of one-tenth of one per cent upon the face value of the securities for the sale of which application is made. The Insurance Commissioner shall be made the party upon whom process shall be served. The Commissioner is authorized to investigate and upon the information to issue a license, and it is unlawful to adverti e or offer securities without the Commi"Ssioner's certificate; and on or before the 1st day of April in each year a statement must be filed with the Commissioner showing the condition at the close of business on the preceding December 31st. Jud~n1ent are a lien on lands within the county for ten years from the time of entry and may be renewed by proce s before expiration of ten years for ten year, more, which lien may be extended to other countie by fl.ling transcript. Jurisdictions. (See Courts.) License. Licenses are regulated by the municipal authorities. Liens. Special lien5 are created by statute. There is a landlord's lien for his rent, the lien for agricultural advances, the mechanic's lien on buildings, the special statutory Men given both to the State, county, and certain of the cities for taxes. All employe · in factories, mines, mills, distilleries, and all other manufacturing establishments, have a lien by statute upon all the output of such manufacturing establishments to the extent of their salary or wages, such lien to take precedence over all other liens except for taxes. Landlord's lien for rent extended to "bi a ·igns." Limitations of Suit . Upon contracts not under seal, sealed notes or personal bonds. six years; judgments or decrees of any court, and upon sealed instruments texcept as above). twenty year·; to recover real property, ten years; actions for libel, lander, assault, battery, or false imprt onment, and actions upon a ·tatute for a. forfeiture or penalty to the State, two year·. Married ,vomen. Article 17, section 9, of the constitution provides the real and personal property of a woman held at the time of her marriage, or tbat which she may thereafter acquire. whether by gift, grant, inheritance. d vise or otherwise, . hall be her separate propeny, and she shall have the right· incident to the . a.me to which an unmarried woman or a man is entitled. he hall have the power to contract and be contracted with in the same manner as if she were unmarried. :\lerchants. It shall be unla.wrful for any merchant or corporation engaged in buying and selling merchandL'>e. while he or it is indebted to sell the entire stock of merchandise in bulk, or the major portion thereof otherwise than in tho ordinary course of trade without his making a full and complete inventory, the ya.Jue therein being set at the ruling wholesale prices thereof. and making also a full schedule of all persons. etc. to whom indebted, giving the postoffice address of each creditor and the amount owing. This to he done under oath. eller to deliver said inventory and cbedule to the proposed purchaser and they each to preserve . uch papers for six months aft.er uch sale and purchase, open to inspection of creditors. Ten days before conclusion of sale. seller and purchaser shall give written or printed notice of . uch . ale and purchase to creditors named in said schedule, Such notice shall state aggregate value of merchandise, consideration and the time of making payment. In failing to carry out these provisions such . ale shall prima. facie be presumed to be fraudulent and void as again. t creditors of the eller, and the merchandise wherever found hall be liable to i:;ucb creditors, and if any of the merchandise be withdrawn by a.id purcha ·er. the purchaser shall be liahle to said creditors personally to the extent of the value of the merchandise withdrawn. otice sent by registered mail shall bo conclusively presumed notice to the cred· itors to whom named. Mines and Mining. :\line. and mining of phosphate rock is regulated by the tate by which a royalty is paid to the State on every ton so mined, to be paid by partie licensed to mine. :\fortgagcs. 1l mortgages, whether of real estate or chattels, must be recorded within ton day,. Mortgages of realty are foreclosed by ordinary suit of complaint and summons, and chattel mortg,ages are enforced by mortga~eee taking posse· ion of the goods and selling t,hem. Different books must be provided by clerks and registers of mesne conveyances of the several counties, for the rerording of chattel mortgages and mortgages on real e tate. Renunciation of dower by a married minor valid. Chattel mortgages after breach of condition and before sale may be di charged by payment or tender of payment. Lands can not be old under power contained in mortgage unless the mortgagor agree in writing on the face of the mortgage to the amount due thereupon within twelye months. Negotiable In. trument L1tw. The .i.·egotiable Instruments Law as of force in most of the tates was made of force in South Carolina, in April, 191-1. Notaries. otaries are appointed by the governor and their term of olllco continues during the pleasure of the governor. Notes and Bill or Exchange. Bill of exchange and promissory notes, drawn in the usual form, are recognized as commercial paper. 'fbere is no law requirinK the payment of commercial papor at a bank or other fixed place in the. tate. To protest is needed on an inland blll. On all bills of exchange drawn on per ·ons rei ident within the United States, and without this State. and returned protested, the damage on such prote"ted bill .-hall be 10 per cent on the ·um drawn for. On all bills drawn on persons resident in any other part of Tortb America or in the "·est India I. lands. and protest~d. the damages shall be 12½ per cent. On all hills drawn on person. in any other part of the world, and prote. t ed. the damage :ball be 15 per cent. Paper fallin~ due on unday or legal holiday to be pal<! the next day thereafter. Instruments falling due on 'aturday are to be pre.-ented for payment on tho next ucceeding busin s day e cept that instrument · payable on d mand may at the op~ion of the holder be presented for payment before 12 o'clock noon on aturday when that entire day is not a holiday. (Limited to Charle·ton and Rieb· land Count,y.) (See Holidays.) Partnership, Limited and , peclal. Partnership are formed; general partners only a1·e authorized to tran act bush1 arnl sign for an<l bind the partner:-hip. • pec1al partners are not liable for the deh s of the partner hip b yond the fund so contribut <I to the capital. Power. of ttorne.r. Powers of attorney to h efl'ecUYe in thiB taLe, if ex ·uted within the .'tate, mu.s't be witn sod by at lea: tone witne s, and a 'knowledged before . ome officer qualified to administer an oath. Ir without the tato. they mu ·t be witn ed by a com· mis.~ioner of deeds of tJ1I ."'ta.te, or before a notary puhli • hM·ing a . ea.I of office who ·e official haracter i certifl d to hy the clerk of a court of record , or before a cl rk of a court of record with ·ea.I attached, the fact that ho in the cl rk of the court of r cord appearing on tb8 certificate. 0  BANKING AND COMMERCIAL LAWS-SOUTH DA.l{OTA Probate Law. (See Wills.) Protest. (See Notes and Bills.) Recording Laws. (See Acknowledgments.) Registers of Mesne Conveyance are required to keep a fl.le book in which shall be flied all conveyances, mortgages, liens, contracts and papers relating to real and personal property, by entering therein the names of the granter and grantee, mortgagee and mortgagee, obligor and obllgee, date of filing, and nature of the instrument, immediately upon its lodgment for record; and such filing shall be notice to all persons sufficient to put them upon inquiry of the purport of the instrument so filed and the property affected thereby (Counties of Clarendon, Colleton and Sumter excepted). A justice of the peace "who must append to the certificate his officia1 seal" can now take probates without the limits of the State as well as within. Contracts for conditional sales of personalty title being reserved in the vendor must. in order to protect as against subsequent creditors both lien creditors or simple contract creditors, be put upon record in the same manner as mortgages. Act not applying to livery stable people or persons renting out or hiring property for temporary use, or any personal property deposited as a pledge or collateral to a loan. Assignments of mortgages must be recorded to obtain the benefit • of the act. Records. The county and state officers are required to keep of copies ted Atte offices. different their with connection in records such records are good evidence in the courts of this tate. Exemplifications of records of other states also allowed if allowed in the states from which copies are exemplified. Redemption. (See Chattel Mortgages.) Replevin. (See Claim and Delivery.) Revision. The laws of this State are revised every ten years under the supervision of a code commissioner elected by the legislature. Service. Service of process may be made by the sheriff or other disinterested person. A non-resident is served by publication. Stockholders' Liabllity. Article 9, section 18, of State constitution provides that stockholders in banks or banking institutions shall be liahle to depositors therein in a sum equal in amount to their stock over and above the face value of the same. Under A A of 22d of February, 1005, the stockholders of all insolvent banks and banking institutions, whether heretofore or hereafter incorporated, under act of assembly of this State. either general or special, shall be individually liable to the creditors thereof, other than depositors. only to the extent of the amount remaining due to the corporation upon the stock owned by them; provided, that stockholders in all such banks and banking institutions shall be liable to depositors therein in a sum equal in amount to their stock over and above the face value of the same. Suits. All distinctions between actions at law and uits in equity have been abolished, and the code of procedw·e is almo t identical with that of New York. Actions relating to real property or for the recovery of specific personal property are brought within the county where the land or property is situated. In all other cases in the county of the defendant's residence; and, if he resides out of the State, then in any county. Taxes for state purpo es are a lien from January 1st of each year, and payable by 31 t of December of the following year. Immediately upon the expiration of the time allowed by law for the payment of taxes in any year, the county treasurer of each county shall issue in the name of the State an execution against each defaulting taxpayer in his county, under which sufficient personal or real property ·hall be sold to pay said taxes, the sheriffs deed under such sale shall be prlma facie evidence of good title in the purchru er. • 'o action for the recovery of land so sold shall be maintained unless brought within two years from date of said sale. All lands not sold are forfeited to the State. The tax is in all cases a first lien as again. t. the estates of all deceased per ons: of bankrupts and insolvent ·: of all persons making assignments for the benefit of creditors; as against all trust estates_; as against all personalty bad on chattel mortg~ge or pledge; as agamst all personal property held in fraud of creditor : and as against all stocks in trade. etc., of merchants and manufacturers. Property must be listed for taxation between January 1st and February 20th of each year. Testimony. (See Depositions.) Tra11sfer of Corporation Stock. Corporation tock is transferred on the books of the company by the owner of the stock or his duly appointed attorney. Tru t Companies. Trusts and combinations made with a view to lessen or which tend to lessen full and free competition in the importation sale or manufacture of articles, or that may le en or affect in any manner full and free competiti~n in any tarjtr rate·. tolls, premiums, or prices, or seek to control th~~ m any way, Ill any branch of trade. business, or commerce, are prohibited under penalties. Warehouse Receipts. ·warehouse receipts are negotiable unless otherwise specified on their face. Wms. All wills of real and personal property must be ~igned by the testator or some one for bim in his pre, ence and by l11s express request, and be attested and subscribed i~ the J?re. ence of the tes!ator and of each other by three or more credible w1tn · es. Exen:iphflcations of wills regularly proved in foreign courts may be admitted to probate on certificate of judge of such court. Typewriting is authorized by the statute.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1947  SYNOPSIS OF  THE LAWS OF SOUTH DAKOTA RELATI G TO  BANKING AND COMMERCIAL USAGES Revised by MEssRs. BAILEY & VooRHEES, Attorneys at Law, Sioux Falls. (See Card in Attorneys' List.) Acknowledgments. The official should certify that before him "personally appeared . . . . . . . . . . . known to me to be the person who is de cribed in and who executed the within instrument, and acknowledged to me that be executed the same;" and in the case of a corporation, that before me personally appeared ............ , known to me to be the .................... of the corporat.ion that is described in and that executed the within instrument, and acknowledged to me that such corporation executed the same. Actions. South Dakota is a code state and all distinctions between actions at law and suits in equity, as to the forms of such actions and suits, are abolished. A non-resident plaintiff must give security for costs upon order of the court made upon application of the defendant. otice Administration of Estates is bad in the county court. for proving claims must be given by publication for four weeks. In all estates under 5,000 in value claims must be pre ented within four months from the first publication of the notice: in estates exceeding $5,000 in value, within six months from such publication. Affidavits. An affidavit may be made in and out or this State before anyone authorized to administer an oath, and must be authenticated in the same way. Allens. Any person, whether citizen or alien, may take, hold, and dispm1e of property, real or personal, within this State. AJ;bitratlon. There is no provision in the code for arbitration. An agreement to submit a controversy to arbitration can not be specifically enforced. Arrest. In certain classes of civil actions chiefly those in which fraud enters, the defendant may be arrested. This remedy is seldom used and the procedure is technical. A bond must be given by the plaintiff before the arrest can be made. Assignments and In olvency. A law providing for assignments for the benefit of creditors is in force. The assignee acts under the direction of the circuit court. The operation of the law has been practically suspended by the National Bankruptcy Act. Attachment process issues at the time of issuing the summons or at any time afterward in all actions against a foreign corporation which has not complied with the laws of this State relative to the appointment of agents upon whom service of process may be made (see Corporations, Foreign, post). or non-resident defendant, or when defendant bas absconded or concealed himself, or whenever any person or corporation is about to remove any of his or its property from this State, or has assigned, disposed of, or secreted any of his or its property, or is about to do so with intent to defraud cr·editors. Plaintiff must made affidavit and furnish bond in not less than $250, and at least the amount claimed in circuit courts, and at least $50 and not exceeding $300 in justice's courts. Real and personal property, debts, moneys, credits. and bank-notes may be attached or levied on under execution or attachment. Bank . Banking associations may be formed to do general banking except issuing bills as money. Capital required is graded: Towns of 1,500 or less. at least $15,000; towns of over 1,500 and not more than 2,000, at least $20,000; towns of over 2,500 and not less than 5,000, at leac:t $25,000; and in towns of over 5,000, at least $50,000. Shares of stock must be $100 each. Each director must own at least five share of stock. Each shareholder is individually responsible, equally and ratably and not one for the other. for the benefit or creditors of the bank to the amount of their stock, at par value thereof, in addition to the amount invested in said stock. Collaterals. There are no statutory provisions concerning them. The common law governs. Conditional Sales. The uniform Conditional Sales Law has been in force since July 1, 1919. Consignments. There are no penal provisions regarding consignments. Conveyances. Conveyances of real estate or mortgages thereof must be by an instrument in writing, subscribed by the party dispo ing of the same. or by his agent having written aut,hority. To entitle such conveyance to be recorded, it must be acknowledged as provided by law. (See Acknowledgments.) The seal of a grantor or mortgagor is not required, and its ab ence does not invalidate or in any manner impair a conveyance. Every conveyance of real estate other than a lease for a term not, exceeding one year, is void as against any subsequent purchaser or encumbrancer, including an a signoe of a mortgage or lea-;e, in good faith and for a valuable consideration 1 whose conveyance is first duly recorded. 'l'he word "conveyance' embraces every instrument in writing by which any e, tate or interest in real property i. mortgaged, aliened. or encumbered, or by which the title to any real property may be affected. except wills, executory contracts of sale and powers of attorney. An instrument containing a power to convey, or to execute instruments affecting real property can not be revoked except by an instrument in writing. properly acknowledged and recorded in the same office in which the instrument containing the power was recorded. Real estate may be conveyed or mortgaged by the owner thereof alone, unle · the same is a homestead, when both the husband and wife must join in the conveyance or encumbrance. A conveyance need not be witnes ed. The only instruments which need be witnessed in this State are chattel mortgag s (which, however, in ·tead of being witnessed may be acknowledged) :;atisfaction.~ thereof. and wills, which must J:i.aye two witnes ·o. . (.,)uitclaim deeds, uni .·s otherwbe stated therein have sub. tantially the same effect as special warranty deed.. D eds executed sub.;equently to June 30, 1911, to be entitled to record, must contain ' the postoffice address of the grantee.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1948  BANKING AND COMMERCIAL LAWS-SOUTH DAKOTA  Corporations. Corporations are formed under general laws, and can be formed by the association of three or more persons for the following purposes: Mining, manufacturing, and other industrial pursuits, and for any other lawful business; the construction or operation of railroads, wagon roads, irrigating aitches; for colleges, seminaries, churches, libraries, benevolent, charitable, and scientific a.ssociations; for conducting the business of in ·urance, banks of discount and deposit, and for loan, trust, and guarantee associations. The articles of incor~oration must show the name of the corporation, the purpose for which it is formed, the place where its principal business is to be transacted, the term for which it is to exist, the number of its directors, and the names and residence of such of them who are to serve until the election of such officers; the amount of its capital stock and the number of shares into which it is divided. The articles of incorporation of any railroad or wagon road must also state the kind of road intended to be constructed, the P,lace from and to which it is intended to be run, the counties through hich it is intended to be run, and the estimated length of the road. The articles must be subscribed by three or more persons, one-third of whom must be residents of the State and acknowledged before some competent officer. The articles must be filed with the secretary of state and can be amended at any regular annual meeting of the stockholders, or at a special meeting called for that purpose. Each stockholder is Individually and personally liable for the debts of the corporation· to the extent of the amount that is unpaid upon the stock that is held by him. The Uniform tock Transfer Act has been in force since July 1, 1921. Corporations, Foreign. No foreign corporation, unless it be 1  1  i~  ~1::  geit~d ti~.f!li~~~~ ffde~~~f;~l~ ~~r~g:~~n°: ~g~ei: ~t;af security, shall transact any business within this State (except such as comes within the commerce clause of the Federal Constitution, not affecting the police powers of the State), or acquire, hold and dispose of property, real, personal or mixed, within this State, or sue or maintain any action at law or otherwise (except such as are based on transactions in interstate commerce) in any of the courts of this State, until such corporation shall have filed in the office or the secretary of state a duly authenticated copy of its charter or articles of incorporation, and shall have appointed the Secretary of State as its agent for the service or process in any action in this State in which said corporation may be a party. Said appointment must be flied in the office of the Secretary of State. A fee of 1. 00 for every $1,000 of the capital stock of the corporation exceeding $25,000, employed or to be employed in the State is also to be paid to the Secretary of State. An annual statement as of December 31st is to be filed prior to March 1st next. Courts. Terms and Jurisdiction. Circuit courts, except in the cases hereinafter stated in which their jurisdjction is concurrent with 0 cy~t1u~~~i~rc,~c~1t'1~v~ h!rict ~h~~i~1tfeb~~c~~!1 Is concerned. C"ourts sit twice a year in nearly all the counties. County courts bold two terms a year and are always open for business. They have exclusive probate jurisdiction, and in counties of a population of 10,000 civil jurisdiction concurrent with the circuit courts to Sl,000; they have no civil jurisdiction in counties of a le s population. Justice's jurisdiction, $100. Circuit courts also ha.Ye concurrent jurisdiction with justices' courts for sums less than $100. Municipal Courts, which exist in a few cit,ies, have concurrent jurisdiction with the Circuit C"ourt throughout the county in which the city is located, in civil cases In which the amount involved is five hundred dollars· or less. Depositions may be taken when witness does not reside in the county where the action is brought, or is ab ent therefrom: or when from age, Infirmity, or imprisonment witness is unable to att,end court, either party may commence taking at any time after service, and may be taken in the State before judge or clerk of tbe supreme court, or circuit court; or before a justice of the peace, notary public, United States, district court commissioner, or any person empowered by special commission. May be taken out of the State by a judge, justice, or chancellor, or clerk of any court of record, justice of the 0 g;a1iie n~i;~~g~bf~\~!y~~p~if~~s~ii, !n~ ~~~~o~~ih~~&~!ftg~ the special commis. ion from any court of this tate. The officer before whom taken must not be interested, or relative, or attorney of either party. Are taken upon notice, signed by attorney, and the adverse party must be given sufficient time to travel to the place of taking by the usual route, and one day for preparation, exclusive of Sundays and day of senice, and may he adjourned from day to day. l\lust, be written by the officer or in his presence by the witness, or some disilltere. ted person, and sub cribed to by tbe witne. s. When t,aken mu.-;t be sealed up, indoI"-ed with title of the caw e, name of officer taking the same, and by him addres.~ed and transmitted to the clerk of tbe court, where act;on is pending; must be filed at least one day before trial. Descent and Dhitrlbution of Property. The property both real and personal, of one who dies without di po ing of it by will, passes to the heirs of the intestate, subject to the control of the pro!Jate court, and to the posc;ession of any administrator appointed by that court for the purpose of admini tration; and descends, and must be distributed, in the following manner: If the decedent leave a surviving husband or wife, and only one chHd, or the lawful i. ue of one child, in equal shares to the surYiving husband or wife. and child of Issue of such child; if the decedent leave a surviving bushand or wife and more than one child living, or one child living and the lawful Issue of one or more deceased children, one-third to the surviving husband and wife, or the remainder in equal shares to his children, and to the lawful i sue of any deceased child; if the decedent leaYe no surviving husband or wife, but leaYes issue, the whole estates comes to such I sue; if the deceased leaves no issue and the estate does not exceed S,5,000, all the e tate goes to the surviving husband or wife; if thee. tate exceeds $5,000, the first .3,000 goes to tbe survivor, and of the excASs, one-half goes to the '-Urvivor and the other half to the decedent'. father and mother in eriual shares, and if either Is dead, the whole of such other half goes to the other, but if neither such father nor mother survive, such other half goes in equal shares to the brothers and sisters of the decedent, and to the children of any deceased brother or sister. If decedent lea\'e no issue, nor husband, nor wife, the e:tate comes to the father and mother in equal shares, or if either is dead, then to the other; if there be no i. sue, busl,and, wife, father, nor mother, then in equal shares to the brothers and sister· of decedent, and the children of any deceased brother or sister. by right of representation. If t.he decedent leave a surviving husband or wife and no Issue, and no father, mother, brother, or 'li·ter, the whole e tate goes to the surviYing bu band or wife. If the de<·etlent leave no husband, wife, or kindred, thee tate escheats to the. tate for the support of common schools. Kindred of half blood inherit equally with those of whole blood in the same degree, unless the inheritance came to the intestate by de cent, devise, or gift of some one of hi ancestors in which cru e person. not of the blood of !>Uch ancestor are excluded. Dower. Dower and curtesy are aboli bed. Executions issue as of course at any time within five years after ~~~~tb!nat~~f;ej~ ~~1u~r~t~lb~1!i~~t~s.gi~~~dss!:::t:o~ vision'> apply in justice's courts as to levy. etc., on personal property. There is no stay law, and execution can only be stayed by order of  :in  srcfo,  ag~Ji:f;  the court for irregularity, by injunction, or by appeal with security given. Real estate sold under execution may be redeemed within one year. Exemptions allowed are a homestead not exceeding one acre in area, if within a t-0wn plat, or 160 acres if not. The homestead exemption is limited to $5,000 in value. Certain personal property is absolutely exempt, such as family pictures, school books, lot in a family  r~~::i~J:"t ~i7 0  !fl~~~dn:~!~"!~nb~ E11;3:JlYtoeig~g~~J1 ~i~ 1  s8J~re family, and to a single person to the value of $300. In lieu or the same certain specific articles may be selected and held as exempt. Fraudulent Conveyances. The uniform Fraudulent Conveyances Law has been in force since July 1, 1919. Garnishment. This remedy lies in all courts, upon affidavit for in showing indebtedness, and that some person or corporation within the State has property, money, or credits in his hands or under hl.s control belonging to the defendant. No undertaking is required. Property must be delivered and money paid into court or undertaking given to the plaintiff, with sureties, that the judgment if recovered will be paid. The garnishee may defend for himself. Husband and Wife. (See Married Women, post,) Interest. Legal rate, 7 per cent; but parties may contract in writing for 12 per cent, except that in reaJ sstate loans the rate shall not exceed 10 per cent including commissions. Usury forfeits all interest. Interest on open accounts runs from date or last Item charged, whether debit or credit. Legal rate allowed on judgments is 7 per cent from date and after property sold on execution during the year of redemption, 7 per cent. Judgments of courts of record are a lien on all real estate in the county where the judgment was recovered and in the counties to which it is transcripted, except the homestead for ten years from time such judgment is docketed in the clerk's office of the county where the i~~~~ef;d;:e:r:~;d b~ngbf!fn:~o~iigfnt11:1~;~ s~~~: summons and complaint; in justices' courts, four days, where no defense is interposed. Liens. Mechanics, laborers, and furnishers of material, machinery, or fixtures, by virtue of any contract with the owner, his agent, trustee, contractor or sub-contractor, for any building, erection, or other improvements upon land, have for lahor done or material, machinery, or fixtures furnished, a lien upon such building, erection, or improvement, and upon the land belonging to such owner on which the same is situated, to secure the payment of such labor, materials, material machinery, or fixtures furnished. A verified account of the amount of the lien claimed must be flied in the office of the clerk of the Circuit Court of the county wherein the property is located within ninety days after such materials shall have been furni hed and labor performed, as against some classes of public service corporations the account or claim is to be filed in the office of the Secretary of tate. o person is entitled to mechanic's lien who bas taken collateral security upon the same contract. Any person owning and operating a threshing machine may have a lien upon the grain thre ·hed by the machine for the threshing thereof. Limitations. Personal action , two years; on contracts or obllgations, six years; on sealed in truments and action affecting real property, except mortgage foreclosures, twenty years; on real estate mortgages (foreclosure thereof) fifteen years, and on judgments, or decrees of any court other than the courts of this State. ten years; of the courts of this State, twenty years. Iarried \Vomen retain their own real and personal property, and may make contracts, sue and be sued. as if sole. -either husband nor wife has any interest in the property of the other. Dower and curtesy are abolished. Married women retain the same legal e. istence and per onality after as before marriage, and shall receive the ame protection of aJI rights as a woman which her bw·band does as a man, and has the same right to sue in her own name as her husband has in his. Mortgages on real property are executed same as deeds. The execution of a mortgage upon a homestead, even though it be for part of the purchase price, by both husband and wife is nece.·:ary to its validit.y. Mortgage containing a power of ale may be foreclosed by adverti-sement. Chattel mortgages must be executed in the presence of two witnesses and it must appear from the mortgage that duplicate of it has been received by the mortgagee. The mortgage is void as against creditor, and subsequent purcha-sers and encumbrancers in good faith and for value unle s it i flied in the office or the register of deeds of tbe county where the mortgaged property is situated. The mortgage outlaws unless within thirty days next preceding the expiration of three years from the time of flling an affidavit for renewal showing the amount then due, is filed in the office of the re"ister of deeds. Thi. renews the mortgage for three years. C'hattel mortgage may be foreclosed by advertbement . Real e:tate mortga~e and ru·<;ignment thereof, to be entitled to record, must contain the postofflce address of the mortgagee or assignee, as the case may be. Notes and Bill of Exchange. The uniform Negotiable Instrument Law ha'l been in for-:e. ince July 1, 1913. Power of Attorney. A power of attorney t convey or mortgage real property mw t be acknowledged and recorded in the office of the register of deeds of the county in which the property is situated and can only be revoked by an instrument in writin, acknowled~ed and recorded in the same office. ( 'ee Acknowledgment..~ and Conveyances.) Probate Law. (See Administration, Descent and Distribution, and Wills.) Prote t. (See Notes and Bills of Exchange.) Redemption. A jud~ment debtor or hi successor in interest or a creditor having a sub equent lien by mortgage or judgment may redeem from the sale of real property under execution or foreclosure within twelve months from the date of. ale. uccP · ·Ive redemption may be made by such creerlitors within ixty days after the pre<'eding redemption. There is no right of redemption in case of a sale of personal property. Replevin. Personal property wrongfully taken or detained may be repleYined by the owner or party entitled to posse sion. replevin bond in double the value of the property must be furnished. Salc'l The Uniform ales Act has been in force since July 1, 1021. Sale in Bulk. A bulk. ales law is in force. Salo. of Securities. A law regulatin~ the sale or certain classes of securities, commonly poken of as a blue-:ky law, is in force. Ta.·e. become due and payable on the first day of January, and delinquent on the first day of April, followina and draw 12 per cent interest thereafter until paid, or the land i. old as hereinafter . tated, the interest being added on the first day of each month. Land. are sold on the first :M onday of December followin~. and may be redc med within two year· by payment of purcha. e money and intere. t at the ~~tii: ~!1~f~jn!if8{a!~~~~~u~~~:~~~esd~d'. d¥:~~inge~~~~e :er:!1: on real property as between vendor and vendee on the first day of January, and if personal property taxes are not paid by the first  J:;~s~t!~  ~f  BANKING AND COMMERCIAL LAWS-TENNESSEE day of July the county treasurer, who is the tax collector, may proceed to enforce the collection of them by distress and sale. An inheritance tax law went Into effect July 1, 1905. The tax depends upon the value of the property and the degree of relationship. Warehouse Receipts. The uniform Warehouse Receipts Law has been In force since July 1, 1913. ·w111s. Every person over the age of eighteen years, of sound mind, may by last will, di-,pose of all his or her estate, real and personal. A married woman may dispose of all her separate estate by will, without the consent of her husband. A will must be subscribed at the end thereof by the testator himself, or some person In his presence, and by his direction, must subscribe his name thereto. Unless the will be an holographic will, the subscription must be ma.de in the pre ence of the attesting witnesses, or be acknowledged by the testator to them, to have been ma.de by him, or by his attorney. The testator must at the time declare to the attesting witnesses that it is his will. There must be two attesting witnesses who must sign their names to the end of the will, at the testator's request and In his presence. Nuncupative wills are valid when the estate bequeathed does not exceed In value $1,000. Must be proved by two witnesses. The decedent must, at the time of making, have been In military service, In the field or at sea., or at the time in expectation of immediate death from injury received the same day.  SYNOPSIS OF  THE LAWS OF TENNESSEE RELATING TO  BANKING AND COMMERCIAL USAGES Revised by A. J. GRIGGSBY, JR. Attorney at Law, (See Card in Attorneys' List.)  ashville.  Acknowledgments within the State must be taken before a chancellor or judge or any court of record, or clerk of a court co!llltY. or his deputy, or a notary public. In ot~er tates. b~f<?re any Judge or clerk of a court of record, notary puhl!c, or commJ.·. ,~ner of Tennessee. The cert,iflcate of a notary pubhc or a comm1 s10ner, under his seal of office is sufficient proof of his official character, 11:nd tbls must state when such officer's commission expires. If before a Judge of a court of record, his official character ~ust be cert}fled to !lY the cle_rk of his court, under bis official seal. or private seal. 1f there 1s n9 official seal, or by the governor of hi State. under the great seal ~f a1ct • tate. If before a clerk of a court of record, and certified by bnn under bis seal of oruce, the judge chief justice, or presiding magistrate s?all certify to the clerk's official character. . If. made o~t of _the mted States, must be under seal before a comm1SS1oner of 'I ~ni:ie.. ee, notary public. or an ambassador, minL ter, or consul of the Dmted , tates. Acts of Tennessee, Chapter 48, provide a uniform form of al'lruowledgment for the authentication of acknowledgment for record of written instruments, and are as follows: "Personal" State of Tennessee County of ............ On this ...... day of ....... . 192 . .. before me per~onall 11 appeared . .......... to me known.to b~ the person, (or person.~) descri/Jed in and who executed the foregomo ~nstrume'!t, and acknowled(led that he (or they) executed the same as his (or their) free act and deed. By Attorney State of Tennessee Count 11 of .......... On this ..... day of ........ 192 . .. before me personally appeared ........... to me k1iown to be the persn_n u;ho executed a1e forrg,>ing instrument in behalf of .......•.. a~d acknowledoed that he e:cecuted the same as the free act and deed of said ........... .  Corporations State of Tennessee Count1J of . .......... On this ..... day of ........ ! 92 . .. before me appeared. . . . . . . . . . to me pcrsonall/J known. '!'Jho. brmg by me. duly sworn (or affirmed) did say that he. is the pre.ml.<'1!-t (or other offi~er or auent of the corporation or association of .< d~scnbing the_ corporation or association), and that the seal affi~ed. to ·aid imtrume_nt ?,S the corporate seal of said corporation (or association) .and that sazd _instrument w~s &igned and sealed in behalf of said corporation (o~ association) ,by authority ty of its Board of Directors (or Trustees) and said_ ....... . (!cknouledged said instrument to be the free act and deed of said corporation (or associatton). If corporation has no seal, than omit words "co~prate seal" a_nd add tha·1 the corporation has no seal. In all cases add signature and tttle of offices taking the acknowledgment.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1949  The acknowledgment of a married woman is taken In the same manner as if she was a feme sole. Actions. All contracts may be sued on in the same form of action. The common law forms and pleadings modified by statute are used. Non-residents must in all cases give bonds. Administration. Letters of administration are granted: 1. To the husband or widow; 2. To the next of kin; 3. To the largest creditor; 4. To the public administrator, if no one applies in six months. All property, real and personal, except what is exempted and what widow takes, are assets for payment of debts. Preferred debts are, funeral expenses, expense of administration, and debts due the State. (For widows' rights, ee Husband and Wife.) Insolvent estates, not exceeding the value of $1,000, may be administered in county courts. Of such estates of greater value, county and chancery court have concurrent jurisdictions. Executor or administrator makes suggestion of Insolvency to county court; clerk thereupon requires executor or administrator to give notice in a newspaper published in the State and at court house door of the county for creditors to file their claims, by a day fixed in said notice, which day shall not be less than three, nor more than six months after day of said notice, and any claim not fl.led on or before said day, or before a distribution of the funds is made, is forever barred in both law and equity, The assets of insolvent estates, after preferred debts above enumerated and exempt articles are deducted and widow's rights are allowed, are divided ratably among the creditors, whose claims have been properly fl.led. (For claims against executors or administrators of other estates, see Limitations of Suits.) Affidavits may be taken in another State of the Union, or foreign country, for use in this State, before a commissioner of Tenne see. Answers and other pleadings in chancery, may be sworn to before commissioner of Tennessee, notary public, justice of the peace, judge of a court of record, or clerks of such court, or special com.missioner appointed by Tennessee court or clerk. The certifkate of the commissioner, notary public, and clerk must be under seal of office. The certificate of the judge or justice of the peace must be authenticated by the certificate of the clerk of the court wherein the judge or justic presides. Aliens. An alien, resident, or non-resident, may take and hold property, real or personal, in this State, either by purchase, descent, or devise and dispose of and transmit same by sale, descent, or devise, as a native citizen. Assignments. The Act of 1895 regulating general assignment was declared unconstitutional by the supreme court and the Act of 1881 goes back into efl'ect, Under this act, preferences in genera.I assignment are not allowed but special assignments are made with preferences, and under these the act of 1881 as to general assignments is practically rendered nugatory. Attachment process will issue when the debtor resides out of the State; is about to remove, or has removed himself or property out of the State; bas removed or is removing himself from the county private•ly; is concealing himself, so that the ordinary process of law cannot be served upon him; absconds or is absconding or concealing himself or property; has fradulently disposed of, or is about fraudulently to dispose of his property ; or when any person, liable for any debts, residing out of the State, dies, leaving property in the State. Attachment will also issue on demand not due. in all the above cases except the first; also in above cases at suit of surety, as accommodation endorser on paper due and not due. When debtor and creditor are non-residents of t,his State, and are residents of the same State. the creditor shall not attach, unless the property bas been fraudulently removed to evade process in said State. Debts due and owing to the defendant, and property of the defendant of any kind in the hands of a third person, are subject to garni. hment. Statutory liens on pensonal property, when no method of enforcing same has been provided by the statute creating them, may be enforced by original attachment levied on property on which lien exists, whether in hands of creditor, owner, or other part,y not an innocent purchaser. A foreign corporation, having complied with law of 'T'ennes<;ee. and doing business therein, and having no agent in county in which suit is brought upon whom process can be served, may be proceeded against by attachment. Banks. All persons and partnerships paying taxes for the use of monev, as money dealers, may receive deposits, issue checks or bills of exchange, or discount bills, notes, etc .. but shall not be allowed to charge on bill'> a greater discount than legal interest and exchange. Any company incorporated under the laws of Tennessee, having, by its charter, the right to receive money In trust or otherwise. has the power to receive deposits and loan same, and it capital on any kind of commercial or busine s paper or real estate, buy and sell exchange, and all kinds of public or private securities and commercial paper. State banks may be chartered at any time in same manner as other privat.e corporations, and, if they so choose, may couple witt the ustial banking bu lness. a safe deposit and trust company. They may do all acts usually performed by banks. Allow 3 and 4 per cent interest on deposits. advance money on real and personal property, and sell same; and, if the safe deposit and tru t feature is added, may take on depo it jewelry and other valuables and guarantee the preservation and delivery of same; guarantee tne tit,Jes to real estate and the payment of bonds and mortgage ; execute trusts of every description; and own a vault, and rent out boxes for the keeping of valuables, but shall not be liable for loss by fire, theft, or other cause. Stockholders not liable. except for payment of stock sub crihed by each. There is no law regulating the class of bonds in which savings banks may invest. The Legislature or 1913 pas ed an act creating a Banking Department to regulate, examine, control and upervise banks (see Chapter 20. Renate Bill 174, Acts of Tennessee, 1913). Under this act every corporation doing a banking busine ·s under the laws of the State of Tenn~ see, whether private or incorporated, shall be subject to the supervision and inspection of the superintendent of Banks, who shall examine every banking concern in the State at least twice each year. The word "bank" or "banker" means every trust company, loan company, mortgae;e security company, safe depo. it company, receiving money on deposit and every individual, firm or corporation doing a banking, loan or discount business and receiving money on deposit and performing the functions of a bank. The Superintendent of Banks shall aL'>o have the power to examine every agency of any foreign bank located in the State. If the Superintendent of Banks finds upon examination that a bank is in an unsafe condition or is in. olvent or unable to meet its obligations in the ordinary course of bu<,ine s, be shall require the bank or it ollicers or directors to execute a good solvent bond in an amount sumcient to proter:t its depo itors and other unsecured creditor. . In cam the bank refuses or fails to thus protect its depositors, the Superintendent of Banks sball file a petition in the f'hancery Court, re,1ulring the bank to show cause within five days why it should not be adjudged in, olvent. Pending the hearing or the preparation of bond, the Superintendent of Banks shall take charge of the affairs of the bank and hold them in status quo o "bank" shall reduce its cash on hand below 10 per cent of demand deposits, although the bank may include in its cash the amount of money on dep0 it on demand with other responsible banks Every bank must make, on the call of the Superintendent two reports each year, according to the form and at the time prescribed by the Superintendent, one of these calls shall be in the first half of the  its   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  BANKING AND COMMERCIAL LAWS- TENNESSEE  1950  ~-----------------------------  sworn deposed as follows: (here follows deposition). Closing certificate: The foregoing deposition was taken before me, as stated In the caption, and reduced to writing by me (or by witness). And I certify 1 ~;ggr:.tiihe ~m~tc:t t~~~!~~!~~g ~~i~a s1~p~~y:!1rd that I am not interested in the cause, nor of kin or counsel to either of with Sl0,000 capital, surplus and undivided protfts to $500 per year the parties, and that I sealed them up and delivered them to (or put them in the post-office or express office) without being out of my posfor a bank whose capital, surplus and undivided profits are $1,000,000 or more. session, or altered after they were taken. Given under my hand, this . .... day of ..... A.D. 18. . . . (Signature and title.) 11 0 18~§. !ciei!r!ff~.;.a~i:t~~e~e:0ffab1:'i~i~: he~e~::!!1;/e~gr~e~yht~nih1:r1!~: in:fi1'J~e1!!J1:.1~~~~~~~t!~~the with uniform law a establish to a<'t an ments was passed. "Being and interest therein, equitable as well as legal. The Ian~ of intestate laws of other states on that subject." An instrument to be negotiable owner is inherited in the following manner: Without reference to must conform to the following requirements: 1. It must be in writsource of intestate's title, by all the sons and daughters of deceased, ing, and signed by the maker or drawer. 2. Must contain an unconto be divided among them equally. And if any child of said intestate ditional promise or order to pay a certain sum in money. 3. Must shall have died in his lifetime, his lineal descendants shall represent be payable on demand, or at a fixed or determinable future time. their parent and be entitled to same portion of the estate of the 4. Must be payable to order or bearer. 5. Where the instrument deceased as their parent would have been entitled to if living. If Is addressed to a drawee, be must be named or otherwise indicated there be no issue or brothers or sisters, nor their issue, and either therein with reasonable certainty. Negotiability ls not affected by a parent be living, then by such parent. If the estate was acquired by provision authorizing sale of collateral securities, or confession of the intestate, and he died without issue, his land shall be inherited by Judgment, or which waives benefit of any law intended for the protechis brothers and sisters of the whole and half blood born before his tion of the obligor. or gives the holder an ele<'tion to require something death or afterward, to be divided among them equally. And if any to be done in lieu of payment of money. Every negotiable instrusuch brother or sister died in the intestate's lifetime leaving issue, ment is payable at the Lime fixed therein, without grac-e. When the said issue shall repre; ent their deceased parent, and be entitled to the day of maturity falls upon Sunday, or a holiday, the instrument is same part of the estate of the uncle or aunt, as their fatber or mother payable on the next succeeding husiness day. Instruments falling would have been entitled to, if living. In default of brothers and sisdue on Saturday are to be presented for payment on the nex-t succeedters and their issue, the land shall be inherited by the father and at, may demand on payable instruments that except ' Ing business day. mother of the intestate as tenants in common. If both be dead, in the option of the holder, be presented for payment before 12 o'clock equal moities by the heirs of the father and mother in equal degree, noon on Saturday, when that entire day is not a holiday. Notice of or representing those in equal degree of relationship to the inte,;tate; non-payment must be given to the drawer and to each indorser. For but if such heirs, or those they represent. do not stand in Equal degree details of the law of bills and notes, reference is made to chapter 94, relationship to the intestate, then the heirs nearest in blood. or repreof · of the laws of Tennessee. 18199. senting those who a.re nearest in blood, to the intestate shall take in Conveyances. A fee simple estate is presumed to pass by grant to others more remote. preference of real property, unless it appears from the grant that a less estate was Where the land ca.me to the intestate by gift, devise, or descent Intended; and word "heirs•· not necessary to create fee simple estate. or the ancestor of a parent, and be die without issue: parent, a from Wife must join to convey home tead. Private seals are abolished. (a) If he have brothers or sisters of the paternal line of the half blood, No attesting witnesses required by law. Deed should contain coveand brothers or sisters of the maternal line also of the half blood nant of seizin. Acts of Tennessee, 1919, Ohapter 126, provide for the then the land shall be inherited by such brothers and sisters on part removal of the disability of coverture of married women. (See Ackof the parent from whom the estate came, ln the same manner as by nowledgments.) brothers anct sisters of the whole blood, until the line of uch parent Corporations. Private corporations, for a variety of purpo es is exhausted of the half blooct. to the exclusion of the other line. embracing every industry, may be formed by five or more persons (b) If he have no brothers or sisters. then it shall be inherited by the over the age of twenty-one, copying the form of charter adapted to parent if living, from whom or whose ancestors it came, in preference the purpose, and appending an application to the State of Tennes. ee to the other parent. (c) If both parents be dead, then by the heirs for such charter, and acknowledging and registering the same in the of the parent from whom or whose ance tor it came. The personal county where the principal office is to be situated, and In the office e tate as to which any person dies intestate. after the payment of the of the i-ecretary of state, and then registering in said county the debts and charges against the estate, shall be distributed a.-; follows: certificate of registration given by the secretary of state, and a fac1. To the widow and children, or the descendants of children represimile of the State seal. The amount of capital stock cannot he less senting them equally, the widow taking a child's share. 2. To the than Sl,000, and may be changed and new powers added by the , widow altogether, if there are no children or de. cendants of children. board of directors under resolution of stockholders authorizing the 3. To the children or the descendants, in equal parts if there is no widow; the descendants taking in equal parts the share of their deproposed amendment, and signing an application therefor to the State of Tennes.c;ee, and acknowledging and registering the same in the ceased parents. 4. lf no children to the father. 5. If no father to the mother, and brother. and sister:s, representing them equally; same way as provided for charters. The general powers of such corporation shall be to sue and be sued, to have and use a common 1 the mother taking an equal share with each brother and sister. fi. If seal, to hold, in adclltion to personal property, real estate necessary I no brothers or sisters or their children, exclusively to the mother; if .no mother. exclusively to the brothers and sister or their children for corporate business. and real estate in payment of debts, and to representing them. 7. If no mother, brother or i. ter, or their sell realty for c.orporate purposes, and to establi h by-Jaws, etc., not inconc;istent with the laws and constitution, to appoint officers and children, to any of the next of kin of the intestate, who are in equal degrees, equally. There is no representation among collaterals after agents, to designate name of office and officers and compensation of the brother's and sister's children. officers, to borrow money and issue notes and stock upon corporate property, and secure same by mortgage. Acts of 1917, Chapter 113, Dower. ( ee Married ·w omen.) makes the law as to a transfer of shares of stock in a private corporaExecutions may issue from Justice of the Peace Court after two tion, chartered, organized and exi. ting under the laws or Tennessee, days and from County C'ourt after ten days, and from all other courts uniform with the laws of other states. Chapter 56, Acts of Tennessee, after thirty days from rendition of judgment. Exec-utions from 1919, provide that it is not necessary to prove corporate existence, Justice of Peace returnable in thirty days, from Circuit and Chancery either for a domestic or foreign corporation, unless the same is denied tay of eight months may Courts to the first day of the next term. under oath. be had in judgments of a justice by furnishing security. Debtor has two years in which to redeem realty sold under execution. Foreign Corporations. Every foreign corporation desiring to carry on business In Tennessee shall first file in the offke of the secreExemptions. Home: tead, Sl.000. Per onal property consisting tary of state a copy of its charter. and shall file for record in the regisof household goods, supplies, tools and stock, etc .. amounting in all ter's office of each county where said corporation purposes to do busito about Sl,200. ness an abstract of its charter. It is unlawful for such corporation Holidays. January 1st, January 10th, (Robert E. Lee's birthday), to do business In Tennessee without having first complied with this 2 0 ~;~~~il/ c~~ie~et~~~~ ~~~.. JJ~-:~hbe~rsi\rl ,~tlt~y· e&l~~t~ :t;i~;~e trh~~ s°sJt.bjects the ofrender to a fine of not r:s~v[bi~i· cember 25th, Good Friday, Dec-oration Day, June 3rd, known as By the Acts of 1907, Chapter 4~4. it is provided that all corporations, l\Iemorial or Confederate Decoration Day. When either of these both foreign and domestic, doing business in Tennessee, shall, in days fall on Sunday, then the following :\londay to be sub tituteel. addition to the foregoing. on or before the first day of July, in each Also all days appointed by the Governor of this ~tate or by the year, file with the sec-retary of state a written statement signed by its President of the United tates as days of fasting or thanksgiving, and all days .·et apart by law for holding county, state or national ~hith(':~~f~~:re\;;t,~!~~ ~rid i;fyi;c;p\~: co~~~r!~~~ elections throughout this State are ma.de legal holiday:; and the prinripal office or pla"e of busineHs in the State of its creation, and period from noon to midnight of each a.turday which i not a holialso in the State of Tennessee, the amount of its capital stock authorday, is made a half-holiday. ized by its charter, the amount of capital stock issued and outstanding, Home tead of value S 1,000 in real estate, legal or equitable, is and the names of its principal officers, viz.: The president, viceresen·ed to the head of a fnmily, exempt from sale under legal process president, secretary and treasurer, and a list of its board of directors, his life. At a husbanct's death it inure· to the henflt of his during engaged. is and the nature and character of the business in which it wife and children, free from the claims of creditor . It may he sold A penalty is provided for a refusal to comply with the above. by joint consent of bu ·band and wife, when that relation exists, Courts. Terms and Jurisdiction. Circuit courts hold three terms eyidenced by conveyance. duly executed a; required by law for married annually, and have general common law jurisdirtion in all cases inwomen. It is liable for taxe-, and purchase money, or money paid for volving over 50. Chancery courts, holding two terms annually, improvement thereon. have full equity jurisdiction above $50, and concurrent jurisdiction Husband and Wife. Hu. band Is not liable for ante-nuptial debts with t,he cirruit courts of all civil causes, except actions for injuries of his wife, but his marital right. do not so attach to her property as to to peri;on, property. or character, involving unliquidated damages. defeat the collection of same. Wife' personalty cannot be suhjected unall on fiO; to up equity in Justke; of the peac-e have jurisdiction to the payment of husband's antenuptial debts. Wife can hold real setcled accounts, obligations, contract , etc., to and for recovery of property, and for damages. except for libel and slander, up to 500; ~~gt~~rs?{~7;trr~~rir~!Wtar~tfe \~~R:•;,h;~;r~~ds~bfe~i\~a.~~~i~~~~ upon all notes and upon indorsement ot' negotiable paper where dedebts, nor can the husband's marital inter ·t in wife'. land be sold mand and notice are eitpre sly waived in the instrument, up to Sl,000. during her life. ·wife can dispo.·e of her eparate e.'tate hy deed or will unle.·.· the power so to do is expres. ly withheld in the in trument Days or Grace. (See Bills and Notes.) creating it. Husband bas rurtesy, as at common law. "Tife has Deeds. Until registered, deeds are not good, except between which is one-third or life of real es ate. both legal and equitable, dower, parties and privies. Lands held by unregistered deed are subject to of which her htL'iband died seized and pos.·es.sed. At hu. band' death. debts of both vendor and vendee. \Vife must join in deed to convey homestead inure to benefit of wife and children. Widow of intesrate homestead. 1 0 0 Depositions. May be taken by any judge, notary public, com- I 1g;it~ie~~ ~;~;~!Yf~~d\~n~r!~~mt\r~~~1!~ ng~ fJ;~rJf o~uri~: missioner of Tennessee, justice of the peace, mayor or chief magistrate husbaud, by either husband or wife, this death inures to the benefit of of a town or city, the clerk of any court, or other person properly his widow and children, free from claims of hl creditors. Married commissioned or appointed by the court or clerk, not being interested, women are under no disability on a<'rount of coverture: they can or counsel, or related to either of the parties within the sixth degree, acquire, bold, u ·e and di. pose of property, real and personal, contra.ct computing by the civil law. When taken by a notary public in in reference to It, bind themselves personally and can sue and be sued another state bis certlflrate shall show the date of the commencement just as if they were not married. and expiration of his comm sion. The depositions, when complete, 'onInterc ·t. Legal rate, G per cent. By contract 1, r cent. shall be enveloped, together with the commi ion, if any. and all tra<·t for more than p r cent i. void as to exc · . aud an instrument documents which may have been deposed to, sealed, with the com·howin,-t usury on its face cannot be sued on. missioner's name written across the eal, and directed to the clerk of ,Judginents. From court of record are a lien from date of rendithe court where the cause is pending, with the title of the cau: e intion for one year on all land. then owned hy defendant, and on afterdor·ed thereon, and may be sent by mail. express. or private conlands for one year after acquirement. acquired veyance. Form of Caption: __ A. B. vs. C. D. In !he .... Court,.-.·. Limitation of ult·. Upon bonds, notes, accounts, and con• County, Tennessee. Depos1t1on of ........... w1tnes for plaint1tr, tracts generally, six years; judgments or decrees of court of record (or defendant) in the above case, taken upon notice, (or interrogatories and other cases not expre:· ly provided for, ten year , Revivor: on the .... day of .... , 18 .. (giving date specified in the notic-e), at Acknowledgment, expres.-; d willingness to pay or promi,e; part pay(place specified in the notice), in the presence of plaintiff and defendant ment not in itself sufficient. All demands i.gain t administrators and (show the fact). The said witness, .......... aged ..... , being duly  b~t:t: t11:p~~~e~~ ~~: 1tot~! ~!ga°;e~ht:~tre bJn\~ ~1?:iin:est~t:~~  r~<!!t~~  ch!Jl~~ 8"t1!r ::! i;  l I  ~ii  g~!\1~~~:  A~  01  BANKING AND COMMERCIAL LAWS-TEXAS  1951  --------------------------------~ executors must be presented and sued on in two years, if a resident, and three years if a non-resident after qualification, but no suit can be brought within six months after such qualification. Continuous adverse possession of real estate for seven years, under color of title, makes a title.  SYNOPSIS OF  THE LAWS OF TEXAS  et:.~u:j ~ ::i  ra~~~ 0~ ho:~ci~~~~i~u~t:;r ;i'~e~~TrlJ.a~ru~t~r!~.y the person doing the work. Covers the lands of married women. Benefit extends to any workman or furnisher of material giving notice to owner within thirty days after the completion of building, or his discharge, or the completion of his contract. Railroad contractor, sub-contractor, furnisher of material, and every one who does any valuable service, manual or professional, for railroad, shall have lien for one year; if wit,hin ninety days after work done or material furnished, written notice is given railroad company or owners. No ~o~:fi:n~r contract with construction company shall be superior 0  Mortgages and deeds of trust take effect as to third parties only from registration. Can be foreclosed without inter· ention of court when power of sale is conferred in the instrument. Chattel mortgages are good as to the contracting parties without registration, but not as against purchasers without actual notice, and creditors. It is a felony for maker of registered mortgage of per onal property to dispose of same with purpose of depriving beneficiary of same. Railroad cannot make a mortgage which shall be superior to judgments for timbers furnished, or labor. or for damages done to persons or property in operation of road. Equity of redemption may be waived, in deed of trust, and on default realty may be sold thereunder by trust.ee, free therefrom. for cash or otherwise, due advertisement having been made. When mortgages foreclosed in court, property may be sold if equity of redemption not waived on credit of not less than six months nor  :~~1  ~~t~ri!; b!~a;sre~~rl3 ~tviJd;~ !~~iWei\~1~;~~~~~~eJ'~~ land to secure purchase money. Otherwise mortgagor bas two Years to redeem. Partnership. See Chapter 140 of Acts of 1917 and Chapter 120, Acts of 191!), which Act regulates and makes uniform the rights, duties and liabilities of a general and limited partner. Limited partnership may be formed for transaction of any mercantile, mechanical, manufacturing, agricultural, or mining business in this tate: but not for carrying 011 business of banking and insurance. The articles of copartnership, must specify t,he name of the firm, and of each individual partner, and his place of residenre, general nature of the business, amount of capita each partner bas contributed to common stock, and the period at which partnership is to <'ommence and terminate. Articles must he acknowledged by each partner and registered in every county where firm has a place of business. Terms of partnership must l>e published for six weeks, immediately after registration, in a newspaper, to be designated by register. At time of filing original articles for registration, an affidavit of a general partner must be filed in same office. stating that the sums specified in the articles to have been contributed by each partner to common stock, were actually and in good faith contributed and in cash. If all formalitie. are not complied with, or are violated, the special or limited partner will be liable as a general partner. Power of Attorney. All powers of attorney authorizing the sale, conveyance, and transfer of real estate must be registered. Ot~er powers of attorney may be registered. Cannot be made by married women. Protest. (See Bills and Notes.) Taxes are a lien on the real estate on which they are levied, and as between vendor and vendoe they are a lien from January 10th of ~he Year for which they are assessed; as between the , tate, county, city and the owner, they are a lien for six: years from January 10th of year for which they accrued, after which they are barred. Pay~ble first Monday in October of the year they are assessed. . After first ruesday !n February following, taxes bear interest, and clistress warrants are issued for collection. Under the act of 1907, after the first Monday in July of the year after that for which the t!)-XeS are asse.·sed, all re~I estate upon which taxes have not heen pard may be sold at pubhc auction to the highest bidder after advertisement by the county trustee of the county in which the land lie . The delinquent taxpayer has two years from the dat,e of sale in which to redeem the property by paying taxes, interest, cost and penalties. o will can convey an estate in lands unl!cJ ·s _written in Wills. testator's lifetime and signed by him, or by some person 1D h).- presence by his direction, and subscribed in his presence by t~o witnesses at lea..c;t nelLher of whom is interested in the devise of said lands; ~ut a paper writing purporting to be the will of the ~eceased _ver ·on, written by him having bis name sub ·cribed to it or mserted m some part ~f it, and found after his death among his valuahle paper·. or lo~ged m the hand of another for safe-keeping, shall be good and suillc1ent t_o give and convey lands, if the band-writing is generally !<nowu. by hrs acquaintance,;, and it is proved by at least three credible. w1tness~s that they verily believe the writing. and that _every pa.rt of 1t to be m his hand. Every devi e shall convey the eutiro estate of tho testator In lands unless t,he contrary plainly appears from the context. Fo:eign wills may be probated in same manne_r and form as domestic Wills, if properly probated in states where will was made. 0   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  RELATING TO  BANKING AND COMMERCIAL USAGES Revised by MESSRS. DAVIS, JOHNSON & HANDLEY, Attorneys a.t La.w Dallas. Texas. (See Card in Attorneys' List.)  Accounts, How Sworn To. Open accounts, for purposes of suit, should have attached the affidavit of the plaintiff', bis agent or attorney, that such account is, within the knowledge of affiant, just and true, that it is due. and that all just and lawful offsets, payments, and credits have been allowed. If made by agent or attorney, the affidavit should allege the fact. Such affidavit is prima-facie evidence in all commercial accounts, unless denied under oath. but not in an isolated transaction based orr special contract. Acknowledgments of instruments for record may be made out of the State, but within the United States, or territories, before clerk of some court or record having a seal, commissioner of deeds, for Texas, notary public; without the United States, before a minister, commissioner, or charge d 'atraires, consul general, consul, vice-consul, commercial agent. vice-commercial agent, deputy consul, or consular agent of the United States, notary public; within the State, before a clerk of the district court, a judge or clerk of the county court, a notary public, in the county for which appointed. Acknowledgment should state: Before me . . . . . . . . . (giving name and character of officer) on this day pet·sonally appeared . . . . . . . . . known to me to be the person 0 t<g! ~~<t:c~~~:l~~g!1a t~r::dt;~t h\e purposes and consideration therein expressed. Given under my hand and seal of office this .... day of .... 18 .• [ ame of officer and official character.] (Seal] For a married woman's acknowledgment proceed after* as follows: and known to me to be the wife of ........ ; and having been examined by me privily and apart from her said husband, a"'.ld having the same fully explained to her, she. the said . . . . . . . . . acknowledged such instrument t,o be her act and deed, and declared that she bad willingly signed the same for the purposes and consideration therein expressed, and that she did not wish to retract it. Care should be taken to see that matters certified to in a married woman's acknowledgment are strictly followed as a proper acknowledgment and certificate are necessary to render her conveyances valid. Given, etc. (as above). Actions. The distinction between Jaw and equity proceedings does not exist in Texa . All forms of action are abolished. To compel defendant to appear at any term of the court he must have been cited ten days before the term begins. Service by publication not good except in proceedings in rem., which by statute are made to include suits to determine the title to, or incumbrances upon, property within this State. Administration of Estates. Letters testamentary or of administration may be granted within four years after the death of a party. They issue to persons who are qualified to act in the following order. 1. To the executor named in the will. 2. Surviving husband or wife. 3. Principal devisee or legatee. 4. Any other devisee or legatee. 5. Next of kin. 6. Creditor. 7. Person of good character r~iding in the county. The county court acts as a court of probate 111 all matters pertaining to estates of decedents, testate or intestate, and, unless the will dispenses with such superl'ision, administrators must furnish bond in double the amount of the estate. Surviving husband or wife qualifying a.c; such must give bond in a sum equal to the \'alue of the estate. Wills may by express provi ion dispense with administration, other than proba~-ing the will and. ~ling ~f inventory and appraisement, and confer md~p~ndent admm1str<!-t1on on the executor. Foreign executors, administrators or guardians are not recognized by the Court of Texas and as such may not transact bu ·iness in Texas. Affidavit , within this State, may be made before a clerk of the district court, or judge or clerk of the county court, or a notary public, in the county for which appointed; without this State, and within the United States, before a clerk of a court of record having a seal, a notary public, commissioner of deeds for Texas; without the United States, before a notary puhlic, 1_ninister, commissio?er or cba_rge d'affait·es. consul-general, consul, vice-consul, commerc1al agent, v1cecomrncrcial agent. deputy consul, or consular agent of the United States. Aliens who become re idents of Texas, and have declared their intention to become citizens of the United States, have all the property rights of citizens. Aliens who owned real estate prior to July 12, 1892, have the same property rights as are accorded to citizens of the niLed States by the laws or treaties of the nation of which the alien is a citizen, this i · also the case as to lands acquired since July 12, 1892. which are situated in an incorporated or platted city, town, or village. Aliens who are bona-fide residents of Texas may, during such residence, own lands the same as citizens. Non-resident aliens who, since July 12, 1892, acquire lands by purchase or inheritance not in an incorporated or platted city, town, or village, must bona fide dispose of the same within ten yearR from their acquisition; if this is not done the lands are subject to escbeat to the State. Aliens may acquire title to lands, or an interest therein, in the ordinary course of justice, or acquire and enforce liens, or lend money upon real estate. Ap1>eals. (See Courts.) Arbitration. The statutes provide for arbitration, the awara made in such cases, if the proceeding wa in compliance with the statute, becomes the judgment of the court in which it is fl.led. Arrest. The Texas laws do not authorize an arrest in civil matters except for contempt of court. Asslgiunents and Insolvency. (See Insolvent and Assignment Laws.) Attachments. Debtors' property such as is not exempted by Jaw can be attached on certain statutory grounds of fraud alleged under oath of creditor and bond in double the amount of the debt. Attachment, now, may also issue upon unliquidated demands when the t!sot a~i~~=t~f.t. Bankruptcy has practically suspended ~~egf  (~~r~g~~nfx~~\~':i~t~\:~~  ~i:  ~f  Banks. The constitution of 1876, that prohibited incorporating for state banks, has been amended and legislature of 1895 passed a   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1952  BANKING AND COMMERCIAL LAWS-TEXAS  banking act that authorizes incorporating in Texas, for banking and discounting powers and privileges, to which may be added trust company, surety company, fidelity and guaranty company powers and privileges, as defined in the act and with power to act as executor, administrator, guardian, receiver, assignee, trustee, depository, and other fiduciary relations as therein defined. The law also provides for savings banks which are not to have discount privileges, and also prohibits any banks other than national banks, incorporated out of Texas, to do business in the state, and requires private individuals doing a banking business, to use the word "unincorporated," and provides for penalties for any breach of any provision of the act. Also provides for supervision by state by inspection of all corporations under the act. Laws have recently been enacted to encourage State Banks to become members of Federal Reserve Bank System, giving them ptJwers somewhat similar to those given National Banks by such Act. Bills of Exchange. (See Days of Grace, Notes and Bills of Exchange, Protest.) Bills of Lading. Common carriers are required, when they receive goods for transportation, to give the shipper, when it is demanded, a bill of lading stating the quantity, character, order, and condition of the goods; and such goods shall be delivered in the manner provided by common law in llke order and condition to the consignee. Liability as at common law for damages. Bill of lading is prima facie evidence of ownership of goods in transit by the consignee. Carriers can not restrict their common taw liability by any general or special notice, or by inserting exceptions in a bill of lading; and this rule is applied to a through biti. Bills of lading are negotiable paper. Chattel l\fortgages and Deeds of Trust of Personal Property, to be valid as to creditors, and as to purchasers without notice, must be accompanied by immediate delivery, followed by actual and continued change of posse sion of property, unless the same, or a true copy thereof, is filed in the county clerk's office of county where mortgagor resides, or if he is a non-resident of the State, then in the county where the property is situated. And all reservations of the title to chattels as security for the purchase m0ney thereof are helrl to be chattel mortgage , and are, when possessio.... is delivered to the vendee, void as to creditors and bona fide purchasers, unless such reservation be in writing, and flied as required for chattel mortgages. Mortgages are held to be mere security for the debt, and must be enforced by sale of property, either through a decree of foreclosure or power of sale given in the mortgage; sale of -oroperty, upon death of mortgagor, must be enforced through probate court. Any lien attemptei to l-)e given on a stock of goods exposed to daily sale in the regular course ')f business, and contemplating continued possession and sale of the goods by the owner, is frau.dulent and void. Chattel mortgage given to secure creditors is inva'lid against such creditors as do not accept uud1;;r it. Collaterals. Holder of claims as collateral security who fails to use due diligence to collect is liable for loss. Is not affected by limitation against the debt. After the death of the debtor the creditor may still collect the collaterals, Surety on principal debt is subrogated to rights of creditors as to collaterals. If, by negligence or design, the creditor loses the collateral, the urety on the principal debt is to that extent discharged. Note pledged as collateral can be held for no other debt. Taking collateral security does not extinguish original contract. Contracts. No seal is required to be affixed to written contracts. An agreement to an wer for the debt, default or miscarriage of another, or for the sale of real estate or the lease thereof for more than a year, or which is not to be performed within a year from the making thereof, must be in writing and signed by the person to be charged therewith. Conveyances. The husband alone can convey his separate and the community real estate, not the homestead. Husband and wife must join in the conveyance of the wife's separate real estate or of the homestead, whether the separate property of the husband or community, and the wife must, privily from her husband, acknowledge the execution of the instrument before a proper officer in the manner pointed out by statute. No special form required for a deed in Texas; any words of transfer convey fee simple, unless a less estate ls expressly limited. o warranty required, but any provisions of general warranty may be embodied by agreement. Con·veyance of a greater estate tban grantor bas passes what he has. Estate in futuro can be made by deed or conveyance a well as by will. A married woman may by decree of Court authorize to convey, etc., where husband refuses to join. (See Acknowledgments.) Corporations. The general incorporation law of Texas provides for organization of Texas corporations. The purpo es for which they can be organized cover almost the entire range of business enterpri e, the exception is corporations cannot be or~anized to acquire real estate for sale, except for sale and subdivision in towns, and their suburbs. (See Foreign Corporations.) Costs. Bond or deposit for cost required on filing suit. Execution for costs may i sue against the party incurring the cost at the clo ·e of each term. Courts. The federal courts of Texas are district courts with circuit court powers; there are four of tht·se districts in Texas and each holds two seSl ions of court a year. in from four to five place. in each district designated by statute-Austin. Waco, an Antonio, El Pru o, Delrio, Dallas, Fort Worth, Abilene, San An~elo. Amarillo, Wichita Falls and Galveston, Houston, Laredo, Brownsville, Victoria; and Tyler, Jefferson, Sherman, Paris, Beaumont, Texarkana, State e:ourts with civil jurisdiction are justice courts in each precinct, jurisdiction $200 or less. No appeal in C3i es of 20 or le.·s; above that, appeal to county court. County court in each county bas general probate jurisdiction and exclusive jurisdiction from 200 to $;,00; above $500 to $1 000, conctirrent jurisdiction with the dh;trict court. Appeals in probate matters to the district court; in all other c:ivil appe~ls to the court of civil appeal.. Di. trict court has concurrent junsdiction with the county court over amounts above $500 to 1,000, exclusive juri: diction over amounts above later sum, and al.·o of all suits involving title to land, and slander and libel, irrespective of amounts. Appeal in <:lvil matters to ~ourt of civil appeals. Th~re are eight courts of c:lvtl appeal • each 10 separate districts. to which all civil appeals from the district and county courts are taken. There ls one supreme court sitting at Austin to which certain characters of cases can be brought from the court. of civil appeals by writ of error granted by the supreme court. In each county there must be a.s many as two terms of the district court each year, ancl in a number of more populous counties there are from four to seven terms each year. At leru t four sessions of the county court in each c untr must be held each year. In a number of the parsely settled counties the civil jurisdiction or the county courts, except a to probate matters, bas been transferred to the district court. Justices of the p ac-e and clerks of the courts are required to file and docket all suits tendered, but can not be compelled to take any further action unle. the costs are secured. Creditors' Bill. superseded in Texas by . tatutory proceeding of garnishment. (See. Garnishment.) Davs of Grace. Three are allowed on all hills of exchange and promissory notes a.ssignal.Jle or negotiable by law. Note.payable on demand is not entitled to day. of grace. When a note is payable so many months after date. the note will become due on the days of the  month corresponding with the day of the date; that il, if it be dated on the tenth day of the month it will become due on the tenth, to which the days of grace are to be added. When a bill or note is payable a. certain number of days after date, after demand, or sight, the day of its date, etc., is excluded in computing time. Limitation does not commence to run on commercial paper until the expiration of three full days after the day of maturity. Deeds. (See Conveyances.) Depositions. All witnesses' depositions may be taken. The deposition of a party to a suit, except where either party is a corporation, may be taken by the adverse party, ex parte, and without notice. To take the deposition of any other witness, it is necessary that the opposite party, or his attorney of record, shall be served with notice. stating name and residence of witne s, together with copy of interrogatories, five days before the commission will issue. Officer taking deposition must subpoona witness not less than five days before taking deposition, giving notice also of time and place of taking to each of the parties or their attorney of record, and written interrogatories mlLst be propounded sereatim and witness not allowea to be advised of contents of interrogatory until so propounded. The testimonv of witnes: es may be taken orally, provided they be within one hundred miles of the court in which the suit is pending. Also, they may be taken orally at points_ more distant tha!} one bun~ed mile when the Court may upon apphcat1on so order tt. In takmg the deposition, the officer will make a caption stating the number and style of the ca e, the residence of the witness, the official title of the officer, etc., as is usual, and after swearing the witness, will proceed to take his answers to the several interrogatories and cross interrogatories separately. When the same have been so reduced to writing. they shall be signed by the witness, and the officer shall affix his jurat showing that they were sworn to and subscribed before the officer by the witness. In addition, the officer shall attach a certificate under his seal and official signature, showing that the answers of the witness as made were signed and sworn to by the witness before him and that said answers were reduced to writing by him or under hi. direction. The depo ition with the com.mi ion and interrogato_rie mus~ be sealed in an envelope, and the officer's name must be written officially across the seal. The envelope shall be addre ed to the Clerk of the Court from which the commission issued, and should have on it the amount of the fee, the number and style of the suit and the name or the witness, and a certificate by the officer, under the seal of hl;S office, stating that he in person depo 1ted the same m the U. S. Mail (giving the postoffice) for transmission on the ..... day of ..... .......... 19 ....  1  Descent an(l Distribution of Property. Separate, real, personal, or mixed property, when deceased leaves no husband or wife, descends: To his children and their descendants; if none such eicist, then to father and mother in equal portions; if only father or mother survive, then such survivor takes one-half, and the other half goes to the brothers and sisters of deceased and their descendant , if none of the latter survive, the parent then living takes the who!e: if neither parents, nor sisters or br:ot~ers or their descendants urv1ve, t~en the estate goes in equal moieties to the paternal and maternal kmdrea, i. e., to grandfather and grandmother of each side and their de cendants; if one be dead, and ha.Ye no de ·cendants, then the whole moiety to the survivor. and so on to the nearest lineal ancestors and their descendants. \Vhen deceased leave husband or wife. the estate descends. when there are children. one-third of personal property and life estate in one-third of real e tate to bu.sband or "ife, balance of personal and real estate, as well as remainder to child or children. If deceased leaves no child or children, husband or wife takes all personal and one-half of real e. tate, the other half goes to the father and mother, etc., under the general rule above as to descent. but survivin11; husband or wife takes all. in ca.,;e neither father or mother, nor si ter or brothers or their de ·c-endants surnve. Commuunity property goes entirely to surviYing hw band or wife, when there are no children or their de. cendants, but if there are such, the property goes one-half to surviving spouse and the other half to the children and their descendants. Dower. The right of dower does not exist in Texas. Evidence. Parties can testify in their own behalf but not as to transactions with or statement. by a deceased party in suits to which heirs as such or executors, administrators or guardians in their official capacity are parties. (See Depositions.) Exe<'utions from district and county courts issue after adjournment,, and may, on application of ucce,. ful party, i ·sue twenty days after judgment, if no upersedea.s bond has been flied and approved; from justices' court, on the eleventh day after judgment; in all, upon plaintiff, his a~ent or attorney, making affidavit to certain facts, shall issue forthwith. No redemption of land sold under exe<'ution. "The time and place of making ale or real estate in e cution shall be publidv advertised by the officer for at lea ·t twenty days .·ucce-;.;ively next before the day of sale, by postine: up written or printed notices thereof at three public places in the county, one at whi<'h -;hall be at the door of the courthouse or the county, and by delh·ering to the defendant in execution one copy of . aid notire of sale. whenever he resides in the county where the land is -;ituated, and hall mail a similar notire to the attorne~• of record if any, for uch defendant in every ca.se; and if . uch defendant re ·ides out of the county where the land is situated, the officer hall mail to him a similar notice, directed to him at his postoffi<•e, if known to such omc .r, and if bis residence ls not known and he has no attorney of re<'ord, the posting of the first three notice shall be ufilcient; provided, that whenever real property shall be le\·ied on by virtue of an e_-ec11tion, O" s•,all be the .·ubject of any order of sale or ...-enditionl expona ·. if tho defendant shall, at any time prior to and not later than five days after rec.eiving notice of the levy of any execution or i. suance of order of sale or venditioni exponas, request the clerk or ju,stice of the peace issuing such execution, order of ale or venditioni exponas or tbe omcer making the levy or holding the proce :, that noti e of the ale be published in a new paper, the same hall be .-o pul>lbhed, if there be a newspaper published in the county that will publl b the . ame for the compensation allowed herein; when aid reque:t i: fll d the officer shall, under the provisions of thi. article, publish notic-o of the sale in a newspaper publi."hed in the county for three con eruti\ e weeks. ,'aid notice shall contain a tatement of the authority by virtue of whic'h the sale i. to be made: the time of le,·y anrl the time and place of sale; it shall also contain a brief de.·cription of the property to be sold, and shall give the number of arre.. orie;inal urvey, ln<'ality in the county, and the name hy which the land ls most generally known, but it ·hall not be nece · ary for it to contain field note·." .Jude;ment becomes dormant if execution be not i. sued thereon within twelve months. If exeC'ution do issue ithin twelve months anu her may be i:su d at any time within ten years, and by ·o i ·:uin$! within eacb ucceeding ten year from date of last i. suance, a Judgment may be continued alive. E emption. . By the con. titution of 1 76, the home tead of a family not in a town or city con ·i ·t of 200 acre· of land, ,-hich maY be in one or m re parcel .. with improvement! thereon. In a city, town, or village it con ists of a lot or lo not to e c d 5.000 in value at the time of their designation a the h me. tead, .·clu ·ive of improvements, provided the . ame be w ed as a home, or ~ a place to exercise the calllng or busine · of the head of a family. The homestead  BANKING AND COMMERCIAL LAWS-TEXAS is protected from forced sale or incumbrance except for taxes, or for the purchase money, or for improvements thereon, and in this last case, only when the work and materials are contracted for in writing in advance, with the consent of the wife, given in same manner as required in making a sale of homestead. In case of death of the husband, the widow and children have one year's support from the estate, allowance therefor in no case· to exceed $1,000, and if the property exempt by law does not exist in kind, a sufflciency of the estate may be sold for cash, to raise allowance for homestead, not to exceed $5,000, and for other exempt property not to exceed $500. All household and kitchen furniture, all implements of husbandry, all tools and apparatus belonging to any trade or profession, all books, five milch-cows and calves, two yoke of work oxen, two horses and one wagon, one carriage or buggy, twenty hogs, twenty sheep, all provisions and forage on hand for home consumption, current wages for personal servic-es, and sundry other articles, are also exempt  f:~r;t~n~o~iis~?b~f<ll1~l~~d ~~~di~; e;ir~e~i~~=na~~!r!~~ a11n~oifo~  lots in a cemetery for sepulture; all toolc;, apparatus, and books belonging to his trade, profession, or private library. Current wages for personal services are not subject to ,z:a.rnishment. Exempt personal property may be made subject to valid liens. by contrac-t. Foreign Corporations, except railroads, can file their charter in office of secretary of state at Austin, Texas, and on payment of fee get a ten-year permit to do business in Texas. Foreign corporations doing a strictly interstate and commerce business in Texas do not have to file charter or get permit. Should a foreign corporation. without procuring permit, do other than interstate business in Texas, it will be denied the right to file suits in State Courts. (See Corporations.) Foreign Judgments can be sued on in Texas. Fraud. Every gift, conveyance, ~ signrnent, transfer of. or charge upon any real or personal property, or suit commenced, decree, judgment, or execution suffered or obtained, and every bond or other writing given with intent to delay, hinder, or defraud creditors, purchasers, etc., is void as to them, excepting as against innocent purcha.'>et-s for value without notice. Gifts, conveyances, etc., not upon valuable consideration, are void as to then existing creditors, unless debtor bad then enough additional property subject to execution to pay his debts existing at that time. Futures, Dealin~s in, with no intention of actual delivery, made  :i ~~;ri~t  ~~t~?'1~i1v~~; gf  ~:~~~~\~fr~~~s ~~r~ r~~~~t ;:: fgf the article. Garnishment. 1\1:ay issue either before or after judgment to attach moneys due by garnisher to debtor or effects of debtor in hands of garnishee. Except after judgment a bond in double amount of debt must be given. urrent wages are exempt from garnishment. The proceeds of the sale of the homestead are exempt for -ix months. Guarantee Companies must have at least 100,000 paid-up capital; must deposit at least $100,000 with some state officer in ome state of the United States; must dep0sit $50,000 good securities with trea.'>urer of State of Texas, must designate to commissioner of insurance of Texas ome one on wbom service of legal process can be made, can make statutory bonds in Texas. Holidays. January 1st, February 22d, March 2d, April 21 t, June 3d. July 4th, first Monday in September, October 12th, December 2,3th, all days appointed by the President of the -United States or Governor of Texas as days of fasting or thanksgiving, and the days on which an election is held throughout the State are holidays, which shall be treated as undays for the purpose of presenting for payment or acceptance. and protesting and giving notice of dishonor of negof:ia~\~f;if~~!~~it1~i!~;u~}s s!f3 ~r~i~;Jt~~s~~d~~l g;e~e:fCJf; thereafter is holiday. o ciYil suit shall be commenced, nor shall any process be issued or served on Sunday or any legal holiday, except in cases of injunction, attachment, garnishment, sequestration, or distress proceeding. Husband and Wile. All property, real or persc;mal, of either spouse owned or claimed before marriage and that acquired afterwards by gift, devise or descent, as also the increase of all lands th~ acquired, and the rents and resources derived therefrom, shal~ const1t~te the separate property of such spouse. All property acquired durmg coverture by either spouse. except such as is the separate ~roperty of the one or the other is community property. During marr1aire the husband shall have the sole management, control and disposition of h~s separate property, and the wife the sole management. cont~o! and disposition of her separat,e property, except, however, that tll;e ~01nder of her husband is any encumbranc-e or conveyance, of the wife s la~d shall be nec-essary and the joint signature of the h~hand and wife shall be nec-essary to transfer st.ocks and bonds belongmg to her. The husband shall ha,e control of the community property except ~he personal earnings of the wife, Interest on bonds a!]d notes belon~ing to her and dividends on stocks owned by her. which shall be subJE;Ct to the' control, management and dic;positio~ o~ th':' wife a.c; aforesaid. Funds deposited in any bank or banking mst1tut1on in th~ name of either the hui-band or the wife shall be regarded as be_longmg to and subject to the control of the party in who. e name deposited, regardless of who shall have made the deposit. Neither separate property of the wife nor the rents from the wife's real estate nor interest on bonds and notes belonging to her, nor dividend on stocks owned by her nor her personal earnings, shall be subject to the payment of debts contracted by the husband. Injunctions, statute as to, is almost entirely declaratory of equity rules and practice. Insolvent and As ignment Laws. The statute prc:>vides for a g<:neral a.">Signment by an i~solvent debtor. 1he ass1gne~ must, w1t111n thirty days give notice to all the creditors. Creditors . to share in the benefits must accept withip fou_r mon~hs_. an_d file with the assin-nee verifled statement of their claims w1tbm six month<:. Moneys "'mm,t be distributed by the ac;signe~ whenever he has a· m~ch as 10 per cent of all properly proven claims on band after paymg expenses. Assignee mu •t file sworn report wit~ t?e county C'lerk, and any opposition to this report must be fll~d WJthm twelve months after filing. Preferences not allowed. No discharge of ~ebtor u_nless the e tate pays as much a 33 per cent to all acceptmir creditors. As a general assignment is an act of bankruptcy, the bankrupt act has practically done away with the tate assignment law. Insurance Companies. Apply to commissioner of insurance for copy of the law, as it can not be condensed. Interest. Legal, 6 per cent; conventi_onal up to 10 per cent. Open accounts, no rate agreed upon, legal 1nt_erest from January 1st thereafter. Judgments bear rate stipulated m contr3:ct sue~ upon. and 6 per cent when none stipulated for. Usury forfeits all mterest. Where usurious interest bas been paid, double the amount may be recovered by suit within two years. Judgment Lien. In federal, district, co~nty, and justice courts a Judgment is a lien on debtor's real estate m an;v county where an abstract of judgment shall be flied and recorded m a book kept for that purpose. in the office of county c-ourt .cl~rk and properly inde~ed and cro. s-indexed in the name of each plamt1ff and defendant. . Lien takes effect from date of record and index of abstract, and contmues 0   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  !953  for ten years, unless plaintiff fails to have execution issued within twelve months after judgment. A transfer of a judgment when acknowledged. as required for deeds, filed with the clerk of court in which recovered and by him noted in the minute book of the court, is constructive notice to, and valid and binding on, all persons subsequently dealing with reference to the cause of action or judgment. Jurisdiction. (See Administration of Estates, Courts, Divorce. Notes and Bills of Exchange.) Liens. Exempt property, excepting homestead, and all other property is subject to lien by contract, saving a stock of goods daily exposed to sale where change of possession is not contemplated. The homestead is subject, however, to lien for taxes, vendor's lien, and mechanic's lien, if the latter is fixed by prior contract and wife's separate acknowledgment thereof. The statutes provide further for mechanic's liens, for liens in favor of hotel and boarding-house keepers, and for liens on vessels. Limitation to Suits. Written coutracts, four years; accounts, other than open accounts between merchant and merchant, their factors and agent,s, two years. Mortgage lien barred with the debt, but new promise which revives debt, and which must be in writing, revives mortgage. Renewals of mortgages or other liens affecting real estate must be recorded to be effective. Limitation must be pleaded. Does not run during period of absence of debtor from State, nor against minors, married women. and persons non compos mentis. Married Women. By an Act of t,he Legfalature which went into effect July 1, 1913, married women are given certain rights to contract. This act was amended by a later ac-t, which went into effect June 21, 1917. Previous to the former Act, they had no right to contract save for nec-essaries for themselves or children and for the benefit of their separate estate. These Acts of the Legislature have not yet been considered by the courts and the exact extent of married women's right to contract is not yet known. Contracts made by a married woman may not be enforced against the separate property of the husband nor against the community property other than the personal earnings of the wife save when the contracts are for necessaries furnished her or her children. A married woman shall never be a joint maker of a note or surety on any bond or obligation or another without the joinder of her husband with her in making such contract. (See also Husband and Wife.) Mines and Mining. There are statutory provisions as to minera lands of the State, but too lengthy for the compendium. · Mort~ages. No mortgage or other voluntary encumbrance of the homestead, except for labor or material used in its improvement (as to which see exemptions and liens supra). is valid. Notaries appointed by the governor and approved by senate; hold office for two years and have seal or office. Notes and Bills ot Exchange. Commercial paper is anythin~ 0 ft r:i'{~fintzeet:;:~Y~h a~Yat1t°a:&wor:18:;~agi'e~ngli.~l\~ th~e\'f:te. Unless otherwise provided in the paper. it will be ~nsidered payable at the re idence of the maker or acceptor, or other person bound. The liability of any drawer or indorser may be fixed by instituting suit against the acceptor or maker, before first term of district or county court, to which suit can be brought, or before second term, showing good cause why not brought at first term; within jurisdiction of just.ice. suit must be brought within sixty days. Protest: Such liability may also be fixed by protest, according to the custom ot mercbants. The holder of a protested draft or bill, drawn by a merchant in t,his State, upon bis agent or factor without the State, may recover 10 per cent damages thereon, besides interest and costs. Days of grace (three) allowed on all negotiable instruments, except paper payable on demand, unless waived in the instrument. Attorney's fees may be stipulated for in note and recovered in case or suit. Paper falling due on Sunday, or a holiday, must be presented for payment or acceptance on the day following such holiday, If not entitled to days or grace. If entitled to days of grace and third day of grace falls on Sunday or a legal holiday. the paper is due on the preceding day. Partnerships, Limited. Statutory provisions for record of certificate by which the special partner is limited in his liability to the capital ·named as amount to be contributed. Powers ot Attorney, if intended to effect title to real property, should be acknowledged and recorded like a deed to real estate. Revocation should be made in the same way. Private Seals. Abolished February 2, 1858, except as to private corporations. Probate Law. (See Administration ot Estates.) Promissory Notes. (See Notes and Bills of Exchange.) Protest. The holder of any bill of exchange or promissory note assignable or negotiable by the law merchant, may also secure and fix the liability of any drawer or endorser of such bill of exchange or promissory note for the payment thereof, without suit against the acceptor, drawer. or maker, by procuring such bill or note to be regularly protested by a notary public for non-acceptance or nonpayment, and giving notice of such protest to such drawer or indorser according to the usage and custom of merchants. No legal advantage in protesting negotiable paper where there is no one secondarily liable. Records. Deeds, mortgages, and other liens must be recorded (See Acknowledgments, Chattel Mortgages). Redemption. None allowed as against forced sales. Service. Citations must be served ten days before first day of term of court to require appearance and answer to that term. Suits, Where Brought. The rule ls that a resident of the State should be sued in the county in which be may reside, but there are numerous exceptions, among them being suits brought on written contracts, providing where they are to be performed-which may be brought either in the county of the defendant's residence or where  lt!!  finistf~r~~~a~;es~:d ~:~~ ~ra~s ~~~ty _Tfii':i~g~ g~f:nf!'J';~~i~! another county. This enables parties to concentrate their collec-  tions. A party sued in a C'ounty other than the county of his residence, must claim the privilege to be ued in his own county, otherwise the court has jurisdiction to try the case. Taxes. Non-residents may pay state and county taxes to the comptroller of the State. at Austin, on or before December 31st. next after assessment. Taxes are a lien upon land until paid. Taxea become delinquent, and forced collections of same begin on and after first day of January next succeeding the year for which they are a.c;sessed. Owner has two years within which to redeem land sold for taxes, by paying to purchaser double the amount paid for the land. Testimony. (See Depositions.) Transfer of Corporation Stocks, Such stock is transferable only on the books of the corporation in such manner as the by-laws may direct. Trust Companies may assume banking privileges; can act aa trustees. executors and a.gents.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1954  BANKING AND COMMERCIAL LAWS-UTAH State to the Injury of his credltorq. or who stands In defiance of an officer or conceals himself so that process cannot, be served on him, or  Warttbouse Receipts. In the fall or 1914, the State was authorized to establish emergency warehouses. This law continues for one  ~ ~~r~~1i~:dc~dl~~~ ~~~~ott~i~~~ife~lfl~~~:rr:Kt,~~rfh! incurred the obligation respe<'ting which the action is brought. Proces.s issued by clerk on receipt of amdavit made by or on behalf or plainUtJ. and on the filing of an undertaking on the part of the plaintiff with sufficient securities in a sum not less than $200 in district court and $50 in justice court and not less than the claim. Banks.-Corporations to conduct commercial and savings banks, or banks having departments for both classes of busin~ , may be formed by any number of persons, not less than five at least one of whom shall be a resident of this State. The capital stock shall not exceed Sl,000.000. The subscribed capital stock shall not be le.s than $20,000. In cities having from 5,000 to 25,000 inhabitants, not less than $50,000, and in cities having from 25,000 to 50,000 Inhabitants, not less than $75,000, and cities having more than 50,000 inhabitants, not less than $100,000, nor shall the certificate of incorporation be issued, unless it shall appear by affidavit of at least three of the incorporator ·. that the proposed corporation has the requisite amount of subscribed capital stock, and that at least 50 per cent of the capital stock ha.~ been paid 2 ~~~~ ~~ ~~:-incft~J~ ~a~1\:l~a.~Pfei~~N: ~~~a;~u~:tc~l~~~o  J:~~  11  L~~~h::i1!.; ~r:gi~:e:s\:iiir::igs~;~~1~:ru~~sb~~~a~~~~yin~:f~ certain statutory requirements as a private enterprise. The law authorizes the issuance of negotiable and non-negotiable receipts. and proviues that the character of receipt shall be plainly placed upon the same. Negotiable rec·eipts are tran~ferable like other negotiable !:}6~fi~::i-J~d t~Er~fc~1(Jt i=h~°J ~s~est~~;i~: f!:te ~ftin r~;;;tti whether there is any mortgage or other lien upon the property so warehoused. Caution should be exercised in accepting warehouse receipts without inquiry with respect to whether the warehouse company issuing same has in all respects complied with the law. Wllls. All adult persons of sound mind may dispose of their property, real and personal, as they cboo e. A will must be signed by the testator himself, or 1n bis presence, by bi,; direction, and, unless wholly written by him.self, signed by two witnesses In his presence. .Application for the prohate of a will must be made to the county court or the proper county within four yeaN from the date of the death of the person making it. A will which bas been probated in another state or country can be probated here. A duly certified copy or such will may be filed and recorded, and have the same effect as the original will, if probated here. Real estate can not be devised by a nuncupative will.  ;1cf:f  :ii~ir ~~yos~~,; r:~e~b!!· 00 iio~805~e ¥lrf~~1 a~b~ig:ri~?o~ a~lia~a~  paid in instalments of not less than 10 per cent per month. Loans to officers and directors in excess of 15 per cent of the capital st,ock and surphL'- are prohibited, and the capital stock of the bank shall not be taken as security for such loans. All loans to officers must be secure>d 1n double lhf' amount of the loan and must be approved by a two-thirds vote o~ the directo~s or executive committee, on which vote, the officer or director securmg the loan shall not participate. The total liabilities of any bank to any person, company, corporation or firm for money borrowed, shall not exceed 15 per cent or the capital stock and surplus. Stockholders are liable In double the amount of their stock for all debts. Savings banks are prohibited from borrowing money (except public money·) or pledging . ecurities, except to meel Immediate demands of depositors, and then only upon a resolution adopted by a majority or the board of directors or execut iYe committee, duly entered in their minute - with the ayes and nay'> recorded. The estahlishment or maintenance of private or partnership banks are prohibited. Foreign banks are required to comply with all provi. ions of law relating to private corporations and domestic banks, including the payment, of capital stock in this State. Commercial banks are required to maintain a reserve fund equal to 15 per cent of depo. it and demand liabilities. one-eighth in lawful money of the United ~tates on hand and the balance in credits In solvent banks. other than savings bank'>. ln cities having a population of 50,000 or more, the reserves shall be not less tban 20 per cent. a\'inJ.?s banks row t carry in ca.o;;b or equivalent 10 per cent of its dE-vosit liabilities. one-fourth of which must be in lawful money, and the remainder in credits in solvent banks other than . a ,·ings hanks. Banks having both commercial and savings departments are required to maintain reserve for each department. A director must own stock of the par value of at least 200 in his own right. In cities of the first and second class, the ·tock owned by directors must be of the par \'alue of $500. The board of directors or a committee thereof of not less than three members shall at least once in three months examine the loans and Investments made since the 18! t meeting. A thorough yearly examination of the affairs of the bank with a special view to ascertaining the value anct ecurity of loan , discounts and overdrafts is required. and a report made to the state bank examiner One-tenth of net profits shall be carried to a surplus fund until such fund amounts to 20 per cent of the capital tock.  SYNOPSIS OF  THE LAWS OF UTAH RELATING TO  g~~tt~!  BANKING AND COMMERCIAL USAGES Revised by MESSRS. BooTa, LEPJ, BADGER, and Rrca, Attorneys at Law, Salt Lake City. (See Card in Attorneys' List.) Action!!. There is but one form of civll action and that ls prescrihed by <itatute. When required by defendant non-resident plaintiff must inve bond for costs. Admlnh1tratlon of Decedent!!' E!!tates is had In the district courts. ('reditors have two months in which to present rlaims in estates leis than $10,000, in larger estates. four months. Non-resident creditors may present claims after the expiration of said time and before the e~tate b closed, providing they can show tbat they had no notire or knowledge o( ,,;aid time llm!t. Letters testamentary and of administration are granted by the district court of tbe proper county. Applicants for letters of administration are entitled th~r~to, other things being equal, in the following order: 1. The 1mrv1vmg husband or wife, or some competent per;>0n whom he or she may request to have appointed. 2. The children. 3. The father or mother. 4. Brothers or sisters. 5. The grandchildren. 6. The next of kin. 7. The creditors. 8. Any other competent person. A surviving partner cannot be appointed administrator of bis deceased partner's estate. Affidavit!! may he taken before any notary public. judge, or clerk of a court, of record having a seal. When an affidavit is taken before a judge or clE'rk out of the date, the exi ·tenre of the court, and the fact that such judge I!! a member thereof, must be certified by the clerk of the court under the seal thereof. Allens have same property right as citizens. Arbitration, In all ca..i;;es except where the title to real property is Involved may he had in the manner provided for by the code and the award may be entered a.c, a judgment. Arrest. A Judgment creditor may obtain the arrest of an ab~cond1ng debtor by making the proper showing to the court and furmshlng a bond of not less tllan 500. Asslj..'llment!!. Any insolvent debtor may make an a.'>1 ignment for tbe benefit of his creditors and may be with or without preferences, which ru ignments are administered by the di trict courts. Amounts owing for rent or wages are preferred by law. Assignment is void for fraud or If It gives a preference upon any condition or contingency. Attaclunent may Issue on any day in an action upon a contract or Judgment which Is not secured by mortgage, lien, or pledge, upon real or personal property situated in this State. or if so secured, after the security has. without any act of the plaintiff or the person to whom the security was given, become valueless, against a non-re&ident defendant, or against a defendant who has departed or la about to depart from the  n:!/~!  0  ;l~ta~~h:fa1;: a'1J'J~~~~fgg ~o;pl~~~~~;r saft;n~~ possa sion of the books and B! ·et of the bank. Upon payment of creditor::,, and the expense of receivership and the making good of the impairment of the capital tock, the property of the bank shall be returned to the bank or to the stockholcters. and Tot leis than four reports each yea,r the receiver hall be discharged. shall be made to the bank commissioner, which said reports ·ball be published. , pecial reports may be called for. Penalty of $50 for each day's delay in transmitting a report I. imposed. The bank commissioner shall approve of articles for the incorporation Qf banks. Blue ky Law. Every person, firm or corporation enga11:ed In the business within the tate of Utah of selling or negotiating for salP of any securities, i. ued by him or it i. defined as an Inv ·tment company and i required before selling or ofrering for :ale or exchange within the , tate of Utah, of any ·ecuritie to tlle under oath upon forms prescribed by the ,.ecuritles ommi. sion, a i;tatement containing detailed information with referenre to the busine ~ of the lnvestth ~ fc;: ~~~t oio~~a&~ea~~l~~ gr~hae f::ct~i~~e ~to~~~~ic:i~e-ii~. eign Investment company, it i. required to appoint a dome!'.tic process agent Uren. ed for a period of one year, whlcb agent I· required to pay an annual licen. e fee of $5.00. Every investment company ls required to make an annual report setting forth the condition of the company. Every person or corporation selling or ofl'erin11; for ~ale ecuritlea i. sued by any other person or corporation i. defined as a dealer and i required to pay a Ileen e fee of 10 and to deliver to the omml.!· Ion a bond or 5.000 conc.lltloned upon the faithful complian e of the provi. ions of Jaw and available to any person who may uffer loss by reason or non-compliance. Dealers are required to keep book8 or account. The comm! Ion i given power to w pend the license of any dealer ho ls In. oivent or Ii doing buslne s in ";olation of any or the pr ,vision'> of the act. Any ter on who knowingly ma.kes or  f/  0  1  ~f~ffu1tl~  gp~:!;h~~r~':fra~i~~~:~~~;;~~n!;1fu~h es~~~ncc~~ia?n°~i~~~e exaggerated statement or which l intended to give or ,;ball have a tendency to give a l~·s or greater alue to securitl or property of any person or corporation. hall he deemed guilty of a felony. Bucketing contracts are defined and are declared a felony. ADY contrarts of Rale in violation of the term of the law are declared unlawful and every agent of any lnvestmen company or dealer guilty: of an unlawfuJ sale i lial)le to the purchaser of curitle in a civil action for the purchase price paid and all damages without proof of actual or constructive fraud. Collateral. There are no statutory provisions peculiar to thia subject. Collection A encles are required to give bond for faithful perform• ance of contract.s. Competition (Unfair). Unfair competition, I. e., cutting or pricel to destroy competitor ls prohibited.  BANKING AND COMMERCIAL LAWS-UTAH Conditional Sales. There is no statute on the subject. The sup~eme C(!urt has held that~ conditional sale is good and valid as well agamst third persons as agamst parties to the transaction and that such bail~e of pers~nal property or. conditional purchaser cannot convey the title or subJect 1t to execution for his own debts until the condition on which the agreement to sell was made has been performed. Consignments. There is no statutory Jaw regulating. Contrac_ts. A statute provides that contracts by telegraph are deemed ~itten .. The power to contract inheres in the same persons ~~~~~~;1!~1 f !~J~~ common law, except that married women may  1  The statute gives the following forms: W ARRA TY DEED A. B., grantor (here insert name or names and place of residence), hereby conveys and warrants to C. D., grantee (here insert name or names. and pla<:e of residence), for the sum of . . ... . . . dollars, the follow1Dg described tract .... . . . .. of land in . . . . . . . . . ... County ' Utah (here describe the premises). Witness the hand of said grantor this ........ . ... day of . . ....... . A. D. 10 .... SucJ:i deed has t~e effect of a conv~yance in fee simple to the grantee, his heirs. and assigns, of the prenn es therein named, together with all the appurtenances, rights. and privjleges thereto belonging, with covenants from the grantor, his heirs, and personal repre ·entatives that he is lawfully seized of the premi es; that he bas good right to co~vey _the same; that he ~arantees the grantee, hi, heirs, and as.signs I'? the qmet po. e s10n thereof; that the premi. es are free from all 1m;umbranc-es; and that the grantor his heirs, and personal representatives will forever warrant and defend the title thereof in the grantee, his heirs, and assigns, against all lawful c-laims what~oever. Any exceptions to such covenants may be briefly inserted m such deed following the description of the land . QUIT-C'LAIM LAND A. R .• grantor (here Insert name or namt's and place of residence), hereby quitclaims to C:. D .. grantee (here insert name or names and place of residence). fur the sum of. ...... dollars, the following described tract. .... . ...... . . of land in ............ County. Utah, here describe the premises). Witness the hanct of said grantor this ............. . day of .... . .. . A. D. 19 .... And such deed when exec-ute<l as required by law shall have the effect of a conveyance of all ri~bt, title, interest, and estate of the  Conveyances.  r::!~  !~~~t!~!n~~~~\~=~e~ ~~1~~i~;i~rdth~~a~~ ~if~~~-l~~~= 0  0 ~~~  veyance.  MORTGAGE A. B .• mortgagor (here insert name or names and place of residence). hereby mortgages to C. D ., mortgagee (here insert name or names and place of residence), for the sum of ...... . ... dollars, the following tah described tract . . ..... . . of land . ....... in ......... . County, {here ctescrllJe the premises). This mortgage is i;?:1ven to secure the following indebtedness {here state amounts and form of indebtedness, maturity. rate of interest, by and to whom payahle, and where). The mort-gagor agrees to pay all taxes and a1 e ments on said premises, and the sum of ......... dollars attorney's fee In case of foreclosure. Witness the hand or said mortgagor this ......... day of ........ . A. D. 19 . . .. And when executed as required by law. shall have the effect of a conveyance of the land therein described, together with all the rights, privilege·. and appurtenance- thereunto belonging, to the mortgagee, his heirs, assigns, and legal representative., for the payment of the indebtedness therein set forth. with covenant from t be mortgagor that all taxes and as.,;essments levied and assessed upon the land described. during t-h e continuanee of the mortgage. shall be paid previous to the day appoiuted for the sale of such lauds for taxe-. and may be foreclosed as provided by law and with the same effect, upon any default. being made in any of the conditions thereof as to payment of either principal, interest, taxes. or a. sessments. Statutory forms of acknowledgment are as follows: PERSO AL Where grantor is known:  ?~~1:[a~foi.'.":::::: ... .,  A. D. 19 ..... per onally ~t:\eb~~-~~~~•. appeared before me, A. B .. the signer of the above instrument, who duly acknowledged to me that he executed the same. PERSONAL \Vhere grantor is unknown:  of: ::: ::: :.... ,  A. D. 10 •... , perso?ally ott\tf!. ~ta~.'. ~~~~-taa;f appeared before me, A. B., satisfactorily proved to me to be fhe su~_ner of the above instrument by tho oath of C. D., a competent and credible witness for that purpose, by me duly sworn, and he, the ·aid A. B., acknowledged that he executed the same. CORPORATE  ~~\eh~~-~~~•. ?.~~~t~fof .' .':::: .' .' .... , A. D. 19 .... , personally appeared before me A. B., who, being by me duly sworn (or affirmed). did say that he is the president (or other officer or ag~nt, as the ca e may be) of (naming the corporation), and that said I!)- trument was igned in behalf of said corporation by authority of its by-laws (?r by resolution of its board of direetors, as the Ca! e may be). and said . B. acknowledged to me that said corporation executed the same. To opernte as notice to third parties, a deed must be rec~rded at the office of the county recorder in which the property 1s -1tuatf:d; but is binding between the parLies and to all others who have notice without record. Powers of attorney affecting real propert.y must be acknowledged and recorded as deeds, and revocation, to be effectual, must be recorded. The use of a private eal Is unnecessary. Witne ·ses are not required. Cor1loratlons may be formed by any number or persons, not le s than five one of whom must be a resident of tbis tate. They sh9:ll enter into an agreement in writing, which agreement must contalll certain tatutory provisions and such other mattery as may be agreed upon by the incorporators. At least three of the rncorporator mu t subscribe to aa affidavit before a notary public of t~e county wherein they intend to e •tablish their principal place of busm_e.• to the effect that they intend to carry on the business mentioned m the agr~ment and that each party has pa.id or ls able to pay the amoun_t of h1 · ubsc-rlption. At least 10 per cent or the stock must be p~1d fo~ before Incorporation. The stock can be paid for In property, ID whiqh case tho property must be described in the agree~ent, and except m case of corporation organized for mining or irrigatmg purpo -ei; shall be supplemented by the affidavits of three perso~ t? the effect that they are acquainted with said property and that 1t 1s reasonably worth the amount for which it was accepted hy the corporati(?D. The agreement and oath must be flied with the 1•lerk of the count.y ID ~hich the general buaines.s is to be carried on and a C(?PY mu 't be filed w1th the ~ecretary of state. The offJcers must subscribe to an oath of office which must be flied with the county clerk. Corporations so formed have general   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1955  pow~rs. (',,. corporation is allowed to continue its existence the period provided m t~e ch~rter for th~ purpose of winding up its business. A corl?orat1on hcense tax is levied on capital stock, graduated from a mmimum ~ax of $5.00 for an authorized capital stock of $10,000 g~J:ss.i.tio~o1b18:xrmum tax of $250 for an authorized capital stock of The foregoing tax is due on the 15th day of November of each year. I! no_t .paid before t,he 15th day of December following, the corporat10n ~s m def!1ult and a penalty of $10 is imposed; if the tax and penalty 1s not paid on or before the first Monday in April following the right to do business within the State of Utah is forfeited. • On or before the first d!"-Y of July following the first Monday in April the f~::;ng!n~tfes r:~cr::;e~!s. defaulting corporation paying all back  Corporations, Foreign, doing business in this State are required to file with the secretary of state and with the count,y clerk of the cou?tY where.in thf:ir principal o~ce in th~ State is situated, certified copies of their articles and certificate of mcorporation and by-laws and shall by resolution of the board of directors accept the provisions of the constitution of this tate, and shall also designate some person resid~g i~ the count,y in which its principal place of business in this S_tate 1s situated, ~pon whom process may be served, which designat10n shall be flied with the county clerk of said county and the secretary of state; service of summons upon such agent shall be deemed ervice upon the corporation. Any corporation failing to comply with these provisions shall not he entitled to the benefits of the laws of this St!1te relatin~ to c~rporations, a~d shall not sue, prosecu1 e, or maintam any act10n. suit, counterclaim, cro. s-complaint, or proceeding in any of the courts of this State; on any claim. interest or demand arising, or growing out of or founded on any contract. agreement or transa~tion 1:11ade or entered into in this State by such corporation or by its assignor, or by any person from, through or under whom it derives its interest or title or any part thereof and shall not take acqujro or h?ld. title! possession or ownership of p~operty. real, personai or mixed, w1tb1n tb1s State: and every contract, agreement and transaction whatsoever. made or entered into by or on behalf of any such co~poration, within this State_. or to be executed or performed within this State, shall be wholly vmd on behalf of such corporation and Its a.ssiguees and every person deriving any intere;;t or title therefrom but shall he valid and enforcible against such corporation, assignee and person. Any ae:ent acting for a foreign corporation whii::h has not c-omplied with these provision,; is guilty of a misdemeanor and is p_ersonally liable on contracts mat.le by him for it. Foreign corporat10ns are granted powers of eminent domain on same <'onditions as domestic corporations. (See Corporations for License Tax.) on-resident plaintiffs may be required to give security for Costs. costs. C'ourts. District courts have original jurisdiction in all matters of law and equity and in all matters of probate. and hold three or more terms a year in each county. Provision is made for city courts in the larger cities. and in Salt Lake City the city court ha.s civil jurisdiction in cac;es where the amount involved does aoL exceed $500. Justice of the r>eace courts have jurisdiction where the a.mount involved is less than $300. Depositions may be taken upon oral interrogatories upon written notice to the adverse party, specifying the time and place of taking such depositions, the name and official character of the person before whom such depositions are to be taken, the names of the witnesses to be examined. Said notice mu t be ervod at least ten days previous to the day of taking such depo. itions, with one day added for each 200 miles intervening between the place of trial and the pla<'e of taking such depositions. The statute also provides a method of taking depositions on written interrog-at,ories and commi,sion issued out of the court. Descent and Distribution. ( ee ucce '"ion.) [~ ote-In lieu of the common law designation "Descent and Distribution" the civil law ti1,le of "Succession" is used in the Utah statute .] Dower is abolished. In lieu thereof the law provides that onethird in value of all the legal and equitable estat-os in real property possessed by the husband at any time during marriage, and of which the wife had made no relinquishment of her rights, shall be set a.part as her property In fee simple if she survive him; provided. that the wife shall not be entitled to any intere.·t in any such estate of which the husband bas made a conveyance when the wife, at tbe time of the conveyance, is not, and never has been, a resident of Utah. Property so distributed is free from debts of the husband. except mechanic's lien for improvements on the same, lien for the purchase thereof and for taxes. Tbe value of the widow's share of the homestead is deducted from her distributive share. (See Succession.) Executions. ( ee Exemptions and Judgments.) Execution may be issued illllDediately on entry of judgment. There is no stay, except by appeal. There is no right of redemption of personal property, except bypothicated certificates of water stock, sold on execution. There can be a redemption of real estate sold on execution within six months. Exemptions. The following personal property of any judgment debtor shall be exempt from levy and sale on execution: Cb airs, tables, desk, to the value of $200; Ubrary belonging to the judgment debtor; musical instruments in actual u e in the family; also necessary household table and kitchen furniture belonging to the judgment dehtor to the value of S300; one sewing machine, all family hanging pictures, oil paintings. and drawings. portraits and their necessary frames: all 0  ;~;E~it;;f f~~e iJ~~v~~~i~~tr,!~!Ycg~?s~i~?~f~h!?rd~~~t~~ Jal~~i~y t':i hogs, with all suckingJ'igs; all wearing apparel of every person or family; also all beds an bedding of every person or family. Provided, that if the judgment debtor be the head of a family con-,isting of five or more members. there shall be a further exemption of two cows and their sucking calves. 'l'he farming utensils or implement of husbandry of a farmer not exceeding in value the sum of $300; also two oxen or two horses, or two mules and their harness, one cart or wagon, and food for such oxen, horses, cows or mules for six months; also all seed, grain, or vegetables actually provided, reserved, or on hand for the purpo. e of planting or sowing at any time within the ensuing six month.. not exeeeding in value the sum of $200; crops, whet.her growing or harvested, and the proceeds thereof not exceeding in value $200. The tools, tool chest, and implements of a mechanic or artisan necessary to carry on his trade, not exceeding in value the sum of Sii00: the notarial seal and records of a notary public; the instruments and chests of a surgeon, physician, surveyor and dentist necessary to the exercise of their profes ion with their scientific and profe. sional libraries, and law porfessional libraries and office furniture of attorneys, counsellors, and judges, and the libraries of rruni ters of the gospel, and the typewriting machine or a stenographer, writLst, copyist, and reporter. The cabin or dwelling of a miner not exceeding in value the sum of $500; al o his sluices, pipes, hose, windlass, derricks, pumps, cars, and tools not exceeding in value $500; two oxen, two horses or two mules and their harness, and a cart or wagon or dray or truck, by the use or which a cartman. drayman, truckman, huckster, peddler, hackman, teamster, or other laborer habitually earns his living; and one horse, with vehicle and harness or other equipment used by a physician, surgeon, or minister of the gospel in making his professional vi its, with hay and grain sufficient for such horse for six months. One-half of the earnings of the judgment debtor for his   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1956  BANKING AND COMMERCIAL LAWS-UTAH  personal services, rendered at any time within thirty days next preceding the levy of execution: provided, that when the earnings are S2. 00 a day or le.:s, such married man or bead of family shall be entitled to an exempt.ion of $30 per month; provided, that in no case shall the judgment debtor be taxed with the costs of any proceeding to obtain by levy of execution or otherwise, any part of the earnings of such judgment debtor, for personal services rendered within thirty days next preceding the levy of such execution. All public property with the fixtures, furniture, books, papers appertaining thereto. No 0 g~t~~e ~~!~~~/~~o~!~f"o~~~~ 0¥~~rtgl~:~~;ch:~y;,:r;1~nf~~ laborer's lien, or exempt from sale for taxes. Non-residents have no exemptions. All real and personal estate belonging to a married woman in her own right, and all the rents and profits thereof, and all compensation for her personal service , are exempt from execution against her husband. All moneys growing out of life insurance on the life of judgment debtor, if the annual premium does not exceed Sn00. If the debtor be the bead of a family, he is ent.itled also to a homestead of the value of $1,500 for himself and the further sum of $500 for his wife (if he has one), and $250 additional for each other member of his family. False Statements for Credit. False statements to procure credit are made misdemeanor. Fraud. An action for relief on the ground of fraud can be brought within three years after discovery of the fraud. (See Statute of Frauds.) Garnishment issuable with attachment or afterward. The writ of garnishment with interrogatories attached requires the garni5hee to answer within ten days after service if in the county. twenty days if out ide. Names of any number of garnishees may be inserted in one writ. Garnishee must answer in writing under oath. Ile is relea..,;;ed by deliverin~ the..property or money to an officer. A default may be entered and Judgment taken against him upon proof of his liability. If he answer denying liability, the plaintiff may join issue by rely. Such issue is tried and juagment rendered as upon other i ues. Discharge of the garnishee does not bar action against him by the defendant for the same demand. Garnishment may be had after judgment, ~he procedure being substantially the same as the foregoing. New trials and appealc; may be taken as in any other civil action. Holidays. Every Sunday, New Year's Day, February 12th, February 22d, April 15th, May 30th, July 4th, July 24th, First Monday In September, December 25th, and all days which may be set apart by the president of the United States or the governor of Utah, by proclamation. When any of the above, except the first mentioned falls on Sunday, the following Monday shall be the holiday. Hu!!band and Wife. If sued together, she may defend for her own right, and if either neglect the other may defend for both. If he desert her, she may prosecute or defend in her name. She may convey and make contracts In regard to her separate property the same as if unmarried. Either may act as attorney in fact for the other and conveyances from one to the other are valid. She may maintain an action for wa"'es in her own name. They may be sued jointly for the expenses of the family and for the education of the children. Inheritance Tax. There is an inheritance tax of 3 per cent on all property in exces.c; of Sl0,000 and not exceeding $2/i,O00, and 5 per cent in excess of $25.000. Applies not only to inheritance strictly speaking, but also to gifts made in contemplation of death and to grants intended to take effect In possession or enjoyment at or after the death of donor or grantor, whether in trust or otherwise. Interest. Legal rate, 8 per cent. :\Taximum rate, 12 per cent. On sums of $100 or le s $1. 00 may be charged the flrst month, but no ~;:,e~!~t~i~t:e;2a~e~~:st i~1~t;;,te;rinJ~:1dg~t~t'.e~~htis;;P~~f loans, if suit is brought within one year. The county superintendent of schools can recover within three years, after the expiration or the flrst year of the period of limitation, for the me of the schools, all amounts paid as principal or interest on usurious loans. .Judgment rendered in district court becomes a lien on all the real property of debtor with the county from time of docketing, and so continues for eight years therefrom. Lien may be extended to counties or other districts by fl.ling transcript of judgment with county recorder of such counties. Judgments may be revived by suit brought In eight years. Leases. Leases of live stock above a given number must be recorded in the county where the lessee resides, that is to say: fl.fty horses, one hundred cattle, or five hundred sheep. Uens. In all cases where the property of any company, corporation, or fl.rm, seized by process of execution or attachment, and when business is suspended by action of creditors and put into the hands of a receiver or trustee, then the debts owing to laborers for work or labor performed within five months next preceding such seizure and transfer and not exceeding the sum of 400 shall be treated as preferred, and such laborers and employes shall have a lien upon the property for the amount of such debt. This preference does not apply to any officer or general manager of a corporation or any member of any partnership or association. Lessor shall have a lien for rent due for six months only next preceding upon the property of the le. sees not exempt from execution a.s long as the lessee shall ocCUl)Y the leased premises and for thirty days thereafter, which lien bas pr10rity over all others, excepting taxes, mortgages for purchase money, and liens of employes for services for six months next prior to the sale. It is enforced by attachment. Mechanics, material men, etc., performing labor upon or furnishing materials, etc., to be ui-ed in construction, a.Iteration, etc., of any building, bridge, etc., have a lien thereof attaC'hing to the interest of the owner or le ee in the land, etc., which lien takes precedence of every other encumbrance or lien att8.<'hing after the commencement of the work. Notice of intention to bold and claim lien must be filed in the office of the county recorder within sixty days after the completion of the contract in the case of original contractor; in every other case, within forty days after furni5hing the last material or performing the la..<it labor. Liens may be enforced within twelve months after the furnishing of the last labor or material, or in the ca.,;;e or the original contractor within twelve months after completion of the original contract or suspension of work thereunder for thirty day . Persons entering into contracts for the construction or repair of public buildings, public work or improvement are required to give a bond for the protection of persons furnishing labor and material. Lb:nltation or Actions. Within four years, an action upon a contract, obligation, or liability not founded upon an instrument of writing; also, on an open account for good., wares and merchandise, and for any article charged in a store account, and after the last charge is made or the last payment is received. Within six years, contracts or obligations founded in writing. Within eight years, judgment or decree of any court of the United State , state, or territory. Money deposited in bank no limitation for its recovery. Mines and Mining. The general principles or the mining Jaws which prevails in the Pacific Coast region, as embodied in the rev! ·ed statutes of the United States, and interpreted by the supreme court or the United States and other federal courts, obtains in this State. There is very little local statutory enactment to supplement this general system.  r~  i~  . fortgages (See Chattel :Mortgages. For form Real Property mortgage see Conveyances) of real estate must be acknowledged as deeds, and must be foreclo. ed by proceedings in equity. Every mortgage of personal property is void as against creditors or subsequent purchasers unless accompanied by an actual and continued change of possession to the mortgagee, or unless the mortgage provide that the property may remain in po· ession of mortgagor, and be accompanied by affidavit of the parties that it is made in good faith to secure the amount named therein, and without any design to hinder or delay creditors. A short statutory form is provided. , Totes and Bll1 or Exchange are governed by statute. Chapter 8? of the Laws of 1899, effective July 1, 1899, is the act recommended by the American Bar Association to secure a uniform law on this subject. All other acts are repealed. The·law merchant governs in cases not provided for. This statute of 1899 is substantially the same as the act of New York relating to negotiable instruments. (~ee Holidays.) Issuing check without funds or credit is a misdemeanor. Partner ·hip (as urned name). Persons conducting business under assumed name are required to file affidavit with the county clerk giving true rlames of peri:;ons interested. Power or Attorney. Every power of attorney, or other instrument in writing containing the power to convey any real estate as agent or attorney for the owner thereof, to execute as agent or attorney for another any conveyance whereby any real estate is conveyed or may be effected, must be acknowledged, and certified, and recorded as other conveyances whereby real estate is conveyed or efl'ected are required to be acknowledged, approved, certified, and recorded. Power of attorney can only be revoked by written revocation recorded in the same office as the power of attorney is recorded. Replevin. Per onal property may be replevined by the owner or other persons entitled to the possession of it. The necessary affidavit and complaint must be made and tlled and also bond in double the value of the property claimed. The defendant can retain possession by giving like security. Sales. Uniform Sales Act adopted by 1917 Legislature and is now in force. Statute of Frauds. The following agreements are void unless the agreement or some note or memorandum thereof be in writing and subscribed by the party to be charged therewith: 1. Every agreement that by its terms is not to be performed within one year from the making thereof. of ~no~~~~-y promise to answer for the debt, default, or miscarriage 3. Every agreement, promise, or undertaking. made upon consideration of marriage, except mutual promises to marry. 4. Every special promise made by an executor or administrator to answer damages or to pay the debts of the testator or intestate out of his own estate. 5. Every agreement authorizing or employing an agent or broker to purchase or sell real estate for compensation or a commic;sion. 6. Contracts for the sale of goods for S200 or over, unless the buyer shall accept and receive part of such goods or pay some pa.rt of the purchase price. Succession. An int.estate's ec;tate goes, if there survive: 1. Husband or wife and one child, one-half to each; if more than one child one-third to the husband or wife, the rest equally to the children. 2'. If. issue alone, all to the i ·ue. 3. If no issue, all to the husband, or wife up to 5,000, the exce one-half to husband or wife, the other half to th~ parep.ts, and if both are dead, to brothers and sisters equally. 4. If neither issue, spouse, nor parents, to brothers and sisters. 5. If no issue, parents, brothers or sisters, all to the hu.,;;band or wife. 6. If neither issue, spouse, parent, brother or si. ter, to the next of kin in equal degree, and if no kin. then to the tate for the chool fund. Issue of children take accordin11: to right of representation except in certain cases. Illegitimate children inherit from the mother and from the father when he acknowledges paternity. Issue of marriages null in law are legitimate. Children of bigamous or polygamous marriages born on or before January 4, 1896, are legitimate. Curtesy :~l~rth~~t~~~l~ige ~~~;~Tnhfe~~and of wife surviving takes oneSuits. (See Actions.) Taxe are levied as of the second Monday or January; due on the first Monday of September and become delinquent on the 15th day of November. If taxes on real property are not pa.Id, uch property may be sold on or after tbe third Monday or December and may be redeemed at any time within four years. • ·w arehouse Receipts. The uniform warehouse receipts Act recommended by the national commission on uniform legislation was adopted by the legislative se ion of 1911. ' Wills. Any person over the age of 1 , of sound mind, may dispo ·e of his or her property, persona.I and real, by will. A will must be in writing, subscribed by the te tator at the end thereof, in the pre ence of two witneoses, and the testator must, at the time of subscribing, declare to the wit_n6! se · that the instrument is his will, and must be attested by two w1tne.· ·es, each of whom must sign hi name as a witne s at the end of the will at the testator's request in his presence, and in the P.resence of each other. By expr s enactment of stat!,lte the word ' writing"' includes printing. All wills executed a.ccordrng to the law of the state or country where made or where testator was at the time domiciled, or in conformity to the laws of Utah, may be admitted to probate hereafter, being duly proved and allowed in any other state, territory, or foreign state or country. Nuncupative wills are good, provided the estate bequeathed does not exceed in value the sum of $1,000, and provided the will be proved within .six month· after decedent's death by two wltn ·es who were present, one of whom was asked by te ·tator to bear witness that such was his will, or to that effect. uch wills are only good in cases where te tator was in expectation of immediate death from an injury or casualty ha.ppenin~ within twenty-four hours previous to the making of the will. An nolographic will. defined as one that Is entirely written, dated and igned by the hand of the testator himself need not be witnessed, and may be proved in the same way as other private writings.  BANKING AND COMMERCIAL LAWS-VERMONT  SYNOPSIS OF  THE LAWS OF VERMONT RELATING TO  BANKING AND COMMERCIAL USAGES Revised by THERIAULT & HUNT, Attorneys at Law, Montpelier. (See Card in Attorneys' List.) Acknowledgments. All deeds must be signed and sealed in the presence of two witnesses. The seal shall consist of a wafer, wax, paper or other adhesive substance affixed thereto, or the word "seal" or the letters "L. S." opposite the signature. They may be acknowledged in this State before a justice of the peace. notary public, or master in chancery. Outside the State, before a justice. notary public, or commissioner for Vermont, or any other officer authorized by the laws of such other state as take acknowledgments of deeds. A stockholder, officer or employee of a corporation who is legally qualified to take acknowledgments may take acknowledgments to an instrument in which such corporation is a party. Actions. Are such as are recognized by the common law. Suits before a justice must be served at least six days and not more than sixty days before the return day, except when erved in another county, then at least twelve days prior to return day; if defendant is Properly notified, judgment may be rendered on the return day, if no defense is interposed. If there is no personal service there mm t be one continuance for notice. Suits before a justice must ordinarily be brought in the town where one of the parties resides; if neither lives In the State, then in any town. Suits before the supreme or county courts must be brought in the county in which one of the parties resides, if either lives in the State; if neither reside in the tate, then In any county, but actions of ejectment and trespass on the freehold must be brought in the county where the land lie~. Replevin is t_o be brought in the county where the goods are detamed. Every writ and process returnable before the supreme or county courts, except as otherwise provided. shall be served within twenty-one days from the date of issuing the same, including the day of service, and excluding the day of issuing. The party suing out any process shall cause the same to be entered and docketed in the county clerk's office on or before the expiration of said twenty-one days, or the process shall be of no avail. The defendant shall cause his appearance therein to be entered with the clerk within forty-two days from the d~te of Process. Process served by an officer shall be returned by hun to the court or judge to which or the place where, it is made returnable, Within the time allowed by'law for ·erving the same. S!J-i~ are commenced by writs of summons or attachment, as the plamtiff prefers. There is no distinction between residents and non-residents, either Plaintiff or defendant, in respect to the right of, or liability to, an attachment of property on mesne process. The declaration is contained in the writ. Security for costs to the defendants mus~ bt: given by way of recognizance by some other person than the plamtiff and must be minuted upon every writ. Administration of e tates is conducted in the probate courts in the several probate districts. Appeal may be bad to the county court. or when only a question of law is involved direct to the supreme court. Affidavits may be taken and oaths administered out of the State by commissioners appointed by the governor. Appeals. (See Courts.) Arrest. In actions ex delicto the_ defendant may be arrested for want of attachable property. In actions ex contra.ctu no 'Yoman can be arrested. Nor C'an a resident citizen of any of the Uruted S~ates be arrested in an action ex contractu except upon the affldav~t of the plaintiff, his agent or attorney, "that be has good reason to believe, and does believe. that the defendant is about to abscond or rem<?ve rrom the State, and has secreted property t(? an amount exceedm~ $20 or sufficient to satisfy the demand upon which he is to. be arrest~d, or upon the affidavit of the plaintiff "that the ~efend!-1-nt 1s the receiver of money of the plaintiff in a fiduciary capacity wh1~h the defendant has not paid on demand. and that his action is instituted ro recover the same." ARslgnments and In olvency. There is an insolv_ent law. The Probate courts have jurisdiction in insolvency. All assignments must be for the benefit of all creditors. Non-resident c~editors can prove their claims and take their dividends; but the d1_scharge does not disturb the unproved claim of a non-resident creditor. Attachment. The defendant's property, not exempt, may }?e attached on me ne process in serving the writ, and trustee process w1U reach goods effects or credits of defendant In the bands of a third Party, but workmen'•s wages are exempt up to the amount of SlO. Banks. savings Banks Savings Institutions, and Trust ComPanies are organized under special charters granted by the general assembly, and under the general incorporation act, but are regu)at~d largely by general law. Savings banks ha~e no ca.pita.I stock. while the trust companies, though recehing savm~ deposits and usually denominated savings banks and tru.'-t compam_es., have a_ capital fixed by their charters and the stockholders are lnd1vidually liable, equally and ratably for 'the companies' liablllties to the amount of the par Value of their stock In addition to the amount invest~ In suc_h stock. The treasurer of a bank. before entering upon the duties~f hlS office, shall execute to such corporation a bond approved by a maJority of the trustees and the bank commissioner, conditioned for the faithful discharge of his duties. such bond shall not be less than $10,000; and  124  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1957  when the deposits of such corporation, including its capital, if any, and surplus, exceed the sum of $100,000, the penal sum of su~h bond shall be increased $2,000 for each additional sum of 100,000 or fractional part thereof, but shall not exceed $100,000. The investments of banks are regulated by laws which are explicit and comprehensive. A bank may deposit on call in banking associations or trust companies, approved by the bank commissioner of this State and under the supervision of the state or federal authority, in this State or in the cities of New York, Boston, Chicago, Albany, Philadelphia, or Concord, New Hampshire, or in any other bank designated as a depository under the laws of the United States or in national banks in the cities of St. Paul, Minneapolis, and Kansas City, with or without interest as may be agreed upon. sums not exceeding in the aggregate 20 per cent of the assets of such depositing banks. A national bank may act in all trust capacities in the same manner and sub-ject to the same control by the court having jurisdiction, as a natural person legally qualified. Every bank shall annually, on or before the 15th day of .July, make a report to the bank commissioner, showing accw·ately the condition thereof as it was at the close of business on the 30th day of June preceding; and such report shall embrace the following particulars: Name of corporation; place where located; amount of deposits; amount of individual deposits in excess of $2,000; total number of depositors; number of depositors resident in this State and the total amount of their deposits; number of depositors not resident in this State and the total amount of their deposits; amount of capital if any; amount of each item of other liability; public funds, including United States, state, county, town and other municipal bonds, stating each particular kind, the par value, estimated market value, and amount invest,ed in each; bank stock, stating name and location of bank, number of shares, par value, estimated market value, and amount invested in each; railroad bonds, stating name of railroad, par value, estimated market value. and amount invested in each; other stocks, staUng the amount of each; estimated value, date acquired, description and location of real estate, and amount invested  }~ ::g~ ~~~rt~fal  0  :~:r~~e~1[!gin~t~~ers~athe:;:J~· b:a:~~fe:~i~~; loans are made bearing more than 6 per cent interest and with special description of eaeh loan in foreclosure or on which there is interest more than one year overdue, giving date of each such loan, date due, amount of principal unpaid, rate of interest, amount of interest due and accrued, value of land mortgaged and of buildings, amount of insurance held by bank; loans to counties, cities, town , villages, or school districts; loans on personal security; loans on collateral security; cash on deposit in banks or trust companies, with the name thereof and the amount deposited in each; cash on hand; the rate and amount of each semi-annual interest payment on deposits and dividends on stock for the past year; the amount of the treasurer's bond; the amount of taxes paid during the past year to the United States and to this State; the salaries paid officers, trustees, and employees; the other expenses of the past year; with such other information as the bank commissioner may require to obtain an accurate exhibit of the condition, affairs. and transactions of the bank The treasurer of each bank shall, on or before the first day of May, annually, report to the bank commissioner, under oath, the name and last known residence of each depositor of the bank, toF:ether with the amount due such depo itor, who has not made a deposit therein or withdrawn any part of bis deposit or of the interest thereon, for a period of twenty years next preceding; and who is not known to the officers of the bank to be living; and said treasurer shall further give notice by publishing a list of such depositors in one or more newspapers published in or near the town where such institution is located. three weeks successively. Said bank commissioner shall forthwith forward to the state's attorney of each county a copy of the report received from such t,reiu;urers of the banks within such county, who shall forthwith file with the probate court of a probate district in such county an application asking such probate court to cite before it such banks in order to determine the ownership of such deposits. Said probate court shall forthwith give notice in the manner provided in section three thom:;and, two hundred and ninety-one of the General Laws, notifying all claimants of such deposits to appear and be heard upon the day fixed by said probate court, and shall also, forthwith notify such banks by registered mail of the time and place of such bearing. If said probate court. upon hearing all parties in interest, finds an owner for such deposit, it shall make a decree to that effect which shall be filed with such bank and shall be a sufficient warrant for the payment by the bank to the claimant. If the probate court does not find an owner for such deposit upon the evidence presented, it shall order the bank to pay such deposit to the treasurer of the State to be held and invested as a part of the permanent school fund and shall so certify to the bank, which shall thereupon pay over such depo it, a provided in this section. The law also provides a method whereby anyone rightfully entitled to such money may ohtain same from the state. The bank commissioner shall semi-annually, without previous notice, visit and examine the condition and affairs of every bank, and oftener if he deems it neeessary or believes the interest and safety of the depositors or creditors require. He shall be given access to all the files, books, accounts, securities, and assets of the bank, and shall be afforded every reasonable facility for making an examination of its affairs. Tl e may examine, upon oath, the officers, agents, and servants of such bank or any other person, in relation to the affairs and condition of such institution, and may administer oaths for that purpose. In addition to the examinations required to be made by law, said commis ioner shall make such examinations when ordered aid commi sioner may so to do by a court of competent jurisdiction. cause an examination of a bank to be made by an expert under his direction but at the expense of such bank. When the treasurer of a bank is an officer of a national bank or banking association, or the business of a bank is carried on in the same office or building with a national banking association, said commissioner shall, at least once in each year, visit and inspect the condition of such bank, at the same time that the United States bank examiner visits and examines such national banking association. Every bank shall at all times carry as a reserve 15 per cent of its commercial deposits and 3 per cent of its savings deposits. Not less than three-fifths of such reserve shall be in cash on hand and in balances payable on demand in banks and national banking associations in which banks of this State are authorized by law to make deposits, and at least one-third of said three-fifths shall be in cash on hand, but balances payable on demand in banks or national banking associations in the same county wlll be accepted as and in lieu of cash to the amount of one-half of such cash requir~ment. Two-fifths of such reserve may be in United tates or state bonds or in the bonds of any city of the United tates of at least 200,000 inhabitants, according to the last preceding United States census. No new loans may be made wben a bank's reserve is not in accord with the requirements of this section. The trustees shall have the general management of the affairs of the bank, but they may act through committees of investment, examination, and audit, subject to their general supervision and control. A regular meeting of the board of trustees of a bank shall be held at least once each month to receive the report of its treasurer and for the transaction of other business. A majority of the trustees shall constitute a quorum, but a less number may adjourn from time to time or until the next regular meeting.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1958  BANKING AND COMMERCIAL LAWS-VERMONT  A trustee or other officer of a bank who intentionally violates a  R~~t~gi ~~;~t!~\~~go8.edrmi;l~~n:~/i£e ~tO:t~,;h!fto~eien~~\g~ county in which such corporation  is located shall prosecute such violation on complaint thereof by the bank commissioner. A trustee or officer of a savings bank shall not, directly or indirectly, either for himself or as the partner of others, horrow or use its funds or deposits, or sign any note, as surety, upon which any of such deposits are loaned. A savings bank shall, immediately before making each interest payment to savings depositors, reseITe from the net profits accumulated since the preceding interest payment, not less than one-eil!hth of one per cent of the average amount of deposits during such period. as a surplus fund until such fund amounts to 10 per cent of tbe amount of de 1,osits and other liabilities oxcept surplus. The accumulation toward such fund shall be set aside and held intact and. when t,he fund amounts to said 10 per cent. It shall thereafter be maintained and held to meet losses in its business from depredation and securities or otherwise; and, if at any time it falls below said 10 per cent. reservations from net profits shall in like manner be renewed until such fund again reaches the 10 per cent requirement. A savings bank may pay i.ntere!':t on deposits not to exceed one and three-fourths per cent semi-annually until one-half of the 10 per cent fund described in the preceding section shall be accumulated, after which, so long as said accumulation does not fall below one-half of said 10 per cent fund. the rate may be not to exceed 2 per cent semiannually until said 10 per cent fund is accumulated. The tru tee , so long only as said surplus fund equals or exceeds said 10 per cent, may declare and pay such interest on depO!,its as in their judgment the earnings and resources of the corporation, above such surplus fund, warrant.  Io determining the percent of the surplus fund held by a bank, its interest or dividend paying stocks and bonds, and its real estate shall be estimated at their market value, and its notes and mortgages shall be estimated at their face. No loan shall be made to an officer. director, or employee of any trust company without the written consent of a majority of the directors; and such loan shall not at any one time. directly or indirertly, exceed 5 per cent of the capital stock actually paid in, but the discount of bona fide bills of exchange drawn against existing values. and the discount of commercial or bu iness paper actually owned by such director, officer. or employee negotiating the same to an amount not exceeding Sl0,000 or a loan upon the pledge of any of the securities which are legal investments and subject to the restrictions thereof to au amount not exceeding the same sum. shall not be prohibited by this section, but no loan shall be made hy . uch corporation upon its own stock as collateral, and no officers, director or employee of a trust company shall become surety on any note held by such trust company. A Bank or Tru.,;t Company organized under the laws of the State shall have the power to subscribe to the capital stock and become a m'ember of a Federal Reserve Bank subject to the supervision. and examination required by the laws of the State except that the Federal Reserve Rank shall have the right, if it deems necest;ary, to make examinations. Bill~ and Notes. On Fehruary 13, 1913, the Uniform Negotiable nstruments law went into effect. Chattel Mortgages. All personal property Is subject to mortgage. A mortgage of personal property shall not be valid ag-alnst any person except the mortgagor, his executors and administrators, unless at the time of making such mortgage the po· esdon of the property i delivered to, and actually retained by the mortgagee, or the mortgage Is recorded in the office of the clerk or the town in which the mortgagor at the time of making the same resideuces or. if be resides out of the state, in the town in whlch the property is situated. When the condition of a chattel mortgage has been fulfilled. the mortgagee shall within thirty days thereafter cause said mortgage to be discharged of record and if be refuses or ne1?lects tu do so shall he fined not more than fifty nor less than five dollars. :.\1ortgagor and mortgagee are required to suhscrlhe to an affidavit that the debt ,;ecured ls a just one. bopestly due and owing from the mortgag-or to the mortgaizee. and If such a mortga~e is given to indemnify t.he mortgagee against liability assumed, or to secure the fulflllmeot or an agreement other than the payment of a deht due from the mortgagor to the mortgagee, or if such morti.raKe is given to a trustee to ecure bond:1 issued or to be Issued thereunder, such liability, agreement or obll11:atlon shall be stated speciflrally in the condition of tbe mortgage. and the affidavit shall be so varied a.,; to verify the validity and Justice of such liability, agreement or obligation. Contracts. (See Actions.) Contracts based upon an Illegal or Immoral consideration are void. Conveyances of real estate are to he by deed and recorded in the clerk's office in the town In which the land is situated. (See Acknowledgments.) Corporations may be formed by three or more persons, by application to the secretary of state, for any purpose not repugnant t-0 the laws of thi state except (1) any busine subject to regulation by the Public Rervice Commisidon; (2) the business of a bank, or trust company or savings bank, or any busine contemplating the receipt or holding of money on deposit. or letting, loaning or managing money deposited; and (3) the business of insurance. Not le.· than twentyflve persons, a majority being inhabitants of the State. may from a railroad corporation under the general law. Any corporation, by a two-thirds vote of all its stockholders, or, Ir ft bas no capital i-tock, by a two-thirds vote of all members present, or, if such corporation ha.~ not been organized, by a. two-thirds vote of the surviving signers of the articles of association. at a meeting duly called for, the purpose may alter, add to or change the business for the transaction of which it was Incorporated. (See Sec. 21 of Gen. Ins. Act.) Charter Fees. If incorporated by act of legislature and no capital stock is provided for, or if capital stock does not exceed $10,000, $25; If capital stock exceeds $10,000 but does not exceed S50,000, 50; it exceeds $50,000 but does not exceed 200,000, $100; if exceeds 200,000 but does not exceed 500,000. $200; if exceeds $500,000, but does not exceed S1 ,000,000, 300; if exceeds $1,000,000, 500; if incorporated by voluntary a.5sociation and no capital tock is provided for. 2.5; if capital stock does not exceed $5,000. $10; if exceeds $.~.ooo and is not over Sl0,000, $25; if exceeds $10,000 then the fees specified above. Charter fee must be paid with application for charter, and if charter is refused money is refunded. A corporation may own shares of stock In any domestic corporation provided that the principal bu.slness of such domestic corporation is ancillary and auxiliary to its bu.sine. or that it bolds . uch stock for purpo es ancillary and auxiliary to Its business. A corporation may also own shares of stock in any corporation organized under the law· of any other jurisdiction, if the principal bu inoss of such foreign corporation is to handle and develop in that jurisdiction the business of the domestk corporation. Any charitable, religious or educational corporation may accept and hold shares or stock in any corporation given to it by will or otherwise. No corporation whose business Is primarily to hold shares of stock In other corporations. commonly called "a holding company," shall be permitted to acquire or bold such stock in other corporations. A violation of this provision shall be a cause ror the dissolution of the corporation.  Courts. The supreme court has appellate jurisdiction, ana •its as a court of error in suits in chancery; it has exclusive jurisdictiot. of certain statutory petitions not triable by jury; it may issue and determine writs of error, certiorari. mandamus, prohibition, and quo warranto; and may try and determine questions of law removed from the county court upon bills of exception. Court of chancf'ry has general chancery jurisdiction. The county court bas original and exclusive jurisdiction of all original civil actions not cognizable by a justice. and of certain statutory petitions: it has appellate jurisdiction in most ca.,;es cognizable by a justice where the matter in controversy exceeds $20 and in sorue cases where it is less than that sum; and it also bas appellate jurisdiction in cases in the probate court and in the court of insolvency. There are also inferior courts; municipal and city courts. ju'\"enile courts. and justice courts. Days of Grace. None. Depo,itlons may he taken in -the State by Justices or the peace, notaries public, masters in chancery, judges and registers of probate, and by commissioners of other states residing In this State. They may he taken out of the State by comml sloners appointed by a supreme court judge, or hy the governor, and by officers who are qualified to take depositions in other states. Dower. Widow il' entitled to one-third in value of real estate of decea.,;ed husband. unless barred in the manner sperifled in the statute by last will. by jointure, settlement, or wheu husband leaves no children or representatives of chil<lren ; and when a widow is entitled to a homestead, ber dower is dimini'ihed by an amount equal to it. If there are no children, widow ls entitled to the first $4,000, and onehalf the balance of husband ·s estate. Executions. May be levied upon property not exempt from attachment. Personal property levied upon is sold by tbe officer at public auction. Heal property i!I sold at public auction, hut the debtor may redeem ,vithin six months . In cases in which the body is liable to arrest, the officer may for want of property take the debtor and commit him to jail. Exemptions. Homestead, $::iOO; necessary wearing apparel, household furniture and tools, one sewing machine, one cow. one swine or meat or one swine, ten sheep, either one yoke of oxen or two horses (horses not to exceed in value the rum of 200), as the debtor may select. with forage for one winter, one ,;lelgh, two sets of harnes.,;, two halters, and ome other small articles. Ten cords of firewood or five tons of coal. twenty bushels of potatoe,;, the arms used by a soldier in the service of the United tate . growing crops, ten bushels of grain. one barrel or flour, three swarms of bees and their produce in honey; 200 pounds of sugar. one led or one set of trader's sleds, one tool chest used by a mechanic. live poultry, not exceeding in value the sum or $1 O; one two-hor e wagon or ox-cart, as the debtor may select, with whiffletrees and neck-yoke, two chains, one plow. Also a sewing machine and instruments and libraries of profe ·sional men to the value of $200. Garnlshment. (Sec Attachment.) Holidays. ( ee otes and Bills.) Hu band and Wife are competent witne ·sos for or against each other in all cases, civil and criminal. except that neither is allowed to testify against the other a to any statement, conversation. letter or other communication made to the other as to another person, and neither is allowed in any case to testify as to any matter which. in the opinion of the court. would lead to a violation of martial confldence. Interest. The legal rate is 6 per cent per annum. Judgments bear legal rate. Only the exce. s paid is forfeited, and that may be recovered back or set up in reduction of claim. Judgments do not of tbemsel'\"es create a lien on property not attached upon mesne proces . Limitations of Suit . Simple promi. ory notes are barred in six years. but, notes signed in pre~ence of an atte ·ting witne~s are not barred until fourt~en year next after the right of action . hall accrue thereon. Account · are barred after six years from the last credit; sealed instruments and judgment~, after eight year·. A \·erbal promise to pay "'ill not revive a debt. but the prombe must be In writ Ing signed by the party to be charged. A partial payment will revive the debt; but, in ca ·e of a note, the payment can not he shown by the indor.·ement of the payment alone unless In the handwriting of the party making the payment. !\tarried l\·omen. l\Iay dispose of property by will. May make ' contracts with any per on other than her husband, and bind herself i  t~dsJed :vt~~~cgrgJ:[i1ct:-c;~~d~eh;aie::ii~t;:~eir d~~n~acru~~~i~: A married woman shall not become urety for her hu.·band's debts except by way of mortgage, hut she may convey or mortgage by her eparate deed the real estate of which she is seized in her own right to her sole and separate u r a. she might do by her eparato deed. if unmarried. A married woman may, by her sole deed, convey or mortgage and may manage and control any other real estate hereafter acquired by her except that a homestead interest therein and the real estat.e of which ·be is seized jointly with her husband may be conveyed or mortgaged only by the joint deed of her.·elf and hu.<Jband, All per:onal property and righ~· of action acquired by her before coverture, or during coverture, except by gift from her hushand, are held to her separate use, and neither her .eparate property, nor the rents, issue. , incomes, or product of it, are ubject to the disposal of her husband or liahle ror bi,:; debts; but this pro,·i ion docs not authorize any claim by either husband or wife against the other for personal services. The husband is not liable for her torts unless committed by his authority or direction, nor liable for her debts contracted before the marriage, unle. the marriage was before January 1, 1885. (See Husband and Wife-Divorce ,) Mortgage of real estate are foreclo.ed by bill or petition and writ of po se. sion given after decree and failure t-0 redeem. The usual time for redemption granted in the dec1·ee i one year, but it may be shortened upon caw e ·bown. (See Chattel • Iortgage .) 'otes and Bill or E. chang • On February 13, 1913, the uniform egotiable In trumenv Law went into effect. Protest. ( ee , Totes and Bill .) Replevln. Replevin may be maintained for beasts dis rained; for goods attached, and for the unlawful taking or detalnin~ of goods. Suits before the county court are brought in the county where plalntlfr or defendant re. ides-if both are non-re. ident, then in anY county. Action· of ejectment and tre. p · on the fr holu must be brought in the county where the land lies, and actions of repleviD whe1·e the good are detained. Ta es. Land. old for taxe may be redeemed within one year on payment of the full um for which they ere ·old, with legal costl and 12 p r cent interc t. Wills. Every person of age and • ound mind may dispo.·e or blB or her real and personal eJ tate by ~ ill. The t ·tator mu t ign ID the presence of three witne.s , who must al o ign at the request and in the presence of the te:;tator and in the pr ence of each other,  BANKING AND COMMERCIAL LAWS-VIRGINIA  1959  erty, or some part thereof. into money, securities, or evidences of debt, with intent to binder, delay, or defraud creditors. 5. Has disposed of, or is about to dispose of his property, or some part thereof, with intent to hinder, delay, or defraud creditors. 6. Against a tenant removing property from leased premi."es before rent is due. 7. Against vessels for materials and supplies furnished or work done thereon. 8. Against crops of tenant.<: cultivating land. 9. Against crops of persons cultivating lands for advanC'es made upon crops. 10. Against property claimed in action of detinue, when defendant is RELATING TO alleged to be Insolvent. Banks. The state corporation commission bas the power to charter banks under the general corporation law with minimum capital BANKING AND COMMERCIAL USAGES stock, not less than Sl0,000, and to require reports and examinations and to exerC'ise general supervi<:ion thereof. Every such bank has power to prescribe hy its board of directors byRevised by AGELA~To & MILLER, Attorneys at Law, Norfolk. laws regulating the manner in whkh its stock shall be transferred, Its (See Card in Attorneys' List.) general business conducted, and the privileges granted to it by law exercised and enjoyetl. The affairs of such bank shall be managed by a board of directors, coni:,isting of not less than five persons, a majority of whom shall be Acknowledgments. The certificate must be to the following citizens of the State, and each director is required to own at least $100 effect : of the capital stock of the bank of which he is director. The board of State (territory, or district) of . ..... . ....... . . . .... . .... . ..... .. . directors shall meet at lea.<:t once a month. The directors shall be County (or corporation) of .............................. . . To wit: elected at the annual meeting of the stnckholders. Any vacancy in I ..... . ... . ....... . .. (Title of Officer), in and for the county (or the board of directors shall be filled by appointment by the remaining corporation) of ................ in the state (territory, or di. trict) directors, and any director so appointed shall hole! his place until the of . . ........ . ........ . . do hereby certify that . . .. . .. ... .. . whose ele<'tion of directors. They are to elect from their number the next name is signed to the writing above (or hereto annexed), bearing date president. 'I'he directors are required to make once in every three on the .... .. .... day of ..... . . . . . . bas acknowledged the same an examination of the moneys of the bank, and a settlement of months aforesaid. corporation) (or county my in me before the accounts of the ca.<:hier. A statement of such examination and Given under my hand this .......... day of ....... . . . settlement shall be recorded with the proceedings of the board. ........... ·cTitie ·omce·r) . • .. Every such bank may purchase, bold, and convey real estate for the following purposes, and no other : (Notary must give the date at which his commission expires.) 1. Such as may be necessary for its Immediate accommodation The clerk of the court in which any deed. contract, or other writing in the transaction of its business. Is to be, or may be recorded, shall admit the same to rerord in his 2. Such a.c; may be mortgaged or encumbered to secure, or conoffice, as to any person, whose name is signed thereto, when it shall veyed to it in sat.isfaction of debts previously contracted in the course have been acknowledged by him, or proved by two witnei;ses as to of its dealings ; or such as it may purchase at sales. under order of him, before such clerk, or upon a certificate of his acknowledgment court, or deed of trust held by it, or to seC'ure debts due to it but no before the said clerk, or before the clerk of any court of record in this such property, purchased or aC'f(uii;ed under this bead, shall be held State or before the clerk of any court out of this tate, hut within for a longer period than ten yea.rs. the United States, or before a justice. a commission<'r iu <'bancery of N"o dividend higher than 6 per <'ent on the c-apital stock paid in a court of record or a notary, within the United States. or in the shall be declared by any bank until the bank bas a surplus of IO per Philippine 11,;land<:, Porto Rico or in any territory . district or dependcent of its capital , nor shall any dividend he declared by which such enC'y of the linited States or a commissioner appointed by the go\·ernor surplus fund is reduced below the said to per cent. of this State within the United States; or upon the certificate of the Every such bank must make statements to the state corporation clerk of any court of record in this State or the clerk of any court out commission. identically as the national banks are required to make of this 8tate and within the United Rtates, that the said writing was to the comptroller of the curTcncy, and must publish such statements proved as to him by two witnesses before suC'h clerk or hefore the in a condensed form, as published by :aid national banks. and the court of which he is the clerk, or upon the cert.iflC'ate under thP official state corporation commission is required to call for such statements, sea.I of any ambassador, minister plenipotentiary, minister resideI_Jt, whenever tho comptroller or the currency calL<, on the nat.ional banks charge d'affaires, consul-genera.I. consul. vle:e-consul, or conuner<;1al for such ~tatem1:11ts; and upon written application, hy stockholders agent appointed by the government of the Umted , tates t-0 any foreign repre.c:entinrr two-fifths of capital stock of the hank, the state corcountry, or of the proper officer of any court of such country. or of ~he poration commission may make a special examination. There may, mayor or other chief magistrate of any C'ity, town or corporation at any time. be an inspection of the books and examination into the therein that the said writing was acknowledged by , uch per.·on or proceedings of any bank by a joint committee of tho two houses of proved as to him by two witnesses before any person ba \·ing such apthe general assembly, or a committee of each house, or one or more commissioners appointed by the general assembly or by the l(overnor. pointment. or before such C'ourt, mayor, or chief ma~/stra~e.. A duly qualified deputy clerk may make any certificate that his prrnc1pal Any banker, hroker. or oflker of any trust or savings institution. or of any state bank, or employee of any private banker. who shall take may make hereunder. When a person signs such writing in behalf of another person, or and receive money from a depositor wit-h the actual knowledge that corporation, or in a repre. entative capacity. a certificate of the acthe said banker. broker, or bank. or Institution is at, the time insolvent, knowledgment of the per on, so signing. shall be sufficient. shall be !l1.Jilty of embezzlement, and shall be puni... hed by a flue double the amount so received and imprisoned In jail from fifteen days to with administrators, and Executors Estates. of Admlni'ltration one year, or from one to three years in the penitentiary in the disthe will annexed, must qualify In the court in w~ich. the will of tl"}e cretion of the jury. testator is prohated. Administrators must qualify m the court m There are no laws restrl<'ting savings banks as to the class of bonds which the decedent's will would have been probated had he made a and securities in which their funds may be invested. wllJ. The assets of the de<'edent, after the payment of funeral ex• A bank examiner and assistant are provided for with full powers penses and the charges of admi!1lstration, are apJ:?lied 3'.'l f!)llow~: 1. of frequent and rigid examination of state banks at the expense or For articles furnished and services rendered during last 1llne , . not the banks. exceeding $50, for claims: (a) By physicians. (b) By drugg~tsd. Chattel Mortgages and Deeds of Trusts. There may be mort(c) Uy nurses. (d) By hospitals. 2. To pay debts clue ti.le Umte gages or deeds of trusts upon personal or real property to secure the States and State of Virginia. 3. To pay taxes and levies assessed payment of money, and upon default of payment the property may upon deredent previous to death. 4. To pa)'. de!J!s. due as pe_r·onal representative, trustees for persons under d1sab1htie-:l, gu3:r<han or , be sold by the trustee without tbe intervention of court proc-uedlngs. The mortgage or oeed of trust must be acknowled1Ced. and must committee. where the qualification was in this State, m which de!:>ts be recorded in the county or C'Orporatlon wherein the property l1!1 llhall be included a debt for money received by a husband actmg situated. It is larceny to fraudulently dispose of personal 1>roperty as such fiduciary in right of his wife. 5. All other den_iant!s, rata?lY, on wh!C'h a deed of trust exists, without the consent of the trustee or except those in the next class. 6. Voluntary ob\1gauons.. fhe beneficiary. order of payment applies alike to resident and non-resident cred1to:S. The surplus, after the payment of funeral expense. , charg of admmCheck<i. The death of the drawer of a check, presented within two lstratlon and debts, passes, if be die Int-estate, to J:iis relations. (• ee weeks from date of death, does not operate as a revocation. Bank or Descent and Distribution.) The payment of legacies or the distribubankers retain for a period of two weeks after notice of the death of a tion of the pemonal estate of an intesta.t-e cannot be C'ompelled until depositor money st.an<ting to llis C'redit, and after payinl-t thereout after one year from the date of the qualification of the first exec·utor or any checks which may be prei:ented within said two weeks shall, upon administrator of the decedent, and only then when th_e legatee or demand. pay the residue to the persons entitled thereto In tbo manner distrihutee gives a refunding bond, with sufficient se~unty, or when pre:scriued by law. This applies only to checks made payable at a the court enters an order directing payment or distribution without bank or bankers. (Acts 1906.) "It ls made larceny to obtain, with refunding honds. fraudulent intent, money, or other property by means of a check, draft or order and the failure to have on deposit. or to the credit or Affidavits. Any oath or affidavit required by law whic~ Is not of the maker, or drawer thereof, with the drawee sufficient funds to such a nature that it must be made in court, may be admlmstered by pay the same, when presented, is prima facie evidence of fraudulent or made before a justice and certified by !1im. unle ot_herwbe provided; and in any ca.<:e in which an oath might be a.dmlmst~red by or intent." an afI\davit made before a ju<:tlce. the same may be admimst~r~ by Collaterals. No special legislation. or made before a notary, a commissioner in C'banccry, a comro1s ·10ner Conditional Sales. Every sale or contract for the sale of goods appointed by tlle governor, or a court, or a <;lerk of a court. An affichattels, wherein the title is reserved until the same be paid for lo or country or state davit may also be made before any officer of another whole or in part, or the transfer of the title Is made to depend on any authorized by it..o; laws to administer an oath, and shall be deemed duly and po ses..<sion to be delivered to the vendee. Is void as to condition, annexed be there and officer such by subscribed be it 1r authenticated creditors of and purchasers for value without, notice from such vendee to it a cert.ifkat,e of the clerk or other officer of 3: court of re~ord of unless such sale or contract be evidenced by writing executed by the such state or country under an official seal. verifymg t_he genuu~eness vendor and vendee, in which the said reservation or condition is exof the signature of the first mentioned off\C'er, and his authority to pressed, and until and except from the time the said writing is duly administer such oath. When such affidavit is made before a notary to record in the county or corporation in which said goods or admitted public of su<·h other state or country the saJ!le shall be deemed and chattels may be. As to rolling stocks. cars, etc., of railroad companies, taken to be duly authenticated, If it be subscr1bed by such officer with contracts concerning them are to be recorded in the circuit or corporahis official 1-1eal attached. without being certlfled by any clerk or other tion court of the county. or corporation where the principal office of officer of a court of record. the company is located: If in Richmond city, in the RiC'hmond chancery Allen 11 • Any alien not an enemy, may acquire, by purchase or decourt. and a copy filed with the state corporat,ion commission, and scent, and hold real estat~ In thls State. and the ~!De shall be tra.oseach locomotive, car, or other piece of rolling stock is to be plainly c1t1zens. by Initted In the same manner as real estate held and permanently marked with the name of the vendor on both sides Arbltra.tiou. Persons desiring to end any controversy, whether thereof, following by the word "owner." there be a suit ending therefor or not, may submit the same t-0 Contracts. Every contra.ct not in writing, made In respect to real &rbitratlon. and fgree that such submission may be entered of record estate or goods and chattels. in consideration of marriage, or made for ln any court.. the conveyanee or sale of real e ·tate, or a term therein of more than In aid of remedy In civil action arrest does not lie, but Arrests five years, shall be void, both at law and in equity, as to purchasers for capla: can· be taken out against debtors about _to quit the State. B valuable consideration without notice and creditors. fore plalnt.lfl' can obtain this writ, he bas to give bond with security, Convel·ances are made by deed which may be written, typewritto pay cost!! and damages occasioned by arrest of the defendant. ten. or printed, and must be sealed. 'I'he seal of a natural person may Attachments may be upon real or personal property, and al!owed be a scroll, affl,ced by way of seal; but the impression of a corporate as follows: 1. Against foreign corporations and !JOO-residents or an official seal on paper or parchment alone shall be a.<! valid as if having property in this State. 2. Against an a.bscondmg debtor in made on wax or other adhesive substance. The seal must be recoga suit removing or Intending to n,move. his property out of the . tate. as a seal in the body of the instrument, e. g. : "Witness my a. Against a debtor who bas removed, is removing, or intends to nized band and seal." An attorney in fact may execute a deed, but the remove his property whether the claim ls due or not. 4. Against power of attorney must be under seal. No prescribed form is required a debtor converting, about to convert, or who has converted his prop-  SYNOPSIS OF  THE LAWS OF VIRGINIA   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  or  I   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1960  BANKING AND COMMERCIAL LAWS-VIRGINIA  for deed of a corporation, but it mm,t be executed by duly authorized maternal kindred. the whole shall go to the husband or wife of the officers or agents. Any interest in or claim to real estate may be disintestate; or if the husband or wife be dead, to his or her kindred in the like course as if such husband or wife. bad survived the intestate and ~~~ei?r~:~~~~~ died ent,itled to the estate. Collaterals of the half-blood shall inherit g~s~~e1 byAd~:~d a~!~:1~t~!:1~:lle~ passes the whole estate of the grantor, unless a contrary intention only half so much as those of the whole blood. but if all the collaterals appears by the deed. A deed or will is necessary to convey an estate be of the half-blood, the ascending kindred, if any, shall have double of inheritance or freehold for a term of more than five years, in lands; portions. When those entitled to partition are all in the same deand a deed is al o necessary for a voluntary partition of lands by cogree of kindred to the intestate, they shall take per capita, but when parceners having such an estate therein. A deed or will is also nece those entitled to share in the estate are of different degrees of kindred, they take per stirpes. sary to make a valid gift of goods or chattels, unless actual possession shall have come to and remained with the donee, or some person claimDistribution of Personal Estate. When any person shall die ing under him. The deed must be acknowledged before an officer as to his personal estate, or any part thereof, the surplus intestate authorized to take acknowledgments. (See acknowledgments.) His to certain exemptions), after the payment of funeral expenses, (subject official character and when his commission expires must appear in administration and debts, shall pass and be distributed to of charges the certificate, and acknowledgment must be taken within his county and among the same persons, and in same proportions, to whom and or corporation. Deeds must be recorded in the clerk's office of the estate is directed to descend, except as follows: I. The real which in court of the county or corporation in which the land lies, or in which personal e<;tate of an infant shall be distributed as if he were an adult. the goods or chattels may be, except in the city of Richmond, where If the inte tale was a married woman, her husband shall be entitled 2. 3-ll papers are recorded in the clerk's office of the chancery court. to the whole of the said surplus of the personal estate. 3. If the intesNeither the acknowledgment nor regi try of a deed is necessary to tate leave a widow, and i ue by her, the widow shall be entitled to a make it valid between the parties thereto, except in case of a deed of the said surplus. 4. If the intestate leave a widow, but no third from husband and wife, which must be acknowledged and registered by her. the widow shall be entitled absolutely to such of the issue unless registered be can deed no But interest. to convey wife's property in the said surplus as shall have been acquired by personal properly acknowledged or proved by two witnesses. the intestate by virtue of his marriage with her prior to the 4th clay or April 1877, and remain in kind at his death; she shall also be entitled, Corporations. The state corporation commission, consisting of three members, is the department of government through which if the intestate leave i sue by a former marriage, to one-third; if no must be issued all charters and amendments or extensions thereof, such issue, to one-half of the residue of such surplus. for domestic corporations, and all licenses to do business in this tate Dower. A widow is endowed of one-third of all the real estate to foreign corporations: and through which must be carried out all whereof her husband or any other to his u'>e was at any time during provisions for the creation, visitation. supervision, regulation and conthe coverture seized of an estate of inheritance or entitled to a right trol of corporations charterfld by, or doing business in this State. of entry or action for such estate. unless her right to such dower shall on-resident plaintitls may be required to- give security for Costs. be lawfully barred or relinquished. The right of dower may be costs on motion of defendant to any officer of the court. relinquished by the wife uniting with her husband in conveying the estate by deed of conveyance, etc., but no privy examination is real court supreme The Jurisdiction. and Courts. Their Orl?anization now required. If wife, of her own free will. leave her husband and of appeals. This is the court of la.'>t resort in this State. Its sessions live in adultery. she shall be barred of her dower, unless he Le afterare held at three points in the State, viz.: At Richmond. Staunton, ward reconciled to her, and sufl'er her to live with llim. and Wytheville. It has original jurisdiction in proceedings by mandamus. prohibition, and habeas corpus. The appellate jurisExecutions may issue at any time within one year, and scire facias. cases, criminal all to nds ext diction of tbe supreme court of appeals or action to revive judgments within ten. to all cases involving the constitutionality of a law, controversies conExemptions. Bible, family pictures, and books to value of $100, cerning title or boundaries of land. the condemnation of property, pe ;v in church, burial lot, beds and bedding for family, and also various the probat,e of a will, appointment of personal representative, etc., articles of housekeeping, and sewing machine, mecllanlc's tools to without regard to the amount involved, and in all other civil ca.<,es value of $100; seaman's or fisherman's boat to the value of 200; where the amount in controversy is S30C'. or more, exr.lusivP of costs farmer. one yoke of oxen or pair of mules and farming utensils. A and interest accrued after judgment of lower courts. Circuit court.householder, the head of a family, is entitled to have, in addition There are tllirty-one circuit courts, presided over by as many judges, real and personal property, exempt from sale under execution to the baving jurisdiction of all matters of law and equity where the amount value of $2,000, excepting for a debt incurred for the purchase of such exceeds s211. Justice courts have juri diction to extent of Sl00; real or personal property, rent. services rendered by a laboring person coror but any action, if for over $2,J, may be removed to the circuit mechanic, liabilitie incurred by any public officer or ofiicer of court, or poration court, upon affidavit by defendant that he has a substantial or any fiduciary or attorney for money collected, and taxes, for the defense, and appeals are allowed to said courts in all amounts exceedor taxable fees of any public officer or officer of a court. or for legal ing $1\J, upon security being given. Corporation courts.-A city or any debt or liability on contract as to which the debtor bas waived town containing 5,00fl inhabitants is entitled to a corporation court. exemption. And in case of householder or head of a homestead his These courts are given jurisdiction of both law and equity matters. and family, all wages not exceeding 50 a month are exempt. The homecivil and c-riminal jurisdiction. Courts of the city of Richmon~.be exempt must be described in a writing signed to claimed stead The circuit court of the city of Richmond (four terms a year) has withby the householder and duly admitted to record in the county or corin the city like jurisdiction of other circuit courts as above, exc~pt poration wherein the property claimed is located. Waiver, to be in chancery and criminal matters. The chancery court of the city effectual, must be in writing. of Riehmond (four terms a year) is the court of record and probate Foreign Corporations. Foreign corporations, when they have for the city, and has general jurisdiction of chancery matters. The complied with certain statutory requirements, have all the privileges law and equity court of Richmond (four terms a year) has concurrent. and disabilities of domestic corporations. jurisdiction with the circuit and chancery courts of Richmond, except as to a few matters. The Hustings court (monthly terms) is the court Foreign Judgment . Action may be brought upon a judgment or of criminal jurisdiction within the city except as to small matters, decree of another state or country, unless barred by the laws of such which may be tried in the police court. Lt is the court of appeal for state or country; but must be brought within ten years, if against a criminal matters which may be appealed from the police court. The citizen who has resided ten years in this State. police court of the city of Richmond has juri'>diction of criminal Fraud. Every gift, conYeyance, assignment or transfer of or matters, such as may be tried by a justice of the peace. In cities of charge upon any estate, real or personal, every suit commenced or 45 000 or more there may be a civil justice court. presided over by a decree, judgment, or execution suffered or ~btainecl, and every bond lawyer who has had five years' practice in this state. The court meets or other writing given with intent to delay, hmder, or defraud creditors. daily except on undays and legal holidays and cases may be heard purchasers, or other persons of or from w~at they are or may be lawupon five days· notice. The court bas jurisdiction of claims less than fully entitled to, shall, as to such creditors, purchasers, or other $300 in value inclusive of interest. From any judgment of this c<;>urt per ons, their repre. entative or ru igns, be void. . This .section sha.ll exceeding $20 exclusive of interest there may be an appeal as of right not affect the title of a purchaser for valuable cons1derat1on, unless 1t to any of the courts exercising common law jurisdiction in civil cases appear that he had notice of the fraudulent intent of his in1mediate In such cities, but there can be no removal before trial. Richmond or of the fraud, rendering void the title of such grantor. grantor court. justice civil has such Every gift, conveyance, assignment, transfer, or charge, which is not Deeds. (See Conveyances. and Chattel Mortgages and Deeds of upon consideration deemed valuable in law, or which is upon consid'eraTrust.) tion of marriage, shall be void as to creditors who ·e debt shall have Depositions. Evidence in chancery causes is generally taken b;v been contracted at the time it was made. but hall not on that account. depositions, while in common law cases it is generally o~al, but dep~simerely be void as to creditors whose debts shall have been contracted. tions can be read in a common law ca.,;;e where the witness has died or a.<: to purchasers who shall have purchased after it was made; and since his deposition was taken, or is out of the State, or is more than though it be decreed to be void a~ to a prior creditor, because voluna hundred miles from the place of trial. The deposition of certain tary or upon consideration of marriage, it shall not, for that cause, public officers, where the duties of the office prevent their attending be decreed to be void as to ub equent creditors or purchasers. court, may be taken and read. No commission is nece ·sary to take a Garni hment. By garni hment any money due the defendant deposition, either within or without the State, ~xcept where an _atte. tupon claim reduced to judgment, may be collecte9, and the proceeds ing witness to a will is unable, by reason of sickne . non-residence, by the court to payment of judgment agamst the defendant. applied etc., to give his testimony before the court in which the will is probated, except that when the depositions are to be taken in a state where a Holiday,. January 1st, January 19th, February 22d, May 30th, commission is necessary then the clerk of the court in this tate where July 4th. eptember-Firi;t Ionday, Tove~ber-Thanksgiving Day, the suit is pending may is ue such commission. Reasonable notice December 25th, every Saturday after 12 o clock. shall be given to the adverse party of the time and place of every Hu band and Wife. All real and personal estate to which any deposition. In this State depositions may be taken by a justice of married woman is entitled at the time, of the mal"!'iage, or which she the peace or notary public. or a commissioner in chancerr, except thereafter acquire or become entitled to durmg coverture, shall may depositions in divorce proceedings, which the statute requires shall uch separate estate shall not be and continue her eparate estate. be taken in all cases before a commissioner in chancery. In the to the use, control, or dispo al of her husband, or to his subject be United States, but without this state, before any commissioner apdebts or liabilitie incurred before or after marria"'e. A married pointed by the governor of Virginia. or any justice, notary, or other woman has power to bold. control, and dispo e of such estate as if she officer authorized to take depositions in the state wherein the witne s were unmarried. A married woman may engage in trade and carry may be. In a foreign country, before any person that the I?arties may on busine (but not a.'> a partner with her husband) for her separate agree upon, in writing, or before certain officers of the Umted tates. u ·e and benefit. oche may make contracts as if ole in re! pect to uch Descent and Distribution of Property. Descent <;>f Real Estat~. trade, and the profit therefrom hall be her ·eparate e,·tate. She may When any person having title to any real estate of inheritance shall die , sue and be sued as an unmarried woman in the conduct of such bu.siIntestate as to such estate, it shall descend and pa,.ss in par_cen~ry to ne~· and any liability incurred by her as such . ole trader shall not such of his kindred, male a?d fe!Jlale, as are no~ alien enemies, m the render her husband of his estate liable for such debts. following course: 1. To his children and their descendant_s. 2. If Insoh'ency. (There i no special statute on the subject.) there be no child, nor the descendant of any child, then to ~1s father. 3. If there be no father then to his mother, brothers and s1ster1:: and Interest. Six per cent per annum; all contracts for a greater rate their descendants. 4. if there be no mother, nor brother, nor sister. of interest shall be deemed to be for an illegal considerat.lon as to the nor any descendant of either, then one moiety h!}ll go to the paternal, excess beyond the principal um so loaned. If an exce. s beyond the the other to the maternal kindred, in the followmg cour e: o. To the lawful lntere t be paid in any cru e. the pe on paying the same may. grandfather. fl. If none, then to the grandmother. uncles, and aunts in a suit brought within one year thereafter, recover it from the person on the same side, and their descendants. 7. ~f none such, then to with whom the contract was n ade; but where a bank or private inthe great-grandfathers, or great-grandfather, 1f there be but one. dividual ha loaned money a.t a greater rate than o per centum and 8 If none then to the great-grandmother , or great-grandmother, permil the maker of the note, bond, or other evidence of debt to If there but be one, and the brothers and sisters of tho gran_dfathers renew the ame at the rate of G per centum. the maker and endorsers and grandmothers and their descendants. 9. nd so on, m other shall be barred from the plea of usury, after twelve month'> frolll cases, without end, passing to the neare t lineal male an~estors, and date of renewal. A bank, liceru ed banker or broker, or corporation for want of them to the nearest lineal female ancestors. m the same authorized to make loan , may take interest at, rate of one-half of 1 degree, and the descendants of such male and female ancestors. per cent for thirty days, and may receive such interest in advance. 10. If there be no father, mother, brother, or sister, nor any descendCorporations cannot plead usury. ant of either, nor any paternal kindred, the whol_e shall p;o to the Judgment are liens on real estate poss ed by debtor at or after maternal kindred; and if there be no maternal k1:11dred, the whole the date of judgment, but no judgment shall be a lien on real estate shall go to the paternal kindred. And If there be neither paternal nor  ~ft!~~i  0  BANKING AND COMMERCIAL LAWS-WASHINGTON as against a purchaser thereof for valuable consideration without notice until and except from the time that it is duly docketed in the clerk's office of the county or corporation wherein such real estate may be. Jurisdiction. (See Actions and Courts.) Liens. (See Judgments, Mechanics' Liens. and Supply Liens.) Limitations of Suits. Upon an idemnifying bond, or bond of exec-utor, administrator, guardian, curator, committee, sheriff or sergeant, deputy-sheriff or sergeant, clerk or deputy-clerk, or any other fiduciary or public officer or contract under seal, suit must be brought within ten years; on an a.ward, contract, in writing (notes. etc.) signed by the party to be charged thereby, but not under seal within five years; accounts between merchant and merchant or for settlement of partnership, five years; on any other contract and on open accounts within three years. All real actions must be brought within fifteen Years east of the Alleghany Mountains, and within ten years we t of same. No new promise will take an obligation out of these periods unless In writing. Married Women. (See Husband and Wife.) Mechanics' Liens. Any person performing labor or furnishing materials for the construction, repair, or improvement of any property, building, or railroad, is entitled, under the law of Virginia, to a lien on the whole of the same, or sufficient thereof to cover the value of labor performed or materials furnished. An account showing the amount and character of the work done, or materials furnished, the prices charged therefor, the payments, if any, and the balance due, verified by affidavit, and describing the property on which the lien is claimed, is required to be recorded in county or corporation wherein the land lies, within sixty days from the time such building, structure, or railroad is completed or the work thereon otherwise terminated. and from the time such labor is last performed or materials furnished. Liens remain in force for only six months from the time the money to be paid is due, unless suit is equity to enforce the lien in instituted within the six months. The lien also inures to the benefit of persons to whom the general contractor is indebted for labor or materials, to the amount due to the general contractor by the owner of the property at the time the latter is notified in writing of the sub-contractor's claim. Crop liens must be recorded in the office of the clerk of the county. Mines and Mining. Employes of a mining company are given a prior lien by statute for wages due. Mortgages in general have been superseded by deeds of trust. Mortgages on real estate must be recorded in office of clerk of county or corporation. Chattel mortgages can be made. but are void as to creditors and purchasers for value, without notice unless recorded. (See also Chattel Mortgages and Deeds of Trust.) Notaries. (See Acknowledgments.) Notes and Bills of Exchange. Virginia bas enacted the negotiable instruments law, prepared by the commissioners on uniformity of legislation in the United States. and all former legislation in con.flict with it is repealed. Probate. (See Wills.) Recordat.ion. Contracts in writing, deeds, or mortgages conveyIng real estate, or goods and chattels, which are admitted to record Within ten days from the day of its being acknowledged before a person authorized to certify the same for record, shall, unless it be a mortgage or deed of trust. not in consideration of mortgage, be as valid as to creditors and subsequent purchasers a.<1 if such admission to record had been on the day of such acknowledgment and certificate. Suits. (See Actions.) Supply Liens. All persons furnishing supplies necessary to the operation of any railway, canal, or other transportation company have a prior lien upon the property of such company. The lien must be filed in the clerk's office of the county or corporation court, where the chief office of the company is located within ninety days after the last item of the bill becomes due and payable. Taxes. Individuals and corporations are subject to the same taxation laws, but the legislature, by special enactment, may exempt a corporation from taxation. Corporations pay taxes at tbe sa~e rate as is required of individuals, but the manner of as. essment 1s not uniform. In some classe. of corporations the taxe. are asse,. ed on the actual capital invest,ed; in others, on the amount of cap!tal stock. Most of the mercantile corporations are asse. ed <?n the ~(:!ital Invested. For some cla">Ses of corporations there are . pec1al prov1s1ons relating to taxe-. (It is impossible to treat of this subject in a short space.) Testimony. (See Depositions and Evidence.) Wills. Every person may make a will, except, 1. A person of ~sound mind. 2. A person under twenty-one years of age; but a mmor may by will dispose of personal estate if eighteen years of age. No will sh.ail he valid unless it be in writing aud slimed hy the testator. or by some other person in his presenre and by his direction, in such manner as to make it manifest that the name is intended as a . f~nature; and, moreover unless it be wholly written by the te tator. the signature shall be made 'or tl.Je will acknowledged by him in the.pre ence of at le!lst two competent witnesses. present at the ame time; and such W1tne ses shall subscribe t,he will in the presence of the testator. but no form of attestatiqn shall be necessary. The _will of a man <;>r Woman is revoked by his or her :-mbsequent marriage, exc-ept a will ll'.lade in exercise of a power of appointment, e~c. '''ii( is also revo~ed by subsequent will or codicil. or by testat<?r s. cancelrnJ?, des~royrng, etc., the . ame. with intent to revoke. A w1l~ 1 cor:strued a.s if made ju:-;t before testator's death, unle s contrary mtent10!1 ~PP.ea~ by tbe Will. The circuit and corporat.ion court:- shall have JUrI'-d1ct1on a .. to the prohate of wills (and to hear and de~ermine suits an~ controve_r·1es testamentary) according to the. followmg rules. that ~s t? ~Y. In the county or corporation wherem the decedent bas a mans10n, hous~. or known place of residence; if be has no such J?ouse or place of re. 1dence, then in t,he county or corporation wber~m any r:eal estate hes that is devised or owned by the decedent; and !f ther~ 1s no. uch real estate. then in t,he county or corporation wherem }?e drns, _or a cou_nt,y or corporation wherein he ha.o: estate, except. th~t ~n ~he city of H 1chmond, the chancery court shall have such Jur1sd1ct10n. It shall be the duty of the personal representative of t~e te.·tator to caus~ a duly certified copy of any will, or of any authenticated copy so admitted_ to record to he recorded in the clerk's office of the coun_ty or corporat10n court of each county' or corporation. wherein there 1s any re, 1 e ·tate Whereof the testator died seized and possessed.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1961  SYNOPSIS OF  THE LAWS OF WASHINGTON RELATING TO  BANKING AND COMMERCIAL USAGES Revised by  C. BEECHLER, Attorney at Law, Seattle. (See Card in Attorneys' List.)  GLENN  Acknowledgments. Deeds, and other instruments may be acknowledged in this State before a judge of tbe supreme court, or the clerk, or deputy, before a judge of the superior court, or the clerk, or deputy, before a justice of the peace, or a county auditor, or deputy, or a qualified notary public. Outside this State before any omcer authorized thereto in such state, or before any commissioner appointed by the governor of this State; and if not acknowledged before officer having a seal, a clerk of a court of record shall attach certificate. In any foreign country acknowledgments may be taken before any minister plenipotentiary, secretary of legation, charged 'affaires, consul-general, con.sul, vice-consul, consular agent, commercial agent of the United States, or the proper officer of any court of said country, or notary public or the mayor or chief magistrate of any city, town, or other municipal corporation therein. The following form is used; no separate acknowledgment is necessary for the wife: State of Washington, } ss · County of.......... I, ......... a Notary Public in and for the State of Washington, do hereby certify, that on this .... day of . . . . . . . . • A. D., 19 .. , personally appeared before me . . . . . . . . to me known to be the individual ........ described in and who executed the within instrument, and acknowledged that ........ signed and sealed the same as ........... free and voluntary act and deed, for the uses and purposes therein mentioned. Given under my hand and official seal this ....... day of ...... . 19 ............ , Notary Public. ···· A. D. Residing at .......... , Washington. Acknowledgment by a corporation substantially in the following form: State of. . ......... } ss • County of.......... On this ........ day of ............. A. D. 1!)0 . . . . . before me personally appeared ............ to me known to be the (president, secretary, trea.-,urer, or other authorized officer or: a~ent, as the C!J,se may be), of the corporation that executed the within and foregomg instrument, and acknowledged the said instrument to be t,he free and voluntary act and deed of said corporation, for the uses and P"1rposes therein mentioned, and on oath stated that he was authorized to execute said instrument and that the seal affixed is the corporate seal of said corporation. In witness whereof, I have hereunto set my hand and affixed my official seal the day and year first above written. (Signature and title of officer.) Actions. Every action must be pro. ecuted by the real party in interest; administrator, executor, guardian. or trustee of an expr~ss trust, may sue without joining the person for whose henefl.t the action To action abates by the death, J!larriage, or 9th~r is prosecuted. disability of the part,y, or by the transfer of any 10terest t.berem, 1! the cau~e of action survive or continue. Actions must be tried in the county in which the defendants, or some of them, reside at the time of the eommenc-ement of the action, subject to the power of the court to change the place of trial. Action.,; commenced by service of e;ummons upon defendants, or by fl.ling a complaint with the county clerk as clerk of the court: provided, that service must be had personally or commenced by puhlication wit,hin ninety days after such flling. Defendants to appear and defend within twenty days when served per onally in the State, and winthin sixty days when served personally outside the State. "\Vhen defendant cannot be found summon;: may be published, after filing the complaint,, once a week for six consecutive weeks, directing defendant to appear and answer within sixty days after first publication. Administration of E tates. Any person having custody of any will shall, within thirty days after receiving knowledge of the death of the testator, deliver said will into the superior court, or to the person named as executor and every executor. hall present same for probate or present hi. written refusal to act within forty days after knowledge of te. tator' death: wills probated in any other state or country shall be admitted to probate in this State on the production of a certified copy of t,he original 1·ecord of probate thereof, and a copy of such will. Letters of administration granted in the following order: 1. To surviving husband or wife. 2. To next of kin, in the following order; child or children, father or mother. brothers or sister. grandchildren. 3. To one or more of the principal creditors; provided that if the persons so entitled shall neglect for more than forty days after death of the intestate to apply for letters of administration, or shall waive their rights in writing then the court may appoint a suitable per on. Executors or administrators must, within one month after appointment, make to the court a true inventory of the real and personal estate of deceased,   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1962  BANKING AND COMMERCIAL LAWS-WASHING TON  appraised by three persons appointed by the court; a notice to creditors must be published four weeks, requiring all claims to be presented within six months after date of such notice; all claims not presented within the time speciflect shall be barred. Debts shall be paid in the following order: 1. Funeral expenses. 2. Expenses of last sickness. 3. Wages due for labor performed within sixty days preceding the death. 4. Debts having preference by the laws of the United States. 5. Taxes or any debts or dues owing to the State. 6. Judgments rendered against the deceased in his lifetime and mortgages in order of their priority. 7. All other demands against the estate. A testator may provide in his will that trustees may manage and distribute his estate according to the will without reporting to the court, further than to probate the will and, at time, estate is ready to be closed, to have entered a decree of solvency, adjudging the heirs and those entitled to distribution. Affidavits. Affidavits may be taken before any judge of the supreme court, clerk, or deputy, judge of the superior court, clerk, or deputy, justice of the peace, notary public, county auditor, or his deputy. Aliens. The ownership of lands by aliens other than those who have declared their intention to become citizens, is prohibited, except where acquired by inheritance, under mortgage or in the collection of debts. The ·e provisions shall not apply to land-, containing valuable deposits of minerals. Every corporation, the majority of the capital stock of which is owned by aliens, shall be considered an alien. Arbitration. Parties may submit their differences to any person or persons mutually selected by an agreement in writing. The award may be filed with the Clerk of the Superior Court, and execution issue thereon.  Banks, Foreign. A foreign corporation whose name contains the words "bank," "banker," "banking," or "trust," or whose articles of incorporation empower It to do a banking or trust business and which desires to engage in the business of loaning money on mortgage 1 1 f~cr~f! !ia~~ ~!:YJggs;.ng;t~~1~ e~i~~nltif and with the secretary of state a certified copy of a resolution of its governing board to the effect that it will not engage in banking or trust business in this state, which copy shall be duly attested by its president and secretary. Such corporations shall also comply with the general corporation law of this state relating to foreign corporations, doing business herein. Penalty for each violation Sl,000.  :1t~utlf:~~g~~~~~:  Chattel Mortgages. Chattel mortgages may be had upon all kinds of personal property, rolling stock of railroad, machinery, boats, crops, portable mill'> and such property; they shall be signed and acknowledged in the same manner as deeds: they shall be void as against creditors of the mortgagor or sub equent purchaser, unless accompanied by the affidavit or the mortgagor that it is made in good faith and without any design to hinder, delay, or defraud creditors, and placed on record in the county in which the mortgaii;ed property is situated within ten days from the time of execution thereof. If mortgaged property be removed from the county mortgagee in order to retain his lien as against all others, must, 1. record his mortgage in the county to which property has been remo~·ed, within t,hirty days after such removal; or 2, take po. ·session of said mortga~ed property within thirty days after sucb removal; or, 3, record his mortgage in the custom house. A mortgage on any vessel or boat, over twenty tons burden, shall be recorded in the office of collector of customs, where such vessel is registered, enrolled, or licensed .. :'llortgages upon crops can not be made for more than one year m advance. Before the expiration of two years after the time such chattel mortgage become. due. the mortgagee. his agent or attorney shall file an affidavit setting forth the amount due, and the effect of such affidavit shall be to preserve the lien of such mortgage for one year from date of filing; otherwise, said mortgage shall cease to be valid as against third persons. (See Execution.)  As ignments. No general assignment of property by an insolvent, or the benefit, of creditors, shall be valid unless it bo made equally for the benefit of all creditors. The debtor must annex to the assignment an inventory of all his estate and a list of his creditors; upon application of two or more creditors by petition, within thirty days from date of recording such assignment, the judge of the superior In the absence of an agreement between the parties court shall direct the clerk to order a meeting of the creditors to Collateral choo ·e an assignee of the estate instead of the one named in the controlling the manner of the di ·position of the pledge two remedies debtor's assignment; a majority in number and value attending uch are open to the pledgee. II e may bring an action for the foreclosure meeting shall select one or more as:ignees, who, after giving bonds and sale of the pledge, or he may exercise his implied authm·ity and shall flle an inventory of the estate, public;h notice to creditors, declare sell the pledge at public auction after having given reasonable notice dividends pro rata to creditors, and clo ·e up the affair . Upon the final of the time and place of such sale to the pledgor. report of the assignee, it appearing tha~ the ru ignor has been guilty of Community Propert)·. All property acquired by husband or no fraud, concealment, or diversion of property, that the estate has wife or both, during marriage, otherwi~e than by gift, devise or inherbeen made to realize the fullest amount possible, and that the expenses itance is community property, the spouses each owning an undivided of the assignment have been paid, the court shall make an order disone-half interest therein and can only be conveyed or incumbered by charging the assignor from any further liability on account of any an instrument in w1·iting executed jointly by botb spouses; except debts existing prior to the assignment. that the husband has the management and control of <'Ommunity Attachment. A writ issued by clerk of court in which the action personal property with power to dispose thereof, but be hall not devise is pending at any timo before judgment; but before the writ issue· by will more than one-half of same. the plaintiff, or .·ome one in his behalf. must make and file with such Conditional Sales shall be absolute as to purcha'-eN, incumclerk an affidavit showing that the defendant i' indebted to the plaintiff, and that the attachment ic; not sought to hinder, delay, or defraud braocers and subsequent creditors in good faith, unless within ten days from taking pos ession by the vendee, a mem0randum of the any creditor and, also, showi11g that defendant is a foreign corporat,ransaetion be filed in the auditor's office of the county wherein the tion; or a non-resident of the State, or conceals Wmself or has abyendee re,:;ides. C:ommisslon merchant liable to floe and imprisonment sconded or absented himself from his usual place of abode, or that he has removed or is about to remove any of his property from the for wrongful conversion of consignments. State, or ha'> assigned, secreted, or disposed of, or is about to do o, Contracts. In the following cases, contracts ball be void, unless any of his property with intent to delay or defraud his creditors; or made in writina: and igned by tbe party to be charged therewith: 1. is about to convert his property into money for the purpose of placing every agreement that by its terms is not to be performed in ono year it beyond t,he reach of his creditors; or that, he has been guilty of fraud from the making thereof; 2, every , pecial promise to answer for the in contracting t,be debt, or for damagP.s from commission of some debt. default or misdoing of another person; 3, every agreement, felony or for the seduction of a female. 'l'ho plaintiff shall file a bond in a sum not less than 300 in superior court, nor less than , 50 , promi. e or undertaking made upon con~ideration of marriage, except mutual promise,:; to marry; 4. every special promi e macle by an execuin justice court, and in alJ cases double the amount for which judgment is sought. tor or adminbtrator to answer damages out of his own estate. 5. An agreement authorizing or employing a broker or agent to "Oil or purBai:i,ks. Capital Stock. Minimum l!i,000 in villages of 1,000 real e ·tate for compensation or a commission. 6. Sale of goods chase inhabitants; and graded up to I 50,000 in cities having 100,000 of value of $50 or over unle,;s tile goods are accepted and received, or inhabitants, or more. Shares 100; all of the capital stock ·ball be them. or payment made to bind tbe bar!?ain. \\ hen a conof part paid in cash before commencing bu,;ine .. ; incorporators. or directors, tract for the personal :erdce.-s of a minor ha been made with him not le. · than five. Articles executed in quadruplicate, and state bank alone, and those ervice · are afterward performed, payment made authorexamination. personal commi~ ioner shall issue certificate after therefor to such minor in accordanc-e with the terms of the contract izing the bank to transact busine · ·. is a full sati faction for those ervices. Responsibility. Stockholders are held individually responsible, equally and ratably, for all contracts, debts, and engagements of sucb Conveyances. All conveyances of real e tate and encumbrance association accrning while they remain stockholders, to the extent upon reai estate, shall be by deed. in writing and duly aclmowledged of the amount of tboir stock at par value thereof, in adnition to the 1 by the party making and ·igning it. The use of private ·eats to l;;igamount, invested in such hares. nature abolished; and the term "heirs" or other tochnil'al words of Powers. Banks exercise aU the usual banking power , loan money inheritance i • not nece. ·,ary to create and convey an e,:;tate in fee on real estate or personal ecurity. simple. (,.ee Acknowledgments and ~larried ·women.) No bank shall purchase its own stock, nor loan upon its stock, nor The statute prescribes short forms for "warranty" and "quitclaim" sub cribe for stock in any other than a Federal Reserve Bank of which deeds. it is a member. Duties. A bank combining commerc-ial and savings business shall orporation formed under general law.. .i.~o corCorporations. keep separate books and accounts for each !,ind of busine.ss. Deposits poration, e.·cept those enga~ed exclusively in loaning money on real carried in name of two persons jointly, may, upon tbe death of one, estate, shall commence busine.-,; until the whole amount of its capital be paid out on the receipt of the survivor. If bank pa;s raised or stock has been ·ubscrihed. Any two or more persons. de;'iring to form forged check. the depositor must make c-laim within sixty days. ~ ·o a corporation. hall sub:cribe articles of incorporation in triplicate, officer, or employe shall loan to himself any of the bank's funds upon and acknowledge the ,:;ame, and file one copy in the offico of the sechis own note, ,vit.hout first obtaining approval of directors. entered in 1·etary of state. and another in the office of the auditor of thP. county its records. At least one-tenth of profits shall be carried to surplus 0 unt.il surplus amounts to 20 per cent of the capital stoc-k. ~ndllj~fa}!et ~~~~fr~. plt~tf f 1:1~r~.i!1ih~tii:nr1~~l)~~~1\~1~ii.~~ of it· existence (not to time stock. capital its of amount, object, the personal a make .shall commissioner bank state Report . The exceed fifty years), number of . hare of capital stock, number of examination at least once each year. His fees are S25 for each exam trustees and names of those who shall manage the company, for a inatlon plus one hundred and fiftieth per cent of all depo,;its. Banks time de ·ignated (not le.' than two or more than :ix months), and shall make at least three reports each year to the commissioner on name of principal place of husine. s. \\'hen the articles shall have days designated by him. Reports to be published once in a local flied, the corporation shall have power, 1, to sue and he sued, been newspaper. The com.missioner may take charge of banks and su:2. to make and use a seal: 3. to purchase, hold, mortgage, sell and pend the officers. convey real and per ·onal property: 4. to appoint officers, agents and servants. such as their busine: shall require. to define their powers. Penalties. Gross misdemeanor, punishable by fine or imprisonto require of pre.Tribe their duties and fix their compensation, ment. to use the words, "bank," "hankin~ ... "banker." "trust," them sf'curity, and to remove them at will except in the ca e of trustees or plural thereof. or to use any sign, a<.lvert,isement, stationery, etc., be removed) may trustee any stock the all of two-thirds of vote a (upon unless duly organized and incorporated. Felony to fraudulently 6, to make by-laws. not incon. istent with the laws of the tate and the receive any depusit knowing that hank i. insolvent; fine not exceeding dthin the bu,;iness of kind» all conduct to 7, and tates; , United Sl,000 and imprisonment not exceeding ten years in the penitentiary, object of the company, a! expre. ed in the article· of incorporation. or both. Gross misdemeanor to certify a check unless the amount hall pay an annual license to the secretary of tate of 15. Stl<.'retarY is actually to the credit, of the drawer. Felony to willfully and knowof state shall strike from the rolb in hi officetbe nam · of corporations ingly sub cribe, or make false tatement or fal<.e entry in the books not paying annual license for two years. But they may bo reinof a bank or exhibit fictitious papers or securities with intent to deceive upon application hy paying all license fees and penalties due stated the bank commissioner. Knowingly drawing or uttering a check or the further sum of $20 each year its name has been . trlcken from draft upon a bank in which one has not sufficient funds is a crime Forbidden to blacklist employ . Penalties, Sl 00 to rolls. the punishable by fine or imprisonment or both. 1,000, or impri.·onment from ninety days to one year, or both fine Taxation. Stock of United States or state banks located within and impri. onment. Corporations may ·ub cribe for, huy, . ell, and the state shall be a.-,sessed to the owners thereof in the cities or town::; vote share· in any other corporation. Conflict of name· through where such banks are located and not elsewhere; all sucb shares hall similarity is forbidden. Any officer who shall publi:h or consent be assessed at their full and fair value in money on the first day of to the publication, any wilfully untrue, or fraduulently exaggerated March in each year, first deducting therefrom the proportionate part report, prospectus, or other document Intended to gi e a greater of the assessed value of the real estate belouglng to the bank: persons value to the hares of the corporation than they po s :, with a vlelf or corporations who appear from the records of the bank to be owners to defraud, shall upon conviction, bd puni ·bed by impri on ruent of shares at the close of the business day next preceding the first day In the penitentiary for not le ·s than one or more than five years, or of March in each year shall be taken and deemed to be the owners in the county jail not more than one year, or by a fine not exceeding thereof for the purposes of this section. 12,000. or by both.  ~!~~:  ~f  r,.  C  a t 0  a d  e t t t t  f  C 0  BANKING AND COMMERCIAL LAWS-WASHINGTON  material is paid for; using weights and measures known to be false; use of foreign ores or misrepresentation in selling mines; interference with samples of ores, or making false samples of same, or altering certificate of assayer regarding same: wearing badge or button of G. A. R. without right; misrepresentation of pedigree of breeding animals or when selling animals; removing mortgaged chattels; to issue false warehouse receipt. Foreign Corporations. Before doing business in tbe State, a foreign corporation must flle with the secretary of state a copy of its charter or articles of incorporation, or certificate of incorporation, certi.fl.ed to by the custodian of the same in the state or country of its domicile; also a certificate executed under its corporate seal, appointing a resident of the State, giving his name and address, as agent of the corporation, upon whom service of process can be made. No corporation, the majority of whose capital, 1>tock is owned by aliens, can acquire the ownership of any lands in the State, except lands containing valuable deposits of minerals, and necessary lands for mills and machinery to work said prodncts, except lands acquired under mortgage, or in good faith in the ordinary course of justice in the collection of debts. Provided that every foreign building and loan association or avings and loan association doing business in this State prior to July 1, 1913, shall deposit and keep with the State Auditor, or with a duly chartered trust company approved by the State  Courts and .Jurisdiction. The supreme court is vested with all power to carry into complete execution all its judgments. and in all matters within its jurisdiction; it shall have original jurisdiction in habeas corpus, and quo warranto and mandamus as to all state officers, and appellate jurisdiction in all actions involving $200 or more. The superior courts are always open. except on non-judicial days; they have appellate jurisdiction in cases arising In justice courts. They have original jurisdiction in all cases In equity and in all cases at law, Which Involve the title or possession of real property, or the legality of any tax, impost, a.'>.Sessment, toll, or municipal fine; in all other cases where the demand amounts to $100, in criminal cases a.mounting to felony. and of misdemeanor not otherwise provided for by Jaw; of actions of forcible entry and detainer, insolvency, probate, divorce, annulment of marriage, and special proceedings not otherwise provided for; they have power to issue writs of mandamus, quo warranto, review, certiorari, prohibition and habeas corpus for any person in actual custody in their respective counties; and their process shall extend to all parts of the State. Justice courts jurisdiction le ·s than $100. (except where the action includes the title to real property, the enforcement of a lien on real estate), or a suit against an executor, or administrator as such; a transcript of judgment, filed in the office of the county clerk becomes a lien upon real estate of the judgment debtor. Ga,rnic;hment in ju<>tice courts. Days of Grace are abolished by negotiable instruments law. Depositions may be taken when the witness resides out of the State, or more than twenty miles from the place of trial, or is about to go more than twenty miles from the place of trial and is liable to continue absent when the testimony is required. or is sick. infirm or a~ed, so as to make it probable he will not be able to attend at the t!'ial. They may be taken in the State before any judge of the superior court, justice of the peace, clerk of the supreme or superior court, mayor of a city, or notary, by serving on the adverse party or his att<?rney previous notice of the time and place of examination, which notice shall be served in sufficient time to allow time by tLc;ual route odf travel to attend, and three days for preparation, exclusive of the ay of service; they may be taken out of the State by any person autborized by a special commission from any court of thi · tate, Which shall be issued by the clerk under the seal of the court the co urt shall settle the interrogatories, which shall be attached by the c1erk to the commic,sion, or may be taken on oral questions and answers out of the State; five days' notice must be given to witness tor attend and commissioners shall have power to compel attendance o witness by petition to the court for an order upon witness to attend, ~~~c~~r punishment for contempt or refusal to comply. (See Evi. Descent and Distribution of Property. Upon the death of either busband or wife, one-half of the community property !Shall go tto, and title vest in, the survivor, without adrnimstration. subject o tbe community debts, and the other half shalJ be subject to the ttestamentary disposition of the deceased husband or wife, subject also o the community debts. In case of no will, half of the community Pfrope1·ty shall descend equally to the legitimate issue of the deceased. I: there be no issue living, or none of their repre. entatives, then said cofmmunity property shall all pass to the sm·vivor, to the exclusion 0 hcollateral heirs. Every illegitimate child is an heir to the person 'IV o shall in writing, signed by a compet,ent witness, have acknowled11ged himself to be the father of such child; and such child shall in a. . cases be considered as heir of his mother. If any illegitimate cthild_ shall die intestate without lawful issue, his estate shall descend ~ his mother. The kindred or tbe half- blood shall inherit equally With tho;;e of the whole blood. Posthumous children are considered as.;iving at t,he death of their parent. If decedent leaves no husband, Wf e, or kindred, the estate shall escheat to the tate for the support 0 d ~he common schools in the county where the decedent resided urmg lifetime, or where the estate is situated. (See Community P roperty,) Dower. Statutes in regard to community property, real and personal, have taken the place of dower and tenancy by courte·y, which are abolishec.l. (See Community Property.) Execution. After the expiration of six years from the rendition of any judgment it shall cease to be a lien or charge against thee tate rr Perso1! of t~e judgment debtor. Personal property may_ be sol.ct ~n en day· notice. Real property may be redeemed any tune within one Year after sale by paying che amount bid, with intere t at 8 per cent and any taxes or cha'rges paic.l by the purcha..,er. The purch~c;er ~~all l>e_ entitled to receive the rents and profits of the propeny dunng e Period of redemption, and upou redemption t~e amount of -~ch rents. and profits, oYer and above the expense of canng for , 1;>rotecl-mg, and msu:ing property, shall be a credit upon ~be redemption money to be p~1d, and the redemptioner shall Ile entitled to a sworn ?tat_elllent of the income and expen es of such property before redeeming 1t. the 1.>roperty sold be farm land, in the pos ession of purehaser. and · reduemed after the first day of Aprll and before, the Cl~st day of ~e<·ember, the purc-haser shall be ent,itled to possession until the first ay or. I>ecember following, or shall be rel,Jnbur ·ed fo: hL labor in preparing such property for crops, or planted crops, subJect, howev_er, rental ,•Jiarges. If uie property sold be a homestead, o<'cup1ed or t~at purpose at the time of sale. the judg1:11ent ?el>tor shall hl!-ve jhe r1~ht of po session during year of rede11~pt10n with?ut accou~ttng tir rents or value of occupation. The sheriff shall. deliver deed after b e tixpiratlon of one yea1· from date of sale, proV1ded ·uch sale has een confirmed by the court and no redempt,ion has been made. Exem1>tlons. To every householder, a homestead to the value of •~.O~Jo, if selected any time before sale, also household go~d' to val~e 0 _$.iOO, and provic;ion and fuel for si~ months, and certam domes~ic a.nimab; with six months' feed for same. to value of $250; to a mechamc, tools and mat.erial used Jn his trade, not to exceed $500; to a farmer, teams and farming utensils. not exceeding $500, 150 bushels of wheat anct. oats or barley, 50 bushels of pot_a~oes, ~O l_)ushels each of corn, Peas, and onions for seed; to a physician, his hbrary, not exceed!ng ffOO, horse, buggy, and instruments, and medicin~s. not exceedm_g l' 2bOO:. to attorneys, clergymen, and other pro_fesswnal men, their 1 rar1~s. not exceeding 1,000 and office furmture, fuel, etc., not exceeurng s200; to teamster, and loggers, cattle, h~rses, and wagon • not exceeding $300 and provisions for same for six weeks; to any ~rso,n~, all !ire arms for family use, and bo3:t with rig~ing, not e~ceedg S2oO; any pension money from the llmted tates, and flre msura.nce llloney to the amount of exemption allowed upon property. aD? the Procaeds of all lire and accident insurance are also exempt. \\ ages SlOO per month. due to any person having a family to s_upport, shall e exempt from garnishment. Except when the debt is for actual necessarie.· furn! bed to debtor's family, then wages to the amount of ~lO Per week for four consecutive weeks shall be exempt. .. o property 8 ~xempt from an execution issued upon a judgment for the purchase Pr1ce t~ereof, or for any tax levie<.J thereon.. , 'o property exe1:11p~ froi:n e xe<'ut1ou for clerks', Jaborel"ll', or ruerchaIU<:S wa_ge~ earned w1thm this 8 tat,ti, nor for actual necessarie not exceedmg $.>O 1D value or amount ~trn!sheu to tbe ctefenda~t or bis family within sixty days prece d\ng e beginning of an action to recover or from execution 1~ued Of! a judgment against an attorneytherefor, or agent for money belongg to Clttlnt or principal. Fraud. Statutes are enacted in the following cases: Receh1ng dePosits after bank is insolvent or in failing circumstances; obtaining llloney under false pretenses; fraudulent representation that labor or  ff  r°  gr   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1963  1  1  ~~~l~~~e!~at~~t~,t~ hi!1":!f~~!!!c~m: b1Js~e~ ?:\hft~\~t~da:~ Provided further, that on and after July 1, 1913, no foreign building and loan association or savings and loan association shall be permitted to commence and do business within the State or Washington, unless such associations have been engaged in such business within the State prior to said date. Any agent of a foreign corporation carrying on btL'>iness contrary to the statutes, shall be guilty of misdemeanor, and upon conviction, may be punished by a fine not exceeding $200, or by imprisonment not exceeding three months, or by both fine and imprisonment. Garnishment. Garnishment may be issued in the following cases: 1. When an original attachment has been issued. 2. Where the plaintiff sues for a debt, and make affidavit that such debt is just, due, and unpaid, and that the garnishment applied for is not sued out to injure either the defendant or the garnishee. 3. ·where the plaintiff has a judgment wholly or partially unsatisfied in the court from which he seeks to have a writ of garnishment issued. The w-rit shall be returnable within twenty days if served upon garnishee within the county where issued, or within thirty days if served in any other county in the State; should he fail to make answer within the time prescribed in the writ, the court may render judgment by default against the garnishee for the full amount claimed by plaintill'. On garnishment in , uperior Court before judgment bond must be given to defendants in double amount of demand. No bond is required in justice court garnishments either before or after judgment. Holidays. The following are State holidays: January 1, New '\'ears Day. February 12th, Lincoln's Birthday. February 22d, Washington's Birthday. May 30th, Memorial Day. July 4th, Independenee Day. The first Monday of 8eptemher, Labor Day. October 12th, Columbus' Birthday. General election day, Thanksgiving Day, December 25th . Christmas. undays, when a legal holiday falls on Sunday the next succeeding day is legal holiday. Hunter's Li<'ense. A resident to hunt in the county, $1; in the State 5; a non -resident. $10. nu ·band and Wife. A husband or a wife may give. grant, sell or convey, directly, each to the other, his or her community right, title, interest, or estate in all or any portion of t,heir community real property; and every deed so made shall operate to vest the real e ·tate therein recited a..'l separate property. Either may make and execute powers of attorney for the sale, conveyance. transfer. or incumbrance of his or her separate estate without the other spou;;e joining In the execution thereof; and either may appoint the other his or her attorney-in-fact for the purposes before stated. (See Community Property and Married Women.) Inheritance Tax. AU property within the State, or subject to distribution by the courts of this State. which ::.hall pas'! by will or inheritance, or by deed, grant or gift intended to take effect after death, shall be c,ubject to an inheritance tax on the value of said e,;tate, over and aboYe all just debts and fee . which tax shall be a lien on said estate. On all sums above the first $10,000, where the same shall pass to father. mother. husband, wife, lineal de cendant, adopted child, or lineal de.. cendant of adopted child. one (]) per cent of any value up to $50,000 artd grnded up to 5 per cent where estate exceeds 250,000, on all sums not exceeuing the first $50,000, if the estate goes to the collateral heirs. inc-luding the third degree. a per cent and graded up to 9 per rent where estate exceeds 250,000, and where the e, tates go to collateral heirs beyond the third degree, or strangers to the blood, 6 per cent where the estate does not exceed $50,000 and graded up to 15 per cent where estate exceeds $250,000. All bequests and devises for charitable purposes are exempt from the inheritance tax. Interest. The legal rate of interest is 6 per cent. Any rate not exceeding 12 per cent per annum, agreed upon in writing, is valid. All State warrants draw 5 per cent; all county, city, and school warrants draw not to exceed per cent, and the public officers whose duty it is to i sue warrants shall each month inve ·tigat.e the market value of warrants and flx the rate of interest on the same during the ensuing months. (See Usury.) Judgments. A judgment is a lien for the period of five (5) years upon the realty of a judgment debtor from the date of entry in the clerk's office, and no judgment can be revived or renewed. Judgments of state and federal court are liens in the county where entered and also where tra.n cript is recorded. Lien . All vessels are liable for liens in following order for three years: 1. For services rendered on board. 2. For work done or material furnished in this State for their construction, repair or equipment. 3. I<'or their wharfage and anchorage in this State. 4. For non-performance of any contract for transportation. 5. For injuries to persons or propert~· within state or in transportation to or from state. Liens for labor and material on all structures, railroads, mine , ditches. etc., to be flied in ninety days and suit brought in eight months; also liens for log , lumber and farm products. A black mith, wagon-maker, or boiler-maker may have a lien for material and labor expended upon a chattel. otice of lien to be filed within ninety days after work doue; suit to foreclosure must be had within nine months after filing, by notice and sheri.fi' sale, as in chattel mort,gages. Limitations. One year-Action against sheriff or other officer for the escape of a pri ·oner arrested or imprisoned on civil process; against an executor or admini trator for malfeasance or mismanagement of an estate, one year from discovery of same or from bis final settlement. Two years-Action for libel, slander, a: sault and battery, false imprisonment, and for a forfeiture or penalty to the State. Three years-0ontracts not in writing, open accounts, action for waste or trespass on real property, for taking or injuring personal property, for relief on ground of fraud, for seduction and breach of promise. Five year·-Action for the recovery of real estate sold by an executor or administrat-0r; minors and other persons under legal  •   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1964  BANKING AND COMMERCIAL LAWS-WEST VIRGINIA  disability to sue at the time when the right of action first accrued may commence action at any time within three years after the removal of the disability. Six years-Contraccs in writing, judgment or decree of any court, or for rents, or profits of real estate. Ten yearsRecovery of real property or the possession thereof. Married Women. l\.Iarried women have the same right to acquire, dispose of property, to contract, sue, and be sued, as if unmarried; not liable for the debts of husbands; may manage, devise, and convey her separate property. Wife must join with the husband in the conveyance of the community real property. If husband and wife be sued together, the wife may defend in all cases where she is interested. Expenses of the family and education of the children are chargeable on property of both husband and wife, or either of them, and they may be sued jointly or separately on such claims. l\fortgages. :Mortgages are executed in same manner as deeds, they a1·e not deemed a conveyance or transfer to t;itle, but merely a lien for security, and the mortgagee, to gain title and possession, must proceed by foreclosure and sheriff's sale; upon default in the perl'ormance of any condition in the mortga"'e, the mortgagee may 0 fiie~~~e iih!h:a:fef! ~ cs~it i~f et~~it~un~;~e[:e~~ei;a~g ~~Jre~ agreement for the payment of the sum of money secured contained in the mortgage or any separate instrument, a deficiency judgment will be granted. Sale conducted as other sales on execution. If, before the final judgment, the defendant pay into court the interest due and any installment of principal then due, together with accmed costs, further proceedings shall be stayed until a default again occurs; sale of the property shall be made in parcel, if po ible, and only so much shall be sold as will be sufficient to pay the judgment. with costs. Notes and Bills. The negotiable instruments act is in force. Powers of Attorney. Powers of attorney shall be executed and certified in the manner provided for the acknowledgment of deeds, and recorded as deeds. Husband or -wife may give a power of attorney to the other spouse with full power to dispose of community ~~~f:~;[d~nd any interest of the ~antor. No limitations on powers Probate Law.  The superior courts have jurisdictions of all pro-  I  SYNOPSIS OF  THE LAWS OF WEST VIRGINIA 1  RELATING TO  BANKING AND COMMERCIAL USAGES  !:;~t~;t!~d ;;r~d~:!~r!iii;~~g;~t o~~:~a~a~;tf~tt:r;a:::t~r I deceased per ons, and the accounts of executor , administrators and Prepared and Revised by MESSRS. BROWN. JACKSON & KNIGHT, guardians. and allow or reject claims against all said estates. Attorneys at Law, Charleston. (See Card in Attorneys' List.) Protest. Notaries authorized to present bills of exchange and promissory notes. and protest the same, and to charge fees for noting, protesting, and mileage. No protest necessary on bills issued and AcknowledgJDents. The clerk of the county court of any county nayable within the State. in which any deed, contract, power of attorney, or other writing is to be, or may be recorded, shall admit the same to record in his office Redemption. At any time within one year from the date of sale as to any per on whose name is signed thereto, when it shall have on mortgage or other foreclosure of lien, or execution sale, the judgbeen acknowledged by him or proved by two witnes.ses a.,;; to him, ment debtor or his succes._,;;or in interest may redeem the real estate before such clerk of the county court. A clerk of the county court by paying the judgment with the costs and 8 per cent interest thereon. sliall also admit any writing to record as to any peNon whose name Any subsequent judgment creditor or encumbrancer may likewise is signed thereto, upon the request of any person interested therein, redeem. The purchaser is entitled to immediate posse sion, rents and upon a certiflcate of hL'l acknowledgment before a. ju;stice, notary profits from date of sale, except in the case of homestead or family resipublic, recorder. prothonotary or clerk of any court w1thm the United dence; or in the case of agricultural land. the owner may retain States, or a commL ioner appointed within the same by the governor posse ion, and the purchaser may hM•e a lien on the crop rai,;;ed of this State, written or annexed to the same. or harvested. for interest on the purchase price at 6 per cent per annum, and for taxes. (See Execution.) Actions. The common law forms are retained, modified by statReplevy. Affidavit shall be made by plaintiff' or someone in his • ute in some respects. Rules are held by the clerk on the first Monday and following Tuesday and ·wednesday in each month at which parties behalf, showing 1. That he is the owner of the property described, file their pleadings at law and equity, take orders of publication and or is lawfully entitled to t-he possession thereof as set out by the facts rules on opposite party to plead, etc. respecting SU('h possession. 2. That the property is wrongfully detained by defendant. 3. That same has not been taken for a Administration ot Estates. Non-residents may qualify as pertax, asses,;ment, or fine, pursuant to a statute, or seized under execusonal representatives. Administrators may be appointed by the county court, which ha.o; general charge of all prohato matters. Admin~~i:~~:~h~~1¥iie v~1~~~f z~~ istration is granted to the distributes who apply therefor. preferring 1 0 8 first the husband or wife, and then such of the other. entitled to dis~i::e i~y~r s~~:~i~ ~~;~ tribution as the court shall see flt. If any distributee: fail to apply of the affidavit and bond upon the defendants personally, or his agent; for adrnini. tration for a period of thirty day after deal h of decedent, if neither can be found then by leaving same at his house, with suitthe court may grant admini tration to one or more of bis creditors able person. or to any other per,-,on. Bond is required for a pena.lt y equal to full valuo of personal estate. If three months elapse without a personal Taxes. Taxes shall be levied by the county commissioners at their representative being appointed. the court on motion may appoint meeting in October in each year, and all taxes, whether state, county, the sheriff or any other county official who acts without giving addicity, or school, are collected by the county trea urer and by him tional bond. distributed to the proper fund. Taxes are due and payable on and after the first :\1onday in February. and be<'ome delinquent on :\lay Affidavits may be made before any officer of another state or 31, from which date interest at 12 per cent per annum is charged until country authorized by it laws to admini:ter an oath, and shall be paid; provided that if one-half of taxe be paid on or before May :-! l deemed duly authentic-.ated if it be ubscribed by such ofllcer, and then the time of payment of the remainder thereof shall be extended there be annexed to it a certiflcate of the clerk or other o!Tif'er of a to November 30; but if said remainder be not paid on or before Novemcourt of record of such state or country, under an offidal -;eat, verifyber 30, then such remainder shall be delinquent and shall draw interest ing the genuinenes. of the signature of the fir t mentioned officer a.'i above from May :n pre:-eding. If taxes be delinquent ele •en and hi· authority to administer an oath, and they may alsll be made months. the county commissioners, may authorize the treasw·er to before a commissioner appointed by tbe governor of this :tate. issue a delinquency certificate, the holder of which may brin~ suit in Aliens. No disabilities attached to alien .. not anemic . in referthree years for sale and absolute title, If the ta,e. due in any )•ear be enee to purchase. enjoyment, conveyance, aevbe, or d ·cent or paid on or before March 15th of aid year. a rebate of 3 per cent shall pr perty. • be allowed. Arbitration. Parties to any controversy, whether there he a suit 'l'rust Companies. Five or more persons may form a tru. t pen<lina; therefor or not, may submit the same to arhitrarinn and agree company: l. The capital . tock shall be a minimum of .,0,000 in that -.aid submission may be enterect of record in any court. cities of le,;;s than 25,000 inhahitants and graded up to ~2011.000 in Arre. ts. Defendant in an anion may be arre.-;te I on the following cities of 100,000 or more population. shares of I 00 each, all of which ground,,. shall be paid in ca.,;;h before any trust company shall be authorize'! (1) That he ba.s moved or is ahout to move hi pro1>erty from tbe to transact any business. 4 . .\'tust make nut le.·s than three veri ed 'Late with intent to defraud hi. creditors, or reports of re ou1·ces and Jiabilitie: each year to the stale hank e:itamiuer (2) that he ha.-, or is al>out to conven hi property into money \'\'ills. gvery male person above twenty-one yea.rs of a.!;e. an or seeuri1,ies with like intent. or every female person above eighteen years of age, of sound mint! may (a) that he has a,; ·i.{no,l or dispo ·ed of his pr1merty or is about by la.o.;t will devise his or her estate, real and personal. Rrnry ,vill to do so with like intent. or shall be in writing, sii:?:ned hy the testator or by so~ne other person ( 1) that he ha.o.; property or rights of action whif'h It rrnuriulentlY uncler his dire,·tion and in his pre. ·ence. ancl shall be atte:ted hy two coneeal, or or more competent witne·.,es subs'ri lin~ theit· name· thereto in pre (;;) that he fraudulently contracted the deht for ·hlch the action ence of the testator. • ·o nunc:upati\·e will ·hall 1,e •ood where the ls hrou~ht. or estate e ·ceed: the value of 200, unle ·s the same be prove I by t, rn (H) ·that be is a )011t to leave this . tate and r tjde in another witne:ses who were present at the ma' in!.C thereof. an1l it be 1mn en without payin~ the debt for \Vhkh the a titm is hrou ht. that. the testator at the time of pronuundn~ the sa 111e clid ni I s >me Assii:mn1ent1, and lnsoh·cncy. There are no Ins IHmt laws In person present, to bear witness that SUL'h was his will. and that ·udi this State. ,\ssignments are made by a cleed of tr11-..t arl.nm, lt•dged nuncupative will wa. mafle at the time of the la,1, sil'lme's, lmt 1t1:iri11a.· other deeds and rocorded in the office of thP f'o11nty l'lcrl;: of the ers at . ea ancl soldiers in the military servi, e may dispose of thrir county wherein the property a,·siin1ed or any part ther • f I ltuated, wage. or personal property by nuncupative will; no real es1ate ·hall convf'yin!.{ the property to a tru ·te' to rea1i1e on he ~"t and disbe devised by a nuncupat.ive will: nuncupative wills mu ·t Le o!Te o t.ri1Jute it amon~ the creclitors, Tho deed orclinari1' ta P ti amount for proof wit,hin six months after the speaking of the testameutarr of the commi.·sion. of the trnstee, which are usuaPr ., pi r crnt, but won.ls. if not so statP I are ;; per C'ont, on tlrst 300 and 2 per <'en on the Forei!?n wills le;::-al if executed in form required by the state in bala111·e. The as-;i:.{nee is not. requireo to give honcl unle s "ome odf which executed or by the state of te tator's domicile. his cestui que trusts clemancls it, In which ca:·e hfl mtbt :{he hon before the clerk of the county ('Onrt in a penalty equal to the f 111 valube of the property before c:ale i,.: n1ade. If the truste foil t,<l 1Zive sue bond for twonty days after noth e given, his power <'Ca: e and another may be appointed. , ale of merchandise in bulk prohihited unless due notil"e i. rnven to creditors. Attachment . Tn any action at law or nit in equity the writ may issue when the defencJ:rnt, i. a fnreiITTJ corporati 11. or a !,on· resident. has left or is about to leave this tate to rlefrnnd hi, crerhtor&ts conceals himsPlf so that summons cannot, he sen·ed upon him. rt removing or ts about to rem0\'8 his property from this tale is •·onve tb· Ing or is about to convert his property into money or securities w1  !~0c°ii  t~e~  0~cl~a~0 ~h~dp~r:,g~~~ rni~ c~:f  tt:tp~~~!rf: ~ia'rm~d~mg:  a~~J. ~1~~1;[de1I~.  Pe  as  tn th an tn  no on in  to  de  gr gr  br  th  to ne of br ki no If go be W'il Co of asc Cb  fi;  fe Pe p  Shi  de( In  catr  be  sh,  dei  be or  Pei dei  th1  l  Pei  fol lea or  to  by on,  BANKING AND COMMERCIAL LAWS-WEST VIRGINIA Intent to defraud his creditors, or has assigned or dis£osed of his 0 0 ~1~I~rJi:rsjf :; ~~X;~ i~ fr~'Jau1~~1:i~~~;~:edort~~nd:~is brought. Plaintiff or agent must make affidavit that one or more of these facts exist and unless attachment is issued on first grounds, afflant must also state in affidavit the material facts relied upon. Banks. It Is necessary to obtain charter from Secretary of State, also certificate from Commissioner of Banking before commencing  g~  J:}:  srei~ ~~cfo.ii~,::~~~~ot~!~ ~~! ~~~;:e~s.o5~~;;~!~e E~~ii~ 1 0 11 ih~~ ~e~~e~~Tv~1;~ii~rsa~v=~~~~ta~g~:1t~~ ~~~n;e~~es;~~ b; E:~ shares so held, and for all liabilities accruing while they are such  stockholders. Trust companies doing business in this State must have capital of not less than $100,000 paid up and unimpaired. Foreign trust companies must obtain certificate from Banking Commissioner before doing business in this State. Oommissionor of Banking shall make an examination of each bank twice in each twelve months. Each bank shall make at least four reports annually to the Banking Commissioner, verified by oath of its president, or cashier. Each bank shall maintain on hand as a reserve an amount equal to at least 15 per cent of the aggregate of all deposits which are subject to withdrawal on demand. Dividends may be rtedared annually, semi-annually, or quarterly, but before declaring any dividend a bank must carry one-tenth part of the net profit accrued to i~s surplus fund until the same shall amount to 20 per centm:'n of its capi~al stock. Chattel Mortgages and Deeds of Trust. The mortgage is practically unused in this State, the deed of trust having taken its place. Liens are taken upon chattels by a deed of trust acknowledged and recorded as other deeds of trust. Conveyances. Deeds in West Virginia must be under seal. for which a scroll is sufficient in the case of a private person, and must be acknowledged or proven before two witnesses; when acknowledged witnesses are unnecessary. Any deed is void as to creditors and subsequent purchasers for a valuable consideration until and except from the time it is duly admitted to record in the county wherein the property conveyed is situated. Corporations. They may be formed under general laws, but not created by special acts. Stockholders are liable to amount of their stock subscribed and unpaid. Cumulative voting. In absence of by-law, a majority of stock pre ent constitutes a quorum. There must be at least five incorporators, who must pay in at lea.c;t ten per cent of the capital stock subscribed, and two of the iucorporators must make affidavit that said amount was paid in good faith. Corporations are not limited in the amount of their authorized capital stock. Oorporations of other states are permitted to do business in this State by complying with certain regulations. Courts, Terms and .Juri dictions. The jurisdiction of the circuit court is from $50 up. The jurisdiction of justices extends to all civil actions, provided the amount of money or damages, or the value of propert,y claimed does not exceed $300, exclusive of interest and costs, excepting actions for false imprisonment, malicious prosecution, slander, breach of marriage promises, or seduction. Only five days are required to elapse between the service of the summons and the return day thereof, but the defendant upon making oath that he has a just defen e to the action may have as a matter of right a continuance for one week. Days or Grace. (See Negotiable Instruments.) Depositions, without a commissioner, may be taken in or out or this State by a justice or notary public or by a commissioner in chancery or before any officer authorized to take dep~sitions in t~e county or state where they may be taken, and if ccrt1fled under ~1s hand may be received without proof of the signature of such certificate. Reasonable notice shall be given to the adverse party of the time and place of taking depositions. Dl'scents and Distributions. Course of Descents. When any Person having title to any real estate of inheritance shall di~ in.testate as to such estat.e. it shall descend and pass in parcenarr to h~s kmdred, male and female, in the following course: 1. To bis children and their de,;cendants. 2. If there be no child, nor the de. cendant (?f any child, then to his father. 3. If there be no father, then to his mother, brothers and sisters and their descendant.s. 4. If there be no mother, nor brother. nor si. ter, nor any descendant of e1the_r, then one moiety shall go to the paternal, the other to the maternal kmdred. in the following course: 5. To the grandfather. 6. If none, the_n to the grandmother, uncles and aunts on the same side and their descendants. 7. If none such, then to the great-grandfather or great-grandfather if there be but one. 8. If none. then to the in-eatKrandmotbers or' great-grandmother. if there be but one, ancl the brothers and sisters of tbo grandfathers and grandmothers. 9:nd their desC'endants. 9. And so on in other cases without end,passmg to the nearest lineal male ancestors, and for want of them to the nearest lineal female ancestors in the ·ame degree, and the descendants or such male and female ancestors. 10. If there be no father. mother. brother or sbter, nor any descendants of either, nor anr paternal kindred, the whole. hall go to the maternal kindred; and if there be no maternal kindred. the whole shall go to the paternal hindred. Ir there be neither maternal nor paternal kindred. the whole sh!l-ll go to the husband or wife of the intestaLe; or if th:e bushand or wife be lleacl to hi,; or ber kindred in the like course a.c; 1f such bu haud or lrlfe had survived the intestate and died entitled to the estate. 2 , Collaterals of tLe half blood .-ball inherit only half so much as those of the blood. But if all the collateral be of ~he balf-L>l9od, the ascending- kindred if any shall have double portwns. 3. \\ hen the Children of the intestate, 'or his mother, brothers anq sisters, of his gr~ndmot,her, uncles and aunts, or any of ~s female hne~l ancestors, livrng with the cbild1·en of his decea.c;ed hneal. ~ncestors, ~~le a1:d fexnale, in the ame degree, come inLo the partition, ~hoy shall take Per capita or by per on; and where a par~ of them b~i!)g d~ad ap~ a Part living, the issue of those dead ham nght to part1t10n. such I s~e Shan take per stirpes, or by stocks, that is to say, the sh!l-r:e · of their deceased parents; but whenever tbos~ entitled to pa~titlon are all in the same degree of kindred to the mtestate, they ~hall .t~ke per capita or by persons 4 Bastard· shall be capable of mh~r1tmg and transmitting inherit~nce· on the part of _their m~ther as 1f la~rfully begot.ton. 5. If a man having had a child o~ ch1ld~e? by a woma_n Shan afterwards intermarry with her, such child or ch1ldre~. uor t_he1r desrendants. if recognized l>Y him before or !lfter the marna,.,~. shall be deemed legitimate. 6. 'l'he issue of marriage de~11;1ed null m law, or dissolved bv a court shall nevertheless be legitimate. 7. Any Person in vent.re sa mere who may be born in ten mo~ths after t1?,e de"th of the intestate shall be cap~ble of taki_ng by mheritance m the same manner a.s if be were in bemg at the time of such death. Dl11trtbutlon or Personal Estate. After payment of debt;c;. etc., Personal estate is distributed in the same manner a.~ _realty, w1th the followin~ exceptions. 1 If the intestate was a married woman, a_nd leave children surviving, her husband shal_l be entitled to one-t_b1rd Of the said surplus and if she leave no children be t,hall be en_tJtled to the whole thereof. 2. If the intestate leave a widow or ~lnldren by the same or a former marriage, the widow shall_ be entitled to one-third of the said surplus, and if he leaves no children she shall   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1965  be entitled to the whole thereof. To the tate shall accrue all the persona.I estate of every decedent of which there may be no other distributee. Dower. The widow is endowed of one-third of all the real estate whereof her husband or any other to bis use was a.t any time during the coverture seized of an estate of inheritance, unless her right to such dower shall have been lawfully barred or relint1.uished. · Executions. In the circuit court can be issued after the close of the term, or the court, after the fifteenth day of the term, may make a general order allowing executions to issue after ten days from the date of the judgment or decree, although the term be not ended. For special cause an execution may issue at any time. In a justice court executions may be issued immediately, after judgment is ren0 ~e~t~i 1r~~dthe\t:!~~ul~i~~li~;r!!T1o0~h~h~J:~~~~n1\~Pi0fu8[t1~e bond may be given by the defendant, which will stay execution for  ~~t  $~8°~  n8o~%~n~~!/:r,J8J.~~~e:on1~: ~~in:,~r s~t~:odiiPo~:~t The debtor may release property upon which an execution from the circuit court has been levied by giving a forthcoming bond, upon the forfeiture of which judgment may be obtained upon motion after ten days' notice, and an execution then issued, upon which no forthcoming bond is allowed to be given. Exemptions. Any husband or parent residing in this State. or the widow, or the infant children of deceased parents, may set apart at!d hold personal property to the value of not exceeding $200, to be exempt, from execution or other process, except as hereinafter provided. And any mechanic, artisian, or laborer re idtng in this State, whet.her he be a husband or parent, or not, may hold the working tools of his trade or occupation to the value of $50 exempt from forced sale or execution. Provided, that in no case shall the exemption allowed any one person exceed $200. This exemption shall not apply to any claim for the purchase money of the personal estate in respect to which such exemption is claimed or to any proceeding for the collection of taxes or county or district levies. Such husband, parent, or infant children of deceased or insane parents may set apart a h9mestead of the value of $1,000, under certain regulations. Garnishment. The plaintiff in an attachment, or a judgment creditor may, by an indorsement on the attachment order or by suing out a suggestion on his execution, as the case may be. designate any person as being Indebted to or having in his possession the effects of the defendant or one of the defendants; and such person. upon service of the order and indorsement or suggestion upon him. is required to appear at the next term of the court, or if tbe action be before a iustice upon the day ordered by the justice, and disclose under oath m what sum he is indebted to the defendant or judgment debtor, or what effects of the defendant or judgment debtor be bas in his I.Jands. The plaintiff or judgment creditor has a lien upon such indebtedness or property from the time of the service upon the garnishee. Holidays. The following a.re legal holidays, viz.: first of January, twelfth day of February, twenty-second day of February, fourth day of July, thirtieth day of May, twenty-fifth day of December, first Monday in September, twelfth day of October. Husband and WUe. (See Married Women.) Interest. Legal rate is 6 per cent. Corporations may make special contract for a greater rate. Excess of interest above 6 per cent. if usury is pleaded, except in the case of corporations, can not be recovered . .Judgrrwnts. All judgments for money are liens upon the real e. tate of the debtor at and after, their date, or if rendered by the circuit court, from the first uay of the term at which rendered. To pre:-.erve the lien a.s aga.in.,;;t a purchaser, for value, without notice, an ahstract of the judgment must be docketed in the office of the county clerk within sixty days after its date, or before a cieed to such purchaser Le; recorded. A judgment of a justice, as against such purcha.~er. is a lien only when docketed. Judgment liens are enforced in chancery after two years from tbe date of the judgment or after the return of an execution. "No property found." Limitations. Saving certain exceptions in favor of persons under de alJiliLy no J1er. on shall make an entry on or bring an action to recover any land, but within ten years next after the time at which the right to make such entry or to bring uch action shall have first accrued to himself, or to some person through whom he claims. Personal a,tions for the recovery of money founded upon an award, or any contract other than a judgment or recognizanc-e, shall be brought within ten years aft er the right to bring the same shall have first accrned if upon a bond or other contract in writing; if upon any other contract, within five years. unless it be an action for a settlement between partner and partner, or upon accounts between merchant and merchant, in which case it must be brought within five years from the cessation of dealing. , uit upon a recognizance, not a recognizance of bail. or upon a judgment shall be brought within ten yeax·s after the right to bring the same shall have first ace-rued; and up_on a recognizance of bail, within three years. Every action upon a Judgment rendered in another state or country shall be barred. if hy the laws of such other state or country such action or . uit would he there barred. and no such action shall be brought a.gain ·t any person wnv has re.·ided in this state more than ten years upon a judgment or deITee rendered more than ten years before the commencement of such action. A claim may be removed from the operation of the statute by a promise in writing to pay the same. 1\-larried ,vomen. A married woman may take by inheritance, grant, gift, beque. ;t, or devi e, and hold a.'> her sole and separate property. free from the control and disposal of her husband and from liability for his debts, real and personal property a.s if a femme sole, and may convey and devise the same, but unle. s living- separated and apart from her husband or be be non compos mentis, can sell and conYey real estate, only when her husband consents thereto by joining in the deed or other writing. l\lortgaA"es and Deeds of Trust. Mortgages are but little used in this State. '!'hey are executed and acknowledged in the same manner as deeds. A decree of a court of chanc-ery is required to enforce them; hence, deeds of trust, under wb icb the trustee sells the property when required by the cestui que trust. after default in payment has taken pla<·e. Sale is made at public auction upon four weeks' noLice by adverti;;ement. and by posting a notice at the front door of the court house of the county in which the property is, if the property be over s:300 in value, in the opinion of the trustee. and 0 0 ro l~~(e t~;1}1'0~~ d~~rv~l?~o~l~ t~~~~ga~~c~n n~:~: tt~iyi~ahis other public places in the county (one of which, in the case of real estate, shall be as near the premises to be sold as practicable). In all ca.c;es not ice must be "erved on the grantor in the deed, his agent or personal representative, if in such county, at least twenty days prior to sala. Negotiable Instruments. Negotiable Instruments muc;t contain an unc-onditional promise or order to pay a sum certain in money on demand or a fixed or deLerminable future time to order of a Rpedfled person or to bearer, may be in installments and contain the provision that on any default the whole shall become due; may auLhorize the sale of collateral seC'ttri~ie. and confe ion of judgment; may be payable at fixed time after date or sight, or after certain specified  i~li;   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1966  BANKING AND COMMERCIAL LAWS-WISCONSIN  event, but not upon a contingency; if it reads "I promise to pay" all signers are jointly and severally liable; absence or failure of consideration is a matter of defense a.c; against any person not a holder In due course and partial failure of consideration is a defense pro tanto whether the failure is an ascertained and a liquidated amount or otherwise. Every endorser who indorses without qualification warrants that on due presentation the instrument shall be accepted or paid and if 0  ~~~~1:i~rii :~tae~~c;:s:~s~~~~~~1:i~~~~/~~gn~~;a~! c::p~U1cfi~ pay it; no days of grace; when maturity falls on Sunday or holiday  c:~:~e~f!i~: ~~xtnt~s~~in~.d~~t g~;agre ~~t~~fnlh~~~ may present same before noon on Saturday if entire day is not holiday. Pr3sentment not necessary to charge the person primarily liable, but if instrument ls payable at special place ability and willingness to pay it there at maturity is equivalent to tender; if not on demand presentment must be made on day it falls due; when payable on demand presentment must be made within reasonable time after its issue, except bill for exchange may be presented within reasonable time after last negotiation. Acceptance. An unconditional promise in writing to accept a bill before it is drawu is deemed an actual acceptance in favor of every person who, upon the faith thereof, receive the bill for value. Holder may refuse qualified acceptance and treat bill as di honored; if he takes qualified acceptance drawer and endorsers are discharged unless they authorized same or assented thereto. Protest. Foreign bills which are dishonored by non-acceptance must be duly protested ])y notary or any respectable resident when bill is dishonored in presence of at least two credible witnes"es. When bill is lost, destroyed or ,vrongly detained from the person entitled to hold it, protest may be made on copy or written particulars thereof. Promissory note is unconditional promise in writing to pay on demand or at fixed or determinable time a sum certain in money to order or bearer; where note is drawn to maker's own order, it is not complete until endorsed by him. A check is a bill of exchange drawn on a bank, payable on demand, must be presented within reasonable time after its issue or drawer will be discharged from liability thereon to extent of loss caused by delay. Where holder procures acceptance or has check certified drawer and endorsers are discharged. Check does not operate as an a.,;signment of funds to credit of drawer in the bank and bank is not Liable to holder unless it accepts or certifies the check. The West Virginia negotiable instrument law went into effect January 1, 1908, and was intended to establish a law uniform with the laws of other states on that subject. Notes and Bills of Exchange. Every promissory note, or check for money. payable in this State at a particular bank, or at a particular office thereof for di count or deposit, or at the place of bu. ine s of a savings institution, or savings bank, and every inland bill of exchange payable in this State, shall be deemed negotiable. and may, upon being dishonored for non-acceptance or non-payment, be protested, and the protest be in such case evidence of dishonor in like manner as in the case of a foreign bill of exchange; and every instrument which is made payable at a day subsequent to its date, and is otherwise in the form of a check, shall be deemed a bill of exchange. A bill or note which becomes due on a Sunday shall be payable, and may be protested, on the succeeding day; or, if that be Christma.c; Day, or the first day of January, or the twenty-second day of February, or the thirtieth day of May, or the fourth day of July, or on Labor Day, then on the succeeding Tuesday; and a bill or note which becomes clue on a day after a Sunday which falls on either of the said named dates, or on a Sunday bearing either of said dates, shall be payable, and may be protested, on the succeeding Tuesday; and a bill or note which becomes due on a Christmas Day, or the first day of January, or the twenty-second day of February, or the thirtieth day of May, or the fourth day of July, or on Labor Day, or any national or tate election day, or a day appointed or recommended by the governor of this State. or the president of the United States, as a day of thanksgiving. or for the general cessation or business, shall be payable. and may be protested on the succeeding day; and if such succeeding day be Sunday, then on the succeeding 1onday; and a bill or note which becomes due on a Saturday shall be payable before 12 o'clock, noon of that day. and if not then paid, shall be payable, and may be protested, on the following Monday; or if that be a day after a Sunday which falls on a date hereinbefore named, then on the next day. "Nothing in any law of this State shall in any manner whatsoever, affect the validity of, or render void or voidable, the payment, certification or acceptance of a check or other negotiable instrument or any other transaction by a bank in this State because done or performed on any Saturday between twelve o'clock noon and midnight, provided such payment, certification, acceptance or other transaction would be valid if done or performed before twelve o'clock noon on such Saturday; provided further, that nothing herein shall be construed to compel any bank in this tate. which by law or custom is entitled to close at twelve o'clock noon on aturday, to keep open for the transaction of business or to perform any of the acts or transactions aforesaid, on any Saturday aft.er such hour except at its own option." (1919). And no days of grace ball be allowed or counted on any negotiable instrument, except where it is otherwise provided in such instrument. The sending of notice of prote. t or dishonor of any bill, note or other negotiable instrument, by mail properly addressed to the last known postofflce of any party, shall be deemed equivalent to personal service of such notice upon him. Upon a duly protested negotiable note or bill of exchange, whether payable in or out of the State, an action of debt or assumpsit may be maintained and judgment given against all liable thereon, or against any one. or any intermediate number of them. If a person make, i · ue or deliver to another for value _a check or draft, and has not funds in the bank to pay the check, he 1s guilty of a misdemeanor if amount is under 20; if over $20, a felony. Power of Attorney should be acknowledged or proven in the same manner a deeds. Probate Law. The county court, composed of three count.y commissioners, is the probate court, with jurisdict_ion for hearin~ p~oof and admitting wills to probate, appointing personal representative· and guardians. etc. Protest. (See egotiable Instruments.) Replevln. The action of replevin is abolished. The plaintiff. in an action of detinue, can have immediate possession of the property in controversy upon proper affidavit being flied !1-n~ giving_ bond. The defendant can reclaim property o taken by plamt1ff, pendmg the termination of the suit, by giving counterbond. Taxes are a.c;ses ed a.c; of the fir. t day of April in each year, and are liens on the real estate on which they are assessed from such time. Every year sales are held by the sheriff of each county of the laD(!S delinquent for taxe of the preceding year. 9ne ye~r ~t.er sale _1s allowed for redemption. All lands, upon which no md1v1dual will bid the amount of the taxes, etc., charged thereon a such sale, are knocked off to the State. and. after the time of i;eqemption ha.-; expired are sold in proceedings by the school comm1ss1oner of each county,' and the proceeds pass to the free school fund of the 'tate. There is a tax or 2½ per cent on collateral inheritance of Sl,000 and over in value.  fl  Transfer of Corporation Stocks. Such stocks are transferable on the books of the company, under such regulations as the by-laws prescribe. Can not be transferred without consent of the board of directors, unless fully paid up, or satisfactory security given for payment of the residue. Wills. To be valid, a will must be in writing, and unless wholly written by the testator must be signed or acknowledged by him in the presence of two competent witnesses present at the same time, ~~o s~t:e ~~e!e~1 oJet~it!~:!~t'b; a!t~[s~~~ o:;ir:~~~ i~b!,1;~~= wife or husband, any beneficial interest in any estate is thereby devised or bequeathed, if the will may not be otherwise proved, such person shall be deemed a competent witness; but such devise or bequest shall be void, except, that if such witness would be entitled to any share of the estate of the testator, in case the will were not established, so much of his share shall be saved to him as shall not exceed the value of what ls so devised or bequeathed. If a will charging any estate with debts, be attested by a creditor, or the wife or husband of a creditor, whose debt is so charged, such creditor shall, notwithstanding, be admitted a witness for or against the will. No person shall, on account of his being executor of a will, be incompetent as a witness for or against the will. Where a will relative to estate within this State has been proved without the same, an authenticated copy and the certificate of probate thereof may be offered for probate in this State. When such copy is so offered. the court to which, or the clerk to whom, it is offered, shall presume, in the absence of evidence to the contrary, that the will was duly executed and admitted to probate as a will of personality in tlie State or country of the testator's domicile, and shall admit such copy to probate ~~ ~~if~!~n;~~;;e~0 }~~:i~~~~~to1~~~t~[~o:; b~~~ ~~~~ so executed as to be a valid will of land in this State by the law thereof, such copy may be admitted to probate as a will of real estate.  ~hl~e  ~:i  SYNOPSIS OF  THE LA ws OF WISCONSIN  I  RELATL G TO  BANKING AND COMMERCIAL USAGES Revised by  & BLOODGOOD, Attorneys at Law. (See Card in Attorneys' List.)  BLOODGOOD, KEMPER  Milwaukee.  (References are to ections of Wisconsin Statutes 1913 and the Lawt of Wisconsin for 191-5.) Acknowledgment . All acknowledgments of the execution o conveyance. may be before the following to-wit: 1. Within the State: Juctge or clerk of court of record, court com· missioner, county clerk, reii ter of deed . notary public, justiC'e of the peace. police justice, or nited 'tates court comm!. loner. The otficer taking • ame ·ball endorse thereon, a certificate of the makinl thereof and the date under bis hand and seal, if any. ( ataries publiC must state also date of expiration of their commissions.) Sucb acknowledgment may be in the following form. State of Wi consin, l . . . . . . . . . . 'ounty, J 55 • Personally came before me tbi. .... day of .... , 19 .... the above (or witb.in) named A. B. and (. B., b.i wife (or if an officer adding the name of his office). to me known to be the persons who executed the foregoing (or within) instrument and ach.-iiowledged tl.te same.  -............ \. -. . . . . . . .  ii~ ert ·c1es·igll&t1C)o· or ·o·mcer.)  2. Outside the tate: Judge or clerk of a court of record ootarf publ_ic, justice of tho peac~. maner in chancery, or other officer au· thorized to ~o so. or_ e:ommt.'> loner appointed by the 11:overnor for such purpose or. if at a m11irary post. before the commandlng oflker thereof, but, except as to specially appoint d commi. sioner. the ignature and the ofllce held. by the acknowledging o!Ilcer. must be certified to bY certificate or a clerk of a court of record. Acknowledgroentl outsld8 the State may be made on above or Pllrliuant to the law or such ou~ side place. ~ct_lo~s. '.fhe circuit and some county courts have general clrl1 jur1sd1ct10n; JW tlces of the peace of actions (exrept as to orome torts and action involving title to land), up to 200. In Milwaukee Count1 a new civil court has been established with general civil jurtsdlctfOJl  BANKING AND COMMERCIAL LAWS-WISCONSIN to $2,000. The practice is under a code. Non-residents must security for costs on commencing suit if same is demanded, except ,[,ve justice court, where it is always necessary. Administration of estates is vested in the county courts. Notice by publication four consecutive weeks, or otherwise as directed by the court, must be given for proof of claims. Claimants have from :~emfgt~fe tgla?:Ji~. ~,:r~a~t sie~o:f~n ail:-e 1l!~ieg~~ barred, unless the court shall grant an extension of time, provided that application is made therefor for good cau e shown not later than sixty (60) days after the expiration of the time fixed a.-, aforesaid. The time so extended shall not be more than two years from the date of the letters. Administration of intestate is granted to 1. Widow, surviving husband or next of kin, or both, or such person as they may request, if suitable. 2. If above unsuitahle. or if no request is made for thirty days  Y8fli  ~%)  art:r 1~a~~it:~r~~e(r) ~nfl~;~~~~:;tl~f\o act, then to such ot~~r ¥F~~fth8:r g~(2~ t;ip~~ 0rt:ty days after death, then any person in whose favor a cause of action exists, may obtain appointment. Affidavits. (See Acknowledgments.) May be taken before any Judge or clerk of a court of record, commi. ioner, county clerk, notary public, justice of the peace, United States court commi5sioner, or regisGer of deeds. They may be taken in any other state or territory, before any judge, court commissioner, master in chancery, notary public, justice of the peace, or other officer authorized to administer oaths: but mu,;t have attached tbe certificate of a clerk or other proper certifying officer of a court of record of the county or district in which it was taken, under the seal of his office, that the per on whose narue was subscribed to the jurat wa.,;, at the date thereof, such officer as he is therein represented to be, and that he believes the si~nature of such officer to be genuine. Aliens may acquire, transfer, and inherit property like citizens. except that non-resident aliens cannot acquire more than 320 acres of land by purchase. Alien women are not barred of dower. (See Descent, Dower.) Arbitration. AU persons, except those under disability, may, by agreement in writing, with one or more witnesses, submit any controversy, except claims to real estate, to one or more arbitrators, and, if stipulated, judgment may be entered on the award. Arrests are permitted in certain actions based on tort or fraud and in actions for fine or penalty, and for recovery of personal property unjust-ly detained or concealed: undertaking must be given for costs and damages from arrests. No female can be arrested on any action except for willful injury to ~erson, character or property. Assignments for Benefit of Creditors may be made by an insolvent debtor to such person, being a resident of thi State, as he elects. who must give bond in a sum not le. than the present value of the assets. The assignee must file list of creditors and inventory within twenty days, and notify creditors who may prove their claims by aflMavit flied with assignee or with clerk of circuit court of county where debtor lives. Proof of claim must be so filed within ninety days after assignee gives notice, or creditor is barred from dividend ordered and paid before claim fl.led. Debts to employes for wa"'es, etc., earned within three months, are preferred by law, and the same for six months may be preferred by the assignment. All others must prorate, and other preferences avoid assignment. Attachments. (See Garnishment.) May be had, on contracts, when indebtedness exceeds S50, for absconding from tate or concealment in it, to avoid proce s: for fraudulent dispositiC?n or r~m?yal, actual or intended, of property; for fraudulent contraction of !Jab1l~ty: for official defaults: or against a non-resident. or a foreign corporat10!1· On torts, it may be had in the two latter ca es. It may be bad m justice court wben indebtedne s exceeds $5. 00. on the same grounds, and also for 1:esidence of defendant over 100 miles away and in another county of this State. The writ issues only upon affidavit of the ground for it and of the debt or tort, and (except in justice court) a bond f~r $250 must go with it. Attachment may be had on a debt. not due .. if bond is given for thrice the debt; but on failure to sustain the ~1t, the action too fails. Attaching creditors do not prorate. (See Assignment for Benefit of Creditors.) Banks. State banks may be formed by any numbc_r of adult per ons who are residents of Wisconsin, not less than five in number. The aggregate amount of the capital stock of any b!3-J?k shall. not be less than ten thousand dollars in town , village. or cit1e havmg less than fifteen hundred inhabitants: and hall no~ be le s than twenty thousand dollars in towns, villages or cities h~vmg .more tban fifteen hundred and le s than thirty-five hundred mpab1tant~: and sh.all not be le. s than twenty-five thousand dollar Ill any village or city having more than thirty-five hundred and less than five th~w and inhabitants, and shall not be le. s than thirty thousand dollars m any city having more than fl.ve thousand and less than ten th(?usand inhabitants; and shall not be less than fifty thousand doll.ar m any city having more than ten thousand inhabitants, accordm~. to the last offlrial census: provided that in a town of any populat10_n not having within its limits an incorporated or u~incorporat d city or Village with a population of fifteen hundr~d mhab1tant or more, this section shall not require a capital stock m e.·ce.·s of ten thousand dollars. By recent acts the office of bank examiner ha been create.d. A careful scrutiny of state banking is now provided for, the duties of the , tate bank examiner being in general analogou to th~. e of the federal examiners of national banks. The tate bank exa1.mn~r must examine the affairs of each banlc in the state. at least twice ID each Year, and at any ot.lier time that he deell_ls. 1t nece ·sary,. and ball have free access to all records, books, securit1e and pap~_r , and may examine on oath any officer or employe as to the busmes. of the bank. At least five times in the year every bank shall re1;>C?rt to t!J.e exa~iner unon a pre cribed form, sh 01ying f~lly the c011d1t!on. of its busrness. .:.\uch reports shall be .Published m a new~pap.t?r rrm the county. The examiner shall publish annuall.Y,. repor~ • l~o.,, m,, · tatements by banks. 0 security but the irtdind~al halnhtY of ~ach stockholder to the amount of his stock 1s reqwr.ed from. banks of depo. it and discount only, but this liability rer~iam· for : 1x 1!1onths after disposal of stock, and by written declaration eac~ stocl,holder may become individnally liablo for all debt:-: of the )lanl~. .· . . It is made a mb;demeanor by statute to issue a .check "1th intent to defraud when the maker has no funds on deposit. Bills of Sale. (See Sales.) Chattel l\fortgages must be flied in town or city clerk·s office. or actual possession must be taken and kept by mortgagee. lo make ldhebm go.od against.third parti s: and, w~e1~ Ille~. they mu.·t be renewe . Y filing aOldavit of amount unpaid w1thm tlurt:i, day before tbe expiration of every two years from date. When such mortgage sh~ll. be of a tock of goods, wares and merchandise. o~ of fixtures pertam1~_1~ to same. the mortgage ·hall in addition. be flied ID .the o~ce.of the re.-1 ter of deeds in the county in which town. city O"!" village 1s situated, !n the ofJlce of the clerk of which t.110 mortgage 1s flied. lf (?11 h~u el~old furniture or ex mpt chattels (see I<~xe~1ptions), they are m,·:i.hd without the wife's signature befor two witnes es. If on tocks of mer-  w)   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  fo~  1967  chandise, the mortgagor every sixty days must fl.le a verified statement of amount sold, payments made, and new stock added; if this statement is not so filed, the mortgage becomes due between the parties and invalid a.,; to third parties fifteen days afterward. Foreclosure sales cannot be had without mortgagor's consent, and the goods cannot be removed from the county within five days after seizure. On satisfaction of mortgage, certificate of mortgagee may be fl.led and original mortgage removed from flies. Interest is limited to 10 per cent per annum: and all fees for renewals, etc., limited to 14 per cent per annum. There is no prescribed form of chattel mortgage. Conveyances of any interest in land may be by deed signed, sealed and acknowledged by person conveying without any other ceremony, but no alienation by a married man of his exempt homestead shall be valid without the signature of his wife to the same. The following conveyances are sufficient to pass all estate grantor can lawfully convey and imply the usual covenants. Warranty Deed. A. B. grantor, of ...... county, Wisconsin hereby conveys and warrants to C. D .. grantee, of .. . .. county, Wisconsin, for the sum of ..... . dollars. the following tract of land in .... county (here describe the premises.) Witness the hand and seal of said grantor, this ...... day of ... . 19. . . . . In presence of  ::::::::::::::::::::::::  .. ::::::::::::::::::::mitt~  Quitclaim Deed. A. B ., grantor, of .... . ... county, Wiscunsin, hereby quitclaims to C. D., grantee, of ...... county, Wisconsin, for the sum of ....... . dollars, the following tract of land in ...... county (here describe the premises.) Witness the hand and seAl of said grantor, this ..... day of ..... . 19 .... , in presence of ...................... (SEAL) ....... . . . ... . ........ (SEAL) Mortgage. A. B., mortgagor, of ........ county, Wisconsin, hereby mortgages to C. D., mortgagee. of ........ county, Wisconsin, for the sum of ...... dollars, the following tract of land in ...... county, (here describe the premises). This mortgage is given to secure the following, indebtedness (here state amount or amounts and form of indebtedness, whether on note, bond or otherwise. time or times when due, rate of interest, by and to whom payable, etc.) . The mortgagor argees to pay all taxes and assessments on said premises. and the sum of .... dollars attorney's fees in case of foreclosure thereof. Witness the hand and seal of said mortgagor this .... day of 19 .... , in presence of ...................... (SEAL) ...................... (SEAL) Corporations may be formed by at least three adult residents of state under written articles, stating business and purposes of corpora.ti.on. name, location, capital stock, number of shares and par value. Articles must be recorded with secretary of state and in c~unty where corporation is located. Until at least one-half of the cap1t~l stock is duly subscribed and at lea.c;t 20 per cent thereof actually paid in, corporations cannot tr:i.nsart business with other than members. When a corporation is so organized, stockholders are liable to am?unt of stock subscription until same is fully paid. In case of bankmg corporations stockholder is further liable for dehts of bank to amount of hi· stock and similarly in other corporations for sLx months wages. Foreign corporations engaged in manufactw:ing within.W~sco!'sin, shall upon written request by any resident creditor. fl.le within sixty days! and annually thereafter, a statement sho~in~ the amount of capita subscribed and amount thereof actually paid m, the full name of each of stockholders and amount of stock held by each, and the proportion of its capital stock represented by it,s ·w isconsin property, and must pay to secretary of state upon such proportion over $25,000 one dollar for every $1,000. If corporation subject to license fees, such payment shall not exceed $25. (Chapter 39(}, Laws of 1901.) When these and all other provisions of statutes complied .with, .secretary of ~tate issues license to corporation to transact bus1Dess m State. Failure to fl.le statement deprives corporation of right to carry on or transact business in Wicsonsin. Under the revision of 1898 is provided that no corporat~on,. joint stock company, expre company, or common law partnership, mcorporated or organized otherwise than under the laws of tJ:u~ State, except corporations or associations created solely for rehg1ou~ or charitable purposes, insurance companies. a!1d.fraternal .or .bene~ciary corporations, societies, orders, and n.ssociat1ons furmshmg hfe or ca.,;ualty insurance or indemnity upon the m~tual or assessmen~ pla~. shall transact business, or acquire, hold, or dispose. of property m ~hlS State until such association. company, partnership, or corporations shall have caused to be filed in the office of the secretary of state a duly authenticated copy of its charter, articles of association or in~orporation. or of co-partnership, and all amendments t~ereto which 1:1ay be made while it shall continue to do business therem. Organizatrons complying with this rule shall be deemed to have appointed the secretary of state their attorney, upon whom all process may be made arising out of busine. s transactions in this , t.ate, and ~he ;iecretar.Y of tate shall mail a copy, thereof addressed to such orgaruzat1on . Violation of this rule suhjects the organization t,o a penalty of $500, and invalidates all contracts made by any such organizatio~ failing. to comply with this rule, but such contracts may b.e enfore:1ble ~amst it or them. Every foreign corporation transactmg busme·s ~n this tate shall annually between January 1st and :\1arch 1st, file with the secretarY of state report sworn to by the president, secretary, trea urer or general manager contaID;in~: (1) ame and location _of prin<:iP/1-1 office wlt,hout this State and prmcipal ofilre or place of busmess .witbm this tate, if any. (2) ames and addresses of officers of sa1~ co~poration and name and address of agent or manager repre.c;entmg 1t within thi Htate. (3) ature of business done in this State during preceding year. (4) Capital stock in money, property, or services. (.5) The proportion of the capital stock represented. in the State of Wisconsin. (6) That such corporation shall comply with all the laws of the State in regard to foreign corporations. In case of failure to file such report in the time above. tat,ed, such corporation shall pay 25 a. penalty if filed before May 1st. In case report not filed then, the license to said corporation shall be ,·oid. Courts. (See Actiorn;;.) Days or Grace are abolished by tatute. Depositions. The depositions of any witnesses residing within the state, may be taken. for u e in the t,rial of an action, when such witnes. shall live more than thirty miles from the place of trial or hearing of the action , proceeding or matter in whi ·h his testimony is desired. or is beyond reach of the ,;ubpcena of the court, or when he shall be about to go out of the state. not intending to return in time for the t,rial or bearing, or when he is so sick, infirm or aged as to make it probable that he will not be able to attend at the trial or hearing, and for other ground. which are le s important: such testimony may be taken by the pa1·1 y desiring to u ·e the same , under commission, upon written or oral interrogatories. or it may be taken on ordinary notice without the commission. Notice in writing shall be given to the adver. e party, his attorney, or agent. that the deposition of the witness or witnesses named will be taken before the officer, naming him, at a time and place appointed therein. for one of the cau es mentiont1d in the preceding paragraph  a   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  BANKING AND COMMERCIAL LAWS-WISCONSIN  1968  and three days' notice shall be given of the taking of such deposition, whether taken within or without the state, and additional time at the rate of one day for each three hundred miles, or fraction thereof, after the first ten miles from the place where the notice is served; provided, that one day's notice shall be sufficient to authorize the taking of depositions of additional witne"ses desired to be examined, given during the course of the ta1."ing of any deposition. Commissions may issue to any judge, master in chancery, notary or justice, or to any commissioner; no commission shall issue to any attorney who ls the attorney for either party, except by express stipulation. All objections to the competency of witnesses or the propriety of any question put to him or the admissability of any testimony given by him, must be made at the time the deposition is produced, and unless so made is considered waived. Descent and Distribution. Realty (except homestead, q. v.), unctevised, descends to: 1. Children and their issue, if all are in the ·ame degree: el e by right of representation. 2. Widow or husband surviving. 3. Parents, or survivor of them. 4. Brothers and sisters, or if deceased their issue by right or representation. ,5. Other next of kin in equal degree. All realty owned in husband's life is subject to dower unless barred by wife's assent to deed, or by a jointure or provision by will accepted in lieu of it; and all owned by wife at death and not devised by her or descended to is.'me by a former husband. is subject to a tenancy by the curtesy. Acceptance by widow of jointw·e or provision is presumed unless she gives notice of refusal within one year. A non-resident wife is dowable only or lands owned by hu.-.band at decease. Tenancy by curtesy is independent of issue. Personalty is distribut.ed by rule-widow entitled to same shai-e as a child. If no issue, all property goes to surviving husband or ,vife. A Wisconsin law imposing inheritance taxes has been declared constitutional. Dower and Curtesy. (See Descent and Distribution.) Executions from justice court may be stayed by bond for periods varying with amounts, from a court of record only by security on appeal. There is no lien on chattels till levy and sale is on twenty  ~~~ f~~~e.ju.'l~i~:,e~~t~e~ ;fd b~g~t ~hctg~}\e~~~r~f~~~t gfu;~a~f 1  the county where the land lies; all papers or certified copy may be ale filed in county where land lies for enforcement of judgment. ls had on six weeks' notice, and sheriff's deed ab olute issues after fifteen months without redemption. Supplementary proceedings lie after issue of execution, and after return unsatisfied. Execution is is.'!ued, as of course, in favor of judgment creditor or his assignee, within five years after judgment: after five years, only on authority from the court. Exemptions. (See Homesteads.) Exempt chattels are clothing, bedding, stoves, cooking utensils and other furniture to value of' S200; libra1·y; two cows, ten swine, two ho1·ses or mule'l (or one of either and a yoke of oxen), ten sheep and their wool, and a year's food for all exempt live stock; a wagon, a sleigh, a dray, a plow and $200 worth of other farm tools or tackle for teams; a year's provisions for debtor and family; tool'l and implement , or stock in trade, or both, up to 200; sewing machines for family u ·e; printing materials and pres.'les of a printer or publisher up to 1,500 (except that as to claims of laborers and servants for services, only $400 shall be exempt); patents, owned · by the inventor; three months' earning· (not over GO a month), if the debtor has a family to support; and all insurance money on exemptions. .Mo t of these exemptions avail residents only. Corporations have no exemptions. Partners, however many, may take exemptions as individuals from joint asset . None of above property exempt from execution or attachment in action for purchase money or the same property. If husband does not select exemptions, wife may.  False Pretenses may be committed by word or writing, and are punishable by fine or imprisonment. Garnlslunent. (See Attachment.) This remedy lies in any court, upon affidavit for it showing indebtedness and the debtor's ~o undertaking is lack of suflkient non-exempt assets to . ati ·fy it. required. Thl is a common mode of te ting an alledged fraudulent transfer or invalid assignment for creditor. . All garnishee. may be united in one summons. and be deemed severally proc:eeded against unless otherwise spec•ifled; money garnisheed must be paid into court; property garnisheed may he released on giving sufficient undertaking. Auswer of garnishee is conclu.-,ive unless ic sue taken thereon. If o taken, security for l'Osts may be demanded and trial had a.s in other acLions. and examinaLions of garni hee allowed. Garnishment may be released by proper undertaking in lieu thereof. Homestead. (See Exemptions.) Real estate not exceeding $5,000 in value and not over one-quarter acre in a city or village, or forty acres for agriculture in the country, is exempt to the actual resident owner. So. too, of its insurance, when burned, or its proceeds when sold and held not over two years for purchase of a new one. (Chapter 269. Laws of HlOJ .) But it is subject Lo mechanic's and mortgage liens, created with the wife's assent, and it cannot be conveyed without her ::.ignature (except that purchase money mortgage is good wit bout wife's signature.) On death of owner (unless widow is otherwise provided for to her satisfaction) it goe: to her for life or widowhood; then, as other realty, to the heirs. (See Descent.) Husband and Wlte. (See Married Women.) Interest. The legal rate is 6 per cent; maximum contract rate, 10. Usury (except in bottomry and re. pondentia bonds) forfeits the whole interest if not yet paid: if paid, treble the unlawful exce may be recovered by suit within a year. ( ee Chattel :'.\1 ortgages.) Judgment . ( ee Executions and Limitations of Actlons.) Judgments in circuit court keep debts alive for twenty years, are lien. on land when docketed for ten years, and bear legal int ere ·t. Judgment of foreclosure hear interest at rate ·tated in mortgaize note, but shall not exceed tbe minlmum rate of interest. i. e. G per cent. Transcripts of judgments recovered in ju ·tice court, may be docketed in circuit court and thus become a lien. Judgments may be satisfied by attorney or judgment creditor within five years; afterward bt judgment creditor only. Lien . l\Iechanlcs have liens on personal property to the amount of repairs. Every innkeeper, hotel keeper, and every keeper of a boarding house or lodging hou'-e, whether individual. copartuership, or corporation, shall have a lien upon aud may retain the po se, ·ion of all the baggage and other effect:,, brnught into his inn. hotel, boarciing house. or l<>rlging house by any gue ·t, whether the same is the individual property of such gue ·t or under his control, for the proper charges owing such innkeeper. Livery stable keeper. and per. ons pasturing- hor.·es, cattle, etc., have liens on property in their possession. Consignees and factors and brokers have certain liens for advances made by them. Limitations of Action are these: On sealed Instrument, when cause of action accrues within the , tate, twenty years; when it accrue· without the , tate, or on equitable cau.-;e of action, or a foreign jud~ment, ten years; on a municipal bond or other contract eYen when 8ealed, on any unsealed contra1·t or liabllit)' at law, or trespass, trover, or replevin, six years; on aC'tion aiz:ainst a sheriff or other officer for violation of duty, three years: on action for a penalty or forfeiture, for an injury to per.1on or character, two years: on an action for equitable relief agninst fraud, within six years after discovery of the facts constitut,ing the fraud; on an action for recovery of realty, ten years  after the adverse po ession begins, where occupant claims under a paper title; otherwi. e. twenty years. ·w henever any land or any interest therein nas been or shall hereafter be taken, entered upon or appropriated for the purpose of its bm,iness by any railroad corporation. electric railroad or power company, telephone company or telegraph company without <;aid corporation or company having first acquired title thereto by purchase or condemnation, a· statute requires, the owner of such land, his heirs, a.<;Signs and legal representatives shall have and are hereby gh·en the right to at any time within twenty years from date of such taking, entry or appropriation, sue for damages sustained, in the circuit court of the county in which land is situated. Absence from state, after cause of action accrued, suspends running of statute as does part payment, infancy, insanity,  ~Tl~~ur:~.  0  ~f:f~~~fc~T~twri:~~~fv~~i~jr~~!~Pa~ ~u°at~~°e~S!3 years from time or injury, de cril>ing it and grounds on which claim is made. The time is limited to one year in actions against railway companies for fires and injuries to animals. In Cal e of injury to person upon highway, notice mu t be served within fifteen day in case of a city or village and thirty days in case of a county or town. No civil action may be commenced or pro. ·ecuted against any pen-on in military ervice of the country during the present war, ·uch exemption not to extend longer than three years after the mustering of such person into service, such time not to be taken as any part of time allowed in statutes of limitations. Limited Partnerships. A uniform partnership act was passed by the Legislature of 1~15. Married l\'omen. (Ree Chattel Mortgages, Homestead.) Have in general the same rights as other adults, except that they cannot become liable as c;ureties without an express charge of the debt on their separate estate. They can receive. hold, and convey property; transact business in her own name for herself: and may he sued and may sue in her own name as though she were unmarried and her husband or his creditors cannot reach her separate estate. A deed by a married woman without her hu.c;band's signature pa;·ses her entire estate in land, free of his tenancy by the curtesy. By statute she can deal with her hu.sband ln exchanging property, as with any other person~ \Vomen become of le.,.al age at 21 years, but married women can make will and bar dower at 18. Mechanics' Lien .  Every person, firm or corporation, which, as  fab~r~hi~eFtnc~1~s e:in~8:te~i~t;1~~ ~i- :v~~iE:.: rii~P;J/~~~r:~~ tions in or about the erection, repair or removal of any dwelling house, 0  1  0  building, bridge, wharf or dock, shall have a lien upon the interest of the owner thereof. and upon the land upon which it is situated, not exceeding forty acres, or if within the limit of a city or incoruch lien shall be prior to porated village, not exceeding one acre. any other lien which originates subsequ~nt to the commencement of the construction, repairs or removal aforesaid, and <:hall also be prior to any unrecorded mortgage given before the commencement of such construction, repait-s or removal. Persons. firms or corporations, other than principal contractors, who perform any work or furnish any materials in the aho\'e cases. shall have a lien provided they shall give notke in writing within thirty days after performing the first work or labor, or furnishing the first materials to the owner of the property upon whkh such work is performed and material· furnished, by personal service on the owner, or his agent, or by letter addre ·sed to . uch owner, or his agent, at the la.st po t office addre s or such owner, or agent. with postage duly prepaid, to the effect that he hiu; been employed to perform work or furnisll materials, describing the real estate upon whi<:h tlle same is to he performed. EYery contractor, either principal or otherwLe, at the time of the purchase of any material.·, shall deliver to such materialmen a de.·cription of the real estate upon which the material. are to l>e used, and the name of the owner. Every such flrm, person or corporation, other than principal contractor, must within si. ty days after the date of performing the last work, or furnishing the la t materials, file in the otl!ce or the clerk of the Circuit Court of the county in which ·uch real e tate i · ituate, together with a copy of u h notice, a claim for lien, s tting forth his employment, with a statement of the labor and materials, and the amount owing, and lhat he claims a lien; and in all other <!ases not mentioned above, (this evidently means a principal contractor) the person or firm must, within six months from the dnte of the Ja-,t charge of furnishing materials, file a claim for suC'h lien in the ofllce of the clerk of the Circuit Court of the cowity in whi<'h tµe lands affected thereby are . ituate, and must bring bi. action, and summons and complaint must be filed, within one Y<'ar from such date. unle: · within thirty days nex:t preceding the expiration of such year, the lien claimant shall mal,e. and annex to the instrument on tlle an affidavit, setting forth the interest which lien claimant has by virtue of such lien. The effect of such afllclavit shall not continue beyond one year from the time when such lien would otherwise c-ease to ue valid. Other persons, a well a,<; principal contractor:-;, . hould likewise ·tart their actions within one year from the date of the last charge for performin"' such work and labor or furnishing of materials. l\fortgage . (See hat tel. fortgage , Deeds.) Negotiable In trument . ( ee Promi. ·ory .i:'otes and Bills.) Probate Law. The Jurisdiction of the county court, extends to probate of wills. granting of letter te tamentary and of administration on the e tate of all person. deceased, who were, at the time of their decease, inhabitant. or resident· of the same county, or had property in ::;uch county to be administered. .::uch jurisdiction also extended to appointment or guardians and tru. tees, and . ettlemeut and control of estate· of minors and persons under guardianship. ( ee Administration.) Promis ory , "ote. and Bill . By chapter 356 law" of l 99, the so-called uniform negotiable in ·trument · act became the law in Wisconsin. Its general el! d i · to strengthen decidedly the negotiable character of commercial paper. The following are the principal change: ill the Wiscon. in law: 1. Prote. t may l>e made uut It is not necen;ary ex_cept in ca:·~ of foreign bile· of exchano-e. 2. If a place of parment IS :pacified 1~ the note ~L mu:t be pre enled at that place. 3. 'I he fact_ that a note.is to be paid wit,h exchange, witll co. ts of col• lection, or w1th attorneys fees, or l>ears a ·ea!. doe· not arre t its negotiability. 4. A holder who derives hi title throul(h the holder in ?Ue c9urse and, who is not him-;elf a party to any fraud. duress, or 1llegahty affect111g the Instrument, has all the riKhl of uch former holder in ~espect to all parti prior to ·uch holder. 5. An instrument obtained by fraud, <lure: . force, or fear or l.Ja:·ed upon an illegal con ideration, is defective instead of void, but if the maker did not know the nature of the instrument, and could not have obtained ·uch knowledi?e by the w e of ordinary care, the title of the holder is absolutely void. War~house receipt. are negotiable unle: e. pre sed not to be. Munictpal orders, bonds, etc., are not ne:rotiahle uni s expre:· ll authorized by law. Days of grace are aboli:hed. Damage. on forei~ bills 5 per cent, with co ·ts and charge of prot st One action ?egotlable may be brought against all parties liable on a note or bill: pape_r maturing on unday or holiday becomes due on the next succeedmg secular or busine:·s day. Acceptance mu:t be ln writing and signed by the drawer, and if acceptance is not written on the bill when  BANKING AND COMMERCIAL LAWS-WYOMING requested, the bill may be treated as dishonored. Notes. bonds, or other contracts based in part or wholly upon money staked, lost or won on ~ambling are absolutely void. Replcvin. Specific personalty may be recovered by this action, but in cases where immediate possession of such specific personalty is demanded, It must be on an affidavit by or for plaintiff' showing his title or right of possession and defendant's wrongtul detention or taking. The defendant can regain possession of the property pending the suit by due security in his turn. In case of contest. allegations of • affidavit must be proved as questions of fact. Sales are prima facie invalid, unless ac-companied by immediate and continued change of posses ·ton. Unless the vPndee proves his good faith this pre,;umption is absolute. Installment leases and eontract for sale reserving title to vendor till full payment must be written and filed like chattel mort"a~es. Conditional sale contracts for furniture or household etrer.ts bec-ome chattel mort.ga~es as soon as 50 per cent of purchase pri<'e has been paid, and right to redeem in case of i;;eizure is given vendee. (See Chattel Mort i:rages.) "Futures" In grain, etc., are void if intended by both parties only as a wager on prices; else, valid. By chapter 463 of the laws of 1901, the sale of any portion of a stock of merc-handlse, in bulk or otherwise, than In the ordinary course of trade and business i!'I presumed fraudulent and void as against creditors unless the seller • and purchaser. at least five days before the sale. notify personally or by ref.{Lc;tered mail each of the seller's creditors of such proposed sale. By Chap. 549, Laws of 1911 . the "uniform sales act" wa-; adapted and went into effect January 1, 1912. It codifies the law on the question of sales, contracts, warrantees, rights of parties, and defines terms ordinarily used. Supplementary Proceedings. (See Executions.) Taxes are assessed as if May 1st, and must be paid by the first day of February, or certain interest will be Incurred. If taxes are not paid 1 rfel~not~t~ ;;38!fde~n tr~e :~~0!1~rf~~de:v ~~lijri~~~e~~ tbereaft.er. The tax certificate, therefore, bears interest at thP rate of 10 per cent per annum, and after three yea.rs. unless sooner redeemed, a deod lR issued to the purchaser. As between the grantor and the grantee of land . where there are no express agreement.s as to whiC'h shall pay the taxes as.-;essed thPreon for the year in which the conveyance i:s macte, if said land ls conveyed on or before the first day of De<'eruber, then the grantee shall pay the same. and if conveyed after that date, then the grantor shall pay the same. Transfer of Corporation Stock. Shares of stock are transferred by endorsement and delivered good in the hands of buna fide purchaser. or pledgee, for value as against all partiPs. The corporation may treat bolder of record as holder ln fact until transfer on rec-ord or new certificate Issued, and courts will compel such record or issue. Wills. Any person over twenty-one and a married woman over eighteen years, of sound mind, may make a will, which must be siimed by testator, or in his presence and at bl!'! request, and also attested and subscribed by two witnesc;es in his presenc-e and at his reque.c;t, and in the pre.-;en,·e of eac-h other. Nunc-upatlve wills under certain strict condlLloni. are allowed. Revocation is by usual modes of destruction or by writing executed under the formalities of a will. Workmen's Compensation Act. This act was pa.s ed by the 1911 Le~islature and amended in 1913. It takes away some of the common law defenses of the ma.c;ter and provides for payment of a certain amount of the servant's wages durinc; dic;ability, and also in case or death. It ha.c; been held constitutional, and though comparatively new, meets with favor.  {!~:t~::;1  SYNOPSIS OF  THE LAWS OF WYOMING RELATING TO  BANKING AND COMMERCIAL USAGES Prepared and Revised by KINKEAD & HENDERSON, ~ttorneys at Law, Cheyenne. {See Card in Attorneys List.) Acknowledgments must be made before a Judge or c!erk. or a court of record, or before any couuty clerk. n9tary public, Justice of the peace, or United States commissioner. wlthm this tate. If f?&de out of the State before any officer authorized, by the state or territory in Which It Is made to take acknowledgments, before the clerk of any COurt of record, or before any commissioner appointed by the governor   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1969  of this State for such purpose, provided that if such acknowledgmeni is not made before an officer having a seal, it must have attached thereto a certificate of the clerk of a court of record, or a county clerk of the same place, having a seal. certifying that the officer taking the acknowledgment is authorized to take the same, and that he believes that the signature appended to the acknowledgment is genuine. Every notary public, ju.<;tice of the peac-e, and commissioner of deeds for Wyoming, who takes an acknowledgment to any written instrument to be recorded in any public office in Wyoming, shall add to his certificate the daLe when his commission or term of oflice expires. It is lawful for a notary public. who is a stockholder, director, officer 0  r:;  0  0  :~f  1  ~e~f ~} ~~~ttt~ka~; ~i~~e~ i~~t::~~n~ e!!~~tl~e t~c~~'; c1. corporation. C onveyances must be signed in the presence of one subscribing witness. Forms of certificate of acknowledgment may be found in Session Laws Wyo., 1017, p. 58. Actions. The distinction between an action at law and a suit in equity is abolished and the district courts of the various counties have a general common law and equity jurisdiction. Justices of the peace have jurisdiction. except in cases where the title to land comes into controversy, t,o the amount of $200. Non-residents of the State are required to furnish security for costs if application is made for that purpose, or to pay the costs of the action as they accrue. (See also courts and suits.) Administration or Estates. All probate jurisdiction is vested in the distric-t c-ourt of the county of dec-edent's domicile, or in the case of a non-resident , of thP plar-e where his property or the greater portion thereof is situated. · Administrators, exec-utors and guardians are appointed on petition and notice , the surviving husband. or wife, having preference of appointment ordinarily. Administrators and executors are required to furnish security.to an amount equal to double the value of the personal property and the rents . is.'iues and profits of the real estate. Guardians are required to give bond in such !'!Um as may be prescribed by the court. Foreign executors can act here upon filing proof of their appointment as executor. and of the admission of the will to probate in the foreign jurisdiction. Administrators and executor!'! are entitled to posses.c;ion of all real and personal property and the inc-ome of all realty, exc-ept the homestead, during the period of adminic;tration. Claims against the estate of a deceased person should be presented to the executor, or administrator, for allowance within six months from the date of the letters testamentary, or of administration, and if such claims are not presented for allowance '\\ithin one year from the date of such letters, they are barred. Uniform Foreign Probate Act adopted in 1921. Afflda,its. Affidavits may be made before any officer authorized to administer oaths. Allens. The State constitution provides that no distinction shall ever be made by law hetween resident aliens and citizens as to the possession, taxation, enjoyment and descent of property. Arbitration. 'rhe law provides that all persons who have any controversy. exeept those relating to the posseRsion or title t9 real est.ate, may submit such controversy to the arbitl'ament, or ump1rage, of any person or pnsons. to be mutually a"reed upon by the parties, and they may make i.ueh submission' a rule of any court of record in the State. Tbe law further provides for prore:;s to compel the at-tendance of witne<;.ses bef01·e the arbitrators, and for the enforcement of the award of the arbitrators when one is made. Arrest and Rail. Arrest of the defendant In civil actions may be made on grounds very similar in character to those upon which a writ of attachment may be issued against the property of the defendant. AssignnlCnts and Insolvency. An insolvent debtor may make an assignment in good faith to one or more a. igneos for satisfaction of creditor'-. No preference of creditors or payment of false or fraudulent claims ls allowed. The a..-;signment must be in writing, executed according to the laws of the State, and must be flied and recorded in the office of the county clerk of the county in whlch the assignor resides, or hM his principal place of businesc; if be be a non-resident of Wyoming. Within fifteen days after the exec-utlon of any such assignment the assignee i-ball flle a certified copy of the assignment and schedule In the office of the clerk of the district court of tbti county in which the debtor re!'lides, or ctoes busines.'l, and shall. before entering upon the execution of bis trust, make oath that he will faithfully execute the same, and shall at the same time file wltb a clerk a written undertaking to the State of Wyoming with, at least one suffi<'lent surety, in a sum double the value of the property a."8igned conditioned for the faithful discharge of the duties of his trust. Attachments may issue against the property of persons who are non-residents of this State or are about to become non-residents or a foreign c-orporation; or when the defendant has abs<'onded with intent to defraud bis creditors; or has left the county of his residence to avoid the service of summons; or so conceal,;; himself that a summons cannot be served upon him; or is about to remove his property or a part thereof out of the jurisdiction or the court with Intent to defraud h1a creditors; or is about to convert hie, property or a part !hereof into money for the purpose of placing It beyond the reach of bis creditors; or has property or rights In action which he conceals; or ha.c, as'llgned, removed, disposed of, or is about to dJspose of his property or a part thereof with intent to defraud his creditors; or has fraudulently or criminally contrac-ted the debt or incurred the obligation for which suit is about to be or has been brought. In order to obtain an attachment the plaintiff, hLs agent or attorney, must make affidavit showing the n°ature of the plaintiff's claim, that it ls just, the amount which the affiant believes that the plaintiff ought to rec-over. and the exl tence of any one of the grounds for attachment mentioned above. or that the affiant ha.'> good rea.c,on to believe and does believe that some one or more of said grounds (stating which ones) exists. The plaintiff' must also give an undertaltlng with sufficient surety, who must be a resident property holder In the State, and be approved by the clerk of the court by whom the order of attachment is is.sued, in a sum equal to douhle the amount of the plaintiff's claim, to the effect that the plaintiff shall pay the defendant all damages which he may sustain by reason of the attachment if the order prove to have been wrongfully obtained. Garnishee process may be had in aid of attachment. A creditor may bring an action upon a claim before it to due and have attachment against the property of the debtor when a debtor has ,,;old, conveyed, or otherwise disposed of bis proverty with a fraudulent intent to cheat or defraud his creditors or to hinder or delay them In the collection of their debts; or Is about to make such !'!ale, conveyance, or disposition of his property with such fraudulent intent; or Is about to remove Ws property of a material part thereof with the Intent or to the effect of cheating or defrauding his creditors or hindering or delaying them lo the collec-tlon of their debts; or where the defendant Is about to become a non-resident of the State. An attachment authorized In ca.<;e of a debt not yet due may be granted by the court in whlrh the action ls brought or by a judge thereof, but an affidavit and undertaking of the creditor similar to those required for attachment In ca..se of a. debt pa.c;t due must be executed before the writ of attachment will be issued. In civil actions before a justice of the peace Involving an amount not to exceed $200 when affidavit ls flied showin11; that claim is Just and ls founded on contract express or implied and is not secured attachment will issue. Banks. The legislature is prohibited from passing local or special laws, chartering banks, insurance comvanies. and loan and trust companies. There ls in the law a provision that shares of stock in national   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  BANKING AND COMMERCIAL LAWS-WYOM!NG  1970  state the time and place of taking the depositions. Depo itions may and other banks are subject to taxation, and certain provisions in the civil code in relation to a course of procedure for the purpose of prebe taken before any officer authorized to administer oaths. The officer venting a banking corporation or its trustees or directors from making ta.king the depositions must annex thereto a certificate showing that an improper disposition of the funds or other property of the bank, or the witness was first sworn to testify the truth, the whole truth. and violating any franchise of the corporation. All banks except national nothing but the truth; that the deposition was reduced to writing by banks are required to make full statements at the end of each quarter, some proper person, naming him; that the deposition wa.'i written and showing, under appropriate heads and in details, their resources and subscribed in the presence of the officer certifying thereto, and that liabilities. The quarters end on the last days of March, June, Septemthe deposition was taken at the time and place specified in the notice. ber. and December, in each year. The statement is required to be Depositions cannot be taken by a relative or attorney of either party: published once in nearest newspaper and copy of paper and statement to the ca..se, or one who ls otherwise interested in the event of the filed within ten days in the office of the state examiner. In the ca..se of action or proceeding. ,a corporation, the report must be published in a newspaper. It is unlawful for a bank to receive deposits when insolvent. er&e~~!:tt J~tr\t~t~e o°f t'b~r~:t~ftl!inJa~~ors Banks may act a..s executors or administrators, agents, trustees, etc. follows: such intestate leave a husband, or wife, and children, or Provision is made under the state law for the organization, managethe descendants of any children. him or her surviving, one-half of such ment. and control of banks, banking associations, savings banks. and estate shall descend to such surviving husband or wife, and the residue loan and trust companies. It is made the duty of the state examiner thereof to such surviving children and descendants of children, as to examine and report upon the condition of all banks incorporated limited by law; if such intestate leave a husband, or wife, and no under state law once a year. ~rii~ct?~t~::~r~~~~~sd~fsi::d c~lfo-ut~~ :!id~~i::i~e "Blue Sky" Law is now in force requiring that no speculative to the sum of $20,000, after the payment of debts, descends to wife, an8 securities shall be sold in the State until a complete showing of facts ha..s been filed with the Secretary of tate and County Clerk of each the balance if any, shall de cend as follows, to wit: Three-fourths County in which such speculative security shall be offered for sale. thereof to such surviving husband or wife, and one-fourth thereof to the father and mother of the intestate, or the survivor of them; proThese facts include a statement of the assets and liabilities of the person or company making and issuing such securities: the amount vided, that if such intestate have a husband or wife and no child nor descendants of any child, or parent, or brothers or sisters. then the of such securities prior thereto in interest or lien; if secured by mortgage or other lien, a copy thereof, and competent appraisal of the whole thereof shall descend to and ve t in the survi\ing husband or wife, as his or her absolute estate, subject to the payment of the debts property covered thereby, and all prior lines thereon; a statement showing the gross and net earnings; a copy of the general or public of the intestate. Except in cases above enumerated the estate or prospectus; the names, addresses and selling terTitory in this state any intestate descends and is distributed a..s follows: First, to his of any agents; the name and address of the promoter; all partners, children surviving and the descendants of his children. who are dead (the descendants, collectively, taking the share which their parents directors, trustees and persons owing more than 10 per cent of the would have taken if living). Second, if there be no children, nor their capital stock, the plan on which the enterprise is to be conducted descendants, then to his father, mother, brothers and sister:,;, and to if a co-partnership or association, a copy of the articles thereof, and the descendants of brothers and sisters who are dead (the descendants, if a corporation, a copy of its charter. collectively, taking the share their parents would have taken if living), Chattel Mortgages. Chattel mortgages are required by law to be executed and acknowledged in the same manner as mortgages of to;'}~ttri,~rt~o~~dbi~t~e~~ ~~~~~~~ed~~~j~~~ real estate. They are required to be flied. but not recorded, in the , brothers or sisters, nor husband nor wife. li,ing, then to the grandoffice of the county clerk of the county where the mortgaged property father, grandmother, uncles, aunts, and their descendants (the deis situated. Chattel mortgage may covor future advances where scendants taking, collectively, the share of their immediate ancestors), specific sum as ultimate amount to be ·ecured, date prior to comin equal parts. • pletion of advances and date on which last insta1lment of indebtedness Dower. Under the territorial law formerly in existence and which secured shall mature are stated. A mortgage may be given on crops has never been repealed, dower was abolished, and since the admission growing or to be grown, provided crop matures summer and autumn of Wyoming as a state no law has been enacted on that subject. after execution of mortgage. Execution may issue immediately after judgment rendered, and is Collaterals. There is no statute relating expressly 'to collaterals. returnable in sixty days from a court of record, and thirty days when Conveyances. (See Acknowledgments and Mortgages.) issued by a justice of the peace. Provision is made for a stay of execution in justices' courts, for a period of thirty days on a judgment not Corporations. Corporations may be formed by three or more exceeding $50, exclusive of cost·, or stay of four months on a judgpersons for the purpose of carrying on manufacturing, mining, comment of $50 and not more than 100, exclusive of costs, and a. tay or mercial, and other kinds of business, and also constructing wagon six months on a judgment in excess of $100, exclusive of costs. Proviroads, railroads, telegraph lines. irrigating ditches, dealing in real estate etc., and the incorporators are required to sign and acknowledge before 1 sion is also made for a stay of execution ln the district court for a period of six months from the time of the entry of judgment by the judgment some officer competent to take the acknowledgment of deeds duplicate debtor procuring one or more freehold sureties to enter into his recogcertificates in writing, in which shall be stated the corporate name of nizance. acknowledging themselves bail for defendant for the payment said company, the object for which the company shall be formed, the of the judgment, together with the Interest and costs accrued, and to amount of capital stock of said company, the term or existence (not accrue. Provision is also made for a stay of execution in cases where to exceed fifty years), the number of share of which the said stock shall an appeal or proceeding in error is taken to a higher court. consist, the number of directors and their names, who shall manage the concerns of the company for the first year, and the name of the Exemptions. Household furniture, provisions, etc., for head or town and county in which the operations of said company are to be family residing with same, S500: tools, team, implements or stock in carried on. One of the certificates must be flied in the office of the trade of mechanic, miner. or other person, kept for hi trade or busicounty clerk of the county wherein the business of the company is to ness, $300, except where debtor is adjudged a bankrupt either in volunbe carried on and the other in the office of the secretary of state. tary or involuntary proreeding ·; library and instruments of proWithin 30 days after filing articles. notice of its incorporation must be fessional man, $300; home. tead actually occupied as such by head or published for three weeks in one newspaper of general circulation in family in country, of value of $2,500 but not exceeding 160 acres: this state giving all the above information. If three or more persons 0 1 0 ~e~~w~er~in °io ~e i~ar:~u~f desire to form a company, the object of which shall be to aid in thP ; o~e;_t~r~fwteha;i~fr:Pr&~r~f industrial or productive interests of the country, but without any judgment debtor for hi· personal ervices, rendered at any time within purpose of direct gain to itself, then, in such case, such company shall sixty (GO) days next preceding the levy of execution or attachment not have a capital stock, and the certificate of Incorporation shall so and due and owing at that time, where necessary to the use of a family state giving the reason therefor. The number of directors for a supported wholly or in part by his labor, and residing in this tate. corporation is not Jess than three nor more than nine, and the directors ~ o property is exempt for a person removing or absconding from the must be stockholders in the company. Any corporation, upon the State, and all per'ons claiming exemption must be actual, hona-flde assent of the holders of two-thirds of the outstanding stock thereof, residents of the State. l To article of property is exempt from attach1 0 0 ment or sale on execution for its purchase price. gt:u~~us~ii: :~le~d~ ~~r~:J:e~~~~ t:ep~~ ~:~~ 0 per annum in preference to all other stockholders. If the earnings su~~~t p!t~u1~ii~!t~;[ ii~ vftt!e~o{ ~:oi:i~rro~t~ejtd1:fm!~i available for dividends shall be equal to, or more than 7 per cent. all debtor to be excused for not answering in an examination in regard to stock shall participate equally. The capital stock of domestic corhis property. It is also a ground for attachment. porations shall not be taxed. Both foreign and domestic corporations Garnishment. The laws relating to attachment and garnishment must have resident agent under penalty for forfeiture of all its rights are similar in character and there is no provision for garnLhment and franchises. except when ground for attachment exists, and a bond m\Lst be furCosts. In justice court the costs of suit are ordinarily taxed against nished, to obtain a garnishment in the same manner as to obtain an the losing party. In the district court, when the judgment is less than attachment. Garnishee process may be had in aid of execution after $100, unless the recovery be reduced below that sum by counter claims, judgment, without such bond, and without affidavit, except such as or set off, each party shall pay his own cost; and in all actions for libel, may be necessary to lay the foundation for an order by the district slander, malicious persecution, assault. and battery, false imprisonment judge for the examination of the judgment debtor or any person or criminal conversation, or seduction, action for nuisance, or against a corporation indebted to him. justice of the peace for misconduct in office, when tbe damage assessed Husband and Wife. The husband is not liable for the debts or ls under $5, the plaintiff shall not recover co.sts. When it is not otherthe wife contracted before marriage, without an assumption in writing wise provided by statute, costs shall be allowed, of course, to the plainof such debts, but the estate of the wife is liable for debts of that chartifl', upon a judgment in his favor, in action for the recovery of specific, acter. Separate deed of the husband conveys no interest in the wife's real, or personal property. Costs shall be allowed, of course, to any lands. (See Married Women.) defendant. upon a judgment in hie, favor in the aciiions mentioned in the preceding part of this paragraph. In other actions the court may Interest. In the absence of express contract, all moneys, claims, award or tax costs and apportion them between parties, on the same or judgments draw interest at the rate of 8 per cent per annum. Any or adverse sides. as it may adjudge to be right and equitable. 0 ~~~U:~Y l~ea~e:~ea~~~nn!fe ~ ~J~~~~feJ:erero;r:~ts Courts. Terms and Jurisdiction. The supreme court holds two interest. Unsettled accounts draw interest after thirty days from the regular terms annually at the capital of the State. Its business is date of last item. principally of an appellate character. District court ts held twice a year in each organized county except in the counties of Goshen, .Judgments are a lien on debtor's real estate within the county from Platte, Niobrara, Hot Springs, and Washakie, where but one term the first day of the term at which judgment is entered. but judgments is held each year. Special terms may be called by the DL trict Judge by confession and judgment rendered at the same term at which however, on being petitioned therefor by the Board of County Comthe action is commenced bind the debtor's real estate only from the missioners of the respective counties. Said court has full common time of entry. which lien continues for five years. Judgments may be Jaw and chancery powers. It has also exclusive jurisdiction in all revived by statutory proceedings. probate matters and the administration, settlement, and distribution Liens. The law provides for liens of aglstors and stable keepers, of the estates of deceased persons. Justices of the peace have juriscommon carriers and warehouse men upon property entl"USted to them diction in civil actions where the amount in controversy, exclusive of to ca.re for, and also for mechanics and material men for lahor and costs, does not exceed $200. materials furnished for the construction or repair of buildings, and Days of Grace abolished by the negotiable instrument act of the also a lien for mechanics. artisans or other persons who may make, legislature of 1905, being an act to establish a law uniform with the alter, repair or be tow labor upon any article of personal property at laws of other states on that subject. the request of the owner or party bavfn11; p051 es:; ion thereof. Lien• are now specifically granted for materials or labor for minei or oil Depositions. The code of clvll procedure makes provision for well~ but i1hall not affect any lien, encumbrance or mortgage upon taking depositions upon commi. ions to which are to be attached the land or lea..se-hold interest at the time of the Inception of the lnterrogat.ories and cross-interrogatories. but the law is not very laborer or miner's lien. speclflc In regard to the method of taking depositions in this way. Deflnitf> provision ts made for taking depo.-.ltions in actions pending in Llm.ltatlons of Sult . On contracts not in writing, eight years, the district court upon notice to be served upon the opposite party, upon specialty or a1Ueement in writing, ten(l0l years: on all foreign or bis attorney of record. The notice must be Rerved in time to allow Judgment..-., or contracts made or incurred before debtor become" a the adverse party sufficient time. exclulllve of Sunday, the day of servresident, within five (5) years after be establishes residence In the State; ice, and one day of preparation to travel, with tbe usual route and recovery of lands, ten years. Revivor: Part payment or acknowl· modes of conveyance to the place named 1n the notice, which must edgment in writing. LlmJted partnerships.  :fr  !~1!i:::~b:oti;fti,  !~°w;!~ ffi~f  SU  12  Ju  ~  St el  sh th ex  d;rc3~~~~  !  $~l8.  ~!fi b~ !!tf:i~~rrri  i  1~fee~  Pi!ff  da.  : Of  lb  t or 9R  lea  Ill.a  hlr  Ill.a  ~  BANKING AND COMMERCIAL LAWS-ALBERTA  1971  Married Women. A married woman retains her property, both real and personal, may make a will, carry on business, sue and be sued, and retain her own earnings in the same manner as if sole. She may also vote and hold office. There is no right of dower under the state law. Mortgages must be attested by one witness, acknowledged and recorded in the manner provided by law for the execution and recording of deeds, and are foreclosed by action at law, or by advertisement for six weeks. Real property sold under forcelosure of mortgage, either by decree of court or by advertisement, may be rendeemed in six months by mortgagor from date of sale, upon payment of the amount for which the property was sold and ten per cent interest thereon, and ' within three months thereafter by any credito;. A mortgage or other specific lien on real property shall take precedence over the lien of taxes levied against any other property than the property subject to such liens. Negotiable Instrument. The legislature of 1905 passed what is known as the uniform negotiable instrument law, being an act to establish a law uniform, with the laws of other states on that subject. The legislature of 1917 passed the Uniform Warehouse Receipt Act. NoteR and Bills of Exchange are subject to a state law which substantially enacts the law merchant. The 1st day of January, the 12th and 22d days of February, the 30th day of May, the 4th day of July, the day apg,ointed by the President of the United States or the  ~::~~g~r ~!~eth!aJ!y31n\fi~c;!;rk~h;~f~f~ctgb~the ~~~;:;~r ~~~g! State as Arbor Day, and all days on which regular state and county elections are held are legal holidays. Partnerships. The legislature of 1917 passed the Uniform Partnership Act. Powers of Attorney. When executed for the purpose of enabling the attorney in fact to convey real estate, powers of attorney must be executed with the same formalities as a deed, and they should be recorded in the office of the county clerk of the county in which the land conveyed by virtue of such instrument is situated. Probate Law. (See Administration of Estates.) Protest. Protest must be made by a notary public or any other officer authorized to administer oaths. It must be made by an instrument in wriUng giving a literal copy of the bill of exchange with all that is written thereon, or annexing the original, stating the presen1:ment and the manner in which it was made, the presence, or ab ence of the drawee, or aceptor, as the case may be, the refusal to accept or pay, or the linabilty of the drawee to give a binding acceptance, and in Ca.! e of refusal the reason a signed, if any, and finally prote ting against all the parties to be charged. Replevin. The action for replevin lies both in the district court and in the justice court for the purpose of obtaining the po e.~sion of specific personal property. In order to obtain a writ of reple,·in, it is necessary to file an affidavit showing a description of the property claimed, that the flaintifi' is the owner of the property, or has an interest therein, and I the ownership, or interest is special or partial, the fact should be stated; that the property is wrongfully detained by the defendant and that it was not taken on process issued against the Plaintiff, or if taken under such process that the property was exempt from execution, and that it is not held for any tax legally asse: · ed, or levied against the plaintiff. In the district court the plaintiff is not required to give a bond until after the propert,y has been taken by the sheriff, and if after the property is so taken the plaintiff fails to give the required bond within five days, then the property is returned to the defendant. The defendant may, within forty-eight hours after the Property is taken, regain possession of it by giving an undertaking as Provided by law. conditioned for the re-delivery of the property if adjudged. In the justice rourt the plaintiff Is required to file a bond, or undertaking, to the defendant in not less than double the amount obf the value of the property. as stated in the affidavit of the plaintiff, efore beginning his acction. Sales. The legislature of 1917 adopted the Uniform Sales Act. Taxes become due and payable on the third Mond~y In September In each year, and the taxpayer should pay the entire amount of bis taxes after that time and before the thirty-first day of December fdollowing. In all cases where the tax is not paid on the thirty-fir ·t ay of December succeeding the levy thereof, the amount of the tax Cdharged, against any taxpayer so failing to pay such tax shall become elinquent from that day. A penalty of 8 per cent on the amount unpaid is added to all taxes when they become delinquent. Delinquent axes draw interest at the rate or 8 per cent per annum until paid or Collected by distress and sale. Taxes upon real property are ma.de a Perpetual lien thereupon, and taxes due from any person upon personal troperty are a lien upon any real property, owned by uch person. Otb personal and real property may be sold for taxe in the manner Provided by law. Real property may be redeemed from tax sale at iny time within three years after the sale, by payment, of the amount or Which it was sold, 15 per cent of the same, interest on the whole amount at the rate of 10 per cent per annum, and subsequent taxes fftb 10 per cent per annum interest thereon, unless such subsequent axes have been paid by the person redeeming. Wtns. Any wills to be valid must be In writing, or typewritten, 'IVitne. ed by two competent witnesses, and signed by ~be t_estator, ~r by some person in his presence, and by his expr~ss direction, l!-Dd if ~hhe Witne ses are competent at the time of attestmg the execution of e Will, their subsequent incompetency, from whatever caus~ it may o &rise. shall not prevent the probate and allowance of the will. 8 tUhscrlblng witness to any will can derive any benefit therefrom unless here be two disinterested and competent witnesses to the same, but ltef Without a wlll such witness would be entitled to any por~ion of the stator's estate such witness may still receive such portion to the 6xtent and value of the amount devised. Wills are admitted to probate In the court of the proper county upon petition being flied~ and notice by publication for not less than ten, not more than tnirty ays from the production of the wlll. Every custodian of a will, wtls thin thirty days after receipt of information thac, the maker tl?,ereof dead. must deliver the same to the dli;trlct court hving Jurisdiction the estate or to the executor named In the will. No married person aualJ deprive bis or her husband or wife of over one-half of bl or her croperty remaining after the payment of his or her debts, and it shall e optional with the surviving spouse. after the death of the testator orst t.0Rtatrix, to accept the condition or such will, or one-half of the ate, real and personal of the deceased spou e. If the decedent eaves surviving him or 'her a child or children by any previ9us ~arrlage or descendantR of such child or children and leave S1frvivmg rn or her no child or children or doscendants thereof as frmt of the ltlarriage existing at the time of his or her death, then such married Rtrson may will to others than the surviving spouse three-fourths of or her property. 0  after  ~!  f   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  SYNOPSIS OF  THE LAWS OF ALBERT A RELATING TO  BANKING AND COMMERCIAL USAGES Revised by Messrs. TAYLOR, MOFFAT, ALLISON & WHETHAM, Calgary, Alta., Barristers, Solicitors and Notaries. (See Card in Attorneys' List.) By chapters 41 and 42 of the acts of parliament of Canada for the year 1905. the Provinces of Alberta and Saskatchewan were erected out of a portion of the Northwest Territories. By the acts creating these Provinces, existing territorial laws were continued until repealed or amended by the legislatures of the new Provinces. Administration of Decedent's Estate. Probate of wi1ls or letters of administration are granted by the district court in the judicial district where the deC'ea ed resided when he died; in case residence was outside the Province at the time of death, the district where there was any property of the deceased. Bond, with one or ~~~r~e0 ~:t!W!ii;;r~r ~:~ s~e~~!i-J!::~f;e~r~ro;g~1ire~t administration granted in the United Kingdom or any dominion or British Province or U. S. A. are produced to, and a copy thereof (certified copy if from U. S. A.} deposited with the clerk of the district court, they may under the direction of the judge, be sealed with the seal of the district court. and thereupon will have the same force and effect as if granted by that court. A judge has power, in bis discretion, to order sale of an infant's estate. Real property descends as chatteLc;, and becomes vested in the executor or administrator as personal property. Affidavits. In matters in Court affidavits must be instituted in the cause or matter and must be drawn up in the first person and must state the name of the deponent in full, his description and true place of abode. Affidavits for use in Alberta when sworn outside the Province and in Great Britain and Ireland or any British possession, before a Judge of a Court of Record or before the mayor or chief magistrate of any city, borough or town under the common seal of such city, borough or town ; or before a notary public or person lawfully authorized to administer oaths therein; and when in any foreign country before any of His Majesty's consuls or viceconsuls, a judge of any court of record or of supreme jurisdiction or before a notary public certified under his hand and official seal, or before commissioner authorized by the laws of Alberta to take affidavits in such foreign country. or before the mayor or chief magistrate of any city, borough or town corporate under the common seal of such city, borough or town. Every person adminlst,ering oaths, shall express the date when and the place where the affidavit is taken. All interllneations, alterations or erasures whether In the jurat or body of the affidavit shall be authenticated by the Initials of the officer taking the affidavit. Accounts. extracts. documents, etc .. referred to in the affidavit must be referred to as exhibits and must be marked and r;l~ed and sealed by the officer taking the affidavit. An official administering an oath mu..c::t state below his signature the date when his term of office expires. As to affidavits of executions see Deeds, etc., below. Rules of Court, 1914, Sections 413-428, Alberta Evidence Act, 1910•. Allens may acquire, bold, and dispose of real property as effectually a.s a natural born BrltiRb subject. On account of the <itate of war between the United Kingdom of Great Britain and Ireland and the German Empire and between the United .Kingdom of Great Britain and Ireland and the Austro-Hungarlan Monarchy an order in Council was passed on the 15th day of August, 1914, providing for the status of all persons in Canada of German or Austro-Hungarian nationality.  t°m~~~  f~~;  i~dfu~~;c~v~~rlt~: [~:; ~~gniea.sal~~~J8rcr1~o'1n~\~~! pJi-t~ to enjoy the protections of the law and shall not be arrested, detained or interfered with unless there are reasonable grounds to believe that they are engaged in espionage or engaging or attempting to engage In acts of a hostile nature or a.re giving or attempting to give Information to the enemy or unless they otherwise contravene any law, order in council or proclamation. Provision was al.so made for the arrest and detention of German or Austro-Hungarian officers. soldiers or reservists who attempt to leave Canada and of all subjects of the two countries mentioned above who attempt to leave C'anada and In regard to whom there ts reasonable ground to believe that their attempted departure Is with a view to assist the enemy, and for the arrest and detention of all subjects of the nations mentioned above engaged in or attempting to engage in espionage or acts of a hostile nature. See Canada Gazette, August 15, 1914.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1972  BANKING AND COMMERCIAL LAWS-ALBERTA  Arrest. There is no provision made for arrest for debt. Assignments and Insolvency. A'iSignment of property by any person at any time when be is in insolvent circumstances, or is unable to pay bis debts in full, or knows that he is on the eve of insolvency, with intent to defeat or delay or prejudi<'e his creditors, or one or more of them, or to or for a creditor with intent to give such creditor a preference over the others, or over any one or more of them, or that has that effect. is void. If assignment is attached within 60 days after the date thereof, it is sufficient to show that the assignment~had the etrec-t of preferring without proving the intent; but an assignment made by the debtor to the official assiimee for the purpose of paying all his creditors rateably and proportionately and without priority, or any bona-fide sale of goods, or payment made in the ordinary course of trarle to innocent purcba.sers, is valid. All assl~nments made for the general benefit of any creditors to nerson other than the official assignee are null and void, and see title r.Bankruptcy." Attachment of Debts. Debts due or accruing due to a defendant or judgment dehtor may be attached by garnishee summons either before or after the si,:qiing of judgment. upon affidavit of the plaintiff, his solicitor or agent, setting out the facts required. The clerk issues a garnishee summons. After service upon the garnishee all debts due or accruing due are bound and must be paid into Court or to the Sheriff. See Rules of Court, 1914. Attachment of Goods. Property not exempt from seizure under execution may be attached after the commencement of an action wherein the claim is for the rec-overy of a debt of Sl00.00 or upwards. An ex pa.rte application grounded upon affidavit made by the plaintiff or by his agent having a personal knowledge of the matter. stating from what cause the claim arose and the amount thereof and that the deponent has good reason to believe (giving reasons therefor) that the debtor is about to or has absconded from Alberta. leaving personal property liable to seizure under execution or bas attempted to remove such personal property out of Alberta or to sell or dispose of tbe same with intent to defraurl his creditors generally or the plaintiff in particular, or keeps concealed to avoid service or process; and stating also that the deponent verily believes that without the benefit of the attachment tbe plaintiff will lose his debt or sustain damage; and upon the affidavit of one other credible person that be is well acquainted with the defendant and has good reason to believe (giving such rea.sons) that the defendant is about to or ha.c; absconded or has attempted to remove bis personal property out of Alberta or to sell or dispose of the same or keeps concPaled to avoid service or process, must be made to the Judge who, is satisfied with the material submitted directs the Clerk of the Court to Issue writ of attachment directed to the Sheriff authorizing him to atta<'h and keep all the personal property of the defendant. Where the debtor has actually absconded or is about to abscond trom the Province leaving no wife or family behind no property of such debtor shall be exempt from seizure. The amount of the debt ls stated in the writ of attachment and the Sheriff levie-; for the amount thereof and the costs of the action. A creditor who attaches a debt shall be deemed to do so for the benefit of all creditors of the debtor as well as for himself. Vide Rules of Court. 1914 . Rec. 6fi6, sqq. Statutes, 1910, Cap. IV. Secs. 4 and 5.  Bankruptcy. An Act relating to bankruptcy whlch affects the whole of Canada wa.-; adopted by the Parliam•mt of Canada on the 7th of July. HH9, a.nd is effective from th<> 1st of July, 1920. Under this Act the creditor or creditors having claim or claims at?gregating s,;oo may petition the f'ourt alleging that the debtor ha.c: committed an act of bankruptcy within six months before the pre. entatlon of the petition. An act of bankruptcy may consist of making an assignment for the benefit of creditors. making a fradulent conveyance of property, absconding or having an execution a.gainst him unsatisfied for a specified time or exhibiting a s1.a.tement showing fnc:olvency or making a bulk sale of his goodc; without complying with the Bulk Sales Act. No farmer or wage earner may be forced into bankruptcy nor may any person be forced into bankruotcy by reason of any debt which wa.'> contracted before the first of July, 1920. On the petition beim; presemed . if the petitioner proves the debt owing to him and proves the act of bankruptcy, the Court may make an order declaring the debtor a bankrupt. Any debtor no matter what bis occupation nor when bis debts were contracted may voluntarily become a bankrupt by making an assignment to a tru'ltee in bankruptcy. The Trustee in bankruptcy either in ca..c;e an order of bankruptcy Is made or in ca.se tbe debtor voluntarily a! signs to him takes over the property of the bankrupt and disposes of lt, pays the creditors pro rata except those entit,led to secu1 ity which are not void by the Act and exc-ept three months' wages to employees. On a bankrupt being declared, all executions, garnishments. attachments, general as'ignments of book debts and variotL<; other transactions all mentioned in the Act are void as against the Trustee In Bankruptcy. After the order for bankruptcy ha.<: been made, the Court may sanction a composition or extension agreement approved of by the majority of the creditors. The bankrupt may under certain circumstances. having complied with the Act, apply for and obtain a discharge which releases him from all bis obligations except certain limited kinds of claims. Banks. The subject of Banks is one which by the provisions of the British North America Act is expres. ~ly reserved for the Dominion Parliament. The Legislature of the Province has no power to deal therewith. The legislation on the subject Is contained in the Bank Act of 1913, being Statutes of Canada, 3 and 4, George V, Chap. 9. For a resume of its main provisions see the synopsis of the laws of Ontario. Bills of Exchange and Promissory Notes. Three days' grace is allowed on all notes and bills other than tho e payable on demand, etc. In ca.se of dishonor the indorser ls relieved from liability unless he has been given notice of dishonor. Bills and notes falling due on legal boliday1-1 are payable the day after. All checks, bills, and notes must bea.r 2-eent stamps. The Bills of Exchange Act, 1890. See Revised Statutes of Canada, 1906. Chap. 119. Bulk Sales Act. Whenever any trader, commission merchant, or manufacturer shall bargain for or purcba..se any stock of goods, wares or merchandise in bulk for cash or on credit, and shall pay any proportion of the purchase price, or execute or deliver to the vendor or his order or to any person for bis use any promissory note or other document for or on account of the purcha.,;e price of any stock of 11:oods, wares or merchandise in bulk, without first having demanded and obtained from the vendor or from his agent, or if the vendor is a corporation, from the President. Vice-President, i:lecretary. Trea..<:urer or Manager thereof, a written statement verified by the statutory declaration purporting to set forth the names, addresses and amounts of the indehtedness or liability due, owing, payable or accruing due by the vendor to each of his creditors, then such sale shall with respect to any action or proceeding within sb:ty days thereafter brought, had or taken against the purchaser to impeach or set aside such transaction be deemed fraudulent, and shall be absolutely void as against the creditors of the vendor. unless the whole or the proceeds or such sale, or sufficient thereof to satisfy the claims of all the creditors of $he vendor Is In fact actually accepted by the vendor on or towards the payment of all his creditors without giving any preference or priority to one over another such as ls provided by law, or previous  contract. This provision applies when goods are again re-sold for the purpose of evading the act, and the purchaser is held liable for the debts hereinbefore recited, unless be obtains the statutory declaration of all the accounts due. and either obtains a waiver from the creditors of their ac-rounts or applies the purcba..se price on the payment of the same. Provision Is made for payment of the purchase money to an official assignee for distribution pro rata among all creditors of the vendor. See Bulk Sales Act, Statutes of Alberta, 1913, Chap. 10. Caveats on Land. Any person claiming to be interested under any will, settlement or trust deed, or any instrument or transfer or transmission or under an unre~istered instrument or under an execution where the execution creditor seeks to affect land in which the execution debtor Is interested beneficially, but the title to which is registered In the name of some other person or otherwise howsoever on any land. mortgage or lnc-umbrance. may cause to !Je flied on his behalf with the registrar a caveat in form W In the chedule to this act against the registration of any pen;on as tran feree or owner of, or of any instrument affecting, such estate or Interest, unless such instrurrwot be expressed to be suhject to the claim of the caveator. Registration by way of caveat shall have the same effect as to priority a.,; the registration of any Instrument under the Act. The Regi ·trar may allow the withdrawal of caveat and registration in lieu thereof of the instrument under which caveat filed if such instrument may be registered under the Act. Land Titles Act, Statutes of Alberta. 1906, Chap. 24. Chattel .Mortga~c11. Chattel mortgages to secure debts require an affidavit of execution, and affidavit of bona fldes to be made by the mortgagee or his duly authorized agent or the manager, where the mortgagee is a corporation (a copy of such authority to be attached to the affidavit) stating that such mortgage is given in good faith, 0  ~~!ta~iu~t ~ff~~d~sa~t~&atni1 it:i;;it i~1;~:e~ 1ef~t ~i!t[r~~!o~ of the mortgagor. In the case of an incorporated company the affidavit may be made by the agent or manager. without. the authority being attached. They must be registered within thirty days from execution with the registration clerk of the di. trict in which the goods are situate and mu<;t be renewed within two years from date of registration and renewed thereafter every year. In case of goods being removed into a new registration dLc:trict a certified copy of the mortgage. affidavit.s, etc., must be registered with clerk of new dli;. trict within three weeks of such removal. Similar prov!. ions also e::tist respec-ting chattel mortgages to secure endor. ements and also future advances. (Bills of Sale, Ord. 1895.) No chattel mortgage intended to apply to o::- effect any growing crop or crop to be grown shall be valid so far as the said crop is concerned unless the same shall be made, executed or <'reated as security for the purchase price and interest thereon of the seed grain. Bills or Sale Ordinance. (See also Seizures and Sale.) Claims Against Estat<"s of Deceased Per ons. The executor, administrator or any creditor may apply to a judge in chamhers for the administrat.fon or the estate of a deceased person, and for payment of claims against the estate. Provision is also made for the appointment of an official administrator. In the administration of the estate of the decea.,;ed persons simple contract debts and specialty debts rank equally. (Imp. Act, 32-33, Vic. Cap. 40.) Conditional Sales. No sale or bailment of goods to the value of  1  !e~-i~~ ~hiW;:~~1·n cpnn1~! ~e~1e;~~t ;~iYo~~gat g ofoSr~~!!u?:t g~~ chaser or mortgagee from the buyer or bailee. or against judgments. executfons, or attar.hments against the purcha.o;;er or bailee, unless the sale or bailment Is in writing and signed by the huyer, bailee, or 0  0  0  ;;::; b!e~~·o~~~ cc,ip~:i~i~i:/:cr!p~t~~ ~~~~e tf1~~~~tu~~c~~Ja~:3 by an afflctaYit of the sPller, bailor, or his agent, stating that the writing truly sets out the agreement and that agreement is bona. fide and not for the purpose of protecting the goods. must lie registered in the registration district where the buyer or bailee resides within 30 days after actual delivery of the goods. If the goods are delivered in a district other than that in which the buyer or bailee resides registration must be made al-;o within the same time in the district in which the goods are delivered. In the case of a . ubsequent removal registration must be made in the district Into which the goods have been removed within 60 days of such removal. A seller or bailor repossessing must bold the goods for 20 days and give 5 days' notice of sale. The registration remains effective only for two years unless within the 30 days next pre<'eding the expiration of the two yea.rs, a statement of the amount still due for principal and lntere t under such sale and all payments made on account thereof, Is registered In the office of the Regi,;tratlon Clerk where the goods are situated, with an affidavit of the vendor or one of them or the Assignee of the Vendor or their agent.<: duly authorized for that purpose that such statement Is true and that the sale is not kept on foot for any fraudulent ~~::: ita~~~!~~t ~~fYb~r sY:/i1:Jl~e r~~'isfe~~~to;iti~Jh;b~~gh~~  ~eo~xg~~i~~a~rt~n;ek~ l~ ~e~~er~!~O:aYrs:~te~~~~ :::i~l:i~~~~! are not so flied the property or right of po. se ·sion In the goodc:i shall 0  be deemed to have passed to the Purchaser. The seller may before delivery to the buyer permanently and legibly mark on goods sold that they are his property and if this is done then the removal of the ~~! f~~~ ~rs~~~;_rlct to another need not be followed by registration (See Seizure and Sale.) Corporations. Incorporation of a company for any lawful purpose to which the authority of the Legislative As,;embly of the Provience extends may be obtained under the Companies Ordinance of the Pro,rfnce by any number of person.c:i not !es.,; than three in numberf. Application is made by flllng with the Re~strar :Memorandum o Association signed hy the applicant , being not less than three In number, and otherwise complying wlth the Ordinance. ("ompanies may be limited by shares, by ~uarant~e. or may be Incorporated as unlimited companies, Where llmlted by sharell shareholders are only Ila.hie for unpaid balance on the shares sub-al scribed for. Mining Companies may be Incorporated under specf provisions relat Ing to such and If t.0 provided In charter hareholder& are not liable for more than the amo11Dt paid by them on share& Companies may also be incorporated under the Dominion CoJll• paBi:\tec\jorporations Taxat.lon Act. 1907, certain corporations are su~~tF~~,~i~lo~;:O;° h~;l~~ldga'1ntbr~n~vl~~ject fs allowed to carry on any part of it bu lness in t.he Province until it Is duly reldstered and cannot sue for any debt contracted until registered and la further liable to a fine. subject however to the proviso that the taklrt! of orders by travellers for goods. wares or merchandise to be suvsequently imported In to the Province to fill such orders. or the buyjnl or selling of such goods, wares or merchandi! e hy correspondence, If the company has no resident agent or representative and no ware-eel house, office or place of business in the Province, I not to be deem to be carrying on buslne.·s within the meaning or the Foreign Com· panies Ordinance. Foreign Companies may re~ister under tbJ statute relating to such Companies on paying the necessary fees an  BANKING AND COMMERCIAL LAWS-ALBERTA  1973  other,~ise complying with the provisions of the Ordinance. Any for the months of Tovember. December, January, February :March such <'ompany must appoint an attorney resident within the Province. and April, or for sur.h of these months or portions thereof as may Insurance Companies and Banking Companies must be incorfollow the date of seizure, provided such seizure be made between porated under the acts of the Parliament of the Dominion of Canada. the first day of August and the thirtieth day of Apt·il next ensuing. 5. The harness neces~ary for three animals, one wagon or two carts Creditors, Relief of. There is no priority among execution mower or cradle and scythe, one breaking plow, one cross plow· one crE>dicors of any debtor. The Sheriff realizing moneys under exeo~e set harrows. 0!1e-horse rake, one sewing machine, one reaper or cution must hold same for thirty days and in case of an abscondfog debtor for two months, and all creditors filing claims in manner pre- 1 bmder, ono set sleighs and one seocl drill. 6. The books of a professional man. 7. The tools and necessary in. truments to the extent scribed within the times mentioned share any moneys in the hands of $200 used by the defendant in the practice of his trade or proof the Rherifl'. Special provisions are made for filing of claims under fession. 8. Seed grain sufficient to seed all his land under cultivation particular circumstances. not exceeding eighty acres, at the rate of two bushels per acre de~ C'reditors' Relief Act, Statutes of Alberta, 1910. fendant to have choice of seed, and fourteen busheL-3 of potatoes. The homestead of the defendant, provided that same be not more 9. Courts. There are two courts: supreme and district. The judges than one hundred and sixty _acres; ~n case it be more, the surplus of the supreme rourt have jurisdiction in any judicial distri<'t in the may be suld sul)1ect to any hen or mcumbrance thereon. 10. The Province. The judges of the dist,rict court only have jurisdiction in house and buildings occupied by the defendant, and also the Jot or their respective judicial districts, but a11 action begun in one district lots on which same are situate, according to the registered plan of may be transferred to another. The distri<'t court has jurisdiction the same. to the extent of $1,500. in all ca.ses, actions, matters, suits or proceedings, whether of debt, Any article except for the food, clothing, and bedding of the defendcovenant, contract 01· damage or involving the validity of any will and his family, the price of which forms the subject matter of ant or settlement or in relation to land or any l1>gal or equitable int~rest the judgment upon which execution issued, is not exempt. ~herein. or in actions seeking equitable reiief or for a declaratory ~n case of death, th~ ~xemptions may be claimed by the widow, Judgment, or to establish the ri_ght of a creditor, to rank upon au ~~~dJ:~ae!~~utor, admmIStrator, or other personal representative of insolvent ~state, and generally m all matters which may he made the subject of a claim for rrlicf whether le11:al or equitable, or to enforce any right whether legal or equitable where the deht, damage Infants. An offlci!tl known as the Official Guardian is the guardian claim or demand does not exceed $600. The district court ha.s also of tile estates of all infants who have no other isuardian. And no jurisdiction in all probate matters. The supreme court has jurisapplication in which an infant's person or estate is conserved mav be diction in all other p1atters. There is an Appellate Division of the procee~cd with except _after notice to the Official Guardian. Husband Supreme Court whicli decides all appeals from Supreme and District anri wife have equal nght,s as to custody of children. ln case of discourts. pute the welfare of the infant is practically only thus considered. Deed -Acknowledgments, etc. This is an incorrect appellaInterest. Five per cent is the legal rate of interest if no other tion under the existing (" Torrens") system of land transfer. Land amount is a~eed upo1~. Parties ma_y st,ipulate for the payment of is now conveyed by a transfer. Transfers, mortgages, etc., should any rate of mterest, with the except10n or Money Lenders who are be exe,·uted in the presence of on<' witue-.s who can write, and for not allowed to charge a rate exceeding 12 per cent on loans under the purpose of registration an affidavit of execution must be attached $500. Except as to mortgages on real estate. whenever any interest or endorsed. General forms are provided by statute relatin~ to by the terms of any contract is made payable at a rate per day week registration. The affidavit of C;<ecution, if made in the Provmce, or month or for any period less than a year, no interest exceeding the shall be made before the inspectol' of land titles offices, regi. trar or rnte ~f 5 per cent per annum shall be recoverable unless the contract deputy registrar of' the district in which the land is situate, or a judge, ~~~:;,;~~;~ ;ti'!:s;!fe ~~a~~~f~leoit~he yearly rate or percentage to or a stipendiary magistrate, notary public, commissioner for taking affidavits, or a justice of the peace in and for the Province: if made J~dgments. To be bindin~ on land a WTit of execution issued on in any province of Canada, before a judge or any court of record, and the Judgment must be registered in the Land Titles Office. Writs commissioner for taking affidaYits in such province for u e in any execution.issued prior to the first day of September 1914. must of court of record in Alberta, or before any notary puhlic under his be renewed m Land TitlE>.s Office and shall then remain in force so official seal. In Great Brit,ain or Ireland before a judqe of the supreme as the judgment on which it is issued remains in force. All long court of judicature in Great Britain or Ireland, or of the court of' =~t_iss(.~ge 8i11~!~3t\~~t~o said date remain in force so long as judgsessions or judiciary court, in Scot.land. or a judge of any county, courts within his county, or the mayor of any city or incorporated town Licns, Mechanics•. Every mechanic, machinist. builder miner under its common ea!. or before any commissioner in Great Britain laborer, contractor. and other persons doing work upon and furnish~ or Ireland for taking affidavits for use in Alberta, or a notary public ing materials in respect to any building, erection or mine, or furnishunder his official seal; or if made in any British posesc; ion or colony ing machinery or material in respect thereof, has a lien for the amount out of Canada, before a judge of any court of record, the mayor of of such work or value of such material, machinery, etc., on said buildany city or incorporated town under its common seal, or notary ing erection or mine, etc., and the lands on which same are situate. public under its official seal; if made in a foreign country, before the He has thirty-five days within which to file statement of his account mayor of any city or town under its <'ommon seal, or the British in the Land Titles Office and every lien in respect of which an affidavit consul, vice-consul, or consular agent therPin, or hefore a judge of has been flied against the title of the land shall be deemed to have any court of record, or a notary public under his official seal. (Land lapsed after lhe expiration of thirty days after service upon the lien Titles Act, Alberta.) holder of a notice provided for by the l\Iecbanics Lien Act unless Depositions. Depositions in any case or matter pending in court before the expiration of the said thirty days the lien holder shall have may be taken out of the Province under commission. Application taken proceedings in Court to enforce bis lien and shall have filed in the :\faster or Judge a before l\lotion of Notic'e of way by for same is made Titles Office certifl~ of !is pendens. Land in Chambers. Limitation of Actions. All actions for recovery of merchants Descent. If the Intestate leavPs a widow and any child or children bills, notes, and all actions of debt grounded upon any conaccounts. or doscendants of any child, the widow shall, if only one child has tract without specialty shall be commenced and sued within six years been born to the marriage, take a half interest in the property of the of such action arise. contracts under seal twenty years cause the after decea ed and the child shall take the other half. If more than one judgments twelve years, except foreign judgments, for which the period child ha been born to the marriage, the widow take one-third and six .vears if the debtor appeared in or attorned to the is limitation of t,he children or imrviving child shall take two-thirds. original court,, or was resident within its jurisdiction in which such If the intestate leaves no issue, his widow shall take all provided foreign judgment was obtained. lf he did not appear or at,torn or she bas not lef1, him and lived in adultery after leaving him. was not resident within the jurisdiction of such conrl .. then surh fooign The husband of a married woman is entitled to the whole of her judgment is really of no value, and claim in All>erta shonld he hascd e Late upon her dying intestate. upon the original <:ause of action, and the period of limitation will be c.hildren or wife no The father of any pen;on dying intestate leaving governed accordingly. takes all the intcstate's property. l\larriecl \Vomen. Real and personal estate of married women fat1~~ ~~~~e!n~f any person dying intestate leaving no wife, child or are free from husband's debts. Rhe may convey to her husband and her husband may convey to her without the intervention of trustees. . In the distribution of any personal propert,y of any woman dying She may carry on business separate from her husband as if she were a rnte ·tate, illegitimate children of the same rank as thoue:h they were femme sole. Her husband is not entitled to any estate by curtesy in le"itimate and the mother of' any illegitimate child dying intestate her real proper! y. leaving no wife, husband or chld shall take all tho personal property ( ec ali-;o Dower and Infants.) oft.he child. 'I'he Crown takes tho property of all persons dying intestate who l\fortgnges. Mortga:;es are executed in the form prescribed by leM,e no next of kin but the Crown may grant, the whole '?r any pa_rt the Land Titles Acts (Totrens' System). A mortgage does not operof tlie property to any person having a legal or moral cl:um upon 1t. ate a,;; a transfer of land, but after default of payment the mortgagee can institute foreclosure procceclin~s which are carried on by direction Distress. (See Seizure and Sale.) of court. :'.\Iortga~os must be duly regi-,tered under the provision of Dowt·r. A Dower Act was pa,;secl by the Provincial Le~islature the Land Titles Act,, and take priority in order of registration. All on April 5 Hll7. It pro\'ides t,haL any disposition inter vivos of a transferees of t,Jtle of land subject to mortgage are impliedly bound m!l-n's homei,;tead, made during the life of the wif~ is void. unless made to pay th<' amount of the mort,gage unless in the transfer they expressly With th<> consent in writing of the wife. The wife tnU'-t acknowled_l{e negative the implied covenant to pay. Proceedings 011 mortgages are !>eforc a 1 1 otary Pul>lic or other officer authorized t9 take atnda v~ts nxed by an amendment to the Land Titles :\ct in 1915 such now in connection with the execution of documents reqmred to he re;!1samendment b<>ing Section 63a of the 5aid Act. If wife has dower tcred, apan from her husband that she has executed the i_nstrumef!t propo. ed to be mo:tgaged. he must bar her dower or mortgage t~~ ~ of her own free wilJ and accord and without any compul,-1011 on t~e Par~ of her husband. Every disposif.ion .by \Yi!J of _a marri.e~ ma~ ts All persons associated in partnership for trading Partnership. him. surnvmg wife l_11s of life for I<~stale an to ~UbJect and postponed manufacturing, contracting or mining purposes in the Province rhe tcnn "homestead" in a City, Town. or V11la~e means the hou. e must Ille in the oln<'e of the Registration Clerk of the District dedara.nd_ lots, not exc<'e<ting four lots. on whil'h the rcsjdencc of ~!Jc owner ation in writing signed l>y the various members and giving particulars is situate and "elsewhere" mean<, t,Jie land on wh1eh the re,s1dencc of required by act. H.e~istration must be made within six moni.Ji-s the owner is situate, consisting of not, more tl1an 160 acres .. Th~ .\c:t, after the commencement of t,he partnership. however, does not afl'Ct'L any dispoc;i1ion of property proY1ded_ for m Every person engaged in business for any of the purposes menWritinf; )ei'ore the passin1' of the Act. \Vhcre a man _and wife ~re tioned and who is not. in partnership with anyone but trades under )'esicling i-;eparate and ap:irt the wife's consent may be d1sp nsed with a name indicating a plurality of members shall file declaration set ting Ill the discretion of a judge on good cause shown. out 1>art,iculars. .. . . . Elidt•n<·e. (See Testimony.) The act provides for penalty for non-registration and also pro. Executions. Executions may he hsued 1rnmed1ately on s1gni~g vides for the filing and publication of declaration of dissolution of lil cxce!>t,. J,u<lgmcnt unless the judge flx:~s a period for paymm)t and partnership. casei; for forerlosure or spec1flc perforni:u1cC'_. hut Ill st~cl_1 cases a Claims. ~n all 'cases in which the party pleading relies Proof clerk's <·ertiflcate of the judgment may he flied 10 _the La~d r1tles otUce on any ,msrepre. enta1,10n, fraud, bl'each of trust. wilful default or I>r ·v •nting transfer·. .. ·o e. ecution may he 1. sue<) Ill f!lrcdosure unduE> influence and in all other cases in which particulars may be actions until tlie land is sold. ,\JJs,>lute foreclosurt 1s eqU1valon1 to necessary, particulars shall he stated in the pleading. provided 'that satisfaC'Uon of the mort,gage. Evi>ry writ of exe ·utton :h_all be 1s. ued if the parti<'ulars he of debt,, expenses or damages and exceed three aRainst IJoth gooe1s and lands of the debtor and_ sh~ll remain In force so folios the fa.ct must be so stated. with reference t,o full particulars l~;1g a,; the judgment on which it is issued remanis Ill forrc unle ·' otherdelivered or to be deliYercd. (Hules of Court. Hll-1.) If the claim \\J,;e 1,>rovidecl by any statute for the purpose ol su<'h statute. is contested, claim,; may he proved by commission to take evidence E e1npt1ons. The following arc ex~mpL from. seizure uncl<'r writs abroad. If 011 judgment, e..:em1>liflcation of same is requirecl. If of exer-ution: 1. The necessary and ordmary clottung of.th~ tlefrnd~nt the plaint.iff resides out of the jurisdiction. defendant may demand da1_ry furn1shmg:,. anu hi., family. 2 . 'l'he furnltnre, bouseholtl security for costs which must he furnished within time fixed by Utensils, swine and poultry helonµ;ing to the dofendant and 111.· famll,Y court or, or action stands dismi. sod. The security usually ordered to tho extent of :.oo. 3. The necessary food for ,the def<>1_1dan1 s ~u;ej!f?~iii! ss;:?ioor'$~1oi~e or a bond wiLh two resident responsible family during sL· month,;, which may incluoe gram and iloqr or vegetables and meat, either J)repared for use or _on foot. .4. 'l hree Protest. It is not necessary in this Province to protest, Inland oxen, horses or mules, or any tltref' of them, s_1x co,vs, 1x sheep, ~ills. It is only neces~ary to protest a foreign bill, that is, ~ne which three pigs and fifty domestic fowls. besides the ammals the defendant not or docs not on its face purport to be both drawn and payable 1s same the for food and purposes. may have chosen "to keep for food  or  125  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1974  BANKING AND COMMERCIAL LAWS-BRITISH COLUMBIA  within Canada. But as a Notarial protest is a convenient form of proof, the practice of protesting bills has, as a rule, been adopted in this Province. If bill is not protested, ... ·otice of Dishonour must be given to the drawer anct each endorser not later than the juridical or business day next following dishonour of bill. This notice may be  witness can derive any benefit therefrom. Wills are admitted to probate In the court of the proper (district) upon petition being filed after lapse of seven days from death of testator. ,vorkmen' Compen. ation. A system of government insurance of workmen at expense of the employers is in force.  TJ!~t~t th!ittfif ~~t!nf:i-:~~ai{~f1ft11t11~a~ie~ i~i~ln;~~J. wi~~~ test must be made by a notary public or in absence of a notary then  by a justice of the peace. It must be made by an instrument in writing giving a literal copy of the bill of exchange with all that is written thereon, or annexing the original, stating the presentmen~ and the manner in which it was made, the presence, or absence of the drawee, or acceptor, as the case may be, the refusal to accept or pay, or the inability of the drawee to give a binding acceptance, and in case of refusal the reason assigned, if any, and finally protesting against all the parties to be charged. Recording Acts. Registration of land in the Province of Alberta and registration offices are provided for by the Land Titles Act of Alberta. The registration districts are respectively North Alberta and South Alberta. Transfers, mortgage , assignments, and other instruments, to be in substance in form given by act , which are of very simple character. It is further declared in act that no instrument till registered be effectual to pass any e ·tate or interest in any land (except a leasehold interest for the period of three years or less), or render such land liable as security for payment of money, but when registered has full force and effect. An instrument before registry must be attested by a witness, who must make affidavit as to same. Instruments take priority according to time of registration. A certificate of title may be granted under the act which is declared to operate as conclusive evidence that the person named in such certificate is entitled to the land included in such certificate for the estate and inte1·e t therein specified. An assurance fund is provided to compensate a party deprived of land by any fraud, error, omission or misdescription, in any certificate or title. Redemption. (See Mortgages.) ' Replevin. The plaintiff claiming that personal property was unlawfully taken and is unlawfully detained may obtain an order of replevin. Such order may be obtained from the Clerk on praecipe grounded on affidavit of the plaintiff or his agent stating description and value of the property and the right to po ession and that the property was unlawfully taken or fraudulently got out of his possession within two months next before making the affidavit, etc. Such order may also be obtained from a Judge on motion. Before the heri:fl' replevies the plaintiff must give a bond to him in such sum as is pre cribed by order or if no sum is prescribed in double the value of the property. Rules of Court, 1914. Review of Judgment. Appeal lies to the Appellate Division of the Supreme Court. Notice must be given within twenty days after formal judgment or order has been signed and entered. Leave to appeal is nece ary where the amount in question on appeal i less than S200. Execution is not stayed unless specially ordered by the Judge. (See Rules of Court, 1914.) Seizure and ale. Every distre or seizure under any lien, attornment clause in real e tate mortgage or agreement for sale, conditional sale, chattel mortgage, bill of sale, lien note, hire receipt, ware-house receipt or any other extra judicial process shall be made,  ~t~~iri~~g r~e~\i~:yb;hihe hih~ri.ff,hA~!'sta~tilt~ °rie~~rr: E~~~~ and by no other person Whatsoever. o sale may be made without first obtaining leave of the Court. Statute of Frauds. The fourth section of the Imperial Statute of Frauds is in force and is as follows: '' That no action shall be brought whereby to charge any executor or administrator upon any special promise to answer damages out of his own estate; or whereby to charge the defendant upon any special promise to answer for the debt, default, or miscarriage of another person or to charge any person upon any agreement made in consideration of marriage, or upon any contract or ale of lands, tenements, or hereditaments, or any interest in or concerning them or upon any agreement that is not to be pel'formed within the space of one year from the making. thereof, unless the agreement upon which action shall be brought or some memorandum or note thereof hall be in writing and signed by the ~)a~~y c~irn~~iz~1a_~r!lwith, or some other person thereunto by By the sale of goods ordinance a contract for the sale of goods of the value of $50.00 or upward shall not be enforceable by action unless the buyer shall accept part of the goods so sold and actually receive the same. or give something in earnest to bind the contract or in part payment, or unless some note or memorandum in writing of the contract be made and igned by the party to be charged, or his agent in that behalf. No action shall be brought whereby to charge any person either by way of commission or otherwise, for services rendered in connection with the sale of any land, tenements. or hereditaments or any interest therein, unless the contract upon which recovery i sought In such action, or some note or memorandum thereof, is in writing signed by the party sought to be charged, or by his agent, thereunto lawfully authorized in writing. Taxes. Taxes are lien on land. Where taxes are in arrears for one year land may be sold and redemption may be made within one year. There is personal liability for taxes a:; for a debt. But this may not be enforced until land is offered for sale. Testhnony. Witnesses are examined viva voce in open court but the judge may order that any particular fact may be proved by affidavit or that affidavit of any per ·on may be read at the trial, or be may order that any witnesse whose attendance in court for some reason ought to be dispensed with may be examined by interrogatories or before a commissioner or examiner. Any evidence taken in one cause may by leave of the judge be read in any other cause or matter. Copies of all writs, records. pleadings, documents, etc., filed in court are, when verified by clerk, admi ible in any cause or matter to the same extent as the original would be. The provi ion of the Canada Evidence Act apply to all criminal proceeding and to all civil proceedings and other matters respecting which the Parliament of Canada has juri diction in this behalf. The Canada Evidence Act also applied to the taking of evidence relating to proceedings in Courts out of Canada. ( ee Rules of ourt, 1914.) Alberta Evidence Act, 1910. Canada Evidence Act. Trust Deed to ecure Debenture . Provisions as to registration the same as in the case of chattel mortgages, q. v., except that renewal is effected by filing with the registrar of comparues the by-laws authorizing the issue of debentures or a copy thereof certified under the hand of the president, or vice-president and the secretary and verified by an affidavit of the . ecretary, and a copy of the trust deed certifled and verified as aforesaid. Wills. Any wills to be valid must be in writing, or typewritten, witnessed by two competent witn~ ses, and signed b:r the testator or by some person in his presence. and by his express direction. The two witnesses shall attest and subscribe in the presence of the te ·tator and if the witnesses are competent at the time of attesting the execution of the will, their subsequent incompetency, from whatever caw·e ft may arise. shall not prevent the probate and allowance of the will. N o subscribing witness to any wll or the wife or husband of such  SYNOPSIS OF  THE LAWS OF BRITISH COLUMBIA RELATING TO  BANKING AND COMMERCIAL USAGES Prepared by MACKENZIE MATHESON, Barrister, Vancouver. (See Card in Attorneys' List.) Acknowledgment of Deeds, Etc. (or proof by subscribing witness), for registry in British Columbia, if taken within the Province, may be before the registrar or deputy registrar of titles, a stipendiary magi trate or justice of the peace, a judge or regi trar of a court having a seal, a COIDII1.U; ioner for affidavits or a notary public. If taken or acknowledged without British dominions, may be before any British ambassador, charge d'afl'aires, minister, consul, or consular agent appointed to reside In the country where the acknowledgment or proof is taken; any judge of any court of record having a seal, or any notary public practicing in such country, certified to be such by a British amba sador, charge d'afl'aires, minister, consul, or consular agent, or by the governor or secretary of the State, province, or territory. The fact of the taking of such acknowledgment must appear by a certificate under the band and official seal of the officer taking the same, endorsed upon or attached to the instrument. Such certificate must show that the person making the acknowledgment or proof (being either per anally known to the officer or his identity proved by the oath or affirmation of a competent witness) has appeared before the officer (stating when) and acknowledged that he ls the person mentioned in the instrument as the maker thereof, and who e name is ubscribed as party thereto, that he knows the contents thereof and executed the ~me voluntarily, and that he L of the full age of twenty-one years. De ds and instrument by corporations hould be executed and acknowledged by the s !'retary; and the certificate of acknowledgm nt must state. in addition to . uch of tha above matters as are applicable. that such secretary acknowledged t.hat he is the person who subs ribec.1 nis name and affixed the seal of the corporation, as the ecretary, to. uch instrument, and that he was first duly authorized to subscribe and affix the said seal to the same and that the company is authorized to carry on business in the Province. Action are commenced by a writ of summons. and conducted, in the supreme court, under the judicature act and rules, and in the county courts under a system of practice clo ely analogous thereto. A defendant served with a. supreme or county court summons in the province must enter an appearance it.bin eight days,. inclusive of the day of service. Where served out of the province (for which a judge's order must be had) the time limited for appearance is fixed by the judge regard being had to the distance from British Columbia. Service beyond the jurisdiction may be also ordered in county court actions. During the continuance of the war and for six months after peace is declared, no action may be brought against a soldier or member of the navy or the dependents of either. , Adminl tration of E tate of Decea ed Per ons. There are no separate courts of probate, but county courts have, within their respective districts, concurrent jurisdiction with the supreme court. to grant administration or otherwi e act in probate matters, where the personal e tate of the decea:ed doe not exceed 2,500. In larger estates the supreme court has ;ole juri. diction. Persons taking out administration must furnish ecurity for the due performance of the trust by furnishing a bond with two ureties. in double the amount of the personal estate. Creditors rank equally upon e:·tates of deceased persons (subject to any security they may hold), there being no priority of specialty debts over simple contract debts. \\'bere a person dies intestate as to personal property. or baying appointed an executor resident out of the province, administration may be granted to the official administrator. Claims against the estate or deceru eel persons should be pre ·ented to the executor or administrator, verified by affidavit or declaration made before a proper officer. ( ee Accounts, 1 1 8 ~~~~~~-~d. ;~~ e~:~:t!:ct ~~~~ e ff!t!~: therefor. (See al o Probate, ucce:·slon. Duties.) During the continuance of the European war. admini tration will not be allowed of the estate of decea: ed subject or a country at war with Great Britain or her allies. e.·cept to a limited extent. Affida\'lt , fflrmation , and Declaration may be sworn or made abroad, for u,.<;e in Ilriti"h Columbia, before a comm! ioner authorized to administer oaths in the upreme court of judicature In England; a j)ldge of any of the uperlor courts of England, Ireland, or cotland; a Judge of any of the county cour of England or Ireland, within his county; a notary public. certified under his hand and official seal; the mayor or chief magistrate of any city borough or town corporate in Great Britain or Ireland, or in any British colony without Canada. or in any foreign country. certified under the common seal ot such city, borough, or town corporate; a judge of any court of record or of supreme jurisdiction in any British colony or dependency witboct Canada, or in any foreign country; or before any British consul, vtceconsul, or consular agent, exercising his functions in a foreign place, (See Evidence.) Allen hav~ the same capacity as natural-born British ubjects to take, hold, enJoy, recover, convey and transmit title to land and real estate of every d~ cription in Briti. h Columbia. Arr t. In actions in the supreme or county court, the defendant may be arrested In the first instance on a writ of capias where tbe cla}ID is for debt _or d~mage amounting to 100 or upward. such writ i. ues on a Judges order, upon the plaintiff filing an affidavit bowing a cause of action against the defendant to the amount or s100 or upward, or that he has . u tained damag to that amount and that there Is prob~ble cau e for believing that the defendant is' about to quit the ProVIDce uni forthwith apprehended.  Ei8u~ft>!  1  ~1ro;!~&e  i:~t!bY!  0  d  :e  BANKING AND COMMERCIAL LAWS-BRITISH COLUMBIA  1975  Attachment. (See Courts, Garnishee.) Descent of Real Property. Tho real property of a person dying intestate descends directly to the heirs, and is only made available for Bankruptcy. (See Bankruptcy under New Brunswick Laws.) creditors of the deceased by special application to the court. UnBanks and Banking are not within the jurisdiction of the prodevised real estate is subject to the widow's dower. (See Dower.) vincial legislature, but are dealt with by the Canadian federal parliament, and the law is the same for all the provinces. (See Nova Scotia, Dower. The widow of a deceased person is entitled to dower same subject.) out of any land which he shall not have absolutely disposed of in his lifetime, or by will. Unless a contrary intention appears by the Bills of Exchange and Promissory Note . The law on this subwill a devise to the wife of any land which would ordinarily be subject is governed by the Canadian federal parliament, and is the same ject to dower bars her right to dower out of all lands of the deceased. for all the provinces. (Canada Bills of Exchange act, 1890.) Bills Dower is subject to any conditions or restrictions declared by the and notes are negotiable, and the general law is almost identical with will. A bequest of personal estate does not bar dower unless a conthat of England, and much the same as in most of the United States of trary intention is declared, and a legacy bequeathed to the wife in America. Three days' grace are allowed on all bills and notes, except lieu of dower takes priority over other legacies. Land may b·e absowhen payable on demand. lutely disposed of and the wife's right to dower barred by the husBills or Sale and Chattel Mortgages. Every bill of sale, whc>ther band, by deed, without the wife joining in the execution. Not more absolute or conditional and every schedule or inventory annexed, and than six years arrears of dower may be recovered. every attestation of the execution, together with an affidavit of the time of such bill of sale being made or given and a description of the Execution. In the supreme or county court. where judgment fs residence and occupation of the person making or giving the same (or for non-payment of a sum of money or costs. or for the recovery of land, the person against whom process shall have issued if given under execution against goods, or for delivery of possession of the land, as execution of process), shall be registered in the office of the county the case may, be, may issue forthwith. On judgments of a different court registrar of the district wherein the goods affected are situate; nature than above specified, unless otherwise ordered, fourteen days where the goods are situate in the same town or place as the county must elapse before execution. Thern is no execution against lands, court registry, the bill of sale must be registered within five days after but where a judgment has been recovered exceeding $100, tho judgexecution; in other cases within twenty-one days. The time for regisment may be registered against lands of the defendants, and a judge tration may be extended by a judge on good cause being shown. An may order the same sold by the sherifl' to S&Lisfy the judgment. affidavit of the transferee or mortgagee in the statutory form, must Judgments registered against lands affect the lands from time of also be filed at the same time, stating that the instrument is given and the registration of the judgment, and bind the same for two years; they taken bona fide, non-compliance with these requirements renders the may be renewed for a further period of two years, and so from time to bill of sale void as against creditors, sheriff's officers, or subsequent time. (See Judgment). An execution binds goods from the time of purchasers or mortgagees in good faith. The holder of a registered bill actual seizure thereunder. • of sale or chattel mortgage must, within fifteen days after service of Executors and Administrators. (See Administration, Probato. demand by a creditor, furnish such creditor with a sworn statement Succession, Duties.) showing the state of accounts secured by the bill of sale or mortgage, otherwise the bill of sale or mortgage is void as against such creditor. Exemptions. The goods and chattels of any debtor, at his option, Bulk Sales. (See Sale of Goods in Bulk.) to the value of $500, are exempt from fot·ced seizure of sale by any process of law or equity (save distress for rent or taxes). This does not Companies may be incorporated by special act of the legislature, or (except railway and insurance companies) under the general "com- ' extend to goods taken in satisfaction of a debt contracted for or in respect of such identical goods, nor to the stock in trade of a trader. Panias act, 1910," in the latter case by the execution (by not less than Lands, duly registered as a homestead, are exempt to the value of three persons) and filing or a memorandum of association, according to $2,500. (See Homesteads, Garnishee.) the requirements of the act. Extra-provincial companies incorporated in Great Britain and Ireland, or in any province of Canada, may be Frauds, Statute of. Leases, or estates in land, not in writing .and licensed to do business in British Columbia. Extra-provincial comsigned by the party creating the same, have the force of estates at will panies incorporated elsewhere than as above mentioned, before doing only, except lea.'ies not exceeding three years. The following must business in British Columbia, roust be registered. Extra-provinc-ial also be in writing: Promise by an executor or administrator to answer companies can only be licensed or registered in the province where by damages out of his own estate; promise to answer for the debt, default their charter they have authority to carry on business in British or miscan-iage of another person; agreement made upon consideration Columbia. Where this is lacking the best course is to be reincorof marriage or upon any contract or sale of lands or of any interest porated in this province, the cost being the same as above stated. therein; agreement which is not to be performed within one year; Extra-provincial companies registered or licensed in British Columbia declaration or assignment of trust; acknowledgment of debt, to bar !lave the same privileges and arn subject to the same liabilities as if the operation of the statute of limitations (except where such acknowlmcorporated in the Province. Any extra-provincial company carryedgment takes the form of a payment on account of principal or intering on business in British Columbia without having been licensed or est) ratification or promise made after full age to pay a debt contracted registered is liable to a penalty of $50 per day for the time during which during infancy; representation or assurance concerning the character, business is so carried on, and is incapable of enforcing any contract credit, ability, etc. of another person, in order that such person may relating to such business. obtain credit. No contract for the sale of good'> valued at 50 or upMining Companies, (no others) whether incorporated, licensed, or wards is binding, unless the buyer accept and actually receive part of registered, may entitle themselves to issue their shares below par, as the goods sold, or give something in earnest to bind the bargain or in "fully paid up and non-as esc;able," and holders of such shares are not part payment, sign a memorandum of the sale. liable for assessments beyond the amount actually paid thereon. Companies may be wound up under the Canadian Winding-up Act Garnishee. In all courts of the province, debts owing to the judg(Revised Statutes of Canada). ment debtor may be attached by the judgment creditor, upon an ex Deeds given by Companies. (See Acknowledgments; see also parte application supported by affidavit showing that judgment has Powers of Attorney.) been recovered and is still unsatisfied, and to what amount, or that au action is pending, verifying the debt, and stating that any other person Conditional Sales of Goods. Receipt notes, lien orders, or hire is indebted to the judgment debtor, and is within the jurisdiction of receipts must be flied within thirty days in the office (?f the county the court. Debts due to defendant may be thus attached before court registrar of the district in which the goods are situate, otherjudgment, as well as after. In small debts courts, wages due defendWise they are void as against subsequent purchase1:5 or mortgagees. ant are exempt from garnishee up to $40, where defendant is married A copy of the receipt-rate, lien order or hire-rec~q>t must also be or the mainstay of others, and $20 in other cases, except where the left within the vendee. Goods held under a cond1t1onal sale agreeplaintiff's claim is for board or lodging. In the county court a similar ment are subject to distress for rent due by the purchaser, to the extent exemption may be allowed by tbe judge, not exceeding $40. only of the interest of such purchaser in the goods. Homesteads. Lands may be registered as a homestead, up to the Contracts. (See Frauds, Statute of.) 1 value of $2.500, upon the owner filing in the registry office a notice Conveyances. (See Acknowledgments, Deeds.) thereof and a declaration disclo~ing assets equal to that amount, or Corporations. (See Companies.) to the value of the homestead, where it is worth less than $2,500. Costs, Security for, must be given in supreme and co~nty court Insolvency. There is, at present, no general insolvency or bankac_:tions, if demanded, where the plaint~ resides outside Brit1SJ:} C~lumruptcy law in force in the provinces of Canada. (See Assignments.) b1a, or is an extra-provincial corporat10n, unle · the pla.mt11? 1S the Interest. The legal rate of interest is 5 per cent, where no other owner of real estate in the province. (, ee Companies.) The amount rate is stipulated, but any rate may be agreed upon between the parties is fixed by a judo-e in each c~ e, but $150 is the least amount usually there being no usury law at present in force in Canada; banks, however. ordered in supre'ke court actions, and $50 in the county court. cannot lawfully recover more than 7 per cent on loans and money Courts and Their Jurisdictions. Small debt:5 ~ourts_ (pre~idE;d lenders are prohibited from charging more than twelve per cent on over by police and stipendiary magistrates) have Junsd1ct1on within loans of less than $500. Unpaid bills of exchange and promissory their districts concurrently with the county courts and surpreme notes bear interest at 5 per cent from maturity, whether so expressed court, in actions of debt, where the demand does not exceed 100, b1:1t have no jurisdiction in tort nor where the title t,o land co.mes m , or not. question. County courts have jurisdiction, concurrently with the , Judgments of the supreme and county courts are valid for twenty supreme court in personal actions for debt or damages, up to Sl,000; years. They bind lands and interests therein of every description for !n ejectment ~here the value of the premises does. not exceed $~.500; two years from the time of registry thereof in the land relti.stry office ~n ~eplevin where the goods do not exceed $1,00~ m value; equ1taJ?le of the district wherein the lands lie, and affect lands acquired by the ~ur1sdiction (including trusts, foreclosure._ spet;itlc_ performance, mjudgment debtor after, as well as before, registration of the judgment. JUnctions, accounts, etc.) up to $2,500; junsd1ct1on rn probate matters Judgments must be registered before lands can be sold thereunder. Where the personal estate does not. exceed ~2.500. In t?e_ county (See Execution.) Registration may be renewed from time to time court, as in the supreme court, execution may issue only agau~ t goods, for a further period of two yeat'S. Foreign Judgments: Judgments !lut the judge may order defendant's lands to be.sold ,~here Jud,p:nent recovered in any court outside of British Columbia are foreign judgts over Sl00. (See Execution.) An appe~I hes. with or without ments. and this includes judgments of courts of the other to provinces of !Special leave according to the nature of the Judgment, to the court of Canada. A final judgment of a foreign court having jurisdiction over appeal, from any judgment or order of a c~un~y _co1:1rt, whether i~terthe parties and subject matter or the suit is conclusive between the lf?c~1tory or final. The supreme court. bas JUt 1sd_1ctio~ over.~11 actions parties. on the merits; and in an action brought in British Columbia. civil and criminal arising in the provmce, and 1s vested "1th all the upon such a judgment no defence can be given which might have been Powers of the courts of common law, chancery, and. probate. An given in the original action, if the defendant was served with or bad ~PPeal lies to the court of appeal from any order or Judgment of a notice of the process in such original action, and an opportunity to Judge. An appeal lies from the judgment of the co~rt 9f_ appeal ~ the answer it. Suit can be brought in British Columbia upon a foreign supreme court of Ca11ada, at Ottawa, and t~ the Jud1c_1al comnntt0;e judgment wir,hin the time limited for actions upon judgments by the of the privy council, England. (See also Act10ns, Arre,,,t, 9osts, Evilaws of such country. dence, Execution, Garnishee, Judgments, Probate, Replevm.) Lease must be in writing, and signed by the lessor, except leases Deeds Mortgage and Reglstratlon. Deeds. mortgag~. and for terms not exceeding three years. They need not be under seal, Other trinsfers and charges afl'ecting lands need no_t ~ecess~r1ly be except in the case of incorporated companies, but it is advisable to so Under seal except in the case of bodies corporate. bu~ it 1· advisable to have them, as consideration is then pre urned. Leases for three years so have them They must be re~istered in the registry office _of the or more should be registered, and must be first proved or acknowledged. district wherein the lands to be at?ected lie, i1? order to be vahd a1;1d (See Acknowledgments, Land Registry.) mortgages executed by incorporated compames n:iust ,~1s9 be regisLiens, l\.fechanics'. Unless otherwise agreed in writing, every tered with the Registrar of Join~ Stock C9mpa~11es "1thm tw_en~ycontractor, sub-contractor, and laborer doing or causing work to the one days after execution. Priority of reg1str3:t1on creat_es priority amount of $20 or upwards, to be done upon any building, wharf, bridge, of title, and purchasers, for valuable consideration, of re~istered real mine or other work, and any person furnishing materials to be used est~te or registered interest ther~in are n?t atrecte~ by notice, express, in the construction or alteration of such building, etc., has a lien thereor implied, of any prior unregistered title atrectrng the sa!De, save on and on machinery and fixtures therein, and on the materials furonly leasehold interests in possession f~r a te~ no_t exceedm~ three nished therefor, and the lands and premises occupied thereby, for the Years. \Vant of consideration alone will no~ mvahdat~ a r~JStered price of such work or materials. The lien must be registered within Voluntary conveyance executed in good faith. A will cannot . be thirty-one days after the work is completed, or the claimant has ceased registered until probate thereof has been granted. The execution to work thereon (except in the case of miners, who are allowed sixty Of Instruments requiring to be registered must be first proved or days), and an action in the county court to enforce the same must be acknowledged before the proper officer. (See Acknowledgments.)   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  0   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1976  BANKING AND COMMERCIAL LAWS-MANITOBA  begun and-~is penden. filed, within thirty-one d : : a f : r~g~t:tion of the lien. Persons claiming liens for materials must give notice of their claim before delivery or within ten days after delivery. Liens of \\'oodmen. Any person performing labor or services in connection with any logs or t,imber in the Province, has a lien thereon, and on the lumber manufactured therefrom, for tbe amount due him, taking precedence over all charges except government tolls thereon. The lien must be fllecl within thirty days after the last day of such labor or services, and proceedings to enforce the same taken in t,be supreme or county court (according to their re pective jurisdictions) within thirty days after filing the lien. Limitations of Actions. Actions upon simple contracts notes, bills, accounts, libel. trespass to lands. dotinue, repleYin . and for seamen's wages, must be brought within six years; for assault, battery, wounding, or false imprisonment, within four years; and for slander and penalties fixed by statute, within t-wo years from the time the cause of action respectively arose. Actions upon judgments, bonds, mortgaises, or instruments under seal, or to recover lands must be brought within twenty years. \Yhere the plaintiff is under any disability, such as infancy, coverture or lunacy, or the defendant is beyond seas, the limitation does not begin to run until the removal of the disability. Acknowledgments to bar the statute of limitations must be in writing. Foreign Limitations. An action ~annot be maintained in Britbh Columbia. on a cause of action arising beyond t,he l'ro,'ince, where it is barred by any statute of limitations of the country in which it arose. I\.larried Womon, Property and Status of. A married woman may acquire. hold, and dispose, by will or otherwise, of any property, real or personal. as her separate property, in the same manner as if she were a femme sole, independently of her husband, and without the  ~ftt;gf%~~~~~ 1ii~<;n~~<;t~!r  t~e;;:t~~i~~ts~;r:~je~e s~~~ ;ft1i;:i,af~ contract, tort, or otherwise; any damage or costs recovered by her are her separate property and if recovered against her are payable out of her separate property. Husband and wife may sue each other, except in tort, and give evidence against each other. Mining Laws. Mineral Quartz J\Iines. Every pernon or corpora0  1  ~\'h1!;/1r~~ec~~f.afil~ftiraf ~ ~~tc!i}~~iinfd! ~~gc~~~i~~lit~i;:~a~~~~~e must be constantly kept in force thereafter or all rights ( hort of a Crown grant) will be forfeited. ('ertiflcates may be taken out by individuals for one or more years, on payment of the fee therefor, but certificates of joint stock companies can only be taken out or renewed for one year at a time. All certificates expire May 31st in each year. The foundation of the right of a free miner to enter and mine is the tact that the right to the minerals does not ordinarily pass by the grant, but is reserved to the ci·own and its licenses; and such right to minerals foWld in lands of other persons exists only where they have been so reserved. A full size mineral quartz claim is 1,500 by 1,500 feet. but fractional claims may be locat,ed. All transfers of mining property or interests must be in writing and duly recorded. Mining partnerships may locate a claim for each partner, and each partner must hold a free miner's certificate. Placer mining claims are 100 feet Ion~, varying in bread th according to whether "creek," "bar," " bench, · "dry," or "bill" claims. The statutory requirements as to location and record must be strictly observed. oal Mining. A license may be obtained for one year (renewable for further terms of one year as long as prospecting is actually carried on) to prospect for coal or petroleum over a tract of land not exceeding 640 acres, after performance of the statutory requirements as to location posts, publication of notice, etc., a fee of $100 per year. If coal is discovered the licensee may obtain a lease for five years. At the expiration of the term, if mining has been continuously carried on, a Crown grant of the lands may be obtained at $5 per acre. All coal raised, whether under lease or grant, is subject to a royalty to the crown of 5 cents per ton, petroleum 1 cent per barrel. Mines are subject to government inspection and regulation. Partnerships are either general or limited, the latter consisting of one or more general partners a ociated with one or more special or silent partners. who contribute to the firm capital. General partners are each liable for all tho partnership debts; special partners are not liable beyond the amount contributed by them to the capital, but are not allowed to transact business and sign for the partnership, or bind the same in any way, thougb they may examine the state and progress of the partner:-hip concerns and advise as to the management. Special partners interfering further than this thereby become general partners, and are liable accordingly. Persons forming limited partnerships for trading, mining, or manufacturing busines'-. within the Province. must register a certificate and publish notice thereof, and any renewal. change in members or object:-, or dis.<mlution must be similarlyregistereJ and published, otherwise the partnership is treated as a general one. General partnerships must also be registered and a certificate fllf'd on their formation. dissolution. or any change in firm name or membership, or removal of any member from the province, otherwise a penalty is recoverable again t the parties. Probate. (Ree Administration, Courts, Deceased Persons, Descent, Succession, Duties, Wills.) Promissory Notes. (See Bills of Exchange.) Redemption. r.Iortgaged property may be redeemed up to time of actual sale, under power of sale or decree of court, u11on payment of all arrears of principal and interest. together with costs of proceedings. Lands. sold for taxes may be redeemed within one year, if within incorporated municipalities. and two years in unincorporated communities. upon payment of arrears, interest, and costs. Replevin. When goods, chattels. papers, or any other personal effect.« llave been unlawfully distraiued, taken or retained. the person complaining thereof may bring an action of replevin to determine the rights. ancl bave the property re-;tm·ed to him nnder a writ or replovin. pending the result of the action. Before obtaining the writ, or a return of the property thereunder, ho mtt,t furni:h a bond to tbe heritr, in double the value of the property, conditioned to prosecute the action wit.h the effect and without delay, and to return the property, if so adjudged. The sheriff then replevies or seizes the property, and restores it to the complainant, pendin~ the result of the action, which is carried on in the same manner as other actions. Sale of Goods in Bulk. l'urchac;ers of stocks-in-trade of goods in hulk must, before making any payment or giving any promi. sory note. etc .. on account, obtain from the vendor an a!lida.vit showing the names and addresses of the vendor's creditors for 50.00 or o,·er in respect of the goocts. with a.mounts of their claims, or el. e a written waiver of such requirement, signed by the creditors; otherwise the sale is void as against such creditors. Succession Uuties on Estate of Deceased Persons are not charged on estates of less not Yalue (after payment of' all debts) than $5,000 nor on estates of le.-::s value than 25,000, where the property passes to the father. mother, husoand, wife. child. grandchild, daughterin-law. or son-in-law of the decea ·ed. ave, as above ment,ioned. duty is charged ranging from I per rent to 10 per cent, dependin~ on the value of tbe est.ate and the degree of relationship of the inheritors. Taxes are levied by the provincial government, and also by the various cities, towns, and dbtrict municipalities within their respective limits.  I__  Provincial. An annual poll-tax of $3 is levied on male persons over eighteen years of a.ge. All lands. improvements on lands, personal property and income in the province (except land and improvements in municipalities, which are taxed by the municipality) are subject to provincial taxation, with certain exemptions. MuniciJJal Taxes. Cities and other municipalities levy taxes on land and improvements thereon, and by way of business licenses and road tax. Land is assessed at its actual cash value and improvements at 50 per cent of the value. but municipalities may exempo improvements in whole or in part. and, in Vancouver, they have been wholly exempt from taxation for several years. 1'.lunicipal taxes on land and improvements are subject to a rebate of 1- 6, if paid before December 1st. Commercial travelers for firms not having a permanent place of business in the municipality and selling goods at retail are subject to a business license tax in municipalities, the amow1t of which i~ fixed hy the respective municipalities, but may not exceed 50 for six months. Real estate sold for taxes may be redeemed within one year in municipalities, and two years elsewhere, on payment of the amount paid therefor by the purchaser at such sale, with interest. Taxes constitute a lien on property, prior to all other liens, save that of the Crown (if any) . Transfer or Corporation Stock must be effected in the manner fixed by the by-laws of the corporation. Wages. (See A.signments, Executions, Infants, Liens.) Wills must be in writing, and signed at the foot by the testator, or by some other person in his presence and by his direction; and such signature must be made and acknowledged by the testator in the presence of two or more witnesses, present at the same time, who shall attest and subscribe in the presence uf the testator. No form of attestation is necessary. Any property or interest in property may be 3~~i:e~off~Jm\~~· e~~~u~i6~~ sf~ak:t!ri~nntite ~~~ ~f ~~1Tdt~;~_tor1 gift to an attesting wHncss is void, but does not otherwise affect the will, or the c·ompetency of such witness to pro\·e the execution. An executor may be a witness. A will is re,·ob:ed: lly marria"e, except where made in exercise of a power of appointment; by a subsequent will or codicil, or some writing declaring an intention to revoke the same, and executed in the manner required for a will, or by the destruction of the will. ·where real estate is devised without any words of limitation, such devise will pass the fee simple or other the whole estate of the testator therein, unless a contrary intention appear. Gifts to children or other i. ue, who have died leaving issue at the testator's death, do not lapse, but descend to such issue. A will must be duly proved in a court having jurisdiction in probate before it can be registered. Woodman's Lien. (See Liens.)  SYNOPSIS OF  THE LAWS OF MANITOBA RELATI. .G TO  BANKING AND COMMERCIAL USAGES Prcpar•d a.nil Ho\'ised by ;\[E.~sns. H1,H.um • • WEAT. 1,1. .•, I•'ILL , RE c· l{ILt)Y, Barrister', \\'innipeg. '0 ('a.rd in Attorneys' List.)  c~·  Acknowledgments. ( ee Deeds.) Actions. In the county court a defendant served wit.bin the Province with a writ for a liquidated claim or debt must within ten days from service upon him file a dispute note, otherwise judgment b1  BANKING AND COMMERCIAL LAWS-MANITOBA default may be signed against him and execution may be issued against his goods six days after judgment. In the king's bench the defendant has sixteen days to file his defense if served within the Province, four weeks if served in any other Province or in the United States, eight weeks if within the United Kingdom or Newfoundland, and twelve weeks if within any other country, otherwise judgment may be signed and execution issued immediately, provided the plaintiff's claim is a liquidated one. If t,h e defendant enters a defense to such a claim, a plaintiff may apply for leave to sign final judgment after filing an affidavit made by himself or any other person who can swear positively to the cause of action, and stating that in his belief there is no defense to the action. Every debt or chose-in-action rising out of a contract is assignable at law by any form of writing. Administration of Estates. (See Probate.) Affidavits. For use in provincial courts affldavlts and declarations may be made in the province before any notary public or commissioner for taking affidavits for use in any of the courts or before any judge, clerk of any county court, registrar, district registrar or his deputy. A statutory declaration may be made attesting the writing of any instrument or tho truth of any fact or account if made in Oanada, otherwise an affidavit must be used. Affidavit-<;, declarations, etc., made out of Manitoba for use here may be made before : l. Any commissioner for oaths appointed by the Lord Chancellor under Sec. 1 of '' The commissioners for Oaths Act, 1889," or any amendment thereto. 2. Any notary public certified under his official seal. 3. The mayor or chief magistrate of any city, borough, or town corporate in Great Britain or Ireland, or in any of His Majesty's dominions within Canada, or in any foreign country certified under the corporate seal. 4. A judge of any court or superior jurisdiction in His r faj ty's dominions without Manitoba with the seal of tho court affixed. 5. A consular agent of His Majesty exe1·cising his functions in any foreign place. 6. Any commissioner for taking affidavits for use in this Province. Aliens. Real and personal property of every description may be taken, acquired, held and disposed of as if a natural born Briti<;h subject, and title to real and personal property may be derived from or in succession to an alien. Arrest. No one can lawfully be arrested or held to bail for debt or non-payment of money. Bankruptcy. (Dominion Statute). The Bankruptcy Act which came into efl'ect July 1st, 1020, introduced voluntary as ,...-ell as compulsory bankruptcy. A debtor may be compulsory adjudged bankrupt where be ab conds, makes a fraudulent preference or conveyance, leaves an execution unsatisfied or no good. to be founct by the 'heritr or remo,·es his goods with int nt to defraud his creditors. The do'>t of tho petitioning creditor must be oyer 500. A debtor may al.·o make an authorized assignment to an authorized trustee for the general benefit of bis noditors. In either case the fact mu t be ad,·crtisod in tho C'anada Gazette and also a local newspaper. The Act is similar to the English Bankruptcy Act and hru provision for an ext onsion and composil ion with tho creditors. The a ·siimce 1:1m;t send out notice of tho as.-;ignmcnt or r ceiving otdor to all creditors !aim.- provm_1 _by ancl convene a meeting within twenty days. afllclavit mus!; be filed by the trnstoe appointed by the rccoivmg Order or by the authorized a:-;signment to entitle the reditors to vote at the first.meeting. Inspectors can he appointed at the first me~ting of the creditors ancl all questions diseus ·ed at meeting, of creditors  i~~  1  ~·iti~  \1:1~eb~a;,~l~~~~ftdv~~efoii~~/~r sx~hcf~~~ ~P ttoe ~fec~~~\t one vote: over. 200 and undt>r $500, two votes: over .·,>oq and under 1,000, three votes; for every additional 1,000 or fra ·t10n th r of. one votu. Tho compul:ory features of this Act do not apply lo farmers. a_les and. l\Iortgages of Bills of Sale and Chattel l\,'lort gages. l!Cl'sonal property not accompanied by immediate delrycry and not lollowed by an actual and continual change of pos ·oss1on are absolutely void as against the er •dilor:-; of the vendor _and mortgagor and subsequent purchasers or mortgagees in good faith for valu . ,unle'-'s 1.hc bill of sale or mort?"a~c be flied with tho Clerk of the ( ou_nty Court in tho .Judicial Division whet'a ihe goods and chatt +, ar~ s1tuatccl within twenty day.~ from the oxeC'ution thereof accompamecl by an affidavit of execution and an afJidavit of tho vendoe or mortgagee uc)1 ~urtgao-c ~u"t be sbowin~ the good faith of tho transaction. 1·cnewpcl within thirtv days prec ding the oxp1ration of t\H> years from the dat of filing by ti'ling a. tatt'ment showing th amount still <>Wing and setting forth that the .l\lortgage is not kept on foot for any fraudulent puq>ose. Attachment.. An order for attachment may be obtained in an action commenced by statement of claim. against any benefit, ~tate or interest in any real or personal property not _exempt from seizure Under execution or from liability to answer a Judgment upon such cause of action in the followin{a!: cases: 1. "\\'hen any debtor or ott?er person, being an inhabit.ant of Manit,ob~. shall depart tl?,erefrom with intent to defraud his creditors or to avoid arrest or serv1ce of process, or shall conceal himself therein with like intent. 2 .. When such !lehtor or other person, not being a resideJ?t of the Provmc , shai1 be mdebtecl or liable to a resident of the Provmce upon co~tract.. "hen said debtor or other person, whether re ide_nt or n<?n-res1dent, 1s _l!-hout to remove any of his property out of the said Provmce, or ha as 1gned or secret.eel any of his propehy therein with intent t<? defeat, del:1y_or defraud creditors. • .,.o bonds aro required to be gn-~n hy plaintiff. Remedy by g-arnishee process given by statute to cred1tor: or per.·ons having a cause of action against another, may he ~ad at the c~mmenceme_nt of or at any time cllll'ing the pendency of _suit, or aft~r,:udgme_nt. A JUdgmont requiring a person to do or abstarn from domo anythmg except the payment of money may be enforced by mandamus. Thero arc no statutory provisions on this ubject in Conn ternl Manitoba. Contracts. All persons are capable of_ contrac~i~1g. except mip.ors, Persons of unsound mind. and persons deprived of c1v1l I lghts. lvlm?r are persons under the age of 21 years. All ~ontr3:c~ may be ~ial. except such as are required by i-tatu1 e to be m wntu~g: namely · 1. Any agreement whereby to charge an executor. or admmi. trato.; upon a special promise to answer damages out of his_ own _estate. -· Any Promise to answer for tho debt,, default,, or mu carna~e of another. 3 - Any a~reem.ont made upon the consideration of ma_rriage. 4. A_ny agreernent for the sale of real estate or any interest. m or concerpm_g it. 5. Any a~reemont not to be performed wlthn~ a year. rh1 does not, apply to lease. for le •s than three years m pursuance of Which the leased premise. have been or ~h_all be ?-C!ually accepted by the lessee or any person claiming under him durm,, any part of such term. No agreement for the sale of personal property 9f the value of $50 or upward shall be good unless the buyer shall r~cc1v~ part of the Property sold or give something to bind the bargam or m part pal;1¥ent or ~mless some 'memorandum in writ~ng of such a~rc~ment lS signed by the partie to bo charged or. their ¥ent.. ,yage~mg co~: tract;5 are void, The sale or importat10n of ,mtoxicatmg hqu,ors. 1.. Droh1hitecl. Under the Bankruptcy ct 3:11 f1audulc_nt conv ~ am es of real or personal property made wiLh the intent to hmd<;r or defr!J-ud a creditor nn~st h attachc:cl within n~ne~y (90) qa~. ~nd 1f an-~" ·1tm: ~ m nt or rec·ei\·inir order is made w1tlun the m:iet~ (flO) da~.: ar p_rc. •urn •cl prima facie to haY, h n made ,nth fraudulent mtcnt r1ot w,t hstanding pressur .   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  t1:  1977  Corporations are created by act of parliament or under the general acts relating to the incorporation of joint stock companies by letters patent. or under the "J\'anitoba Joint Stock Companies Act." Shareholders are limited in liability to the amount of their shares subscribed, and when paid in full they are discharged from any further liability. On application of one-fifth in value of the shareholders a judge may appoint an inspector to investigate the affairs and management of the company and to report to the judge thereon. Insolvent companies are wound up and assets distributed under the provisions of the Winding-Up Act, by the court of king's bench. In the case of incorporated banks, shareholders are liable for double the amount of the stock. Foreign corporations are required to register and obtain licenses from the provincial government, when they shall have the same powers and privileges in Manit,oba as if incorporated for the purposes mentioned in their acts or charters so far as they are within the jurisdiction and control of the legislature of Manitoba, and may then hold lands. Corporations doing bw·iness in the Province have to pay a tax as provided in the corporations taxation act, and must have an agent within the Province authorized under power of attorney to act in all legal proceedings on behalf of the corporation. Courts. The court of king's bench is the supreme court of Manitoba, and bas an original jurisdiction both at law and in equity. A court of appeal has been constituted to dispose of appeals from the court of king's bench and other courts in the Province. Its judges are ex-officio judges of the court of king's bench. There are four terms a year for the hearing of appeals from a single judge. County courts have jurisdiction up to $500 in contract and $500 in tort, except claims in the nature of seduction, breach of promise of marriage, and a few others which are confined exclu ively to the king's bench. An appeal lies from the county court to a single judge of the court of appeal, when the amount in dispute is not less than $20 and not more than $50: and to the full court of appeal when the amount in question exceeds the sum of $50. Deeds. Deeds of land. or of any interest in land, in this Province may be executed in the presence of a single witne s. For the purpose of registration, an affidavit must be made by the witness of the due execution by the grantor, which affidavit, if made within the Province, may be made before any commissioner for taking affidavits in the king's bench, the registrar or deputy registrar of the district in which the lands lie, a judge of any of the superior or county courts, or any justice of the peace; if made in any other province of the Dominion it may be made before a judge or prothonotary of any of the superior courts of law or equity, or any notary public certified under his official seal; if made in any state of the union, it may be made before the mayor of any city or corporate town and certified under the common ea! of such city or town corporate, any consul. or vice-consul of his majesty resident therein. or a judge of a court of record or a notary public, certified under his official seal. No witne.ss, or affidavit is necessary in cases of execution by a body corporate, provided the corporate seal is affi.-ed to the instrument and same signed by two of the principal officers. No acknowledgment is necessary if the due execution of the instrument is proven as ab0ve. It is not necessary for a wife to join in a conveyance by the husband of lands held in his th h~gt g~d~aF~o,~ ~id~ft~~e. e~i!~t~~ct d~.nig e\!~~:f~~iig:itYin (inter vivos) of the home or homestead (not exceeding 320 acres) of any married man shall be null and void unless made with the consent in writing of the wife. Such consent must be acknowledged before certain officers as et out in the "Dower Act." There are special provisions covering case of wife having lived apart from hu band for two years or more. A husband is given a similar interest in his wife's home or homestead. The Torrens System of land transfers has been introduced in the Province. but registration under the act is optional with the owners. ,Vben once brought under the operation of the act, however, all subsequent transfers or conveyances must be in the manner laid down and according to the forms prescribed by the statute. The Registrar General bas established a rule that no typewritten documents are to be received in any Land Titles Office in Manitoba. In very unusual cases he will give his flat allowing the re;{i. tration of such an instrnment. All deeds, conveyances and tran ·fers of land together with the affidavit of execution must be in accordance with the forms outlined by the Regi try Act, the Real Property Act and the Dower Act. otherwise same will not be accept d for registration.  1~\  [Ji?~~e rJ;hih~o~~~:alti1°0F!:Tt~~~: f~1e~r~:iw c~~ m!is?f: are out ide the jurisdiction of the court, by interrogatories or other-  wise. In case of a commission from a competent foreign court to take evidence, or examination in discovery of persons resident in :Manitoba for use in suits outside the Province for the court of king's bench may order the attendance of witnes:;es, production of document. and give directions in accordance with the tenor of comm.is ion. Di tribution of Intestate's Property. If an intestate die leaving a widow and child, or children. one-third of hi.s real and personal estate goes to his widow, and two-thirds to his child or children in equal shares and in case of decease of bis children to such as lawfully repre. ent t,hem. There is no distinction between males and females, or between children of half-blood or whole-blood, and posthumous children share equally with children born during the lifetime of the intestate. If no isc;ue, the whole estate. real and per. onal, goes to the widow. If issue and no widow, the whole to the issue. If no widow or issue. to his fat,her, if no widow, issue, or father to his mother, brothers and sisters, in equal shares; if no widow, i sue, father, brothers. or. isters to he mother; if no widow, i. ue, father or mother. to hi brother and sisters in equal. hare.'>: or if any of hie; brothers or isters be dead their children take the parent's share: all these failing to his next of kin, but in no case are representatives admitted among collaterals afLer brother · or sister • children. 'rhe separate property of a married woman dying intestate is to be distributed in the same manner as the property of a hu band dying intestat.e. Real estate vests in the per ·onal representatives since July 1, 1 5, in the same manner as personal estate. Divorce. The divorce laws in England as they existed on thP lf>th day of .July, 1870 ,ire in force in Manitoba and the juric;diction to administer th same is vested in lhP. 'ourl of 1 ing's Bench. Tlrn husband must h domiC'iled in Manitoba bcforo he or his wife can pr . ent a P •tition to th Court for a divorce. Executions issue from the king's bench in all cases as of course against the goods or the judgment debtor at any time within six years from the date of recovery of judgment, and bind the goods from the date of receipt by ·herifr as again ·t the dehtor or purchaser with notice or from date of seizure as against purchaser for value without not,ice, and must be renewed every two years. Land are bound by the registration of a cert.iflcate of judgment in the regic;tration division where the lands are situated, which must be renewed every two year.. Executions from the county court remain in force for twelve months, and bind goods only, but may be renewed and may be exchanged for a king's bench execution after being returned as uncollectable by the county court bailiff. All executions in the hands of the sheriff or a county court bailiff at the date of seizure, or which are received by him within three months after such seizure, share ratably in the dis~ tril>ution of t,he amount realized. All share and dividends of stockholders in any incorporated bank or other company in Manitoba having transferable joint stock and the interest of a mortgagee in any property mortgaged to him may be attach d. eized and sold.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1978  BANKING AND COMMERCIAL LAWS-MANITOBA  Exemptions. The following personal !),nd real property ar~ free from seizure under any writ of execution issued by any c-o~rt m the Province: 1. Beds and bedding in the common use of the Judgment debtor and his family, and also household furniture. and effec~ not exceeding in value $500. 2. The necessary and ordmary clotbmg of debtor and his family. 3. Twelve volumes of books, books of a professional man, one axe, one saw, one gun, six tz:aps. 4 .. The necessary food, if in possession of the debtor at the time of seizure. for himself and family for eleven months. 5. Three horses, mules, or oxen, six cows, ten sheep, ten pigs, _fifty fowls, and feed for the same during eleven months. The exemption as to horses over the age of four years shall apply only in case they are used by th:e judgment debtor in earning his living. 6. . The to<?ls, agri<:ultural rmpleme?ts, and necessarie used by debtor m practice of his_ trade, profe~ion, or occupation to the value of 500. 7. The articles and furmture necessary to performance of religious seryices. 8 .. The land. upon which debtor and his family actually reside, or which he cultivates or uses, provided the same does not exceed 160 acres, if outside the limits of any city or town. 9. The houses, stables, barns, and fences on debtor's farm, subject as aforesaid. 10. All necessary e~ds or roots for the cultivation of eighty acres. 11. The actual re ·1dence of any person, other than a farmer, in any city or town, provided the same does not exceed in value $1,500; if it exceed the above value, before it can be sold, the said amount must be paid or secured to.the debtor. The above exemptions only apply to debts contracted smce May 2 1885. All debts due or accruing due prior to that date are governed by the exemption act in force at the time such debts were contracted, and which was not as liberal to the debt9r as the pz:ese~t law. Any agreement by debtor to abandon or waive exemptJOJ?, 1s null and void. Partnership firm can claim only one exei~pt1on. Remedy against real property is n~w more generally by z:eg1stered judgments. under which no proceedmgs may_ ~e take1:1 aga1Dst 8, 9, 11. so long as the land is affected by the cond1t1ons recited. Garnishment. All debts, obligations, and liabilities due, o~ing. or accruing due to a debtor may be attached to answer the claim of his creditor. Debts may be garnished both before and after judgment. In the court of king's bench a garnishing order can not be obtained til an action has been commenced; in the county court the garnishee proceedings and the action may be commenced together. Any debts due to a mechanic. laborer, servant. clerk or employee for wages or salary shall be exempt to the extent of $40 per month, or if le than one month be due, at the rate of $40 a month. Garnishee must reside within this Province. Interest. The legal rate is 5 per cent. Parties may contract for any rate, except banks, which are prohibited from chargi!Ig more than 7 per cent. Money lenders cannot contract for a higher rate of interest than 12 per cent, on lo!tns of $500.00 and under. Interest is computed on judgments from date of entry at 5 per cent per annum. Rests not allowed unless there is a contract in writing. Accounts bear interest at legal rate from date of demand of interest or notice that it will be charged. Judgments remain in force ten yean;. Suit can be brought upon foreign judgment, but defendant can set up any defense which could have been set up in the foreign court to the original cause of action, even though he was personally erved with process of the foreign court and appeared and pleaded thereto. . o action or suit can be ~rought upon a judgment recovered upon a Judgment. ( ee Execution .) Lien . Parties erecting or repairing building or furnishing material for building have a lien on such land and building to the value of their work or material provided a statement of the ciaim verified by affidavit is flied in local registry office within thirty days of completion of work or of furnishing of material. Proceedings must be taken in the county court to enforce lien within ninety days from completion of work or fumishing of material otherwise lien lapses. Proceedings are governed by the mechanics' and wage earners' liens act, which is practically the ame as in Ontario. Lien Notes and Conditional Sale . There are no provisions for registration of Lien ote or Conditiona.t ale greement in Manitoba. Lhnitatlon of Suits on contract. not under seal, written or parol, within six years after cause of action accruect. Upon specialtie , within twenty years after cause of action accrued. If party entitled to sue is under disability or beyond seas, then within six or twenty years from date of removal of disability, as the case may be. Recovery of real estate. t,en years. Case taken out of statute, by part payment or acknowledgment in writing. larried Women. ince 14th day of May, 1 75, retain all property owned by them at date of marriage, or subsequently acquired for their own separate use, free kom the debt or control of husband, but such property is liable for their own separate debt and contracts, and may be sold to satisfy same. In every respect, wife is considered separate from her husband; she may carry on business in her own name, and deal with her property, and sue and be sued in the same manner as if she were unmarried. Her property i not liable for any of the ordinary or nece. ary expenses of the family, unle · specially charged by her. A man may convey land to his wife, and vice versa, without the intervention of a trustee. ( ee "Deeds.") To action for po ession, foreclo ure or ale of 1\-foratorium Act. any land under any agreement or encumbrance and no action on any covenant for payment contained therein shall be talcen until some interest, taxe or insurance premium is over due for one year. Interest taxes and insurance are always collectable to extent of rental o action shall be taken on any vaiue of the property in question. certificate of Judgment to realize against land until one year after date of registration of certificate of judgment unle. recovered for debt . B. The Moratorium does not incurred after August I, 1914. apply to Agreements, lVIortgages or encumbrances made or entered into after July 31, 1914. l\fortgages are executed in t!Je same _manner as de~ds and. ar? governed by same laws as to registration m the local registry oillces, and as to priorities. "Dower Act" applies after eptember 1, 191 (See "Deeds.") Tacking prohibited by statute. Foreclo ure or . ale proceedino-s taken in the king' bench. where land is under (?Id ystem of Titles and through the Land Titles Office where land 1 · under the Torrens . ·ystem, there is no redemption after final order for foreclosure or sale. Chattel mortgages and bills of sale must be filed within twenty days from the date thereof, with the clerk of the ~ounty court of the judicial division within which the goods are situate, before they have any effect as against execution creditors, or purchasers for value without notice. or subsequent chattel mor~11;ar.:es. They require to be renewed within thirty days before the exl?1rat10n of two years from the date of filing_. by filing a st_atement verified by the affidavit of the mortgagee or his agent, showmg thE: amount due upon the mortgage and exhibiting his intere t therein; unle s so renewed they are absolutely void as against the creditor~ of the mortgagor. Chattel mortgages, etc .. on rolling stock, etc .• of railroads are registered only in office of provincial secretary. Notes and Bills of Exchange. Bills of exchange, promisso~y notes. and checks are the ordinary forms or commercial paper u. ed m this Province. It i. not nece. sary that notes or bills of exchan~e be made payable at a hank or other particular place within the J>rovrnce. Three days of grace are always all°',ed exc-ept when J~ayabl~ on demand. In case a bill or note falls due on a bank holiday (1. e .. Sunday _ ew Year's Day, Christmas Day, Good Friday. Easter. Ionday, Arbor Day, 2-1th .May, 1st .July, Labor Day, the J(i!11fs l~irthday'. and Thank giving Day) it must be pre ·ented on the followmg day.  -----------------------  when properly presented and pro.tested. and notice gi~en, the lndorsers are liable; otherwise they are relieved. The production of the P:Otest In any court within the Province proves presentmen~ and notic1; of dishonor without further evidence. No stamp duty 1s now required on commercial paper within the Dominion of Canada except where discounted with or drawn on a Bank. Probate Law. 'fhe Province has four surrogate courts: of the eastern judicial district, of the central judicial district, of the western judicial district. and of southern Manitoba. The seats of the c_ourts are Winnipeg Portage la Prairie, Brandon, and Morden, respectively. Grants of prohate made in any other provicne in Cana'!a, the :United Kingdom or any British province may b~ z:e-sea!ed in this Pro~mce _by producing the grant of probate or admimstrat1on, or exemph~cat1on thereof, purporting to be under the seal of the c<;>urt by which the same bas been granted, and the nece ary affidavits. If probate or administration has been granted in any other country than Canada, the United Kingdom or a British province, ancillary probate or administration must be taken out. Ancillary probate or admin_istration may be obtained by producing thE: foreign pro~ate or a<;1mmistration or exemplification thereof (a certified or notarial copy 1s not sufficient), purporting to be under the seal of the ~ourt by which the same has been granted, and the necessary affi~avits. Executors _are not required to give ecurity, but an admimstrator must furrush, usually, two securitie • each in double the value of the e tate. ~ere an applicant can not find sureties he may app_ly to have the offiical administrator or a trust company, such as Nat10nal Trust Company, Limited, appointed. Sale of Merchandise in Bulk. The Bulk Sales Act, Chapter 23 Revised Statutes of Manitoba, 1913 prohibits the sale of goods, wares or merchandise in bulk for cash or on credit unless 60 per cent in number and in amount of the creditor of the vendor consent to the same in ~itlng. Any sale made without such consent is under this Act . fraudulent and void against the creditors of the vendor. There is, however, a provision that in the event of the written consent not being obtained, the purchaser can p~y rhe !Doney over the Official Assignee or to a Trust Company for distr1but1on pro rata amongst the creditors of the vendor. The Act applies to sales by traders and merchants, but the e classes are given a very wide interpretation by the Act and include commission merchants and manufacturers. Suit . ( ee Actions, Courts.) There are two superior courts, the court of appeal and the court of king's bench, wbic~ have all the ~owers possessed by the various courts of law and equity at West~lllS~er, together with the probate and divorce, admiralty and eccles1ast1cal courts of England, as they stood on the 15th day of July, 1870, including power to grant injunctions. All suits must be commenced by statement of claim entitled in and under the seal of the court from which issued, and such statement must be served on defendants witlµn six months from date. Provi ·ion is made for substitutional service of process by publication or otherwise. Taxes. Lands may be sold for taxes. when in arrears for two years, or upward by the treasurer of the municipality within which the lands lie and may be redeemed at any time within two years from date of sales upon payment of the sum paid by purchase;-. with !O per cent intere t if redeemed within one year, or 20 per cent mterest 1f redeemed within two years from date of sale. If not so redeemed purchaser may within one year from the expiry of the said two years apply to the land titles office for absolute title. but owner has a further ix months from date of service of notice of such application upon him to redeem through the district registrar. Trust Companie . The e may do business in ~1anitoba subject to certain restrictions and supervision by the government. They are much favored on that account where the courts desire to safeguard the interests of estates, and recourse is now generally had to them in all cases where their service. can be availed of. Companies now doing busine,. as such in .Manitoba are the Traders ·ational, the Royal, the Toronto General. the tandard, the ~ ·orthern. The War Relief Act. During the continuance of the war it shal1 not be lawful to bring any action or take any proceedings in or out of Court against a Volunteer who has enlisted or shall enlist in Canada or has left or shall leave Canada to join the Army of Hi Majesty or any of His Allies or against the wife or dependent member of the family of any such person, etc. This Act does not apply to debts for nece sarie incurred after Act came into force, or to contract· made after the party became entitled to the benefit of the Act. The Act now extends to tho. e drafted under ":Military ervice Act 1917." 'l'he relief provided by the ct is to exi.-t until ::\lay 31st, 1922. , Where valuable property i. charged by mortgage in certain ca ·es rents over . 900.00 or . 2,000.00 per year go to mortgagee. The running of all statutes of limitations of actions or proceedings in favor" Volunteers" is su1-1pended from August 1 t, l!Jl4 till May 31st, 1922. \Vllls. Every per on over the age of 21 years, of sound mind, may dispose of his real and per ·onal estate by will. 'ubsequent marriage married woman may dispo e of her operates as a revocation. separate estate by will without the consent of her husband. and may alter or revoke the ame in like manner as if she were a femme sole. Her will must be executed in like manner as other wills. E,·ery will must be in wTiting, and every ·will other than a holograph will must be executed and attested a follows: 1. It must be sub. cribed at the end thereof by the testator or by some per on in bis pre. ence and by his direction. 2. The ub ·cription mu t be made or acknowledged by tho te tat,or in the pre -~co of two attesting witnesses present at the same time. 3. The said witne · ·e shall attest and subscribe the will in the presence of the testator, but no form of attestat,ion . hall be neces.·ary. A holograph will wholly \\Titten and igned by the testauch a will is subject to no partor himself is valid in this Province. ticular form and requires no atte. ting witne ·s or witnes: es. ADY soldier includin" a minor being in actual military service or any mariner or seaman, being at ·ea, may dispo ·e of bis personal estate by parol, according to the common law. Ileque.·ts to a witness or the wife or husband of a witne. s are ab. olutely null and void. although such person is competent to prove the will.  I  BANKING AND COMMERCIAL LAWS-NEW BRUNSWICK  SYNOPSIS OF  THE LAWS OF NEW BRUNSWICK RELATING TO  BANKING AND COMMERCIAL USAGES Revised by TEED & TEED, Barristers, St. John, (See Card in Attorneys' List.)  . B.  Ab conding Debtor . If any per on severally, or person jointly Indebted in the sum of $50.00 depart from or keep concealed within the Province, with the intent to defraud creditors, a creditor may make affidavit of the departure or concealment, which must be verified by affidavit of two witn e , of whom the creditor may be one, stating reason for their belief of such departure or concealme?t, The Judge may thereon i ue a warrant to one or more sheriffs directing them to seize all thee tate, real and personal of such party. Such warrant shall have priority over all other proce es not actu~lly executed. If the debtor does not return within sixty days and satisfy his creditors, a meeting of the creditors,. is called, and the P.ropei:ty may be sold and distributed to the creditors, who prove their claim by affldavit. Acknowledgments. Before the regi try of any deed, conveyance, mortgage certificate of dic;charge or mortgage, assurance, lease, or power of attorney or other instrument afl'ecting any interest in or title to land, the execution of the same shall either be acknowledged bf ~he person executing the ame or be proved by the oath of a sub cribmg Witne s. If such acknowledgment is to be taken or made out _of the ~ovince, it may be taken or made before. Any not~y publ!c certified under his hand and official eal; the mayor or chief _mag1Strate of any city, borough, municipality or to,wn corporate, cert.1~ed !1-llder the common or corporate eal of such city, borough, mu!11c1pahty or ~own corporate, or tbe eal of such ~ayor or chief mag_1 trate; any Judge of the high court of Great Britam or Ireland: any J~dg~ or l9rd ~f ses ion in cotland; and judge of a court .of upi:ei:ne Ju.r1Sd1ct1on in any British colony or dependency; any Br1t1 h m1mstor, ambas. ador consul, vice-consul, acting-con ul, pro-co~ul· or consular agent of His Majesty exerci •ing functions in any foreign place; the ~overnor of any state; the handwriting and certificate of any such Judge ?r lord of session being authenticated under the seal of a notary pt!,bhc, and the taking of any such a.c-knowledgment before such mmister, amba · ador, consul, vice-consul, acting;-eonsul. pr~onsul, consular agent or governor being certified re ·pectively under his hand and eal of office. If the proof or the execution of such in trument be ta.k~n out of the Province the same , hall be taken before any comuussioner for taking affidavit and admini tering oaths under chapter 3.6 of the consolidated statutes; any notary public,. certified under _his hand and official sea.I; the mayor or ·hief mag1Strate of any city, borough, municipality, or town corporate, un_der the eal. of. such D?-ayor or chief magi.'trate; any judge of the high co.urt _of J~t1ce o~ Great Britain or Ireland· any judge or lord of s IO?. m cotla.nd • any judge of a court of stipreme jurisdiction jn any British colon)'.'. or dependency· the handwriting of any such Judge or .lord of . e~1_on being authenticated under the seal of a notar_Y pubhc; any Bntc h m.inister, ambassador, consul, vice-co_n~ul, l!-ctmg-c~msu.1. pro-con.. ul, or consular agent of His l\lajesty exerc1 mg h_IS r1:1nct1on~ JD any formgn Place; the governor of the state; uch proof bemg certified under ~be hand and seal of office of such minister, and ambassador, consul, v1ce. consul, acting-consul. pro-consul, con ula.r agent, or governor. Admini tration of Estate . In case of any dece.ased per ·on. bemg at the time or bis death an inhabitan~ of any c_ounty w tbe Pr~, mco or not being an inhabitant of the Provmce leavmg assets in an:1 county thereof the judge of probat-es of such county may take PfOba.~e ?r grant administration and shall in either case have. exc 1U!' 1}·e J~m,diction over all the estate of . uch deceased person m the 1 r<?vm.ce. Letters testamentary or of administratio~ are granted on application to the judge by petition of the party entitled by 1!3-,y or <?ne o~r1or! or the creditors of the decea ed. Probate or adm11ustrat10n .' b 1;10 be granted (exce t it be made to appear that the estate 1 emg Wasted, or for ot~er good reason) until after the lap. ·e of t n day} after the deat,h of deceased. caveats mw t declare the. mterest ~ the cavea.tor and give bis addre. , or the addr .· of !us att(?rlle~. B~fore administration is granted a bond i t!),ken from the a.ppllcants With Lwo sureti to the satisfaction of the Judge, the pcnafY. 0.f_tt be bond being double the value of the per ·onal estate. •"'- 11 ac num rator may, instead of obtaining two sureties, give. bond of gu:t3:r~ee company licensed to do business in the ProV1nce. . 11 · s w er time is allowed· by the judge it is necessary to file an ~nv.entO:Y of the estate within ono month and an account of the a.d~mistrat\on mu~t~ ~aie \~v:ir be .rendered within eighteen months; _Where thbee b . f . re ·1~e out of the Province a comm!S:l1on m!lY o t&tunony If the ersona.l estate is ll1Su1Iic1ent tn P~l tho .de the deceas·ed the exfcutor may within ten years fi:om his appomtmen~, or a creditor after one year and before expiration of the ten ;:ea1 I obtain a license or order from the judge for the a!e of be regi ~- 6ite • or any Part thereof. ,vhere an infant's e tate <;toe not exce . "· 0 ~: judge of t,_he probate may ap(?oi_nt a11 gut!r~ar~[ Jet~e ~~rs~~~~~ d ate of the infant. Claims agamst a e. d m d with the exe utor f ht h . ecea.sed must be certified by afllda.v1t. an or administrator and no debt shall be paid or action broug t ere or Until this has been dono. (, ee uccesi ion Duty.) t f the Pro •ince before a.ny per• Affld avlts. Affidavit sworn ou. 0 -""d ·ts in and for the courts · 1 son appointed commi · ioner for taking= avi 1 ill <;1a s in the Province of cw Brunswick or before any of the sfrfapo e rovmce and persons authorized to take acknowledgment.£! out o dgments) a.re valid in all ~a.1~e~u~.-~ ~ : :i!:~~i:c~uld A~knowl (see b e vahd if sworn before a competent Ou,C •   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  f  hJ~e,~~  1979  Aliens. Real and personal property of any description, except British ships, may he held and tran mitted by a.liens as by subject . May be naturalized after residence of three years. Arrest. In the supreme and county courts. Any person not having privilege may be arrested and held to ball or committed to prison on mesne process in any cause of action within the jurisdiction of the supreme or county courts. Where the cause of action is a debt certain an affidavit must first be made of the deht and that the arrest is not made for the purpose of vexing and harassing the debtor, or if for other than a debt certain a judge's order must be obtained on an affidavit setting out the cau e of action. Where the affidavit is made without the Province it may be sworn before any per on authorized to take affidavit for use in this Province in the country or place in which such affidavit is made. After judgment defendant making default may be committed to prison, for a term not exceeding one year by order of tho court or judge, if it be shown that defendant has the means or obtained credit under fal,;e pretense . or has fraudulently disposed of bis property, or is a.bout to leave the Province. If a defendant arrested on mesne process at a bearing before a commissioner of which notice bas previously been given to the plaintiff discloses the actual state of his affairs on oath and the commissioner is satisfied that the disclosure is a full one and that the defendant has not transferred any property intending to defraud the plaintiff, or since his arrest given any preference to any other creditor, the defendant may be discharged. In the city court of Saint John and in magistrates' courts arrest may be had in the first instance for debt where the amount is not less than $2. 00 and does not exceed S80, and after judgment defendant may be again arrested on execution, but if he has no property and there has been no fraud or preference he may be discharged by commi ione1· on bearing after notice. In case judgment is under $400 and it is shown t,hat debtor is in position to pay by installmen the judge may, in his discretion, order payment by installments. Disobedience of the order renders debtor liable to attachments as for contempt of court. (See Courts.) Ilankruptc . An Act relating to Bankruptcy which affect the whole of Canada was adopted by the Parliament of Canada effective from the 1st of July, A. D. 1920. A bankruptcy may be voluntary or involuntary; a voluntary one is made by an assignment to an authorized trustee, an involuntary on may be brought ahout by a er ditor or creditors having claim 01· claims aggregating i>00.00 petitioning the Court alleging that the debtor bas committed an act of bankruptcy within six months before the presellta.tion of the petition. An act of Bankruptcy may consist of making an ru signment for the benefit of er ditors, making a fraudulent conveyance of prop rty, absconding or having an execution against, him unsatisfied for a specified timP or exhibiting a statement showing insolvency or making a bulk sale of his goods without complying with the Bulk ales Act. o farmor or wage earner may be forced into bankruptcy nor may any per on be f01•1·cd into bankruptcy by reason of any debt which was contra tcd befor the fl.1 ·t of Jwy 1920. On the p tition being presented if t.he petitioner proves the debt owing to him and proves th a t of bankruptcy the Court may make an order declaring the debtor a bankrupt. Any debtor no matt.er what his occupation nor when his debts wero contracted may voluntarily become a bankrupt bv making an assignment to a trust e in bankruptcy. The trustee in l ankruptcy eith •r in t·ase an ord r or Ilankrupt y is made or iu case the debtor vo1tmtarily assigns to him, takes over a11 the property of the bankrupt and disposes of it, and pays the creditors pro rata, except tho ·e entitled to security which are not void by the Act and except three months wage: to the employ es who rank pl'ior to other er ditor . On the bankruptcy being declared a.II executions, garnishments attachments general assignment· of book debts and various mentioned in the Act a.r void as against th other 'transactions trustee in bankrupt •y. After the order for bankruptcy has been made the ourt may t-;anction a composition or extension agrreoment approved of by the majority of the creditors. The bankrupt may under certain circumstance., having complied with th Act, apply for and obtain a discharge which reloa.ses him from all his obligations except certain limited kinds of claims. Chattel Mortgage and Bills of Sale. Every mortgage or conveyance of goods and chattels which is not accompanied by an immediate delivery and an actual and continued change of possession of the property mortgaged is void as against sub eq_uent pur<?ha ers or creditors, unle the same or a true copy thereof 1s fl.led with the registrar in the county in which the maker resides, or if non-resident of the Province in the county in which the thing are, within thirty days from the execution thereof, with an allldavit of the subscribing witness of the due execution and an affidavit of the mortgagee or his a.gent that the mortgagor is justly and truly indehted to the mortgagee in the swn mentioned in the mortgage, and that it was executed in good faith and for the express purpose of securing payment and not for the purpose of protecting the property mentioned therein against the creditors of the mortgagor, or of preventing them from obtaining payment of any claim against him. Future advances may be secured where agreement therefor is recited in the mortgage. Every sale of goods and chattels not accompanied by an immediate de ivery and followed by an actual and continued change of po se ion, must be in writing and accompanied by an affidavit of a subscribing witness thereto of the due execution and an affidavit of the bargainee or agent authorized in writing to take the conveyance, a. copy of which authority shall be attached to the conveyance that the sale is bona fide and for good consideration, and not for the purpose of holding or enabling the bargainee to hold the goods against the creditor· of the ba.rgainori and the conveyance must be registered as in the case of a chatte mortgage. Conditional ale of Chattel . Receipt notes, hire receipts, and orders for chattels given by bailee of chattels wh re the condition of the bailment is such that the po ession pa;· ·e · without ownership being acquired until payment of the purchru e money, shall only be valid a.gain. t sub ·equent purchasers for value without notice in good faith when it is evidenced in writing signed by the bailee or his agent, and a copy of such writing is filed with the r gistrar of deeds of the county in which the bailee re. ides, within fifteen days from the execution of the receipt note or other instrumem; evidencing the bailment. The head office within the Province of any incorporated company, whether incorporated under the laws of the Province or otherwise, shall, within the provisions of thi. act, be deemed the domicile or place of residence or the company within the Province. Corporation . Three or more persons may obtain letters patent for corporation for 01·dinary business purpo.·es by petition to the lieutenant governor on payment of a mall foe regulated by amount of capital stock Claims galnst E tates of Deceased Per ons. ( ee Admlnistration of Estates.) Courts. Magistrates courts and other like inferior courts, including city courts, have jul'iscliction in actions for tort to real or personal property, and in action· of debt for . mall amount., the highest juris0. The county court bas diction in tort being 32 and in debt jurisclictio? t~ t~e .am<?unt of $200 in tort and $400 in debt. , upreme court has 3ur1sd1ct1on m a.II matter , as well as concurrent jurisdiction with other courts. Hecurity for cost may be required in all courts where plaintiff resid s out of the Province. Day of Gra '· Where a bill or note is not payable on demand three day of grace are allowed. If the last day is non-juridical the next business day is allowed.  all   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  BANKING AND COMMERCIAL LAWS-NOVA SCOTIA  1980  Descent and Distribution or Property. Real estate of an Intestate is divided equally to and amongst his children or their rnpresentatives, or, if no children, then to the next of kindred and their representatives, including those of the half-blood and their representatives; but children advanced by settlement or portions not equal to the other shares shall have so much of the surplusage as shall make the estate of all equal. reserving the widow's right of dower. TbP surplusage of the personal estate of the intestate shall be di ·tributed by the judge of probate in manner following, that is to say, one-third of it to the widow, and the residue in equal portions to and amongst bis children and such persons as legally represent them. Any child receiving any advancement of real estate in the life time of the intestate in excess of his share of the real estate shall have the value of such excess taken into account in the distribution of the personalty. If there be no children nor any legal representatives of them, ono moiety of suc-h surplusage shall be allowed to the widow, and the residue be distributed equally amongst the next of kindred of the intestate in equal degree, and tho e who legally represent them, but there shall be no representation among collaterals after the brothers' and sisters ' children; and if there be no widow, all such surplusage shall be distributed equally among t the children , and if no child, to the next of kindred, in equ;i.l degree, of the intestate and their representatives; and if after the death of the father any of his children shall die intestate. without wife or children in the lifetime of the mother, every brother and si ter and their repre ontatives shall have equal hare with her. (See Married Women.) Dower. Besides common right of dower the widow is entitled in equity to dower out of any lands to which her husband was beneficially entitled at the time of his death. whether such interest be wholly equitable or partly legal and partly equitable, and where the husbanrl had right of entry or action in any lands in which his widow would have bad dower had he recovered possession thereof, she shall be entitled to dower out of the same if such dower be sued within the period within which such right of action or entry may be enforced. Executions. In the supreme and county courts execution may issue upon signing final judgment and bind property, real and personal, from the time it is delivered to the sherifl' to be executed. In inferior Courts may issue against goods and chattels or the body. Memorials of judgment duly registered in the coimty registry of deeds bind any lands of defendant or his interest therein for five years when they may be renewed with like effect. (See Assignments in Trust.) Exemptions. Wearing apparel, bedding, kitchen utensils, and tools of trade or calling to the value of $100 are exempt from levy and sale under execution. Garnishee. A judgment creditor for an amount exceeding $80 where the debt exclusive of costs, exceeds $40. may garni. bee debts due and owing judgment debtor, except wages not exceeding $20. Holidays. In all matters relating to bilL'l of exchange, notes , etc,. undays, New Years', Good t,he following aro the legal holidays: Friday, Easter l\Jonday, the 24th day of May, Chri.·tmas Day, the birthday (or tho day fixed by proclamation for the celebration of the birthday) of the regining sovereign. or if such birthday is Sunday then the following day, the first day of .July (Dominion Day), and if that is a Runday then the second day of Jtuy, and any day appointert as a holiday for Canada hy proclamation, and the day next following New Year's Day and C bri ·tma. Day when those days r spectively fall on Sunday. Interest. Legal rate 5 per cent. Judgments in the supreme and county court bind lands of the debtor from the time execution is delivered to the sheriff to be executed. (See Executions and As ignments in Trust.) Liens. Mechanics, machinists, builders, laborers, and all other persons doing work upon or furnishing materials to be used in the construction, alteration or repair of any building, or erect.ion or erecting, furni. hing or placing any machinery at any time in, upon or in connection with any building, erection or mine, have a lien for the price of the work, machinery or materials upon the building or mine and the lands occupied thereby to the extent of the interest of the employer or purchaseL" therein. The lien of wage earners is for wages not exceeding thirty days or a balance equal to wages for thirty days. A claim for lien specifying particularly tho name and residence or claimant and employer or purchaser, the time at which the work was done, the nature of the work and materials, description of the property and period of credit, if any, verified by affidavit,, may be registered. Claim for wages must be regi tered within thirty clays after last day of labor and other claims may be regi tered before the commencement or during the progress of the work or within thirty days from completion thereof, or from supplying or placing machinery. Registered Uens good for only ninety days, unless proceedings are take:µ t,o realize within that time, in which case lien may be continued. Limitation . Actions on judgment of courts of record, recognizance bonds or other specialtie., or for recovery of real property, must be brought within twenty year-;. In assault, battery, wounding, imprisonment, or words. within two years. All other (?ersonal actions ~e;"ion against the 'rown mu ·t be :'iit~ny!~~s Yt~~ar  ttti: J~  0  l\,farrled "\Vo1nen. The married woman's property act provides that a married woman shall be capable of acquiring, holding, and disposing, by will or otherwise, of any real or per onal property as her separate property in the ame manner as if she were a femme sole. without the inton ention of a trustee, and that she may contract and sue and be sued as a femme sole. The separate per onal property of a married woman, dying intestate, goes to her husband to the exclusion of the next of kin if no children, but if she leave chiluren, her surviving, by a former husband. the surviving husband is entitled to one-third and her children. including those by the sur,iving husband, are entitled to the remaining two-third, . If there are children by the surviving husband only, the husband is entitled to one-half and the children to the other ltalf. Mortgages. ,Mortgages mu t be proved or acknowledg d in the same manner as deeds. ( 'ee Acknowledgments.) And to be efl'ectual against ct·editors ancl bona-fide purchaser must be recorded. Are foreclosed by proceedings in chancery or under a power of sale, if any therein. May be discharged by a certifkate of the satisfaction of the mortgagee, his representatives or assigns;, acl nowledged or. J?ro,:ed and duly regi tered; 01· the mortgagee may acknowledge sat,1sfact1on on the margin of the registry book against t,he regL try of the mortgage in the presence of the registrar or his deputy. Note. and Bills of Exchange governed by statute of the Domin1  t~!  }~~~fof!f.;tt~e;mbo~ii~g o1f%~t~~~~ ;1':it~<ldt~e;~~c~e~~i~hi~h note on its face purport to have been made i · sufficient. Protest. Protest i required in case of non-acceptance or non-payment of a foreign bill appearing on its face to be such. In case of inland bill subject to due notice of dishonor, it is not necessary to note or prote t. Sale of Good . Law relating to this subject codified by tature called Sale of Goods Act, largely declaratory of English Common Law and Commercial practice and following very closely the English Sale of Goods Act.  Succession Duties Act. A succession duty is levied by the Province upon certain estates of deceased persons. The act does not apply to estates which do not exceed $5,000, or any property given for religious. charitable or educational purposes, to be carried out in New Brunswick, or property going to father, mother, husband, wife, child, grandchild. brother. sister, daughter-in-law or son-in-law, where the estate does not exceed 25,000, or to any legacy to any one person not exceeding $200, Save as above estates are ubject to a duty as follows: (1) Estate above $25,000, passing to father, mother, husband, wife, child, son-in-law or daughter-in-law, 1.25 on each $100 up to $50,000, and 2.50 on each $100 of excess up to $100,000 with an increasing tax on larger estates up to 10 per cent on estates of over $1,000,000. (2) Where more than $10,000,  f;t~!~ ~~ ~ir::r~~r togr:n~~~rero~rsi~;~:ro:~~~  ~~;~!~dan1xg1P! brother or sister, or to a brother or sister of the father or mother of the deceased, or to any descendant of such last mentioned brother or sister, or to a grandchild or other descendant of the deceased, except a son or daughter, 5 per cent, increasing in large estates to 12 per cent. Where the estate exceeds $5,000, so much as passes to any person in any other degree of collateral consanguinity than above mentioned, or to a stranger, 10 per cent, increasing in large estates to 20 per cent. If the beneficiary resides out of the Province, the amount of duty is double the amounts above mentioned. Where deceased had life insurance. whether payable to himself or any other person, same shall be deemed part of his estate for the purpose of this act. o foreign executor or administrator shall assign or transfer any debentures, bonds, stocks, or shares of any bank or other corporation. whatsoever, having its head office in New Brunswick standing in the name of the deceased person, or in trust for him, which are subject to succession duty until such duty is paid or until security is ~iven 10 0 t;a~~1~r;1 a~y t~;b!;tu~~~ t~~d~~c~o~~~ o./ s1°ife~r~~i~a~ 1~nthi~ section shall be liable for such duty. tock is deemed personal Transfer of Corporation Stock. estate. No share is transferable until all calls due have been fully paid or where the bolder is indebted to the company if the directors hares of det:eased member may be transferred hy bis repobject. re. entative. No tran. fer unless made under e.,ecution ot· decree of court is valid until entry upon the tran fer book of the company. "\Vage Earners. Prefer nee to the extent of three months' wages is giYen to perso1.s in the employment of the debtor at the time of or within one month prior to : (1) 'W inding up under Provincial act, 'eizure under (2) Decease, (a) 'eizuro under execution. ( 4) absconding debtors' act. (.'5) Foreclosure of railway tru.5t mortgage. (See al ·o Lions and Bankruptcy. ) "\Vills must be in writing, signed at the foot or end thereof by the testator or some other person in his presence by his direction, and such signature must be made or acknowledged in the pre ence of two witnesses present at the same time. who shall attest and ubscribe o form of attesin the presence of the testator and of each other. tation is necc , ary. "\\'orkmen's Con1pl"nsation. If personal injury is caused to a workman by accid •nt arisinfi!; out of and in the t·our,'e of the employment, a Pro,•iJ1cial Board call<'cl the \Yorkmen' , <'ompcnsation Board provide and pay compensation, in c-ase or injury causing death whet'<' there arc parties in ( anacta dependent on the earnings. If incapacitated scale of compt•n!-al ion L'> calculated 011 the remuneration thl' workman wa, receiving at the time of injury equal to r,:; per cont of tho diminution in his arning capacity. If total disability ensues not less than six clollars per week nor more than :--u'i 7,5 p r month.  t  SYNOPSIS OF  THE LAWS OF NOV A SCOTIA RELATLrG TO  BANKING AND COMMERCIAL USAGES Prepared and Revised by ALFRED \VHITMA ', EsQ., Barrister, Halifax. (See Card in Attorneys' List.) Account . An account does not carry inter st except by pccial contract in writing or cu.-,tom of trade. Acknowled~en ts. ( 'ee Deed·.) Action . In the supreme and county courts actions are regulated by "The Judicature Act." whi<'h is practically the same as the English judicature act. The judges have made rules thereunder practicallY the same as the gnghsh rules of practice and procedure. Plaintiff resident, without the Province may be compPlled to give ·ecurity for costs, either by payment into courL, or by bond appro\·ed by defendant, or a judge. AdminL tration or Estates. Letters of administration are granted by tbe probate courts of ,\ hich there i one for each county of the pro,·ince. Administration shall be granted to . ome one or more of the person, hereinafter mentioned, and they shall respectively be entitled thereto in tho following order: 1. The widow or next of lciDed, or both, as the judge of prubate may think flt. 2. If the deceas was a married woman. to her hu,·hand except in certain specified cases. 3. If the persons o entitled as above do not take out admini ·tratioU , ·it.hin ten day>- after the return day of the citation. the judge of probate may commit it to one or more of the principal creditors. U tbe decea, ed leayes no I nown lh ing relative in the pro\·ince, or any wbo ran he readily communical >d with, admini. tration may he granted to the Attorney-General.  BANKING AND COMMERCIAL LAWS-NOV A SCOTIA Affidavits. Affidavits may he sworn abroad for use in ova _cotia, before any judge of a court of record. British consul, a vice-consul exercising his functions, notary public, certified under his hand and official seal, mayor or chief magistrate of any incorporated town, or a commissioner authorized to administer oaths out of the Pr vinco. duly appointed by the government of the Province. Allens may take, hold, convey, and transmit real estate. and trust companies or corporations having a legal statu in any foreign state 1nay hold real estate by way of mortgage or otherwise in furtherance of any trust they may assume in connection with any enterprise or undertaking within the prov:ince of Nova cotia. with full power to uch companies of corporations to convey and transfer the ame.  1~~i;~r:~~~c!;~ct'~~ig~df;~r1t~! for~~iA~!tlg: ~d~~~~~t~~i~J~~ supreme court: A submission, unless a contrary intention is expr~ssecl therein, is irrevocable, except by leave of the :supreme cow·t or a Judge thereof: The report of an official or special referee may he adopted wholly or part,ially by the court or a judge. Arrest before Fb1al Judgment. Where plaintiff, by affidavit, Proves to the satisfaction of a judge, or commi<;sioner, that plaintiff ~as. a good cause of action to an amount which brings action within the Jurisdiction of county, or supreme com·t. as the case may be, and that dctel?onent has probable cause for believing, and doe believe, that the . e 1 endant unless he is arrested is about to leave the Province, the Jd~dge _without inquiring into the ground of belief. will make an order irectmg that such defendant be arrested and held to bail. Arrest under Judgment. Under" The Collection Act" a, creditor may obtain a warrant for the arre t and imprisonment of the debtor, upon ~n application to an examiner, supported by an affidavit of himself. his solicitor, or agent, setting forth the judgment and date of the rec?very thereof, the amount due on the judgmont, the deponent's bteh~f that the debtor is about to leave the Province, and without s atmg the ground for such belief. ·where an order to pay by installments bas been made against a debtor. and such debtor fails to make a ny of the payments directed to be made by such order, execution may 1ssue for his arrest, upon an affidavit setting forth such order and the non-compliance therewith. Any person arrested under such execution '..e;[..apply for relief under the prov:isions of "The Indigent Debtors  '1;;~~  Assignments. (See In olvent Laws.) ~ttachment. In suits against ab.ent or ab conding debtor, the wr~t of summons shall be in tbe usual form. and may describe the defendant as absent or absconding. The plaintiff may sue out a writ~f attachment to take defendant's property or he may issue a ummons ·0ffiany agent having money or credits due defendant. on making an a dav:it showing a cause of action for an amount within the jurisdiction of court, stating the amount of debt or damage su tained, ahnd _that defendant is absconding or absent out of the Province. The er1ff shall levy for the amount inclorsed on the writ with 120 for probable costs, in actions to recover $80 and upwards, and $28 in actions for le . Goods exhibited to sherifl' as defendant-'s good are appraised by sworn apprai ers; defendant's goods are not bound by the attachment until levy is made. Perishable goods may be sold J;lDder an order of the court. unless defendant' agents give security, ,or the value within three days after their apprai ement. . Bank. The legislation respecting Banks and Banking is contained ~ the act of the Parliament of Canada (Chapter 9, of the Statutes of anada. A. D. 1913). Tbe Provi ions of the act apply to the twentyrour Banks mentioned in Schedule "A" to the act, and to every bank l ncorporated after the first day of January A. D. 1912. The act cthonttnue the Charters or Acts of Incorporation of said Banks until e first day of July A. D. 1923, subject however to forfeiture by reason of insolvency or non-performance of the conditions of the Act or by any other reason. The provisions for the incorporation of Banks are largely similar t? the provisions of Law respecting the formation of other Corpora~1ons. A Bank cannot commence business without, previously obtainmg permission from the Treasury board to do so. The Capital stock of a Bank may be increased by resolution of the share-holders and approval of the Treasury Board. A full statement of the affairs of the Bank showing the liabilities and assets must be laid before the shareholders at their annual meeting. A Bank must hold not less than 40 per cent of its cash reserves in Dominion Notes, if not it incurs o Bank can i. ue a note for a penalty of $500 for each violation. less than $5.00 or for any sum which is not a multiple of 5.00. The et . Existing Payment of the notes i a first charge on a bank's ~anks mu t make a deposit with the minister of finance equal to 0 Per cent of the note circulation. otes of the Bank are pay.able at Par throughout the Dominion of Canada. Banks are authorized to hold real estate such as is required for their 0 ',Vn _use, but all other real estate howsoever _a~quired must be sold W1thm seven years from the date of the acqws1t10n thereof. Banks are also authorized to make advances in aid of building ship , to take security therefor to lend money upon the security of. tanding timber. and upon the security of natural products o~ live or dead stock of a wholesale dealer and to take warehouse receipts as collateral security and similar business. Banks are al o authorize~ to lend monoy to farmers upon the security of their threshed gram grown. upon the farm. They are obliged to make retw:n. to the finance mims~r showmg their assets and liabilities. and g1vmg t~e names of their shareeveral penalties are provided for the enfo_rcement holder in detail. of the various provisions of the Act. 'l'he stock of a Bank 1s transferable at it bead office. Bills of Exchange and Prornis ory 'ote . The law is much the same as in the United State . A demand draft is without days of grace. A sight draft is entitled to tbree days of. grace. A bill or note falling due on a legal holiday (Sunday, Christmas Day, New Year's Day, Good Friday, birthday of sovereign or anr day made a holi~ay by royal prnclamation) is parable on the_followmg day: ri:'he SUbJect of bill'l of exchange and prom1s ory note· 1s by the constitution Within the powers of the federal parliament .. and c-o~c;equently, ~he law O;ll the subject is tbe same in all the Canadian pr~vmces, exceptmg certam enactments relating exclu lvely to the Provmce of Quebec. . B~s of Lading are negotiable. E v_ery consignee of ~oods 11?,med in a bill of lading to whom the property ~n the good· .therem mentioned Passes upon or by rea on of such consignment or mdorsement. shall have transferred to and vested in him all right of_. uit and be subject to the same liabilitieb in respect of such goods 3-;'l 1f the contract contained in the bill of lading had been made to himself. Bills of ale. Bill of sale, M against purcha er' 3:nd creditors have ef!cct from time of Oling only. The tatute pre'cribe forms of affidavit of bona tides which mu ·t be followed. A renewal statement and affidavit shah be filed within 30 day,- next preceding the expiration of the term of three years from (a) the filing of every bill of sale or copy, and (b) the flling of every r~newal st~tement and affidavit or amended renewal ·tatement. otherwise such bill of . ale shall cease to be valid as again. t creditors of the grantor and , ub equent purcha ers. A form of renewal statement and affidavit i. pre cribed by statute. which must be followed. In addition to the above enactment . two clru se of in trument are dealt with by statute: 1. Bills of sale given to secure the grantee. (a) re-payment of any advances to be made by him under an agreement therefor; or (b) against loss or damage by reason of tbe indor ement   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1  1981  of any bills or promissory notes; or (c) against lo s or damage by reason of any other liability incurred by the grantee for the grantor; or (cl) against loss or damage by reason of any liability to be incurred, under an agreement by the grantee for the grantor. These must fully set forth by recital or otherwLc;e the terms, nature, and effect of the tranc;action and be accompanied by an affidavit of the truth of the recital and of bona fldes. 2. Every hiring, lease, or bargain for the sale of personal chattels. accompanied by an immediate, delivery and fol!owed by an actual and continued change of posse sion, whereby 1t 1s agreed, (a) that the property in the personal chattels; or (b) in case of a bargain for ale. a lien thereon for the price thereof or any portion thereof. shall remain in the person letting to hire. the le sor. the bailor or bargain or. until the payment in full of the hire. rental. or price agreed upon by future payments or otherwise. These must be e,·idenced by in. trument or instruments in writing, bowing the terms of such agreement, and be signed by the person to whom such personal chattels are hired, the lessee, bailee, bargainee, or bis agent thereunto duly authorized in writing, and sball have written or printed therein the postoffice address of the person letting to hire, lessor, bailor or bargainor, and a true copy or true copies of such instrument or instruments shall be filed within ten days from delivery of the chattels accompanied by an affidavit of bona fldes. Chattel Mortgages. (See Bills of Sale.) Collaterals. Bills of exchange, promissory notes, warehouse receipts, and bills of lading, etc .. may be given as collateral security. Conveyances. (See Deeds.) Corporations are formed by special charter. act or parliament or under joint stock companies acts. Foreigners can form a joint tock company for the purpose of carrying on business in Nova cotia. All corporations, whether domestic or foreign, must hold a certificate  i~e11~u8;.!~C::~t ~~~et!;tr~}ifge~ei~ti!~~~ c:fo~~~1lae~ a~~ 1~¥:i~ 1 0 ~ioi~:ofj~~: :i~:;ri~:dbanih~~t ~rt:1ifg1~s t~ jo~tf!Yti{~ at;;~~~t ~} the stock subscribed. Costs. Costs in action are in the discretion of the judge, but generally are allowed to successful litigant. Courts. The supreme court, county court. city courts and municipal courts have a civil and criminal jurisdiction. The first two have an appellate jurisdiction. The judges of the supreme court, consisting of a chief justice and six associate judges, hold circuit courts throughout the province. The county court is divided into districts and each judge holds court in his own district. The jurisdiction of the supreme court in actions for debt or liquidated demand is from 20 upward; of the county court from $20 to 00. Days of Grace. Where a bill is not payable on demand, the day on which it falls due i determined as follows: Three days, called days of grace are. in every case, where the bill itself does not other1 ~~!ebfft0i~i~~eafl~~dp!~;~~ ~~iho: l~i~!~toisg~i:. b\v1~~ b1~ day of grace falls on Sunday or legal holiday in the Province, then ~he next day following shall be the last day of grace. Deeds. Deeds within the Province may be proved upon the oath of a subscribing witness to the execution thereof taken before the registrar, a judge of the supreme court, a notary public. a justice of the peace, a barrister of the supreme court, a commissioner of the supreme court, or upon the personal acknowledgment by the parties under oath or the due execution thereof. Deeds may be proved out of the Province. as well in foreign countrie as in BritiJ h dominions, by the oath of a subscribing witness or the acknowledgment by the uch oath to be administered by a commissioner parties under oath. appointed to take affidavits without the Province. by a judge of any court of record. by the mayor or recorder of any city or incorporated town, by a minister. consul. vice-consul or consular agent of His Majesty, or by a notary public, re iding respectively at or near the place where the deed is proved. and such attestation with the date shall be certified in writing on tbe aid deed by such public functionary. All deeds and mortgages shall be under seal and executed in the pre ence of at least one witness and unless registered shall be inefl'ective against any sub equent purchaser or mortgagee for valuable consideration, and without notice, who shall first 1•egister his deed or mortgage of such lands. By Chapter 2 of Acts of 1912 short forms are provided for a deed lease and mortgage and the covenants in each respectively. and the act declares the legal effect of such form to be the same as certain standard long forms as set out in the schedules to the Act. Depositions. In an action. the court or a judge, upon sufficient cause shown by affidavit, may order a commission to issue for the taking of tbe deposition of witnesses residin'7 outside the Province, in such manner as the court or a judge may direct. Parties to a cause may consent in writing to examine a witness residing abroad. Descent of Real and Personal Estate. Real Estate. When a person dies intestate, any real estate to which he may be entitled at the time of his death , hall descend as follows: 1. In equal shares to children and issue of deceased children according to the right of representation. If no child of tbe intestate living at tbe time of his death to the other lineal descendants of such intestate. who shall share equally if in same degree. otherwise according to the right of representation. 2. If no is ue, one-half to widow in lieu of dower. and the other half to his father and mother in equal share . or if only one of his parents i living at the time of the intestate's death, one-half of his real property hall go to that one and if there is no widow the whole shall go in equal shares to his father and mother, and if 'only one of them is living at the time of the inte:tate's death, the whole shall go to that one. 3. If no issue or father, or mother one-half to widow, other half in equal shares to brothers, and sisters, and the ~bildren. of any deceased brother or sister, by right of representation; if no widow. father, or mother, whole to brother and sister and children of deceased. bro.ther and sister, by right of representation. 4. If none of fore~omg m equal shares to hi next of kin in equal degree, excepting where two or more collateral kindred in equal degree but claiming through different ance, tors those who claim through the nearest ance tor shall be preferred to those claiming through an ancestor who is more remote, but in no case shall repre entative be admitted among collater!3-l~ of the brother· and sister' children. 5. If person decea.sed. unmarried. and w1der age, estate inherited from either parent goes to. children _of sam~ parent a.nd issue equally, if of same degree. otherwise accord.mg to nght of repre ·entation; if no children of same pai:e~t. to all the 1• ue of th~ other ch}ldren of the same parent fflo':i~lly, if m same degree: otherwise accordmg to right of representa0  Fa~  er:..,i  Personal property descends in the same way, except that after t,he payment of debts. funeral expenses. etc .. one-half of the residue goes ~o the widow if any, _Provided that the inte ·tate shall leave no lawful 1s.~ue. If he _leave~ issue, one-third of uch property shall go to his w1qow; a.nd 1f the u~te·t!J,te shall leave no kindred, the whole of such residue shall go to !us widow. Do";er. A wi~e is entitled to dower out of all lands (with a few e~cept~ons, 9f wh1ch _her husband was eized at and after thoir marriage) m which she did not bar dower during his lifetime; but a hu _ band _can o~ly be tenant by the curte y of such of bis wife's land as she d1ed seized of.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  __________ ________  1982  "  AND COMMERCIAL LAWS-ONTARIO BANKING --  Execution. Writ of execution (fleri facias) may issue upon a judgment or order for the payment of any moneys or transfer of real or personal property, and, if unexecuted, shall remain in force for one year only from its issue, but may be renewed at any time before date of expiration from date of renewal, and so on from time to time. No writ of execution shall bind the goods of the defendant but from the time the writ is delivered to the sheriff to be executed, and a levy may be made under it at any time, and after levy and due advertising the  ~~;~~iI~~~:~l>~ ti;Af!~~~?ibe Jo'~\~~ri<i?fr!g~; fi~J:trc:~~~ in the distribution of proceeds of per onal propert,y taken 0  creditors under execution from the supreme court or county courts. Execution against lands may issue at any time within six years from the signing of judgment. A judgment does not bind real estate of the debtor until it has been registered in the registry of deeds for the county or district in which said lands lie; for one year, and after such period the judgment creditor may order execution to be levied on said lands. Exem.ptions. The neces ary wearing apparel, beds, bedding and bedsteads of the debtor and his family, one stove and pipe therefor, one crane and its appendages, one pair of andirons, one set of cooking utensils, one pair of tongs, six knives. six forks, ix plates, six teacup , six saucers, one shovel, one table, six chairs, one milk-jug, one teapot, six spoons, one spinning wheel, one weaving loom, one sewing machine, ff in ordinary domestic use, ten volumes of religious books, one water bucket, one axe, one saw, and such fishing nets as are in common use, the value of such nets not to exceed 20; all necessary fuel, meat, fish, flour and vegetables. actually provided for family use, not more than sufficient for the ordinary consumption of the debtor, and his family for thirty days, and not exceeding in value the um of 40, one cow, two sheep, and one hog and food therefor for thirty days, tools and implements of. or chattels ordinarily used in the debtor's occupation to the value of $30. Frauds. No action shall be brought whereby to charge any executor or administrator upon any special promise to answer damages out of his own estate, or whereby to charge any defendant upon any special promise to answer for the debt, default, or miscarriage of another person, or whereby to charge any person on an agreement made upon consideration of marriage, or upon any contract or sale of lands or any interest therein, or in any mining areas, or upon any agreement that is not to be performed within the space of one year from the making thereof, unless the agreement upon which the action shall be brought, or some memorandum or note thereof, shall be in writing, signed by the party to be charged therewith, or some other person authorized by him. Promise to be answerable for the debt of another not invalid for want of statement of consideration. No contract for the sale of goods for the price of $40 or upward shall be good unless the buyer accept part of the goods so sold, and actually receive the same, or give something in earnest to bind the bargain or in part payment. or that some note or memorandum of the said bargain may be made and signed by the party to be charged therewith or his agents thereunto authorized. Garnishm.ent. The court or a judge, upon the ex parte application of any person who bas obtained a judgment for the payment of money, upon affidavit of himself or solicitor stating that Judgment has been recovered, and it is still unsatisfied, and to what amount, and that any other person is indebted to such debtor, and is within the jurisdiction, order that all debts owing from such third per on (the garnishee) to such debtor shall be attached to an wer the judgment. Wages up to S40 cannot be garnisheed, nor debts due from the government. Husband and WUe. (See Divorce and Married Women.) Interest. Legal rate. 5 per cent. A contract may be made in writing for any rate when the security is real or chattel real, or for any rate where the security is personal property or per onal responsibility, except in the case of banks, who may not charge more than 7 per cent. Judgments bear interest at 6 per cent. .Judginents. (See Executions.) .Jurisdiction. (See Courts.) Limitations on all contracts not under seal, six years; judgments o arrears of dower, nor and contracts under seal, twenty years. damages on account of such arrear. shall be recovered or obtained by any action or proceeding for a longer period than six years next before the commencement of such action, or suit; and no arrears of rent, or interest, or money charged on or payable out of land, or in respect to any legacy, or any damages therefor, shall be recovered after six year· from date when due, or from acknowledgment of the same in writing. Married Women's Property Act. Under thic; act married women may acquire, hold. and dispose of, by will or otherwise, any real or personal propert,y as their separate property, in the same manner as if they were femme sole, and without the intervention of any trust e. Married women by registered declaration, may carry on separate 'larried women having separate estate may ue and be business. sued as femme sole. l\fechanic' Lien. Every mechanic, machinist, laborer, builder. contractor, or other person, doing work upon or furnishing materials to be used in the construction of any building, road, railway. wharf, pier, bridge, mine, well, excavation, sidewalk, pavement, drain, or sewer has a lien for the price of his work thereon to the extent of the owner's interest. A claim for lien mw t be filed in the registry of deeds for the registration district in which the lands lie, within thirty days after the completion of the work or the supplying of materials, ebe the lien will cease. Proceeding to enforce registered Hens must be commenced within ninety days after the completion of the work. nregistered lien . hall cea.<;e services, or furnishing of supplies, etc. in to exist on the expiration of time limited for reg-i tration, uni the meantime an action is commenced to realize the claim. rnort~age i fore Io · d by an Mortgages must be under eal. action in the supreme court, and is discharged by a release in which reference is made to the regi ·try of the mortgage, and .·ame must be under seal, executed and recorded as an ordinary deed, and a marginal note made on the regi tered mortgage that the same bas been released. Notarie are appointed by the government of ova Scotia and have power to take protest . Note and Bill of Exchange. ( ee Bills of Exchange and Promissory Notes. Partnerships may be general or limited. Limited partnerships are created under statute, and there must be at least one general partner. Declaration of partner·, showing intere::;t of special partner, amount of his liability, nam of partners, duration of partnership, and the like, must be filed in the registry office and publi. bed in new ·papers. "The Partnership Act" of 1911 deals with the nature of partnership· the relations of partner· to persons dealing with them, and to one another, and also with the di olution of partnership and its consequence . This act is copied from the English partnership act and is about of the same effect. P owers or Attorney to execute a document under eal must be under ea!. Where com•eyanc · of land are executed under power of attorney, it must be registered with the conveyance. Probate Law. ( ee Administration and Descent of Property.)  Protest.  Delay in giving notice of dishonor is excused where the  i~o~~edJ{e~~r~~f~J~i~%~~dw~ghcg~tig~ f!:!ho8r rie~~ :r.;trg ports to be both drawn and payable within Canada, or drawn upon  some person resident therein) has been dishonored, it may be noted  wge~! !e:i;~~\~81t~ci~:~~g~:~1!l~rrn:g!:~c!tt~;~~: Tta~~t 0  ~!1!1! ~t:11~°i; ~~-~gc;::~:  If it is not so protested the  Replevy. An order for replevin may issue after plaintiff makes affidavit that he is entitled to property, that it is detained unjustly, and setting forth the value of it. The sheriff, before replevying, may require a bond from plaintiff to save him harmless, before proceeding to replevy. Service of Sununons must be personal, except in special cases, where judge may order substituted service. Ta e are levied on real and personal property by the municipalities and collected by them. Outside the city of Halifax a tax is levied on income. Will must be in writing, signed at the foot or end thereof by the testator or by some other person in hi presence and by his direction, and such signature shall be made or acknowledged by the testator in the pre. ence of two or more witnesses, present at the same time; and such witnesses shall atte t and subscribe the Will in the presence of the testator, but no form of atte tation shall be nece ary. Executors are competent witnesses. Wills of minors are invalid.  SYNOPSIS OF  THE LAWS OF ONTARIO RELATI  re  TO  BANKING AND COMMERCIAL USAGES Prepared and Revised by RYCKMAN. DENISON, Fo. TER & BEATON, Barristers, Toronto. ( ee Card in Attorneys' Li t.) The law throughout Canada is uniform on the following commercial urrency and coinage. 2. Ban.king, incorporation matters: 1. avings bank . 4. Bills of banks, and i uing of pa.per money. 3. of exchange and promi ory notes. 5. Intere t. 6. Legal tender. opyrights. There . Patents. 9. 7. Bankruptcy and insolvency. are other matters exclusively within the jurisdiction of the Dominion, but they are not commercial. The province can not le,p.slate on the above matters, although they have general jurisdiction m matters of proi;>erty and civil rights. The law in the different provinces on the subJect · within their juri diction vary. There i an analogy between this division of jurisdiction between the Dominion and the provinces and that between the United tate and the re pective states. The difference between the two 7. terns is that all unenumerated powers in Canada belong to the Dominion. In the United 'tate all unenumerated powers belong to the r ·pe tive tate . Acknowledgment. To take a debt out of the ·tatute of limitations a payment on account or an acknowledgment in writing is required. This acknowledgment mu. ·t bo in uch term.· as to amount to an admissi n of the exi ·tence of the debt, and promise to pay same. Action . All actions are commenced by a writ of ummons indorsed with a tatement of the nature of the claim made or the relief or remedy sought. If the claim i · for a liquidated demand in money arising out of contract, e pre, · or implied. for example, on a bill of exchange, promi · ory note, check. account, or any simple contra.ct debt, the writ is specially indori;ed with the particular· of the claim defendant, If erved within or amount ought to be recovered. Ontario. must enter an appearance within ten day. after ervice, inclu ·ive of the day of service. If erved out of Ontario, further time is given. according to di.·tance. If the writ i pedally indorsed and the defendant doe not appear, judgment may be ·igned in defatilt of appearance without any further proof of claim, and execution i. ·sued hould the defend?-nt ent ran appearance, pleading will forthwith. have to be served, and the a tlon take it ordinary ourse. Where the writ i specially endorsed the defendant ball ith his appearance file an affidavit that he has a good d fense and bowing nature of the defen.·e. This may be treated as a tatem nt defense hy th~ p~aintiff, and p_leadinl? may be clo.·ed, by rving the defendant w1thm five day· with a twenty-one dar' notice of trial. Where the defendant appear· to a pe ially endol"l-i d writ and files his affidavit a: abovo, the plaintiff may cro e amine on uch affidavit and move for _judgment. and if the court i - sati. fled that a good defense upon the merit i not hown or that uch fact. , entitle the defendant to defend or that . uch fac have not been di. cl . d. judgment maY ntere a defendant who h~ appeared and be given for the pl, intitr. flied his affidavit as above do not file a tatement of defen e within the time limited. his affidavit hall tand as hi defense.  0  I I t t C C  il e  BANKING AND COMMERCIAL LAWS-ONTARIO Where writ is not specially endorsed and defendant fails to appear, Plaintiff may sign interlocutory judgment, directing an assessment of damage, or a reference. Inferior jurisdiction is exercised by the division or county courts. Division courts are held in the different counties throughout the Province, and have jurisdiction in: 1. All personal actions where the amount claimed does not exceed $60, or $100 when agreed to by the parties. 2. Claims and demands of debt, account, or breach of contract, or covenant or money demand where the amount or balance claimed does not exceed 100. 3. Claims for debt or money demand not exceeding $200 and interest where the a.mount, or original amount, is ascertained by the signature of the defendant or person whom, as executor or administrator, he represents, provided in the case of an o costs unsettled account the whole account does not exceed 600. are recoverable in the division court as a general rule, only court fees, Which are not large. County courts have jurisdiction in : 1. All personal actions where debt or damages claimed do not exceed 500. 2. In all suits relating to debt, covenant, and contract to $ 00, if ascertained by act of both parties or signature of the defendant, or in any similar case to any amount, if the parties by writing submit to the Jurisdiction of the court. 3. Recovery of land or damages for trespass thereon where its value does not exceed $500. 4. Partner ·bip accounts Where stock or capital is not over $2,000. 5. Legacie not above $500 out of an estate not exceeding $2,000. 6. Claims on mortgages where sum claimed does not exceed $500. 7. Actions for redemption or equitable relief where sum does not exceed $500. 8. Conte tation of creditors' claims on an estate where amount of claim does not exceed $500. They can not try: 1. Title to land where the value of the land is over $500. 2. The validity of any devise or bequest over $200 where the estate is over $2,000. 3. Actions for libel or slander, or crim . con. or seduction, or against a jm;tice of the peace, if the justice by writing objects thereto within six days after the notice of action which is required to be given in such actions is served upon him. In all these latter cases a.nd in all actions above the limit of the county courts, the Supreme Court of Ontario has juri diction. If suits are brought in ~he wrong court, the parties may be deprived of costs. Priority of Judgments is regulated only by the time of the delivery of the writ of execution into the hands of the sheriff, and not by the time of obtaining the judgments, and judgment creditors share equally with other creditors, gaining no priority or advantage, except that their co ts are added to their claim. (See Assignments.) . Administration of E tate. Administration is granted by the Judge of the surrogate court of the county in which the deceased had his la.st place of abode, or in which he leaves property. It is granted to the next of kin. A creditor may apply for administration. Letters cannot be granted until after an interval of fourteen days from the death. The administrator must re ide in the province. Affidavits. Affidavits made in the United States or any foreign country, to be used in any of the courts in Ontario, may be made before a notary public, certified under his hand and official seal. or before a commissioner residing in such foreign country, duly authorized to take affidavits, etc., to be used in Ontario, or before the mayor or chief officer of any city or town or before Briti h consul or vice-con ul. If made before the mayor of a city or town they mu. t be certified Under the common seal of the municipality. Agreements where Posse sion Passes without Owner hip. In case of an agreement for the sale or transfer of merchandi o of any kind to a. trader for the purpose of re-sale, po ession to pw s but not ownership, any such provision is void against creditors, mortgagees or Purchasers without notice. unless the agreement is filed in the office of the county court clerk within ten days of the execution of the agreement. This provision does not affect purchases in ordinary course of business, or sales of manufactured articles bearing the maker's name.  Allens. Every kind of real and personal property may be held, bought and sold by aliens as freely as though they were natural-born ~Ubjects. Although not resident in Ontario, they may be_ ·ued bf b~mg served with notice of process. Any perso~ not resident w1thi? the_ Pl'Ovince who bring · an action in its co~rse. 1s bound, ~pon a.pphcat1on ma.de therefor, to give to the oppo·1te party secunty for the costs which may be incurred in the action, generally to the extent. of 1400. or by payment into court of $200. In the count.y courts. security is required to the extent of $200. or by payment into court of 100. In ca..c;es where debt is ascertained by the signature of the defendant, the security required is $50 on motion for speedy judgment. (See also Judgments.) R. S. 0. C. 65, Appeals. Ap11eal . Appeal from all the Ontario courts a.re heard a.~ Toronto by the Appellate Division of the upreme Court of Ontario, who e decision is final unless the amount in dispute exceed Sl,000, or unless future rights the title to real estate, or the validity of a patent a.re involved, in which cases a further appeal to the . upreme Co~1rt of Canada at Ottawa is allowed. If future rights are mvolved or if the a.mount in dispute exceeds $4,000, the appellant. instead of goin~ _to the Supreme Court of Canada, may, at his option, appeal to the Jud1c1a.l Committee of IIis Majesty's Privy ouncil at, London, Eng. The Privy Council will not hear appeals from the SUJ?reme (;ourt o_f O_anad_a Unless some constitutional question or some important prmc1ple lS involved. Arbitrations. Arbitrations are now governed by the revised statute respecting arbitrations. A submission is irrevocable, unless there is a contrary expression therein, except by leave of the court. Arbitrators a.re allowed three months to make their award. Tlle court ha'! pc,wer in certain cases to appoint an arbitrator. Arrest. One foreigner can not follow another into O~ta.rio and have him arrested for a. debt contracted abroad, but any creditor wh~ e claim is 100 or over may obtain the arre ·t of hi debtor UPOI} sh9wrng by affidavit that the deb.tor is a.bout to leave ~he Proyincc, with mtent to defraud his creditors. A married woman 1 not liable to arrest for debt. Assignment . A Bankruptcy Act '\\'.as passed in July of 1919 . by the Dominion Parliament and comes mto force July 1, 1920. Under this Act a ct·editor is entitled to pre ·ent a Banh::uptcy Peti. tion against a debtor when the deht owing amounts to aOO. A debtor commits an act of Bankruptcy when he malces an ru igntn.ent for the benefit of his creditors. fraudulent co~v~yance or Preference, or absconds or allows an execution to remain m the heri!f s hands unsatisfied for fourteen days after seizure. . T~e Act contams a Provision for the appointment of a trustee to dispo e of the a.s.-;ets . of the debtor. The Act also contain a. provision for discharge of the debt~r efl'_ectiv,e no sooner than three months next after t!1e date _of hi.' bemg adJudged bankrupt. In Ontario voluntary a.ss1gnmen~s by debtors su_persede attachments, executions, judgments, _except Judgments for a.hmouy duly registered in registry office agamst . the lands of the defendant, and executions in the hands of the shf:lr1f! n9t complet~ly exec~ted by payment subject to the first executions hen rm: costs. Garni hee orders receiving orders by way of eqmta.ble execution a.re also superseded by an assignment. A P!·efei:en e ~ade by a debtor Whlch has the effect of defeating any creditor is pres~ed to be fraudulent and void if attacked within sixty day , or 1f followed by_ an assignment by the debtor within Lxty days. If attacked after . ~Y days, the intent to prefer must be proved. If proved, the transaction is set aside, unless it is shown to have been made under pressure by the preferred creditors. ( ee Wages.)   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1983  Attorneys in the states sending claims for collection to Ontario are recommended to read carefully this summary of the jurisdiction of the Ontario courts over claims in Ontario, as mistakes and disputes· con-  ~~~~;1[na~~f~~~~~ ~ttf::i~~~~l0~:r ~~f~.einfn ~:fs~oth~~~= • a.  no costs at all are allowed, only court disbursements, and, therefor litigant in that court, even if successful, has to pay his own costs. The tendency of legislation has been to extend the jurisdiction of the nferior courts. Attachment. A resident in Ontario who. being indebted to any other person in a sum exceeding $100, departs or absconds from this Province with intent to defraud his creditors. or to avoid arrest or service of process, and at the time of his so departing i possessed to bis own use of any real or personal property, is deemed an absconding debtor, and his property may be seized and taken by a writ of attachment, for which a. judge's order must be obtained upon affidavits setting forth the necessary facts. Banks. The subject of banks and banking is one which, by the Canadian constitution, is committed to the parliament of Canada. The legisla.tllt'e of the Province has no power to deal with the subject. The legislation respecting banks and banking is contained in the Statutes of Canada (1913) 3-4 Geo. V. C. 9, and cited as the Bank Act. A Bank chartered under the Bank Act in addition to being a corporation with certain specified powers and subject to certain special restrictions. is authorized to "engage in and carry on such business as appertains to the business of banking." No Bank can issue a. note for less than 5 . 00 nor for any sum which is not a multiple of $5. 00. The payment of the notes is a first charge on a bank's assets. Notes of the bank are payable at par throughout the Dominion of Canada. Banks a.re authorized to hold real estate, such as is required for their own use, but all other real estate howsoever acquired must be sold within seven years from the date of the acquisition thereof. This does not prevent banks from erecting office buildings upon their own land and renting the larger part of them to concerns who a.re not carrying on a banking business. They can not ta.lee a mortgage on real estate but may hold such as "additional" security only. Banks are also authorized to make advances in aid of building ships, to take security: therefor, to lend money upon the security of standing timber and upon the security of natural products alive or dead stock of a wholesale dealer and to take warehouse receipts as collateral security and similar business. Banks a.re also authorized to lend money to farmers upon the security of their threshed grain upon the farm, They are obliged to make returns to the Finance Minister showing their assets and liabfiities and giving the names of their shareholders in detail. Severe penalties are provided for the enforcement of the various provisions of the Act. (See al o Interest,.) Bills of Exchange and Promis ory otes. A war tax stamp duty of two cents is required to be paid on bills, notes or checks and all paper nee;otiatect through a bank and also two c nts per $100 or a fractional part thereof on every Promissory ote and Bill of Exchange. Three days grace are allowed. ( ee Days of Gra.r,e.) Presentment for payment should be made when due, and noti~e of dishonor given or mailed within one day, in order to hold the mdorser or drawer, but these st ps are not necessary in order to hold the acceptor of a bill or maker of a. note. In case a bill or note falls due and is payable on a legal holiday, it mm,t be presente~ tho day after su~h holid~y. The legal holidays as fixed by statute, m all matters rela.tmg to bills or notes, are undays, . ew Year's Day, Good Fr~d~Y. Easter Monday, Chri<,tmas Day Victoria. Day (24th May), Domimon Day (1st July), Labor Day (1st Monday in September), King's Birthday, and any special days appointed by proclama:tion for _public holidays, fa.sting or thank giving. Tho lep:al rate of mterest is now 5 per cent. If a bill is dishonored a.broad, in addition to interest and expenses of noting and protest, holder is entitled to re-exchange with interest to date of payment. (See R. S. C., 1906, C. 119.) Bills of La.ding a.re now negotiable. Every bill of la.ding in the hands of a. consignee or indorsee for valuable consideration representing goods to have been shipped on board a vessel or train, is conclusive evidence of such shipment as against the master or other person signing the same, notwithstanding that such goods or some p~rt there~f may not have been so shipped, unles:> ~uch holder of the bill of ladmg has actual notice at the time of receivmg the same that the goods had not in fact been laden on boa.rd, or unless such bill of la.ding hll:8 a_ stipulation to the contrary. but the master or ~ther person. so s1gnmg ~ay exonerate himself in respect to such m1Srepresentation by showmg that it was caused without any default on his part, and wholly by the fraud ·or the shipper, or of the ~older, or of some per.son U!Jder wh~m the holder clain1S. Every consignee of good· named m a bill of la.dmg to whom the property in the goods therein mentioned pa..c;ses upon or by reason of such consignment or ~dor ement,_ shall have trans~err:e? to and vested in him all right of smt and be subJect to the same liabilities in respect of such goods as if the contract contained in the bill of lading had been made to himself. Bills of Sale and Chattel Mortgages must be filed in the office of the clerk of the county court of the county wh_ere the goods ai:e situated, within five days from ~he date of execution. An a~dav1t of good faith showing that the bill of sale or chattel mortgage 1s not made for the prupose of defrauding creditors must be made by the vendee or chattel mortgagee before the bill of ale or chattel mortga.gi, can be filed. Renewal statements verified by similar affida~t flied during the last month of each year of their currency are reqmred to pre erve their effect. When a chattel mortgage is made to a. company the affidavit of good faith must be ma.de by the pre ident. vice-president, manager, a..-.si tant mana.gei:, secretary _or treasurer, or other officer, duly authorized by resolution f the directors. An officer or a.gent must state that he has "personal knowledge of the facts deposed to." Olaims again t Estates ol Deceased Per ons. Where a person die intestate, letters of administration may be granted by the surrogate court. (See Administration of Estate.) In administering the estate no difference is made as to judgment or other debts, all are to be paid ratably. Claims are enforced by suing the executor or administrator. Wills are proved in the surrogate court of the county where the testator had his last place of abode. or if testator lived out of Ontario, in the city where the property devised is situate. Rea.I and personal property both devolve upon an ad1nini trator. Security is required before administration granted. ( ee Descent.) Collateral . Chattel mortgages are frequently given as collateral security for advance . Jn dealing with collaterals parties must be careful not to prejudice their main or original security. They are expected to realize on the main ecurity to the best advantage before proceeding on their collateral security. Contracts. Contract for the sale of lands or an interest in land must be in writing, signed by the party to be charged. The provisions of the statute of frauds are in force in Ontario, modified by the a.ct respecting written promises and acknowledgments, which extends the statute of frauds in cases of contracts for the sale of goods of the value of 40 and upward to contracts for goods to be delivered at a future time. Corporations a.re created by a.ct of parliament. special charter, or under the general acts relating to the incorporation of joint tock companies by letters patent. Shareholder are liable only to the amount of their shares, and when the e shares are paid in full, they a.re discharged from any further liability, except that the directors of the   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1984  ------·--- ----  BANKING AND COMMERCIAL LAWS-ONTARIO  company remain personally liable to the company's setvants for wages incurred or earned while such director. have been in office. to the amount of one year's wages. Pro,·ision has been made for the winding up of joint stock companies. Costs, Security for. (See Aliens,) Days of Grace. ·where a bill is not payable on demand, the day oo which it falls due is determined as follows: Tht·ee days, called days of grace, are. in every case where the bill itself does not otherwise provide, added to the time of payment al fixed by the bill, and the bill is due and payable on the last day of grace. When the last day of grace falls on Sunday or legal holiday in the Province, then the next day following shall be the last, day of grace. Deeds. All deeds should be in duplicate, so that one may be registered while the other is returned cerWled, and must be registered In order to be valid against subsequent purchasers for value or mortgagees. Common form of deeds may be used, but the statute provides a. short form, with covenants and bar of dower. AU deeds must be under sea.I. A wafer, sealing war, or other adhesive substance will answer for a. seal, but a. scroll is not a seal. In conveying the estate of a married woman it is u. ual, although not absolutely necessary for safety, that the hu"band should be a party to the dP-ed but no acknowledgment or separate examination of the wife, apart from her husband, Is required. l'roof of all deeds, mortgages, etc., for registration, is made by an affidavit by the sub.cribing witne. , in any foreign count,ry-before the mayor of any city, borough, or town corporate. certified under the common seal, or before any British consul or vice-consul resident in such country. or before a judge Qf a court of record, or a notary public, certified under his official seal. When different partie sign before different subscribing witnesses, each such witness must make a sin1ilar affidavit as to the execution by the parties who e execution he atte ts. or the deed can not be registered. One credible person, male or female, who can read and write, will suffice as a witness. (See Lands Titles.) The short forms of deed and affidavit of execution are as follows: This indenture, made in duplicate the . . . . . . . . . . day of ....... . in the year of our Lord one thousand nine hundred and ....... . In pursuance of the short forms of Conveyances Act: Between ..................................................... . Witnesseth that in consideration of the sum of ................... . dollars, of lawful money of Canada now paid by the said part ..... . of the. . . . . . . . . . Part to the said part . . . . . . . . . . . of the First Part (the receipt whereof is hereby by . . . . . . . . . . . . . . acknowledged) . . . . . . . . . . he. . . . . . . . . . the said part . . . . . . . . of the first part Do. . . . . . . . . . . . Grant unto the said part .... : ..... of the ..... . part in fee simple .. ....... . ... .. ......... .... .... ... ........ . All and Singular th .... certain parcel ...... or tract ........ : . . of land and premises situate, lying and being ...................... . To have and to hold unto the said part .......... of the ......... . Part. . . . . . . . . . . . . . heirs and as: igns to and for ............ their sole and only use forever Subject Nevertheless to the re~ervations, limitations, provisoes and conditions expressed in the original grant thereof from the Crown. The said part ............ of the First Part Covenant ........ with the said part ............ of the .......... part TH AT ........ he .......... ha .... the right to convey the said lands to the said part . , .......... of the . . . . . . . . . . part notwithstanding any act of the said part . . . . . ...... of the First part ........................ . And that the said part .... of the ............ Part shall have quiet possession of the said lands free from all incumbrances. And the said part ..... of the First Part Covenant .... with the said part .... of tbe .......... Pa.rt that .... he .... will execute such further assurances of the said lands as may be requisite. And the said part ...... of the First Part Covenant .... with the said part .... of the .......... Part that .... he .... ha. . . . done no act to incumber the said lands. And the said part .... of the First Part Release .......... to the said part . . . . of the .......... part ALL . . . . . . . . Claim upon the aid lands. And the said party of the Third Part hereby bars her dower In the said lands. In Witness Whereof the said parties hereto have hereunto set their hands and seals. Signed, Sealed and Delivered in the Presence of I, ..............•...............•.•. , Dominion of Canada.,} of the ........ .. . .. of ................ , Province of Ontario, in the ........ County of ............ . ................... make oath and say: To Wit, 1. That I was personally present and did see the within Instrument and a Duplicate thereof duly signed, sealed and executed by .................................... the part ........ thereto. 2. That the said Instrument and Duplicate were executed by the said part ...... at the ....................................... . 3. That I know the said part ............................... . 4. That I am a. subscribing witness to the said Instrument and Duplicate. Sworn before me at the . . . . . . . . . . . of . . . . . . . . . . in the ....... . of ............ this ............ day of .......... in the year of our Lord 191 ... . A Commissioner for taking Affidavit • etc. An act known as The Land Transfer Tax Act came into force on the 1st of June 1921 imposing a tax of one-fifth of 1 per cent of the sale price payable on the re~i tration of auy deed. An affidavit mu.st be attached to the deed showing the full and tru amount of the moneys and the value of any property or security given as consideration. Depositions. Witnesses e amined under a commi ion from a court must be examined under the directions given by the comm~ ion. In ordinary cases depositions may be taken before a notary public, and will be signed by the party, and hi ignature will be verified by the notary. Descent. When no issue, a widow is entitled to $1,000 part of the net value of her deceased husband's real and personal property. In respect to the residue. real estate de cends like per. onality--onehalf to the widow or widower and one-half to all the next of kin in equal degree, where there are no children. Where there are children, one-third to the widow and two-thirds to the children and the legal representatives of children who prede ea! e the intestate. A widow is entitled to elect whether she will take her dower or a distributive share of the estate, according to the rule of devolution of personal estate. (See Dower.) Distre . ( ee Exemption .) Dower. "V\'hen there is no i ·ue of the marriage surviving the father, the widow is entitled, in case of intestacy, to 1,000 of her husband's estate and over that amount to her share in the residue. Under the Devolution of Estates Act, R. . 0. (1914) ,. 119, a widow is always entitled to elect whether she will take her intere. t under this act or her dower (i, e., a life intere ·t in one-third of her husband' real property-free from bi ctebt. , and in all Cll! es she is allowed to take a sum in gro s or di ·tribute . hare instead of her common law dower, being one-third of the e ·tate where there are children, and one-half where there a.re no children, after payment of debts. Evidence. In all civil proceedings no person is disqualified as a witness on the ground of interest, as a party or otherwi e. Husband. and wives are competent and compellable witnesse , save as to communications made during their marriage and proceedings consequent upon adultery. In actions by or against repre entative of any Q  deceased persons, or by or against a lunatic. an opposite or interested party to the suit can not have judgment upon his own evidence as to any matter occurring before the death, unles. such evidence i. corroborated. An affirmation or declaration may be made hy a witness if the presiding judge be satisfied that an oath would not in conscience have any binding efl'ect. Executions are i. ued by the division. county, and high courts within their respective jurisdiction. ,vrits against goods and lands are concurrent and run for three years, and can then be renewed. A land '\\Tit can only be issued where the judgment is 40 or upwards. Patent rights may now be -old under execution. Rights under trade marks are apparently not saleable under execution. Exemptions. The following goods and chattels of a judgment debtor are exempt from seizure under writs of execution, or distress warrant for rent or taxes : The bed and bedding, and the necessary and ordinary wearing apparel of the debtor and his family, certain chattels, not exceeding in value 150, nece. sary fuel and food, not exceeding in value the sum of 10, stock in a.II not to exceed in value 100.00, and feed therefor for thirty days, tool: and implements of, or chattels ordinarily used in, the debtor' occupation, to the value of $100; and of bees fifteen hive . Lands acquired under the Free Grant and Homestead Act are exempt from seizure and sale for debt for a period of twenty years from location of land being made by locatee or his widow, heirs, or devisees. Foreign Corporation . Foreign corporations cannot ru a rule do business in Ontario without payment of a license fee and complying with the laws or the Province or of the Dominion as to corporations. Contracts of foreign corporations are adjudicated upon in the same manner as if they were the contracts of domestic corporations. (See Revised Statutes of Ontario [1914] C. 179.) ( ee Alien Enemies.) Foreign .Judgments. (See Judgments.) Fraud vitiates everything. Reasonable diligence after discovery of fraud is required in order to pro ecute a claim succe.· fully. Garnishment. In the high court and county court gamishment is effected by attachment of debts under order of court. In the division court garnishment is effected by er"lice of the original summons upon the garnishee. ,vages are protected from garnishment unle the sum be for wages amounting to 25, and then only to the extent of the excess. If the debt i. for board or lodging, and the debtor is an unmarried man, or if married and the judge thinks the exemption unnecessary, then there i no exemption . Holidays. In Ontario the legal holidays are unday, New Years' Day. Good Friday, Easter Monday, Victoria Day (24th May), Dominion Day, Labor Day, King' Birthday, Tha.nks 'iving Day. Where the time allowed for doing any act expire , unle otherwi e provided, on a holiday, it may be done on the next day succeeding. Hu band and Wlte. (See Married Women.) Interest. Five per cent, is the legal rate, except as to securities in force on 7th July, 1900. Banks can not recover more than 7 per cent for intere. t or di count. Parties may agree between themselves as to anv rate of interest, but, where no rate hru been agreed upon, the , legal rate only is recoverable. But see the Dominion l\Ioneylenders act (R. . C. Chap. 122) limiting rate of interest to 12 per cent per annum on negotiable instrumen contracts, or agreements concerning loans of money under $500, and to 5 per cent after judgment. Judgments. Foreign judgments are all judgments recovered against any person outside of the Province, even though it be in any other province of the Dominion. A defendant sued in the courts of the Province on a. foreign judgment of a court, to the juri diction of which he was subject, can not set up as a defen e thereto any defense which he set up, or might have set up, to the original action if he was personally served with the proce in such original action. or appeared or pleaded thereto, otherwise foreign judgments may be attacked for fraud or want of juri diction in the court in which judgment wa.c; obtained. In the case of action on judgments obtained in the province of Quebec, if the ervice was not per onal any defen e may be set up which might have been made to the original judgment. ( ee Alien Enemies.) Juri diction. (See Action .) Land Titles y ten1. Lands in Ontario may be under the Land Titles ct, R. . 0. (1914) C. 126. within the "lands titles sy tem" of transfer, which is by certificate in tead of deed. A mortgage i called a charge. Each holder of land gets a certificate from the office for the county-on that certificate are ind or ·ed all transfers. No seal is necessary. Where papers are ent to the United States for execution, under this sy tern, special directions will be required. Limitation . All action upon simple contracts, notes, bills, accounts, and all instruments not under eal and money demands, must be commenced and brought within sb: years from the time the cause of action aro e or accrues, or from last payment thereon or written acknowledgment. Action upon a bond or other specialty within twenty years. When the plaintifl' is under any di ability, uch as infancy, coverture, or lunacy, the statute of limitations begins to run from tbe removal of the disability. ~ -on-resident plaintiffs have no longer time than if they were re. ident. A against a non-re·ident rdefendant or when the can. e of action did not accrue before he left Ontario, the ac1 ion may be brought within time limited after return of defendant to Ontario. All actions to recover land and real estate mu t be brought and commenced within ten years from the time when the right of action first accrued. Judgments remain in force for twenty year and can be kept renewed. Actions on insurance policies must be brought within one year from death, or a. further period of six months. Married ·w omen. A married woman can acquire, hold, and dispose of, by will or otherwise, a.1_1y real or per. onal prop_erty, includipg any property acquired by her m any employment which she carrtes on separately from her husband. or by the exerci e of any literary. artistic or cientific skill. as her separate property, and as though she he maY were a femme ·ole. without the intervention of any trw'tce. enter into any contract and he su d, either in contract or tort., and be liable &! i( a femme sole, and her husband need not be joined a a party. All damages and costs recovered ag-ainst her in an action hall be payable out of her sepat·ate estate. ~ To husband or wife shall be entitled to. ue the other for tort in a civil action. A married woman may devise or bequeath hor propet·ty by will. A wife i entitled to dower out of all the land of which her hurband was .-eized at and after their marriage in which ·he has not barred her dow r. The hu ·band can only be tenant by curte y out of ·uch lands as hi wife may die seized or po. e ed of. ""oman attain. her majority at twenty-one years. lecbanic.' Lien . Every mechanic, machini t, laborer, builder, contractor, or other per:on doin~ work upon, or furni ·hing materials to be used in the con:'truction of any building, or erecting, furni ·h~g or placing machinery on or in connection with any building, has a ~1en for the price of the work, on uch building, and the lanrls therow1thb, to th extent of the owner'. interest. Paym nts made in good fa.it to contractor to the extent of O per cent (in the case of contracts of $15,000 or over, .5 per cent) are a di. charge of the liens pro tanto. A statement of claim must be flied in the re~i try office f the county where the land lie, within thirty day af er the completion of the work, or the upplying of the material , else the lien will cease. Pro-  ce th la i  sel ch. (S  of ch re1 be ls fo1 Ce  T a la  m  th  s  0  $1  Of  or fo la in Ill  R  p  so Ill  p  -------- ---  BANKING AND COMMERCIAL LAWS-ONTARIO  ceedings to enforce the lien must be taken within ninety days from the completion of the work, in the Supreme Court of Ontario. Special laws are made as to reduction of legal expenses in these ca es. Mechanics are entitled to a lien upon a chattel for work done thereon, and may sell the chattel after three month if the work is not paid for. If the chattel is delivered to the owner. the lien ceases. Mortgages on Lands should be executed and proved like deeds. (See Deeds.) A mortgage must be registered in the Registry Office of the County within which the lands are situated. It may be discharged by a certificate signed by the mortgagee, or bis assignee or representative entitled to receive the money, and such certificate must be registered in same regi try office. After maturity the mortgagee Is not entitled to charge the mortgagor any interest by way of bonus for the privilege of paying off the mortgage. The execution of a certificate is proved in the same manner as a deed or a mortgage. The usual remedies of a mortgagee are sale or foreclosure, or action upon the covenant, which must be commenced within ten years after cau e of action arose or from any acknowledgement. At the last session of the Ontario Legislature an Act' was passed authorizing C'ities with a population of 200,000 or over to pass a bylaw levying a tax of one tenth of one per cent on the a.mount of a.II mortgages registered in the Registry Office. This is in addition to the usual fee for registration of $1.50. Notes and Bills of Exchange are governed by the Dominion law. See Bills of Exchange.) Partnerships. All partnerships, for trading, mining, or manufacturing purpo es, must be regi tered in the registry o~ce of the registry division in which they intend to carry on busmess. The declaration must set out the full names, occupations, and residence of the partners, the business they propose to carry on, and for bow long their partnership has existed or is to exi t, and that the persons named in the affidavit are the only members of the partnership. This declaration must be flied within six months after the formation of the partnership. A penalty of $100 may be imposed in case of non-compliance with the act. A similar declaration shall be filed when and so often as any change in the partnership takes place. At the last session of the Ontario Legislature an Act was passed codifying the law relating to Partnership. Power of Attorney. May be general or special. If intended to affect land mu t be verified by affidavit of execution in the same way !),S a deed, 'and must be capable of registry in the registry office. If mtended to convey a particular parcel of land, such parcel must be described. A general power to convey lands would be registered in the general registry. Probate Laws. A will is proved in the surrogate court of the county in which the deceased has his last pl_ace of abode. ~davit of execution of will death, place of abode, mventory, valuation, etc., must be produced. If no executor i named in will, administration is granted with will annexed. Trust companie frequently act as executors, the original executors named in the will renouncing in their favor. Proof or Claim . A solicitor should be furnished w_itb full name and re idence of plaintiff and defendant and with part1culat'S of the claim if on an open account. If on a judgment an exempliflcati?n of the judgment under the seal of the court and hand of the chief Judicial officer is required. Where the plaintiff is re ident out of t~e province security for costs may be ordered by the Court on the application of the defendant, in which case a bond in the sum of .rnq must be ~iven or 200 paid into court to abide the event of tJ:ie 'Wt. ~r an action is brought by a foreign plaintiff and the plamt1ff could, 1f an appearance was entered, apply for su~ary Jl._ldgment. on the ground of no defence, he may on being requ~ed. to g1ve s_ecur1ty, pay into court $50.00 and then make the application; and if succ';lssful the plaintiff may sign judgment and issue execution. (See Allens.) Prote t. Delay in giving notice of dishonor is excused where !he delay is caused by cil'cumstances beyond the control of the person giving notice where an inland bill (one which on the face of 1t purPorts to be both drawn and payable wit~in Canada,. or drawn upon some person resident therein) has been dishonored, 1t may be noted and protested for non-acceptance or non-payment, as the case 1!1aY be. Where a foreign bill has been dishonored for non-acceptance, 1t must be duly protested for non-acceptance. If it is not so protested, the drawer and endorsers are d1'lcharged. Redemption. The mortgagor i entitle_d ~o r~deem the property so long as he is not barred by statutes of hnntat1on or by sale made Under powers contained in the mortgage. RopJevin. Rcplevin is now extended to all c::a. es l~ which property is unlawfully taken or det.ained. A bond 1s reqmr';ld from the Person replevying that the property shall be forthcommg m the event of the proceedings failing. · Sussession Dutv Act. The fees payable under the ucce 1~n Dut_y Act were very largely increa~ed by an Act passed by the Ontario Legislature known as the Succe ·s10n Duty Act, 19 2 ~- d t No duty is >ayable on any estate the value of which oe no exceed $5 ooo ·atd where the aggregate value of the property of the deceased exceeds . 5,ooo and passes to the grandf3:ther, grandmother, father, mother, husband, wife, son, daughter, son-m-law or daughterin-law of the deceased no duty is payable. d Where the aggrea:ate value exceeds $25,000 and does !icep~r $50,ooo 1 per cent·"' for larger amounts from 2 ½ per cen cent ' ' Where the whole amount passes to one per. on and the aggregate value exceeds IO ooo but does not exceed $25,000 1 H per cent; for Iarwr amounts from 2 per cent t,o 15 per cent.f the deceased exceeds $10 here the aggregate value of ~heOIOJroJ)erty ~uch thereof as par es ,000 but does not exceed 2,),0 , or so h d ther 0 ~o lbineal ancestor of the deceased excep_t_ the ~~i~fa!c:is~ 0 /~~ any at er or mother or any brother or s1:ster o .• t r ti 1etshcendaut of such brother or si ter. or to a S~~~~.;~a~{t sii ::;.ci 1~! a er or mother of the deceased, 01 to any t f m rnentioned brother or sister, 5 per cent; and for largei· amoun s ro 7 Per cent to 17 per cent. ds 510 ooo nd the a Where the valite of any dutiable property e:"ce:d exceptin/grandIllount passing to any one person last menuon . t next ~ther, grandmother, father or mo~fir. ex~e~9-sp;~ece1:'i~~'g113 per ceentioned, a further duty shall be pa1 rom n ~· d S" 000 and doe. not exceerl $ , 0 in an other degree 0 here the aggregate value excee s ·'• ;; as ai!ove de!·criberl 0 } ,ooo and any pat•t, thereof P~ ·es to any or ~ollateral consanguinity to th~ d~cease eel as above provided for fh any tr~nger !n blood to t e f ~c~~ ce~t of the value and for larger e same l~ s~bJect \~ a ~-uJfnf to 35 per cent. . 'l'b. amount~ f1om 12 , i pe , ·u to tax property of non-residents In the 8ucc?ss1on Duty omce ass ~te\·Ota! value of the estate. e provmce at a rate fixed b~ e t Attachment. Comlllt'. ~it. . (~ee Actions, ~davE1t, Appte·ao~ A[{;:Ulshment. Judgment, R · sion, Evidence, Execution, xemp 1 , eplevln.) . c uncil of each municiParaxes. The rate for the year 1shflxe,~f~1~~~e,!lth. Lands may be corporation and lands are c arg h The owner SOid for taxes ,~hen they are in arrears for ~ ree amount of llll>urayhredeem ivithit? one year a~tor stai!x01!_1~e~~ 10 per cent added. c ase money paid by purchaser a   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  :it°  JtY: -!vP  ;:fof  1985  Transfer of Shares. A tax of 3 cents must be paid by the transfer or h1 money or stamps for every $100 or fraction thereof of the par value of the stock of a. company upon every change of ownership by sale, transfer or assignment of shares or debenture stock made or carried into effect in Ontario. Wages. Upon an assignment for the benefit of creditors, a seizure under execution, or the administration of an estate, the wages of all persons in the employ of the assignor, execution debtor, or deceased are paid in priority to the claims of ordinary or general creditors to the extent of three months wages, and such persons rank as ordinary creditors for the remainder, if any, of their claims. War Taxes. Owing to the exceptional conditions arising out of the late war various new taxes acts have been passed by the Dominion Government and as the scope of these acts come within the defined area of Dominion Legislature they are binding on individuals and corporations within the Province of Ontario. The Business Profits War Tax Act impo ed a tax of 25 per cent per annum on all profits over 7 per cent in the case of a business owned by an incorporated Company and in the case of a business owned by any other person at the rate of 10 per cent per annum. There is a  ~~~ }~c~::!d";;~e~i ~he~ ~~~~~l!hc~:~P;tt aft~~oK!~ in excess of the said 15 per cent per annum but not exceeding 20 per cent per annum and where the profits exceed 20 per cent per annum the tax is increased to 7 5 per cent per annum with respect to all profits in excess of the said 20 per cent per annum. The Income War Tax Act imposed a tax of 2 per cent. Four per cent on incomes of unmarried persons and widows or widowers without dependent children and exceeding $3,000 in case of all persons and in addition thereto; 2 per cent on all incomes over $6,000, and under $10,000. 5 per cent on all incomes over $10,000, and under $20,000. 8 per cent on all incomes over $20,000, and under $30,000. 10 per cent on all incomes over $30,000, and unaer $50,000. 15 per cent on all incomes over $50.000, and under 100,000, 25 per cent on all incomes over $100,000. Corporations and joint stock companies no matter how created or organized shall pay the normal tax upon income exceeding $3,0,,P0, but shall not be liable to pay the superta.x. The Budget introduced by the Finance Minister at the last session of the Dominion Parliament imposed a luxury tax and also other taxes the details of which are not available at this date. Wills must be in writing, and signed, but need not be sealed, by the testator or by some person in his presence and by his direction, such signature to be made or acknowledged by the testator, in the presence of two witnesses, both present at the same time, who shall sign their names as such witnesses, in the presence of the testator, and in the presence of one another. A common form of attestation clause is as follows: "Signed and declared by the above-named A. B., as and for his last will and testament, w the presence of us, both present at the same time who, at his request and in bis presence, have hereunto subscribed our names as witnesses. C. D., of Toronto, clerk. E. F., of Hamilton. merchant. (Signed) A. B." The gift to a witness, or to the husband or wife of a witness, is invalid. A will to pass personal property need only be in conformity with the law of the country in which the testator had his domicile. To pass real estate, however, the will must be valid and effectual for such pm•pose according to the law of the country where the real estate is situated. Change of domicile subsequently to the execution of a will, does not affect the validity of the will. A will, no matter how long executed before the death of the testator, is construed a.~ if it had been executed immediately before bis death. Hence, property acquired between the date of the will and the time of the testator's death may pa.ss by the will.  R:°~1~! f! 0  fgr   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  19~- _________B_A_N_K_IN_G_A_N_D----C_O ____ M=M-=-E=-=-R:...:C:..:I:..:A:.::L=-=L~A_:_W.:....:....:S:___:_P_:R_:.:I::_N:..:C:.:E~E:::D::...:W.:.:A~R~D~IS~L~A~N~D~-------  SYNOPSIS OF  THE LAWS OF PRINCE EDWARD ISLAND RELATING TO  BANKING AND COMMERCIAL USAGES Prepared and Revised by MESSRS. 1'.1cLEoo & BENTLEY, Barristers, harlottetown. (See Card in Attorneyi;' List.) Acknowledgments. All deeds executed in the Province, must before registry, be either acknowledged by the party, or proved on oath by subscrib_ing witne before a commissioner for proving deeds, or before the registrar. Deed executed abroad may be acknowledged by the parties. or proved on the oath of witn before the mayor of any city of the country where the deed is executed and certified under common seal of such city, or before any British consul, vice-consul or consular agent, or before a judge of tho court of record, or a notary public, certified under his official seal..or before a commis.~ioner authorized by the government of the Provmce to take affidavits abroad in a court of record in the Province or to take acknowledgment of deeds abroad. or may be proved on the oath of sub cribing witne. s before a justice of the peace in country where execut-ed. the handwriting and official character of the justice to be certified under hand and seal of a notary public. (See Husband and ·w ue.) Administration of Estate. There is one surrogafe and probate court of the Province with office at harlottetown. In this court letter·· of probate and administration are ~anted and estate of deceased per ·ons usually admini<,t.ered. In cases of intestacy administration may be granted to the widow or next of kin; or if they neglect applying for letters of administration for thirty days after the death of the intestate, administration may be granted to a creditor after first citing the widow and next of kin and their refusing to administer. laim should be proved against the e tate within eight months after letters testamentary have been taken out, as after that time the executor, on being sued, may plead specially that he had no notice of the debt, and that be bas applied the assets in his hands in payment of the debts proved agairu t the estate and of which he had notice. If the personalty is insufficient to pay debts. executor or admini trator may, by leave of the surrogate, ell the real estate. Estates of deceased person may also be administered in the court of chancery, in which court lands are assets for the payment of debts In the event of the personal property of the deceased being insufficient. ( ee Taxes.) Affidavits. Affidavits to be made abroad, to be used in this Province for any purpose for which affidavit might be u ed if made within the Province, may be sworn before a judge of a court of record, or of a superior court, or of a county court. or before a British consul, vice-consul, or consular agent, or before the mayor of any city or town. or before a notary public, provided the signature and official character of person before whom taken be certified under the band and seal of a notary public, or under hand of a judge, clerk, or prothonotary of a court of record, or of a uperior or county court, and the seal of such court; or under hand of the mayor of any city or town and the corporate seal of such city or town; or under the hand and official seal of a British ambassador, envoy, minister, charged 'affairs. and secretary of embassy or legation exercising his functions in any foreign country, a British consul-general, consul, vice-consul, acting consul, pro-consul, and con ular agent exerci ing hi functions in any foreign place. The person before whom oath taken may certify to his own official character and qualification under his hand and official eal. Alien . Previous to confederation (A. D. 17 3), aliens might hold real e tate not exceeding 200 acres. ow, by Dominion statute, aliens may hold real and personal property of every de cription the same as natural-born British subjects, and succession may be traced through aliens: but an alien is not eligible for any public office. Aliens may be summoned to defend suit in this Province in certain cases. (See ourts.) Arbitration. If in any suit in supreme court matter in dispute coo ists wholly or in part of matters of mere account, which can not conveniently be tried in ordinary way, court or judge may order uch matter wholly or in part to be referred to an arbitrator appointed by the parties or to an officer of the court. Arre t. A resident debtor can not be arre ted by proce out of supreme court, except by judge's order. to be made on affidavit on proof of debt, and showing facts and circumstances to satisfy judge that there is good and probable cause for believing that debtor, unless forthwith apprehended, i about to quit the Province with intent t,o defraud creditor or creditors. -on-re. ident debtor, if found in the Province, may be arrested upon an affidavit of debt made showing that he is a non-resident. Capias from county court may i: ue for any sum over 8 and not over $150, upon an affidavit being made of amount of debt and of belief that debtor is about to depart from the Province to evade payment of his debts. Asslgn:ments. ( ee Insolvency.) Attachments. The pr<>r,erty of an ab. ent or absconding debtor may be attached upon affidavit being made of the debt and of the fact that debtor is so absent or absconding. Property of a resident debtor, except dehts. etc. ( ce Garnishment). can not be seized or attached until after judgment. Banks. The agent or manager of any bank established abroad carrymg on business in this Province i to be al e · ed and taxed on the average volume of busine s done here. ( ee Interest, Corporations.) Bills of Exchange and Promls ory Note . To days of grace are allOWl'cl on bill. payable on demand, or on presemation, or in which no time for payment i expressed. Three days of grare allowed on bills payable at sight, or at a fixed period after sight, or after date, or on or at a fixed period after the occurrence of a specified e\·ent certain to happen. If last day or grace falls on legal holiday, then day next following not being such holiday shall be last day of grace. If all matters relating to billi and notes, following days are legal holidays: undav., Tew Year' Day, Good Friday, Ea: ter Monday, Victoria Day (May 24th), Christmas Day. The Birthday (or the day fixed by proclamation for the celebration of the birthday) of the reigning sovereign, and if uch birthday is a unday, then the following day, 1st of July, ancl if 1st falls on unday, then 2d of July), any day appointed by proclamation for a public holiday, general fast, or general thanksgiving, Labor Day (the first Ionday in eptember), day following New Year' , Victoria Day, or Christmas if thei e days rail on Sunday. Foreign bills must be protested, but inland bills do not require protest.  Br!)k~rs. Stock brokers are liable to pay an annual tax to the Provmc1al Treasurer and are also required (under penalt.v) to fl.le with th_e Provincial Treasul'er of the Province a copy of the charter and regulat10ns (or propo. ed charter and regulations) of, and an affidavit O.f statutory declaration giving certain information, concerning every Company whose debentures, bonds, stocks or shares are about to be sold or purchased or offered for sale or purchase by such stock holder. Chattel Mortgage and Deeds of Trust. Ab ·olute bills of sale or tran. fer of chattels_are void (excep~ as between grantor and grantee) unless grantee forthwith upon execution thereof take actual possession of c~attels and grantor ceases to have possession. Chattel mortgage reqmres to be registered and to have an affidavit indorsed made by the grantee or his agent to the effect that grantor is really indebted to tI-?e gr3:ntee in the amount expressed in the mortgage, or that a co~s1derat10n of nature and amount therein expre ed really and truly exist , and that to the best of bis knowledge and belief the mortgage was not executed for the purpose or with the intent of protecting the property th_erein described credioors of the grantor, or of defraudmg th(_'l creditors of the gr~ntor or any of them. Statutes of Elizabeth (1:1 Ehz. chap. 5 and 27 Ehz. hap. -1) are in force. Chattel mortgages or other conveyances or tran. fer (except such as are given for a prcs1:nt ac_tual bona fide payment or advance of money, or made in cons1derat1on of any prei ent actual bona fide sale or delh-ery, of goods or other property) are void if given by a debtor in insolvent circumstances with intent to give an undue preference over other creditors or to prejudice or delay any of his creditors. Contracts required to be in writing are : 1. negotiable instruments· 2, any promi. e by an executor or administrator to answer damages out o_f bis ?Wn estate; 3, any promise to answer for the debt, default, nu <;arr1age of ~mother person; 4. any agreement made upon con~1derat10n of marriage; 5, any contract of sale of lands or any interest m lands; 6. any agreement not to be performed within a year from the ~king thereof; 7, agreement for sale of goods, wares, and merchandfae of v~lue of 32 and upwards, unless accompanied by acceptance and receipt of goods by buyer, or his giving something in earnest to bind the bargain or in part payment. Lease for three years and under may be made v~rb~lly. A promi. e J?lade .after full age to pay a debt con~racted durmg mfancy IDl!,St be m wr1tmg and . igned. A representation as to character, credit, etc., made to enable another t? obtain money or credit is not actionable unle. · · in writing and signed by the party to be charged therewith. Contracts against public poli~y or moralitf are void. Persons incapacitated from contracting are mfants, luuat1cs. persons of un. ound mind. J\;larried women maY by contract bind their separate e tates. Corporations may be created by special Dominion or Provincial statute, or by letters patent i!:sued under the Dominion or Provincial companies acts. The liability of hareholders is usually limited to the amount of shares sub cribed, and when the shares are paid in full. hareholders are <li;- ch!!-rged from further liability. Certain taxes are imposed upon foreign insurance and other companies transacting busine s within the Province. The tatute further provided that such Company should transmit to the Provincial ecretary in the month of January in each year a statement bowing all chang s in the Director·. officers and agents of the Company, that have taken place during the preceding year. It has recently been decided by the upreme Court of this Province that the statute of :A,~ril 24, _1913 _governing corporations was passed to prote<_'t the Publu: _m dealing with such ompanics. and that such Comparues were prohibited from doing bu ine · in this Province until the statement required by the Act had been filed. 'onsequently anY business tran. ac:ted by such ompany without having flied the required tatement was illegal and no action could be brought in re pect to it. The sta.t_ute referred to was repealed on the 24th pril, 1915. by the Compames Tax Act but the repealing statute preser..-e the penalties incurred by such Companies during the time they were in default and the busine carried on in the Province in the two years during which the statute was in force by such companies as failed to comply with the requiremen of the Act would thus appear to be invalid. By the Companies Tax Act passed on the 24th , pril. 1915 certain taxes are impo ed upon companie. doing bru in~ in the Province. By this statute every Company liable to pay taxes i required before carrying on busine. · in the Province, to file with the Provincial Treasurer: (1) A true copy of the charter and regulation of the companY verified in manner satisfactory to the Provincial Tre urer and showing that the company by its charter has authority to carry on the buslne being carried on or a.bout to be carried on in the Province, and if any instrument included in the afore. aid i. not written in the English lanp;uage, a notarially certified traru lat ion ther of; and shall al o at the same time, and on the first day of April in each year thereaft er, without any notice or demand therefor file with the Provincial Treasurer: (2) An affidavit or statutory declaration that the company is stUI in existence and legally authorized to transact busine. under lta charter, and containing information howing :-(a) The corporate name of the company; (b) How and under what special or general Ad the company was incorporated: (c) otice of the place where the head office without the Province is situate; (d) otice of the citY, town and county in this Province where the bead office of the companY in thi Province is ituate or propo ed to be . ituate; (e) The amount of the l}-Uthori7:ect capita.I ~tock of the company; (0 The number e>f shares mto which it 1s d1v1ded; (g) The names, addre. es and occUpations of each of the directors and officers of the company, and of the agent or person in charge of the company's business In this Prol'lnce; (h) The time of the existence of the company if incorporated for a limited period; (i) In the ca e of a limitetl company that the company is limited; (j) The amount of tock ·ub wibed 'or issued and the amount paid up thereon; (k) In the case of an in urance company a copy of the la: t balanre beet and auditor's report thereon• Thi'- last mentioned tatute declare that non-compliance with ltlf provisions as to filing ucb affidavit, declaration or document subject' the Company to liability for payment of a fine but doe not prohiblfi the Company from carrying on bu. in~ . o t . No attorney'' co t! or counsel fee are i,ayable or can b8 recovered against a debtor on any action brought in the county co-urt,S, ( ee Courts.) ourt . For che recovery of debts county courts have jurfsdictloSI where debt does not excoed 150. Judge tries all cases without • jury, and no ·olicitors' or attorney·' fee.· are allowed. ixteen c1rcuJtl are e~tahli ·bed throughout the Province, at each of which a court IS6 held m .\ugust, October. December, and :March. A judgment in tb county court can not atrect land or title to land. upreme court bal juri. diction in all action. at common law (except that no action caJI be brought for de"!>t when am unt i under 32). All actions !11 commenced by writ of ummoru . When claim i. for a liquidat-. amount o~ debt, _ummon: may be pecially indorsad. and if defendaJlfi ~re ·ident 1D Province) fails to appear within eight day after erl'i~ Judgment by default may be entered and execution may issue ed twelve q_ays afte! la: t d_ay for appearance. , ummons may be serV' on a Br1tl h ubJect re 1dlng out of the Province in r~ pect of a cause, of action arising within juri diction or in re -pect, of the breach o ; contract made 'Yithin the juri.·dlction. Proco dings In llke e&-'108 llllt• be brouJ1;ht ~am ·t any pe. on residing out, of Province thouirb ~~ a British subJect, but instead of a summons being served upon -  or  e )  n  e  a  he is served with a notice of the summons having been issued. In these cases time for appearance will be regulated accordiug to distance from Province. Upon a minute of a judgment in supreme court being filed such judgment binds all interest in land then held by defendant and also such as he may acquire until judgment is paid. Such judgment will take priority over a subsequent deed or mortgage, and against a previous deed or mortgage, but registered subsequently. A chancery court also exists having full equitable jurisdiction. Oreditors' Bills. There is no statute authorizing a creditors' bill for general discovery and in aid of common law execution, but statutes enable a judgment creditor to examine the judgment debtor on oath before a judge touching his estate and effects and as to the disposition he has made of his property since the debt on which judgment was recovered was contracted, and as to what property he still has and what debts may be owing to him. Proceedings to annul fraudulent conveyances by a debtor may be taken by bill in equity under the English statutes of Elizabeth. Conveyances and securities made or given by a debtor in insolvent circumstances with intent to give a  !~d !1~iftef~~deC:~d~~~~ct!f s~~~~ie~re_r~~~di~~~~; also file a bill in equity for administration of the estate of a deceased debtor. (See Insolvency.) Deeds, Mortgage , and Conveyances of real property must be made under seal and should be registered in order to prevent a later grantee or encumbrancer from obtaining priority by prior registration. The execution of deeds must be proved before registry by the acknowledgment of the grantee or by the oath of a witness before the proper officer, and his certificate of such acknowledgment indorsed thereon. Commissioners for taking such acknowledgments to deeds are appointed and where there is no such commissioner the execution of the deed may be proved before a notary public, certified under his official seal. (See Acknowledgment.) A married woman of full age may convey her interest in land by deed executed with her husband and a proper acknowledgment apart from her husband before a justice of the peace or a notary public that same was signed by her of her own free will and consent had without any compulsion, and that she was aware of the nature of the contents thereof. Any separate property of a married woman acquired since 1896 may be disposed of by her as if she were not married. Powers of attorney executed by a married woman authorizing another to convey land must describe the land to be conveyed with a sufficient certainty. No more than one witness is necessary to the execution of any deed unless same is executed in pursuance of a power of appointment specially directing more than one witness to be necessary. A wife should join her husband in conveying land in order to bar her right of dower. (See Dower.) Depositions may be made by oath or by affirmation or solemn declaration. Witnesses abroad may have their evidence in an action taken by commission before a commissioner to be appointed by the Judge or court who grants the order for commission. Witnesses ~ithin the Province who are sick, aged, or infirm, may give evidence m an action on commis ion on a proper application being made for the purpose. (See Affidavits.) Descent and Distribution of Property. In cases of intestacy land (subject to widow's right of dower) is divided among all children or thf'ir legal representatives in equal shares, and in case there be no children or their representatives then to the next of kin in equal degree, but no representation admitted among collaterals after brothers' and sisters' children. If after death of a father, any of his children die intestate without wife or child in the lifetime of the mother, every brother and sister of the intestate hall have an equal share with her. When a brother and sister of the whole blood and a brother and sister of the half-blood hall be such next of kin, the di tribution shall be confined to the brother and sister of the whole blood. When the next of kin shall be a brother or sister and a grandfather or grandmother, distribution shall be confined to the brother or sister or the representatives of them. The father may be heir to his child dying without issue, and shall be preferred as heir to such child before a brother or sister of such child. Personal estate (after payment of all debts) is distributed as follows: One-third to Widow and residue in equal proportions among t children and those legally representing them; if no children or repre entative , then O!}eo representat10n ha.lf to widow and residue amongst next of kin. among collaterals after brothers' and sisters' children. . Dower. A wife is entitled to dower by the common law, and by statute the right is extended so as to attach to the husband's equitable estate of inheritance in possession and to estates partly legal and Partly equitable. She is also entitled to dower when the bu band was entitled to a right of entry or action in any land in which she would have had dower had he recovered possession thereof. Where a wife of unsound mind has a right of dower ln her husband's land, the land may be sold freed from her dower by order of a judge of the supreme court. Executions. Goods of defendant are bound by an execution out of supreme court from time same is placed in sheriff's hands. An execution from county court does not affect defendant's goods until same are actually levied on. Land may be sold under an execution Issued out of supreme court after six months notice of such sale in manner provided by statute. · Exemptions. The wearing apparel and bedding of debtor and his family and the tools and implements of his trade, one cooking stove and 'one cow, in all amounting to $50, are exempt fr:om seizure llnder county court execution. The goods e:cempt from se~zure under an execution out of upreme court are the nece ary wearmg apparel and bedding of debtor and family and the tools and instruments of his trade or calling, $16 in money and his last cow. Foreign Judgments. The record of a judgm~nt against a res!dent of this Province, obtained in any other provmce or C(?UDtry, 1s not conclusive evidence. in any suit to be brough~ on such Judgment Within this island of the correctness of such Judgment, but the defendant may dispute the facts or cause of action upon which such Judgment is founded as fully as if such foreign judgment had never been given. Fraud. Deeds obtained by fraud may be anpulled by the court of chancery if impeached in due time and before mnocent purch~ers, for valuable consideration without notice of the fraud, have acquired rights. Judgments may also be set aside where obtained by fraud. (See also Insolvency.) Garnishment. All sums of money, wheth~r liquidated or unliquidatect, payable to a debtor for any cause of action other than personal torts or wrongs, can be attached by a creditor either before or after Judgment. Insolvency. Although the Dn'!'inion parliament ~as jurisdiction to Pass a general law applicable to tu .. provmces in case of bankruptcy or insolvency no such law now exists. By a statute of the Provmce, When a debtor is in insolvent circumstances or 1;1nable to pay his debts in full, or knows himself to be on the eve of _msolvency, and volipitarlly confesses a judgment in favor of a creditor, or makes any gift, conveyance, assignment, transfer, delivery, or payment of goods or chattels, or of bills. shares, or other property, real or _perso°'al. with intent to defeat, hinder, delay, or prejudice ~ny of his creditors, or "'1th Intent to give any of his creditors an unJtu t preference over his other creditors, such confession of judgment deed. gift, conveyance,  fxi.1!!:~g~d  e, e 11 e-  a!  0   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  payment, etc., shall as against his creditors who are prejudiced, delayed, or injured, be utterly void; such transaction, if impeached within sixty days, shall be presUD1ed to be made with such intentions, if the effect of such transactions is to give to a creditor a preference over others and whether the grantee has any knowledge of the grantor's insolvency or of his intent or not. This does not. however, invalidate any gift, conveyance, assignment. or delivery of any property or any security executed bona fide for a present actual bona-fide payment in money, or for a present actual bona-fide sale or delivery of property, if the money or property so paid, sold, or delivered bear a reasonable value to the consideration therefor. A debtor may make a genera.I assignment for the general benefit of his creditors, ratable and without prejudice. Interest. Parties may contract to pay interest at any rate agree on. If no rate is mentioned, bills and notes carry interest after maturity at the rate of 5 per cent; but as to liabilities existing on and prior to July 7, 1900, the legal rate of interest, unless otherwise agreed. is 6 per cent. "l\1oneylenders" are prohibited from charging over 12 per cent per annum and interest shall be reduced to 5 per cent from the date of any judgment recovered for any amount lent. Jurisdiction. (See also Courts.) The county courts have jurisdiction in all actions ex contractu and ex delicto where the debt or damage claimed does not exceed S150, except in the following actions: Detinue, replevin, or ejectment, or where the title of lands is brought in question, or in which the validity of any devise, bequest, or limita,. tion is disputed; criminal conversation or seduction, breach of promise of marriage, actions against an executor or administrator, (but executors or administrators may bring actions in the said courts), or any action against a justice of the peace for anything done by him in the execution of his office, or any action upon a judgment in the supreme court. The supreme court has jurisdiction in all actions for $32 and upwards. Liens. Lien notes and hire receipts given for manufactured goods or chattels (except "household furniture," which, however. does not include pianos, organs, or other musical instrUD1ents) are not valid against subsequent purchasers or mortgagees without notice for valuable consideration, unless at the time possession is given to the bailee the name and address of the manufacturer, bailor, or vendor of the same is printed, stamped, or engraved thereon, or otherwise plainly attached thereto. But this does not invalidate any note, receipt, or instrument evidencing the bailment or conditional sale, which is flied within ten days from its execution with the prothonotary of the court in the county in which the bailee or purchaser resides. Lilnitations. On simple contracts, suits must be commenced within six years from time the debts fall due, or from the date of the last payment on account of such debt. A promise or acknowledgment in writing, signed by the debtor, is sufficient to take simple contract,s out of the statute, and time will then begin to run from the date of such written promise for acknowledgment. Actions to recover any sums of money secured by any mortgage, judgment or lien, or otherwise, chargeable out of any land, must be brought within twenty years next after a present right to receive the same shall have accrued to some person capable or giving a discharge for the same, unless in the meantime some/art of the principal money or interest thereon shall have been pai or some acknowledgment of the right thereto shall have been given in writing by the person by whom the same shall be payable, or his agent, and in such c~ e within twenty years from the last of such payments or acknowledgments. Married Woman is capable of acquiring, holding, and disposing of any real or personal property in the same manner as if she were a femme sole, and may enter into contracts, and may render herself liable in respect and to the extent of her separate property. Notaries Public are appointed for the Province by the lieutenant governor, and have authority to take acknowledgments of married women, prove the execution of documents, protest bills of exchange and ships' protests, etc. Replevin. When goods or chattels have been unlawfully distrained for rent, or taken or detained, an action of replevin will lie, by which the goods are returned by the sheriff to the party from whom they have been taken. on his entering into a bond with sureties that he will pro1,ecute for damages. This action is seldom adopted, except in cases of illegal dist1·aint for rent. Stock-brokers. (See brokers.) Taxes. The real and personal property of a deceased person if exceeding $3.000, are-subject to a succession duty varying from 1 1-2 per cent to 7 1-2 per cent, according to the amount of the estate, and to what parties it passes. Stockbrokers with head office without the Province doing any business here will be taxed S150 a year. (See Banks.) Wills. Wills must be signed in presence of two witnesses present at the same time, who shall in pre ence of the testator and in the presence of each other sign their names as witnesses. A witness to a will can take no benefit under it, but an executor named in will may be a witness.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1988  BANKING AND COMMERCIAL LAWS-QUEBEC SYNOPSIS OF  THE LAWS OF QUEBEC RELATIXG TO  BANKING AND COMMERCIAL USAGES Revised by h;ssRs. BROWN, MONTGOMERY & Mc 1ICHAEL, Advocates, Montreal. (See Card in Attorneys' List.) Acknowledgments. The proof of instruments is made by affidavit of witnesses to execution. ce Affidavits.) Actions may be brought in the courts of the province by any party whether a resident or n_ot_, wh0 bas a civil right to enforce, or who seeks a remedy for an mJury suffered. A married woman must be authorized by her bu.sband before she can institute an action, and when she is sued, ber husband must be also made a party to the action in order to amhorize her to defend the suit. If the husband fails to authoru:e his wife for any reason, the court may upon petition supply the authorization in his stead. A minor is always repre ented by his tutor (guardian) except when he brings suit for the recovery of his wages, a person interdicted for insanity, prodigality or drunkenness by his Curator. 'fhe inbahitants of the province may be sued there for the fulfilment of obligations contracted by them in foreign countries, even in favor of a foreigner (civil code, art. 28). Non-resident, plaintiffs may be required to give security for costs ranging from 15 to $4-00, and to file a power of at.torney authorizing tho solicitors to insti1,ute the acLion. The names in full of the plaintiff,; and their places of residence and occupation, and the residence of the defendant must be given in writs. as also the partnership name when a firm is concerned. In the matter of corporations, the principal place of business should be mentioned. ~farried women and widows may be described as defendants under the urnames of their husbands or deceased husbands respecti"vely. adding the words "wife or·· or "widow of" and a sufficient designation of the husband. Any service upon the heirs of a person deceased within the previous six months may be made upon them colle<'tively, without mentioning their names or residences. at the former domicile of the deceased. • Affidavits. Within the province must be taken before a judge or officer of the court, or a mayor, or a commissioner of the superior court for the province or a notary public-. In Great Britain and Ireland, before the mayor, a Quebec commissioner. a commissioner appointed by the lord chancellor to receive affidaYits in I<;ngland, or a notary puhlic. In British possessions, before the mayor, a Quebec commissioner or a judge of a superior court. In a foreign country before the mayor or chief magistrate of any city, borough, or town under the common seal, or a British consul or consular agent, or a Quebec commissioner. They cau only be taken in connection with judicial proceedings, or in cases especially provided by statute . otherwise ollicer receiving them is criminally liable. olemn declarations before any such functionary have the same force and effect in any but judicial proceedings. Allens have a right to acquire and transmit property (except shares in British ships) in the same manner as Briti-sh subjects. Although not resident in Canada, they may sue or ho sued in its courts for the fulfilment of obligations contracted toward or by them. even in foreign countries, provided a legal service can be efl'ected upon them within the province. (, ee Actions.) They cannot, howeYer, hold any public office nor exercise the franchise. They may be naturalized after a residence of three years. (, ee Actions, Corporations.) Arrest. Arrest for debt does not exist in this province. But vide Capias and Attachment. As ignment and Insolvency. An insolvent trader cannot give one or more credit,ors a preference over his other creditors. No voluntary abandonment of property can be made in the absence of capias or a demand of assignment unless with the consent of all the creditors. Every trader who bas ceased bi' payments, may be required by any unsecured creditor for a sum of .. 200 or upward, to make an abandonment of bis propert,y for the heneLlt of his creditors. The court appoints a curator, after taking the advice of the creditors. at a meeting called for that purpose, aud the property is sold for the benefit of the creditor·, among,;t, whom it" r,roceed ' are divicle<l rat ably, after payment of pri ·ilege;l claims. fhis abandonment only discharges the debtor to the extent of the amount which his creditors have received on accotmt of their claims. The winding-up of insolvent banks, insuranc-e companies. and trading corporations 1s regulated by the revi. ed statutes of Cana<1a, 1906, Ch. 1-14. A new Act known as the Bankruptcy Act is expected to come into force in the near fut,uro--about July, 1920-and will in large part replace Ch. 144 R. . C. 190fi. Attach1nent nnd Cnpia . A person may, e,·en before judgment, upon affidavit. attach the property of bi.~ debtor, whether in the hands of such debtor himself, or of third parties, or arrest, his person. on the ground of secretion of property, abs<'onding with intent to dofrand , and in the case of insol\"ency, of his r fusing to assign. A capias for the arrest-of a dehtor cannot, be i ·sued for a sum less than 50, but his property may be atta<·hed before judgment for a debt of $5. To justify a capias, the debt- must he a personal one, and created or payable within the provi1wes of Quebec or Ontario. A previous order from a judge is required if the capias is demanded for unliquidated damages. Women, priests or ministers, and septuagenarians are not liable to be capia.-;ed, except. after judgment in specified ease.. Banks. Banks am created hy act of parliament of Canada and govemed by federal la" only (the hank act H. '. Canada 1900, C'h. 29). 0 0 ~¾nJ~b1~)~tc1\~ttj,sml1~i t~~ otnia~~!\!f<:;.~ii ~1~s;,~~7i~~~;~~j~j~ cate to do business. The latter amount i. returned le. s 5,000 retained to secure the note issue. l\lajority of directors must be Hritish subjecti-. Shareholders are liable to creditors for an amount equal to the ·um unpaid on their shares plus a further sum equal to the par Yalue of iheir shares. Dividends are payable quarterly or half yearly. No dividend shall ex<'eed 8 per cent until bank has a resen·e fund equal to 30 per cent of paid up capital. • Totes issued are in sum of 3.00 or In multiple of 5.00, and Lot al issue shall never exceed amount of unimpaired paid up capital. Totes of 1.00. $2.00 and 5.00 are bsued by the government. Banks may not advance on mortgages of land, or ships, or upon security of its own stock, or goods, ware·, and merchandise. Banks are not allowed to recover more than 7 per cent for interest or discount. Bills of Exchange, (See Notes and Bills of Exchange.) Chattel fortgagcs do not exist in Quebec. Movable property Is not susceptible of hypothecation. ( ·ee Deeds and :\lortgages, and Liens and Privilege.-;.) Corporations are created by act of the parllament of Canada or or the legislature of Quebec, by special charter, 01· under the companies'  ;fr~J  a<'ts of Canada, or of th~ provin<'e of Quebec. Shareholders, except iu case of banks, are only llaole to the amount of their subscribed shares 11;nc1 _,~hen the.·~ share· are pai<l in full, they are dischar;i;ed from further l\a.l~il1t:y, but d1rec~o.1·s are liable for wages of employes within certain lm11tat10ns. Prov1s1ou has been made for the wincting up of joint stock compan_ies under the winding-up act. (R. ,._. Canada 1906 9J:l· 144.) Aliens can hold . tock and are eligible for directors in anv Jom_t stock company. Foreign commercial corporations mav transac"t bus11?ess, sue, anq be_ sued here. Foreign insurance companies are reqmred to deposit with the government a certain amount in bonds , or cash t?efore they are permitted to do business in the Dominion. Corporations c_hartered ou~s1de_of the province , except Federal corporations_. are reqwred to obtam a licen. e before carryln~ on business In the proV1nce and for uch lk'ense a fee is payable based on the capital. They can bold real estate to the same extent that domestic corporations can and must be reg-istered in the same manner as partnerships (see that word) under penalty. Courts. The ci~cuit court has original jurL-;diction where the amount demanded 1s less than $100; the superior court where it is !00, or upw~rd. Generally an appeal can be taken to the court of kmg s ben_ch rn cases o,·er 200. An appeal can also bo had from thP court of kmg's bench to tbe supreme court of Canada in all cases oYer 2,000, and to his ~aje. t)' S pdvy council. in England, in all case~. over _..12,000,_ and m cases for smaller amounts to both courts, if quest10n:- of t!tles ~o lar~d or if future rights are involved, or if a fee duo to }us maJesty 1s claimed by the action. Deeds. or Conveyance . There is no special form required in the dra~trng of deeds or conveyances except in regard to real estate· no seal 1:5 necessary. If the parties can sign their name no witnesse~ to the signatures are neressary. The general rule can be laid down that deeds affecting chattels or movables when executed outside of the Province should he executed in the form required by the Jaw where they are so executed. In relation to the conveyance of real estate ceded by the French Crown prior to 1763, the deeds must be executed bef<Jr~ a Notary _Public of the Province of Quebec, who keep the or11?mal and dehvers copies which are accepted as proof of the C(?nt~nts thereof and igint.ures to the ori{!inal deed. without any extr~ns1c proof. Deeds affecting real estate ceded by the English 9rown smce 1763 may he executed within or without the Province m the pre~ence of two sub.s ribed witne ses, one of whom must make an affidavit as t_o the execntion of the deed, which affidavit must be attached accore!mg t_o rules herein laid down. ( ee Affidavit, ::\-fortgages and Reg1Strat10ns.) Divorce. (See Husband and Wife.) Dower. Legal dower which results from marriage when no contract to the contr3:ry, con. ists o_f the u ·ufruct or life interest for the wife and tbe ownership for the children, of one-half of the immovables which belonged to ~he husband at the time of tho marria1?e, and of one-half of those which accrued to him during marriage from his father or mother or other ascendant . This right opens only at the death of th~ ~usband, unless _the contract of marriage provide.-; for dower, being exu~1ble on . eparat1on of property. Conventional dower exists on movable or unmovable property when provided for by the marriage c~ntract. It should be reiristered: in the ca e of legal dower re"'istrat10~ of the_ marriage certifkate, with de cription of the imm~vable sub_Ject ~o It, should be made. In the case of conventional dower reg1stra~1on of the contract o~ marriage is also required. Unregbtered dower rights do not affect third parties. Ew~·ution ma~, in all cases, be issued after fifteen clays from the r~nclermg of the Judgment.. In summary matters the delay is only eight days. It may, however. be taken before the expiration of these delay upon cau:es whkh would justify an attachment before judgment. J.;xcimt for tax.es, executions cannot issue against immovables ~J\8ai~1~gment 1s f01· a sum amounting to or exceeding 40, 0  ~iig6  _Exemptions fr~m Seizure. The debtor may withdraw from the seizure made of b1. movable property in execution of a judgment certain articles of furniture, which consi t generally speaking in the furniture and cooking utensils absolutely necessary for housekeeping (t?~ enumeration is contained in Article 59~ of the Queliec· Code of C1v1l Procedure). Immovables declared by a donor or testator or by law to be exempt from seizure and sums of money or objects given ~~eb~<;_~~t.~ei/ra~ i~h~,;g~?~tAii ~ \~_eir being exempt from seizure Generally speaking . alarles and wages are exempt from seizure for (a) four-fifths when they do not exceed 3.00 per day; (b) threefourths between 3.00 and $6.00 per day; (c) two-tblrds, when they do exce0<l Sli.00 per day. Husbnnd and Wife. Partiei may before marryiug remove themsel,:es from the effect of tl?e general laws of the province governing tbeu· property. as regarq · rights created by marriage, by entering into a •marriage contract, which must be made in notarial form and I , irrevocable. In this contract they may bind them.-:elve-; by all kinds of ?,greements not. contrary to public order or good morals. They cannot m any way after marriage, depart from the contract. even to confer benefits on each other. e.·ceµt that. the htLsband mav insure his life for the heneflt of his wife or children, and such in ·uranee can neither be seized hy nor asdgned to anybody eL·e unlc ·s both hushand and wife join in an assignment,. If no marriage contract was entered Into the law of tho ma.trimonial domicile governs. The matrimonial domkilo is the domicile of the hu ·hand at the time or marriage but if at the time of the marriage the husband's intention wn to ~ettle in this country and make his domicile hero, and ho doe.· so the law of this province would •ovcrn. When there i. · no antenu1;tlal contract of marrial-{0. there e. ists, community of property, which i,; In the nature of a partnership, and of which the husband I the head and ha-; t.he . ole control. Immo\·nble property belonging to either consort before marria11:c, or inherited from father, mother or other asc·endant, clu~ing marria •e, remains the private property of such consort, aud 1s excluded from the _community. . married woman cannot heco1:_1e a publir. tr~ulr~ wnhout the authorization of her hushand. \\ 1th this authon7.at1on >:he may obligato hor-.elf for all that relates tu her commer,·e, and 10 . uch ca c ·he also bind,; her husband. if there hA community hetween them. A wifo who i, not a puhli_,. trader, cann?t bind her. elf either with or for ii'er hu hand. othcrw1<:e than as !rnmg common_ as t.o property. ?eparation as to l_>ecl an<I ho~rd. whH'h cloC's not. d1~solve the marria e tie. i.· obtained tr9m the _tribunals for cause. It 1_11vl)l\·e separation a to property. Dn:orce 1s 011ly. granted by . poc1al act_ of parlianwnt of C anada. '!,;here are ~o U1Yorce < om_-t · n r la~~ 1t1 the Pr,wlnco of Quebec. hvery married p~r.·un ca~rymg on husme~s must re·•lster the particular~ of the financial relations between him a.ml hi. wife, and whether they are common or separated as to property. Intere,;t. The le"'al rate or inter t i · a per cent per annum but any intere.,;t may. be d1arge<I which the parties may lawfully agree upon. However, m loau · of le. · than .500, by a profe;~ ional moncylemler wherein the intere,-.t charged is more than 12 por cent per annum. the court may reopen th tran-:action and redure the amount, and, in any e':ent, give the debtor a delay t,o pay the intcrc. t. ;\lone>:· lenders chargmg more than 12 per cent intere. tare liable to one years imprisonment or 1.000 penalty. If there i ' no agreement upon rate, tho law fixes the rate of interest at 5 per cent. Corporations except  home and British insurance companies, and those constituted for religious, educational, and charitable purposes, in the provinces of Ontario and Quebec, cannot receive more than 6 per cent. Banks are not subject to any penalties for usury, but cannot recove1· more than 7 per cent. Judginents are valid for thirty years. In regard to moveable . executions thereon may issue in eight or fifteen days and sale effected in short delays. The registration of a judgment against the immovable property of the debtor operates as a mortgage claim thereon in the creditor's favor. It takes about a week to obtain judgment in either the superior or circuit court if the action be not contested. Legislature (meeting of). According to ection 86 of the British North America Act, 1 67, there ball be a se ion of the Quebec Legislature once at lea.<;t in every year, so that twelve months ·hall not intervene between the last sitting of the legislature in the province o special date in one session and its first sitting in the next session. for the regular meeting of the Legislature is fixed by law; it usually sits in the beginning of each year. Liens and Privileges. In cases of insolvency, the unpaid vendor of a thing has two privileged rights: A right to revendicate it, and a right of preference on the proceeds of the sale: but these rights mu t be exercised within thirty day- from the date of delivery. But, if the debtor is not insolvent, the creditor can only revendicate ubject to the condition!'; that the ale is not made on credit, that the thing sold is still intact and in the same condition. that it has not pas.! ed into the hands of a third party who has paid the price, that the revendication be exercised within eight days of the delivery, or thirty days in case of insolvency. He has also the right to demand the dissolution of the sale, for non-payment of the price, if the thing sold remain in po~ ession of the buyer; but in case of insolvency, this right can only be exercised during the thirty day next after delivery. Sale is complete by the consent alone of the parties, and before deliYery. The eller is not obliged to deliver the thing if the buyer does not pay the price, unless ~ term has been granted for the payment of it, nor, in the latter case, if the purchaser, since has become insolvent. A promise of sale. accompanied by actual delivery, is equivalent to a sale. The right of stoppage in transit may be exercised when the goods a1·e in possession of third parties as agents for their delivery. Wage earners, suppliers of materials, builders and al'chitects may obtain liens on real estate under the Statutes of Quebec, Limitation or Action . Judgments and registered titles to and claims a"ain t real property can only be pre cribed by thirty years, but possession under a translatory title as proprietor, and in good faith, of an immovable for ten years, covers defects of title. Actions in re.-titution of minors for lesion, in rectification of tutors' accounts, and in resci sion of contracts for error fraud, violence, or fear, are prescribed by ten years. After the same delay architects and contractors are discharged from warranty of work done or directed. Actions on bills of exchange, promissory notes, accounts, and generally all claims of a commercial nature. are prescribable by five years. Pre ·cription of corporate movables takes place after the lap e of three years, reckoning from the date of posse. sion, in favor of a po. es:,or in good faith. 'l'here are also certain short prescriptions of two years, and one Year, and statutory limitations. Prescription may be renounced or interrupted. Married Women. (See Husband and Wife.) l\Iortgages and Reg! tration. The common law mortga"e does not exist but has its equivalent in the "hypothec" which con titutes a charge or lien on immovables giving to the creditor the right to bring the property to judicial sale and to be paid by preference on the proceeds. The deed creating the hypothec must be passed before a notary  g~~~~ 0 fJt1:rrr;:11~~~~~~1t!1~ei~efj!~e~;~ i~o~g~  0   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  t  ,J,',  I'  I  1(: , ,.i t ;  ,  I,  •  I  ~gi~1fil:  SYNOPSIS OF  THE LAWS OF SASKATCHEWAN  f;~~:.g~~~K  deeds may be passed, either before a notary, or before two witne: ses, one of whom makes atndavit to the signatures, in order to prove their authenticity. Hypothecs can only be granted on real _e. tat~; they can not be given on movables or chattels except as provided m special statutes respecting hipping, banking and debentures issued by corporations under trust deeds duly registered. EITect may, however, be pledged by being placed in the bands of a creditor to secure his debt the lien created by the pledge exist· only so long as the thing remains in the hands of the creditor, or or a third party agreed upon by the creditor and debtor. Judgments giYe lien - only on the real property against which they are regi tered. • otes, Cheques, and Bills or Exchange. Bills of exchange and Pf~mL ~ory notes must be made payable in rponey, an~ must be uncond1t1onal and absolute. '£bey are tran. ferable by mdor ·ement and d_elivery, or, when payable to bearer, by delivery o~ly. When a particular place of payment is mentioned, not necessarily a bank, pre,entn1ent must be made there, and if not paid, the 0:ote mu t be protested for non-payment in order to bold the endorser. hable. If payable a_t a bank, presentment may be made either within or after usual bank111;g hours. \Vhen payable generally, i. e., when no place of payment, 1s mentioned in the instrument presentment must. be made to the party Primarily liable, either personally, or at his domicile, or oplre. or usual Place of bw,iness. If he be dead, or ab ·ent, from tile Pronnc~. pre.sentn1eut may be made at his last known residence or place of busme-"': . In t~e case of insoh-ency, all current paper of the insolvent ~ecome, unmed1ately due and exigible, The place of payment of a bill of e.·change may ho flxed by the acceptor in his acceptance. Thrc days of grace are allowed on all bills and note except tho:e payabl~ on deman~. If the clay on which they would otherwise become clue 1s a legal hoh~ay, the delay is of right extended to tlle next day. Payment 111!,1,St mclude interest, from the last day of graee and all expen, es of not.mg and !)rotesting- and notices legally incurred. In the case of bills payahle elsewhere than in Canada and ewfoundland. damages are a.Lo allowed equal to tbe costs of exchange and re-exchange. lndor,,ers and other parties s condarilY liable are only held by protest and notice. Pnrtnership1,1 must be registered, as also must ~ll per, o_n · carryi_ng on business alone under a namo difrerent from their own, m the.oIT(ce of the registrar and the protbonotary in each co1:1nty and d1str1_ct Where they <'arry 011 busin s ·. Joint sto~k comJ?amo · must bo registered in the same manner. Persons domg bus111e. under na~ue of another. the word "regist,ered" must be adcled. Tbc laws apphca~le to commercial partnerships are derived from the French and J<~nii:h h commercial laws. Partner:ship property must ~.o to payment of firm debts in preforenco to dobts of a partner, and _111 earn such property be founq insufficient for tbe purpose, the pnva~c property of the Partners or of any one of them is also to be applied to thu Jayme~t of the debts of the partnership; but only after the pa,rment out. of 1t 0/ the .-eparate creditor, of -ucb partner.· or _pa_rtnor respe•·uv~ly. I artner -hips may be limited or general. If !muted, the follov.mg declaration must be regist red: 1. The na:111e or firm of the partnership, 2, The general nature of tho bu-;1ness. 3. '.J'be names and r~s1dences respectively of all the general :n9- special partners .. 4. 'I he mat,rimonial status of the partners. .,_. rhe amount of. capital contributed by each. 6. 'l'he period at which the partnersh1T) ~om1!Je1:1ced and that of its termination. The _general partner.- m a lnnited partnership are jointly and severally liable for debts, hut the special partners are only liahle to t,he ext~nt of the amount they ~o_ntrihuted. If a.hove statement not reg1 ·tereq all partner,, are JOmUy and . overally liable. In general partnerships all partners are folntly and severally liable.  126  1  Successions. The surviving consort inherits one-third and the remaining two-thirds goes to the children or their de..:;cendants without distiuction of sex and whether issue of the same or different marriages. If there be no surviving consort, then the children or other descendants, inherit the whole estate, to tho exclusion of all other relatives. If the deceased die leaving no issue, but lea,·ing a consort and a father or mother, and collateral relations up t-o nephew· or nieces, the surviving consort takes one-third, the father and mother one-third and the collateral relations, the other third. If the deceased leaves no issue, but leaves a consort and a fat,her or mother or both. but leaves no collateral relations up to nephews or nieces, the surviving consort takes one-half and the other half devolves to the father or mother or both. If the deceased die leaving no issue, nor a mother or father, but leaves a consort and collateral relations, the consort takes one-half and the collat,eral relations the other half.· If a person dying without a consort or children surviving, leaving bis father or mother and also brothers or sisters, or nephews and nieces, in the first degree, the succession is divided into halves, one-half to the father or mother who share it equally anrl the other half to the brothers and sisters, nephews and nieces. The surviving consort succeeds to the whole estate when the deceased leaves no issue and bas no father or mother living, and is without collateral relations up to nephews and nieces in the first degree, inclusively. In all other cases ascendants inherit to the exclusion of collateral relations who must be within the twelfth degree to inherit in any case. ·when the deceased leaves no consort capable of inheriting, nor relations within the heritable degrees the succession falls to the crown. These different persons represent tbe deceased, and cla.ims against this estate hould accordingly be made against them. Wills. Wills may be made in three different forms: 1. In authentic form, to wit, pas ed before a notary public and two witnesse or before two notaries public. The original will, made in authei1tic form, remains with the notary, who furnishes certified copies thereof. 2. In holograph form, to wit, wholly written and signed by the testator; these wills require no witnesses, and a will so made in a foreign country disposing of property in the Province of Quebec would be valid in the latter, provided the testator has his domicile in the Prov• ince, or that the law of the country where the will .is made recognizes this form of will. 3. In the form derived from the laws of England to wit, before two witnesses, who attest and sign the will immediately in presence of the testator and at bi. request, and in the presence of each other. Wills made in authentic form need no probate, but those made in the other form must be probated. Any one can dispose 1 0 ~r 7~~~!t?:t b~es:i\f~i lx~fufir~ :~i~'fnfJd ~;le~o~e;;rii have possession of the movable estate of the te. tator, and are allowed a year and a day to carry· out the provisions of the will. They can be given the most absolute powers by the testator, and their seizing may be extended by the terms of the will to immovahles ,and beyond the year and the day allowed by law. Wills executed m a foreign country are void in the province of Quebec, unle s executed according to the laws of Quebec, or according to the forms required by the laws or the country where tbey are made.  RELATING TO  BANKING AND COMMERCIAL USAGES Compiled by CRos , JONAH, HUGG & FoRBEs, of the Saskatchewan Bar, Regina, Saskatchewan. (See card in Attorneys' List.) Note. The laws existing in the Northwest Territories prior to the formation of the two Provinces (Saskatchewan and Alberta) are still in force with alterations made by the Provincial Statutes.-Editor. (Revised to June 1, 1!)20.) Genernll 'all laws and all orders and regulations made thereunder so far as they are not inconsistent with anything contained in The sas: katchewan Act, or as to which this Act contains no provision intended as a substitute, therefor and all courts of civil and criminal jurisdiction and all commissions, powers, authoriUes and functions, and all officers and functionaries. judicial, administrative and mini Lerial, existing immediately before the coming into force of said Act in the territory thereby established as the Province of Saskatchewan, shall continue in the said Province as if said Act and the Alberta Act had not been pa.<;Sed: subject, nevertheless, except with respect to such as are enacted by or existing under Acts of the Parliament of Great Britain, or of tbe Parliament of tbe United Kingdom of Gr at Britain and Ireland. to be repealed, abolished or altered hy the Parliament of Canada, or by the Legislature of the said Province, according to the authority of the Parliament or of the said Legislature. 4-5 Ed. VII. c. 42, s. 16 (part), the Ra.-;katcbewan Act. A~si~n1nents. The only a,-;ignments for the general honofit of creditors 110 , valid are those made under tho pro, isions of the Bankruptcy Act !J-10 Geor~e . ch. ao which came into foree on the 1 ·t, Jul;\ 1!)20. Assignment so made arc known as "authoriz d assign~1t,;\ehfr?e~i~d1 by the pro,isions of tho llankruptcy Acl Any insohent debtor whose liabilities to directors exceed $/i00.00 may before Lhe making of' a receiving ordor against him mako an assignment of' all his property io an authorized trustee. An authorized trustee is a person or corporation appoint d by GoYernor in Council to act as trustee in ba.nk:rupt,clf and his authority is limited to the whole or part of a IJankruptl'Y d1stnct. An authorizc'd assignment vests the whole of the d 'l>~or's property (other than that part thereof which L e.·empt from s 1zure under the laws of the l'rovin('O ,~heroin th det,t~ll: resid~s (vidc Exempt-ions, infra)) in the trust e. The general provi 10ns ol tile lJankruptc:y . ct rola1mg to the admiuistrat.ion of the• debtor's estate, the proof of claims, pre:erential claims and distribution of es1atc apply equally to an authoriz<:'d assignment as to a bankTo~icc of tho a.<; -ignment must he publi:hed in the Canad<ruptcy. Gazettc and ma local ne\\spaper and at the :ame time a. notice of tho fi~t meeting of er. ditors must. also. be publbhed not l >ss than sL'C days pr10r t,o t_ho meeung. The execution of a'n authorized assignment is an ,~c~ of Hanhruptcy and may be tho foundation of a petition for a. rece1vmg order, An assignment having been made continues until the assignol' appli s ~o tho_ Bankrupt,cy ~ourt fot a diRchargo. This be may do at any time after thee_ ecution but it. cannot become effective sooner than three months after tho making of the assignment; and the court !'lay re~us . ~rant or ~uspend the operation of an order of discharge m 1t-; dt ret1on, l?½t m certain cases cannot grant a discharge. The penal prov1s1ous of the Bankruptcy . ct apply to an a'·signor as well as to a bankrupt. (.'ee also" Book Debt " and "Bulk ales.")  ~~irft~  N lJ  ,,  I  I  ·~  I  I  ·I  I I  t  I  J  ,.1:,1,  I  I  I I  1;  /'  ;1  I   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1990  BANKING AND COMMERCIAL LAWS-SASKA'fCHEW AN  three months following the execution of the assignment. His right to rank as ordinary creditor for unexpired t.erm of lease is restricted to rent for six months following executions of assignment if he has no preferential lien for any period subsequent to the assignment, and if he has any such preferential lien then to the difference between the period for which such lien exists and said six months. Attachment of Debt . The plaintiff in any action for a debt or liquidated demand before or after judgment, and any person who has obtained a judgment or order for the recovery or payment of money may issue a garnishee summons, which is issued upon the plaintiff or judgment creditor, his solicitor, or agent fl.ling with the clerk an affidavit showing the nature and amount of the claim or judgment, and swearing positively to the indebtedne s and stating to the best .of the deponent's information and belief the proposed garnishee (naming him) is indebted to suth defendant or judgment debtor. Service of such garnishee summons shall bind any debt due or accruing due, from the garnishee to the defendant or judgment debtor. No debt due or accruing to a mechanic, workman, laborer, servant or employee for or in respect of his wages or salary, shall be liable to seizure or attachment, unless the same exceeds $7 5, and then only to the extent of the excess. Provided that where the debt due or accruing due is wages or salary for a period of less than one month. The part thereof exempt from attachment shall be that sum which bears the same proportion to $75 as the period for which the wages or salary is due, or accruing due. beari:: to one month of four weeks. This exemption does not apply to debts for board and lodging. If the garnishee disputes his hability he shall enter a statement to that effect with the clerk; otherwise twenty days after service judgment may be signed against him. Bankruptcy. The Dominion Bankruptcy Act which came into force on July 1st, 1920, applie · to all the Provinces in the Dominion and the statement of its provisions set out elsewhere in this Yolume is equally correct for the Province of Saskatchewan. Bills of Sale and Chattel Mortgages. Bills of Sale and Chattel ~Iortgage not accompanied by an immediate delivery and an actual change of pos ession of the things sold or mortgaged, must be registered within 30 days from execution, with an affidavit of execution and an affidavit of bona fl.des, which varies according to the circumstances of the case. They take effect from the date of registration only. In case they are not registered. as provided for, or in case the consideration for which they are made is not truly expre sed, they are null and void as against creditors, and subsequent purchasers, and mortgages in good faith for valuable consideration. No mortgage, bill of sale, lien, charge, incumbrance, conveyance. transfer or assignment intended to operate or have effect as a security in so far as it assumes to bind or affect any growing crop, or crop to be grown, shall be valid, unless the same be as security for the purchase price of seed grain. There are special provisions relating to seed grain mortgages. C~ttel mortgages may be given on growing crops to extent of $250.00 ih the aggregate on the crops of a quarter section or $350.00 in the aggregate upon crops of a half section or any greater quantity of land as security for purchase price of meat, grocerie , fl.our, clothing, or binder twine. Such mortgages do not derogate from priority of seed grain mortgages. Certain special provisions must be complied with in taking the e mortgages. Mortgage flied cease to be valid as against creditors, etc., after two years, unless renewed. Further renewals after first renewal must be yearly. Renewal is made by statement in form prescribed, which shows interest of mortgages, assignee. etc., full statement of amount due. all payments on account. with affidavit of truth of the statement. In case of removal from one district to another three weeks are allowed to file copy of mortgage in office for district to which goods are removed. otice of intention to remove must be given to the mortgagee twenty days prior to removal. Any person failing to give such notice is liable to a penalty not exceeding $100.00. In the event of the permanent removal into the province of goods and chattels subject to a mortgage or bill of sale made without the Province, from a place where such goods and chattels were when such chattel mortgage or bill of sale was given, a copy of such chattel mortgage or bill of sale. and of the affidavits and documents and instruments relating thereto verified as compared copies, must be filed with the Registration Clerk of the district to which such goods and chattels are removed within three weeks of such removal. No chattels covered by any chattel mortgage may be seized or sold except by the Sheriff of the Judicial District within which such chattels, are situated or some other persons duly authorized by him for the purpose. Bills of sale and chattel mortgages given by railway companies, covering cars, equipment, rolling stock, etc., are not required to be filed with the Registration Clerk, but the same or sworn copies thereof may be filed with the Registrar of Joint Stock Companies within the prescribed time for filing chattel mortgage . and from the date of such filing shall have priority without renewal, affidavit of execution or of bona fldes. (Vide Exemptions.) Book Debt Accounts or Debts to be Incurred. .ru.signments of these by retail trader or merchant must be executed, attestea and registered as chattel mortgages. Bulk Sales. Whenever a sale of stock in bulk, i. e., out of the usual course of vendor's trade or business or of the entire stock in trade or of an interest in the vendor's busine or trade, the purchaser must demand and receive from the vendor a. verified statement showing the names, addresses, and claim of all creditors. Before paying to the vendor any part of the purchase money or giving any notes or security therefor, one of the following provisions must be complied with (1) the vendor must deliver to the purchaser a written waiver of the Act from creditors representing not less than 60 per cent in number and amount of claims as shown by said statement or (2) the purchaser must pay the whole purchase price and deliver all notes and securities for same to a trust company authorized to act as assignee under The Assignments Act for distribution among credit-Ors as shown by said ~~e!1;~nt·oicf~f!:~t~1!i~fio~~~l~~t ~~~ri~ frauduDecedent's E tate. An officer known as the Official Administrator is appointed for each Judicial Di trict, or such part thereof as may be desirable, who administers the e tate if no application be made for probate or administration within one month after decease of any person. He also takes po e ion of any neglected property of deceased. The executor, administrator or official administrator, advertises for creditors and in the advertisement sets a time within, which all claims must be filed with him. 11 claims must be verified by statutory declaration also state securities held and value thereof. Distribution is made after tin1e named in the advertisement. 'laimants not fl.ling within time limited do not share in the distribution, but may follow property into hands of person receiving same. dministrators and official administrator must pass accounts before the judge within two years after grant of letters. Devolution of Estates. Both real and personal property descend and are distributed in the same manner. The property of any man dying intestate leaving a widow but no issue shall belong to such widow absolutely, provided that prior to his death she has not left him and lived in adultery after leaving him. If he dies intestate leaving widow and child or children, the widow takea one-third and child or children take remainder in equal shares. f!!tit~e~\; t~~rs~~of1l'!!faf~;~tf!~ ~t~~~~;~~gd~:.Ce or The mother of any person dying intestate without a wife ,child or father shall be entitled to the whole. In the distribution of both real  ~1~' ~}~.  chfif~  and personal property of any woman dying intestate, illegitimate children shall have the same rights as if legitimate. In the event of an Illegitimate child dying Intestate and without issue. mother takes both real and personal property. If a married woman die intestate same rules apply as of husband dying intestate. If under will husband or widow takes less than if deceased had died intestate leaving children, husband or wife may apply to court of King's Bench for relief. Application must be made within six months or if husband has died since January 1, 1917 application may be made later with leave of a judge. Dower. No Transfer. Agreement for Sale, lease or other instrument intended to transfer or convey any interest in a homestead (i. e., the home) shall be effectual for such purpose and no Mortgage or encumbrance intended to charge any homestead with the payment of a sum of money shall be valid unles the same is signed by the owner and his wife if he has a wife. The wife must appear before one of several officers named in the Act separate and apart from her husband and have the instrument explained before signature by her and such official must give a certificate in the form pre cribed by the Act. Knowledge on the part of a transferee , mortgagee, encumbrancee, or le. ee that the land des<-Tibed in such instrument is the homestead and that the party executing the instrument has a wife who is not a party thereto, is fraud and in an action by the wife such instrument or any Certificate of Title issued thereon to any person affected by such fraud may be set aside and cancelled. On the death of the owner of a homestead no instrument signed by the personal representative shall be effectual to pass any estate or interest in the , ame or render it liable for the payment of any sum of money unless the same is executed by the wife as aforesaid so long as the homestead is exempt from seizure under execution. (Vide Exemptions as to circumstances in 'w hich homestead is exempt from seizure after death of owner.) Examination of Judgment Debtor. When a judgment or order is for the recovery or payment of money, the party entitled to enforce it can obtain an ex parte order for the examination of the debtor. or in the case of a corporation, of any officer thereof, as to whether any and what debts are owing to the debtor, and whether the debtor has any and what means of satisfying the judgment or order:. The examination is for the purpo. e of discovery only, and no order lS to be made on the evidence given. It may be used on any subsequent proceedings between the same partie , or between the execution creditor, and any transferee of the property and effects of the execution debtor, or in any proceeding to obtain payment directly or indirectly, whether by attachment of debts, equitable execution or otherwise. Execution. May issue immediately after judgment. An Execution expires in two years unle · renewed. Execution may be stayed on special grounds on motion to a judge, who may impose terms as to secutiry. etc. Exemptions. The following real and personal property of an execution debtor and his family are free from seizure by virtue of all writs of execution: 1. The necessary and ordinary clothing of himself and his family. 2. Furniture, household furnishings, dairy utensils, to the extent of five hundred dollars. · 3. The nece ary food for the family of the execution debtor during six months, which may include grain, fl.our, vegetables and meat, 0 0 0 eitfer j~~ai:~0 ~ 0~:s ~r ~i3~t: or any four of them, six cows, six sheep, four pigs, and fifty domestic fowls, be. ide the animals the execution debtor may have chosen to keep for food purposes, and food for the same for the month of November, December, January, February, March, and April, or for such of these months, or portions thereof, as may follow the date of seizure, provided such eizure be made between tbe first day of August and the thirtieth day of April next ensuing. 5. The harness necessary for four animals. one wagon or two carts. one mower or cradle and scythe, one breaking plough, one cross plough, one et of harrows, one hor e rake, one sewing machine, one reaper or binder, one set of sleighs, and one seed drill. 6. The books of a profe ional man. 7. The tools and necessary implements to the extent of 2oq used by the execution debtor in the practice of hi trade or profes.s1on. 8. Seed grain sufficient to seed all his land under cultivation not exceeding 160 acres, at the rate of two bushels per acre, defendl;l,nt to have choice of seed, and fourteen bushels of potatoes for plantmg. 9. The homestead, provided that the ame be not more than 160 acres; in case it be more the surplus may be sold subject to any lien or incumbrance thereon. The execution forms a lien or charge on the homestead, but sale cannot be enforced under the execution. 10. The house and buildings occupied by the execution d~btor, and also the lot or lots on which the same are situate according to the registered plan of the same to the extent of three thousand dollars. Any person who has executed a chattel mortgage on any o~ the chattels mentioned in paragraphs 4 or 5 shall in case of a seizure under such mortgage have the right to claim as exempt from such eizure and from sale any such chattels covered by said mortgage which cannot be so seized or old without depriving the mortgagor of the number or part of the number of the kind of such chattels as he might hold free from eizure by execution. A person cannot contract not to take the benefit of this provision. The debtor is entitled to choice from the greater quantity of the same kind of article . None of the above articles except food, clothing and bedding, when their price forms the subject matter of the judgment upon which the execution is issued, are exempt from seizure. No exemptions in case of execution issued upon a judgment or order for the payment of alimony, nor when debtor has ab conded or is about to abscond from askatchewan leaving no wife or family. In case of death of the execution debtor, the exemptions may be claimed, if the property i in the use and enjoyment of the widow and ch}ldrei:i, or widow, or children, of the decea! ed, and i necessary for then- maintenance and support. 1-~raudu.lent Conveyance . A judge may order the examination of an execution debtor and any transferee of any of hi property before an examiner. The creditor can then proceed by a summons in chambers and u e the examinations as evidenc to s t aside the conveyance as fraudulent. The Banrkuptcy Act also provides for the setting aside conveyances as fraudulent under certain circumstances e ·pecially when they have be n executed le. · than three months prior to the pre! entation of a bankruptcy petition or if the conv yance has the effect of giving any creditor a preference over other creditors. Insurance. Every person of the full age of 21 years has an unlimited insurable intere ·t in his own life and may effect insurance off his person for the whole or any part of his life for the benefit of himse1 • his estate or any other per::;on. If premiums paid on such insurance are paid with intent to defraud creditors. they may receive out 0 insurance money an amount not exceeding the premiums o paid an  1  J  intI~1a~c8:~~Y be effected by a parent upon the life of bis child under 21 years of age provided the child is at least one year of age at the time the insurance is effected. If the child dies under the age of 10 years the total amount of all insurance moneys payable on the death is limited by a scale set forth in the Act. A person not of the full age of 21 years but of the age of 15 ye1t{t or upwards may effect insurance on his own life for his own bene • for the benefit of a preferred beneficiary, or of a. father, brother or sister.  BANKING AND COMMERCIAL LAWS-CUBA Preferred beneficiaries constitute a class and include the husband, wife, children, grandchildren and mother of the assured. The assured may de ignate the beneficiary by the contract of insurance or by an instrument In writing attached to or endorsed on it or by an instrument in writing including a will otherwise in any way identifying the contract and may in the same way from time to time appoint or apportion the insurance money or alter or revoke the benefits or add or substitute any beneficiary or divert the insurance money wholly or in part to himself or his estate but not so as to alt er or divert the benefit of any person who is a beneficiary for value nor so as to alter or divert the benefit of a person who is of the class of preferred beneficiaries t o a person not of that class or to the as ured or his estate. If one of several beneficiaries dies in the life time of the assured and no apportionment or other dispo ition is subsequently made. the insurance shall be for the benefit of the surviving beneficiaries in equal portions if more t han one. If all beneficiaries so die and no other  ~~i:a  0  1~e t~es~~~~:ct ~~J>ct~~a~1o~ih3:t. 'fti~d~oen~~t Ts d~~!~~ft ifs for the benefit of the wife. or wife and children, or children, t he words "wife" and ' •children" refer to all those of the class living at maturity of the contra.ct and also children living at maturity of the contract of any child of the assured who predeceased him and the last mentioned children take the share their parent would have taken if alive. If a contract of in urance is declared to be for the benefit of a wife only designated by name, it shall be deemed to be for the benefit of the wife living at the maturity of the contract and all children of the assured living at such time as if the contra.ct had been declared to be for the benefit of wife and children generally. Where one or more designa.Led preferred beneflciarie die in the lifetime of the assured whether an apportionment has been made or not, the assured may provide that the share or share of the person so dying shall be for the benefit of the assured or his estate or any other person. In the ab ence of such declaration the hare of any per on so dying shall be for the benefit in equal shares of the survivors of such designated preferred beneficiaries except where the person dying ls a child of assured leaving children, in which case such children take share their parent would have been entitled to. Interest. The legal rate is 5 per cent, but any rate may be agreed upon. Justices of the Peace. These officials have jurisdiction through the Province. They have a limited civil jurisdicLion in matters between masters and ervants, and in regard to tre. pass of animals and estray animals and in recovery of debts not exceeding 100. Judgments. Where the claim is for a debt or liquidated demand, and no appearance is entered within the time limited, which varies, plaintiff can enter final judgment for claim and co ts. Appearance may be struck out on a four-day summons if defendant has no defence on the merits. No judgment can be obtained except by issuing writ and giving defendant opportunity to defend. Liens. Where goods over the value of $15 are sold upon condition that the right of property or possession hall not pass unti the payment of the purchase price, a copy of the agreement of sale with affidavit of bona fl.des must be filed in the registration district witnin which the purchaser resides, within thirty days, or the seller cannot set up his right against subsequent purchasers, mortgagees or creditors. There must be a sufficient description of the goods sold o that they may be readily and easily known and distingui. hed. In case the vendor repossesses the goodc; he must retain the same for twenty days before selling, during which time the purchaser may redeem, and he must al o give purchaser notice of the sale eight days before it takes place. Manufactured goods, having at the time of delivery thereof, to the buyer or bailee the manufacturer's or vendor's name painted, printed or stamped thereon or plainly att.ached thereto by a plate or similar device. a.re not within the provisions of the Act if such manufacturer or vendor (being the seller or bailor of such goods or chattels) keep an office in the Province where inquiry may be had and information procured concerning such sale or bailment, and if such manufacturer or vendor or the a.gent thereof gives such information within five days of request therefor made in person or by registered letter. Goods comprised in a lien note or conditional sale may not be removed into another registration district unless notice of intention to remove is given to vendor not less than twenty day before remov:a.L Any person violating this provision is liable to a penalty not exceedmg $100. (See also Mechanics' Liens.) Limitations of Actions. All actions for the recovery of merchants' accounts, bills. notes, and all a.ctio~s of debt grounded upon any lending or other contract without specialty shall be commenced within six years after the cause of such action arose. The provisions of The Real Property Limitation Act, 1874, being chapter 54 of the Statutes of the Imperial Parliament, passed in the 37th and 38th yea.rs of Her ~ajesty's rei!,P), a.re declared to be in force, and to have been in force smce the passmg thereof. Judgments outlaw in twelve yea.rs, and contract under seal in twenty Years. Married Women. They have all the rights and are su~ject to all liabilities of a femme sole, and may in all respects deal With land as th The Mechanics' Lien Act gives a. contractor, mechanic, labourer and material man a lien for work done or m~t~rial furnished upon the intere t of the owner m the erection, buildmg, land, etc. A labourer cannot sign away his r_ig~t to a. lien. The lien created by the Act has pri~rity over all judgn:ients, executions, assignments, attachments, garm ~ents. and receiving orders, recovered, issued or made after such hen_ arJSE! and over !ill conveyances or mortgage registered after regJstra.tion of such ~1en. The owner of the building, etc., upon wh_1ch the work Is bemg done must retain 20 per cent of the cost for thirty days after completion thereof. Every mechanic or labourer whose lien Is for wages shall to the extent of thirty days' wages have priority over all other liens. A claim for lien may be flied in the L~d Titles Office of the Land Registration District, in which the land is situ!)-ted. (a) By a contractor or sub-contractor durm_g the performance of . . the contract or within thirty days after completion. (b) For services during the performance of the services or within . . thirty days after completion. (c) For wages during the performance of the work or within thirty . . . days after last day's work. (d) For ma.terialc; at any time before or durmg th~ furnishing or Within thirty days after the furnishing of the last ma~er1al. Fallure to file a lien within the times above mentiimed or to commence an action within such times to enforce _such hen ~efea.ts such lien as against intervening parties becoming ~nt1tled _to a h_en or chai:ge upon the land whose claim in respect of sai~ land is reg1st~red prior to the registration of such lien and as agamst an owner m respect of payments ma.de in good fa.Ith to a contractor after the expiration of said period of thirty days and before any claim of hen is filed or notice . . thereof given to an owner. Once a lien is flied it remains In force until withdrawn or otherwise . removed by proceedings under the Act. The ta.king of security or recovery of a persona.I Judgment does not . merge the Uen. Proceedings to enforce a hen are taken in the District Court.  ~!~hu~~rrttms.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1991  Real Estate. The Torrens System has been in force in the Territories since the 1st January, 1887, and is continued in force in the Province. A certificate of title is issued to the owner. which is binding up~n all persons including the Crown, declaring that the owner is entitled to the estate mentioned in the certificate in the lands therein ~escribed s_ubject to the liens, encumbrances and interests mentioned m the certificate. The certificate is conclusive evidence. Whenever any dealing takes place in regard to the land the certificate must be proquced, and a _memorial of the dealing endorsed upon the certificate. No mstr~ment is of any eff~ct until registered, and cannot be registered without the production of the certificate. Persons entitled under u!lr~gistered in truments, or to equitable estate , etc., can protect their mterests by caveat. The whole matter is set out in "The Land Titles Act." Ch. 18 Statutes of Saskatchewan, 1917 (2d Session) and amendments. Wills. . Ever~ person may dispose of by will all real and personal property _mcludmg future and contingent estates to which he is entitled either at law or in equity at the time of his death. No will ma.de ~Y an_y person under the age of 21 years is valid. No will exceptmg wills of soldiers on active service and mariners at sea is valid unless it is in writing, and signed at the foot or end thereof by th~ testator, ?r by some other person in his presence and by his direct1<:m; such signature shall be made or acknowledged by the test!l-tor, m the presence of two or more witnesses present at the same time, who shall attest and shall subscribe the will in the presence of each o~her and of the testator, but no form of atte. tatioo is nece ary. Devise (other t han a charge for t he payment of a debt) to a witness or the husband or the wife of a witness, is void. but the witnes may prove the execution of t~e will. No will , codicil, or any part thereof, sha.~l _be revoked otherwise than by marriage. or by another will or cod_icil e~ecuted as above described, or by some writing declaring an rnt~ntion ~o revoke the same, and executed in the manner in which a :will 1s requ_ired to be executed, or by the burning, tearing, or otherW1se destroymg the same. by the testator, or by some person in his presence and by his direction with the intention of revoking the same.  SYNOPSIS OF  THE LAWS OF CUBA RELATING TO BANKING AND COMMERCIAL USAGES Revised by HuoH GROSVENOR & Co., Attorneys at Law, Havana. (See Card in Attorneys' List.) Actions. All actions in Cuban law may be generally grouped as follows : 1. Verbal action, brought in the municipal courts, and comprising all suits the a.mount involved in which does not exceed $300. 2. Actions of lesser quantity including those the a.mount involved in which Is greater than $300 and does not exceed $1,500. 3. Actions of greater quantity, in which the amount involved exceeds 1,500, or the value of which can be determined only by suit. The e actions of greater quantity al o include all questions as to political and civil rights, personal exemptions and privileges paternity divorce, as well as those concerning the civil status and condition o! persons. 4. Executory action, so called because the suit begins by the execution or attachment of the property of the defendant debtor. Besides this general classification there a.re special actions for ejectment, insolvency, ba.~ptcy adoption, injunction, general average, judgment by arbitrat10n, etc., etc., but the procedure in these special actions is governed almost entirely by the rules of the four general divisions. Affidavits. Affidavits as commonly used in the United States are unknown in Cuba. They cannot be used in any court proceeding: All sworn statements of fa.ct must be made before a competent court and not before notaries public. Aliens. Aliens re ident in Cuba and doing business there enjoy the same civil rights as natives. The Law of Civil Procedure provides for a foreigner's bond but this may be demanded only when the native defendant proves that in the count,ry of domicile of foreign plaintiff such a bond, to secure costs Is ' required,'..of Cubans. Arrest. There is no imprisonment for debt, either on actions of contract or tort, except in cases of bankruptcy and insolvency In which indications of fraud may have been shown. Courts are authorized, however, in all actions In which partle litigant have proceeded with recognized temerity either as parties plaintiff or defendant, to order the arrest on failure to pay costs caused by such temerity. Attachments. Attachments, before or at the time of filing actions, as distinguished from foreclosure proceedings after Judgment, are as follows· 1. Attachment at the time of filing executory proceeding. This attachment may be issued only by the Court on presentation of a document which in itself i a confession of debt, to wit: (a) A public document, I. e. one which has been duly executed before a competent notary public. (b) Any private document, the signature of which ~as been identified. under oath before a competent judge, by the signer. (c) Confession of debt before a competent judge. (d) Bills of exchange properly accepted and protested, provided that the accepter does not deny the authenticity of the acceptance at the time of protest for non-payment. (e) In certificates to bearer or lawfully registered certificates which represent matured obligations as well as the matured coupons of such certificates. (f) Original mercantile contracts made before a public agent or broker signed by the contracting parties and by such agent or broker, provided that the same a.re found to be Identical with the records of such public broker and have been legally executed. On presentation of any one of the foregoing documents execution will issue against any of the property of the debtor sufficient to cover the amount of the claim, and such attachment will endure until judgment unless debtor gives bond to release the same 2. Preventive Attac~ents: These are attachments whiC'h may be granted before filing smt, but before the order may issue it is nec61;sary· (a) That with the petition there be presented a document from which the existence of the debt is apparent. (b) That the debtor the attacho:ient of who. e property is requested, be in any one of the following circumstances: first, an unnaturalized foreigner; ff a native or a naturalized foreigner, that he have no known domicile or any real property, or an agricultural, industrial or mercantile establishment 11;1 the place where sued; or that even should none or the foregoing circumstances appear, if he has disappeared from his domicile or 0   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  199:.!  BANKING AND COMMERCIAL LAWS-CUBA  establishment, leaving no person in charge of the same or should the person in charge of it not know of hi whereabouts, or that there is some rational reason to believe that he will conceal or sell his property for le s than its true value to the prejudice-of bis creditors; second, if the document presented be a public document (see (a) of section 1) the attachment may i. ue immediately, but if it be private the attachment will issue only at the risk of the creditor who may give a bond; third, by Military Order Number 141 of 1900, it was provided that any merchant might secure the attachment of the property of any other merchant provided that the debt was the result of mercantile operations and that the person requesting the attachment should file a bond of not to exceed one-third of the amount of the claim. Suit must be flied within twenty days after tho issuance of this attach-  1  {gc!~ ~tf::hi~~r~~·  g}e;1;s~~~1;_~s~:~ ':~liif;~ t~f~a~~:g~~;i~s!~~~~! paymeut of the freight. All cargo is subject to the lien of the vessel during a period of twenty days after discharge, for payment of freights. Chattel Mortgages. Chattel mortgages are not known in Cuban law and foreigners doing business in Cuba would do well to make note of this fact. Personal property can be affected only 'by a contract of pledge, which is in substance the old Roman pignoratio vil'tually a contract of pawn. By this contract the possession of the chattel must be in the creditor, or in a third person named by the creditor. Property in the physical possession of the debtor and on which money has been loaned by the creditor is given to said creditor in pledge and a third party is appointed by the creditor who is supposed to have actual possession of the property, the property remaining in the meantime in the physical possession and use of debtor. This particular form of contract has not yet been te ted in the courts, but it is probable that if properly executed it would stand. Claims Against Estates ot Deceased Per ons. There is no fixed period within which claims against the estate of deceased persons must be presented provided such daims have not prescribed. If such claims are not presented during the period of administration of an estate they will still hold good against the heir unless such heir shall have accepted the inheritance under the benefit of inventory, in which case be cannot be held to pay debts which exceed the value of the property inherited by him; if the heir accepts the inheritance without the benefit of inventory he is liable both with the property inherited and all of his own property for all of the debts of the estate. The debts of the deceased not specially secured by mortgage, pledge, or otherwise, must be paid by the executor. administrator, or the heirs in the following order: (1) Debts preferred in favor of the Province or Municipality. (2) Judicial expen es. (3) Funeral expenses of the debtor and those of his wife or of such of his children as are dependent upon him if these last have no property of their own. (4) The expenses of last illness of said persons caused in the year prior to the death of the debtor. (5) Wages and salaries of clerks and domestic servants during the year prior to bis death. (6) Advances made to the debtor or to those of his family dependent upon him either in food or clothing and within the ame period. (7) Claims admitted by notarial instruments or approved by the judgment of a competent court. All other claims against the estate shall be paid only after the foregoing have been satisfied. Corporations. The only Corporation Law in force in Cuba (with the exception of the Railroad Law pa - ed by the Government of Intervention of 1902) is the Code ot' Commerce of Spain of 1885, which was made extensive to Cuba by Royal Decree of January 28, 1886; hence its provisions will be readily understood to be antiquated and not to cover modern developments of the Corporation. The corporation may be formed by two or more per ons by public document executed before a otary Public. This document must comprise the following requirements: ·ames of the organizers; name of the Company; capital stock, with a statement of the value given to the property brought in to the Company apart from cash, the number of shares into which the capital stock will be divided; term and conditions under which Treasury ·tock may be di •tributed, the form of disposing of same and the person or persons entrusted and authorized to di pose of it; term for which the Company is organized; objects of the Company; manner and form, and time of meeting of the General Stockholders Meeting, and manner and form of holding Special Meetings; statement of quorum necessary to decide on all questions. Besides the. e provisions, the Atricles of Incorporation, which are, in fact, the By-Laws of the Oompany, may contain such other stipulations as the organizers may introduce. Stockholders are liable only for the value of stock paid for or subscribed by them. These Articles of Incorporation. once executed before the Notary Public, are recorded in the l\lercantile Registry and also with the Department of Agriculture, Commerce and Labor. There is no fee for incorporation, but there is a Treasury tax equal to one fourth of one per cent ( ¼ % ) on the value of all stock actually issued and paid for without reference to the authorized capital stock. Corporations organized to operate railroad are subject to special Railroad Law in Military Order 34 of 1902. There is no State Charter nor any public functionary who may pass on the form of the Articles of Incorporation, nor is thet·e, generally speaking, any inspection exercised by the Government, over Corporations. Corporations. as such, pay no annual tax other than the municipal license, with the exception of banks, steamship and insur~nce companies, whicb are required to pay a tax on their net annual mcome. There is no provision for resident or native direct ors, !Jenee all or the Directors of the Company may be foreigners if desired. The right.s and privileges of stockholders are determined by the provision. and by-laws of the company, and not by law. A corporation is required to keep a minute-book, journal, ledger, and book of inventories and balance·. and a book in which shall be copied letlers and telegram. , all of which books mw;t be stamped before being opened, by the municipal court. . This provision has l>een found in most ca es to be impracticable owing to the use of modern loo e-leaf ledgers: There h_ 110 ~enalty attached to it, except that the books not kept m comfornuty with the laws may not be used as evidenc-o in the courts in favor or the Company. Foreign corporations ha viog a branch oillce in Uuba are required by law to record in the Mercantile Hegister a copy of their charter, amended charter. if such there be. and by-laws. 'l'her~ is D(! tax attached to this other than a nominal fee for the .Mercantile Register. Once recorded. they are on an equ~l plane with native ~ori?orations. There are special provisions reqwring 1:>oncls from formgn msurnace companies doing business in the Hepubhc. . All stock companies doing busines. in C~ba, whether native or foreign, must record in the ;\1 ercantile Register. power qf attorney granted to the manager of the company, showlllg spec1flcally the  po~~~~~kg1;o1!.;~~~ed by foreigners in native stock companies is not subject to reprisal in ca.-;e of war. Deeds. All documents in Cuba are either p~blic or private. Public documents or deeds are tho e authorized by a notary or competent public official, with the solemnities required by law. They are divided a.'> follows: 1. Public documents executed before a notary public.  1  2. Certificates issued by agents of the stock exchange and commercial brokers with reference to the records in their care. 3. Documents issued by public functionaries with reference to matters under their supervision. 4. :Minute-books, by-lawc;, regulations and other documents found in the existing public archives. 5. Birth, death and marriage certificates by the public registrar or by parish priests. Documents executed in foreign countries have the same value and force a those executed in Cuba, provided they comply with the following requirements. (a) That the subject matter of the contract be licit and permitted by Cuban law. (b) That the contracting parties are qualifled and have the legal capacity required by the laws of their own country. (c) That the forms and solemnities required by the laws of their own country have been complied with. (d) That the document shall have been legalized by a Cuban diplomatic or consular agent in the country where executed. Acknowledgment of deeds is unknown in Cuba. Deeds are executed before a notary public and not merely acknowledged. The entire document is prepared by the notary public in longhand and the original remains for thirty years in his archives and is then filed in the general archives of the tate. Deeds may be executed only before notarie public and in accordance with the notarial law; deeds so executed are binding evidence of their contents and may not be questioned by the signing partie . All transfers of real property, or contracts affecting real property or real rights, all powers of attorney, articles of incorporation, and all documents of whatever nature which must be recorded as a notice to third persons must be executed by and before a notary public. Depositions. Depositions are used in Cuban practice only in the case of witnesses resident without the jurisdiction of the court. They are taken by "exhortos" or judicial commissions, which are called letters rogatory when addre ed to foreign countries and may be }~ru~~Z::~~gj~~gfo ~l{!gct!~~ii~fc:"~~: Cuban law has no provision The interrogatories and cross-interrogatories of the exhorto are contained in the exhorto and arranged previously by consent of the parties. In no action may an exlwrto or commission issue without written interrogatories. Oral examination does not exist in Cuba in civil matters. Descent and Distribution. All property real and personal not devised descends as follows: 1. To decedent's lineal descendants without distinction of sex or age, and whether children by first or sub equent marriages. If lineal descendants are all of equal degree of consanguinity they inherit equally; if unequal degree they receive the portions which their parents, if living, would have received. 2. In default of the lineal descendants property goes to parents in equal portions. and in default of parents to grandparents. If there be but one parent he inherit the entire e tate. 3. In default of both de cendants and ascendants the e tate descendc; to natural children who have been legally recognized. 4. In default of all of the foregoing the e tate pa&:;e to collaterals in the following order: (1) If the deceased leaves full brothers and sisters, these inherit in equal parts. (b) If there are brothers or sisters and nephews or nieces, children of full brothers, such nephew and nieces take the shares which their parents if living would have received. (c) Half brothers receive one half of the share of full brothers. (d) In default of brothers or sisters and nephews or niece . the entire estate passes to the surviving spouse. (e) If there is no surviving spouse, the entire estate goes to the other collateral relatives. (f) If there be none of the foregoing person. all property reverts to the State. There is no distinction in the laws of descent between per:;onal and real property. NotwUhstanding the above provisions, the surviving spouse has the following rights in the property: If there be but one son, or i ·ue of one son, the surviving spouse shall have the usufruc!i of one third of the property during lifetime. If there be mo1·e than one son, the urviving spouse shall have the usufruct during lifetime of a share of the property equal to that ac1rif~~r~yb~n~grd:~e~J~;t~~- but only ascendant , the surviving spouse shall have also the right to one third of the property in usufruct. If there be neither descendan or ascendant . the spouse shall acq_uire the usufruct of one half of the estate. Divorce. There ls no divorce from the bonds of matrimony. The marriage may be declared null and void in the following cases: When contracted by persons who are legally disqualitled, as (1) malef.l under fourteen anct females under twelve year of age, (2) Persons non compos mcntis, (3) Impotent persons. (4) .. !embers of religiow; orders who have bound them. elves to chastity. (5) Tho ·e persons who are already married. {t.i) .·cendants and descendants, whethet· by consanguinity or affinity. (7) Collaternls within the second degree. (8) The adopter with the adopted per on. (!J) Those who have been convicted as principals or as accomplice for the death of a former consort. The marriage may be annulled also if contracted by e1·ror or by force, or between abductor and abducted. The only divorce known to the la" is the divorce a mensa et thoro which can be decreed on tho following i.trounds: (1) Adultery of the wife in all ca.seo;;, and that of the husband when it produces a. public caudal or the humiliation of th wife. (2) Assault and battery, or abusive lanizuaae when carrie<l to exce:· ·. (3) \ iolence used towards the wife by the hw;band to force lter to change her rC'llgion. (4) Attempt of the hw band to prostitule bis wife. (5) Attempt of either consort to corrupt the children. (u) A sentence of life imprisonment for either consort. Divorce may be applied for only by the innocent part:y. Tbe divorl'e carries , ·ith it the liquidation and divi ·ion of the communal property antl the separate administration by each consort of hi: of her own property. A divorce bill somewhat imilar to the law of France to-day ba.c; been pr sented to the uban ongrcss and has already pa.. ·etl the House of Representatives. It is expected that it Yill become a Ia.w bY the end of this year. Dower. Dower or curtesy as an ~-tate in property during covert,ure doec; not exi. t. The only rights of the surviving consort, are tbo e mentioned under Descent and Distribution. Evidence. The dill'erent clas · of evidence hich may be used are as follows: 1. Public documents, which are tho:e e. ecuted before a notarv or competent public ollicer, with the formalities pre eribed by iaw. uch 1locument . a-; to date and transaction covered by them, may not be disputed and are regarded as absolute eviden e. They may not be attacked or impugned by tho party executing th m as to tatements made hy him in said document.. 2. All private documents, which include letters. correspondence, books, photograph . telegrams, and all documents not e ecuted before a notary public or other competent public functionary. These documents are valueless as evidence until their author ·hip is proven. If the signature or a private document be denied by the igner it must be proven by expert . unles:· the court person lly examines same and atisfy itself as to the authenticity of the signature.  BANKING AND COMMERCIAL LAWS-CUBA 3. Confession or a depo-;ition of the party litigant. This confes. ion or deposition, although given technically under oath, does not bind the deponent to tell the truth. as there is no penalty attached to false . wearing by an interested party. The examination of such litigant is conducted by means of an interrogatory or list of questions prepared prior to the examination and flied with the Court. generally ma sealed envelope. The oath may be either decisive or indeci ive. In the former case all statements made by the liti~ant in answei· to Interrogatories propounded by his adversary are binding on the aid adversary; in the latter case such adversary may accept such statements as are beneficial to him and reject those prejudicial. 4. Personal examination by the court. This mode of proof is re orted to as a general rule only in tho e cases which treat of lands. titles or objects, the conditions of which do not change and which it will not be possible to produce in Court. 5. Expert testimony. Thi' class of evidence is mainly relied on to prove signatures, handwriting and values. Expert evidence may be given only by persons holding degrees from the niver ity of Havana or the Provincial Institutes, qualifying the holder as an expert. uch experts are usually a!')pointed by mutual consent, one being named by each party, and the third by the court in case of dissension. Their testimony is not binding on the court, which may accept the same at its own discretion. 6. ·witnesses. No party litigant may be examined in his own behalf, nor may bis parents, children or relatives by marriage within the second degree testify for him. The testimony of the following persons, while permitted, will not be taken into consideration by the Court unless sub tantiated by other evidence: (a) Relatives of tbe party litigant pre enting them, within the fourth degree either of blood or affinity. (b) Partner·, employes or servants of the litigant presenting them as witnesse,. (c) Persons having a direct or indirect interest in the suit or in another similar suit. (d) Persons who may have been convicted of perjury. (e) Intimate friends or known enemies of either of the litigant . The evidence of witnesses is taken by means of writing interrogatories prepared and filed in the Court at the time the evidence is proposed. The opposing litigant may file cross-interrogatories based on the interrogatories, at any time after the latter have been p1·e ented and prior to the examination of the witne · . There is no oral examination of witnesses. These interrogatories are propounded to the witne es by the Court and his replies reduced to writing. As a general rule, testimony o~~r~r~; i~:u8gi~~1oblug~g~iit\~~1a~yc1~1~~nce is not considered Executors and Administrators. Executors named under the will, if competent to act under the law, may perform all the duties of their office without the intervention of any court. They take possession of the property on the death of the deceased without any formality of letters testamentary. All persons capable of contracting may be executors, excepting married women, who may act only with the consent of their husbands, and minors, who in no case may act. Executors have all of the powers conferred upon them by the testator provided same are not contrary to law. If the testator has not specified the powers of the executors, they shall have the following powers: (a) To pay the funeral expenses of the defunct according to the dispositions of the will, and should there be no such di po itions, according to custom. (b) To pay all legacies which consist of cash with the consent and acquie cence of the heir. (c) To .ee that the testamentary di. po. itions are carried out, and, if necessary, to appeal to the courts to sustain such provisions in the will. (d) To take uch 0 f~~cat~tig~s ~i~~tie r:ie~f!'lv~~R~~l e~ret~dh~rr:trr \1:i~fer srt~fd not be enough money in the e tate to pay the funeral expenses and legacies, and the heir should not furnish u.fflcient money. the executors shall appeal to the court for permi ion to sell personal property, and if such should not be sufficient, real property. All of this hould be effected with the acquiescence of the heirs. If any minors, absent persons, corporations or public institutions are intere ted in the will all sales of the property shall be made by public auctions and with the authorization of the court. If no term be .fl.xed for the executor he shall complete his work within the term of one year from the time of taking charge of the estate or from the conclusion of all litigation concerning the validity of or nullity of the will or any of its di positions. The executor m~st render an exact account to the heirs of bis operations and if no heirs have been appointed he shall render an account to the court of the ~isposition made by him of the property. In case of resignation or mcapacity of the executot named in the will or if such executor nam~d ~hould refuse to accept the position the heirs shall see that the prov1S1ons of the will are carried out. If no executor be named in the will the heir· therein named may With or without the intervention of the court talce charge of the Property and comply with the testamentary provisions. . If no executor be named in the will the heirs named therem may without the intervention of the court act as administrator thereof; ho~ever, testamentary proceedings_ may be ins~it~ted by any of the heirs or legatees named in the will, the survivmg spouse, or any c~editor, provided he shall pre ent some written document in proof of his claim, and such heirs or legatees ll!-a~ no~ request te~tament3:ry Proceedings when the testator has prohibited 1t expre ly m the w1ll, nor may creditors whose claims are ecured either by property or by bond given by the heirs institute such proceedings. I~ case of te;Stamentary proceedings all of the property of the t~tat.07: 1s brought uito court, all of the parties interested in_ t]?e e tate are Jud~c1~1ly summoned, a.nd the court appoints an adm1mstrator. The u~-v_entory of t]?e Property and the distribution of, ame under the prons10ns (?f the will as won as the payment of all debts are effected by auth_or:1ty of tbe court and account is rendered to the court by thl:l adID1mstrator. In ca. e of int,e tacy and at the 1·eque. t of ascendant., de cendants, collaterals 01, creditors of the decea. ed the court take t~mporary charge of the estate app'ointiug immediately an executor-datn·e who e duties are to ·tal·e charo-o of the funeral and interment of t be defunct, take pos. e. sion ~f all his books, papers and corre. ponden~e and make an inventory of all the property, which prop rty i- placed m t~e charge of an administrator "ho shall give such bond as may be sattSfactory to the court. . . . The surviving pou e, if such there be. 1s entitled to the appomtme1:1t or administratol' of the property, and if there be none the court will appoint an admini.·trator generally from among tho ·e proposed by the relatives or creditor ·. · The administrator having been appointed and the Prl(Uary step~ taken to secure the property Jeft by decedent, the declarat10n of hems at the request of interested parties is made by the co~rt_. and tb;e declaration of heirship having been approved, the adnumstrator 1s t·eorded by the c0t.i'rt to render an account to them and to turn over to uch heirs all of the property, books and accounts of the estate the intervention of the court cea.,;;iug at this time. The court ~ay continue to intervene in the matter at the reques~ of any of the h~u'S, of the surviving spouse, 01, when any of the heirs arc mmors or at the request of creditors. . The administrator as such repre eut the estate 1_n 3:11 matters Judi ial !l.od extra judicial but mu t have the authorization of the court in order to ctispose of any of the property of the estate, and "UCh propei·ty, if of a. value of more than one thou _and dollars ~nay ~e sold only by public auction unless a.II of th~ :1te1rs and cred1tor:5 rntere.~tecl consent to a private sale. Tbe admtru t:ator renders h:u· account to the court at su h periods as tbe court prenou.·ly flxe upon.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1993  Both executors and administracor are allowed a compensation proport-ionate with the alue of the J>l'Operty administered and the income upon tho same. · The powers of the executor and administrator extend not only to property within the jurisdiction of the court hut to all the property real and personal of the deceased whether located in Cuba or in foreign countries. The executor and admini trator may delegate their powers in persons residing in foreign countrie., or persons interested in the estate may request the appointment of a special foreign administratoi· to take charge of the property situated in foreign countries. Exemptions. Salaries of public employes, pensions paid by the State, the Province or l\Iunicipality, may not be attached. Otherwise. attachment may be levied on salaries not exceeding $1,000 for the one-fourth part, of same; when from $1,000 to 2,250 the third part may be attached; and from $2,250 up, one-half may be attached. The bed of the debtor, and those of his wife and children, the wearing apparel of the same, and the tools used in his trade or occupation, are exempt from attachment. No other property is exempt. Infants. The age of majority is 23 years, of both men and women, although persons of 21 year of age or more may engage in commence provided that they are not subject to parental authority and have the free disposition of their property. Insolvency and Bankruptcy. The Cuban law distinguishes between these two classes of insolvent debtors, providing a special procedure for insolvents not merchants and another for insolvent merchants, the latter being known as bankruptcy. A decree of insolvency may be requested either by the debtor or by creditors who must show that at least two unsatisfied executions are pending against the debtor. The declaration of insolvency by the Court ipso facto renders the debtor incompetent to administer his property or to hold any public office, and such incompetency connd t~n¥i~!u~J~r1~~~~~:1iif~~~~f~;te~~~t~ cii~~a?e1i~~ Dg~~[~~ the proceedings his property is administered by receivers appointed by the creditors. These receivers take entire charge of the assets and liabilities of the debtor under the supervision of the Court, allowing claims in the order of precedence .fl.xed by law. They al o issue a verdict qualifying the insolvency as accidental, culpable or fraudulent, which verdict once approved by the court become final. A declaration of bankruptcy (referring to merchants only) may be reque ted either by the debtor or by creditors. Such declaration or decree has the following effects: (a) The arl'est and imprisonment of the bankrupt, unless he furnish bond fixed by the court. (b) .Judicial seizure of tbe property of the bankrupt, his books, papers and documents. (c) The appointing of a temporary receiver, who is placed in charge of the property seized by the Court and remains in charge until permanent receivers are appointed. (d) Publication of the bankruptcy in the "Official Gazette" and local papers. (e) Retention of the correspondence of the bankrupt. Bankruptcy is divided into three classes. 1. Fortuitous, or that brought about by a succession of events foreign to the will of the debtor. 2. Culpable bankruptcy, or that brought about through gross negligence, yet without apparent fraud. 3. Fraudulent, bankruptcy. However qualified, tbe banln·upt lo es by the declaration of baD;kruptcy his civil and political rights until they may be restored to him by a decree of the court. Fraudulent bankruptcy, as well as fraudulent insolvency, is punished severely by the Penal Code. The decree declaring bankruptcy ipso facto matures all outstanding obligations of the debtor. All acts of ownership exercised by the debtor which in any way tend to dispo e of or affect his property, committed subsequent to the date when the court decides him to have failed are null and void. The following contracts made within thirty days preceding the date of bankruptcy may be annulled: (a) Transfers of real property made without sufflcient consideration. (b) Dowries given to his daughters, in consideration of their marriages. (c) Tran fer of real property in payment of debts not yet due at the time of the decree of bankruptcy. (d) Mortgages given either for money loaneq or for merch!l,Ddise delivered, the delivery of which was not made m fact at the time of the execution and in the pre ence of the notary and witne es subscribing the deed of mortgage. (e) Donations inter vivos made subsequent to the last balance drawn prior to the bankruptcy, provided such balance show the liability to be greater than the assets. Creditors maY also demand and obtain the annulment of all transfers of real property made in the month preceding the declaration of bankruptcy, of dowries given to daughters of the bankrupt from property belonging to the bankrupt and his wife, or any other transfer of the property of the couple without a sufficient consideration. Interest. There is no usury statute not any limit to the rate of intere t which may be charged legally. In civil contracts, if no rate of interest is mentioned none can be collected, except from the date of filing suit until that of collection. In mercantile obligations, failure to pay at maturity makes the debtor liable for interest from the date of maturity of the obligation at tbe rate of either that mentioned in the contract or, no intere t being fixed, the legal intere t of 6 per cent. If no date is fixed for the fulfilment of a contract interest begins to run unless specifled in the contract, from date of prote t or filing of uit. Licenses. Practically every profe -ion, industry or trade mu t pay an annual license tax to tbe municipality and to the province for the privilege of doing busine • . These taxes are fixed in the case of the principal trades and professions by the central government, while tho e of minor importance are regulated by the municipalities themselve . Some of the annual taxes for the ( ity of Havana are as follows: bankers, $1,250; importers and exporters. wholesale, 1,250; coal dealer , $1,250; shipyard , 1,500: con ignees of vesi els, $375; insurance agents, $250; money changer , 187.,50; brokers, $125; tobacco manufacturers, $625; forwarding agents, $37.50; etc., etc. Foreign commercial travelers pay no licenses. Lien . Liens, a under tood in English common law, do not exist in Cuba, except with reference to vessel·. There is no lien of mechanics, laborer or builders, although tbe e persons have a preferential right against the owner of the property for such amount as he may be owing the contractor; but should the owner of the property dispo e of the same before satisfying obligation due these person. and before they have obtained attachment of the property there exists only a personal liability and creditors may not follow the property. (See Attachment .) Limitation~ of Action . Bills of exchange, drafts and promissory notes outlaw at three years from date of maturity; real actions on personal property, at six years; real action on real property, at thfrty years; personal actions, or the action on mortgages, at twenty years; all per onal actions which have no fixed term, at fifteen years. The following actions outlaw in fl.ye year : (a) For the payment of income for support. (b) For the payment of rents, whether derived from rural or from town property. (c) That of any other payments which should have been made annually or iq shorter periods.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  BANKING AND COMMERCIAL LAWS-CUBA  1994  The following outlaw in three years: (a) For the payment of judges, lawyers, registrars, notaries public, experts, agents and clerks for their charges and fees and the expenses and disbursements incurred by them in the discharge of their duties or offices in the matters to which the obligations refer. (b) For payments to apothecaries for medicines which they have supplied: to professors and teachers for their salaries and stipends for the instruction they have given, or for the exercise of their profession, art or trade. (c) For the payment of mechanics, servants and laborers the amounts due for their services, and for the supplies or disbursements they may have incurred with regard to the same. (d) For the payment of board and lodging to innkeepers, and to traners for the value of goods sold to others who are not traders, or who, being such, are engaged in a different trade. The time for the prescription of actions referred to in the three preceding sections shall be counted from the time the respective services have ceased to be rendered. The following actions outlaw in one year: (a) Actions to recover or retain po ession. (b) Actions to demand civil liability for grave insults or calumny, and for obligations arising from fault or negligence. 1\-farried ,vomen. Persons on contracting marriage may make their own agreements as to the management and administration of their property, but should they fail to make such provision they are understood as having married under the community agreement, by which husband and wife become equal owners in the property acquired by the couple during coverture, and each has a right to one half of said property at the time of the dissolution of the marriage bond, . whether from death or other cause. The husband is the representative of the wife, and without his permission she may make no contracts, even regarding her own property. The wife's property is divided as follows: (a) Her dot, which is composed of property given the wife because of her marriage, and such property acquired by her thereafter by ::rift, inheritance or bequest, provided that it be given as a part of the dot. (b) Paraphernal property, which is that property held by the wife at the time of her marriage, not included in the dot, and that which she acquired thereafter through her own labor or with her own capital. The husband may not dispose of this paraphernal property nor may he exercise any act with reference to it without the consent of the wife. The wife has the legal administratfon of such paraphernal property, but, without the consent of her husband, may not either dispose of it nor encumber it, nor appear in legal proceedings regarding it without the permission of her husband unle by special Court authorization. "\Vhile the husband is the legal repre.·entative of the wife, he may not dispose of the property constituting her dot without securing her fully as to any loss. In cases of eparation, the wife may acquire the sole disposition and control of her dot, her paraphernal property and her one half of the capital of the community property. Mortgage , Regt try of Deed , Land Lea es, Etc. All transactions regarding real property are governed by the Mortgage Law, which provide a plan of registration similar in es.sence to the Torrens system. All sale of real property or real rights, leases for a period of more than six years, all mortgages, and all rights in such property, as easements, servitudes, liens, encumbrances, usufructs, and the extinction or cancellation of such rights, in order to prejudice third persons, must be recorded in the Registry of Property for the judicial district in which the realty is situated. The registrars are empowered to examine all documents submitted to them for registry, and may suspend the inscription of or reject uch as in their opinion do not comply with the law. From these deci!"ions there lies an appeal to the civil courts. Registrars are appointed for life or during good behavior, are under heavy bond, must be attorneys at law, are paid solely by fees, and are responsible for their errors. Defects in title not apparent in the registry do not affect innocent purchasers, hence the registry is an absolute guarantee. All mortgages and all document. ubject to registry must be executed under seal of a notary public; and must pay the government transfer tax before being recorded. Foreclosure proceedings· The mortgage must contain a clause fixing a sum as the value of the property in case of foreclosure. With this deed and a certificate from the Registrar to the effect that the mortgage is still in force, the creditor makes application to the court for the sale of the property by public auction. r otice is er-ved on the debtor if his residence is known: if not, he I served by notice on the per·on in care of property, and be is allowed thirty days within which to pay debt and costs. At the expiration of said thirty days the property is advertised for sale in the "Official Gazette," the sale taking place twenty days thereafter. If there are no bidders, the mortgage creditor may bid in the property. otarie public are appointed by the Pre. ·ident, Notaries Public. not to exceed one for every five thousand inhabitants; they must be attorney at law, and their appointment· are for life, unless removed for misconduct. They are required to furni h heavy bond and are liable for errors due to carelessn · ·, gro s ignorance or wilful fault. (See Documents, Deeds, otes and Bill of Exchange.) Notes and Bill of Exchange. Cuban law is absolutely technical >n note and bills of exchange. A draft, or bill of exchange, in order to be regarded 8.." such in court, must comply with all of the following requirements: (1) Place, day, month and year on which drawn. (2) Dato when due. (3) ame of payee. (4) Amount. (5) Consideration, either of value received, value on account or value understood. (6) ame of the person from whom the amount of the draft i received or to whose account it i charged, if uch per ·on be other than the payee. (7) -ame of the person on whom drawn, as well as his domicile. (8) ignature of the drawer, or that of his duly authorized agent. If the draft lacks any of the foregoing requirements it will be ory note in favor of the holder, and for the ;~:~rif There are no days of grace. Endorsement: Endor ement must contain: (1) Name of endorsee. (2) Consideration: (3) ame of person or fl.rm from whom consideration is received or to whose account it is charged-if uch person should be other t,han the one to whom the draft is endor ed. (4) Date. (5) Signature of endorser, or of his duly authorized attomeY: in fa~. If all of the requirements in endorsement are comphed with, but date is omitted, tho title does not pass, but endorsee holds draft as  ~b.: J>:i:e~.  coii;~~gc;~~~~ement , i. e. those endorsements which have nothing other than the signature, and tho e endorsements in which. the consideration is omitted but which contain all of the other requirements, tr1ri::fg~tlia~~(!h:~ragerchant dealing with Cuba W(?uld be wi e in observing the law strictly. ~ ote that the draft contains all of the legal requirements and. especially, that the endorsement is full. As bas been said the blank endorsement transfers title, but Cuban courts have been in 'some considerable controversy over this point and it is safer to insert all details as above indicated.  1  Drafts not issued to order cannot be endorsed nor those which have matured and are dishonored. An accepted draft properly protested i considered by Cuban law as an executory document i. e., a document on which attachment may be levied by the creditor without presenting bond prior to filing suit. Power of ttorney. Powers of attorney must be special and specific. A general power of attorney to "act for me and in my place and stead, to perform all acts and things," etc., is valueless. ame, age (adult or minor), personal The power must how: (1) status (married or single, and, if married, to fir ·t or econd wife), ame and residence of occupation, and residence of grantor. (2) agent. (3) A specific statement of powers conferred upon agent, designating same separately. A power to sell and mortgage and "otherwise dispo.·e of or deal with property" does not include power to lease; one to sign does not include endorsing; a power to collect doe not cover power to sue, etc., etc. In the case of a power of attorney given by a partnership , the document must of itself show the following: (1) That the partnership i lawfully organized according to the laws of its domicile. (2) That the person executing the power of attorney in the name of the firm is an active partner at time of igning power, and pos ·e. ses. in accordance with the partnership articles of agreement the legal authority to sign the firm' name and bind it by his acts as partner. In the case of a power of attorney executed by a stock company. the document must show: (1) As in all other powers, the name and d&;cription of person executing document in repre ·entation of Company. (2) His offlcial capacity. (3) His authorization by the Board or Directors for the execution of the document,-generally shown by inserting in the power a literal copy of the minutes of the meeting in which he was authorized to execute it. (4) The powers of the Board of Directors to manage the busine. and affairs of the Company,i. e. the insertion in the document of those clauses of the by-laws or articles of incorporation which entrust the management to the board. (5) That the meeting of the Board or Executive Committee or other functionaries charged with the company administration, in which the resolution was passed authorizing the execution of such power or attorney by one of its officials, was properly called, that the necessary quorum was present and that the directors acting were elected such according to law. (6) That the company was organized in accordance with the laws of its domicile and is in existence on the date of execution of the power of attorney. (7) Specific statement of powers granted to agent. The document must be executed before a notary public and the signature and seal of the notary authenticated by a Cuban consul before it may be effective in uba. The ode of Commerce provides that all powers of attorney to agents or managers of merchants shall be recorded in the Mercantile Registry. ·wm . All persons of either sex of fourteen years of age or more, with the exception of tho e not in po ession of their mental faculties, may dispose of their property by will. Insane per ·ons may do so in lucid intervals on certificate of two physicians to the temporary sanity of testator. Wills may be either holographic, open or ea.led, or special, such as military, marine or foreign. The holographic will is that written by the testator personally. setting forth day, month and year, and his signature. Only adults uch a will must be filed with the may make a holographic will. Court of First In tance of te ta.tor's last domicile or re idence within five years after decea. ·e or will not be valid. The open will is that executed in the presence of a notary public and of three witne.- ·es who must ·ign together with testator. In case of imminent danger of death this will may be executed in the presence of five witn · ·es but without the notary. The sealed or clo ed will may be written by the testator or any other per ·on, the date and place being expr~ ed. If written in te -tator's handwTiting he will paraph each page and sign at end; if written by another, bis full signature must appear on each page. This will once igned i · placed in an envelope and so ealed that its contents may not be read except by breaking the seal: and i then taken to a notary public who, in the presence of five witne · es, receives the deposition of te tator that such . ealed package contains his will, and writes on the envelope this statement. also that all of the legal formalities have been observed. The will i then returned to the testator, the notary retaining a copy of the statement made by testator. Military and marine wills may be made before officers of the Army and Marine. 'ubans resident in foreign countries may execute their wills aither before uba.n diplomatic or consular authorities in accordance with Cuban law, or may ob erve the laws of the country in which they reside a to the form of will. Persons having descendants or ascendants living, or husband or wife. may not dispo e of such portion of their property as by operation of law vests in such de·cendants or ascendant· on their decease. Children and legitimate descendants are entitled to two-thirds of the property of the parent, who may, therefore, only dispo ·e truly of the remaining one-third. If there be no children but only ascendant.. their legal portion. or which the will may not deprive them, is one-half the hereditary estate, The widow or widower. who on the death of his or her spom;e is not divorced (separated), ,.·hall have a right to a portion in usufruct equal to Lhat corresponding by way of legal portion to each of the legitimate children or descendants; if there be only one surviving child or descendant the surviving pou e shall have the u ufruct of one third of the e ·tate; and the same portion in case there be no d ·cendants, but only ascendants: if there are neither d~scendant nor ~ cendants the urvivor receives one-half of tho estate 10 usufruct as his or her legal .. . portion. The law also makes special prov1 10n for natural children who may have been acknowlc<lged. J>robate; The open will needs no proba e nor judicial sanction unless attacked. The holographic will mw,t be filed with the 'ourt of Fir ·t In tanco of te ·tator's last domicile or residenc , and on proof of t ·ta.tor' · decea e ls opened bf the court in .the pre"enco 'lf the family and relativ · who shall be notified. The endence of three witnesse · who knew testator's r~~~~i;~f•b~rs~~Il~:~ut~ ~~;;:~~ handwriting e. perts, if satisClo ed wills must. also be probated. The proceeding being similar to that employed m case of holographic will.". The notary and w_ltne se before _whom te,:tator de~lared said clo" d packet to contain his will are exammed, if ahve, and if not or if not found other witne,· ·es acquainted with testator·. On approving will the court orders It filed, after being opened and rea<l, with a notary public. There are no further probate proceeding except in case. of contest.