CHAPTER IV.

An Act to prohibit the issuing and circulating of unauthorised Bank paper.

Sec. 1. Be it enacted by the general assembly of the state of Ohio, That if any person shall, within this state, act as an officer or monied association, coming within the description contained in the second selection of this act, except a bank incorporated by a law of this state, he shall, for every such offence, forfeit and pay them the sum of one thousand dollars.

Sec. 2. Be it further enacted, That every company or association that shall lend money, and shall issue by their officer or officers, or by any other person or persons, bonds, notes or bills, payable to bearer or payable to order, and endorsed in blank, or use other shift or device, whereby the bonds, notes, or bills given by such company or association or on their behalf, pass or circulate by delivery, shall be taken and deemed a bank within this act.

Sec. 3. Be it further enacted, That every person who shall act as a president, cashier, clerk or director to any such bank, or shall in any respect assist in the discounting of paper or lending money for such bank, or in paying out or receiving money for such bank, or in any manner intermeddle for the benefit of such bank, with its concerns; and every person whose hand writing shall appear on the bond, bill, note or contract of such bank, whether as the drawer thereof, a witness or payee and endorser, shall be deemed and taken an officer of such bank within the meaning of this act.

Sec. 4. Be it further enacted, That if any person shall receive and offer in payment, the bond, bill, note or contact of any such bank, knowing the same to be unincorporated, payable to bearer or to order and endorsed in blank, he shall for such offence, forfeit three times the amount of such bond, bill, note or contract; and if any person shall receive and pass or circulate the bond bill, note or contract, of any such bank by delivery without endorsing the same, knowing such ban to be unincorporated, he or she so offending, shall forfeit and pay four times the amount of such bond, bill, note or contract.

Sec. 5. Be it further enacted, That all fines and forfeitures imposed by this act, may be recovered by action of debt or by indictment, or presentment of the grand jury, and shall go one half to the informer where the action is brought, and the other half in aid of the public revenue of this state; but where the same is recovered by indictment or presentment, the whole shall be to the use of the state.

Sec. 6. Be it further enacted. That in every such indictment or presentment, it shall be sufficient to state in substance, that the defendant on the day of at acted as an officer of a bank, not incorporated by law, or that the defendant on the day of at paid (or offered in payment, as the case may be) the bond, bill, note or contract, of a bank not incorporated by law, for the sum of dollars, without setting forth the special matter.

Sec. 7. Be it further enacted, That in very suit brought under this act, it shall be sufficient to set forth in substance the matter aforesaid, without setting forth the special matter.

Sec. 8. Be it further enacted, That it shall be the duty of the presidents, or in case of the absence of the president, it shall be the duty of the presiding associate judge of the different courts of common pleas of this state to give this act in charge to the grand jury.

Sec. 9. Be it further enacted, That all bonds, bills, notes or contracts, hereafter executed, which shall purport to be negociable or payable at such bank, shall be, and the same are hereby declared null and void; and all bonds, bills, notes or written contracts given to such bank, or discounted by such bank, or given to any other person or person, for the use of such bank either expressed or understood, or for the purpose of being discounted at such bank, or of obtaining money or the notes, bills or bonds of such bank, either directly or indirectly from such bank, shall be and are hereby declared null and void.

Sec. 10. Be it further enacted, That every such bank, and every trustee or person on its behalf or for its benefit, is hereby declared incapable of maintaining any suit in any court in this state, for any matter whatever, appertaining to such bank or for its use; and every suit in which it shall at any state therefore be made appear, that such suit is, in whole or in part, for the benefit of such bank, shall be dismissed with costs.

Sec. 11. Be it further enacted, that every stockholder, shareholder, or partner, hereafter interested in any such bank, shall be jointly and severally answerable in their individual capacity, for the whole amount of the bonds, bills, note and contracts of such bank, hereafter executed any agreement, shift or device, in such bond, bill, note, or contract or otherwise to the contrary notwithstanding.

Sec. 12. Be it further enacted, That the holder of any bond, bill, note or contract of such bank, may institute suit and recover judgment thereon, against any part or the whole of the persons who were interested in such bank, at the date of such bond, bill, note or contract, or who became interested in such bank, at any time between that and the commencement of such suit.

Sec. 13. Be it further enacted, That such suit, it shall be sufficient for the plaintiff to set forth in substance, that he is the holder of such bond, note, bill or contract; that the defendants were interested in said bank at the date of such bond, bill, note or contract, or consequently thereto, and that it remains unpaid: it shall be unnecessary to shew in the declaration or pleadings and unnecessary to prove on the trial, that a demand was made of the contents of such bond, bill, note or contract, at the time or place when and where it purports to be payable; but the persons aforesaid shall be liable without such demand.

Sec. 14. Be it further enacted, That if, during the progress, or on the trial of such suit, it shall appear that any one or more of the defendants are not liable to such action, under this act, it shall not prevent the suit from proceedings, as to any other defendant, but judgment shall be given for the full amount of such bond, bill, note or contract, against any one or more of the defendants, who may appear to be liable.

Sec. 15. Be it further enacted, That nothing in this act contained shall extend to any company incorporated by a law of this state, who may be authorised by the charter to loan money or otherwise to act as a bank, so long as the charter of such company remains in full force.

Sec. 16. Be it further enacted, That this act shall commence and be in force, from and after the first day of May next: Provided however, That time shall be allowed to all such private companies and associations now existing, till the first day of January, eighteen hundred and seventeen, for the sole and only purpose of settling and closing their business and accounts: And provided also, That the penalties and forfeitures herein acted, in the fourth and tenth sections of this act, against persons offering in payment, the bond, bill, note or contract, of such company or association, or bringing suit upon such bond, bill, note or contract, shall be suspended until the said first day of January, eighteen hundred and seventeen: And provide also, That such company or association may renew any note or notes, which may have been discounted before the passage of this act, until the said first day of January, eighteen hundred and seventeen: Provided nevertheless, That this act shall not affect the bank of Cincinnati the Lebanon Miami banking company, the Urbana Banking Company, the Columbiana Bank of New-Lisbon, and the Zanesville Canal and Manufacturing Company, previous to the first day of January, eighteen hundred and eighteen.

Sec. 2. And be it further enacted, That the sixth and eighth sections of the act to raise a revenue from banks, and to prohibit the unauthorised issuing of bank paper, be and the same are hereby repealed: Provided all suits instituted, all fines and forfeitures incurred, and all transactions had under the the aforesaid sections, shall be conducted, carried into execution, and money paid over in the same manner as if this act had not been passed; but nothing in this or the preceding section, shall be so construed as to permit any person or persons, company or association, to strike, issue or put in circulation any notes or bills, prohibited by the sixth and eight sections of the act to raise a revenue from banks, and to prohibit the unauthorised issuing of bank paper, or prohibited by this act, from the first day of May next until the first day of January next thereafter, nor to discount during the aforesaid period, any notes, bills or bonds, except such as may be given for the purpose of renewing notes, bills or bonds discounted previous to the taking effect of this act.

MATTHIAS CORWIN,

Speaker of the house of representatives.

PETER HITCHCOCK,

Speaker of the senate.

January 27, 1816.