final notice to the holders of the circulating notes issued by such bank or banker requiring the presentation thereof within six months after the date of the notice, and any of such notes which shall not be presented within the time thus specified shall cease to be a charge or claim upon the funds of such bank or banker remaining in the hands of the superintendent. Any such notes which shall be presented within the period above limited shall be received and paid by the superintendent at the same rate which shall have been paid on like notes previously presented, and if all the notes of any bank or individual banker so presented shall have been redeemed at their par value, he shall pay to such bank or banker, the residue of such funds remaining in his hands belonging thereto. If such notes shall not have been redeemed at par, then the holder shall be entitled to a certificate showing the balance, if any, due thereon. Id., § 75.

[Note.-Revised from L. 1882, c. 409, § 101. (See Birdseye's R. S., 1st ed., p. 190.) Without material change.]

76 Distribution of residue. At the expiration of the notice required by the preceding section, the superintendent shall ascertain the amount of the residue of the fund remaining in his hands belonging to the creditors of such bank or banker and after deducting therefrom the expenses justly chargeable thereon, he shall make a pro rata distribution of the residue upon the outstanding certificates given for the balance due to the holders of the circulating notes of such bank or individual banker, which shall have been redeemed in part, and he shall issue a notice to the holders of such certificates stating the rate or amount payable thereon, and requiring them to present the same within six months after the date of such notice. Any certificate not presented within that time shall cease to be a charge or claim upon the residuary fund in the hands of the superintendent. After making the final distribution herein directed, if any portion of such fund shall remain unclaimed, it shall be deposited in the treasury and applied toward paying the ordinary expenses of the banking department. Id., $76.

[Note.-Revised from L. 1882, c. 409, §§ 102-104. (See Birdseye's R. S., 1st ed., p. 191.) Without material change.]

77 Publication of notices. The notices required to be given by this chapter to the creditors of an insolvent bank or banker shall be published at least six weeks in one or more newspapers which the superintendent shall deem best calculated to inform such creditors, and the cost of such publication shall be defrayed out of the fund to which such notice shall refer. Id., § 77.

[Note. Revised from L. 1882, c. 409, § 105. (See Birdseye's R. S., 1st ed., p. 191.) Without material change.]

78 Redemption of notes held by banks and individual bankers. Any bank or individual banker receiving in the course of its business the circulating notes issued by any other bank or individual banker, may present such notes for redemption and payment in the manner and upon the terms herein provided, either to the lawful redeeming agent or at the counters of the banks or individual bankers issuing them; but every such bank or individual banker so presenting such notes for redemption, shall present all of such notes on hand at the time of such presentation either to the lawful agents or at the counters of the banks or individual bankers issuing them for redemption and payment in the manner provided by law as often at least as once in each successive week, when more than the sum of ten thousand dollars of such notes are held by the bank or banker presenting them for payment.

Any such bank or individual banker holding such circulating notes who shall elect to present the same for redemption and payment at the counters of the bank or individual banker issuing them, shall cause written or printed notice of such election, attested by the signature of the president or cashier of the bank or banker holding them, under seal, that all of such notes on hand at the time will be presented duly sealed at the counter of the bank or banker issuing them, as often at least as once in each successive week when more than the sum of ten thousand dollars is held by such bank or banker, to be redeemed and paid

in the manner required by law. When such notice shall have been given and received, such notes shall thereafter be presented at such counters and not elsewhere for redemption and payment, unless a further notice of ten days shall be given in the same manner that such notes will thereafter be presented for redemption and payment to the lawful redeeming agent of the bank or individual banker issuing them within the times and upon the terms prescribed by law. Any bank or individual banker may redeem, present, hold, pledge or exchange the circulating notes of any other bank or banker in the manner, within the times, and upon such terms conformable to the provisions of law as it may have been agreed upon.

Every bank or individual banker who shall knowingly and willfully neglect or refuse to comply with any provision of this section shall forfeit and pay to the people of the state the sum of one thousand dollars. L. 1892, c. 689, § 78. [Note. Revised from L. 1882, c. 409, §§ 106-108. (See Birdseye's R. S., 1st ed., pp. 191, 192.) Without material change.]

79 Banks closing business. Any bank, or its receiver, trustees or legal representatives, and any individual banker or his assignee, administrator, personal representative or successor, may give notice to the superintendent of the intention of such bank or individual banker to close the business of banking, and thereupon such bank or individual banker shall be entitled to deposit with the superintendent, and he may receive a deposit of, money equal to the amount of the outstanding circulation at the time of such deposit to be placed by him in some bank in the city of Albany, in good credit, upon the receipt of which the superintendent may return and retransfer to such bank or individual banker all securities in his hands theretofore deposited with him for the redemption of circulating notes by such bank or individual banker. Upon the receipt of such deposit the superintendent shall immediately cause to be published in the state paper and in at least one newspaper in the county where such bank or banker shall have been located or doing business at least once a week for six months, a notice that the notes of such bank or banker will be redeemed by him at par at the bank where such deposit is made, and that all the outstanding circulating notes of such bank or banker must be so presented for redemption within six years from the date of such notice, and that all notes which shall not be thus presented for redemption and payment within the time specified in such notice shall cease to be a charge upon the fund in the hands of the superintendent for that purpose.

After the expiration of such notice the superintendent may surrender to such bank or banker, and such bank or banker, or any receiver, assignee, trustee or legal representative thereof, shall be entitled to receive from the superintendent all the money remaining in his hands after such redemption, except so much thereof as may be necessary to pay the reasonable expenses chargeable against such bank or banker, including the payment for the publication of such notices. All circulating notes of such bank or banker which shall not have been presented for payment within the period prescribed in such notice shall, at the expiration thereof, cease to be a lien or charge upon the property of such bank or banker in the hands of any such receiver, assignee, trustee, or legal representative, and all liability of such receiver, assignee, trustee, bank or banker, for or on account of any circulating notes which shall not have been presented within such time shall cease.

Any such trustee, receiver, assignee, bank or banker may, after the full payment of all the circulating notes issued by them respectively which shall have been presented within the time required by such notice, and of all other lawful claims and demands against such bank or banker, divide the remaining property of the bank or banker among the stockholders thereof, their personal representatives or assigns, according to their respective shares or interest therein.

If the bank so designated shall at any time fail or refuse to redeem such notes at par when presented, they shall be protested as required by this chapter, and the superintendent shall thereupon, in the manner required in this chapter

for the redemption of circulating notes, provide for the redemption of such notes. Id., § 79.

[Note. Revised from L. 1882, c. 409, §§ 109, 110. (See Birdseye's R. S., 1st ed., pp. 192, 193.) Without material change.]

80 Proportionate amount of securities to be returned when notes are destroyed. On the return to the superintendent and the destruction by him of any of the notes of any bank or individual banker making a deposit as herein required, such bank or individual banker, or its legal representatives, shall be entitled to receive from him a proportionate amount of the securities so deposited. At the expiration of six years from the date of the notice given by the superintendent for the redemption of the circulating notes of banks closing business, such notes. shall cease to be a lien upon the securities so deposited, and the same shall be surrendered to the lawful claimant therefor. Id., § 80.

[Note.-Revised from L. 1882, c. 409, § 111. (See Birdseye's R. S., 1st ed., p. 193.) Without material change.]

81 Deposit of cash for redemption of notes. The superintendent may receive from any bank or banker a deposit of cash, pursuant to the provisions of this chapter relating to the deposit of cash by banks closing business, for the redemption of its circulating notes, without notice of intention to close the business of banking; but the bank or individual banker making such deposit shall continue to make the reports and statements and to publish the same as required of the banks of this state by the laws thereof, and be in all respects amenable to the banking laws of this state, as if in full operation as a bank of discount and deposit, until due notice and evidence of the discontinuance of such business of banking shall be given to the superintendent, which discontinuance shall require the concurrence of the owners of a majority of the shares of stock in the bank. This provision shall extend and apply to any bank that has heretofore made such deposit to redeem its outstanding circulation without having given notice of intention to close its business.

Any bank or individual banker having given such notice and made the deposit of cash or securities as required by law, may withdraw such notice at any time within two years after making such deposit, and may thereupon resume the business of banking under its corporate name and subject to the laws of this state; but such withdrawal shall not affect the redemption of its circulating notes previously issued according to the terms advertised by the superintendent as required by law, nor shall such bank be entitled to issue any circulating notes until the time for the redemption of its previous issue shall have expired. Id., § 81.

[Note.-Revised from L. 1882, c. 409, § 113. (See Birdseye's R. S., 1st ed., p. 193.) Without material change.]

82 Circulation of foreign bank notes prohibited. No bank or individual banker authorized to carry on the business of banking under the laws of this state shall receive, pay out, give or offer in payment, as money, to circulate or attempt to circulate as money, any bill, note or other evidence of debt issued or purporting to have been issued by any corporation or individual situated or residing without this state, and which bill, note or other evidence of debt shall, upon any part thereof, purport to be payable or redeemable at any place, or by any person or corporation within this state.

No such bank or banker or any person whatever within the state, directly or indirectly, on any pretense whatever, shall procure or receive, or offer to receive, from any corporation or person any bank bill or note or other evidence of debt in the similitude of a bank note, issued or purporting to have been issued by any corporation or individual situated or residing without this state, at a greater rate of discount than is or shall be at the time fixed by law for the redemption of the bills of the banks of this state at their agencies. No such bank or individual banker shall issue, utter or circulate as money, or in any way directly or indirectly aid or assist in the issuing, uttering or circulating as money within this state of any such bank bill, note or other evidence of debt issued or purporting to have been issued by any corporation or individual situated or residing without this

state, or procure or receive in any manner whatever, any such bank bill, note or evidence of debt, with intent to issue, utter or circulate, or with intent to aid or assist in issuing, uttering or circulating the same as money within this state. Any bank or individual banker may receive and pay out such foreign bank bills as it shall receive at par in the ordinary course of its business, and it may receive foreign notes from its dealers and customers in the regular and usual course of its business, at a rate of discount not exceeding that which is or shall be at the time fixed by law for the redemption of the bills of the banks of this state at their agencies, and may obtain from the corporations or individuals by which such foreign notes were made the payment or redemption thereof.

Every bank and individual banker who shall offend against any of the provisions of this section or of section eighty-three of this chapter, shall forfeit for each and every offense the sum of one thousand dollars to be recovered with costs in the name and for the use of any person who shall sue for the same. L. 1892, c. 689, § 82.

66

66

[Note. Revised from L. 1882, c. 409, §§ 114, 118, 119. (See Birdseye's R. S., 1st ed., pp. 194, 195.) The inhibition in the former law was against the bills, etc., issued by any foreign corporation, association or individual." There seems to be no definition of association which makes it synonymous with "corporation or "individual," as used in this section. See Statutory Construction Law, § 5. After the first sentence of the second paragraph the inhibition has been limited to banks and individual bankers. It formerly extended to all persons.]

3 Duer, 247; 25 N. Y. 165; 18 id. 240.

83 Notes not receivable at par not to be paid out. No bank or individual banker authorized to carry on the business of banking under the laws of this state shall directly or indirectly lend or pay out for paper discounted or purchased, any bank bill or note or other evidence of debt which is not received at par by such bank or banker for debts due to such bank or banker. Id., § 83.

[Note. Revised from L. 1882, c. 409, § 115. (See Birdseye's R. S., 1st ed., p. 194.) Without material change.]

25 N. Y. 168; 19 id. 39.

84 Bills or notes must be payable on demand.

No bank or individual banker shall issue or put in circulation any bill or note of such bank or banker unless the same shall be made payable on demand and without interest, except bills of exchange on foreign countries or places beyond the limits or the jurisdiction of the United States, which bills may be made payable at or within the customary usance, or at or within ninety days' sight, and, except certificates of deposit payable on presentation, with or without interest, to bearer or to the order of a person named therein; but no such certificate of deposit shall be issued except as representing money actually on deposit. Id., § 84.

[Note. Revised from L. 1882, c. 409, § 117, and L. 1886, c. 564. (See Birdseye's R. S., 1st ed., p. 194.) Without material change.]

21 N. Y. 490; 15 id. 9, 95, 96; 25 id. 163; 14 id. 162, 178; 3 id. 19; 7 id. 513, 328, 364; 17 id. 521; 1 Hill, 11, 12; 2 id. 241, 295: 4 id. 442; 7 id. 504; 3 Den. 70; 23 Wend. 104, 159, 190; 3 Barb. 222; 5 id. 9: 8 id. 233; id. 436: 17 id. 311, 320, 386; 18 id. 456; 26 id. 568; 4 Edw. Ch. 134, 139; 4 Paige, 224; 9 id. 471, 476; 10 id. 109, 113.

85 When bills of exchange to be without grace. All checks, bills of exchange or drafts appearing on their face to have been drawn upon any bank or individual banker carrying on banking business under the laws of this state, which are on their face, payable on any specified day or in any number of days after the date or sight thereof, shall be deemed due and payable on the day mentioned for the payment of the same, without any days of grace being allowed, and it shall not be necessary to protest the same for non-acceptance. Id., § 85.

[Note. Revised from L. 1882, c. 409, § 120. (See Birdseye's R. S., 1st ed., p. 195.) Without material change.]

49 N. Y. 278, 279.

86 Transfers of securities by superintendent to be countersigned by treasurer. No transfer of securities now held or hereafter received by the superintendent to secure circulation shall be valid or of binding force or effect unless countersigned by the treasurer of the state, or in his absence or inability to perform the duties of his office, by his deputy. The treasurer shall keep in his office or in the office of the superintendent of banks, a book in which shall be entered the

name of every bank or individual banker, from whose account such transfer of securities is made by the superintendent, and the name of the party to whom such transfer is made, unless such transfer shall be made in blank, in which case the fact shall be stated in such book; and the par value of any stock so transferred shall be entered therein, and the treasurer shall immediately upon countersigning and entering the same, advise by mail the bank or individual banker from whose accounts such transfer is made, of the kind of security and amount of the same thus transferred. The treasurer shall present, in his annual report to the legislature, the total amount of such transfers or assignments countersigned by him.

The treasurer shall at all times during office hours have access to the books of the superintendent of banks for the purpose of ascertaining the correctness of the transfer or assignment presented to him to countersign; and the superintendent shall have access to the book above mentioned kept by the treasurer during office hours to ascertain the correctness of the entries upon the same. Id., § 86. [Note. Revised from L. 1882, c. 409, §§ 121, 122, 124. (See Birdseye's R. S., 1st ed., pp. 195, 196.) Without material change.]

87 Unauthorized banking prohibited. No person unauthorized by law shall subscribe to or become a member of, or be in any way interested in any associa tion, institution or company formed or to be formed for the purpose of issuing notes or other evidences of debt to be loaned or put in circulation as money; nor shall any such person subscribe to or become in any way interested in any bank or fund created or to be created for the like purposes or either of them. No corporation, without being authorized by law, shall employ any part of its property, or be in any way interested in any fund which shall be employed for the purpose of receiving deposits, making discounts, or issuing notes or other evidences of debt to be loaned or put into circulation as money. All notes and other securities for the payment of any money or the delivery of any property, made or given to any such association, institution or company, or made or given to secure the payment of any money loaned or discounted by any corporation or its officers, contrary to the provisions of this section, shall be void.

No person, association of persons or corporation, except such as are expressly authorized by law, shall keep any office for the purpose of issuing any evidences of debt, to be loaned or put in circulation as money; nor shall they issue any bills or promissory notes or other evidences of debt as private bankers, for the purpose of loaning them or putting them in circulation as money, unless thereto specially authorized by law.

Every person, and every corporation, director, agent, officer or member thereof, who shall violate any provision of this section, directly or indirectly, or assent to such violation, shall forfeit one thousand dollars to the people of the state. Id., § 87.

46

[Note. Revised from L. 1882, c. 409, §§ 297-303. (See Birdseye's R. S., 1st ed., pp. 229, 230.) The provision as to assent to such violation formerly applied only to the matters contained in the second paragraph.]

15 N. Y. 70, 71, 97; 84 id. 190; 79 id. 437, 449, rev'g 18 Hun, 294; 2 Hill, 295; 4 id. 442; 8 Cow. 20; 3 Wend. 296, 583; 4 id. 652; Hill & Den. 259; 15 Johns. 388-390; 19 id. 1; 1 Sandf. Ch. 313; 77 N. Y. 64; 12 id. 505; 9 id. 351; 2 Cow. 664, 678; 10 Paige, 110; 11 id. 635; Anth. N. P. 235; 16 N. Y. 508; 14 id. 93; 4 Wend. 500; 17 id. 170; 25 id. 648; 6 Cow. 290; 5 Hill, 491; 6 Hun, 73; 64 Barb. 175; 2 Johns. Ch. 375; 4 id. 373; 2 Barb. Ch. 303; Clarke, 452; 4 Edw. Ch. 170; 116 N. Y. 441.

88 Restrictions as to foreign corporations. No foreign corporation, other than a national bank, shall keep any office for the purpose of receiving deposits or discounting notes or bills, or issuing any evidence of debt to be loaned or put in circulation as money, within this state. Id., § 88.

[Note.- Revised from L. 1882, c. 409, § 304. (See Birdseye's R. S., 1st ed., p. 230.) The words "other than a national bank new. Otherwise without material change, ex

cept as to form of prohibition.]

89 Restrictions as to banks and their officers. No bank in this state, nor any officer or director thereof, shall open or keep an office of deposit or discount other than its usual place of business.