676 THIRTY—SEVENTH CONGRESS. Sess. III. Ch. 58. 1863. Associations S1c0.37. And be it further enacted, That no banking association shall ¤°*l:° ***-1*** *h9l*`tz1l<e, as security for any loan or discount, a lien upon any part of its
- 2°10,;g_s§;`f1ty capital stock; but the same security, both in kind and amount, shall be
required of shareholders as of other persons; and no such banking association shall be the purchaser or holder of any portion of its capital nor own it, or stock, or of the capital stock of any other incorporated company, unless S‘°?k Pi °‘h°E "$‘ such purchase shall be necessary to prevent loss upon a debt previously gi;iw°u’ un €S°’ contracted in good faith, on security which, at the time, was deerned adequate to insure the payment of such debt., independent of any hen upon such stock; or in case of forfeitui·e of stock for the nompnyment of instalments due thereon, and stock so purchased or acquired, shall in no case be held by such association so purchasing for 21 longer period of time than six months, if the same can, within that time, be sold for what the stock cost. Qhnreholders Sec. 38. And be it further enacted, That in all elections of directors, "g;£l,9‘i_;';;’,;’° and in deciding all questions at meetings of shareholders, each sharezhm-c_° holder shall be entitled to one vote on each share of stock held by him; Proxies. 8lli\l`€l10l<l€I`S may vote by proxies duly authorized in writing; but no officer, clerk, teller, or book·l<eeper of such association shall act us proxy; and no stockholder whose liability is past due and unpaid shall be allowed to vote. Dl"°°'*°"S· Sec. 39. And be it further enacted, That the aflhirs of every such as- Number. socintion shall be managed by not less than five nor more than nine directors, one of whom shall be president of the association; every director shall, during his whole term of service, be at citizen of the United Residence States and zz resident of the state in which such association is located. At least three fourths of the directors shall have resided in the state in which such association is located one year next preceding their election Interest. as directors; and each director shall own in his own right, at least one per centum of the capital stock of such association not exceeding two hundred thousand dollars, and the half of one per ccntum of its capital if Oath. over two hundred thousand dollars. Each director shall take an oath that he will, so for as the duty devolves on him, diligently and honestly administer the aflidrs of such association, and will not knowingly violate, or willingly permit to be violated, any of the provisions of this act, and that he is the bond fide owner, in his own right, of the shares of stock standing in his name on the books of the association, and that the same is not hypothecated, or in any way pledged, as security for any loan obtained or debt owing to the association of which he is a director, which oath, subscribed by himself, and certified by the officer before whom it is taken, shall be immediately transmitted to the comptroller of the currency, and by him filed and preserved in his office. Term of 0§cg, Sec. 40. And be itfuriker enacted, That the directors of any such association first elected shall hold their places until their successors shall Election- be elected and qualified. All subsequent elections shall be held annually, on such day in the month of January as the stockholders of said association may prescribe; and the directors so elected shall hold their places for one year, and until their successors are elected and qualified. But any director removing from the state, or ceasing to be the owner of the Vacancy. requisite amount of stock, shall thereby vacate his place. Any vacancy in the board shall be filled by appointment by the remaining directors. The director so appointed shall hold his place until the next annual election; and if] from any cause, an election of directors shall not be made at the time appointed, the association shall not for that cause be dissolved, but an election may be held on any subsequent day, thirty days' notice thereof having been given in a newspaper printed, 01* of general circulation, in the city, town, or county in which the association is located, and if no newspaper is published in such city, town, 01: county, such notice shall be published in a. newspaper in the county adjoining.
