Board (payment)

“ He has no election of payment, but is required to meet this liability, created by law for the benefit of creditors. Under § 5205 the amount paid is subject to the control of the board of directors in the continued operations of the bank. If the stockholders are to have a voice in making or declining to make the assessment, they may well hesitate to intrust more capital to the control of a board under whose management it has already been impaired. Certain powers are conferred by law upon the directors. ”

“ The bonds shall mature in periods of five years, and the board of equalization is authorized to levy a tax in an amount equal to one-fifth of the amount of their principal. The state treasurer is required to establish a bank bond payment fund into which shall be paid moneys received from taxation, from appropriations and from bank earnings. ”

“ That any national bank desiring to take out for issue and circulation an amount of national bank notes in excess of its paid-up and unimpaired capital, without depositing United States bonds or any other securities to secure the payment thereof, may do so to an amount not to exceed 100 per centum of its paid-up and unimpaired capital stock, provided the board of control of the commercial zone to which such bank belongs first gives its approval thereto. ”

“ The bank was never to suspend under twelve per cent. penalty; all the branches were responsible for each other; suits were to be against the State Bank; no stay of execution on judgments against it; it might receive federal deposits; lowest denomination $5, and, the Legislature might forbid notes for $10; the Legislature to elect a president for five years, and four directors, all removable by joint resolution; each branch to elect annually one member of the Central Board; the Central Board to control the branches, examine and inspect them, and distribute the capital. ”

“ It appears to me, that the bond must be received and approved by the board, before the cashier can regularly perform any official act. This reception and approbation are required by the law which enables the corporation to act. They cannot be dispensed with. That they have been performed must be proved or presumed. If they have been performed, they are upon record, for the very act of performance places them upon record. ”

“ If any branch becomes insolvent or disobedient or acts against the interest of the whole or of the State, the Central Board may appoint a receiver for it. All branches must make up a deficiency in liquidating any one. ”

“ The most important operation of a bank, is that of paying out its cash, and that the cashier or teller and not the board performs. As to committees of exchange, the board not being always in session, it is evident that the convenience of the public requires that there should be some authority at the bank daily, to pass daily upon bills, either in the sale or purchase, as the wants of the community require. ”

“ Any branch which does not redeem its notes is to be considered insolvent, and the Board of Control shall, upon examination, appoint a receiver and put the money in some solvent branch, with which to pay the notes, all the solvent branches contributing to this expense. ”

“ The one class may, under the laws of Congress and the laws of most of the States, be organized under general laws, and by the voluntary action of those desiring to associate for gain, and they choose their own trustees or directors. 'Banks for savings' are created by special charter, and the trustees or directors named by the legislature, and provision is made for the filling of vacancies in the management by the board itself. ”

“ Section 16. That before any member of a board of control enters upon the performance of his duties he shall sever all connection as officer or stockholder with every bank in his commercial zone, and he shall be ineligible to any position in any bank in his zone during the time for which he shall have been elected to serve.
Comment:—The Board of Control will be composed of a body of men who are younger than the Bankers' Council; but of the same high order. They will be men who have the undoubted confidence of the banking fraternity; men who are to win the prizes in the banking world. ”

“ On drawing accounts, a commission, usually an eighth per cent, is charged on all payments. The country banker on his part pays his London agent for the trouble which he occasions, either by keeping a certain sum of money in his hands without interest, or by allowing a commission on the payments made for his account, or by a fixed annual payment in lieu of the same. ”

“ From March, 1835, the chief control and management of the affairs of the institution appears to have passed from the hands of the directors. The mode in which the Committee of Exchange transacted their business shows that there really existed no check whatever upon the officers, and that the funds of the Bank were almost entirely at their disposition. That committee met daily and were attended by the cashier and at times by the president. They exercised the power of making loans and settlements to full as great an extent as the Board itself. ”

“ During their service or employment by the CBI, the Governor, Deputy Governors, other
members of the Board, and employees of the CBI shall not receive credit from any bank or
other entity subject to the supervision of the CBI, except with the prior approval of the
Board. The person to receive such credit shall not participate in any decision by the Board
concerning such credit. ”

“ The system of control over the expenditure of the Company's money is a very complete one. The general theory is that no expenditure whatever is incurred without the direct sanction of the Directors, expressed by a minute of some committee approved by the Board. The district officers are, indeed, allowed to make some small necessary payments, but even for these the vouchers are submitted monthly, and, after being carefully examined, are passed by the Finance Committee. ”

“ The custom of keeping the spare cash reserved for immediate use or against contingent demands, in the hands of a banker, and making all payments, except small ones, by orders on bankers, is in this country spreading to a continually larger portion of the public. If the person making the payment, and the person receiving it, keep their money with the same banker, the payment takes place without any intervention of money, by the mere transfer of its amount in the banker's books from the credit of the payer to that of the receiver. ”

“ When drafts have Bills of Lading attached, and the draft states on its face that it is payable on arrival of the goods, the bank can hold it until the goods arrive; but if the draft calls for payment on presentation, even though it has a Bill of Lading attached, the bank holding it, until the arrival of the goods, does so at its own risk. As has been stated, and it can't be stated too forcibly, the presenting bank has no option and must obey orders to the letter. If it does not, it must suffer any resulting loss. It is only an agent and can not regard the wishes of the payer. ”

“ By section 5136 of the Revised Statutes a national banking association is authorized 'to exercise by its board of directors, or duly authorized officers and agents, subject to law, all such incidental powers as shall be necessary to carry on the business of banking ”

“ The provision in the law that it shall be the duty of the auditor, treasurer, and the board, respectively, to collect the tax, pay the interest, and redeem the bonds, evidently means no more than that the auditor and treasurer shall perform their respective duties under the general laws in the assessment and collection of the tax, and shall pay in the usual manner the interest and principal of the bonds as they respectively fall due, and that the board shall purchase and retire the bonds whenever there is a surplus that, under the law, is to be used for that purpose. ”

“ Sections of Endowment Ranks shall be responsible and liable to the board of control for all moneys collected by the secretary or other officers from the members for monthly payments, assessments, or dues not paid over to the board within the time and manner prescribed by law. ”

“ The present superintendent of banks requires that the incorporators of a savings bank shall defray personally the expenses of the institution until its earnings are sufficient to meet such expenses, and also return dividends at the rate of not less than 3%. 'l' he board of trustees have entire control of the management of the bank. They elect the president and other officers. A trustee who borrows any of the bank's funds, or who becomes a surety for any other borrower, forfeits his office. ”

“ A rule no less stringent should be applied as between a banking association and directors representing the interests of stockholders and depositors. Subscriptions to the stock of a banking association, and deposits with it, are made in reliance upon the statutory requirement, which cannot be dispensed with, that its affairs are to be managed and administered by a board of directors, acting under oath, and with such diligence as the situation requires. ”

“ No bank may extend credit to a related person or senior bank official:
a. if, in the case of a domestic bank, the credit and its financial terms and conditions
have not been approved by the board of directors ”

“ The rules prescribe the mode with precision, and go so far as to direct, that 'at the request of any two of the board, the names of the members who make and second a motion, shall be entered on the minutes.' The bond must be offered, and the question ought to be put, and must be put, whether it shall be accepted. The acceptance is necessary to the completion of delivery, and is the only proof which can be given of that fact, unless it be delivered to an attorney, previously appointed by a board to receive it. ”

“ If they did not pay on demand, the holder might recover, as the law expresses it, 100 per cent. on the principal sum. An alteration was also made in the charter of the Bank of the State, providing that the Treasurer should cause $80,000 to be printed in treasury notes, in denominations from five cents to seventy-five cents, redeemable and re-issuable by the Treasurer, to be in part payment of the debt of the State to the bank. ”

“ There is nothing to prevent his making it for one hundred dollars, or fifty dollars, or ten dollars. There is nothing to prevent the use of bank paper; and the draft will have the number of signatures usual to bank paper. It will or may be signed by the treasurer, register, and comptroller.
Now, sir, let me suppose that a citizen has a demand upon the government for five thousand dollars, and applies to the treasurer for payment. On what receiver-general will you, he will be asked, have the amount? On the receiver-general at New York? ”

“ In point of practical effect, the board, or rather that fraction of the board which takes an active interest in the university's affairs, has been made up of a group of local business men engaged in divers enterprises of the kind familiar to men of relatively large means, with somewhat extensive interests of the nature of banking and underwriting, where large extensions of credit and the temporary use of large funds are of substantial consequence. ”

“ The members
of the board of directors of the bank shall not be liable to the bank’s shareholders, depositors,
or creditors for a good faith decision not to challenge the appointment of a conservator. ”

“ In accepting a note from a customer, do not have it made payable at your bank. Have the drawer make it payable in his own town and at his own bank. Demand for payment must be made at the exact place stated in the note. As every business man is particular about protecting his credit in his own town, and especially at his own bank, it is obvious that he will be most diligent about providing for the payment of paper made payable at the bank with which he is doing business. ”

“ But when the instrument is drawn upon a bank, or a person engaged in banking business, and simply directs the payment to a party named of a specified sum of money, which is at the time on deposit with the drawee, without designating a future day of payment, the instrument is to be treated as a check rather than as a bill of exchange, and the liability of parties thereto is to be determined accordingly. ”

“ Bank Commissioners to inspect the bank and certify that this has been done; no loan to be made to a director for more than half his shares; in a $100,000 bank no one person to owe it more than $8,000, and so on according to a scale; no loan to be made to an officer; debts, exclusive of deposits, not to exceed one and a-half times the capital; the circulation never to exceed the capital, and one-third of it to be held in specie; a State officer to register and countersign the notes, and to guard the limit for each bank as returned to him by the Commissioners; tax to be one-half of one per cent. ”

“ Powers: Of the nine directors of each Federal Bank, the Board appoints three, one of whom acts also as the “Federal Reserve Agent” through whom the Board and the Federal Banks communicate with each other; can remove directors of Federal Banks; in emergency, in its judgement, can suspend restrictions as to Federal Bank reserve; decides as to renewal of loans by Federal Banks and rate of interest to be charged from time to time on the Treasury notes and on loans. ”

“ An administrator of a bank shall cease the administrator’s functions at the bank if the
board of directors finds that the individual no longer meets one or more of the legal
requirements for the position as specified in Article 17, paragraphs (3) through (5) or Article
18, paragraph (4) , as applicable. The board of directors shall inform the shareholders of the
bank of such finding. ”

“ That there is, moreover, a board of directors, who hold their offices only for a year, and who, once a month or oftener, appoint a committee to examine the affairs of the bank, and especially to ascertain whether the amount of notes, securities, and specie, correspond with the accounts of the institution. ”