TITLE XIII.

OF CORPORATIONS.

CHAPTER LXI. Of Banks and Banking.
LXII. Of Insurance Companies.

LXIII. Of Corporations Organized under Charters.
LXIV. Of Corporations Organized under General Sta-

tutes.

LXV. Of Railroad Corporations.

LXVI. Of Draining Corporations.

LXVII. Of Certain Powers and Liabilities of Corporations.

Loans and accounts with

States.

SECTION 1. That the President, Directors and Company of any incorporated bank in this State are authorized to make loans on banks in other negotiable paper, for any period not exceeding twelve months; and also to open an account and give a credit to any other bank or banks in any of the sister States.

SEC. 2. Such corporations shall have power to vest, 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 of the United States.

SEC. 3. If the bank notes issued by any bank, and in circulation, shall at any time exceed, for more than four successive weeks, three times the amount of gold and silver coin and bullion in possession

1817, VIII,36,21.

Investments in stocks. Ib., 22.

Amount of notes limited. 1855, XII,699.§6.

Penalty.

Weekly reports
to Comptroller
Gener 1.
Ib.

Penalty for failure. Ib.

Agents of for

eign banks not to

notes.

Ib., 25.

of the bank, or subject to its control, within the limits of this State, as its own property, such bank shall forfeit five hundred dollars for each and every successive week during which such excess shall continue, to be recovered by action at the suit of the State.

SEC. 4. In order that such excess, when it exists, may be apparent, it shall be the duty of the President or Cashier of every bank of issue, on Wednesday of every week, to transmit to the Comptroller General an account of the amount of bank notes of such bank in circulation; and also an account of the amount of gold and silver coin and bullion in the possession of the bank, or subject to its control, as its own property, on the next preceding Tuesday, which account shall be certified by the oath of the President or Cashier, taken before and certified by any officer duly authorized to administer oaths; and any person swearing falsely to any ac count shall be deemed guilty of perjury, and shall be subject to the pains and penalties thereof.

SEC. 5. Any bank, the officers whereof shall neglect to transmit to the Comptroller General any such account aforesaid, shall forfeit one hundred dollars for each and every day during which the same shall be neglected, to be recovered by action at the suit of the State.

SEC. 6. It shall not be lawful for any agent within this State of circulate certain any bank not having corporate existence within the State, to pay out of his said agency, and in the business thereof, or put into circulation, in the transaction of the business of the same, any bank note other than bank notes the issue of the bank of which he is agent, or of the banks having corporate existence within this State; and any such agent so paying out or putting into circulation any such forbidden bank notes or note, shall forfeit treble the amount of the bank note or notes so paid out or put into circulation, to be recov ered by action at the suit of the State, of which recovery the informer shall be entitled to one-half.

mutilated notes. 1822, VI,181,21.

Redemption of SEC. 7. That no bank now or hereafter to be incorporated in this State, shall be compelled by law to pay any of their bills which have 2 N. & McC., 464. been or may be hereafter cut in half or divided, unless both halves

Definition of

"bank note"

of said bill or bills is presented, or unless the person producing onehalf, and demanding payment as of the whole, shall first give bond and sufficient security to the said bank, as an indemnity against any loss or damage that may be sustained by the said bank, by paying the whole of said half bills to said person.

SEC. 8. For the purposes of this Chapter, the words "bank note" and bank of shall be understood to include all bills, notes, checks, and other ob1857, X11,632,26. ligations, of any bank, made payable to bearer on demand, or in any form of words whatsoever written, printed or engraved, so as to be

issue."

circulated and used as paper money or currency; and the words "bank of issue" shall be understood to include every bank having lawful authority to issue its own bank notes.

ters repealed. 1817, VIII,36,22.

SEC. 9. All parts of the Acts of incorporation granted to banking Repugnant charcorporations, repugnant to the provisions of Sections one and two of this Chapter are repealed: Provided, That nothing contained herein shall be construed so as to prevent the Legislature of this State from prohibiting the purchase of stock, as provided for by Section two of this Chapter, whenever it may be deemed expedient.

the

with Comptro

SECTION 1. No company or association which is now organized, To deposit bends or which may be hereafter organized in this State, to carry on ler General. business of insurance of any kind or kinds, shall proceed further 1869, XIV,304,¿1. with business or to business (as the case may be) until they have deposited with the Comptroller General of this State bonds or stocks of this State equal to the sum of fifty thousand dollars par value for each life insurance company or association, and twenty thousand dollars par value for each other insurance company or association. The Comptroller General shall hold such bonds or stocks as security for policy holders in said company or association; but, so long as any company or association so depositing shall continue solvent, the Comptroller General may permit such company to collect and receive the interest on such bonds or stocks so deposited.

SEC. 2. Whenever any company or association is, or shall become, fully organized, and the said company or association have deposited with the Comptroller General the requisite amount of State bonds or stocks, it shall become his duty to furnish the corporation or

Certificate of deposit may be use as evidence. Ib., 22.

Agent of foreign corporations to

and certificate of

attorney.

Ib., § 3.

association with a certificate of such deposit, which certificate, or duplicate thereof, certified by the Comptroller General, may be used in and be evidence for and against the corporation in all suits.

SEC. 3. It shall not be lawful for any person or persons, corporadeposit bonis tion or corporations, association or associations, to act within this appointment as State as agent, or otherwise, in receiving or procuring applications for insurance of any kind or kinds, or in any manner to solicit any one to insure, or in any manner to aid in transacting the business of insurance of any kind or kinds for any company or association incorporated by, or organized under the laws of this or any other State Government, or any foreign government, until such company or association have deposited with the Comptroller General of this State, for the benefit of the policy holders of such company or association, citizens or residents of the United States, bonds or stocks of this State equal to the sum of fifty thousand dollars par value for each life insurance company or association, and twenty thousand dollars par value for each other insurance company or association, (but so long as any company or association so depositing shall continue solvent, the Comptroller General may permit such company

To file Comp

troller's certifi

Clerk.

Ib.

or association to collect and receive the interest on such bonds or stocks so deposited,) and have appointed an attorney in this State on whom process of law can be served; and said attorney shall have filed with the Comptroller General a certified copy of the charter of said company or association, and also a certified copy of the vote or resolutions of the Trustees or Directors of such company or association appointing him the attorney of such company, which appointment shall continue until another attorney be substituted, which shall be done upon the death, removal, or incapacity to act of such attorney, or may be done by such company or association at any time.

SEC. 4. When the foregoing requirements, and such other recate with County quirements as may hereafter be required by law, shall have been complied with, the Comptroller General shall give a certificate to that effect, and also state the name of the attorney, which certificate, when filed in the County Clerk's office of the County where the agency is to be located, shall be the authority to commence business.

General to

turn bonds.

Comptroller SEC. 5. The Comptroller General shall safely and separately identical keep the bonds or stocks of each company or association, and shall return the identical bonds or stocks received; and, during the usual office hours, shall keep the bonds or stocks subject to examination of the representative of any company or association having made a deposit, as required by this Chapter; and the State shall be

Ib., 25.

responsible for the return of all of said bonds or stocks by the Comptroller General.

Agents to pro

nually; fee $5.

Ib, 204, 1.

SEC. 6. That it shall not be lawful for any agent of any insurance company in the United States, or any foreign State, not in- cure license an corporated by the laws of this State, to take risks or transact any business of insurance in this State, without first obtaining a license from the Comptroller General, which license shall expire on the thirty-first day of March of each year; and, for every such license, the company or agent taking out the same shall pay, or cause to be paid, into the Treasury of the State, the sum of five dollars, the same to be appropriated for the use and benefit of the State.

SEC. 7. That, before the Comptroller General shall issue such license to any agent of any insurance company not incorporated in South Carolina, there shall be filed in his office, by such agent, a certified copy of the charter of the company from which the said agent or attorney has received his appointment, and also a certified copy of the vote or resolution of the Trustees or Directors of said company appointing him such agent, accompanied by a warrant of appointment, under the official seal of the company, and signed by the President and Secretary. Such warrant of appointment shall continue valid and irrevocable until another agent or attorney has been substituted, so that, at all times, while any liability remains outstanding, there shall be within the State an agent or attorney as aforesaid; and shall contain a consent expressed, authorizing process of law to be served on said agent or attorney for all liabilities of every nature incurred in this State by said company, and that such service, made on such agent or attorney in the manner required by the laws of this State, shall be deemed legal and binding on the company or companies in all cases whatsoever, and that every judgment so recovered shall be conclusive evidence of the indebtedness of the company; and, in addition to said warrant of appointment, there shall be filed and published a statement, made under oath of its President or Secretary, showing its assets and liabilities, and distinctly showing the amount of capital stock, and how the same has been paid, and of what the assets of the company consist, the amount of losses due and unpaid, and all other claims against the company, or other indebtedness, whether due or not due at the time of the filing of the statement above, and shall further show:

1st. That said companies have fulfilled the provisions of their respective charters, and of the extensions and amendments thereto, in every particular, and whether there has been any change of charters since last statement.

Proceedings to obtain licenses. 1866, XIV,205,82.