State and Federal Bills of Credit, Etc. [pp. 455-485]

1853.1 Bills of Credit. 457
or persons holding the notes so issued, and may be prosecuted to
judgment and execution, any condition, covenant, or agreement to
the contrary notwithstanding.
Sec. 4. That after the issuing of the said notes, and until the same
shall be redeemed and funded in stock as aforesaid, the said Banks
shall respecti~~ely be entitled to receive from the commonwealth interest at the rate of one per cent. per annum, payable half yearly, on
the amount of stock subscribed by such Banks on the books of the
Auditor-General.
Sec. 5. That upon the. redemption of any of the said notes by
the Bank which may have issued the same, and the transfer of the
stock as hereinbefore provided, such Bank shall assume the payment
of the interest of the stock so transferred, at the rate of five per
cent. per annum, as the same shall become due and payable, and
~poa such assumption and payment of the interest by any Bank,
such Bank shall be relieved from the payment of tax on dividends
as now required by law; and if the amount of interest which may
at any time be paid on such stock by any Bank shall exceed the
amount of the tax on dividends to which such Bank may be liable,
in such case upon a certificate thereof from the president of such
Bank, venfied by his oath or affirmation of the fact being furnished
to the State Treasurer, it shall be his duty to repay such Bank the
excess so paid o~t of the proceeds of the revenue hereinafter specifically appropriated for that purpose; and in case the interest which
may be so paid by any Bank on such stock shall, at any time, be
less in amount than the tax on dividends to which such Bank may
be liable, such Bank shall pay into the Treasury all such excess of
the tax on the dividends beyond the amount of interest on il~e stock
which such Bank may have previously paid. Provided, that nothing in this act contained shall be construed to exempt any Bank
from the tax on dividends previously to such notes being redeemed
and funded.
Sec. 6. That on failure of any of said Banks to pay such interest,
on demand, at the time fixed by law, it shall be the duty of the
State Treasurer, on application for that purpose, to pay and discharge
the same; and on such demand and failure being proven, it shall
be the duty of the Governor, on ten days notice to such Bank, the
said interest remaining unpaid, to issue his proclamation declaring
the charter of such Bank forfeited.
(Sec. ~. Subscription limited.)
Sec. 8. All bills which may be issued under the provisions of this
act, shall be receivable for debts due this commonwealth, and may
be re-issued from the Treasury and from the Bank, which originally
issued the same, and each Bank which originally issued any of the
said notes shall receive the same in payment of debts due to it, and
on deposit, payable in like currency, and the respective Banks in this