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CHAP. 186.
Fundamental ar-
ticles.
Capital stock to
be managed for
benefit of stock-
holders.
No director of any
other bank to be a
director of this
bank.
Amount of debts
not to exceed
double the a-
mount of capital
actually paid in—
Excess.
Notes may be dis-
counted any
length of time not
exceeding six
months.
Notes issued by
order of corpora-
tion to be binding
upon the same in
like manner as
upon any private
person, &c.
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acts, matters and things, as to them shall appertain under the
clauses of this act.
24. And be it enacted, That the following rules and provisions
shall form and be fundamental articles of the constitution of the
said corporation.
Article 1. That the capital stock of the North and South Branch
Bank of Potomac, at Old Town, Allegany county, shall be manag-
ed by the directors for the benefit of the. stockholders.
Article 2. No director of any other bank shall be a director in
this bank, nor shall any two persons, copartners in any kind of
business, be directors of this institution at the same time; two of
the directors elected by the stockholders shall go out annually.
Article 3. The total amount of the debts which the said corpo-
ration shall at any time owe, whether by bond, bill, note, or other
contract, shall not exceed double the amount of the capital actually
paid into the said bank, provided that the money deposited in the
said bank for safe keeping, shall not be considered as the debts of
the bank within the provision of this clause. In case of excess,
the directors under whose administration it shall happen, shall be
liable for the same in their natural and private capacities, and an
action of debt may, in such case, be brought against them, or any
of them, or their heirs, executors and administrators, in any court
of record of this state, by any creditor or creditors of the said
corporation, and may be prosecuted to judgment and execution,
any condition, covenant or agreement, to the contrary notwith-
standing; but nothing herein contained shall be construed to ex-
empt the said corporation, or the lands, tenements, goods and chat-
tels of the same, from being also liable for, and chargeable with,
the said excess; and such of the said directors who may have been
absent when the said excess was created, or may have dissented
from the resolution or art whereby the same was created, may res-
pectively exonerate themselves from being so liable, by forthwith
giving notice of the fact, and of their absence or dissent, to the
governor of the state, and to the stockholders, at a general meet-
ing, which they shall have power to call for that purpose.
Article 4. The president and director may discount notes or
bills at any length of time, not exceeding six months, but may re-
new the same from time to time, at pleasure; and shall not receive
on loans or discounts more than at the rate of six per centum per
annum.
Article 5. All bills and notes which may be issued by order of
the said corporation, signed by the president, and countersigned
by the cashier thereof, promising the payment of money to any
person or persons, his, her or their order, or to bearer, though not
under the seal of the said corporation, shall be binding and obliga-
tory upon the same, in the like manner, and with the like force and
effect, as upon any private person or persons, if issued by him or
them, in his, her, or their private or natural capacity or capacities,
and shall be assignable and negotiable in like manner as if they
were so issued by such private person or persons; that is to say,
those which shall be payable to any person or persons, his, her, or
their order, shall be assignable by endorsement in like manner,
and with the like effect, as foreign bills of exchange now are, and
those which are payable to bearer, shall be negotiable or assigna-
ble by delivery only.
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