Page:Iowa (codified).pdf/21

xxi

Sec. 5. Banking associations. No Act of the general assembly, authorizing or creating corporations or associations with banking powers, nor amendments thereto shall take effect, or in any manner be in force, until the same shall have been submitted, separately, to the people, at a general or special election, as provided by law, to be held not less than three months after the passage of the Act, and shall have been approved by a majority of all the electors voting for and against it at such election.

Sec. 6. State bank. Subject to the provisions of the foregoing section, the general assembly may also provide for the establishment of a state bank with branches.

Sec. 7. Specie basis. If a state bank be established, it shall be founded on an actual specie basis, and the branches shall be mutually responsible for each other’s liabilities upon all notes, bills, and other issues intended for circulation as money.

Sec. 8. General banking law. If a general banking law shall be enacted, it shall provide for the registry and countersigning, by an officer of state, of all bills, or paper credit designed to circulate as money, and require security to the full amount thereof, to be deposited with the state treasurer, in United States stocks, or in interest paying stocks of states in good credit and standing, to be rated at ten per cent. below their average value in the city of New York, for the thirty days next preceding their deposit; and in case of a depreciation of any portion of said stocks, to the amount of ten per cent. on the dollar, the bank or banks owning such stock shall be required to make up said deficiency by depositing additional stocks: and said law shall also provide for the recording of the names of all stockholders in such corporations, the amount of stock held by each, the time of any transfer, and to whom.

Sec. 9. Stockholders’ responsibility. Every stockholder in a banking corporation or institution shall be individually responsible and liable to its creditors, over and above the amount of stock by him or her held, to an amount equal to his or her respective shares so held for all of its liabilities, accruing while he or she remains such stockholder.

Sec. 10. Billholders preferred. In case of the insolvency of any banking institution, the billholders shall have a preference over its other creditors.

Sec. 11. Specie payments — suspension. The suspension of specie payments by banking institutions shall never be permitted or sanctioned.

Sec. 12. Amendment or repeal of laws — exclusive privileges. Subject to the provisions of this article, the general assembly shall have power to amend or repeal all laws for the organization or creation of corporations, or granting of special or exclusive privileges or immunities, by a vote of two thirds of each branch of the general assembly; and no exclusive privileges, except as in this article provided, shall ever be granted.

Analogous provision, see Iowa Code §491.39