Page:Revised Codes of the State of North Dakota 1895.pdf/1356

§§ 7515-7520 CHAPTER 58.

FRAUDULENT INSOLVENCIES BY CORPORATIONS, AND OTHER FRAUDS IN THEIR MANAGEMENT.

§ 7515. Fictitious subscriptions for stock. Every person who signs the name of a fictitious person to any subscription for or agreement to take stock in any corporation, existing or proposed; and every person who signs to any subscription or agreement, the name of any person, knowing that such person has not means or does not intend in good faith to comply with all the terms thereof, or under any understanding or agreement that the terms of such subscription or agreement are not to be complied with or enforced, is guilty of a misdemeanor.

§ 7516. Fraud in procuring organization. Every officer, agent or clerk of any corporation, or of any persons proposing to organize a corporation, or to increase the capital stock of any corporation, who knowingly exhibits any false, forged or altered book, paper, voucher, security or other instrument of evidence, to any public officer or board authorized by law to examine the organization of such corporation, or to investigate its affairs, or to allow an increase of its capital, with intent to deceive such officer or board in respect thereto, is punishable by imprisonment in the penitentiary not less than one and not exceeding ten years.

§ 7517. Unlawful use of names. Every person who, without being authorized so to do, subscribes the name of another to, or inserts the name another in any prospectus, circular or other advertisement or announcement of any corporation or joint stock association existing, or intended to be formed, with intent to permit the same to be published, and thereby to lead persons to believe that the person whose name is so subscribed is an officer, agent, member or promoter of such corporation or association, is guilty of a misdemeanor

§ 7518. Unlawful loans by bank directors. Every director of any corporation having banking powers, who concurs in any vote or act of the directors of such corporation or any of them, by which it is intended, either:

1. To make any loan or discount, by which the whole amount of the loans and discounts of the corporation is made to exceed three times its capital stock then paid in and actually possessed; or,

2. To make any loan or discount to any director of such corporation, or upon paper upon which any such director is responsible, for an amount greater than is allowed by law,

Is guilty of a misdemeanor.

§ 7519. Unauthorized loans not invalid. Nothing in the last section shall render any loan made by the directors of any such corporation in violation thereof, invalid.

§ 7520. Sale or pledge of bank notes. Every officer or agent of any corporation having banking powers, who sells or causes or permits to be sold, any bank notes of such corporation, or pledges or hypothecates or causes or permits to be pledged or hypothecated, with any other corporation, association or individual, any such notes as a security for a loan or for any liability of such corporation, is

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