Section 13. General Banking Law -- Provisions and Restrictions

General Banking Law -- Provisions and Restrictions

The Legislature may, by a two thirds vote, pass a General Banking Law, with the following restrictions and requirements, viz:
First, The Legislature shall have no power to pass any law sanctioning in any manner, directly or indirectly, the suspension of specie payments by any person, association or corporation issuing bank notes of any description.
Second, The Legislature shall provide by law for the registry of all bills or notes issued or put in circulation as money, and shall require ample security in United States Stock or State stocks for the redemption of the same in specie, and in case of a depreciation of said stocks, or any part thereof, to the amount of ten per cent, or more on the dollar, the bank or banks owning said stocks shall be required to make up said deficiency by additional stocks.”
Third, The stockholders in any corporation and joint association for banking purposes issuing bank notes, shall be individually liable in an amount equal to double the amount of stock owned by them for all the debts of such corporation or association, and such individual liability shall continue for one year after any transfer or sale of stock by any stockholder or stockholders.
Fourth, In case of the insolvency of any bank or banking association, the billholders thereof shall be entitled to preference in payment over all other creditors of such bank or association.
Fifth, Any General Banking Law which may be passed in accordance with this Article shall provide for recording the names of all stockholders in such corporations, the amount of stock held by each, the time of transfer, and by whom transferred.