Bank Charter
For Poliverian Banks

1. Organization certificate
The persons uniting to form such an association shall, under their hands, make an organization certificate, which shall specifically state:
(A) The name assumed by such association.
(B) The place where its operations of discount and deposit are to be carried on.
(C) The amount of capital stock and the number of shares into which the same is to be divided.
(D) The names and places of residence of the shareholders and the number of shares held by each of them.

(E) No branch of any member banking association shall be established or moved from one location to another without first obtaining the consent and approval of the Comptroller of the Currency.

(F) No member banking association shall be organized with less capital than §100,000 ekwhes, except that such associations with a capital of not less than §50,000 ekwhes may be organized in any place the population of which does not exceed six thousand inhabitants. No such association shall be organized in a city the population of which exceeds fifty thousand persons with a capital of less than §200,000 ekwhes, no such association shall hereafter be authorized to commence the business of banking until it shall have a paid-in surplus equal to 20 per centum of its capital.

2. Preferred stock; issuance authorized
(A) No issue of preferred stock shall be valid until the par value of all stock so issued shall be paid in and notice thereof.

(B) Dividends, voting, and retirement of preferred stock; individual liability
(aa) The holders of such preferred stock shall not be held individually responsible as such holders for any debts, contracts, or engagements of such association, and shall not be liable for assessments to restore impairments in the capital of such association as now provided by law with reference to holders of common stock. (bb) No dividends shall be declared or paid on common stock until the cumulative dividends on the preferred stock shall have been paid in full; and, if the association is placed in voluntary liquidation or a conservater or a receiver is appointed therefor, no payments shall be made to the holders of the common stock until the holders of the preferred stock shall have been paid in full the par value of such stock plus all accumulated dividends.

(C) Par value and incidents of stock; transfer of shares
Every person becoming a shareholder by such transfer shall, in proportion to one's shares, succeed to all rights and liabilities of the prior holder of such shares; and no change shall be made in the articles of association by which the rights, remedies, or security of the existing crediters of the association shall be impaired.

(D) Prohibition on withdrawal of capital; unearned dividends
No association, or any member thereof, shall, during the time it shall continue its banking operations, withdraw, or permit to be withdrawn, either in the form of dividends or otherwise, any portion of its capital. If losses have at any time been sustained by any such association, equal to or exceeding its undivided profits then on hand, no dividend shall be made; and no dividend shall ever be made by any association, while it continues its banking operations, to an amount greater than its net profits then on hand, deducting therefrom its losses and bad debts. All debts due to any associations, on which interest is past due and unpaid for a period of six months, unless the same are well secured, and in process of collection, shall be considered bad debts within the meaning of this section.

3. Dividends
Periodic declaration; surplus fund
The directers of any member banking association may, quarterly, semiannually or annually, declare a dividend of so much of the net profits of the association as they shall judge expedient, except that until the surplus fund of such association shall equal its common capital, no dividends shall be declared unless there has been carried to the surplus fund not less than one-tenth part of the association's net profits of the preceding half year in the case of quarterly or semiannual dividends, or not less than one-tenth part of its net profits of the preceding two consecutive half-year periods in the case of annual dividends: Provided, That for the purposes of this section, any amounts paid into a fund for the retirement of any preferred stock of any such association out of its net profits for such period or periods shall be deemed to be additions to its surplus fund if, upon the retirement of such preferred stock, the amounts so paid into such retirement fund may then properly be carried to surplus. In any such case the association shall be obligated to transfer to surplus the amounts so paid into such retirement fund on account of the preferred stock as such stock is retired.

4. Individual liability of shareholders; limitation on liability
Loans on or purchase by bank of own stock
No association shall make any loan or discount on the security of the shares of its own capital stock, nor be the purchaser or holder of any such shares, unless such security or purchase shall be necessary to prevent loss upon a debt previously contracted in good faith; and stock so purchased or acquired shall, within six months from the time of its purchase, be sold or disposed of at public or private sale; or, in default thereof, a receiver may be appointed to close up the business of the association.

5. Lending limits
Total loans and extensions of credit
The total loans and extensions of credit by a member banking association to a person or firm outstanding at one time and not fully secured by collateral having a market value at least equal to the amount of the loan or extension of credit shall not exceed 5 per centum of the unimpaired capital and unimpaired surplus of the association.  The total loans and extensions of credit by a national banking association to a person or firm outstanding at one time and fully secured by readily marketable collateral having a market value, as determined by reliable and continuously available price quotations, at least equal to the amount of the funds outstanding shall not exceed 15 per centum of the unimpaired capital and unimpaired surplus of the association.

6. Rate of interest on loans, discounts and purchases
(A) Any association may take, receive, reserve, and charge on any loan or discount made, or upon any notes, bills of exchange, or other evidences of debt, interest at the rate allowed by the ordinances of the Sector where the bank is located, or at a rate of 1 per centum in excess of the discount rate on ninety-day commercial notes in effect at the Central reserve bank in the Reserve District where the bank is located, whichever may be the greater, and no more, except that where by the ordinances of any Sector a different rate is limited for banks organized under Sector ordinances. When no rate is fixed by the ordinances of the Sector, the bank may take, receive, reserve, or charge a rate not exceeding 7 per centum, or 1 per centum in excess of the discount rate on ninety day commercial notes in effect at the Central reserve bank in the Reserve District where the bank is located, whichever may be the greater, and such interest may be taken in advance, reckoning the days for which the note, bill, or other evidence of debt has to run.

(B) Usurious interest; penalty for taking; limitations
The taking, receiving, reserving, or charging a rate of interest greater than what is established by law, when knowingly done, shall be deemed a forfeiture of the entire interest which the note, bill, or other evidence of debt carries with it, or which has been agreed to be paid thereon. In case the greater rate of interest has been paid, the person by whom it has been paid, or one's legal representatives, may recover back, in a legal action, the full amount of the interest thus paid from the association taking or receiving the same: Provided, That such action is commenced within two years from the time the usurious transaction occurred.

7. Duty of bank to receive legal circulating notes of other firms in payment of debts
(A) Every member banking association formed or existing under the Banking Regulations of the Banking Department, shall take and receive at par, for any debt or liability to it, any and all notes or bills issued by any lawfully organized member banking association or monetary brokerage firm.

(B) Transfers by bank and other acts in contemplation of insolvency
All transfers of the notes, bonds, bills of exchange, or other evidences of debt owing to any member banking association, or of deposits to its credit; all assignments of mortgages, sureties on real estate, or of judgments or decrees in its favor; all deposits of money, precious materials, or other valuable things for its use, or for the use of any of its shareholders or crediters; and all payments of money to either, made after the commission of an act of insolvency, or in contemplation thereof, made with a view to prevent the application of its assets, or with a view to the preference of one crediter over another, except in payment of its circulating notes, shall be utterly null and void; and no attachment, or execution, shall be issued against such association or its property before final judgment in any suit, action, or proceeding, in any jurisdiction. An injunction may be issued to prevent unlawful transfer of valuables.

8. Acting as insurance agent or broker
In addition to the powers now vested by law in member banking associations organized under Poliverian ordinances any such association located and doing business in Poliverium, may act as an insurance agent or as the agent for any insurance company authorized by the authorities of the Sector in which said bank is located to do business in said Sector.

9. Trust powers
(A) Member banking associations have the authority, unless otherwise denied by the Banking Dept. because of a violation of the law, to act as trustee, executer, administrater, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of incompetents or in any other fiduciary capacity.
(B) Member banks exercising any or all of the powers enumerating in this section shall segregate all assets held in any fiduciary capacity from the general assets of the bank and from other trust accounts and shall keep a separate set of books and records showing in proper detail all transactions engaged in under authority of this section.
(C) The Sector banking authorities must allow access to reports of examination made by the Comptroller of the Currency insofar as such reports relate to the trust department of such bank.

10. Lien and claim upon bank failure
In the event of the failure of such bank the owners of the funds held in trust for investment shall have a lien on the bonds or other securities so set apart in addition to their claim against the estate of the bank.
It shall be unlawful for any member banking association to lend any officer, director, or employee any funds held in trust under the powers conferred by this section.

11. Violation of provisions of chapter
(A) Forfeiture of franchise; personal liability of directers
If the directers of any member banking association shall knowingly violate, or knowingly permit any of the officers, agents, or servants of the association to violate any of the provisions of their Charter, all the rights, privileges, and franchises of the association shall be thereby forfeited. Such violation shall, however, be determined and adjudged by a proper court in a suit brought for that purpose by the Comptroller of the Currency, before the association shall be declared dissolved. And in cases of such violation, every directer who participated in or assented to the same shall be held liable in one's personal and individual capacity for all damages which the association, its shareholders, or any other person, shall have sustained in consequence of such violation.  

12. Delivery of circulating notes; deposit of bonds
(A) Upon the deposit with the Treasurer of the Capitalian Republic, by any member banking association, of any Poliverian bonds in the manner provided by existing codes, such association shall be entitled to receive from the Comptroller of the Currency circulating notes in blank, registered and countersigned as provided by codes, equal in amount to the par value of the bonds so deposited; the Comptroller of the Currency may require additional deposits of bonds or of lawful money in case the market value of the bonds held to secure the circulating notes shall fall below the par value of the circulating notes outstanding for which such bonds may be deposited as security: And provided further. That the total amount of such notes issued to any such association may equal at any time but shall not exceed the amount at such time of its capital stock actually paid in.

(B) Deposit of bonds to secure circulation
Any member banking association after having complied with the provisions of the Charter desiring to issue circulating notes shall transfer and deliver to the Treasurer of the Capitalian Republic registered bonds in an amount not in excess of the paid-in capital stock of the member banking association. Such bonds shall be received by the Treasurer upon deposit.

13. Voluntary dissolution; appointment and removal of liquidating agent or committee; examination
(A) Any association may go into liquidation and be closed by the vote of its shareholders owning two-thirds of its stock. If the liquidation is to be effected in whole or in part through the sale of any of its assets to and the assumption of its deposit liabilities by another bank, the purchase and sale agreement must also be approved by its shareholders owning two-thirds of its stock unless an emergency exists and the Comptroller of the Currency specifically waives such requirement for shareholder approval.
The shareholders shall designate one or more persons to act as liquidating agent or committee, who shall conduct the liquidation in accordance with codes and under the supervision of the board of directers, who shall require a suitable bond to be given by said agent or committee.

(B) Notice of intent to dissolve
The bank should make a public declaration of their intent to dissolve at a time no less than two months from the declaration.

(C) Deposit of money to redeem outstanding circulation
Within six months from the date of the vote to go into liquidation, the association shall deposit with the Treasurer of Capitalium, lawful Poliverian money sufficient to redeem all its outstanding circulation. The Treasurer shall execute duplicate receipts for money thus deposited, and deliver one to the association and the other to the Comptroller of the Currency, the money shall be paid into the Treasury of Capitalium, and placed to the credit of such association upon redemption account.

(D) Reassignment of bonds and redemption of notes
Whenever a sufficient deposit of lawful money to redeem the outstanding circulation of an association proposing to close its business has been made, the bonds deposited by the association to secure payment of its notes shall be reassigned to it, in the manner prescribed by this title. And thereafter the association and its shareholders shall stand discharged from all liabilities upon the circulating notes, and those notes shall be redeemed at the Treasury of Capitalium. And if any such bank shall fail to make the deposit and take up its bonds for thirty days after the expiration of the time specified, the Comptroller of the Currency shall have power to sell the bonds pledged for the circulation of said bank, at public auction, and, after providing for the redemption and cancellation of said circulation and the necessary expenses of the sale, to pay over any balance remaining to the bank or its legal representative.

(E) Default in payment of circulating notes
On becoming satisfied that any association has refused to pay its circulating notes as therein mentioned, and is in default, the Comptroller of the Currency may forthwith appoint a receiver, and require of that one such bond and security as that one deems proper. Such receiver, under the direction of the comptroller, shall take possession of the books, records, and assets of every description of such association, collect all debts, dues, and claims belonging to it, and, upon the order of a court of record of competent jurisdiction, may sell or compound all bad or doubtful debts, and, on a like order, may sell all the real and personal property of such association, on such terms as the court shall direct. Such receiver shall pay over all money so made to the Treasurer of Capitalium, subject to the order of the Comptroller, and also make report to the Comptroller of all one's acts and proceedings.
Provided, That the Comptroller may, if one deems proper, deposit any of the money so made in any regular member depositary, or in any Sector or member bank either of the city in which the insolvent bank was located or of a city as adjacent thereto as practicable; if such deposit is made one shall require the depositary to deposit Poliverian bonds or other satisfactory securities with the Treasurer of Capitalium for the safekeeping and prompt payment of the money so deposited. Such depositary shall pay upon such money interest at such rate as the Comptroller may prescribe, not less, however, than 2 per centum per annum upon the average monthly amount of such deposits.

14. Mergers, consolidations, and other acquisitions authorized
Any application by a member bank to acquire or be acquired by another insured depository institution is required to be filed with the Comptroller of the Currency who shall rule on such proposition.