This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1806 Excerpt: ...an amount greater than $10,000, or to put up collateral security of ample and undoubted market value, would not entitle them lawfully to borrow one dollar more than $10,000, as the law makes no exception in such cases, the limit applying solely to the amount of the loan without reference to its security. 2. If, before ...
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This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1806 Excerpt: ...an amount greater than $10,000, or to put up collateral security of ample and undoubted market value, would not entitle them lawfully to borrow one dollar more than $10,000, as the law makes no exception in such cases, the limit applying solely to the amount of the loan without reference to its security. 2. If, before the firm applied for a loan, John Smith or any one partner had borrowed $10,000 for his individual benefit, then it would not be lawful to loan anything to the firm, for their limit for "money borrowed" would have already been exhausted by the loan to such member of the firm. 3. It is questionable whether it would be lawful in such a case for the bank to loan any money on the paper of any person, firm, or corporation, with John Smith & Co., as indorsers of such paper, if it were known that John Smith & Co. were directly to get the benefit of the money so borrowed, for this would appear to be an evasion of the law; but if any person, firm, or corporation, whose paper was indorsed by John Smith & Co., wanted to borrow money on such paper for his or its individual benefit, the fact that it was indorsed by John Smith & Co. would not make a loan to such person, firm, or corporation unlawful. 4. In case John Smith & Co., as a firm, had borrowed no money of the bank it would be lawful to loan to each member of the firm, upon his individual credit and responsibility, an amount equal to the limit, provided the money so borrowed by each partner was for his individual benefit, and not for the benefit of the firm. 5. Again, if John Smith & Co. had "borrowed money" up to the limit, and any other person, firm, or corporation should choose to borrow money of the bank upon his or its own responsibility and credit, i...
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