Volume 2 - ElectricCanadian.com

394 HISTORY OF THE BANKwas given, and the Act 1 was proclaimed in Canada on July 22of that year.In the legislative charter the original articles of associationwere very closely followed, and thus became virtually thefirst Act of Incorporation. As a chartered corporation thebank was now a legal entity, with all the rights and obligationsincidental thereto. Thus, under its new status, the bankbecame liable for its debts only to the extent of its resourcesas a corporation, and consequently the elaborate conditionsrequired to limit the obligationsof the shareholders in theprivate company were no longer necessary and were dropped.The directors, however, remained liable for any obligationsincurred in excess of the limits prescribed in the Act.The limitations placed on the bank as to the nature of thebusiness in which it might engage remained practically thesame, but a few points were rendered more explicit. Thusthe real estate allowed for the use of the bank was limited to anannual value of 1,000. The bank might, without process oflaw, sell shares which had been pledged to it and not redeemed;it might charge any rate of interest up to six per cent., but wasnot to lend money to a foreign state. The denominations of thenotes to be issued were still not specified. Penalties forembezzlement by the employees of the bank, for counterfeitingor forging the notes, bills of exchange and other obligations ofthe company were added; but as such penalties materiallyaffected the criminal law of the province, they were seriouslyobjected to by the British law officers when introduced intosubsequent bank charters copied from that of the Bank ofMontreal. Their presence in this original charter, however,escaped the vigilance of the authorities. The statements of theaffairs of the bank, which were to be made to the stockholders,and to the Government when called for, remained practicallythe same as required by the articles of association. The stipulation.that dividends should be paid out of profits only wasstrengthened by the additional clause that no dividends were>1 Geo. IV. 1821. c. ZZY.