Call For Payments On Stock

If the entire $500,000 capital has been subscribed, it will be found, in all likelihood, that some hundreds of subscribers have taken the stock in lots of from one share up. The provisional officers may, in their discretion, call for the payments on the stock. When $250,000, out of the subscriptions received, have been paid in cash to the Minister of Finance and Receiver-General, as proof of the subscriptions, the organization of the bank may be completed:"The provisional directors may, by public notice " published for at least four weeks, call a meeting of " the subscribers to the said stock, to be held in the " place named in the Act of incorporation as the chief " office of the bank, at such time and at such place "as is set forth in the said notice.

"The subscribers shall, at such meeting:"

(a) Determine the day upon which the annual " general meeting of the bank is to be held;

"(b) Elect such number of directors, duly qualified " under this Act, not less than five, as they think neces-" sary; and

"(c) Provide for the method of filling vacancies in " the board of directors until the annual general meeting.

"Such directors shall hold office until the annual " general meeting next succeeding their election.

"Upon the election of directors as aforesaid the " functions of the provisional directors shall cease."

Change In Character Of Staffs

The bank is now fully organized, but not in running order. Under heavy penalties the directors and officers are forbidden to issue notes or to commence business until there has been received from the Treasury Board at Ottawa a certificate permitting it to do so. The application for this certificate cannot be made till the organization is completed in the manner described. The Treasury Board requires to be satisfied that all the requirements of the Bank Act, and of the special Act of incorporation of the bank, are complied with; also, that the stock subscriptions, and cash payments stated to have been made thereupon, are bona fide, and that the bank possesses $250,000 free from obligation. If the Treasury Board holds back the certificate within one year from the time of the passing of the bank's Act of incorporation, "all the rights, powers, and privileges " conferred on the bank by its Act of incorporation shall " thereupon cease and determine, and be of no force or " effect whatever."

On the certificates being duly forthcoming within the specified time the bank may commence its operations and exercise all its functions. Its receipt is accompanied by the return to the bank of the $250,000 deposited with the Minister of Finance and Receiver-General, less the amount required to be deposited by the bank in the Bank Circulation Redemption Fund.