CHAPTER XXII.

CORPORATIONS.

Corporations are only formed under general laws, and cannot be created by special laws.

The stockholders of all corporations and joint stock companies are liable for the indebtedness of such corporations to the amount of their stock subscribed and unpaid, and no more.

No bank, banking company or moneyed institution can be created under the laws of this State; nor can any bank, company or institution exist in the State with the privilege of making, issuing, or putting in circulation any bill, check, certificate, promissory note or other paper, or the paper of any bank, company or person, to circulate as money.

CHAPTER XXIII.

CHATTEL MORTGAGES.

Chattel mortgages are valid against third parties when the property is retained in the possession of the mortgagor, provided the mortgage or a copy thereof is filed in the office of the county clerk. Such mortgage, however, ceases to be valid as against creditors and subsequent purchasers, or mortgagors in good faith, after the expiration of one year from the filing of the same, unless within thirty days preceding the expiration of the year an affidavit, setting forth the interest which the mortgagee has in the property by

virtue of such mortgage, is made and annexed to the instrument or copy on file. The effect of such affidavit does not continue beyond one year, when a similar affidavit must be made.

CHAPTER XXIV.

INTEREST AND USURY.

Ten per cent. per annum is the legal rate of interest; but on contracts, interest at the rate of one per

cent. per

charged by express agreement of the parties.

month may be

Usury entails the forfeiture of the principal sum, without interest, to the school fund of the county in which the suit is brought.

1

PART VI.

UTAH TERRITORY.

PREPARED EXPRESSLY FOR THIS WORK BY LEWIS BURNES, SALT LAKE CITY.

CHAPTER I.

THE COURTS AND THEIR JURISDICTION.

The Supreme Court of the Territory has general appellate jurisdiction only.

There are three United States District Courts in the Territory, with unlimited jurisdiction in all chancery and law actions.

THE PROBATE COURTS,

One in each county: Their jurisdiction is limited to strictly probate business, except that they may try divorce cases where both parties agree upon that forum; removable, however, at the pleasure of either party, to the District Court. The judges have the right to enter town sites, and preside over the board of selectmen; in other words, the County Court.

JUSTICES' COURTS

Have jurisdiction in all actions where the amount involved is less than three hundred dollars, except in cases involving titles to real estate.

CHAPTER II.

THE TERMS OF COURTS AND PLACES OF HOLDING SAME.

The Supreme Court sits the first Monday of January, and the second Monday of June, of each year, at Salt Lake City.

The District Courts sit at Salt Lake City, third district; Provo, second district; Beaver City, first district. The times are fixed by the Governor at pleasure, and often change to suit convenience or absence of the judges, and now the assignment is only tem

porary.

The Probate Courts and Justices' Courts are always open for the transaction of business; the former at their respective county court houses, and the latter in their respective precincts.

CHAPTER III.

COMMENCEMENTS OF SUITS AND TIME ALLOWED DEFENDANTS TO PLEAD.

Suits may be commenced at any time. Ten days after service are allowed the defendants to plead, answer, demur, or file motions in cases in the District Courts and Supreme Court.