ACT OF PARLIAMENT FOR Erecting a Bank in SCOTLAND.  
EDINBURGH, July 17. 1695.  
OUR SOVEREIGN LORD considering, how useful a public Bank may be in this Kingdom, according to the Custom of other Kingdoms and States; and that the same can only be best set up and managed, by Persons in Company, with a joint Stock, sufficiently endued with these Powers and Authorities, and Liberties, necessary and usual in such Cases; Hath therefore allowed, and with Advice and Consent of the Estates of Parliament, Allows a joint Stock, amounting to the Sum of Twelve hundred thousand pounds' Money, to be raised by the Company hereby established, for the carrying on and managing of a public Bank. And further Statutes and Ordains, with Advice foresaid, That the Persons under-named, viz. Mr. William Areskine, Son to the Lord Cardross, Sir John Swinton of that Ilk, Sir Robert Dickson of Sornebeg, Mr. George Clark Junior, and Mr. John Watson, Merchants in Edinburgh, Mr. James Fowlls, Mr. John Holland, Mr. David Nairn, Mr. Walter Stewart, Mr. Hugh Frazer, Mr. Thomas Couts, and Mr. Thomas Deans, Merchants in London, or any Three of them: And in case of the Decease of any of them, the Persons to be chosen by the Survivers, shall have Power to appoint a Book, for Subscriptions of Persons, either Natives or Foreigners, who shall be willing to subscribe and pay in to the said joint Stock; which Subscriptions, the foresaids Persons, or their Quorum, are hereby authorised to receive in the foresaid Book, which shall lie open every Tuesday or Friday, from Nine to Twelve in the Forenoon, and from Three to Six in the Afternoon, betwixt the first Day of November next, and the first Day of January next following, in the public Hall or Chamber to be appointed in the City of Edinburgh; and therein all Persons shall have Liberty to subscribe, for such Sums of Money, as they shall think fit to adventure in the said joint Stock, one thousand Pounds Scots being the lowest Sum, and twenty thousand Pounds Scots the highest; and the two third Parts of the said Stocks, belonging always to Persons residing in Scotland. Likeas, each and every Person, at the Time of his subscribing, shall pay into the Hands of the forenamed Persons, or any Three of them, Ten of the Hundred, of the Sums set down in their respective Subscriptions, towards the carrying on the Bank. And all and every the Persons subscribing, and paying to the said Stock, as aforesaid, shall be, and hereby declared, to be one Body corporate and politic, by the Name of The Governor and Company of the Bank of Scotland; under which Name, they shall have perpetual Succession, and shall have a common Seal: And their Successors, by the Name foresaid, shall be able and capable to purchase and enjoy; as also to give, grant, alienate, and dispose of Lands, Tenements, and all other Heritage; as likewise of all Sums of Money, and other movable Goods and Gear whatsoever: And further, to do and execute all other Things, which any other Company or Body corporate, can or may lawfully do or execute; and that as amply and fully, as if the several Matters and Things, were particularly set down in this Act. And for the better ordering and managing of the Affairs of the said Bank, it is hereby further Statute and Ordained, That there shall be for ever a Governor, Deputy-Governor, and Twenty four Directors, to be elected and chosen, as hereafter is appointed, who, or any seven of them, (hereby declared to be their Quorum,) shall have the Management and Direction of the said Bank; which Persons, viz. Governor, Deputy-Governor, and Twenty four Directors, are to be chosen in this Manner, viz. That within the three Months after the foresaid Subscriptions are ended, the Person particularly , or any Two of them, shall appoint a certain Day, and make due Intimation of the same, that such and so many of the Adventurers, and none other, as shall each of them have subscribed for one thousand pounds' Money or upwards, in the said Book of the joint Stock, may elect and choose by Majority of Votes, which are to be given, one Vote for every thousand Pounds Share in the Stock, a fit Person of the Subscribers, who hath subscribed for himself, at least for eight thousand Pounds, to be Governor of the said Bank; and another fit Person of the Subscribers, who shall have subscribed for himself, at least for six thousand Pounds, to be Deputy-Governor of the said Bank; and also twenty four others, fit Persons, who shall have subscribed each of them for himself, at least for three thousand Pounds in the said joint Stock, to be Directors of the said Bank; which Governor, Deputy-Governor and Directors, are to continue in their respective Offices, until the next Election of their Successors; which next Election shall be made within thirty Days, after the Expiration of a whole Year from the former Election, by the Majority of the Votes of the Members, who are to be qualified, and their Votes reckoned in Manner : And so forth the said Governor, Deputy-Governor, and Directors, to be chosen from Year to Year. And if any of them happen to decease before the Expiration of his Time, than the Members and the Company, qualified as aforesaid, shall elect in Manner , another fit Person, in the Room, and to the Office of the Deceased, who is to officiate for the Remainder of his Time. And further, the Governor or his Deputy, and any Three of the Directors, or any Five of the Directors, without the Governor or his Deputy, may, as often as they see Cause, summon a Meeting of the Adventurers, qualified as said is; at which Meeting, by Majority of Votes to be given, as said is, the Governor or his Deputy, or any of the Directors for the Time, not exceeding Two Directors at one Meeting, may be displaced and removed, for any Miscarriage or Insufficiency in his Office. To which Sentence, the Person removed is absolutely to acquiesce, without Gainsaying, and another to be chosen in his Room and Place, as aforesaid, to continue till the next general Election; and the Governor, Deputy-Governor, Directors, or any seven of them, their Quorum foresaid, may meet together at any convenient Place, for the Management of the Affairs of the said Bank; and the said's Adventurers, at any General Meeting that shall happen to be appointed, shall have Power to require the Payment of any further Part of the Subscriptions, than the Ten per Cent. , at such Time as they shall think fit. And in case any of the Adventurers shall refuse, or neglect to pay in their Proportion appointed by the said General Meeting, than he shall forfeit, to the Use and Behoof of the said joint Stock, whatever he had before paid in to the said Company; and no Governor, Deputy-Governor, or Director, shall be capable of, or continue in their said respective Offices, unless they have the respective Sums  in their own Right, and so long as they have the same, and no longer; but upon the Diminution of the said's Sums, their Offices are to determine, and others to be chosen at a General Meeting, as aforesaid, in their Places: And the said Governor, Deputy-Governor, and Directors, are to swear at their Entry to their respective Offices, the Oath following. I A. B. Do swear, that the Sum of of the Stock of the Governor, and Company of the Bank of Scotland, doth at this Time, belong to me in my own Right, and not in Trust: And that in the Office of I will be equal to all Persons, and give my best Advice, for the Support of the Bank of Scotland; and in the said Office, honestly demean myself to the best of my Skill. And this Oath, the first Governor shall take before the Lord Chancellor, or any other of the Officers of State, and then shall have Power to administrate the same to his Deputy and Directors. And the next Governor and Directors shall swear the same at their Entry, as said is, before a General Meeting of the Company, certifying any who shall neglect to swear at his Entry, or within Twenty Days thereafter, his Place shall be void, and another shall be elected to it: And the Governor, or Deputy-Governor; with the Directors or their Quorum, may choose a Thesaurer, Secretary, and other Officers, for the Affairs of the said Company, who are to give their Oaths de fideli before the Governor, or his Deputy, or any Two of the Directors; and may be removed from the said Offices, at the Pleasure of a General Meeting: Providing always, That neither the Governor, Deputy-Governor, or any of the Directors, may be chosen to any of the said's inferior Offices. And it is further hereby Statute and Ordained, That it shall be lawful for the said Governor and Company, to lend upon real or personal Security, any Sum or Sums, and to receive Annual rent for the same at Six per cent. as shall be ordinary for the Time: As also, That if the Person borrowing, as said is, shall not make Payment at the Term agreed upon with the Company, than it shall be lawful for the Governor and Company, to sell and dispose of the Security or Pledge, by a public Roup, for the most that can be got, for Payment to them of the Principal, Annual rents and reasonable Charges, and returning the Overplus to the Person who gave the said Security or Pledge. And it is further hereby Enacted, That the foresaid Company, and Members, thereof, or major Part of them, assembled at any General Meeting, may make and constitute such By-laws and Ordinances, as to them shall seem necessary and convenient, for the Good of the Company, and under such Penalties, as shall be therein contained; providing that the said's By-laws and Ordinances, be not contrary to, (but consistent with the Laws of the Kingdom.) And for ascertaining how the said joint Stock and Shares thereof, with all the Lands, Houses, or other Estate thereto belonging, may be assigned or transferred: It is hereby Statute and Ordained, That there be constantly kept a Book or Register, by the said Governor and Directors, where all the foresaid Assignments shall be entered, and subscribed by both the Party assigning, and the Party to whom the Assignment is made, in Token of his Acceptance; and that such Assignments so subscribed, shall make full, complete, and absolute Rights, and no other shall be good, excepting that any Person having Interest in the said Company, may dispose of the same by latter Will or Testament, which shall be a valid and complete Transmission, in Favours of the Person to whom the Disposition is made, upon the entering and recording so much of the said latter Will, as relates to the said Stock in the Books of the said Company, without Necessity of Confirmation or further Formality whatsoever. And it is hereby further Statute, That no Dividend shall be made, save out of the Interest or Product arising out of the joint Stock, and by the Consent of the Adventurers in a General Meeting. And for the better Encouragement of the said Company and Adventurers; it is hereby Statute, That the joint Stock of the said Bank continuing in Money, shall be free from all public Burden to be imposed upon Money, for the Space of Twenty one Years after the Date hereof: And that during this Space, it shall not be leisome to any other Persons to enter into, and set up a distinct Company of Bank within this Kingdom, besides these Persons allenarly, in whose Favours this Act is granted. And sicklike, it is hereby Declared, That summar Execution by Horning, shall proceed upon Bills or Tickets, drawn upon, or granted by, or to, and in Favours of this Bank, and the Managers and Administrators thereof for the Time, and Protests thereon, in the same Manner, as is appointed to pass upon Protests of foreign Bills, by the 20th Act, Parl. 1681. K. Ch. II. And sicklike, That no Suspension pass of any Charge, (for Sums lent by this Bank or to the same,) but upon Discharge or Consignation of the Sums charged for allenaaly. And further, for preventing the breaking of the said joint Stock and Company, contrary to the Design thereof: It is hereby Declared, That the Sums of the foresaid Subscriptions and Shares, may only be conveyed and transmitted by the Owners to others, who shall become Partners of the Company in their Place, in Manner abovementioned, or by Adjudication, or other legal Conveyance, in Favours of one Person allenarly, who in like Manner shall succeed to be a Partner in his Predecessor's Place, so that the foresaids Sums of Subscriptions may neither be taken out of the Stock, nor parceled amongst more Persons by legal Diligence in any Sort, to the diminishing or disturbing the Stock of the said Company, and good Order thereof. And sicklike, for the greater Security, and more convenient managing of the said Bank or joint Stock, it is hereby Statute and Ordained, That in case it shall happen any of the Members, Partners or Subscribers, or other Proprietors of any Part of the said Stock, to be Registrate at the Horn, or to commit any Crime punishable by Confiscation, or Forfeiture of his said Share and Proportion of the said joint Stock and Profit thereof due at the Time; then and in that Case it shall be lawful for the Governor, Deputy Governor, and Directors, or their Quorum foresaid, to expose, by public Roup, such Shares and Profit thereof to any other Person who shall bid the highest Price therefore, after such legal Intimations to be made for that Effect by the said Governor, Deputy-Governor, Directors or their Quorum, as is prescribed by the Act of Parliament for the Sale of Bankrupts Lands; and the Price arising by the said Roup, to be made forthcoming by the said Company to the Creditors, Heirs, or others succeeding in the Right of the Party so denounced or forfeit. Providing always, as it is hereby expressly Enacted, Provided and Declared, That it shall not be lawful nor allowable for the said Company, Governor, Deputy-Governor, Directors, or Managers thereof, upon any Ground or pretence whatsoever, directly or indirectly, to use, exerce, or follow any other Commerce, Traffic, or Trade with the joint Stock to be employed in the said Bank, or any Part thereof, or Profits arising therefraes, excepting the Trade of lending and borrowing Money upon Interest, and negotiating Bills of Exchange allenarly and no other. Providing also, Likeas it is hereby expressly Provided, Enacted and Declared, That in case the Governor, Deputy-Governor, Directors or other Managers of the said Company, shall at any Time happen to purchase for the Use and Behoof of the said Company any Lands, Rents, or other Heritage belonging to his Majesty, His Heirs and Successors, or shall advance or lend to His Majesty, His Heirs or Successors, any Sums of Money in borrowing or by Way of Anticipation upon any Part, Branch or Fund of the ordinar Rent or Casualites of the Crown, or of any Supply, Cess, Excise, Custom, Pole-Tax, or any other Supply or Taxation already granted, or which shall happen to be granted at any Time hereafter to His Majesty and his foresaids, any Manner of Way whatsoever, excepting these Parts, Branches, or Funds of the said's Rents, Casualties, or Impositions foresaids, upon which a Credit of Loan shall happen to be granted by Act of Parliament allenarly; then and in that Case, the said Governor, Deputy-Governor, Directors, or other Managers, one or more of the said Company who shall consent, agree to, or approve of the said Purchase, Advance or Lending to His Majesty and his foresaids, and ilk ane of them so agreeing and approving, and being found guilty thereof according to Law, shall be liable for every such Fault, in the Triple of the Value of the Purchase so made, or the Sums so lent, whereof a fifth Part shall belong to the Informer, and the Remainder to be disposed of towards such public Uses, as shall be appointed by Parliament and not otherwise. And it is likewise hereby Provided, That all Foreigners who shall join as Partners of this Bank, shall thereby be and become naturalised Scots-men, to all Intents and Purposes whatsoever.  
Extracted forth of the Records of Parliament by TARBAT Cl. Registri.