stock to be

full paid.

Certificates of be issued (nor shall such stock be considered as re[ac]quired) until the whole sum of money which such certificate purports to represent shall have been paid into the corporation. Shareholders in banks organized under the provisions of this act shall be indiLiability of vidually and severally liable to the creditor[s] of the corporation shareholders. of which they are shareholders, over and above the amount of stock by them held, to an amount equal to their respective shares so held, for all its liabilities accruing while they remained shareholders, and no transfer of stock shall affect such liability for the period of six months thereafter; and should any such bank become insolvent, and its assets be found insufficient to pay its debts and liabilities, its shareholders may, to that extent, be compelled to pay such deficiency, in proportion to the amount of stock owned by each.

SEC. 13. Whenever any stock is held by any person as execuStock held by tor, administrator, trustee, or guardian, he may represent such stock, in person or by proxy, and any married woman holding stock in her own name, in any bank organized under this act, may cast her vote or appoint her own proxy to vote for her.

executor, guardian, &c.: by married women.

deposits or

SEC. 14. Any person authorized thereto, by resolution of the Other associa- board of directors or trustees of any corporation, association, or tions having society, having funds deposited, or owning stock, in any bank holding stock. formed under this act, shall be entitled to receive such deposit or to transfer such stock, and to cast the vote of such corporation, association, or society thereon.

Deposits by
executors,
&c.;

By minors;

By married

women.

Not to issue circulating notes nor to contract

SEC. 15. Whenever any deposits are held by any person or [as] executor, administrator, trustee, or guardian, he shall be entitled to receive the same; and whenever any deposit shall be made by any minor the directors or trustees shall pay to such depositor such sum as may be due to him or her, although no guardian shall have been appointed by or for such minor, or the guardian of such minor shall not have authorized the drawing of the same; and the check, receipt, or acquittance of such minor shall be as valid as if the same was [were] executed by a guardian of said minor, or said minor was [were] of full age, if such deposit was made personally by said minor; and whenever any deposit shall be made in her own name by any woman being or thereafter becoming married, said director[s] or trustees shall pay such sum as may be due to her on her receipt or acquittance.

SEC. 16. No bank organized under this act shall, by implication or construction, be deemed to possess the power of creating and issuing bills, notes, or other evidences of debt for circulation as money; nor shall it be lawful for such bank, or the debts, except, directors or trustees thereof, to contract any debt or liability against the bank, for any purpose whatever, except for deposits and the necessary expenses of management and transacting its business; and the capital stock and the assets of the bank shall be security to depositors.

&c.

Security to depositors.

SEC. 17. No director or trustee of a saving[s] bank shall, as Directors not such, receive any pay or emolument for his services; and no trustee, officer, or servant of such savings bank shall, directly or indirectly, in any manner, use the funds of the said bank, or

to be paid.

restricted.

its deposits, or any part thereof, except for regular business trans- Use of funds actions, and all loans made to said trustees, officers, servants, and by officers agents of the bank shall be upon the same security [as] required of others, and in strict conformity to the rules and regulations of the bank; and all such loans shall be made only by the board, and shall be acted upon in the absence of the party applying therefor; but such reasonable compensation may be paid to the officers Pay of officers. of the bank as may from time to time be fixed in the by-laws.

the bank.

SEC. 18. The total liabilities to any association of any person, Limit of or of any company, corporation, or firm, for money borrowed, liabilities to including in the liabilities of a company or firm the liabilities of the several members thereof, shall at no time exceed twenty per cent. of capital stock actually paid in: Provided, That the discount of bona fide bills of exchange drawn against actually existing value and the discount of commercial or business paper actually owned by the person or persons, corporation, or firm negotiating the same shall not be considered money borrowed.

Proviso.

SEC. 19. The misnomer of any such savings bank, in any Misnomer. instrument, shall not vitiate or impair the same if it be sufficiently described to ascertain the intention of the parties.

use of the

SEC. 20. It shall not be lawful for any bank, banking associa- Unauthorized tion, or private bankers, to advertise or put forth a sign as a term "savings savings bank or savings institution; and any bank, banking bank" prohibassociation, or private banker, violating these provisions, shall ited. forfeit and pay, for every such offense, the sum of one hundred Fine. dollars for every day such offense shall be continued, to be sued for, and recovered in the name of the people of the state, in any court having cognizance thereof, for the use of the school-fund. SEC. 21. Any person or persons who shall put up or cause to same. be put up or exhibited any sign, or who shall issue or circulate any card, circular, or advertisement purporting to be a savings bank not being organized under this act shall, on conviction thereof, be adjudged guilty of a misdemeanor, and be punished by a fine not exceeding fifty dollars for each offense or for each day

such offense shall be continued.

ciations to

ments.

SEC. 22. All associations organized under the general incor- Code: ¿ 1570. poration laws of this state, for the purpose of transacting a bank- Banking assoing business, buying, selling, exchange, receiving deposits, dis- make quarcounting notes, etc., shall make a full, clear, and accurate state- terly statement of the condition of the association as hereinafter provided, which shall be verified by the oath of the president or vice president or cashier and two of the directors, which statement shall contain :

First. The amount of capital stock actually paid in. Second. The amount of debts of every kind due to banks, bankers, or other persons other than regular deposits. Third. The total amount due depositors including sight and time deposits.

Fourth. The amount subject to be drawn at sight then remaining on deposit with solvent banks or bankers of the country, specifying each city and town and the amount deposited in each and belonging to such association.

What to

specify.

Auditor to

ciation;

To call for report four

times a year.

Fifth. The amount of gold and silver coin and bullion belonging to such association at the time of making statement. Sixth. The amount then on hand of bills of solvent banks. Seventh. The amount of bills, bonds, and other evidences of debt, discounted or purchased by such association, and then belonging to the same, specifying particularly the amount of suspended debts, the amount considered good, the amount considered doubtful, and the amount in suit or judgment.

Eighth. The value of real or personal property held for the convenience of such association, specifying the amount of each. Ninth. The amount of undivided profits if any then on hands. Tenth. The total amount of all liabilities to such association on the part of the directors thereof:

Which statement shall be forthwith transmitted to the auditor of state and be by him filed in his office.

SEC. 23. The auditor of state shall, at any time he may see proper, make, or cause to be made, an examination of any assoexamine association, as here[in]after provided, contemplated in this chapter, or he shall call upon any such association for a report of its state and condition as herein before provided, upon any given day which has passed, as often as four times in a year, and which report the auditor shall cause to be published for one day in some daily newspaper published in the county where such association shall be located, or, if there be no such newspaper published in said county, then such report shall be published in some weekly newspaper printed in said county for one week, and the expenses of such publication shall be paid by such institution.

Same to be published.

Auditor to

report to general assembly, with ecommendations.

Duty of audi

tor where bank is vio

lating law, or

doing unsafe business.

SEC. 24. It shall be the duty of the auditor of state to communicate to the legislature, at each session, a statement of the condition of every savings bank, from which reports have been received for the preceding year, and to suggest any amendments in the law relative to savings banks which in his judgment may be necessary or proper to increase the security of depositors.

SEC. 25. Whenever it shall appear to the auditor that any savings bank has been guilty of violating this act or the law, or is conducting its business in an unsafe manner, he shall, by an order under his hand and seal of office, addressed to the institution so offending, direct discontinuance of such illegal and unsafe practices, and he shall demand a conformity with the requirements of this act, and whenever any such savings bank shall refuse or neglect to comply with such order, he shall communicate the fact to Duty of attor- the attorney-general of the state, whose duty it shall be to institute proceedings, against such savings banks, as are now, or may be hereafter, authorized in law in cases of insolvent corporations. The auditor of state may appoint, and the person or persons who Authority of may be appointed by him, to examine the affairs of any savings banks, shall have power to administer oaths to any person whose testimony may be required on any such examination, and to compel the appearance and attendance of any such person, for the purpose of such examination, by summons, subpoena, or attachment, in the manner now authorized in respect to the attendance

ney general,

examiners.

of persons as witnesses in the courts of this state, and all books and papers which it may be deemed necessary to examine by the auditor, on the examination so appointed, shall be produced, and their production may be compelled in like manner. The expenses of any examination, made in pursuance of this act, shall be paid by the savings banks so examined, in such amount as the auditor shall certify to be just and reasonable.

state

its and re

SEC. 26. Every officer, agent, or clerk of any savings bank Penalty for organized under this act, who shall willfully and knowingly sub-ments, false scribe or make any false statements or false entries in the books of entries, exhibsuch bank, or shall knowingly subscribe or exhibit false papers po ts. with the intent to deceive any person authorized to examine as to the condition of said institution, or shall willfully or knowingly subscribe or make false reports, shall be deemed guilty of felony, and upon conviction thereof shall be fined not exceeding ten thousand dollars, and be imprisoned in the state prison not less than two nor more than five years, and be forever after incapable of holding any office created by this act.

fraud punish

SEC. 27. Intentional fraud on the part of savings banks organ- Intentional ized under this act, or in deceiving the public or individuals in ed. relation to their means or their liabilities, or diversion of the funds of the bank to other objects than those mentioned in its certificate of incorporation, and the payment of dividends which leave insufficient funds to meet the liabilities of the bank, shall subject those guilty thereof to fine of not less than five hundred dollars, or imprisonment of not less than one year, or by both such fine and imprisonment at the discretion of the court, and shall cause a forfeiture of all the privileges herein conferred, and the court may proceed to close the bank by an information in the manner prescribed by law.

capital.

bank.

SEC. 28. The paid-up capital of all savings banks organized Taxation of and doing business under this act shall be subject to the same rates of taxation and rules of valuation as other taxable property, by the revenue laws of the state, which taxes shall be levied on and paid by the banks and not the individual stockholders, and To be paid by the general assembly shall never impose any greater tax upon property employed in banking under this act than is or may No greater tax imposed upon the property of individuals. The franchise of all on banking such banks, the savings and funds deposited therein, and the mortgages and other securities, wherever the same are invested, Exemption are not to be taxed, but are expressly exempted therefrom, and from taxamay be omitted from assessments of the bank required by the revenue laws of this state.

SEC. 29.

be

to be imposed

property than

any other.

tion.

tal stock.

Whenever it is desired to increase the amount of Mode of incapital stock of such banks, a meeting of stockholders may be creasing capi called by a notice signed by the officers of said bank, and at least a majority of its directors, and published at least thirty days in every issue of some newspaper published in the county where the principal place of business of the bank is located, which notice shall specify the object of the meeting, the time and place when it is to be held, and the amount which it is proposed to increase the capital stock; and a vote of two-thirds of all the shares of

Certificate.

Voluntary dissolution.

stock of said bank shall be necessary to an increase of the amount of capital stock. If at any meeting so called a sufficient number of votes have been given in favor of increasing the amount of capital stock, a certificate of the proceedings, showing a compliance with these provisions, the amount of capital stock actually paid in, and the amount to which the capital stock is to be increased, and the manner of such increase, shall be made out, signed, and verified by the affidavit of the chairman and secretary of the meeting, certified by a majority of the directors or trustees, and filed and recorded as required by the third section of this act. When this is done, the capital stock of the bank shall be increased to the amount specified in the certificate.

SEC. 30. All savings banks organized under this act may be dissolved, prior to the period fixed upon in the certificate of incorporation, by the affirmative votes of stockholders holding threefourths of the capital stock, at a meeting of stockholders to be called for this purpose in the manner and after publication of notice as required in the preceding section. In all cases of dissolution Winding-up. of a bank hereunder, or the commencement of proceedings under this act to close the same, the receiver or receivers appointed thereunder shall not be required or permitted by forced sale to sell the securities of said banks, but shall proceed as expeditiously as possible to collect the same and make distribution of proceeds to those entitled thereto.

Existing banks may reorganize.

Mode of re

SEC. 31. Any bank or association existing under and by virtue of any law of this state may be reorganized under the provisions of this act, and when duly organized all securities, real estate, or property may be transferred to such new organization; but no such reorganization shall have the effect to discharge the original bank, its directors or stockholders, from any liability to its depqsitors or any other person; but the same shall continue until legally discharged, and such new organization or bank shall be legally liable to pay every claim or demand existing against the bank whose assets or property, or any part thereof, it has received by reason of such reorganization. All such banks may avail themorganization. selves of the provisions [of] and become incorporated under this act, by filing with the recorder of the county in which the principal place of business is located, and a certified copy thereof in the office of the secretary of state, a certificate stating their intention and election to become so incorporated thereunder, which election and intention may be made and declared by the directors or trustees of such bank or association, or a majority of them. The certificate stating such intention may be signed by the president and secretary of such corporation, association, or bank, and shall be acknowledged before some officer competent to take acknowledgments of deeds; and in all other respects existing banks and associations reorganizing hereunder shall comply with, and conform to, all the provisions and requirements of this act with reference to the original organization of savings banks, so far as the same may be applicable, and as soon thereafter as the auditor's certificate is received and published, as herein before provided, may proceed to transact business.