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be certified,


SEC. 19. It shall not be lawful for any officer, clerk, agent or When check may employé of a bank to certify a check unless the amount thereof actually stands to the credit of the drawer upon the books of the bank, or to resort to any device, or receive any fictitious obligations, direct or collateral, in order to evade the provisions of this prohibition; and any officer, clerk, agent or employé Penalty for who shall attempt any such evasion shall, upon conviction section. thereof, be deemed guilty of a misdemeanor, and punished as provided in section fourteeen of this act.

violating this

SEC. 20. If the board of directors, or a quorum thereof, of a when charter bank shall knowingly violate, or knowingly permit any of the may be forfeited. officers, agents or employés of the bank to violate any of the provisions of this act, and after warning from the Commissioner shall fail to make good all loss and damage resulting from such acts or omissions, such conduct shall constitute a ground for a forfeiture of the charter and privileges of said bank; and it shall be the duty of the Commissioner, with the assent of the Attorney General, to institute proceedings to enforce such forfeiture and to secure a dissolution and liquidation of said bank.


made to Com

times each year

exhibit, etc.

SEC. 21. Every bank shall make to the Commissioner of the Reports to be Banking Department not less than four reports during each missioner not calendar year, at such times as said Commissioner shall require less than four the same, according to the forms which he shall prescribe and furnish. Such reports shall be verified by the oath or affirmation of the president, vice-president, cashier or treasurer thereof, and signed by at least three of the directors. Such reports shall what reports to exhibit in detail, and under appropriate heads, the resources, assets and liabilities of the bank at the close of business of any past day by him specified, and shall be transmitted to said Commissioner within five days after the receipt of a request therefor from him, and in the same form such report shall be published in a newspaper in the city, village or county where such bank is located, and proof of publication shall be furnished to said Commissioner. Such commissioner shall also have the special and power to call for special reports from bank or any banks when- reports. ever, in his judgment, the same are necessary to inform him fully of the condition of such banks. In addition to the reports required above, each bank shall report to the Commissioner within ten days after declaring any dividend the amount of such dividend, the amount carried to surplus fund, and the amount of net earnings in excess thereof; such report to be verified by the oath or affirmation of one of the executive officers of the bank.



SEC. 22. Every bank failing to make and transmit to the Penalty for Commissioner any of the reports required by this act shall be failure to make subject to a penalty of one hundred dollars for each day after the time mentioned above for making such reports. Whenever How recovered. any bank delays or refuses to pay the penalty herein imposed for a failure to make and transmit a report the Commissioner



office against the delinquent bank for the recovery of such penalty, and all sums collected by such action shall be paid into the State treasury and applied upon the expenses of the banking department.

Limit of amount

loaned on real


SEC. 23. Any bank which, by its articles of incorporation, estate security. shall designate its business as that of a commercial bank shall have power to carry on the business of banking as prescribed and limited in this act, but it shall not lend to exceed fifty per cent of its capital stock upon mortgage or any other form of real estate security, and then only upon the adoption of a resolution by a two-thirds vote of the board of directors stating to what extent its officers may loan on real estate, as herein provided, except to secure a debt previously contracted in good faith on personal security deemed at the time adequate to secure such loan.


Interest on deposits, etc.


amount of, etc.

Proceedings in

falls below

required amount.

SEC. 24. Commercial banks may allow interest on accounts or certificates of deposit, but all deposits in such banks shall be payable on demand without notice, except when the contract of deposit otherwise provides. Said banks may invest their capital and deposits, except the reserve provided for in this section, in negotiable or commercial paper, or loan the same upon personal securities. Each bank shall keep on hand at all times at least fifteen per cent of its total deposits, except that in cities of over one hundred thousand population each of such banks shall keep on hand 20 per cent of its deposits, one-half of which reserve shall be in lawful money, and the balance may be in funds, payable on demand, deposited in banks in cities, approved by the Commissioner as reserve cities.

SEC. 25. Whenever the reserve of any commercial bank shall case the reserve fall below the amount above required, such bank shall not increase its liabilities by making any new loans or discounts otherwise than by discounting or purchasing bills of exchange payable at sight or on demand, and the Commissioner of the Banking Department may notify any bank whose reserve shall be below the amount above required to make good such reserve, and in case the bank shall fail for thirty days thereafter to make good its reserve the Commissioner may, with the concurrence of the Attorney General, institute proceedings for the appointof a receiver to wind up the business of the bank.

Deposits. repayment of, ete.


SEC. 26. Any bank which, by its articles of incorporation, shall designate its business as that of a savings bank, shall have power to carry on the business of banking as prescribed and limited in this act, and may receive on deposit money offered by tradesmen, mechanics, laborers, servants, minors, and other persons; and all deposits in said banks shall be repaid to the depositors, or his or her lawful representatives, when required,


regulations as the board of directors of the bank from time to time prescribes, which regulations shall be printed and conspicuously exposed in some place accessible and visible to all in the business office of said bank.



bonds of other States.

debt of municipalities.

SEC. 27. A savings bank shall keep on hand at least fifteen Reserve to be (15) per cent of its total deposits, one-third of which reserve kept. shall be in lawful money in its own vaults, and the balances on deposit payable on demand with banks, national or State, in cities approved by the Commissioner as reserve cities or invested in United States bonds; three-fifths of the remainder of its sav- Balance, how ings deposits shall be invested by the board of directors in bonds of the United States, or of this State, or in the bonds of any other State of the United States: Provided, That such Proviso as to State has not in ten years preceding the time of such investment, repudiated its debt and failed to pay the same or the interest due thereon or upon any part of such debt; or in the public debt or bonds of any city, county, township, village or school district of any State in the United States which shall have been authorized by the legislature of such State: Provided, The total indebtedness of such municipality does not exceed Proviso as to five per cent of the assessed valuation, except by a vote of twothirds of the board of directors such bonds may be purchased if the total liabilities do not exceed ten per cent of its assesed valuation, or loan the same upon negotiable paper secured by any of the above mentioned classes of security; or upon notes, or bonds, secured by mortgage lien upon unincumbered real estate worth at least double the amount loaned; the remainder of such deposits may be invested in notes, bills or other evidences of debt, the payment of which is secured by the deposit of collateral security consisting of personal property, of known marketable value, worth ten per cent more than the amount so loaned and interest for the time of the loan; or may be deposited in any national bank, trust company, or bank in cities in this or any other State approved by the Commissioner of the Banking Department as reserve cities; and a portion of said Limit of deposit remainder, not exceeding the capital and additional stockholders' liability, may be invested in negotiable paper approved by the board of directors; but the deposits in any one bank shall not exceed ten per cent of the total deposits, capital and surplus of the depositing bank. In case the actual reserve shall fall below Proceedings the fifteen per cent above provided, the bank shall promptly, falls below and in good faith, take measures to restore and maintain its fifteen per cent. lawful reserve, in default of which the Commissioner of the Banking Department shall require such restoration within thirty days after notice, and a failure to comply with such demand shall warrrant proceedings to wind up the bank, as provided in section six of this act.

SEC. 28. A pass-book shall be issued to each depositor in the savings department, containing the rules and regulations adopted by the board of directors governing such deposits, in which book shall be entered each deposit made by, and each payment made to, such depositor, and no payment or check

in any one bank,

when reserve

Pass books, contents and

use of.


Separate books

to be kept for commercial and savings bank business. Proviso.

Regulating rate

of interest.

Payment of deposits to a minor.

Certificates of deposit etc.

Construction of this act.

Effect of this act on banks, etc., now existing.

Disposition of past due obligations, etc.


panied by and entered in the pass-book issued therefor, except for good cause and on assurances satisfactory to the officers of the bank; but nothing in this section shall prevent savings banks issuing time certificates of deposit or certificates of deposit specifically issued subject to the rules and regulations governing savings deposits.

SEC. 29. Any bank combining the business of a commercial bank and a savings bank shall keep separate books of account for each kind of business: Provided, That all receipts, investments and transactions relating to each of said classes of business shall be governed by the provisions and restrictions herein specifically provided for the respective kinds of banks.

SEC. 30. It shall be the duty of the board of directors of each savings bank from time to time to regulate the interest to be allowed depositors, and pay the same at regular and stated periods.

SEC. 31. When any deposit is made in any savings bank by a person being a minor the said bank may pay to such depositor such sums as may be due to him or her, although he or she have no guardian, and the receipt of such minor shall be in all respects valid in law.

SEC. 32. All certificates or evidences of deposits made by the proper officers of any bank shall be as effectual to bind the bank as if made under the common seal thereof; but said bank shall not issue any bill, note, or certificate intended to circulate as money, and no such bank shall issue post notes.

SEC. 33. All the general powers and privileges, as well as the general restrictions and limitations provided in this act, and applied to the corporations to be organized under and regulated by this act, by the general designation of banks, be understood and construed to include commercial banks, savings banks, and those combining both branches of business.

SEC. 34. The powers, privileges, duties and restrictions conferred and imposed upon any bank existing and doing business under the laws of this State are hereby abridged, enlarged or modified, as each particular case may require to conform to the provisions of this act, and to such amendments as may be made thereto. But nothing in this act shall be construed to affect the legality of investments heretofore made, or of transactions heretofore had, pursuant to any provisions of law in force when such investments were made or transactions had, nor to require the change of investments for those named in this act, except as the same can be done by the sale or redemption of the securities so invested in, in such manner as to prevent loss or embarrassment in the business of such bank, or unnecessary loss or injury to the borrowers on such securities; but no renewal or extension of any such loan or investment shall be made by any bank, unless necessary to avoid loss or embarrassment, as above provided. All debts due to any association on which interest is past due and unpaid for a period of six months, unless the same are well secured, and in process of collection, shall be considered bad debts, and shall be charged off to the




SEC. 35. There is hereby established in the State department State banking a separate and distinct bureau which shall have charge of the authorized. execution of the laws relating to banks, trust, loan, mortgage security, or safety deposit companies formed and transacting business under the laws of this State, to be designated as the State Banking Department.



SEC. 36. The chief officer of the department shall be denom- Commissioner inated the Commissioner of the Banking Department. He shall of the banking be appointed by the Governor, by and with the advice and con- appointment of. sent of the Senate, and shall hold his office for the term of four years. He may appoint a deputy, and revoke such appointment Deputy. at pleasure, who shall possess the powers and perform the duties attached by law to the office of the Commissioner during a vacancy in such office, and during the absence or inability of his principal. He may also employ from time to time such Clerks, clerks to assist him and his deputy in the discharge of the several duties imposed upon them by this act as he shall find necessary. The salary of the Commissioner shall be two thousand five hundred dollars per annum. The salary of the deputy Salary of Comand such clerks as may be employed under this act shall be at deputy, and such a rate per annum as the Commissioner shall decide: clerks. Provided, That such rate is not in excess of that of the depu- Proviso. ties and clerks of the several State departments. The salaries Payment of of the Commissioner, deputy and clerks shall be paid monthly salaries. or quarterly by the State Treasurer, upon a voucher countersigned by the Auditor General. Vouchers for the Commissioner's salary must be first approved by the Governor. Vouchers for the deputy and clerks' salaries must be first approved by. the Commissioner. All actual and necessary traveling expenses Expenses, of said Commissioner, deputy or clerks, incurred in the discharge of their duties under this act, shall be fully itemized upon proper vouchers and certified in the order indicated for the salaries, and presented to the Board of State Auditors. If allowed the Auditor General shall countersign. The State Treasurer shall, upon the presentation of vouchers so allowed and countersigned, reimburse the said officers' expenses. Within fifteen days from the notice of their appointment, oath of office. respectively, the Commissioner and his deputy shall take and subscribe the oath of office prescribed by the constitution, and file the same in the office of the Secretary of State. The said Bond. Commissioner of the Banking Department and his deputy aforesaid shall each give to the people of this State a bond in the penal sum of twenty-five thousand dollars, with two or more sureties, to be approved by the State Treasurer, conditioned for the faithful discharge of the duties of their respective offices; and the Commissioner or his deputy shall not be interested, Commissioner directly or indirectly, in any national bank, nor in any bank or to be engaged other corporation under their supervision, nor engaged in the in banking, etc. business of banking. There shall be assigned to said Commissioner suitable rooms in the State capitol for conducting the

or deputy not

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