A-i^. 
 
 
California Bank Act 
 
 1909 
 
 COMPUMENTS OF 
 STATE SUPERINTENDENT OF BANKS 
 
 To take Effect July 1, 1909 
 
 5ACRAMENTO: 
 .NNON - - - 5UPLRINTLNDENT 5TATL PRINTING 
 
 1909 
 
California Bank Act 
 
 PASSED AT THE, 
 
 Thirty-eighth Session of the Legislature 
 
 1909 
 
 SACRAMENTO : 
 
 W. W. SHANNON - - - SUPERINTENDENT STATE PRINTING 
 
 1909. 
 
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BANK AQ or CALirORMA 
 
 [Approved March 1, 1909.] 
 
 ARTICLE I. 
 
 GENERAL PROVISIONS. 
 
 Section 1. This act shall be known as the ''Bank Act," 
 and shall be applicable to all corporations and individuals 
 specified in the next section. 
 
 Sec. 2. The word "bank" as used in this act includes every 
 person, firm, company, copartnership or corporation which con- 
 ducts the business of receiving money on deposit. Banks are 
 divided into the following classes : 
 
 (a) Savings banks; 
 
 (6) Commercial banks ; and 
 
 (c) Trust companies. 
 
 Sec. 3. Corporations may be formed under the laws of this 
 state to conduct, as provided in this act, and not otherwise, any 
 one or all of the businesses mentioned in divisions a, b and c of 
 section 2, of this act. 
 
 Sec. 4. The term "savings bank," when used in this act, 
 means a bank organized for the purpose of accumulating and 
 loaning the funds of its members, stockholders, and depositors, 
 and which may loan and invest the funds thereof, receive 
 deposits of money; loan, invest and collect the same with 
 interest; and may repay depositors with or without interest, 
 and having power to invest said funds in such property, securi- 
 ties and obligations as may be prescribed by this act; and to 
 declare and pay dividends on its general deposits, and a stip- 
 ulated rate of interest on deposits made for a stated period or 
 upon special terms. 
 
 Sec. 5. The term "commercial bank," when used in this 
 act, means any bank authorized by law to receive deposits of 
 money, deal in commercial paper or to make loans thereon, 
 and to lend money on real or personal property, and to discount 
 bills, notes, or other commercial paper, and to buy and sell 
 securities, gold and silver bullion, or foreign coins or bills of 
 exchange. 
 
 Sec. 6. The term "trust company," when used in this act, 
 means any company which is incorporated for the purpose 
 of conducting the business of acting as executor, administrator, 
 guardian of estates, assignee, receiver, depositary, or trustee. 
 
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 Sec. 7. No foreign corporation shall transact a banking 
 business in this state without first complying with all the 
 requirements of the laws of this state relative to banks as 
 defined in this act, and without having the capital paid up in 
 this state as required by this act. And no such foreign corpo- 
 ration shall transact any banking business in this state until it 
 has executed and filed with the superintendent of banks a 
 written instrument appointing such superintendent, or his suc- 
 cessor in office, its true and lawful attorney, upon whom all 
 process in any action or proceeding by any resident of the state 
 against it may be served, with the same effect as if such corpo- 
 ration was formed under the laws of this state and had been 
 lawfully served with process therein. Service in favor of a 
 resident of this state upon such attorney shall be deemed 
 personal service on such corporation. The superintendent of 
 banks shall forthwith forward by mail a copy of every process 
 served upon him under the provisions of this section, postage 
 prepaid, and directed to the secretary of such corporation, at 
 its last known post office address. For each copy of process, the 
 superintendent of banks shall collect the sum of two dollars, 
 which shall be paid by the plaintiff or moving party at the 
 time of such service, to be recovered by him as part of his 
 taxable costs if he succeed in the suit or proceeding. 
 
 Sec. 8. Every corporation, at the time it applies for a 
 certificate to do a banking business, must file with the superin- 
 tendent of banks a certified copy of its articles of incorporation, 
 or of the statute chartering such corporation, also all instru- 
 ments amending or altering such articles of incorporation or 
 charter. Thereafter all amendments and certificates shall like- 
 wise be so filed before such instruments take effect. In like 
 manner all copartnerships shall file certified copies of their 
 articles of copartnership and all amendments thereto. 
 
 Sec. 9. No bank in this state, or any officer or director 
 thereof, shall hereafter open or keep an office other than its 
 principal place of business, without first having obtained the 
 written approval of the superintendent of banks to the opening 
 of such branch office, which written approval may be given or 
 withheld in his discretion, and shall not be given by him until 
 he has ascertained to his satisfaction that the public convenience 
 and advantage will be promoted by the opening of such branch 
 office; and, provided further, that no bank or any officer or 
 director thereof, shall open or maintain such branch unless the 
 capital of such bank, actually paid in cash, shall exceed the 
 amount required by this act by the sum of twenty-five thousand 
 dollars for each branch office opened and maintained. Every 
 bank, and every such officer or director violating the provisions 
 of this section shall be guilty of a misdemeanor. 
 
 Sec. 10. No person shall be eligible for election as a director- 
 of a bank unless he is a stockholder of the bank, owning, in his 
 
— 5 — 
 
 own right, shares thereof of the actual market value of at least 
 five hundred dollars; and every person elected to be director 
 who, after such election, shall cease to be the owner in his own 
 right of the amount of stock aforesaid, shall then cease to be a 
 director of the bank, and his office shall then become vacant. If 
 a bank be organized without capital stock, no person shall be 
 eligible as a director thereof unless he is both a member and a 
 depositor of such bank. 
 
 Sec. 11. Each director of a bank, when appointed or elected, 
 shall take an oath that he will, so far as the duty devolves on 
 him, diligently and honestly administer the affairs of such bank, 
 and will not knowingly violate or willfully permit to be violated 
 any of the provisions of law applicable to such bank, and th^t he 
 is the owner in good faith and in his own right of the shares of 
 stock of the actual market value required by section 10 of this 
 act, subscribed by him or standing in his name on the books of 
 the bank, and that the same is not hypothecated or in any way 
 pledged as security for any loan or debt ; and, in case of re-elec- 
 tion or re-appointment, that such stock was not hypothecated 
 or in any way pledged as security for any loan or debt during 
 his previous term. Such oath shall be subscribed by the director 
 making it, and certified by the officer before whom it is taken ; 
 and shall be immediately transmitted to the superintendent of 
 banks, and filed and preserved in his office. 
 
 Sec. 12. No person, firm, company, copartnership or cor- 
 poration not subject to the supervision of the superintendent 
 of banks, and not required to report to him by the provisions 
 of this act, shall make use of any office sign, at the place where 
 such business is transacted, having thereon any artificial or 
 corporate name, or other words indicating that such place or 
 office is the place or office of a bank, or that deposits are received 
 there or payments made on check, or any other form of banking 
 business transacted, nor shall such person or persons, firm, 
 company, copartnership or corporation make use of or circulate 
 any letterheads, billheads, blank notes, blank receipts, certifi- 
 cates or circulars, or any written or printed, or partly written 
 and partly printed, paper whatever, having thereon any arti- 
 ficial or corporate name or other word or words indicating that 
 such business is the business of a bank, savings bank or trust 
 company. Every person, firm, company, copartnership or 
 officer of a corporation violating the provisions of this section 
 shall be guilty of a misdemeanor. 
 
 Sec. 13. Every person or number of persons, not being 
 incorporated, engaged in the business of banking or publicly 
 receiving money on deposits, must conduct such business under 
 a name which shows the true name of all persons engaged 
 therein, unless such person or persons have complied with the 
 provisions of article 7, of chapter II, of title 10, of part IV of 
 division 3 of the Civil Code. 
 
Sec. 14. No bank, or any officer thereof, shall advertise in 
 any manner, or publish any statement of the capital authorized 
 or subscribed, unless it or he advertise and publish, in connec- 
 tion therewith, the amount of capital actually paid up. Any 
 bank, or any officer thereof, advertising in any manner, or pub- 
 lishing any statement of such capital, authorized or subscribed, 
 without a statement in connection therewith of the capital 
 actually paid up, shall be guilty of a misdemeanor. 
 
 Sec. 15. The president or managing officer of every bank 
 must, within fifteen days after the first day of January of every 
 odd numbered year, return to the superintendent of banks a 
 sworn statement showing the names of depositors known to be 
 dead, or who have not made further deposits, or withdrawn any 
 moneys during the preceding ten years. Such statements shall 
 show the amount of the account, the depositor's last known 
 place of residence or post office address, and the fact of death, 
 if known to such president or managing officer. Such president 
 or managing officer must give notice of these deposits in one or 
 more newspapers published in or nearest to the town or city 
 where such bank has its principal place of business, at least 
 once a week for four consecutive weeks, the cost of such publi- 
 cation to be paid pro rata out of such unclaimed deposits. This 
 section does not apply to any deposit made by or in the name of 
 a person known to the president or managing officer to be living, 
 or which, with the accumulation thereon, is less than fifty 
 dollars. The superintendent of banks must incorporate in his 
 subsequent report such returns made to him as provided in this 
 section. Any president or managing officer of any bank who 
 neglects or refuses to make the sworn statement required by this 
 section shall be guilty of a misdemeanor. 
 
 Sec. 16. When any deposit with a bank shall be made by 
 or in the name of any married woman or minor, the same shall 
 be held for the exclusive right and benefit of such depositor, 
 and free from the control or lien of all other persons, except 
 creditors, and shall be paid, together with the dividends, if any, 
 and interest, if any, thereon to the person in whose name 
 deposits shall have been made, and the receipt or acquittance of 
 such minor shall be a valid and sufficient release and discharge 
 for such deposit, or any part thereof, to the bank. When any 
 deposit with a bank shall be made by any person in trust for 
 another, and no other or further notice of the existence and 
 terms of a legal and valid trust shall have been given in writ- 
 ing to such bank, in the event of the death of the trustee, the 
 same or any part thereof, together with the dividends or inter- 
 est, if any, thereon, may be paid to the person for whom the 
 deposit was made. When a deposit with a bank shall be made 
 by any person in the names of such depositor and another 
 person or persons, and in form to be paid to either or the 
 survivor or survivors of them, such deposit thereupon, and 
 
_ 7 — 
 
 any additions thereto made by either of such persons upon the 
 making thereof, shall become the property of such persons as 
 joint tenants, and the same, together with all interest thereon, 
 shall be held for the exclusive use of the persons so named, 
 and may be paid to either during the lifetime of all or any or 
 to the survivor or survivors after the death of one or more of 
 them, and such payments and the receipt or acquittance of the 
 one to whom such payment is made shall be a valid and suffi- 
 cient release and discharge to said bank for all payments made 
 on account of such deposit. 
 
 The surviving husband or wife of any deceased person, or, if 
 no husband or wife is living, then the children of such dece- 
 dent, and if no children are living, then the father or mother 
 of such decedent, may, without procuring letters of adminis- 
 tration, collect of any bank any sum which said deceased may 
 have left on deposit in such bank at the time of his or her 
 death; provided, such deposit shall not exceed the sum of five 
 hundred dollars. Any bank, upon receiving an affidavit stat- 
 ing that said depositor is dead, and that affiant is the surviving 
 husband or wife, as the case may be, or stating that decedent 
 left no husband or wife, and that affiant is, or affiants are, the 
 children, or the father or mother, of said decedent, and that 
 the whole amount that decedent left on deposit in any and all 
 banks of deposit in this state does not exceed the sum of five 
 hundred dollars, may pay to said affiant or affiants any deposit 
 of said decedent, if the same does not exceed the sum of five 
 hundred dollars, and the receipt of such affiant is sufficient 
 acquittance therefor. 
 
 Sec. 17. Every bank now in existence or hereafter organ- 
 ized shall keep in its offices, in a place accessible to the stock- 
 holders, depositors, and creditors thereof, and for their use, a 
 book containing a list of stockholders in such corporation, and 
 the number of shares of stock held by each; and every such 
 bank shall keep posted in its office, in a conspicuous place, 
 accessible to the public generally, a notice signed by the presi- 
 dent or secretary, showing : 
 
 1. The names of the directors of such bank. 
 
 2. The number and the par value of the shares of stock held 
 by each director. 
 
 The entries on such book and such notice shall be made and 
 posted within twenty-four hours after any transfer of stock, 
 and shall be prima facie evidence against each director and 
 stockholder of the number of shares of stock held by each. 
 
 Sec. 18. Every copartnership doing a banking business 
 shall keep in its office, in a place accessible to the partners and 
 depositors and the creditors thereof, a list of the partners and 
 the capital paid into the copartnership of each partner. 
 
 Sec. 19. The aggregate of paid up capital, together with 
 the surplus, of every bank, must equal ten per centum of its 
 
— 8 — 
 
 deposit liabilities ; such deposit liabilities shall not be increased 
 when such proportion of paid-up capital and surplus is want- 
 ing, and in no event shall said paid up capital be less than 
 the minimum paid up capital provided by this act. Andy pro- 
 vided also, that no savings bank shall be required to have a 
 paid up capital and surplus of more than one million dollars 
 or if organized without a capital stock, a reserve fund of more 
 than one million dollars. 
 
 Sec. 20. Every bank, other than a savings bank, shall at all 
 times have on hand, in lawful money of the United States, 
 gold and silver coin, gold certificates or silver certificates, an 
 amount equal to fifteen per centum of the aggregate amount of 
 its deposits, exclusive of state, county and municipal deposits. 
 The amount thus to be kept on hand shall be called its lawful 
 money, reserve. Three fifths of such lawful money reserve of 
 any bank other than a savings bank may consist of moneys on 
 deposit subject to call with any bank or banks other than a 
 savings bank in this state ; provided, that every bank receiving 
 deposits of other banks shall maintain as a lawful money 
 reserve at least twenty per centum of the aggregate amount of 
 its deposits, exclusive of state, county and municipal deposits. 
 If the lawful money reserve of any bank shall be less than the 
 amount required by this section, such bank shall not increase 
 its liability by making any new loans or discounts, otherwise 
 than by discounting bills of exchange payable on sight, or mak- 
 ing any dividends from profits until the full amount of its law- 
 ful money reserve has been restored. The superintendent of 
 banks may notify any bank, whose lawful money reserve shall 
 be below the amount herein required, to make good such 
 reserve ; and, if it shall fail for thirty days thereafter to make 
 good such reserve, such bank shall be deemed insolvent and 
 may be proceeded against under the provisions of this act. 
 
 Sec. 21. The directors of banks having a capital stock may, 
 at such times and in such manner as the by-laws prescribe, 
 declare and pay dividends to depositors and stockholders of 
 so much of the profits of the bank, and of the interest arising 
 from the capital and deposits, as may be appropriated for that 
 purpose under the by-laws or under their agreements with 
 depositors, but every such bank shall, before the declaration of 
 such dividend, carry at least one tenth (1-10) part of the net 
 profits of the stockholders for the preceding half year to its 
 surplus or reserve fund until the same shall amount to twenty- 
 five per centum of its paid-up capital stock. But the whole or 
 any part of such surplus or reserve fund, if held as the exclu- 
 sive property of stockholders, may at any time be converted 
 into paid-up capital stock, in which event such surplus or 
 reserve fund shall be restored in manner as above provided 
 until it amounts to twenty-five per centum of the aggregate 
 paid-up capital stock. A larger surplus or reserve fund may 
 
— 9 — 
 
 be created, and nothing herein contained shall be construed as 
 prohibitory thereof. The capital and the assets of the bank 
 are a security to depositors and stockholders, depositors having 
 the priority of security over the stockholders, but the by-laws 
 may provide that the same security shall extend to deposits 
 made by stockholders. 
 
 Sec. 22. Any corporation authorized by its articles of incor- 
 poration so to do, may combine the business of a commercial 
 bank and savings bank and trust company, or any or all of 
 them. 
 
 Sec. 23. Every bank doing a department business, shall 
 have paid up in cash a capital stock of not less than twenty-five 
 thousand dollars if it transacts both a commercial and savings 
 business ; and paid up in cash a capital stock of not less than 
 two hundred twenty-five thousand dollars if it transacts both a 
 commercial and trust business; and paid up in cash a capital 
 stock of not less than two hundred twenty-five thousand dollars 
 if it transacts both a savings and trust business; and paid up 
 in cash a capital stock of not less than two hundred twenty- 
 five thousand dollars if it transacts a commercial, savings and 
 trust business. Such capital stock shall be increased from time 
 to time in the same manner and to the same extent as provided 
 for in section nineteen of this act. 
 
 Sec. 24. Every bank, before it commences to do business 
 or before it opens a new department and commences to trans- 
 act business in or under such new department, shall obtain the 
 certificate of the superintendent of banks for the opening of 
 each of the departments specified. Each certificate herein 
 provided for shall be given when the superintendent shall, by 
 the examination required by this act, have satisfied himself 
 that the proper amount of cash has been paid in as capital 
 and the provisions of this act complied with. The applicant 
 shall pay for such certificate a fee of fifty dollars. 
 
 Sec. 25. Every bank shall maintain for each department 
 a lawful money reserve equal in amount to that required by 
 this act for the respective business conducted, and shall keep 
 separate and distinct the lawful money reserve of any depart- 
 ment from that of any other department; and all deposits 
 made with other banks, whether temporary or otherwise, shall 
 be assets of the respective departments by which they were 
 made, and shall be so carried on the books of such other banks, 
 and shall be repaid only upon the order of the department to 
 whose credit they stand. 
 
 No department shall receive deposits of any other depart- 
 ment of the same corporation ; provided, Jiowever, that any 
 bank having departments shall have the right to sell and 
 transfer any bonds, securities or loans from one department 
 to another upon receipt of the actual value thereof, if such 
 bonds, securities or loans are a legal investment for the depart- 
 ment purchasing the same under the provisions of this act. 
 
— 10 — 
 
 Sec. 26. Every bank having different departments shall 
 keep separate books of account for each department of its 
 business, and shall be governed as to all deposits, reserves, 
 investments and transactions relating to each department by 
 the provisions in this act specifically provided for the respec- 
 tive kind of business. 
 
 It shall keep all investments relating to the savings depart- 
 ment entirely separate and apart from the investments of its 
 other department or departments. 
 
 Every bank shall conduct the business of all its departments 
 in one building, or in adjoining buildings, and shall keep 
 entirely separate and apart in each department the cash, secu- 
 rities and property belonging to such department, and shall 
 not mingle the cash, securities and property of one department 
 with that of another. 
 
 Sec. 27. All money belonging to each department, whether 
 cash on hand or with other banks, and the investments made, 
 shall be held solely for the repayment of the depositors in 
 said department, until all depositors of such department shall 
 have been paid, and the overplus then remaining shall be 
 applied to the other liabilities of such bank. 
 
 Sec. 28. Every individual, firm or corporation doing a 
 banking business in this state must, on all its window-signs 
 and in advertising, and on letterheads and other stationery on 
 which its business is transacted, use the word ** savings" if it 
 conducts a savings business, or the word "trust" if it conducts 
 a trust department, and the word ''commercial" if it conducts 
 a commercial department. 
 
 Sec. 29. Every corporation heretofore created under the 
 laws of this state, doing a banking business therein, and which 
 has no capital stock, may elect to have a capital stock, and 
 may issue certificates of stock therefor, in the same manner 
 as corporations formed under the provisions of part IV, title 
 I, chapter I, article I, of the Civil Code, relating to the forma- 
 tion of corporations; provided, that no such corporation shall 
 use or convert any moneys or funds theretofore belonging to it, 
 or under its control, into capital stock; but such funds or 
 moneys must be held and managed only for the purposes and in 
 the manner for which they were created. Before such change is 
 made, a majority of the members of such corporation present 
 at a meeting called for the purpose of considering the proposi- 
 tion whether it is best to have a capital stock, its amount, and 
 the number of shares into which it shall be divided, must vote 
 in favor of having a capital stock, fix the amount thereof, 
 and the number of shares into which it shall be divided. 
 Notice of the time and place of holding such meeting, and 
 its object, must be given by the president of such corporation 
 by mailing notice of such meeting to each member of such 
 corporation at his last known post office address at least ten 
 
— 11 — 
 
 days prior to the day fixed for such meeting, and by publica- 
 tion in some newspaper printed and published in the county, 
 or city and county, in which the principal place of business 
 of the corporation is situated, at least once a week for three 
 successive weeks prior to the holding of the meeting. A copy 
 of the proceedings of this meeting, giving the number of per- 
 sons present, the votes taken, the notice calling the meeting, 
 the proof of its publication, the amount of capital actually 
 subscribed, and by whom, all duly certified by the president 
 and secretary of the corporation, must be filed in the office of 
 the secretary of state and clerk of the county where the arti- 
 cles of incorporation are filed. Thereafter such corporation 
 is possessed of all the rights and powers, and is subject to all 
 the obligations, restrictions, and limitations, as if it had been 
 originally created with a capital stock. 
 
 Sec. 30. Any bank may conduct a safe deposit department, 
 but shall not invest more than one tenth of its capital and sur- 
 plus in such safe deposit department. 
 
 Sec. 31. Any bank may sell the whole or any portion of its 
 assets to any other bank which may purchase its assets after 
 obtaining the consent of the stockholders of the selling and 
 of the purchasing bank holding of record at least two thirds 
 of the issued capital stock of each of such corporations; such 
 consent to be expressed either in writing excQuted and acknowl- 
 edged by such stockholders and attached to the instrument of 
 sale, or to a copy thereof, or by vote at a stockholders' meeting 
 of such banks called for that purpose. 
 
 The selling and purchasing banks may for such purposes 
 enter into an agreement of sale and purchase, which agreement 
 shall contain all the terms and conditions connected with the 
 sale and purchase of its assets. 
 
 Such agreement shall contain proper provision for the pay- 
 ment of liabilities of the selling bank, and in this particular 
 shall be subject to the approval of the superintendent of banks ; 
 and shall not be valid until such approval is obtained. Such 
 agreement may contain provisions for the transfer of all 
 deposits to the purchasing bank, subject, however, to the right 
 of every depositor of the selling bank to withdraw his deposit 
 in full on demand after such transfer, irrespective of the terms 
 under which it was deposited with the selling bank. 
 
 Sec. 32. Any bank receiving trust funds in accordance 
 with the provisions of this act relating to trust companies must 
 not mingle such trust funds with the other assets of the cor- 
 poration, and such funds shall not be carried or counted as 
 any part of the lawful reserve provided for in this act. The 
 officers of any bank who knowingly violate or consent to the 
 violation of this provision shall be guilty of a felony. 
 
 Sec. 33. No officer or employee of any bank shall, directly 
 
— 12 — 
 
 or indirectly, for himself or as the partner or agent of others, 
 borrow any of the deposits or other funds of such bank, nor 
 shall he nor any director become an endorser or surety for 
 loans to others nor in any manner be obligor for moneys bor- 
 rowed or loaned by such bank. The office of any officer or 
 employee who acts in contravention of the provisions of this 
 section shall immediately become vacant, and he shall be guilty 
 of a misdemeanor. 
 
 Sec. 34. No bank shall purchase or invest its capital or 
 money of its depositors, or any part of either, in the shares of 
 its own capital stock; nor loan its capital or the money of 
 its depositors, or any part of either, on the shares of its own 
 capital stock, unless such purchase or loan shall be necessary 
 to jfrevent loss on debts previously contracted in good faith. 
 
 Stock thus purchased or carried shall, within six months 
 from the time of its purchase, be sold or disposed of at public 
 or private sale. 
 
 The officers of any bank who knowingly violate or consent 
 to the violation of this provision shall be guilty of a felony. 
 
 Sec. 35. No director, or officer, or employee, or controlling 
 stockholder of any bank shall, directly or indirectly, for him- 
 self or as the partner or agent of others, sell or transfer, or 
 cause to be sold or transferred to the bank of which he is a 
 director, officer, employee, or controlling stockholder, any mort- 
 gage on real estate or contract arising from the sale of real 
 estate made by any corporation or syndicate in which such 
 director or officer, or employee, or controlling stockholder is 
 personally or financially interested, without the consent in 
 writing of the superintendent of banks. 
 
 Any director, or officer, or employee, or controlling stock- 
 holder of any bank who knowingly violates or consents to the 
 violation of this provision shall be deemed guilty of a felony. 
 
 Sec. 36. No bank receiving deposits of money shall pur- 
 chase, agree to purchase, underwrite or guarantee any bond 
 issue in excess of five per centum of its assets, except bonds 
 of the United States, of the State of California, of the cities, 
 cities and counties, counties or school districts of this state. 
 
 Sec. 37. No bank shall purchase, or invest its capital or 
 money of its depositors, or any part of either, in shares of 
 corporations, unless such purchase shall be necessary to prevent 
 loss on debts previously contracted in good faith, and stock thus 
 purchased or carried shall, within six months from the time 
 of its purchase, be sold or disposed of at public or private 
 sale, unless permission to hold said stock for a longer period 
 shall be obtained from the superintendent of banks. 
 
 The officers of any bank who knowingly violate or consent 
 to the violation of this provision shall be deemed guilty of a 
 felony. 
 
— 13 — 
 
 Sec. 38. A director, officer, agent or employee of any bank 
 who, 
 
 First — Knowingly receives or possesses himself of any of 
 its property otherwise than in payment for a just demand, 
 and with intent to defraud, omits to make or to cause or direct 
 to be made a full and true entry thereof in its books and 
 accounts ; or. 
 
 Second — Concurs in omitting to make any material entry 
 thereof ; or. 
 
 Third — Knowingly concurs in making or publishing any 
 written report, exhibit or statement of its affairs or pecuniary 
 condition containing any material statement which is false ; or. 
 
 Fourth — Having the custody or control of its books, will- 
 fully refuses or neglects to make any proper entry in the books 
 of such corporation as required by law, or to exhibit or allow 
 the same to be inspected and extracts to be taken therefrom 
 by the superintendent of banks, his chief deputy or any of his 
 examiners, shall be guilty of a felony. 
 
 Sec. 39. Any officer, director, agent, teller, clerk or em- 
 ployee of any bank who either, 
 
 First — Knowingly overdraws his account with such bank, 
 and thereby obtains the money, notes or funds of any such 
 bank; and, 
 
 Second — Asks or receives or consents or agrees to receive any 
 commissions, emolument, gratuity or reward, or any money, 
 property or thing of value or of personal advantage, for pro- 
 curing or endeavoring to procure for any person, firm or cor- 
 poration any loan from, or the purchase or discount of any 
 paper, note, draft, check or bill of exchange, by such bank, or 
 for permitting any person, firm or corporation to overdraw any 
 account with such bank, is guilty of a felony. 
 
 Sec. 40. No bank mentioned in this act shall make any 
 contract with any of its depositors whereby the stockholders' 
 liability provided for by the constitution of this state is in 
 any manner waived, and if any such contract shall be so made, 
 such contract shall be void. 
 
 Sec. 41. No director, officer, agent, or servant of any bank 
 shall, directly or indirectly, for his own personal benefit, pur- 
 chase or be interested in the purchase of any of the obligations 
 of said bank for a less sum than shall appear upon the face 
 thereof. 
 
 Sec. 42. No director, officer, agent, or servant of any bank 
 shall, directly or indirectly, for his own personal benefit, pur- 
 chase or be interested in the purchase of any of the assets of 
 said bank, for a less sum than the current market value thereof. 
 Every person violating the provisions of this subdivision shall 
 be guilty of a misdemeanor. 
 
 Sec. 43. No bank shall deposit any of its funds with any 
 other bank, unless such other bank has been designated as a 
 
— 14 — 
 
 depositary for its funds by the vote of a majority of the 
 directors or trustees of the bank making the deposits, exclusive 
 of the vote of any director or trustee who is an officer, director 
 or trustee of the depositary so designated. 
 
 Sec. 44. No bank shall hereafter make a loan secured by 
 the stock of another bank, if by making such loan the total 
 stock of such other bank held by such loaning bank as col- 
 lateral will exceed in the aggregate ten per centum of the 
 capital stock of such other bank; provided that no loan upon 
 the capital stock of any bank shall be made unless such bank 
 has been in existence for two or more years and has earned 
 and paid a dividend upon its capital stock. 
 
 Sec. 45. Interest unpaid, although due or accrued, on debts 
 owing to any bank, shall not be included in calculation of its 
 profits previous to a dividend. 
 
 Sec. 46. No bank shall invest or loan more than five per 
 centum of its assets in any one bond issue, except bonds of 
 the United States, of the State of California, of the counties, 
 cities and counties, cities or school districts of this state. 
 
 Sec. 47. No bank shall make any loan on real estate except 
 it be a first lien, but this provision shall not prevent the accept- 
 ance of a second lien to secure the payment of a debt previously 
 contracted in good faith. 
 
 Sec. 48. Any national bank of this state receiving the 
 deposits of banks organized and conducting business under 
 this act, must, at the request of the superintendent of banks, 
 submit to an examination by him, or his duly appointed exam- 
 iners, should the superintendent of banks in his discretion 
 deem it necessary or desirable that such examination be made ; 
 and the expense of such examination shall be paid by such 
 national bank; and if any such national bank shall refuse to 
 permit such examination to be made by the superintendent 
 of banks, then the superintendent of banks shall notify in writ- 
 ing any and all banks depositing its funds with such national 
 bank, to withdraw its deposits therefrom, and such bank shall 
 comply with such order, and failure so to do shall be a misde- 
 meanor. 
 
 Sec. 49. It shall not be lawful for any commercial bank, 
 individual banker, trust company, association, firm, stock com- 
 pany, or corporation, to advertise or put forth a sign as a 
 savings bank, either directly or indirectly, or in any way to 
 solicit or receive deposits as a savings bank, except in the case 
 of savings banks or banks having a savings department, sub- 
 ject to the provisions of this act. 
 
 Sec. 50. Every bank shall post in a conspicuous place in its 
 banking room the last certificate obtained from the superin- 
 tendent of banks, as provided for in section 127 of this act. 
 Every bank that fails to comply with the provisions of this 
 section is guilty of a misdemeanor. 
 
— 15 — 
 
 Sec. 51. Any court having appointed and having juris- 
 diction of any executor, administrator, guardian, assignee, 
 receiver, depositary or trustee, upon the application of such 
 executor, administrator, guardian, assignee, receiver, deposi- 
 tary or trustee, or upon the application of any person having 
 an interest in the estate administered upon by such officer or 
 trustee, after notice to other parties in interest as the court may 
 direct, and after a hearing upon such application, may author- 
 ize such officer or trustee to deposit any money then in his 
 hands as such officer or trustee or which may thereafter come 
 into his hands, and until the further order of the court, in 
 any bank organized under the laws of the State of California ; 
 and upon such deposit being made, the officer or trustee so 
 depositing the same shall thereafter and while such moneys 
 remain on deposit in such bank, be relieved and discharged 
 from all liability and responsibility therefor, and the bond 
 required of such officer or trustee given upon his appointment 
 shall be thereupon by said court reduced to such an amount 
 as the court may deem reasonable ; such deposit shall be repaid 
 only upon the orders of said court, and shall be a preferred 
 claim against such bank and be paid in full before any other 
 depositor of such bank shall have been paid. 
 
 ARTICLE II. 
 
 SAVINGS BANKS. 
 
 Sec. 60. Every savings bank must have actually paid in a 
 capital stock of not less than twenty-five thousand dollars, or, 
 if organized without capital stock, a reserve fund of at least one 
 million dollars and until said sum of twenty-five thousand 
 dollars or said sum of one million dollars shall be actually paid 
 in, the superintendent of banks shall refuse to issue the cer- 
 tificate required by this act ; provided that nothing herein shall 
 be construed to affect the provisions of section twenty-three of 
 this act relative to the capital stock required of banks doing a 
 departmental business. 
 
 Sec. 61. Savings banks may purchase, hold and convey real 
 and personal property as follows : 
 
 1. The lot and building in which the business of the bank 
 is carried on ; such lot and building shall not cost the savings 
 bank an amount exceeding its capital and surplus; and the 
 authority of a two-thirds vote of a full board of directors shall 
 be necessary to authorize the purchase or construction thereof. 
 
 2. Such as may have been mortgaged, pledged, or conveyed 
 to it in trust for its benefit in good faith, for money loaned in 
 pursuance of the regular business of the corporation. 
 
 3. Such as may have been purchased at sales under pledges, 
 
— 16 — 
 
 mortgages or deeds of trust made for its benefit for money so 
 loaned, and such as may be conveyed to it by borrowers in satis- 
 faction and discharge of loans made thereon. 
 
 No savings bank shall purchase, hold, or convey real estate 
 in any other case or for any other purpose ; and all -real estate 
 described in subdivision 3 of this section must be sold by the 
 bank within ten years after the title thereto is vested in it by 
 purchase or otherwise, unless permission to hold said real estate 
 for a longer period be given by the superintendent of banks in 
 writing. Parcels of real estate not sold within ten years, or 
 extension of said period as above provided, may be purchased 
 by any persons or parties wanting them, at the price to be 
 determined by arbitration of three persons appointed by the 
 superior court as appraisers, at the request of the would-be 
 purchaser. 
 
 No savings bank shall purchase, own, or sell personal prop- 
 erty, except such as may be requisite for its immediate accom- 
 modation for the convenient transaction of its business,' and 
 mortgages on real estate, bonds, securities or evidences of 
 indebtedness, public or private, gold and silver bullion and 
 United States mint certificates of ascertained value, and evi- 
 dences of debt issued by the United States. 
 
 No savings bank shall purchase, hold or convey bonds, securi- 
 ties or evidences of indebtedness, public or private, except as 
 follows : 
 
 (a) Bonds or interest-bearing notes or obligations of the 
 United States, or those for which the faith of the United States 
 is pledged for the payment of interest and principal. 
 
 (6) Bonds of this state. 
 
 (c) Bonds of any state in the United States that have not, 
 within five years previous to making such investment by such 
 bank, defaulted in the payment of any part of either principal 
 or interest thereof. 
 
 (d) Bonds of any city, county, city and county, town, town- 
 ship or school district of this state. 
 
 (e) Bonds of any city, town or county which has in each 
 case, at the time of the investment, more than twenty thousand 
 inhabitants, as ascertained by the United States or state census 
 made next preceding such investment, in any of the states of 
 the United States, other than in the State of California, issued 
 pursuant to the authority of any law of such states ; provided, 
 the entire bonded indebtedness of such city or county or town 
 shall not exceed five per centum of the assessed value of the 
 taxable property therein, including the issue of bonds in which 
 said investment is made as shown by the last assessment pre- 
 ceding the investment; and provided further, that such city, 
 town or county or state in which it is situated has not defaulted 
 in the payment of any part of either principal or interest 
 thereon within five years previous to making such investment. 
 
— 17 — 
 
 (/) First mortgage or underlying bonds of any steam rail- 
 way, the income of which is sufficient to pay all operating 
 expenses and fixed charges, and which is completed and oper- 
 ated, wholly or in part, in any of the states of the United 
 States. 
 
 (g) Bonds of street railroads, water, light, light and power, 
 gas, and other public utility and industrial corporations. All 
 bonds authorized for investment by this section shall be secured 
 by a jnortgage or trust deed, which is, at the time of making 
 such investment, (1) a first or underlying mortgage or trust 
 deed of the corporation issuing said bonds, or (2) a refunding 
 mortgage or trust deed used to retire all prior lien mortgage 
 debts of said corporation outstanding at the time of making 
 said investment ; provided, that the income of such corporation 
 is sufficient to pay all operating expenses and fixed charges 
 and such income shall have been so sufficient for the term of 
 three years preceding the issuance of such bonds, or that pay- 
 ment of its said bonds have been guaranteed by a corporation 
 that has paid all its operating expenses and fixed charges for a 
 period of three years prior to guaranteeing the payment of 
 such bonds. 
 
 (h) First mortgage bonds or deeds of trust issued by real 
 estate corporations ; provided, that said bond issue shall not 
 exceed sixty per centum of the market value of the real estate 
 taken as security. 
 
 No savings bank shall purchase the bonds of any corporation 
 or make a loan on the bonds of any corporation, if the franchise 
 of such corporation expires prior to the maturity of its bonds, 
 or if the franchise or special privilege granted to such corpora- 
 tion by any city, county, or city and county, expires before the 
 maturity of such bond issue. 
 
 Sec. 62. No savings bank shall, directly or indirectly, deal 
 or trade in real or personal property in any other case or for 
 any other purpose than is authorized by this act, and shall not 
 contract any debt or liability for any purpose whatever other 
 than for deposits, except as in this section provided. 
 
 Savings banks may pay regular depositors, when requested 
 by them, by draft upon deposits to the credit with their banks, 
 and charge current rate of exchange for such drafts. 
 
 No savings bank shall borrow money, or pledge or hypothe- 
 cate any of its securities, except to meet the immediate demands 
 of its own depositors, and then only in pursuance of a resolu- 
 tion adopted by a vote of a majority of its board of directors, 
 duly entered upon their minutes, wherein shall be recorded the 
 ayes and nays upon each vote; also with the written approval 
 of the superintendent of banks, and he shall have the authority 
 to fix the amount to be borrowed, and the term and rate of 
 
 2— BA 
 
— 18 — . 
 
 interest thereon; provided, however, that savings banks may, 
 in the manner authorized by law, and without the written 
 approval of the superintendent of banks, borrow the public 
 moneys of the state, counties, cities and counties, and towns 
 and receive such public moneys on deposit. 
 
 Sec. 63. Savings banks may issue general certificates of 
 deposit, which are transferable, as in other cases, by indorse- 
 ment and delivery ; may issue, when requested by the depositor, 
 special certificates, acknowledging the deposit by the person 
 therein named of a specified sum of money, and expressly pro- 
 viding on the face of such certificate that the sum so deposited 
 and therein named may be transferred only on the books of the 
 bank ; payment thereafter made by the bank to the depositor 
 named in such certificate, or to his assignee named upon the 
 books of the bank, or in case of death, to the legal representa- 
 tive of such person, of the sum for which such special certificate 
 was issued, shall discharge the bank from all further liability 
 on account of the money so paid. 
 
 All time certificates of deposit, issued by a savings bank, 
 shall be subject to the same limitations and conditions as 
 applied to other deposits, and notice thereof shall be given 
 by the words ' ' Subject to conditions of agreement with depos- 
 itors" printed on the face of the certificate issued. 
 
 Sec. 64. Savings banks may prescribe by their by-laws, or 
 by contract with depositors, the time and conditions on which 
 repayment is to be made to depositors, except as in this act 
 otherwise prohibited ; but whenever there is any call by depos- 
 itors for repayment of a greater amount than the bank may 
 have disposable for that purpose, the directors or officers thereof 
 must not make any new loans or investments of the funds of 
 the depositors, or of earnings thereof, until such excess of .call 
 has ceased. The directors of any such bank, having no capital 
 stock, must retain, on each dividend day, at least ten per 
 centum of the net profits of the bank, to constitute a reserve 
 fund, which must be invested in the same manner as other 
 funds of the bank, and must be used toward paying any losses 
 which the bank may sustain in pursuing its lawful business. 
 The bank may provide by its by-laws for the disposal of any 
 excess in the reserve fund, as provided for in section 21 of this 
 act, and the final disposal, upon the dissolution of the bank, of 
 the reserve fund, or of the remainder thereof, after payment of 
 losses. 
 
 Sec. 65. No director, or officer of any savings bank must, 
 directly or indirectly, for himself or as the partner or agent 
 of others, borrow any of the deposits or other funds of such 
 bank, nor must he become an endorser or surety for loans to 
 others, nor in any manner be obligor for moneys borrowed of 
 or loaned by such bank. The office of any director or officer 
 
— 19 — 
 
 who acts in contravention of the provisions of this section 
 immediately thereupon becomes vacant, and every director or 
 officer authorizing or consenting to such loan, and the person 
 who receives such loan, shall severally be guilty of a misde- 
 meanor. 
 
 Sec. 66. Receiving deposits, issuing certificates of deposit, 
 checks, and bills of exchange, and the like, in the transaction 
 of the business of savings banks, must not be construed to be 
 the creation of debt within the meaning of the phrase "create 
 debt ' ' in section three hundred and nine of the Civil Code and 
 as provided for in this act. 
 
 Sec. 67. 1. No savings bank shall loan money except on 
 adequate security of real or personal property, and no such 
 loan shall be made for a period, longer than ten years ; pro- 
 vided that no loans shall be made on unsecured notes. 
 
 2. No savings bank shall invest or loan more than five per 
 centum of its assets on any one bond issue, except bonds of 
 the United States, of the State of California, of the counties, 
 cities and counties, cities or school districts of this state. 
 
 3. No savings bank shall loan money to exceed ninety per 
 centum of the market value of bonds specified in subdivisions 
 (a), (&), (c) and (d) of subdivision three of section sixty-one 
 of this act, and no more than eighty-five per centum of the mar- 
 ket value of bonds specified in subdivision (e) of subdivision 
 three of section sixty-one of this act, and no more than seventy- 
 five per centum of the market value of bonds specified in sub- 
 divisions (/*) and (g) of subdivision three of section sixty-one 
 of this act, and no more than sixty-five per centum of the mar- 
 ket value of personal property and stocks of corporations or 
 banks ; provided, however, that no loan shall be made upon the 
 capital stock of any corporation or bank unless such corporation 
 or bank has been in existence for two or more years and has 
 earned and paid a dividend on its capital stock. 
 
 4. No savings bank shall make any loan on the security of 
 real estate except it be a first lien and in no event to exceed 
 sixty per centum of the market value of any piece of real estate 
 to be taken as security, except for the purpose of facilitating 
 the sale of property owned by the savings bank ; provided, that 
 a second lien may be accepted to secure the repayment of a debt 
 previously contracted in good faith. 
 
 5. No savings bank shall purchase, invest or loan its capital 
 or the money of its depositors, or any part of either, in mining 
 shares or stock. 
 
 6. No savings bank shall hereafter make a loan secured by 
 the stock of another bank, if by making such loan the total 
 stock of such other bank held by such loaning bank as collateral 
 will exceed in the aggregate ten per centum of the capital 
 stock of such other bank. 
 
 Any president or managing officer who knowingly consents 
 
— 20 — 
 
 to a violation of the above provisions shall be deemed guilty 
 of a felony. 
 
 Sec. 68. Savings banks must carry in cash, or its equiva- 
 lent, an amount equal to four per centum of its deposit liabili- 
 ties, of which two per centum of such liabilities shall be in coin 
 or currency of standard value in its own keeping. The amount 
 thus carried shall be called the lawful money reserve. 
 
 No new loans shall be made during any deficiency in the 
 lawful money reserve. 
 
 Deposits with commercial banks and trust companies, on 
 open account, to facilitate business transactions, as provided 
 in this section, shall be permitted, and shall not be construed 
 as loans. 
 
 Not more than five per centum of the deposits of any sav- 
 ings bank shall be deposited with any one bank. 
 
 Sec. 69. Every savings bank, and the business of every 
 savings department of every other bank, must be conducted 
 under and in accordance with the provisions of this act. 
 
 ARTICLE III. 
 
 COMMERCIAL BANKS. 
 
 Sec. 80. No commercial bank shall make any loans to any 
 person, company, corporation or firm to an amount exceeding 
 one tenth part of the capital stock of such bank actually paid 
 in and surplus; provided, however, that a bank may loan to 
 any person, company, corporation or firm a sum not exceed- 
 ing twenty-five per centum of its capital stock actually paid 
 in and surplus upon security worth at least fifteen per centum 
 more than the amount of its loans ; or it may loan ten per 
 centum of such capital and surplus as first above provided, 
 and a further sum not exceeding fifteen per centum of such 
 capital and suplus upon security worth at least fifteen per 
 centum more than the amount of such loan so secured; except 
 that a commercial bank may buy from, or discount, for any 
 person, company, corporation or firm, or loan upon bills of 
 lading, warehouse receipts and bills of exchange, drawn in 
 good faith against actual existing value or against commercial 
 or business paper actually owned by the person negotiating 
 the same. 
 
 Sec. 81. No loan shall be made by any commercial bank 
 upon the securities of one or more corporations, the payment 
 of which is undertaken, in whole or in part, severally, but not 
 jointly, by two or more individuals, firms, or corporations : 
 
 (a) If the borrowers or underwriters be obligated abso- 
 lutely or contingently to purchase the securities, or any of 
 them, collateral to such loan, unless the borrowers or under- 
 writers shall have paid on account of the purchase of such 
 
— 21 — 
 
 securities an amount in cash, or its equivalent, equal to at 
 least twenty-five per centum of the several amounts for which 
 they remain obligated in completing the purchase of such 
 securities ; 
 
 (6) If the commercial bank making such loan be liable, 
 directly or indirectly, or contingently, for the repayment of 
 such loan or any part thereof ; 
 
 (c) If its term, including any renewal thereof by agree- 
 ment, express or implied, exceed the period of one year ; 
 
 (d) Or to an amount under any circumstances in excess of 
 twenty-five per centum of the capital and surplus of the com- 
 mercial bank making such loan. 
 
 Sec. 82. Every commercial bank which is now transacting, 
 or which may hereafter transact business, shall have actually 
 paid in a capital stock of not less than twenty-five thousand 
 dollars; and until said sum of twenty-five thousand dollars 
 shall be actually paid in, the superintendent of banks shall 
 not issue the certificate required by section twenty-four of this 
 act; provided that nothing herein shall be construed to aifect 
 the provisions of section twenty-three of this act relative to the 
 capital stock required of banks doing a departmental business. 
 
 Sec. 83. No commercial bank shall loan any of its funds 
 to any of its directors unless such loan shall first have been 
 approved by a two-thirds vote of its board of directors, on 
 which vote the borrowing director shall not participate, and 
 the fact of making such loan, the name of the director borrow- 
 ing the same, the time when the same shall become due, the 
 rate of interest thereon, and the amount, value, and character 
 of the security pledged therefor, if any, shall be forthwith 
 forwarded by the cashier of such bank to the superintendent 
 of banks ; and if the superintendent of banks shall disapprove 
 of such loan, he shall immediately notify such bank of his dis- 
 approval thereof, and such bank shall forthwith collect such 
 loan ; provided, however, that the total loans to all directors of 
 such bank shall not at any one time exceed thirty per cent of 
 the capital and surplus of such bank; and provided, further) 
 that each bank having any loan or loans outstanding to any 
 of its directors shall once each month report in writing to the 
 superintendent of banks the name of each director to whom 
 such loan is made, the amount of such loan, the rate of interest 
 thereon, the time when the same shall fall due, and the security 
 pledged therefor, if any. Any officer or director of any com- 
 mercial bank violating any of the provisions of this section 
 shall be guilty of a felony. 
 
22 
 
 ARTICLE IV. 
 
 TRUST COMPANIES. 
 
 Sec. 90. Any corporation which has been or shall be incor- 
 porated under the general incorporation laws of this state, 
 authorized by its articles of incorporation to act as executor, 
 administrator, guardian, assignee, receiver, depositary or trus- 
 tee, and having a capital of not less than two hundred thousand 
 dollars actually paid in, in cash, may be appointed to act in 
 such capacity in like manner as individuals and shall be known 
 as a trust company. In all cases in which it is required that 
 an executor, administrator, guardian, assignee, receiver, depos- 
 itary or trustee, shall qualify by taking and subscribing an 
 oath, or in which an affidavit is required, it shall be a sufficient 
 qualification by such corporation if such oath shall be taken 
 and subscribed or such affidavit made by the president or 
 secretary or manager or trust officer thereof, and such officer 
 shall be liable for the failure of such trust company to perform 
 any of the duties required by law to be performed by indi- 
 viduals acting in like capacity and subject to like penalties; 
 and such trust company shall be liable for such failure to the 
 full amount of its capital stock; provided, any such appoint- 
 ment as guardian shall apply to the .estate only, and not to 
 the person. Such trust company shall be entitled to and shall 
 be allowed proper compensation for all the services performed 
 by them under the foregoing provisions of this act; but such 
 compensation shall not exceed that allowed to. natural persons 
 for like services. 
 
 Sec. 91. Any court, having appointed and having juris- 
 diction of any executor, administrator, guardian, assignee, 
 receiver, depositary, or trustee, upon the application of such 
 officer or trustee, or upon the application of any person having 
 an interest in the estate administered by such officer or trustee, 
 after notice to the other parties in interest as the court may 
 direct, and after a hearing upon such application, may author- 
 ize such officer or trustee to deposit any moneys then in his 
 hands, or which may come into his hands thereafter, and until 
 the further order of said court, with any such trust company ; 
 and upon deposit of such money, and its receipt and acceptance 
 by such trust company, the said officer or trustee shall be 
 discharged from further care or responsibility therefor. Such 
 deposits shall be paid out only upon the orders of said court. 
 
 Sec. 92. It shall be lawful for any public administrator to 
 deposit with any trust company having not less than two 
 hundred thousand dollars paid-up capital, doing business in 
 the county, or city and county, in which he is acting as such 
 administrator, any and all moneys of any estate upon which 
 
— 23 — 
 
 he is administering, not required for the current expenses of 
 the administration; provided that such corporation deposit 
 with the state treasurer the securities required by this act. 
 Such deposits shall relieve the public administrator from depos- 
 iting with the county treasurer the moneys so deposited with 
 such corporation. Moneys so deposited by a public adminis- 
 trator may be drawn, upon the order of such administrator, 
 countersigned by a judge of a superior court, when required 
 for the purpose of administration, or otherwise. 
 
 Sec. 93. Whenever, in the judgment of any court having 
 jurisdiction of any estate in process of administration by any 
 executor, administrator, guardian, assignee, receiver, deposi- 
 tary, or trustee, and after such notice to the parties in interest 
 as the court shall direct, and after a hearing on such applica- 
 tion, the said court may order the said officer or trustee to 
 deposit with any such trust company, for safe-keeping, such 
 portion or all of the personal assets of said estate as it shall 
 deem proper; and thereupon said court shall, by an order of 
 record, reduce the bond to be given or theretofore given by 
 such officer or trustee, so as to cover only the estate remaining 
 in the hands of said officer or trustee; and the property as 
 deposited shall thereupon be held by such trust company, 
 under the orders and directions of said court. Any court 
 having jurisdiction of an estate being administered by a public 
 administrator, may direct such public administrator to deposit 
 all or any part of the moneys of the estate not required for the 
 current expenses of the administration, with any such trust 
 company doing business in the county, or city and county, 
 where such public administrator is acting. 
 
 Sec. 94. Such trust company shall not be required to give 
 any bond or security in case of any appointment hereinbefore 
 provided for, except as hereinafter provided, but shall be 
 responsible for all investments which shall be made by it of 
 the funds which may be entrusted to it for investment by such 
 court, and shall be liable as natural persons in like positions 
 now are, and as hereinafter provided. 
 
 Sec. 95. Such trust company shall pay interest upon all 
 moneys held by it as trustee, by virtue of this act, at such rate 
 as may be agreed upon at the time of its acceptance of any 
 such appointment, or as shall be provided by the order of the 
 court. 
 
 Sec. 96. Each trust company, before accepting any such 
 appointment or deposit, shall deposit with the treasurer of 
 state, for the benefit of the creditors of said trust company, 
 the sum of one hundred thousand dollars ($100,000), in bonds 
 of the United States, or municipal bonds of this state, or' of 
 any county, or city, city and county, or school district thereof, 
 or in mortgages on improved and productive real estate in this 
 state, being first liens thereon, and the real estate being worth 
 
— 24 — 
 
 at least twice the amount loaned thereon ; said bonds or mort- 
 gages to be approved by the superintendent of banks. The 
 bonds and securities so deposited may be exchanged from time 
 to time for other securities, receivable as aforesaid. Said bonds 
 of the United States, or municipal bonds of this state, or of 
 any county, city, city and county, or school district thereof, 
 to be registered in the name of said treasurer, officially, and 
 all said securities to be subject to sale and transfer, and to the 
 disposal of the proceeds by said treasurer, only on the order 
 of a court of competent jurisdiction and as hereinafter pro- 
 vided. The state shall be responsible for the safe return of 
 such securities deposited with the treasurer of the state under 
 this section. 
 
 Sec. 97. Any such trust company, having a paid-up capital 
 in excess of two hundred thousand dollars, may be permitted 
 by the superintendent of banks to mortgage any improved 
 and productive real estate owned by it, in excess of said 
 amount, to the treasurer of state, for such sum as the said 
 superintendent of banks may determine, and such mortgage 
 may be deposited with said treasurer, and when so deposited 
 it shall be included in the amount of securities hereinabove 
 required to be deposited with said treasurer for the benefit of 
 the creditors of said trust company. 
 
 Sec. 98. So long as the trust company so depositing shall 
 continue solvent, it shall be permitted to receive from said 
 treasurer the interest or dividends on said deposits, and when- 
 ever any trust company receives trust funds as such trustee 
 in excess of five hundred thousand dollars, it shall deposit 
 with the state treasurer securities mentioned in section 96 of 
 this act, to be approved by the superintendent of banks, in 
 the amount of another one hundred thousand dollars, and for 
 each five hundred thousand dollars of such trust funds there- 
 after received, an additional deposit of fifty thousand dollars 
 of such securities likewise approved shall be made with the 
 said state treasurer ; provided, however, that no trust company 
 shall be required to deposit more than one million dollars of 
 such securities. 
 
 The state shall be responsible for the safe return of such 
 securities deposited with the treasurer of the state under this 
 section. 
 
 Sec. 99. When any part of such deposit with the state 
 treasurer is made in bonds and mortgages, it shall be accom- 
 panied by full abstracts of titles and searches, or by certificates 
 of title issued by a person, company or corporation, whose 
 business or objects are to make searches of titles and issue 
 certificates of titles, and which said person, company or cor- 
 poration shall be one designated or approved by said super- 
 intendent of banks, and shall be examined and approved by 
 or under the direction of the said superintendent of banks. 
 
— 25 — 
 
 The fees for an examination of title by counsel to be paid by 
 the trust company making the deposit, shall not exceed twenty 
 dollars for each mortgage, and the fee for each appraiser, not 
 exceeding two, besides expenses, shall be five dollars for each 
 mortgage. 
 
 Sec. 100. Before the superintendent of banks issues his 
 certificate to any trust company, there must be filed in his 
 office the affidavit of a majority of its board of directors or 
 the persons named in said articles as the first directors of the 
 corporation that at least two hundred thousand dollars of the 
 capital stock has actually been subscribed and paid in to a 
 person named in such affidavit for the benefit of the corpo- 
 ration. 
 
 Sec. 101. On making the report required by the terms of 
 this act, every trust company shall, in addition to the other 
 facts to be reported on, furnish a list and brief description of 
 the trusts held by such corporation, the source of the appoint- 
 ment thereto, and the amount of real and personal estate held 
 by such trust company by virtue thereof; except that mere 
 mortgage trusts, wherein no action has been taken by such 
 corporation, shall not be included in such statement. 
 
 Sec. 102. Any trust company which desires to retire from 
 business under this act, shall furnish to the superintendent of 
 banks satisfactory evidence of its release and discharge from 
 all the obligations and trusts hereinbefore provided for ; where- 
 upon he shall revoke his certificate to such trust company, and 
 thereupon the treasurer of state shall return to said trust 
 company all its securities. 
 
 Sec. 103. Except as herein otherwise provided, any trust 
 company exercising the powers and performing the duties 
 provided for in this act, shall keep inviolate all communica- 
 tions confidentially made to it touching the existence, condition, 
 management and administration of any trusts confided to it; 
 and no creditor or stockholder of any such trust company shall 
 be entitled to disclosure of any such communication ; provided, 
 however, that the president, manager and secretary of such 
 trust company shall be entitled to knowledge of such communi- 
 cation ; and provided, further, that in any suit or proceeding 
 touching the existence, condition, management or administra- 
 tion of such trust, the court wherein the same is pending may 
 require disclosure of any such communication. 
 
 Sec. 104. The use of the word '* trust'* in combination with 
 or in connection with the word ** company," "corporation," 
 ** incorporation, " ** association," "society," "organization," 
 or "syndicate," is hereby prohibited to all persons, firms, 
 associations, companies or corporations other than corporations 
 provided for by this act. Every person, firm, association, 
 company, or corporation which uses the word "trust" in com- 
 bination with or in connection with the word "company," 
 
— 26 — 
 
 ''corporation," ** incorporation, " "association," ** society," 
 "organization," or "syndicate," as the name nnder which 
 business is done or transacted, shall be subject to the provisions 
 of this act and to the supervision of the superintendent of 
 banks. Any person, firm, association, company, or corporation 
 making use of the word "trust" in combination or in connec- 
 tion with the word "company," "corporation," "incorpora- 
 tion," "association," "society," "organization," or "syndi- 
 cate," in the manner hereinabove mentioned, in the transac- 
 tion of business, and not subject to the provisions of this act 
 and the supervision of the superintendent of banks, shall be 
 guilty of a misdemeanor. 
 
 No corporation hereafter formed shall use the word "trust" 
 or "trustee" as a part of its corporate name unless it shall be 
 authorized by its articles of incorporation to act as executor, 
 administrator, guardian, assignee, receiver, depositary or trus- 
 tee; nor shall any corporation hereafter formed accept or 
 execute any trust mentioned in this act, unless it shall have 
 complied with the provisions of this act. 
 
 Sec. 105. Every trust company shall invest its capital and 
 trust funds received by it in accordance with the laws relative 
 to the investment of funds deposited with savings banks, unless 
 a specific agreement to the contrary is made between the trust 
 company and the party creating the trust. 
 
 Sec. 106. Every trust company desiring to do or doing a 
 commercial banking business or a savings bank business, or 
 both, in addition to its trust business, shall have paid up in 
 cash the capital as provided in section twenty-three of this 
 act. Such capital for each such department shall be increased 
 from time to time in the same manner and to the same extent 
 as though such bank were conducting separate banks instead 
 of separate departments. 
 
 Every trust company doing a departmental business shall 
 comply with the provisions of this act governing each of such 
 departments as to its deposits, reserves, investments and loans. 
 
 ARTICLE V. 
 
 STATE BANKING DEPARTMENT. 
 
 Sec. 120. There is hereby created a state banking depart- 
 ment. The chief officer of such department shall be the super- 
 intendent thereof, and be known as the superintendent of 
 banks. He shall be appointed by the governor, and shall hold 
 his office for a term of four years, or until his successor shall 
 have been appointed and qualified. No person shall be 
 appointed superintendent of banks who has not had active 
 banking experience, either as executive officer or director of 
 some commercial bank, savings bank or trust company, at least 
 
— 27 — 
 
 one half of which experience has been had in this state. He 
 shall not, either directly or indirectly, be interested in any 
 commercial bank, savings bank or trust company, or as an 
 individual banker. He shall receive an annual salary of ten 
 thousand dollars, to be paid monthly out of the state treasury 
 on a warrant of the controller. He shall, within fifteen days 
 from the time of notice of his appointment, take and subscribe 
 to the constitutional oath of office, and file the same in the office 
 of the secretary of state, and execute to the people of the state 
 a bond in the penal sum of fifty thousand dollars, with corpo- 
 rate surety or two or more sureties to be approved by the 
 governor of the state, conditioned for the faithful discharge of 
 the duties of his office. 
 
 Sec. 121. The superintendent of banks shall employ a chief 
 deputy, attorney and such clerks and examiners as he may 
 need to discharge in a proper manner the duties imposed upon 
 him by law, none of which examiners or clerks or attorney 
 shall be interested in any bank in this state as director, stock- 
 holder, officer or employee; they shall perform such duties as 
 he shall assign to them. He shall fix the compensation of the 
 attorney, clerks, and examiners, which compensation shall be 
 paid monthly, on his certificate and on the warrant of the 
 controller, out of the state treasury. The chief deputy shall, 
 within fifteen days from the time of his appointment, take and 
 subscribe to the constitutional oath of office, and file the same 
 in the office of the secretary of state, and his compensation 
 shall be four thousand dollars per annum ; provided, however, 
 that the total expenditure provided for in this act shall not 
 exceed seventy-five thousand dollars per annum. 
 
 No person shall be appointed a chief deputy who has not had 
 at least three years' active banking experience, either as an 
 executive officer or employee of some bank in this state. In 
 case of the absence or inability to act, or vacancy in the office 
 of superintendent of banks for thirty consecutive days, the 
 chief deputy shall execute to the people of the state a bond in 
 the penal sum of fifty thousand dollars, with corporate surety 
 or two sureties to be approved by the controller and treasurer 
 of the state, conditioned for the faithful discharge of the duties 
 of the superintendent while such deputy acts as superintend- 
 ent, and upon filing such bond such deputy shall have all the 
 power and duties of superintendent of banks, until the inability 
 of the superintendent shall be removed, or until a new super- 
 intendent of banks shall have been appointed by the governor. 
 No superintendent of banks, chief deputy or bank examiner 
 shall be or shall become indebted, directly or indirectly, either 
 as borrower, endorser, surety, or guarantor to any bank under 
 his supervision or subject to his examination. 
 
 Sec. 122. The superintendent of banks shall have his prin- 
 cipal office in the city of San Francisco, and may also have 
 
— 28 — 
 
 suitable rooms in the city of Los Angeles, wherein to conduct 
 the business of the state banking department. The superin- 
 tendent shall, from time to time, obtain the necessary furniture, 
 stationery, fuel, lights, and other proper conveniences for the 
 transaction of such business; the expense of which shall be 
 paid out of the state treasury on the certificate of the superin- 
 tendent and the warrant of the controller. 
 
 Sec. 123. A fupd is hereby created, to be known as the 
 state banking fund, and out of said fund shall be paid all the 
 expenses incurred in and about the conduct of the business of 
 the banking department, including the salary of the superin- 
 tendent, chief deputy, attorney, clerks and examiners, travel- 
 ing expenses, furnishing of rooms and rent. Each bank shall 
 pay annually its share of the total amount of the salaries and 
 expenses of the banking department, to be determined by the 
 proportion which the deposits of any such bank bear to the 
 aggregate deposits of all such banks receiving certificates of 
 authorization from the superintendent of banks, as shown by 
 the last report of such bank to the superintendent of banks. 
 
 All moneys collected or received by the superintendent of 
 banks, under and by virtue of the provisions of this act, shall 
 be by him delivered to the treasurer of the state, who shall 
 deposit the same to the credit of said banking fund, and the 
 unexpended balances of all moneys heretofore paid into the 
 state treasury by any of the bank commissioners shall be 
 retained and become a part of said fund. If any such bank 
 shall fail to pay such charges as are herein required, the super- 
 intendent shall forthwith cancel the certificate of said bank. 
 
 Sec. 124. Every bank shall be subject to the inspection of 
 the superintendent of banks. The superintendent of banks, 
 the chief deputy, or some competent person or persons to be 
 appointed by the superintendent of banks, to be known as 
 examiners, shall visit and examine every bank, other than a 
 savings bank, at least twice in each year, and every savings 
 bank at least once in each year. On every such examination 
 inquiry shall be made by him as to the condition and resources 
 of the bank, the mode of conducting and managing its affairs, 
 the action of its directors, the investment and disposition of its 
 funds, the safety and prudence of its management, the security 
 afforded to those by whom its engagements are held and 
 whether the requirements of its articles of incorporation and 
 the law have been complied with in the administration of its 
 affairs, and as to such other matters as the superintendent may 
 prescribe. He shall have power in like manner to examine 
 every bank whenever, in his judgment, its condition and man- 
 agement is such as to render &n examination of its affairs 
 necessary or expedient. 
 
 He shall also have power to examine, or cause to be exam- 
 ined, every agency located in this state of any foreign bank or 
 
— 29 — 
 
 banking corporation, for the purpose of ascertaining- whether 
 it has complied with the laws of the state, and for such other 
 purposes and as to such other matters as the superintendent 
 may prescribe. 
 
 The superintendent, chief deputy, and every such examiner 
 shall have the power to administer an oath to any person whose 
 testimony he may require on the examination of any bank, or 
 on the examination of any agency of any foreign bank or bank- 
 ing corporation, and to compel appearance and attendance of 
 any such person for the purpose of any such examination. 
 The result of such examination shall be certified by the persons 
 making the examination on the records of the bank examined. 
 
 When a bank shall have been examined by any examiner, 
 and he finds securities therein which are, in his judgment, of 
 doubtful value, he shall report the same to the superintend- 
 ent of banks, who thereupon shall be authorized to employ 
 appraisers to appraise said securities, at a compensation to be 
 fixed by the superintendent of banks. 
 
 Sec. 125. Every examiner appointed by the superintendent 
 of banks shall, before entering upon the discharge of his duties, 
 take the constitutional oath of office and cause the same to be 
 filed in the office of the secretary of state. No such examiner 
 shall be appointed receiver of any bank whose books, papers 
 and affairs he shall have examined pursuant to his appoint- 
 ment. 
 
 Sec. 126. If the chief deputy or any examiner shall have 
 knowledge of the insolvency or unsafe condition of any bank 
 mentioned in this act, and that it is unsafe or inexpedient to 
 permit said bank to continue business, and shall neglect to 
 forthwith report such fact in writing over his signature to the 
 superintendent of banks, he shall be guilty of felony. 
 
 Sec. 127. No bank shall transact any business in this state 
 without the written approval of the superintendent of banks, 
 and without his written certificate stating that it has complied 
 with the provisions of this act, and with all the requirements 
 of law, and that it is authorized to transact, within this state, 
 the business specified therein, and that the requisite capital 
 has been in good faith subscribed and paid up in cash or, if 
 organized without capital stock that it has accumulated the 
 requisite surplus or reserve fund. Before issuing such certifi- 
 cate the superintendent of banks shall examine, or cause an 
 examination to be made, in order to ascertain whether the 
 requisite capital of such bank has been paid up in cash or the 
 requisite reserve or surplus fund has been accumulated. The 
 superintendent of banks shall not authorize such bank to com- 
 mence business until it appears from such examination, or 
 other evidence satisfactory to him, that the requisite capital 
 has been, in good faith, subscribed and paid in in cash, or 
 that the requisite surplus or reserve fund has been accumulated 
 
— 30 — 
 
 or paid in in cash, and until such bank shall have paid a fee 
 of fifty dollars. Every person who neglects to comply with any 
 requirement of this section shall be guilty of a misdemeanor. 
 
 Sec. 128. When the articles of incorporation shall have heeh 
 filed with the secretary of state, and application made for the 
 issuance of a certificate to do business as a bank, the superin- 
 tendent of banks shall ascertain, from the best sources of 
 information at his command, whether the character and general 
 fitness of the persons named as stockholders are such as to 
 command the confidence of the community in which such bank 
 is proposed to be located, and, if so satisfied, he shall, within 
 sixty days after such application has been made to him, issue, 
 under his hand and official seal, the certificate of authorization 
 required by this act. The superintendent of banks shall trans- 
 mit such certificate of authorization to the county clerk of such 
 county, who shall file the same; the superintendent of banks 
 shall also file a duplicate of such certificate in his own office. 
 
 Sec. 129. Every bank doing a departmental business shall 
 render to the superintendent of banks for each department 
 conducted by it, a separate report showing in detail as required 
 by section one hundred thirty of this act, the actual financial 
 condition of such department and shall at the time of furnish- 
 ing said report separately publish the statement for each 
 department as provided in section one hundred thirty-two of 
 this act. 
 
 Sec. 130. Every bank doing business in this state shall, 
 whenever required by the superintendent of banks, make a 
 report in writing to him, verified by the oath of its president 
 and its secretary or cashier, or two principal officers. Such 
 reports shall show the actual financial condition of the bank 
 making the report, at the close of any past day specified by 
 the superintendent, and shall specify the foUowin^:: 
 
 1. The amount of its capital stock and the number of shares 
 into which it is divided, or, if not incorporated, the amount of 
 capital actually paid in, and by whom. 
 
 2. The names of the directors and the number of shares of 
 stock held by each, or, if not incorporated, the names of each 
 member of the firm and the amount of capital paid in by each. 
 
 3. The total amount of capital actually paid up in money, 
 and the total amount of contingent and other reserve funds, 
 if any. 
 
 4. The total amount due the depositors. 
 
 5. The total amount and character of any other liabilities it 
 may have. 
 
 6. The amount at which the lot and building occupied by the 
 bank for the transaction of its regular business stands debited 
 on its books, together with the market value of all other real 
 estate held, whether acquired in settlement of loans or other- 
 wise ; the amount at which it stands debited on the bank books, 
 
—•31 — 
 
 in what counties situated, and in what name the title is vested, 
 if not in the name of the bank itself. 
 
 7. The amount loaned on real estate, specifying the amount 
 secured on real estate in each county separately ; also specify- 
 ing the name of the person in whose name the property is held 
 in trust or as security, in case it is held in any name other than 
 that of the bank and. the instrument creating the security does 
 not itself disclose the name of the bank. 
 
 8. The amount invested in bonds, designating the name and 
 amount of each particular kind. 
 
 9. The amount loaned on stocks and bonds, designating each 
 particular class and the amount thereof.' 
 
 10. The amount of money loaned on other securities, with a 
 particular designation of each class and the amount loaned 
 on each. 
 
 11. The actual amount of money on hand or deposited in any 
 other bank or place, with the name of the place where deposited 
 and the amount in each place. 
 
 12. Any other property held, or any amount of money 
 loaned, deposited, invested or placed, not otherwise herein 
 enumerated, and the place where situate and the value of said 
 property, and the amount so loaned, deposited or placed, and 
 any other information he may request relative to the conduct 
 and affairs of such bank. 
 
 The oaths of the officers and the statements above required 
 shall state that they and each of them have a personal knowl- 
 edge of the matters therein contained, and that they believe 
 every allegation, statement, matter, and thing therein contained 
 is true. Any willful false statement in the premises shall be 
 perjury and shall be punished as such. 
 
 •Sec. 131. The superintendent of banks shall call for reports 
 specified by the previous section, at least three times each year, 
 and shall call for such reports as near as possible upon the 
 same days as those designated by the comptroller of the cur- 
 rency of the United States for reports of national banking 
 associations. 
 
 Sec. 132. At the time of furnishing such report to the 
 superintendent of banks, every bank shall also publish a con- 
 densed statement of its financial condition, at least once, in 
 some newspaper of general circulation, published in the city 
 or town where its principal place of business is located, and, if 
 no paper is published in such town, then in some newspaper of 
 general circulation in the county where its principal place of 
 business is located. Such published statement shall show the 
 total amount of loans, the total amount of overdrafts, the total 
 amount invested in bonds and other securities, the total amount 
 due from banks, the total amount of checks and other cash 
 items, the total amount of cash on hand, capital paid in, surplus 
 funds ; undivided profits, less expenses and taxes paid ; due to 
 
— 32 — 
 
 other banks and bankers, due to trust companies and savings 
 banks; individual deposits subject to checks; demand certifi- 
 cates of deposit; time deposits; certified checks; cashier's 
 checks outstanding; and such other items as will show the 
 actual financial condition of the bank making the report. 
 
 Sec. 133. "Whenever the superintendent of banks shall have 
 reason to believe that the capital of any bank is reduced by 
 impairment or otherwise below the amount required by law 
 or by its articles of incorporation, he may require such bank 
 to make good the deficiency within sixty days after the date of 
 such requisition. He may examine or cause to be examined 
 any such bank to ascertain the amount of such impairment or 
 reduction of capital and whether the deficiency has been made 
 good as required by him. 
 
 Sec. 134. If it shall appear to the superintendent of banks 
 that any bank has violated its articles of incorporation, or any 
 law binding upon it, he must, by an order under his hand and 
 official seal, which seal must be adopted by him, addressed to 
 such bank, direct the discontinuance of such violation ; or, if it 
 shall appear to the superintendent of banks that such bank is 
 conducting business in aji unsafe or injurious manner, he must 
 in like manner direct the discontinuance of such unsafe or 
 injurious practices. Such order shall require such bank to 
 show cause, before the superintendent of banks, at a time and 
 place to be fixed by him, why said order should not be observed. 
 If upon such hearing it shall appear to the superintendent of 
 bante that such bank is conducting business in an unsafe or 
 injurious manner, or is violating its articles of incorporation, 
 or any law of this state, then the superintendent of banks shall 
 make such order of discontinuance final, and such bank shall 
 immediately discontinue all practices named in such order by 
 the superintendent of banks. Such bank shall have ten days 
 after any such order is made final in which suit may be com- 
 menced to restrain enforcement of such order, and unless such 
 action be so commenced and enforcement of said order be 
 enjoined within ten days, by the court in which such suit is 
 brought, then such bank shall comply with such order ; and, in 
 the event of its failure so to do, then the superintendent of 
 banks shall have power to take immediate charge and control 
 of said bank, and liquidate its affairs in the manner provided 
 in this act for the liquidation of banks. 
 
 Sec. 135. In any such action, no damage may be awarded, 
 but the action otherwise shall be commenced, tried and deter- 
 mined according to the provisions of the Code of Civil Pro- 
 cedure of California. 
 
 Sec. 136. Whenever the superintendent of banks shall have 
 reason to conclude that any bank is in an unsound or unsafe 
 condition to transact the business for which it is organized, or 
 that it is unsafe or inexpedient for it to continue business, the 
 
— 33 — 
 
 superintendent of banks may forthwith take possession of the 
 property and business of such bank, and retain such possession 
 until such bank shall resume business, or its affairs be finally 
 liquidated, as herein provided. 
 
 On taking possession of the property and business of any 
 such bank, the superintendent of banks shall forthwith give 
 notice in writing of such fact to any and all corporations and 
 individuals holding or in possession of any of the assets of 
 such bank. 
 
 No bank, corporation or individual, knowing of such taking 
 possession by the superintendent of banks, or notified as afore- 
 said, shall have a lien or charge for any payment, advance 
 or clearance thereafter made, or liability thereafter incurred 
 against any of the assets of the bank of whose property and 
 business the superintendent of banks shall have taken posses- 
 sion as aforesaid. Such bank may, with the consent of the 
 superintendent of banks, resume business upon such conditions 
 as may be approved by him. 
 
 Upon taking possession of the property and business of such 
 bank, the superintendent of banks is authorized to collect 
 moneys due to such bank, and to do such other acts as are 
 necessary to conserve its assets and business, and shall proceed 
 to liquidate the affairs thereof as hereinafter provided. 
 
 The superintendent of banks shall collect all debts due and 
 claims belonging to it, and upon the order of the superior court 
 may sell or compound all bad or doubtful debts, and on like 
 order may sell all real and personal property of such bank on 
 such terms as the court shall direct; and may, if necessary to 
 pay the debts of such bank, enforce individual liability of the 
 stockholders by action to be brought within three years after 
 the date of his taking possession of the affairs of such bank. 
 
 The superintendent of banks may, under his hand and official 
 seal, appoint one or more special deputy superintendents of 
 banks, as agent or agents, to assist him in the duty of liquida- 
 tion and distribution, the certificate of appointment to be filed 
 in the office of the superintendent of banks, and a certified copy 
 in the office of the clerk of the county in which the principal 
 office of such bank is located. 
 
 The superintendent of banks may, from time to time, author- 
 ize a special deputy superintendent to perform such duties 
 connected with such liquidations and distribution as the super- 
 intendent of banks may deem proper. The superintendent of 
 banks may employ such counsel, and procure such expert 
 assistance and advice as may be necessary in the liquidation 
 and distribution of the assets of such bank, and may retain 
 such officers or employees of such bank as he may deem neces- 
 sary. The superintendent of banks shall require, from a special 
 deputy superintendent and from such assistants, such security 
 
 3— BA 
 
— 34 — 
 
 for the faithful discharge of their duties as he may deem 
 proper. 
 
 The superintendent of banks shall cause notice to be given 
 by advertisement in such newspapers as he may direct, weekly, 
 for three consecutive months, calling on all persons who may 
 have claims against such bank, to present the same to the 
 superintendent of banks, and make legal proof thereof, at a 
 place and within a time not more than six months after the 
 last day of publication, to be therein specified. 
 
 The superintendent of banks shall mail a copy of such notice 
 to all persons whose names appear as creditors upon the books 
 of the bank. If the superintendent of banks doubts the justice 
 and validity of any claim, he may reject the same and serve 
 notice of such rejection upon the claimant, either by mail or 
 personally. An affidavit of the service of such notice shall be 
 prima facie evidence thereof, and shall be filed with the super- 
 intendent of banks. An action upon a claim so rejected must 
 be brought within six months after such service. Claims 
 presented after the expiration of the time fixed in the notice 
 to creditors shall be entitled to share ratably in the distribution 
 to the extent of the assets in the hands of the superintendent 
 of banks, equitably applicable thereto. 
 
 Upon taking possession of the property and assets of such 
 bank, the superintendent of banks shall make an inventory of 
 the assets of such bank in duplicate, one to be filed in the office 
 of the superintendent of banks, and one in the office of the 
 clerk of the county in which the principal office of such bank 
 is located; upon the expiration of the time fixed for the 
 presentation of claims, the superintendent of banks shall make 
 in duplicate a full and complete list of the claims presented, 
 including and specifying such claims as have been rejected by 
 him, one to be filed in the office of the superintendent of banks, 
 and one in the office of the clerk of the county in which the 
 principal office of such bank is located ; such inventory and list 
 of claims shall be open at all reasonable times for inspection. 
 The compensation of the special deputy superintendents, 
 counsel, and other officers and assistants, and all expenses of 
 supervision and liquidation, shall be fixed by the superintend- 
 ent of banks on notice to such bank, and shall upon his certifi- 
 cate be paid out of the funds of such bank in his hands. 
 
 The sums collected by the superintendent of banks shall, 
 from time to time, be deposited in one or more banks in this 
 state, subject to examination by the superintendent of banks. 
 At any time after the expiration of the date fixed for the 
 presentation of claims, the superintendent of banks may, out 
 of the funds remaining in his hands after the payment of 
 expenses, declare one or more dividends, and after the expira- 
 tion of one year from the date of first publication of notice to 
 creditors he may declare a final dividend. 
 
— 35 — 
 
 Objection to any claim not rejected by the superintendent 
 of banks may be made by any party interested, by filing a copy 
 of such objection with the superintendent of banks, who shall 
 present the same to the superior court of the county in which 
 such bank has its principal place of business, with a petition 
 that said court pass upon the validity of such claims ; and such 
 court shall thereupon, upon such notice to the party presenting 
 the same, and to the superintendent of banks, as the court may 
 deem proper, accept or reject said claim, and the superintend- 
 ent of banks shall observe the order of the court in that regard ; 
 provided, however, that should the claim be rejected, such rejec- 
 tion shall not conclude the claimant from bringing an action 
 upon such claim within six months after such rejection. 
 
 Upon the petition of the superintendent of banks, such court 
 may make proper provisions for unclaimed deposits. 
 
 Whenever any such bank, of whose property and business 
 the superintendent of banks has taken possession as aforesaid, 
 deems itself aggrieved thereby, it may at any time within ten 
 days after such taking possession, and not thereafter, apply to 
 the superior court in the county in which the principal office 
 of such bank is located, to enjoin further proceedings ; and said 
 court, after citing the superintendent of banks to show cause 
 why further proceedings should not be enjoined, and upon 
 hearing the allegations and proofs of the parties, and deter- 
 mining the facts, may, upon the merits, dismiss such applica- 
 tion, or enjoin the superintendent of banks from further 
 proceedings, and direct him to surrender such business and 
 property to such bank. 
 
 Either party aggrieved by the judgment rendered thereon 
 may appeal therefrom to the supreme court, as in other cases 
 of appeal thereto from the judgment of a superior court. 
 
 An appeal as above provided shall operate as a stay of the 
 judgment of the superior court, and no bond need be given if 
 the appeal be taken by the superintendent of banks; but if 
 the appeal be taken by such bank, a bond shall be given, as 
 required by section nine hundred and forty-three of the Code 
 of Civil Procedure. 
 
 Whenever the superintendent of banks shall have paid to 
 each and every depositor and creditor of such corporation (not 
 including stockholders) whose claim or claims as such creditor 
 or depositor shall have been duly approved and allowed the 
 full amount of such claim, and shall have made proper pro- 
 visions for unclaimed and unpaid deposits or dividends, and 
 shall have paid all expenses of the liquidation, the superin- 
 tendent of banks shall call a meeting of the stockholders of 
 such corporation by giving notice thereof for thirty days, in 
 one or more newspapers published in the county where the 
 principal office of such corporation is located. At such meet- 
 ing, the superintendent of banks shall appear and deliver to 
 
— 36 — 
 
 the stockholders all the property, effects and records of such 
 bank, and upon such transfer and delivery he shall be dis- 
 charged from any and all further liability to such bank and 
 its creditors. And thereupon the bank shall be in the same 
 position as though it had never been authorized to trans- 
 act a banking business, and such bank, by fulfilling the require- 
 ments of this act, and of the superintendent of banks, can 
 thereafter be authorized to resume the conduct of its business 
 as a bank. 
 
 Sec. 137. 1. Any bank shall have the right, on application 
 of the stockholders or members to apply to the superior court 
 of the county wherein its principal place of business is situated, 
 to dissolve said bank in the manner provided for in title six, 
 part three of the Code of Civil Procedure. 
 
 2. It is hereby made the duty of every person or corporation 
 holding funds of any bank, at the end of five years from and 
 after such bank has ceased to receive deposits, or do business, 
 to pay the same into the state treasury, which money shall be 
 held in the state school land fund; and at the same time it 
 shall be the duty of such person or corporation to furnish to 
 the state controller a list of the names of all depositors to whom 
 said moneys belong or to whom said bank owes the same. 
 
 3. The money may be drawn out on the warrants of the state 
 controller, issued on proofs of ownership, approved and allowed 
 by the state board of examiners. 
 
 4. All moneys paid into the said fund, uncalled for within 
 five years after being paid in, shall by operation of law, and 
 without action had, escheat to the state, and thereafter only 
 be drawn out in such manner as now provided for by law for 
 the estates of deceased persons escheated to this state. 
 
 5. The state board of examiners must invest such moneys in 
 the same manner that the state school land fund is invested 
 as provided by law. But any claimant shall be entitled to 
 recover as herein provided only the principal so paid into the 
 state treasury. 
 
 Sec. 138. If any bank shall fail to make the report required 
 by law or by the superintendent of banks, within ten days from 
 the day designated for the making thereof, or to include therein 
 any matter required by law or by the superintendent of banks, 
 every such delinquent bank shall forfeit to the people of the 
 state the sum of one hundred dollars for each day that such 
 report shall be delayed or withheld, and for every day it shall 
 fail to report any such omitted matter. In the event of the 
 failure of any such bank to make the report required from it 
 by law, or by the superintendent of banks, he shall immediately 
 cause the books, papers and affairs of such bank to be thor- 
 oughly examined. 
 
 Sec. 139. It shall be the duty of the board of directors of 
 every bank to examine fully into the books, papers and affairs 
 
— 37 — 
 
 of the bank of which they are directors, and particularly into 
 the loans and discounts thereof, with a special view to ascer- 
 taining the value and security thereof, and of the collateral 
 security, if any given, in connection therewith, and into such 
 other matters as the superintendent of banks may require; 
 such examination to be made at least once a year, but no such 
 subsequent yearly examinations shall be made within three 
 months of the next preceding examination. Such directors 
 shall have power to employ such assistance in making such 
 examinations as they may deem necessary. Within ten days 
 after the completion of such examination, a report in writing 
 thereof, sworn to by the directors making the same, shall be 
 made by the board of directors of such bank, and placed on file 
 with the records of said bank, and shall be subject to examina- 
 tion by the superintendent of banks. 
 
 Such report shall particularly contain a statement of the 
 assets and liabilities of the bank examined, as shown by its 
 books, together with any deductions from the assets, or addi- 
 tions to liabilities, which such directors or committee, after 
 such examination, may determine to make. It shall also con- 
 tain a statement, in detail, of loans, if any, which in their 
 opinion are worthless or doubtful, together with their reasons 
 for so regarding them; also a statement of loans made on 
 collateral security, which in their opinion are insufficiently 
 secured, giving in each case the amount of the loan, the name 
 and market value of the collateral, if it has any market value, 
 and, if not, a statement of that fact, and its actual value as 
 nearly as possible. Such report shall also contain a statement 
 of overdrafts, of the names and amounts of such as they con- 
 sider worthless or doubtful, and a full statement of such other 
 matters as affect the solvency and soundness of the bank. If 
 the directors of such bank shall fail to make, or cause to be 
 made, and file such report of examination in the manner and 
 within the time specified, the directors of such bank shall be 
 guilty of a misdemeanor. 
 
 Sec. 140. The superintendent of banks shall report during 
 the month of October of each year, to the governor, for sub- 
 mission to the next ensuing session of the legislature : 
 
 1. A summary of the state and condition of every bank 
 required to report to him, and from which reports have been 
 received the preceding year, with an abstract of the whole 
 amount of capital returned by them, the whole amount of their 
 debts and liabilities, and the total amount of means and 
 resources, specifying the amount of specie held by them at the 
 time of the last report to him, and such other information in 
 relation to such banks as, in his judgment, may be useful. 
 
 2. A statement of all banks authorized by him to do business 
 during the previous year, with their names and locations and 
 dates of incorporation, and particularly designating such as 
 have commenced business during the year. 
 
— 38 — 
 
 3. A statement of the banks whose business has been closed 
 during the year. 
 
 4. Any amendments to the banking law, which, in his judg- 
 ment, may be desirable. 
 
 5. The names and compensation of all persons employed by 
 him, and the whole amount of the receipts and expenses of the 
 department during the year. 
 
 6. The names of banks placed in his hands in process of 
 liquidation, and the amount of dividends paid thereon. 
 
 Such report, and the usual number of copies for the use of 
 the legislature, shall be printed and in readiness for distribu- 
 tion by the state printer, and one thousand copies shall be 
 printed for the use of the department, the expense of which 
 shall be charged among the general expenses of the department. 
 
 Sec. 141. 1. The superintendent of banks shall keep in his 
 office, in a place accessible to the general public, a bulletin 
 board upon which he shall cause to be posted at noon on Friday 
 of each week a detailed statement, signed by him or, in case of 
 his absence from San Francisco or inability to act, by the 
 deputy superintendent in charge, giving the following items of 
 general information with regard to the work of the department 
 since the preceding statement : 
 
 (a) The name of every bank that has filed in the banking 
 department an application for authorization to commence busi- 
 ness, its location and the date of filing of such application. 
 
 (h) The name and location of every bank authorized by the 
 superintendent of banks to commence business, its capital, sur- 
 plus, and the date of authorization. 
 
 (c) The name of every bank to which a certificate of author- 
 ization has been refused by the superintendent of banks, and 
 the date of notice of refusal. 
 
 {d) The name and residence of every person appointed by 
 the superintendent of banks as a deputy, examiner or employee 
 in the banking department, the title of the office to which 
 appointed, the compensation paid, and the date of appointment. 
 
 (e) The date on which a call for a report by banks was 
 issued by the superintendent of banks, and the day designated 
 as the day with reference to which such report should be made. 
 
 if) The name and location of every bank whose creditors or 
 depositors have been paid in full by the superintendent of 
 banks and a meeting of whose stockholders shall have been 
 called, together with date of notice of meeting and date of 
 meeting. 
 
 (g) The name and location of every bank subject to the 
 banking law whose affairs and business shall have been finally 
 liquidated, or in course of liquidation. 
 
 (h) The name and location of every bank which has applied 
 for approval of a change of name, and the name proposed. 
 
— 39 — 
 
 2. Every such bulletin, after having been posted as afore- 
 said for one week, shall be placed on a file for such statements, 
 to be kept in the office of the superintendent of banks. All 
 such statements shall be public documents, and at all reason- 
 able times shall be open to public inspection during usual bank- 
 ing hours. 
 
 Sec. 142. Every official report made by the superintendent 
 and every report duly verified of an examination made, shall 
 be prima facie evidence of the facts therein stated, for all 
 purposes in any action or proceeding wherein such bank is a 
 party. 
 
 Sec. 143. If the superintendent of banks shall have knowl- 
 edge of the insolvency or unsafe condition of any bank men- 
 tioned in this act, and that it is unsafe or inexpedient to 
 permit said bank to continue business, and shall neglect to 
 forthwith take action as provided in sections one hundred 
 thirty-three, one hundred thirty-four, and one hundred thirty- 
 six of this act, he shall be guilty of a felony. 
 
 Sec. 144. Whenever by the terms of this act a penalty or 
 forfeiture is imposed, the same shall be recovered in an action 
 brought at the request of the superintendent of banks by the 
 attorney general, in the name of the people of the state, and 
 the sum recovered shall be paid into the state banking fund 
 and used in payment of claims against the said fund. 
 
 Sec. 145. The powers, privileges, duties and restrictions 
 conferred and imposed upon any corporation or individual 
 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, notwith- 
 standing anything to the contrary in their respective articles 
 of incorporation or charters. The legality of investments here- 
 tofore made, or of transactions heretofore had, pursuant to 
 any provisions of law in force when such investments were 
 made or transactions had, shall not be affected by the provi- 
 sions of this act, nor shall such provisions require the changing 
 of investments for those named in this act, except as the same 
 can be done gradually by the sale or redemption of the securi- 
 ties so invested in, in such manner as to prevent loss or embar- 
 rassment in the business of such bank, or unnecessary loss or 
 injury to the borrowers on such security. 
 
 Sec. 146. All acts, or parts of acts, in conflict with this act 
 are hereby repealed. 
 Sec. 147. This act shall take effect July first, 1909. 
 
INDEX. 
 
 Section. 
 
 Accounts, overdrawing by officer, etc., not allowed 39 
 
 Act, applicable, to whom 1 
 
 repeals all other acts in conflict 146 
 
 takes effect, when 147 
 
 Action to liquidate, subject to provisions Code of Civil Procedure. 135 
 
 Adjustment of investments made prior to act 145 
 
 Administrators bond to be reduced when estates funds deposited. . 93 
 
 or asignee may deposit funds, when 51 
 
 Advertising as savings bank, not allowed, when 49 
 
 capital authorized or subscribed 14 
 
 must state nature of banking business conducted 28 
 
 Agency of foreign bank subject to examination 124 
 
 Agent dealing with bank 38-39 
 
 Assets of bank may be sold, how 31 
 
 of departments to be kept separate 25 
 
 purchasing of by officer, etc 42 
 
 Authorization, certificate of, must be filed with county clerk 128 
 
 Bank, deemed insolvent, when 20 
 
 department, capital of 23 
 
 definition and divisions of 2 
 
 may sell assets, how 31 
 
 stock, loans on, limited 44 
 
 use of term prohibited, except 12 
 
 Banks, examination of, character and extent 124 
 
 failing to make report 138 
 
 foreign, examination of agency 124 
 
 procedure to force, into liquidation 136 
 
 must discontinue violations of law, or liquidate 134 
 
 must have certificate before doing business 127 
 
 must publish report, when 132 
 
 must report to superintendent 130-131 
 
 mutual, may have capital stock 29 
 
 Bankers, names of private, must be shown in name 13 
 
 Banking department, state 120 
 
 expenses of 123 
 
 partnership, list of partners of, must be posted 18 
 
 Bond of superintendent of bank 120 
 
 of trust company; not required by court 94 
 
 Bonds, loan on, limited 46 
 
 may be held by savings bank, what 61 
 
 underwriting and guaranteeing limited 36 
 
 Books of departments must be kept separate 26 
 
 Borrow, who can not borrow from banks 33 
 
 Branch banks, requisite for 9 
 
 Building, same for all departments 26 
 
 Bulletin for superintendent, what to contain 140 
 
 when and where to be posted 140 
 
 By-laws of savings banks 64 
 
 Business, trust company retiring from 102 
 
_ 42 — 
 
 Section. 
 
 Capital, authorized or subscribed, advertising 14 
 
 and surplus must equal ten per cent of deposits 19 
 
 for department business 23 
 
 of bank, when impaired, duty of superintendent 133 
 
 paid in by each partner must be posted 18 
 
 requisite, must be paid in before certificate issues 127 
 
 stock of mutual banks 29 
 
 stock of savings banks necessary, how much 60 
 
 Capitalizing, procedure in 29 
 
 Cash to be carried by savings bank 68 
 
 Certificate of authorization to be filed with county clerk 128 
 
 of deposit of savings banks are transferable 63 
 
 of deposit, savings banks may issue 63 
 
 of superintendent, obtained before transacting business 24-127 
 
 superintendent's, must be posted 50 
 
 to do banking business, procedure to obtain 8 
 
 Character of incorporators to be investigated 128 
 
 Claims against bank in liquidation 136 
 
 Clerks of state banking department 121 
 
 dealing with banks 39 
 
 Combining departments 22 
 
 Commercial banks, capital stock of 82 
 
 definition of 5 
 
 loans of 80 
 
 loans of, limited 81 
 
 loans of, to directors 83 
 
 may be conducted by corporation 3 
 
 Comm ission on loans not allowed 39 
 
 Contract waiving stockholders' liability invalid 40 
 
 with depositors, savings banks 64 
 
 Corporation, foreign banking 7 
 
 banking, may conduct what business 3 
 
 what papers to be filed by, with superintendent 8 
 
 Counsel fees in liquidation matter 136 
 
 Court may order ofllcers to deposit funds 51 
 
 may order deposit of trust funds 91 
 
 estates money deposited 93 
 
 "Create debt," deposits do not 65 
 
 Dead depositors, report of, and publication of list of 15 
 
 Defin ition of bank 2 
 
 commercial bank 5 
 
 savings bank 4 
 
 trust company 6 
 
 Department's assets, how to be used 27 
 
 authorized 22 
 
 business to be kept separate 25 
 
 capital for each, when combined 23 
 
 certificate to be obtained before opening 24 
 
 deposits 25 
 
 in trust companies 106 
 
 money reserve 25 
 
 safe deposit 30 
 
 separate account in each 26 
 
 to be in same building 26 
 
 transactions between 25 
 
 reports to superintendent, to be separate 129 
 
 Deposits, additional to be made by trust company, when 98 
 
 advertising for, prohibited 12 
 
 by stockholders 21 
 
 do not "create debt" 66 
 
 joint 16 
 
 limited 19 
 
 of bonds and mortgages by trust company 99 
 
— 43 — 
 
 Section. 
 
 Deposits, of married women and minors 16 
 
 of savings bank with other banks 68 
 
 of trust funds 16 
 
 trust company must make, with state 96 
 
 with other banks 43 
 
 Deputy superintendent of banks 121 
 
 duty of 126 
 
 Directors borrowing from commercial bank 83 
 
 can not be surety or endorser 33 
 
 dealing with bank 38-39 
 
 duties of 139 
 
 examinations of bank by 139 
 
 names to be posted 17 
 
 oath of office of 11 
 
 of savings bank can not borrow 65 
 
 can not be surety 65 
 
 par value of stock held by, to be posted 17 
 
 who eligible as, and qualifications for 10 
 
 shall not sell mortgages to bank 35 
 
 Dividends 21 
 
 of savings bank limited 64 
 
 on deposits made with state by trust company 98 
 
 Entries, false 38 
 
 Employees can not borrow from bank 33 
 
 shall not sell mortgage to bank 35 
 
 dealing with bank 38-39 
 
 Estates, money may be deposited with trust company 93 
 
 Examiner of banks 121 
 
 appointment of 125 
 
 bonds of 125 
 
 can not be receiver 125 
 
 duties of 126 
 
 oath of 125 
 
 Examination of bank affairs by director 139 
 
 by examiner, character and extent 124 
 
 of national bank 48 
 
 Executor, bond reduced when estates money deposited ^ 93 
 
 may deposit estates money 51 
 
 Expenses of banking department 123 
 
 False entries 38 
 
 Foreign banks, examination of agency of 124 
 
 Foreign corporations, doing banking business 7 
 
 service of papers on 7 
 
 Forfeiture or penalty recovered by action at law 144 
 
 Funds, deposit of, in other banks 43 
 
 state banking department • 123 
 
 trust, not reserve 32 
 
 Governor, superintendent to report to 140 
 
 superintendent's report to, what to contain 140 
 
 Guaranteeing of bonds limited 36 
 
 Guardian bond reduced when estates funds deposited 93 
 
 may deposit estates funds 51 
 
 Incorporators, character of, of banks 128 
 
 Interest on state deposit of trust company 98 
 
 to be paid depositors by trust companies 95 
 
 unpaid, not profits 45 
 
 Investments by savings banks 61 
 
 by trust companies 97-105 
 
 Joint deposits 16 
 
 Law, bank, not to affect transactions already made 144 
 
 takes effect 145 
 
 governing savings banks 69 
 
— 44 — 
 
 Section. 
 
 Loans by savings banks 67 
 
 by commercial banlcs limited £0-81 
 
 commission on 39 
 
 on bonds limited 46 
 
 on bank stock limited 44 
 
 on mining shares by savings bank 67 
 
 on own capital stock prohibited 34 
 
 on stock of other banks by savings bank 67 
 
 on real estate 44-67 
 
 to director of commercial bank 83 
 
 to director of savings bank 87 
 
 to officer or employee 33 
 
 to officer of savings bank 65 
 
 Liability of trust companies 94 
 
 Limitation on use of word "trust" 104 
 
 Liquidation, subject to Code of Civil Procedure 135 
 
 forced, procedure on 136 
 
 of bank for violating law, when to be ordered - 134 
 
 voluntary 137 
 
 Married women, deposits of 16 
 
 Mining shares, loans on, by savings bank 67 
 
 M inors, deposits of 16 
 
 Money, amount of, to be kept on hand 20 
 
 deposited by public administrator, how drawn 92 
 
 reserve for departments 25 
 
 reserve for savings bank 68 
 
 Mortgages, selling, to bank by officers, etc 35 
 
 trust company may make, to the state 97 
 
 M utual banks may have capital stock 29 
 
 Names of private bankers 13 
 
 National banks, examination of 48 
 
 Newspaper, publishing report of bank in 132 
 
 publication of notice of capitalizing 29 
 
 publishing list of dead depositors in 15 
 
 Notice of forced liquidation 136 
 
 Oaths, can be administered by bank department officers 124 
 
 of director of bank 11 
 
 of examiner of banks 125 
 
 Obligations, purchasing of, by officers, etc., of bank 41 
 
 Office of superintendent of banks 122 
 
 Officers can not borrow from bank 33-65 
 
 dealing with bank 38-39 
 
 not sell mortgage to bank 35 
 
 Overdrawing account 39 
 
 Partners, names of, and capital stock to be posted 18 
 
 Penalty, for failure to report to superintendent 138 
 
 or forfeiture recovered by action at law 144 
 
 Personal property of savings bank 61 
 
 Possession of unsafe or unsound bank by superintendent 136 
 
 Private bankers, names of, to be shown 13 
 
 Process, service on foreign banking corporation 7 
 
 Property, personal, of savings bank 61 
 
 Powers of officers of banking department 124 
 
 Procedure, when superintendent takes possession of bank 130 
 
 for capitalizing corporations 24 
 
 Profits, interest unpaid not 45 
 
 Public administrator may deposit with trust company 92 
 
 Publ ic deposits in savings banks 62 
 
 Purchasing assets by officers, etc 42 
 
 banks 31 
 
— 45 — 
 
 Section. 
 
 Purchasing, obligations by officers, etc 41 
 
 own capital stock 34 
 
 stock, limited 37 
 
 Real estate, loans on, by bank 47 
 
 savings bank may purchase, hold, and convey 61 
 
 Reports, false, by officer or employee 38 
 
 failure to, penalty of 138 
 
 must be called for, when 131 
 
 of banks to superintendent, number and times 130 
 
 of examination made by directors 134 
 
 of directors, what to contain 139 
 
 of trust company 101 
 
 of superintendent duly verified, prima facie evidence 142 
 
 publication of 132 
 
 failure of superintendent to, bank unsafe 143 
 
 superintendent to, to governor 140 
 
 to superintendent from departments to be separate.- 124 
 
 Receiver, bank examiner can not be 125 
 
 Reserve fund 21 
 
 money 20 
 
 money for departments 25 
 
 of savings bank 68 
 
 Safe deposit department 30 
 
 Sales of mortgages and securities to bank by officer, etc 35 
 
 Savings bank, business of 66 
 
 capital of 60 
 
 capital and surplus, limit of 19 
 
 can not trade in property 62 
 
 cash to be carried by 68 
 
 contract with depositors by 64 
 
 definition of 4 
 
 deposits do not "create debt" 66 
 
 deposits with other banks 68 
 
 directors can not borrow from bank 65 
 
 dividends limited 64 
 
 investments of * 61 
 
 law governing 69 
 
 loans of 67-68 
 
 may be conducted by corporations 3 
 
 • may borrow money, when 62 
 
 may issue general certificates of deposit 63 
 
 may pay by draft 62 
 
 may judge securities, when 62 
 
 Savings, use of word, limited 49 
 
 Selling bank and assets 31 
 
 Service of papers on foreign corporations 7 
 
 Signs of bank must show business transacted 28 
 
 State banking department created 120 
 
 fund 123 
 
 responsible to trust company for deposits 98 
 
 Statement to be filed with superintendent by president, what 15 
 
 Stock and par value of, held by director to be posted 17 
 
 capital of commercial bank 82 
 
 of savings bank 60 
 
 of trust company 90 
 
 loans on bank, limited 44 
 
 purchase of, prohibited 37 
 
 Stockholder, controlling, shall not sell mortgage to bank 35 
 
 deposits by 21 
 
 liability, waiving 40 
 
 list of, to be made public 17 
 
 Superintendent of banks 120 
 
 appointment of 121 
 
 bulletin, what to contain 141 
 
— 46 — 
 
 Section. 
 
 Superintendent of banks, certificate, posting 50 
 
 certificate to trust company 100 
 
 duties of 7, 9, 11, 15, 20, 24, 48, 83, 96, 97, 98, 102," 
 
 120, 121, 123, 124, 127, 128, 131, 133, 134, 136, 138, 140, 141, 143 
 
 failure to report bank unsafe, penalty for 143 
 
 may disapprove loan to director 88 
 
 may order liquidation, when 134 
 
 must call for reports 131 
 
 must examine bank before issuing certificate 127 
 
 must post bulletin, when 141 
 
 must report to governor 140 
 
 ofllce of 122 
 
 papers to be filed with, what 8 
 
 report of banks to 130 
 
 to take possession of bank, when 136 
 
 Superintendent's verified report prima facie evidence 142 
 
 Surviving husband, wife or children may collect deposit, when.... 16 
 
 Survivor receives joint deposit 16 
 
 Title of act 1 
 
 Trust company, certificate from superintendent 100 
 
 confidential information of 103 
 
 definition of 6 
 
 departments of 106 
 
 investments of 105 
 
 may make mortgrage to state 97 
 
 may receive money of estate 93 
 
 may be conducted by corporation, how 3 
 
 must furnish certificate of such 99 
 
 must make additional deposits with state 98 
 
 must make deposits with state 96 
 
 must pay interest on deposits 95 
 
 not required to give court bond 94 
 
 powers and duties of 90 
 
 public administrator may deposit with 92 
 
 reports of 101 
 
 retiring from business 102 
 
 to receive interest from state on deposits 98 
 
 Trust funds, court may order deposit of 91 
 
 deposit of 16 
 
 not to mingle and not reserve 32 
 
 Trust, the use of word, limited 104 
 
 U nderwriting bonds limited 36 
 
 Unsafe or unsound bank, possession of 136 
 
 Verified reports of superintendent evidence 142 
 
 Violation of law or charter by bank 134 
 
 Voluntary liquidation 137 
 
m^