bank to pay off such borrowed money. Nothing herein shall prevent any bank from rediscounting in good faith and endorsing any of its negotiable notes; provided, further, that no bank shall pledge or hypothecate its notes or securities as security for its rediscounts or bills payable in an amount sufficient to create a margin of more than twenty-five (25%) per cent of the amount borrowed by said bank without the written consent of the Bank Commissioner and said Bank Commissioner shall not in any event give written consent to the pledging or hypothecation of any excess margin of bank notes or securities in a sum to exceed fifty (50%) percent of the amount borrowed. Any officer, director or employee of any State bank who violates any provision of this Section, shall be guilty of a felony and upon conviction thereof shall be punished by a fine of not less than One Hundred ($100.00) Dollars nor more than One Thousand ($1,000.00) Dollars, by imprisonment in the State Penitentiary for not less than one year nor more than five years, or both such fine and imprisonment.

Liquidating Agent-Duties.

Section 3. That Section 4166 of Compiled Oklahoma Statutes, annotated, 1921, be and the same is, hereby amended to read as follows:

Section 4166. In the event the Bank Commissioner shall proceed to wind up the affairs of an insolvent bank as provided in Section 4165 of the Compiled Oklahoma Statutes 1921, the Bank Commissioner may appoint a liquidating agent as hereinafter provided.

In the event of such liquidation, the Bank Commissioner shall, by petition, appoint a liquidating agent for said bank, and if necessary, he shall appoint an attorney to assist the liquidating agent, both of which appointments shall be subject to the approval of the District Court or a Judge thereof, for the county in which said insolvent bank is situated, said liquidating agent and attorney to hold office at the pleasure of the Bank Commissioner, and the fees, salaries or other compensation of such liquidating agent and attorney shall be fixed by the Bank Commissioner subject to the approval of said District Court or a Judge thereof, provided, that the tctal fees or salaries of said liquidating agent or attorney shall not exceed the sum of Four Thousand ($4,000.00) Dollars per annum.

Said liquidating agent upon the permission of the Bank Commissioner may employ such other employees as are necessary to the proper liquidation of such bank at such salaries as shall be approved by the Bank Commissioner.

Said liquidating agent shall give a good and sufficient bond payable to the State of Oklahoma, to be fixed and approved by said District Court, or Judge thereof, conditioned upon his faithful accounting for all moneys and all funds and assets that shall come. into his hands. He shall then take charge of said bank and take possession of its books, records and assets and proceed to collect and liquidate the assets, debts and obligations owing to said bank. When said assets shall have been reduced to cash, the liquidating agent shall distribute said cash in quarterly dividends to the depositors and creditors of said insolvent bank who were at the time. of its failure entitled by law to participate in the assets of said

bank, except that the current and necessary expenses of liquidation shall first be paid, provided, that if the Bank Commissioner shall not have sufficient cash at any dividend paying period to pay a dividend of ten (10%) per cent or more, he may defer the payment of such quarterly dividend until such time as he can pay a sum equal to (10%) per cent of the remaining deposit liability.

Such liquidating agent shall file a verified account quarterly with the Bank Commissioner and with the District Court showing a detailed statement of his receipts and disbursements.

The Bank Commissioner shall have the power to bring suit for the collection of all obligations owing to said bank at the time it was adjudged insolvent, and such suits shall be brought in the name of the State of Oklahoma on the relation of the Bank Commissioner.

If, after the liquidation of such bank, there are any assets remaining in the hands of the Bank Commissioner over and above the debts, expenses and liability to creditors of said bank, such remaining assets shall revert to the stockholders of said bank.

From and after the passage and approval of this act, all insolvent State Banks within the possession of the Bank Commissioner or those failed subsequent to the passage and approval of this Act, shall be liquidated in the manner provided herein.

Provided that nothing in this amendment shall operate to deprive the State of Oklahoma of any lien that it may have on the assets of any bank that may have been adjudged insolvent prior to the passage and approval of this Act.

Surety Companies-Participation.

Section 4. That Section 4189 of Compiled Oklahoma Statutes Annotated, 1921, be and the same is hereby amended to read as follows:

Section 4189. On and after the passage and approval of this Act, in all cases where a Surety Company is compelled to pay or voluntarily pays a depository bond securing the payment of deposits of any State, County, Municipal or other public fund for which it is liable in a failed bank operating under the laws of this State, such surety company shall be entitled to participate in a pro rata division of the proceeds of the assets of any such bank, including the liability of its officers, stockholders and directors with the depositors of said bank; and the Bank Commissioner shall have exclusive control of the administration and collection of the assets of failed banks for payment of depositors until the depositors shall have been fully reimbursed or the liquidation of said bank completed, and the Bank Commissioner and his liquidating agent shall pay to such surety company the pro rata share of the proceeds of such assets from time to time as collections from such assets are made; and such surety company in writing such a depository bond for any such bank, specifically agrees to such administration, and that the Bank Commissioner's jurisdiction shall be exclusive; provided that the provisions of this Section do not apply to state banks that failed prior to the passage and approval of this Act.

Real Estate-Bank May Purchase.

Section 5. That Section 4150 of the Compiled Oklahoma Statutes annotated, 1921, be and the same is hereby amended to read as follows:

Section 4150. A bank may purchase, hold and convey real estate for the following purposes:

First: Such as shall be necessary for the convenient transaction of its business, including its furniture and fixtures, but which shall not exceed one-third of the paid-in capital, except upon the written approval of the Bank Commissioner countersigned by the Banking Board;

Second: Such as shall be conveyed to it in satisfaction of debts previously contracted in the course of its business;

Third: Such as it shall purchase at sale under judgment, decree, or mortgage foreclosure, under securities held by it; but a bank shall not bid at any such sale, a larger amount than enough to satisfy its debts and costs. Real Estate shall be conveyed under the corporate seal of the bank and the hands of its president or vice-president and cashier. No real estate acquired in the cases contemplated in the second and third sub-sections above shall be held for a longer time than five years. It must be sold at a private or public sale within thirty days thereafter. Banking Board-Compensation.

Section 6. That Section 4161 of Compiled Oklahoma Statutes annotated, 1921, be and the same is hereby amended to read as follows:

Section 4161. That the banking Board shall be composed of the Bank Commissioner, and three other persons, which persons shall be appointed by the Governor by and with the advice and consent of the Senate, no one of whom shall be an officer or director of a National Bank. Said three members shall hold office concurrently with the Governor, and as soon as said. members are appointed under the provisions of this Act, the Board shall select one of said members as Treasurer. The members of the Board, other than the Bank Commissioner shall receive Fifteen ($15.00) Dollars each, per day for attendance upon said Board, and they shall be paid their actual and necessary expenses incurred in performance of their duties, the same to be paid out of the genral revenue fund. The Bank Commissioner shall be the Chairman of said Board. Said Board in conjunction with the Bank Commissioner shall have supervision and control of the issuing of bank charters and the administration of the banking laws of the State not inconsistent with other specific declarations, provided by the statutes. If a vacancy shall at any time occur in the membership of said Board, the Governor shall fill the same by appointment as herein provided.

Failed Banks-Repair of Credit.

Section 7.

That Section 4169 of the Compiled Oklahoma Statutes, annotated, 1921, be and the same is hereby amended to read as follows:

Section 4169. After the Bank Commissioner shall have taken possession of any bank or trust company which is subject to the

provisions of this Chapter, the stockholders thereof may repair its credit, restore or substitute its reserves, and otherwise place it in condition so that it is qualified to do a general banking business as before it was taken possession of by the Bank Commissioner; but such bank shall not be permitted to reopen its business until the Bank Commissioner, after a careful investigation of its affairs, is of the opinion that its stockholders have complied with the laws, that the bank's credit and funds are in all respects repaired, and its reserve restored or sufficiently substituted, and that it should be permitted again to reopen for business; whereupon said Bank Commissioner is authorized to issue written permission for reopening of said bank in the same manner as permission to do business is granted after the incorporation thereof, and thereupon said bank may be reopened to do a general banking business.

Charter-Issuance.

Section 8. That Section 4174 of Compiled Oklahoma Statutes, annotated, 1921, be and the same is hereby amended to read as follows:

Section 4174. From and after the passage of this Act no charter or authority to engage in the banking business in this State shall be issued and no bank be permitted to engage in business except on certificate issued by the Bank Commissioner upon approval of the Banking Board. The issuance of such certificate shall rest solely in the discretion of the Bank Commissioner and the Banking Board. Such banks organized subsequent to the enactment of this Act shall deposit the sum of One Hundred ($100.00) Dollars in cash with the Bank Commissioner to guarantee the payment of any necessary expenses of examination of such bank prior to its opening for business.

Deposits Rate of Interest.

Section 9. That Section 4175 of Compiled Oklahoma Statutes, annotated, 1921, be and the same is hereby amended to read as follows:

Section 4175. That no bank operating under the laws of this State, or the officers thereof, shall agree directly or indirectly, to pay a greater rate of interest than four per cent per annum except by written consent of the Bank Commissioner.

Depositor's Guaranty Fund-Repeal.

Section 10. That Section 4162 of the Compiled Oklahoma Statutes, annotated, 1921, relating to the creation of the depositors guaranty fund and assessments therefor, and depositors guaranty fund warrants is hereby repealed; provided that the provisions of this Section shall not relieve or release any bank, firm or corporation, or any officer, stockholder or director or any other person, from any obligation, assessment or liability to the Depositors Guaranty Fund or to the depositors or creditors of any failed state bank, which obligation, assessment or liability existed at the time of the passage and approval of this Act.

Same.

Section 11. That Section 4163 of the Compiled Oklahoma Statutes, annotated, 1921, relating to the emergency assessments for the depositors guaranty fund be and the same is hereby repealed. Same.

Section 12. That Section 4168 of the Compiled Oklahoma Statutes, annotated, 1921, relating to certificates of Guaranty and advertisement thereof, be and the same is hereby repealed.

Emergency.

Section 13. It being immediately necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist, by reason whereof this Act shall take effect and be in full force from and after its passage and approval.

Approved March 31, 1923.

CHAPTER 138.

HOUSE BILL NO. 17.

County Poor House.

AN ACT authorizing counties in the state of Oklahoma to purchase lands and make improvements thereon for the benefit of the poor of such counties, providing manner for holding such elections, and declaring an emergency.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA :

Bonds-Benefits of Poor.

Section 1. All Counties in the State of Oklahoma are hereby authorized to issue bonds for the purpose of purchasing lands and making improvements thereon for the benefit of the poor in said counties.

Board of County Commissioners-Election.

Section 2. The Board of County Commissioners in each County in the State of Oklahoma is hereby authorized and empowered to call any election for the purpose of issuing bonds to purchase lands, make improvement thereon, or to make improvements upon lands already owned by such Counties, for the use and benefit of the poor people of such Counties. Said Commissioners shall call said election by issuing a proclamation therefor and giving notice thereof in four consecutive issues of a weekly newspaper published in and of general circulation in such county proposing to issue said bonds. Provided, that no election shall be held until the expiration of thirty days following the date of the first publication of said notice.

Election-Proclamation.

Section 3. The proclamation calling for said election shall name the amount of bonds to be issued, the time said bonds shall run, the interest said bonds shall bear, and the time for holding the election.