SEC. 3. The duties of the Bank Commissioners shall be, Duties. within sixty days after their qualification, to prepare and furnish to every saving bank, bank, and banking company, incorporated under the laws of this State, or any other State or country, and doing business in this State, applying there- Issue for in writing, a license, in the form to be prescribed by them, license. authorizing such corporations to use the name and to transact the business of a savings bank, bank, or banking company, for one year from the date of issuance thereof; provided, that such license may be issued at any time after said sixty days, subject to the disqualification mentioned in section seven of this Act; to receive and place on file in their office Receive the semi-annual reports required to be made by savings reports. banks, or banks, or banking corporations, by this Act; to prepare and furnish, on demand, to savings banks' officers, and the officers of banks, or banking corporations, blank forms for such statements or reports as may by law be required of them; to make, on or before the thirtieth day of June, in each year, a report to the Governor of this State, containing a tabular statement and synopsis of the several reports which have been filed in their office since their last report, and any other proceedings had or done by them under this Act, showing generally the condition of the savings bank, or banking business and interests in this State, and such other matters as, in their opinion, may be of interest to the public, with a detailed statement, verified by their oaths, of all moneys and fees of office received by them during the same. period.

banks.

SEC. 4. It shall be the duty of one or more of the Bank Visit and Commissioners, as designated by the Commissioners, once in examine six months, and as often as in their judgment may be deemed necessary, without previous notice, to visit and to make personally a full examination of each bank, saving bank, saving and loan society, or other society, association, company, or institution incorporated under the laws of this State, or any other State or country, and doing business in this State, for the accumulation and investment of funds and savings, or any trust company receiving any valuable thing in trust, or money on special deposit, or any person publicly receiving money on deposit for safe keeping; to inspect all books, papers, notes, bonds, or evidence of debt of such corporations, and all securities; to ascertain the condition of every such corporation, its solvency, its ability to fulfill all its obligations, and report its condition to the Attorney-General as soon as may be after such examination.

examine

SEC. 5. Such Commissioners must examine, under oath, Power to any of the officers, agents, and servants of any such corpora-icers. tion or person, in relation to the affairs and condition of such corporation or person, and may administer such oath personally, and whoever shall neglect or refuse, after demand Refusal to and notice thereof, and without justifiable cause, to appear, penalty. or testify under oath, before the said Commisssoners in the discharge of their duties, shall be deemed guilty of a misdemeanor, and on conviction thereof be punished by a fine not exceeding five thousand dollars, or by imprisonment in

testify;

Insolvent

Commis

sioner to

report.

the County Jail not exceeding one year, or by both such fine and imprisonment.

SEC. 6. If any Bank Commissioner shall have knowledge corporations; of the insolvency or unsafe condition of any corporation mentioned in this Act, and shall neglect to report the same, in writing, to the Attorney-General, as required by this Act, he shall, on conviction thereof, be punished by a fine not exceeding ten thousand dollars nor less than five thousand dollars, or by imprisonment in the County Jail not less than one year nor more than two years, or by both such fine and imprisonment, and his office shall be declared vacant by the Governor, and a successor be appointed for the unexpired

Must procure license.

License received

on what condition.

Unlawful loans.

Semi-annual reports.

term.

SEC. 7. No corporation shall, after the expiration of the time in that behalf limited by section three, use the name or transact the business of a savings bank, or bank, or banking corporation, without first procuring from the Bank Commissioners the license provided for by this Act; and any corporation violating this provision shall forfeit the sum of one hundred dollars per day during the continuance of the offense; and any person who enters upon, engages in, or carries on, or in any manner attends to the business or management of a savings bank, or bank, or bank corporation, doing business without a license, after the expiration of such time, whether as manager, principal, agent, officer, employé, or otherwise, shall forfeit the sum of one hundred dollars for every day he so enters upon, engages in, or carries on, or attends to such business; and any violation of this section is also hereby declared to be a misdemeanor.

SEC. 8. No savings bank shall receive the license in this Act provided for, unless at least fifty per cent. of all its loans shall be secured by first mortgage, or other prior lien, upon real estate situate within this State; such loans, at the date when made, hereafter, not to exceed sixty per cent. of the market value of the security, except when made for the purpose of facilitating the sale of property owned by the corporation. And it shall be unlawful for any savings and loan society, or savings bank, to purchase, invest, or loan its capital, or the money of its depositors, or any part of either, in mining shares or stocks. Any President or managing officer who knowingly consents to a violation of the above provision shall be deemed guilty of a felony.

SEC. 9. Every savings bank, or bank, or banking corporation, doing business in this State, if incorporated before the passage of this Act, shall, twice in every year, to wit, within thirty days after the expiration of its semi-annual fiscal term, and every savings bank, or bank, or banking corporation, hereafter to be incorporated, shall, twice in each year, to wit, on the twentieth day of January and the twentieth day of July, make a report, in writing, to the Bank Commissioners, verified by the oath of its President and Secretary, or Cashier, or its two principal officers; and the semi-annual fiscal term of the savings banks, or banks, or banking corporations, hereafter incorporated, shall expire on the last day of June and the last day of December,

in each year. Such report shall show the actual financial condition of the bank making such report, upon the thirtieth day of June and thirty-first day of December, of each year, by stating

First-The amount of its capital stock, and the number of Report to shares into which it is divided.

Second-The names of its Directors, and the number of shares of stock held by each.

Third-The total amount actually paid, in coin, by stockholders for capital stock, and the total amount of reserve fund, if any.

Fourth-The total amount due to depositors.

Fifth-The total amount and character of any other liabilities it may have.

Sixth-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 otherwise; the amount at which it stands debited on the bank books; in what county situated, and in what name the title is vested, if not in the name of the corporation itself.

Seventh-The amount loaned on real estate, specifying the amount secured on real estate in each county separately; also, specifying 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 savings bank, and when the instrument creating the security does not of itself disclose the name of the savings bank.

Eighth-The amount invested in bonds, designating each particular class, and the amount thereof.

Ninth-The amount loaned on stocks and bonds, designating each particular class, and the amount thereof.

Tenth-The amount of money loaned on other securities, with a particular designation of each class, and the amount loaned on each.

Eleventh-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.

Twelfth-Any other property held or any amount of money loaned, deposited, invested, or placed, not otherwise herein enumerated, with the place where situate, and the value of such property, and the amount so loaned, deposited, or placed.

The oaths of the officers to the statements above required shall state that they, and each of them, have a personal knowledge of the matters therein contained, and that they believe every allegation, statement, matter, and thing therein contained is true; and any willfully false statement in the premises shall be perjury, and shall be punished as such.

show.

SEC. 10. Any saving bank, or bank, or bank incorpora- Penalty. tion, failing to furnish to the Bank Commissioners the report required by this Act, within the time required herein, shall forfeit the sum of one hundred dollars per day during the time of such default.

Proceedings against unsafe cor

porations.

Salary of Commissioners.

Report required.

Commissioners to appoint

hours of.

SEC. 11. If such Commissioners, on examination of the affairs of any corporation mentioned in this Act, shall find that any of said corporations or persons have been guilty of violating its charter or law, or is conducting business in an unsafe manner, they shall, by an order addressed to the corporation so offending, direct discontinuance of such illegal and unsafe practices and a conformity with the requirements of its charter and of law, and with safety and security in its transactions; and if any of said corporations or persons shall refuse or neglect to comply with such order, or whenever it shall appear to these Commissioners that it is unsafe for any of the said corporations to continue to transact business, they shall communicate with the Attorney-General, who shall immediately commence suit in the proper Court against such corporation to enjoin and prohibit it from transacting any further business; and upon the hearing of the case, if the Judge of the Court where the case is tried shall be of the opinion that it is unsafe for the parties interested for such corporation or person to continue to transact business, and that such corporation or person is insolvent, he shall issue the injunction applied for by the said Commissioners, who shall cause said injunction to be served according to law; and he shall further direct said Commissioners to take such proceedings against such corporation or person as may be decided upon by its creditors.

SEC. 12. The Bank Commissioners shall each receive a salary of three thousand dollars, and necessary traveling expenses, not to exceed five hundred dollars for each Commissioner per year, to be audited by the State Controller and paid by the State Treasurer in the same manner as the salaries of other State officers.

SEC. 13. The Bank Commissioners shall make a general report of the business of their office to the Legislature, at each session, during the first week of the session.

SEC. 14. The Bank Commissioners shall have power to appoint a Clerk, at a salary of one hundred and fifty dollars Clerk; office per month. The said Commissioners shall keep their office open for business from nine o'clock A. M. until three o'clock P. M., every day except non-judicial days. They shall procure rooms necessary for their office, at a rent not to exceed seventy-five dollars per month, and may provide a safe and necessary furniture therefor, at an expense not exceeding five hundred dollars. They may also provide stationery, fuel, and other conveniences necessary for the transaction of duties, not exceeding in the aggregate the sum of two hundred dollars per annum. All expenditures authorized in this section shall be audited and paid in the same manner as the salary of the Commissioners.

Semi-annu

SEC 15. The semi-annual reports provided for by this al report. Act shall be filed and kept on file by the Bank Commissioners, in their office, and shall be open to the inspection of the public during their office hours.

Assessments

against

banks.

SEC. 16. To meet the annual expenses provided for by this Act, the Bank Commissioners shall receive in advance, in gold coin, from each savings bank, or bank, or banking

corporation applying for a license, its pro rata amount of the salaries, and all other necessary expenses of the Commissioners, such amount to be raised by an assessment on the amount of deposits of such bank. But in estimating the amount to be paid by each savings bank, bank, or banking corporation, on applying for its first license under this Act, the amount as shown by its last semi-annual statement, published for the information of its depositors, shall be taken as the amount on deposit with it. They shall receive, for furnishing copies of papers, statements, and reports filed in their office, twenty cents per folio of one hundred words, and for certifying copies, one dollar, to be paid for by the parties applying for the same. They shall pay to the State Treasurer every month, all such amounts received by them under the provisions of this Act, to be paid into the General Fund of the State. The Commissioners may recover the amounts assessed against said banks in the name of the people, and must pay the same to the State Treasurer as aforesaid.

keep books.

be issued.

SEC. 17. The Bank Commissioners shall keep proper books commisof record of all acts, matters, and things done by them under the provisions of this Act, which shall be open to the inspection of the public during their office hours. SEC. 18. The Bank Commissioners may issue subpoenas subpoenas to for witnesses to attend and testify before them, on any examination by this Act authorized, which must be served, obeyed, and enforced as provided in the Code of Civil Procedure for civil cases; the Commissioners to issue attachments, and impose the penalty for disobedience, and the witnesses may be punished as provided in the Penal Code.

sioners to

recover

SEC. 19. The Bank Commissioners may sue for and recover, Commis in the name of the people, in any Court of competent jurisdiction, all sums of money which become due, payable, or money. forfeited by any of the provisions of this Act.

deliver

SEC. 20. The Commissioners shall, upon the expiration of Commistheir term of office, deliver to their successors, or if there be sioners to none, then to the Controller of State, all property, books, property. reports, and papers of every description pertaining to their office.

SEC. 21. All Acts are hereby repealed in so far as they are inconsistent with the provisions of this Act.

SEC. 22. This Act shall take effect and be in force from and after the fifteenth day of May, A. D. eighteen hundred and seventy-eight.

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