Daily Kennebec journal., 1876-12-05
The Law Relating to Savings Banks.

recently IN session In this city. III Is entitled an
act to revise and consolidate the laws relating to
the government, powers, duties, privileges and Ii
abilities Of savings banks and institutions ior saw
| ings." The bill will be presented to the legsla
ture for its approval or rejection:
The officers of savings bank to consist Of
president, treasurer, and If the trustees deem it
necessary an assistant treasurer, and not less than
five trustees. The trustees to have the entire
| management and supervision OF the affairs Of the
bank except so far as NAV be Otherwise provided
| by their bylaws. The treasurer and assistant
treasurer shall give bonds to the corporation for
faithful discharge of the duties of their Office and
receive q compensation TO be fixed by the trustees.
The trustees may receive such compensation for
their services IN making examinations and returns
required by their by laws and the laws OF the
| State, as may be fixed by the corporation at any
legal meeting. No person shall continue to be
member of the corporation after removing from
| the State.
Every such corporation may receive on depos it
for the use and benefit of depositors sums of mon
ey offered for that purpose; but shall not receive
from any one depositor over 81 O00 and no inter-
| est shall be paid to any one dcpositor for any
| amount Of deposit over said sum, except for de-
posits by widows, orphans, administrators extcu-
tors, guardians, charitable institute 1ns and trust
funds. The trustees shall have power to reiuset
any deposi it at their pleasure.
Banks are restricted TO and hereafter may invest
their deposits in the public funds OF any Of the
New England States, including the bonds of the
counties, cities, and towns OF the same, in school
district bonds Of this State in the public funds of
the United States, in the municipal bonds of cities
| of 10000 inhabitants more, of the States of
New York, Ohio, Indiana, Illinois, Michigan,
| and Missouri, and county bonds of the same
| States, when not issued in aid of 6 railroad. Iu
the stock of any bank or banking association IN
corporated under authority of this State, and the
United States. In the first mortgage bonds OF
| any railroad company incorporated under the au-
| thOrty of this State under certain conditions in
the stock and bonds oil any other corporations ill.,
corporated under the authority of this State which
earn and are paying regular dividends Of not less
| than SIX per cent. per annum. and may invest by
loan on first mortgages OF real estate situated 10
this State not exceeding sixty per cent. OF its val
, ue, and may loan to any county, city, town or
| school district in this State, and on notes with n
| pledge as collateral Of any of the aforesaid
| securities, including its own savings bank books,
| and the stock OF any of said railroad companies,
not seventy five per cent. Of the market value
of such stock and may loan to said corporations on
personal securite. with at least two good and suf
| icient suretes. Any savings bank or institution
for savings shall have authority TO hold real estate
| to an amount not exceeding fve per cent. OF It's
deposits and no part of said amount shall be in
vested i'll real estate, except in the purchase of a
building site, and the erection and prep ,Ia-
| alton of suitable building to be used for bank
| ing purposes. No bank TO hold, both by way Of
| investment and rs security for loans, more than
one-ffth of the capital stock Of any corporate
nor invest more than ten per cent. of its deposits,
and not to exceed So, 900 in the capital stock OF
/ any corporation, nor have more than seventy-fve
per cent of It's deposits in mortgages of real es-
tate. Savings banks may deposit funds in banks
OF discount, and receive interest therefor. No
| loan shall be made to any of the trustees.
Savings banks, semi-annuslly, in April and Oc-
ober, to make return to the Secretary of State of
their business and condition. The treasurer to pay
to the treasurer of state tax account of it de-
posits of one half Of one per cent. per snnum on
the amount of its deposits as in said return One
half Of the sum so paid to be opriated for the
use Of schools, and one-half to the use Of the
State. The taxes imposed by this section shall be
paid semi-annuslly within ten days after the first
Mondays of June and December. All deposits of
| savings banks to be exempt from municipal taxa
| tian TO the bank or to the depositor excepting
| real estate owned by the bank and not held Us
collateral security, which may be taxed by the
| city or town in which the same is located. The
trustees shall, after passing TO the reserve fund
one-fourth Of one per cent not subject TO be di-
yided declare dividends, not to exceed two and
| one-haf per cent. semi-annually. The reserve
| fund shall be kept constantly on hand, to secure
| against lossess and contingencies, until the said
| reserved fund amounts to five per cent. OF their
assets. All losses shall be passed to the debit of
said account. And when said reserved fund
| amounts to - per cent. of the assets of any
bank, all net profits thereafter made by said banks
may be divided every three years ratably among
| the depo-itors Of one, two aud three full years
| standing, as extra dividends
No savings bank shall be required, or obliged
to pay any depositor $500 or less, until after
| thirty days notice, nor any sum exceeding $500,
until after sixty days notice. No treasurer OF any
savings bank, the deposits of which exceed $780,
| 00o shall be cashier in ional or stock bank.
| All securities owned or held by savings banks,
| shall be kept within this State Tressurers to make
true returns to assessors of towns and cities of Sc
curtes and other property deposited for collater-
| ais.
| NJ oe;oor or tho ,o,nora,;or Oh III ,.o o .,...
pirate any of its funds to his own private purpos-
| es under the penalties imposed by law for embez-
element. Bond and stock brokers shall be inelig-
| ibe 10 hold office in savings institutions. Money
| deposited by a married woman or a minor is the
property OF and TO be paid to the depositor or
der AMI is not the property of the husband or pa
| rents. The bank examiner shall, as now, make
| his regular examination into the affairs of the
| banks, and the statement of the condition of each
| bank shall be published in a newspaper in the
place where the bank is located. If upon
| examination it shall be found that the
| bank had done business unlawfully, and that
| its continuance wsuld be hazardous 10 the
public those having funds in its custody, appl.
cation shall be made to of the justices OF the
| supreme judicial court for an Injunction to re-
| strain the bank from doing further business until
| after a hearing. After hearing, the injunction
| may be dissolved or made perpetual and he may
appoint one or more receivers trustees to take
POSSESSION of the property and effects of the cor
poraton, subject to such rules and orders may
from time to time be prescribed by the supreme
judcia! court, or any justice thereof in vacation
| When u saving. bank shall be insovent by rea-
son of loss OF, or by depreciation in the value Of
any of its assets any judge of the supreme judi
cia court. in connection with the bank examiner
shall on the written petition of majority Of
| the trustees appoint time and make exam
| instion of the affairs of such corporation, and
if upon examination of its assets and liabilities,
| and from other evidence produced, they shall be
satisfied Of the fact set forth in said petit
ton, they may, if they shall judge it for the
interest Of the depositors aud the public, reduce
the deposit account of each depositor 80 as to
divide such loss equiably amongst the depositors,
thereby rendering the corporation solvent so that
Its further proceedings would not be hazardous to
the public or those having or placing funds in its
custody provided however, said bank shall after
wards realize from the assets so deprecated .
greater sum than that fixed upon by the judge and
| examiner, the excess so realized may be divided
and credited to the accounts Of the depositors
which had been thus reduced, but to the extent
only Of such reduction. No deposit shall be re-
ceived or paid in whole or in part after the date
Of such petition, unt the deposit accounts are re-
duced.