Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1878-12-13
Recent Liquidation IN Regard 60 saw
tnrs Hauks.

lection for the interests of depositors, and
made several important suggestions in regard
/ to needed legal safeguards The subject
/ had some OF the best attention md discussion
that was given to any public matter during
/ the session and the result was the passage
OF u comprehensive general law in regard TO
savings banks and savings institutions. The
act was drawn by our townsmau Hon. VIM.
! g. Show, whose legal learning, business
capacity and long connection with the Bur
lington savings bank especially fitted him for
the service and lac gave his personal atten-
ton to it before the committees and at all
stages of its progress through the Legislature.
The purpose of the law is to throw around
the savings banks the protection of legisla-
tive and controlling regulations in regard to
their modes of investments the amount Of
deposits by individual depositors, their divi-
dends and surplus. and providing for full an
nual reports to the inspector Of finance,
showing their condition and bringing them
all to a uniform system Of government and
management The following is an accurate
abstract Of the law
REPORTS
Sec. !, provides that reports shall be made
annually by the treasurer Of every such insti-
tuition under oath, showing accurately its con-
dition on the first day Of July
These reports shall be embodied in bien-
y
general assembly, which shall be published
with those of the other State officers. And
in the year when no session of the Legislature
is held the inspector of finance is authorized
to publish in pamphlet form for general dis
trbution one Thousand copies of the report
of the savings banks and trust companies for
that year.
In case of the neglect of any treasurer of
such corporation to mike such report pen
off of lpl1 - nd
the inspector Of finance may examine the af-
fairs thereof. and make up a report Of its con
ditiOu. 70 be published rs aforesaid
OFFICERS.
The officers of every savings bank are to
consist of a president one or more vice pres
idents, board OF trustees of not less than
! seven nor more than eleven members. "A treas
urer, who shall be cr-ofici0 clerk. and such
other officers rs shall be necessary No Off
/ Ger of any savings bank shall hold Office in
! another such institution at the same time
/ nor be president, vice-p president, cashier or
! treasurer in any bank of discount or any trust
! company III this State
All these officers. except the treasurer. as
! sistant- treasurer and clerks. shall be chosen
at the annual meeting Of the corporation
| The treasurer assistant treasurer and clerks
are to be appointed by the trustees and hold
/ office at their pleasure.
/ The trustees shall have the general man
! agement of the affairs of the bank shall meet
as often as once in three months to receive
| the report of the treasurer and for the tran
saction of other business. As often as once
/ a month the treasurer shall prepare state
ment showing the condition of the corpora
ton, in the form of trial balance statement
/ of its accounts, which shall bC recorded
As often as once III six months the trustees
shall cause IA thorough examination and re
| port in detail to be made of the assets and IL
abilities Of the bank No trustee or other Of
hcer shall directly or indir city borrow or use
any of the funds OF the corporation
TREAsURIE's BOND.
The treasurer Of every savings bank or
trust company shall give to the corporation a
/ bond for the faithful discharge Of the duties
Of his Office in not less than ten thousand dol
lars, and when the deposits including capital,
shall exceed one hundred thousand dollars.
the penal sum of such bond shall be increas-
ed two thousand dollars for each additional
sum Of 500. 900 or fractional part thereof.
! The inspector Of finance shall annually exam
| Inc such bonds and may order a new bond IL
lieu Of any which he may deem insufficient,
and if such new bond be not filed according
! ly. the Office of treasurer shall become va
cant.
DEPOSITS.
No person shall directly or indirectly do
post in any one savings bank more than two
thousand dollars and no dividend shall be
paid to any one dspositor on any amount in
excess of such sum. except III cases of depos-
! its by widows. orphans. administrator exec
utors, guardians charitable or religious in
situations. and as trust funds and by order Of
| Court The trustees may refuse any deposit
at their discretion, and may at any time
| turn all or any part of any deposit
The regulations of the bank in regard TO
withdrawal of deposits. etc. shall be put up
in some conspicu Gus place in the room where
the business Of the bank Is transacted and
shall be printed in the deposit books issued
by the corporation
In any action against any savings bank 10y
husband TO recover for moneys deposited
by his wife il her own name, or as her own
money the wife may testify and i'll all
tons against any such corporation TO recover
| for deposits thereon when any third person
claims the fund, the action may, on the peti-
| ton of the bank, be converted into sort Of
proceeding of interpleader without going
into a court of chancery in which the claim
ants can fight out the question between them
selves, and the money meanwhile remains in
the bank on interest
INVESTMENTS AND LOANS.
The amount invested by any bank on mort
cages of real estate shall not exceed seventy
per cent OF its assets. At least Oue-fourth
OF all It's mortgage Investments shall be
Oh real estate III Vermont No mortgage
investment shall be made on real estate
worth less than twice the amount invested,
and III cases Of unimproyed or unproductive
real estate, not more than forty per cent Of its
value shall be loaned thereon No mortgage
investment snail be made except upon the re
port of a committee of the trustees. All eI-
penses of insuring buildings covered by such
mortgages, when the insurance Is for the ben
eft OF the bank shall constitute u lien upon
the mortgaged property and shall be recover
able with interest semiannualy and secured
by the mortgage.
No loans or investments on merely person
al security shall be made except upon at least
two approved names not less than two Of
whom shall reside in this STATE, and such per
sonal loans or investments shall not be- for
longer time than one year and not more than
one-third of the assets of any Savings Bank,
shall be invested il personal securities.
A Savings Bank may invest five per cent Of
its deposits, not however exceeding thirty
thousand dollars, in a suitable. building for the
transaction of its business from portions Of
which, not required for its own use, a reve-
nue. may be derived
With the above exceptions the deposits shall
be invested only as follows
In the public funds of the United States
or those public funds for which the faith Of
the United States is pledged TO provide for
the payment of interest and principal
In the public funds of any of the New
England States, including the bonds or notes
of the counties cities, towns, villages and
school districts of the same.
In the stock of any bank, or banking asso-
citation or trust company, Incorporated under
the authority of the United States, on of any
Of the New England States or of New York
In the municipal bonds OF cities of twenty
thousand inhabitants or more, in the States Of
New York, New Jersey, Pennsylvania, Ohio,
Indiana, Illinois. Wisconsin Minnesota. Iowa