Daily Los Angeles herald., 1878-04-10
F"" Bunh commissioners AcI.

T"" 1rnh commissioners Ac,.
This act received considerably
amendment after passing through
both Houses. AS agreed upon by th,
Conference Committee it contain.
the following provisions:
Provision is made for the appoint
ment by the Governor, on or before
the 10th day of May, of three CON-
petent persons, one of whom shall
be an expert in accounts, to be
styled Bank commissioners, to
bold office for four years, and that
no two of said Commissioners shall
be residents of the same county.
The persons appointed are to have
no connection with any bank,
banking society, or company, nor
during their term in office to own
their stock, or he interested in
them. Their Office to be in the city
of San Francisco. They are to give
bonds in $4,000. and to take the
usual oath of Office.
Section 8 prescribes that the duty
of said Com missioners shall be
within sixty days after their quail
fication to prepare aud furnish to
all banks aud banking corporations
incorporated under the laws of the
State, or any other State or coun-
try, and doing business in this
State,applying therefor in writing,
Il license authorizing such corpora
ton to use the same and transact
the business of II savings bank,
bank, or banking company for one
year from the date thereof, to re-
ceive and place on file in their
office the semi annual report re-
quired to be made by this act, to
furnish on demand to officers of
banks blank forms for the state
ments required by law, on or be-
fore the 30th day Of June each
year; to furnish u report to the
Governor containing a tabulated
statement of tho reports filed in
their Office since their last report,
and any other proceedings by them
under this act, showing generally
the banking business and interests
in this State.
Section requires the Commits
sioners to visit, and make full eX-
animation of the affairs of each
bank semi-annually, and to report
its condition to the Attorney Gen
eral as soon after as possible.
Section prescrihes that all ex-
aminations of bank directors or
officials shall be had under oath,
and that whoever shall refuse to
testify shall be deemed guilty of q
misdemeanor, punishable by fine
not exceeding $1,000, or by impris.
onment in the County Jail not TO
exceed one year, or by both.
Section G provides that if any
Bank Commissioners shall have
knowledge of the insolvency or
unsafe condition of any bank and
fail to report the same to the Attor-
General, as required by the
act, he shall, on conviction thereof,
be punished by fine not exceed
ing $4,000, or by Imprisonment in
the County Jail not less than one
year, and not exceeding two years,
or by both, and his Office shall be
declared vacant, and Il successor al-
pointed for the unexpired term.
Section I provides n penalty of
500 per day for banks carrying on
q business without q license, and
of 500 per day for every officer
who enters upon and carries on the
business of such bank.
Section provides that no licens-
es shall be issued to banks unless
80 per cent. of all their loans are
secured by first mortgage or other
prior lien upon real estate, such
loans not to eXoeod at the date
made 90 per cent. of the market
value of the security. 1t is rem
dered unlawful to advance any
money on mining securities, and
officers of bank so doing shall be-
deemed guilty of a felony.
Section 8 requires all banks to
make u semi-annual report to the
Commissioners according to q pre-
scribed form.
BY section II, If after notice any
bank shall continue to conduct its
business in what shall appear to
the Commissioners to be an unsafe
manner, the Attorney-General
shall institute suit in the proper
court, and if it shall appear to the
Judge that such bank is so acting,
he shall issue an injunction to pro-
hibit it from transacting further
business.
The Bank Commissioners shall
each receive $4,000, and travelling
expenses not to exceed $500, and
are empowered to employ clerk at
$l50;a month. Each bank ia to
pay its pro alta Of the expenses of
the Commission the amount to be
raised by an assessment on the
amount of deposits of such bank.
The Commissioners may sue in the
name Of the people in any Court of
competent jurisdiction.