Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1884-12-19

may designate, such order to be in writing |
directed and delivered TO the treasurer Of such
corporation at least ninety days prior to the
time limited in such order for such sale.
SEC. "a. Savings banks or trust companies
incorporated under the laws of this State may
demand and receive interest on their loans at
the rate OF six per cent per annum, payable
mi-annuallv.
DIVIDENDS AND SURPLUS
SEC. 35. A savings bank or savings msti-
tuition shall, at the time of making each semi
annual dividend, reserve, from the net profits
accumulated during the six months then next
preceding, not less than one-eighth nor more
than one-fourth of one per cent of the amount
of deposits as a surplus fund, until such fund
amounts 10 five per cent of the amount of de-
posits and other liabilities except surplus,
which fund shall be thereafter maintained and
held to meet losses in its business from depre-
citation of its securities or otherwise. The
trustees of savings bank or savings institu-
ton shall regulate the rate of interest or divi-
dends not TO exceed two and One-half per cent
semi annually upon the deposits Herewith, in
such manner that depositors shall receive as
nearly as may be, the profits of such corpora
ton after deducting necessary expenses and
| reserving such amount as the trustees deem
eXpedient as a surplus fund for the security of
dePOsitOrs, which, to the amount of ten per
corporation may gradually accumulate and
hold to meet any contingency or loss in its
business from the depreciation of its securities
or otherwise; but the trustees may classify
the depositors according to the character
| amount and duration of their dealings with
the corporation, and regulate the interest or
dividends allowed, so that each depositor shall
receive the same ratable proportion of interest
or dividends as others of his class The trus-
! Clo1l Ill
dends on a deposit for a longer period than
the same has been deposited except that de-
posts made not later than the tenth day of the
month commencing a semi annual interest
period, or than the fifth day of other
months, may, in the discretion of the trustees,
have interest or dividends declared upon them
from the first day of the month when so
| deposited. After the accumulation of a sur
! plus fund of ten per cent of their deposits,
which, or the accumulatons toward which,
! before it amounts to such ten per cent shall
not be reduced by dividends or interest paid or
credited, but shall be thereafter maintained
and held to meet losses in its business from
any cause, the trustees may declare and pay
such semi-annual dividends or interest as in
their judgment the earnings and resources of
the corporation. above such surplus fund
warrant. No dividends or interest shall be
declared, credited or paid until the trustees
cause an examination to be made, and find that
the amount thereof has been actually earned
and stands to the credit of the corporation, nor
except by the authority of a vote of the board
of trustees entered upon their records, with
the yeas and nays upon such vote Semi an
nual dividends shall be declared as of the first
of January and the first of July.
SEC. &c. In determining the per cent. of
surplus held by savings bank or savings in
stltuton, its interest or dividend paying
stocks and bonds shall not be estimated above
their market value, its notes and mortgages
! shall be estimated at their face and accrued
interest, and its real estate at not above cost.
The inspector of finance shall, however, have
a revisory and controlling determination from
the best information he may obtain as to the
valuation of the investments of such corpora
ton, and may change the valuation thereof
| from time to time, according as he may OBJ
tain other and further information
REDUCING DEPOSITS IN AN INsoLvENT IN
sTITUTION.
Sac. 81. When a savings bank or savings
institution is insolvent by reason of loss on,
or by depreciation in the value of its assets,
| without fault of the trustees a chancellor
shall, on petition in writing of a majority of
the trustees of such corporation and the in
spector of finance, setting forth such facts,
appoint a time for the examination Of the
affairs of such corporation and cause notice
! thereof to be given to parties interested, in
such manner as he prescribes and if upon
such examination as he makes or causes to be
made, of its assets and liabilities, and from
other evidence, he is satisfied of the facts set
forth in said petition, and that the corporation
has not exceeded its powers nor failed to
comply with the rules, restrictions and con-
ditiOnS provided by law, he may, if he deems
it for the interest of the depositors and the
public, reduce the deposit account of each
depositor, so as to divide such loss proportion
ately among the depositors, thereby rendering
the corporation solvent, so that its further pro-
ceedings will not be hazardous to the public,
or those having or placing funds in it's Gus
tOdy; and the depOsitors shall not draw from
such corporation a larger sum than thus fixed
by the chancellor, except as hereinbefore pro-
vided but the treasurer of such corporation
shall keep an account of sums received for
such assets of the corporation held by it at
the time of filing such petition and if a
larger sum is realized than the value estimat-
ed as aforesaid, by the chancellor, he shall at
such time as the chancellor prescrbes render
to the chancellor an account thereof and
thereupon the chancellor, after due notice
thereof to parties interested, shall declare a
dividend of such excess among the depostors
at the time of filing the petition No deposit
shall be paid or received by such corporation
after the filing of the petition, until the de-
cree of the chancellor reducing the deposits as
herein provided. If the petition is denied, the
inspector of finance shall proceed for an in
junction against such corporation and the
winding up of its affairs as provided by sec
ton 80 of this act.
INSPECTION. CLOSING UP AFFAIRS FOR
BREACH OF LAW.
SEC. SO. The inspector of finance shall
annually, without previous notice, visit and
inspect the condition and affairs of every
savings bank, savings institution and trust
company, and oftener if he believes the
interest and safety of the depositors and cred
itors require it. He may examine, upon OATH
the officers, agents and servants of such saw
ings bank, savings institution or trust com
pany, or any other person, in relation to the
affairs and condition of such institution
which oath the inspector may administer
When the treasurer or cashier of any trust
company, is an officer of any national sank
or banking association, or the business of any
savings bank, savings institution or trust COM
pany is carried on in the same Office or build
ing with a national banking association, the
inspector of finance shall, al least once in
each year, visit and inspect the condition of
such savings bank, savings institution or
trust company, at the same time that the
United States bank examiner visits and ex-