The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-12-04
BALANCES IN BANK.
AttOrney-General HOrd Describes the Legal
Rights of DepOSitOrs and Bank officers.

Can a savings bank trustee who has failed
for nine months to attend the regular meetings
of the board resume his position without again
being elected in accordance with the provisions
of the lava" is question asked Attorney general
Hord by Auditor of State Rice. to which the At
torney general answers: "He can not;
the Office becomes vacant by the
operation of the statute" In answer to the in
quiry if ''the trustees decide to make a change
in the Office of cashier at the expiration of year
from his election, and the cashier should refuse
to turn over the bank assets in his possession,
how should the trustees proceed to compel him
to do 500" the Attorney general says that it is
the duty of the cashier to surrender to his lawful
successor the assets of the bank, and il he re-
fuses to do so he is liable to an action on his
bond.
"What liability will the trustees incur if any
officer of the bank makes loans without the con
sent of the majority of the trustees the unan-
imous consent of the committee of Investment
is another question in relation to the government
of State banks, to which the Attorney general
replies: THE statute expressly prohibits the
corporation from making loans without the con
sent of a majority of the trustees or the unani-
nous consent Of the committee of investment.
If bank directors do not manage the affairs and
business of the bank according to the directions
of the charter, and in good faith, they will be
liable for the losses which their mismanagement
may cause the stockholders and creditors"
| The Auditor also asks ''Does the savings bank
act contemplate or authorize a general banking
| business-that is, to receive deposits payable,
and pay them demand to buy and sell ex
change; doing this business like national or
State bankl' to which the Attorney general
| answers that, Ordinarily, a bank balance, al
though single contract debt, is nevertheless,
| practically, nearly, or quite equivalent to cash
| in hand, and the bank is under obligations to
| honor the customers drafts and checks whenever
| the same are presented for payment. The con-
tract to honor the depositors orders is implied
from the usual course of business, but our stat
ute has, in some respects, imposed limitation
upon this rule as to savings banks. The bank is
| authorized to receive deposits. The statute has
authorized the bank to invest the money depos-
tied therein, and prescribed the mode of such in
vestment of any part ofany deposit of over So 000
| but in any case where a deposit has been made
| for definite time, no notice for a withdrawal at
| the capitalization thereof shall be necessary,
unless the depositer fail to withdraw the same
within ten days If at any time, in the opinion
of the Auditor of State, any savings bank is
| solvent and doing business according to lag,
and it is necessary in order to prevent a run on
such bank, and also to prevent loss and sacrifice
| to the depositors the trustees of such bank
may, by and with the written consent of such
| Auditor make any and all changes deemed nee
essary ia regard to the notices which are above
required to be given by the depositors for the
withdrawal of their deposits, and also
extend the time that notices shall be given
| by the depositors for the withdrawal of
any and all deposits, to any period oftime not
exceeding six months. The right of the deposit
or to withdrawn his money is limited and re-
strained by this section of the statute, and he
can check it out only on the terms prescribed
therein 1t is lawful for the trustees of any
savings bank to invest money deposited therein
in exchange by purchasing and selling sight or
| time drafts, payable out of this State, provided
| that no draft shall be purchased unless the same
| be made or Endorsed by two more freehOlders
of the county in which the bank is located or an
adjoining county, and no such draft shall be for
a larger sum than $1,000. nor shall any time
draft payable out of the State be so purchased,
which shall have, at the time Of such purchase,
more than sixty days to until it natures;
and provided, also, that not mole than one draft
shall be held by any such bank at any one
time, which is secured by the same indorserS or
| by any of the same indorsers.