The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1890-01-07
STATE SAVINGS BANKS.
scope Of the Bill Drawn Up by Ciarl
Of spokane.


Of Spokane.
OLYMPIA, Jan. Clarke, of Spokane,
will tomorrow introduce a bin defin-
ing the powers. duties and restric-
tons Of savings banks and providing
penalties for violating the same. 1t con-
sists of forty sections elaborated and care
fully drawn. The number OF officers is
fixed and their respective duties prescribed
and il is provided that no savings bank cor
poration shall consist of more than
fifty persons. No person shall con-
tinue 70 be 8 member after removing
from the state. Regular meetings
of boards of trustees are required TO be
held as often as once Ia three months As
often as once month and at every regular
meeting the treasurer must prepare state
ment showing the condition OF the corpo-
ration and shall annually before July Is
present a true report 10 any state public
examiner. No savings bank is allowed to
receive from the same depoSitor over
5000.
II is further provided that no investment
Of deposits or surplus shall be made upon
mortgages OF real estate except upon FIRST
mortgages or unincumhered real estate
worth in each case at least twice the amount
OF such investment. Nos less than one
fourth OF the amount of such mortgages
shall be upon real estate in this state. and
not more than 70 per cent. Of the amount
OF the assets shall he invested in mortgages
Of real estate. Ii the investment is on
mortgage Of unimproyed or in productive
real estate the amount OF such investment
shall not be more than 40 per cent OF the
value thereof and no mortgage investment
shall be made by such corporation except
upon the report of committee of the
trustees or their board of investment. Not
more than one-third OF the assets shall be
invested in personal securities.
Seven per cent of the deposits and not
exceeding $4,000 may be invested in the
purchase of a suitable lot OF land and build
ings.
With the foregoing exceptions deposits
and income shall be invested only in pub
lie funds of the United States or OF states
OF California, Oregon. Idaho Nevada and
Washington, including bonds or notes OF
the counties. cities, towns. villages and
school districts of the same stock OF any
bank incorporated under the authority of
the United States; or any Of the states
named in the municipal bonds OF cities OF
5000 inhabitants or more In the states
named, In the public funds OF the same and
in county bond not issued in aid OF rail-
roads.
Nosavings bank is permitted TO hold BY
way Of investment and as security for loans
more than one quarter of the capital stock
OF any one bank nor than 10 per cent of
its deposits nor more than $4,000 in the
capital stock OF any such bank.
All real estate acquired by foreclosure of
mortgage shall be sold within i've years.
Provision is made for a surplus fund.
Rate of interest is not to exceed eIs per
cent semi-annuaily.
Every savings bank in the state shall
pay 20 the state treasurer tax on account
of its deposits OF one-half OF per cent.
per annum on the amount of its deposits
and Accommodations, after deducting the
amount OF its assets invested in real estate
owned by such corporations.
Provision Is also made for winding up
insolvent banks.
The power, privileges, duties and restric-
tons conferred and imposed upon 8 saw
ings bank by its charter are modified so as
TO conform 10 the provisions of this act.
anything in such charter TO the contrary
notwithstanding. but nothing in this act
is TO affect the legality OF invest
ments heretofore made pursuant
TO the law in force nor 20
require the change of investments for
those named in this act except as the same
can be done gradually by the sale or re-
iemption of securities so invested in SUCH
manner as 10 prevent loss or embarrass.
ment in the business OF the bank.
trustee or other officer Intentionally
violating any OF the provisions of this sc,
shall be fined not less than 500 nor more
than $1,000. The county prosecuting at
torney shall prosecute such violation on
complaint ny the public inspector.