New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1895-05-22

ny any StOckhOlter or stockholders and
shall be over aud above the stock owned
and any amount paid thereon.
The shares in such bank are personal
property, and transferable on the books of
the bank in such manner as may be agreed
upon in the articles of such bank or pre-
scFibed in it's bylaws; and every person
becoming a stakeholder therein shall. in
the r..hts and be subject to all the liabili-
ties OF prior share holders; no change shall
be made in the articles Of such bank where
by the rights, remedies or securities of ex-.
listing creditors shall be in any manner
impaired; and any bank shall not be dis
solved by the death or insanity of any of
the shareholders therein.
See. &. The affairs of each bank shall he
managed by board OF not less than three
directors. who shall be elected by the
stockholders and hold office for one year
have qualified. A majority of the board of
directors shall constitute quorum for the
transaction Of business; provided. that
when the number of directors shall exceed
nine they may once in six months desig-
nate BY resolution nine members, any five
OF whom shall constitute a quorum. In
the first instance the directors shall be
named in the articles prescribed in section
two (2) of this act, or elected at meet
| ing held before the bank is authorized to
commence business by the superintendent,
and afterwards elected at the annual meet
ing OF the stockholders each year; and II,
for any cause, an election is not had at
that meeting, it may be held At a subse-
quent meeting called for that purpose, of
! yided in the bylaws adopted by such
bank. At meeting OF stockholders for
election of directors each share shall en-
title the owner to one vote for each di-
rector, and a stakeholder may vote at any
| meeting of the corporation by proxy In
| writing signed by him. Every director
must own and hold in his own name not
less than FIVE (5) shares of the capital stock
| no in Q n SN hQv NO
capital of 49, 600 or less, director must
own and hold in his own name not less than
| three 81 shares of the capital stock of such
bank; provided, that if the shares in
| any bank are less than one hundred dollars
| in par value, the directors shall hold shares
of the value of five hundred dollars in the
first instance and three hundred dollars in
the second instance. Each director shall
take and subscribe an oath that he will
diligently and honestly perform his duties
| in such office, and will not knowingly vio-s
ion of this act. and that he is the owner
| in good faith of the stock of the bank as
| required to qualify him for such office,
standing in his name on the books OF the
bank; the taking of such oath to be noted
on the minutes of the records of the bank
and the oath filed in the bank. Any va
cancy in the board Of directors shall be
| filled by the remaining members Of the
board, and the directors SO appointed shall
hold Office until the next election.
Sec. Z. The board Of directors Of a bank
may declare dividend of so much of the
| profits of the bank after providing for all
| expenses, losses, interest and taxes ac-
crued or due from said bank, as they shall
judge cXpedient; but before any such div
the net profits of the bank for the pre-
cedinA, half year, or for such period AS IS
covered by the dividend, shall be carried
to fund to be designated the surplus fund
until such surplus fund shall amount to
twenty per cent of it's capital stock, and
thereafter such surplus fund shall equal
twenty per cent Of the capital stock OF such
bank and whenever the same becomes i'm
paired it shall be reimbursed In the man
ner provided for it's accumulation.
Sec. s. The board of directors OF each
hank shall annually appoint from its mem
bers an examining committee, whose du-
ties it shall be to examine the CONDITION
of the bank at least once every six months
Or oftener if required, and such committee
shall report to the board, giving in detail
all items included in the assets Of the bank
which they have reason to believe are not
of the value at which they appear IN the
books and records of the bank and, and CIV
in their judgment they may have de-
termined, and the board shall cause said
report to be recorded i'll the minute books
of the hank.
Sec. 9. No director shall, directly or in
directly, in any manner use the funds of
the bank, or any part thereof, except for
regular business transactions, and alltloans
made to said directors, officers, servants
and agents of the bank shall be upon the
| same security as, required of others, and
in strict conformity to the rules and regula-
lions of the bank; and all such loans shall
be made only by the board. and shall be
acted upon in the absence of the party ap-
plying therefore.
Sec. 10. Every bank shall make to the
superintendent of banks not less than a.
reports during the year, according to the
form which may be prescribed by him,
verified by the oath or affirmation OF the
president, vice president or cashier of such
bank, and attested by the signature Of at
least two (2) Of the directors. Each re-
port shall exhibit in detail and under ap-
of the bank at the close of business on
any past day by him specified, and shall
be transmitted to the said superintendent
of banks within seven % days after the
receipt of request or requisition there
which it is made to the superintendent
of banks, shall be published in news
bank is established, or If there is no news
paper i'll the place then in one published
nearest thereto in the same county, at the
publication shall be furnished as may be
required by the superintendent of banks
The superintendent. of banks shall also
have power to call for special reports
from any particular bank. whenever in his
Judgment the same are necessary in order
to obtain a full and complete knowledge
of its condition. Every bank which fails
to make and transmit any report required
under this section shall be subject to a
penalty of one hundred dollars ($1O0) for
each day after the periods respectively
therein mentioned that it delays to make
and transmit it's report
Sec. II. Every. officer, agent or clerk of
any bank authorized by this act who will
fully and knowingly subscribes or makes
tries IN the books Of such bank. Or know
ngly subscribes or exhibits false papers
with intent to deceive any person author
lied to examine as to condition of such
EOOwinpIV baS
or makes false reports, shall be deemed
guilty of felony, and shall be subject to
Imprisonment at hard labor in the state
prison for such term not less than one
year nor more than ten years, as the court
trying him shall designate
Sec. u. The directors, officers and agents
perintendent of banks, open and keep such
books or accounts as the superintendent
may, in his discretion, determine and pre-
scribe, for the purpose OF keeping ac-
actions and accounts of such banks, and
| any bank that refuses. or negects to open
and keep such books or accounts so pre-
scribed shall be subject to a penalty of
ten dollars for each day it neglects and
fails to open and keep such prescribed
books or accounts
Sec, 10. No bank shall make any loan
or discount on the security of the shares
Of it's own capital stock, nor be the pur-
chaser or holder Of any such shares unless
such security or purchase shall be necessary
to prevent loss mon debt previously
contracted in good faith; and stock so
purchased or acquired shall within six e.,
months from the time of it's purchase be
sold or disposed Of at public or private
sale.
Sec. IA. Such bank may demand and re-
ceive for loans on real and personal Sc
curity, or for notes, bills or other evil
dences of debt discounted or purchased
such rate Of interest as may be agreed
| upon by the parties, not exceeding ten
per cent per annum, subject, however, to
such general laws regulating and fixing the
legislature; and 1t shan be lawful to re-