The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1906-03-08

! FOr COmmcrclal Dank ana
safe deposit company. ...... $4,000
For commercial bank, saw
ings bank and safe deposit
company .........~...... $4,000
| For a trust company .... 100000
For trust company and safe
| deposit company y.....,.. 100000
For savings bank and trust
company ...A.........,. O0,O0U
For savings bank, safe de-
post company and a trust
company ................. 125, 900
For a commercial bank, saw
ings bank, safe deposit com
| pany and a trust company 125,000
How Capital Must BE Paid In.
The entire authorized capital must
be subscribed and at least so per cent
must be paid in before banking cor
| poration can commence business. The
, remainder of the subscribed capital
| must be paid in in monthly Install
ments of at least 10 per cent, payable
| at the end of each succeeding month
| The stock OF stockholders who fail TO
pay their installments when due must
| be sold. IL 1t cannot be sold, it must
be cancelled Whenever the capital
stock OF any bank is reduced below
the minimum required by law, from
any cause. ii must he raised to the
minimum within sixty days. II this is
not done. the superintendent of banks
may apply for receiver.
| The capital OF bank may be in
! creased or decreased by proper action
| of the stockholders, but It must not be
reduced below the required minimum
| In any case.
No bank shall advertise in any man
ner larger capital than is actually
paid in. A severe penalty is provided
for violation Of this provision.
Board Of Directors.
Boards of directors may consist of
not less than five nor more than thir-
! ty persons Each director must own at
| least five shares of stock in his own
name, unincumbered and unpledged in
any way, and must take an oath OF
| office.
The board of directors has full con.
troll Of the government of the corpora
| tion. 1t must meet at least once a
month. ana shall appoint an executive
! committee.
| Bank Officers.
Bank officers ore to be elected by
the board of directors. They must fur
nish bond for the faithful discharge OF
their-duties. Severe penalties are pre-.
scribed for malfeasance in Office, in
| Gliding embezzlement, misapplication
| OF any part or all of the funds or prop.
erty of the bank, making false entries,
defraudlng. etc.
| Executive COMMITTEES.
| The executive committee must con.
sist of not less than three stockhold-
| ers or directors. II must meet not less
| than once u month. 1t must pass on
| all loans and investments, and in doing
| so. must be governed by instructions
| given by the board of directors. 1t
must keep minutes of it's meetings and
report to the board of directors.
Examinations by Stockholders.
The board of directors must appoint
annually committee of at least two
stockholders or directors to thorough
ly examine, or to superintend the ex-
animation of all the assets and liza
bilitles OF the corporation, and to re-
port to the board of directors the re-
suit of said examination.
Surplus and Dividends.
Before paying any dividend, The
board of directors must carry TO sur
plus one-tenth of the net profits of .hc
period covered by the dividend, until
such surplus is equal to twenty per
cent of the authorized capital. Pro
vision must be made for the payment
Df all expenses, losses, interest charg-
rs. taxes. etc. after which the amount
of the dividend may be determined at
the discretion of the board of direc-
tors.
Joint Deposit Accounts.
Joint deposit accounts may be open
ed by two or more persons subject to
check by any one party to the agree
ment. which shall continue for the use
OF survivor after the death of one OF
more of the parties to the agreement.
! certification of Checks.
All certified checks must be charg-
ed to the account of the person draw
Ing the check when they are certified.
A check must not be certified for
larger amount than is actually on de-
| posit in the bank to the credit of the
: person drawing the check. Severe
penalties are prescribed for the viola
tion Of these provisions.
Limitations On Loans.
No person, firm or corporation shall
be allowed to become indebted to a
| bank for any amount in excess of so
per cent of its paid-in capital and sur
plus, and all such Indebtedness in ex-
cess OF 20 per cent of the capital and
surplus must be adequately secured
! by deposits of collateral Discounts
OF bills of exchange drawn against ex.
listing values. and discounted CONNER.
cial or business paper actually owned
by person. firm or corporation ne
gotiating the same, are not to be con.
sidered as part of their Indebtedness
In determining the limit of their
credit.
FW commercial banks, loans secur-
ed by real estate shall not exceed SO
per cent of their capital, surplus and
deposits. For savings banks, or for
commercial and savings banks COM
bined. loans so secured shall not ex-
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