The Republican journal., 1907-04-04

nelO IN trust by any such coInr,,r,r ",Aey
constitute special deposit and H. uall
shall be kept separate, and sl,cS trhent
and the investment or loans of thao, tlnd4
be specially appropriated to the s.,c, SnaA
and payment of such deposits, ana moi ny
company, and for the purpose ,,f Hoe
ing the observance >of this proyis, See''r-
company shall have a trust den"t, aQgA
in which all business pertaining To ta Mem
trust property shall be kept separsia sun
distinct from its general busineSe h'e ana
Section Is An Ndministrator .va...
sslsnee, guardian or trustee am ,avr
OF law or equity, including courts nj T ,rt
bate and insolvency, officers and y tr pm
urers Oh towns, cities. counties, ana ssT,
Ioslt any moneys. bonds, stocS ky s QT'
dences of debt or of ownership in ~
erts, or any. personal properly r,oF'
SAID corporation, and any of SAID cMllf
t ,ta anrect any person deriving oHhort4s
tnerefrom to so deposit the same 'S
Section is. No trust company shalA,..
to any person, firm, business svHdiogVeeP
or corporation, an amount or imn,,u,-
al any time outstanding in eXgese nj ~ ~
per cent of its total capital. u0ipTaa,.tE
surplus and net undivided protj,s ' lyP
on approval of majority of It's emf
investment board, unless secured nv, ae
lateral, nor in excess of twenty its,. W. W
cent thereof. except on such Approval az
hut
ment of said majority of said invsstJ,ull Jug
board shall be of a value elual 10 ~
excess OF said loan above said ltrsr We
hVe per cent; provided, that in dalern,,55
ing SAID amount every person, firm syn
dlcate 81 corporation appearing m ~.
loan as endorser, guarantor or s,rats
Shall be regarded as an original - =.
or. But the discount of bills OF eT t'g,i.S-
Drawn IN good faith against actuallt vs.
listing values, and the discount ~ -
Or Ta
by the person negotiating the slna "hs1,
not be considered as money Lorr,or7,,',a
PROVIDED, however, that any such lo,r
pany now having loans OUTSTANDING i,
49, OF any OF the aforesaid restrir.
lions may permit the same to be r.navys5
from time TIC time as they mature for
periods not exceeding six months .-rt
II an amount equal to not less lha- Ten
per cent OF every loan SO maturing sk.,
have first feen paid in in cash fnG 81
equivalent amount shall be pail in - ,,.
eend OF every six months on all 5sm,aI
loanS IN such aggregate In all .er5
where loans in. excess of said ten ne.
cent are granted, the, records of the CON
thereof, and said records and those w.
qulrtd by section seventeen of Tins l-
SHAH constitute prima facie evidence .l
the truth of all facts stated therein 4,
prosecutions and suits 10 enforce tn,
ated IN section twenty-five Of thi- A..
Section Il. Section eighty-tWo OF gn,r.
ter forty-eight of the revised starulas ,s
hereby amended, so as to read as follows
Section 81. No trust company ss7r
make any loan to its director, of,ionr.
agents or other persons in its employ, ny
on winch any such director Officer Geart
or employee is al endorser, guaanluT 5-
surety, or TO any firm or business syn
ulcate OF which such director officer
agent or employee is Il member. ar L., .,ey
person or on the endorsement or guar.
" OF any person who is partner Of. ar
henloer NJ business syndicite WIl
such director, officer. agent or employee.
or to airy corporation of which any zurn
director, otticer. agent or employee i- b.
director, officer, superintendent or man.
aSer. until the proposition to make such
lean shall have been submitted nv I14
person desiring the same 10 The bnlr7 I,
directors Of such company, or l., th4
executive committee thereof if any aQI
accepted and approved by a majority al
the entire membership of such board or
Commute; provided, however, tha uo
director of such company who is fnt5-ast-
ed Il! said loan m any of the allow. s,-
pacities. or who is connected or r-suaIrl-
ell with the borrower in any of tn. ann,,
ways. shall be regarded as votin5 in IN.
ainfmative on such loan; Such auprpvl
the records OF the company; ana mi
record shall. in every instance, give n,
names of the directors authorizing m,
loans. Nothing in this section or In SCI
llcn sixteen OF this act shall make Il n
laWlul ior a, trust company to give 5n,
person, firm, syndicate or corporate
line OF credit to an amount not . < rcr,iir.
twenty-five per cent of its t0ta capt.
unlropaired surplus and net undE ID 4
profits. subject 10 the several r. -trictlpu
as to percentage of entire hoard en-
right OF interested persons 10 vlte o.,
same contained in said sections III
recor!s OF the company shall show hog
every director votee on the sam sgd
when such line of credit Is Eiyvr GIN.
treasurer may pay out loans in .uaan:-
ance herewith without further A..
prevail A line of credit so given shah ~
pire in six months unless renewed n rr-
same manner in which it is Originally
given
Section IS. Every trust company shall
make such report of its condition from
time. to time as the hank examiner sIfl
require, and shah cause the sau,t ly "
published as he may direct
Section 10. Two If the directors ut
least, shall once in each year t1.JoueDrt
examine the affairs Of the tompanv. ~
tle the treasurer's account, and rrWrf
Under cath TO the bank examiu.r -5.
standing OF the company. tho situit .0 g.
WIS funds, and all other matter Oh
lhe examiner requires, i'll the m1}
and according to the form that h, -d-
scribes. and mblish an abstrac, tr-r-,
II required. The examiner shall .A1.-
blanks for said examination and nTF
section 20, Any trust companv u-s7.
lied under Ghls act may adopt al !. .
sary bylaws, not Inconsistent SirE 'NT
general laws of the state for tho TI.n-
agenent of its affairs
Section p. No trust COMPANY o1w T
hereafter organized, shall cslauN-r go
branch or agency in any city or VI
other than that in which the parsnt uef
tuition has its location until il shHl, IlIe
n a
bank examiner, who shall issue Slrl "
rant only when satisfied that pubIa A-
vehisaee and advantage viii be pom Tod
by the establishment Of such hra0rN M
agency and that the unimpatrp THr-la
stock of the parent Institution i. an
Clen1 TO comply with the c0ndit0's
sectlGn eight of this act, rorku'l"H l''
aggregate population of its hpm ,I'A w
town and of all cities or t WINS .7 f"
il is authorized by its CHARTER lu rst.
lish branches or agencies, mclud'ue I'll
one under consideration Tine tA.rrH
may require such notice ur an IprUnl
non Tor branch or agency as No. decor
mitted to establish branch nr 1893
Except in its own or an adjoining r0"1N
II granted, the bank examiner SaiI l-r.'
MS warrant in duplicate, one copy g. f
lowered TO the trust company, a7d l
The company shall within ten days aIftI
opening said branch or agency, tile 't-
ificate thereof, signed bv its nresgicH.
ma treasurer, with the bank cNamiF
Inc he, right to open a branch or 4ttl'E
,hall laIse in one year from the date Oh
ling the examiners warrant with re
secretary of state unless the same Shil
lave been onened and business actaa.h
'esua in good faith. No application ~
crmission to open such branch OF az ncy
hall be acted upon until the pelitiuAinE
company shaM have paid to he s'al,
treasurer the sum of fifty dollars for th1
'enefit of the state, to be credited Any.
sed as provided in section seven OF ms
ct.