The Somerset reporter. [volume] (Skowhegan, Me.) 1868-1909, 1907-04-04

. Section 10. No person shall be eligible
to the position of a director of any such
company who Is not the actual owner of
ten shares OF the stock.
Section IA. All the property or money
| held in trust by any such company shall
constitute n special deposit and the ac-
counts thereof, of said trust department
shall be kept separate, and such funds
and the Investment or loans of them shall
be specially appropriated TO the security
and payment of such deposits and not ba
subject Ia any other liabilities of the
company, and for the purpose of secur-
ing the observance of this provsn, such
company shall have trust department
in which all business pertaining to such
trust property shall be kept separate and
distinct from its general business
Section j.. An administrator, executor,
assignee, guardian or trustee, any court
of law or equity. including courts of pro-
bate and insolvency officers and treas
lngS banks of the state of Maine, may de-
post any moneys, bonds. stocks, evil
dcnces of debt or of ownership in prop
said corporation, and any of said courts
may direct any person deriving authority
theretrom to so deposit the same.
Section lG No trust company shall loan
to any person, firm, business syndicate,
or corporation, an amount or amounts,
nj any time outstanding in excess of ten
per cent Of its total capital, nnimpaired
surplus and net undivided profits. except
on app oval of MINORITY of its entire
Investment board, unless secured by COL
lateral, nor in excess of twenty-five per
cent thereof, except on such approval and
secured by cc9latenal. which in the jndg-
ment of said ma iority of said investment
board Shall BE OF value equal TO the
excess o. said loan above said twenty
i've pr cent; provided that in determin-
ing said amount every person, firm syn
dictate 81 corporation appearing on any
loan as endorser, guarantor or surety
shall be regarded as an original promis
or But the discount of bills OF exchange
draw in good faith against actually ex-
listing values, and the discount OF COM
mercial or business paper actually owned
by the person negotiating the same, shall
not be considered money borrowed
Provided. however. that any such COM
pany now having loans outstanding in
excess of any of the aforesaid restric-
tons may permit the same to be renewed
from time tc time they ma ture, for
periods not exceeding six months each.
if an amount equal to not less than ten
per cent OF every loan SO maturing shall
have FIRST heen paid in in cash, and Ii an
equivalent amount shall be paid In at the
end of every six months on all demand
loans in such aggregate. In all cases
Where loans in excess of said ten per
pany shall show who voted in favor
thereof, and said records and those re-
CURED by section seventeen of this act
shall constitute prima facie evidence of
the truth Of all facts stated therein in
prosecutions and suits TO enforce the
several provisions and penalties ennmer-
ated III section twenty-five of this act.
Section Il. Section eighty-two of chap
ter lortY-cight of the revised statutes Is
hereby amended so as to read as follows:
Section 81. No trust company shall
make any loan to its directors. officers.
agents or other persons in its employ, or
on which any such director. officer. agent
or employee is an endorser. guarantor or
surety, or to any firm or business syn
dictate of which such director. officer,
agent or employee is a member, or TO any
/, person or on the endorsement or guaran
tN OF any person who is n partner of, or
member If a business syndicate with
such director, officer, agent or employee.
a af {ph Oh
director, officer agent or employee Is a
director, officer, superintendent or man
agtr grtil the proposition to make such
person desiring the same to the board of
directors of such company, or to the
executive committee thereof, If any, and
accepted and approved by a ma tority of
the eItire membership of such board or
committee; provided, however, that no
director of such company who is interest
eel n said loan IN any of the above ca
pacitieS, 1r who is connected or associat-
ell with the borrower in any of the abova
ways shall be regarded as voting in tho
affirmative on such loan. Such approval
il the l"an is made, shall be spread upon
the records of the company ami this
record snail, in every instance, give tho
names of the directors authorizing the
loans. Nothing in this section or in see-
ton sixteen of this act shall make it IN
on, firm, syndicate or corporate n
line of credit to an amount not exceeding
twenty-five per cent of its total camtal.
profits. subject Ia The several restrictions
as to percentage of entire hoard and
right Of interested persons To vote ON
same contained in said sections The
records of the company shall show how
every director voted on the same, End
when such line Of credit rs given the
treasurer may pay out loans In accord
ance Herewith without further ap-
prevail a line Of credit SO given shall ex-
pirc in six months unless renewed in the
same manner in which 1t is originally
given
Section Is. Every trust company shall
make such report of its condition from
time to time as the bank examiner shall
require and shall cause the same to be
published as he may. direct.
Section 10. Two CT the directors, Mt
lcas.. shall once in each year thoroughly
examine the affairs of the company set.
tie the treasurer's account, and report
nndcr cath TO the bank examiner the
standing of the company the situation at
d.s funds, and all other matters which
me dnG examiner Examiner requires, In the manner
scriLes. and publish an abstract thereof.
if required. The examiner shall season.
ably give notice of the time and furnish
blanks for said examination and report.
Section 90. ANY trust company organ
lied under this act may adopt all neces-
sary bylaws, not inconsistent with the
Hg"nent of its affairs.
Section q, No trust company now or
hereafter organized. shall establish II
branch or agency in any city or town
other than that in which the parent insti-
tuition has its location until it shall have
received warrant 50 to do from tho
bark examiner who shall issue such war
rant only when satisfied that public coll
Vcricace and advantage will be promoted
by the establishment Of such branch or
agency and that the unlmpaired capital
stock OF the parent institution is Suft-
Cinut to comrlY with the conditions OF
section eight of this act. reckoning the
aggregate population OF its home city or
town 3nd Of all cities or towns in which
il - authorized by its charter 10 estah-
fish branches or agencies including the
one under consideration. The examiner
= may require such notice on an applica-
tion for q branch or agency he deems
proucr No trust company shall he per
= mitted to establish a branch or agency
except in its own or an adjoining county.
= IL granted the bank examiner shall Issue
his warrant in duplicate one copy to be
delivered 10 the trust company. and the
other to the secretary of state for record.
: The company shall within ten days after
opening seid branch or agency, file a GER
ana treasurer, with the hank examiner.
The right to open a branch or agency
shall lar in one year from tho date of
filing the examiners warrant with tho
secretary of state unless the same shall
have been opened and business actually
begun in coed faith. No application for
permission to open such branch OF agency
shall he acted upon until the petitionng
cOmpaaY SHAH have paid to he state
benefit of the state to be credited and
used as provided in section seven of this
act.
Section %. Every director officer. agent
and employee of such company. who au-
thori2Hs, or assists in procuring, grant