The Olneyville times. (Olneyville [Providence, R.I.]) 1887-1917, 1908-09-11


consist OF balance subject 10 demand
draft with reserve agents authorized by
this act and approved by the bank COM
missioner. Whenever the reserve fund or
any bank or trust company shall be below
said fifteen per centum such bank or
trust company shall not make any loan or
discounts. otherwise than by discounting
or purchasing bills OF exchange payable AT
sight. or make any dividends OF its profits
until it's reserve fund Is restored TO the
required fifteen per centum. The bank
commissioner shall notify any bank or
trust company whose reserve fund is be-
low said fifteen per centum and IL such
bank or trust company shall fail, for thir-
~ days thereafter. TO make good such re-
serve fund. the bank commissioner with
the consent I'm writing OF at least one 9TH
er member OF the board OF bank incorpo-
ration may apply for the appointment OF
a receiver to wind up its business: Pro-
vided. however, that the requirement or 4
reserve fund in this section shall not APP
ply TO the deposits In the savings or par
! ticipation department OF, or deposits re-
ceived as savings or on participation by
any bank or trust company that have
been set apart for the exclusive protec-
| tion OF such depositors under the proVi'
sions of section So OF this act, but such
| bank or trust company shall maintain
| against such deposits a reserve fund or
the amount and in the manner required
TO be maintained by savings banks under
] the provisions OF this act, and shall also
| be subject TO the regulations and liabili-
ties with regard thereto.
| Sec So Every savings bank shall on the
! first day of February, in each year re-
/ serve as a guaranty fund from the net
/ profits which have accumulated during
| the twelve months last preceding, not less
| than one-eighth nor more than one-fourth
/ OF one per centum OF the whole amount
| OF deposits. until such fund amounts 10
rtasal. mt Of
| deposits, which fund shall be thereafter
maintained and held to meet losses I'm its
! business from depreciation OF its securl-
| ties, or otherwise.
Sec. 81. Reserve agents. within the
meaning of this act, shall only include
banks, national banking associations. or
! trust companies In, and members or the
| clearing house association OF. the city OF
Providence. and national banking associa-
| tions, and banks or trust companies incor-
! porated bys the state in which they are
! located, which are located in the cities Of
! New York, Boston, Philadelphia, Chicago
! and Albany and which are approved by
the bank commissioner. and which main
| tain twenty-five per centum reserve Of
! all their deposits which said twenty-five
per centum reserve may be kept and
! maintained In the manner provided In the
national banking act OF the United States
TO be kept and maintained in reserve
cities: Provided however, that any bank
| national banking association. or trust
company located and doing business i'm the
| city of Providence. and member OF the
| clearing house association I'm said city.
| and which maintains reserve OF the
amount and in the manner required by
! this act TO be maintained by banks and
| trust companies. may be a reserve agent
| for all banks and trust companies located
| and doing business in any town in this
state; and provided, also. that the word
aN..1 Ia
| cuds city.
| Sec 55 All banks and trust companies
maintaining savings or participation
| department. under any name or title
| whatsoever, or soliciting or receiving de-
| posts savings, or on participation,
| shall invest all such deposits therein or
| so received. according to the require
| ments of this act concerning the invest
| ment OF deposits In savings banks, and
| said deposits and Investments shall be set
apart for the exclusive protection of the
depostors in said savings or participation
| department OF such savings or participa-
ton depositors. and shall not be liable
for. or used TO pay any other obligation
or liability OF said bank or trust company
| until after the payment OF all OF the de-
| posits in said savings or participation de-
| partment of such savings or participation
! depositors: Provided. however, that the
savings or participation deposits held by
|
of the passage OF this act may be invested
in accordance with the provisions hereof,
and shall be set apart for the exclusive
protection OF such depositors. as herein
before provided. at least one-iifth part on
or before the first day OF February in
each year thereafter OF the amount on
deposit at the time OF the passage of
this act and not thereafter withdrawn.
and all such deposits shall be so invest "d
and set apart on or before the first day
OF February 1913; and provided, further,
that II the change of investment OF any
part OF said deposits can not be made
within said FIVE years In such manner as
10 prevent loss or embarrassment in the
business of such bank or trust company.
or unnecessary loss or injury 10 the bOr-
rowers on such securities, the bank com
missioner, upon the petition of such cor
poration, may grant an additional time
for such change OF Investment.
Sec. 56. The provisions Of this act shall
not render illegal any investments held
by any savings bank at the time OF It's
passage. nor require the change OF any
such investment for those prescribed by
this act for the investment OF savings de-
posits: Provided however. ~ any savings
bank shall hold. at the time OF the pas
sage OF this act, any investment or In
vestments which are in default In the
payment OF interest or dividends thereon
or which, at any time, In the opinion OF
the bank commissioner are hazardous or
unsafe for the investment Of savings de
posits, the bank commissioner may by
notice in writing require such savings
bank to dispose OF such investments; and
such savings bank within one year from
the receipt Of such notice. unless sucf
time shall be extended by the commits
sioner. shall dispose OF the same.
Sec. 81. All deposits In savings banks
and I'm the savings or participation de-
partments Of or received as savings de
posits or on participation by banks and
trust companies. and I'm the case OF saw
ings banks the income derived therefrom
hereafter received shall be invested only
as follows:
First. (a) In the bonds OF the United
States or OF any state or territory Of the
United States. provided that such state
or territory has not, in the ten years pre-
seding the time OF such Investment. repu-
dated its debt or failed TO pay the same
, or the interest due thereon OF upon any
part Of such debt.
Cb) In the bonds or notes Of any city
| county or town Of the New England