Los Angeles herald., 1909-03-02

ing money on deposit 1t divides banks
| up into three classes-savingS banks
| commercial banks and trust companies
| Savings banks are defined as those
| organized for the purpose of accumulat-
| ing and loaning funds of it's members
stockholders and depositors, and such
banks may loan and invest these funds;
1t may receive deposits of money, loan,
| invest and collect the same with In
terest; repay depositors, with or with
out interest; declare and pay dividends
on general deposits and pay stipulated
rate of interest on deposits made for q
stated period or upon special terms.
| Commercial banks are those author
lied by law to receive deposits OF
money, deal in commercial paper or
make loans thereon, lend other com
mercia1 paper, buy and sell securities,
gold and silver bullion, foreign coins or
bills of exchange.
| Trust companies are those incorpo-
rated for the purpose of acting as ex-
ecutor, administrator, guardian of es-
tates. assignee, receiver, depository or
trustee.
Must BE Stakeholder
Directors must be stockholders own
| ing shares having a market value of at
| lesat $500, free and clear of all lien or
hypothecation.
THE use of the words bank savings
| bank or trust company in connection
! with stationery or other printed matter
is not allowed except by duly author
, lied banks, etc. Where the institution
is not Incorporated the true names of
all persons conducting it must show III
it's name.
"Once a year list Of depositors
known to be dead, and of accounts
| which have shown no transactions dur
ing the preceding ten years, must be
submitted to the superintendent of
banks. This regulation does not apply
when the depositor is known to be
alive, or If the deposit is less than $50.
Deposits in the name of any married
woman or minor are under the exclu-
sive control of such person. Deposits
made in trust for another may, in the
event of the death of the trustee, be
| paid to the person for whom the de-
! post was made. Joint deposits made In
the name of two or more persons may
be paid to either during the life of all.
or to the survivor or survivors after the
death of one or more. The surviving
husband or wife. or the children, or the
father or mother of any deceased de-
position may withdraw the amount OH
deposit without procuring letters of adj
ministration, in cases where such de-
post does not exceed $500.
I 1.-THE paid up capital and surplus of
every bank must equal 10 per cent of
its total deposit liabilities, and 1t must
not allow its deposits to be increased
beyond such proportion. and in no
event shall the paid up capital be less
than the minimum allowed by this act.
Savings banks, however, will not be re-
quired to have a paid up capital and
| surplus of 81, 000,00 The lawful money
reserve for all banks except savings
banks, Is is per cent of the deposits,
exclusive of state, county and municipal
deposits. Three-fifths of this capital
may consist of moneys on deposit sub
ject to call with any banks other than
Savings banks in the state, provided
that the banks holding such call FUNDS
must themselves maintain 90 per cent
reserve. Before declaring dividends 10
per, cent of the net profits of the pre-
ceding half year must be added to tho