Los Angeles herald., 1909-03-02

reserve fund until same amounts TO &"
per cent of paid up capital stock.
Minimum capitalization
"Anv corporation authorized by its
articles of Incorporation so to DO may
combine the business of commercial
bank and savings bank and trust COM
many. or any or all of them. Inc mini
mum Capitalization required for such
depa rtmental banks is as foloWS: SoIli-
merclal and savings BUSINESS, $5o'oo oo
commercial and trust business, $2Zo, OOu;
commercial. trust and savings business
1925 900.
"The opening of a new department
must first be sanctioned by the super
intendent of banks. Each department
must maintain. lawful money reserve
equal to that which would be required
If the business were conducted as a
separate bank. The cash on deposit
with other banks must remain a sepa-
rate asset for the department making
it and must be so carried on the pahK
books, No department is allowed 10 re-
ceive deposits of any other department
of the same corporation. Each uepart.
ment must maintain separate DOCKS Oh
accounts and be governed as TO oe-
nosits reserves, investments and trans
actions relating to each department by
the provisions of the act specifically
provided for the respective kind OF bus
@To designate the kind of business
being done each bank must display on
it's window signs, its advertising, sta
tionery, etc, the word savings trust
or commercial as the case may De.
Anv bank may conduct a safe deposit
department, but shall not invest more
than one-tenth of it's capital and sur
plus in same. Trust funds must not De
mingled with the other assets OF trust
companies and shall not be carried nor
counted as any part OF the lawful
money reserve.
May Not 5orroW
mo officer or employer shall borrow
any of the deposits or other funds OF
the bank, nor shall any director be-
come an indorser of surety for loans to
others No bank may purchase its own
capital stock or make loans on same
except in case of necessity to prevent
loss.
mo director or officer or employe or
controlling stockholder shall sell or
cause to be sold to his bank any mort
gage on real estate made by any cor
poration or syndicate in which he
is personally or financially interested
without first obtaining consent OF the
superintendent of banks.
"Officers, directors, agents, tellers,
clerks or other employees are not al
lowed to overdraw their accounts or
to receive commissions for securing
loans for others from the bank. A ma
iority of the directors must designate
which other banks are to be used as
depositaries for reserve funds and such
majority must not include any director
who is an officer in the bank so desig-
mated. All real estate loans must be
first liens.
Irrational banks receiving deposits
OF state banks must, If so requested,
submit to an examination by the SUI
nerintendent of banks and pay for the
exnense therefor. Otherwise the SUI
nerintendent must refuse to allow such
deposits. No bank shall advertise or
solicit deposits as a savings bank I'M
less 1t is conducting a savings depart
ment in accordance with this act.
Bank Examiners Ousted
"This new law abolishes the present
board of bank examiners and in it's
place creates a state banking depart
ment, the chief officer of which shall
be known as superintendent of banks.