The independent-reporter. [volume] (Skowhegan, Me.) 1909-1955, 1911-03-23
Now That SkOwhegan Has Trust
Company the Following Facts May
BE Interesting to Many.

The bank examiner shall at all
times have the same authority over
all trust and banking companies in
corporated under the laws of this
state that he now has over savings
banks or savings institutions, and
shall perform, in reference to such
companies, the same duties as are
required of him in reference to saw
| ings banks. He shall, annually, by
the first day of December, make a
report to the governor and council
of the general conduct and condition
of each of said companies, making
such suggestions as he deems expedi-
ent or the public interest requires.
Such report shall be printed and laid
before the Legislature at its next SEES
sion, and one copy sent to each trust
and banking company in the State.
The provisions of section forty-two,
forty three, forty-four forty-fve, for
ty-siX and forty-seyen of this chapter
shall apply to trust and banking com
panies excepting so much as relates
to the distribution of assets after a
decree of sequestration, as provided
in section forty-fiye. Such distribu-
ton of assets of trust and banking
companies shall be made under order
of the court.
Every trust and banking company
having authority to receive money on
deposit shall at all times have on
hand in the lawful money or national
bank notes of the United States, as
cash reserve, an amount equal to
at least fifteen per cent of the aggre-
gate amount of it's deposits which are
subject to withdrawal upon demand
or within ten days; provided, that in
lieu of such cash reserve, two-thirds
of said fifteen per cent may consist
of balances payable on demand. due
from any national bank or trust
company created under the laws of
this State. or from any trust com
pany located in any of the other New
England states or New York and APP
proved by the bank examiner in writ
ing; and one-third of said fifteen per
cent may consist of the bonds OF the
United States, the District of Column
bia, and any of the New England
states and the states of New York.
Pennsylvania. Maryland Ohio, Indi-
ana, Kentucky. Michigan, Wis
consin, Minnesota, Iowa, Illinois.
Missouri. Kansas and Nebras-
ka, the absolute property of
such corporation. Whenever said re
serve shall be below said percentage
of such deposits, such corporation
shall not further diminish the amount
of its legal reserve by making any
new loans until the required proper
ton between the aggregate amount
of such deposits and its cash reserve
shall be restored. All provisions of
charters in conflict with this section
are void.
Every trust and banking company
shall set apart as a guaranty fund
not less than ten per cent of its net
earnings in each and every year until
such fund, with the accumulated
interest thereon, shall amount to one
fourth of the capital stock of the
company. The said surplus shall be
kept to secure against losses and
contingencies, and whenever the
same becomes impaired ii shall be
reimbursed in the manner provided
for its accumulation.
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 syndicate of which such di-
rector, officer agent or employee is a
member, or to any person or on the
endorsement or guaranty of any per
son who is partner of, or member
of business syndicate with such di-
rector, officer. agent or employee
or to any corporation of which
any such director, officer. agent
or employee is a director. Off
GER, superintendent or manager, until
the proposition to make such loan
shall have been submitted by the per
son 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
jority of the entire membership of
such board or committee; provided
however, that no director of such
company who is interested in said
loan in any of the above capacities
or who is connected or associated
with the borrower In any of the above
ways shall be regarded as voting in
the affirmative on such loan Such
approval, If the loan is made, shall be
spread upon the records of the com
pany; and this record shall in ev-
cry instance, give the names of the
directors authorizing the loans. Moth
teen OF this act shall make il unIaw-
full for a trust company 10 give any
person, firm, syndicate or corporation
a line of credit to an amount not ex-
ceeding twenty-five per cent of its
total capital, unimpaired surplus and
net undivided profits, subject to the
several restrictions as to percentage
Of entire board and right of interested
persons to vote on same contained in
said sections. The records of the
company shall show how every direc-
tor voted on the same, and when such
line of credit is given the treasurer
may pay out loans in accordance
Herewith without further approval.
A line of credit so given shall expire
in six months unless renewed in the
same manner in which it was origin
ally given.
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