The Palatka news and advertiser. [volume] (Palatka, Fla.) 1908-19??, 1917-07-27
CHAPTER 7269-(No. 11)


AN act Regulating the Business of Banking
and Trust Companies Organized and doing
business in and Under the Laws of Florida,
and Pres;efibing penalties en-; Tor Violations of
BE 1t Enacted by the Leg stature Of the State
Of Florida:
Section / That it shall be unlawful for any
bank or trust company organized under the
laws Of this State and doing business in this
State to loan, directly or indirectly, an amount
exceeding ten Q0) per cent of the aggregate
capital and surplus and said bank, or trust
company TO any director of said bank or trust
company any officer or employee thereof
individually, to any co-partnership or in
corporatcd company in which such directors
may be directly indirectly interested with
out the consent of the directors OF such bank
ing institution TO be entered in the minutes in
writing. Provided that no loan shall be made
to any director unless the same be first APP
proved by the board OF directors of such bank
trust company; provided, that whenever
the board OF directors shall determine by
majority vote, which vote shall be entered on
the minutes Of the board, that the loans ap-
piled for are entirely satisfactory that the cap
ta of such banking trust company is I'M
impaired and that the conditions of such bank
or trust company are otherwise such as to war
rant the loan and that it be made without
reducing the legal reserve, the limitations pro.
vided by this section may De extended in such
cases to forty per cent OF such capital and sur
plus subject to all the other restrictions pro-
vided by this Act.
Sec 2 That it shall be unlawful for any
bank or trust company organized under the
laws OF this State and doing business in this
State to directly indirectly invest any OF
the funds OF said bank or trust company in
stock of any incorporated company in this
State or elsewhere, except the stock Of the
Federal Reserve Bank of this district and it
shall also be unlawful for any such bank or
trust company to directly or indirectly invest
any Of the funds of such bank trust COM
pany in bonds or securities other than Govern
ment either United States including Federal
Farm Loan bonds or foreign State, County,
Municipal or District bonds, municipal side
walk and paving certificates, or securities and
first mortgage bonds of railroad companies,
and public service corporations which are
solvent and which have not defaulted in pay
ment OF interest for two years. and mortgages
on real estate and county and municipal war.
rants Provided that the provisions of this
section shall not apply to the bona fde pur-
chase or dscounting of commercial paper,
bills and notes.
Sec. g. That it shall be unlawful for any
bank or trust company organized under the
laws of this State and doing business in this
State to directly or indirectly issue certih-
cate Of deposit in exchange for note or
other obligation or security, or in exchange
for anything except actual money deposited
contemporaneouslv with the issuance of such
certificate by said bank or trust company.
Sec. T. That it shall be unlawful for any
bank or trust company organized under the
laws Of this State and doing business in this
State to carry as an asset of said bank OF
trust company any note, obligation or security
or trust company and any omcer of any such
bank or trust company who places among the
assets of said bank or trust company any
note, obligation or security which it does no.
actually own or who represents to the Comp
troller Of the State OF Florida or to a banl
examiner of the State OF Florida that any note
obligation or security carried among the asset
Of said bank or trust company is the property
OF said bank trust company when in fac
such note, obligation security is barred ant
is not owned absolutely by said bank or trus
company. Nor shall any such bank or trus
company carry in their assets in their report
TO the Comptroller, in their reports a
/, published as required by law, any note or OBJ
/. legation to any such bank trust compan
> which is past due for one year and upon whlcI
, no interest has been paid for said period; pro
: vided. that such past due paper may be car
red to the extent Of the reasonable value Q
i any mortgage property or other collateral Sc
curing such note or obligation. and provided
. further, that any such past due note or obi
cation in course of collection by action a
+ law or in equity may be carried at the reason
4 able value Of such note or obligation as sha
= be appraised and fixed by the Board OF Direc
! tors The Comptroller shall have the authorlt
:. to supervise and revise the appraised value