Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-04-11

cd in an aggregate deposit including
like balances for other trusts. the
books of the trust department show
ing the specific interest of each trust
assets held by any such company
shall not be subject to any other liza
bilitics Of said company.
Sec. 76 An administrator. execu-
! receiver or trustee. any court of law
or equity including courts of pro-
| bate and insolvency. officers and
treasurers of towns, cities, counties.
| and savings baks of the state. may
! deposit any. moneys. bonds. stocks
evidences of debt or of ownership in
property or any personal property,
| with said corporation. and any of
said courts may direct any person de-
irving authority therefrom to SO de-
posit the same.
Sec. ~. No trust company shall
loan to any person. firm. business
syndicate. or corporation. an amount
or amounts. at any time outstanding
in excess of ten per cent OF it's total
capital. unimpaired surplus and net
! undivided profits. except on approval
of majority of its entire board of
directors or executive committee. un-
| less secured by collateral which shall
he of value equal to the excess of
said loans above said ten per cent.
and the total amount of loans to any
person, firm, business syndicate or
| twenty-five per cent of said total cap
ital, unimpaired surplus and net UNI
divided profits; provided. that in de-
tersAining said amount every person.
pearing on any loan as endorser,
suarantor or surety. shall be regard
ed as an original promisSor. But the
| discount of bills of exchange drawn
| in good faith against actually exist
| ing values and the discount of COM
| M ~
owned by the person negotiating the
! same, shall not be considered as mon
! ely borrowed. Provided, however, that
any such company having on the first
day of August, in the year nineteen
hundred and nineteen. loans out
standing in excess of the aforesaid
restrictions may permit the same TO
be renewed from time to time as they
| mature. for periods not exceeding six
| months each. if an amount equal to
not less than ten per cent of every
! loan so maturing shall have first been
, paid in in cash. and If an equlvalent
; amount shall be paid i'll at the end
, of every six months on all demand
, loans in such aggregate. In all cases
i where loans in excess of SAID ten per
! cent are granted. without collateral.
/ the records of the company shall
! show who voted in favor thereof, and,
! said records and those required by
/ section seventy eight of this chapter
! shall constitute rrima facle evidence
| of the truth of all facts stated there
| in in prosecutions and suits to en-
| force the several provisions and PEN
| altics enumerated in section seventy
| nine of this chapter.
Sec. IS. No trust company shall
make any loan to its directors. Off
| GERS agents or other persons in its
employ. or on which any such direc-
| tor. officer. agent or employee is an
| endurSer, Euarantor. or surety or to
any firm OF business syndicate of
which such director. officer. agent or
employee is Il member or to any per-
| son or on the endorsement or euaran-
ty of any person who is a partner of.
or member of a business syndicate
with. such director. officer, agent or
| employee. or to any corporation of
which any such director. officer.
agent or employee is director. Off
Ger. superintendent or manager. UNI
| til the proposition to make such loan
| shall have been submitted by the
person desiring the same to the board
| of directors of such company. or to
! the executive committee thereof, If
| any. and accepted and approved by
majority of the entire member
| ship of such board or committee;
provided, however, that no director
of such company who is interested
in said loan in any of the above ca
racities. or who is connected or as
Sociated With the borrower in any of
the above ways. shall he regarded as
, voting in the affirmative on such
| loan For the PURPOSES of this sec,
ton each renewal shall be considered
as an original loan. Such approval.
if the loan is made. shall be spread
! upon the records of the company; and
this record shall. in every instance.
give the names of tho directors au-
thorizins the loans Nothing in this
section or section seventy-seven
shall make it unlawful for trust
company to give any person. firm.
syndicate or corporation line of
credit to an amount not exceeding
twenty five per cent of it's total cap
ital. unimpaired surplus and net un-
divided profits. subject to the sew
eral 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 di-
rector voted on the same, and when
such line of credit is given, the treas
urer or other authorized officer may
pay out loans in accordance there
with without further approval A
line of credit so given shall expire
in six months unless renewed in the
same manner in which it is original
~ given No loan shall hereafter be
made to the treasurer. assistant
treasurer or any employee of the
company upon the security of cor
poration stocks as collateral: provid :
not apply to the renewal of existing
loans.
Sec. TO- Every director. officer.
agent and employee of such com
pany, who authorizes. or assists IN
procuring, granting or causing the
granting of. loan in violation of
section seventy-seven of this chapter,
or pays. or wilfully permits the pay
ment of, any funds of the company
on such loan. and every director of a
company who votes on loan in Nlo-
lation of any of the provisions of
section seventy-eight Of this chapter,
and every director. officer, agent or
employee who wilfully and know
inyly permits or causes the same to
he done. shall be personally rcspon .
sible for the payment Thereon. ana
shall he guilty of misdemeanor;;
All loans granted in violation of
either OF said sections shall be due
and payable Immediately and with
out demand. whether they appear on
their face to be time loans or other
wise When the bank Commissioners
shall find any loans outstanding in
violation of either of said sections,
he shall notify the president or treas
urer of the company to cause the
same to be paid forthwith. And If
or such further time as said bank
commissioner shall determine, he
shall report the facts to the attorney
general. who shall commence SUIT IN
company for the collection of the
same. The attorney general may
employ special counsel to prosecute
said suit, and said company shall pay
all expenses thereof. to he recovered
in an action of debt in the name of
the state.
Sec So Every trust and banking
money on denosit 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 aggregate amount Of it's deposits