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

PROVISIONS OI charters III COHHiSI VAIN
this section are void.
Sec. 81. Every trust and banking
company shall set apart as a surplus
not less than ten per cent OF It's net
earnings in each and every year until
such surplus. together with any un,,
impaired surplus paid in. shall
amount to one-half Of the capital
stock Of the company. The said sur
plus shall be kept to secure against
losses and contingencies, and when.
shall be reimbursed in the manner
provided for it's accumulation.
Sec. 50. Such corporations shall
not make loans or discounts on the
security of the shares of their own
capital stock. nor be the purchasers
necessary to prevent loss upon dept
previously contracted in good faith,
and all stock SO acquired shall. with
in one year after its acquisition. be
disposed OF at public or private sale;
provided. however. that the time for
such disposition may be extended by
the bank commissioner. for good
cause shown upon application to him
in writing.
Sec. So. No trust company not
member of the Federal Reserve Sys-
tenn shall be at any time indebted for
borrowed money to an amount in eX-
cess of its capital, surplus and net
undivided profits. except that by vote
Of a majority of it's entire board oil
directors or executive committee SET
ting forth the reasons therefor l.
may borrow to meet Withdrawals OF
depositors or to prevent loss by sales
Of assets. Copies of all votes author
izing such excess borrowings shail pc
promptly forwarded by the clerk 10
the bank commi ssioncr. Rediscounts:
other than those of drafts or bills OF
exchange secured by bills Of ladirS
of agricultural products and payable
at sight or upon arrival. shall he
considered as borrowed money FOR inc
purpose of this section, The provis-
ions of this section shall not 60 into
effect until January first, nineteen
hundred and twenty -four. Nothing
herein contained shall apply to any
Indebtedness incurred prior TO tne
time when this section shall take CT
feet; or to any necessary renewal
Sec. ST. Every trust and bankinE.
company shall make such report OF
its condition from time to time as inc
bank commissioner shall require. and
shall cause the same to be published
As he may direct Each return shall
he rendered within fifteen days after
the day designated in the blank form
furnished for the purpose. Any treas
urcr who shall wilfully or negligent
ly fail to comply with the provisions
hereof shall be subject to a fine not
exceeding fifty dollars.
Sec So. The bank commissioner
shall at all times have the same
authority over all trust and banking
companies Incorporated under INC
laws of this state that he now has
over savings banks or savings insti-
tutions. and shall perform, in refer
cnce to such companies. the same
duties as are required of hlm IN
reference to savings banks. He shall,
annually. make a report to the COVER
duct and condition of each of said
companies. making such suggestions
as he deems eXpedient or the public
interest requires. Such report shall
be printed and laid before the legls-
lature at its next session ana one
copy sent to each trust and banking
company in the state. The provisions
of sections forty-ninc. tifty-one. fifty
two. fifty-three. tiftY-four. fifty-fve
and fifty-siN of this chapter shall APP
ply to trust and banking companies.
excepting so much as relates to the
distribution of assets after decree
of seuuestration, as provided in see
ton fifty-three. Such distribution of
assets of trust and banking compan-
les shall be made under order of the
court.
Sec SIS Two Of the directors. at
least. Shall once in each year thor
ouchly examine the affairs of the
count. and report under oath to the
hank commissioner the standing of
the company. the situation of its
funds. and all other matters which
the commissioner requires. in the
manner and according to the form
that he prescribes and publish an all
stract thereof. if required. The COM
missioner shall seasonably give notice
of the time and furnish blanks for
said examination and report.
Sec. 81. Any trust company organ
ized under this chapter may adopt all
with the general law: of the state,
for the management of its affairs
The clerk shall file with the bank
commissioners a copy of such bylaws
and all amendments thereto. All by
laws and amendments hereafter
adopted shall be submitted to the
bank commissioner for his approval
as to their legality. and shall not take
effect until such approval is given.
in case the bank commissioner shall
refuse or unrcasonably delay to give
such approval. the directors of the
company may submit such bylaws or
amendments to a justice of the SUI
preme judicial court for his approval
and if he shall approve them as legal,
they shall thereupon take effect.
Sec IS. No trust company now or
hereafter organized shall establish a
branch or agency until it shall have
received warrant SO to do from the
bank commissioner, who shall issue
such warrant only when satisfied that
punllc convenience and advantage
Will be promoted by the establish
ment of such branch or agency, and
that the unimpaired capital stock of
the parent institution is sufficient to
comply with the conditions of section
slXty-nine. reckoning the aggregate
population of its home city or town
and of all cities and IN, h h
1t is authorized by its charter to es-
tabllSh branches or agencies includ-
ing the one under consideration. The
commissioner may require such notice
on an application for a branch or
agency as he deems proper. No trust
company shall be permitted to estab-
llsh branch or agency except in it's
own or an adjoining county. If
granted. the bank commissioner shall
Issue Issue ~ ms ho warrant Gni, in duplicate, one
company. and the other to the secre-
tary of state for record. The COM
pany shall within ten DAYS after
opening said branch or agency. file a
ccrtiflcate thereof, signed by its presi-
dent and treasurer, with the bank
commissioner The right to open a
branch or agency shals lapse in one
year from the date of filing the COM
inissloners warrant with the secre-
tary of state, unless the same shall
nave pecH opened ana business &C
tually begun in good faith. No ap-
pllcation Tor permission to open such
branch or agency shall be acted upon
until the petitioning company shall
have paid to the treasurer Of state
the sum of fifty dollars for the benefit
of the state, to be credited and used
as provided in section sixty eight
Sec. 80. Every trust company So
Letting or receiving savings deposits
which may be withdrawn only on
presentation of the pass book or
other similar form of receipt which
permits successive deposits or with
drawals to be entered thereon: or