■Wvfc^.. 
 
 LAWS OF THE 
 
 STATE OF MONTANA 
 
 Relating to 
 
 Banks and Banking 
 Corporations 
 
 Compiled From 
 
 the Revised Codes of 1 907 and the 
 Session Laws of 1909 by 
 
 Banking Department 
 State Examiner’s Office 
 
LAWS OF THE. 
 
 STATE OF MONTANA 
 
 Relating to 
 
 Banks and Banking 
 Corporations 
 
 Compiled From 
 
 the Revised Codes of 1 907 and the 
 Session Laws of 1909 by 
 
 Banking Department 
 State Examiner’s Office 
 
Digitized by the Internet Archive 
 in 2016 with funding from 
 
 University of Illinois Urbana-Champaign Alternates 
 
 https://archive.org/details/lawsofstateofmon1909mont 
 
INTRODUCTION. 
 
 In compiling the laws of Montana relating to banks and banking 
 corporations, every effort has been made to include all laws relating 
 directly thereto; but no attempt has been made to include the general 
 corporation laws, many of which, in the absence of specific provisions in 
 the banking law, may apply to banking corporations. 
 
 H. H. PIGOTT, 
 
 State Bank Examiner. 
 
 
 fO 
 
 rO 
 
4 
 
 LAWS OF THE STATE OF MONTANA 
 
 LAWS OF MONTANA 
 REFLATING TO BANKS AND BANKING 
 CORPORATIONS. 
 
 ARTICLES OF INCORPORATION. 
 
 Section 3817. The instrument by which a private corporation is 
 formed is called “Articles of Incorporation. ” 
 
 Section 3818. Articles of Incorporation must be prepared, setting 
 forth : 
 
 1. The name of the corporation. 
 
 2. The purpose for which it is formed. 
 
 3. The place where its principal business is to be transacted. 
 
 4. The term for which it is to exist, not exceeding twenty years. 
 (Under Section 3825, as amended by Chapter 106, Session Laws of 1909, 
 a corporation may now be formed for a term of forty years.) 
 
 5. The number of its directors or trustees, which shall not be less 
 than three nor more than thirteen, and the names and residences of 
 those who are appointed for the first three months and until their suc- 
 cessors are elected and qualified. 
 
 6. The amount of its capital stock and the number of shares into 
 which it is divided, and if there be more than one class of stock, created 
 by the articles of incorporation, a description of the different classes 
 with the terms on which the respective classes are created. 
 
 (Subdivision G of Section 3818. Act approved March 7, 1905.) 
 
 7. If there is* a capital stock the amount actually subscribed, and 
 by whom. 
 
 8. If the stock is assessable it must foe so stated. 
 
 Section 3819. The articles of incorporation in the following cases 
 must also state: 
 
 1. In case of assessment life insurance corporations, the articles of 
 incorporation shall state as provided in Sections 4147 and 4148 of this 
 Code, 
 
 2. And in articles of incorporation of institutions of learning, shall 
 state as provided in Section 4223 of this Code. 
 
 3. And in case of building and loan associations the corporation 
 shall he formed as provided in Session Laws 1899. Approved March 3, 
 1899. 
 
 4. In case of religious, benevolent and other like incorporations, the 
 articles of incorporation shall state as provided in Section 4226 of this 
 Code. 
 
 5. Articles of incorporation of any railroad company shall also state 
 the names of the counties, states, territories and countries where the 
 
RELATING TO BANKS AND BANKING CORPORATIONS. 
 
 5 
 
 termini of said road are to be located, and those through which said 
 road shall pass, and the general route of said road, also the amount 
 of capital stock necessary to construct the same. 
 
 6. In the case of the formation of corporations for the construction 
 of ditches and flumes, the articles of incorporation must also state the 
 stream or streams from which the water is to be taken, the point or 
 place on said stream at or near which the water is to be taken out, the 
 line of the ditch or flume, and the use to which the water is to be 
 applied. 
 
 7. In case of tunnel corporations, the articles of incorporation shall 
 also state the place where said tunnel is to be run, the termini, its 
 course, and the minerals or ore designed to be excavated. 
 
 8. In the case of telegraph or telephone companies, the articles of 
 incorporation shall also state the termini of such line or lines, and the 
 counties through which they shall pass. 
 
 Section 3820. The articles of incorporation must be subscribed by 
 three or more persons, and acknowledged by each before some officer 
 authorized to take and certify acknowledgements of conveyances of 
 real property. 
 
 FEES OF SECRETARY OF STATE. 
 
 Section 165. The Secretary of State, for services performed in his 
 office, must charge and collect the following fees: 
 
 I. For each copy of any law, resolution or record, or other docu- 
 ment or paper on file in his office, twenty cents per folio. 
 
 II. For affixing certificate and seal, one dollar. 
 
 III. For issuing each certificate of incorporation and each certifi- 
 cate of increase of capital stock, three dollars. 
 
 IV. For recording and filing each certificate of incorporation and 
 each certificate of increase of capital stock, the following amounts shall 
 be charged: 
 
 Amounts up to $100,000.00, fifty cents per thousand dollars. 
 
 Aditional from $100,000.00 to $250,000.00, forty cents per thousand 
 dollars. 
 
 Additional from $250,000.00 to $500,000.00, thirty cents per thousand 
 dollars. 
 
 Additional from $500,000.00 to $1,000,000.00, twenty cents per thou- 
 sand dollars. 
 
 Aditional over $1,000,000.00, ten cents per thousand dollars. 
 
 Providing, that no fee for filing any articles of incorporation or in- 
 crease of capital stock shall be less than $20.00, except religious soci- 
 eties, churches, and organization for religious purposes, not having a 
 capital stock, and not being organized for the purpose of profit. 
 
 V. For issuing each certificate of decrease of capital stock, three 
 dollars. 
 
 VI. For recording and filing each certificate of decrease of capital 
 stock, five dollars. 
 
G 
 
 LAWS OF THE STATE OF MONTANA 
 
 VII. For issuing each certificate of continuance of corporate exist- 
 ence, three dollars. 
 
 VIII. For recording and filing each certificate of continuance of 
 corporate existence, the following amounts shall he charged: 
 
 Amounts up to $100,000.00, twenty-five cents per thousand dollars. 
 
 Additional from $100,000.00 to $250,000.00, twenty cents per thousand 
 dollars. 
 
 Additional from $250,000.00 to $500,000.00, fifteen cents per thousand 
 dollars. 
 
 Additional from $500,000.00 to $1,000,000.00, ten cents per thousand 
 dollars. 
 
 Additional over $1,000,000.00, five cents per thousand dollars. 
 
 IX. For recording and filing each notice of removal of place of 
 business, each certificate of change of name, or each certificate making 
 capital stock assessable, three dollars. 
 
 X. For filing each certified copy of charter or articles of incorpora- 
 tion of any foreign corporation, the same fee shall be charged as is 
 provided for in Article IV of this Section, for domestic corporations. 
 
 XI. For filing each notice of appointment of agent, five dollars. 
 
 XII. For filing each annual or semi-annual statement of any foreign 
 corporation, five dollars. 
 
 XIII. For receiving and recording each official (bond, two dollars. 
 
 XIV. For each commission or other document, signed by the 
 Governor, and attested by the Secretary of State (Pardon and Military 
 Commissions excepted), five dollars. 
 
 XV. For searching the records and archives of the State, one dollar. 
 
 XVI. For filing each -trade mark, three dollars; and for issuing 
 each certificate of record, one dollar. 
 
 XVII. For recording miscellaneous papers, records, or other docu- 
 ments, for filing, one dollar; for recording, twenty cents per folio. 
 
 XVIII. For filing any other paper not otherwise herein provided 
 for, one dollar for filing and twenty cents per folio for recording. 
 
 “That no member of the Legislative Assembly, or State or county 
 officer, can be charged for any search relative to matters appertaining 
 to the duties of his office; nor must he be charged any fee for a certified 
 copy of any law or resolution passed by the Legislative Assembly 
 relative to his official duties. Fees must be collected in advance, and 
 when collected by the Secretary of State, must be paid to the State 
 Treasurer at the end of each quarter, as provided in the Constitution.'’ 
 
RELATING TO BANKS AND BANKING CORPORATIONS. 
 
 7 
 
 Section 3909. 
 
 BANKS OF DISCOUNT AND DEPOSIT. 
 Incorporation of bank of discount and deposit 
 
 3910. 
 
 Bank not to purchase its own stock; exception. 
 
 3911. 
 
 Powers. 
 
 3912. 
 
 Directors. 
 
 3913. 
 
 Purchase of real estate. 
 
 3914. 
 
 Conveyance of real estate. 
 
 3915. 
 
 Liability of stockholders. 
 
 3916. 
 
 Dividends. 
 
 3917. 
 
 Book containing names of stockholders. 
 
 3918. 
 
 Increase of capital stock. 
 
 3919. 
 
 Forfeiture of franchise. 
 
 3920. 
 
 Limit of liability. 
 
 3921. 
 
 Relating to reserve. 
 
 3922. 
 
 Taxation. 
 
 Section 3909. Any number of persons, not less than three i 
 
 than thirteen, may associate together to establish a bank of discount 
 and deposit, and become incorporated upon the terms and conditions, 
 and subject to the liabilities prescribed in this Title, but the aggregate of 
 the amount of the capital stock of any such corporation shall not be 
 less than twenty thousand dollars. No bank organized under the 
 provisions of this Title shall transact any business until its capital 
 stock has been paid into the treasury of such bank in cash, and until a 
 certificate to that effect under oath of the president and cashier is filed in 
 the office of the State Auditor (now State Examiner), and in the office of 
 the county clerk in the county where such bank is located, nor must any 
 such bank transact any business except as is incidental and necessarily 
 preliminary to its organization until it has been authorized by the State 
 Auditor (now State Examiner) to commence the business of banking, 
 which authorization shall be certificate under his hand and official seal 
 that such bank has complied with the 'provisions of this Title, and is 
 authorized to commence the business of banking. The bank shall cause 
 the certificate and authorization of the State Auditor (now State Exam- 
 iner), to be published in some newspaper published in the town or 
 county where the corporation is located, for at least four insertions 
 immediately after the issuing thereof. 
 
 Section 3910. The name of such bank to be used in all its dealings, 
 must not be that of any other incorporated bank in the State. No 
 private bank must use any crporate name, and no bank must be the 
 holder or purchaser of any portion of its own stock or of the capital 
 stock of any other incorporated company unless such purchase shall be 
 necessary to prevent loss upon a debt previously contracted in good 
 faith, on security, which at the time was deemed adequate to insure 
 the payment of such debt, independent of any lien upon such stock, 
 and stock so purchased must in no case be held by the bank so pur- 
 chasing for a longer period of time than six months, if the same can 
 be sold for what the stock cost or at par. 
 
 Section 3911. Such bank when so organized has power to carry 
 
8 
 
 LAWS GF THE STATE OF MONTANA 
 
 on the business of banking by discounting on banking principles upon 
 such securities as the directors or trustees deemj expedient, by receiving 
 deposits; by buying or selling the bonds or stocks of this State or any 
 other state or territory of the United States; also the bonds of any 
 county, city, town or school district in this State legally authorized 
 to issue such bonds; gold and silver bullion; foreign coins and bills 
 of exchange; by loaning money on real and personal security, and by 
 exercising such incidental powers as may be necessary to carry on 
 such corporation or business. 
 
 Section 3912. The stockholders must elect from their number not to 
 exceed thirteen directors, who may choose from their number a president 
 and vice president, and appoint a cashier, teller, and such other officers 
 and agents as their business may require, and remove such officers at 
 their pleasure, and appoint others. The first directors hold their office 
 until the first Monday in January next after their election or appoint- 
 ment, and until their successors are elected and qualified, and all subse- 
 quent elections must be held on the first Monday in January of each 
 year. The directors are authorized to adopt such by-laws not in conflict 
 with this part as may be necessary. The directors must be citizens of 
 the United States, and at least three-fourths of them must be residents 
 of the State. Every director must own in his own right at least ten 
 shares of the capital stock of the bank, and any director who ceases 
 to be the owner of at least ten shares, or who becomes in any other 
 manner disqualified, thereupon ceases to be a director, and his place 
 muist be filled until the next election by the directors. Each director, 
 when appointed or elected, must take an oath that he will, so far as 
 the duties devolve upon him, diligently and honestly adininister the 
 affairs of such bank, and will not knowingly violate, or willingly permit 
 to be violated, any of the provisions of this Title. 
 
 Section 3913. It is lawful for any such corporation to purchase, 
 hold, or convey real estate, as follows: 
 
 1. Such as is necessary for the proper transaction of business. 
 
 2. Such as is mortgaged to it in good faith by way of security for 
 loans previously made by or moneys due to the corporation. 
 
 3. Such as is conveyed to it in satisfaction of debts previously con- 
 tracted in the course of its business. 
 
 4. Such as it purchases at sales under judgments, decrees, or mort- 
 gages held by the corporation. 
 
 Section 3914. Every conveyance of real estate by such corporation 
 must be authorized by the board of directors, and must be made by 
 an instrument under the hand of the president, or vice president and 
 cashier of said bank, with the seal of the corporation affixed thereto, 
 and duly acknowledged by them. 
 
 Section 3915. The officers and stockholders of every banking cor- 
 poration formed under the provisions of this Title are individually liable 
 for all debts contracted during the term of their being officers or stock- 
 holders of such corporation equally and rateably to the extent of their 
 respective shares of stock in any such corporation, except that when any 
 
RELATING TO RANKS AND BANKING CORPORATIONS. 
 
 9 
 
 stockholder shall sell and transfer his stock sulch liability shall cease 
 at the expiration of six months from and after the date of such sale 
 and transfer. 
 
 Section 3916. No banking corporation shall declare any dividend 
 except from the net earnings after deducting all losses. (See Chapter 
 112, page 37.) 
 
 Section 3917. Every corporation doing a banking business in this 
 State must keep in its office, in a place accessible to the stockholders, 
 depositors, and creditors thereof, and for their use, a book, containing 
 a list of all stockholders in such corporation, and the number of shares 
 of stock held by each; and every such corporation must keep posted 
 in its office, in a conspicuous place, accessible to the public generally, 
 a notice, signed by the president or secretary, showing: 
 
 1. The names of the directors of such corporation. 
 
 2. The number and value of shares of stock held by each director. 
 The entries on such book, and such notice, shall be made and posted 
 within twenty-four hours after any transfer of stock, and shall be con- 
 clusive evidence against each director and stockholder of the number 
 of shares of stock held by each. 
 
 The provisions of this Section shall apply to all banking corporations 
 formed or existing before twelve o’clock, noon, of the day on which this 
 Code takes effect, as well as to those formed after such time. 
 
 Section 3918. It is lawful for any corporation organized under the 
 provisions of this Title, by their by-laws, to provide for an increase of 
 their capital stock, but no such increase shall be valid until the whole 
 amount of such increase is paid in cash, and such payment certified 
 under oath by the president or cashier to the State Auditor (now State 
 Examiner), who shall give his certificate specifying the amount of such 
 increase, with his approval thereof, and that it has been duly paid in as 
 a part of the capital of such bank. 
 
 Section 3919. EVery bank organized under the provisions of this 
 Title which refuses or neglects to comply with the requirements lawfully 
 made upon it for the period of sixty days after demand, shall be deemed 
 to have forfeited its franchise; and any failure on the part of such bank 
 to comply with, or any violation of the provisions of this Title, shall 
 work a forfeiture of its franchise; and in either case the Attorney 
 General, or the County Attorney of the county in which the bank is 
 located, upon demand of the State Auditor (now State Examiner), shall 
 commence an action for the purpose of annulling the existence of said 
 corporation. 
 
 Section 3920. The total liability to any bank incorporated under 
 the provisions of this Title of any person or any company, corporation 
 or firm, for money borrowed, including in the liabilities of a company 
 or firm the liabilities of the several members thereof, shall at no time 
 exceed fixteen per cent of the aggregate amount of the capital stock 
 of such corporation actually paid in and of the permanent surplus fund 
 of such bank; but the discount of bills of exchange drawn in good faith 
 against actually existing values, and the discount of commercial or 
 
10 
 
 LAWS OF THE STATE OF MONTANA 
 
 "business paper actually owned by the person negotiating the same, shall 
 not be considered as money borrowed. 
 
 Section 3921. Each bank organized under the provisions of this Title 
 must at all times have on hand in available funds, an amount equal at 
 least to twenty per centum of all its immediate liabilities; one-half of 
 this amount of available funds must consist of balances due the hank 
 from solvent oanks, one-half of such sum shall be held in reserve as cash 
 in hand. Immediate liabilities shall include all deposits due individuals, 
 firms or corporations or to banks, and all items in the nature of claims 
 payable on demand. In cash on hand shall be counted, specie, legal 
 tender notes, and all bills of solvent banks. Whenever available funds 
 of any bank shall be below twenty per centum of its immediate liabilities, 
 such corporation shall not decrease its fund by making any new loans, 
 discounts otherwise than by discounting or purchasing bills of 
 exchange payable at sight, nor make any dividends of its profits until 
 the required ratio between its immediate liabilities and its available 
 funds has been restored. Whenever the available funds on hand of any 
 bank shall not equal the amount above provided the State Examiner 
 must notify such bank to make good such reserve, and if such bank 
 shall fail to do so within thirty days after such notice, it shall be 
 deemed guilty of a misdemeanor and upon conviction thereof shall be 
 punished by a fine of not less than one hundred dollars nor more than 
 five hundred dollars. 
 
 (See Section 4010.) 
 
 Section 3922. Banks incorporated under the provisions of this Title 
 shall be taxed as national banks are, the stock to pay its share of the 
 revenue, whether held in the State or not. 
 
 TRUST DEPOSIT AND SECURITY, AND SAVINGS BANK CORPORA- 
 TIONS. 
 
 TRUST DEPOSIT AND SECURITY CORPORATIONS. 
 
 Section 3923. 
 
 3924. 
 
 3925. 
 
 3926. 
 
 3927. 
 
 3928. 
 
 3929. 
 
 3930. 
 
 3931. 
 
 Number of corporators. 
 
 Capital stock. Shall begin business, when. 
 
 First meeting. 
 
 Directors. 
 
 Powers. 
 
 What property may be held. 
 
 May call in remainder of stock. 
 
 Investment of capital. 
 
 Money or property payable or returnable on demand, un- 
 less time specified. 
 
 3932. Insurance on mortgaged property. 
 
 3933. Transfer of stock. 
 
 3934. Liability of stockholders. 
 
 3935. Incorporation of trust and deposit companies. 
 
 3936. Articles of agreement. 
 
 3937. Purposes of incorporation. 
 
RELATING TO BANKS AND BANKING CORPORATIONS. 
 
 11 
 
 3938. Directors. 
 
 3939. Dividends. 
 
 3940. Records and reports. 
 
 3941. Stock of trustees, etc. 
 
 3942. Existing corporations may reincorporate under this Act. 
 
 3943. Procedure on reincorporation. 
 
 3944. Taxation of corporate property. 
 
 Section 3923. Any number of persons not less than three may 
 
 associate together to form a corporation for the purpose of carrying 
 on a trust deposit, security and loaning business, and with powers 
 herein conferred. 
 
 Section 3924. The amount of capital stock of any such corporation 
 shall be fixed and limited by the corporators in their articles of incor- 
 poration, and shall not be less than one hundred thousand dollars nor 
 more than five hundred thousand dollars, and shall be divided into 
 
 shares of the par value of one hundred dollars each. When one hundred 
 thousand dollars of stock shall have been subscribed for and the amount 
 paid in cash, such corporation may proceed to business under this 
 
 Chapter. The capital stock of any corporation organized under this 
 
 Chapter may be increased by a vote of the stockholders at any meet- 
 ing called for that purpose to any sum not exceeding five hundred 
 thousand dollars. Any corporation organized under the provisions of 
 this Chapter may qualify and proceed to business within ninety days 
 after filing articles of incorporation, and if it fails to do so, its articles 
 of incorporation shall be null and void. 
 
 Section 3925. When any corporation is formed under this Chapter 
 any two of those associated may call the first meeting of the corpora- 
 tion at such time and place as they may oppoint, by giving notice there- 
 of by publishing the same in some newspaper published at the place 
 where the principal office for the transaction of business is to be located 
 at least five days before the time appointed for such meeting; but no 
 notice is necessary if all the subscribers to the capital stock unite in a 
 call for such meeting in writing. 
 
 Section 3926. The affairs of such corporation must be managed by 
 not less than three directors, to be elected by the stockholders, and to 
 hold their offices for the term of one year, and until their successors 
 shall be duly chosen; said directors must choose one of their number 
 president, and a majority of them convened according to the by-laws 
 constitutes a quorum for the transaction of business; said directors have 
 power to fill any vacancy which may happen in their board for the 
 current year, and they may elect or appoint such other officer as they 
 may deem expedient. 
 
 Section 3927. Any corporation organized under this Chapter has 
 power, in and by its corporate name, to receive money from any person 
 or persons, corporation or company, on deposit, at such rate of interest 
 and for such time as may be agreed upon, for the purpose of loaning 
 and investing the same, and to accept and execute any trust which 
 may be created by instruments in writing, appointing such corporation 
 trustee for any lawful purpose, and to act as such trustee in all matters 
 
12 
 
 LAWS OF THE STATE OF MONTANA 
 
 embraced in such trust; to take and receive from any individual or 
 corporation on deposit for safe keping and storage, gold and silver 
 plate, jewelry, money, stocks, securities and other personal property, 
 and may have power to collect coupons, interest and dividends on said 
 above described securities, and to rent out the use of safes and other 
 reseptacles on their premises upon such terms and for such compensa- 
 tion as may be agreed upon. 
 
 Section 3928. It is lawful for any such corporation to lease, pur- 
 chase, hold and convey all such real or personal property as may be 
 necessary to carry on its authorized business, as well as such real or 
 personal property as it may deem necessary to acquire in the enforce- 
 ment or settlement of any claims or demands arising out of its business 
 transactions; execute and issue in the transaction of its business all 
 necessary receipts, certificates and contracts, which shall be signed by 
 such person or persons 1 as may be designated by the by-laws of such 
 corporation. 
 
 Section 3929. The directors of any such corporation may call in 
 the remainder of the capital stock not paid in when the corporation is 
 formed in such installments and at such times and places as they 
 may deem proper, by giving notice thereof as the by-laws prescribe; 
 and in case any stockholder neglects or refuses payment of any such 
 installment for the space of sixty days after the same becomes due 
 and payable, and after he has been notified thereof, the stock of such 
 delinquent stockholder may be sold by the directors at public auction, 
 at the office of the secretary of the corporation, giving at least thirty 
 days’ notice by publication in some newspaper published at the place 
 where the principal office for the transaction of business of such cor- 
 poration is located. 
 
 Section 3930. The board of directors of any such corporation are 
 hereby authorized to invest the capital of said corporation, and keep 
 the same invested, in good securities; and it is lawful for said corpora- 
 tion to make such investments of its capital, and the funds accumu- 
 lated by its business, including money deposits, or any part thereof, 
 in- notes or bonds and mortgages on unincumbered real estate, within 
 the State of Montana, and also on any and all stocks or bonds of this 
 State, or any other State or Territory of the United States, or the bonds 
 of any county, city, town, or school district, of this State legally author- 
 ized to issue such bonds. 
 
 Section 3931. All money or property deposited with such corpora- 
 tion is payable or returnable to the depositor on demand, unless a par- 
 ticular time has been agreed upon for its payment or return, in which 
 case the terms of the agreement regulate the payment or return. 
 
 Section 3932. Whenever buildings are included in the valuation of 
 any real estate upon which a loan is made by any such corporation, 
 they must be insured by the mortgagor in such company or companies 
 as the directors shall direct, and the policy of insurance shall be duly 
 assigned or the loss made payable, as its interest may appear, to such 
 corporation; and it is lawful for such corporation to renew such policy 
 of insurance in the same, or in any other company or companies, as 
 
RELATING TO BANKS AND BANKING CORPORATIONS. 
 
 13 
 
 they may elect, from year to year, or for a longer or shorter term, in 
 case the mortgagor neglects to do so, and may charge the amount paid 
 to the mortgagor; and all the necessary charges and expenses paid by 
 such corporation for such renewal or renewals must be paid by such 
 mortgagor to such corporation, and it is a lien upon the property so 
 mortgaged, recoverable with interest from the time of payment as part 
 of the moneys secured to be paid by such mortgage. 
 
 Section 3933. The shares of the stock (of the corporation) estab- 
 lished under this Chapter are personal property, and transferable on 
 the books of the corporation in such manner as their by-laws prescribe. 
 
 Section 3934. The stockholders of every corporation formed under 
 this Chapter are individually liable for all debts contracted during the 
 time of their being stockholders of such corporation, equally and ratably 
 to the extent of their respective shares of stock in any such corpora- 
 tion held by them at the time such debts were contracted. 
 
 Section 3935. Any three or more persons who shall have associated 
 themselves by articles of agreement, in writing as provided by law, 
 for one or more of the purposes included under Section 3937 of this 
 Article, may be incorporated under any name or title designating such 
 business. 
 
 Section 3936. The artcles of agreement shall set out: 
 
 1. The corporate name of the proposed corporation which shall not 
 be the name of any other corporation heretofore incorporated in this 
 State for similar purposes, or an imitation of such name. 
 
 2. The name of the city or town and county in which the principal 
 office of the corporation is to be located. 
 
 3. The amount of the capital stock of the corporation authorized by 
 the articles of agreement, the number of shares into which it is divided, 
 the amount of capital stock actually subscribed in good faith at the time 
 of the filing of such article; and said articles shall further state that 
 one-half of the capital stock so subscribed has been actually paid up 
 in lawful money of the United States, and is in the custody of the per- 
 sons named as the first board of directors or managers; Provided, 
 however, that no company organized under this Act shall begin to do 
 business until one hundred thousand dollars in cash has been actually 
 paid in as aforesaid. 
 
 4. The names and places of residence of the several shareholders, 
 and the number of shares subscribed by each. 
 
 5. The number of the board of directors or managers, and the 
 names of those agreed upon for the first year. 
 
 6. The number of years the corporation is to continue, which in 
 no case shall exced fifty years. 
 
 7. The purposes for which the association or company is formed. 
 
 The articles of agreement shall be signed and acknowledged by 
 
 the parties thereto, and shall be filed in the office of the Secretary of 
 State, and a duplicate thereof recorded in the office of the recorder of 
 deeds of the county in which the corporation has its principal place of 
 busines. 
 
 The Secretary of State shall thereupon give a certificate setting 
 
14 
 
 LAWS OF THE STATE OF MONTANA 
 
 forth that such corporation has been duly organized, and the amount 
 of its authorized and subscribed capital; and such certificate shall be 
 taken by all courts of this State as evidence of the corporate existence 
 of such corporation. The persons so acknowledging such articles of 
 association and their associates and successors shall, for the period 
 not to exceed fifty years next succeeding the issuing of such certifi 
 cates by the Secretary of State be a body corporate; and by such name 
 they and their successors shall be entitled to have, possess and enjoy 
 all the rights and privileges conferred by law upon corporations, subject 
 to the provisions of this Article. 
 
 Section 3936. Act approved March 8, 1893. 
 
 Section 3937. Corporations may be created under this Article for 
 any one or more of the following purposes: 
 
 First: To receive moneys in trust and to accumulate the same at 
 such rates of interest as may be obtained or agreed upon, or to allow 
 such interest thereon as may be agreed upon. 
 
 Second: To accept and execute all such trusts, and perform such 
 
 duties of every description, as may be committed to them by any person 
 or persons whatsoever, or by any corporations, or may be committed 
 or transferred to them by order of any of the courts of record of this 
 State or any other State, or of the United States. 
 
 Third: To take and accept by grant, assignment, transfer, devise 
 
 or bequest, and hold any real or personal estate or trust created in 
 accordance with the laws of this State, or any other State, or of the 
 United States, and execute such legal trusts in regard to the same, on 
 such terms as may be declared, established or agreed upon in regard 
 thereto, or to execute or guarantee any bond or bonds required by law, 
 to be given in: any proceeding in law or equity, or equity in any of 
 the courts of this State or any other State, or of the United States. 
 
 Fourth: To act as agent for the investment of money for other 
 
 persons or corporations, and as agents for persons and corporations, 
 for the purpose of issuing, registering, transferring or countersigning 
 the certificates of stock, bonds or other evidence of debt of any cor- 
 poration, association, municipality, state or public authority as may be 
 agreed upon. 
 
 Fifth: To accept from and execute trusts for married women in 
 
 respect to their separate property, whether real or personal, and act as 
 agents for them in the management of such property, and generally to 
 have and exercise such powers as are usually had and exercised by 
 trust companies. 
 
 Sixth: To act as trustee, assignee, or receiver in all cases where 
 
 it shall be lawful for any court of record, officer, corporation or person 
 to appoint a trustee, assignee or receiver, and to be appointed, com- 
 missioned, and act as administrator of any estate, executor of any last 
 will and testament of any deceased person and as guardian of the 
 person and estate of any minor or minors or of the estate of any lunatic, 
 imbecile, spendthrift, habitual drunkard, or other persons disqualified or 
 unable to manage their estate. 
 
 Seventh: To guarantee the fidelity and diligent performance of the 
 
RELATING TO BANKS AND BANKING CORPORATIONS. 
 
 15 
 
 duty of persons holding public or private trust and to certify and guar- 
 antee title to real estate. 
 
 Eighth: To loan money upon real estate, collateral, or personal 
 
 security, and execute and issue its notes, debentures, payable at a future 
 date; and to pledge its mortgages upon real estate and other securities 
 as security therefor. 
 
 Ninth: To buy and sell government, state, county, municipal, and 
 
 other bonds, and all kinds of negotiable, non-negotiable and commercial 
 paper, stocks and other investment securities. 
 
 Tenth: To become endorser and surety, and to secure indorsers and 
 
 sureties for a compensation upon such terms and conditions as shall be 
 agree upon by the trustees of such corporation. 
 
 Eleventh: To accept, receive, and hold money on deposit, payable 
 
 either on time or on demand, with or without interest, as may be agreed 
 upon with the depositors, and to take and receive from any individual 
 or corporation on deposit for safe keeping and storage, gold and silver 
 plate, jewelry, stocks, and securities and other valuable and personal 
 property, and to collect coupons, interest and dividends on said above 
 described sureties, and to rent out the use of safes and other receptacles 
 on their premises upon such terms and for such compensation as may 
 be agreed upon. 
 
 Section 3937. Act approved March 15, 1901. 
 
 Section 3938. The amount of capital stock actually subscribed of 
 any corporation, organized under this Article, shall not be less than 
 one hundred thousand dollars, and the amount of the capital stock 
 authorized by such articles shall not be more than ten millions of dollars. 
 The property and business of the corporation shall be controlled and 
 managed by directors, not less than three or more than twenty-five in 
 number, who shall respectively be stockholders of such corporation, 
 and a majority of whom shall be bona, fide citizens of this State, to 
 be elected by ballot as provided by law by the shareholders of such 
 corporation for one year, if the number of directors of such corporation 
 does not exceed five, at such time and place as shall be directed by 
 the law of such corporation, of which time and place at lease two 
 weeks’ notice shall be published in some newspaper at least once a week 
 in the city or county in which the corporation is located, and if there 
 be no newspaper published in such county, then in any newspaper 
 published in the State, which circulates in the locality where such 
 corporation is located. Such election shall be made by such of the share- 
 holders as shall attend in person, or by proxy in writing . In case the 
 election shall not be made on the day named, the said corporation shall 
 not thereby be dissolved, but an election day mlay be had at any other 
 time, agreeable to the by-laws of said corporation; and the persons 
 so elected shall hold their office until others are elected and qualified. 
 If the number of directors ' of such corporation named in the articles 
 of association shall exceed five in number, they shall, as soon as may 
 be after the organization, divide themselves by ballot into three classes 
 of equal number as near as may be, designated the first, second and third 
 class, of which the first class shall remain in office one year, the second 
 
16 
 
 LAWS OF THE STATE OF MONTANA 
 
 class two years, andJ the third class three years, and at each annual 
 election conducted in the manner hereinbefore designated, directors 
 shall be elected for the term of three years to fill the vacancies created 
 by the retiring class. In case of death or resignation of one or more of 
 said directors, the survivors shall fill the vacancy until the next election. 
 
 Section 3938. Act approved March 8, 1893. 
 
 Section 3939. Such a corporation shall own only such real estate as 
 may be required for the transaction of their business, and such as they 
 may acquire in the enforcement and collection of debts and liabilities 
 due them. Dividends of the profits of the corporation may be declared 
 by the trustees or directors thereof every six months, or oftener, as the 
 directors mtay elect; but no such dividend's shall be made and paid to 
 stockholders while such corporation is in an insolvent condition, nor shall 
 any dividends be declared which would render such corporation insolvent; 
 if the directors of such corporation shall knowingly declare and pay any 
 dividends when the corporation is insolvent, or any dividends the pay- 
 ment of which would 1 render it insolvent, they shall be jointly and 
 severally liable for all debts of the corporation then existing and for all 
 that shall thereafter be contracted while thej' - shall respectively continue 
 in office. (See also Chapter 112, page 37.) 
 
 Section 3940. The trustees of the corporation shall keep correct 
 account of their transactions, and have full statements of the condition 
 of affairs of such corporation made out and exhibited to the stockholders 
 as often as once in each year, at least ten days before the day of election. 
 The books and all records of the proceedings of such corporation shall at 
 all times during their hours of business be open for inspection and exam- 
 ination to all stocknolders, and the Auditor (State Examiner; of this State, 
 or to such person or persons as the Legislative Assembly of said State or 
 the State Auditor (State Examiner) shall designate or appoint as agent 
 for this purpose.* Every association shall make a report of its condition 
 to the State Auditor on the first Monday of each January, April, July 
 and October, and at such other times as said Auditor may call for it, 
 under the oath of its president or treasurer, attested by a majority of the 
 directors, showing in detail its liabilities and assets, and specifying 
 its investments under heads of loans on mortgages, loans on collateral 
 security, loans on personal security, bonds and stocks, deposits in bank 
 and cash on hand. An officer or clerk of such association who shall 
 wilfully make a false oath or affidavit relative to the financial condition 
 of such association shall be deemed guilty of perjury, and upon conviction 
 thereof, shall be punished accordingly. 
 
 (*That part of Section 3940 requiring reports to State Auditor is 
 repealed by Section 3996.) 
 
 Section 3941. No person holding stock in the corporation as executor, 
 administrator, guardian, or trustee, and no person holding such stock 
 or collateral security, shall be personally subject to any liability as 
 stockholder in such corporation; but the person pledging such stock shall 
 be considered as holding the same and shall be liable as a stockholder 
 accordingly. And the estate and funds in the hands of such executors, 
 
RELATING TO BANKS AND BANKING CORPORATIONS. 
 
 17 
 
 administrators, guardians or trustees, shall be liable in like manner 
 and to the same extent as testator or intestate, or the ward of the person 
 interested in such trust fund would have been if he had been living and 
 competent to act and hold the same stock in his own name. Every 
 such executor, administrator, guardian or trustee, shall represent the 
 shares of the stock in his hands at all meetings of the corporation, and 
 may vote accordingly as a shareholder; and every person who shall 
 pledge his stock as aforesaid, may nevertheless represent the same at 
 all meetings, and may vote accordingly as a shareholder. 
 
 Section 3941. Act approved March 8, 1893. 
 
 Section 3942. The rights of any corporation heretofore organized 
 under the Act hereby amended shall not be affected by this Act; but 
 any such company may at any regular meeting of its stockholders, 
 by a resolution passed by a majority thereof, avail itself of the benefits 
 of this Act, and any such company, whether heretofore or hereafter 
 organized for any of the purposes mentioned herein, may increase or 
 diminish its capital stock by complying with the provisions of this law, 
 and may also extend its business to any other purpose authorized by 
 this Act, subject to the provisions and liabilities thereof. 
 
 Section 3942. Act approved March 8, 1893. 
 
 (Section 3943. Whenever any corporation shall desire to call a 
 meeting of its stockholders for the purpose of availing itself of the 
 provisions and privileges of this Article, or for increasing or diminishing 
 its capital stock, or for extending or changing its business, it shall be the 
 duty of the directors to' publish a notice signed by at least a majority of 
 them, in a newspaper in the county at least twenty days, and to deposit 
 a written or printed copy in the postoffice, postage prepaid, addressed 
 to each stockholder at his usual place of residence, at least twenty 
 days previous to the day fixed upon for holding such meeting, specifying 
 the object of the meeting, the time and place, when and where such 
 meeting shall be held, and the amount to which it shall be extended 
 or changed. An affirmative vote of the persons holding two-thirds in 
 value of all the shares of stock shall be necessary to.increase or diminish 
 the amount of its capital stock or to extend or change its business as 
 aforesaid, or to enable the corporation to' avail itself of the provisions 
 of this Article. If at any timfe and place specified in the notice provided 
 for in the preceding section, stockholders shall appear in person or 
 hy proxy in nuimber 'representing not less than two-thirds of all the 
 shares of stock of the corporation they shall organize by choosing one 
 of the directors chairman of the meeting and a suitable person for secre- 
 tary, and proceed to a vote of those present in person or by proxy; and 
 if on canvassing the vote, it shall appear that a sufficient number of 
 votes has been given in favor of increasing or diminishing the amount of 
 capital stock or of extending or changing its business as aforesaid, or 
 availing itself of the privileges and provisions of this Article, a statement 
 of the procedings showing a compliance with the provisions of this Arti- 
 cle — the amount of the capital stock actually paid in, the business to which 
 is extended or changed, the whole amount of assets and liabilities of the 
 corporation and the amount to which the capital stock shall be increased 
 
LAWS OF THE STATE OF MONTANA 
 
 or diminished — shall be made out, signed and verified by the affidavit of 
 the chairman, and be countersigned by the secretary, and such statement 
 shall be acknowledged by the chairman and recorded as provided in Sec- 
 tion 393G, and a certified copy of such recorded instrument shall be filed in 
 the office of the Secretary of State, who shall thereupon issue a certificate 
 that such corporation has complied with the law made and provided 
 for the increase or decrease of capital stock as the case may be 
 and the amount to which such stock is increased or decreased; and 
 such a certificate shall be taken in all courts of the State as evidence 
 of such increase or decrease of stock; and thereupon the capital stock 
 of such corporation shall be increased or diminished to the amount speci- 
 fied in said certificate, and the business extended or changed as afore- 
 said, and the corporation shall be entitled to the privileges and pro- 
 visions and be subject to the liabilities of this Article. 
 
 Section 3943. Act aproved March 8, 1983. 
 
 Section 3944. The property of the corporation organized under this 
 Act shall be assessed for taxes in the same manner as the property of 
 national banks and no other. All Acts and parts of Acts in conflict 
 with this Act be and the same are hereby repealed. 
 
 Section 3944. Act approved March 8, 1893. 
 
 (Section 3944 unconstitutional. See Daly Bank & Trust Co. vs. 
 
 Board Co. Commissioners, 33 Mont. 101.) 
 
 SAVINGS BANK CORPORATIONS. 
 
 Section 3945. 
 
 3946. 
 
 3947. 
 
 3948. 
 
 3949. 
 
 3950. 
 
 3951. 
 
 3952. 
 
 3953. 
 
 3954. 
 
 3955. 
 
 3956. 
 
 3957. 
 
 3958. 
 
 Incorporation. 
 
 Capital Stock. 
 
 Directors and officers, election and qualification of. 
 Majority of directors required to do business. 
 Business. 
 
 Deposits. 
 
 Investment of capital stock. 
 
 Officers not to borrow. 
 
 Liability of officers and stockholders. 
 
 Real estate, what may be held. 
 
 Inspection of books, report. 
 
 Contingent fund. 
 
 Married women and minors, rights of. 
 
 May deposit cash with other banks. 
 
 Section 3945. Any number of persons, not less than three, may as- 
 sociate themselves together under the provisions of this Chapter, and 
 become incorporated as a savings bank, who shall, with their successors, 
 constitute a body politic and corporate, under the name adopted by them 
 in their articles of incorporation, provided no such corporation shall 
 adopt a name previously adopted by any other corporation in this State. 
 
 Section 3946. No corporation must be organized as a savings bank 
 under the provisions of this Chapter with a capital stock of less than one 
 hundred thousand dollars fully paid, in cash, prior to the reception of 
 
RELATING TO BANKS AND BANKING CORPORATIONS. 
 
 19 
 
 deposits by such bank; but such corporation may organize on a basis not 
 exceeding five hundred thousand dollars capital stock, of which at least 
 one hundred thousand dollars must be paid in before deposits are re- 
 ceived, and the balance upon the call of the directors of such corpora- 
 tion within five years from the date of filing articles of incorporation, 
 but not more than twenty-five per cent of such unpaid capital must be 
 called during any one year, and all calls to be miade upon thirty days’ 
 notice. Such capital must be held by the bank as a guarantee to its 
 depositors to make good any loss or depreciation of the funds of the 
 corporation, and must be invested as hereinafter provided for the in- 
 vestment of the funds of such corporation. Each stockholder must re- 
 ceive a certificate of the portion of the capital stock owned by him, 
 which must be transferable on the books of the corporation, and entitles 
 the holder to participate in the profits of the corporation after the de- 
 positors have been paid such rates of interest as may be provided by the 
 by-laws of the corporation, to such extent and in such manner as may 
 be prescribed in the by-laws, and, at the dissolution of said corporation, 
 to receive the proportionate amount of the profits which remains after 
 the payment of the depositors. 
 
 Section 3947. The stockholders must elect from their number not 
 to exceed thirteen directors, who may choose from their number a presi- 
 dent and vice-president and appoint a. cashier and teller and such other 
 officer and agents as their business may require, and remove such 
 officers at their pleasure and appoint others. The first directors hold 
 their office until the first Monday in January next after their election 
 or appointment, and until their successors are elected and qualified and 
 all subsequent elections must be held on the first Monday of January of 
 each year. The directors are authorized to adopt such by-laws not in 
 conflict with this Title as may be necessary. 
 
 The directors must be citizens of the United States, and at least 
 three-fourths of them must be residents of the State. Every director 
 must own in his own right at least ten shares of the capital stock of the 
 bank, and any director who ceases to be the owner of at least ten shares, 
 or who becomes in any other manner disqualified, shall thereupon cease 
 to be a director, and his place must be filled until the next election by the 
 directors. 
 
 Each director, when elected or appointed, must take an oath that 
 he will, so far as the duties devolve upon him, diligently and honestly 
 administer the affairs of such bank, and will not knowingly violate or 
 willingly permit to be violated, any of the provisions of this Chapter.. 
 
 Section 3948. The affirmative vote of at least a majority of the mem- 
 bers of the board of directors is required in making any order for or 
 authorizing any investment of any money or the sale or transfer of any 
 stock or securities, or other real or personal property belonging to the 
 corporation, or the appointment of any officer receiving any salary there- 
 from. 
 
 Section 3949. The business of such corporation is to receive on de- 
 posit such sums of money as may from time to time be offered there- 
 for, for safe keeping or for investment, in accordance with the terms 
 
20 
 
 LAWS OF THE STATE OF MONTANA 
 
 of this chapter. Said corporation must receive on deposit all sums 
 of money which may be offered for the purpose aforesaid, but every such 
 corporation has the right to limit the aggregate amount which any one 
 person or society may deposit to' such sum as it may deem expedient to 
 leceive, and may refuse to receive any deposit, and at any time may 
 return all or any part of any deposit. 
 
 Section 3950. All deposits must be receive by said corporation and 
 returned to the depositors under such regulations as the board of direc- 
 tors from time to time prescribe, which regulations must be posted in 
 some conspicuous place in a room where such corporation transacts its’ 
 business and printed in all pass books delivered to its depositors. 
 
 Section 3951. At least one-half of the capital paid in and one-half 
 of the whole amount deposited, must be invested in bonds or other 
 securities of the United States, or any of the States or Territories, or any 
 county, city, town or school districts of this State, on which interest is 
 regularly paid; or loaned on unincumbered real estate, worth at least 
 double the amount to be secured. The remainder may be invested in 
 said bonds or loaned on the aforesaid securities or on approved personal 
 security; but no loan miust be miade on personal security of less than 
 two responsible persons or collateral security to be approved by the 
 directors, but no loan upon personal security shall be made to any one 
 person or co-partnership, to an amount exceeding ten thousand dollars. 
 
 Section 3952. No president, vice president, director, or other officer 
 or servant of such corporation, shall directly or indirectly borrow any 
 of the funds of such corporation or of its deposits, or in any manner 
 use the same in their private affairs or business, nor shall any director 
 receive any pay, salary or emolument, until after such interest as the 
 directors shall have been determind to allow depositors shall be pro- 
 vided for in accordance with the regulations of the corporation. 
 
 Section 3953. The officers and stockholders of. every banking cor- 
 poration formed under the provisions of this Chapter are individually 
 liable for all debts contracted during the term of their being officers 
 or stockholders of such corporation equally and rateably to the extent 
 of their respective shares of stock in any such corporation, except that 
 when any stockholder sells and transfers stock such liability ceases at 
 the expiration of six months from and after the date of such sale and 
 transfer. 
 
 Section 3954. The real estate which such corporation may lawfully 
 purchase, hold and convey, is: 
 
 1. Such as may be necessary for the proper transaction of its 
 business, not exceeding in value one hundred and fifty thousand dollars. 
 
 2. Such as is mortgaged to it in good faith for moneys loaned in 
 pursuance of the provisions of this Chapter, or given as security for 
 money loaned or advanced. 
 
 3. Such as is purchased at sale on judgment or decree obtained or 
 rendered for money so loaned or advanced. And the said corporation 
 must not purchase, hold or convey real estate in any other case or for 
 any other purpose. And said corporation shall not buy or sel1 au 
 
RELATING TO BANKS AND BANKING CORPORATIONS. 
 
 21 
 
 personal property, except such as may be necessary for the proper 
 transaction of its business, or such as may have been pledged, mortgaged 
 or assigned to it, to secure money loaned or advanced. 
 
 Section 3955. *The oooks of said corporation must at all times during 
 its hour oif business, be open for inspection and examination to the 
 State Auditor, or such other person or persons as the Legislative Assem- 
 bly or the State Auditor designates or appoints as agent for this purpose. 
 Every corporation must make a report of its condition to the State 
 Auditor on the first Mondays of January, April, July and October, and 
 at such other times as said Auditor may call for it, under the oath of its 
 president or treasurer, attested by a majority of the directors, showing 
 in detail its liabilities and assets, and specifying its investments under 
 heads of loans on mortgages, loans on collateral security, loans on 
 personal security, bonds and stock, deposits in bank and cash on hand. 
 Any officer or clerk of such corporation who wilfully makes a false oath 
 or affidavit relative to the financial condition of such corporation, is 
 guilty of perjury, and upon conviction thereof must be punished accord- 
 ingly. 
 
 *(See Section 3996 as to change in dates and manner of reports.) 
 
 Section 3956. Each corporation organized under the provisions of 
 this Chapter must set aside annually at least five per cent of its net 
 profits as a contingent fund to meet extraordinary expenses or losses 
 until such surplus amounts to twenty per cent of the capital stock of 
 such corporation. 
 
 Section 3957. Married women and minors may, in their own right, 
 make and draw deposits and draw dividends, and give valid receipts* 
 therefor. 
 
 Section 3958. Any corporation organized under the provisions of this 
 Chapter has power to deposit any cash on hand in any bank, or with 
 any loan and trust company, within the State, which the board of directors 
 may determine to be solvent, upon such terms as may to such directors 
 be satisfactory, but no greater sum than fifty thousand dollars shall 
 be at any one time deposited in any one bank or corporation. 
 
 REGULATION OF BANKING CORPORATIONS. 
 
 Section 3992. 
 
 3993. 
 
 3994. 
 
 3995. 
 
 3996. 
 
 3997. 
 
 3998. 
 
 3999. 
 
 4000. 
 
 4001. 
 
 4002. 
 
 4003. 
 
 Unlawful to use title unless incorporated. 
 
 Loans to officers or directors of banks prohibited. 
 Penalty for violation of act. 
 
 Duty of county attorney to prosecute. 
 
 Quarterly reports to state examiner. 
 
 Dividends. 
 
 Statement of dividend. 
 iStatements confidential. 
 
 Penalties for failure to make statements. 
 
 False statements. 
 
 Date of first report. 
 
 Dissolution of banking corporation. 
 
22 
 
 LAWS OF THE STATE OF MONTANA 
 
 4004. Impairment of capital. Duties of state examiner. 
 
 4005. Increase of capital stock. 
 
 4006. Reduction of capital stock. 
 
 4007. Transaction of business after insolvency. Penalty. 
 
 4008. Accepting deposits when insolvent. False entries. Pen- 
 
 alty. 
 
 4009. Duties of State Examiner. 
 
 4010. Reserve funds. 
 
 4011. Maximum liabilities. 
 
 4012. Liabilities of stockholders. 
 
 4013. Taxation of banks. 
 
 4014. Penalties. 
 
 4015. This act to affect only domestic corporations. 
 
 Section 3992. It shall be unlawful for any person to use the words 
 “trust”, or “trust company”, “savings”, or “savings bank”, in the title 
 of any business, corporate or otherwise, unless such business be organ- 
 ized and incorporated under the laws of Montana, relating to “Trust 
 Deposit and Security, and Savings Bank Corporations,” or such business 
 is to be conducted by a foreign corporation which has fully complied 
 with the laws of Montana, and is duly qualified and authorized to con- 
 duct business in the State of Montana. Any person or persons violating 
 the provisions of this section, either individually or as an interested party 
 in a co-partnership or corporation, shall be guilty of a misdemeanor, and 
 on conviction thereof shall be fined in a sum not less than three hun- 
 dred nor more than one thousand dollars, or by imprisonment in the 
 County Jail not less than sixty days nor more than one year, or by both 
 such fine and imprisonment. 
 
 Section 3993. That on and after the passage of this Act, it shall be 
 unlawful for any bank, banking institution or trust company, organized 
 and doing business under the Laws of this State, to make a loan to 
 any managing officer of such bank without taking good collateral or other 
 ample and specific security therefor, and when such loan or a loan made 
 to a director of such bank, banking institution or trust company, exceeds 
 in amount ten per cent of its capital stock, it shall not be made until 
 first approved by a majority of the directors of such bank, banking insti- 
 tution or trust company, which said approval shall be entered upon the 
 records of such bank, and the signatures of a majority of the Board of 
 Directors approving same shall be attached thereto, and be and remain 
 a permanent record of such bank. 
 
 Section 3994. Any bank or any managing officer of any bank, violating 
 any of the provisions of this Act, shall be liable to a fine of one thousand 
 dollars, to be recovered in an action at law, for the use of the public 
 school fund of the county where located, and, in addition, such managing 
 officer may be imprisoned in the State Prison for not less than one year, 
 nor more than ten years. 
 
 Section 3995. It is hereby made the duty of the County Attorney, 
 in each and every county in the state, to prosecute to a final determina- 
 tion any violation of this Act, and of the State Bank Examiner to report 
 same to such officer. 
 
RELATING TO BANKS AND BANKING CORPORATIONS. 
 
 23 
 
 Section 3996. Each state bank and banking corporation, trust deposit 
 and security corporation, savings bank corporation, or banking corpora- 
 tion organized under Article I, Chapter 1, Title II, Part IV, of the Civil 
 Code of Montana for the transaction of any banking business, shall 
 make to the State* Examiner not less than fouir reports during each 
 year, all at his call, not less than two calendar months^ to intervene 
 between each call, according to the form which may -be prescribed 
 by him, verified by the oath or affirmation of the president or cashier, 
 and attested by the signature of at least two of the directors thereof, 
 which said statement must contain a full abstract of the general 
 accounts of the bank, and exhibit in detail under appropriate heads, the 
 resources and liability thereof, so as to plainly show all of the resources 
 and liabilities, and the amount and kind thereof; which said statement 
 shall be transmitted to the State Examiner within five days after the 
 receipt of the request or requisition therefor made by him; and in such 
 condensed form as may be required by the State Examiner it must be 
 published once in a newspaper of general circulation in the place where 
 such bank is located, or if there be no newspaper of general circulation 
 published in such place, then in one published nearest thereto within 
 the county, and at the expense of the bank, and such proof of the 
 publication of such statement shall be furnished as may be required 
 by the State Examiner. The State Examiner shall also have 
 power to call for special reports from any particular bank whenever in 
 his judgment the same are necessary in order to have a full and complete 
 knowledge of its condition. 
 
 Section 3997. The directors of each bank may semi-annually, on 
 the first Monday of January and July of each year, declare a dividend 
 of so much of the net profits of the bank as they may deem expedient. 
 (See Chapter 112, page 37.) 
 
 Section 3993. In addition to the statement required by the preceding 
 Section, every such bank shall report to the State Examiner within ten 
 days after declaring any dividend, showing the amount of such dividend, 
 and the amount of net earnings in excess of the dividend. Such state- 
 ment shall be attested as provided for in the attestation of statement 
 by the preceding section. 
 
 Section 3999. The information and showings made by the reports 
 herein contemplated, other than such reports as are required to be 
 published, shall be deemed for the confidential information of the State 
 Bank Examiner's office only, and such information shall not be imparted 
 to any persons who are not officially associated in and with the office 
 of the State Bank Examiner, and such information shall be used by 
 the State Bank Examiner only in the furtherance of his official duties. 
 
 Section 4000. If any such bank neglects to make out or transmit 
 the statements ~and proof of publication thereof required by this Act, 
 it shall be subject to- a penalty of twenty ($20.00) dollars for each day 
 in default after the periods respectively required by this Act that it 
 may delay to make and transmit any such statement. And should any 
 such bank delay for the period of one month beyond the period when 
 
24 
 
 LAWS OF THE STATE OF MONTANA 
 
 the same is required to be made, to make out and transmit the state- 
 ments required by this Act, or wilfully violate any provisions of this 
 Act, the directors shall be personally liable for all debts of such cor- 
 poration contracted previous to and during the period of such neglect. 
 
 Section 4001. Every officer or other person authorized 'by this Act 
 who wilfully and knowingly makes any false statement of facts, state- 
 ment of account or report, and every officer, agent or clerk of any such 
 bank who wilfully and knowingly makes any false entries in the books 
 of such bank, or knowingly subscribes or exhibits false papers with the 
 intent to deceive any person authorized to examine as to the condition 
 of such bank, and every person authorized by the provisions of this 
 Act to make statements or reports who wilfully and knowingly subscribes 
 or makes any false statement or report, shall be deemed guilty of 
 felony, and upon conviction, subject to imprisonment at hard labor 
 in the state prison for a term of not less than on v e nor more than ten 
 years. 
 
 Section 4002. The State Examiner shall call for a report from 
 every such banking institution under the provisions of this Act within 
 sixty days after its passage and approval. 
 
 Section 4003. Any banking association, trust deposit and security 
 corporation, or savings bank, organized under the laws of Montana, 
 miay be dissolved by the district court of the county where its office 
 or principal place of business is situated upon its voluntary application 
 for that purpose. 
 
 The application must be in writing and must set forth that at a 
 meeting of the stockholders and members called for that purpose, the 
 dissolution of the association was resolved upon by a two-thirds vote 
 of all the stock, and that all claims and demands against the association 
 have been satisfied and discharged. 
 
 The application must be signed by a majority of the board of direc- 
 tors or other officers having the management of the affairs of the 
 association, and must be verified in the same manner as a complaint 
 in a civil action. 
 
 A verified copy of the application shall be filed with the State 
 Examiner or such other State officer as is by law authorized to examine 
 such associations within ten days after the filing of such application 
 with the district court. 
 
 If. the court is satisfied that the application is in conformity with 
 this Chapter it must order the application to be filed and the clerk to 
 give not less than thirty nor more than fifty days’ notice of the 
 application by publication in some newspaper published in the county. 
 At any tijpe before the expiration of the time of publication any person 
 may file his objections to the application. 
 
 Before the final hearing and determination of the application the 
 State Examiner shall make a thorough examination of the affairs of such 
 association and file a certified statement of such examination with the 
 clerk of the court of the county where such application is made, which 
 statement shall be a part of the papers in the case. After the time 
 publication has expired the court may, upon five days' notice to the per- 
 
RELATING TO BANKS AND BANKING CORPORATIONS. 
 
 25 
 
 sons who have filed objections, or without further notice if no objec- 
 tions have been filed, proceed to hear and determine the application, 
 and if all the statements made therein are shown to be true the court 
 must declare the association dissolved. No stockholder or officer of such 
 association shall be allowed to withdraw from such association or sur- 
 render or dispose of his shares of stock after the filing or making of such 
 application for dissolution and prior to the final determination of the 
 case. Upon the disolution of such association by the district court, 
 the clerk of said court shall forthwith notify the Secretary of State of 
 such dissolution, by sending a copy of the order of the court and said 
 order and notice shall be filed by the Secretary of State with the original 
 certificate of organization. 
 
 The application notices and proof of publication, objections, if any, 
 and declaration of dissolution, constitute the judgment roll, and from 
 the judgment, an appeal may be taken in the same manner as in other 
 actions. 
 
 1. Section 4004. Impairment of capital. Duties of State Examiner. 
 Whenever the State Examiner, after a full and careful examination of 
 the affairs of any banking corporation, trust deposit and security com- 
 pany or savings bank, organized under the laws of Montana, or any for- 
 eign corporation or branch thereof doing a banking business in Montana, 
 shall find evidence of impairment or insolvency, he shall imemdiately 
 prepare and submit a statement of its condition to the Governor and 
 Attorney General, and if the Governor and Attorney General are satisfied, 
 from such statement that such impairment or insolvency exists, they 
 shall order the State Bank Examiner either (1) to notify the bank’s 
 stockholders to make good such impairment or insolvency in a specified 
 time; or (2), to immediately take charge of such bank or trust company 
 and to furnish an official bond for such sum as they designate. 
 
 2. If so ordered, the State Bank Examiner shall forthwith take 
 possession of the books, records, and assets, and shall be authorized 
 and empowered, and is directed to take such action as, in his judgment, 
 is best for the protection of the depositors and stockholders of such 
 bank. 
 
 While in charge of the State Bank Examiner, the books, records and 
 assets shall not be subject to any levies or attachments. 
 
 3. If the stockholders do not make good the impairing or insol- 
 vency within the time required after notification, the State Bank Exam- 
 iner is authorized to take charge of such bank, its property and assets, 
 upon direction of the Governor and Attorney General. 
 
 4. It appearing necessary to have a receiver appointed for any such 
 bank or banks, the State Examiner shall make full and complete state- 
 ment of account and report to the Governor with respect to the condition 
 of its business and affairs; and thereafter, should it appear to the 
 Governor that application should be made for the appointment of a 
 receiver, he shall thereupon direct the Atorney General to file a petition 
 in the District Court of the County in which the bank is situated, asking 
 for the appointment of a receiver, in the name of the State of Montana, 
 and such petition shall be controlling, and by the court so considered 
 
26 
 
 LAWS OF THE STATE OF MONTANA 
 
 and acted upon, even though stockholders, creditors, or others, may have 
 theretofore filed applications for the appointment of a receiver. When 
 any such petition is filed by the state, no suggestion shall be contained 
 therein as to any particular person to be appointed in such capacity. 
 Receivers of all insolvent banks shall make reports to the State Bank 
 Examiner in the same manner as is required of other banks, at least 
 three times each year, when called upon to do so, or at any time when 
 requested by the State Bank Examiner. Any receiver who refuses to 
 submit the affairs of such bank to an examination by the State Bank 
 Examiner or his assistants, or fails to make report when called for by 
 said officer, or who violates any of the provisions of law relating to exam- 
 ination of banks, shall be subject to removal. 
 
 5. The receiver provided for in this Section shall receive such com- 
 pensation as shall be allowed by the court, but in no event to exceed 
 the fees allowed executors and administrators in administration of 
 estates. 
 
 6. The expense for travelling, hotel bills and time actually spent, 
 incurred by the State Bank Examiner’s office in performance of the 
 duties imposed by this Section, shall be paid in full by the bank to the 
 State Treasurer and by him credited to the State Examiner’s fund. 
 (Chapter 141, Session Laws of 1909.) 
 
 Approved March 11, 1909. 
 
 Section 4005. Any banking association, trust deposit and security 
 corporation or savings bank, organized under the laws of this state, may 
 increase its capital stock, but no increase shall be valid until the whole 
 amount of such increase is paid in in cash, and such payment certified 
 under oath by the president or cashier, to the State Auditor, (now State 
 Examiner, see Section 4009), who shall give his certificate specifying 
 the amount of such increase/ with his approval thereof, and that it has 
 been duly paid in as a part of the capital of such corporation. (See also 
 Section 3918, page 9.) 
 
 Section 4006. Any banking association, trust deposit and security 
 company or savings bank may reduce its capital stock to any sum not 
 below the amount required by law to authorize its formation, by a vote 
 of its stockholders owning two-thirds of its stock, but no reduction 
 shall be made until the amount of the proposed reduction is reported 
 to the State Examiner and his approval thereof obtained in writing, 
 and until notice of such reduction shall be given by publication for at 
 least sixty days in some newspaper of general circulation, printed and 
 published in the county wherein such corporation is doing business, 
 and provided further that no reduction shall be construed as affecting 
 the liability of shareholders for any debts of the association incurred 
 prior to such reduction. 
 
 Section 4007. Whenever any banking corporation, trust deposit and 
 security company or savings banks, organized under the laws of this 
 State, shall be insolvent or in impaired condition in the manner 
 described and set forth in Section 4004 of this Act, such banking cor- 
 poration, trust deposit and security company or savings bank shall 
 not accept or receive on deposit any money, bank bills or notes, United 
 
RELATING TO BANKS AND BANKING CORPORATIONS. 
 
 27 
 
 States Treasury notes or currency, or other notes, bills or drafts 
 circulating as money or currency, or transact any other business in con- 
 nection with its operation, except as trustee for the depositors and 
 parties transacting business with them, and it or they shall keep all 
 such deposits of money, bills or notes, or United States Treasury notes 
 or currency, or other notes, bills or drafts, circulating as money or cur- 
 rency, separate and apart from the general assets of the bank, from 
 and after the date such notice is given to its officers and stockholders, 
 as set forth in Section 4004 of. this Act, and which trust deposits shall be 
 kept separate and apart from the general assets of the bank until such 
 impairment or insolvency has been made good, when such deposits re- 
 ceived in “trust” may be transferred to the general assets of the bank 
 on, and by written consent of the State Examiner; and further pro- 
 vided that, in the event of such impairment or insolvency be not made 
 good or removed within the period stated by the notice required as set 
 forth in Section 4004 of this Act, then any and all such “trust” deposits 
 shall be returned to the depositors making them; and further provided, 
 that any officer, director, cashier, manager, member, party or managing 
 partner thereof who shall knowingly accept or receive, be accessory to 
 or permit or connive at the receiving or accepting of such trust deposits, 
 except in the manner hereinbefore set forth in this Section, shall be 
 deemed guilty of a felony, and upon conviction thereof shall be pun- 
 ished by a fine not exceeding ten thousand dolars, or by imprisonment 
 in the state penitentiary not exceeding five years, or by both fine and 
 imprisonment as aforesaid. 
 
 Section 4008. Any officer, agent or clerk of any banking corporation, 
 trust deposit and security corporation or savings bank, organized under 
 the laws of this State, who wilfully and knowingly receives money, bank 
 bills, notes of the United States or currency, or other notes, bills or 
 drafts circulating as money or currency, except in the manner herein- 
 before set forth in Section 4007 of this Act, or who subscribes or makes 
 any false statement or entries in the books of such association or 
 corporation, or knowingly subscribes or exhibits any false paper with 
 the intent to deceive any person authorized to examine as to the con- 
 dition of such association or corporation, or willfully subscribes or makes 
 false reports, shall be subject to imprisonment at hard labor in the 
 penitentiary for a term not exceeding five years. 
 
 Section 4009. That all duties now required to be performed by, and 
 all responsibilities now imposed upon the State Auditor, under the laws 
 regulating the business of banking, shall hereafter be performed by the 
 State Examiner, under title of State Bank Examiner, and all reports and 
 papers now on file in the State Auditor’s office pertaining to banks 
 are hereby transferred to the custody of the State Examiner. 
 
 Section 4010. Every bank shall keep on hand at all times at least 
 fifteen per cent of its total deposits, of which such portion as the board 
 of directors may determine may be on deposit in banks in cities of the 
 first and second class approved by the State Examiner as reserve 
 banks, except in the case of banks which shall be approved by the State 
 Examiner, as reserve banks, which banks shall at all times keep on 
 
28 
 
 LAWS OF THE STATE OF MONTANA 
 
 hand at least twenty-five per cent of their total deposits in lawful money 
 or on deposit in banks subject to the approval of the State Examiner 
 as reserve banks. 
 
 Section 4011. The total liabilities of any person, co-partnership or 
 corporation, to any bank, for money borrowed, including in the liabilities 
 of a co-partnership, the liabilities of the several members thereof, shall 
 at no time exceed twenty per cent of the amount of capital, surplus of 
 such bank; but the discounting of bills o;f exchange drawn in good faith 
 against actually existing values, and discounting of commercial paper 
 or business paper actually owned by the person negotiating the same 
 and loans made on warehouse receipts and bills of lading representing, 
 actual value, shall not be considered as money borrowed. 
 
 Section 4012. The stockholders of every corporation formed under 
 this Chapter, or which may avail itself of its provisions, shall be severally 
 and individually liable, equally and rateable, and not one for the other, 
 for all contracts, debts and engagements of such corporation to the 
 extent of the amount of their stock therein, at the par value thereof, 
 in addition to the amount invested in such shares. 
 
 Section 4013. All real estate owned by any bank shall be taxed 
 to the bank as other real estate is taxed in the county where the real 
 estate is situated and the residue of its property being shares of stock 
 in said bank shall be reduced to a cash value and assessed and taxed 
 to the individual shareholder in the identical manner that other personal 
 property is assessed in Montana, having in view that the assessment 
 thereof for the taxation shall not be at a greater proportion to face 
 value than is the assessment upon other classes of personal property. 
 
 Section 4014. Whenever under the provisions of this law or of any 
 Taw now in existence relating to banks it is unlawful to do or not to 
 do anything, and the penalty is not prescribed, then such act shall be 
 a misdemeanor and be punished as provided by the law. 
 
 Section 4015. The provisions of this Act shall apply only to banking 
 corporations organized under the laws of this State. 
 
 ANNUAL FEE FOR STATE EXAMINER’S FUND. 
 
 Section 215. That for the purpose of the just distribution of the 
 expenses incurred in pursuance of this title, there is created a fund 
 designated “State Examiner Fund.” For the credit of said fund each 
 county of the State shall pay to the State Treasurer on or before the 
 first day of July of each year, according to its classification as follows r 
 
 Counties of first class $750.00 each 
 
 Counties of second class 350.00 each 
 
 Counties of third class 250.00 each 
 
 Counties of fourth class 200.00 each 
 
 Counties of fifth class 150.00 each 
 
 Counties of sixth class 125.00 each 
 
 Counties of seventh and eighth class 100.00 each 
 
 Any counties hereafter created are to be deemed counties of seventh 
 class until an assessment of such county has been made and the class 
 thereof determined, and for the maintenance of this fund for the years 
 
RELATING TO BANKS AND BANKING CORPORATIONS 
 
 29 
 
 1907 and 1908, if there is no subsequent legislation hereon, each county 
 shall pay on its present classification and thereafter on the classification 
 as made by law. 
 
 Each bank, banking corporation, savings bank, investment and loan 
 company subject to supervision of the State Examiner under the laws 
 of this State shall pay to the State Treasurer for the State Examiner’s 
 Fund, on or before the first day of November of each year, a fee accord- 
 ing to its capitalization at the following rates: 
 
 Capital stock up to $25,000, inclusive, $50.00; capital stock over 
 $25,000 and less than $50,000, fee $75.00; capital stock from $50,000 to 
 $75,000 inclusive, fee $100.00; capital stock over $75,000 and to $100,000 
 inclusive, fee $150.00; capital stock over $100,000 and to $200,000 inclusive, 
 fee $200.00; capital stock over $200,0T)0 and less than $300,000, fee $250.00; 
 capital stock $300,000 and over, fee $300.00. 
 
 Each building and loan association subject to examination by the 
 State Examiner shall pay the State Treasurer on or before the first day 
 of November of each year a fee of one-twentieth of one per cent of its 
 assets as shown by its last annual statement provided that no examina- 
 tion fee shall be less than twenty nor more than fifty dollars for a 
 domestic association, nor more than two hundred dollars for a foreign 
 corporation. 
 
 'Section 21G. Any bank, banking corporation, savings bank, building 
 and loan association, investment and loan company liable for a fee 
 under Section 215 of this Act, that shall fail or neglect to pay the State 
 Treasurer within ten days after the first dav of November of each year 
 the sum due as specified in the section next preceding shall forfeit to 
 the state ten dollars ($10.00) for every day it shall so fail or neglect, 
 to be sued for and recovered in the name of the State by the County 
 Attorney of the county in which the business of such banking association 
 or corporation shall be located, and when so recovered, the amount 
 shall be paid into 1 the treasury of such county for the use of common 
 schools therein. 
 
 EXTENSION OF CORPORATE EXISTENCE. 
 
 Section 3907. Every corporation formed for a period of less than 
 twenty years may at any time prior to the expiration of the term of 
 its corporate existence extend' such term to a period not exceeding twenty 
 years from its formation. And every corporation may extend the period 
 of its existence for an additional term not exceeding twenty years, 
 after the expiration of the period for which it was formed, as follows: 
 Such extension may be made at any meeting of the stockholders or 
 members called by the directors expressly for considering the subject 
 if voted by stockholders representing two-thirds of the capital stock, 
 or by two-thirds of the members, or may be made upon the written 
 assent of that number of stockholders or members. A certificate of 
 the proceedings of the meeting upon such vote, or upon such assent, 
 shall be signed by the chairman and secretary of the meeting and a 
 majority of the directors, and be filed in the office of the County Clerk 
 where the original articles of incorporation were filed, and a certified 
 
30 
 
 LAWS OF THE STATE OF MONTANA 
 
 copy thereof in the office of the Secretary of State, and thereupon the 
 term of the corporation shall be extended for the specified period. 
 
 Section 3908. The provisions of this Title are applicable to every 
 corporation unless suich corporation is excepted from its operation, or 
 unless a special provision is made in relation thereto inconsistent with 
 some provisions in this Title, in which case the .special provision 
 prevails. 
 
 FOREIGN BANKING CORPORATIONS. 
 
 Section 3976. 
 • 3977. 
 
 3978. 
 
 3979. 
 
 3980. 
 
 3981. 
 
 3982. 
 
 3983. 
 
 3984. 
 
 3985. 
 
 398G. 
 
 3987. 
 
 3988., 
 
 3989. 
 
 3990. 
 
 3991. 
 
 Right to transact business. 
 
 Branch bank, how established. 
 
 Certificate of State Auditor. 
 
 Reserve fund. 
 
 Reports to State Examiner. 
 
 Semi-annual reports. 
 
 Officers prohibited from certifying checks without deposits. 
 Failure to make statements. 
 
 Limitation on liabilities. 
 
 Capital surplus or deposits must not be withdrawn from 
 state. 
 
 Duties of State Examiner. 
 
 Certificate may be cancelled for impaired capital. 
 Misstatement of amount of capital prohibited. 
 
 Assets of bank not liable for redemption of circulating 
 notes or bills. 
 
 Penalties for false statements, entries or reports. 
 Penalties for violation of this Act. 
 
 Section 3976. No foreign corporation or joint stock company shall 
 keep any office for the purpose of receiving deposits or discounting notes 
 or bills, or buying and selling exchange, coin, or bullion, or shall do any 
 banking business whatever, within this State, except as hereinafter 
 provided. 
 
 Every corporation or joint stock company not now or hereaftei 
 created, organized and existing under the laws of Montana, shall bo 
 deemed a foreign corporation or joint stock company; provided, always, 
 that this Act shall not apply to any National Banking Association 
 organized under authority of the Congress of the United States. 
 
 Section 3977. Any foreign corporation or joint stock company may 
 establish and maintain a branch bank in any city, town or village in 
 this State, upon complying with the following requirments, and ’obtaining 
 a certificate fromi the State Auditor (State Examiner) as hereinafter 
 provided; that is to say, such foreign corporation or joint stock company 
 shall set aside and pay into the treasury of such branch bank a sum 
 of money at least equal to the amount of capital stock required for 
 a national bank at the place where such branch bank may be located, 
 w’hich payment shall be certified under oath to the State Auditor (State 
 Examiner) by the local manager of such bank. 
 
RELATING TO BANKS AND BANKING CORPORATIONS. 
 
 3i 
 
 Section 3978. The State Auditor (State Examiner) shall, upon com- 
 pliance with the foregoing requirements, issue a certificate to such 
 branch bank, stating that it has complied with the provisions of this 
 Act and is entitled to do a banking business at the place designated 
 in such certificate. A new certificate shall be issued, by the State 
 Auditor (State Etxaminer), on the 1st day of January in each year; 
 provided, that the capital herein required shall be unimpaired, and the 
 other provisions of this Act have been complied with. 
 
 Section 3979. Every such branch bank of any foreign corporation 
 or joint stock company doing a banking business in this State shall, at 
 all times, have on hand in such branch bank, in lawful money of the 
 United States, an amount equal to at least ten per centum (10 per cent) 
 of the aggregate amount of its deposits of all kinds. Whenever the said 
 reserve fund shall be below twenty per centum (20 per cent) of such 
 deposits, such branch bank shall not increase its liabilities by making 
 any new loans or discounts otherwise than by discounting or purchas- 
 ing bills of exchange payable at sight, nor make any dividend of its 
 profits until the required proportion between the aggregate amount of 
 its said deposits and its lawful money of the United States has been 
 restored. The State Examiner may notify such branch bank, whose 
 lawful money reserve shall fall below the amount required to be kept 
 on hand, to mfake good such reserve, and, if such bank shall fail for 
 thirty days thereafter so to make good its reserve of lawful money, the 
 State Auditor (State Examiner) shall thereupon cancel the certificate 
 theretofore issued by him to such branch bank. 
 
 Section 3980. EVery such branch bank of any foreign corporation 
 or joint stock company shall make, to the State Examiner, not less than 
 five reports during each year, all at his call, not less than two calendar 
 months to intervene between each call, according to the form which may 
 be prescribed by him, verified by the oath or affirmation of the resident 
 manager or cashier of such branch bank, which said statement must 
 contain a full abstract of the general accounts of the bank, and exhibit 
 in detail under appropriate heads, the resources and liabilities thereof, 
 so as to plainly show all of the resources and liabilities, and the amount 
 and kind thereof, which said statement shall be transmitted to the 
 State Examiner within five days after the receipt of the request or 
 requisition therefor made by him, and in such condensed form as may 
 be required by the State Examiner. It must be published once in a 
 newspaper of general circulation in the place where such bank is 
 located, or, if there be no newspaper of general circulation published in 
 such place, then in one published nearest thereto within the county and 
 at the expense of the bank, and such proof of the publication of such 
 statement shall be furnished as may be required by the State Examiner. 
 The State Examiner shall also have power to call for special reports 
 from any branch bank, whenever iA' his judgment the same are necessary 
 in order to have a full and complete knowledge of its conditions. 
 
 Section 3981. In addition to the reports required by the preceding 
 section, every such branch bank of any foreign corporation or joint 
 stock company shall report to the State Examiner, within ten days 
 
32 
 
 LAWS OF THE STATE OF MONTANA 
 
 after declaring any dividend, the amount of such dividend and the 
 amount of net earning in excess of such dividend. It shall also make 
 a semi-annual report on the 30tli day of June and the 31st day of 
 December of each year in such form as shall ibe prescribed by the State 
 Examiner showing the amount of the earnings of such branch bank and 
 the amount of the dividends, if any, for the preceding six months. Such 
 report shall be attested by the oath of the resident manager or cashier 
 of such bank. 
 
 Section 3982. It shall be unlawful for any officer, clerk or agent of 
 any branch bank to certify any chdck drawn upon the same, un- 
 less the person or company drawing the check has on deposit with 
 such branch bank, at the time such check is certified, an amount of 
 money equal to the amount certified in such check. If any such officer, 
 clerk or agent shall resort to any device or receive any fictitious obli- 
 gation, direct or collateral, in order to evade the provisions feereof, or 
 if he shall certify checks before the amount thereof shall have been 
 regularly entered to the credit of the dealer upon the books of such 
 branch bank, every such act shall be deemed a violation of this Sec- 
 tion and be subject to the penalty hereinafter prescribed. 
 
 Any check so certified by duly authorized officers shall, however, be 
 a good and valid obligation against such bank. 
 
 Section 3983. If any such bank neglects to make out or transmit 
 the statements and proof of publication thereof, required by this Act, 
 it shall be subject to a penalty of twenty dollars for each day in default 
 after the periods respectively required by this Act that it may delay to 
 make and transmit such statement, and should any such bank delay 
 for a period of one month beyond the period when the same is 
 required to be made to make out and transmit the statements required 
 to -be made by this Act, or willfully violate any provisions of this Act, 
 then it shall be the duty of the State Auditor, (State Examiner), to can- 
 cel any outstanding certificate issued by him. 
 
 iSection 3984. The total liabilities to any such branch bank of any 
 person or of any company, corporation or firm for money borrowed 
 including, in liabilities of a company or firm, the liabilities of the 
 several members thereof shall at no time exceed one-tenth of the amount 
 of the capital actually paid in and in use in such branch bank. But 
 the discount of bills of exchange drawn in good faith against exist- 
 ing values, and the discount of business or commercial paper actually 
 owned by the person negotiating the same, shall not be considered as 
 money borrowed. 
 
 Section 3985. Neither any portion of the capital requered by this Act, 
 nor of the surplus or deposits of such branch bank shall be withdrawn 
 therefrom by said foreign corporation or joint stock company and kept 
 or used in any other branch bank or such corporation or joint stock 
 company, except so far as shall be f&cessary and proper in the ordinary 
 course of the banking business of the local branch bank. 
 
 Section 3986. The State Examiner, as often as he shall deem it 
 proper and necessary, and at least once in each year, shall, in person 
 or by suitable assistant or assistants, make an examiantion of the 
 
RELATING TO BANKS AND BANKING CORPORATIONS. 
 
 33 
 
 affairs of such branch bank, and shall have power to make a thorough 
 investigation into all the affairs of such branch bank and, in do ing so, 
 examine any of the officers, agents or employees thereof on oath, and 
 shall make a full and -detailed report of the condition of such branch 
 bank to be kept in the files of his office. And for the purpose of con- 
 tributing to the expense and maintenance of the State Examiner’s office, 
 every such branch bank shall pay into the state treasury, for the “State 
 Examiner’s Fund,” on or before the first day of November of each year, 
 a fee according to the capitalization of such branch bank, at the follow- 
 ing rate: For a capital stock of from twenty-five to fifty thousand 
 
 dollars, inclusive, a fee of fifty ($50.00) dollars; for a capital stock of 
 over fifty thousand dollars and up to seventy-five thousand dollars, in- 
 clusive, a fee of seventy-five ($75.00) dollars; for a capital stock over 
 seventy-five thousand dollars, up to one hundred thousand dollars or 
 more, a fee of one hundred ($100.00) dollars. 
 
 Section 3987. Whenever it shall appear, from any examination auth- 
 orized by this Act, that the capital of such branch bank has become im- 
 paired, or that any portion thereof has been withdrawn from said 
 branch bank by such foreign corporation or joint stock company, then it 
 shall be the duty of the State Auditor, (State Examiner), to cancel 
 any outstanding certificate issued by him. 
 
 Section 3988. No such branch bank of any foreign corporation or 
 joint stock company, doing a banking business in this State, shall 
 make use of or circulate any letter heads, bill heads, blank notes, blank 
 receipts, blank check books, certificates or circulars wherein a greater 
 amount of capital is claimed than the actual capital of such branch bank, 
 nor shall it otherwise, in any manner, advertise or set forth any such 
 claim. 
 
 Section 3989. No portion of the capital, surplus, deposits or other 
 assets of a branch bank of any foreign corporation or joint stock com- 
 pany, doing a banking business within this State, shall be liable for the 
 redemption of any circulating notes or bills of such foreign corporation 
 or joint stock company, nor for any other liabilities thereof, whatso- 
 ever except for those arising out of the business of such branch bank. 
 
 Section 3990. Every officer, or other person mentioned and author- 
 ized by this Act, who knowingly makes any false statement of facts, 
 statement or report, and every officer, agent or clerk of any such branch 
 bank who willfully and knowingly makes any false entries in the books 
 of such branch bank, or knowingly subscribes or exhibits false papers 
 with the intent to deceive any person authorized to examine as to the 
 condition of such branch bank, and every person authorized by the pro- 
 visions of this Act, to make statements or reports who willfully and 
 knowingly subscribes or makes any false statement or report, shall be 
 deemed guilty of felony, and upon conviction, subject to imprisonment 
 at hard labor in the state prison, for a term of not less than one year, nor 
 more than ten years, for each offense. 
 
 Section 3991. In addition to the penalties and punishment recited 
 in the previous Sections of this Act, every foreign corporation or joint 
 stock company, and every officer, agent or employee thereof, violating 
 
34 
 
 LAWS OF THE STATE OF MONTANA 
 
 any of the provisions of this Act, shall, in addition to the penalties and 
 punishments heretofore provided in this Act, forfeit and pay to the State 
 of Montana the sum of one thousand ($1000.00) dollars for each viola- 
 tion. Such forfeiture may be recovered in an action by the Attorney 
 General, in the name of the State of Montana, brought in the District 
 Court of the county where the branch bank shall be located. 
 
 Approved March 7, 1907. 
 
 CHAPTER 109. 
 
 “An Act to make Foreign Corporations and Joint Stock Companies, 
 Corporations and Joint Stock Companies of this State for the pur- 
 poses of Jurisdiction and to make the Stocks and Shares of such 
 Corporations and Joint Stock Companies Subject to Attachment 
 the same as the Stocks and Shares of Domestic Corporations are 
 now Subject to Attachment under the Laws of this State.” 
 
 Be it enacted by the Legislative Assembly of the State of Montana: 
 
 Section 1. All foriegn corporations or joint stock companies, except 
 foreign insurance companies and corporations otherwise provided for, 
 organized under the laws of any other state or territory of the United 
 States, or, of the United States, or of any foreign government, and doing 
 business in this State, or, which may hereafter engage in business in 
 this State, shall be deemed and taken to be corporations of this State 
 for the purposes of jurisdiction, and shall be subject to the jurisdiction 
 of the courts of this State, and may sue and be sued therein in the mode 
 and manner that is, or, may be by law directed in the case of corpora- 
 tions created or organized under the laws of this State. 
 
 Section 2. The stocks or shares of such foreign corporations and 
 joint stock companies, doing business in this State, shall be subject to 
 attachment in the same manner as now provided by law in the case of 
 domestic corporations. 
 
 Section 3. All Acts and parts of Acts in conflict with this Act are 
 hereby repealed. 
 
 Section 4. This Act shall take effect from and after its passage and 
 approval. 
 
 Approved March 8, 1909. 
 
 CHAPTER 37. 
 
 An Act concerning the payment of deposits in banks in trust. 
 
 Be it enacted by the Legislative Assembly of the State of Montana. 
 
 Section 1. Whenever any deposit shall be made in any bank, savings 
 bank, banking institution or trust company, by any person in trust for 
 another, and no other or further notice of -the existence and terms of 
 a legal and valid trust shall have been given in writing to the bank, in 
 the event of the death of the trustee, the same, or any part thereof, 
 together with the dividends or interest thereon, may be paid to the person 
 for whom said deposit was made. 
 
 Section 2. This Act shall take effect immediately. 
 
 Section 3. All Acts or parts of Acts in conflict with the provisions 
 of this Act are hereby repealed. 
 
 Approved February 27, 1909. 
 
RELATING TO BANKS AND BANKING CORPORATIONS. 
 
 35 
 
 CHAPTER 41. 
 
 An Act relating to banks and banking; providing for a conversion from 
 a State to a National bank ; and surrender of its charter as a 
 State bank and transfer of its property; providing for an increase 
 or decrease in the capital stock of such a bank; providing for a can- 
 version from a National to a State bank. 
 
 Be it enacted by the Legislative Assembly of the State of Montana. 
 
 Section 1. Change from State to National Bank. Any bank may 
 become a corporation for the purpose of carrying on the business of 
 banking within this State pursuant to the provisions of the Act of 
 Congress “to provide a national currency secured by a pledge of United 
 States stocks, and to provide for the circulation and redemption thereof,” 
 approved June 3, 1864, and of Title 52 of the Revised Statutes of the 
 United States, whenever stockholders owning two-thirds of the stock 
 of such bank shall have voted to become such corporation, or have 
 executed a written consent authorizing its directors to make the certifi- 
 cate required therefor by the laws of the United States, or whenever 
 a majority of the directors of such bank, having been authorized in 
 their discretion to make the change, shall, by a vote of such majority, 
 decide to become such corporation; and the cashier of such bank shall 
 publish notice thereof for thirty days in such newspaper as the directors 
 may select, and' send a like printed notice by mail or otherwise to all 
 non-voting or dissenting stockholders, and notify the State Bank 
 Examiner of this State that such bank has decided to become a corpora- 
 tion under the laws of the United States. 
 
 Section 2. When Deemed to Have Surrendered Its Charter. Any 
 such bank which will become a corporation for carrying on the business 
 of banking under the laws of the United States shall cease to be a corpora- 
 tion under the laws of this State, except that for the term of three years 
 thereafter, its corporate existence shall be deemed to continue for the 
 purpose of prosecuting and defending suits by and against it, and of 
 enabling it to close its concerns, and to dispose of and convey its 
 property. The members of the board of directors last in office, when 
 such corporation shall have ^become a corporation under the laws of 
 the United States, shall continue to be the board of directors, of the 
 new corporation, with power to take all necessary measures to carry 
 out and perfect such organization by signing the articles of association 
 and the organization certificate, and adopting such regulations as may 
 be just and proper and not inconsistent with the acts of Congress in 
 relation thereto. Such change from a State to a National bank corpora- 
 tion shall not release any such bank from its obligations to pay and 
 discharge all the liabilities created by law or incurred by it before 
 becoming a National bank corporation, or any tax imposed by the 
 laws of this State up to the date of its becoming such National bank 
 corporation, in proportion to the time which lias elapsed since the next 
 preceding payment thereof. 
 
 Section 3. Reduction of Capital Stock in Such Cases. The director 
 of such new corporation may reduce the capital stock of the bank to 
 its par value by dividing the surplus among its stockholders, or may 
 
36 LAWS OF THE STATE OF MONTANA 
 
 retain such portion oif such surplus as they may deem necessary; and 
 in case of an increase of the capital stock under the provisions of the 
 
 Acts of Congress, may charge the shares of such increased capital stock 
 
 with a like amount, to place the whole of such capital stock on an 
 equality; and may award 1 such new stock, or such proportion or fractional 
 parts thereof, to such persons as they shall determine are entitled 
 thereto, and as are provided in their articles of association and in the 
 acts of Congress; but new directors may be chosen at such time and 
 in the manner provided in the articles of association and in the acts 
 of Congress. 
 
 Section 4. Certificate of Change. When any such bank has decided 
 
 to become a corporation under the laws of the United States, thO 
 
 directors shail immediately thereafter execute and transmit to the 
 Comptroller of the Currency the proper certificate and other instruments 
 for its conversion into a National bank corporation under the laws of 
 the United States. When any such bank shall have become authorized bo 
 commence the business of banking under the laws of the United States, 
 all the property of such bank shall immediately, by act of law, and 
 without any conveyance or transfer, be vested in and become the 
 (property of the National bank corporation, into which such bank shall 
 have been converted. 
 
 Section 5. National Banks May Reorganize as State Banks. Any 
 National bank authorized to dissolve, and which shall have taken the 
 necessary steps to effect dissolution, may reorganize as a State bank 
 upon the consent in writing of the owners of two-thirds of the capital 
 stock of such bank, and with the approval of the State Bank Examiner. 
 The stockholders shall make, execute and acknowledge articles of incor- 
 poration as required by the laws of the State of Montana and shall set 
 forth therein the said written consent of such stockholders. Upon the 
 filing of said articles as provided bv law, and upon the approval of the 
 State Bank Examiner, mch bank shall be deemed to be reorganized 
 under this Act, and thereupon all assets, real and personal, of such 
 dissolved National bank, shall be vested in and become the property 
 of such reorganized State bank, subject to all liabilities of such National 
 bank not liquidated before such reorganization. 
 
 Section 6. All Acts and parts of Acts in conflict herewith are 
 hereby repealed. 
 
 Section 7. This Act shall take effect and be in force from and 
 after its passage and approval. 
 
 Approved March 1, 1909. 
 
 CHAPTER 78. 
 
 An Act fixing the liability of a bank to its depositor for payment of 
 
 forged or raised checks. 
 
 Be it enacted by the Legislative Assembly of the State of Montana: 
 
 Section 1. No bank shall be liable to a depositor for the payment 
 by it of a forged or raised check unless within one year after the return 
 to the depositor of the voucher of such payihent, such depositor shall 
 notify the bank that the check so paid is forged or raised. 
 
RELATING TO BANKS AND BANKING CORPORATIONS. 
 
 37 
 
 Section 2. All Acts and parts of Acts in conflict with the provisions 
 of this Act are hereby releaped. 
 
 Section 3. This Act shall be in full force and effect from and after 
 its passage and approval. 
 
 Approved March 4, 1909. 
 
 CHAPTER 110. 
 
 An Act relating to the payment of deposits in two names. 
 
 Be it enacted by the Legislative Assembly of the State of Montana: 
 
 Section 1. When a deposit has been made, or shall hereafter be 
 made, in any bank, savings bank, banking institution, or trust company, 
 transacting business in this State, in the names of two persons, payable 
 to either, or payable to either or the survivor, such deposit, or any part 
 thereof, or any interest or dividend thereon, may be paid to either of 
 said persons whether the other be living or not; and the receipt or 
 acquittance of the person so paid shall be a valid and sufficient release 
 and discharge to the bank for any payment so made. 
 
 Section 2. This Act shall be in full force and effect from and after 
 the date of its passage and approval. 
 
 Approved March 8, 1909. 
 
 CHAPTER 112. 
 
 An Act relating to banks and banking and providing for the creation of 
 
 a surplus fund. 
 
 Be it enacted by the Legislative Assembly of the State of Montana: 
 
 Section 1. The directors of any banking corporation, trust deposit 
 and security company or savings bank, organized under the laws of 
 Montana, or any foreign corporation or branch thereof doing a banking 
 business in Montana, may declare a divided from the net earnings after 
 deducting all losses, provided that before any such dividend shall be 
 declared, ten per cent of the amount available for such a dividend shall 
 be set aside into a surplus fund, until said surplus fund shall amount 
 to twenty per cent of the capital stock of such corporation. 
 
 Section 2. All Acts and 'parts of Acts in conflict herewith are 
 hereby repealed. 
 
 Section 3. This Act shall take effect and be in force, from and after 
 its passage and approval. 
 
 Approved March 8, 1999. 
 
 PENAL CODE. 
 
 FRAUDULENT INSOLVENCIES BY CORPORATIONS, AND OTHER 
 FRAUDS IN THEIR MANAGEMENT. 
 
 Section 8709. 
 
 8710. 
 
 8711. 
 
 8712. 
 
 8713. 
 
 8714. 
 
 8715. 
 
 Frauds in subscriptions for stock corporations. 
 Fraudulent issue of stock, scrip, etc. 
 
 Frauds in procuring organization, etc., of corporations. 
 Unauthorized use of names in prospectus, etc. 
 Misconduct of directors of stock corporations. 
 Savings-bank officer overdrawing his account. 
 Receiving deposit in insolvent banks. 
 
LAWS OF THE STATE OF MONTANA 
 
 38 
 
 8717. Frauds in keeping accounts in books of corporations. 
 
 8718. Officer of corporation publishing false reports. 
 
 8719. Officer of corporation to permit an inspection. 
 
 8722. Director of a corporation presumed to have knowledge of 
 
 its affairs. 
 
 8723. Director present at meeting, when presumed to have 
 
 assented to proceedings. 
 
 8724. Director absent from meeting when presumed to have 
 
 assented to proceedings. 
 
 8725. Foreign corporations. 
 
 8726. Same. 
 
 8727. Agent of foreign corporation. 
 
 8728. Corporation not complying with laws. 
 
 8729. Agent of corporation. 
 
 8730. “Director” defined. 
 
 Section 8709. Every person who signs the name of a fictitious person 
 to any subscription for, or an agreement to take, stock in any corpora- 
 tion, existing or proposed, and every person who signs to any subscrip- 
 tion or agreement the name of any person, knowing that such person 
 has not means or does not intend in good faith to comply with all 
 the terms thereof, or under any understanding or agreement that the 
 terms of such subscription or agreement are not to be complied with or 
 enforced, is guilty of a misdemeanor. 
 
 Section 8710. Every officer, agent or other person in the service of 
 any joint stock company or corporation formed or existing under the 
 laws of this State, or of the United States, or of any State or Territory 
 thereof, or of any foreign government or country, who wilfully and 
 knowingly, with intent to defraud, either — 
 
 1. Sells, pledges or issues, or causes to be sold, pledged or issued, 
 •signs or executes, or causes to be signed or executed with intent to 
 sell, pledge or issue, or cause to be sold, pledged or issued, any 
 certificate or instrument purporting to be a certificate or evidence of 
 the ownership of any share or shares of such company or corporation, 
 ■or any bond or evidence of debt, or writing purporting to be a bond 
 or evidence of debt of such company or corporation, without being 
 first thereto duly authorized by such company or corporation, or contrary 
 to the charter or laws under which said company or corporation exists, 
 or in excess of the power of such company or corporation, or of the 
 limit imposed by law or otherwise, upon its power to create or issue 
 stock or evidence of debt; or, 
 
 2. Re-issues, sells, pledges or disposes of, or causes to be re-issued, 
 sold, pledged or disposed of, any surrendered or canceled certificates, or 
 other evidence of the transfer, or ownership of any such share or shares, 
 is punishable by imprisonment in the State Prison not exceeding seven 
 years, or by a fine not exceeding three thousand dollars, or both. 
 
 Section 8711. Every officer, agent or clerk of any corporation, or of 
 any persons proposing to organize a corporation, or to increase the 
 capital stock of any corporation who knowingly exhibits any false, 
 forged or altered book, paper, voucher, security or other instrument of 
 
RELATING TO BANKS AND BANKING CORPORATIONS. 
 
 39 
 
 evidence, to any public officer or board authorized by law to examine 
 the organization of such corporation, or to investigate its affairs, or 
 to allow an increase of its capital, with intent to deceive such officer 
 or board in respect thereto, is punishable by imprisonment in the State 
 Prison not less than three nor more than ten years. 
 
 Section 8712. Every person who without being authorized so to do, 
 subscribes the name of another to, or inserts the name of another in 
 any prospectus, circular or other advertisement or announcement of 
 any corporation or joint stock association, existing or intended to be 
 formed, with intent to permit the same to be published and thereby 
 to lead persons to believe that the person whose name is so subscribed 
 is an officer, agent, member or promoter of such corporation or associa- 
 tion is guilty of a misdemeanor. 
 
 Section 8713. Every director of any stock corporation who 'concurs 
 in any vote or act of the directors of such corporation or any of them, 
 by which it is intended, either — 
 
 1. To make any dividend, except from the surplus profits arising 
 from the business of the corporation, and in the cases and manner 
 allowed by law; or, 
 
 2. To divide, withdraw or in any manner, except as provided by law, 
 pay to the stockholders, or any of them, any part of the capital stock 
 of the corportion; or, 
 
 3. To discount or receive any evidence of debt in payment of any 
 installment actually called in and required to be paid, or with the 
 intent to provide the means of making such payments; or, 
 
 4. To receive or discount any note or other evidence of debt, with 
 the intent to enable any stockholder to withdraw any part of the money 
 paid in by him, or his stock; or, 
 
 5. To receive from any other stock corporation, in exchange for 
 the shares, notes, bonds or other evidences of debt of their own corpora- 
 tion shares of the capital stock of such other corporation, or notes, 
 bonds, or other evidences of debt issued by such corporation, is guilty of 
 a misdemeanor. 
 
 Section 8714. Every officer, teller or clerk of any savings bank, 
 who knowingly overdraws his account with such bank, and thereby 
 wrongfully obtains* the money, note or funds of such bank, is guilty 
 of a misdemeanor. 
 
 Section 8715. No bank, banking house, exchange broker, individual 
 banker, deposit office or firm, company or corporation or party engaged 
 in the banking, broker, exchange, loan or deposit business shall accept 
 or receive on deposit, or for safe keeping, or to loan, with or without 
 interest, from any person, any money or any bills, notes, or any paper 
 circulating as money, or any notes, drafts, bills of exchange, bank checks 
 or other commercial paper, for safe keeping or for collection, when such 
 bank, banking house, exchange broker, individual banker, deposit office, 
 firm, company or corporation, or party, is unsafe and insolvent. 
 
 If any such bank, banking house, exchange broker, individual banker, 
 deposit office or firm, company, corporation or party, shall receive or 
 accept on deposit, or for safe keeping or to loan, with or without 
 
40 
 
 LAWS OF THE STATE OF MONTANA 
 
 interest, from any persons, any money or any 'bills of exchange, bank 
 checks or other commercial paper, drafts, notes or other paper circulating 
 as money, or any notes, for safe keeping or for collection, when unsafe 
 or insolvent, any officer, director, cashier, manager, principal, agent, 
 clerk, party or managing party, thereof, knowing or having reason to 
 know of any such unsafeness or insolvency, who shall knowingly receive 
 or accept, be accessory to, or permit or connive at, or receive or accept 
 on deposit therein or thereby, any such deposits, money or property as 
 aforesaid, shall be guilty of a felony and shall be punished by imprison- 
 ment in the State penitentiary not less than one year or more than 
 twenty years. 
 
 Section 871G. But the passage and approval of this Act and the 
 amendment as herein provided shall not constitute a bar to the prose- 
 cution of an act or offense heretofore committed in violation of said 
 Section 98G, but said act or offense, and the person committing the 
 same, may be prosecuted, indicted, or informed against, and punished, 
 the same as if this act had not been passed. 
 
 Section 8717. Every officer, director or agent of any corporation or 
 joint stock association, who knowingly receives or possesses himself of 
 any property of such corporation or association, otherwise than in pay- 
 ment of a just demand, and who, with intent to defraud, omits to make, 
 or to cause or to direct to be made, a full and true entry thereof in the 
 books or accounts of such corporation or association, and every director, 
 officer, agent or member of any corporation or joint stock association 
 who, with intent to defraud, destroys, alters, mutilates or falsifies any of 
 the books, papers, writings or securities belonging to such corporation 
 or association, or makes, or concurs in making any false entries, or 
 omits, or concurs in omitting to make any material entry in any book 
 of accounts or other record or document kept by such corporation or 
 association, is punishable by imprisonment in the State Prison not 
 less than three, nor more than ten years, or by imprisonment in the' 
 county jail not exceeding one year, or by a fine not exceeding five 
 hundred dollars, or by both imprisonment and fine. 
 
 Section 8718. Every director, officer, or agent of any corporation or 
 joint stock association, who knowingly concurs in making, publishing 
 or posting any written report, exhibit, or statement of its affairs or 
 pecuniary condition, or book or notice containing any material statement 
 which is false, or refuses to make any book or post any notice required 
 by law, in the manner required by law, other than such as are mentioned 
 in this Chapter, is guilty of a felony. 
 
 Section 8719. Every officer or agent of any corporation, having or 
 keeping an office within this State, who has in his custody or control 
 any book, paper, or document of such corporation, and who refuses to 
 give to a stockholder or member of such corporation, lawfully demanding, 
 during office hours, to inspect or take a copy of the same, or of any part 
 thereof, a reasonable opportunity so to do, is guilty of a misdemeanor. 
 
 Section 8722. Every’ director of a corporation or joint stock associa- 
 tion is deemed to possess such a knowledge of the affairs of his cor- 
 
RELATING TO BANKS AND BANKING CORPORATIONS. 
 
 41 
 
 poration as to enable him to determine whether any act, proceeding 
 or omission of its directors is a violation of this Chapter. 
 
 Section 8723. Every director of a corporation or joint stock asso- 
 ciation who is present at a meeting of the directors at which any act, 
 proceeding or omission of such directors, in violation of this Chapter 
 occurs, is deemed to have concurred therein unless he at the time causes 
 or in writing requires his dissent therefrom to be entered in the minutes 
 of the directors. 
 
 Section 8724. Eivery director of a corporation or joint stock asso- 
 ciation, although not present at a meeting of the directors at which 
 any act, proceeding or omission of such directors in violation of this 
 Chapter occurs, is deemed to have concurred therein if the facts consti- 
 tuting such violation appear on the records or proceedings of the board 
 of directors and he remains a director of the same company for six 
 months thereafter and does not within that time cause or in writing 
 require his dissent from such illegality to be entered in the minutes 
 of the directors. 
 
 Section 8725. It is no defense to a prosecution for a violation of 
 the provisions of this Chapter that the corporation was one created 
 by the laws of another State, government or country, if it was one 
 carrying on businessi or keeping an office therefor within this State. 
 
 Section 8726. Every foreign corporation doing business in this 
 State contrary to the provisions of Title XII, Part IV, Division 1, of the 
 Civil Code, is guilty of a misdemeanor. 
 
 Section 8727. Every person who acts as agent or in any other 
 capacity for a foreign corporation who has not complied with the 
 provisions of law relating to foreign corporations, is guilty of a mis^ 
 demeanor. 
 
 Section 8728. Every corporation which fails to comply with the 
 provisions of law relating to corporations, as prescribed in the Civil 
 Code, is guilty of a misdemeanor. 
 
 Section 8729. Every person who acts as an officer, agent or in 
 any other capacity for a corporation which has not complied with the 
 provisions of law as prescribed in the Civil Code, is guilty of a mis- 
 demeanor. 
 
 Section 8730. The term “director," as used in this Chapter, embraces 
 any of the persons having by law the direction or management of the 
 affairs of a corporation, by whatever name such persons are described 
 in its charter or known by law. 
 
42 
 
 LAWS OF THE STATE OF MONTANA 
 
 CONSTITUTIONAL PROVISIONS, ARTICLE XV. 
 
 CORPORATIONS OTHER THAN MUNICIPAL. 
 
 Section 4. The Legislative Assembly shall provide by law that in 
 all elections for directors or trustees of incorporated companies, every 
 stockholder shall have the right to vote in person or by proxy the 
 number of shares of stock owned by him for as many persons as there 
 are directors or trustees to be elected or to cumulate said shares, and 
 give one candidate as many votes as the number of directors multiplied 
 by the number of his shares of stock shall equal, or to distribute them, 
 on the same principle, among as many candidates as he shall think 
 fit, and such directors or trustees shall not be elected in any other 
 manner. 
 
 Section 10. No corporation shall issue stocks or bonds, except for 
 labor done, services performed, or money and property actualy received; 
 and all fictitious increase of stock or indebtedness shall be void. The 
 stock of corporations shall not be increased except in pursuance of 
 general law, nor without the consent of the persons holding a majority 
 of the stock first obtained at a meeting held after at least thirty days’ 
 notice given in pursuance of law. 
 
INDEX 
 
 Articles of Incorporation. 
 
 banks of discount and deposit 
 
 contents : 381 8 
 
 defined 
 
 fees for filing 
 
 must be acknowledged 
 
 trust companies 
 
 Attorney General. 
 
 duties regarding insolvent banks 
 
 duties regarding forfeiture of franchise 
 
 Banks of Discount and Deposit. 
 
 See also Penal Code and Constitutional Provisions. 
 
 articles of incorporation 
 
 articles of incorporation defined 
 
 articles of incorporation contents 
 
 attorney general, duties regarding forfeiture of franchise 
 
 capital stock, amount necessary to be paid in 
 
 capital stock, business not to be transacted until paid in 
 
 Sec. Page. 
 
 capital stock, increase of 
 
 capital stock, impairment of 
 
 capital stock, reduction of 
 
 certificate of authority to commence business 
 
 conversion from national to state bank, see national 
 banks. 
 
 conversion from state to national bank, see state banks. 
 
 county attorney, 'must prosecute when 
 
 deposits in two names payable to whom Chapter 110 
 
 deposits, not to be received when, penalty , 
 
 deposits, to be kept separate when 
 
 deposits, to be returned when 
 
 directors, liability upon failure to make report 
 
 directors, election of 
 
 directors, loans to unlawful when, penalty 3993 
 
 directors, oath of office 
 
 directors, qualification of . . 
 
 directors, term of office 
 
 disolution of, voluntary • 
 
 dividends, must be from net earnings 
 
 dividends, must be reported to state examiner 
 
 dividends, shall not be made when 
 
 dividends, surplus fund must be created from 
 
 Chapter 112 
 
 extension of corporate existence 
 
 false entries, penalty for making 
 
 fees, for state examiner’s fund 
 
 fees, penalty for failure to pay 
 
 forfeiture of franchise 
 
 forged or raised checks, when not liable for paving 
 
 Chapter 78 
 
 impairment of capital, duties of state examiner 
 
 indebtedness and liability of any person, firm or corpora- j 
 
 tion, limited to what I 
 
 insolvency or impaired capital, see insolvent banks. 
 
 liabilities, immediate, what included 
 
 list of stockholders and officers to be kept where 
 
 loans, limitation of to association or individual ! 
 
 loans, not to be made when 
 
 loans, to managing officers and directors must be \ 
 
 approved when, penalty for violation i 
 
 loans, to managing officers and directors unlawful wiien, ( 
 penalty for violation 1 
 
 3909 
 
 7 
 
 3819 
 
 4 
 
 3817 
 
 4 
 
 165 
 
 5 
 
 3820 
 
 5 
 
 3936 
 
 13 
 
 4004 
 
 25 
 
 3919 
 
 9 
 
 3909 
 
 7 
 
 3817 
 
 4 
 
 3818 
 
 4 
 
 3919 
 
 9 
 
 3909 
 
 7 
 
 3909 
 
 7 
 
 3918 
 
 9 
 
 10 
 
 42 
 
 4005 
 
 26 
 
 4004 
 
 25 
 
 4006 
 
 26 
 
 3909 
 
 7 
 
 3995 
 
 22 
 
 1 
 
 37 
 
 4007 
 
 26 
 
 4008 
 
 27 
 
 4007 
 
 26 
 
 4007 
 
 26 
 
 4000 
 
 23 
 
 3912 
 
 8 
 
 3994 
 
 22 
 
 3912 
 
 ^8 
 
 3912 
 
 8 
 
 3912 
 
 8 
 
 4003 
 
 24 
 
 3916 
 
 9 
 
 3998 
 
 23 
 
 3921 
 
 10 
 
 1 
 
 37 
 
 3907 
 
 29 
 
 4001 
 
 24 
 
 215 
 
 28 
 
 216 
 
 29 
 
 3919 
 
 9 
 
 1 
 
 36 
 
 4004 
 
 25 
 
 3920 
 
 9 
 
 4011 
 
 28 
 
 3921 
 
 10 
 
 3917 
 
 9 
 
 3920 
 
 9 
 
 4011 
 
 28 
 
 3921 
 
 10 
 
 3993 
 
 22 
 
 3994 
 
 09 
 
 3993 
 
 22 
 
 3994 
 
 22 
 
44 
 
 TNDEX. 
 
 may be dissolved how 
 
 misdemeanor, to violate any law -relating- to banks, when 
 
 penalty is not prescribed 
 
 must not purchase or hold stock of other corporations 
 
 except when 
 
 must not purchase or hold its own stock, except when 
 
 name of 
 
 name must not be that of any other incorporated bank 
 
 officers, how chosen 
 
 officers, liability of 
 
 powers 
 
 real estate, conveyance of, how authorized and made.... 
 
 real estate, purchase and conveyance of 
 
 real estate, shall be taxed how 
 
 reports, penalty for failure to make 
 
 reports, penalty for making- false reports 
 
 reports, to be made after declaring dividends . . 
 
 reports to state examiner confidential 
 
 report to state examiner when 
 
 reports io be published when 
 
 reports verified how 
 
 reserve, amount required 
 
 (Section 3921, page 10, also relates to reser 
 Section 4010 governs.) 
 
 reserve banks, how approved 
 
 stockholders, liability of 
 
 taxes, property shall be taxed how 
 
 Constitutional Provisions. 
 
 stockholder’s vote, legislature to regulate 
 
 stock and bonds shall not be issued except for 
 
 what purposes 
 
 stock, increased how 
 
 Sec. 
 
 4003 
 
 4014 
 
 3910 
 
 3910 
 
 3910 
 
 3910 
 
 3912 
 3915 
 
 3911 
 3914 
 
 3913 
 
 Page. 
 
 24 
 
 28 
 
 ' 
 
 4013 
 
 28 
 
 
 4000 
 
 23 
 
 
 4001 
 
 24 
 
 
 3998 
 
 23 
 
 
 ‘3999 
 
 23 
 
 
 3996 
 
 23 
 
 
 3996 
 
 23 
 
 
 3996 
 
 23 
 
 
 4010 
 
 27 
 
 but 
 
 
 4010 
 
 27 
 
 
 3995 
 
 22 
 
 i 
 
 | 3915 
 
 8 
 
 
 1 401.2 
 
 28 
 
 112 
 
 1 
 
 37 
 
 i 
 
 i 3922 
 
 10 
 
 
 | 4013 
 
 28 
 
 ! tO * 
 
 
 
 - 37 
 
 1 
 
 34 
 
 Art. Sec. 
 
 Page. 
 
 15 
 
 4 
 
 42 
 
 15 
 
 10 
 
 42 
 
 15 
 
 10 
 
 42 
 
 Corporations. 
 
 See also Banks of Discount and Deposit. 
 See also Foreign Banking Corporations. 
 
 See also Savings Banks. 
 
 See also Trust Companies. 
 
 See also Penal Code Provisions. 
 
 articles of incorporation, contents of . 
 
 articles of incorporation, defined 
 
 articles of incorporation, execution of 
 
 Sec. Page. 
 3818 4 
 
 3817 4 
 
 3820 5 
 
 County Attorney. 
 
 duty to prosecute lor violations of act 
 
 state examiner to report violations to 
 
 Deposits. 
 
 in two names payable to whom... Chapter 110 
 
 not to be received when 
 
 to be kept separate when 
 
 to be returned when 
 
 trust funds deposited without notice of trust payable 
 
 to whom in case of death Chapter 37 
 
 Dividends. 
 
 may be declared when Chapter 112 
 
 must be reported to state examiner 
 
 Extension of Corporate Existence 
 
 Foreign Banking- Corporations. 
 
 attachment of stock of, manner Chapter 109 
 
 branch banks, certificate of state auditor 
 
 branch banks, how established 
 
 branch banks, reports, publication of 
 
 branch banks, reports to state examiner 
 
 branch banks, report upon declaring dividend . . 
 
 capital must not be withdrawn 
 
 capital stock, misstatement of amount in notice 
 certifying check without deposit, prohibited .... 
 
 3995 
 
 3995 
 
 1 
 
 4007 
 
 4007 
 
 4007 
 
 1 
 
 1 
 
 3998 
 
 3907 
 
 1 
 
 3978 
 
 3977 
 
 3980 
 
 3980 
 
 3981 
 3985 
 3988 
 
 3982 
 
 22 
 
 22 
 
 37 
 
 26 
 
 26 
 
 26 
 
 34 
 
 37 
 
 23 
 
 29 
 
 34 
 
 31 
 
 30 
 
 31 
 31 
 
 31 
 
 32 
 
 33 
 32 
 
INDEX. 
 
 45 
 
 circulating notes or bills, assets of bank not liable for 
 deposits not to be withdrawn or kept or used in any 
 
 other branch bank 
 
 doing business in state to be deemed, for jurisdictional 
 
 purposes, corporations of the state Chapter 109 
 
 examination, duty of state examiner 
 
 fee for state examiner’s fund 
 
 impairment of capital, cancellation of authority 
 
 impairment of capital, duties of state examiner 
 
 loans, limit on amount 
 
 officers, agents or employees violating act, additional 
 
 penalties 
 
 officers making false entries, statements or reports, 
 
 penalty 
 
 officers liable for certifying any fictitious obligation 
 
 reserve : 
 
 shall be deemed a foreign corporation 
 
 shall not do business in state except as provided 
 
 state auditor, duty to cancel certificate of authority when -! 
 
 state examiner, fees of 
 
 statement, failure to make out 
 
 surplus, must not be withdrawn 
 
 violation of act, additional penalties 
 
 Governor. 
 
 duties of, in regard to insolvent banks 
 
 Insolvent Banks. 
 
 attorney general, duties as to 
 
 attorney general to apply for a receiver when 
 
 receiver, compensation of 
 
 receiver, shall be subject to removal when 
 
 receiver, shall make reports to state examiner 
 
 state examiner to report condition to governor when ... 
 
 state examiner to take charge of when 
 
 National Banks. Change to State Banks. 
 
 approval of state examiner necessary 
 
 articles of incorporation of new bank 
 
 assets to become property of state bank 
 
 assets shall remain subject to the liabilities of the 
 
 national bank 
 
 filing articles of incorporation 
 
 may reorganize as state bank when 
 
 shall set forth consent of stockholders to change 
 
 stockholders shall execute articles of incorporation 
 
 Penal Code Provisions. (Fraudulent Insolvencies, etc.) 
 
 acting as agent or officer of corporation which has not 
 
 complied with provisions of civil code 
 
 acting as agent of foreign corporation which has not 
 
 complied with the law 
 
 director defined 
 
 director, deemed to have knowledge of affairs 
 
 director, misconduct of 
 
 director, not present at meeting deemed to have con- 
 curred in action after six months 
 
 director, present at meeting deemed to have concurred 
 
 in action, except when : 
 
 fraud in organization 
 
 fraudulent sale, issue, etc., of stock 
 
 foreign corporation liable to punishment S725 
 
 misconduct of directors 
 
 no defence that corporation is foreign 
 
 non-compliance with provisions of civil code a mis- 
 demeanor 
 
 officers, directors or agents keeping false accounts 
 
 officer publishing false report 
 
 receiving deposits by insolvent banks 
 
 refusing inspection of books to stockholders 
 
 savings bank officer overdrawing account a misdemeanor 
 
 subscriptions to stock, fraudulent 
 
 unauthorized use of name in prospectus 
 
 unlawful dividends 
 
 unlawfully receiving or obtaining any property of a 
 
 corporation 
 
 Private Banks. 
 
 must not use corporate name 
 
 Sec. 
 
 3989 
 
 3985 
 
 1 
 
 3988 
 
 3986 
 
 3987 
 4004 
 3984 
 
 3991 
 
 3990 
 
 3982 
 3979 
 3976 
 3976 
 
 3983 
 3987 
 3986 
 3983 
 3985 
 
 3991 
 
 4004 
 
 4004 
 
 4004 
 
 4004 
 
 4004 
 
 4004 
 
 4004 
 
 4004 
 
 a 
 
 5 
 
 a 
 
 5 
 
 8729 
 
 8727 
 
 8730 
 8722 
 8713 
 
 8724 
 
 8723 
 
 8711 
 8710 
 8726 
 
 8713 
 8725 
 
 8728 
 
 8717 
 
 8718 
 8715 
 
 8719 
 
 8714 
 8709 
 
 8712 
 
 8713 
 
 8717 
 
 3910 
 
 Page. 
 
 33 
 
 34 
 
 32 
 
 32 
 
 33 
 25 
 
 32 
 
 33 
 
 33 
 
 32 
 
 31 
 30 
 30 
 
 32 
 
 33 
 32 
 32 
 
 32 
 
 33 
 
 25 
 
 25 
 
 25 
 
 25 
 
 25 
 
 25 
 
 25 
 
 25 
 
 36 
 
 36 
 
 36 
 
 36 
 
 36 
 
 36 
 
 36 
 
 36 
 
 41 
 
 41 
 
 41 
 
 40 
 39 
 
 41 
 
 41 
 
 38 
 
 38 
 41 
 
 39 
 41 
 
 41 
 
 40 
 40 
 
 39 
 
 40 
 39 
 
 38 
 
 39 
 
 39 
 
 40 
 
 7 
 
46 
 
 INDEX. 
 
 Reserve. 
 
 amount required 
 
 Savings Banks. „ 
 
 See also Penal Code and Constitutional Provisions. 
 
 articles of incorporation, contents 
 
 articles of incorporation, defined 
 
 books of, must be open to inspection and examination 
 
 when and by whom 
 
 by-laws, must be adopted by directors 
 
 capital stock, amount for which may be incorporated and 
 how paid in 
 
 capital stock, increase of j 
 
 capital stock, proportion to be invested and in what 
 
 securities .' 
 
 capital stock, reduction of 
 
 capital stock, to be held as guarantee to depositors and 
 
 invested how 
 
 contingent fund 
 
 conversion from national to state bank, see national 
 banks. 
 
 conversion from state to national bank, see state banks. 
 
 deposits, in two names payable to whom Chapter 110 
 
 deposits, must be received and returned how 
 
 deposits, not to be received when, penal ty 
 
 deposits, proportion of which must be invested in what 
 
 securities 
 
 deposits, regulations regarding must be posted where... 
 
 deposits, to be kept separate when 
 
 deposits, to be returned when 
 
 deposits, what must be received and invested 
 
 directors, liability upon failure to make report 
 
 directors, majority vote necessary for what purpose 
 
 directors, oath of office 
 
 directors, qualifications of 
 
 directors, shall not borrow from corporation or receive 
 
 salary until when 
 
 directors, term of office 
 
 dissolution of, voluntary 
 
 dividends, may be declared when Chapter 112 
 
 dividends, must report to state examiner after declaring 
 
 extension of corporate existence 
 
 false entries, penalty for making 
 
 fees for state examiner’s fund 
 
 fees, penalty for failure ..o pay 
 
 forged or raised checks, when not liable for paying 
 
 Chapter 78 
 
 incorporation, number who may incorporate 
 
 impairment of capital, duties of state examiner 
 
 insolvency or impaired capital, see insolvent banks, 
 liability of person, firm or corporation limited to what 
 
 loans, how and to whom to be made . 
 
 loans, not to be made to any officer, director or servant 
 
 of corporation 
 
 married women may make deposits and draw dividends 
 
 may be dissolved how 
 
 may deposit cash where 
 
 minors may make deposits and draw dividends 
 
 misdemeanor to violate any law relating to banks when- 
 ever penalty is not prescribed 
 
 name shall not be adopted by any other corporation 
 
 in state 
 
 officers, directors may choose ... 
 
 officers, liability of 
 
 officer or employee of, overdrawing his account 
 
 real estate, bank may purchase, hold or convey what ... 
 
 real estate, how taxed 
 
 reports 
 
 reports, penalty for failure to make 
 
 reports, penalty for making false reports 
 
 report to be made after declaring dividend 
 
 report to be made to state examiner 
 
 reports to be published when 
 
 reports to state examiner confidential 
 
 Sec. Page. 
 4010 ' 27 
 
 3818 4 
 
 3817 4 
 
 3955 
 
 21 
 
 3947 
 
 19 
 
 3946 
 
 18 
 
 3918 
 
 9 
 
 4005 
 
 26 
 
 10 
 
 42 
 
 3951 
 
 20 
 
 4006 
 
 26 
 
 3946 
 
 18 
 
 3956 
 
 21 
 
 1 
 
 37 
 
 3950 
 
 20 
 
 4007 
 
 26 
 
 4008 
 
 27 
 
 3951 
 
 20 
 
 3950 
 
 20 
 
 4007 
 
 26 
 
 4007 
 
 26 
 
 3949 
 
 19 
 
 4000 
 
 23 
 
 3948 
 
 19 
 
 3947 
 
 19 
 
 3947 
 
 19 
 
 3952 
 
 20 
 
 3947 
 
 19 
 
 400o 
 
 24 
 
 1 
 
 37 
 
 3998 
 
 23 
 
 3907 
 
 29 
 
 4001 
 
 24 
 
 215 
 
 28 
 
 216 
 
 29 
 
 1 
 
 36 
 
 3945 
 
 18 
 
 4004 
 
 25 
 
 4011 
 
 ■28 
 
 3951 
 
 20 
 
 3952 
 
 20 
 
 3957 
 
 21 
 
 4003 
 
 24 
 
 3958 
 
 21 
 
 3957 
 
 21 
 
 4014 
 
 28 
 
 3945 
 
 18 
 
 3947 
 
 19 
 
 3953 
 
 20 
 
 8714 
 
 39 
 
 3954 
 
 20 
 
 4013 
 
 28 
 
 3955 
 
 21 
 
 4000 
 
 23 
 
 4001 
 
 24 
 
 3998 
 
 23 
 
 3996 
 
 23 
 
 3996 
 
 23 
 
 3999 
 
 23 
 
INDEX. 
 
 47 
 
 reports, verified how 
 
 reserve, amount required 
 
 reserve bank, how approved 
 
 stockholders, liability of 
 
 stockholders, must elect directors 
 
 stockholders must receive certificate of stock 
 
 stockholders to participate in profits when . . . 
 
 surplus fund must be created Chapter 112 j 
 
 taxes, property shall be taxed how 
 
 title, unlawful to use unless incorporated, penalty 
 
 trust funds deposited without notice of trust, payame 
 
 to whom in case of death Chapter 37 
 
 Secretary of State. 
 
 fees of 
 
 fees must be collected in advance 
 
 fees when collected to be paid to state treasurer 
 
 musf not charge state and county officers fees, when 
 State Auditor. 
 
 duties of, relating to banks, transferred to state 
 
 examiner 
 
 State Bank. Change to National Bank. 
 
 See also Banks of Discount and Deposit. 
 
 articles of association on becoming a national bank 
 
 board of directors to be directors of new bank 
 
 capital stock may be increased or decreased 
 
 cashier to give notice of decision to change 
 
 certificate of change 
 
 charter, wh^n deemed, to be surrendered 
 
 ' corporate existence, continuation of 
 
 directors, to be directors of new corporation for what 
 
 purpose 
 
 directors of new corporation, powers of 
 
 liabilities not released by change 
 
 new directors may be chosen 
 
 new stock, to whom may be awarded 
 
 property vests in new bank how 
 
 state bank examiner, notice to 
 
 stockholders, vote to become national bank 
 
 surplus, what to be done witli 
 
 taxes imposed by state 
 
 State Bank Examiner. 
 
 banks must report to, when \ 
 
 duties, must examine foreign banking corporations 
 
 duties of auditor relating to banks transferred to 
 
 duties, when banking corporation is insolvent or capital 
 
 impaired -j 
 
 duties, upon dissolution of banking corporation 
 
 fees of • 
 
 foreign banking corporations, must report when -j 
 
 may approve reserve banks 
 
 must approve increase of capital stock 
 
 must approve decrease of capital stock 
 
 must report to county attorney, when 
 
 must report to governor and attorney general, when 
 
 Trust Companies. 
 
 See also Penal Code and Constiutional Provisions. 
 
 articles of agreement, execution and filing 
 
 articles of agreement, what must set forth 
 
 articles of incorporation, void when 
 
 books and records shall be open for inspection, when 
 
 and by whom 
 
 business of, extending or changing 
 
 business of, must . begin how soon 
 
 capital stock, amount j 
 
 capital stock, assessment for payment of 
 
 capital stock, calling in unpand installments of 
 
 capital stock, decrease of 
 
 j 
 
 1 
 
 Sec. 
 
 3996 
 
 4010 
 
 4010 
 
 3953 
 
 3947 
 
 3946 
 
 3946 
 
 1 
 
 3956 
 
 4013 
 
 3992 
 
 1 
 
 165 
 
 165 
 
 165 
 
 165 
 
 4009 
 
 9 
 
 3 
 1 
 
 4 
 
 3 
 
 3 
 
 1 
 
 1 
 
 3 
 
 2 
 
 3996 
 
 3998 
 
 3986 
 
 4009 
 
 4004 
 4007 
 
 4003 
 215 
 
 3980 
 
 3981 
 
 4010 
 
 4005 
 
 4006 
 3995 
 
 4004 
 
 3936 
 
 3936 
 
 3924 
 
 3940 
 
 3943 
 
 3924 
 
 3924 
 
 3938 
 
 3929 
 
 3929 
 
 3943 
 
 3924 
 
 3943 
 
 10 
 
 Page. 
 
 23 
 
 27 
 
 27 
 20 
 19 
 18 
 18 
 37 
 21 
 
 28 
 22 
 
 34 
 
 5 
 
 6 
 6 
 6 
 
 27 
 
 35 
 
 35 
 
 35 
 
 35 
 
 36 
 35 
 35 
 
 35 
 
 35 
 
 35 
 
 35 
 
 35 
 
 36 
 35 
 35 
 35 
 35 
 
 23 
 
 23 
 32 
 
 27 
 
 25 
 
 26 
 
 24 
 
 28 
 31 
 31 
 27 
 26 
 26 
 22 
 
 25 
 
 13 
 
 13 
 
 11 
 
 16 
 
 17 
 
 11 
 
 11 
 
 15 
 
 12 
 
 12 
 
 17 
 
 11 
 
 17 
 
 42 
 
 capital stock, increase of 
 
48 
 
 INDEX. 
 
 Sec. 
 
 capital stock, investment in securities 3930 
 
 capital stock, reduction of 4006 
 
 capital stock, sale of for non-payment of installments, 
 
 after notice 3929 
 
 certificate of incorporation, shall be taken in courts as 
 
 evidence of what 3936 
 
 change of business 3943 
 
 contracts, receipts and certificates, may execute 3928 
 
 conversion from national t> state bank, see national 
 banks. 
 
 conversion from state to national bank, see state banks. 
 
 deposits in two names, payable to whom Chapter 110 1 
 
 , l 4007 
 
 deposits, not to be received when, penalty \ 4908 
 
 deposits, to be kept separate when 4007 
 
 deposits, to be returned when 4007 
 
 deposits, when payable on demand 3931 
 
 directors, election of 3926 
 
 directors, election of may be adjourned 3938 
 
 directors, election of, notice 3938 
 
 directors, liability upon failure to make report 4000 
 
 directors, liable when upon declaring dividend 3939 
 
 i 3993 
 
 directors, loans to unlawful when, penalty 3994 
 
 J 3926 
 
 directors, number of 3933 
 
 directors, qualifications of • 3938 
 
 directors, quorum 3926 
 
 directors, shall render correct accounts to stockholders 3910 
 
 directors, term of office 3926 
 
 directors, term of office when more than five 3938 
 
 directors, vacancy in how filled 3926 
 
 dissolution of, voluntary 4003 
 
 dividends, may be declared when j 3939 
 
 Chapter 112 1 1 
 
 dividends, must report to state examiner after declaring 3998 
 
 extension of corporate existence 3907 
 
 false oath or affirmation by clerk or officer, perjury.... 3940 
 
 false entries, penalty for making 4001 
 
 fees for state examiner’s fund 215 
 
 fees, penalty for failure to pay 216 
 
 forged or raised ch3cks. when not liable for paying 
 
 Chapter 78 1 
 
 impairment of capital, duties of state examiner 4004 
 
 insolvency or impaired capital, see insolvent banks. 
 
 incorporators, first meeting, notice of 3925 
 
 incorporators, number 3923 
 
 liability of person, firm or corporation, limited to what 4011 
 loans, buildings upon which are made to be insured.... 3932 
 loans, to managing officers and directors must be j 3993 
 
 approved when, penalty for violation 1 3994 
 
 loans, to managing officers and directors unlawful when, j 3993 
 
 penalty for violation ' 3994 
 
 may be dissolved how 4003 
 
 misdemeanor, to violate any law relating to banks, when- 
 ever penalty is not prescribed 4014 
 
 name or title 3935 
 
 notice of meeting of stockholders to increase or decrease 
 
 capital stock, etc 3943 
 
 penalty for failure to make reports 3996 
 
 powers enumerated 3927 
 
 purposes for which corpoi’ation may be formed 3937 
 
 real estate, amount company may own 3939 
 
 real estate, how taxed 4013 
 
 real estae, may acquire in settlement of debts 3928 
 
 real estate, what may purchase, lease, hold or convey 3928 
 
 receiver, application for when insolvent 4004 
 
 reports, penalty for failure to make 4000 
 
 reports, penalty for making false reports 4001 
 
 reports, to be made after declaring dividends 3998 
 
 reports, to be made to state examiner 3996 
 
 reports, to be published when 3996 
 
 reports, to state examiner confidential 3999 
 
 reports, verified how 3996 
 
 reserve, amount required 4010 
 
 reserve banks, how approved 4010 
 
 Page. 
 
 12 
 
 26 
 
 12 
 
 13 
 
 17 
 
 12 
 
 37 
 
 26 
 
 27 
 26 
 26 
 12 
 11 
 15 
 
 15 
 
 23 
 
 16 
 22 
 22 
 11 
 15 
 
 15 
 11 
 
 16 
 11 
 
 15 
 11 
 
 24 
 
 16 
 37 
 
 23 
 29 
 16 
 
 24 
 
 28 
 29 
 
 36 
 
 25 
 
 11 
 
 11 
 
 28 
 
 12 
 
 22 
 
 22 
 
 22 
 
 22 
 
 24 
 
 28 
 
 13 
 
 17 
 
 23 
 
 11 
 
 14 
 16 
 28 
 12 
 12 
 
 25 
 
 23 
 
 24 
 23 
 23 
 23 
 23 
 23 
 27 
 27 
 
INDEX. 49 
 
 Sec. Page. 
 
 rights of corporation heretofore organized, how affected 3942 17 
 
 secretary of state, shall give certificate of incorporation 
 
 setting forth what 3936 13 
 
 shares of stock, transferable hew 3933 13 
 
 shares of stock, personal property 3933 13 
 
 state examiner, duties as to insolvent banks 4004 25 
 
 stockholders, executors, administrators, etc., not liable 
 
 for corporate debts 3941 16 
 
 stockholders, executors, administrators, guardians, etc., 
 
 power to represent stock 3941 16 
 
 stockholders, liability for debts of corporation 3934 13 
 
 stockholders, liability of estates of deceased stockholders 3941 16 
 
 stockholders, persons pledging stock held as stockholders 3941 16 
 
 surplus fund, must be created Chapter 112 1 37 
 
 taxes, property shall be assessed how \ 4013 28 
 
 term of corporate existence 3936 13 
 
 title, unlawful to use unless incorporated 3992 22 
 
 trust funds deposited without notice of trust payable to 
 
 whom in case >f death Chapter 37 1 34