Return this book on or before the 
 Latest Date stamped below. A 
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 U. of I. Library 
 
 9324-S 
 
LAWS 
 
 REGULATING THE INVESTMENT OF 
 
 BANK FUNDS 
 
 A Compilation of the Laws of various States 
 in the Union restricting the investment 
 of funds of the banks, trust, safe deposit 
 companies, etc., and so arranged and 
 bound that changes in the same can be 
 inserted from time to time. 
 
 ELEVENTH EDITION. 
 
 COMPILED BY 
 
 MONTGOMERY ROLLINS 
 
 Also Author of 
 
 Convertible Securities 
 Money and Investments 
 Cipher Code, Banker's Edition 
 Tables of Bond Values, Interest Payable Annually 
 Tables of Bond Values, Interest Payable Quarterly 
 Tables of Bond Values, Interest Payable Semi-Annually 
 
 Published and for sale by 
 MONTGOMERY ROLLINS 
 Boston, Mass. 
 
Electrotyping-, Presswork and Binding 
 by The Southgate Press, Boston, U.S. A. 
 
 Copyright, 1899, by Montgomery Rollins. 
 Copyright, 1905, by Montgomery Rollins. 
 Copyright, 1909, by Montgomery Rollins. 
 All Rights Reserved. 
 
 4 
 
 \ 
 
 \ 
 
 
1 5 Ta H* 
 
 NOTICE TO SUBSCRIBERS. 
 
 332.1 
 
 J{G5t 
 
 It is imperative that the investment 
 banker of to-day keeps in close touch 
 with the laws governing the investments 
 of banks and trust company funds in 
 the several states. A book giving this 
 information, unless strictly up to date, is 
 practically of little use. It has been the 
 idea, in using detachable leaves, to have 
 this book correct at all times, and every 
 effort is made so to do, but, of course, the 
 difficulty in obtaining correct data from 
 officials, when asked for, makes it impos- 
 sible to guarantee its infallibility. A 
 r-i list of subscribers is retained, and, after 
 a State makes any change in its laws 
 relative to bank investments, it is in- 
 tended to forward to the subscribers 
 leaves covering the same, to replace the 
 old matter. A nominal charge of fifty 
 prpents is made for each new law, and 
 ^the subscribers who do not wish to receive 
 r^such from time to time will kindly 
 notify the publisher. 
 
 It will be observed that this book has a 
 side index, making it possible to turn to 
 any State quickly, and the law in each 
 State is so arranged that the desired 
 -^Information can be obtained almost in- 
 ^stantly. The matter relating to railroad 
 bonds is printed in green ; municipal 
 bonds in red; street railway bonds in 
 brown and all other matter in black, mak- , 
 ing it necessary to read only that portion / 
 of the law which bears directly upon the, 
 subject sought. 
 
 251071 
 
c 
 

 ;-vj 
 
 
Savings Banks. 
 
 CALIFORNIA. 
 
 Municipal Law in red. Street Railway Law in 
 Railroad Law in green. brown. 
 
 Other matter in black. 
 
 CALIFORNIA. 
 
 Corrected to April 21, 1911. 
 
 SAVINGS BANKS. 
 
 Chap. 76. 
 
 Sec. 34. No Bk. shall purchase or invest 
 its capital or money of its depositors, or 
 any part of either, in the shares of its own 
 capital stock ; nor loan its capital or the 
 money of its depositors, or any 'part of 
 either, on the shares of its own capita^ 
 stock, unless such purchase or loan shall be 
 necessary to prevent loss on debts previously 
 contracted in good faith. 
 
 Stock thus purchased or carried shall, 
 within 6 mos. from the time of its pur- 
 chase, be sold or disposed of at public or 
 private sale. 
 
 Sec. 35. No director, or officer, or em- 
 ployee, or controlling stockholder of any 
 Bk. shall, directly or indirectly, for himself 
 or as the partner or agent of others, sell or 
 transfer, or cause to be sold or transferred 
 to the Bk. of which he is a director, officer, 
 employee, or controlling stockholder, any 
 mtg. on real estate or contract arising from 
 the sale of real estate made by any corpora- 
 tion or syndicate in which such director 
 or officer, or employee, or controlling stock- 
 holder is personally or financially interested, 
 without the consent in writing of the Supt. 
 of Bks. 
 
 Sec. 36. No Bk. receiving deposits of 
 money shall purchase, agree to purchase, un- 
 derwrite or guarantee any bond issue in ex- 
 cess of 5% of its assets, except bonds of the 
 U. S., of the State of Cali., of the cities, cities 
 and counties, counties or sch. dists. of this 
 state. 
 
 Sec. 37. No Bk. shall purchase, or invest 
 its capital or money of its depositors, or 
 any part of either, in shares of corporations, 
 unless such purchase shall be necessary to 
 
 l 
 
CALIFORNIA. 
 
 Savings Banks. 
 
 prevent loss on debts previously contracted 
 in good faith, and stock thus purchased or 
 carried shall, within 6 mos. from the time 
 of its purchase, be sold or disposed of at pub- 
 lic or private sale, unless permission to hold 
 said stock for a longer period shall be ob- 
 tained from the Supt. of Bks. 
 
 Sec. 44. No Bk. shall hereafter make a 
 loan secured by the stock of another Bk., if 
 by making such loan the total stock of such 
 other Bk. held by such loaning Bk. as collat- 
 eral will exceed in the aggregate 10% of the 
 capital stock of such other Bk. ; Provided that 
 no loan upon the capital stock of any Bk. 
 shall be made unless such Bk. has been in 
 existence for 2 or more years and has earned 
 and paid a dividend upon its capital stock. 
 
 Sec. 46. No Bk. shall invest or loan more 
 than 5% of its assets in any one bond is- 
 sue, except bonds of the U. S., of the State 
 of Cali., of the counties, cities and counties, 
 cities or sch. dists. of this state. 
 
 Chap. 494. 
 
 Sec. 61. Sav. Bks. may purchase, hold and 
 convey real estate and personal property as 
 follows : 
 
 1. The lot and building in which the busi- 
 ness of the Bk. is carried on; such lot and 
 building shall not cost the Sav. Bk. an amount 
 exceeding its capital and surplus ; and the 
 authority of a ^rds vote of a full board of 
 directors shall be necessary to authorize the 
 purchase or construction thereof. 
 
 2. Such as may have been mortgaged, 
 pledged, or conveyed to it in trust for its 
 benefit in good faith, for money loaned in 
 pursuance of the regular business of the cor- 
 poration. 
 
 3. Such as may have been purchased at 
 sales under pledges, mortgages or deeds of 
 trust made for its benefit for money so loaned, 
 and such as may be conveyed to it by bor- 
 rowers in satisfaction and discharge of loans 
 made thereon. 
 
 No Sav. Bk. shall purchase, hold, or con- 
 
 2 
 
Savings Banks. 
 
 CALIFORNIA. 
 
 vey real estate in any other case or for any 
 other purpose; and all real estate described 
 in Subdiv. 3 of this Sec. must be sold by the 
 Bk. within 10 yrs. after the title thereto is 
 vested in it by purchase or otherwise, un- 
 less permission to hold said real estate for 
 a longer period be given by the Supt. of Bks. 
 in writing. Parcels of real estate not sold 
 within 10 yrs., or extension of said period as 
 above provided, may be purchased by any 
 persons or parties wanting them, at the price 
 to be determined by arbitration of 3 persons 
 appointed by the superior court as apprais- 
 ers, at the request of the would-be purchasers. 
 
 No Sav. Bk. shall purchase, own, or sell 
 personal property, except such as may be 
 requisite for its immediate accommodation 
 for the convenient transaction of its busi- 
 ness, and mortgages on real estate, bonds, 
 securities or evidences of debt, public 0 r 
 private, gold and silver bullion and U. S. 
 mint certificates of ascertained value, an< 3 
 evidences of debt issued by the U. S. 
 
 No Sav. Bk. shall purchase, hold or con- 
 vey bonds, securities or evidences of debt, 
 public or private, except as follows: 
 
 (a) Bonds or interest-bearing notes or ob- 
 ligations of the U. S., or those for which 
 the faith of the U. S. is pledged for the 
 payment of interest and principal. 
 
 (b) Bonds of this state. 
 
 (c) Bonds of any state in the U. S. that 
 have not, within 5 yrs. previous to making 
 such investment by such Bk., defaulted in the 
 payment of any part of either principal or 
 interest thereof. 
 
 (d) Bonds of any city, county, city and 
 county, town, township, or sch. dist. of this 
 state ; bonds of the permanent road division 
 in any county issued in pursuance of the pro- 
 visions of part 3, title 6, art. 9 of the Political 
 Code; bonds issued by irrigation dists. which 
 are permitted to be invested in as provided 
 for in an act of the 39th session of the Leg. 
 entitled “ An act relating to the bonds of irri- 
 gation dists., providing under what circum- 
 stances such bonds may become legal in- 
 
 3 
 
CALIFOKNIA. 
 
 Savings Banks, 
 
 vestments for the funds of Bks., banking as- 
 sociations, Tr. Co’s, Ins. Co’s, and for the 
 state school funds, and providing that such 
 bonds may be deposited as security, and pro- 
 viding for a commission for approving such 
 bonds, for a report thereon, for the filing of 
 such report and for the registration of such 
 bonds in the office of the state controller.” 
 Approved Mar. 9, 1911; bonds of any sewer 
 dist., drainage dist., protection dist., or sani- 
 tary dist., in any county in this state; pro- 
 vided that the total amount of bonds of any 
 sewer dist., drainage dist., protection dist., or 
 sanitary dist. so issued shall not exceed 15% 
 of the taxable property of said dist. as shown 
 by the last equalized assessment book of the 
 county. 
 
 (e) Bonds of any city, town or county 
 which has in each case, at the time of the 
 investment, more than 20,000 inhabitants, as 
 ascertained by the U. S. or state census made 
 next preceding such investment, in any of 
 the states of the U. S., other than in the State 
 of Cali., issued pursuant to the authority of 
 any law of such states ; Provided, the entire 
 bonded debt of such city or county or town 
 shall not exceed 15% of the assessed value 
 of the taxable property therein, including the 
 issue of bonds in which said investment is 
 made as shown by the last assessment pre- 
 ceding the investment; and provided, further, 
 that such city, town or county or state in 
 which it is situated has not defaulted in 
 the payment of any part of either principal 
 or interest thereon within 5 yrs. previous to 
 making such investment. 
 
 (f) 1st Mtg. or underlying bonds of any 
 Steam Rwy., the income of which is sufficient 
 to pay all operating expenses and fixed 
 charges, and which is completed and operated, 
 wholly or in part, in any of the states of 
 the U. S. (See also 1st and 3d paragraphs 
 following.) 
 
 (g) Bonds of street railroads,* water, 
 
 * The remainder of this paragraph and the sec- 
 ond one following, although not in brown, very 
 largely also apply to street railroads. 
 
 4 
 
Savings Banks. 
 
 CALIFORNIA. 
 
 light, light and power, gas, and other public 
 utility and industrial corporations. All bonds 
 authorized for investment by this section 
 shall be secured by a Mtg. or Tr. Deed, which 
 is, at the time of making such investment, 
 
 (1) a ist or underlying Mtg. or Tr. Deed 
 of the corporation issuing said bonds, or 
 
 (2) a refunding Mtg. or Tr. Deed used to 
 retire all prior lien Mtg. debts of said cor- 
 poration outstanding at the time of making 
 said investment ; Provided, that the income 
 of such corporation is sufficient to pay all 
 operating expenses and fixed charges, includ- 
 ing interest on all of its Mtg. debt and that 
 the income of such corporation or of the 
 corporation or corporations out of which it 
 shall have been formed through consolidation 
 shall have been sufficient to pay its operating 
 expenses and fixed charges including inter- 
 est on all Mtg. debt for a period of 3 yrs., next 
 preceding the purchase of such refunding 
 bonds, or that payments of its said bonds 
 have been guaranteed by a corporation that 
 has paid all its operating expenses and fixed 
 charges for a period of 3 yrs., prior to guar- 
 anteeing the payment of such bonds. 
 
 (h) ist Mtg. bonds or Deeds of Tr. is- 
 sued by real estate corporations : Provided, 
 that said bond issue shall not exceed 60% 
 of the market value of the real estate taken 
 as security. 
 
 No Sav. Bk. shall purchase the bonds of 
 any corporation or make a loan on the bonds 
 of any corporation, if the main or principal 
 franchise of such corporation expires prior 
 to the maturity of its bonds, or if the main 
 or principal franchise or special privilege 
 granted to such corporation by any city, 
 county, or city and county, expires before the 
 maturity of such bond issue. 
 
 (i) Collateral Tr. bonds when secured by a 
 deposit of an equal amount of bonds which 
 are authorized for investment by this Sec. 
 and a sufficient amount of other security so. 
 that the bonds shall represent not more than 
 90% of the market value of the total security 
 pledged therefor. 
 
 5 
 
CALIFORNIA. 
 
 Savings Banks. 
 
 Chap. 76. 
 
 Sec. 62. No Sav. Bk. shall, directly or in- 
 directly, deal or trade in real or personal 
 property in any other case or for any other 
 purpose than is authorized by this act, and 
 shall not contract any debt or liability for 
 any purpose whatever other than for deposits, 
 except as in this sec. provided. 
 
 Sec. 64. * * * * but whenever there is any 
 call by depositors for repayment of a greater 
 amount than the Bk. may have disposable for 
 that purpose, the directors or officers thereof 
 must not make any new loans or investments 
 of the funds of the depositors, or of earn- 
 ings thereof, until such excess of call has 
 ceased. The directors of any such Bk., hav- 
 ing no capital stock, must retain, on each 
 dividend day, at least 10% of the net profits 
 of the Bk., to constitute a reserve fund, 
 which must be invested in the same manner 
 as other funds of the Bk. * * * * 
 
 Sec. 67. 1. No Sav. Bk. shall loan money 
 except on adequate security of real or per- 
 sonal property, and no such loan shall be 
 made for a period longer than 10 yrs. ; Pro- 
 vided that no loans shall be made on un- 
 secured notes. 
 
 3. No Sav. Bk. shall loan money to ex- 
 ceed 90% of the market value of bonds speci- 
 fied in Subdivs. (a), (b), (c) and (d) of 
 Subdiv. 3 of Sec. 61 of this Act, and no 
 more than 85% of the market value of bonds 
 specified in Subdiv. (e) of Subdiv. 3 of Sec. 
 61 of this Act, and no more than 75% of the 
 market value of bonds specified in Subdiv. 
 (f) and (g)* of Subdiv. 3 of Sec. 61 of this 
 Act, and no more than 65% of the market 
 value of personal property and stocks of 
 corporations or Bks. ; Provided, however, that 
 no loan shall be made upon the capital stock 
 of any corporation or Bk. unless such cor- 
 poration or Bk. has been in existence for 2 
 or more yrs., and has earned and paid a 
 dividend on its capital stock. 
 
 4. No Sav. Bk. shall make any loan on the 
 
 * This includes street railways. 
 
Savings Banks. 
 
 CALIFORNIA. 
 
 security of real estate except it be a ist 
 lien and in no event to exceed 60% of the 
 market value of any piece of real estate to 
 be taken as security, except for the purpose 
 of facilitating the sale of property owned by 
 the Sav. Bk. ; Provided, that a 2 d lien may 
 be accepted to secure the repayment of a 
 debt previously contracted in good faith. 
 
 5. No Sav. Bk. shall purchase, invest or 
 loan its capital or the money of its depositors, 
 or any part of either, in mining shares or 
 stock. 
 
 6. No Sav. Bk. shall hereafter make a loan 
 secured by the stock of another Bk., if by 
 making such loan the total stock of such 
 other Bk. held by such loaning Bk. as collat- 
 eral will exceed in the aggregate 10% of the 
 capital stock of such other Bk. 
 
 Chap. 494 
 
 Sec. 68. Every Sav. Bk. or Sav. Bk. Dept, 
 of a Bk. shall at all times maintain a lawful 
 money reserve equivalent to 4% of the ag- 
 gregate amount of its deposits; of such 
 reserve shall be kept on hand in lawful 
 money of the U. S., and y 2 may consist of 
 bonds of the U. S., or of lawful money of 
 the U. S. on hand or on deposit subject to 
 call with any reserve Bk. provided for in 
 Sec. 20 of this Act; Provided, however, that 
 no Sav. Bk. or Dept shall be required to 
 maintain in its own keeping a reserve in law- 
 ful money of the U. S. in excess of $400,000, 
 and when the reserve in its own keeping 
 reaches that amount, the balance of cash 
 necessary to make up the 4%, may be kept 
 on deposit subject to call with any reserve 
 Bk. provided for in Sec. 20 of this Act. 
 
 No new loan shall be made during any 
 deficiency in the lawful money reserve. 
 
 Deposits with the Commercial Bks., or 
 Commercial Depts., on open account, to fa- 
 cilitate business transactions, as provided in 
 this Sec., shall be permitted, and shall not 
 be construed as loans. 
 
 Not more than 8% of the deposits of any 
 
 7 
 
CALIFORNIA. 
 
 Commercial Banks. 
 
 Sav. Bk. shall be deposited with any one Bk. 
 
 No Sav. Bk. or Sav. Dept, shall receive 
 deposits of other Bks. other than Savs. de- 
 posits and such deposits shall not be treated 
 or considered as a part of the legal reserve 
 of such depositing Bk. and provided that the 
 sum so deposited shall not exceed the sum 
 of $10,000 in any one Bk. 
 
 Chap. 495, Sec. 33, and Chap. 76, Sec. 47 un- 
 der Commercial Bks. also apply to Sav. Bks. 
 
 COMMERCIAL BANKS. 
 
 Chap. 495. 
 
 Sec. 20. Every Bk., other than a Sav. Bk., 
 shall have at all times as law r ful reserve an 
 amount equal to 15% of the aggregate amount 
 of its deposits; 2-5ths of such reserve shall 
 be in its own keeping in lawful money of the 
 U. S. ; of the remainder of such lawful 
 reserve may consist of moneys on deposit, 
 subject to call, with any Bk. or Bks. in this 
 state, other than a Sav. Bk. ; and the balance 
 of such reserve may consist of moneys on 
 deposit, subject to call, with any Bk. or Bks. 
 in the cities of New York, Chicago or St. 
 Louis, other than a Sav. Bk. ; Provided, that 
 every Bk. receiving deposits as a reserve 
 depository Bk. of other Bks., shall maintain 
 as a lawful reserve at least 20% of the ag- 
 gregate amount of its deposits; 2-5ths of 
 such lawful reserve of such depository Bk. 
 shall be in lawful money of the U. S. in its 
 own keeping; *4 of the remainder of such 
 lawful reserve of such depository Bk. may 
 consist of moneys on deposit, subject to call, 
 with any Bk. or Bks. in this state, other 
 than a Sav. Bk. ; and the balance of such 
 reserve may consist of moneys on deposit, 
 subject to call, with any Bk. or Bks. in the 
 cities of New York, Chicago, and St. Louis, 
 other than a Sav. Bk. 
 
 If the lawful money reserve of any Bk. 
 shall be less than the amount required by 
 this section, such Bk. shall not increase its 
 liabilities by making any new loans or dis- 
 counts, otherwise than by discounting bills 
 
 8 
 
Commercial Banks. 
 
 CALIFORNIA. 
 
 of exchange on sight, or making any divi- 
 dends from profits until the full amount of 
 its lawful money reserve has been restored. 
 
 Sec. 33. No officer or employee of any 
 Bk. shall, directly or indirectly, for himself 
 or as the partner or agent of others, borrow 
 any of the deposits or other funds of such 
 Bk., nor shall he nor any director become an 
 endorser or surety for loans to others, nor 
 in any manner be obligor for moneys bor- 
 rowed or loaned by such Bks ; except that 
 a Commercial Bk. may buy from, or discount, 
 for a director of said Bk., bills of lading and 
 bills of exchange drawn in good faith against 
 actually existing value actually owned by the 
 director negotiating the same. 
 
 Chap. 76. 
 
 Sec. 47. No Bk. shall make any loan on 
 real estate except it be a 1st lien, but this 
 provision shall not prevent the acceptance of 
 a 2d lien to secure the payment of a debt 
 previously contracted in good faith. 
 
 Chap. 495. 
 
 Sec. 80. No Commercial Bk. shall make 
 any loans to any person, company, corpora- 
 tion or firm to an amount exceeding i-ioth 
 part of the capital stock of such Bk. actu- 
 ally paid in and surplus, excepting that no 
 Commercial Bk. shall be prohibited by this 
 act from loaning to any person, company, 
 corporation or firm any sum not exceeding 
 $5,000 without security; Provided, however, 
 that a Bk. may loan to any person, company, 
 corporation or firm a sum not exceeding 
 25% of its capital stock actually paid in and 
 surplus upon security worth at least 15% 
 more than the amount of its loans ; or it may 
 loan 10% of such capital and surplus as 
 first above provided, and a further sum not 
 exceeding 15% of such capital and surplus 
 upon security worth at least 15% more than 
 the amount of such loan so secured ; except 
 that a Commercial Bk. may buy from, or 
 discount, for any person, company, corpora- 
 
 9 
 
CALIFORNIA. 
 
 Commercial Banks. 
 
 tion or firm, or loan upon bills of lading, and 
 bills of exchange, drawn in good faith against 
 actual existing value or against commercial 
 or business paper actually owned by the per- 
 son negotiating the same; Provided, however, 
 that at no time shall the loans on or pur- 
 chases of bills of lading or such bills of ex- 
 change, made to any one person, company, 
 corporation or firm exceed 75% of the capital 
 and surplus of such bank. 
 
 Sec. 81. No loan shall be made by any 
 Commercial Bk. upon the securities of one 
 or more corporations, the payment of which 
 is undertaken, in whole or in part, severally, 
 but not jointly, by 2 or more individuals, 
 firms, or corporations : 
 
 (a) If the borrowers or underwriters be 
 obligated absolutely or contingently to pur- 
 chase the securities, or any of them, collat- 
 eral to such loan, unless the borrowers or 
 underwriters shall have paid on account of 
 the purchase of such securities an amount in 
 cash, or its equivalent, equal to at least 25% 
 of the several amounts for which they re- 
 main obligated in completing the purchase 
 of such securities ; 
 
 (b) If the Commercial Bk. making such 
 loan be liable, directly or indirectly, or con- 
 tingently, for the repayment of such loan or 
 any part thereof; 
 
 (c) If its term, including any renewal 
 thereof by agreement, expressed or implied, 
 exceed the period of 1 yr. ; 
 
 (d) Or to an amount under any circum- 
 stances in excess of 25% of the capital and sur- 
 plus of the Commercial Bk. making such loan. 
 
 Sec. 83. No Commercial Bk. shall loan 
 any of its funds to any of its directors un- 
 less such loan shall first have been approved 
 by a ^rds vote of its board of directors, on 
 which vote the borrowing director shall not . 
 
 participate, and the fact of making such ^ 
 
 loan, the name of the director borrowing the 
 same, the time when the same shall become 
 due, the rate of interest thereon, and the 
 amount, value and character of security 
 pledged therefor, if any, shall be forthwith 
 
 10 
 
Trust Companies. 
 
 CALIFORNIA. 
 
 forwarded by the cashier of such Bk. to the 
 Supt. of Bks. ; and if the Supt. of Bks. shall 
 disapprove of such loan he shall immediately 
 notify such Bk. of his disapproval thereof 
 and such Bk. shall forthwith collect such 
 loan; Provided, however, that the total loans 
 to all directors of such Bk. shall not at any 
 one time exceed 50% of the capital and 
 surplus of such Bk., and Provided further, 
 that each Bk. having any loan or loans out- 
 standing to any of its directors, shall once 
 each month report in writing to the Supt. 
 of Bks. the name of each director to whom 
 such loan is made, and amount of such loan, 
 the rate of interest thereon, the time when 
 the same shall fall due, and the security 
 pledged therefor, if any. 
 
 Sec. 84. No Commercial Bk. shall invest 
 an amount exceeding its capital and surplus in 
 its Bk. premises without the approval of the 
 Supt. of Bks.; and the authority of a ^rds 
 vote of a full board of directors shall be 
 necessary to authorize the purchase or con- 
 struction thereof. 
 
 Chap. 76, Secs. 34, 35, 36, 37, 44, and 46 
 under Sav. Bks. also apply to Commercial Bks. 
 
 TRUST COMPANIES. 
 
 Chap. 495. 
 
 Sec. 96. Each Tr. Co., before accepting 
 any such appointment or deposit, shall de- 
 posit with the treasurer of state, for the 
 benefit of the creditors of said Tr. Co., the 
 sum of 8100,000, in bonds of the U. S., or 
 municipal bonds of this state, or of any 
 county, or city, city and county, or sch. 
 dist. thereof, or in Mtgs. on improved and 
 productive real estate in this state, being 
 1st liens thereon, and the real estate being 
 worth at least twice the amount loaned 
 thereon ; said bonds or Mtgs. to be approved 
 by the Supt. of Bks. The bonds and securi- 
 ties so deposited may be exchanged from 
 time to time for other securities, receivable 
 as aforesaid. Said bonds of the U. S., or 
 municipal bonds of this state, or of any 
 
 ll 
 
CALIFORNIA, 
 
 Trust Companies. 
 
 county, city, city and county, or sch. dist. 
 thereof, and all said securities shall be sub- 
 ject to sale and transfer, and to the dis- 
 posal of the proceeds by said treasurer, only 
 on the order of a court of competent juris- 
 diction and as hereinafter provided. 
 
 Chap. 76. 
 
 Sec. 97. Any such Tr. Co., having a 
 paid-up capital in excess of $200,000, may be 
 permitted by the Supt. of Bks. to mortgage 
 any improved and productive real estate 
 owned by it, in excess of said amount, to 
 the treasurer of state, for such sum as the 
 said Supt. of Bks. may determine, and such 
 Mtg. may be deposited with said treasurer, 
 and when so deposited it shall be included 
 in the amount of securities hereinabove re- 
 quired to be deposited with said treasurer 
 for the benefit of the creditors of said Tr. 
 Co. 
 
 Sec. 98. * * * * and whenever any Tr. 
 Co. receives Tr. Funds as such trustee in 
 excess of $500,000, it shall deposit with the 
 state treasurer securities mentioned in Sec. 
 96 of this act, to be approved by the Supt. 
 of Bks., in the amount of another $100,000, 
 and for each $500,000, of such Tr. Funds 
 thereafter received, an additional deposit of 
 $50,000, of such securities likewise approved 
 shall be made with the said state treasurer; 
 Provided, however, that no Tr. Co. shall be 
 required to deposit more than $1,000,000 of 
 such securities. 
 
 Sec. 99. When any part of such deposit 
 with the state treasurer is made in bonds and 
 Mtgs., it shall be accompanied by full ab- 
 stracts of titles and searches, or by certifi- 
 cates of title issued by a person, company or 
 corporation, whose business or objects are 
 to make searches of titles and issue certifi- 
 cates of titles, and which said person, com- 
 pany or corporation shall be one designated 
 or approved by said Supt. of Bks., and shall 
 be examined and approved by or under the 
 direction of the said Supt. of Bks. The fees 
 for an examination of title by counsel to be 
 
Trust Companies. 
 
 CALIFORNIA. 
 
 paid by the Tr. Co. making the deposit, shall 
 not exceed $20.00 for each Mtg., and the fee 
 for each appraiser, not exceeding 2, besides 
 expenses, shall be $5.00 for each Mtg. 
 
 Sec. 105. Every Tr. Co. shall invest its 
 capital and Tr. Funds received by it in ac- 
 cordance with the laws relative to the in- 
 vestment of funds deposited with Sav. Bks., 
 unless a specific agreement to the contrary is 
 made between the Tr. Co. and the party 
 creating the trust. 
 
 The following also applies to Tr. Co’s: 
 
 Chap. 76, Secs. 34, 35, 36, 37, 44, and 46 un- 
 der Sav. Bks., and Chap. 495, Secs. 20 and 33, 
 and Chap. 76, Sec. 47 under Commercial Bks. 
 
Savings Banks. 
 
 CONNECTICUT. 
 
 Municipal Law in red. Street Railway Law in 
 Railroad Law in green . brown. 
 
 Other matter in black. 
 
 CONNECTICUT 
 
 Corrected to Include 1913 Sess. of Leg. 
 
 SAVINGS BANKS.* 
 
 Sec. 1. Sav. Bks. may invest their deposits 
 and surplus only as hereinafter provided. 
 
 Sec. 2. In the stock or bonds or interest- 
 bearing notes or obligations of the U. S., or 
 those for which the faith of the U. S. is pledg- 
 ed to provide for the payment of the principal 
 and interest, including the bonds of the Dis- 
 trict of Columbia. 
 
 Sec. 3. In the stock or bonds or interest- 
 bearing obligations of any state of the U. S. 
 which was admitted to statehood prior to Jan. 
 1, 1896, which has not, within 10 years previous 
 to making such investment by such Corp., de- 
 faulted for more than 90 days in the payment 
 of any part of either principal or interest of 
 any debt authorized by the legislature of such 
 state to be contracted ; and in the bonds or in- 
 terest-bearing obligations of any such state of 
 the U. S. which have been issued and outstand- 
 ing for a period of at least 10 years previous to 
 making such investment by such Corp., and 
 which have been issued in pursuance of the 
 authority of the legislature of such state, (1) 
 for the funding or settlement of any pre- 
 vious obligation of such state theretofore in 
 default, or (2) for the refunding of such fund- 
 ing or settlement obligation of such state 
 theretofore in default, and on which said 
 funding or settlement obligation or obligation 
 issued to refund the same there has been no 
 default in the payment of either principal or 
 interest since its issue, provided the authoriza- 
 tion of any obligation by the legislature of any 
 such state hereinbefore referred to shall not 
 have been in violation of any constitutional 
 provision, and provided such bond or interest- 
 
 *The term “savings banks’’ shall include savings 
 banks, societies for savings, and savings societies. 
 
 1 
 
CONNECTICUT. 
 
 Savings Banks. 
 
 bearing obligation shall be the direct obliga- 
 tion of such state and that the faith and credit 
 of the state shall be pledged for its payment, 
 principal and interest. 
 
 Sec. 4. In the obligations of any county, 
 town, city, borough, Sch. Dist., fire Dist., or 
 sewer Dist., in this state. 
 
 Sec. 5. In the stock or bonds of any incor- 
 porated city situated in one of the states of the 
 U. S. which was admitted to statehood prior to 
 Jan. 1, 1896, and which was incorporated as a 
 city, under the same or a different name, at 
 least 25 years prior to making such investment, 
 and which has not less than 20,000 inhabitants, 
 as ascertained by the U. S. or state census, or 
 any municipal census taken by authority of the 
 state, next preceding such investment, provid- 
 ed the amount of the bonds of such city, in- 
 cluding the issue in which such investment is 
 made, and its proportion, based on the valua- 
 tions of property therein for the assessment 
 for taxation next preceding such investment, 
 of the county and town debt, after deducting 
 the amount of its water debt and the amount 
 of the sinking funds which are available for 
 payment of its bonds other than water bonds, 
 does not exceed 7% of the valuation of the 
 taxable property in such city, to be ascertained 
 by the valuation of property therein for the 
 assessment of taxes, next preceding such in- 
 vestment, and provided the city issuing such 
 bonds, or the state in which it is located, has 
 not defaulted for more than 90 days in the pay- 
 ment of any of its funded indebtedness or in- 
 terest thereon, within 15 years next preceding 
 the purchase of such bonds by the Sav. Bk. 
 The provisions of this Sec. shall not authorize 
 the investment of funds in any “special assess- 
 ment” or “improvement” bonds, or other 
 bonds or obligations which are not the direct 
 obligations of the city issuing the same, and 
 for which the faith and credit of the issuing 
 city are not pledged. A city or state shall be 
 considered to be in default within the mean- 
 ing of this act while any unpaid and overdue 
 obligation, either principal or interest, shall he 
 outstanding. 
 
Savings Banks. 
 
 CONNECTICUT. 
 
 Sec. 6. In the bonds or interest-bearing ob- 
 ligations issued by a R. R. Corp. organized 
 under the laws of any of the New Eng. states, 
 and owning in fee not less than 300 miles of 
 R. R. located in said states, and which has 
 paid in dividends in cash an amount equal to 
 not less than 4% per annum on its outstanding 
 shares of capital stock in each liscal year for 
 the 5 years next preceding such investment, or 
 in the bonds or interest-bearing obligations 
 issued by a R. R., terminal, depot, bridge, tun- 
 nel, or St. Rwy. Corp., organized under the 
 laws of any of the New Eng. states or the 
 state of N. Y. assumed by a R. R. Corp. or- 
 ganized under the laws of any of the New 
 Eng. states and owning in fee not less than 
 300 miles of R. R. located in said states 
 and complying with all the provisions of 
 this Sec. ; if any such R. R. Corp. shall be 
 leased to another R. R. Corp organized under 
 the laws of any of the New Eng. states and 
 owning in fee not less than 300 miles of R. R. 
 located in said states, under a lease which pro- 
 vides for the payment by the lessee as rental 
 of an amount sufficient to pay dividends on the 
 capital stock of the lessor amounting in the 
 aggregate in each fiscal year of said lessor 
 Corp. during the term of said lease to not less 
 than 4% on its outstanding shares of capital 
 stock, such lessor shall be regarded as having 
 paid its dividends within the meaning of this 
 Sec., but in case the lessee shall hold any 
 shares of the capital stock of the lessor such 
 shares shall not be considered as outstanding 
 within the meaning of this section. 
 
 Sec. 7. In the bonds or debentures actually 
 issued by a R. R. Corp. incorporated in any 
 of the New Eng. states, at least l / 2 of the R. R. 
 of which is located in said state, whether such 
 Corp. is in possession of and is operating its 
 own R. R. or such R. R. is leased to another 
 R. R. Corp. incorporated in any one of the 
 New Eng. states, provided such bonds or de- 
 bentures shall be secured either by a Mtg. 
 which was at the date thereof, or is at the 
 time of making the investment, a 1st Mtg. on 
 not less than 75% of the R. R. of such Corp. 
 
 3 
 
CONNECTICUT. 
 
 Savings Banks. 
 
 owned in fee at the date of the Mtg., or by a 
 Refd. Mtg. which provides for the retirement 
 of all prior lien Mtg. bonds of such R. R. 
 Corp., or by a Mtg. which is a prior lien on 
 some part of the R. R. covered by a Refd. 
 Mtg. which provides for the retirement of all 
 outstanding prior lien bonds, or that if the 
 R. R. and R. R. property of such Corp. are 
 unincumbered by Mtg., such bonds or deben- 
 tures shall be issued under the authority of 
 one of said states which provides by law that 
 no such R. R. Corp. which has issued bonds 
 or debentures shall subsequently execute a 
 Mtg. upon its road, equipment, franchise, or 
 upon any of its real or personal property, 
 without including in and securing by such 
 Mtg. all bonds or debentures previously issued 
 and all pre-existing debts and liabilities, and 
 provided such Corp. has paid in dividends in 
 cash an amount equal to not less than 4% per 
 annum on all its outstanding capital stock in 
 each fiscal year for the 5 years next preceding 
 such investments. If any such R. R. Co. shall 
 hold the R. R. of another such R. R. Corp. 
 under a lease which provides for the pay- 
 ment by the lessee as rental of an amount suf- 
 ficient to pay dividends on the capital stock of 
 the lessor amounting in the aggregate in each 
 fiscal year of said lessor during the term of 
 said lease, to not less than 4% on all its out- 
 standing capital stock, such lessor shall be re- 
 garded as having paid its dividends within the 
 meaning of this Sec., but in case the lessee 
 shall hold any shares of the capital stock of 
 the lessor such shares shall not be considered 
 as outstanding within the meaning of this Sec. 
 
 Sec. 8. No bonds or other interest-bearing 
 obligations shall be made a legal investment 
 by Secs. 6 and 7 in case the authorized issue 
 thereof, with all outstanding prior debts of 
 the issuing or assuming Corp., including all 
 evidences of debt that may legally be issued 
 under any of its prior authorizations or under 
 any of its assumed prior authorizations, after 
 deducting therefrom, in case of a Refd. Mtg., 
 the bonds reserved under the provisions of 
 said Mtg. to retire prior debts at maturity, 
 
1 
 
 Savings Banks. CONNECTICUT. 
 
 shall exceed 3 times the outstanding capital 
 stock of said Corp. at the date of such in- 
 vestment. 
 
 Sec. 9. In the bonds issued by a R. R., ter- 
 minal, depot, bridge, tunnel, or St. Rwy. Corp. 
 organized under the laws of any of the New 
 Eng. states or the state of N. Y., the property 
 of which is located wholly or in part in one of 
 said states, or in the bonds issued by a R. R., 
 terminal, depot, bridge, tunnel, or St. Rwy. 
 Corp., organized under the laws of any of said 
 states, assumed by a R. R., terminal, depot, 
 bridge, tunnel, or Sc Rwy. Corp. organized 
 under the laws of said states, provided such 
 bonds shall be secured either by a Mtg. which 
 was at the date thereof, or is at the time 
 of making the investment, a 1st Mtg. on 
 not less than 75% of the R. R. owned in 
 fee at the date of the Mtg., in the case of a 
 R. R. or Si. Rwy. Corp., or the fixed property, 
 in the case of a terminal, depot, bridge, or tun- 
 nel Corp., owned by the Corp. issuing the 
 bonds, or by a Refd. Mtg. which provides for 
 the retirement of all prior lien bonds of such 
 Corp., or by a Mtg. which is a prior lien on 
 some part of the property covered by a Refd. 
 Mtg. which provides for the retirement of all 
 outstanding prior lien bonds. No bond shall 
 be made a legal investment under this Sec. 
 unless the bonds are guaranteed principal and 
 interest by endorsement by, or guaranteed 
 principal and interest by endorsement which 
 guaranty has been assumed by a R. R. Corp., 
 owning in fee not less than 300 miles of R. R. 
 in the New Eng. states, whose bonds are made 
 a legal investment under Sec. 6. No bonds 
 shall be made a legal investment by this Sec. 
 in case the Mtg. securing the bonds shall au- 
 thorize a total issue of bonds which added to 
 the total debt, described in Sec. 8, of the guar- 
 anteeing Corp., including therein the author- 
 ized amount of all previously guaranteed bond 
 issues, shall exceed 3 times the outstanding 
 capital stock of said guaranteeing Corp. at the 
 time of making said investment. 
 
 ^ Sec. 10. In the Mtg. bonds, as described in 
 Sec. 15, issued or assumed by any R. R. Corp. 
 
 5 
 
CONNECTICUT. 
 
 Savings Banks. 
 
 incorporated under the laws of the U. S., or 
 any state, provided such R. R. Corp. owned in 
 fee during each of the 5 fiscal years of such 
 R. R. Corp. next preceding the date of such 
 investment not less than 500 miles of standard 
 gauge R. R., exclusive of sidings, within the 
 U. S., and provided such R. R. Corp. has com- 
 plied during each of said fiscal years with the 
 provisions of Sec. 14, or if such Corp. owned 
 in fee less than 500 miles of such R. R., the 
 gross earnings of such Corp., as reckoned in 
 Sec. 14, shall have been not less than $10,000,000. 
 
 Sec. 11. In the Mtg. bonds, as described in 
 Sec. 15, issued or assumed by any R. R. Corp. 
 incorporated under the laws of the U. ST, or 
 any state thereof, provided during each of the 
 5 fiscal years of such R. R. Corp. next preced- 
 ing the date of such investment, its R. R. sub- 
 jected to the lien of the Mtg. securing its 
 bonds has been operated by a Corp. described 
 in, and which has complied with all the provi- 
 sions of, Secs. 10 and 14. No bonds shall be 
 made a legal investment by this Sec. unless the 
 bonds are guaranteed principal and interest by 
 endorsement by, or guaranteed principal and 
 interest by endorsement which guaranty has 
 been assumed by, the Corp. operating the R. R. 
 covered by the Mtg. securing the bonds and 
 which has complied with all the provisions of 
 Secs. 10 and 14. 
 
 Sec. 12. In the Mtg. bonds as described in 
 this act issued or assumed by any terminal, 
 depot, bridge, or tunnel Co., incorporated un- 
 der the laws of the U. S., or any state, pro- 
 vided the property of such terminal, depot, 
 bridge, or tunnel Co. is used by 1 or more R. 
 R. Corps, described in, and which have com- 
 plied with all the provisions of, Secs. 10 and 
 14. No bond shall be made a legal investment 
 by this Sec. unless the bond is guaranteed 
 principal and interest by endorsement by, or 
 guaranteed principal and interest by endorse- 
 ment which guaranty has been assumed by, 1 
 or more R. R. Corps, described in, and which 
 has complied with all the provisions of, Secs. 
 10 and 14. 
 
 Sec. 13. In the Mtg. bonds as described in 
 6 
 
 
 
Savings Banks. 
 
 CONNECTICUT. 
 
 Sec. 15 issued or assumed by any R. R. Corp. 
 incorporated under the laws of the U. S., or 
 any state, provided, during each of the 5 fiscal 
 years of such R. R. Corp. next preceding the 
 date of such investment, such R. R. Corp. 
 owned in fee not less than 100 miles of stand- 
 ard gauge R. R., exclusive of sidings, within 
 the U. S., and provided such R. R. Corp. has 
 complied during each of said fiscal years with 
 the provisions of Sec. 14. No bonds shall be 
 made a legal investment by this Sec. unless the 
 bonds are guaranteed principal and interest by 
 endorsement by, or guaranteed principal and 
 interest by endorsement which guaranty has 
 been assumed by, a Corp, described in, and 
 which has complied with all the provisions of, 
 Secs. 10 and 14, nor unless it complies with the 
 provisions of Sec. 16. 
 
 Sec. 14. Any R. R. Corp described in Secs. 
 to and 13 shall comply with the provisions of 
 this Sec. during each of the 5 fiscal years of 
 such R. R. Corp. next preceding the date of 
 such investment, before any of its Mtg. bonds, 
 as described in Sec. 15 shall be made a legal 
 investment. Such R. R. Corp. shall have paid 
 the matured principal and interest of all in- 
 debtedness and shall have paid in dividends in 
 cash to its stockholders an amount equal to at 
 least 4% upon all its outstanding capital stock; 
 the gross earnings from the operation of the 
 property of such R. R. Corp., including therein 
 the gross earnings of all R. R.s. leased and 
 operated or controlled and operated by said 
 Corp., and the gross earnings from the sale of 
 coal from mines owned or controlled by it, 
 shall not have been less in amount than 5 
 times the amount necessary to pay the interest 
 payable upon its entire outstanding indebted- 
 ness, the rentals of all leased lines, and the in- 
 terest on all outstanding indebtedness of R. Rs. 
 controlled and operated which are not owned 
 by said Corp., after deducting from said inter- 
 est and rentals interest and dividends received 
 from the stocks, bonds, or notes of R.R. Corps, 
 not operated by said Corp., which have been 
 deposited with a trustee as the only security 
 for the payment of bonds or notes issued by 
 
 7 
 
CONNECTICUT, 
 
 Savings Banks. 
 
 said Corp., but not in excess of the interest on 
 said last named bonds or notes. 
 
 Sec. 15. Whenever the term “mortgage 
 bonds” is used in Secs. 10 to 20, inclusive, it 
 shall mean either (1) That the Mtg. securing 
 the bonds was at the date thereof, or is at the 
 date of such investment, a 1st Mtg. on not less 
 than 75% of the R. R., in the case of a R. R. 
 Corp., or the fixed property, in the case of a 
 terminal, depot, bridge, or tunnel Co., owned 
 in fee at the date of the Mtg. by the Corp. 
 which executed the Mtg. and issued the bonds ; 
 that 75% of the R. R. subject to the lien of 
 said Mtg. is connected; that the date of said 
 Mtg. is at least 5 years prior to the date of 
 such investment; unless the Corp. issuing, as- 
 suming, or guaranteeing the bond has complied 
 with Sec. 14 for each of the 10 fiscal years of 
 such Corp. next preceding the. date of such 
 investment; but a Mtg. given in substitution 
 for and not greater in amount than such Mtg., 
 and covering the same R. R. or property, shall 
 be considered to be in accordance with this re- 
 quirement; (2) that if the Mtg. securing the 
 bonds was at the date thereof, or is at the date 
 of such investment, not a 1st Mtg. on not less 
 than 75% of the railroad owned in fee at the 
 date of the Mtg., it is a 1st Mtg. on at least 
 75% of the R. R. subject to the lien of said 
 Mtg. at the date thereof ; but if any stocks or 
 bonds are deposited with the trustee of said 
 Mtg. as part security therefor, representing or 
 covering R. R. mileage not owned in fee, the 
 bonds secured by said Mtg. shall not become 
 legal investments unless said Corp. owns in 
 fee at least 75% of the total mileage which is 
 subject to the lien of such Mtg., including the 
 mileage which is represented or covered by 
 said stocks or bonds; that 75% of the R. R. 
 subject to the lien of said Mtg. is connected; 
 that the date of said Mtg. is at least 5 years 
 prior to the date of such investment; unless 
 the Corp. issuing, assuming, or guaranteeing 
 the bond has complied with Sec. 14 for each 
 of the 10 fiscal years of such Corp. next pre- 
 ceding the date of such investment; but a 
 Mtg. given in substitution for and not greater 
 
 3 
 
Savings Banks, 
 
 CONNECTICUT. 
 
 in amount than such Mtg., covering the same 
 R. R. or property, shall be considered to be in 
 accordance with this requirement; (3) that 
 the Mtg. securing the bonds was at the date 
 thereof, or is at the date of such investment, 
 a 1st Mtg., or a Mtg. or trust indenture which 
 is in effect a 1st Mtg. upon all the R. R., sub- 
 ject to the lien of said Mtg. or trust indenture 
 by virtue of the irrevocable pledge with the 
 trustee thereof of an entire issue or issues of 
 bonds which are a first lien, upon the R. R. of 
 a R. R. Corp. which is owned and operated, 
 controlled and operated, or leased and oper- 
 ated by the Corp. issuing or assuming said 
 bonds; that 75% of the R. R. subject to the 
 lien of said Mtg. is connected; that the date 
 of said Mtg. is at least 5 years prior to the 
 date of such investment, unless the Corp. 
 issuing, assuming, or guaranteeing the bonds 
 has complied with Sec. 14 for each of the 10 
 fiscal years of such Corp. next preceding the 
 date of such investment; but a Mtg. given in 
 substitution for and not greater in amount 
 than such Mtg., and covering the same R. R. 
 property, shall be considered to be in accord- 
 ance with this requirement; (4) that the Mtg. 
 securing the bonds was at the date thereof, 
 or is at the date of such investment, a Refd. 
 Mtg. which provides for the retirement of all 
 prior lien Mtg. bonds of said Corp. outstand- 
 ing at the time of said investment, and cover- 
 ing at least 75% of the R. R. owned in fee by 
 said Co. at the date of said Mtg. No Mtg. is 
 to be regarded as a Refd. Mtg. under the pro- 
 visions of this Sec. unless the bonds which it 
 secures mature at a later date than any bond 
 which it is given to refund, or, in case bonds 
 are issued to mature at an earlier date than 
 any bond which it is given to refund, the Mtg. 
 contains the provisions that bonds issued to 
 mature at an earlier date may be retired by a 
 like amount of bonds reissued under said 
 Mtg. ; (5) that the Mtg. securing the bonds is 
 a prior lien to a Refd. Mtg. described above, 
 on some part of the R. R. or R. R. property 
 covered by said Refd. Mtg., provided the 
 bonds issued under such Mtg. are to be re- 
 
 9 
 
CONNECTICUT. Savings Banks. 
 
 funded by said Refd. Mtg., and the property 
 covered by said prior lien Mtg. is operated by, 
 and its operations included in, those of the 
 R. R. Corp. issuing said refunding mortgage. 
 
 Sec. 16. No bond shall be made a legal in- 
 vestment by Sec. io in case the Mtg. securing 
 the same shall authorize a total issue of bonds, 
 which, with all outstanding prior debts of the 
 issuing or assuming Corp., including all bonds 
 not issued that may legally be issued under 
 any of its prior debts, or of its assumed prior 
 debts, after deducting therefrom in case of a 
 Refd. Mtg., the bonds reserved under the pro- 
 visions of said Mtg. to retire prior debts at 
 maturity, shall exceed 3 times the outstanding 
 capital stock of said Corp. at the date of such 
 investment. No bond shall be made a legal 
 investment by Secs. 11, 12, and 13 in case the 
 Mtg. securing the same shall authorize a total 
 issue of bonds, which added to the total debt, 
 as defined in this Sec., of the guaranteeing 
 Corp., including therein the authorized amount 
 of all previously guaranteed bond issues, shall 
 exceed 3 times the capital stock of said guar- 
 anteeing Corp. outstanding at the time of 
 making said investment. In case of a Mtg. 
 executed prior to the passage of this act, un- 
 der which the total amount of bonds which 
 may be issued is not specifically stated, the 
 amount of bonds outstanding thereunder at 
 the date of such investment shall be consid- 
 ered as the total authorized issue. 
 
 Sec. 17. Bonds which have been or shall 
 become legal investments under any of the 
 provisions of Secs. 10 to 20, inclusive, shall 
 not be rendered illegal, although the Corp. 
 issuing, assuming, or guaranteeing such bonds, 
 shall fail for a period not exceeding 2 suc- 
 cessive fiscal years to comply with the require- 
 ments of Secs. 10 and 14, but no further in- 
 vestment in the bonds issued, assumed, or 
 guaranteed by said Corp. shall be made after 
 the first fiscal year of such failure; but if, 
 after the expiration of said period, said Corp. 
 complies for the following fiscal year with all 
 the requirements of Secs. 10 and 14 it shall be 
 regarded as having complied therewith during 
 
 10 
 
Savings Banks. 
 
 CONNECTICUT. 
 
 said period, and thereupon said bonds shall be 
 legal investments, but in case of any subse- 
 quent failure to comply with said Secs, io and 
 14 the bonds of said Corp. shall not be pur- 
 chased until said Corp shall have complied 
 each year for 5 successive years with said 
 Secs. 10 and 14. 
 
 Sec. 18. Bonds which have been or shall 
 become legal investments under any of the 
 provisions of Secs. 10 to 20, inclusive, shall not 
 be rendered illegal, because the property upon 
 which they are secured has been or shall be 
 conveyed to or legally acquired by another 
 R. R. Corp., and the Corp. which issued or 
 assumed said bonds has been or shall be con- 
 solidated with another R. R. Corp., if the con- 
 solidated or purchasing Corp. shall assume the 
 payment of said bonds and so long as it shall 
 continue to pay regularly interest, or divi- 
 dends, or both, upon the securities issued 
 against, in exchange for, or to acquire the 
 stock of the Corp. consolidated, or the prop- 
 erty purchased, or upon securities subsequent- 
 ly issued in exchange or substitution therefor, 
 to an amount at least equal to 4% per annum 
 upon the capital stock outstanding at the time 
 of such consolidation or purchase, of said 
 Corp. which issued or assumed said bonds. 
 
 Sec. 19. If a R. R. Corp. which has com- 
 plied with all the requirements of Secs. 10 and 
 14 except that the period of compliance is 
 less than 5 years, shall be, or shall have been, 
 consolidated or merged with, or its R. R. pur- 
 chased and all the debts of such Corp. as- 
 sumed by, another R. R. Corp. incorporated 
 under the laws of the U. S., or any state, the 
 Corp. so succeeding shall be considered as 
 having complied with all the provisions of said 
 Secs, during those successive years next pre- 
 ceding the date of such consolidation, merger, 
 or purchase in which said consolidated, merged, 
 or purchased Corps., if considered as one con- 
 tinuous Corp. in ownership and possession 
 would, taken together, have so complied, pro- 
 vided in the case of a R. R. Corp. which has 
 complied with all the requirements of said 
 Secs., except that the period of compliance is 
 
CONNECTICUT. 
 
 Savings Banks. 
 
 less than 5 years, said succeeding Corp. shall 
 continue so to comply for a further period 
 which shall make such compliance equivalent 
 to at least 5 successive years. 
 
 Sec. 20. If, by means of consolidation, merg- 
 er, or purchase, a R. R. Corp. shall own and 
 possess the properties and franchises which, 
 prior thereto, belonged to similar Corps., and, 
 during the years next preceding such con- 
 solidation, merger, or purchase, one or more 
 of said Corps., have regularly paid in cash to 
 stockholders dividends in amounts equaling or 
 exceeding 4% per annum upon the entire cap- 
 ital stock of the successor Corp. outstanding 
 at the time of the investment, such successor 
 Corp. shall be considered as having paid such 
 dividends during the same period of years. 
 
 Sec. 21. Sav. Bks. may invest not exceeding 
 2% of their deposits and surplus in equipment 
 trust notes, bonds, or certificates issued by, or 
 which are guaranteed by endorsement both as 
 to principal and interest by, or which are se- 
 cured by lease of equipment to, a R. R. Corp. 
 which, in case of a R. R. Corp. incorporated 
 under the laws of any of the New Eng. states, 
 has complied with Sec. 6, or which, in the case 
 of a R. R. Corp. incorporated under the laws 
 of any other state, or of the U. S., has com- 
 plied with all the provisions of Secs. 10 and 
 14, provided said notes, bonds, or certificates 
 are secured by a 1st lien on, or by a lease and 
 conditional sale of, new standard R. R. equip- 
 ment free from other encumbrances, for the 
 purchase of which said notes, bonds, or cer- 
 tificates were issued at not exceeding 90% of 
 the purchase price thereof, and provided the 
 instrument under which such notes, bonds, or 
 certificates are issued, or the lease of such 
 equipment to the R. R. Corp., provides for 
 the proper maintenance of the equipment cov- 
 ered thereby and for the payment of the en- 
 tire issue of such notes, bonds, or certificates 
 in not exceeding 15 annual or 30 semi-annual 
 instalments, without the release of any part of 
 the lien or interest in any of the equipment 
 securing such notes, bonds, or certificates un- 
 til the entire issue of such series of notes, 
 
Savings Banks. 
 
 CONNECTICUT. 
 
 bonds, or certificates shall have been paid or 
 redeemed. No equipment trust notes, bonds, 
 or certificates shall be made a legal investment 
 by this Sec. in case the series authorizes an 
 amount which, added to the total debt as de- 
 fined in Sec. 8 in the case of a R. R. Corp. 
 organized under the laws of any of the New 
 Eng. states, or Sec. 1 6 in the case of a R. R. 
 Corp. organized under the laws of any other 
 state or of the U. S., which issued or guaran- 
 teed or is the lessee of the equipment securing 
 such equipment trust notes, bonds, or certifi- 
 cates, including therein the outstanding 
 amounts of all previously issued series of such 
 equipment trusty notes, bonds, or certificates, 
 shall exceed 3 times the capital stock of such 
 R. R. Corp. outstanding at the time of making 
 said investment. 
 
 Sec. 22. Sav. Bks, may invest not exceeding 
 2% of their deposits and surplus in bonds is- 
 sued by any St. Rwy. Corp. incorporated in 
 this state, the Rwy. of which is located wholly 
 or in part therein, provided such bonds are 
 secured by a Mtg. which was at the date of the 
 Mtg. or is at the date of the investment a 1st 
 Mtg. on not less than 75% of the Rwy. of such 
 Corp. owned in fee at the date of the Mtg., 
 and provided the gross earnings of said Corp. 
 each fiscal year for the 5 years next preceding 
 the date of such investment, were not less than 
 $100,000., and that said Corp. in each of said 
 years earned and paid in dividends in cash an 
 amount equal to at least 4% per annum upon 
 the outstanding capital stock, and provided, at 
 the date of any such dividend, the outstanding 
 capital stock is equal to at least Vz of the debt 
 of such corporation. 
 
 Sec. 23. Sav. Bks. may invest not exceeding 
 2% of their deposits and surplus in Mtg. bonds 
 and other interest-bearing obligations of any 
 water Co. supplying water for domestic use to 
 communities in this state having a population 
 of not less than 50,000 whose franchise is an 
 exclusive one and unlimited in time, provided 
 the amount of all the outstanding debts of 
 such Co. does not exceed its capital stock, and 
 provided such water Co. has earned each year 
 
 13 
 
CONNECTICUT. 
 
 Savings Banks. 
 
 and paid in cash from its officially reported 
 net earnings, as shown by its annual report or 
 other sworn official statement, to municipal, 
 state, or U. S. authorities, dividends of not 
 less than 4% per annum on its entire outstand- 
 ing capital stock, for a period of 4 years next 
 preceding the making of the investment. 
 
 Sec. 24. Sav. Bks. may invest not exceeding 
 2% of their deposits and surplus in bonds of 
 any telephone Co. incorporated in this state, 
 whose property is located chiefly in this state, 
 which are secured by a 1st Mtg. upon at least 
 75% of the property of such Co., including its 
 franchises, rights, and privileges, and limiting 
 the amount of bonds issuable thereunder to 
 75% of the valuation of the property mort- 
 gaged, excluding any valuation of said fran- 
 chises, rights, and privileges, and providing the 
 gross income of such telephone Co. shall have 
 been not less than $2,000,000. per annum dur- 
 ing each of the 5 fiscal years of such telephone 
 Co. next preceding the date of such investment. 
 
 Sec. 25. Sav. Bks. may invest not exceeding 
 2% of their deposits and surplus in bonds of 
 any telephone Co. incorporated in any of the 
 New Eng. states, or in the state of N. Y., and 
 secured by a 1st Mtg. upon at least 75% of 
 the property of such telephone Co., or by the 
 deposit with a Tr. Co. incorporated under the 
 laws of one of the New Eng. states or of the 
 state of N. Y. of bonds and shares of stock of 
 other telephone Corps, under an indenture of 
 trust which limits the amount of bonds so 
 secured to 75% of the value of the securities 
 deposited as stated and determined in said in- 
 denture, and provided the gross income of 
 such telephone Co. shall have been not less 
 than $25,000,000. per annum during each of the 
 5 fiscal years of such telephone Co. next pre- 
 ceding the date of such investment. No bond 
 of a telephone Co. shall be made a legal in- 
 vestment under Secs. 24 and 25 unless during 
 each of the 5 fiscal years of such telephone Co. 
 next preceding the date of such investment 
 said telephone Co. shall have paid the ma- 
 tured principal and interest of all its indebt- 
 edness, and shall have paid, during each of 
 
 14 
 
Savings Banks. 
 
 CONNECTICUT. 
 
 said years, in cash dividends an amount equal 
 to not less than 6% per annum on all its out- 
 standing issues of capital stock, and the divi- 
 dends paid on the capital stock of such tele- 
 phone Co. shall not have been less than the 
 total amount necessary to pay the interest 
 upon its entire outstanding indebtedness. 
 
 Sec. 26. Sav. Bks. may invest in the capital 
 stock of any Bk. or Tr. Co. located in this 
 state, or in the city of N. Y. in the state of N. 
 Y., or in the city of Boston in the state of 
 Mass., but no Sav. Bk. shall hold by way of 
 investment and as security for loans, more 
 than 20% of its deposits in the stocks of such 
 Bks. or Tr. Cos., at par value, nor more than 
 3% of its deposits, nor more than $100,000. 
 of par value in, nor more than Y of the cap- 
 ital stock of, any such Bk. or Tr. Co. The 
 provisions of this Sec. shall not render illegal 
 any such investments now owned by any Bk. 
 or trust company. 
 
 Sec. 27. Sav. Bks. may invest in loans se- 
 cured by 1st Mtg. on unencumbered real es- 
 tate, not to exceed 50% of the value of such 
 real estate, located in this state, or in the 
 county of Providence or Washington in the 
 state of R. I., or in the county of Hampden or 
 Berkshire in the state of Mass., or in the 
 county of Dutchess, Putnam, or Westchester 
 in the state of New York. 
 
 Sec. 28. When any loan is made by a Sav. 
 Bk.. upon real estate the security shall be ap- 
 praised by 2 or more suitable persons, well 
 known in the community where such loan is 
 made, one of whom shall be a trustee of the 
 Bk. making the loan. Such appraisal shall ex- 
 press upon its face the amount at which such 
 property is appraised, and, with a certificate of 
 title or a title Ins. policy, shall be lodged and 
 kept with the institution making such loan. No 
 loan shall be made by any Sav. Bk. to any 
 Corp. or Assoc, or ecclesiastical society se- 
 cured by Mtg. upon its property, unless the 
 same shall be accompanied by the individual 
 guaranty of some responsible party or parties, 
 or by other collateral security of value equal 
 to the amount of the sum loaned. The direc- 
 ts 
 
CONNECTICUT. 
 
 Savings Banks. 
 
 tors or trustees of any Bk. consenting to any 
 loan contrary to the provisions of this Sec. 
 shall be individually responsible for any loss 
 by reason of such loan. 
 
 Sec. 29. Sav. Bks. may invest not exceeding 
 20% of their deposits and surplus in notes 
 secured by pledge of stock or bonds as collat- 
 eral, provided the Corp. issuing such stock or 
 bonds shall have paid thereon dividends or 
 interest at the rate of not less than 4% per 
 annum during the 2 years next preceding the 
 time when such loan is made ; or by the pledge 
 of any stock or bonds or other obligations 
 which under the provisions of this act may be 
 purchased by Sav. Bks.; but the market value 
 of any securities given to secure any collateral 
 loan shall be at least 20% in excess of the 
 amount of the loan and not more than 5% 
 of the aggregate deposit in any Sav. Bk. shall 
 be loaned on the stock, bonds, or other obliga- 
 tions of one Corp. ; or by the pledge of de- 
 posit accounts and books in Sav. Bks. in this 
 state to an amount not exceeding the balance 
 due from said Sav. Bks. on such deposit ac- 
 count. 
 
 Sec. 30. Sav. Bks. may invest not exceeding 
 T 0 % of their deposits and surplus in notes, 
 each of which shall be the joint and several 
 obligation of 2 or more parties, all residents of 
 this state, but no Sav. Bk. shall loan on per- 
 sonal security to one person more than 3% 
 of its deposits at the time of making such 
 loan. No Sav. Bk shall buy, or lend any 
 money upon, any obligations on which only 
 one person or firm shall be holden without 
 taking additional security for the same equiva- 
 lent to the guaranty or endorsement of some 
 other responsible party. 
 
 Sec. 31. No Sav. Bk. shall expend in the 
 purchase or construction of any building, for 
 the purpose, in whole or in part, of accommo- 
 dating the business of such Bk., a greater 
 sum than may in the opinion of the Bk. Corns, 
 properly be taken from the surplus of such 
 Bk., after allowing for depreciation of its 
 assets, and such expenditures shall in all cases 
 be subject to the approval of the Bk. Corns. 
 
Savings Banks. 
 
 CONNECTICUT. 
 
 Sec. 32. Sav. Bks. may deposit in incorpo- 
 rated Bks. or Tr. Cos. located in this state or 
 the state of N. Y., Mass., or R. I., or the city 
 of Phila., but such deposits shall not in any 
 case exceed 30% of the capital stock, surplus, 
 and undivided profits of such depositary. 
 
 Sec. 33. No Sav. Bk shall demand or re- 
 ceive on any loan, either as bonus, commission, 
 or tax, or in any other way, directly or indi- 
 rectly, more than 6% per annum, but taking 
 interest in advance, for a period not to ex- 
 ceed 6 months, and reimbursement of any 
 money paid by a Bk. for Ins. or taxes on prop- 
 erty mortgaged to it, shall not be a violation 
 of this section. 
 
 Sec. 34. When any loan or investment is 
 made by any Sav. Bk. the names of the direc- 
 tors or trustees consenting thereto shall be en- 
 tered upon the records of such Bk., and said 
 records shall be open at all times to the in- 
 spection of the corporators and auditors of 
 such Bk. and the Bk. Corns., and be prima facie 
 evidence of the truth of the statements there- 
 in contained. 
 
 Sec. 36. The provisions of this act shall not 
 render illegal the investment in, nor the in- 
 vestment hereafter in, any bonds or interest- 
 bearing obligations issued or assumed by a 
 R. R. Corp., which were a legal investment at 
 the time of the passage of this act, so long as 
 such bonds or interest-bearing obligations con- 
 tinue to comply with the laws in force prior to 
 the passage of this act, but no such bond or 
 interest-bearing obligation that fails, subse- 
 quent to the passage of this act, to comply 
 with said laws shall again be a legal invest- 
 ment unless such bonds or interest-bearing 
 obligations comply with the provisions of this 
 act. 
 
 Sec. 37. If any St. Rwy. Co., the bonds of 
 which are a legal investment, prior to the pas- 
 sage of this act, shall fail, in any fiscal year 
 subsequent to the passage of this act, to pay 
 dividends equal to 4% upon its outstanding 
 capital stock, the bonds of such Rwy. Co. shall 
 cease to be a legal investment, until such Co. 
 
 17 
 
CONNECTICUT. 
 
 Savings Banks. 
 
 has complied with all the provisions of Sec. 
 22 of this act. 
 
 Sec. 38. Prior to the 1st day of Nov., 1913, 
 the Bk. Corns, shall ascertain what bonds and 
 other interest-bearing obligations are legal in- 
 vestments under the provisions of this act and 
 shall also ascertain what bonds and obliga- 
 tions are then legal investments under the pro- 
 visions of Sec. 36, and within the first 10 days 
 of Nov., 1913, said Bk. Corns, shall send to 
 each Sav. Bk. and to each Bk. and Tr. Co. 
 having a Sav. Dept, a certificate, stating over 
 their signatures that upon investigation they 
 find that the bonds and obligations specified in 
 one list in said certificate are authorized as 
 legal investments by the provisions of this 
 act, and that the bonds and obligations speci- 
 fied in a 2d list therein are authorized as legal 
 investments under the provisions of Sec. 36. 
 
 Sec. 39. Within the first 10 days of the 
 month of Nov., 1913, and of the months of 
 May and Nov. in each year thereafter, said Bk. 
 Corns, shall send to each Sav. Bk. and to each 
 Tr. Co. having a Sav. Dept, a similar certificate. 
 
 Sec. 40. Said certificate shall be prima facie 
 evidence of the correctness of the findings of 
 said Corns., and shall so continue until the is- 
 suance of the next certificate of said Corns., 
 or of an intermediate certificate correcting 
 and changing the list of legal investments in 
 the certificate last issued. The purchase of 
 any bond or obligation specified in any such 
 certificate made before said respective bonds 
 or obligations are withdrawn or omitted by 
 the Bk. Corns, in a subsequent certificate issued 
 by them shall be a legal investment under this 
 act. 
 
 Sec. 41. Any person financially interested 
 in any finding of the Bk. Corns, as to any bond 
 or obligation, may take an appeal therefrom 
 to the superior court next to be holden at 
 Hartford, which court shall have power to in- 
 quire into and render a judgment whether 
 said bond or obligation comes within the pro- 
 visions of this act as an authorized investment 
 for Sav. Bks. In case of such an appeal due 
 service thereof shall be made upon the Bk. 
 
 18 
 
Savings Banks. 
 
 CONNECTICUT. 
 
 Corns, at least 12 days before the return day 
 of said appeal. 
 
 Sec. 42. In the Secs, of this act which re- 
 late to R. R. bonds the word “debt” shall be 
 construed to mean obligations issued or as- 
 sumed, evidenced by a series of bonds or other 
 interest-bearing instruments which mature at 
 a time or times exceeding 3 years after their 
 date, and the term “railroad corporation” shall 
 be construed to mean a Corp. which owns or 
 is in possession of and operating a R. R. or 
 Rwy. of the class usually operated by steam 
 power, St. Rwy. Corps, are not R. R. Corps, 
 within the meaning of this act. 
 
 [The following paragraphs 8, 9, and io, of 
 Sec. 3428 of the Gen. Statutes are herewith 
 published because of the provisions of Sec. 36 
 of Chap. 127 of the Public Acts of 1913 :] 
 
 (8) in the bonds of any R. R. Co. organized 
 under the laws of any of the states mentioned 
 in this sec., and which bonds are secured by a 
 ist Mtg. as the only Mtg. security given by 
 such R. R. Co. upon some portion of the R. R. 
 owned by it, or given by a R. R. Co., a major- 
 ity of the capital stock in which is owned by 
 the R. R. Co. issuing such bonds, upon some 
 portion of the R. R. owned by it but leased or 
 operated by the R. R. Co. issuing such bonds, 
 and which portion of such R. R. in either case 
 shall be located wholly or in part in one or 
 more of the states mentioned in this Sec., pro- 
 vided the entire R. R. of such Co. is located 
 wholly within the U. S. ; in the consolidated 
 bonds of any R. R. Co. incorporated by this 
 state and authorized to issue such bonds to re- 
 tire the entire funded debt of such Co. ; provid- 
 ed, that in every case such Co. shall have paid 
 each year, for a period of not less than 5 years 
 next previous to such investment, in addition 
 to the interest on its funded indebtedness, divi- 
 dends of not less than 4% per annum upon its 
 entire capital stock outstanding; and provided 
 further, that said outstanding capital stock at 
 the time of such investment equals or exceeds 
 in amount 1 / t > of the entire outstanding issue 
 
 19 
 
CONNECTICUT. 
 
 Sayings Banks. 
 
 of such bonds; (9) in the bonds of the fol- 
 lowing-named R. R. Cos., viz. : Boston & Al- 
 bany R. R. Co., Boston & Lowell R. R. Co., 
 Boston & Maine R. R. Co., Concord & Mon- 
 treal R. R. Co., Fitchburg R. R. Co., Harlem 
 River & Portchester R. R. Co., Maine Central 
 R. R. Co., New Eng. R. R. Co., N. Y. & New 
 Eng. R. R. Co., N. Y., New Haven & Hartford 
 R. R. Co., and Old Colony R. R. Co. ; also the 
 following securities : Central R. R. Co. of N. J., 
 Gen. Mtg. 5% gold bonds, due July 1, 1987; 
 Burlington, Cedar Rapids & Northern Rwy. 
 Co. system, Cedar Rapids, Iowa Falls & North- 
 western Rwy. Con. 1st Mtg. 5% bonds, due 
 Oct. 1, 1921, and Burlington, Cedar Rapids & 
 Northern Rwy. Co. Con. 1st Mtg. and Col. Tr. 
 5% bonds, due Apr. 1, 1934; Great Northern 
 Rwy Co. system, St. Paul, Minneapolis, & 
 Manitoba R. R. Co., Montana Extension, 4% 
 bonds, due June 1, 1937 ; Pacific Extension 
 Mtg. 4% bonds, due July 1, 1940; Montana 
 Cent. Rwy. Co. 1st Mtg. 5% and 6 % bonds, 
 due July 1, 1937, and Wilmar & Sioux Falls 
 Rwy. Co. Tst Mtg. 5% bonds, due June 1, 1938; 
 111 . Cent. R. R. Co. system, Chicago, St. Louis, 
 and New Orleans R. R. Co. Con. Mtg. 5% 
 and 3P>% bonds, due June 15, 1951 ; Chicago 
 & Northwestern Rwy. Co. system, Chicago, St. 
 Paul, Minneapolis, & Omaha Rwy. Co., Con. 
 Mtg. 6% bonds, due June 1, 1930, and in the 
 Mtg. bonds heretofore issued which said Con. 
 Mtg. 6% bonds are to retire at maturity; 
 Chicago & Eastern 111 . R. R. Co., Gen. Con. 
 and 1st Mtg. 5% bonds, due Nov. 1, 1937, and 
 in the Mtg. bonds heretofore issued, which 
 said Gen. Con. and 1st Mtg. 5% bonds are to 
 retire at maturity; Minneapolis and St. Louis 
 R. R. Co. 1st and Refd. Mtg. 4% bonds, due 
 Mar. t, 1949, and in the Mtg. bonds heretofore 
 issued which said 1st and Refd. bonds are to 
 retire at maturity; Milwaukee & Northern R. 
 R. Co. Con. Mtg. 6% bonds, due June 1, 1913, 
 and in the Mtg. bonds heretofore issued which 
 said Con. 6% bonds are to retire at maturity; 
 Atlantic Coast Line R. R. Co, 1st Con. Mtg. 
 4% gold bonds, due July 1, 1952^ and in the 
 Mtg. bonds heretofore issued which said 1st 
 
 20 
 
Savings Banks. 
 
 CONNECTICUT 
 
 Con. Mtg. bonds are to retire at maturity; 
 Terminal R. R. Assoc, of St. Louis Gen. Mtg. 
 Refd. 4% Sink. Fd. gold bonds of 1953, and in 
 the Mtg. bonds heretofore issued which said 
 Gen. Mtg. bonds are to retire at maturity ; St. 
 Louis, Iron Mountain & Southern R. R. Co., 
 River & Gulf Div., 1st Mtg. 4% bonds, due 
 May 1, 1933 ; Buffalo & Susquehanna R. R. Co. 
 1 st Mtg. 4% gold bonds, due in 1951; ( I0 ) 
 any Gen. or Con. Mtg. bonds issued by any of 
 the following-named R. R. Cos. to retire all of 
 the outstanding prior Mtg. bonds secured upon 
 the property covered by such Gen. or Con. 
 Mtg. : Chicago & Northwestern Rwy. Co., Chi- 
 cago, Burlington & Quincy R. R. Co., Chicago, 
 Milwaukee & St. Paul Rwy. Co., Chicago, Rock 
 Island & Pac. Rwy Co., Chicago & Alton R. R. 
 Co., Cleveland & Pittsburg R. R. Co., Lake Shore 
 & Mich. South. R. R. Co.. Mich. Cent. R. R. Co., 
 Morris & Essex R. R. Co., N. Y. Cent. & Hudson 
 Riv. R. R. Co., Penn. R. R. Co., St. Paul, Minne- 
 apolis & Manitoba Rwy. Co., Eastern Rwy. Co. 
 of Minn., North. Div., and in the Mtg. bonds 
 hitherto issued which such consolidated or 
 Gen. Mtg. bonds are to retire at maturity; 
 Louisville & Nashville R. R. Co., and in the 
 Mtg. bonds hitherto issued which such Con. 
 or Gen. Mtg. bonds are to retire at maturity; 
 provided, that at no time within 5 years next 
 preceding the date of such investment in such 
 Gen. or Con. Mtg. bonds issued by any of the 
 R. R. Corps, last named shall such R. R. 
 Corp. have failed to pay regularly and punctu- 
 ally the principal, at maturity or as extended, 
 and interest on all its Mtg. indebtedness, and, 
 in addition thereto, dividends upon all its out- 
 standing capital stock during the preceding 5 
 years; and provided further, that at the date 
 of every such dividend the outstanding capital 
 stock of such R. R. Corp. shall have been 
 equal to at least of the total Mtg. indebted- 
 ness of such R. R. Corp., including all bonds 
 issued or to be issued under any Mtg. secur- 
 ing any bonds in which such investment shall 
 be made. No bond of any R. R. Corp. named 
 in this Sec. shall be a legal investment for a 
 Sav. Bk. when such Corp., or the system of 
 
 21 
 
CONNECTICUT. State Banks and Trust Companies. 
 
 which it is a part, shall fail to pay dividends 
 on all of its capital stock; and this Sec. shall 
 not be held to authorize any investment in 
 the bonds of any Corp. operating its R. R. ex- 
 clusively by any means other than steam as a 
 motive power, or in the bonds of any street 
 railway company. 
 
 Chap. 171 of the public acts of 1903 as 
 amended by Chap. 184 of the public acts of 
 1905 is hereby amended to read as follows : 
 Sav. Bks. may invest their deposits and sur- 
 plus in the 1st Mtg. bonds of the Hartford St. 
 Rwy. Co., and the Fair Haven and Westville 
 R. R. Co., and in all bonds of the Con. Rwy. 
 Co., and the Connecticut Rwy. and Light. Co. 
 
 Sec. 3439. No Sav. Bk. shall demand or re- 
 ceive on any loan, either as bonus, commission, 
 or tax, or in any other way, directly or indi- 
 rectly, more than 6% a year, and at that rate 
 for a longer or shorter period; but the taking 
 of interest in advance for a period not to ex- 
 ceed 6 months, and the reimbursement of any 
 money paid by a Bk. for Ins. on property 
 mortgaged to it, shall not be a violation of 
 this section. 
 
 Sec. 3446. No officer, director, or trustee 
 of a Sav. Bk. shall be a borrower, or surety 
 for a borrower, of any of its funds, or re- 
 ceive any money or valuable thing, for nego- 
 tiating, procuring, or recommending any such 
 loan from such Sav. Bk., or for selling or aid- 
 ing in the sale of any stocks or securities to 
 such Sav. Bk. The word “director” or “trus- 
 tee” as used in this Sec. shall not include any 
 incorporator of any Bk. or Tr. Co. unless such 
 incorporator shall have been elected as a di- 
 rector or trustee and shall have accepted such 
 office. 
 
 STATE BANKS AND TRUST COMPANIES. 
 
 Sec. 35. All Bks. and Tr. Cos. maintaining 
 a Sav. Dept., or soliciting or receiving de- 
 posits as savings, shall invest all such deposits 
 so received according to the requirements of 
 the Gen. statutes concerning the investment 
 of deposits in Sav. Bks.; and said investments 
 
 22 
 
State Banks and Trust Companies. CONNECTICUT. 
 
 shall be segregated and set apart and not 
 mingled with other assets of such Bk. or Tr. 
 
 C '' nrrmnnips ^ ^ 
 
 Sec. 8. * * * Such Corp. * * * may loan 
 
 money secured by real estate Mtgs. located 
 in this state or on personal security; it may 
 purchase and hold real estate situated in this 
 state, provided that not more than 25% of 
 the capital, surplus, and undivided profits of 
 any such Corp. shall be at any time invested 
 in real estate and not more than 25% of its 
 commercial deposits shall be loaned on real 
 estate security, but this limitation shall not 
 apply to funds held by any State Bk. or Tr. 
 Co. in its Sav. Dept. * * * 
 
 Sec. 3401.* No State Bk. or Tr. Co. shall 
 make any loan or discount on a pledge of its 
 own stock, or establish any branch office, or 
 agency thereof, or employ any agent or per- 
 son to make loans or discounts at any other 
 place than its banking house. 
 
 Sec. 3402. The total liabilities to any State 
 Bk. or Tr. Co. of any person, Corp., or firm, 
 for money borrowed, including in the liabili- 
 ties of a firm the liabilities of the several 
 members thereof, shall at no time exceed 10% 
 of the amount of the capital stock of such Bk. 
 or Tr. Co. actually paid in and its surplus and 
 undivided profits combined ; and the provi- 
 sions of all State Bk. or Tr. Co. charters in- 
 consistent herewith are hereby repealed. The 
 provisions of this Sec. shall not apply to loans 
 secured by collateral, so long as the market 
 value of such collateral shall exceed by 20% 
 the total liabilities secured in each case by 
 such collateral, but no loan on collateral shall 
 at any time exceed 20% of the amount of the 
 capital stock of such Bk. or Tr. Co. actually 
 paid in and its surplus and undivided profits 
 combined, and the total loans to any one per- 
 son, Corp., or firm, including in the liabilities 
 of the firm, the liabilities of the several mem- 
 bers thereof, shall at no time exceed 20% of 
 
 * Sec. 3401. Refers to specific pledge ; not in- 
 consistent with lien for stockholder’s debt. 20 C. 
 157. Prohibition of loans on its stock implies pro- 
 hibition of purchase of stock by Corp. 52. C. 99. 
 
 23 
 
CONNECTICUT. State Banks and Trust Companies. 
 
 the capital, surplus, and undivided profits com- 
 bined of such bank or trust company. * * * 
 _ Sec. 3403. No State Bk. or Tr. Co. shall 
 discount any paper made, accepted, or indorsed 
 by any of its executive officers or clerks, or 
 by any partnership of which any one of such 
 officers or clerks is a member, nor make any 
 loans, either with or without collateral secu- 
 rity, to any such officer, clerk, or partnership, 
 nor permit any such officer to overdraw his 
 account * * * 
 
 Sec. 3404. When the loans and discounts of 
 any State Bk. or Tr. Co. to parties in this 
 state shall, in the aggregate, amount to ^2 of 
 its capital stock, it may loan to parties out of 
 this state, and not otherwise. 
 
 Sec. 3411. No director of any State Bk. or 
 director or trustee of any Tr. Co. shall be ob- 
 ligated to any such Bk. or Tr. Co. to an 
 amount exceeding 5% of its capital actually 
 paid in and its surplus and undivided profits 
 combined. The provisions of this Sec. shall 
 not apply to loans secured by collateral, so 
 long as the market value of such collateral 
 shall exceed by 20% the total liabilities se- 
 cured in each case by such collateral. The 
 total loans to any director or trustee shall, at 
 no time, exceed 10% of the capital stock of 
 such Bk. or Tr. Co. actually paid in and its 
 surplus and undivided profits combined. No 
 such Bk. or Tr. Co. shall permit its directors 
 or trustees to become obligated to it to an 
 amount at any time exceeding in the aggregate 
 the sum of 30% of its capital actually paid in 
 and its surplus and undivided profits com- 
 bined. * * * 
 
 Sec. 3412. If any director of any State Bk. 
 or any trustee or director of any Tr. Co., shall 
 receive any compensation for indorsing any 
 paper discounted by such Bk. or Tr. Co., he 
 shall be fined not less than $500 nor more than 
 $1,000 for each offense. 
 
 Sec. 3400. Every State Bk. and Tr. Co. 
 shall at all times maintain a reserve fund of 
 15% of its aggregate deposits. Of this re- 
 serve fund, not less than 4-i5ths shall consist 
 of gold and silver coin, the demand obliga- 
 
State Banks and Trust Companies. CONNECTICUT. 
 
 tions of the U. S., or Nat. Bk. currency, and 
 be held by such Bk. or Tr. Co. in its banking 
 office. The remainder of such reserve fund, 
 may consist of balances subject to demand 
 draft with reserve agents and of R. R. bonds 
 which are legal investments for the Sav. Bks. 
 of this state; provided, that such reserve 
 agents shall be Bks. which are members of 
 the Clg. House Assocs. of N. Y., Boston, 
 Philadelphia, Chicago, or Albany, or Nat. Bkg. 
 Assocs., State Bks. or Tr. Cos. located in New 
 Haven, Hartford or Bridgeport, and in each 
 instance approved by the Bk. Corns., and that 
 the R. R. bonds, held as a part of such re- 
 serve, shall at no time exceed at par value 
 i-5th of the total reserve fund. Whenever 
 the reserve fund of any State Bk. or Tr. Co. 
 shall be below said 15%, such Bk. or Tr. Co. 
 shall not make any new loans or discounts, or 
 make any dividends of its profits, until its re- 
 serve fund is restored to the required 15%. * * * 
 
 Sec. 5. This act shall in no way limit the 
 right of any Tr. Co. to receive deposits and 
 invest its funds upon such terms and condi 
 tions as are provided for in its charter, ex- 
 cept as to deposits in its Sav. Dept, as pro- 
 vided by this act. 
 
 See also Sec. 3446 under Sav. Bks. 
 

Savings Banks, State Banks. 
 
 ILLINOIS 
 
 Municipal Law in red. Street Railway Law in 
 Railroad Law in green. broivn. 
 
 Other matter in black. 
 
 ILLINOIS. 
 
 SAVINGS BANKS. 
 
 (Strictly speaking, there are no Sav. Bks. 
 in 111 . The banking act has been construed, 
 however, as permitting State Bks. to operate 
 Sav. Depts. See State Bks.) 
 
 STATE BANKS. 
 
 Sec. i. * * * It shall be lawful to form Bks. 
 and banking associations, as hereinafter pro- 
 vided, for the purpose of discount and de- 
 posit, buying and selling exchange and do- 
 ing a general banking business',, excepting 
 the issuing of bills to circulate as money, 
 and such Bks. or banking associations shall 
 have the power to loan money on personal 
 and real estate security and to accept and 
 execute trusts. 
 
 § 9. Associations organized under this 
 
 Act * * * may own, possess and may carry 
 as assets the real estate necessary in which 
 to do its banking business, and such other 
 real estate to which it may obtain title in the 
 collection of its debts, but shall not carry 
 in its assets any real estate except its bank- 
 ing house for a period of more than 5 yrs. 
 after acquiring title to the same. 
 
 § 10. The total liabilities to any asso- 
 ciation of any person or of any Corp. or 
 firm for money borrowed, including in the 
 liabilities of a Co. or firm the liabilities of the 
 several members thereof, shall at no time 
 exceed 15% of the amount of the capital 
 stock of such association actually paid in and 
 unimpaired and 15% of its unimpaired sur- 
 plus fund. 
 
 Provided, however, that the total liabili- 
 ties of any such person, Co. or firm, shall 
 at no time exceed 30% of the amount of 
 capital actually paid in ; And, Provided 
 
 1 
 
ILLINOIS. 
 
 Trust Companies. 
 
 further, that undivided profits shall not be 
 construed as a part of the surplus ; but the 
 discount of bills of exchange drawn in good 
 faith against actually existing values, and 
 the discount of commercial or business paper 
 actually owned by the person negotiating the 
 same shall not be considered as money 
 borrowed. 
 
 Every such loan made in violation of the 
 provisions hereof shall be due and payable 
 according to its terms, and the remedy for 
 the recovery of any money loaned in viola- 
 tion of the provisions hereof, or for the en- 
 forcement of any agreement, collateral or 
 otherwise, made in connection with any such 
 loan, shall not be held to be impaired, affected 
 or prohibited by reason of such violation, 
 but such remedy shall exist notwithstanding 
 the same. But every director of any such 
 association who shall violate, or participate 
 in, or assent to such violation, or who shall 
 permit any of the officers, agents or servants 
 of the association to violate the provisions 
 hereof, shall be held liable in his personal 
 and individual capacity for all damages 
 which the association, its shareholders or any 
 other person shall have sustained in conse- 
 quence of such violation. 
 
 It shall not be lawful for any Bk. to loan 
 to its president or to any of its vice-presi- 
 dents or its salaried officers or employes, or 
 to Corps, or firms controlled by them, or in 
 the management of which any of them are 
 actively engaged, until an application for 
 : such loan shall have been first approved, both 
 as to security and amount, by the board of 
 | directors. 
 
 TRUST COMPANIES. 
 
 Sec. i. § 3. * * * The amount of money 
 which any such Corp. shall have on deposit at 
 any time shall not exceed 10 times the amount 
 of its paid up capital and surplus, and its 
 outstanding loans shall not at any time ex- 
 ceed said amount. 
 
 § 6 . Each Co. in all cities and towns 
 
 2 
 
Trust Companies. 
 
 ILLINOIS 
 
 of 100,000 inhabitants or more, before accept- 
 ing any such appointment or deposit, shall 
 deposit with the Auditor of Public Accounts 
 the sum of $200,000, and each Co. in all 
 cities and towns of less than 100,000 inhabi- 
 tants shall deposit with the Auditor of Pub- 
 lic Accounts the sum of $50,000, said deposit 
 to be for the benefit of the creditors of said 
 Co., and to consist of bonds of the 
 U. S. or municipal bonds of this State, or 
 in Mtgs. on improved and productive real 
 estate in this State, being 1st liens thereon, 
 and the real estate being worth at least twice 
 the amount loaned thereon. Bonds and se- 
 curities so deposited may be exchanged, from 
 time to time, for other securities receivable 
 as aforesaid. Said bonds of the U. S. or 
 
 municipal bonds of this State to be regis- 
 tered in the name of said Auditor offi- 
 
 cially, * * * So long as the Co. so deposit- 
 ing shall continue solvent, such Co. shall 
 be permitted to receive from said Auditor the 
 interest or dividends on said deposit. 
 
 (The amount of the deposit required may 
 be increased or decreased by the Auditor of 
 public accounts under certain conditions.) 
 
 § 7. When any part of such deposit is 
 made in bonds and Mtgs. it shall be accom- 
 panied by full abstracts of titles and searches, 
 and shall be examined and approved by or 
 under the direction of the Auditor. The 
 
 fees for an examination of title by coun- 
 sel, to be paid by the Co. making the deposit, 
 shall not exceed $20 for each Mtg., and the 
 fee for each appraiser not exceeding two, 
 besides expenses, shall be $5 for each Mtg. 
 

 . .. :• . 
 
 ’ 
 
 ' 
 
 : • 
 
 
 
 
 
 
 
 ’ 
 
 * 
 
 
 ' 
 
 
 4 
 
 ■ 
 
 
 
 
 
 
 
 
 
 
 l 
 
 
 
Banks of Discount and Deposit. 
 
 INDIANA. 
 
 Municipal Law in red. Street Railway Law in 
 Railroad Law in green. brown . 
 
 Other matter in black. 
 
 INDIANA. 
 
 Corrected to January i, 1911. 
 
 BANKS OF DISCOUNT AND DEPOSIT. 
 Chapter II. 
 
 Sec. 4. * * * and may exercise, under this 
 act, all the powers incidental and proper, or 
 which may be necessary and usual in carry- 
 ing on the business of banking as a Bk. of 
 Discount and Deposit; may receive deposits, 
 buy and sell exchange, gold and silver coin 
 and bullion, and may loan money, negotiate, 
 sell and guarantee such loans, and promis- 
 sory notes, bonds, drafts, bills of exchange 
 and other evidences of debt, and any securi- 
 ties thereof ; * * * 
 
 And such association may contract for, 
 charge, take, reserve, and receive on loans 
 and discounts, the highest rate of interest 
 allowed by the law of this state to be con- 
 tracted for, taken and received by individ- 
 uals. 
 
 . Sec. 12. It shall be lawful for any associa- 
 tion organized under this act, to purchase, 
 hold and convey real estate as follows : 
 
 1st. Such as shall be necessary for the im- 
 mediate accommodation in the transaction of 
 its business. 
 
 2d. Such a 3 shall be mortgaged to it in 
 good faith by way of security for debts. 
 
 3d. Such as shall be conveyed to it in satis- 
 faction of debts previously contracted in the 
 course of its dealings. 
 
 4th. Such as it shall purchase at sales, 
 under judgments, decrees or Mtgs. held by 
 such association, or shall purchase to secure 
 debts due to said association. 
 
 Such association shall not purchase or hold 
 real estate in any other case or for any 
 other purpose than as specified in this Sec., 
 nor shall it hold the possession of any real 
 
 1 
 
Savings Banks. 
 
 estate under Mtg., nor hold the title and 
 possession of any real estate purchased to 
 secure any debts to it for a longer period 
 than 5 yrs. 
 
 Chapter VIII. 
 
 (Acts 1905, p. 675.) 
 
 Sec. 3. Whoever, being president, director, 
 cashier, teller, clerk, officer, or employee of 
 any incorporated Bk., or of any firm, Corp., 
 person or association doing a banking busi- 
 ness, shall, in any way, obtain as a borrower 
 any of the funds of such Bk., firm, Corp., 
 person or association doing a banking busi- 
 ness, without first executing his note or other 
 evidence of debt therefor, bearing the writ- 
 ten consent thereto of the board of directors 
 of any such incorporated Bk., or the manager 
 or managers of any other such firm, Corp., 
 person or association doing a banking busi- 
 ness, indorsed on such note or other evi- 
 
 dence of debt, shall be deemed guilty of a 
 felony * * * 
 
 SAVINGS BANKS. 
 
 Chapter V. 
 
 Sec. 19. It shall be lawful for the trustees 
 of any Sav. Bk. to invest the money depos- 
 ited therein only as follows, to wit : 1st, in 
 the stocks or bonds or treasury notes of the 
 U. S. ; 2d, in the stocks or bonds of this 
 
 state; 3rd, in the orders or bonds of any 
 
 county, city or town in this state, issued 
 pursuant to the authority of law; 4th, in 
 the stocks or bonds of any state in the Union 
 that has, for 5 yrs. previous to such invest- 
 ment being made, regularly paid the interest 
 on its legal bonded debt in lawful money 
 
 of the U. S. ; 5th, in bonds or notes secured 
 by Mtg. or unincumbered real estate situate 
 in the county where the Bk. is located or in 
 an adjoining county in an adjoining state 
 (or in any other county in the state of Ind.) 
 worth, exclusive of perishable improvements, 
 at least twice the amount loaned thereon ; 
 6th, in promissory notes or bills of exchange 
 
Savings Banks. 
 
 INDIANA. 
 
 before their maturity, payable at some char- 
 tered Bk. within this state, and having not 
 to exceed 12 mos. to run from the date of 
 the loan or purchase, made or endorsed by 
 two or more responsible freeholders, one of 
 whom, at least, shall be a resident of the 
 state of Ind. : Provided, That no such note 
 or bill shall exceed the sum of $10,000, and 
 that no more than $10,000 shall be loaned on 
 the same security; 7th, in real estate subject 
 to the provisions of Sec. 24; 8th, in dealing 
 in exchange, by purchasing and selling sight 
 or time drafts payable out of this state : 
 Provided, That no such draft shall be for a 
 larger sum than $10,000, nor shall any time 
 draft payable out of the state be so pur- 
 chased which shall have at time of such 
 purchase more than 60 days to run until it 
 matures : And provided, also, That not more 
 than one draft shall be held by any such Bk., 
 at any one time, which is secured by the same 
 endorsers, or by any of the same endorsers. 
 
 (Acts 1903, p. 211.) 
 
 Sec. 20. It shall be lawful for the trustees 
 of any Sav. Bk., while awaiting opportunity 
 for the judicious investment of the funds de- 
 posited w T ith them, to loan the moneys so de- 
 posited upon the security of the stocks and 
 other securities mentioned in the preceding 
 Sec., not exceeding 90% of the cash mar- 
 ket value thereof. 
 
 Sec. 21. Should the stocks or other se- 
 curities on which loans are made, pursu- 
 ant to the provisions of the last preceding 
 Sec., depreciate in value after making any 
 loan thereon, it shall be the duty of the 
 trustees to require the immediate payment 
 of such loan made by them thereon, or 
 additional security therefor, so that the 
 amount so loaned shall at no time exceed 
 90% of the market value of such securities; 
 and no loan shall be so made without an 
 agreement from the borrower that the same 
 shall be subject to the conditions of pay- 
 ment . or of additional security, as required 
 by this Sec. 
 
 3 
 
INDIANA. 
 
 Savings Banks. 
 
 Sec. 23. No loan shall be made upon the 
 security of real estate, as provided in subdiv. 
 
 5 of Sec. 19, or upon notes or bills as pro- 
 vided in subdiv. 6 of said Sec., without the 
 consent of the majority of the trustees, or ^ 
 the unanimous consent of the committee of 
 investment, which may be created under the 
 by-laws of such Bk. 
 
 Sec. 24. It shall be lawful for the trustees 
 of any Sav. Bk. to purchase, hold and con- 
 vey real estate as follows, and not other- 
 wise : 
 
 1st. A lot and banking-house requisite for 
 the transaction of its business, and for an 
 income from such portions of the same as 
 are not required for its own use. 
 
 2d. Such as shall have been mortgaged to 
 it in good faith for money loaned, or upon 
 which it shall have purchased a Mtg. 
 
 3d. Such as shall have been purchased at 
 sales upon judgments or decrees obtained 
 upon claims in favor of the Bk., or which 
 may be so purchased to prevent loss upon 
 claims held by the Bk. 
 
 Sec. 25. No banking house shall be erected 
 or purchased by any Sav. Bk. until the es- 
 timated cost of the same, and of the income 
 to be derived therefrom, shall be submitted 
 to and approved by the auditor of state, nor 
 shall the same cost to exceed 5% of the 
 amount of deposits of such Bk. 
 
 Sec. 26. All such real estate as is described 
 in subdivs. 2 and 3 of Sec. 24 shall be sold 
 within 3 yrs. after the same has become 
 vested in such Sav. Bk., if the same will bring 
 the amount due on account thereof ; and 
 if it can not be sold for a sufficient sum for 
 that purpose, the auditor of state may give 
 such further time as he shall deem necessary 
 in which to sell the same. 
 
 Sec. 27. It shall not be lawful for any H 
 vSav. Bk. to deal or trade in real estate in 
 any other case or for any other purpose than 
 as authorized in the 24th Sec. of this Act, 
 or to deal or trade in any goods, wares or 
 merchandise, except as herein authorized, and 
 except such personal property as may be 
 
 4 
 
Loan, Trust and Safe Deposit Companies. INDIANA. 
 
 necessary in the transaction of its business. 
 
 See also Chap. VIII under Banks of Dis- 
 count and Deposit. 
 
 LOAN, TKUST AND SAFE DEPOSIT 
 
 COMPANIES. 
 
 Chapter VI. 
 
 Sec. io. Any such Corp. so organized and 
 authorized to transact business shall have 
 power and authority: 
 
 ist. To acquire, purchase, own, hold, use 
 and improve and for that purpose to Mtg., 
 lease, sell and convey such real estate and 
 personal property as may be necessary for 
 the convenient transaction of its business, 
 and for the use and occupation of its of- 
 ficers, agents and employees, and the safe 
 keeping of its assets, deposits and property 
 held in trust. Any estate, or interest in real 
 estate, which such Corp. shall acquire under 
 or by virtue of the foreclosure of any deed 
 of trust, Mtg. or other security, or by the 
 compromise, compounding or settlement of 
 any obligation or security, or otherwise, in 
 the course of its legitimate business, whether 
 as owner or trustee, it may continue to own, 
 hold, use, occupy, lease, bargain, sell and 
 convey the same, as the directors may deem 
 best for the interests of such Co., or of the 
 particular estate or trust to which the same 
 belongs; and to that end it may become a 
 purchaser at any foreclosure sale, or sale 
 under decree or judgment, to which it is a 
 party as trustee or otherwise, but no part 
 of its capital, accumulations, deposits, trusts, 
 funds, property or securities owned or held 
 by such Co. in trust, or otherwise, shall be 
 invested in real estate, except as herein 
 authorized, unless the same is done under 
 and by virtue of a particular contract, agree- 
 ment or other instrument, which shall confer 
 a special power and authority so to do, and 
 then only with, and to the extent of, the 
 moneys or funds thereby provided and be- 
 longing to such particular trust; and for 
 the general transaction of its business to 
 
 5 
 
INDIANA. Loan, Trust and Safe Deposit Companies. 
 
 make and deliver, and in like manner to ac- 
 cept and receive, all necessary and proper 
 deeds, conveyances, Mtgs., leases and other 
 contracts and writings obligatory, and to have 
 and exercise all necessary rights, franchises, 
 muniments, estate powers and privileges nec- 
 essary to that end, and such Corp. is author- 
 ized to loan money and funds, and secure 
 such loan by Mtg. ; and shall have power 
 to sell and aissign such Mtgs. and other 
 securities of such Corp., and to convert them 
 into cash or other securities. 
 
 6th. The directors of any such Corp. shall 
 have discretionary power to invest all moneys 
 received by it on deposit or in trust in any 
 such personal securities as are not herein- 
 after expressly prohibited ; and it shall be 
 held responsible for the owners, or cestui 
 que trust, of such moneys, for the validity, 
 regularity, quality, value and genuineness of 
 all such investments and securities at the 
 time the said investments are so made, and 
 for the safe keeping of the evidences and 
 securities thereof, but if any special direc- 
 tion, agreement or trust is imposed upon, 
 made or conferred in and by the order, 
 judgment or decree of any court, or by the 
 terms and conditions of any last will and 
 testament, or other document, contract, deed, 
 conveyance or other written instrument, as to 
 the particular manner in which, or the partic- 
 ular class or kind of securities, funds or 
 property, whether real or personal, the same 
 shall be invested in, then the said Corp. shall 
 follow and carry out such order, judgment, 
 decree or other appointment, contract, deed, 
 conveyance or other written instrument, and 
 in such case such company shall not be held 
 liable or responsible for any loss, damage 
 or injury which may occur or be incurred by 
 any person or cestui que trust by reason of IjP 
 its performance of such trust as aforesaid. 
 
 Sec. 13. No such Corp. shall engage in any 
 banking, mercantile, manufacturing or other 
 business, except such as is hereby expressly 
 authorized : Provided, That any promissory 
 note, bond or instrument in writing made 
 
 6 
 
Loan, Trust and Safe Deposit Companies. INDIANA. 
 
 negotiable by the laws of this state, when 
 payable at a Bk. within this state, shall in 
 like manner be negotiable if made payable 
 at the office of any such Corp., it shall not 
 loan its funds, moneys, capital, trust funds, 
 or other property whatsoever, to any director, 
 agent or employee, thereof, nor shall any 
 such director, officer, agent or employee be- 
 come in any manner indebted to said Corp. 
 by means of any overdraft, promissory note, 
 account, endorsement, guaranty, or other 
 contract whatsoever. 
 
 Sec. 13 a. Be it enacted by the general as- 
 sembly of the state of Ind., that it shall be 
 unlawful for any * * * Tr. and Dep. Co. in- 
 corporated under and pursuant to the laws 
 of this state, to loan any of its funds, moneys, 
 capital or other property whatsoever to any 
 director or officer thereof. 
 
 (Acts 1899, p. 158.) 
 
Savings Banks. 
 
 IOWA. 
 
 Municipal Law in red. Street Railway Law in 
 Railroad Law in green. brown. 
 
 Other matter in black. 
 
 IOWA. 
 
 SAVINGS BANKS. 
 
 Chapter io. 
 
 As amended 1913 Session 
 
 Sec. 1850. Each Sav. Bk. shall invest its 
 funds or capital, all moneys deposited therein 
 and all its gains and profits, only as follows : 
 
 1st. In bonds or interest-bearing notes or 
 certificates of the United States. 
 
 2nd. In bonds or evidences of debt of this 
 State, bearing interest. 
 
 3rd. In bonds or warrants of any city, town, 
 county, Sch. Dist. or Drainage Dist. of this 
 State, issued pursuant to the authority of law ; 
 but not exceeding 25% of the assets of the 
 bank shall consist of such bonds or warrants. 
 
 4th. In notes or bonds secured by mortgage 
 or deed of trust upon unincumbered real estate 
 located in Iowa or adjoining States, worth at 
 least twice the amount loaned thereon; pro- 
 vided, however, that no such loan shall be 
 made upon any real estate located outside of 
 Iowa, except real estate situated in any county 
 adjoining the Iowa State line. 
 
 5th. It may discount, purchase, sell and 
 make loans upon commercial paper, notes, bills 
 of exchange, drafts or any other personal or 
 public security, but shall not purchase, hold or 
 make loans upon the shares of its capital stock. 
 
 6th. In all cases of loans upon real estate, 
 all the expenses of searches, examinations and 
 certificates of title, or the inspection of prop- 
 erty, appraisals of value, and of drawing, per- 
 fecting, and recording papers, shall be paid by 
 such borrowers; if buildings are included in the 
 valuation of real estate upon which a loan shall 
 be made, they shall be insured by the mortgagor 
 for at least J^rds of their value, in some sol- 
 
 1 
 
Savings Banks. 
 
 vent Co., and the loss, if any, under the policy 
 of Ins. shall be made payable to the bank or its 
 assigns, as its interests may appear. When 
 the mortgagor neglects to procure the Ins. 
 as above provided, the mortgagee may procure 
 the same in the mortgagor’s name for its 
 benefit, and the premium so paid therefor shall 
 be added to the Mtg. debt. 
 
 Sec. 1851. A Sav. bank may purchase, hold 
 and convey real estate only as follows : 
 
 1st. The lot and building in which its busi- 
 ness is carried on. 
 
 2nd. Such as shall have been purchased at 
 sales upon foreclosure of mortgages owned by 
 it, or upon judgments or decrees obtained or 
 rendered for debts due it, or such as shall be 
 conveyed to it in satisfaction of debts pre- 
 viously contracted in the course of its dealings, 
 or such as it may obtain by redemption as 
 junior mortgagee or judgment creditor, and 
 which shall be sold by said bank within 10 
 years after the title shall be vested in it. 
 
 Chapter 12. 
 
 Sec. 1869. ... No officer or employee of 
 the bank shall in any manner, directly or indi- 
 rectly, use its funds or deposits, or any part 
 thereof, except for the regular business trans- 
 actions of the bank, and no loan shall be made 
 by it to them except upon the express order of 
 the board of directors, made in the absence of 
 the applicant, duly entered in the records of the 
 board proceedings, and only upon the same 
 security as required of others. . . . 
 
 Sec. 1870. The total liabilities to any Sav. 
 or State bank of any person, Corp., Co. or 
 firm, for money borrowed, including in the lia- 
 bilities of a Co. or firm the liabilities of the 
 several members thereof, shall at no time ex- 
 ceed 20% of the actually-paid up capital of 
 such bank; provided that they may loan not 
 to exceed J4 of their capital stock to any per- 
 son, Corp., Co. or firm on notes or bonds 
 secured by Mtg. or deed or trust upon unin- 
 
 2 
 
State Banks, Loan and Trust Companies. 
 
 cumbered farm land in this State, worth at 
 least twice the amount loaned thereon; but 
 the discount of bona fide bills of exchange 
 drawn against actually existing value, and the 
 discount of commercial or business paper act- 
 ually owned by the person or persons, Corp., 
 Co. or firm negotiating the same, shall not 
 be considered money so borrowed. 
 
 STATE BANKS. 
 
 See Sections 1869 and 1870, Chapter 12, un- 
 der Savings Banks, which apply to State Banks. 
 
 LOAN AND TRUST COMPANIES. 
 
 Chapter 12. 
 
 Sec. 1889. . . . No Corp. shall engage in 
 the banking business, receive deposits, and 
 transact the business generally done by banks, 
 unless it is subject to and organized under 
 the provision of this title, or of the banking- 
 laws of the State heretofore existing, except 
 that Loan and Tr. Cos. may receive time de- 
 posits, subject to the same limitations as are 
 now or may hereafter be prescribed for the 
 receiving of deposits by State banks, . . . but 
 such Cos. shall be subject to examination, 
 regulation and control of the Auditor of State, 
 like Sav. and State banks. . . . 
 

 
 . 
 
 
 ■ 
 
 
 
 
 
 
 
 
 
 
 
 ■ 
 
 
 
 
 
 ' 
 
 ' 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
\ 
 
 % 
 
 K 
 
% 
 
 
Savings and Commercial Banks. 
 
 Municipal Law in red . Street Railway Law in 
 Railroad Law in green. brown. 
 
 Other matter in black. 
 
 KENTUCKY. 
 
 SAVINGS AND COMMERCIAL BANKS. 
 
 Section 579. Powers; . . . to ex- 
 ercise, subject to law, such powers as 
 may be necessary to carry on the busi- 
 ness of banking by discounting and 
 negotiating notes, drafts, bills of ex- 
 change, and other evidences of debt, 
 and purchasing bonds, . . . buying and 
 selling exchange, coin and bullion, and 
 lending money on personal or real se- 
 curity, as provided in this article. 
 
 Section 581. No bank shall take 
 as security for any loan or discount a 
 lien upon any part of its capital stock, 
 and the same surety, both in kind and 
 amount, subject to the provisions of 
 Section 583, shall be required from 
 persons, stockholders and those not 
 stockholders; nor shall any bank be 
 the holder or purchaser of any part of 
 its capital stock ; unless such purchase 
 shall be necessary to prevent loss upon 
 a debt previously contracted in good 
 faith; . . . 
 
 Section 582. A bank . . . may hold 
 such personal property as has been 
 transferred to it as collateral for the 
 payment of any debt, and may acquire 
 title to and hold such real estate as 
 may be necessary for the transaction 
 of its legitimate business, and for a 
 period not longer than five years such 
 other real estate as shall be conveyed 
 
Trust Companies. 
 
 to it in satisfaction of debts previously 
 contracted in the course of its busi- 
 ness, or that it may purchase under a 
 judgment in its favor. 
 
 Section 583. No bank shall permit ^ 
 any of its stockholders, or any person, 
 company or firm, including in the lia- 
 bility of the company or firm the lia- 
 bility of the individual members 
 thereof, directly or indirectly, to be- 
 come indebted to it in a sum exceeding 
 twenty per cent, of its capital stock 
 actually paid in, and its actual amount 
 of surplus, unless such borrower 
 pledge with it good collateral security, 
 or execute to it a mortgage upon real 
 or personal estate, which at the time 
 is of more than the cash value of such 
 loan or indebtedness above all other 
 incumbrances; and if the borrower is 
 a director or officer of such bank, he 
 shall not be permitted to become in- 
 debted to it in excess of ten per cent 
 of its paid-up capital stock, without 
 securing the access by the mortgage 
 or pledge of real or personal property 
 double in value the amount of such 
 access; and in no event shall the in- 
 debtedness of any person, company or 
 firm, including in the liability of the 
 company or firm the liability of the in- 
 dividual members thereof, exceed 
 thirty per cent of its paid-up capital 
 and actual surplus. 
 
 TRUST COMPANIES. 
 
 Section 609. Capital stock not 
 to be taken as security. There are 
 
Trust Companies. 
 
 the usual provisions regarding this 
 which are practically the same as set 
 forth in Section 581 under Savings 
 and Commercial Banks. 
 
 Section 610. Indebtedness of 
 
 PERSON TO HIGHEST AMOUNT PER- 
 
 MITTED. There are the usual provi- 
 sions regarding this which are practi- 
 cally the same as set forth in Section 
 583 under Savings and Commercial 
 banks, except that in place of tzventy 
 per cent, insert ten , and in the place 
 of thirty per cent., insert twenty. 
 
 Section 612. No trust company 
 hereafter organized shall engage in a 
 banking business, or buy or sell bills 
 of exchange. It may acquire title to 
 and hold such real estate as may be 
 necessary for the transaction of its 
 legitimate business, and for a period 
 not longer than five years such other 
 real estate as shall be conveyed to it 
 in satisfaction of debts previously con- 
 tracted in the course of its business, 
 or that it may purchase under a judg- 
 ment in its favor; but this shall not 
 prevent such corporation from hold- 
 ing, operating or managing real estate 
 for other persons. 
 
 Section 614. The capital stock of 
 a trust company, and the funds in its 
 possession, not held in a fiduciary ca- 
 pacity, may be invested in such man- 
 ner as the directors deem prudent and 
 safe; and the funds held in a fiduciary 
 capacity shall be invested under the 
 order of court, or in such manner as 
 may be provided by law for the in- 
 
Combined Banks and Trust Companies. 
 
 vestment of other trust funds ; and the 
 capital stock shall be primarily liable 
 for the obligations of the corporation 
 in its fiduciary capacity. 
 
 COMBINED BANKS AND TRUST COMPANIES. 
 
 Section 612A. . . . that portion of 
 said act relating to banks and banking 
 shall apply to and govern the banking 
 business of corporations provided for 
 by this act, and that portion thereof 
 relating to trusts and trust companies 
 shall apply to and govern their trust 
 business. 
 
1 
 
 I 
 
 
* 
 
 4 
 
Savings Banks. 
 
 MAINE. 
 
 Municipal Law in red. Street Railway Law in 
 
 Railroad Law in green. brown. 
 
 Other matter in black. 
 
 # 
 
 MAINE 
 
 SAVINGS BANKS. 
 
 Chap. 48 as amended in 1913. 
 
 Sec. 23. Sav. Bks. and Insts. for Sav. are 
 restricted to and hereafter may invest their 
 deposits as follows : 
 
 1st, a: In the public funds of the U. S. and 
 Dist. of Col. 
 
 b : In the public funds of any of the New 
 Eng. States and of the States of N. Y., Penn., 
 Md., Ohio, Ind,, Ky., Mich., Wis., Minn., Iowa, 
 111 ., Mo., Kan, Neb, Calif, Ore. and Wash. 
 
 2d, a: In the bonds of the counties, cities 
 and towns of any of the New England States. 
 
 b : In the bonds of cities and Dists. in the 
 States of N. Y, Penn, Md, Ohio, Ind, Ky, 
 Mich, Wis, Minn, Iowa, 111 , Mo, Kan, Neb, 
 Calif, Ore. and Wash, having a population of 
 75,000 or more, when issued for municipal 
 purposes and which are a direct obligation on 
 all the taxable property therein. 
 
 c: In the bonds of counties of 20,000 in- 
 habitants or more in the States of N. Y, Penn, 
 Md, Ohio, Ind, Ky, Mich, Wis, Minn, Iowa, 
 111 , Mo, Kan, Neb., Calif, Ore. and Wash, 
 when issued for municipal purposes, and which 
 are a direct obligation on all the taxable prop- 
 erty therein, except when issued in aid of 
 R. Rs, provided , that the net municipal debt of 
 such county does not exceed 5% of the last 
 preceding valuation of the property therein 
 for the assessment of taxes. 
 
 d : In the bonds of any city of 10,000 in- 
 habitants or more in the States of N.Y, Penn.. 
 Md, Ohio, Ind., Ky, Mich, Wis, Minn, Iowa, 
 Bk 111 , Mo, Kan, Neb, Calif, Ore. and Wash, 
 ™ when issued for municipal purposes and which 
 are a direct obligation on all the taxable prop- 
 erty therein, except when issued in aid of 
 R. Rs, provided, that the net municipal debt of 
 such city does not exceed 5% of the last pre- 
 
 1 
 
Savings Banks. 
 
 ceding valuation of the property therein for the 
 assessment of taxes. 
 
 e: In the refunding bonds of counties and 
 cities above enumerated issued to take up at 
 maturity bonds which were legal and constitu- 
 tional when issued, provided, that the interest 
 has been fully paid on such original bonds for 
 at least 5 years last prior to such refunding; 
 provided, further, that such counties and cities 
 can otherwise meet the foregoing conditions. 
 
 f : In the bonds and obligations of Sch. Dist. 
 boards, boards of education and other corpo- 
 rate bodies within such cities, authorized to 
 issue bonds payable primarily from taxes lev- 
 ied on all the taxable property in said Dist. ; 
 provided, that the population of the Dist. is 
 10,000 or more, and the population and as- 
 sessed valuation of the Dist. are equal to at 
 least 90% of the population and the assessed 
 valuation of the city within which such Dist. is 
 located; provided, further, that the net munici- 
 pal debt of such Dist. does not exceed 5% of the 
 last preceding valuation of the property therein 
 for the assessment of taxes. 
 
 g: In the bonds or obligations of any muni- 
 cipal or quasi municipal corporation of this 
 State, when such securities are a direct obliga- 
 tion on all the taxable property of said cor- 
 poration. 
 
 3d, a : In the railroad bonds of this State, 
 b: In the 1st Mtg. bonds of any completed 
 R. Rs. of the States of New Hamp., Vt., Mass., 
 R. I., Conn., N. Y., N. J., Penn., Md., Ohio, 
 Ind., Ky., Mich., Wis., Minn., Iowa, 111 ., Mo., 
 Kan. and Neb. 
 
 c: In the 1st Mtg. bonds of the Central 
 Pacific, Union Pacific and Northern Pacific 
 R. Rs. 
 
 d: In the Mtg. bonds of any R. R. leased to 
 any dividend paying R. R. in New Eng. upon 
 terms guaranteeing the payment of a regular 
 stated dividend upon the stock of such leased 
 road and the interest on its bonds. 
 
 e : Street R. R. Cos. are not R. R. Cos. with- 
 in the meaning of the foregoing clauses of 
 this Sec. 
 
Savings Banks. 
 
 MAINE. 
 
 * 
 
 f : In the bonds of St. R. Rs. constructed in 
 this state prior to Apr. 27, 1895, and in bonds of 
 St. R. Rs. in this state constructed af,ter : Said 
 date, and in the 1st Mtg. bonds of any com- 
 pleted St. R. R. in the States of New Hamp., 
 Vt., Mass., R. I., Conn., N. Y., N. J., Penn., 
 Md., Ohio, Ind., Ky., Mich., Wis., Minn., Iowa, 
 111 ., Mo., Kan. and Neb.; provided that in the 
 case of St. R. Rs. constructed in this state 
 after Apr. 27, 1895, and in the case of St. 
 R. Rs. in the states above named, an amount 
 of capital stock equal to 33 Yz°/o % of the mort- 
 gaged debt shall have been paid in, in cash, 
 and expended upon the road evidenced by a 
 certificate of the R. R ; Commissioners of the 
 state where the road is located, if they have 
 jurisdiction over such R. Rs., or of the bank 
 examiner of this state, filed in the office of the 
 Secy, of State of this state, that said percent- 
 age has been paid in and expended in addition 
 to the amount of the bonded debt; provided, 
 further, that in lieu of the foregoing certificate 
 such bonds may be certified as legal for the 
 purpose hereof, on satisfactory proof to the 
 bank examiner that annual dividends in 
 amount equal to 5% per annum on an amount 
 of capital stock equal to of the bonded debt 
 has been earned and paid for a period of 5 
 years next prior thereto; and the persons mak- 
 ing such investigation and report may charge 
 and collect in addition to any compensation 
 now provided by law for their regular official 
 duties, a reasonable compensation for such 
 service and all expenses attendant thereon, 
 including the employment of experts, the same 
 to be paid by the R. R. Co. seeking to make its 
 bonds a legal investment under this Sec., 
 whether the same are admitted or not. No 
 bonds secured by an open Mtg. shall be legal 
 under this Sec. unless the Mtg. provides that 
 the total amount of bonds certified and out- 
 standing under it shall at no time exceed 75% 
 of the amount of cash expended upon the 
 road. i t . : 1 - .*> 
 
 g: In consolidated or refunding , bonds,; 
 which are of an issue to retire the; entire) 
 
 3 
 
Savings Banks. 
 
 funded debt under the conditions as applied 
 to ist Mtg. bonds, in clauses b, c, and f, of this 
 Subdiw, and which are secured by a ist Mtg. 
 on the whole or any part of the system.* 
 
 4th : In the Mtg. bonds of any water Co. 
 in the New Eng. States actually engaged in 
 supplying any city or cities, town or towns, 
 village or villages, or other municipal Corps, 
 with water for domestic use and for the ex- 
 tinguishment of fires, whenever such Co. is 
 earning more than its fixed charges and inter- 
 est on its debts and its running expenses. 
 
 5th : In bonds of any Corp. other than R. R. 
 and water Cos., incorporated under the au- 
 thority of this State, and actually conducting 
 in this State the business for which such Corp. 
 was created, which is earning an amount in 
 excess of fixed charges, interest on its debts 
 and running expenses equivalent to 5% per 
 annum on an amount of capital stock equal to 
 y 2 of its entire funded debt. 
 
 6th, a : In the stock of any bank or banking 
 Asso. incorporated under the authority of the 
 State. 
 
 b : In the stock of any bank or B’k’g Asso. 
 incorporated under the authority of the U. S., 
 if located within the New Eng. States. 
 
 c: In the stock of any R. R. Co. of this 
 State unencumbered by mortgage. 
 
 d : In the bonds, stocks or notes of any R. R. 
 in New Eng., which has earned and paid an 
 annual dividend equivalent to 5% on a capital 
 stock equal to ^ of its funded debt for a 
 period of io years next prior thereto, and in 
 the stock or notes of the New York Central 
 and Hudson River, the Illinois Central, the 
 
 * The following extract is taken from a letter from 
 the Bank Examiner of the State of Maine, dated April 
 24 , 1907 : 
 
 “My . . . construction of it (Clause g) is that 
 it makes the consolidated and refunding bonds of 
 steam railroads located in the states mentioned in 
 clauses ‘b’ and ‘c,’ and the consolidated and refund- 
 ing bonds of street railroads located in the states 
 and subject to the conditions as to amount of capi- 
 tal stock paid in and invested, all as provided in 
 cl ■ legal investments for the savings banks. 
 
Savings Banks. 
 
 Lake Shore and Michigan Southern, and the 
 Pennsylvania Railroad Companies. 
 
 e : In the stock of any R. R. leased to any 
 dividend paying R. R. in New Eng. upon terms 
 guaranteeing the payment of a regular stated 
 dividend upon the stock of such leased road 
 and the interest on its bonds. 
 
 f : In the stock of any Corp., other than 
 R. R. and water Cos., incorporated under au- 
 thority of this State, and actually conducting 
 in this State the business for which such Corp. 
 was created, which earns and is paying a reg- 
 ular dividend of not less than 5% a year. 
 
 7th, a: In loans secured by 1st Mtgs. of 
 real estate in this State and New Hamp. to 
 an amount not exceeding 60% of the value 
 of such real estate. 
 
 b : In notes with a pledge as collateral of 
 any funds, bonds, notes or stocks which the 
 bank or institution would, by this section, be 
 authorized to purchase, provided the market 
 value of said collateral is equal to the amount 
 of the loan. 
 
 c : In notes with a pledge as collateral of 
 any savings bank deposit book issued by any 
 savings bank in this State. 
 
 d : In notes with a pledge as collateral of 
 such funds, bonds, notes or stocks as in the 
 judgment of the trustees it is safe and for the 
 interest of the bank to accept, to an amount 
 not exceeding 75% of the market value of 
 such funds, bonds, notes or stocks. 
 
 e : In loans to any municipal Corp. in this 
 State. 
 
 f : In loans secured by a mortgage of such 
 personal property as in the judgment of the 
 trustees it is safe and for the interest of the 
 bank to accept. 
 
 g: In loans to any Corp. owing real estate 
 in this State and actually conducting in this 
 State the business for which such Corp. was 
 created. 
 
 8th, a : The term “net municipal indebted- 
 ness of counties” as used in this section shall 
 be construed to include all bonds w'hich are a 
 direct obligation of the county, less the amount 
 
Savings Banks. 
 
 of any sinking fund available in reduction of 
 such debt. 
 
 4 b : The term “net municipal indebtedness of 
 cities and districts’’ as used in this section shall 
 be construed to include in the case of either, 
 not only all bonds which are a direct obliga- 
 tion of the cities but also all bonds of the dis- 
 tricts or boards within the same as above enu- 
 merated, exclusive of any such debt created 
 for a water supply and of the amount of anv 
 sinking fund available in reduction of such 
 debt. 
 
 c: The number of inhabitants of cities and 
 counties shall be determined by the last pre- 
 vious official census thereof as established by 
 the last U. S. or State census, or city or 
 county census taken in the same manner as 
 U. S. or State census, and duly certified to by 
 the clerk or treasurer of such city or the 
 auditor or treasurer of such county. 
 
 9th : All investments having a fixed maturity 
 shall be charged, and entered on the books of 
 the bank at their cost to the bank, or at par 
 when a premium is paid. The Bk. Examiner 
 may require any investment to be charged 
 down to such sum as in his judgment repre- 
 sents its fair value. He may at any time call 
 for a report of the financial condition of any 
 Corp. offering, or likely to offer, its bonds, 
 stocks or notes to any Sav. Bk. in the State, 
 or whose notes are held by any such Sav. Bk., 
 as much in detail as he may require, verified 
 by the oath of such officers of said Corp. as 
 he may specify. He may communicate any 
 such report, or an abstract thereof, to the of- 
 ficers, of any of said Sav. Bks. If such re- 
 port is not furnished the Bk. Ex. within the 
 time specified in his call therefor, or within 
 such extension of time as he may grant, the 
 bonds, stocks and notes of such Corp. shall 
 thereupon cease to be a legal investment for 
 Sav. Bks. under this Sec., and shall not again 
 become a legal investment until a report in all 
 respects satisfactory to the Bk. Ex. is fur- 
 nished. . . . 
 
 Sec. 24. Any such bank or institution may 
 
Trust Companies. 
 
 hold real estate in the city or town in which 
 such bank or institution is located, to an 
 amount not exceeding 5% of its deposits or to 
 an amount not exceeding its reserve fund. 
 
 Sec. 25. No such bank or institution shall 
 hold by way of investment, or as security for 
 loans, or both, more than 1-5 of the capital 
 stock of any Corp., nor invest more than 10% 
 of its deposits in the capital stock, or notes of 
 any Corp., nor have more than 50% of its de- 
 posits in Mtgs. of real estate. This Sec. and 
 the two preceding do not apply to real estate, 
 or other assets, acquired by the foreclosure of 
 a Mtg. thereon, or upon judgment for debts, 
 or in settlements to secure debts. This Sec. 
 does not apply to bonds enumerated in the 
 first 5 subdivs. of Sec. 23 of this Chap. 
 
 Sec. 27. ... No loan shall be made directly 
 or indirectly to any officer of the corporation, 
 or to any firm of which such officer is a 
 member. 
 
 Sec. 40. . . . Parties making a loan from a 
 Sav. Bk. shall pay all expenses incurred by 
 reason thereof. 
 
 TRUST COMPANIES. 
 
 Sec. 80. Cash Reserve. . . . and of said 
 15% may consist of the bonds of the U. S., 
 the Dist. of Col., and any of the New Eng. 
 States and the States of N. Y., Penn., Md., 
 Ohio, Ind., Ky., Mich., Wis., Minn., Iowa, 111 ., 
 Mo., Kan. and Neb., the absolute property of 
 such Corp. . . . 
 
 Sec. 82. No Tr Co. shall make any loan 
 to its directors, officers, agents or other per- 
 sons in its employ, or on which any such 
 director, officer, agent or employee is an en- 
 dorser, guarantor or surety, or to any firm or 
 business syndicate of which such director, 
 officer, agent or employee is a member, or to 
 any person or on the endorsement or guaranty 
 of any person who is a partner of, or member 
 of a business syndicate with, such director, 
 officer, agent or employee, or to any Corp. of 
 which any such director, officer, agent or em- 
 
MAINE. 
 
 Trust Companies. 
 
 ployee is a director, officer, superintendent or 
 manager, until the proposition to make such 
 loan shall have been submitted by the person 
 desiring the same to the board of directors of 
 such Co., or to the executive committee there- 
 of, if any, and accepted and approved by a 
 majority of the entire membership of such 
 board or committee; provided, however, that 
 no director of such Co. who is interested in 
 said loan in any of the above capacities, or who 
 is connected or associated with the borrower 
 in any of the above ways, shall be regarded as 
 voting in the affirmative on such loan. Such 
 approval, if the loan is made, shall be spread 
 upon the records of the Co.; and this record 
 shall, in every instance, give the names of the 
 directors authorizing the loans. Nothing in 
 this Sec. or in Sec. 1 6 of this act shall make 
 it unlawful for a Tr. Co. to give any person, 
 firm, syndicate or Corp. a line of credit to 
 an amount not exceeding 25% of its total 
 capital, unimpaired surplus and net undivided 
 profits, subject to the several restrictions as 
 to percentage of entire board and right of 
 interested persons to vote on same contained 
 in said Secs. The records of the Co. shall 
 show how every director voted on the same, 
 and when such line of credit is given the 
 treasurer may pay out loans in accordance 
 therewith without further approval. A line 
 of credit so given shall expire in 6 months 
 unless renewed in the same manner in which 
 it is originally given. 
 
 Sec. 83. Such Corps, shall not make loans 
 or discounts on the security of the shares of 
 their own capital stock, nor be the purchasers 
 or holders of any such shares unless neces- 
 sary to prevent loss upon a debt previously 
 contracted in good faith; . . . 
 
 An Act additional to and amendatory of Chap. 48 of 
 
 the Revised Statutes of the State of Maine, as 
 amended, relating to the organization and 
 management of Trust Companies, 1907 
 
 Sec. i. Powers . . . 2d, to borrow monej r , 
 to loan money on credits, or real estate, or 
 
Trust Companies. 
 
 MAINE. 
 
 
 personal security, and to negotiate loans and 
 sales for others; . . . 4th, to hold and enjoy 
 all such estate, real, personal and mixed as 
 may be obtained by the investment of its 
 capital stock or any other moneys and funds 
 that may come into its possession in the course 
 of its business and dealings, and the same sell, 
 grant, and dispose of; . . . 
 
 Sec. 16. No Tr. Co. shall loan to any per- 
 son, firm, business syndicate, or Corp., an 
 amount or amounts, at any time outstanding 
 in excess of 10% of its total capital, unimpaired 
 surplus and net undivided profits, except on 
 approval of a majority of its entire invest- 
 ment board, unless secured by collateral, nor 
 in excess of 25% thereof, except on such ap- 
 proval and secured by collateral, which in the 
 judgment of said majority of said investment 
 board shall be of a value equal to the excess 
 of said loan above said 25% ; provided, that in 
 determining said amount every person, firm, 
 syndicate or Corp. appearing on any loan as 
 endorser, guarantor or surety, shall be re- 
 garded as an original promissor. But the dis- 
 count of bills of exchange drawn in good faith 
 against actually existing values, and the dis- 
 count of commercial or business paper actually 
 owned by the person negotiating the same, shall 
 not be considered as money borrowed. Pro- 
 vided, however, that any such Co. now having 
 loans outstanding in excess of any of the 
 aforesaid restrictions may permit the same to 
 be renewed from time to time as they mature, 
 for periods not exceeding 6 months each, if 
 an amount equal to not less than 10% of every 
 loan so maturing shall have first been paid in 
 in cash, and if an equivalent amount shall be 
 paid in at the end of every 6 months on all 
 demand loans in such aggregate. 
 

 
 
 
 
 
 
 
 # 
 
Savings Banks. 
 
 MASSACHUSETTS. 
 
 Municipal Law in red. Street Railway Law in 
 Railroad Law in green. brown. 
 
 Other matter in black. 
 
 MASSACHUSETTS 
 
 SAVINGS BANKS. 
 
 Corrected to and including 1912 Session. 
 
 Sec. 1. * * * Whenever used in this act, 
 the words “ savings banks,” and, unless the 
 context otherwise requires, the words 
 “ such corporations ” ; mean Sav. Bks. and 
 Tnsts. for Sav., incorporated as such in 
 this Commonwealth. 
 
 Sec. 31. * * * The board (of Invest- 
 
 ment) shall approve all loans made by the 
 Corp., all changes in the property or se- 
 curity pledged or the rates of interest 
 charged therefor, and all purchases or sales 
 of bonds, stocks and notes, and shall per- 
 form such other duties as the by-laws 
 may prescribe. A record shall be made 
 at each meeting of the transactions of the 
 board and the names of those present. 
 The members of said board may approve 
 changes of collateral on loans made un- 
 der the provisions of subdiv. e of clause 
 7th of Sec. 68 either by a vote of said 
 board or by signing a statement setting 
 forth all such changes. 
 
 Sec. 44. No president, treasurer, mem- 
 ber of a Bd. of Inv. or officer of such 
 Corp. charged with the duty of invest- 
 ing its funds shall borrow or use any por- 
 tion thereof, be surety for loans to others 
 or, directly or indirectly, whether acting 
 individually or as trustee holding prop- 
 erty in trust for another person, be an 
 obligor for money borrowed of the Corp.; 
 and if such member or officer hereafter, 
 either individually or as trustee holding 
 property in trust for another person, be- 
 comes the owner of real estate upon which 
 a Mtg. is held by the Corp., his office 
 shall become vacant at the expiration of 
 60 days thereafter unless he has ceased to 
 
MASSACHUSETTS 
 
 Savings Banks. 
 
 be the owner thereof or has caused said 
 Mtg.. to be discharged or assigned. The 
 provisions of this Sec. shall not apply to 
 any loans now held by such Corp., or to 
 renewals thereof, or to the deposit of 
 money, as provided in Sec. 68, in Bks. or 
 Tr. Cos. of which one or more trustees 
 or officers of such Corp. are directors. 
 
 Sec. 45. Such Corp. or a person acting 
 in its behalf, shall not directly or indi- 
 rectly negotiate, . take or receive a fee, 
 brokerage, commission, gift or other con- 
 sideration for or on account of a loan 
 made by or on behalf of such Corp., other 
 than appears on the face of the note by 
 which such loan purports to be made ; 
 but the provisions of this Sec. shall not 
 apply to a reasonable charge for services 
 in the examination of real estate or titles, 
 and the preparation of conveyances to 
 such Corp. as security for its loans. * * * 
 
 Sec. 68. Deposits and the income de- 
 rived therefrom shall be invested only as 
 follows : — 
 
 1st. In 1st Mtgs. of real estate situated 
 in this Commonwealth not to exceed 60% 
 of the value of such real estate; but not 
 more than 70% of the whole amount of 
 deposits shall be so invested. If a loan 
 is made on unimproved and unproduc- 
 tive real estate, the amount loaned thereon 
 shall not exceed 40% of the value of such 
 real estate. No loan on Mtg. shall be 
 made except upon written application show- 
 ing the date, name of applicant, amount 
 asked for and security offered, nor ex- 
 cept upon the report of not less than 2 
 members of the Bd. of Inv. who shall 
 certify on said application, according to 
 their best judgment, the value of the 
 premises to be mortgaged; and such ap- 
 plication shall be filed and preserved with 
 the records of the Corp. 
 
 At the expiration of every such loan 
 made for a period of 5 or more yrs. not 
 less than 2 members of the Bd. of Inv. 
 shall certify in writing, according to their 
 
 
 2 
 
Savings Banks. 
 
 MASSACHUSETTS. 
 
 best judgment, the value of the premises 
 mortgaged; and the premises shall be re- 
 valued in the same manner at intervals 
 of not more than 5 yrs. so long as they 
 are mortgaged to such Corp. Such re- 
 port shall be filed and preserved with the 
 records of the Corp. If such loan is 
 made on demand or for a shorter period 
 than 5 yrs., a revaluation in the manner 
 above prescribed shall be made of the 
 premises mortgaged not later than 5 yrs. 
 after the date of such loan and at least 
 every 5th yr. thereafter. If at the time 
 a revaluation is made the amount loaned 
 is in excess of 60%, or in the case of 
 unimproved and unproductive real estate 
 in excess of 40%, of the value of the 
 premises mortgaged, a sufficient reduction 
 in the amount of the loan shall be re- 
 quired, as promptly as may be practicable, 
 to bring the loan within 60%, or in the 
 case of unimproved and unproductive real 
 estate within 40%, of the value of said 
 premises. 
 
 2d. a. In the public funds of the U. S., 
 or of any of the New Eng. states. 
 
 # b. In the bonds or notes of a county, 
 city or town of this Commonwealth. 
 
 c. In the bonds or notes of an incor- 
 porated Dist. in this commonwealth whose 
 net debt does not exceed 5% of the last 
 preceding valuation of the property therein 
 for the assessment of taxes. 
 
 d. In the bonds or notes of any city 
 of Maine, New Hamp., Vt., R. I. or Conn., 
 whose net debt does not exceed 5% of 
 the last preceding valuation of the prop- 
 erty therein for the assessment of taxes; 
 or of any county or town of said states 
 whose net debt does not exceed 3% of 
 such valuation; or of any incorporated 
 water Dist. of said states which has within 
 its limits more than 5,000 inhabitants, and 
 whose bonds or notes are a direct obliga- 
 tion on all the taxable property of such 
 Dist, and whose net debt does not ex- 
 ceed 3% of such valuation. 
 
 3 
 
Savings Banks. 
 
 e. In the legally authorized bonds of 
 the states of N. Y., Penn., Ohio, Ind., 111 ., 
 Mich., Wis., Minn., Mo. and Iowa, and 
 of the Dist. of Col., and in the legally 
 authorized bonds for municipal purposes, 
 and in the refunding bonds issued to take 
 up at maturity bonds which have been 
 issued for other than municipal purposes, 
 but on which the int. has been fully paid, of 
 any city of the aforesaid states which has at 
 the date of such investment more than 
 30,000 inhabitants, as established by the last 
 Nat. or state census, or city census certified 
 to by the city clerk or Treas. of said city 
 and taken in the same manner as a national 
 or state census, preceding such investment, 
 and whose net debt does not exceed 5% of 
 the valuation of the taxable property therein, 
 to be ascertained by the last preceding val- 
 uation of property therein for the assess- 
 ment of taxes. 
 
 /. In the legally authorized bonds of the 
 states of Cal., Del., Neb., N. J., Ore. and 
 Wash., and in the legally authorized bonds 
 for municipal purposes or in ref’d. bonds 
 which have been issued for other than muni- 
 cipal purposes, but on which the interest has 
 been fully paid, of any city of the states of 
 Cal., Conn., Del., 111 ., Ind., Iowa, Ky., Mass., 
 Maine, Md., Mich., Minn., Mo., Neb., N. H., 
 N. J., N. Y., Ohio, Ore., Penn., R. I., Vt., 
 Wash, and Wis., which has at the date of 
 such investment more than 100,000 inhabit- 
 ants, established in the same manner as pro- 
 vided in subdiv. ( e ) of this clause, and 
 whose net debt does not exceed 7% of the 
 valuation of the taxable property therein, 
 established and ascertained as provided in 
 subdiv. ( e ) of this clause. (Clauses e and 
 f take effect July 1, 1912.) 
 
 g . In subdivs. d, e and f of this clause 
 the words “ net debt” mean the debt of 
 a county, city, town or Dist, omitting debts 
 created for supplying the inhabitants with 
 water and debts created in anticipation 
 of taxes to be paid within 1 yr., and de- 
 ducting the amount of sinking funds avail- 
 able for the payment of the debt included. 
 
Sayings Banks. 
 
 MASSACHUSETTS. 
 
 3d. a. In the bonds or notes, issued ac- 
 cording to the laws of this Commonwealth, 
 of a R. R. Corp. incorporated therein the 
 R. R. of which is located wholly or in 
 part therein, which has paid in dividends 
 in cash an amount equal to not less than 
 4% per annum on all its outstanding is? 
 sues of capital stock in each fiscal year, for 
 the 5 yrs. next preceding such investment, 
 or in the 1st Mtg. bonds of a terminal 
 Corp. incorporated in this commonwealth 
 and whose property is situated therein} 
 which is owned and operated, or the bonds 
 of which are guaranteed as to principal 
 and interest, or assumed, by such R. R. 
 Corp. Any shares of the capital stock of 
 a R. R. Corp. leased to such R. R. Corp., 
 which are owned by said lessee Corp.} 
 shall not be considered as outstanding 
 within the meaning of this subdiv. 
 
 b. In the bonds of a R. R. Corp. incor- 
 porated in any of the New Eng. states, at 
 least Yz of the R. R. of which is situated in 
 Said states, whether such Corp. is in pos- 
 session of and is operating its own Toad 
 or is leased fco another R. R. Corp.: pro- 
 vided, either that such bonds shall be se- 
 cured by a 1st Mtg. of the whole or a 
 part of the R. R. and R. R. property of 
 such Corp., or that if the R. R. and R. R. 
 property of such Corp. are unincumbered 
 by Mtg. such bonds shall be issued under 
 the authority of one of said states which 
 provides by law that no such R. R, Corp. 
 which has issued bonds shall subsequently 
 execute a Mtg. upon its road, equipment 
 and franchise or upon any of its real or 
 personal property, without including in 
 and securing by such Mtg. all bonds pre- 
 viously issued and all its pre-existing 
 debts and liabilities, which provision, so 
 enacted in each state, shall have been ac- 
 cepted by the stockholders of such Corp. ; 
 and provided, that such Corp. has paid 
 in dividends in cash an amount equal to 
 not less than 4% per annum on all its out- 
 standing issues' of capital, stock in each 
 
Savings Banks. 
 
 fiscal year for the 5 yrs. next preceding 
 such investment. 
 
 c- In the 1st Mtg. bonds of a R. R. Corp. 
 incorporated in any of the New Eng. 
 states, the R. R. of which is situated wholly 
 or in part therein, which have been guar- 
 anteed as to principal and interest or as- 
 sumed by a R. R. Corp. described in 
 sttbdivs. a or b which is in possession of 
 and is operating its own road; 
 
 d. In the Refd. Mtg. bonds, as de- 
 scribed in subdiv g, of a R. R. Corp. de- 
 scribed in subdiv. b or c; provided that 
 no bonds shall be made a legal invest- 
 ment by subdivs. b, c or d unless the Corp. 
 which issued, assumed or guaranteed such 
 bonds has, during its fiscal year next pre- 
 ceding the date of such investment, paid 
 in dividends on its capital stock an amount 
 equal in the case of bonds which it has 
 issued or assumed, to T ^rd the total amount 
 of interest paid on all its direct and as- 
 sumed funded debt, and in the case of 
 bonds which it has guaranteed, to J^rd 
 the total amount of interest paid on all 
 its direct, assumed and guaranteed funded 
 debt. 
 
 e. In the Mtg. bonds, as described in 
 any of the following subdivs. of this 
 clause, of any R. R. Corp. incorporated un- 
 der the laws of any of the U. S. : — 
 
 ^ Provided , that during each of the 10 
 fiscal yrs. of such R. R. Corp. next pre- 
 ceding the date of such investment, — 
 
 (1) Such R. R. Corp. owned in fee not 
 less than 500 miles of standard gauge 
 R R. v exclusive of sidings, within the 
 U. S., or if such Corp. owned in fee less 
 than 500 miles of such R. R., the gross 
 earnings of such Corp., reckoned as here- 
 inafter provided, shall have been not less 
 than $15,000,000; 
 
 (2) Such R„ R. Corp. shall have paid 
 the matured principal and interest of all 
 its Mtg. debt; 
 
 (3) Such R, R. Corp. shall have paid 
 in dividends in cash to its stockholders 
 
 6 
 
Savings Banks. 
 
 MASSACHUSETTS. 
 
 I 
 
 an amount equal to at least 4% upon all 
 its outstanding capital stock; 
 
 (4) The gross earnings from the opera- 
 tion of the property of such R. R. Corp., 
 including therein the gross earnings of all 
 R. Rs. leased and operated or controlled 
 and operated by said Corp., and the gross 
 earnings from the sale of coal from mines 
 owned or controlled by it, shall not have 
 been less in amount than 5 times the 
 amount necessary to pay the interest pay- 
 able upon its entire outstanding debt, the 
 rentals of all leased lines, and the inter- 
 est on all the outstanding debt of R. Rs. 
 controlled and operated which is not 
 owned by said Corp. after deducting from 
 said interest and rentals interest and divi- 
 dends received from the stocks, bonds or 
 notes of R. R. Corps, not operated by 
 said Corp., which have been deposited with 
 a trustee as the only security to secure 
 the payment of bonds or notes issued by 
 said Corp., but not in excess of the inter- 
 est on said last-named bonds or notes; 
 
 And further provided, that , — 
 
 (.5) No bonds shall be made a legal in- 
 vestment by subdiv, g in case the Mtg. 
 securing the same shall authorize a total 
 issue of bonds which, together with all 
 outstanding prior debts of the issuing or 
 assuming Corp., including all bonds not 
 issued that may legally be issued under 
 any of its prior Mtgs. or of its assumed 
 prior Mtgs., after deducting therefrom, in 
 case of a Refd. Mtg., the bonds reserved 
 under the provisions of said Mtg. to re- 
 tire prior lien debts at maturity, shall ex- 
 ceed 3 times the outstanding capital stock 
 of said Corp. at the date of such invest- 
 ment. 
 
 (6) No bonds shall be made a legal in- 
 vestment by subdiv. i or j in case the 
 Mtg. securing the same shall authorize a 
 total issue of bonds which, added to the 
 total debt of the guaranteeing Corp. as de- 
 fined in paragraph 5, including therein the 
 authorized amount of all previously guar- 
 
 7 
 
MASSACHUSETTS 
 
 Savings Banks. 
 
 anteed bond issues, shall exceed 3 times 
 the capital stock of such guaranteeing 
 Corp. outstanding at the date of such in- 
 vestment ; nor in case at said date the 
 total debt of the Corp. which issued said 
 bonds shall exceed 3 times its outstanding 
 capital stock. 
 
 In the case of a Mtg. executed prior 
 to the passage of this act, under which 
 the total amount of bonds which may be 
 issued is not specifically stated, the amount 
 of bonds outstanding thereunder at the 
 date of such investment shall be con- 
 sidered, for the purposes of paragraphs 
 5 and 6, as the total authorized issue. 
 
 (7) Any R. R. Corp. which is men- 
 tioned in subdiv. c of clause 4th of Sec. 
 26 of Chap. 1 13 of the Revised Laws shall 
 be considered as having complied with all 
 the requirements of this subdiv. preced- 
 ing paragraph 5 up to and including the 
 fiscal yr. of said Corp. in which this act 
 is passed. 
 
 Definition of First Mortgage . — f. When- 
 ever the term “ first mortgage ” is used in 
 the following subdivs., it shall mean, un- 
 less otherwise qualified, a 1st Mtig. on 
 not less than 75% of the R. R. owned in 
 fee at the date of the Mtg. by the R. R. 
 Corp. on the R. R. of which said Mtg. 
 is a lien, but in no case on less than too 
 continuous miles of standard gauge R. R., 
 exclusive of sidings: provided , that, — 
 
 75% of the R. R. subject to the lien 
 of said Mtg. is connected ; 
 
 For 5 yrs. prior to the date of invest- 
 ment therein all the R. R. subject to the 
 lien of said Mtg. at the date of execution 
 thereof has been operated by, and its opera- 
 tions included in, the operations of the 
 R. R. Corp. which issues, assumes or guar- 
 antees said bonds; 
 
 The date of said Mtg. is at least 5 yrs. 
 prior to the date of such investment ; ex- 
 cept that a 1st Mtg. given in substitution 
 for and not greater in amount than such a 
 ist Mtg., and covering the same R. R. prop- 
 
Savings Banks. 
 
 MASSACHUSETTS. 
 
 erty, shall be considered to be in accordance 
 with this requirement. 
 
 Direct Obligations— g. Bonds issued or 
 assumed by a R. R. Corp. described in sub' 
 div. e, which are secured by a Mtg. which 
 was at the date thereof or is at the date of 
 such investment 
 
 (1) A ist Mtg. on R.R. owned in fee 
 by the Corp. issuing or assuming said 
 bonds, except that, if it is not a ist Mtg. on 
 75 % of all such R. R. owned in fee by said 
 Corp., it shall be a 1st Mtg. on at least 75% 
 of the R. R. subject to the lien of said Mtg. 
 at the date thereof; but if any stocks or 
 bonds are deposited with the trustee of 
 said Mtg. as part security therefor, repre- 
 senting or covering R.R. mileage not owned 
 in fee, the bonds secured by said Mtg. shall 
 not become legal investments unless said 
 Corp. owns in fee at least 75% of the total 
 mileage which is subject to the lien of said 
 Mtg. and which is represented or covered 
 by said stocks or bonds; 
 
 (2) A 1st Mtg., or a Mtg. or trust in- 
 denture which is in effect a ist Mtg. iipon 
 all the R. R. subject to the lien of said Mtg., 
 or trust indenture by virtue of the irrevo- 
 cable pledge with the trustee thereof of an 
 entire issue or issues of bonds which are a 
 ist lien, upon the R. R. of a R. R. Corp. 
 which is owned and operated, controlled 
 and operated or leased and operated by the 
 Corp. issuing or assuming said bonds; 
 
 % (3) A Refd. Mtg. which covers at; least 
 75 % of the R. R. owned in fee by said 
 Corp. at the date of said Mtg. and provides 
 for the retirement of all outstanding, Mtg. 
 debts which are a prior lien upon said R, R. 
 owned in fee and covered by said Refd. 
 Mtg, at the date thereof; but if any of the 
 bonds which said Refd. Mtg. is given to re- 
 fund are secured on a R.R. not owned in 
 fee by the Corp. executing said Refd. Mtg.. 
 there shall be conveyed and assigned to the 
 trustee of said Refd. Mtg. either 
 
 At least 75% of the R. R. on which each 
 issue of bonds to be refunded is secured. 
 
 9 
 
MASSACHUSETTS 
 
 Savings Banks. 
 
 free from any Mtg. lien except that of the 
 Mtg. or Mtgs. securing the bonds to be re- 
 funded, or 
 
 At least 75% of the outstanding bonds of 
 each issue which is secured by a Mtg. lien 
 upon such R. R. ; and all of said R. R. not 
 owned in fee which is so subjected to the 
 lien of said Refd. Mtg. shall be the R. R. of 
 one or more R. R. Corps, which are owned 
 and operated, controlled and operated, or 
 leased and operated by the Corp. issuing or 
 assuming said Refd. Mtg. bonds; but in no 
 case shall the bonds secured by said Refd. 
 Mtg. become a legal investment unless they 
 mature at a later date than any bonds 
 which said Refd. Mtg. is given to refund, 
 nor unless the total mileage subjected to 
 the lien of said Refd. Mtg. in accordance 
 with the requirements of this paragraph is 
 at least 25% greater than the mileage cov- 
 ered by any one of the Mtgs. securing 
 bonds which said Refd. Mtg. is given to 
 refund. 
 
 (4) A Mtg. upon not less than 10% of 
 the R. R., exclusive of sidings, owned in 
 fee at the date of said Mtg. by the Corp. 
 issuing or assuming said bonds, but in no 
 case on less than 500 continuous miles of 
 standard gauge R. R. : provided , that,— 
 
 Said Mtg. is a 1st or 2d lien upon not less 
 than 75% of the total R. R. covered by said 
 Mtg. at the date thereof, and which pro- 
 vides for the retirement of all Mtg. debts 
 which are a prior lien upon said R. R. 
 owned in fee and covered by said Mtg., at 
 the date of the execution thereof ; 
 
 The bonds secured by said Mtg. mature 
 at a later date than, and cover a mileage 
 at least 25% greater than is covered by, 
 any of the bonds secured by a prior lien 
 Mtg. so to be retired ; 
 
 The date of said Mtg. shall be at least 
 5 yrs. prior to the date of such investment. 
 
 Bonds Underlying Refd . Mtgs. — h. Mtg. 
 bonds or bonds secured by Mtg. bonds 
 which are a direct obligation of, or which 
 have been assumed, or which have been 
 
 10 
 
Savings Banks. 
 
 MASSACHUSETTS. 
 
 guaranteed by endorsement as to J}oth 
 principal and interest, by a R. R. Corp. 
 whose Refd. Mtg. bonds are made a legal 
 investment under paragraphs 3 or 4 of sub- 
 div. g: provided, that: — 
 
 Said bonds are prior to and are to be re- 
 funded by such Refd* Mtg. ; 
 
 Said Refd. Mtg. covers all the real prop- 
 erty upon which the Mtg. securing said un- 
 derlying bonds is a lien ; 
 
 In the case of bonds so guaranteed or 
 assumed, the Corp. issuing said bonds is 
 owned and operated, controlled and oper- 
 ated, or leased and operated, by said R. R. 
 Corp. 
 
 Guaranteed Obligations. — i. Bonds which 
 have been guaranteed by endorsement as to 
 both principal and interest by a R. R. Corp. 
 which has complied with all the provisions 
 of subdiv. e: provided , that,— 
 
 Said bonds are secured by a 1st Mtg. on 
 the R. R. of a R. R. Corp. which is owned 
 and operated, controlled and operated, or 
 leased and operated, by the Corp. guaran- 
 teeing said bonds; 
 
 In the case of a leased R. R , the entire 
 capital stock of which, except shares quali- 
 fying directors, is not owned by the lessee, 
 the rental includes an amount to be paid to 
 the stockholders of said leased R. R. equal 
 to at least 4% per annum upon that por- 
 tion of the entire capital stock thereof out 
 standing which is not owned by the lessee. 
 
 j. 1st Mtg. bonds of a R. R. Corp. 
 which during each of its 10 fiscal yrs. next 
 preceding the date of such investment, has 
 complied with all the requirements of para- 
 graphs 2, 3, and 4 of subdiv. e, provided 
 that said bonds are guaranteed by endorse- 
 ment as to both principal and interest by a 
 R. R. Corp. which has complied with all the 
 requirements of subdiv. e preceding para- 
 graph 5, notwithstanding that the R. R. of 
 said issuing Corp. is not operated by said 
 guaranteeing Corp. 
 
 k. Bonds which have been or shall be- 
 come legal investments under any of 
 
MASSACHUSETTS 
 
 Savings Banks. 
 
 the provisions of this act shall not be 
 rendered illegal although the Corp. issu- 
 ing, assuming or guaranteeing such bonds 
 shall fail for a period not exceeding 2 
 successive fiscal yrs. to comply with the 
 requirements of paragraph 4 of subdiv. e; 
 but no further investment in the bonds 
 issued, assumed or guaranteed by said 
 Corp. shall be made during said period. 
 If after the expiration of said period said 
 Corp. complies for the following fiscal yr. 
 with all the requirements of subdiv. e s it 
 shall be regarded as having complied there- 
 with during said period. 
 
 /. Bonds which have been or shall be- 
 come legal investments under any of the 
 provisions of this act shall not be ren- 
 dered illegal, although the property upon 
 which they are secured has been or shall 
 be conveyed to or legally acquired by an- 
 other R. R. Corp., and although the Corp. 
 which issued or assumed said bonds has 
 been or shall be consolidated with an- 
 other R. R. Corp., if the consolidated or 
 purchasing Corp. shall assume the pay- 
 ment of said bonds and so long as it shall 
 continue to pay regularly interest or 
 dividends, or both, upon the securities is- 
 sued against, in exchange for, or to ac- 
 quire the stock of the Corp. consolidated, 
 or the property purchased, or upon se- 
 curities subsequently issued in exchange 
 or substitution therefor, to an amount at 
 least equal to 4% per annum upon the 
 capital stock, outstanding at the time of 
 such consolidation or purchase, of said 
 Corp. which issued or assumed said bonds. 
 
 m. If a R. R. Corp. which has com- 
 plied with all the requirements of subdiv. 
 c preceding paragraph 5, except that the 
 period of compliance is less than 10, but 
 not less than 5 successive yrs., shall be, 
 or shall have been, thereupon consolidated 
 or merged with, or its R. R. purchased 
 and all of the debts of such Corp. as- 
 sumed by, another R. R. Corp. incor- 
 porated under the laws of any of the 
 
Savings Banks. 
 
 MASSACHUSETTS. 
 
 U. S., such Corp. so succeeding shall be 
 considered as having complied with all the 
 provisions of subdiv. e preceding para- 
 graph 5 during those successive yrs. next 
 preceding the date of such consolidation, 
 merger or purchase in which all said con- 
 solidated, merged or purchased Corp., if 
 considered as one continuous Corp. in 
 ownership and possession, would have so 
 complied : provided , that said succeeding 
 Corp. shall continue so to comply for a 
 further period which shall make such 
 compliance equivalent to at least 10 succes- 
 sive yrs., but in no case less than the 2 
 fiscal' yrs. next following said consolida- 
 tion, merger or purchase. 
 
 In this act, unless the context other- 
 wise requires, “ railroad corporation ” 
 means a Corp. which owns or is in pos- 
 session of and operating a R. R. or Rwy. 
 of the class usually operated by steam 
 power ; 
 
 ti. St. Rwy. Corps, are not R. R. Corps, 
 within the meaning of this act. 
 
 4th. The provisions of this act shall 
 not render illegal the investment in any 
 Mtgs. of real estate held by such Corp. at 
 the time of its passage, nor the invest- 
 ment at such time or thereafter in any 
 issue of bonds or notes dated prior to its 
 passage, in which such Corp. was then 
 authorized to invest, so long as such 
 bonds or notes continue to comply with 
 the requirements of law then in force. 
 
 5th. In the bonds of any St. Rwy. Corp. 
 incorporated in this Commonwealth, the 
 Rwy. of which is situated wholly or in 
 part therein, and which has earned and 
 paid in dividends in cash an amount 
 equal to at least 5% upon all its outstand- 
 ing capital stock in each of the 5 yrs. last 
 preceding the certification by the Bd. of 
 R. R. Corns, hereinafter provided for. 
 No such investment shall be made unless 
 said Corp. appears from returns made by 
 it to the Bd. of R. R. Corns, to have 
 properly paid said dividends without im- 
 
 13 
 
MASSACHUSETTS 
 
 Savings Banks. 
 
 isi 
 
 pairment of assets or capital stock, and 
 said Bd. shall on or before the 15th day 
 of Jan. in each yr. certify and transmit 
 to the Bk. Com. a list of such St. Rwy. 
 Corps. 
 
 Dividends paid by way of rental to 
 stockholders of a leased St. Rwy. Corp. 
 shall be deemed to have been earned and 
 paid by said Corp. within the meaning 
 of this clause, provided said Corp. shall 
 have annually earned and properly paid 
 in dividends in cash, without impairment 
 of assets or capital stock, an amount 
 equal to at least 5% upon all its outstand- 
 ing capital stock in each of the 5 fiscal 
 yrs. next preceding the date of the lease 
 thereof. 
 
 If 2 or more St. Rwy. Corps, have been 
 consolidated by purchase or otherwise 
 during the 5 yrs. prior to said certifica- 
 tion, the payment severally from the earn- 
 ings of each yr. of dividends equivalent 
 in the aggregate to a dividend of 5% 
 on the aggregate capital stocks of the 
 several Corps, during the yrs. preceding 
 such consolidation shall be sufficient for 
 the purpose of this act. 
 
 6th. In the bonds of any Telephone 
 Co. subject to the provisions of Sec. 37 
 of Chap. 14 of the Revised Laws, and 
 of which a majority of the directors are 
 residents of the Commonwealth : — 
 
 Provided , that during each of the 5 
 fiscal yrs. of such Tel. Co. next preced- 
 ing the date of such investment — 
 
 (1) The gross income of such Tel. Co. 
 shall have been not less than $10,000,000 
 per annum. 
 
 (2) Such Tel. Co. shall have paid the 
 matured principal and interest of all its 
 indebtedness. 
 
 (3) Such Tel. Co. shall have paid in 
 dividends in cash an amount equal to not 
 less than 6% per annum on all its out- 
 standing issues of capital stock. 
 
 (4) The dividends paid on the capital 
 stock of such Tel. Co. shall not have been 
 
 14 
 
Savings Banks. 
 
 MASSACHUSETTS. 
 
 less than the total amount necessary to 
 pay the interest upon its entire outstand- 
 ing indebtedness. 
 
 And further provided, that such bonds 
 shall be secured either (a) by a ist Mtg. 
 upon at least 75% of the property of 
 such Tel. Co., or ( b ) by the deposit with 
 a Tr. Co. incorporated under the laws 
 of this Commonwealth of bonds and shares 
 of stock of other Tel. Corps., under an 
 indenture of Tr. which limits the amount 
 of bonds so secured to 75% of the value 
 of the securities deposited as stated and 
 determined in said indenture, and pro- 
 vided that during each of the 5 yrs. next 
 preceding such investment the annual in- 
 terest and dividends paid in cash on the 
 securities deposited have amounted to 
 not less than 50% in excess of the annual 
 interest on the bonds outstanding and 
 secured by said deposit. Not more than 
 2% of the deposits of any Sav. Bk. shall 
 be invested in the bonds of Tel. Cos.; 
 
 7th. In the stock of a banking associa- 
 tion situated in the New Eng. states and 
 incorporated under the authority of the 
 U. S., or in the stock of a Tr. Co. in- 
 corporated under the laws of and doing 
 business within this Commonwealth ; but 
 such Corp. shall not hold, both by way 
 
 of investment and as security for loans, 
 more than 20% of its deposits in the 
 
 stock of such associations or Cos., nor 
 in any one such association or Co. more 
 than 3 % of its deposits in, nor more 
 
 than $100,000 nor more than J4th of the 
 capital stock of, such association or Co. 
 Such Corp. may deposit not more than 
 
 2 j 4 % of its deposits in any banking asso- 
 ciation incorporated under the authority 
 of the U. S. and situated in this Com- 
 monwealth, and in any Tr. Co., incor- 
 porated in this Commonwealth; but such 
 deposit shall not in any case exceed 
 $500,000 nor 25% of the capital stock and 
 surplus fund of such depositary. 
 
 8th. In loans of the classes hereafter 
 
 16 
 
MASSACHUSETTS 
 
 Savings Banks. 
 
 described, payable and to be paid or re- 
 newed at a time not exceeding i yr. from 
 the date thereof ; but not more than y§rd 
 of the deposits and income shall so be 
 invested, nor shall the total liabilities to 
 such Corp. of a person, partnership, asso- 
 ciation or Corp. for money borrowed upon 
 personal security, including in the liabili- 
 ties of a partnership or Co. not incor- 
 porated the liabilities of the several mem- 
 bers thereof, exceed 5% of such deposits 
 and income. 
 
 a. A note which is the joint and sev- 
 eral obligation of 3 or more responsi- 
 ble citizens of this Commonwealth : pro- 
 vided, that the total liabilities to such 
 Corp. of a person, partnership or asso- 
 ciation, for money borrowed under this 
 subdiv., including in the liabilities of a 
 partnership or Co. not incorporated the 
 liabilities of the several members thereof, 
 shall not exceed 1% of the deposits of 
 such Corp. 
 
 b. A note, with 1 or more substantial 
 sureties or endorsers : of a Corp. incor- 
 porated in this Commonwealth ; or of a 
 manufacturing Corp. with a commission 
 house as surety or endorser, provided 
 that such commission house is incorporated 
 in this Commonwealth, or has an estab- 
 lished place of business and a partner 
 resident therein ; or of an association or 
 Corp. at least Y> of the real and per- 
 sonal property of which is situated within 
 the New Eng. states, provided that at least 
 1 such surety or endorser shall be a citi- 
 zen of or Corp. incorporated in this 
 Commonwealth : provided, 'that no such 
 loan shall be made or renewed unless 
 within 18 Mos. next preceding the mak- 
 ing or renewing of such loan an exami- 
 nation of the affairs, assets and liabilities 
 of the borrowing Corp. or association has 
 been made, at the expense of such bor- 
 rowing Corp. or association, by an ac- 
 countant approved by the commissioner. 
 The report of such examination shall be 
 
 16 
 
Savings Banks. 
 
 MASSACHUSETTS. 
 
 made in such form as the commissioner 
 may prescribe. A copy of the report 
 certified to by the accountant shall be 
 delivered to the said Corp. before such 
 loan or a renewal thereof is made, and 
 a copy so certified shall be delivered to 
 the commissioner within 30 days after 
 the completion of said examination. 
 
 c. A bond or note of a gas, electric 
 light, telephone or st reet rah way Corp. in- 
 corporated or doing business in this 
 Commonwealth and subject to the control 
 and supervision thereof : provided , that the 
 net earnings of such Corp., after the pay- 
 ment of all operating expenses, taxes 
 and interest, as reported to, and accord- 
 ing to the requirements of, the proper 
 authorities of the Commonwealth, have 
 been in each of the 3 fiscal yrs. next pre- 
 ceding the making or renewing of such 
 loan equal to not less than 4% on all its 
 capital stock outstanding in each of said 
 years. 
 
 d. A bond or note of a R, R, Corp. 
 which complies with all the requirements 
 of subdiv. b, or of subdiv. e preceding 
 paragraph 5, of clause 3rd : provided , that 
 the principal of such bond or note de- 
 scribed in either this or the preceding 
 subdiv. is payable at a time not exceed- 
 ing 1 yr. after the date of investment 
 therein, 
 
 e. A note of a responsible borrower 
 in such form as the commissioner may 
 approve, with a pledge as collateral of : — 
 
 (1) 1st Mtgs. of real estate authorized 
 for investment by clause 1st; or 
 
 (2) Bonds or notes authorized for in- 
 vestment by clauses 2nd, 3rd, 4th, 5th, or 
 6th at no more than 90% of the market 
 value thereof, at any time while such 
 note is held by such Corp. ; or 
 
 (3) Deposit books of depositors in Sav. 
 Bks. at no more than 90% of the amount 
 of deposits shown therein; or 
 
 (4) Shares of R. R. Corps, described 
 in subdivs. a, b or e of clause 3rd at no 
 
 17 
 
MASSACHUSETTS 
 
 Savings Banks. 
 
 more than 80% of the market value 
 thereof, at any time while such note is 
 held by such Corp. ; or 
 
 (5) Such other bonds, notes or shares 
 of Corps, or associations and at such per- 
 centages of their market values as the 
 Bd. of Inv. shall approve, provided, that, 
 if the commissioner shall disapprove any 
 such bonds, notes or shares, he shall make 
 such recommendations in writing to the 
 Bd. of Inv. of such Corp. as the case 
 may require, and shall include in his an- 
 nual report a statement of the facts in 
 each case in which such Bd. of Inv. has 
 not complied with his recommendations in 
 a manner satisfactory to him. 
 
 f. Whenever used in this clause, the 
 word “ association ” means an association 
 the business of which is conducted or 
 transacted by trustees under a written in- 
 strument or declaration of trust. 
 
 [Clause 8th of Sec. 68th took ef- 
 fect on Nov. 1st, 1908, and no loans on 
 personal security shall be made or re- 
 newed thereafter except under the pro- 
 visions of said clause; but for good cause 
 and to prevent loss or embarrassment to 
 such Corp., or unnecessary loss or injury 
 to a borrower therefrom, the commis- 
 sioner may grant an additional time within 
 which a loan may be renewed not in ac- 
 cordance with the provisions of said 
 clause.] 
 
 9th. A sum not exceeding the guaranty 
 fund and undivided earnings of such Corp., 
 nor in any case exceeding 5% of its de- 
 posits or $200,000, may, subject to the ap- 
 proval of the commissioner, be invested 
 in the purchase of a suitable site and the 
 erection or preparation of a suitable build- 
 ing for the convenient transaction of its 
 business. 
 
 10th. Such Corp. may hold real estate 
 acquired by the foreclosure of a Mtg. 
 owned by it, or by purchase at sales made 
 under the provisions of such Mtg. or 
 upon judgments for debts due to it, or 
 
 
 18 
 
Savings Banks. 
 
 MASSACHUSETTS. 
 
 in settlements effected to secure such 
 debts. Such Corp. shall sell all such real 
 estate within 5 yrs. after the title thereof 
 is vested in it, and notwithstanding the 
 provisions of clause 1st may take a Mtg. 
 thereon from a bona fide purchaser to 
 secure the whole or a part of the pur- 
 chase price; but the commissioner may, 
 upon the petition of the Bd. of Inv. of 
 such Corp., and for cause, grant an ad- 
 ditional time for the sale of the same 
 or of the securities mentioned in the fol- 
 lowing clause. 
 
 nth. Such Corp. may hold stocks, bonds, 
 notes, or other securities acquired in set- 
 tlements effected to secure loans or debt; 
 but unless the time during which such 
 securities may be held is extended as pro- 
 vided in the preceding clause, they shall 
 be sold within 5 yrs. after being acquired. 
 
 12th. The provisions of this act shall 
 not invalidate or impair the title of a 
 Corp. to securities which have been or may 
 be held by it in pledge or as security for 
 a loan or debt ; and the same shall be 
 held for the purposes for which they were 
 pledged. 
 
 13th. Not later than the 1st day of 
 Feb, in each yr. the commissioner shall 
 prepare a list of all the bonds and notes 
 which are then legal investments under 
 the provisions of clauses 3d, 4th, 5th, and 
 6th ; and said list shall at all times be 
 open to public inspection and a copy 
 thereof shall be sent to every Sav. Bk. 
 
 Sec. 70. The provisions of this act, 
 so far as they are the same as those of 
 existing laws, shall be construed as a 
 continuation of such laws and not as new 
 enactments ; and the repeal by this act 
 of any provision of law shall not revive 
 any law heretofore repealed or super- 
 seded ; nor shall it affect any act done, 
 liability incurred, or any right accrued and 
 established, or any suit or prosecution, 
 * * 
 
 19 
 
MASSACHUSETTS. 
 
 Trust Companies. 
 
 i 
 
 Chapter 561, Acts of 1907. 
 
 An Act to permit Sav. Bks. to estab- 
 lish life insurance departments. 
 
 Sec. 9. The funds of the Ins. Dept., 
 whether arising from premiums, annuity 
 contracts, guaranty funds, or from the 
 income thereof, and whether constituting 
 Ins. reserve or surplus, shall be invested 
 in the same classes of securities and in 
 the same manner in which the deposits 
 of the Sav. Dept, are or may hereafter 
 be required by law to be invested, except 
 that it may make loans upon any policy 
 of Ins. or annuity contract issued by it 
 to the extent specified in Sec. 15. 
 
 (Then after providing for General Ins. 
 Guaranty Fund, the law reads as fol- 
 lows ;) 
 
 Sec. 20. The funds of the General Ins. 
 Guaranty Fund shall be invested in the 
 same classes of securities and in the same 
 manner in which the deposits of the Sav. 
 Dept, are, or may hereafter by law be 
 required to be invested; but the trustees 
 of said fund shall be at liberty to deposit 
 in any Sav. Bk. any funds on hand which 
 by reason of the smallness of the amount 
 or for any other reason cannot, in the 
 opinion of the trustees, otherwise properly 
 be invested at that time. 
 
 TRUST COMPANIES. 
 
 Sec. 1. Domestic Tr. Cos. incorporated 
 subsequent to the 28th day of May in the 
 yr. 1888 shall be subject to provisions of 
 this Chap., and any such Corp. chartered 
 prior to said date which has adopted or 
 which Shall adopt according to law the 
 provisions of this Chap, or of any. Sec. 
 thereof, or the corresponding provisions 
 of earlier laws, shall be subject to the pro- 
 visions so adopted; and all such Corps., 
 whenever incorporated, shall be subject to 
 the provisions of Secs. 14, 15, and 18 
 to 22, inclusive, Sec. 24, so much of Sec. 
 37 as applies to Corps, exercising the 
 
 20 
 
Trust Companies. 
 
 MASSACHUSETTS. 
 
 powers conferred by the provisions of 
 Sec. 18, and Sec. 38; but the provisions of 
 Sec. 24 so far as they are inconsistent 
 with the provisions of the charter of a 
 Tr. Co. incorporated prior to the 28th 
 day of May in the yr. 1888 shall not apply 
 to such Corp. in the performance of its 
 duties as trustee. 
 
 'Sec. 13. Such Corps, may, subject to 
 the limitations of the following Sec., ad- 
 vance money or credits, whether capital or 
 general deposits, on real property situated 
 within this Commonwealth and on per- 
 sonal security, on terms that may be 
 agreed upon, and also invest its money 
 or credits, whether capital or general de- 
 posits, in the stock, bonds or other evi- 
 dences of debt of Corps. 
 
 Sec. 14. No Tr. Co. shall advance 
 money or credits upon notes secured by 
 deed of Tr. or by Mtg. upon farms or 
 agricultural or unimproved land outside 
 of this Commonwealth, except upon land 
 situated in the New Eng. States or the 
 State of N. Y., nor invest in nor make 
 loans upon the bonds or other securities 
 of a Co. negotiating or dealing in such 
 notes so secured or in such Mtgs. 
 
 Sec. 15. No Tr. Co. shall as agent, buy, 
 sell or negotiate securities or evidences of 
 debt on which said Co. may not lawfully 
 advance money or credits, nor as such 
 agent buy, sell or negotiate evidences of 
 debts secured exclusively by real estate 
 under Mtg. or deed of trust. 
 
 Sec. 16. A court of law or equity, or 
 a court of probate and insolvency of this 
 Commonwealth, may direct that money or 
 property under its control, or which may 
 be paid into court by parties to any legal 
 proceedings, or which may be brought 
 into court by reason of an order or judg- 
 ment, be deposited with such Corp., upon 
 siich terms and subject to such instruc- 
 tions as the court may prescribe. * * * 
 Such Corp. may also hold money or prop- 
 erty in trust, or on deposit from execu- 
 
MASSACHUSETTS. 
 
 Trust Companies. 
 
 tors, administrators, assignees, guardians 
 and trustees, upon such terms and condi- 
 tions as may be agreed upon. 
 
 Sec. i 7. Money or property received 
 under the provisions of the preceding Sec. 
 shall be loaned on or invested only in 
 the authorized loans of the U. S., or any 
 of the New Eng. States, the counties or 
 cities thereof, or of the States of 111., 
 Iowa, Mich., Minn., Wis., or the counties 
 or cities thereof, or stocks of State or 
 Nat. Bks. organized within this Com- 
 monwealth, or in the first Mtg. bonds of a 
 R. R. Corp. incorporated in any of the 
 New Eng. States and whose road is lo- 
 cated wholly or in part in the same and 
 which has earned and paid regular divi- 
 dends on all its issues of capital stock 
 for 2 yrs. last preceding such loan or 
 investment, or in the bonds of any such 
 R. R. Co. unencumbered by Mtg., or in 
 1st Mtgs. on real estate in this Com- 
 monwealth, or in any securities in which 
 Sav. }Bks. may invest, or upon notes with 
 2 sureties of domestic manufacturing 
 Corps, or of individuals with a sufficient 
 pledge as collateral of any of the afore- 
 said securities ; but all real estate acquired 
 by foreclosure of Mtg. or by levy of 
 execution shall be sold at public auction 
 within 2 yrs. after such foreclosure or 
 levy. 
 
 Sec. 18. Such Corp. may be appointed 
 executor of a will, codicil or writing tes- 
 tamentary, administrator with the will an- 
 nexed, administrator of the estate of any 
 person, receiver, assignee, guardian, or 
 trustee under a will or instrument creat- 
 ing a trust for the care and management 
 of property, under the same circum- 
 stances, in the same manner, and subject 
 to the same control by the court hav- 
 ing jurisdiction of the same, as a legally 
 qualified person. Any such appointment 
 as guardian shall apply to the estate and 
 not to the person of the ward. Such 
 Corp. shall not be required to receive or 
 
 22 
 
Trust Companies. 
 
 MASSACHUSETTS. 
 
 hold property or money or assume or 
 execute a trust under the provisions of 
 this or of Sec. 16 without its assent. 
 
 Sec. 23. A person creating a trust may 
 direct whether money or property depos- 
 ited under it shall be held and invested 
 separately or invested in the general trust 
 fund of the Corp. ; and such Corp. act- 
 ing as trustee shall be governed by di- 
 rections contained in a will or instrument 
 under which it may act. 
 
 Sec. 24. Money, property or securities 
 received, invested or loaned under the 
 provisions of Secs. 16 to 18, inclusive, shall 
 be a special deposit in such Corp., and 
 the accounts thereof shall be kept sep- 
 arate. Such funds and the investment or 
 loans thereof shall be specially appro- 
 priated to the security and payment of 
 such deposits, shall not be mingled with 
 the investments of the capital stock or 
 other money or property belonging to such 
 Corp., or be liable for the debts or ob- 
 ligations thereof. For the purpose of this 
 Sec., such Corps, shall have a Tr. Dept, 
 in which all business authorized by said 
 Secs. 16 to 18, inclusive, shall be kept 
 separate and distinct from its general 
 business. 
 
 Sec. 25. * * * Such (guaranty) fund 
 
 shall be invested in such securities only 
 as the trust deposits may be invested in. 
 The accounts of its investment and man- 
 agement, and the securities in which it is 
 invested, shall be kept in the Tr. Dept. 
 
 Sec. 29. Every such Corp. chartered 
 subsequent to the 21st day of May in the 
 yr. 1896, after a deduction of all reason- 
 able expenses and losses incurred during 
 the yr. in the management thereof, shall 
 annually set aside not less than 10% of 
 its remaining earnings as a guaranty fund, 
 until such fund amounts to 25% of its 
 capital, which fund shall be invested in 
 the same manner as deposits in Sav. Bks. 
 may be invested. 
 
 Sec. 33. No such Corp. shall make a 
 
MASSACHUSETTS. 
 
 Trust Companies. 
 
 loan or discount on the security of the 
 shares of its own capital stock, nor be the 
 purchaser or holder of such shares, un- 
 less such security or purchase shall be 
 necessary to prevent loss upon a debt pre- 
 viously contracted in good faith ; and 
 stock so purchased or acquired shall, within 
 6 Mos. after its purchase, be sold or dis- 
 posed of at public or private sale. 
 
 Sec. 34. The total liabilities of a per- 
 son, other than cities or towns, for 
 money borrowed, including in the liabili- 
 ties of a firm the liabilities of its sev- 
 eral members, to such Corps, having a 
 capital stock of $500,000 or more shall 
 at no time exceed i-5th part of the sur- 
 plus account and of such amount of 
 the capital stock as is actually paid up, 
 and to any other such Corp. shall at no 
 time exceed i-5th of such amount of the 
 capital stock of the Corp. as is actually 
 paid up; but the discount of bills of ex- 
 change drawn in good faith against act- 
 ually existing values, and the discount 
 of commercial or business paper actually 
 owned by the person negotiating it, shall 
 not be considered as money borrowed. 
 
 Sec. 35. Such Corp. may hold real es- 
 tate unencumbered by Mtg. suitable for 
 the transaction of its business to an amount 
 including the cost of alterations and ad- 
 ditions in the nature of permanent fix- 
 tures, not exceeding 25% of its capital ac- 
 tually paid in, and in no case to exceed 
 $250,000; but the provisions of this Sec. 
 shall not require such Corp. to change an 
 investment legally made prior to the 18th 
 day of Apr. in the yr. 1894. 
 
 Sec. 1. Every Tr. Co. soliciting or re- 
 ceiving deposits (a) which may be with- 
 drawn only on presentation of the pass- 
 book or other similar form of receipt 
 which permits successive deposits or 
 withdrawals to be entered thereon ; or 
 (b) which at the option of the Tr. Co. 
 may be withdrawn only at the expiration 
 of a stated period after notice of inten- 
 
 24 
 
Trust Companies. 
 
 MASSACHUSETTS. 
 
 tion to withdraw has been given; or (c) 
 in any other way which might lead the 
 public to believe that such deposits are 
 received or invested under the same con- 
 ditions or in the same manner as deposits 
 in Sav. Bks. ; shall have a Sav. Dept, in 
 which all business relating to such de- 
 posits shall be transacted. 
 
 Sec. 2. All such deposits shall be spe- 
 cial deposits and shall be placed in said 
 Sav. Dept., and all loans or investments 
 thereof shall be made in accordance with 
 the statutes governing the investment of 
 deposits in Sav. Bks. The duties of the 
 Bd. of Inv. relative to the investment of 
 such deposits shall be performed by a 
 board or committee appointed by the board 
 of directors of such Corp. 
 
 Sec. 3. Such deposits and the invest- 
 ments or loans thereof shall be appro- 
 
 priated solely to the security and payment 
 of such deposits, and shall not be min- 
 gled with the investments of the capital 
 
 stock or other money or! property be- 
 
 longing to or controlled by such Corp., 
 or be liable for the debts or obligations 
 thereof until after the deposits in said 
 Sav. Dept, have been paid in full. The 
 accounts and transactions of said Sav. 
 Dept, shall be kept separate and distinct 
 from the general business of the Corp. 
 
 Sec. 6. All Sav. deposits which are not 
 now invested in accordance with the pro- 
 visions of this act shall be so invested, 
 at least i-5th part before the 1st day of 
 Nov. in each yr. after the passage of 
 this act, beginning with the yr. 1909, and 
 all such deposits shall be so invested be- 
 fore the 1st day of Nov. in the yr. 1913. 
 
 Sec. 8. Every Tr. Co. doing business 
 within the Commonwealth shall at all 
 times have on hand as a reserve an 
 amount equal to at least 15% of the ag- 
 gregate amount of its deposits exclusive 
 of Sav. deposits, and of time deposits rep- 
 resented by certificates or agreements in 
 writing and payable only at a stated time, 
 
 25 
 
MASSACHUSETTS. 
 
 Trust Companies. 
 
 but whenever such time deposits may be 
 withdrawn within 30 days they shall be 
 subject to the reserve requirements of 
 this act; and every Tr. Co. doing busi- 
 ness in the city of Boston shall at all times 
 have on hand as a reserve an amount 
 equal to at least 20% of the aggregate 
 amount of its deposits computed in the 
 same manner. 
 
 Sec. 9. Not less than 2-5ths of such 
 reserve shall consist either of lawful 
 money of the U. S., gold certificates, silver 
 certificates or notes and bills issued by 
 any lawfully organized national banking 
 association, and the remainder of such 
 reserve may consist of balances, payable 
 on demand, due from any Tr. Co. in the 
 city of Boston authorized to act as re- 
 serve agent as hereinafter provided, or 
 from any Nat. banking Asso. doing busi- 
 ness either in this Commonwealth or in 
 the cities of New York, Philadelphia, Chi- 
 cago or Albany; but a portion not ex- 
 ceeding i-5th of such reserve may consist 
 of bonds of the U. S. or of this Com- 
 monwealth. computed at their fair market 
 value, which are the absolute property 
 and in the possession of such Corp. ; pro- 
 vided that the aggregate amount of law- 
 ful money of the U. S., gold certificates, 
 silver certificates and notes and bills is- 
 sued by any lawfully organized Nat. 
 banking Asso. held by such Corp. shall 
 at all times be equal to at least 5% of 
 the aggregate amount of all its time and 
 demand deposits exclusive of deposits in 
 its Sav. Dept. 
 
 Sec. 10. The Bk. Com. may authorize 
 any Tr. Co. in the city of Boston to act 
 as reserve agent for Tr. Cos. doing busi- 
 ness in this Commonwealth ; provided, 
 however, that a Tr. Co. shall not keep 
 any part of its reserve in a Tr. Co., so 
 authorized to act as reserve agent with- 
 out first obtaining the consent in writing 
 of the Bk. Com. Not less than J 4 of 
 the reserve of such Tr. Co. acting as re- 
 
 26 
 
Trust Companies. 
 
 MASSACHUSETTS. 
 
 serve agent shall consist of lawful money 
 of the U. S., gold certificates, silver cer- 
 tificates or notes and bills issued by any 
 lawfully organized Nat. banking Asso., 
 and the remainder of such reserve may 
 consist of balances, payable on demand, 
 due from any Tr. Co. in the city of Bos- 
 ton authorized to act as reserve agent 
 as herein provided, or from any Nat. 
 banking Asso. doing business either in this 
 Commonwealth or in the cities of New 
 York, Philadelphia, Chicago or Albany. 
 
 Sec. ii. If the reserve of any Tr. Co. 
 is at any time less than the amount which 
 it is required to keep on hand, such Tr. 
 Co. shall not make any new loans or in- 
 vestments until the required proportion 
 between the aggregate amount of its de- 
 posits and reserve shall be restored. 
 
Savings Banks 
 
 MASSACHUSETTS 
 
 COMMONWEALTH OF MASSACHUSETTS 
 OFFICE OF THE BANK COMMISSIONER 
 BOSTON, Jan. 20, 1913. 
 
 To Treasurers of Savings Banks: 
 
 The following is a list of bonds and notes which, 
 in the opinion of this department, are now legal in- 
 vestments under the provisions of clauses second , 
 third, fourth , fifth and sixth of section 68 of chap- 
 ter 590, Acts of 1908. Clause second , relating to 
 investments in public funds, has been applied only 
 to those counties, cities, towns and districts which 
 appear to have bonds or notes outstanding, and 
 from which debt statements could be obtained. 
 Clause third is the general law relating to rail- 
 road bonds. Clause fourth provides that issues 
 which complied with the old law shall continue, 
 under certain conditions, to be legal investments. 
 The banks may not only continue to hold such 
 bonds, but may invest further in them. In this list 
 the bonds which do not comply with clauses second 
 and third, but continue legal through clause fourth , 
 are printed in italics and the reason in each case is 
 explained in the footnotes. Clause fifth relates to 
 investments in street railway bonds, and clause 
 sixth to investments in telephone company bonds. 
 
 Investment in bonds or notes of cities, towns and 
 districts mentioned in the list should not be made 
 without further inquiry, as both their indebtedness 
 and their valuations for the assessment of taxes 
 are constantly changing. 
 
 Respectfully yours, 
 AUGUSTUS L. THORNDIKE, 
 
 Bank Commissioner . 
 
MASSACHUSETTS 
 
 Savings Banks 
 
 I 
 
 p 
 
 Public funds of the United States and of the 
 
 following States: — 
 
 California 
 
 Connecticut 
 
 Delaware 
 
 Illinois 
 
 Indiana 
 
 Iowa 
 
 Maine 
 
 Massachusetts 
 
 Michigan 
 
 Minnesota 
 
 Missouri 
 
 Nebraska 
 
 New Hampshire 
 
 New Jersey 
 
 New York 
 
 Ohio 
 
 Oregon 
 
 Pennsylvania 
 
 Rhode Island 
 
 Vermont 
 
 Washington 
 
 Wisconsin 
 
 District of Columbia 
 
 Bonds or notes of the following counties, cities, 
 towns and districts in New England: — 
 
 Maine. 
 
 Counties. 
 
 Androscoggin 
 
 Aroostook 
 
 Kennebec 
 
 Cities. 
 
 Auburn 
 
 Augusta 
 
 Bangor 
 
 Belfast 
 
 Biddeford 
 
 Brewer 
 
 Calais 
 
 East port 
 
 Ellsworth 
 
 Gardiner 
 
 Hallowell 
 
 Lewiston 
 
 Portland 
 
 Saco 
 
 Westbrook 
 
 T owns. 
 Boothbay Harbor 
 Brunswick 
 Caribou 
 Dexter 
 
 East Livermore 
 
 Fairfield 
 
 Kennebunk 
 
 Lisbon 
 
 Lubec 
 
 Old Orchard 
 
 Rumford 
 
 Yarmouth 
 
 W ater Districts. 
 Augusta 
 
 Brunswick and Topsham 
 
 Gardiner 
 
 Kennebec 
 
 Kit ter y* 
 
 Portland 
 Van Bureri* 
 
 New Hampshire. 
 Counties. 
 
 Belknap 
 
 Coos 
 
 Hillsborough 
 
 Merrimack 
 
 Rockingham 
 
 Cities. 
 
 Berlin 
 
 Concord 
 
 Dover 
 
 * Less than 5,000 inhabitants within the district, 
 therefore only bonds issued prior to June 8, 1908, are 
 legal. 
 
Savings Banks 
 
 MASSACHUSETTS 
 
 Keene 
 
 Manchester 
 
 Nashua 
 
 Portsmouth 
 
 Towns . 
 
 Ashland 
 
 Derry 
 
 Gorham 
 
 Haverhill 
 
 Hillsborough 
 
 JafFrey 
 
 Lisbon 
 
 Milford 
 
 Northumberland 
 
 Peterborough 
 
 Plaistow 
 
 Raymond 
 
 Salem 
 
 Walpole 
 
 Water District . 
 North Conway* 
 Vermont. 
 
 Cities. 
 
 Barre 
 
 Burlington 
 
 Montpelier 
 
 Rutland 
 
 St. Albans 
 
 Vergennes 
 
 T owns . 
 Bennington 
 Brattleborough 
 
 Massachusetts. 
 Bonds or notes of any 
 county, city, town or 
 incorporated districtf 
 of the Commonwealth 
 of Massachusetts 
 
 Rhode Island. 
 Cities. 
 
 Cranston 
 
 Newport 
 
 Providence 
 
 Woonsockett 
 
 T owns . 
 Barrington 
 Bristol 
 Coventry 
 Cumberland 
 East ProvidenceX 
 Johnston § 
 
 LincolnX 
 North Smithfield 
 South Kingstown 
 Tiverton 
 Warren 
 Westerly 
 
 Connecticut. 
 
 County. 
 
 Fairfield 
 
 Cities. 
 
 Ansonia 
 
 Bridgeport 
 
 Danbury 
 
 Derby 
 
 Hartford 
 
 Middletown 
 
 New Britain 
 
 New Haven 
 
 New London 
 
 Norwalk 
 
 Putnam 
 
 Rockville 
 
 Waterburv 
 
 Willimantic 
 
 Towns. 
 
 Brandford 
 
 Brooklyn 
 
 Canton 
 
 Ellington 
 
 Enfield 
 
 Essex 
 
 Fairfield 
 
 * See preceding page. 
 
 t This department has been unable to learn of any 
 incorporated district in Massachusetts the net indebtedness 
 of which is in excess of the limit prescribed by law. 
 
 $ Net indebtedness, as defined by new law, in excess of 
 legal limit, therefore only bonds issued prior to June 8, 
 1908, are legal. 
 
 5 Only those which have been assumed by the city of 
 
 Providence. 
 
MASSACHUSETTS 
 
 Savings Banks 
 
 Greenwich 
 
 Stafford 
 
 Hampden 
 
 Stamford 
 
 Madison 
 
 Suffield 
 
 Manchester 
 
 Thomaston 
 
 Meriden 
 
 Torrington 
 
 Newtown 
 
 Wallingford 
 
 Norwich 
 
 West Hartford 
 
 Norfolk 
 
 Winchester 
 
 Plainfield 
 
 Southington 
 
 Windsor 
 
 Legally authorized bonds for municipal purposes, 
 
 etc., of the following cities outside of New Eng- 
 
 land : — 
 
 
 Akron, O. 
 
 Louisville, Ky. 
 
 Albany, N. Y. 
 
 McKeesport, Penn. 
 
 Allentown, Penn. 
 
 Milwaukee, Wis. 
 
 Altoona, Penn. 
 
 Minneapolis, Minn. 
 
 Auburn, N. Y. 
 
 Newark, N. J. 
 
 Baltimore, Md. 
 
 Newcastle, Penn. 
 
 Bay City, Mich. 
 
 Niagara Falls, N. Y. 
 
 Buffalo, N. Y. 
 
 Oakland, Cal. 
 
 Canton. O. 
 
 Omaha, Neb. 
 
 Cedar Rapids, la. 
 
 Paterson, N. J. 
 
 Chicago, 111. 
 
 Philadelphia, Penn. 
 
 Cleveland, O. 
 
 Pittsburgh, Penn. 
 
 Columbus, O. 
 
 Portland, Ore, 
 
 Davenport, la. 
 
 Quincy ; 111. 
 
 Dayton, O. 
 
 Reading, Penn. 
 
 Decatur, 111. 
 
 Rochester, N. Y. 
 
 Des Moines, la. 
 
 Rockford, 111. 
 
 Detroit, Mich. 
 
 St. Joseph, Mo. 
 
 Dubuque, la. 
 
 St. Louis, Mo. 
 
 Elmira, N. Y. 
 
 St. Paul, Minn. 
 
 Evansville, Ind. 
 
 San Francisco, Cal. 
 
 Flint, Mich. 
 
 Seattle, Wash. 
 
 Grand Rapids, Mich. 
 
 Sioux City, la. 
 
 Hamilton, O. 
 
 South Bend, Ind. 
 
 Harrisburg, Penn. 
 
 Spokane, Wash. 
 
 Indianapolis, Ind. 
 
 Springfield, Mo. 
 
 Jackson, Mich. 
 
 Springfield, O. 
 
 Jamestown, N. Y. 
 
 Superior, Wis. 
 
 Jersey City, N. J. 
 
 Syracuse, N. Y. 
 
 Johnstown, Penn. 
 
 Terre Haute, Ind. 
 
 Joplin, Mo. 
 
 Toledo, O. 
 
 Kalamazoo, Mich. 
 
 Troy, N. Y. 
 
 Kansas City, Mo. 
 
 Utica, N. Y. 
 
 La Crosse, Wis. 
 
 Wilkes-Barre, Penn. 
 
 Lancaster, Penn. 
 
 Williamsport, Penn. 
 
 Lansing, Mich. 
 
 York, Penn. 
 
 Lima, O. 
 
 Los Angeles, Cal. 
 
 Youngstown, O. 
 
Savings Banks 
 
 MASSACHUSETTS 
 
 Railroad Bonds. 
 
 BANGOR & AROOSTOOK SYSTEM.*)*, 
 
 Bangor 6r* Aroostook R.R. f, ist . .5s 
 
 B. A. R.R . Pise. Div. f, If do . . 5s 
 
 B. A. R.R. Van B’n Ex. j, ^f do . . 5s 
 
 B. & A. R.R. Medjord “ f , do . . 5s 
 
 Ar’st’k North’ n R.R. f, If • do . 5s 
 
 No. M aine Seaport R.R. f, f j ^^^ist 
 
 BOSTON & MAINE SYSTEM. 
 
 Boston & Maine R.R. . 
 
 Plain 
 
 • 34 s 
 
 do ... 
 
 do 
 
 • 34 s 
 
 do ... 
 
 do 
 
 • 34 s 
 
 do ... 
 
 do 
 
 . 4s 
 
 do ... 
 
 do 
 
 . 4JS 
 
 do ... 
 
 do 
 
 . 4s 
 
 do ... 
 
 do 
 
 . 4s 
 
 do ... 
 
 do 
 
 . 4JS 
 
 do ... 
 
 do 
 
 • 3 s 
 
 P’tsm’t^G’t.F’lls &Conw.R.R. 
 
 ist 
 
 . 44 s 
 
 Boston & Lowell R.R. . 
 
 Plain 
 
 . 4s 
 
 do ... 
 
 do 
 
 . 4s 
 
 do ... 
 
 do 
 
 . 4s 
 
 do ... 
 
 do 
 
 . 4s 
 
 do ... 
 
 do 
 
 . 4s 
 
 do ... 
 
 do 
 
 • 34 s 
 
 do ... 
 
 do 
 
 • 34 s 
 
 do ... 
 
 do 
 
 • 34 s 
 
 do ... 
 
 do 
 
 . 3 $s 
 
 do ... 
 
 do 
 
 . 4s 
 
 do . ... 
 
 do 
 
 . 4s 
 
 do ... 
 
 do 
 
 . 4s 
 
 do ... 
 
 do 
 
 . 4s 
 
 Conn. & Passumpsic Riv. R.R. 
 
 ist . 
 
 . 4s 
 
 Concord & Montreal R.R. Cons. mtg. 
 
 . 4s 
 
 Connecticut River R.R. . . 
 
 Plain 
 
 • 34 s 
 
 do ... 
 
 do 
 
 • 34 s 
 
 do ... 
 
 do 
 
 . 4s 
 
 Worcester, Nash. & Roch. R.R. 
 
 ist 
 
 . 4s 
 
 do 
 
 do 
 
 . 4s 
 
 do 
 
 do 
 
 . 4s 
 
 do 
 
 do 
 
 . 4s 
 
 Concord & Claremont R.R. 
 
 ist 
 
 • 44 s 
 
 If 
 
 1943 
 
 1943 
 
 1943 
 
 I 937 
 
 1947 
 
 1935 
 
 1921 
 
 J 9 2 3 
 
 1925 
 
 1926 
 1929 
 
 *937 
 
 1942 
 1944 
 
 1950 
 
 *937 
 
 1913 
 
 1 9 1 5 
 
 1916 
 
 1917 
 
 1918 
 
 1919 
 1921 
 1923 
 
 1925 
 
 1926 
 
 1927 
 
 1929 
 1932 
 
 *943 
 
 1920 
 
 1921 
 1923 
 
 1943 
 I9E3 
 
 1930 
 
 1934 
 
 1 935 
 
 1914 
 
 t Dividends paid for insufficient number of years. 
 
 H Amount paid in dividends less than one-third of 
 amount paid in interest. 
 
 B 
 
MASSACHUSETTS 
 
 Savings Banks 
 
 BOSTON & MAINE SYSTEM — Continued. 
 
 Peterboro’ & Hillsboro R.R. 
 
 , 
 
 ist 
 
 . 4 js 
 
 1917 
 
 Fitchburg R.R 
 
 . Plain 
 
 . 4 js 
 
 I 9 I 4 
 
 do .... 
 
 . 
 
 do 
 
 . 4s 
 
 1915 
 
 do .... 
 
 . 
 
 do 
 
 . 4s 
 
 1916 
 
 do .... 
 
 . 
 
 do 
 
 • 3 i s 
 
 1920 
 
 do .... 
 
 
 do 
 
 . 4s 
 
 1920 
 
 do .... 
 
 . 
 
 do 
 
 • 3 i s 
 
 1921 
 
 do .... 
 
 . 
 
 do 
 
 . 4s 
 
 1925 
 
 do .... 
 
 . 
 
 do 
 
 . 4s 
 
 1927 
 
 do .... 
 
 . 
 
 do 
 
 . 4s 
 
 1928 
 
 do .... 
 
 . 
 
 do 
 
 . 4 ^s 
 
 1928 
 
 do .... 
 
 . 
 
 do 
 
 . 4 is 
 
 1932 
 
 do .... 
 
 . 
 
 do 
 
 . 4s 
 
 1937 
 
 Troy & Boston R.R. 
 
 . 
 
 ist 
 
 • 7 s 
 
 1924 
 
 Vermont & Mass. R.R. 
 
 . Plain 
 
 • 3 i s 
 
 1923 
 
 St. J’hnsb’ry & L. Champ’n R.R, 
 
 . ist 
 
 • 5 s 
 
 1944 
 
 Sullivan County R.R. . 
 
 . 
 
 do 
 
 . 4s 
 
 1924 
 
 Vermont Valley R.R. 
 
 • 
 
 do 
 
 . 4 is 
 
 1940 
 
 MAINE CENTRAL SYSTEM. 
 
 
 Maine Central R.R. 
 
 . Coll, trust ss 
 
 1923 
 
 Penobscot Shore Line R.R. 
 
 
 ist 
 
 . 4s 
 
 1920 
 
 Maine Shore Line R.R. 
 
 
 do 
 
 . 6s 
 
 1923 
 
 Belfast & Mooseh’d Lake R.R. 
 
 do 
 
 . 4s 
 
 1920 
 
 Dexter & Newport R.R. 
 
 
 do 
 
 . 4s 
 
 1917 
 
 Dexter & Piscataquis R.R. 
 
 
 do 
 
 . 4s 
 
 1929 
 
 European & N. Amer. Ry. 
 
 
 do 
 
 . 4s 
 
 1933 
 
 Upper Coos R.R. . 
 
 Mort. 
 
 . 4s 
 
 * 93 ° 
 
 do ... 
 
 Ex. mtg. 
 
 . 4 }s 
 
 1930 
 
 Washington County Ry. 
 
 I St 
 
 . 
 
 • 3 i s 
 
 1954 
 
 Portl’d & Rumford Falls Rv 
 
 Cons. 
 
 . 4s 
 
 1926 
 
 Portland & Ogdensburg R.R. ist . 
 
 . 4 is 
 
 1928 
 
 Somerset Ry 
 
 do . 
 
 • 5 s 
 
 1917 
 
 do .... 
 
 ist Ref’d 
 
 . 4s 
 
 1955 
 
 NEW YORK, NEW HAVEN 
 
 & HARTFORD 
 
 SYSTEM (see note). 
 
 
 
 N.Y.,N.H. & Hart. R.R. 
 
 Deb. . 
 
 . 4s 
 
 1914 
 
 do 
 
 do 
 
 
 . 4s 
 
 1947 
 
 do 
 
 do 
 
 
 • 3 is 
 
 1947 
 
 do 
 
 do 
 
 
 • 3 i s 
 
 1954 
 
 do 
 
 do 
 
 
 . 4s 
 
 1955 
 
 do 
 
 Conv. deb. 3 Js 
 
 1956 
 
 N.Y.,N.H. &H.R.R.H.R. & P.C. 
 
 I St 
 
 . 4s 
 
 J 954 
 
 Note. — C hapter 463 of the Acts of 1906, entitled “An 
 Act relative to railroad corporations and street railway 
 
 p 
 
Savings Banks 
 
 MASSACHUSETTS 
 
 N. Y., N. H. & H. SYSTEM — Concluded. 
 
 Housatonic R.R. . 
 
 Cons. 
 
 • 5 s 
 
 1937 
 
 N. Y., Prov. & Boston R.R. 
 
 General 
 
 . 4s 
 
 1942 
 
 B. &N.Y. Air Line R.R. 
 
 ist . 
 
 . 4s 
 
 1955 
 
 Danbury & Norwalk R.R. 
 
 Cons. . 
 
 j 5 S l 
 \ 6s S 
 
 1920 
 
 do 
 
 General 
 
 • 5 s 
 
 i 9 2 S 
 
 do 
 
 Refunding 4s 
 
 1955 
 
 Naugatuck R.R. . 
 
 ist . 
 
 . 4s 
 
 1954 
 
 do ... 
 
 Deb. . 
 
 • 3 i s 
 
 1930 
 
 N. H. & Derby R.R. . . 
 
 Cons. 
 
 • 5 s 
 
 1918 
 
 Prov. & Springfield R.R. . 
 
 ist . 
 
 • 5 s 
 
 1922 
 
 Prov. Terminal Co. 
 
 do 
 
 . 4s 
 
 1956 
 
 Boston & Providence R.R. 
 
 Plain . 
 
 . 4s 
 
 1918 
 
 Holyoke & Westf’d R.R. . 
 
 ist . 
 
 . 4 is 
 
 195 1 
 
 New England R.R. 
 
 Cons. . 
 
 f 4 S 1 
 \ 5 S 1 
 
 [ 1945 
 
 N. Y. & N.E. R.R. B. Ter . II I! ist . 
 
 . 4s 
 
 *939 
 
 Norwich & Worcester R.R. 
 
 Deb. . 
 
 . 4s 
 
 1927 
 
 
 r Plain . 
 
 . 4s 
 
 1924 
 
 Old Colony R.R. . . . ■< 
 
 do 
 
 do 
 
 . 4s 
 . 4s 
 
 1925 
 
 1938 
 
 
 l do • 
 
 • 3 i s 
 
 1932 
 
 Prov. & Worcester R.R. . 
 
 ist . 
 
 . 4s 
 
 1947 
 
 ATCHISON, TOPEKA & SANTA 
 
 . FE : 
 
 RAIL- 
 
 WAY SYSTEM. 
 
 
 
 Atchison, Top. & Santa Fe Ry. Gen. mtg. 4s 
 
 1995 
 
 do. Tr. Sh’t Line ist . 
 
 . 4s 
 
 I 95 8 
 
 do E. Oklahoma do 
 
 . 4 s 
 
 1928 
 
 Chi. & St. Louis Ry. 
 
 . do . 
 
 . 6s 
 
 ^15 
 
 Chi., Santa Fe & Cal. Rv. 
 
 do . 
 
 • 5 S 
 
 1937 
 
 Hutchinson & South’rn Ry. do . 
 San Francisco & San Joaquin 
 
 • 5 s 
 
 1928 
 
 Valley Ry. 
 
 . do . 
 
 • 5 s 
 
 1940 
 
 companies,” provides, in section 66 or Part II, that “A 
 railroad corporation, unless expressly authorized by its 
 charter or by special law, shall not issue bonds, coupon 
 notes or other evidences of indebtedness payable at periods 
 of more than twelve months after the date thereof to an 
 amount which, including the amount of all such securities 
 previously issued and outstanding, exceeds in the whole 
 the amount of its capital stock at the time actually paid 
 in.” As the New York, New Haven & Hartford Railroad 
 Company is a Massachusetts railroad corporation, it is 
 the opinion of the Attorney-General that under either the 
 old or the new savings bank law only those of its issues of 
 bonds, coupon notes and other evidences of indebtedness 
 which, taken in the order of their issue 8 do not exceed 
 the amount of the capital stock of the company actually 
 paid in, are legal investments for Massachusetts savings 
 banks. 
 
 II || Legalized by special act of General Court 
 o 
 
MASSACHUSETTS 
 
 Savings Banks 
 
 
 BALTIMORE & OHIO SYSTEM, 
 altimore & Ohio R.R. . Exten. . 4s 
 
 Prior lien . 3^s 
 
 do 
 
 do 
 
 do 
 
 1st Mtg. 
 
 S. W. Div. 
 
 4 s 
 
 3^s 
 
 1935 
 
 1925 
 
 1948 
 
 1925 
 
 CENTRAL OF NEW JERSEY SYSTEM. 
 Central R.R. of New Jersey General . 5s 1987 
 
 CHICAGO & NORTHWESTERN SYSTEM. 
 Chi. &Nw. Ry. . . . General 
 
 Sinking Fund 
 
 do 
 
 do 
 
 do 
 
 Cons. . 
 Exten. 
 
 S. F. Mtg. 
 
 | S' } If > 8 7 
 
 . 7S I9I5 
 
 Cedar Rap. &Missou.Riv.R.R. Mort. 
 Northwestern Union Ry. . 1st . 
 Mil. L. Shore & W. Ry. . Cons. . 
 
 do MTdEx. 1st . 
 
 do Mich. Div. do . 
 
 do Ashland Div. do . 
 
 do Ex. & imp. Mort. . 
 
 Wisconsin Northern Ry. . 1st . 
 
 do 
 
 do 
 
 do 
 
 do 
 
 Winona & St. Peter R.R 
 Boyer Valley Ry* . 
 
 Minnesota & Iowa Ry. 
 
 Southern Iowa Ry* 
 
 Princeton & Northwestern Ry. do 
 Peoria N orthwestern Ry* 1st 
 Mankato New Ulm Ry* do 
 Frem’t, Elk. & Mo. V. R.R. Cons. 
 
 M innesota S. Dakota Ry* 1st 
 Iowa, Minn. & N’ hw’rn Ry. do 
 Sioux City & Pacific R.R. do 
 Manitowoc, Green Bay & 
 
 Northwestern Ry. . . do . 3^s 1941 
 
 CHICAGO, BURLINGTON & QUINCY 
 SYSTEM. 
 
 Chic., Burl. & Quincy R.R. General 
 
 4 s 
 
 5 s l 
 
 6s $ 
 
 . 7s 
 . 7s 
 . 6s 
 
 • 5 s 
 . 6s 
 . 6s 
 
 • 5 s 
 
 . 4s 
 
 • 7 s 
 
 • 3 4 s 1923 
 
 • 3 i s 1924 
 
 • 34s 1925 
 
 . 3§s 1926 
 
 . 3is 1926 
 
 • 34s 1929 
 
 • 6s 1933 
 
 • 34 s 1935 
 
 • 34s 1935 
 
 • 34 s 1936 
 
 1926 
 
 1929 
 
 1916 
 
 1 9 1 7 
 
 1921 
 
 1922 
 
 1924 
 
 1925 
 
 I 9 2 9 
 
 I 93 I 
 
 1916 
 
 4s 
 
 & 0. R.R. 111. Div. . 
 
 Mort. . 
 
 \ 34s l 
 
 Us l 
 } 5s i 
 . 4s 
 
 
 
 
 do 
 
 Iowa Div. 
 
 do 
 
 do 
 
 Denver Ex. 
 
 
 do 
 
 Neb. Ex. 
 
 Mort. 
 
 . 4s 
 
 I95 8 
 
 *949 
 
 1919 
 
 1922 
 
 1927 
 
 * Secured on less than 100 miles of railroad 
 H 
 
Savings Banks 
 
 MASSACHUSETTS 
 
 CHICAGO, BURLINGTON & QUINCY 
 SYSTEM — Concluded. 
 
 Burl. & Mo.Riv. R.R. in Neb. Cons. . 6s 1918 
 
 Republican Valley R.R. . Mort. . 6s 1919 
 
 Tarkio Valley R.R. . . 1st . . 7s 1920 
 
 Nodaway Valley R.R. . do .7s 1920 
 
 CHICAGO, 
 
 MILWAUKEE 
 
 SYSTEM. 
 
 & ST. PAUL 
 
 Chi., Mil. & St. Paul Ry. . General 
 C. M. & S. P. Ry.L’C. &D. Div. 1st 
 
 do 
 
 Dubuque 
 
 << 
 
 do 
 
 do 
 
 Wis. Val. 
 
 << 
 
 do 
 
 do 
 
 C. &P.W. 
 
 u 
 
 do 
 
 do 
 
 W. & M. 
 
 u 
 
 do 
 
 do 
 
 C. & L. S. 
 
 ll 
 
 do 
 
 do 
 
 C.&M.R. 
 
 (( 
 
 do 
 
 do 
 
 Terminal 
 
 
 do 
 
 ta & Great So’th’n Ry. 
 
 
 do 
 
 » & Southern Ry. 
 
 
 do 
 
 Milwaukee & Northern R.R. Extension 
 
 j 3is | 
 
 ( 4 s S 
 
 ■ 5s 
 . 6s 
 . 6s 
 
 • 5 s 
 
 • 5 s 
 
 • 5 s 
 
 • 5 s 
 
 ■ 5 s 
 
 ■ 5 s 
 , 6s 
 
 4is 
 
 1989 
 
 1919 
 
 1920 
 
 1920 
 
 1921 
 1921 
 1921 
 1926 
 1914 
 1916 
 1924 
 
 1913 
 
 CHICAGO, ROCK ISLAND & PACIFIC 
 SYSTEM. 
 
 Chi., R. I. & Pacific R.R. Mort. . 6s 1917 
 
 do Ry. . General . 4s 1988 
 
 CHICAGO, ST. PAUL, MINNEAPOLIS & 
 OMAHA SYSTEM. 
 
 Ch., St. P., Min. & Omaha Ry. Cons j | 1930 
 
 Ch., St. Paul &Min. Ry. . . 1st . 6s 1918 
 
 North Wisconsin Ry . do . 6s 1930 
 
 St. Paul & Sioux City R.R. . do . 6s 1919 
 
 DELAWARE & HUDSON SYSTEM. 
 
 Dela. & Hud. Co 1st ref’d 
 
 do Canal Co. . do 
 
 Adirondack Ry do 
 
 Schen’y & Duanesb’g R.R. . do 
 Albany & Susquehanna R.R. Conv. . 
 
 4s 
 
 7 s 
 
 4^s 
 6s 
 3* s 
 
 1943 
 
 1917 
 
 1942 
 
 1924 
 
 1946 
 
 6s 1921 
 
 DELAWARE, LACKAWANNA & WESTERN 
 SYSTEM. 
 
 N. Y. Lack. &> W’n Ry. § . 1st 
 
 GREAT NORTHERN SYSTEM. 
 
 Great Northern Ry. . . 1st Ref’d 4fs 
 
 Minneapolis Union Ry. . 1st 
 
 IS} 
 
 1961 
 
 1922 
 
 § Not guaranteed by endorsement. 
 
 1 
 
MASSACHUSETTS 
 
 Savings Banks 
 
 GREAT NORTHERN SYSTEM— Concluded. 
 
 St. Paul, Minn. & Man. Ry. 
 
 Cons. 
 
 . 
 
 4 s 
 
 1933 
 
 do 
 
 do . 
 
 . 
 
 4is 
 
 1933 
 
 do 
 
 do . 
 
 . 
 
 6s 
 
 1933 
 
 do 
 
 Mont. Ex. 
 
 
 4s 
 
 *937 
 
 do 
 
 Pac. Ex. 
 
 . 
 
 4 s 
 
 1940 
 
 Eastern Ry. of Minnesota 
 
 No. Div. 
 
 . 
 
 4 s 
 
 1948 
 
 Montana Central Ry. . 
 
 1st 
 
 . . 
 
 . 
 
 5 s 
 
 1937 
 
 do ... 
 
 do 
 
 . 
 
 . 
 
 6s 
 
 1937 
 
 Wilmar & Sioux Falls Ry. 
 
 do 
 
 . 
 
 . 
 
 5 s 
 
 1938 
 
 Spokane Falls & No. Ry. 
 
 do 
 
 • 
 
 • 
 
 6s 
 
 1939 
 
 ILLINOIS CENTRAL SYSTEM. 
 
 
 Illinois Cent. R.R. 
 
 Ref d mtg.4S 
 
 1955 
 
 do Sterling Ex. 
 
 
 . 
 
 4s 
 
 195 1 
 
 do Gold Ex. 
 
 
 
 . 
 
 34s 
 
 1950 
 
 do Sterling 
 
 
 
 . 
 
 3 s 
 
 1951 
 
 do Gold . 
 
 
 
 . 
 
 4 s 
 
 I95 1 
 
 do Gold . 
 
 
 
 . 
 
 34s 
 
 195 1 
 
 do Gold Ex. 
 
 
 
 . 
 
 3ls 
 
 1951 
 
 111. Cen. R.R. Spring. Div. 
 
 
 1st . 
 
 . 
 
 34s 
 
 1951 
 
 do Kan. & S.W.R.R. do . 
 
 . 
 
 5 s 
 
 1921 
 
 111. Cen. R.R. Cairo Bridge 
 
 . 
 
 do . 
 
 i 
 
 4s 
 
 \ 
 
 1950 
 
 do St. Louis Div. 
 
 • 
 
 do . 
 
 1 
 
 3 s 
 
 34s J 
 
 I95 1 
 
 do Pur. Lines . 
 
 . 
 
 do . 
 
 . 
 
 34s 
 
 1952 
 
 do Collat. Trust. 
 
 . 
 
 do . 
 
 . 
 
 34s 
 
 I 95° 
 
 do Western Lines\ 
 
 
 do . 
 
 . 
 
 4s 
 
 195 1 
 
 do Louisville Div.% 
 
 
 do . 
 
 . 
 
 34s 
 
 1953 
 
 do Omaha Div.% 
 
 . 
 
 do . 
 
 . 
 
 3 s 
 
 I95i 
 
 do Litchfield Div* 
 
 . 
 
 do . 
 
 . 
 
 3 s 
 
 i95i 
 
 do Collat . Trusty 
 
 . 
 
 . 
 
 
 4 s 
 
 1952 
 
 LAKE SHORE & MICHIGAN SOUTHERN 
 SYSTEM. 
 
 Lake Shore & Mich. S. Ry. istgen. . 3$s 1997 
 
 Kal.,Alle.&Gr.Rap.R.R* 1st . 5s 1938 
 
 Mahoning Coal R.R* ... do . 5s *934 
 
 P.McK. Youghiogheny R.R.*do . 6s 1932 
 
 * Secured on less than 100 miles of railroad. 
 t Bonds do not cover 75 per cent, of the railroad owned 
 in fee at the date of the mortgage by the railroad cor- 
 poration on the railroad of which the mortgage is a lien. 
 
 || Railroad covered by one of the issues pledged as 
 collateral is not operated by Illinois Central R. R. 
 
 
 J 
 
Savings Banks 
 
 MASSACHUSETTS 
 
 LOUISVILLE & NASHVILLE SYSTEM. 
 Louisville & Nashville R.R. Unified . 4s *94° 
 
 do General . 6s 1930 
 
 do ist . 5s 1937 
 
 do Trust . 5® J 93t 
 
 Ev’sville,Hend. & Nash. Div. S. Fund . 6s 1919 
 
 Louisville, Cin. & Lex. Ry. General . 4$s 1931 
 
 Southeast & St. Louis Div 6s 1921 
 
 Mobile & Montgomery 4jS 1945 
 
 N. O. & Mobile Div. $5,000,000 1st . . 6s 1930 
 
 MICHIGAN CENTRAL SYSTEM. 
 
 Mich. Cen. R.R 1st . ■ . 3Js 195* 
 
 Mich. Cen-Mich. Air Line R.R. do . .4s *94° 
 
 Mich. Cen. Dt. & Bay Cv. R.R. do . .5s 1931 
 
 Mich.Cen-Kal, &* S. H. R.R.* do . .5s 1939 
 
 Mich. C. Jack. L. & Sag. R.R. do . . 3Js 1951 
 
 Mich.C-Jol. b* Nor. Ind. R.R.* do . .4s 1957 
 
 NEW YORK CENTRAL SYSTEM. 
 
 N. Y. Cen. & Hud. Riv. R.R. 
 
 Mort. 
 
 . 3 4 s 
 
 1997 
 
 Beech Creek R.R 
 
 ist 
 
 . 4s 
 
 1936 
 
 Mohawk & Malone Ry. . 
 
 do 
 
 . 4s 
 
 1991 
 
 N. Y. & Harlem R.R. § . 
 
 Mort. 
 
 s?) 
 
 2000 
 
 Rome,W.&Og.R.R.§ . . 
 
 Cons. 
 
 (So 
 
 1922 
 
 do Ter. R.R. § . 
 
 ist 
 
 • 5 s 
 
 1918 
 
 Norwood & Mon . R.R. § . 
 
 do 
 
 • 5 s 
 
 1916 
 
 Oswego R.R. Bridge^ . 
 
 do 
 
 . 6s 
 
 1915 
 
 Syr a. Phoe. Oswego R.R. § .' 
 
 do 
 
 . 6s 
 
 1915 
 
 Car., Wat. & Sac. Har . R.R.§ 
 
 Cons. 
 
 • 5 s 
 
 1931 
 
 Utica & Bl. Riv. R.R. § 
 
 ist 
 
 . 4S 
 
 1922 
 
 Boston & Albany R.R. . . 
 
 Plain 
 
 • 3$s 
 
 1952 
 
 do 
 
 do 
 
 . 4S 
 
 *9*3 
 
 do 
 
 do 
 
 • 3 £s 
 
 1951 
 
 do . . 
 
 do 
 
 . 4s 
 
 1933 
 
 do . . 
 
 do 
 
 . 4S 
 
 1934 
 
 do 
 
 do 
 
 . 4S 
 
 1935 
 
 do 
 
 do 
 
 . 4i s 
 
 1937 
 
 NORTHERN PACIFIC SYSTEM 
 
 1997 
 
 Northern Pacific Ry. Prior lien . 
 St. Paul & Northern 
 
 . 4s 
 
 Pacific Ry 
 
 
 
 1923 
 
 St. Paul & Duluth R.R. ist 
 Wash. & Columbia 
 
 • 
 
 • 5 s 
 
 I93i 
 
 River Ry do 
 
 • • 
 
 . 4S 
 
 1935 
 
 * Secured on less than 100 miles of railroad. 
 { Not guaranteed by endorsement. 
 
MASSACHUSETTS 
 
 Savings Banks 
 
 PENNSYLVANIA SYSTEM. 
 
 Pennsylvania R.R. 
 
 Cons. 
 
 5 s 
 
 1919 
 
 do ... 
 
 do 
 
 4 s 
 
 1943 
 
 do ... 
 
 do 
 
 3 is 
 
 1945 
 
 do ... 
 
 do 
 
 4 S 
 
 1948 
 
 S unbury Lewiston Ry* 
 
 ist 
 
 4 S 
 
 1936 
 
 Sunb'y Hazle. &° Wilkes. Ry * 
 
 do 
 
 5 s 
 
 1928 
 
 WestChester R.R* 
 
 do 
 
 5 s 
 
 1919 
 
 Western Pennsylvania R.R. . 
 
 Cons. . 
 
 4 S 
 
 1928 
 
 Pitts . , Vir. & Charleston Ry* 
 
 ist . 
 
 4 s 
 
 19.43 
 
 South West Pennsylvania R.R. 
 
 do 
 
 7 s 
 
 I 9 I 7 
 
 Junction R.R* . 
 
 General 3^s 
 
 I 93 ° 
 
 
 c 
 
 ' 6s) 
 
 
 Phil. & Erie R.R 
 
 do 
 
 1 5 s f 
 
 1920 
 
 
 ( 
 
 . 4 s ) 
 
 
 PPb’g, Ports. ,M. Joy &L.R.R. * 
 
 ist . 
 
 4 s 
 
 I 9 I 3 
 
 United N. J. R.R. & Canal Co. General 
 
 4 S 
 
 J 9 2 3 
 
 do 
 
 do 
 
 4 s 
 
 1929 
 
 do 
 
 do 
 
 4 S 
 
 1944 
 
 do 
 
 do 
 
 4 s 
 
 1948 
 
 do 
 
 do 
 
 3 Js 
 
 1951 
 
 Del. Riv. R.R. fir* Bridge Co* 
 
 ist 
 
 4 S 
 
 1936 
 
 Erie 6r® Pittsburgh R.R* . 
 
 General 
 
 3 I s 
 
 1940 
 
 Cleveland & Pittsburgh R.R. 
 
 do | 
 
 4 is ) 
 3 js ) 
 
 1942 
 
 do 
 
 do . . 
 
 3 is 
 
 1948 
 
 do 
 
 do . . 
 
 3 ^s 
 
 1950 
 
 Allegheny Val. Ry. . 
 
 do . 
 
 4 s 
 
 1942 
 
 MISCELLANEOUS. 
 
 
 
 Boston Terminal Co. || || 
 
 ist 
 
 3 is 
 
 1947 
 
 Boston R.B.and L. R.R. f . 
 
 do 
 
 4 is 
 
 1927 
 
 Bridgton & Saco River R.R. Cons. 
 
 4 s 
 
 1928 
 
 New London N’th’n R.R. 
 
 ist 
 
 4 S 
 
 1940 
 
 N arragansett Pier R.R.^ . 
 
 do 
 
 4 S 
 
 1916 
 
 Portland Terminal Co. 
 
 do 
 
 4 s 
 
 1961 
 
 * Secured on less than 100 miles of railroad, 
 t Dividends paid for insufficient number of years. 
 i| I! Legalized by special act of General Court. 
 
 li 
 
Savings Banks 
 
 MASSACHUSETTS 
 
 Street Railway Bonds. 
 
 Boston & Northern 
 
 St. Ry. • . 
 
 Ref’d ist mtg. 
 
 4 s 
 
 1954 
 
 Boston & Revere Elec. 
 
 St. Ry 
 
 do 
 
 5 s 
 
 1928 
 
 East Middlesex St. Ry. 
 
 Plain . 
 
 5 s 
 
 1918 
 
 do 
 
 do ... 
 
 4 s 
 
 1922 
 
 Fitch. & L’m’st’r St. Ry 
 
 ist mtg. 
 
 5 s 
 
 1917 
 
 do 
 
 Cons. mtg. 
 
 4 $s 
 
 1921 
 
 Georgetown, Rowley & 
 
 Ipswich St. Rv. 
 
 ist mtg. . 
 
 5 s 
 
 1920 
 
 Gloucester, Essex & 
 
 Bev. St. Rv. 
 
 do ... 
 
 5 s 
 
 1916 
 
 Haverhill, Georgetown 
 
 & Danvers St. Ry. . 
 
 do . . . 
 
 5 s 
 
 1919 
 
 Holyoke Street Rv. 
 
 Deb. . . . 
 
 5 s 
 
 1915 
 
 do 
 
 do ... 
 
 5 s 
 
 1920 
 
 do 
 
 do ... 
 
 5 s 
 
 1923 
 
 Leominster, Shirlev & 
 
 Aver St. Ry. 
 
 ist mtg. 
 
 5 s 
 
 1921 
 
 Lowell, Lawrence & 
 
 Haverhill St. Ry. . 
 
 do ... 
 
 5 s 
 
 1293 
 
 Lynn & Boston R.R. Co. 
 
 do 
 
 5 s 
 
 1924 
 
 Mystic Valiev St. Ry. 
 
 do 
 
 5 s 
 
 1919 
 
 Nahant & Lynn St. Rwy. do 
 
 5 s 
 
 * 9*5 
 
 do 
 
 do 
 
 5 s 
 
 1929 
 
 People’s St. Ry. . 
 
 do 
 
 5 s 
 
 1928 
 
 Springfield Street Ry. . 
 
 do 
 
 4 s 
 
 1923 
 
 Springfield & Eastern 
 
 St. Ry. Co. . 
 
 do . . . 
 
 5 s 
 
 1922 
 
 Union Street Rv. . 
 
 Cons. mtg. 
 
 5 s 
 
 1914 
 
 Wakefield & Stoneham 
 
 St. Ry 
 
 ist mtg. 
 
 5 s 
 
 1915 
 
 West End Street Ry. . 
 
 Deb. . . . 
 
 4 is 
 
 i 9 J 4 
 
 do 
 
 do . . . 
 
 4 S 
 
 1915 
 
 do 
 
 do . . . 
 
 4 S 
 
 1916 
 
 do 
 
 do . 
 
 4 s 
 
 1917 
 
 do 
 
 do . . . 
 
 4 is 
 
 1923 
 
 do s 
 
 do . . . 
 
 4 is 
 
 1930 
 
 do 
 
 do . . . 
 
 4 s 
 
 1932 
 
 Western Mass. St. Ry. 
 
 ist mtg. . . 
 
 5 s 
 
 1926 
 
 Woronoco St. Ry. 
 
 do . . . 
 
 5 s 
 
 1920 
 
 Telephone Company Bonds. 
 
 
 Amer. Tel. & Tel. Co. 
 
 Coll, trust . . 
 
 4 s 
 
 1929 
 
 M 
 

 * 
 
Savings Banks. 
 
 MICHIGAN. 
 
 Municipal Law in red. Street Railway Law in 
 Railroad Law in green . brown . 
 
 Other matter in black. 
 
 MICHIGAN. 
 
 Amended in 1913 
 
 SAVINGS BANKS. 
 
 (Act 262, P. A., 1905, as amended by Act 
 480, P. A., 1907.) 
 
 Sec. 27. A Sav. Bk. shall keep on hand 
 at least 15% of its total deposits, i-3rd of 
 which reserve shall be in lawful money in 
 its own vaults and the balance on deposit, 
 payable on demand, with Bks., Nat. or State, 
 in cities approved by the commissioners as 
 reserve cities, or invested in U. S. bonds; 
 3-5ths of the remainder of the savings de- 
 posits shall be invested by the board of di- 
 rectors as follows : 
 
 (a) In bonds of the U. S., of any State 
 or territory of the U. S. : Provided, that such 
 State or Territory has not, in the 10 yrs. pre- 
 ceding the time of such investment repu- 
 diated its debt and failed to pay the same, 
 or the interest due thereon, or upon any part 
 of such debt; or 
 
 (b) In the public debt or bonds of any city, 
 county, township, village or Sch. Dist. of 
 any State or Territory in the U. S., which 
 shall have been authorized by the legislature 
 of such State or Territory: Provided, The 
 total indebtedness of such municipality does 
 not exceed 5% of its assessed valuation, ex- 
 cept by a vote of 2-3rds of the board of di- 
 rectors, such bonds may be purchased if 
 the total liabilities do not exceed 10% of its 
 assessed valuation; or 
 
 (c) In the legally authorized 1st Mtg. 
 bonds of any steam R. R. Corp. organized 
 under the laws of any State of the U. S. : 
 Provided, That such Co. has for 5 yrs. prior 
 to. the time of making such investment by 
 said Bk., paid annually, dividends equal to 
 not less than 4% on its entire capital stock 
 and has not during said period defaulted 
 in the payment of the matured principal or 
 
 1 
 
MICHIGAN. 
 
 Savings Banks, 
 
 interest of any debts incurred by it and 
 secured by Mtg. or Tr. deed upon its prop- 
 erty or any part thereof, or in the payment 
 of any part of the matured principal or in- 
 terest of any bonds guaranteed and assumed * 
 by it; or ^ 
 
 (d) In the ist Mtg. bonds of R. R. Cos. 
 whose lines are leased or operated or con- 
 trolled by any R. R. Co. specified in para- 
 graph (c) of this Sec., if said bonds be 
 guaranteed both as to principal and interest 
 by the R. R. Co. to which said lines are 
 leased or by which they are operated or 
 controlled ; 
 
 (e) In the legally authorized Mtg. bonds 
 of any steam R. R. incorporated under the 
 laws of any state of the U. S., which shall 
 have been issued for the purpose of retiring 
 all prior Mtg. debt on so much of the prop- 
 erty of such Co. as is covered by the Mtg. 
 securing such issue of bonds, and further 
 providing for additions, extensions or im- 
 provements: Provided, That such Co. has, 
 for 3 yrs. prior to the time of making such 
 investment by said Bk., paid annually, divi- 
 dends equal to not less than 4% on its en- 
 tire capital stock, which capital stock shall 
 equal or exceed in amount i-3rd of the par 
 value of all its bonded debt, and has not, 
 during the same period, defaulted in the 
 payment of the matured principal or inter- 
 est of any debts incurred by it and secured 
 by Mtg. or Tr. deed upon its property or 
 any part thereof, or in the payment of any 
 part of the matured principal or interest upon 
 a bond guaranteed or assumed by it: Pro- 
 vided, Said issues of bonds shall have been 
 approved by the securities commission, here- 
 inafter provided for; 
 
 (f) In the legally authorized 1st Mtg. 
 bonds of any electric R. R., street Rwy., gas 
 
 or electric light or power Co., organized un- ^ 
 der the laws of the State of Mich.: Pro- 
 vided,* That such Co. has, for 5 yrs. prior 
 
 * The balance of this paragraph although in 
 “ brown ” applies equally to gas or electric light 
 or power companies. 
 
 2 
 
Savings Banks. 
 
 MICHIGAN. 
 
 to the time of making such investment by 
 said Bk.. paid annually, dividends # equal to 
 not less than 4% on its entire capital stock, 
 and has not, during the same period de- 
 faulted in the payment of the matured prin- 
 cipal or interest or any debts incurred by 
 it and secured by Mtg. or Tr. deed upon its 
 property or any part thereof, or in the pay- 
 ment of any part of the matured principal 
 or interest of any bonds guaranteed or as- 
 sumed by it; or in the 1st Mtg. bonds of any 
 such Co. which has been in operation less than 
 5 yrs. : Provided, That the cost of construc- 
 tion and equipment of the plant of such 
 Co. shall exceed by at least 50% the amount 
 of the entire bonded debt of such Co., and 
 the said plant and equipment shall be free 
 from all other liens and encumbrances, and 
 the said Co. shall have earned during the 
 period it has been in operation, more than 
 enough to pay all interest accrued on all 
 said bonds and not less than 4% per annum 
 dividends upon its entire capital stock out- 
 standing: Provided, Said issues of bonds 
 shall have been approved by the securities 
 commission hereinafter provided for; 
 
 (g) In the legally authorized 1st Mtg. 
 bonds of steamship Cos. : Provided, That 
 such Mtgs. shall be upon steel steamship 
 or steamships upon the great lakes and con- 
 necting waters of package freight and passen- 
 gers combined of at least 5,000 tons carrying 
 capacity each, and upon bulk freighters of 
 at least 7,000 tons carrying capacity each: 
 Provided, Such bonds are issued at the time 
 of completion and enrollment of such steam- 
 ship or steamships, or within 1 yr. there- 
 after: And Provided further. That by the 
 express terms of said Mtg., at least io%. of 
 the total issue of said bonds shall be retired 
 annually, beginning within 2 yrs. from the 
 date of said bonds, and that the Mtg. lia- 
 bility against said property shall not exceed 
 Vz of its actual cost: And Provided further. 
 That the trustees of such Mtg. shall be re- 
 quired to protect the lien of said Mtg. by 
 attending to the recording thereof and by 
 
 3 
 
MICHIGAN. 
 
 Savings Banks. 
 
 causing property covered by said Mtg. to be 
 insured, against all risks on vessel property 
 ordinarily . covered by such Ins., including 
 marine risks and disasters, general and 
 particular average, collision liability, pro- 
 tection and .indemnity Ins. and Ins. against 
 liability for injuries to persons, in Ins. Cos. 
 and under forms of policies approved by 
 the trustee, for an amount equal to the full 
 insurable value of such steamship, such Ins. 
 to be made with loss payable to said trustee and 
 the policies deposited with it: And Provided 
 further, That there shall be filed with the 
 Com. of the Bkg. Dept, of this State a 
 schedule of the Ins. upon such property, 
 which schedule shall be signed by the trustee 
 under said Mtg. and shall be accompanied by 
 the certificate of said trustee that the poli- 
 cies mentioned in said schedule are held by 
 said trustee and are payable to said trustee 
 in case of loss for the benefit of the holders 
 of the outstanding bonds issued under such 
 Mtg. ; and further, that similar certificates 
 be. filed, from time to time by said trustee 
 with said Com. of the Bkg. Dept, of this 
 State, evidencing renewals of said Ins. by 
 proper policies or legal Ins. binders : Pro- 
 vided further, That by the terms of such 
 Mtg., the mortgagor shall not suffer such 
 steamship to become indebted in an amount 
 exceeding 5% of the original amount of the 
 principal of said Mtg. at any time and that 
 the failure of the mortgagor to forthwith 
 procure the release of such steamship or 
 steamships, from mechanics’, laborers’, ad- 
 miralty, statutory or other liens, claims or 
 charges against such steamship, shall con- 
 stitute a default in the provisions of such 
 Mtg. : And Provided further, That such 
 
 bonds shall have been approved by the se- 
 curities commission hereinafter provided for; 
 
 (h) Said Bks. may loan the same upon 
 negotiable paper, or other evidences of debt, 
 secured by any of the above mentioned classes 
 of security; or 
 
 (i) Upon notes or bonds secured by Mtg. 
 lien upon unencumbered real estate worth 
 
 4 
 
Savings Banks. 
 
 MICHIGAN. 
 
 at least double the amount loaned; the re- 
 mainder of such deposits may be invested in 
 notes, bills or other evidences of debt, the 
 payment of which is secured by the deposit 
 with the Bk., of collateral security consisting 
 of personal property or securities of known 
 marketable value, worth 10% more than the 
 amount so loaned and interest for the time 
 of the loan; or may be invested in notes, bills 
 or other evidences of debt, the payment of 
 which is secured by such property or securi- 
 ties deposited in a Trust Company or- 
 ganized under the laws of this State; or 
 may be deposited in any Nat. Bk., Tr. Co., 
 or Bk. in cities in this or any other State, 
 approved by the Com. of the Bkg. Dept, as 
 reserve cities, and a portion of said re- 
 mainder, not exceeding the capital and ad- 
 ditional stockholders’ liability, may be in- 
 vested in negotiable paper approved by the 
 board of directors, but the deposits in any 
 one Bk. shall not exceed 10% of the total 
 deposits, capital and surplus of the deposit- 
 ing Bk. In case the actual reserve shall fall 
 below the 15% above provided, the Bk. shall 
 promptly and in good faith, take measures to 
 restore and maintain its lawful reserve, in 
 default of. which the Com., of the Bkg. Dept, 
 shall require such restoration within 30 days 
 after notice, * * * 
 
 Sec. 32. * * * No bank or bank officer 
 
 shall give preference to any depositor or 
 creditor by pledging the assets of the bank as 
 collateral security: Provided, That any bank 
 may pledge qualified assets of the bank for the 
 purpose of becoming a depository for postal 
 savings funds under the laws of the U. S., 
 or for the purpose of becoming a depository 
 for surplus funds belonging to the State of 
 Mich.; but no bank transacting a Sav. busi- 
 ness shall pledge Mtgs. or bonds which rep- 
 resent any portion of the investments of its 
 Sav. deposits : * * * In no case shall an over- 
 draft of more than ninety days’ standing be 
 allowed as an asset of the bank. No bank 
 shall permit its Pres., its Vice Pres., its cash- 
 ier, or any of its directors, clerks, tellers, 
 
MICHIGAN. 
 
 Sayings Banks. 
 
 bookkeepers, or other persons in its employ, 
 to become liable to it by reason of overdrawn 
 accounts; * * * 
 
 Sec. 52. The total liabilities to any Bk. 
 of any person or of any Co.., Corp. or firm 
 for moneys advanced, including in the lia- 
 bilities of the Co. or firm, the liabilities of 
 the several members thereof, except special 
 partners, shall at no time exceed i-ioth part 
 of the amount of the capital and surplus 
 of such Bk., but the discount of bills of 
 exchange drawn in good faith against actually 
 existing values and the discount of commer- 
 cial or business, paper actually owned by the 
 person negotiating the same shall not be 
 considered as money borrowed : Provided, 
 however. That the foregoing limitations 
 shall not apply to loans on real estate or 
 other collateral securities authorized by this 
 act and deposited with the Bk., or a Trust 
 Co. organized under the laws of this State : 
 Provided further, That by a 2-3rds vote of 
 directors, the liabilities to any Bk. of any per- 
 son or Co. or Corp. or firm may be increased 
 to a sum not exceeding i-5th of the capital 
 and surplus of the Bk. ; but such additional 
 i-ioth of such capital and surplus shall not 
 be loaned to any officer or director, or to any 
 partnership in which such officer or director 
 is a partner, or to any Corp. in which such 
 officer or director owns a majority of the 
 capital stock, until such officer, director, part- 
 nership or Corp. furnishes collateral or en- 
 dorsements satisfactory to the directors, or 
 files with the bank a sworn statement of as- 
 sets and liabilities showing a net worth of suf- 
 ficient amount to be entitled to such credit : 
 Provided further, That before any Bk., 
 under the supervision of the laws of this 
 State, shall loan any of its funds to its of- 
 ficers or its employes, such loans shall be 
 first submitted to the directors of such Bk. 
 for their approval. Not more than i-4th of 
 the assets of any Bk. shall be loaned or in- 
 vested in steam R. R. bonds and not more 
 than i-ioth of the assets of any Bk. shall be 
 invested in the bonds of any one R. R. Corp. 
 
Trust Companies. 
 
 MICHIGAN. 
 
 described in paragraph (c) or (d) of Sec. 27, 
 and not more than i-20th* of such ^ assets 
 in the bonds of any Co. or Corp. described in 
 
 paragraphs (e), (f) or (g) of said Sec., and 
 
 not more than i-ioth of the assets of any Bk. 
 shall be loaned to any one person, Corp. or 
 firm on the collateral pledges described in 
 paragraph (h) of same Sec. 
 
 (Act 262, P. A., 1905.) 
 
 Sec. 67. There shall be a board of com- 
 missioners for the purpose of passing on the 
 securities mentioned in paragraphs (e), (f) 
 or (g) of Sec. 27 of this act, consisting of 
 the Com. of the State Bkg. Dept, who shall 
 be chairman, the Attorney General and the 
 State Treasurer of this State, who shall be 
 members of this board during their respec- 
 tive terms of office, which board shall be 
 known as the Securities Commission. It shall 
 be the duty of this commission, whenever 
 an issue of bonds, which shall come within 
 the requirements of paragraphs (e) and (f) 
 of Sec. 27 of this act, shall be presented to 
 them, to examine into the financial condi- 
 tions of the Corp. issuing such bonds, and 
 ascertain whether such issue is excessive as 
 compared with the value of the property of 
 such Corp., and if they shall find that such 
 issue of bonds is not excessive and that they 
 comply with the other requirements of said 
 paragraphs of said Sec., they shall so certify 
 in a book to be kept in the State Bkg. Dept, 
 for that purpose, and thereupon said Bks. 
 may invest in such bonds. The actual expense 
 of the commission in examining the issues of 
 bonds presented as aforesaid, shall be paid by 
 the person or Co. applying to said commis- 
 sion to have such bonds certified as legal in- 
 vestment under said paragraphs of said Sec. 
 
 TRUST COMPANIES. 
 
 Sec. 2. * * * As soon as possible, and not 
 
 ♦ This 1-20 th limitation applies to street Rwy. 
 Co. bonds. 
 
MICHIGAN. 
 
 Trust Companies. 
 
 later than 6 Mos., after any such Co. has 
 commenced business under the provisions of 
 this act, it shall deposit with the State 
 treasurer of this State not less than 50% of 
 the amount of its capital stock, nor more 
 than $200,000 in amount; such deposit to be 
 in bonds and Mtgs., or notes and Mtgs. on 
 unencumbered real estate within the State 
 of Mich., worth double the amount secured 
 thereby, or public stocks and bonds of the 
 U. S., or any State of the U. S., that has not 
 defaulted on its principal or interest within 
 10 yrs., or of any organized county or town- 
 ship, or incorporated city or village, or Sch. 
 Dist. in this State, or in any other such State, 
 duly authorized to be issued # ; # and upon all 
 which bonds or other securities there shall 
 have been no default in the payment of in- 
 terest or principal; which bonds and Mtgs., 
 or notes and Mtgs., or public stocks or bonds, 
 shall be held by the State treasurer, in trust, 
 as security for the depositors and creditors 
 of said Corp. * * * 
 
 Sec. 9. * * * Such Corp. shall have power 
 to loan money upon real estate and collateral 
 security, and execute and issue its notes and 
 debentures, payable at a future date, and to 
 pledge . its Mtgs. on real estate and other 
 securities as security therefor. * * * 
 
 Sec. 10. It shall be lawful for any such 
 Corp. to lease, purchase, hold and convey 
 all such personal estate as may be necessary 
 to carry on its business, or as it may deem 
 necessary to acquire in the enforcement or 
 settlement of any claims or demands arising 
 out of its business transactions, and to exe- 
 cute and issue in the transaction of its busi- 
 ness, all necessary receipts, certificates, pa- 
 pers and contracts which shall be signed by 
 such person or persons as may be designated 
 by the by-laws of such Corp.; and it shall 
 be lawful for any such Corp. to lease, pur- 
 chase, hold and convey real estate as its 
 corporate property for the following pur- 
 poses, but no other: 
 
 1st. Such as shall be necessary for the 
 convenient transaction of its business, in- 
 
Trust Companies. 
 
 MICHIGAN. 
 
 eluding with its business office other apart- 
 ments in the same building, to rent, as a 
 source of income, but which shall not ex- 
 ceed 50% of its paid-in capital and surplus. 
 
 2d. Such as shall be conveyed to it in sat- 
 isfaction of debts previously contracted in 
 the course of its business. 
 
 3d. Such as it shall purchase at sales under 
 judgments, decrees or Mtgs., held by it, but 
 such Corp. shall not bid at any such sale 
 a larger amount than is necessary to satisfy 
 its debt and costs. Real estate shall be con- 
 veyed by such Corp. under its seal and the 
 hand of such officer or officers as may be des- 
 ignated by the by-laws of such Corp. No 
 real estate acquired in the cases contemplated 
 in the 2nd and 3rd sub-secs, above shall be 
 reckoned as an asset for a longer time than 
 5 yrs. 
 
 And it shall also be lawful for such Corp. 
 to take and accept by grant, assignment, pur- 
 chase, transfer, device, or bequest, and hold 
 any real or personal estate in trust, in pur- 
 suance of the directions of any trust created 
 in accordance with the laws of this State, or 
 of the U. S. 
 
 Every such Corp. shall keep on hand funds 
 to an amount equal to at least 20% of its 
 matured obligations and money due and 
 payable, 3-4ths of which reserve may be kept 
 in any Bk. or Tr. Co. approved by the Com. 
 of the Bkg. Dept. 
 
 Sec. 11. * * * And such board of directors 
 may invest or loan the balance of its capi- 
 tal stock and other moneys received by such 
 Corp. in trust, in bonds secured by Mtgs. 
 or notes and Mtgs. on unencumbered real 
 estate within the State of Mich., worth double 
 the amount secured thereby, or in public 
 stocks and bonds of the U. S., or any State 
 of the U. S. that has not defaulted on its 
 principal or interest within 10 yrs.; or oi 
 any organized county or township, or in- 
 corporated city or village or Sch. Dist. in 
 this State or in any other such State, duly 
 authorized to be issued, or in such real or 
 personal securities as they may deem proper. 
 
MICHIGAN. 
 
 Commercial Banks. 
 
 Sec. 52 under Commercial Bks. also ap- 
 plies to Tr. Cos. 
 
 COMMERCIAL BANKS. 
 
 Sec. 23. Any Bk. which by its articles of 
 incorporation shall . designate its business as 
 that of a Commercial Bk. shall have power to 
 carry on the business of banking as prescribed 
 and limited in this act, but it shall not lend to 
 exceed 50% of its capital stock and surplus upon 
 Mtg. or any other form of real estate security, 
 and then only upon the adoption of a resolution 
 by a 2-3rds vote of the board of directors 
 stating to what extent its officers may loan on 
 real estate, as herein provided, except to se- 
 cure a debt previously contracted in good 
 faith on personal security deemed at the 
 time adequate to secure such loan. 
 
 Sec. 24. Commercial Bks. may invest their 
 capital and deposits, except the reserve pro- 
 vided for in this Sec., in negotiable or com- 
 mercial paper, or loan the same upon personal 
 securities. 
 
 * * * Sec. 1. No Bk. shall take as security 
 for any loan or discount a lien upon any 
 part of its capital stock. The same security 
 in kind and amount shall be required of 
 stockholders and of persons not stockholders. 
 No Bk. shall be the holder or purchaser of 
 any portion of its capital stock unless such 
 purchase shall be necessary to prevent loss 
 upon a debt previously contracted in good 
 faith. Stock so purchased shall in no case 
 be held by the Bk. for a longer time than 6 
 Mos., if the stock can be sold for what it cost, 
 and it must be sold for the best price obtain- 
 able within 1 yr., or canceled as hereinafter 
 provided for the reduction of capital stock. 
 
 * * * Sec. 11. A bk. may purchase, hold 
 and convey real estate for the following pur- 
 poses, but no other: 
 
 1st. Such as shall be necessary for the con- 
 venient transaction of its business, includ- 
 ing with its banking office, other apartments 
 to rent as a source of income, but which 
 shall not exceed 50% of its paid-in capital; 
 
 2d, Such as shall be conveyed to it in satis- 
 
 10 
 
Commercial Banks. 
 
 MICHIGAN. 
 
 faction of debts previously contracted in the 
 course of its business; 
 
 3d. Such as it shall purchase at sale under 
 judgments, decrees, or Mtg. foreclosures 
 under securities held by it; * * * 
 
 Sec. 52. In addition to the investments 
 authorized by statute, State Bks. and Tr. Cos. 
 may invest their deposits and the income de- 
 rived therefrom: 1st, In the legally author- 
 ized bonds of the New York Cent. & Hud- 
 son Riv. R. R. Co., of the Mich. Cent. R. R. 
 Co., of the Lake Shore & Mich. So. Rwy. 
 Co., of the 111 . Cent. R. R. Co., of the Penn. 
 R. R. Co., of the Del., Lackawanna & West- 
 ern R. R. Co., of the Chi., Bur. & Quincy 
 R. R. Co., of the Chi. & Northwestern Rwy. 
 Co. and the Del. & Hud. Canal Co. : Pro- 
 vided, that all such bonds hereby authorized 
 for investment shall be secured by a 1st Mtg. 
 of the whole or a part of the R. R. and 
 R. R. property actually in the possession of 
 and operated by such Co., and provided that 
 each R. R. whose bonds are hereby authorized 
 for investment shall have earned and paid 
 regular dividends of not less than 4% each 
 fiscal yr. on all its issues of capital stock 
 for the 10 yrs. next preceding such invest- 
 ment, and that such capital stock shall equal 
 or exceed in amount i-3rd of the par value 
 of all its bonded indebtedness. Not more 
 
 than 20% of the whole amount of deposits 
 of any Bk. shall be loaned or invested in 
 
 R. R. bonds, and not more than 5% of the 
 
 deposits of any Bk. shall be invested in the 
 bonds of any one R. R. Street and electric 
 Rwy. Corps., shall not be considered R. R. 
 Corps, within the meaning of this subdiv. 2d, 
 In the legally authorized bonds of any R. R. 
 Co. incorporated under the authority of the 
 States of N. Y., Mass., Ohio, Mich., 111 . 
 
 or Iowa, whose road is located wholly or in 
 part in the. same and has earned and paid 
 regular dividends of not less than 4% per 
 annum on all its issues of capital stock for 
 the 10 yrs. preceding such investment: Pro- 
 vided, said bonds be secured by a 1st Mtg. 
 of the whole or a part of the R. R. and R. R. 
 
MICHIGAN. Safety and Collateral Deposit Companies. 
 
 property, of such Co. and be guaranteed, both 
 principal and interest, by one or more of 
 the Cos. named in the ist clause of this act. 
 
 See also Sec. 32 under Savings Banks. 
 
 SAFETY AND COLLATERAL DEPOSIT 
 COMPANIES. 
 
 (Act 478, P. A., 1907.) 
 
 Sec. 10. It shall be lawful for any such 
 Corp. to purchase, lease, hold and convey all 
 such real and personal estate as may be 
 necessary for the proper conduct of its busi- 
 ness. Any surplus of capital not used for 
 the purposes aforesaid may be invested in 
 such securities as are designated by law as 
 lawful investments for Sav. Bks. 
 
Savings Banks. 
 
 MINNESOTA. 
 
 Municipal Law in red . Street Railway Law in 
 
 Railroad Law in green. brown. 
 
 Other matter in black. 
 
 MINNESOTA. 
 
 Amended in 1913. 
 
 SAVINGS BANKS. 
 
 2976. Save as otherwise specially pro- 
 vided, the entire cost of land and buildings 
 for the transaction of the business of a 
 Sav. Bk., including premises leased to 
 others, shall not be more than 50% of its 
 net surplus, assets other than cash being 
 taken at cash market value. Any such cor- 
 poration may change its location, dispose 
 of its place of business, and acquire an- 
 other, upon the written approval of the 
 examiner. 
 
 3021. Any such Bk. may purchase, hold, 
 or convey land sold upon foreclosure of 
 Mtgs. owned by it, or upon judgments or 
 decrees in its favor, or in settlement of 
 debts, or received in exchange as part of 
 the consideration of real estate sold by it. 
 But real estate so received in exchange 
 shall not be carried on the books of the Bk. 
 at a price exceeding the cost of that ex- 
 changed, less the cash payment, and all real 
 estate so acquired shall be sold within 10 
 yrs. after its acquirement, unless the time is 
 extended by the public examiner on applica- 
 tion of the board of trustees. 
 
 3022 . Authorized Securities. The trus- 
 tees of any Sav. Bk. shall invest the moneys 
 deposited therein only as follows : 
 
 1. In the bonds or other interest bearing 
 obligations of the U. S. 5> or in securities 
 for the payment of which and interest 
 thereon the faith of the government is 
 pledged. 
 
 2. In the bonds of any state which has 
 not defaulted in the payment of any bonded 
 
MINNESOTA. 
 
 Savings Banks. 
 
 debt within io yrs. prior to the making of 
 such investment. 
 
 3. In the bonds of any county, city, town, 
 village, school, drainage, or other Dist. cre- 
 ated pursuant to law for public purposes 
 in Minn., or in any warrant, order or in- 
 terest bearing obligation issued by this 
 state, or by any city, city board, town or 
 county therein, provided, that the net debt 
 of any such municipality or Dist., as net 
 debt is defined by Revised Laws, 1905, Sec. 
 777, and its amendments, shall not exceed 
 10% of its assessed valuation, or in the 
 bonds of any county, city, town, village, 
 school, drainage or other Dist., created pur- 
 suant to law for public purposes in Iowa, 
 Wis., and No. and So. Dak., or in the 
 bonds of any city, county, town, village, 
 Sch. Dist., drainage or other Dist. created 
 pursuant to law for public purposes, in the 
 U. S., containing at least 3,500 inhabitants; 
 provided that the total bonded debt of any 
 such municipality or Dist. shall not exceed 
 10% of its assessed valuation. 
 
 4. In notes or bonds secured by Mtgs. 
 or Tr. Deeds on unincumbered real estate 
 in Minn., Wis., Iowa, No. Dak., So. Dak., 
 and Mont., worth when improved at least 
 twice and when unimproved at least 3 
 times the amount loaned thereon. But 
 not more than 70% of the whole amount 
 of the moneys of the Bk. shall be so loaned, 
 and such investment shall be made only on 
 report of a committee directed to investi- 
 gate the same and report its value, accord- 
 ing to the judgment of its members, and 
 its report shall be preserved among the 
 bank's records. 
 
 5. In notes secured by such bonds or 
 Mtgs. as the Bk. under this section is auth- 
 orized to invest in, but no such bond or 
 Mtg. shall be taken as collateral security 
 for more than its par value, nor shall the 
 aggregate amount of securities taken be 
 less than the full amount loaned thereon, 
 
Savings Banks. 
 
 MINNESOTA. 
 
 and no such loan shall be made for a 
 longer time than I year, nor to a greater 
 amount to any I person than 3% of the 
 total deposits of the Bk. No such Bk. 
 shall loan in the aggregate on the security 
 specified in this paragraph, more than ^ 
 of its deposits. 
 
 6. In the bonds of any R. R. Co., or the 
 successor of any R. R. Co., which has re- 
 ceived a land grant from the government, 
 and whose bonds are secured by 1st lien 
 upon its R. R. 
 
 7. In the bonds of any other R. R. Co. 
 which are secured by 1st lien upon a R. R. 
 within the U. S., or in the Mtg. bonds of 
 any such Co., of an issue to retire all prior 
 Mtg. debt thereof, or in the bonds of any 
 R. R. Co. in the U. S. which are guaranteed 
 or assumed by another R. R. Co. within the 
 U. S. : Provided, that the R. R. Co., except 
 one whose bonds are so guaranteed or as- 
 sumed, either issuing, guaranteeing, or as- 
 suming any of such bonds, has not within 
 5 yrs. prior to such investment failed in the 
 payment of a dividend upon its entire capi- 
 tal stock outstanding of not less than 4% 
 per annum each fiscal yr., and has not with- 
 in such time defaulted in the payment of 
 any part of the principal or interest of any 
 debt incurred by it and secured by trust 
 deed or Mtg. upon its road or any part 
 thereof, or in the payment of any part of 
 the principal or interest of any bonds guar- 
 anteed or assumed by it. But no such Bk. 
 shall loan upon or invest in R. R. bonds to 
 an amount exceeding in the aggregate 20% 
 of its deposits, nor exceeding 5% of its de- 
 posits in the bonds issued, guaranteed, or 
 assumed by any one R. R. Co. 
 
 8. In the debenture stock of any R. R. 
 Co. owning and operating a line of road in 
 whole or in part within the state, provided 
 that such stock shall bear interest at the 
 rate of at least 4% per annum, and shall be 
 secured by trust deed as a 1st lien upon 
 
MINNESOTA. 
 
 Savings Banks. 
 
 such line of Rwy., and that not more than 
 5 % of its deposits shall be invested in 
 such stock. 
 
 The term “authorized securities,” when- 
 ever used in the Revised Laws, shall be 
 understood as referring to the securities 
 specified in this Sec. 
 
 777- NET INDEBTEDNESS DE- 
 FINED. — The words “net indebtedness/’ as 
 used herein, shall mean the sum of all out- 
 standing money obligations of the corpor- 
 ation referred to, after deducting: 
 
 1. Orders or warrants drawn upon the 
 treasurer, and payable forthwith. 
 
 2. Certificates of indebtedness and bonds 
 issued for the creation or maintenance of 
 a permanent improvement revolving fund. 
 
 3. Obligations incurred in acquiring land 
 for streets, parks or other public improve- 
 ments, and payable from the proceeds of 
 assessments levied upon property especially 
 benefited by such improvements. 
 
 4. Bonds issued for the purchase or con- 
 struction of public waterworks, or for the 
 enlargement, protection or distribution of 
 the water supply, for the establishment of 
 public lighting, heating, or power plants, 
 and for the acquisition and equipment, by 
 purchase or otherwise, of street railways, 
 telegraph or telephone lines, or any other 
 public convenience from which a revenue is 
 or may be derived. 
 
 5. The amount of all money, and the 
 face value of all securities held as a sink- 
 ing fund for the extinguishment of corpo- 
 rate debts other than those enumerated in 
 this section. 
 
 3023. Its board shall promptly invest all 
 deposits except so much, not exceeding 
 15%, as may be required for current neces- 
 sary disbursements, which it shall retain or 
 deposit in solvent authorized banking insti- 
 tutions in Minn, or in the cities of N. Y. 
 or Chicago, or in loans payable on demand 
 upon any of the first 2 classes of author- 
 
 4 
 
Savings Banks Acting Under 1867 Law. MINNESOTA. 
 
 ized securities to the extent only of 90% 
 of their cash market value, but never ex- 
 ceeding par; upon condition always that 
 in case of depreciation below that propor- 
 tion it shall be immediately restored by 
 additional security of the same classes or 
 at once repaid. But meanwhile so much 
 thereof as cannot be judiciously so invested 
 and as is not deemed necessary to be kept 
 on hand shall be deposited daily in 1 or 
 more solvent Bks. or Tr. Cos. In case of 
 the insolvency thereof, their indebtedness, 
 if any, to a Sav. Bk. shall be preferred to 
 that of every other creditor except the 
 U. S. and this state. * * * 
 
 Savings Banks Acting Under tiie Law of 1867. 
 
 Note: There are two distinct Sav. Bk. 
 laws in Minn. The foregoing matter cov- 
 ers all but the Hennepin County Sav. Bk., 
 Minneapolis, and the Winona Sav. Bk., Win- 
 ona, which are acting under the Law of 
 1867, given below. 
 
 (Chapter 71.) 
 
 Sec. 7. No president, trustee or officer or 
 servant of such Corp., shall directly or in- 
 directly borrow the funds of such Corp., 
 or its deposits, or in any manner use the 
 same in their private affairs or business. 
 
 Sec. 8. At least ^ of the whole amount 
 deposited shall be invested. 
 
 1st. In the bonds or interest-bearing 
 notes or obligations of the U. S., or those 
 for which the faith of the U. S. is pledged 
 for the payment of the interest and prin- 
 cipal. 
 
 2d. In the bonds of any state in the 
 Union, provided that such state has not 
 within 10 yrs. previous to making such in- 
 vestment by such Corp. defaulted in the 
 payment of any part of the principal or 
 interest on any debts authorized by any 
 
 5 
 
MINNESOTA. Savings Banks Acting Under 1867 Law. 
 
 } 
 
 
 
 legislature of such state to be contracted, 
 and of the State of Minn., issued since i860. 
 
 3d. In the bonds of any city, county, 
 town, village or Sch. Dist. in the states of 
 Minn., Wis., Iowa, No. Dak., So. Dak., 111 ., 
 Ind., Ohio or Mich., or in any warrants or 
 interest-bearing obligations issued by the 
 said states or counties in said states, or city 
 or city board, town, village or Sch. Dist. 
 within the county in which such Bks. shall 
 be situated, or in the bonds of any city, 
 county, town, village or Sch Dist. of the 
 U. S., which city, county, town, village or 
 Sch Dist. had at least 5,000 inhabitants as 
 determined by the state or U. S. census 
 taken next preceding the issue of bonds 
 tendered; provided, that the bonded debt 
 of any such city, county, town, village or 
 Sch. Dist. so tendering bonds shall not ex- 
 ceed 10% upon the assessed valuation of 
 such city, county, town, village or Sch. Dist. 
 at the time of the issue of the bonds 
 tendered. 
 
 4th. In notes secured by Mtg. on unin- 
 cumbered real estate situate in the states 
 of Minn., Wis., Iowa, No. Dak. or So. Dak., 
 and worth at least twice the amount loaned 
 thereon, but in case the loan is on unim- 
 proved or unproductive real estate the amount 
 loaned thereon shall not be more than 30% 
 of its actual value, and no investment in 
 any bond and Mtg. shall be made by any 
 Sav. Bk. except upon the report of a com- 
 mittee charged with the duty of investigat- 
 ing the same, and who shall certify to the 
 value of the premises mortgaged, or to be 
 mortgaged, according to their best judg- 
 ment, and such report shall be filed and 
 preserved among the records of the in- 
 stitution. 
 
 5th. The remaining V 2 may be invested 
 in said bonds or loaned on the aforesaid 
 securities or upon approved personal or 
 collateral security or in the bonds of an> 
 
 R. R. Co. as hereinafter provided, or used 
 
 6 
 
Savings Banks Acting Under 1867 Law. MINNESOTA. 
 
 to buy and sell exchange; but no loan shall 
 be made upon the personal security of less 
 than 2 responsible individuals. 
 
 6th. In the bonds of any R. R. Co., or 
 the successor of any R. R. Co., which has 
 w received a land grant from the government 
 of the U. S., and which are secured by 1st 
 lien upon its R. R. 
 
 7th. In the bonds of any other R. R. Co., 
 which are secured by ist lien upon a R. R. 
 within the U. S., or in the Mtg. bonds of 
 any such R. R. Co. of an issue to retire all 
 prior Mtg. debt of such R. R. Co.; or in 
 the bonds of any R. R. Co. within the 
 U. S., which are guaranteed or assumed by 
 another R. R. Co., within the U. S. ; pro- 
 vided, that the R. R. Co. (except a R. R. 
 Co. whose bonds are guaranteed or as- 
 sumed as aforesaid) either issuing, guar- 
 anteeing or assuming any of said bonds has 
 not within 5 yrs. prior to the time of mak- 
 ing such investment by said Bk. failed in 
 the payment of a dividend, upon its entire 
 capital stock outstanding, of not less than 
 4% per annum each fiscal yr. during said 
 5 yr. period ; and has not within 5 yrs. 
 prior to the time of making such invest- 
 ment by said Bk., defaulted in the payment 
 of any part of the principal or interest of 
 any debt incurred by it and secured by Mtg. 
 or trust deed upon its R. R., or any part 
 thereof, or in the payment of any part of 
 N the principal or interest of any bonds guar- 
 anteed or assumed by it; and provided fur- 
 ther, that no Sav. Bk. shall ever loan upon, 
 or invest in R. R. bonds to exceed in the 
 aggregate 20% of its deposit nor shall such 
 Sav. Bk. ever loan upon or invest in the 
 bonds issued or guaranteed or assumed by 
 any one R. R. Co., to exceed in the aggre- 
 gate 5% of its deposits. 
 
MINNESOTA. 
 
 Trust Companies. 
 
 TRUST COMPANIES. 
 
 3333. * * * No Tr. Co. hereafter organized 
 shall transact any business until all of its 
 authorized capital stock has been paid in, 
 in cash, or, if such authorized capital be 
 more than $200,000, until at least $200,000 
 thereof has been paid in, in cash, and at 
 least 50% of the capital of all Tr. Cos. of 
 less than $200,000 and 25% of the capital of 
 all Tr. Cos. of $200,000 or more hereafter 
 organized has been invested in one or more 
 of the 1st, 2d, 3d, 4th, 7th, and 8th classes 
 of authorized securities,* duly assigned and 
 transferred to and deposited with the Supt. 
 of Bks., and his certificate thereof pro- 
 cured; or, if its capital be more than 
 $200,000, until at least %th thereof has been 
 so invested, assigned, transferred and de- 
 posited, and such certificate thereof pro- 
 cured. * * * Such deposit shall be maintained 
 unimpaired as a guaranty fund for depos- 
 itors and creditors and for the faithful dis- 
 charge of its duties, with the right to col- 
 lect the income thereof and to substitute 
 other like authorized securities* of equal 
 amount and value. 
 
 The capital stock of any Tr. Co. may be 
 reduced with the approval of the Supt. of 
 Bks.,f * * * and no assets shall be returned 
 to the stockholder unless its deposits of 
 authorized securities* after such return 
 equal % th of such reduced capital in no 
 event less than $25,000; * * *. 
 
 3035. Such corporation may acquire, use, 
 and improve, and for that purpose Mtg., 
 lease, sell, and convey, such real and per- 
 sonal property as may be necessary for the 
 transaction of its business. Any estate or 
 interest in real estate which it may acquire 
 by virtue of the foreclosure of any Mtg., 
 Tr. deed, or other security, or by the settle- 
 
 *See Section 3022 under Savings Banks, which 
 allows certain and municipal securities. 
 
 fBut not below a certain minimum. 
 
Trust Companies. 
 
 MINNESOTA. 
 
 ment of any obligation or otherwise, in the 
 course of its legitimate business, it may sell 
 or continue to hold and use as deemed for 
 its interests or those of the estate or trust 
 to which the same belongs, and to that end 
 it may become the purchaser at any fore- 
 closure or judicial sale to which it is a party 
 as trustee or otherwise. It may also accept 
 or make any deed, Mtg., or other instru- 
 ment necessary for the transaction of its 
 business, may loan money and secure such 
 loans by Mtg., Tr. deed or pledge, purchase 
 notes, bonds, Mtgs., and other evidences 
 of debt, and securities, and sell and assign 
 the same, and convert them into cash or 
 into other authorized securities,* or securi- 
 ties and property not herein expressly pro- 
 hibited. * * * It shall invest none of its cap- 
 ital or surplus in real estate except as here- 
 in authorized, nor any of its deposits or 
 Tr. funds or property therein except as so 
 authorized, or under or by virtue of an ex- 
 press contract, judgment, or other instru- 
 ment conferring or imposing special power 
 and authority so to do. 
 
 3040. It may invest all moneys received 
 by it in trust in authorized securities* and 
 shall be responsible to the owner or cestui 
 que trust for the validity, regularity, qual- 
 ity, value, and genuineness of such invest- 
 ments and securities so made, and for the 
 safe-keeping of the securities and evidences 
 thereof. Whenever special directions are 
 given in any order, judgment, decree, will, 
 or other written instrument as to the par- 
 ticular manner or the particular class or 
 kind of securities or property in which any 
 investment shall be made, it shall follow 
 such directions, and in such case it shall 
 not be further responsible by reason of the 
 performance of such trust. . In all other 
 cases it may invest the same in any of said 
 
 *See Section 3022 under Savings Banks, which 
 allows certain railrop, and municipal securities. 
 
 9 
 
MINNESOTA. State Banks of Discount and Deposit. 
 
 authorized securities,* using its best judg- 
 ment in the selection thereof, and shall be 
 responsible for their validity, regularity, 
 quality, and value thereof at the time made, 
 and for their safe-keeping. It may, in its 
 discretion, retain and continue any invest- 
 ment and security or securities coming into 
 its possession in any fiduciary capacity. 
 
 3043. Any amount not less than $100,000 
 received by it as executor, administrator, 
 guardian, or other trustee, or by order of 
 court, not required for the purposes of such 
 trust, or not to be accounted for within 1 
 yr., it shall invest as soon as practicable 
 in authorized securities* either then held by 
 it or specially procured by it; and the in- 
 come, less its proper charges, shall become 
 part of the trust estate, and the net accum- 
 ulations thereon shall be likewise invested, 
 accounted for, and allowed in the settle- 
 ment of such trust. 
 
 3045. * * * It shall not lend its funds, 
 moneys, capital, trust funds, or any other 
 property whatsoever, to any director, offi- 
 cer, agent, or employee, nor shall any such 
 director, officer, agent, or employee become 
 in any manner indebted to it by means of 
 any overdraft, promissory note, account, 
 indorsement, guaranty, or any other con- 
 tract. * * * 
 
 STATE BANKS. 
 
 BANKS OF DISCOUNT AND DEPOSIT. 
 
 2976. Save as otherwise specially pro- 
 vided, the entire cost of land and buildings 
 for the transaction of the business of such 
 a corporation, including premises leased to 
 others, shall not be more than as follows, 
 assets other than cash being taken at cash 
 market value : For a Bk, 25% of its ex- 
 
 *See Section 3022 under Savings Banks, which 
 allows certain railroad and municipal securities. 
 
State Banks of Discount and Deposit. MINNESOTA. 
 
 isting capital and surplus. Any such cor- 
 poration may change its location, dispose 
 of its place of business, and acquire an- 
 other, upon the written approval of the 
 examiner. 
 
 2989. No director shall directly or indi- 
 rectly, in any manner, use the funds of the 
 Bk. or any part thereof except in its regu- 
 lar business transactions, and every loan 
 made to any of its directors, officers, ser- 
 vants, or agents shall be upon the same 
 security required of others and in strict 
 conformity to its rules and regulations. 
 Every such loan shall be made by the board 
 and acted upon in the absence of the appli- 
 cant. 
 
 2992. It shall make no loan or discount 
 on the security of its own capital stock, nor 
 be the purchaser or holder thereof unless 
 necessary to prevent loss upon a debt pre- 
 viously contracted in good faith, and all 
 stock so acquired shall be disposed of at 
 public or private sale within 6 mos. after 
 it is so acquired. 
 
 2993. The total liabilities to it, as princi- 
 pal, surety, or endorser, of any person, 
 Corp., or co-partnership, including the lia- 
 bilities of the several members thereof, 
 shall never exceed 15% of its capital actu- 
 ally paid in cash and of its actual surplus 
 fund. Provided, however, that loans not 
 exceeding 25% of such capital and surplus 
 made upon 1st Mtg. security on improved 
 farms in the State of Minn., shall not con- 
 stitute a liability of the maker of the notes 
 secured by such Mtgs. within the meaning 
 of the foregoing provision limiting liability, 
 but shall be an actual liability of such 
 maker; provided, that such Mtg. loans be 
 limited to, and in no case to exceed 40% of 
 the cash value of the security covered by 
 such Mtg. The total liability of any officer 
 or director shall never exceed 10% of the 
 same aggregate amount. But the discount 
 of the following classes of paper shall not 
 
 11 
 
MINNESOTA. State Banks of Discount and Deposit. 
 
 be regarded as creating liability within the 
 meaning of this section, viz. : 
 
 1. Of commercial paper actually owned 
 by the person negotiating the same, or of 
 the bonds, orders or warrants of any 
 county, town, village, or Sch. Dist. in this 
 State. 
 
 2. Bills of exchange drawn in good faith 
 against actually existing values. 
 
 3. Paper based upon the collateral secu- 
 rity of warehouse receipts covering agri- 
 cultural or manufactured products stored 
 in elevators or warehouses under either of 
 the following conditions : 
 
 1st. When the actual market value of the 
 property covered by such receipts at all 
 times exceeds by at least 10% the amount 
 loaned thereon. 
 
 2d. When the full amount of every such 
 loan is at all times covered by fire insurance 
 in duly authorized Co’s., within the limit 
 of their ability to cover such amounts, and 
 the excess, if any, in Co’s., having sufficient 
 paid-up capital to authorize their admission, 
 and payable, in case of loss, to the Bk. or 
 holder of the warehouse receipt, unless 
 accompanied by a certificate of the R. R. 
 and Warehouse Commission declaring the 
 warehouse issuing the same to be fireproof. 
 
 2995. The real estate used by it for the 
 transaction of its business may include 
 premises leased to others, provided the en- 
 tire cost does not exceed 25% of its actual 
 paid-in capital and surplus. It shall hold 
 no other real estate longer than 5 yrs., un- 
 less such time has been extended by cer- 
 tificate of the public examiner duly filed 
 for record with the register of deeds of 
 each proper county. 
 
 2996. * * * Whenever its reserve shall 
 become impaired, it shall make no new 
 loans or discounts except upon sight bills 
 of exchange. * * * 
 
 12 
 
Banks of Deposit and Discount. 
 
 MISSOURI. 
 
 Municipal Law in reel. Street Railway Law in 
 Railroad Law in green. 'brown. 
 
 Other matter in black. 
 
 MISSOURI. 
 
 Revised Statutes of 1907. 
 
 In effect on and after January 15, 1909. 
 
 BANKS OF DEPOSIT AND DISCOUNT. 
 
 (Chapter 12, Article VIII.) 
 
 Sec. 4. Every such Corp. shall be author- 
 ized and empowered to conduct the business 
 of * * *, loaning money upon real estate 
 or personal property, and upon collateral 
 and personal securities, at a rate of interest 
 not exceeding that allowed by law, and also 
 of buying, selling and discounting negotiable 
 and non-negotiable paper of all kinds, as well 
 as all kinds of commercial paper; and for 
 all loans and discounts made, such Corp. 
 may receive and retain in advance the 
 interest. * * * 
 
 Sec. 8 . Every Bkg. Corp., * * * shall, at 
 all times, have an amount of cash on hand, 
 and cash due from other Bks. equal to at 
 least 15% of the aggregate amount of its 
 demand deposits. Whenever the reserve of 
 a Bk., as hereinbefore required, shall fall 
 below 15% of its demand deposits, then such 
 Bk. shall not make any new loans or dis- 
 counts until it shall, by collections, restore 
 its lawful reserve. 
 
 Sec. 9. * * * No director or officer of a 
 
 Bk. of this state shall be permitted to bor- 
 row any of the money of the Bk. in which 
 he is a director or officer in excess of 10% 
 of the capital and surplus without the con- 
 sent of a majority of the directors of the 
 Bk., other than the borrower, first having 
 been obtained in a regular meeting of the 
 board, said consent to be made a matter of 
 record before the loan is made. 
 
 * Sec. 19. No Corp. now existing, nor any 
 hereafter organized under any law of this 
 
 1 
 
MISSOURI. 
 
 Banks of Deposit and Discount. 
 
 state, whether general or special, as a Bk., 
 or to carry on a Bkg. business, shall employ 
 its moneys, directly or indirectly, in trade 
 or commerce, by buying and selling ordinary 
 goods, chattels, wares and merchandise, or 
 by owning or operating industrial plants : 
 Provided, that it may sell all kinds of prop- 
 erty which may come into its possession as 
 collateral security for loans, or in the ordi- 
 nary collection of debts. 
 
 Sec. 20. No incorporated * * * Bk. in this 
 state shall loan its money to any individual, 
 Corp. or Co., directly or indirectly, or per- 
 mit any individual Corp. or Co. to become at 
 any time indebted or liable to it in a sum 
 exceeding 25% of its capital stock, actually 
 paid in, or permit a line of loans or credits 
 to any greater amount to any individual or 
 Corp. ; a permanent surplus, the setting apart 
 of which shall have been certified to the Bk. 
 Com., and which can not be diverted without 
 due notice to said officer, may be taken and 
 considered as a part of the capital stock for 
 the purposes of this Sec. : Provided, said sur- 
 plus is equal to or in excess of 50% of the 
 capital stock of said Bk. : Provided, that the 
 provisions in this Sec. shall not be so con- 
 strued as in anywise to interfere with the 
 rules and regulations of any clearing asso- 
 ciation in this state in reference to the daily 
 balances between Bks. : Provided, that this 
 Sec. shall not apply to balances due from 
 correspondents subject to draft; And pro- 
 vided, further, that the discount of the fol- 
 lowing classes of paper shall not be consid- 
 ered as money borrowed within the mean- 
 ing of this Sec., viz.: (1) The discount of 
 bills of exchange drawn in good faith against 
 actually existing values. (2) The discount 
 of paper based upon the collateral security 
 of warehouse receipts, covering agricultural 
 and manufactured products, in stores, in 
 elevators and warehouses, under the follow- 
 ing conditions : 1st, that the actual market 
 value of the property held in store and cov- 
 ered by such receipts shall at all times ex- 
 ceed by at least 20% the amount loaned 
 
 2 
 
Trust Companies. 
 
 MISSOURI. 
 
 upon same. 2d, that the full amount of the 
 loans shall at all time be covered by policies 
 of fire Ins. issued by Cos. admitted to do 
 business in this state to the extent of their 
 ability to cover such loans, and then by Cos. 
 having sufficient paid-up capital to be so 
 admitted, and all such policies shall be made 
 payable in case of loss to the Bk. or holder 
 of the warehouse receipts. 
 
 See also Art. XX at the end of Tr. Cos. 
 
 TRUST COMPANIES. 
 
 Revised Statutes of 1907. 
 
 (Chapter 12, Article XII.) 
 
 Sec. 5. Corps, may be created under this 
 Art. for any of the following purposes * * * 
 8th, to loan money upon real estate and collat- 
 eral security, and execute and issue its notes 
 and debentures payable at a future date, and 
 to pledge its Mtgs. on real estate and other 
 securities as security therefor, which notes 
 and debentures may be issued to an amount 
 not exceeding, in the aggregate, 10 times the 
 amount paid up on the capital stock of the 
 Co. issuing the same, and shall in no case 
 exceed the amount of first Mtgs. pledged to 
 secure their payment; 9th, to buy and sell 
 all kinds of government, state, municipal 
 and other bonds, and all kinds of negotiable 
 and non-negotiable paper, stocks or other 
 investment securities. 
 
 Sec. 5 a. * * * Whenever the reserve of a 
 Tr. Co., as herein required, shall be below 
 15% of its demand deposits, as herein above 
 defined, then such Tr. Co. shall not make any 
 new loans or discounts until it shall restore 
 its lawful reserve. * * * 
 
 Sec. 8. * * * Whenever the reserve of a 
 
 Tr. Co. as hereinbefore required shall fall 
 below 15% of its deposits, then such Tr. Co. 
 shall not make any new loans or discounts 
 until it shall, by collections, restore its law- 
 ful reserve : Provided, however, that de- 
 posits made with such Tr. Co. for a definite 
 and specified time, and not subject to check, 
 
MISSOURI. 
 
 Trust Companies. 
 
 shall not be considered in determining the 
 aggregate amount of deposits at any given 
 time, as contemplated by this Sec. 
 
 Sec. 9. * * * No director or officer of a 
 
 Tr. Co. in this state receiving deposits shall 
 be permitted to borrow any of the money 
 of the Tr. Co. in which he is a director or 
 officer in excess of 10% of the paid-up capi- 
 tal and surplus without the consent of a 
 majority of the directors of the Tr. Co., 
 other than the borrower, first, having been 
 obtained in [a] regular meeting of the board, 
 said consent to be made a matter of record 
 before the loan is made. 
 
 Sec. 10. The directors of Corps, created 
 under this Art. shall have power of invest- 
 ing the moneys placed in their charge in loans 
 secured by real estate or other sufficient col- 
 lateral security, in public bonds of the U. S., 
 or of this state, or in the bonds or stock of 
 any incorporated city or county in this state. 
 Such Corp. shall own only such real estate 
 as may be required for the transaction of 
 their business, and such as they may require 
 in the enforcement and collection of debts 
 or liabilities due to them. * * * 
 
 Sec. 18. Any Co. now doing business in 
 this state, or which may hereafter be or- 
 ganized under the provisions of this Art. to 
 do business in this state, which shall make 
 with the Supt. of the Ins. Dept, a deposit 
 of $200,000, consisting of cash, treasury 
 notes of the U. S., or government, state, 
 county, municipal or other bonds, or bonds, 
 notes or debentures secured by 1st Mtgs. 
 or deeds of Tr. on unencumbered real estate 
 in the state of Mo., worth at least double 
 the amount loaned thereon, or such other 
 first-class securities as the said Supt. may 
 approve, said bonds or securities not to be 
 received or held at a rate above par, but if 
 their market value is less than par, they shall 
 not be held above their actual market value, 
 and which shall satisfy said Supt. of its solv- 
 ency, and shall have received the certificate 
 of said Supt. that such Co. has made said 
 deposit and has satisfied him of its solvency, 
 
Savings and Safe Deposit Institutions. 
 
 it being hereby made the duty of said Supt. 
 to issue such certificate in accordance with 
 the facts, shall be permitted to qualify as 
 guardian, curator, executor, administrator, 
 assignee, receiver, trustee, by appointment of 
 any court, or under will, or depository of 
 money in court, without giving bond a? 
 such. * * * 
 
 And in case the interest on any security 
 deposited with the Supt. of the Ins. Dept, 
 under this Sec. shall not be paid at maturity, 
 and shall remain unpaid for 6 mos. there- 
 after, it shall be his , duty to require the Co. 
 which deposited the same to remove them 
 and deposit in their place other securities, 
 equal in amount to those removed, upon 
 which the interest has not been de- 
 faulted. * * * 
 
 (Chapter 12, Article XX.) 
 
 Sec. 15. No Bk., Sav. & Safe Dep. Co. or 
 Tr. Co. receiving deposits shall make any 
 loan or discount on the security of the shares 
 of its own capital stock, nor be the pur- 
 chaser or holder of any such shares, unless 
 such security or purchase shall be necessary 
 to prevent loss upon a debt previously con^ 
 tracted in good faith; and stock so purchased 
 or acquired shall, within 6 mos., from the 
 time of its purchase, be sold or disposed of 
 at public or private sale. * * * 
 
 SAVINGS AND SAFE DEPOSIT INSTITUTIONS. 
 
 Revised Statutes of 1907. 
 
 Sec. 7. Corps, may be created under this 
 Art. : 1st, for the purpose of receiving, for 
 accumulation and safe keeping, and deposit 
 of money, from any person, Corp. or society, 
 and investing, holding and repaying the same, 
 crediting and paying interest thereon, as in 
 this Art. authorized and provided, and not 
 otherwise. * * * 
 
 All sums so received, except those held as 
 bailee for safe keeping and storage only, and 
 the income derived therefrom, and all 
 
MISSOURI. Savings and Safe Deposit Institutions. 
 
 moneys entrusted to any such Corp., by or- 
 der of court or other lawful authority, shall 
 be invested only as follows: 
 
 ist. In bonds or interest-bearing notes or 
 obligations of the U. S., or those for which 
 the faith of the U. S. is pledged for the 
 payment of the interest and principal. 
 
 2d. In bonds of this state bearing interest. 
 3d. In bonds of any state in the Union 
 that has not, within 5 yrs. previous to mak- 
 ing such investments by such Corp., de- 
 faulted in the payment of any part of either 
 principal or interest thereof. 
 
 4th. In bonds of any city, county, town, 
 township or Sch. Dist. of this state that has 
 not defaulted in the payment of any part of 
 either principal or interest thereof, within 
 5 yrs. previous to making such investment ; 
 and provided, such bonded debt does not 
 exceed 5%. 
 
 5th. In the bonds of any city, town or 
 county which had, in each case, at the time 
 of the investment, more than 20,000 inhabi- 
 tants, as ascertained by the U. S. or state 
 census made next preceding such investment 
 in the states of 111 ., Ohio, Ind., Mich., Iowa, 
 Kans., Neb., Wis., Colo, or Texas, issued 
 pursuant to the authority of any law of such 
 states : Provided, the entire bonded debt of 
 such city or county shall not exceed 5% of 
 the assessed value of the taxable property 
 therein, including the issue of bonds in 
 which said investment is made, as shown by 
 the last assessment preceding the investment : 
 And, provided further, that such city, town 
 or county, or state in which it is situated, 
 has not defaulted in the payment of any 
 part of either principal or interest thereof 
 within 5 yrs. previous to making such invest- 
 ment. It shall not be lawful for any Sav. 
 Tnst. organized under this Art. to invest more 
 than 25% of its assets in the bonds of cities, 
 towns or counties situated outside of this 
 state, nor to invest more than 3% of its as- 
 sets in the bonds of any one of such cities, 
 towns or counties, nor to invest in more than 
 to% of all the bonds issued by any such city, 
 
Savings and Safe Deposit Institutions. MISSOURI. 
 
 town or county, nor to make any invest- 
 ment in the bonds of any city, town or county 
 situated out of this state, which has been or 
 shall be issued to aid in the construction of 
 any R. R. 
 
 6th. In the ist Mtg. bonds of any steam 
 Rwy., the income of which is sufficient to 
 pay all operating expenses and fixed charges, 
 and which is completed and operated, wholly 
 or in part, in the following named states : 
 Mo., Ind., Iowa, Minn., Kans., Neb., Colo., 
 Mich., 111 ., Wis., Ark., Texas, and Ohio, and 
 which has paid the interest as it became due 
 on its bonds for 3 yrs. next preceding such 
 investment, or in the ist Mtg. bonds of the 
 Cent. Pac., Nor. Pac., Union Pac., N. Y. 
 Cent., West Shore and Penn. Rwy. Cos. 
 
 7th. In bonds or notes secured by ist 
 Mtgs. or deeds of Tr. on unencumbered real 
 estate, worth at least twice the amount 
 loaned thereon ; but in case the loan is on 
 unimproved and unproductive real estate, the 
 amount loaned shall not be more than 40% 
 of its actual value ; but not to exceed 60% 
 of the whole amount of the funds of the 
 Corp. shall be so loaned or invested ; and 
 no investment in any bond or notes so se- 
 cured shall be made, except upon the report 
 of a committee charged with the duty of in- 
 vestigating the same, who shall certify to the 
 value of the premises mortgaged, according 
 to their best judgment, and such report shall 
 be filed and preserved among the records of 
 the institution. 
 
 8th. In real estate, subject to the provi- 
 sions of Sec. 8 of this Art. — It shall be the 
 duty of the directors of any such Corp., as 
 soon as practicable, to invest such fund of 
 money, by purchase or otherwise, in the 
 securities named in Secs. 7 and 8 of this Art., 
 with power from time to time to sell and 
 reinvest the proceeds of such investment; but 
 for the purpose of meeting current payments 
 and expenses in excess of the receipts, any 
 of the securities may be sold or pledged ; and 
 there shall be kept an available cash fund of 
 not less than 15% of the whole amount of 
 
MISSOURI. Savings and Safe Deposit Institutions. 
 
 its assets, and the same, or any part thereof, 
 together with the current receipts over the 
 payments, may be kept on hand or on de- 
 posit, payable on demand, in any Bk. or Bkg. 
 Asso. in the state of Mo., organised under 
 any law of this state or of the U. S., or 
 with any Safe Dep. Co. or Tr. Co. incor- 
 porated under the laws of this state. The de- 
 posits in any one Bk., Safe Dep. or Tr. Co. 
 shall not exceed 20% of the total deposits, 
 capital and surplus of the depositing Bk. 
 
 Sec. 8. It shall be lawful for such Corp. 
 to purchase, hold, sell and convey real estate, 
 as follows : 
 
 1st. A plot whereon is erected or to be 
 erected a building or buildings requisite for 
 the convenient transaction of its business, 
 and from portions of which, not required for 
 its own use, a revenue may be derived, the 
 cost not to exceed the sum of $100,000, ex- 
 cept in cities of over 300,000 inhabitants, when 
 the cost shall not exceed $250,000. 
 
 2d. Such as shall be purchased by it at 
 sales upon the foreclosure of Mtgs. or deeds 
 of Tr. owned by such Corp., or upon judg- 
 ments of decrees rendered for debts due to 
 it, or purchased or taken in settlements to 
 secure such debts ; and all such real estate 
 mentioned in this clause shall be sold by 
 such Corp. within 5 yrs. after the same shall 
 be vested in it, unless the Bk. Com. shall 
 extend the time within which such sale shall 
 be made. No such Corp., nor any person 
 acting in its behalf, shall negotiate, take or 
 receive a fee, brokerage, commission or gift, 
 or other consideration, for or on account of 
 a loan made by and in behalf of such Corp. 
 other than appears on the face of the note 
 or contract by which such loan purports to 
 be made; but nothing contained herein shall 
 apply to any reasonable charge for services 
 in the examination of titles and the prepara- 
 tion of conveyance to such Corp. as security 
 for its loans. All sums paid for services, 
 fees or otherwise, to a member of the board 
 of directors shall be reported in detail at 
 each regular meeting of the directors. All 
 
 s 
 
Savings and Safe Deposit Institutions. MISSOURI. 
 
 applications for loans shall be made in writ- 
 ing through the treasurer of the Corp., who 
 shall keep a record thereof, showing the 
 date, name of applicant, amount asked or 
 the security offered, and shall cause the same 
 (same) to be presented to the board of 
 directors. 
 
 Sec. 9. It shall be unlawful for any such 
 Corp. to deal or trade in real estate, ex- 
 cept as provided in Sec. 8 of this Art., or 
 to deal or trade in goods, wares and mer- 
 chandise or commodities whatever, except as 
 authorized by the terms of this Art., and ex- 
 cept such personal property as may be neces- 
 sary in the transaction of its business as by 
 this Art. authorized; or to loan money upon 
 or to discount or deal in notes, bills of ex- 
 change or other personal security, or to trans- 
 act any banking business, whether of issue, 
 deposit or discount. The board of directors 
 may, however, make loans to the depositors, 
 not exceeding 50% of the amount on deposit 
 by such depositor at the date the loan is 
 made; and in such case the deposit and the 
 book of the depositor shall be held by the 
 Corp. as collateral security for the payment 
 of such loan. 
 
 Sec. 10 * * * And no director or officer 
 
 of such Corp. shall, directly or indirectly, for 
 himself or as the agent or partner of others, 
 borrow any of the funds of the Corp. or in 
 its custody, or in any manner use the same, 
 except to make necessary current payments 
 for the Corp., or to make investments or to 
 deposit for safety, under the direction and 
 authority of the board of directors; nor shall 
 any director or officer of such Corp. be an 
 indorser or surety, or in any manner be an 
 (obligator) [obligor] for moneys loaned by 
 or borrowed of the Corp. 
 
 See also Art. XX at the end of Tr. Cos. 
 
Savings Banks. 
 
 NEBRASKA. 
 
 Municipal Law in red. Street Railway Law in 
 Railroad Law in green. brown. 
 
 Other matter in black. 
 
 NEBRASKA. 
 
 Corrected to and including 1913 Session. 
 
 SAVINGS BANKS. 
 
 Chapter 8. 
 
 Sec. 23. * * * * Whenever the available 
 funds of any Bk. shall fall below the reserve 
 herein required, such Bk. shall not make any 
 new loans or discount otherwise than by dis- 
 counting or purchasing bills of exchange pay- 
 able at sight; * * * * 
 
 Sec. 25. No Corp. transacting a B’k’g. busi- 
 ness shall make any loan or discount on the 
 security of the shares of its own capital stock, 
 nor be the purchaser or holder of any such 
 shares, or the shares of any Corp., unless such 
 security or purchase shall be necessary to pre- 
 vent loss upon a debt previously contracted in 
 good faith ; and such stock so purchased or ac- 
 quired shall within 6 mos. from the time of its 
 purchase be sold or disposed of at public or 
 private sale; * * * * Provided, that in no case 
 shall the amount of stock so held, exceed 10% 
 of the paid up capital of such Bk. 
 
 Sec. 32. No officer other than a director, 
 who is not an officer and no employee of any 
 Corp. transacting a B’k’g. business under this 
 act shall be permitted to borrow any of the 
 funds of the Bk. directly or indirectly, and no 
 director of a Bk. shall be permitted to borrow 
 any of the funds of the Bk. without first hav- 
 ing secured the approval of the board of di- 
 rectors at a meeting thereof, the record of 
 which shall be made and kept as part of the 
 records of said Bk. * * * * 
 
 Sec. 36. * * * * The loanable funds of any 
 Sav. Bk., except the reserve provided for in 
 this act, shall be invested i n bonds of the U. S., 
 or of any state of the U. S. or in the public 
 debt or bonds of any city, county, township, 
 village or sch. dist. of any state of the U. S., 
 which shall have been authorized by the legis- 
 lature of the state, or when approved by the 
 State Banking Board in other bonds of 
 
NEBRASKA. 
 
 State Banks. 
 
 known marketable value, or shall be loaned 
 on negotiable paper, secured by any of the 
 above mentioned classes of security, or upon 
 notes or bonds secured by Mtg. lien upon 
 unincumbered real estate; Provided, that 2d 
 Mtg. loans may be made on improved farm 
 lands, but no loans shall be made on such 
 improved farm lands, or other real estate 
 which including the aggregate amount of in- 
 cumbrance thereon, shall exceed 50% of the 
 cash value thereof, or upon notes secured by 
 collateral security of known marketable value, 
 or held as cash, or shall be deposited in good 
 solvent Bks. ; Provided, that chattel Mtgs. shall 
 not be deemed collateral security and Sav. 
 Bks. are hereby prohibited from investing 
 their funds in them. 
 
 Parts of Secs. 22 and 24, under State Bks., 
 also apply to Sav. Bks. 
 
 STATE BANKS. 
 
 Chapter 8. 
 
 Sec. 22. Every Bk. shall at all times have 
 on hand as a reserve in available funds an 
 amount equal to at least 15% of the aggre- 
 gate amount of its deposits. J^d of said 15% 
 shall be cash in the vaults of the Bk. ; Pro- 
 vided that in cities, having a population of 
 more than 25,000, said reserves shall be 20% 
 of the aggregate amount of the deposits. 2-5ths 
 of said 20% shall be in cash in vaults of the 
 bank; Provided, further, that Sav. Bks. shall 
 have on hand at all times as a reserve in avail- 
 able funds an amount equal to at least 5% of 
 their aggregate deposits ; and Provided, that no 
 part of said reserve fund which is not required 
 to be kept in cash in the vaults of the Bk. 
 shall be kept in any depository which in the 
 opinion of the state banking board would not 
 be a proper and safe custodian of such re- 
 serve fund. 
 
 Sec. 24. The aggregate amount of the re- 
 discounts and bills payable of any Corp. trans- 
 acting a banking business in this state shall at 
 no time exceed ?/£rds of its paid up capital ex- 
 cept for payment of its depositors nor shall 
 any Bk. other than Sav. Bks. at any time per- 
 
 2 
 
State Banks. 
 
 NEBRASKA. 
 
 mit its loans and investments, exclusive of 
 its reserve and banking house and fixtures, to 
 exceed in the aggregate io times the amount 
 of its capital and surplus. 
 
 A Sec. 29. Any corporation transacting a 
 ^ banking business under this act may purchase, 
 hold and convey real estate for the following 
 purposes only: such as is necessary for con- 
 venient transaction of its business, not ex- 
 ceeding in value Yzd of the paid up capital; 
 such as shall be conveyed to it for debts due 
 the Bk., and such as it shall purchase at sale 
 under judgments or decrees upon its securi- 
 ties, but the Bk. at such sale shall not bid a 
 larger amount than to satisfy its debts. No 
 real estate so acquired in satisfaction of debts 
 or at a sale upon its judgments or decrees 
 shall be held longer than 5 yrs. and within 
 30 days thereafter must be sold at private 
 or public sale, and at no time shall the total 
 amount of real estate held by any Bk. for 
 any purpose exceed 50% of the paid up capi- 
 tal of such Bk. Sav. Bks. shall not be sub- 
 ject to the provisions of this Sec. 
 
 Sec. 33. No corporation transacting a 
 banking business in this state shall directly 
 or indirectly, loan to any single corporation, 
 firm or individual, including in such loan 
 all loans made to the several members or 
 shareholders, of such firm or corporation, for 
 the use and benefit of such firm, corporation 
 or individual, more than 20% of the paid up 
 capital and surplus of such Bk., but the dis- 
 counting of bills of exchange, drawn in good 
 faith, against actually existing values, and 
 the discount of commercial paper actually 
 owned by the persons negotiating the same, 
 shall not be considered, as money borrowed 
 and in no case shall the total liabilities of the 
 several stockholders of any Bk. to such Bk. ex- 
 p ceed 50% of the paid-in capital and surplus of 
 such Bk. * * * * Provided, however, that the 
 provisions of this Sec. shall not apply to the 
 securities of the Sav. Bks. enumerated in Sec. 
 36 of this Act. 
 
 Secs. 23, 25, and 32 under Sav. Bks. also 
 apply to State Bks. 
 
 3 
 
■ 
 
 
 
 
 
 
 
 
 
 it 
 
 * 
 
 
 
Savings Banks. 
 
 NEW HAMPSHIRE. 
 
 Municipal Law in red. Street Railway Law in 
 Railroad Law in green. brown. 
 
 Other matter in black. 
 
 NEW HAMPSHIRE. 
 
 Corrected to and including 1911 Session. 
 SAVINGS BANKS. 
 
 Sec. 1. On and after the passage of this 
 act, Sav. Bks. and Sav. Depts. of banking and 
 Tr. Co’s, shall make investment of their funds 
 in the following classes of securities only: 
 
 1st. In notes secured by first mortgage of 
 real estate situated in N. H., but not over 70% 
 of the value of the property covered shall be 
 so loaned, and not exceeding 70% of the de- 
 posits shall be so invested. 
 
 2d. In notes secured by 1st Mtg. of real 
 estate situated outside of N. H. which is at 
 the time improved, occupied, and productive, 
 but not over 50% of the value of the property 
 covered shall be so loaned, and not exceed- 
 ing 25% of the deposits shall be so invested. 
 
 3d. In notes secured by collateral in which 
 the Bk. is at liberty to invest of a value 
 at least 10% in excess of the face of the note. 
 The amount of any one class of securities so 
 taken as collateral, added to that which the 
 Bk. may own at the time, shall not exceed the 
 total limit of that class of security, but not 
 exceeding 25% of the deposits shall be so 
 invested. 
 
 4th. In notes secured by collateral securi- 
 ties which are dealt in on the stock exchanges 
 of Boston and New York, the stock exchange 
 price of which shall at all times be at least 
 20% in excess of the face of the note, while 
 held by the bank, but not exceeding 25% of 
 the deposits shall be so invested. 
 
 5th. In notes of individuals or corporations 
 with two or more signers, or one or more 
 endorsers, but not exceeding 5% of the de- 
 posits shall be loaned any one person or cor- 
 poration in this class of security, and not ex- 
 ceeding 25% of the deposits shall be so 
 invested. 
 
NEW HAMPSHIRE. 
 
 Savings Banks. 
 
 6th. In the public funds of the U. S., or 
 those for which the faith of the U. S. is 
 pledged to provide for the payment of the in- 
 terest and principal. 
 
 7th. In the bonds and notes of this state, 
 or of any county, city, town, precinct, or dist. 
 of this state. 
 
 8th. In the authorized bonds or notes of 
 any state or territory of the U. S. ; and in 
 the bonds or notes of any city of the states 
 of Me., Vt., Mass., R. I., Conn., or N. Y., 
 whose net debt does not exceed 5% of the last 
 preceding valuation of the property therein 
 for taxation, or of any county, town, village, 
 precinct, or dist. in said states whose net debt 
 does not exceed 3% of such valuation. 
 
 9th. In the authorized bonds of any county, 
 city, towm, sch. dist., or other municipal cor- 
 poration of any other of the U. S. or terri- 
 tories whose net debt at the time of such 
 investment does not exceed 5% of the last 
 preceding valuation of the property therein 
 for taxation ; and in the authorized bonds of 
 any city of 100,000 inhabitants of any of said 
 states whose net debt does not exceed 7% of 
 the last preceding valuation of the property 
 therein for taxation. The term “ net debt ” 
 shall be construed to denote the debt of any 
 city, town, or other municipal corporation, 
 omitting the debt created for supplying the 
 inhabitants with water and deducting the 
 amount of any sinking fund available for the 
 payment of the municipal debt. Provided, 
 however, that such bonds shall not have been 
 issued in aid of R. Rs. or for special assess- 
 ment purposes. Provided, also, that the bonds 
 of an)' county, city, or town, of less than 
 10,000 inhabitants, or of any sch. dist. or other 
 municipal corporation of less than 2,000 in- 
 habitants in any state or territory other than 
 those named in paragraph 8 of sec. 1 of 
 this act shall not be authorized investments. 
 Provided, further, that such bonds are is- 
 sued by municipalities that are permitted by 
 law to levy taxes sufficient to pay the interest 
 and to provide sinking funds for their debt : 
 otherwise such bonds shall not be authorized 
 
 2 
 
Savings Banks. 
 
 NEW HAMPSHIRE. 
 
 investments. But not exceeding 50% of the de- 
 posits shall be so invested. 
 
 10th. In the bonds or notes of any R. R. 
 Co., except St. Rwys., incorporated under the 
 laws of this state, whose road is located wholly 
 or in part in the same, but not exceeding 25% 
 of the deposits shall be so invested. 
 
 nth. In the bonds of any R. R. Co., except 
 St. Rwys., incorporated under the authority 
 of any of the New Eng. states whose road 
 is located wholly or part in the same, and 
 which is in possession of and operating its 
 own road, and has earned and paid regular 
 dividends for the 2 years next preceding such 
 investment, or in the bonds guaranteed or 
 assumed by such R. R. Co., but not exceeding 
 25% of the deposits shall be so invested. 
 
 12th. In the bonds of any R. R. Co., except 
 St. Rwys., incorporated under the authority 
 of any of the U. S. or territories, which is in 
 possession of and operating its own road and 
 has earned and paid regular dividends of not 
 less than 4% per annum on its capital stock 
 for the 3 years next preceding such invest- 
 ment; Provided, such capital stock on which it 
 earns and pays dividends equals in amount 
 l /3 d of the entire bonded indebtedness of said 
 road ; or in the bonds guaranteed or assumed 
 by such R. R. ; but not exceeding 25% of the 
 deposits shall be so invested. 
 
 13th. In the 1st Mtg. bonds of corporations 
 of this state, except St. Rwys., located and 
 doing business therein, whose net debt at the 
 time of such investment does not exceed its 
 capital stock actually paid in and remaining 
 unimpaired, but not exceeding 10% of the de- 
 posits shall be so invested. 
 
 14th. In the bonds of St. Rwy. corporations 
 incorporated under the laws of this state and 
 located wholly or in part in the same, and in 
 the bonds of St. Rwy. corporations located 
 wholly or in part in cities of 30,000 inhabi- 
 tants or more in any of the other New Eng. 
 states, and in the bonds of St. Rwy. corpora- 
 tions located wholly or in part in cities of 
 50,000 inhabitants, or more, in any of the 
 U. S., provided, that the net debt of any of 
 
HAMPSHIRE. 
 
 Savings Banks. 
 
 such St. Rvvy. corporations mentioned in this 
 paragraph does not exceed the capital stock 
 actually paid in and remaining unimpaired at 
 the time of such investment, and that such 
 corporation has earned and paid regular divi- 
 dends of not less than 4% per annum on 
 its capital stock for 5 years next preceding 
 such investment ; but not exceeding 10% of the 
 deposits shall be so invested. 
 
 15th. In the bonds of Telephone, Telegraph, 
 or Express Co’s doing business in the U. S. 
 or territories, Provided, the total debt of such 
 company does not exceed its capital actually 
 paid in and remaining unimpaired, and Pro- 
 vided, such company has earned and paid reg- 
 ular dividends of at least 4% per annum upon 
 its capital stock or shares for 5 years previous 
 to such investment, but not exceeding 10% 
 of the deposits shall be so invested. 
 
 16th. In the capital stock of any Banking 
 or Tr. Co., incorporated under the laws of 
 this state and doing business therein, but the 
 amount of such stock held by any Sav. Bk. 
 as an investment and as collateral for loans 
 shall not exceed i-ioth of the total capital 
 stock of such Banking or Tr. Co., and not ex- 
 ceeding 10% of the deposits shall be so 
 invested. 
 
 17th. In the stock of any Nat. Bk. or Tr. 
 Co. located in the New Eng. states or the 
 state of N. Y., but not exceeding 10% of the 
 deposits of a Sav. Bk. shall be invested in 
 such stock; the amount of stock in any Nat. 
 Bk. or Tr. Co. in this state which may be 
 held by any Sav. Bk. as an investment or 
 as collateral security for loans shall not ex- 
 ceed 25% of the capital stock of said Nat. 
 Bk. or Tr. Co.; and the amount of stock 
 in any Nat. Bk. or Tr. Co. outside of this 
 state which may be held by any Sav. Bk. as 
 an investment or as collateral for loans shall 
 not exceed i-ioth of the capital stock of 
 said Nat. Bk. or Tr. Co. 
 
 iSth. In the stock or notes of any R. R. 
 corporation, exclusive of St. Rwys., located 
 in any part of the U. S. or territories that 
 has earned and paid regular dividends of 
 
 4 
 
Savings Banks. 
 
 NEW HAMPSHIRE. 
 
 not less than 4% per annum on its capital 
 stock for 5 years next preceding such invest- 
 ment; Provided, such capital stock on which 
 it pays dividends equals in amount J 4 d of 
 the entire bonded debt of said corporation; 
 I or in the stock of any other R. R. corpora- 
 tion whose R. R. and R. R. property are 
 leased to such R. R. upon an annual rental 
 of not less than 4% per annum upon the 
 capital stock of the leased R. R. : Provided, 
 said leased R. R. shall have earned dividends 
 of not less than 3% upon its capital stock for 
 a period of 3 years immediately preceding 
 said lease ; but not exceeding 25% of the 
 deposits shall be so invested. 
 
 19th. In the stock or notes of any Manu- 
 facturing Co. in the New Eng. states that 
 has paid regular dividends on its capital 
 stock for 5 years previous to such invest- 
 ment, and whose net debt does not exceed 
 the amount of its capital stock fully paid in ; 
 but not exceeding 10% of the deposits shall 
 be so invested. 
 
 20th. In the stock or notes of any Parlor 
 Car or Sleeping-car Company incorporated 
 and doing business in the U. S., and whose 
 cars are in actual use upon any R. R. whose 
 stock is a legal investment for N. H. Sav. 
 Bks. and that has earned and paid regular 
 dividends of not less than 4% per annum on 
 its capital stock for 5 years next preceding- 
 such investment; but not exceeding 5% of 
 the deposits shall be so invested. 
 
 21st. In land and buildings suitable and 
 actually used by it in part for its banking 
 room, the total cost of which shall not ex- 
 ceed 10% of its deposits. 
 
 Sec. 2. Any Sav. Blc. may hold and lease 
 real estate acquired by foreclosure of mort- 
 gages owned by the bank; but all taxes, fore- 
 closures expenses, and cost of maintenance 
 P shall be paid out of the income of the bank. 
 
 Sec. 3. Deposits of cash on call, or sub- 
 ject to check, shall be made in some author- 
 ized Banking or Tr. Co. incorporated under 
 the laws of this state or Mass., or in some 
 Nat. Bk. located in the New Eng. states, or 
 
 5 
 
NEW HAMPSHIRE. 
 
 Savings Banks. 
 
 in the cities of New York or Philadelphia. 
 
 Sec. 4. The special deposits or guaranty 
 fund of a Guaranty Sav. Bk. shall not be in- 
 cluded in the amount of deposits on which 
 the percentage of any investment is reckoned. 
 
 STATE BANKS AND TRUST COMPANIES. 
 
 Laws of 1895, Ch. 105, Sec. 10. No loan 
 shall be made to an officer or director of a 
 State Bk. or Tr. Co. except by the unani- 
 mous approval of the board of directors in 
 writing. 
 
 Pub. Stat., Ch. 165, Sec. 18. Tr. Co’s. Loan 
 and Tr. Co’s., Loan and Banking Co’s, and 
 other similar corporations receiving savings 
 deposits or transacting the business of a 
 Sav. Bk. shall conduct the business as a . 
 separate dept., and that dept, shall be amen- 
 able to the laws governing Sav. Bks. 
 
 Laws of 1895, Ch. 105, Sec. 12. No Tr. 
 Co. shall loan to any person, firm or its in- 
 dividual members an amount in excess of 
 10% of its deposits or capital stock, nor pur- 
 chase or hold, both by way of investment and 
 security for loans, the stock and bonds of 
 any corporation to an amount in excess of 
 said 10%. 
 
 Laws of 1895, Ch. 105, Sec. 9. The capi- 
 tal stock of a State Bk. or Tr. Co., and the 
 guaranty fund of a Guaranty Sav. Bk., shall 
 not be accepted by such institution as 
 
 collateral. 
 
Savings Banks. 
 
 NEW JERSEY 
 
 Municipal Law in red . Street Railway Law in 
 
 Railroad Law in green. brown . 
 
 Other matter in black. 
 
 NEW JERSEY 
 
 SAVINGS BANKS. 
 
 CHAPTER 195 
 
 Corrected to and Including 1913 Session 
 
 33. No Sav. Bk. shall invest the moneys 
 deposited with the same in any manner, 
 except as follows, to wit: 
 
 1. In stocks or bonds or interest-bearing 
 notes or obligations of the U. S., or those 
 for which the faith of the U. S. is dis- 
 tinctly pledged to provide for the payment 
 of the principal and interest thereof; 
 
 2. In the interest-bearing bonds of this 
 State; or in any bonds authorized by the 
 laws of this State to be issued by any com- 
 mission appointed by the Supreme Court of 
 this State, by virtue of any law of this 
 State ; 
 
 3. In the bonds of any State in the Union 
 that has not, within 10 yrs. previous to 
 making such investment by any such Bk., 
 defaulted in the payment of any part of 
 either principal or interest in any debt au- 
 thorized by any law of such State to be 
 contracted ; 
 
 4. In the bonds of any county, town- 
 ship, municipality or Sch. Dist. of this State 
 issued pursuant to the authority of any law 
 of. this State ; provided such county, town- 
 ship, municipality or Sch. Dist. shall not, 
 within the 5 yrs. next preceding, have de- 
 faulted in the payment of any part of either 
 principal or interest of any legal debt or 
 obligation thereof; and provided further, 
 the total debt of any borough or village 
 does not exceed 10% of its assessed valua- 
 tion, and such Sch. Dist. bonds are by law 
 charged upon all the property of the in- 
 habitants of such Dist. ; or in any interest- 
 bearing obligation issued by the county in 
 which such Bk. is situated or by any city, 
 town, township, borough or village in such 
 county ; 
 
 i 
 
NEW JERSEY. 
 
 Savings Banks. 
 
 5. In the bonds of any city or county of 
 any other State of the Union issued pur- 
 suant to the authority of any law of any 
 such State ; provided , no such city or county 
 has, within 10 yrs. previous to making such 
 investment, defaulted in the payment of any 
 part of either principal or interest of any 
 debt authorized by law of such State to be 
 contracted; and provided further , the total 
 debt of any such city or county is limited 
 by law to 10% of its assessed valuation. 
 
 6. In 1st Mtg. bonds issued, guaranteed 
 or assumed by any R. R. Co., which has paid 
 dividends of not less than 4% per annum 
 regularly on its entire capital stock for a 
 period of not less than 5 yrs. next pre- 
 vious to the purchase of such bonds, or 
 in any Con. Mtg. bonds issued, guaranteed 
 or assumed by any such Co., authorized to 
 be issued to retire the entire bonded debt of 
 such Co. ; or in the bonds of any Rwy. Ter- 
 minal or Dock Co. of this State, secured by 
 rst Mtg. on terminal or dock property 
 fronting on the Hudson river and having 
 an assessed value for the purpose of taxa- 
 tion in excess of the amount of the entire 
 issue of bonds, and used and occupied 
 as a dock or terminal by any R. R. Co. now 
 operating in this State; 
 
 7. In bonds secured by Mtgs. which shall 
 be a 1st lien on real estate situate in this 
 State, and worth at least double the amount 
 loaned thereon, but not to exceed 80% of 
 the whole deposits shall be so loaned or in- 
 vested ; but in case the loan is on unimproved 
 or unproductive real estate, the amount 
 loaned thereon shall not be more than 30% 
 of its actual value; and no investment in 
 any bond and Mtg. shall be made by any 
 Sav. Bk., except upon the report of a com- 
 mittee of at least 3 of the managers, and 2 
 members of which committee shall certify 
 in writing to the value of the premises 
 mortgaged, or to be mortgaged, according 
 to their best judgment; such report shall be 
 filed and preserved among the records of 
 the Bk. ; 
 
 2 
 
Savings Banks. 
 
 NEW JERSEY 
 
 8. In real estate strictly in accordance 
 with the following provisions: 
 
 (a) A plot whereon is erected, or may be 
 erected, a building or buildings requisite for 
 the convenient transaction of its business, 
 and from portions of which not required 
 for its own use, a revenue may be derived ; 
 the cost of such building or buildings and 
 lot shall in no case exceed 50% of the net 
 surplus of such Bk. except with the written 
 approval of the Com. of Bkg. and Ins. ; pro- 
 vided, the limitations as to the cost of such 
 lot and building contained in this subdivi- 
 sion shall not apply to or affect any such 
 investment heretofore made by a Sav. Bk. 
 organized under a special charter; 
 
 ( b ) Such as shall have been purchased 
 or acquired by it at sales upon the fore- 
 closure of Mtgs. owned by such Corp., or 
 upon judgments or decrees obtained or ren- 
 dered for debts due to it, or in settlements 
 effected to secure such debts or in satisfac- 
 tion of such Mtgs.; and ah such real estate 
 shall be sold by such Bk. within 5 yrs. after 
 the same shall have been so purchased, un- 
 less, upon application by such Corp. to the 
 Com. of Bkg. and Ins., he shall extend the 
 time withm which such sale shall be made ; 
 the provisions of this Sec. shall apply to all 
 funds of any Sav. Bk., including its reserve 
 fund, and all investments of money and 
 sales and transfers of securities may be 
 made in the manner provided and made 
 lawful in this act, notwithstanding any pro- 
 vision in any special charter contained limit- 
 ing the number of trustees or managers who 
 shall act in the investment of moneys and 
 the sale or transfer of stocks or securities. 
 
 34. No Sav. Bk. shall loan the money on 
 deposit with the same, or any part thereof, 
 upon notes, bills of exchange or drafts, ex- 
 cept upon the additional pledge of collateral 
 security, which shall be of the same nature 
 and character as those in which the money 
 deposited may be invested as directed in 
 the preceding Sec., or the capital stocks of 
 Nat. and State Bks. or the capital stock or 
 bonds of other Corps, of this State, which 
 
 3 
 
NEW JERSEY. 
 
 Savings Banks. 
 
 have not defaulted in the payment of inter- 
 est or dividends, upon the collateral loaned 
 upon, within 2 yrs. next preceding the time 
 of such loan, and then only to the extent of 
 80% of the market value of such collater- 
 als; provided , the total amount of such 
 loans shall not exceed 15% of the total de- 
 posits held by such Sav. Bk. 
 
 36. The managers of every Sav. Bk., as 
 soon as practicable, shall invest the moneys 
 deposited with them in the securities named 
 in the 33d Sec., except that for the purpose 
 of meeting current payments and expenses 
 in excess of the receipts there may be kept 
 an available fund of not exceeding 10% of 
 the whole amount of deposits with such 
 Bk. ; and the same may be kept on hand or 
 on deposit in any solvent Bk. in this State, 
 organized under the law of this State or 
 of the U. S. ; or the same may be deposited 
 on call, at interest, in such solvent Tr. Co. 
 incorporated under the laws of this State 
 or of the States of N. Y. or Penn., or in 
 such solvent Nat. Bk. located in the State 
 of N. Y. or in the State of Penn., as a 
 majority of the managers of such Bk. may 
 direct, by resolution adopted at a regular 
 or special meeting, and duly recorded on 
 their minutes; or such available fund, or 
 any part thereof, may be loaned upon 
 pledge oi the securities, or any of them, 
 named in Sec. 33 of this act, but not in ex- 
 cess of 80% of the market value of such 
 securities so pledged; and should any of 
 the securities so held in pledge depreciate 
 in value after making any loan thereon, 
 the managers shall require the immediate 
 payment of such loan, or a part thereof, 
 or additional security therefor, so that the 
 amount loaned shall at no time exceed 80% 
 of the cash market value of the securities 
 pledged for the same. 
 
 37. Any Sav. Bk. may deposit tempo- 
 rarily in Bks., as provided in the preceding 
 Sec., the excess of current daily receipts 
 over the payments until such time as the 
 same can be judiciously invested in the 
 securities named in Sec. 33; and whenever 
 
 4 
 
Savings Banks. 
 
 NEW 
 
 it shall appear to the Com. of Bkg. and Ins. 
 that the managers of any such Sav. Bk. 
 are violating the spirit and intent of the 
 provisions of this and the preceding Sec., 
 by keeping permanently uninvested all, or 
 any undue proportion, of the moneys re- 
 ceived by them, he shall report the facts to 
 the Attorney-General, who shall proceed 
 against such Bk., under the provision of 
 Sec. 52 of this act. 
 
 38. In all cases of loans upon real es- 
 tate, a sufficient bond, secured by a Mtg. on 
 said real estate, shall be required of the 
 borrower ; and all the expenses of searches, 
 examinations and certificates of title or ap- 
 praisals of value, and of drawing, perfect- 
 ing and recording papers shall be paid by 
 the borrower. 
 
 39. When any building or buildings are 
 included in the valuation of any real estate, 
 upon which loan shall be made, the same 
 shall be insured by the mortgagor in such 
 Co. or Cos. as the managers shall approve, 
 and the policy or policies of Ins. shall be 
 duly assigned, or the loss made payable, as 
 interest may appear, to such Bk. ; and such 
 Sav. Bk. may renew such policy or policies 
 of Ins. in the same, or in any other Co. or 
 Cos., as it may elect, from year to year, or 
 for a longer or shorter term, in case the 
 mortgagor shall neglect to do so, and charge 
 the amount paid to the mortgagor; and all 
 necessary charges and expenses for such 
 renewal or renewals shall be paid by such 
 mortgagor to such Sav. Bk., and shall be a 
 lien upon the property so mortgaged, re- 
 coverable with interest from time of pay- 
 ment, as part of the moneys secured to be 
 paid by such Mtg. 
 
 Ch. 132. Laws of 1913. Sec. 1. Any of- 
 ficer, director, employee, agent or attorney 
 or any Bk., Tr. Co., Bid. and Loan Asso. 
 or Sav. Bk. incorporated under the laws 
 of this. State who shall in anywise, directly 
 or indirectly, ask for, demand, exact, re- 
 quire, receive or accept, for his personal 
 use, benefit or advantage, any sum of money, 
 or any property or other thing, or any 
 
 5 
 
NEW JERSEY. 
 
 Trust Companies. 
 
 credit, or any promissory note, bill of ex- 
 change, check or other evidence of debt, 
 or any security, promise, contract, covenant, 
 agreement or obligation, express or implied, 
 for the payment, delivery, alienation or 
 transfer of any money, property or other 
 thing, or for the performance or render- 
 ing of any act or service, as a bribe, pres- 
 ent, reward, inducement, commission or 
 fee for loaning any funds of or giving any 
 credit on behalf of such Bk., Tr. Co., Bid. 
 and Loan Asso. or Sav. Bk., or for rec- 
 ommending, approving, voting for or con- 
 senting to the making of any loan or the 
 giving of any credit by such Bk., Tr. Co., 
 Bid. and Loan Asso. or Sav. Bk., shall be 
 guilty of a misdemeanor and punished by 
 a fine not exceeding $1,000, or by impris- 
 onment, with or without hard labor as the 
 court may direct, for any term not exceed- 
 ing 3 years, or both. 
 
 TRUST COMPANIES. 
 
 CHAPTER 174 
 
 Sec. 6. Powers (3) ... to loan money 
 on real and personal securities. 
 
 (4) To lease, hold, purchase and convey 
 any and all real property necessary for or 
 convenient in the transaction of its busi- 
 ness, or which the purposes of the Corp. 
 may require, or which it shall acquire in 
 satisfaction or partial satisfaction of debts 
 due the Corp. under sales, judgments or 
 Mtgs., or in settlement or partial settlement 
 of debts due the Corp. by any of its debtors. 
 
 (10) To purchase, invest in, and sell 
 stocks, promissory notes, bills of exchange, 
 bonds and Mtgs. and other securities; and 
 when moneys or securities for moneys are 
 borrowed or received on deposit, or for 
 investment, the bonds or obligations of the 
 Co. may be given therefor, but it shall have 
 no right to issue bills to circulate as money. 
 
 Sec. 7. No Corp. created under this act 
 shall have power to discount commercial 
 paper; no Tr. Co. shall have power to 
 make loans upon bills, notes or other evi- 
 6 
 
Trust Companies. 
 
 NEW JERSEY 
 
 dences of debt except to a county, city, 
 town, township, borough or municipality of 
 this State, unless the same shall be secured 
 by Mtg. upon lands or by other securities, 
 the actual market value of which other se- 
 I curities shall at all times exceed by at least 
 10% the amount loaned upon the same ; ex- 
 cept under and subject to the provisions of 
 this act, ... no money, property or secu- 
 rities received or held by any Tr. Co. in its 
 capacity of assignee, receiver, executor, ad- 
 ministrator, guardian or trustee shall be 
 mingled with investments of the capital 
 stock or other moneys or property belong- 
 ing to or deposited with such Corp. . . . 
 All other moneys and funds belonging to 
 or deposited with such Tr. Co. may be used 
 and invested in accordance with the pro- 
 visions of this act. 
 
 Sec. 15. No Tr. Co. shall make any loan 
 to its president, vice-president, treasurer, 
 secretary, cashier or to any of its directors 
 or any of its clerks, tellers, book-keepers, 
 agents, servants or other persons in its em- 
 ploy until the proposition to make such 
 loan, stating the amount, terms and secu- 
 rity, if any, offered therefor, shall have been 
 submitted in writing by the person desiring 
 the same to a meeting of the board of direc- 
 tors of such Co., or of the executive com- 
 mittee of such board, if any, and accepted 
 and approved by the vote of a majority of 
 those present constituting a quorum; . . . 
 
 Sec. 18. No Tr. Co. shall make any loan 
 on the security of the shares of its own cap- 
 ital stock, nor be the purchaser or holder 
 of any such shares unless such security or 
 purchase shall be necessary to prevent loss 
 upon a debt previously contracted in good 
 faith; and stock so purchased or acquired 
 * shall within 1 yr. from the time of its pur- 
 
 r chase be sold or disposed of at public or 
 
 private sale; provided, that nothing in this 
 Sec. contained shall apply to any loan made 
 before passage of this act. 
 
 Bonds issued by Commissions appointed 
 by Supreme Court. 
 
 See 2 last Secs, under Savings Banks. 
 
JERSEY. 
 
 Savings Banks. 
 
 STATE BANKS (BANKS OF DISCOUNT AND 
 DEPOSIT.) 
 
 CHAPTER 173 
 
 Sec. 6. In addition to the general powers 
 conferred by the “Act concerning corpora- 
 tions’* (Revision of 1896), so far as the 
 same are not inconsistent with this act, 
 every Bk. shall have power ... to carry on 
 the business of banking by discounting bills, 
 notes and other evidences of debt, ... by 
 buying promissory notes, Mtgs. and other 
 evidences of debt, and foreign and inland 
 bills of exchange, by loaning money on real 
 and personal security, . . . every Bk. may 
 purchase, hold and convey real estate as 
 follows : 
 
 1. Such as shall be necessary for the 
 convenient transaction of its business, in- 
 cluding with its banking office, other apart- 
 ments to rent as a source of income, which 
 investment shall not exceed 25% of its paid- 
 in capital stock and permanent surplus; 
 provided , that this provision shall not apply 
 to any investment made before the date 
 when this act takes effect; 
 
 2. Such as is mortgaged to it in good 
 faith by way of security for loans made by 
 or money due to such Bk. ; 
 
 3. Such as is conveyed to it in satisfac- 
 tion of debts previously contracted in the 
 course of its dealings; 
 
 4. Such as it acquires by sale on execu- 
 tion or judgment or decree of any court in 
 its favor; the Bk. shall not purchase, hold 
 or convey real estate in any other case or 
 for any other purpose whatever ... no 
 real estate acquired in the cases contem- 
 plated in the 2d, 3d and 4th sub-secs, above 
 shall be held for a longer time than 5 yrs., , 
 unless such period shall be extended by the V 
 Com. of Bkg. and Ins.; provided , that this 
 provision shall not apply to real estate ac- 
 quired before the date when this act takes 
 effect. 
 
 Sec. 12. No Bk. shall make any loan to 
 its officers, etc. (see Sec. 15 under Trust 
 
 8 
 
State Banks. 
 
 NEW JERSEY. 
 
 Companies, the substance of which applies 
 to State banks). 
 
 Sec. 15. Bk. may not loan on or pur- 
 chase its shares (see Sec. 18 under Tr. Cos., 
 the substance of which applies to State 
 banks). 
 
 Sec. 18. The total liabilities to any Bk. 
 of any person or of any Co., Corp. or firm 
 for money borrowed, including in the lia- 
 bilities of a Co. or firm the liabilities of the 
 several members thereof, shall at no time 
 exceed 10% of the aggregate amount of the 
 capital stock of such Bk. actually paid in, 
 and of the permanent surplus fund of such 
 Bk. ; provided, that the total liability of any 
 officer or director to such Bk. shall at no 
 time exceed 10% of the aggregate amount of 
 the capital stock of such Bk. actually paid in, 
 and of the permanent surplus fund of such 
 Bk. ; provided further, however, that the 
 provisions of this Sec. shall not be con- 
 strued to apply to loans made by any Bk. 
 to any county, city, town, township, bor- 
 ough or municipality of this State; the fol- 
 lowing shall not be considered as money 
 borrowed within the meaning of this Sec., 
 namely : 
 
 1. The discount of business or commer- 
 cial paper made by other parties and actu- 
 ally owned by the person negotiating the 
 same; 
 
 2. The discount of bills of exchange 
 drawn in good faith against actually exist- 
 ing values; 
 
 3. The discount of paper based on col- 
 lateral security other than promissory notes, 
 the actual market value of which shall at 
 all times exceed by at least 10% the amount 
 loaned upon the same. 
 
 Bonds Issued by Commissions Appointed 
 by Supreme Court. 
 
 See 2 last Secs, under Savings Banks. 
 
 9 
 
i 
 
Savings Banks. 
 
 NEW YORK. 
 
 Municipal Law in red. Street Railway Law in 
 Railroad Law in green. brown. 
 
 Other matter in black. 
 
 NEW YORK. 
 CHAPTER io. 
 
 An act constituting Chap. 2 of the consoli- 
 dated laws. 
 
 As amended 1912-13 Session. 
 
 SAVINGS BANKS. 
 
 Sec. 142. * * * No trustee or officer of any 
 such Corp. shall directly or indirectly, for him- 
 self or as an agent or partner of others, bor- 
 row any of its funds or deposits, or in any 
 manner use the same except to make such 
 current and necessary payments as are author- 
 ized by the board of trustees; nor shall 
 any trustee or officer of any such Corp. be- 
 come an indorser or surety, or become in 
 any manner an obligor, for moneys loaned by 
 or borrowed of such Corp. 
 
 Sec. 146. The trustees of any Sav. Bk. 
 may invest the moneys deposited therein and 
 the income derived therefrom only as fol- 
 lows : 
 
 1. In the stocks or bonds or interest-bear- 
 ing notes or obligations of the U. S., or 
 those for which the faith of the U. S. is 
 pledged to provide for the payment of the 
 interest and principal, including the bonds 
 of the District of Columbia. 
 
 2. In the stocks or bonds or interest-bear- 
 ing obligations of this state, issued pursuant 
 to the authority of any law of the state. 
 
 3. In the stocks or bonds or interest-bear- 
 ing obligations of any state of the U. S. 
 which has not within 10 yrs. previous to 
 making such investment by such Corp. de- 
 faulted in the payment of any part of either 
 principal or interest of any debt authorized 
 by the legislature of any such state to be 
 contracted ; and in the bonds or interest-bear- 
 ing obligations of any state of the U. S., 
 issued in pursuance of the authority of the 
 legislature of such state, which have, prior 
 to May 29th, 1895, keen issued for the fund- 
 ing or settlement of any previous obligation 
 
 1 
 
NEW YORK. 
 
 Savings Banks. 
 
 of such state theretofore in default, and on 
 which said funding or settlement obligation 
 there has been no default in the payment 
 of either principal or interest since the is- 
 suance of such funding or settlement obli- 
 gation, and provided the interest on such 
 funding or settlement obligation has been 
 paid regularly for a period of not less than 
 io yrs. next preceding such investment; and 
 in the stocks, bonds or interest-bearing ob- 
 ligations of any state of the U. S., issued in 
 pursuance of the authority of the constitution 
 or the legislature of such state, to refund at or 
 before maturity or within 90 days after ma- 
 turity any of the bonds or obligations of such 
 state which at their maturity or at the date 
 of their payment, if paid before maturity, 
 were legal investments for Sav. Bks. under 
 the provisions of this Subdiv., on which re- 
 funding obligation there has been no default 
 in the payment of either principal or interest 
 since the issuance thereof. 
 
 4. In the stocks or bonds of any city, 
 county, town or village, sch. dist. bonds and 
 union free sch. dist. bonds issued for 
 school purposes, or in the interest-bearing 
 obligations of any city, county, town or 
 village of this state, issued pursuant to the 
 authority of any law of the state for the 
 payment of which the faith and credit of 
 the municipality issuing them are pledged. 
 
 5. In the stocks or bonds of any incor- 
 porated city situated in one of the states of 
 the U. S. which was admitted to state- 
 hood prior to Jan. 1st, 1896, and which, since 
 Jan. 1st, 1861, has not repudiated or de- 
 faulted in the payment of any part of the 
 principal or interest of any debt author- 
 ized by the legislature of any such state to 
 be contracted, provided said city has a popu- 
 lation, as shown by the federal census next 
 preceding said investment, of not less than 
 45,000 inhabitants, and was incorporated as 
 a city at least 25 yrs. prior to the making of 
 said investment, and has not, since Jan. 1st, 
 1878, defaulted for more than 90 days in the 
 payment of any part either of principal or 
 interest of any bond, note or other evidence 
 
 Mi of indebtedness, or effected any compromise 
 
 ■I i 2 
 
Savings Banks. 
 
 NEW YORK. 
 
 of any kind with the holders thereof. But 
 if, after such default on the part of any 
 such state or city, the debt or security, in 
 the payment of the principal or interest of 
 which such default occurred, has been fully 
 ^ paid, refunded or compromised by the is- 
 sue of new securities, then the date of the 
 first failure to pay principal or interest, when 
 due, upon such debt or security, shall be 
 taken to be the date of such default, within 
 the provisions of this subdiv., and subsequent 
 failures to pay instalments of principal or 
 interest upon such debt or security, prior to 
 the refunding or final payment of the same, 
 shall not be held to continue said default or 
 to fix the time thereof, within the meaning 
 of this subdiv., at a date later than the date 
 of said first failure in payment. If at any 
 time the debt of any such city, together with 
 the debt of any Dist. or other municipal 
 Corp. or subdiv. except a county, which is 
 wholly or in part included within the bounds 
 or limits of said city, less its water debt and 
 sinking funds shall exceed 7% of the valua- 
 tion of said city for purposes of taxation, 
 its bonds and stocks shall thereafter, and 
 until such, debt shall be reduced to 7%. of 
 the valuation for the purposes of taxation, 
 cease to be an authorized investment for the 
 moneys of Sav. Bks., but the Supt. of Bks. 
 may, in his discretion, require any Sav. Bk. 
 to sell such bonds or stock of said city as 
 may have been purchased prior to said in- 
 crease of debt. 
 
 6. In bonds and Mtgs. on unincumbered 
 real property situated in this state, to the 
 extent of 60% of the value thereof. Not 
 more . than 65% of the whole amount of 
 deposits shall be so loaned or invested. If 
 the loan is on unimproved and unproduc- 
 tive real property, the amount loaned thereon 
 p shall not be more than 40% of its actual 
 value. No investment in any bonds and Mtgs. 
 shall be made by any Sav. Bk. except upon 
 the report of a committee of its trustees 
 charged with the duty of investigating the 
 same, who shall certify to the value of the 
 premises mortgaged or to be mortgaged, 
 according to their best judgment, * * * Also 
 in the following securities : 
 
 3 
 
NEW YORK. 
 
 Savings Banks. 
 
 (a) The 1st Mtg. bonds of any R. R. Corp. 
 of this state, the principal part of whose 
 R. R. is located within this state, or of any 
 R. R. Corp. of this or any other state or 
 states connecting with and controlled and 
 operated as a part of the system of any 
 such R, R. Corp. of this state, and of which 
 connecting R. R. at least a majority of its 
 capital stock is owned by such a R. R. Corp. 
 of this state, or in the Mtg. bonds of any 
 such R. R. Corp. of an issue to retire all 
 prior Mtg. debt of such R. R. Cos. respectively ; 
 Provided that at no time within 5 yrs. next 
 preceding the date of any such investment, 
 such R. R. Corp. of this state or such con- 
 necting R. R. Corp. respectively shall have 
 failed regularly and punctually to pay the 
 matured principal and interest of all its 
 Mtg. debt, and in addition thereto regularly 
 and punctually to have paid in dividends to 
 its stockholders during each of said 5 yrs. 
 an amount at least equal to 4% upon all its 
 outstanding capital stock; and Provided, 
 further, that at the date of every such divi- 
 dend the outstanding capital stock of such 
 R. R. Corp., or such connecting R. R. Co. 
 respectively, shall have been equal to at least 
 1 -3rd of the total Mtg. debt of such R. R. 
 Corps, respectively, including all bonds is- 
 sued or to be issued under any Mtg. secur- 
 ing any bonds in which such investment shall 
 be made. 
 
 (b) The Mtg. bonds of the following R. R. 
 Corps: The Chicago & Northwestern R. R. 
 Co., Chicago, Burlington & Quincy R. R. 
 Co., Michigan Central R. R. Co., Illinois Cen- 
 tral R. R. Co., Pennsylvania R. R. Co., Del- 
 aware & Hudson Co., Delaware, Lackawanna 
 & Western R, R. Co., New York, New 
 Haven & Hartford R. R. Co., Boston & 
 Maine R. R. Co., Maine Central R. R. Co., 
 the Chicago & Alton R. R. Co., Morris & 
 Essex R. R. Co., Central R. R. of N. J., 
 United N. J. R. R. & Canal Co., also in the 
 Mtg. bonds of R. R. Cos. whose lines are 
 leased or operated or controlled by any R. R. 
 Co. specified in this paragraph if said bonds 
 be guaranteed both as to principal and in- 
 
 4 
 
Savings Banks. 
 
 NEW YORK. 
 
 tidrest by the R. R. Co. to which . said lines 
 are leased or by which they are operated or 
 controlled. Provided that at the time of 
 making investments authorized by this para- 
 graph the said R. R. Corps, issuing such bonds 
 shall have earned and paid regular dividends 
 of not less than 4% per annum in cash on 
 all their issues of capital stock for the 10 
 yrs. next preceding such investment, and 
 provided the capital stock of any said R. R t 
 Corps, shall equal or exceed in amount i-3rd 
 of the par value of all its bonded debt ; and 
 further provided that all bonds authorized 
 for investment by this paragraph shall be se- 
 cured by a Mtg. which is a 1st Mtg. on either 
 the whole or some part of the R. R. and 
 R. R. property of the Co. issuing such bonds, 
 or that such bonds shall be Mtg. bonds of 
 an issue to retire all prior Mtg. debts of 
 such R. R. Co. ; Provided, further, that the 
 Mtg. which secures the bonds authorized by 
 this paragraph is dated, executed and re- 
 corded prior to Jan. 1st, 1905. 
 
 (c) The Mtg. bonds of the Chicago, Mil- 
 waukee & St. Paul Rwy. Co., and the Chi- 
 cago, Rock Island & Pacific Rwy. Co., so long 
 as they shall continue to earn and pay at 
 least 4% dividends per annum on their out- 
 standing capital stock, and Provided their 
 capital stock shall equal or exceed in amount 
 1 -3rd of the par value of all their bonded 
 debt, and further provided that all bonds of 
 either of said Cos. hereby authorized for in- 
 vestment shall be secured by a Mtg. which is 
 a- 1st Mtg. on either the whole dr some part 
 of the R. R. or R. R, property actually in 
 the possession of and operated by said Co.* 
 or that such bonds shall be Mtg. bonds of 
 an issue to retire all prior debts of said 
 R. R. Co.; Provided, furtpier, that the Mtg. 
 which secures the bonds authorized by this 
 paragraph is dated, executed and recorded 
 prior to Jan. 1st, 1905. 
 
 (d) The 1st Mtg. bonds of the Fonda, 
 Johnstown & Gloversville R. R. Co., or in 
 the^ Mtg. bonds of said R, R. Co. of an. issue 
 
 5 
 
NEW YORK, 
 
 Savings Banks. 
 
 to retire all prior Mtg. debts of said R. R. 
 Co., and provided the capital stock of said 
 R. R. Co. shall equal or exceed in amount 
 i*3d of the par value of all its bonded debt 
 and Provided also that such R. R. be of 
 standard gauge of 4 ft. 8 y 2 in., and in the 
 Mtg. bonds of the Buffalo Creek R. R. Co. 
 of an issue to retire all prior Mtg. debts of 
 said R. R. Co., Provided that the bonds 
 authorized by this paragraph are secured by 
 a Mtg. dated, executed and recorded prior 
 to Jan. 1st, 1905. 
 
 (e) The Mtg. bonds of any R. R. Corp. 
 incorporated under the laws of any of the 
 U. S., which actually owns in fee not less 
 than 500 miles of standard gauge Rwy. ex- 
 clusive of sidings, within the U. S., Pro- 
 vided that at no time within 5 yrs. next pre- 
 ceding the date of any such investment such 
 R. R. Corp. shall have failed regularly and 
 punctually to pay the matured principal and in- 
 terest of all its Mtg. debt and in addition thereto 
 regularly and punctually to have paid in divi- 
 dends to its stockholders during each of 
 said 5 yrs. an amount at least equal to 4% 
 upon all its outstanding capital stock ; and 
 Provided further that during said 5 yrs. the 
 gross earnings in each yr. from the opera- 
 tions of said Co., including therein the gross 
 earnings of all R. Rs. leased and operated or 
 controlled and operated by said Co., and also 
 including in said earnings the amount re- 
 ceived directly or indirectly by said Co. from 
 the sale of coal from mines owned or con- 
 trolled by it, shall not have been less in 
 amount than 5 times the amount necessary 
 to pay the interest payable during that yr. 
 upon its entire outstanding debt, and the 
 rentals for said yr. of all leased lines, and 
 further provided that all bonds authorized 
 for investment by this paragraph shall be 
 secured by a Mtg. which is at the time of 
 making said investment or .- was at the date 
 of the execution of said Mtg. (1) a 1st Mtg. 
 upon not less than 75% of the Rwy. owned 
 in fee by the Co. issuing said bonds exclu- 
 
 0 
 
Savings Banks. 
 
 NEW YORK. 
 
 I 
 
 
 sive of sidings at the date of said Mtg. or 
 (2) a Refd. Mtg. issued to retire all prior 
 lien Mtg. debts of said Co. outstanding at the 
 time of said investment and covering at 
 least 75% of the Rwy. owned in fee by said 
 Co. at the date of said Mtg. But no one 
 of the bonds so secured shall be a legal in- 
 vestment in case the Mtg. securing the same 
 shall authorize a total issue of bonds which 
 together with all outstanding prior debts of 
 said Co., after deducting therefrom in case 
 of a Refd. Mtg., the bonds reserved under the 
 provisions of said Mtg. to retire prior 
 debts at maturity, shall exceed 3 times the 
 outstanding capital stock of said Co. at the 
 time of making said investment. And no 
 Mtg. is to be regarded as a Refd. Mtg., under 
 the provisions of this paragraph, unless the 
 bonds which it secures mature at a later date 
 than any bond which it is given to refund, 
 nor unless it covers a mileage at least 25% 
 greater than is covered by any one of the 
 prior Mtgs. so to be refunded. 
 
 (f) Any Rwy. Mtg. bonds which would 
 be a legal investment under the provisions 
 of paragraph (e) of this subdiv., except for 
 the fact that the R. R. Corp. issuing said 
 bonds actually owns in fee less than 500 miles 
 of road, Provided that during 5 yrs. next 
 preceding the date of any such investment 
 the gross earnings in. each yr. from the opera- 
 tions of said Corp., including the gross earn- 
 ings of all lines leased and operated or con- 
 trolled and operated by it, shall not have 
 been less than $10,000,000. 
 
 (g) The Mtg. bonds of a R, R. Corp. 
 described in the foregoing paragraph (e) or 
 (f) or the Mtg. bonds of a R. R. owned 
 by such Corp., assumed or guaranteed by it 
 by indorsement on said bonds, provided said 
 bonds are prior to and are to be refunded 
 by a- general Mtg. of said Corp. the bonds 
 secured by which are made a legal invest- 
 ment under the provisions of said paragraph 
 (e) or (f) ; and Provided, further, that 
 said general Mtg. covers all the real property 
 
 7 
 
NEW YORK. 
 
 Savings Banks. 
 
 
 upon which the Mtg. securing said underly- 
 ing bonds is a lien. 
 
 (h) Any Rwy. Mtg. bonds which would be 
 a legal investment under the provisions of 
 paragraph (e) or (g) of this subdiv., except 
 for the fact that the R. R. Corp. issuing said 
 bonds actually owns in fee less than 500 
 miles of road, Provided the payment of prin- 
 cipal and interest of said bonds is guaranteed 
 by indorsement thereon by, or Provided said 
 bonds have been assumed by, a Corp. whose 
 ist Mtg. is, or Refd. Mtg. bonds are, a legal 
 investment under the provisions of paragraph 
 
 (e) or (f) of this subdiv. But no one of 
 the bonds so guaranteed or assumed shall 
 be a legal investment in case the Mtg. secur- 
 ing the same shall authorize a total issue 
 of bonds which, together with all the out- 
 standing prior debts of the Corp. making such 
 guaranty or so assuming said bonds, includ- 
 ing therein the authorized amount of all 
 previously guaranteed or assumed bond issues, 
 shall exceed 3 times the capital stock of said 
 Corp., at the time of making said investment. 
 
 (i) The ist Mtg. bonds of a R. R. the en- 
 
 tire capital stock of which, except shares nec- 
 essary to qualify directors, is owned by, and 
 which is operated by a R. R. whose last is- 
 sued Refd. bonds are a legal investment under 
 the provisions of paragraph (a), (e) or 
 
 (f) of this subdiv., Provided the payment of 
 principal and interest of said bonds is guar- 
 anteed by indorsement thereon by the Co. so 
 owning and operating said road, and further 
 provided the Mtg. securing said bonds does 
 not authorize an issue of more than $20,000 
 in bonds for each mile of road covered 
 thereby. But no one of the bonds so guaran- 
 teed shall be a legal investment in case the 
 Mtg. securing the same shall authorize a total 
 issue of. bonds which together with all the 
 outstanding prior debts of the Co. making 
 said guaranty, including therein the author- 
 ized amount of all previously guaranteed bond 
 issues, shall exceed 3 times the capital stock 
 
 8 
 
Savings Banks. 
 
 NEW YORK. 
 
 of said Co., at the time of making said 
 investment. 
 
 Bonds which have been or shall become legal 
 investments for Sav. Bks. under any of the 
 provisions of this Sec. shall not be rendered 
 illegal as investments, though the property 
 upon which they are secured has been or shall 
 be conveyed to another Corp., and though the 
 R. R. Corp. which issued or assumed said 
 bond has been or shall be consolidated with 
 another R. R. Corp., if the consolidated or 
 purchasing Corp. shall assume the payment of 
 said bonds and shall continue to pay regu- 
 larly interest or dividend or both upon the 
 securities issued against, in exchange for or 
 to acquire the stock of the Co. consolidated 
 or the property purchased, or upon securities 
 subsequently issued in exchange or substitu- 
 tion therefor, to an amount at least equal to 
 4% per annum upon the capital stock out- 
 standing at the time of such consolidation or 
 purchase of said Corp. which has issued or 
 assumed said bonds. 
 
 Not more than 25% of the assets of any 
 Sav. Bk. shall be loaned or invested in R. R; 
 bonds, and not more than 10% of the assets 
 of any Sav. Bk. shall be invested in the bonds 
 of any one R. R. Corp. described in para- 
 graph (a) of this subdiv., and not more than 
 5% of such assets in the bonds of any other 
 R. R. Corp. In determining the amount of 
 the assets of any Sav. Bk. under the provi- 
 sions of this subdiv. its securities shall be 
 estimated in the manner prescribed for deter- 
 mining the per centum of surplus by Sec. 
 154 of this Chap. Street R. R. Corps, shall 
 not be considered R. R. Corps, within the 
 meaning of this subdiv. 
 
 Sec. 147. Every such Corp. may purchase, 
 hold or convey real property only as follows: 
 
 1. A plot whereon is erected or may be 
 erected a building or buildings requisite for 
 the convenient transaction of its business, and 
 from portions of which not required for its 
 own use a revenue may be derived. The cost 
 of such building or buildings and lot shall in 
 
 9 
 
NEW YORK. 
 
 Savings Banks. 
 
 no case exceed 25% of the net surplus of 
 the Corp., except by written permission of 
 the Supt. of Bks. The estimate of the cost of 
 said building and lot, and the plans of the 
 building to be erected, shall first be submitted 
 to the Supt. of Bks. for his approval, before 
 the purchase of the lot is made or before the 
 erection of the building is commenced. 
 
 2. Such as shall have been purchased by it 
 at sales upon the foreclosure of Mtgs. owned 
 by it, or on judgments or decrees obtained or 
 rendered for debts due to it, or in settlements 
 effected to secure such debts. All such real 
 property shall be sold by such Corp. within 
 5 yrs. after the title to the same shall be 
 vested in it, unless, upon application by the 
 board of trustees, the Supt. shall extend the 
 time within which such sale shall be made. 
 
 Every such Corp. may, with the approval 
 in writing and under the seal of the Supt. 
 of Bks., change its location within the limits 
 of any city or town wherein it may be es- 
 tablished. In effecting such change of loca- 
 tion such Corp. owning a banking-house and 
 lot, may purchase such additional plot under 
 the provisions of subdiv. 1 of this Sec. as 
 I the Corp. may require ; and such banking- 
 house and lot previously owned and oc- 
 cupied shall be sold as provided in this sub- 
 div. concerning real property acquired in 
 satisfaction of debts. 
 
 Sec. 148. The trustees of every such Corp. 
 shall as soon as practicable invest the moneys 
 deposited with them in the securities author- 
 ized by this Art.; but for the purpose of meet- 
 ing current payments and expenses in excess 
 of the receipts, there may be kept an avail- 
 able fund not exceeding 10% of the whole 
 amount of deposits with such Corp., on hand 
 or deposit in any Bk. in this state organized 
 ; under any law of this state or of the U. S., 
 or with any Tr. Co. incorporated by any law 
 of the state; but the sum so deposited in any 
 one Bk. or Tr. Co. shall not exceed 25% of 
 the paid-up capital and surplus of any such 
 Bk. or Co.; or such available fund, or any 
 
Savings Banks. 
 
 NEW YORK. 
 
 part thereof, may be loaned upon pledge of 
 the securities or any of them named in 
 subdivs. i, 2, 3, 4 and 5 of Sec. 146, or upon 
 the 1st Mtg. bonds, or any of them, of the 
 railroads mentioned and described in subdiv. 
 6 of said Sec., but not in excess of 90% of 
 the cash market value of such securities so 
 pledged. Should any of the securities so held 
 in pledge depreciate in value, after mak- 
 ing any loan thereon, the trustees shall re- 
 quire the immediate payment of such loan or 
 of a part thereof, or additional security there- 
 for, so that the amount loaned shall at no 
 time exceed 90% of the market value of the 
 securities pledged for the same. 
 
 Sec. 149. Every such Corp. may also de- 
 posit temporarily in the Bks. or Tr. Cos. 
 specified in Sec. 148 the excess of current 
 daily receipts over the payments, until such 
 time as the same can be judiciously invested 
 in the securities required by this Art. * * * 
 
 Sec. 150. The trustees of any Sav. Bk. 
 shall not loan the moneys deposited with them 
 or^any part thereof, upon notes, bills of ex- 
 ch^fige, drafts or any other personal securi- 
 ties whatever. In all cases of loans upon real 
 property, a sufficient bond secured by a Mtg. 
 thereon shall be required of the borrower, 
 and all expenses of searches, examinations 
 and certificates of title, and of drawing, per- 
 fecting and recording papers, shall be paid by 
 the borrower. 
 
 Sec. 151. Whenever buildings are included 
 in the valuation of any real property upon 
 which a loan shall be made by any such 
 Corp., they shall be insured by the mortgagor 
 in such Co. or Cos. as the directors shall di- 
 rect, and the policy of Ins. shall be duly as- 
 signed, or the loss, made payable as its in- 
 terest may appear, to such Corp. ; and any 
 such Corp. may renew such policy of Ins. in 
 the same or any other Co. or Cos. as they 
 may elect, from year to year, or for a longer 
 or shorter term, in case the mortgagor shall 
 neglect to do so, and may charge the amount 
 paid to the mortgagor. All the necessary 
 
 11 
 
NEW YORK. 
 
 Trust Companies. 
 
 charges and expenses paid by such Corp. for 
 such renewal or renewals shall be paid by the 
 mortgagor to the Corp., and shall be a lien 
 upon the property mortgaged, recoverable with 
 interest from the time of payment as part of 
 the moneys secured to be paid by the Mtg. 
 
 Sec. 152. No Sav. Bks. shall directly or 
 indirectly deal or trade in real property in any 
 other case or for any other purpose than is 
 authorized by this Art., or deal or trade in 
 any goods, wares, merchandise or commodi- 
 ties, whatever, except as authorized by this 
 article, and except such personal property as 
 may be necessary in the transaction of its 
 business ; nor shall any Sav. Bk. or any officer 
 thereof in his regular attendance upon the 
 business of the Bk., in any manner buy or 
 sell exchange, or gold or silver, or collect or 
 protest promissory notes or time bills of ex- 
 change; but Sav. Bks. may sell gold or silver 
 received in payment of interest or principal 
 of obligations owned by them, or from deposi- 
 tors in the regular course of business. * * * 
 
 See also Sec. 44 under Trust Companies. 
 
 TRUST COMPANIES. 
 
 Sec. 14. Every (Tr. Co.) * * * shall, be- 
 fore engaging in such business, transfer and 
 assign to the Supt. registered public stocks or 
 bonds of the U. S. or of this state, or of any 
 city, county, town, village or free sch. dist. 
 in this state, authorized by the legislature to 
 be issued, to the amount in value, and to be 
 at all times so maintained by the Corp., of 
 10% on its paid-up capital stock, but not less 
 in any case than $100,000 in cities the popu- 
 lation of which exceeds 500,000 inhabitants, 
 and not less than $50,000 in cities containing 
 more than 100,000 inhabitants and less than 
 500,000 inhabitants, and not less than $30,000 
 in cities containing more than 25,000 inhabi- 
 tants and less than 100,000 inhabitants, and 
 not less than $20,000 in cities or towns of less 
 than 25,000 inhabitants, the number of in- 
 
 12 
 
Trust Companies. 
 
 NEW YORK 
 
 habitants in each city or town to be ascertained 
 by the last federal census or state enumera- 
 tion. Such stocks must be registered in the 
 name of the Supt. officially as held in trust 
 under and pursuant to this Chap., * * * 
 Should any Corp., at any time, have deposited 
 with the Supt. more than the amount hereby 
 required, the excess may be refunded. With 
 the approval of the Supt., such a deposit may 
 be made by the Corp., either wholly or in 
 part, in bonds or Mtgs. satisfactory to the 
 Supt., on improved, unincumbered produc- 
 tive real property in this state worth at least 
 75% more than the amount loaned thereon. 
 * * * 
 
 Sec. 15. The securities deposited by any 
 Corp. pursuant to the provisions of this 
 Chap, with the Supt. of Bks. in trust for any 
 purpose, may be exchanged from time to time 
 for other securities receivable as provided in 
 this Chap. ; and so long as the Corp. so de- 
 positing shall continue solvent and comply 
 with the laws of the state, it may be permitted 
 by the Supt. to collect the interest or divi- 
 dends on such deposits, and from time to 
 time to withdraw any of such securities on 
 depositing with the Supt. other like securi- 
 ties, the par and market value of which shall 
 be equal to the par and market value of 
 those withdrawn. 
 
 When any such deposit consists of bonds 
 and Mtgs., the president or authorized agent 
 of the Corp. depositing the same shall annex 
 to every such Mtg. his affidavit that the Mtg. 
 was made and taken in good faith for money 
 loaned by the Corp. which he represents, to 
 the amount therein named, and that no part 
 thereof has been since paid or returned ; or 
 if any part has been paid, the amount unpaid, 
 and that he has reason to believe and does 
 believe that the premises thereby mortgaged 
 are worth at least 75% more than the amount 
 of the Mtg. thereon ; and the Supt. shall pre- 
 scribe such regulations for ascertaining the 
 title and value of the real property mortgaged 
 as he may deem necessary. 
 
 13 
 
NEW YORK. 
 
 Trust Companies. 
 
 Sec. 27. 1. No Bk. or Tr. Co. shall make 
 
 any loans to any person, Co., Corp. or 
 firm, to an amount exceeding the i-ioth part 
 of its capital stock, actually paid in, and 
 surplus ; Provided, however, that a Bk. or 
 Tr. Co. having its principal place of busi- 
 ness in a borough in any city of the state 
 which borough had according to the last 
 preceding state or U. S. census a population 
 of 1,800,000 or over may loan to any person, 
 Co., Corp. or firm, a sum not exceeding 25% 
 of its capital stock actually paid in and sur- 
 plus and a Bk. or Tr. Co. having its princi- 
 pal place of business elsewhere in the state 
 40% of its capital stock actually paid in and 
 surplus upon security worth at least 15% 
 more than the amount of the loans ; or it 
 may loan 10% of such capital and surplus as 
 first above provided, and a Bk. or Tr. Co. 
 having its principal place of business in a 
 borough in any city in the state which borough 
 had according to the last preceding state 
 or U. S. census a population of 1,800,000 or 
 over may loan a further sum not exceeding 
 15% of such capital and surplus and a Bk. 
 ^ or Tr. Co. having its principal place of busi- 
 ness elsewhere in the state may loan 30% of 
 such capital and surplus upon security worth 
 at least 15% more than the amount of such 
 loan so secured; and Provided further, that 
 a Bk. or Tr. Co. may buy from, or dis- 
 count for, any person, Co., Corp. or firm, or 
 loan upon, bills of exchange drawn in good 
 faith against actually existing values, or com- 
 mercial or business paper actually owned by 
 the person negotiating the same, a sum not 
 exceeding 25% of its capital stock actually 
 paid in and surplus if its principal place of 
 business is located in a borough in any city 
 in the state which borough had, according 
 to the last preceding state or U. S. census 
 a population of 1,800,000 or over and not ex- 
 ceeding 40% of its capital stock actually paid 
 in and surplus if its principal place of busi- 
 ness is located elsewhere in the state; Pro- 
 
Trust Companies. 
 
 NEW YORK. 
 
 vided further, however, that with the ex- 
 ception of the liability of the U. S., of this 
 state, or of any county or incorporated city 
 of this state the total liability of any person, 
 Co. Corp. or firm to a Bk. or Tr. Co. shall 
 not exceed 25% of the actually paid in capi- 
 tal stock and surplus of any such Bk. or Tr. 
 Co. having its principal place of business in 
 a borough in any city in the state which 
 borough had according to the last preceding 
 state or U. S. census a population of 1,800,- 
 000 or over and shall not exceed 40% of the 
 actually paid in capital stock and surplus of 
 any such Bk. or Tr. Co. having its princi- 
 pal place of business elsewhere in the state. 
 
 2. No loan shall be made by any Bk. or Tr. 
 Co. upon the securities of one or more Corps, 
 the payment of which is undertaken in whole 
 or in part severally, but not jointly, by two 
 or more individuals, firms or Corps.: 
 
 (a) If the borrowers or underwriters be 
 obligated absolutely or contingently to pur- 
 chase the securities or any of them collateral 
 to such loan, unless the borrowers or under- 
 writers shall have paid on account of the 
 purchase of such securities an amount in cash 
 or its equivalent equal to at least 25% of the 
 several amounts for which they remain ob- 
 ligated in completing the purchase of such 
 securities ; 
 
 (b) if the Bk. or Tr. Co. making such loan 
 be liable directly, indirectly or contingently, 
 for the repayment of such loan or any part 
 thereof ; 
 
 (c) if its term including any renewal 
 thereof, by agreement, express or implied, 
 exceed the period of one year. 
 
 (d) or to an amount, under any circum- 
 stances, in excess of 25% of the capital and 
 surplus of the Bk. or Tr. Co. making such 
 loan. 
 
 3. No Corp. to which this Chap, is appli- 
 cable except a Sav. and Loan Asso. shall 
 hereafter make a loan, directly or indirectly, 
 upon the security of real estate upon which 
 there is a prior Mtg., lien or incumbrance, 
 
 15 
 
NEW YORK. 
 
 Trust Companies. 
 
 if the amount unpaid upon such prior Mtg., 
 lien or incumbrance, or the aggregate amount 
 unpaid upon all prior Mtgs., liens and in- 
 cumbrances exceeds 10% of the capital and 
 surplus of such Corp., or if the amount so 
 secured, including all prior Mtgs., liens and 
 incumbrances shall exceed 2-3rds of the ap- 
 praised value of such real estate as found by 
 a committee of the directors or trustees of 
 such Corp. ; but this provision shall not pre- 
 vent the acceptance of any such real estate 
 securities to secure the payment of a debt 
 previously contracted in good faith. Every 
 Mtg. and every assignment of a Mtg. taken 
 or held by such Corp. shall immediately be 
 recorded in the office of the clerk of the 
 county in which the real estate described in 
 the Mtg. is located. * * * no loan shall be 
 made, directly or indirectly, upon real estate 
 security by a Bk. having its principal place 
 of business in a borough in any city in the 
 state which borough had according to the 
 last preceding state or U. S. census a popu- 
 lation of 1,800,000 or over, if its total direct 
 and indirect loans upon real estate security 
 exceed, or by the making of such loan will 
 exceed, 15% in the aggregate of the total 
 assets of such Bk., or by a Bk. having its 
 principal place of business in a village of 
 not over 1500 inhabitants, according to such 
 census, in which there is no Sav. Bk., if its 
 total loans upon real estate security exceed, 
 or by the making of such loan will exceed, 
 40% in the aggregate of its total assets, or 
 by a Bk. having its principal place of busi- 
 ness elsewhere in the state if its total direct 
 and indirect loans upon real estate security 
 exceed, or by the making of such loan will 
 exceed 25% in the aggregate of its total assets. 
 
 4. No Corp. to which this Chap, is applic- 
 able, except a mortgage loan or investment 
 corporation, nor any of its directors, officers, 
 agents or servants shall, directly or indirectly, 
 purchase or be interested in the purchase of 
 any promissory note or other evidence of 
 debt issued by it for a less sum than shall 
 
Trust Companies. 
 
 NEW YORK. 
 
 appear on the face thereof to be due. * * * 
 
 6. No president, director, cashier, clerk or 
 agent of any Corp. to which this Chap, is 
 applicable, and no person in any way inter- 
 ested or concerned in the management of its 
 affairs, shall as individuals discount, or, di- 
 rectly or indirectly, make any loan upon any 
 note or other evidence of debt, which he shall 
 know to have been offered for discount to 
 such Corp., and to have been refused. * * * 
 
 7. No officer, director, clerk or agent of 
 any Bk. shall borrow, directly or indirectly, 
 from the Bk. with which he is officially con- 
 nected any sum of money without the con- 
 sent and approval of a majority of the board 
 of directors thereof. * * * 
 
 8. No Corp. to which this Chap, is applicable 
 except a Sav. and Loan Asso., shall make any 
 loan or discount on the security of the shares 
 of its own capital stock nor be the purchaser 
 or holder of any such shares unless such se- 
 curity or purchase shall be necessary to pre- 
 vent loss upon a debt previously contracted 
 in good faith ; and stock so purchased or 
 acquired shall, within 6 Mos. from the time 
 of its purchase, be sold or disposed of at pub- 
 lic or private sale; nor shall any such Corp., 
 either directly or indirectly, knowingly loan 
 any money or property to any person for the 
 purpose of enabling him to pay for or hold 
 shares of its stock either subscribed for or 
 purchased by him unless such loan is made 
 upon security worth at least 15% more than 
 the amount of such loan. Any Corp. violat- 
 ing either of the provisions of this Subdiv. 
 shall forfeit to the people of the state twice 
 the amount of such loan. 
 
 9. No Corp. to which this Chap, is applicable 
 shall hereafter make a loan, secured by the 
 stock of another moneyed Corp., if by the 
 making of such loan the total stock of such 
 other moneyed Corp. held by it as collateral 
 will exceed in the aggregate 10% of the 
 capital stock of such other moneyed Corp. 
 
 Sec. 44. The depositaries designated by the 
 comptroller to receive funds or moneys paid 
 into court shall pay a fair rate of interest, 
 
 17 
 
NEW YORK. 
 
 Trust Companies. 
 
 
 and before receiving any such deposit shall 
 give to the people of the state an undertaking, 
 in such form as the attorney-general shall pre- 
 scribe, such undertaking to be approved by the 
 county judge of the county in which such sav- 
 ings bank, bank, trust company, bank associa- 
 tion or banker shall be located, and by the 
 comptroller of the state, and filed in the of- 
 fice of the comptroller, and such undertak- 
 ing shall be secured by deposit of bonds as 
 provided by Sec. 8 of the state finance law. 
 
 Sec. 186. Powers of corporation. 
 
 2. To receive deposits of trust moneys, 
 securities and other personal property from 
 any person or Corp., and to loan money 
 on real or personal securities. 
 
 3. To lease, hold, purchase and convey any 
 and all real property necessary in the trans- 
 action of its business, or which the purposes 
 of the Corp. may require, or which it shall ac- 
 quire in satisfaction or partial satisfaction of 
 debts due the Corp. under sales, judgments 
 or Mtgs., or in settlement or partial settle- 
 ment of debts due the Corp. by any of its 
 debtors. 
 
 9. To purchase, invest in and sell stocks, bills 
 of exchange, bonds and Mtgs. and other se- 
 curities ; and when moneys or securities for 
 moneys are borrowed or received on deposit, 
 or for investment, the bonds or obligations 
 of the Co. may be given therefor, but it shall 
 have no right to issue bills to circulate as 
 money. 
 
 11. * * * No i oan exceeding in amount 
 i-ioth of its capital stock, shall be made 
 by any such Corp., directly or indirectly, to 
 any director or officer thereof and no loan 
 to such director or officer shall be made with- 
 out the consent of a majority of the di- 
 rectors. * * * 
 
 Sec. 193. The capital of every such Corp. 
 shall be invested in bonds and Mtgs. on un- 
 incumbered real property in this state not ex- 
 ceeding 60% of the value thereof, or in the 
 
 stocks or bonds of this state, or of the U. S., 
 or of any county or incorporated city of 
 this state duly authorized by law to be is- 
 
Trust Companies. 
 
 NEW YORK. 
 
 sued. Stocks or bonds constituting a part 
 of the lawful investment of capital of any 
 such Corp. shall not be valued upon its books 
 or entered in its reports to the Supt. of Bks. 
 at a higher price or value than their invest- 
 ment value as determined by amortization, 
 after providing in a manner approved by the 
 Supt. of Bks. for the gradual extinction of 
 premiums or discounts on all such securities 
 so as to bring them to par at maturity. The 
 moneys received by any such Corp. in trust 
 may be invested in its discretion in the se- 
 curities of the kind in which its capital is re- 
 quired to be invested, or in the stocks or 
 bonds of any state of the U. S., or in such 
 real or personal securities as it may deem 
 proper. No such Corp. shall hold stock in 
 any private Corp. to an amount in excess of 
 10% of the capital, surplus and undivided 
 profits of the Corp. holding such stock ; nor 
 shall any such Corp. hold or own stock of 
 another moneyed Corp. the par value of 
 which is in excess of 10% of the total amount 
 of the stock of such other moneyed Corp. 
 issued and outstanding, Provided, however, 
 that this limitation shall not apply to the own- 
 ership of capital stock of a Safe Dep. Co. 
 the vaults of which are connected with or 
 adjacent to an office of such Tr. Co. 
 
 Sec. 198. Every Tr. Co. having its princi- 
 pal place of business or a branch office for 
 the receipt and payment of deposits in a bor- 
 ough in any city in the state which borough 
 had according to the last preceding state or 
 U. S. census a population of 1,800,000 or over 
 shall at all times have on hand a reserve 
 fund equal to at least 15% of the aggregate 
 of its deposits, exclusive of moneys held by 
 it in trust, which are not made payable under 
 the conditions of the trust within 30 days and 
 also exclusive of time deposits not payable 
 within 30 days represented by certificates 
 showing the amount of the deposit, the date 
 of issue, and the date when due and also ex- 
 clusive of deposits which are secured by out- 
 standing unmatured bonds or other obliga- 
 tions issued by the state of N. Y., or secured 
 
 19 
 
NEW YORK. 
 
 Trust Companies. 
 
 by outstanding unmatured bonds, corporate 
 stock, revenue bonds, assessment bonds or 
 other obligations issued by the city of N. Y., 
 and exclusive also of an amount equal to 
 the market value, but not exceeding the par , 
 value, of any such bonds or other obligations ( 
 of the state of N. Y. or of the city of N. Y. 
 owned and held by such Tr. Co. or held by 
 a public department, a public officer or of- 
 ficers of this state, or of any other state, or 
 of the U. S., in trust for such Tr. Co. . The 
 whole of such reserve fund must consist of 
 either lawful money of the U. S., gold certi- 
 ficates, silver certificates, or notes or bills is- 
 sued by any lawfully organized national bank- 
 ing association. Every Tr. ,Co. having its 
 principal place of business in a borough in 
 any city in the state which borough had ac- 
 cording to the last preceding state or U. S. 
 census a population of less than 1,800,000 
 which does not maintain a branch office in a 
 borough having a population of over 1,800,- 
 000 inhabitants according to the last preced- 
 ing state or U. S. census, shall at all times 
 have on hand a reserve fund equal to at least 
 15% of the aggregate of its deposits, exclu- 
 sive of moneys held by it in trust, which are 
 not made payable under the conditions of 
 the trust within 30 days and also exclusive 
 of time deposits not payable within 30 days 
 represented by certificates showing the amount 
 of the deposit, the date of issue and the date 
 when due and also exclusive of deposits which 
 are secured by outstanding unmatured bonds 
 or other obligations issued by the state of 
 N. Y., or secured by outstanding unmatured 
 bonds, corporate stock, revenue bonds, assess- 
 ment bonds or other obligations issued by 
 the city of N. Y., and exclusive also of an 
 amount equal to the market value, but not 
 exceeding the par value, of any such bonds A 
 or other obligations of the state of N. Y. or 
 of the city of N. Y. owned and held by such 
 Tr. Co. or held by a public department, a 
 public officer or officers of this state, or of 
 any other state, or of the U. S., in trust for 
 such Tr. Co. The whole of such reserve fund 
 
 20 
 
Trust Companies. 
 
 NEW YORK. 
 
 may, and at least 2-3rds thereof must, consist 
 of either lawful money of the U. S., gold cer- 
 tificates, silver certificates, or notes or bills 
 issued by any lawfully organized national 
 banking association, and the balance thereof 
 over and above the part consisting of law- 
 ful money of the U. S., gold certificates, sil- 
 ver certificates, notes or bills issued by any 
 lawfully organized national banking associa- 
 tion must consist of moneys on deposit sub- 
 ject to call in any Bk. or Tr. Co. in this state 
 having a capital of at least $200,000 or a capi- 
 tal and surplus of at least $300,000, and ap- 
 proved by the Supt. of Bks. Every Tr. Co. 
 having its principal place of business else- 
 where in this state shall at all times have on 
 hand a reserve fund equal to at least 10% of 
 its aggregate deposits, exclusive of moneys 
 held by it in trust which are not made pay- 
 able under the conditions of the trust within 
 30 days and also exclusive of time deposits 
 not payable within 30 days represented by cer- 
 tificates showing the amount of deposit, the 
 date of issue and the date when due and also 
 exclusive of deposits which are secured by 
 outstanding unmatured bonds or other obliga- 
 tions issued by the state of N. Y., or secured 
 by outstanding unmatured bonds, corporate 
 stock, revenue bonds, assessment bonds or 
 other obligations issued by the city of N. Y., 
 and exclusive also of an amount equal to the 
 market value, but not exceeding the par value, 
 of any such bonds or other obligations of 
 the state of N. Y. or of the city of N. Y. 
 owned and held by such Tr. Co. or held by 
 a public department, a public officer or officers 
 of this state, or of any other state, or of 
 the U. S., in trust for such Tr. Co. The 
 whole of such last mentioned reserve fund may, 
 and at least 50% thereof must, consist either 
 of lawful money of the U. S., gold certifi- 
 cates, silver certificates, or notes or bills, is- 
 sued by any lawfully organized national bank- 
 ing association ; and the balance thereof 
 over and above the part consisting of law- 
 ful money of the U. S., gold certificates, sil- 
 ver certificates, notes and bills, issued by any 
 
 21 
 
NEW YOEK. State Banks of Discount and Deposit. 
 
 lawfully organized national banking associa- 
 tion, must consist of money on deposit sub- 
 ject to call in any Bk. or Tr. Co. in this 
 state having a capital of at least $200,000 
 or a capital and surplus of at least $300,000 
 and approved by the Supt. of Bks. The 
 amounts to be kept on hand, as above pro- 
 vided, shall be called the lawful money re- 
 serve. If the lawful money reserve of any 
 Tr. Co. shall be less than the amount required 
 by this Sec. such Tr. Co. shall not increase 
 its liability by making any new loans or dis- 
 counts otherwise than by discounting bills of 
 exchange, payable on sight * * * until the 
 full amount of its lawful money reserve has 
 been restored. * * * 
 
 (See, also, Sec. 27, under State Bks.) 
 
 STATE BANKS OF DISCOUNT AND DEPOSIT. 
 
 f 
 
 Sec. 27. (7) No officer, director, clerk or 
 
 agent of any Corp. to which this Chap, is ap- 
 plicable shall borrow, directly or indirectly, 
 from the Corp. with which he is connected 
 any sum of money without the consent and 
 approval of a majority of the board of direc- 
 tors thereof. If an officer, director, clerk 
 or agent of any Corp. to which this Chap, 
 is applicable shall own or control a majority 
 of the stock of any other Corp. a loan to that 
 Corp. shall be considered for the purpose of 
 this subdiv. as a loan to such officer, director, 
 clerk or agent. * * * 
 
 Sec. 66. In addition to the powers con- 
 ferred by the general and stock Corp. laws 
 every Bk. shall have power : 
 
 1. To exercise by its boards of directors, 
 or duly authorized officers or agents, subject 
 to law, all such incidental powers as shall be 
 necessary to carry on the business of bank- 
 ing; by discounting and negotiating promis- 
 sory notes, drafts, bills of exchange and 
 other evidences of debt; * * * by loaning 
 money on personal security; * * * 
 
 2. To take and become the owner of any 
 stocks or bonds or interest-bearing obliga- 
 
 00 
 
State Banks of Discount and Deposit. NEW YORK. 
 
 tions of the U. S., or of the state of N. Y., 
 or of any city, county, town or village of 
 this state, the interest on which is not in 
 arrears. 
 
 3. To purchase, hold and convey real prop- 
 erty for the following purposes : 
 
 a. Such as shall be necessary for its im- 
 mediate accommodation in the convenient 
 transaction of its business. 
 
 b. Such as shall be mortgaged to it in good 
 faith, by way of security for loans made by, 
 or moneys due to, such Corp. 
 
 c. Such as shall be conveyed to it in satis- 
 faction of debts previously contracted in the 
 course of its dealings. 
 
 d. Such as it shall purchase at sales under 
 judgments, decrees or Mtgs. held by it. 
 
 No such Corp. shall purchase, hold or con- 
 vey real property in any other case or for 
 any other purpose, and all conveyances of real 
 property shall be made to it directly and by 
 name. 
 
 Sec. 67. Every Bk. * * * shall at all times 
 have on hand in lawful money of the U. S., 
 gold certificates, silver certificates, or notes 
 or bills issued by any lawfully organized na- 
 tional banking association an amount equal 
 to at least 25% of the aggregate amount of 
 its deposits, exclusive of time deposits not 
 payable within 30 days, represented by certifi- 
 cates showing the amount of the deposit, the 
 date of issue and the date when due, and, 
 also, exclusive of deposits which are secured 
 by outstanding unmatured bonds or other 
 obligations issued by the state of N. Y., or 
 secured by outstanding unmatured bonds, 
 corporate stock, revenue bonds, assessment 
 bonds or other obligations issued by the city 
 of N. Y., and exclusive also of an amount 
 equal to the market value, but not exceed- 
 ing the par value, of any such bonds or other 
 obligations of the state of N. Y. or of the 
 city of N. Y. owned and held by such Bk. 
 * * * or held by a public department, a pub- 
 lic officer or officers of this state, or of any 
 other state, or of the U. S., in trust for such 
 Bk. * * *, if its principal place of business 
 
 23 
 
NEW YORK. State Banks of Discount and Deposit. 
 
 is located in any borough in any city of the 
 state which borough according to the last 
 preceding state or U. S. census had a popu- 
 lation of 1,800,000 or over; and an amount 
 equal to at least 20% of the aggregate amount 
 of its deposits, exclusive of time deposits not 
 payable within 30 days, represented by cer- 
 tificates showing the amount of the deposit, 
 the date of issue and the date when due, and, 
 also exclusive of deposits which are secured 
 by outstanding unmatured bonds or other 
 obligations issued by the state of N. Y., or 
 secured by outstanding unmatured bonds, 
 corporate stock, revenue bonds, assessment 
 bonds or other obligations issued by the city 
 of N. Y., and exclusive also of an amount 
 equal to the market value, but not exceeding 
 the par value, of any such bonds or other ob- 
 ligation of the state of N. Y. or of the city 
 of N. Y. owned and held by such Bk. * * *, 
 or held by a public department, a public officer 
 or officers of this state, or of any other 
 state, or of the U. S., in trust for such Bk. 
 * * *, if its principal place of business is 
 located in any borough, which borough accord- 
 ing to the last preceding state or U. S. census 
 had a population of 1,000,000 or over, and 
 less than 1,800,000; and an amount equal to 
 at least 15% of the aggregate amount of its 
 deposits, exclusive of time deposits not pay- 
 able within 30 days, represented by certificates 
 showing the amount of the deposit, the date 
 of issue and the date when due, and, also, 
 exclusive of deposits which are secured by 
 outstanding unmatured bonds or other obli- 
 gations issued by the state of N. Y., or se- 
 cured by outstanding unmatured bonds, cor- 
 porate stock, revenue bonds, assessment bonds 
 or other obligations issued by the city of 
 N. Y., and exclusive also of an amount equal 
 to the market value, but not exceeding the 
 par value, of any such bonds or other obli- 
 gations of the state of N. Y. or of the city 
 of N. Y. owned and held by such Bk. * * *, 
 or held by a public department, a public of- 
 ficer or officers of this state, or of any other 
 state, or of the U. S., in trust for such Bk. 
 
 24 
 
State Banks of Discount and Deposit. NEW YORK. 
 
 * * * if its principal place of business is lo- 
 cated elsewhere in the state. The amount 
 thus to be kept on hand shall be called its 
 lawful money reserve. 2-5ths of such law- 
 ful money reserve of any Bk. * * * located 
 in any borough in any city in the state which 
 borough according to the last preceding state 
 or U. S. census had a population of 1,800,000 
 or over, of such lawful money reserve of 
 any Bk. * * * located in any borough in any 
 city of the state which borough according to 
 the last preceding state or U. S. census had 
 a population of less than 1,800,000 and which 
 Bk. * * * does not maintain a branch office 
 in any borough having a population accord- 
 ing to the last preceding state or U. S. cen- 
 sus of 1,800,000 or over, and 3~5ths of the 
 lawful money reserve of any Bk. * * * located 
 elsewhere in the state may consist of moneys 
 on deposit subject to call with any Bk. or 
 Tr. Co. in this state having a capital of at 
 least $200,000, or a capital of at least $150,000 
 and a surplus of at least $150,000, and ap- 
 proved by the Supt. of Bks. as a depositary 
 of lawful money Reserve. If the lawful 
 money reserve of any Bk. * * * shall be less 
 than the amount required by this section, 
 such Bk. * * * shall not increase its liabilities 
 by making any new loans or discount other- 
 wise than by discounting bills of exchange 
 payable on sight, * * * until the full amount 
 of its lawful money reserve has been re- 
 stored. * * * 
 
 Sec. 74. Every Bk. * * * may take, re- 
 ceive, reserve and charge on every loan and 
 discount made, or upon any note, bill of ex- 
 change or other evidence of debt, interest at 
 the rate of 6%* per annum ; and such in- 
 terest may be taken in advance, reckoning 
 the days for which the note, bill or evidence 
 of debt has to run. 
 
 * * * The purchase, discount or sale of a 
 bona fide bill of exchange, note or other evi- 
 dence of debt payable at another place than 
 the place of such purchase, discount or sale 
 
 * No higher rate is permitted. 
 
 25 
 
NEW YORK. State Banks of Discount and Deposit. 
 
 at not more than the current rate of exchange 
 for sight draft, or a reasonable charge for 
 the collection of the same, in addition to the 
 interest, shall not be considered as taking or 
 receiving a greater rate of interest than 6% 
 per annum. 
 
 Sec. 75. Upon advances of money repay- 
 able on demand to an amount not less than 
 $5,000 made upon warehouse receipts, bills 
 of lading, certificates of stock, certificates of 
 deposit, bills of exchange, bonds or other 
 negotiable instruments, pledged as collateral 
 security for such repayment, any Bk. * * * 
 may receive or contract to receive and col- 
 lect as compensation for making such ad- 
 vances any sum to be agreed upon in writ- 
 ing by the parties to such transaction. 
 
 Sec. 76. Every Bk. * * * heretofore or 
 hereafter authorized to do business, not hav- 
 ing given notice of intention to close the 
 business of banking, shall, before commenc- 
 ing or continuing such business, have and 
 keep on deposit in the banking dept, in ad- 
 dition to the deposit required to secure cir- 
 culating notes, stocks of this state or of the 
 U. S. bearing interest, to the amount of 
 $1,000, which shall be held by the Supt. of 
 t Bks. as a pledge of good faith, and guaranty 
 J| of compliance with the banking laws of the 
 state on the part of such Bk. * * * The pro- 
 ceeds of such stock or the interest thereon, 
 or so much thereof as may be necessary, 
 may be applied by the Supt. to the payment 
 of any penalty incurred by, or the assess- 
 ment imposed upon, the Bk. * * * for whom 
 such deposit is held. * * * 
 
 Whenever any Bk. * * * is required by law 
 to make a deposit of securities with the Supt. 
 of Bks. in trust for such Bk. * * *, such 
 deposit shall consist of interest-bearing -stock 
 of the state of N. Y. or of the U. S. 
 
 See, also, Secs. 27, 44, and 67 under Tr. 
 Cos. 
 
 > 
 
 ! , 
 
 26 
 
Savings Banks. 
 
 OHIO. 
 
 Municipal Law in red. Street Railway Law in 
 
 Railroad Law in green. brown. 
 
 Other matter in black. 
 
 OHIO 
 
 Corrected to and including 1911, Sess. of Leg. 
 
 SAVINGS BANKS. 
 
 Sec. 9729. * * * No loan shall be made, 
 directly or indirectly, to an officer, or member 
 of the executive committee of such a Corp., 
 unless duly authorized by a majority of the 
 members of the board of directors. Such 
 authorization shall be recorded on the records 
 of their proceedings, and all loans when so 
 authorized and made to officers, or members 
 of the executive committee shall be made and 
 secured in the same manner as loans to other 
 persons. 
 
 Sec. 9744. Nothing in this Chap, shall affect 
 the legality of investments heretofore made, 
 or of transactions heretofore had, but the Supt. 
 of Bks. may require the change of investments 
 for those named herein, as it can be done by 
 the sale or redemption of securities so in- 
 vested in, in such manner as to prevent loss or 
 injury to the Bk. No renewal or extension 
 of such a loan or investment shall be made 
 by such a Corp. unless it be approved by the 
 Supt. of Bks. 
 
 Sec. 9762. A Sav. Bk. may purchase, lease, 
 hold and convey real estate for the purposes 
 and in the manner hereinbefore provided as 
 to Commercial Bks., and subject to like re- 
 strictions and limitations. 
 
 Sec. 9764. Sav. Bks. shall keep as a reserve 
 the same percentage of their deposits as Com- 
 mercial Bks., subject to the same restrictions 
 as to such reserve, except that of the re- 
 serve required to oe kept in the vaults of the 
 Bk. may be invested in the securities named 
 in paragraphs b and c of Sec. 9758, and the 
 bonds of any city or county within this state. 
 When the reserve of a Sav. Bk. required to be 
 kept in its vaults exceeds $500,000, the amount 
 in excess thereof may be invested in bonds 
 or other interest bearing obligations of the U. S. 
 
 l 
 
OHIO. 
 
 Savings Banks. 
 
 Sec. 9765. A Sav. Bk. may invest the resi- 
 due of its funds in, or loan money on, discount, 
 buy, sell or assign promissory notes, drafts, 
 bills of exchange and other evidences of debt 
 and also invest its capital, surplus and deposits 
 in, and buy and sell the following: 
 
 a. The securities mentioned in Sec. 9758,* 
 subject to the limitations and restrictions there- 
 in contained, except that Sav. Bks. may loan 
 not more than 75% of the amount of the 
 paid-in capital, surplus and deposits on notes 
 secured by Mtg. on real estate. But all loans 
 made upon personal security shall be upon 
 notes with two or more signers or one or 
 more indorsers, payable and to be paid at a 
 time not exceeding 6 mos. from the date 
 thereof. In the aggregate, not exceeding 30% 
 of the capital, surplus and deposits of a Sav. 
 Bk. shall be so invested. 
 
 b. Stocks, which have paid dividends for 
 5 consecutive yrs. next prior to the investment, 
 bonds, and promissory notes of Corps., f when 
 this is authorized by an affirmative vote of a 
 majority of the board of directors or by the 
 executive committee of such Sav. Bk. No 
 purchase or investment shall be made in the 
 stock of any other Corp. organized or doing 
 business under the provisions of this Chap. 
 The Supt. of Bks may order any such securi- 
 ties which he deems undesirable to be sold 
 within 6 mos. 
 
 c. Promissory notes of individuals, firms or 
 Corps., when secured by a sufficient pledge of 
 collateral approved by the directors, subject 
 to the provisions of Secs. 9754 and 9755. 
 
 Sec. 9766. When the reserve of any Sav. 
 Bk. falls below the amount required, it shall 
 be governed by the provisions of Sec. 9760. 
 
 Sec. 9771. The total liabilities, including 
 overdrafts, of any person, Co., Corp. or firm 
 
 * Part of Sec. 9758 refers to municipal and part to 
 railroad securities. 
 
 t The Department of Banks and Banking holds that 
 inasmuch as the banking law does not mention “ rail- 
 road ” corporations specifically that they are included 
 in the general use of the word “ corporations.” 
 
 Ol 
 
Savings Banks. 
 
 OHIO 
 
 to a Sav. Bk., either as principal debtor or as 
 security or indorser for others, for money 
 borrowed, at no time shall exceed 20% of the 
 paid-up capital and surplus of such Corp. 
 But the discount of bills of exchange drawn 
 against actually existing values, and the dis- 
 count of commercial or business paper actually 
 owned by the person, Co., Corp. or firm nego- 
 tiating it shall not be considered as money 
 borrowed. 
 
 Sec. 9790. Not more than 20% of the cap- 
 ital and surplus of a Corp. doing business 
 under this Chap, shall be invested in any one 
 stock security or loan, unless it be in bonds 
 or other interest bearing obligations enumer- 
 ated in paragraphs b, c and d of Sec. 9758, or 
 in a building and vaults. 
 
 Sec. 9822. Safe Dep. and Tr. Cos. (also 
 Sav. Societies & Sav. & Loan Associations) 
 organized or doing business under the laws 
 of this state, in addition to the powers here- 
 tofore conferred upon such Corps., in addition 
 to the investments hereinbefore authorized, 
 may loan and invest the funds, moneys and 
 property owned or received by such Cos. 
 respectively, and to the respective amounts 
 to which they are limited in other loans and 
 investments, in legally authorized 1st Mtg. 
 bonds or Steamship Cos. Such Mtg. shall be 
 upon steel steamships or steamships for the 
 carriage of freight, or package, freight and 
 passengers combined upon the great lakes and 
 connecting waters, of at least 5,000 tons carry- 
 ing capacity each. Such bonds shall be issued 
 at the time of the completion and enrollment 
 of the steamship or steamships, or within 
 5 yrs thereafter. The Mtg. by express terms 
 shall state that at least 10% of the total issue 
 of such bonds shall be retired, annually, begin- 
 ning within 2 yrs. from the date thereof, and 
 the Mtg. liability against such property shall 
 not exceed of its actual cost. 
 
 Sec. 9823. The terms of such Mtg. shall 
 specifically state that the mortgagor shall not 
 suffer any steamship so mortgaged to be in- 
 debted at any time in an amount in the aggre- 
 
 3 
 
OHIO. 
 
 Trust Companies. 
 
 ! 
 
 I 
 
 gate exceeding 5% of its actual cost, and that 
 the failure of the mortgagor forthwith to pro- 
 cure the release of mechanics’, laborers’, 
 admiralty, statutory or other liens, claims or 
 charges against such steamship, shall consti- 
 tute a default in the provisions of the Mtg. 
 
 Sec. 9824. The trustees of such Mtg. shall 
 be required to protect such lien by attending 
 to the recording thereof, and causing the prop- 
 erty covered to be insured against all risks 
 on vessel property ordinarily covered by such 
 Ins. including marine risks and disasters, gen- 
 eral and particular average, collision, liability, 
 protection and indemnity Ins., and Ins. against 
 liability for injuries to persons in Ins. Cos., 
 and under forms of policies approved by the 
 trustees for an amount equal to the full Ins. 
 value of such steamship or steamships. Such 
 Ins. shall be made with loss payable to the 
 trustee and the policies deposited with them. 
 
 See also Sec. 9761 under Commercial Bks. 
 
 TRUST COMPANIES. 
 
 Sec. 9774. A Tr. Co. may purchase, lease, 
 hold and convey real estate, exclusive of trust 
 property, for the purpose and in the manner 
 provided by this Chap, as to Commercial Bks., 
 and subject to like restrictions and limitations. 
 
 Sec. 9778. No such Corp. either foreign or 
 domestic shall accept trusts which may be 
 vested in, transferred or committed to it by 
 an individual, or court, until its paid-in capital 
 is at least $100,000, and until such Corp. has 
 deposited with the treasurer of state in cash 
 $50,000 if its capital is $200,000 or less, and 
 $100,000 if its capital is more than $200,000, 
 except that, the full amount of such deposit 
 by such Corp. may be in bonds of the U. S., 
 or of this state, or any municipality or county 
 therein, or in any other state, or in the 1st / 
 
 Mtg. bonds of any R. R. Corp. that for 5 yrs. v 
 
 last past paid dividends of at least 3% on its 
 common stock. 
 
 Sec. 9779. The treasurer of state shall hold 
 such fund or securities deposited with him as 
 security for the faithful performance of the 
 
Trust Companies. 
 
 trusts assumed by such Corp., but so long as 
 it continues solvent he shall permit it to collect 
 the interest on its securities so deposited. 
 From time to time said treasurer shall permit 
 withdrawals of such securities or cash, or 
 part thereof, on the deposit with him of cash, 
 or other securities of the kind heretofore 
 named, so as to maintain the value of such 
 deposit as herein provided. 
 
 Sec. 9781. Moneys or properties received 
 on deposits or in trust by such Corp., unless 
 by the terms of the trust some other mode 
 of investment is prescribed, together with its 
 capital and surplus, excepting such as is re- 
 quired to be kept as a reserve, shall be invested 
 in or loaned only on the following: 
 
 a. The securities mentioned in paragraphs 
 bjC,d, e* f of Sec. 9758, subject to the limita- 
 tions and restrictions contained in said para- 
 graphs, except that Tr. Cos. shall not loan 
 more than 60% of the amount of their paid-in 
 capital, surplus and deposits on notes secured 
 by Mtg. on real estate; 
 
 b. Stocks, which have paid dividends for 
 5 consecutive yrs. next prior to the invest- 
 ment, and bonds of Corps.f when they are 
 authorized by the affirmative vote of the 
 majority of the board of directors or of the 
 executive committee of such Tr. Co.; but the 
 Supt. of Bks. may order that any such secu- 
 rities which he deems undesirable shall be sold 
 within 6 mos. ; 
 
 c. Promissory notes of individuals, firms, 
 or Corps., when secured by a sufficient pledge 
 of collateral, approved by the directors, subject 
 to the provisions of Secs. 9754 and 9755. 
 
 Sec. 9782. All moneys or properties received 
 in trust by such Co., unless by the terms of 
 the trust some other mode of investment is 
 prescribed, together with the capital and sur- 
 plus of such Corp., also may be invested in 
 
 * This in part refers to railroad securities, 
 t The Department of Banks and Banking holds that 
 inasmuch as the banking law does not mention u rail- 
 road ” corporations specifically that they are included 
 in the general use of the word “ corporations.” 
 
OHIO. 
 
 Trust Companies. 
 
 ground rents, when authorized by a vote of 
 the board of directors. 
 
 Sec. 9783. Not more than 20% of the capital 
 and surplus of any such Corp. shall be in- 
 vested in any one security or loan unless it 
 be in bonds or other interest bearing obliga- 
 tions enumerated in paragraphs b, c and d of 
 Sec. 9758, or in providing a building and vaults. 
 
 Sec. 9784. No investment in notes secured 
 by Mtg. on real estate shall be made by such 
 Corp. except upon the approval of the board 
 of directors. 
 
 Sec. 9785. No Tr. Co. shall lend any part 
 of its capital or surplus unless such loan be 
 secured by bonds or stocks as collateral in 
 which it is allowed to invest its capital, or by 
 Mtg. on real estate, where the amount loaned 
 inclusive of prior incumbrances thereon does 
 not exceed 60% of the value of the real estate, 
 including improvements, which shall be kept 
 adequately insured; nor shall such Corp. lend 
 to any one person, firm, association or Corp. 
 more than 20% of its paid-in capital and 
 surplus. 
 
 Sec. 9787. Tr. Cos. shall keep the same 
 reserve as is required of Sav. Bks., but they 
 shall not be required to keep a reserve on 
 trust funds. When the reserve of a Tr. Co. 
 falls below the amount required, it shall be 
 governed by the provisions of Sec. 9760. This 
 Sec. does not apply to money or property 
 held in trust. 
 
 Sec. 9788. In the management of money and 
 property held by it as trustee, under the pow- 
 ers conferred in the foregoing Secs., such 
 Tr. Co. may invest them in a general trust 
 fund of the Corp. But the authority making 
 the appointment, upon the conferring of it, 
 may direct whether such money and property 
 shall be held separately or invested in a gen- 
 eral trust fund of the Corp.; except that such 
 Corp. always shall follow and be governed 
 by all directions contained in any instrument 
 under which it acts. 
 
 See also Secs. 9729, 9744, 9790, 9822, 9823 
 
 6 
 
Commercial Banks. 
 
 OHIO. 
 
 and 9824 under Sav. Bks. ; also Sec. 9761 
 under Commercial Bks. 
 
 COMMERCIAL BANKS. 
 
 Sec. 9753. A Commercial Bk. may purchase, 
 lease, hold and convey real estate only as 
 follows : 
 
 a. Real estate whereon is erected or may be 
 erected a building or buildings useful for the 
 convenient transaction of its business, and 
 from portions of which, not required for its 
 use, a revenue may be derived; but the cost 
 of such building or buildings and the real 
 estate whereon they are erected, in no case 
 shall exceed 60% of its paid-in capital and 
 surplus ; 
 
 b. Such as is mortgaged or conveyed to it 
 in good faith by way of security for loans 
 made by or money due to such Corp. ; 
 
 c. Such as has been purchased by it at sales 
 upon the foreclosure of Mtgs. owned by it, 
 or on judgments or decrees obtained or rend- 
 ered for debts due to it, or in settlements 
 effected to secure such debts. All real prop- 
 erty referred to in this paragraph shall be 
 sold by such Corp. within 5 yrs. after it 
 vested therein, unless upon application by the 
 board of directors, the Supt. of Bks. extends 
 the time within which such sales shall be 
 made ; 
 
 d. Such Corp. also shall have power by 
 lease to acquire a suitable building for the 
 convenient transaction of its business, and 
 from portions of which, not needed for its 
 own use, a revenue may be derived. 
 
 Sec. 9754- A Bk. doing business as a Com- 
 mercial Bk., shall not lend, including over- 
 drafts, to any one person, firm or Corp., more 
 than 20% of its paid-in capital and surplus, 
 unless such loan be secured by 1st Mtg. upon 
 improved farm property in a sum not to ex- 
 ceed 60% of its value. The total liabilities, in- 
 cluding overdrafts, of a person, Co., Corp., or 
 firm to any Bk. either as principal debtor or 
 as security or indorser for others, for money 
 
 7 
 
Commercial Banks. 
 
 borrowed, at no time shall exceed 20% of its 
 paid-in capital stock and surplus. But the 
 discount of bills of exchange drawn against 
 actually existing values, and the discount of 
 commercial or business paper actually owned 
 by the person, Co., Corp. or firm negotiating 
 it, shall not be considered as money borrowed. 
 
 Sec. 9755. The deposits of funds in a Bk. 
 or Tr. Co., not duly designated as a deposi- 
 tory by the board of directors as hereinafter 
 provided, shall be held to be a loan within the 
 meaning of the preceding Sec. 
 
 Sec. 9756. Loans by a Commercial Bk. 
 upon Mtg. or other forms of real estate secu- 
 rity, shall not be made until after the adoption 
 of a general resolution by a ?^rds vote of the 
 board of directors, stating to what extent its 
 officers may loan on real estate. The aggre- 
 gate amount of such loans shall not exceed 
 50% of the capital, surplus and deposits of 
 such Corp. ; except that, if a Bk. combines 
 the business of a Commercial and Sav. Bk., 
 it may lend up to 60% of its capital stock, 
 surplus and deposits upon real estate security, 
 after the adoption of a general resolution 
 authorizing it by a ^rds vote of the board of 
 directors. Such loans shall be upon real estate, 
 situated in this state, or in states immediately 
 adjacent thereto, and inclusive of prior in- 
 cumbrances shall not exceed 40% of the value 
 of such real estate, if unimproved, and if it is 
 improved, 60% of its value. The improve- 
 ments shall be kept adequately insured. 
 
 Sec. 9757. A Commercial Bk. also may loan 
 money on personal security, discount, buy, sell 
 or assign promissory notes, drafts, bills of 
 exchange, and other evidences of debt, and 
 buy and sell exchange, coin and bullion. 
 
 Sec. 9758. Subject to the provisions of the 
 preceding Sec. Commercial Bks. may invest 
 their capital, surplus and deposits in, or loan 
 them upon ; 
 
 a. Personal or collateral securities. 
 
 b. Bonds or other interest-bearing obliga- 
 tions of the U. S., or those for which the 
 faith of the U. S. is pledged to provide pay- 
 
Commercial Banks, 
 
 OHIO. 
 
 ment of the interest and principal, including 
 bonds of the Dist. of Col.; also in bonds or 
 other interest-bearing obligations of any for- 
 eign government. 
 
 c. Bonds of interest-bearing obligations of 
 this or any other state of the U. S. 
 
 d. The legally issued bonds . or interest- 
 bearing obligations of any city, village, county, 
 township, Sch. Dist. or other Dist., or political 
 Subdiv. of this or any other state or territory 
 of the U. S. and of Canada. 
 
 e. Mtg. bonds or collateral Tr. bonds of 
 any regularly incorporated Co.,* which has 
 paid, for at least 4 yrs ; , dividends at the rate 
 of at least 4% on their capital stock. Such 
 loan shall not exceed 80% of the market or 
 actual value of such bonds, the purchase of 
 which first has been authorized by the direc- 
 tors. All such securities having a fixed matu- 
 rity shall be charged and entered upon the 
 books of the Bk. at their cost to the Bk., or 
 at par, when a premium is paid, and the Supt. 
 of Bks. shall have the power to require any 
 security to be charged down to such sum as 
 in his judgment represents its value. The 
 Supt. of Bks. may order that any such secu- 
 rities which he deems undesirable be sold 
 within 6 mos. 
 
 /. Notes secured by Mtg. on real estate, 
 where the amount loaned thereon inclusive of 
 prior incumbrances does not exceed 40% of 
 the value of the real estate if unimproved, 
 and if improved 60% of its value, including 
 improvements, which shall be kept adequately 
 insured. Not more than 50% of the amount 
 of the paid-in capital, surplus and deposits of 
 such Bk. at any time shall be invested in such 
 real estate securities. 
 
 Sec. 9760. When the reserve of a Com- 
 mercial .Bk. falls below the amount required 
 * * * , it shall not make new loans or dis- 
 counts, otherwise than by discounting or pur- 
 
 * The Department of Banks and Banking holds that 
 inasmuch as the banking law does not mention " rail- 
 road ” corporations specifically that they are included 
 in the general use of the word “ corporations.” 
 
 9 
 
OHIO. 
 
 Commercial Banks. 
 
 chasing bills of exchange, payable at sight 
 or on demand, nor make dividends of its 
 profits, until the reserve required by law is 
 restored. * * * 
 
 Sec. 9761. No Commercial Bk., Sav. Bk., 
 Safe Dep. Co. or Tr. Co. shall loan money 
 on the security or pledge of the shares of its 
 capital stock; nor be the purchaser or holder 
 of any such shares, unless such security or 
 purchase be necessary to prevent loss upon a 
 debt previously contracted in good faith. 
 Stock so acquired, shall within 6 mos. from 
 the time of its purchase, be sold or disposed 
 of at public sale on 30 days* notice from 
 the Supt. of Bks., * * *. 
 
 See also Secs. 9729, 9744, 9790, under 
 Sav. Bks. 
 
 10 
 
Savings Banks without Capital Stock. PENNSYLV ANIA. 
 
 Municipal Law in red. Street Railway Law in 
 Railroad Law in green . brozvn. 
 
 Other matter in black . 
 
 PENNSYLVANIA. 
 
 SAVINGS BANKS WITHOUT CAPITAL STOCK. 
 
 (20 May, 1889, § 6, P. L. 246.) 
 
 10. It shall be lawful for any as- 
 sociation incorporated under this act 
 to purchase, hold and convey real es- 
 tate as follows: 
 
 1. Such as shall be necessary for 
 its immediate accommodation in the 
 transaction of its business. 
 
 2. Such as shall be mortgaged to 
 it in good faith as security for debts 
 contracted previous to the execution 
 of any such mortgage. 
 
 3. Such as it shall purchase at 
 sales under judgments, decrees or 
 mortgages held by such corporation, 
 or shall purchase to secure debts due 
 to said corporation. 
 
 (20 May, 1899, § 17, P. L. 246.) 
 
 28. It shall be lawful for the trus- 
 tees of any savings bank to invest 
 money deposited therein only as fol- 
 lows: 
 
 1st. In the stocks or bonds of 
 interest-bearing notes, or the obliga- 
 tions of the United States, or those 
 for which the faith of the United 
 States is pledged, to provide for the 
 payment of the interest and the prin- 
 cipal. 
 
 2d. In the stocks or bonds of the 
 Commonwealth of Pennsylvania bear- 
 ing interest. 
 
PENNSYLVANIA, Savings Banks without Capital Stock. 
 
 3d. In the stocks or bonds of any 
 State in the Union that has not, with- 
 in ten years previous to making such 
 investment by such corporation, de- 
 faulted in the payment of any part of 
 either principal or interest of any debt 
 authorized by any legislature of such 
 State to be contracted. 
 
 4th. In the stocks or bonds of any 
 city, county, town or village, of any 
 State of the United States, issued pur- 
 suant to the authority of any law of 
 the State, or in any interest-bearing 
 obligations issued by the city or 
 county in which such bank shall be„ 
 situated. 
 
 5th. In bonds or mortgages or un- 
 incumbered improved real estate sit- 
 uate in this State. 
 
 31. It shall not be lawful for the 
 trustees of any savings bank or insti- 
 tution incorporated under this act to 
 loan the money deposited with them, 
 or any part thereof, upon notes, bills 
 of exchange or drafts, or to discount 
 any such notes, bills of exchange or 
 drafts. 
 
 32. And in all cases of loans upon 
 real estate a sufficient bond secured 
 by a mortgage thereon, shall be re- 
 quired of the borrower, and all the ex- 
 penses of searches, examinations, cer- 
 tificates of title or appraisal of value 
 and of drawing, perfecting and re- 
 cording papers shall be paid by such 
 borrower. 
 
 33. Whenever buildings are in- 
 cluded in the valuation of any real 
 
Banks of Discount and Deposit. PENNSYLVANIA, 
 
 estate upon which a loan shall be made by 
 any such Corp., they shall be insured by 
 the mortgagor in such Co. or Cos. as the 
 trustees shall direct, and the policy of Ins. 
 shall be duly assigned or the loss made 
 payable as its interest may appear to such 
 Corp., and it shall be lawful for such Corp. 
 to renew such policy of Ins. from year to 
 year, or for a longer or shorter time, in 
 case the mortgagor shall neglect to do so, 
 and may charge the amount paid to the 
 mortgagor. And all the necessary charges 
 and expenses paid by such Corp. for such 
 renewal or renewals shall be paid by such 
 mortgagor to such Corp., and shall be a 
 lien upon the property so mortgaged, 
 recoverable with interest, from the time 
 of payment as part of the money secured 
 to be paid by such Mtg. 
 
 34. It shall be unlawful for any Corp. 
 incorporated under this act, directly or 
 indirectly, to deal or trade in real estate, 
 or in any goods, wares, merchandise or 
 commodities whatever, except as authorized 
 by this act, and except such personal prop- 
 erty as may be necessary in the transaction 
 oj its business. 
 
 BANKS OF DISCOUNT AND DEPOSIT. 
 
 Sec. 8 . That it shall be lawful for any 
 association incorporated under this act to 
 purchase, hold and convey real estate as 
 follows : 
 
 1st. Such as shall be necessary for its 
 immediate accommodation in the transac- 
 tion of its business. 
 
 2d. Such as shall be mortgaged to it 
 in good faith as security for debts. 
 
PENNSYLVANIA. Banks of Discount and Deposit. 
 
 3d. Such as it shall purchase at sales 
 under judgments, decrees or Mtgs. held 
 by such Corp., or shall purchase to secure 
 debts due to said Corp. 
 
 Such Corp. shall not purchase or hold 
 real estate in any other case or for any 
 other purpose than as specified in this Sec., 
 nor shall it in any case hold the possession 
 of any real estate under Mtg., or the title 
 and possession of any real estate under 
 Mtg., or the title and possession of any 
 real estate purchased by it, except such as 
 may be necessary for its immediate accom- 
 modation in the transaction of its business, 
 for a longer period than 5 yrs. (This clause 
 was amended June 10, 1911, as follows:) 
 
 “Sec. 1. Be it enacted, etc., that the time 
 during which all Corps, are authorized by 
 law and their charters to hold and convey 
 real estate, acquired by them under execu- 
 tion or in satisfaction of debts, be and the 
 same is hereby extended to all property here- 
 tofore bought and now held by such Corps., 
 for and during a further period of 5 yrs. 
 from and after the expiration of the time 
 during which, as aforesaid, they are now so 
 authorized to hold and convey the same/’ 
 — be and the same are hereby revived, 
 continued, and extended, in so far as they 
 relate to banking Cos., for a period of 5 
 yrs. from and after the passage of this act: 
 Provided, however, that nothing in this 
 act shall apply to R. R. right of ways. 
 
 Sec. 1. Be it enacted, etc., that Bks. 
 chartered under the provisions of the 
 laws of * * * Penn, be and they are 
 hereby authorized to loan money on the 
 security of bonds and Mtgs., on unincum- 
 bered real estate situated in this state, 
 
 4 
 
Banka, Trust Companies, etc. 
 
 PENNSYLVANIA. 
 
 not in excess of their time deposits, 
 and to invest their funds, not exceed- 
 ing twenty-five per centum of their 
 capital stock, surplus and undivided 
 profits, in the purchase of such mort- 
 gages ; and may also purchase, for 
 investment, any interest-bearing bonds 
 or other obligations of any corpora- 
 tion or individual. 
 
 Approved July 10, 1901. 
 
 BANKS, TRUST COMPANIES, AND SAVINGS IN- 
 STITUTIONS, WITH CAPITAL STOCK. 
 
 Section i. Be it enacted, etc., that 
 no director of any banking institution, 
 trust company, or savings institution, 
 having capital stock, heretofore or 
 hereafter incorporated in this com- 
 monwealth, shall receive as a loan an 
 amount greater than ten per centum 
 of the capital stock actually paid in, 
 and surplus; and the gross amount 
 loaned to all officers and directors of 
 such corporations, and to the firms or 
 houses in which they may be inter- 
 ested directly or indirectly, shall not 
 exceed at any time the sum of twenty- 
 five per centum of the capital stock 
 paid in, and surplus. 
 
 Section 2. That no corporation 
 under this act shall take as security 
 for any loan or discount, a lien on 
 any part of its capital stock; but the 
 same surety, both in kind and amount, 
 shall be required of persons, share- 
 holders and not shareholders ; and no 
 such corporation shall be the holder 
 or purchaser of any of its capital, un- 
 
 o 
 
PENNSYLVANIA. 
 
 Banks, Trust Companies, etc. 
 
 less such purchase shall be necessary 
 to prevent loss on a debt previously 
 contracted in good faith, on surety 
 which at the time was deemed ade- 
 quate for the payment of such debt, 
 without a lien upon such stock, or in 
 case of forfeiture of such stock for 
 the non-payment of installments due 
 thereon. . . . 
 
 Approved June 14, 1901. 
 

 
V, 
 
 ( 
 
 I 
 
Savings Banks. 
 
 RHODE ISLAND. 
 
 Municipal Law in red. Street Railway Law in 
 Railroad Law in green. brown. 
 
 Other matter in black. 
 
 RHODE ISLAND. 
 
 Corrected to and including January, 1912 , Session. 
 
 SAVINGS BANKS. 
 
 Chap. 237, Gen. Laws, 1909. 
 
 Sec. 10. Any deposit in a Sav. Bk. or the 
 Sav. Dept, of a bank or Tr. Co. may be 
 pledged by delivery of the pass-book evidenc- 
 ing such deposit to the pledgee, with an order 
 for its transfer; but no such pledge shall be 
 effective to secure such deposit against any 
 person other than the pledgor, his executor 
 or administrator, unless an actual transfer 
 of said deposit shall have been . made upon 
 the books of the Sav. Bk., or said order for 
 such transfer shall have been disclosed to, 
 and a copy filed with, the Sav. Bk. holding 
 such deposit. 
 
 Chap. 687, Pub. Laws, 1911. 
 
 Sec. 1. All deposits in Sav. Bks. and in the 
 Sav. or participation Dept’s. of, or received 
 as savings deposits or on participation by 
 Bks. and Tr. Co’s., and in the case of Sav. 
 Bks. the income derived from investments 
 held, hereafter received shall be invested only 
 as follows : 
 
 Clause I. (a) In the bonds or notes of the 
 U. S. or of any state or territory of the U. S. 
 provided that such state or territory has not, 
 in the 10 yrs. next preceding the time of 
 such investment, repudiated its debt or failed 
 to pay the same, or the interest due thereon 
 or upon any part of such debt. 
 
 (b) In the bonds or notes of any city or 
 town of the New Eng. States or of the State 
 of N. Y., which has not defaulted upon any 
 of its bonds or notes during the 10 yrs. next 
 preceding such investment, whose net debt 
 does not exceed 7% of the last preceding 
 valuation of the property therein for the 
 assessment of taxes; or of any incorporated 
 Dist. of said states which has within its 
 limits more than 5,000 inhabitants, and whose 
 
RHODE ISLAND. Savings Banks. 
 
 bonds or notes are a direct obligation on all 
 the taxable property of such Dist., and whose 
 net debt does not exceed 5% of such valua- 
 tion, and which bonds are provided for by a 
 sinking fund or serial retirement; or of any 
 incorporated Dist. within this state which 
 has within its limits more than 2,500 inhabi- 
 tants and whose net debt does not exceed 5% 
 of such valuation, and which bonds are pro- 
 vided for by a sinking fund or serial retire- 
 ment. 
 
 (c) In the bonds or notes of any city of 
 any of the U. S. other than the New Eng. 
 States, and the State of N. Y., which has not 
 defaulted upon any of its bonds or notes 
 during the 10 yrs. next preceding such in- 
 vestment, and which has 30,000 or more in- 
 habitants, as established by the last national 
 or state census, or city census certified to by 
 the clerk or treasurer of such city, and taken 
 in the same manner as a national or state cen- 
 sus, preceding such investment, and whose 
 net debt does not exceed 7% of the valua- 
 tion of the taxable property therein, as fixed 
 by the last preceding valuation of property 
 therein for the assessment of taxes, or in 
 the bonds and obligations of any incorpo- 
 rated Sch. Dist. within any such city, which 
 have been issued by the legally constituted 
 authorities empowered to issue such bonds 
 and obligations, payable primarily from taxes 
 levied on all taxable property in such Dist. 
 Provided, that the population of such Dist. 
 is 30,000 or more, and the population and 
 assessed valuation of the Dist. are equal to 
 at least 75% of the population and assessed 
 valuation of the city within which such Dist. 
 is located: And, provided, further, that the 
 net municipal debt of such city is not in ex- 
 cess of the limit hereinbefore set.* 
 
 (d) In the bonds or notes of any county 
 of any state of the U. S., which has at the 
 date of such investment more than 100,000 
 inhabitants, as established by the last national 
 
 * It is ruled that the 7 % limit of municipal 
 debt is inclusive of Sch. Dist. debt. 
 
 2 
 
Savings Banks. 
 
 RHODE ISLAND 
 
 or state census, preceding such investment, 
 and whose net debt does not exceed 3% of 
 the valuation of the taxable property therein, 
 as fixed by the last preceding valuation of 
 property therein for the assessment of taxes. 
 
 (e) The term “ net debt” shall mean the 
 debt of a city, town, county, or Dist., after 
 deducting from the total debt the amount of 
 the sinking funds available for the payment of 
 such debt, the net outstanding water and sewer 
 debts, and the tax levy for the current year, in 
 computing the limit of debt of such city, town, 
 county or Dist. 
 
 Clause II. In the bonds and notes and 
 receivers' certificate of steam R. R. corpora- 
 tions described herein below, in the “ table of 
 eligible steam R, R. bonds and notes,” sub- 
 sections (a) to (y) inclusive, subject to the 
 following definitions and classification: 
 
 The words “ railroad ” and “ railway ” are 
 to be considered synonymous titles. 
 
 The term, “ funded debt” herein used shall 
 include all bonds and notes bearing interest. 
 
 All “ income bonds ” are ineligible. 
 
 The eligibility of such bonds for such in- 
 vestment is defined as follows, unless herein- 
 after otherwise provided : 
 
 Such R. R. Corp. shall own its road in fee. 
 
 The R. R. of such Corp. shall be located 
 principally in the U. S. 
 
 The R. R. of such Corp. shall be of stan- 
 dard gauge. 
 
 Such R. R. must be not less than 100 miles 
 in length, exclusive of sidings. 
 
 The net income of any such Corp. shall be 
 its earnings and income after payment of all 
 operating expenses, maintenance charges, 
 rentals, and taxes, and all guaranteed divi- 
 dends and guaranteed interest paid by, or due 
 from, it. 
 
 The net earnings and income of any such 
 corporation shall equal the following require- 
 ments by the following classes, to which ref- 
 erence is made in the succeeding table of 
 bonds. 
 
 Class I. Any such corporation of this class 
 must have earned and received in each of its 
 
 3 
 
RHODE ISLAND. 
 
 Savings Banks. 
 
 3 fiscal yrs., or 3 nearer and successive 
 periods of 1 yr., next preceding such invest- 
 ment, a net income of not less than twice 
 the annual interest for the ^current year on 
 all its funded debt, including the bonds in 
 question. 
 
 Class II. Any such corporation of this 
 class must have earned and received a net 
 income, in each of its 3 fiscal yrs., or 3 nearer 
 and successive periods of 1 yr., next preced- 
 ing such investment, not less than twice the 
 annual interest for the ^current year on the 
 underlying mortgage bonds in question and all 
 prior liens. 
 
 Class III. Any such corporation of this 
 class must have earned and received in each 
 of its 3 fiscal years, or 3 nearer and succes- 
 sive periods of 1 year, next preceding such 
 investment, a net income of not less than 
 twice the annual interest for the ^current year 
 on all its mortgage debt outstanding, includ- 
 ing the bonds in question. 
 
 Class IV. Any such corporation of this 
 class must have earned and received in each 
 of its 3 fiscal yrs., or 3 nearer and successive 
 periods of 1 yr., next preceding such invest- 
 ment, a net income of not less than ij 4 times 
 the annual interest for the ^current year on 
 all its funded debt, including the bonds in 
 question. 
 
 (a) Debenture bonds of any such steam 
 R. R. Corp., incorporated in any of the U. S., 
 whose net income is described in Class I. 
 
 (b) Debenture bonds of any such steam 
 R. R. Corp., incorporated in any of the U. S., 
 which has leased its R. R. to another such 
 R. R. whose net income is described in Class 
 I : Provided, that such lease is for a term ex- 
 tending at least 10 yrs. after the maturity 
 of the bonds in question, and that the rent 
 from such lease is sufficient to meet the in- 
 terest, and sinking fund requirements if any, 
 on said bonds or any prior lien or any other 
 debenture bonds, together with a dividend 
 of not less than 4% per annum on the entire 
 
 * “ Current year ” means the year now passing. 
 
 4 
 
Savings Banks. 
 
 RHODE ISLAND 
 
 capital stock of the lessor Corp., and also 
 provides for the proper maintenance and 
 operation of the property leased. 
 
 (c) Debenture bonds of any such steam 
 R. R. Corp., incorporated in any of the U. S., 
 guaranteed as to principal and interest, or as- 
 sumed by another R. R. described in Class I. 
 
 (d) Bonds of any such steam R. R. Corp. 
 described in items (b) and (c), which are 
 guaranteed as to principal and interest, or 
 assumed by 2 or more steam R. Rds. of which 
 r shall be of Class I, and the others may be 
 of Class III or Class IV. 
 
 (e) Mtg. bonds of any such steam R. R. 
 Corp. incorporated in any of the U. S., whose 
 net income is not less than that described in 
 Class III. 
 
 (f) Underlying Mtg. bonds of any such 
 steam R. R. Corp. incorporated in any of the 
 U. S., whose net income is not less than that 
 described in Class II. 
 
 (g) Mtg. bonds of any such steam R. R. 
 Corp., incorporated in any of the U. S., which 
 are guaranteed as to principal and interest, 
 or assumed, by another steam R. R. whose 
 net income is described in Class I or Class 
 III. 
 
 (h) Mtg. bonds of any such steam R. R. 
 Corp., incorporated in any of the U. S., which 
 are guaranteed as to principal and interest, 
 or assumed, by 2 or more steam R. Rds., 
 of which at least 1 shall be of Class I or 
 Class III and the others may be of Class III 
 or Class IV. 
 
 (i) Mtg. bonds of any such steam R. R. 
 Corp., incorporated in any of the U. S., which 
 has leased its R. R. to another steam R. R. 
 whose net income is described in Class I 
 or Class III : Provided, that said lease is for 
 a term extending at least 10 yrs. after the 
 maturity of the bonds in question, and that 
 the rent ’from such lease is sufficient to meet 
 the interest, and sinking fund requirements 
 if any, on said bonds and any prior liens, to- 
 gether with a dividend of not less than 4% 
 on the entire capital stock of the lessor Corp., 
 
 5 
 
RHODE ISLAND. Savings Banks. 
 
 and provides for the proper maintenance and 
 operation of the property leased. 
 
 (j) Mtg. bonds of any such steam R. R. 
 Corp., incorporated in the U. S., which has 
 leased its R. R. to 2 or more steam R. Rds., 
 of which at least one shall be of Class I or 
 Class III : Provided, that said lease shall be 
 for a term extending at least io yrs. after 
 the maturity of the bonds in question, and 
 that the rent from such lease is sufficient to 
 meet the interest, and sinking fund require- 
 ments if any, on said bonds and any prior 
 liens, together with a dividend of not less 
 than 4% on the entire capital stock of the 
 lessor Corp., and provides for the proper 
 maintenance and operation of the property 
 leased. ' 
 
 (k) 1st Mtg. bonds or refunding Mtg. 
 bonds of any such steam R. R. Corp., which 
 would be a legal investment under items 
 (g), (h), (i), and (j), respectively, except for 
 the fact that it owns in fee less than ioo 
 miles of road, exclusive of sidings. 
 
 ( l ) ist Mtg. bonds of any such steam 
 R. R. Corp., irrespective of mileage, which is 
 a constituent part of a steam R. R. and trans- 
 portation system of not less than i,ooo miles 
 of road, exclusive of sidings, and at least 
 90% of the capital stock of which is owned 
 by a proprietary Holding Co. which operates 
 said R. R. and transportation system, and 
 the earnings of which, with the earnings of 
 the other divisions constituting said R. R. 
 and transportation system, are received by 
 said Plolding Co., and which bonds in ques- 
 tion are fully guaranteed as to principal and 
 interest by such Holding Co., either by di- 
 rect guarantee, or by rental under lease ex- 
 tending at least io yrs. after the maturity 
 of said bonds, the terms of which lease re- 
 quire a payment of rent equivalent to all 
 taxes and interest, and provides a sinking 
 fund sufficient to retire said bonds at ma- 
 turity : Provided, however, that the net in- 
 come of said Holding Co. shall equal the 
 requirements of R. Rds. in Class I. 
 
 (m) Bonds and debentures of any steam 
 
 6 
 
Savings Banks. 
 
 RHODE ISLAND. 
 
 R. R. Corp., whose R. R. property is unin- 
 cumbered bv Mtg., and whose net income is 
 described in Class I : Provided, however, that 
 such bonds or debentures shall be issued only 
 under the authority of some state which pro- 
 vides by law that no such R. R. Corp. which 
 has issued bonds shall subsequently execute 
 a Mtg. upon its R. R. property without in- 
 cluding in and securing by such Mtg. all 
 bonds previously issued by it and all its pre- 
 existing debts and liabilities, which provision 
 so enacted in such state shall have been ac- 
 cepted by the stockholders of such R. R. Co. 
 
 (n) Bonds of any steam R. R. Corp., de- 
 scribed in item (m) which has leased its 
 R. R. to another steam R. R. for a term ex- 
 tending not less than io yrs. after the ma- 
 turity of the bonds in question, which lessee 
 R. R. fully guarantees the principal and in- 
 terest on said bonds : Provided, that said 
 lessee R. R. is one whose net income is at 
 least up to the standard set in Class III ; 
 and provided, further, that said lease is for 
 a term extending at least io yrs. after the 
 maturity of the bonds in question, and that 
 the rent from such lease is sufficient to meet 
 the interest and sinking fund requirements, 
 if any, on said bonds, together with a divi- 
 dend of not less than 4% per annum on the 
 entire capital stock of the lessor Corp., and 
 provides for the proper maintenance and op- 
 eration of the property leased. 
 
 (o) 1st Mtg. bonds of any Terminal Co., 
 
 or Terminal Rwy. Co. incorporated in the 
 
 U. S., whose property is located in the U. S., 
 
 and whose bonds are guaranteed as to 
 principal and interest by any such steam R. R. 
 Corp. of Class I. 
 
 (p) 1st Mtg. Bonds of any Terminal Co., 
 
 or Terminal Rwy. Co., incorporated in the 
 
 U. S., whose property is located in the U. S., 
 
 whose bonds are guaranteed as to principal 
 and interest by 2 or more steam R. R. Corps., 
 of Class I or Class III. 
 
 (q) 1st Mtg. bonds of any Terminal Co., 
 
 or Terminal Rwy. Co., incorporated in the 
 
 U. S., whose property is located in the U. S.. 
 
 7 
 
RHODE ISLAND. 
 
 Savings Banks. 
 
 of which Co. at least 90% of its capital stock 
 is owned by 2 or more proprietary steam 
 R. Rds. of Classes I, III, or IV, and which 
 use said property, and jointly, or jointly and 
 severally, guarantee the principal and interest 
 of all the debt of said Co. 
 
 (r) 1st Mtg. bonds of any Terminal Co., 
 or Terminal Rwy. Co., inc. in the U. S., 
 whose property is located in the U. S., which 
 has leased its property to 1 or more steam 
 R. R. Corps., which guarantee the principal 
 and interest on said bonds, and which lease 
 runs for a term extending at least 10 yrs. 
 after the maturity of said bonds, and which 
 lease provides for the maintenance and opera- 
 tion of the leased property : Provided, that, 
 if such lease is to 1 steam R. R. Corp., it 
 shall be of Class I, and if such lease is to 
 2 steam R. R. Corps., they may be of Classes 
 I, or III ; and if such lease is to 3 or more 
 steam R. R. Corps., they may be of Classes 
 I, III or IV. 
 
 (s) 1st Mtg. bridge bonds issued by any 
 R. R. Corp. of Class I. 
 
 (t) 1st Mtg. bonds of any Bridge Co., in- 
 corporated in the U. S., whose property is in 
 the U. S., whose entire debt is guaranteed as 
 to principal and interest by 1 or more steam 
 R. R. Corps. : Provided, that, if such guaran- 
 tee is by one such R. R. Corp., it shall be of 
 Class I, and if such guarantee is by 2 or 
 more R. R. Corps, they may be Classes I, III, 
 or IV. 
 
 (u) 1st Mtg. bonds of any Bridge Co., in- 
 corporated in the U. S., whose property is 
 in the U. S. and whose capital stock is en- 
 tirely owned, except shares qualifying direct- 
 ors, by 2 or more proprietary steam R. R. 
 Corps, of Classes I, III, or IV, which guar- 
 antee the maintenance of the property and 
 the principal and interest of such bonds. 
 
 (v) Equipment bonds, or equipment notes, 
 issued by any steam R. R. Corp. of Class I, 
 Class III, or Class IV, which are secured by 
 a 1st lien on the equipment against the pur- 
 chase of which said bonds or notes were is- 
 sued at not exceeding 80% of the purchase 
 
 3 
 
Savings Banks. 
 
 RHODE ISLAND. 
 
 price thereof : Provided, that the indenture 
 under which said lien is established contains 
 adequate requirements for the maintenance of 
 the property pledged, and provides that an 
 equal amount of any issue of such bonds, or 
 notes, shall be paid annually until all are 
 retired without the release of the lien on any 
 of such equipment. 
 
 (w) Notes, warrants, and obligations, run- 
 ning for a term of not more than 5 years 
 from date of issue, given by any steam R, R. 
 Corp., which has earned and paid dividends 
 at the rate of not less than 4% per annum 
 on all its outstanding capital stock for 5 yrs. 
 next prior to the date of issue. 
 
 (x) Certificates of indebtedness commonly 
 termed “ receivers’ certificates,” issued by a 
 receiver of any such steam R. R. under an 
 authorization of the court or courts having 
 jurisdiction over such receiver. 
 
 (y) 1st Mtg. bonds and refunding Mtg. 
 bonds of any steam R. R., incorporated, and 
 whose property is principally located in the 
 Dom. of Canada, which conform in all re- 
 spects to the provisions applying to Mtg. bonds 
 of steam R. R. Corps, in the U. S. 
 
 Clause III. The change of motive power 
 by any steam R. R. Corp., whether wholly 
 or in part, shall not affect the eligibility, 
 for such investment, of any of the steam 
 R. R. obligations hereinbefore described, so 
 long as its earnings conform with the fore- 
 going requirements. 
 
 Clause IV. (a) In the shares of the capi- 
 tal stock of any steam R. R. which has 
 leased its R. R. to another steam R. R., 
 which operates the property so leased as a 
 part of its R. R. system : Provided, that such 
 lease is for a term of not less than 50 yrs., 
 and the lessee Co. is one whose bonds would 
 be a legal investment under the provisions 
 of Clause II, Class III, and that by the terms 
 of the lease, the lessee Co. is obliged to pay 
 rents sufficient to pay the interest on the 
 outstanding bonds of the lessor, and a divi- 
 dend at an annual rate of not less than 
 
 9 
 
RHODE ISLAND. Savings Banks. 
 
 4% per annum on all the capital stock of 
 the lessor Co. 
 
 (b) In the shares of the capital stock of 
 any steam R. R. which operates its own R. R., 
 whose bonds would be an eligible investment 
 under Clause IX, Class I : Provided, that such 
 R. Ro has paid regular annual dividends on 
 all its capital stock, at the rate of not less 
 than 4% per annum for io yrs. next preced- 
 ing such investment. 
 
 (c) The aggregate investment of such 
 deposits and income by any bank, Sav. Bk. or 
 Tr. Co. in the stock of any one such steam 
 R. R. Corp. at par value shall not exceed 2% 
 of said deposits held by it. 
 
 Clause V. In the bonds of public service 
 Corps., commonly called “ public service se- 
 curities ” described hereinbelow in the “ table 
 of eligible public service securities/* subsec- 
 tions (a) to O'), inclusive, subject to the fol- 
 lowing description and definition : 
 
 The title “ public service securities ” shall 
 include only Mtg. bonds issued by any Electric 
 R R « Street Rwy., Gas Co., Electric Light 
 or Power Co., or Water Co., as hereinafter 
 described. 
 
 The term “ funded indebtedness ” herein 
 used shall include all bonds and notes bear- 
 ing interest. 
 
 Such Corp. shall own the major part of its 
 property in fee. 
 
 The property of such Corp. shall be located 
 principally in the U. S., unless otherwise 
 provided. 
 
 The net income of such Corp. shall be its 
 net earnings and income after payment of all 
 operating expenses, maintenance charges, ren- 
 tals and taxes, and all guaranteed interest 
 and guaranteed dividends paid by, or due 
 from, it. 
 
 Such Corp. must have earned and received, 
 a net income in each of its 3 fiscal yrs., or 
 3 nearer periods of 1 yr., next preceding 
 such investment, not less than twice the an- 
 nual interest for the ^current year on all its 
 
 ♦ “ Current year ” means year now passing. 
 
 10 
 
Savings Banks. 
 
 RHODE ISLAND. 
 
 debt secured by the Mtg. under which the 
 bonds in question are issued and all prior 
 liens, unless otherwise hereinafter specified, 
 and shall not have defaulted on any of its 
 obligations during the same period : Provided, 
 however, that said bonds shall mature at 
 least 5 yrs. before the expiration of the prin- 
 cipal franchise or franchises under which 
 such Corp. is operated, or there shall exist 
 some definite agreement or contract with the 
 grantors whereby such franchise or franchises 
 may be renewed or extended from time to 
 time throughout and beyond the life of the 
 bonds in question, and or that by such an 
 agreement or contract the security of said 
 bonds is adequately protected and preserved 
 to the bondholders, and a copy of such agree- 
 ment or contract shall be filed in the office 
 of the Bk. Com. and shall be preserved in his 
 files during the life of the bonds in question. 
 
 (a) Mtg. bonds of any such Electric R R., 
 Street Rwy., Gas, Electric Light or Power Co., 
 incorporated under the laws of R. I., whose 
 property is located and operated chiefly in 
 this state. 
 
 (b) Mtg. bonds of any such Electric R, R 
 Street Rwy., Gas, and Electric Light or Power 
 Co., incorporated under the laws of any of the 
 U. S. : Provided, however, that the said bonds 
 of any such Electric R. R. or Street R. R. Co. 
 shall be a legal investment for such deposits 
 and income only in case such Co. shall have 
 received average gross earnings of not less 
 than $400,000 in each of its 3 fiscal yrs., or 
 3 nearer periods of 1 yr. next preceding such 
 investment, and if said bonds are issued by 
 a Co., which carries on the business of an 
 Electric R. R. or St. Rwy. combined with 
 that of either a Gas Co. or an Electric Light 
 or Power Co., or both of such kinds of busi- 
 ness, then, in such case, such Co. shall have 
 received average gross earnings of not less 
 than $600,000 in each of its 3 fiscal yrs., or 
 3 nearer periods of 1 yr., next preceding such 
 investment : and if said bonds are issued by 
 any such Gas Co., or Electric Light or 
 Power Co., or by a Co. which combines the 
 
 11 
 
RHODE ISLAND. 
 
 Savings Banks. 
 
 business of a Gas Co., and an Electric Light 
 Co., and, or Power Co., or any 2 such businesses, 
 then, in such case, it shall have received aver- 
 age gross earnings of not less than $200,000, 
 in each of its 3 fiscal yrs., or 3 nearer periods 
 of 1 yr., next preceding such investment. 
 
 (c) 1st or refunding Mtg. bonds of any 
 such Electric R. R* f St. Rwy , Gas, Electric 
 Light or Power Co., inc. in any of the U. S., 
 which are guaranteed as to principal and in- 
 terest or assumed by another Corp. whose 
 bonds would be a legal investment under the 
 provisions of paragraph (b) of this clause. 
 
 (d) 1st or refunding Mto\ bonds of any 
 such Electric R. R., or St. Rwy., incorporated 
 in any of the U. S., which are guaranteed as 
 to principal and interest, or assumed, by a 
 Steam R. R. or R. Rds. whose bonds would 
 be a legal investment under the provisions 
 of Class III of the classification of Steam 
 R. Rds. herein 
 
 (e) 1st or refunding Mtg. bonds of any 
 such Electric R. R., St. Rwy Gas, Electric 
 Light or Power Co., which has leased its 
 property to any other Corp. whose bonds 
 would be a legal investment under the provi- 
 sions of paragraph (b) of this clause: Pro- 
 vided, however, that said lease shall extend 
 for a term of at least 10 years after the ma- 
 turity of said bonds, at a rental at least equal 
 to the fixed charges and taxes of the lessor, 
 including the interest on, and a sinking fund 
 for the bonds in question, or provides for the 
 payment of said bonds at maturity and shall 
 require the operation and maintenance of the 
 leased property; and provided, further, that 
 an authentic copy of such lease shall be filed 
 in the office of the Bank Com. and such copy 
 shall be preserved in his files during the life 
 of the bonds in question. 
 
 (f) Equipment bonds, or equipment notes, 
 issued by any such Electric R. R. or St. Rwy., 
 which are secured by a 1st lien on the equip- 
 ment against the purchase of which said 
 bonds or notes were issued at not exceeding 
 80% of the purchase price thereof : Provided, 
 the indenture under which said lien is estab- 
 
 12 
 

 Savings Banks. RHODE ISLAND. 
 
 lished contains adequate requirements for the 
 maintenance of the property pledged, and 
 provides that an equal amount of such bonds 
 or notes shall be paid annually until all are 
 retired, without the release of the lien on 
 any of such equipment. 
 
 (g) Certificates of indebtedness, commonly 
 termed “receiver’s certificates” issued by a 
 receiver of any such Electric R. R St Rwy., 
 
 Gas, Electric Light or Power Co. under an 
 authorization of the court or courts having 
 jurisdiction over such receiver. 
 
 (h) ist Mtg. bonds of any Electric R. R. 
 
 St. Rwv., Gas, Electric Light or Power Co., 
 described in paragraph (b) of this clause, 
 which is incorporated in the Dom. of Canada, 
 and whose property is located principally in 
 said Dominion : Provided, that such bonds 
 conform in all other respects to the provisions 
 of paragraph (b), (c), (d), (e), or (f) of 
 this clause. 
 
 (i) Bonds of any Corp. which owns more 
 than go% of the capital stock and of the out- 
 standing bonds of any Electric R, R. or St. 
 
 Rwy. Co., incorporated in this state, the Rwy. 
 of which is located wholly or in part therein, 
 secured by the deposit in trust of the said 
 stock and bonds as collateral, and which Corp. 
 has paid, in each fiscal yr. for the 5 yrs. last 
 preceding such investment, dividends of not 
 less than 4% per annum upon all its out- 
 standing capital stock; or the bonds of any 
 such Electric R. R. or St. Rwy. Co. which 
 are secured by Mtg. on its property and are 
 guaranteed as to principal and interest by 
 any such Corp. 
 
 (j) ist Mtg. bonds of any Co., incorporated 
 in this state for the purpose of supplying 
 water for domestic and other purposes : 
 Provided, that such Co. has an exclusive 
 franchise to serve a population of not less 
 than 10,000 in this state, which franchise ex- 
 tends at least 5 yrs. beyond the life of the 
 bonds in question, and that said bonds are 
 secured by a Mtg. of the property, rights, 
 and franchises of such Co. 
 
 Clause VI. In the bonds of any Telephone 
 
 13 
 
ERODE ISLAND. Savings Banks. 
 
 Co. incorporated in any of the U. S., whose 
 property is located chiefly in the U. S. Pro- 
 vided, that such Telephone Co. has met the 
 following requirements during each of its 5 
 fiscal yrs. next preceding such investment, viz. : 
 
 (a) That the average gross income of such 
 Telephone Co. shall have been not less than 
 $10,000,000 per annum. 
 
 (b) That such Telephone Co. shall have 
 paid the matured principal and interest of all 
 its debt. 
 
 (c) That such Telephone Co. shall have 
 earned and paid cash dividends on all its 
 outstanding issues of stock at the rate of not 
 less than 6% per annum, and that the amount 
 of such cash dividends shall have exceeded 
 the sum required to pay the interest upon its 
 entire outstanding debt, including the bond 
 issue in question. 
 
 And, further provided, that such bonds 
 shall be secured either : 
 
 (1) By a 1st Mtg. covering at least 75% 
 of the property of such Co., including its 
 franchises and other similar rights and privi- 
 leges, and limiting the amount of the bonds 
 issuable thereunder to 75% of the value of 
 the property mortgaged, excluding any valua- 
 tion of said franchises, rights and privileges, 
 or 
 
 (2) By the deposit with a Tr. Co. of bonds 
 and shares of stock of other Telephone 
 Corps., under an indenture of trust which lim- 
 its the amount of bonds so secured to 75% 
 of the value of the securities deposited as 
 stated and determined in said indenture, and 
 provided that during each of the 5 years next 
 
 It preceding such investment the annual interest 
 and dividends paid in cash on the securities 
 deposited have amounted to not less than 
 50% in excess of the annual interest on the 
 bonds outstanding and secured by said deposit. 
 
 A true copy of the Mtg. or indenture of 
 trust securing said bonds shall be filed in the 
 office of the Bk. Com. and shall be preserved 
 during the life of said bonds. 
 
 The aggregate investment of such deposits 
 and income by any Bk., Sav. Bk. or Tr. Co. 
 
 14 
 
Savings Banks. RHODE ISLAND. 
 
 in the bonds of any one such Telephone Co. 
 at par value shall not exceed 2% of said 
 deposits held by it. 
 
 Clause VII. In the capital stock of any 
 Bk. or Tr. Co. incorporated under the laws 
 of any of the New Eng. States, or the state 
 of N. Y., or of any national banking associa- 
 tion, doing business in said states ; but such 
 Corp. shall not hold, both by investment and 
 as security for loans, an aggregate of more 
 than 25% of such deposits in the stocks of 
 such Corps, at par value, nor more than 3% 
 of such deposits in the stock of any one such 
 Corp. at par value, nor shall such Corp. 
 hold, both by investment and as security for 
 loans, more than J^th of the capital stock of 
 any one such Bk., Tr. Co., or national bank- 
 ing association. 
 
 Clause VIII. Not more than 5% of such 
 deposits shall be on deposit in any one Bk., 
 Tr. Co. or National Bk., and such deposit 
 shall not exceed 25% of the capital stock and 
 surplus of such depository, and if any part 
 of such deposits are deposited in any Bk. or 
 Tr. Co. out of this state such depository must 
 be eligible to act as a reserve agent as de- 
 fined in Chapter 236, Sec. 3, of Gen. Laws, 
 entitled “ of reserved 
 
 Clause IX. In loans secured by 1st Mtg. 
 on real estate subject to the following re- 
 strictions : 
 
 No such loan shall be made except upon 
 the report of not less than 2 officers, or trus- 
 tees, or directors, or agents duly authorized 
 to the duty by the board of trustees or di- 
 rectors, who shall certify according to their 
 best judgment to the value of the premises 
 to be mortgaged. Such report and certificate 
 shall be in writing, and shall be filed and pre- 
 served in the records of the Corp. 
 
 Loans on improved real estate shall not 
 exceed 60% of such valuation. 
 
 Loans on unimproved real estate shall not 
 exceed 40% of such valuation. 
 
 The aggregate amount of such loans shall 
 not exceed 70% of such deposits, and of this 
 
RHODE ISLAND. Savings Banks. 
 
 authorized amount, not exceeding 30% thereof 
 shall be on real estate located out of R. I. 
 
 In event of any such mortgage loan con- 
 tinuing for 5 yrs. unreduced in amount, the 
 property upon which such loan is secured, shall 
 be re-examined and revalued, and a written 
 report and certificate of the condition and 
 value of the property at the time of such 
 re-examination, shall be filed and preserved in 
 the records of the Corp. after the manner 
 provided for a new loan, and such an exami- 
 nation and revaluation shall be made as often 
 as every 5th year, until such loan is paid. 
 If at the time of any such revaluation it shall 
 appear that the property mortgaged has de- 
 preciated in value so that the loan secured 
 thereby is in excess of the percentage limit 
 of such value herein permitted for such loans, 
 a reduction in the amount of the loan shall 
 be required and secured as promptly as is 
 practicable until the margin of safety is 
 restored. 
 
 Clause X. (a) In the note or notes of an 
 individual, copartnership, or Corp., with a 
 pledge of any of the securities described in 
 Clause I, Clause II, Clause IV, Clause V, or 
 Clause VI, or Clause VII, of this chapter, the 
 market value of which securities shall be at 
 least 20% in excess of the amount secured, 
 which margin must always be maintained. 
 
 (b) In the note or notes of an individual, 
 copartnership, or Corp., secured by the pledge 
 as collateral of shares of the capital stock of 
 any Steam R. R. Co. or Co’s incorporated in 
 any of the U. S., or the Dom. of Can., whose 
 road is located wholly or in part in said 
 countries, and which is in possession of and 
 is operating its own road, and has earned and 
 paid regular dividends of not less than 4% 
 per annum in each fiscal yr. on all its issues 
 of capital stock, for 5 yrs. last preceding 
 such investment, which shares are listed either 
 on the N. Y., Boston, Phil., or Chicago stock 
 exchange, and the market value of which col- 
 lateral shall be at least 20% ip excess of the 
 amount secured, which margin must always 
 be maintained ; such note or notes to be paid 
 
 i 
 
 16 
 
Savings Banks. RHODE ISLAND. 
 
 or renewed within I yr from the date thereof. 
 
 (c) In the note or notes of any individual, 
 copartnership, or Corp., secured by pledge, as 
 collateral, of the capital stock of any national 
 banking association, or of any Bk. or Tr. Co., 
 incorporated under the laws of the state in 
 which it is located, other than the New Eng. 
 States or the state of N. Y., which banking 
 association, Bk. or Tr. Co. is a member of 
 the clearing house of any city of the U. S. 
 which has a population of more than 200,000 
 inhabitants, as ascertained by the last national 
 or state census preceding such investment, 
 which securities shall have a fair market value 
 of at least 25% in excess of such note or 
 notes so secured, which margin shall always 
 be maintained, and in no case shall an ag- 
 gregate of more than 10% of such deposits 
 be loaned on such Bk. and Tr. Co. stocks, 
 nor more than 2% of such deposits on the 
 stock of any 1 such Bk or Tr. Co. 
 
 (d) In loans to any depositor in such Corp. 
 upon the personal note of such depositor to 
 an amount not exceeding 90% of any such 
 deposit: Provided, that the deposit and deposit 
 book of any such depositor, with a properly 
 executed assignment thereof, shall be held by 
 such Corp. as security for such loan. 
 
 Clause XI. If such deposits and income 
 cannot be satisfactorily invested in the modes 
 provided in Clauses I to X, inclusive, an 
 amount not exceeding y§d part of such de- 
 posits may be invested in promissory notes 
 or other personal securities, payable and to 
 be paid within 1 year from the date thereof, 
 with at least one responsible surety or se- 
 cured by collateral with a market value of at 
 least 20% in excess of the amount loaned 
 thereon, excepting that the margin required 
 in the case of certain Bk. and Tr. Co. stocks, 
 provided for in sub-section (c) of Clause 
 X, shall be observed, which margin must al- 
 ways be maintained : — or, not exceeding Y d 
 of said Yz d part of such deposits may be 
 loaned on single name promissory notes of 
 solvent individuals, firms, or Corps., engaged 
 in mercantile and manufacturing business, 
 
RHODE ISLAND. Savings Banks. 
 
 that make sworn statements of their condi- 
 tion, duly ascertained and certified to by a 
 certified public accountant, and a true copy 
 of such statement and certificate shall be held 
 by the Bk., Sav. Bk. or Tr. Co. making such 
 loans of savings or participation deposits : 
 Provided, however, that such single name 
 paper shall read for a term of not exceeding 
 6 mos., and that all such investments shall be 
 duly approved by at least 2 of the trustees 
 or directors of the Bk., Sav. Bk., or Tr. Co. 
 so investing the savings or participation de- 
 posits held by it ; — and it is further provided, 
 that no Sav. Bk. shall loan an amount in 
 excess of 2% of its deposits to any individual, 
 firm, association or Corp., including in the 
 liabilities of a partnership or association the 
 liabilities of the several members thereof, 
 either direct or as endorser, and including in 
 the liabilities of an individual his or her lia- 
 bilities to such Sav. Bk. as endorser or surety. 
 
 Clause XII. In the note or notes of a Gas, 
 Water, Electric Light or Power, Telephone, 
 Electric R. R., or. St. Rwy. Co., incorporated, 
 or doing business in this state, which has paid 
 dividends of at least 4% in each fiscal year 
 upon all its issues of capital stock, for 5 yrs. 
 next preceding the date of such investment : 
 Provided, the principal of said note or notes 
 matures at a time not exceeding 3 yrs. from 
 the date of investment therein ; and Pro- 
 vided, further, that said note or notes shall 
 mature at least 5 years before the expiration 
 of the principal franchise or franchises un- 
 der which said Gas, Electric Light or Power, 
 Telephone, Electric R. R., Co. are 
 
 operated; and provided, further, that the ag- 
 gregate amount so invested by any Bk., Sav. 
 Bk. or Tr. Co. in the note or notes of any 
 such Corp., together with the bonds and 
 other securities of such Corp. held, shall not 
 exceed 2% of said deposits held by it. 
 
 Clause XIII. (a) Such Corp. may hold 
 real estate acquired by the foreclosure of a 
 Mtg. owned by it, or by purchase at sales 
 made under the provisions of such Mtg. or 
 upon judgments for debts due to it, or in set- 
 
Savings Banks. RHODE ISLAND. 
 
 dements effected to secure debts. All such 
 real estate shall be sold by the Corp. within 
 5 yrs. after the title thereof is vested in it: 
 Provided, that the Corp. may have 5 yrs. from 
 May 26, 1908, in which to dispose of any real 
 estate previously acquired, but the Bank Com., 
 upon the written petition of such Corp., and 
 for cause, may grant additional time for the 
 sale of the same. 
 
 (b) Such Corp. may invest in real estate 
 suitable for the convenient transaction of its 
 business. 
 
 Clause XIV. Such Corp. may hold stocks, 
 bonds, or other securities of non-legal 
 character acquired in settlements and reor- 
 ganizations effected to reduce or avoid losses 
 on defaulted loans and investments, but, the 
 non-legal securities so obtained shall be sold 
 within 5 yrs. after being acquired; unless the 
 time is extended as provided in preceding 
 Clause XIII. Such securities as were so ac- 
 quired before May 26, 1908, shall be sold 
 within 5 yrs. from that date, unless the time 
 is extended as provided in the preceding 
 Clause XIII. 
 
 Clause XV*. (a) Securities acquired after 
 the passage of this act, which were legal in- 
 vestments when acquired, need not be dis- 
 posed of if it happens afterwards that the 
 net income of the Corp. issuing such securi- 
 ties shall fall below the limit fixed by this 
 act, or, in the case of a city, county, town, 
 or Dist., if the debt limit is exceeded, unless, 
 in the judgment of the Com., it is hazardous 
 to retain the same, in which case said Com. 
 may give directions in writing, requiring the 
 disposal of such securities ; and when such 
 directions are given, such securities shall be 
 disposed of within 1 yr. from the date of 
 such notice, unless an extension of time is 
 granted by said Com. 
 
 (b) *Bonds which are legal investments 
 under the foregoing provisions of this chapter 
 and are secured by a Mtg. which provides for 
 payments to a sinking fund shall cease to be 
 
 * Applies also to (tail roads and Street Railways 
 
 19 
 
RHODE ISLAND. Savings Banks. 
 
 \ 
 
 
 legal investments if the Corp. issuing such 
 bonds shall at any time fail to make such 
 payments. And such bonds shall not be legal 
 investments under the provisions of this sec- 
 tion so long as any such payment is in arrears 
 and unpaid. 
 
 (c) *If a Corp. is formed by a consolidation 
 or merger of 2 or more Corps., and it is de- 
 sired to ascertain the legality of the bonds of 
 the successor Corp. for investment of savs. 
 deposits, the earnings and income of the 
 several predecessor and constituent Corps, 
 shall be consolidated, and the aggregate cor- 
 porate income so ascertained shall be regarded 
 as that of one and the same continuous Corp. 
 represented by the successor Corp. ; or, if a 
 Corp. shall acquire by purchase the property 
 and franchises of another Corp., and a bond 
 issue is made for the financing of the trans- 
 action, the legality of the bonds so issued 
 with the other bonds of the purchasing Corp. 
 shall be ascertained by the same process as 
 in the case of a consolidation or merger above 
 provided, subject to the rules applying to the 
 several classes of Corps, described under the 
 preceding Clauses of this Chap. 
 
 (d) *If the net earnings and income of any 
 Corp. whose bonds have been a legal invest- 
 ment under the provisions of this Chap, 
 shall fall somewhat below the requirements 
 of this Chap, for a period of not exceed- 
 ing 2 successive fiscal yrs., and in the fol- 
 lowing yr. such earnings and income shall 
 be restored to the required amount, said 
 Corp., after such restoration of income, shall 
 be regarded as having complied with said re- 
 quirements during said period, but during the 
 period of failure to earn the required amount 
 no investment shall be made in the bonds 
 of a Corp. so situated. 
 
 (e) ^Serial maturities of bonds shall be 
 considered equivalent to sinking fund provi- 
 sions. 
 
 Clause XVI. (a) Every Bk. or Tr. Co. 
 which maintains a savings or participation 
 
 * Applies also to Railroads and Street Raifo 
 
 20 
 
Savings Banks. RHODE ISLAND. 
 
 Dept., or solicits or receives deposits as sav- 
 ings or on participation, shall invest all de- 
 posits therein, or so received, according to 
 the requirements of this Chap., and such de- 
 posits, invested or uninvested, shall be set 
 apart for the exclusive protection of the de- 
 posits in said savings or participation Dept., 
 and shall not be liable for, or be used to pay, 
 any other obligation or liability of such Bk. 
 or Tr. Co. until after the payment of all the 
 deposits in said savings or participation Dept. 
 
 (b) The foregoing provision as to the 
 character of the investment of savings or 
 participation deposits shall not render illegal 
 any investments of such deposits made prior 
 to May 26, 1908, nor compel the change of 
 such investments for those prescribed by this 
 Chap., except as hereinafter provided. 
 
 (c) If any Bk. or Tr. Co. shall continue 
 to hold such investments of non-legal char- 
 acter made prior to May 26, 1908, which, in 
 the opinion of the Bk. Com. are hazardous 
 and unsafe for the investment of savings de- 
 posits, said Com. may, by giving notice in 
 writing, require such Bk. or Tr. Co. to dis- 
 pose of such investments, or substitute other 
 investments of a character in conformity 
 with the requirements of this Chap, within 1 
 yr. from the date of receipt of such notice, 
 and said Bk. or Tr. Co. shall make such dis- 
 posal or substitution in accordance with such 
 requirement; but, if it shall appear on writ- 
 ten request of such Bk. or Tr. Co. that ad- 
 ditional time is reasonably necessary in which 
 to make such disposal or substitution in or- 
 der to avoid unnecessary sacrifice, said com- 
 missioner may grant a reasonable extension 
 of time for the compliance herewith. 
 
 (d) If . any investment of the savings or 
 participation Dept, of any Bk. or Tr. Co., 
 which, has been set apart as provided in (a) 
 of this Clause, shall be in default in pay- 
 ment of either principal or interest, such in- 
 vestment shall promptly be reduced in its 
 book value approximately to the market value 
 of the same. 
 
 (e) The uninvested funds of the savings 
 
RHODE ISLAND. 
 
 Savings Banks. 
 
 or participation Dept, of any such Bk. or Tr. 
 Co. shall be kept in a distinct deposit ac- 
 count or accounts, or demand certificates of 
 deposit, in such manner that the same can be 
 readily identified as clearly belonging to the 
 segregated assets of such savings or partici- 
 pation deposits. 
 
 (g) The Bk. Com. in requiring the substi- 
 tution of investments under the provisions 
 of (c) of this Clause, shall not require 
 changes or substitutions aggregating in any 
 i yr. more than 2% of the savings or partici- 
 pation deposits of any such Tr. Co. at the 
 time of the passage of this act. 
 
 Clause XVII. (a) The provisions of this 
 chapter shall not render illegal any invest- 
 ments held by any Sav. Bk. prior to May 26, 
 1908, nor require the change of any such in- 
 vestment for those herein prescribed for the 
 investment of savings deposits; Provided, 
 however, if any Sav. Bk. shall hold any such 
 investment or investments which are in de- 
 fault in the payment of interest or divi- 
 dends thereon, or which, at any time, in the 
 opinion of the Bk. Com., are hazardous or 
 unsafe for the investment of savings deposits, 
 the Bk. Com. may by notice in writing re- 
 quire such Sav. Bk. to dispose of such in- 
 vestments ; and such Sav. Bk. within 1 yr. 
 from the receipt of such notice, unless such 
 time shall be extended by the Com., shall 
 dispose of the same : Provided further, said 
 Com. shall not require the disposal of in- 
 vestments aggregating in value in any 1 yr. 
 more than 2% of the amount of the deposits 
 of such Sav. Bk. 
 
 Clause XVIII. If any bonds held by any 
 Sav. Bk. shall be in default either in prin- 
 cipal or interest, such investment shall 
 promptly be reduced in its book value ap- 
 proximately to the market value of the same. 
 
 Clause XIX. No president, treasurer, mem- 
 ber of the board of investment by whatever 
 name entitled, or officer of any Sav. Bk., 
 charged with the duty of investing its funds, 
 shall borrow or use any portion of such 
 funds, or be surety for loans to others, or 
 
 22 
 
Trust Companies. RHODE ISLAND. 
 
 be obligor for money borrowed of the Corp., 
 either directly or as trustee for others, and 
 if any such officer or member violates this 
 provision his office shall become vacant forth- 
 with; excepting, however, if any such mem- 
 ber or officer shall in good faith, and sub- 
 sequent to May 26, 1908, have become the 
 owner of real estate on which a Mtg. had, 
 1 yr. or more before the transaction, been 
 taken by the Corp. in regular course of its 
 business, shall not be regarded as violating 
 this provision, if within 6 mos. after the 
 acquisition of such real estate he shall cause 
 said Mtg. to be discharged or transferred 
 elsewhere, but the continuance of such a sit- 
 uation beyond the 6 mos. permitted shall 
 make such officer or member ineligible and 
 his office or membership shall thereupon be- 
 come vacant; Provided, however, that this 
 clause shall not be so construed as to pre- 
 vent the deposit, and the withdrawal of 
 money against such deposit in Sav. Bks., 
 banks and Tr. Co’s, by any such officer or 
 trustee. 
 
 Clause XX. Every investment of the de- 
 posits and income received and held by Sav. 
 Bks. or the savings or participation Dept, 
 of Bks. and Tr. Co’s, made after the passage 
 of this act, if bought below par, shall be en- 
 tered on the books and returns of the Corp. 
 holding the same at the actual cost price 
 thereof, and the discounts in the price thereof, 
 may, .by an equal annual amortization, be ex- 
 tinguished so as to gradually bring the book 
 value thereof to par at maturity. 
 
 TRUST COMPANIES. 
 
 Chap. 231, Gen. Laws, 1909. 
 
 Sec. 7. Every Tr. Co. shall be required to 
 deposit with the general treasurer of this 
 state, in bonds of this state or of the state 
 of N. Y., or of some of the New Eng. states 
 or of the U. S., or in the bonds, notes, or 
 other financial obligations of any town or 
 city in this state, or in any securities of the 
 classes in which the Bd. of Com. of sinking 
 
RHODE ISLAND. Trust Companies. 
 
 funds of this state are authorized to invest 
 the moneys received by them, or in 1st Mtg’s. 
 on improved real estate in this state of the 
 class required for Sav. Bk. investments, an 
 amount that shall be at all times equal in 
 value to 20% of the entire capital stock of 
 said Corps., which bonds shall be held by said 
 treasurer as an additional security for the 
 faithful performance by said Corp. of its duties 
 as trustee, executor, custodian, conservator, 
 guardian, assignee, or receiver, and also as an 
 additional security for the repayment of 
 moneys deposited with said Corp. by execu- 
 tors, administrators, custodians, conserva- 
 tors, guardians, assignees, or receivers, or 
 trustees on special agreement, * * * Provided, 
 however, that whenever such deposit or any 
 part thereof shall consist of Mtg’s on real 
 estate, the company so depositing the same 
 shall execute an assignment thereof and of 
 the debts secured thereby in favor of the gen- 
 eral treasurer of the state, in trust, for the 
 uses and purposes herein mentioned : Pro- 
 vided, that all Tr. Co’s. Inc. before the 26th 
 day of May, 1908, and which shall have or- 
 ganized under their charters and be doing 
 business before said date, which by the ex- 
 press provisions of their charters were re- 
 quired to deposit bonds with the general 
 treasurer of this state only whenever after 
 their incorporation they should receive and 
 assume to execute certain trusts specified 
 in their charters, shall not be subject to the 
 provisions of their respective charters in 
 this behalf for 5 yrs. next after said date; 
 and no such Co. shall accept or assume to 
 perform any of the trust duties mentioned in 
 this section or receive any deposits from any 
 of the trustees herein mentioned until such 
 deposit shall have been made. 
 
 Sec. 8. * * * and shall also permit said 
 Corp. to retire any securities so deposited, on 
 substituting therefor other securities of any 
 or either of the classes mentioned above, to 
 such an amount that the market value of the 
 whole deposit shall not be less than the 
 
 24 
 
Trust Companies. RHODE ISLAND. 
 
 amount required by the provisions of the 
 preceding section. 
 
 Chap. 237, Gen. Laws, 1909. 
 
 Sec. 1. No Bk. or Tr. Co. shall make any 
 loan or advance to an amount in excess of 
 20% of the capital, surplus, and undivided 
 profits of the Bk. or Tr. Co. making such loan, 
 the repayment of which is undertaken in 
 whole or in part, severally, but not jointly, 
 by 2 or more individuals, corporations, firms, 
 or other parties. 
 
 Sec. 2. No Bk. or Tr. Co. shall make any 
 loan or advance where such Bk. or Tr. Co. 
 is liable directly, indirectly, or contingently 
 for the repayment of such loan or advance 
 in whole or in part. 
 
 Sec. 3. The total liabilities to any Bk. or 
 Tr. Co. of any person or of any Corp. or firm 
 for money borrowed, including in the lia- 
 bilities of a firm the liabilities of the several 
 members thereof, shall at no time exceed 
 i-ioth part of the amount of the capital stock 
 of such Bk. or Tr. Co., actually paid in and 
 unimpaired, and i-ioth part of its unimpaired 
 surplus fund : Provided, however, that the 
 total of such liabilities shall in no event ex- 
 ceed 30% of the capital stock of said Bk. 
 or Tr. Co. But the discount of bills of ex- 
 change drawn in good faith against actually 
 existing values, and the discount of com- 
 mercial or business paper actually owned by 
 the person negotiating the same, shall not be 
 considered as money borrowed. 
 
 Sec. 4. No Bk. or Tr. Co. shall make any 
 loan to its president, its vice-president, its 
 cashier, or to any of its directors or any of 
 its clerks, tellers, bookkeepers, agents, ser- 
 vants, or other persons in its employ, until 
 the proposition to make such a loan, stat- 
 ing the amount, terms, and security, if any, 
 offered therefor, shall have been submitted 
 in writing, by the person desiring the same, 
 to a meeting of the board of directors of such 
 Bk. or of the executive or finance commit- 
 tee of such board, if any, and accepted and 
 
 25 
 
RHODE ISLAND. State Banks. 
 
 approved by the vote of a majority of those 
 present constituting a quorum, * * * 
 
 Sec. 6. No Bk. or Tr. Co. shall make a loan 
 or discount on the security of the shares of 
 its own capital stock, nor be the purchaser 
 or holder of such shares, unless such security 
 or purchase shall be necessary to prevent loss 
 upon a debt previously contracted in good 
 faith: Provided, however, that whenever a 
 bank shall make a valid loan or discount in 
 good faith upon the general credit of specific 
 security or collateral of a shareholder, other 
 than the shares in such bank, nothing in 
 this section contained shall be construed to 
 abridge or modify any of the provisions of 
 the charter or by-laws of such bank, as af- 
 fecting such transaction, giving it a lien upon, 
 or any other right or remedy relating to or 
 affecting, the stock of such shareholder. All 
 stock so purchased or acquired by the bank 
 in good faith as aforesaid shall, within i yr. 
 after its purchase, be sold or disposed of at 
 public or private sale. 
 
 Sec. 26. No Bk. shall be liable to a depos- 
 itor, or to the drawer of a bill of exchange 
 upon the Bk., for an amount charged to or 
 collected from him on account of the payment 
 by such Bk. or Tr. Co. of a negotiable instru- 
 ment upon which the signature of any party is 
 forged, or which is made, drawn, accepted or 
 endorsed without authority, or which is mate- 
 rially altered, or the amount of which is raised ; 
 unless within one Yr. after the return of such 
 negotiable instrument to such depositor or 
 drawer, he shall notify the Bk. in writing that, 
 as the case may be, the signature of a party 
 to the instrument is forged, or that the instru- 
 ment was made, drawn, accepted or endorsed 
 without authority, or that it has been materially 
 altered, or that the amount has been raised. 
 
 See Chap. 237, and Clause XVI, Chap 687, 
 under Sav. Bks. 
 
 STATE BANKS. 
 
 See Chap. 237 and Clause XVI, Chap. 687, 
 under Savings Banks and Chap. 237 under 
 Trust Companies. 
 
 26 
 
i 
 
 * 
 
 1 
 
Banks and Trust Companies. 
 
 TENNESSEE. 
 
 Municipal Law in red . Street Railway Law in 
 
 Railroad Law in green . brown . 
 
 Other matter in black . 
 
 TENNESSEE. 
 
 SAVINGS AND DISCOUNT BANKS. 
 
 §2054. (3) Powers. To purchase and hold, 
 or receive by gift, in addition to the personal 
 property owned by said Corp., any real estate 
 necessary for the transaction of the corporate 
 business, and also to purchase or accept any real 
 estate in payment or part payment of any debt 
 due to the Corp., and sell realty for Corp. pur- 
 poses (1875, ch. 142, §5.) 
 
 §2084. ... It may deal in exchange, gold, 
 silver and bullion, buy and discount notes and 
 bills of exchange, and do and perform all 
 acts usually done and performed by banking- 
 institutions. . . . (1875, ch. 142, §17.) 
 
 §2085. The said Corp. . / . shall invest all 
 moneys (deposits) so received in discounted 
 paper, public stocks or other securities, at the 
 discretion of the directors, and in a manner 
 deemed most beneficial for the interest of the 
 depositors, so that the investment be pursuant 
 to the by-laws. . . . (Ib.) 
 
 See also General Provisions. 
 
 BANKS AND TRUST COMPANIES 
 
 [Banks if they choose may be authorized 
 to couple with the ordinary business of banking 
 a Safe Dep. and Tr. Co.] 
 
 §2091. Powers. (3) To purchase and hold 
 real estate necessary for the transaction of 
 corporate business, and also to purchase and ac- 
 cept any real estate in payment or in part pay- 
 ment of any debt due to the Corp., and to sell 
 realty for Corp. purposes. (1883, c. 168, §1.) 
 
 §2097. This Corp. shall be invested with 
 the right and power ... to discount promis- 
 sory notes, bill of exchange, or other evidence 
 of debt, buy and sell the same, deal in gold, 
 silver, bullion, bonds, stocks or other securities 
 generally, advance money on a pledge or mort- 
 gage of real or personal estate, and sell the 
 same, and have and possess all other rights 
 which appertain to a banking institution. (Ib.) 
 
 1 
 
TENNESSEE. 
 
 State Banks. 
 
 AN ACT to provide for the investment of 
 the estates of minors in the hands of guardians, 
 and to allow guardians the cost of security 
 given by them. 
 
 Sec. i. Be it enacted by the General As- 
 sembly of the State of Tenn., That in addition 
 to the kind and character of securities in 
 which guardians are now permitted by law to 
 invest the funds of their wards, guardians are 
 authorized and empowered to invest such funds 
 in the following securities, namely: 
 
 1. In the bonds of counties, cities, towns or 
 levee districts; Provided , that at the time such 
 investment is made, the interest is being regu- 
 larly paid on said bonds. 
 
 2. In the stock of good and solvent Tr. 
 Cos., having a surplus, and paying regular an- 
 nual dividends of not less than 6%. 
 
 Acts of 1901, Ch. 146, 1901, Apr. 18. 
 
 See also General Provisions. 
 
 STATE BANKS. 
 
 Sec. 5. Be it further enacted, That all funds 
 held by such Bks. in any of the fiduciary ca- 
 pacities hereinbefore in this Act mentioned, 
 which as such it has under existing laws, 
 power, authority or direction to invest, may, 
 unless otherwise required by the principal, or 
 by the court, or by the person creating the trust, 
 agency or other fiduciary capacity, buy U. S. 
 bonds or State bonds of the state of Tenn., or 
 • ■ - or bonds of 
 
 any county or municipal Corp., provided, that 
 such bonds shall at the time of investment be at 
 par or above par value in the market where 
 such bonds are usually listed and sold, and 
 have regularly paid a dividend of not less than 
 4% per annum for the last 5 years next pre- 
 ceding such investment, or in the 1st Mtgs. on 
 real estate, provided that no sum shall be 
 loaned on any Mtg. for more than 50% of the 
 appraised value of the property mortgaged, 
 nor for a longer period than 10 years. . . . 
 
 See also General Provisions 
 
 GENERAL PROVISIONS. 
 
 §3226. Real estate . . . and no bank shall 
 hold or own more real estate than is neces- 
 
General Provisions. 
 
 TENNESSEE. 
 
 sary to carry on its banking business; pro- 
 vided, however, it may receive Mtgs. and as- 
 signments for debts previously contracted ; and 
 purchase in real estate thus mortgaged or as- 
 signed; and purchase in lands sold at execu- 
 tion sales under judgments in its favor, or 
 redeem lands subject to redemption in order 
 to secure its bad or doubtful debts ; but it shall 
 not hold the same for a longer period than 5 
 years. (1859-60, ch. 27, §5.). 
 
 §3235. No Bk. shall buy in, hold or cancel 
 its own stock; but may receive it in payment 
 of bad and doubtful debts, or for the purchase 
 of real estate, and in such case the stock shall 
 be conveyed to a third party, in trust, to be 
 sold by him for the benefit of such Bk. (Ib., 
 
 §17.) 
 
 §2040. Any Co. incorporated under the laws 
 of this State having, by its charter, the right 
 to receive moneys in trust or otherwise, shall 
 be held to have, and shall have, the power to 
 receive deposits and loan the same and its 
 capital on any kind of a commercial or busi- 
 ness paper or real estate, buy and sell exchange, 
 and all kinds of public or private securities 
 and commercial paper. (1887, ch. 190.) 
 
 A GENERAL ACT relating to Banks and 
 Banking, to take effect Jan. 1, 1914 (1913 
 Sess. Leg.) 
 
 Sec. 44. The term or word “bank,” or 
 “banks,” or “banker,” as used in this Act, shall 
 signify, mean, cover and include every Tr. Co., 
 Loan Co., Mtg. Security . Co., Safe Dep. Co., 
 receiving money on deposit, and every Individ- 
 ual, Firm, Corp., Asso. or Co. doing a bank- 
 ing, loan or discount business and receiving 
 money on deposit and performing functions 
 of a Bk. 
 
 Sec. 19. No Bk., firm, person, or Corp. do- 
 ing a banking business shall reduce, or be al- 
 lowed to reduce the cash of the Bk. on hand 
 below 10% of demand deposits, provided that 
 (said) reserve may consist of the balance due 
 by Bks. and bankers to said Bk. when payable 
 on demand. 
 
 Whenever the money reserve shall fall be- 
 low the amount above required, such Bk. shall 
 not increase its liabilities by making any new 
 
TENNESSEE. 
 
 General Provisions. 
 
 loans or discounts, otherwise than by discount- 
 ing or purchasing bills of exchange payable 
 at sight. . . . 
 
 Sec. 20. No Bk., person, firm, or Corp. do- 
 ing a banking business shall lend money to 
 any salaried officer or agent, or employee of 
 the Bk., nor to any firm or Corp. in which such 
 salaried officer, agent or employee of the Bk. 
 owns an interest, without the loan being sub- 
 mitted to and approved by the board of direc- 
 tors of the Bk. (where the Bk. is a Corp.), 
 and by all of the officers of the Bk. where the 
 Bk. is not a Corp., provided, however, if the 
 board of directors of a Corp. has delegated 
 the power to pass on loans to an Executive or 
 Financial Com., the approval of such loan by 
 such Com. may be made in lieu of the approval 
 of the board of directors. 
 
 Sec. 21. No Bk., person, firm, or Corp. do- 
 ing a banking business shall be allowed to lend 
 any one person, firm, or Corp. (including in 
 loans to a firm, loans to several members 
 thereof) more than 15% of its capital, surplus 
 and undivided profits; Provided , however , a 
 loan in excess of 15% of capital, surplus, and 
 undivided profits, may be made if the loan 
 be approved by a majority of the Executive 
 or Financial Com., in case of an incorporated 
 Bk., or by all its officers, if not an incorporated 
 Bk. 
 
 No Bk., person, firm, or Corp. doing a bank- 
 ing business shall make any loan or discount 
 on the security of the shares of its own capi- 
 tal stock, nor be the purchaser or holder of 
 any such shares, unless such security or pur- 
 chase shall be necessary to prevent loss upon 
 a debt previously contracted in good faith, and 
 stock so purchased or acquired shall, within 
 6 months from the time of its purchase, be 
 sold or disposed of at public or private sale. 
 
 Sec. 35. Any director of an incorporated Bk. 
 who concurs in any vote, or act, of the direct- 
 ors of such Bk. by which it is intended. . . 
 
 (3) To discount or receive any note or other 
 evidence of debt in payment of capital stock 
 required to be paid, or with intention to pro- 
 vide the means of making such payment; or 
 
 (4) To receive or discount any note or other 
 evidence of debt, with the intent to enable any 
 
General Provisions. 
 
 TENNESSEE. 
 
 stockholder to withdraw any part of the money 
 paid in by him on his stock; or (5) To apply 
 any portion of the funds of such Corp. ex- 
 cept as allowed by law, directly or indirectly, 
 to the purchase of shares of its own stock, is 
 ) guilty of a misdemeanor. . . . 
 
 Sec. 37. Any officer or employee of an in- 
 corporated Bk. who intentionally conceals from 
 the directors of such Corp. or committee of 
 such Corp., where the directors have delegated 
 authority to a committee, to pass on loans and 
 discounts, any discount or loan made for and 
 in behalf of the Corp. between the regular 
 meetings of its board of directors or commit- 
 tee, or the purchase of any security, or the 
 sale of any of its securities during the same 
 period, is guilty of a misdemeanor. . . . 
 
 Sec. 38. Any individual banker, or officer, 
 or employee of an incorporated Bk., or of a 
 firm or individual banker, who, wilfully and 
 knowingly and without authority from the 
 board of directors or governing body of such 
 Bk., or 2 or more of the active managing of- 
 ficers of such Bk., overdraws his accounts with 
 such Bk. and thereby obtains money or funds 
 of any such Bk., or asks, or receives, or con- 
 sents, or agrees to receive any commission, 
 emolument, gratuity or reward, or any promise 
 of any commission, emolument or reward, 
 property, or thing of value or of personal ad- 
 vantage in procuring or endeavoring to pro- 
 cure for any person, firm or Corp., any loan 
 from or the purchase or discount of any paper, 
 note, draft, check, or bill of exchange, by any 
 such Bk., is guilty of a misdemeanor. . . . 
 
 Sec. 39. It shall be unlawful for the Supt. 
 of Bks., or any examiner appointed by him 
 to make application to any Bk., subject to his 
 examination or control, under the provisions 
 of this Act, for any loan, or discount of com- 
 mercial paper belonging to him, or for any 
 | other person, firm or Corp. . . . 
 
 Sec. 45. All laws in conflict with the provi- 
 sions of this Act are hereby repealed. 
 

 w 
 
 
State Banks of Deposit and Discount. 
 
 TEXAS. 
 
 Municipal Law in red. 
 Railroad Law in green. 
 
 Street Railway Law in 
 
 brown. 
 
 Other matter in black. 
 
 > 
 
 TEXAS. 
 
 STATE BANKS OF DEPOSIT AND DISCOUNT. 
 
 Sec. 3, Ch. io, Acts 29th Leg. Every such 
 Corp. shall be authorized and empowered to 
 conduct the business * * * of loaning money 
 upon real estate and personal property and 
 upon collateral and personal securities at a rate 
 of interest not exceeding that allowed by law; 
 provided, that no bank organized under this 
 act shall loan more than 50% of its securities 
 upon real estate, and no such bank shall make 
 a loan on real estate of an amount greater than 
 50% of the reasonable cash value thereof ; also 
 of buying, selling and discounting negotiable 
 and non-negotiable paper of all kinds as well 
 as all kinds of commercial paper. 
 
 Sec. 7. * * * whenever the reserve of a 
 
 bank, * * * shall fall below 25% of the demand 
 deposits, then such bank shall not make any 
 new loans or discounts until it shall, by col- 
 lections, restore its lawful reserve. * * * 
 
 Sec. 42, Ch. 15, Acts 31st Leg. Any director 
 of a State bank or B’k’g. and Tr. Co. incor- 
 porated under the laws of this State, who shall 
 either directly or indirectly borrow any of the 
 funds of such bank in excess of 10% of its 
 capital and surplus without the consent of a 
 majority of the directors of the bank first 
 having been obtained and made a matter of 
 record at a regular meeting of the board, or 
 without the written consent of such majority 
 of the. directors other than the borrowers be- 
 ing jointly executed by them and filed in the 
 archives of such bank before the loan is made, 
 and any officer of a State bank who shall 
 knowingly becorpe indebted to such bank, 
 directly or indirectly, in any sum whatever, 
 without the consent of a majority of the board 
 other than the borrower, obtained or recorded, 
 or filed in like manner, and any officer or 
 
TEXAS. State Banks of Deposit and Discount. 
 
 director of such bank who shall knowingly 
 loan or assent to the loaning of any of its 
 funds to any officer, or any of its funds to 
 any director, in excess of 10% of its capital 
 and surplus without such consent being first 
 obtained and recorded or filed, or who shall 
 knowingly permit any such officer or director 
 to become indebted to the bank or liable to it 
 without such consent, shall be deemed guilty 
 of a felony and shall be punished by imprison- 
 ment in the State penitentiary for a term of 
 not less than 2 years, upon conviction thereof. 
 
 Sec. 13, Ch. 15, Acts 31st Leg. * * * All 
 banks or banking and Tr. Cos. establishing or 
 maintaining a Savs. Dept, or using the word 
 “savings” * * * shall keep all moneys received 
 as such savings deposits and the funds and 
 securities in which the same may be invested, 
 at all times segregated from and unmingled 
 with the other moneys and funds of the bank 
 or banking and Tr. Co., and may invest not 
 more than 85% of the total amount of such 
 savings deposits in any of the following classes 
 of securities, and not otherwise, to wit : 
 
 1. In bonds or interest-bearing notes or ob- 
 ligations of the U. S. or of those for which 
 the faith of the U. S. is pledged for the pay- 
 ment of principal and interest. 
 
 2. In bonds of any city, county, town or 
 Sch. Dist. or other Subdiv. of this State, now 
 organized or which may hereafter be organized, 
 and which is now or may hereafter be author- 
 ized to issue bonds under the Constitution and 
 laws of this State, which has not defaulted in 
 the payment of any part of either principal or 
 interest thereof, within 5 years previous to 
 making such investments. 
 
 3. In bonds of the State of Texas or of 
 any State of the Union that has not within 
 the last 5 years previous to making such in- 
 vestment defaulted in the payment of any part 
 of either principal or interest thereof. 
 
 4. In the 1st Mtg. bonds of any steam or 
 electric R. R., the income of which is sufficient 
 to pay all operating expenses and fixed charges, 
 which has its domicile in the State. 
 
 2 
 
State Banks of Deposit and Discount. 
 
 TEXAS 
 
 5. In bonds or notes secured by 1st Mtg., 
 deed of trust or other valid lien on unincum- 
 bered improved real estate to run for a term 
 of not longer than 10 years, situated in the 
 State, worth at least twice the amount loaned 
 thereon, such bond or notes to be always ac- 
 companied by a complete abstract of title to 
 the property mortgaged and an attorney’s cer- 
 tificate or title Ins. policy in some Co. incor- 
 porated under the laws of this State, certify- 
 ing said bonds or notes to be the first lien on 
 the land mortgaged. 
 
 It shall be the duty of the directors of such 
 bank or banking and Tr. Co., as soon as prac- 
 ticable, to invest the moneys and funds of such 
 Savs. Dept., by purchase or otherwise, in the 
 securities above described, and from time to 
 time to sell and reinvest the proceeds of such 
 investments, but for the purpose of meeting 
 current demands in excess of the receipt, any 
 of the securities may be sold, or taken up and 
 replaced in cash by the bank or banking and 
 Tr. Co. out of its general fund, and there shall 
 be kept on hand at all times not less than 15% 
 of the whole amount of such deposits in actual 
 cash, in such Savs. Dept. * * * 
 
 * * * It shall be unlawful for any director or 
 officer of any bank or banking and Tr. Co. 
 which shall establish or maintain or continue 
 to maintain a Savs. Dept, or which shall use 
 the word “savings” * * * to borrow any of the 
 funds belonging to such Savs. Dept., or to in 
 any way be an obligor for moneys loaned by 
 or borrowed of such Savs. Dept., or to receive 
 or accept, directly or indirectly any commis- 
 sion, brokerage or other valuable thing or 
 favor of any kind by reason or on account of 
 any loan or investment made out of the funds 
 of such Savs. Dept., or to sell to such Savs. 
 Dept, any security or other investment, or wil- 
 fully and knowingly do or perform any act or 
 transaction by or as a result of which at any 
 time the assets of such Savs. Dept., including 
 cash, shall not at least equal in amount the de- 
 posits in such Savs. Dept., at least 15% of 
 
 3 
 
State Banks of Deposit and Discount. 
 
 which shall be actual cash in such Savs. Dept. 
 * * * 
 
 Sec. 58, Ch. 10, Acts 29th Leg. The directors 
 of banks and Tr. Co’s, created under this act 
 shall have power of investing the moneys 
 placed in their charge in loans secured by real 
 estate or other sufficient collateral security, in 
 public bonds of the U. S. or of this State, in the 
 bonds of any incorporated city, or county, or 
 independent Sch. Dist. in this State. Such 
 Corp. shall own only such real estate as may 
 be required for the transaction of their busi- 
 ness, and such as they may acquire in the en- 
 forcement and collection of debts or liabilities 
 to them, which lands so acquired by any such 
 Corp. shall be alienated by it within 5 years 
 after its acquisition to some one not interested 
 directly or indirectly in said Co. * * * 
 
 Sec. 28, Ch. 15, Acts 31st Leg. * * * it shall 
 be unlawful for any State bank or Tr. Co. to 
 own more than 10% of the capital stock of 
 any other Bkg. Corp., or to make a loan, 
 secured by the stock of any other Bkg. Corp., 
 if by the making of such loan the total stock 
 of such other Bkg. Corp. held by it as collat- 
 eral will exceed in the aggregate 10% of the 
 capital stock of such other Bkg. Corp. unless 
 the ownership or the taking of a greater per- 
 centage of such capital stock as collateral shall 
 be necessary to prevent loss upon a debt pre- 
 viously contracted in good faith, and any such 
 excess so taken as collateral or owned by such 
 State bank shall not be held as collateral nor 
 owned by it for a longer period than 6 months. 
 
 Sec. 36. No State bank* shall make any loan 
 or discount on the security of the shares of 
 its own capital stock, nor be the purchaser or 
 holder of any such shares, unless such secu- 
 rity or purchase shall be necessary to prevent 
 a loss upon a debt previously contracted in 
 good faith ; and stock so purchased or ac- 
 quired shall, within 6 months from the time 
 of its purchase, be sold or disposed of at pub- 
 
 * The Dept, of Ins. and B’k’g. construes “State 
 Banks,” in this Sec., to mean all classes of State 
 B’k’g. Corps. 
 
Trust Companies. 
 
 TEXAS. 
 
 lie or private sale, or, in default thereof, such 
 State bank shall be considered to have its 
 capital stock impaired to the extent of the par 
 value of such shares. 
 
 Sec. 48. It shall be unlawful for any State 
 hank or Bkg. and Tr. Co. in this State to 
 directly or indirectly loan to the Com. of Ins. 
 and Bkg. or any other person interested in or 
 employed by the Dept, of Ins. and Bkg. * * * 
 
 TRUST COMPANIES. 
 
 Sec. 8, Ch. 10, Acts 29th Leg. Any 5 or 
 more persons * * * who shall have associated 
 themselves * * * as provided by law for the 
 purpose of establishing a banking and trust 
 company, may be incorporated under any name 
 or title designating such business. Trust Com- 
 pany wherever appearing in the following sec- 
 tions of this act, is intended to mean Banking 
 and Trust Company, * * * 
 
 Sec. 11. Corps, may be created * * * for 
 the purpose of establishing a bank of deposit 
 and discount, or both of deposit and discount, 
 with the powers set out in Sec. 3 of this act, 
 and any one or more of the following pur- 
 poses : 
 
 * * * (2) To receive deposits or trust mon- 
 eys, securities and other personal property 
 from any person or Corp., and to loan money 
 on real or personal securities. 
 
 (3) To lease, hold, purchase and convey 
 any and all real property necessary in the 
 transaction of its business, or which it shall 
 acquire in satisfaction or partial satisfaction 
 of debts due the Corp., under sales, judgments 
 or mortgages, or in settlement or partial set- 
 tlement of debts due the Corp. by any of its 
 debtors. 
 
 Which shall be alienated in good faith to 
 some person other than some one interested 
 in the Co., within 5 years from the date of 
 its acquisition. 
 
 * * * (9) To purchase, invest in, guarantee 
 and sell stocks, bills of exchange, bonds and 
 mortgages and other securities; and when 
 
 5 
 
TEXAS. 
 
 Savings Banks. 
 
 moneys, or securities for moneys, are bor- 
 rowed or received on deposit, or for invest- 
 ment, the bonds or obligations of the Co. may 
 be given therefor; * * * 
 
 Note. — Bank and Tr. Cos., not exercising bank- 
 ing privileges, may loan more than 50% of its 
 securities on real estate, and may guarantee the 
 payment of notes in excess of the amount it may 
 loan to one person. (Opinion of Att. Gen’s Dept.) 
 
 Everything under State Banks of Deposit 
 and Discount applies to Trust Companies. 
 
 
 SAVINGS BANKS.* 
 
 Sec. 17, Ch. 10, Acts 29th Leg. All sums so 
 received, except those held as bailee, for safe 
 keeping and storage only, and the income de- 
 rived therefrom, and all moneys intrusted to 
 any such corporation by order of court shall be 
 invested as follows : 
 
 (1) In bonds or interest bearing notes or 
 obligations of the U. S., or of those for which 
 the faith of the U. S. is pledged for the pay- 
 ment of principal and interest. 
 
 (2) In bonds of the State of Texas, or of 
 any State in the Union that has not, within 
 the last 5 years previous to making such in- 
 vestments, defaulted in the payment of any 
 part of either principal or interest thereof. 
 
 (3) In bonds of any city, county, town or 
 Sch. Dist. of this State, which has not de- 
 faulted in the payment of any part of either 
 principal or interest thereof, within 5 years 
 previous to making such investments. 
 
 (4) In the 1st Mtg. bonds of any steam 
 
 * “We have no Sav. Bank Corps, incorporated 
 under this law and have never had * * * but 
 provision is made under Sec. 13, so that any State 
 Bank, any B’k’g. & Tr. Co., or any Tr. Co., incor- 
 porated under the provisions of that law, may es- 
 tablish and maintain a ‘Sav. Dept.’ entirely sep- 
 arate from its general commercial business, upon 
 the plan therein outlined, which will explain why 
 there are no ‘Sav. Banks’, proper in this State, 
 because the same end can be reached by conduct- 
 ing a ‘Sav. Dept.’, and the restrictions are not so 
 great.” Commissioner for the Dept, of Ins. and 
 B’k’g. 
 
 6 
 
Savings Banks. 
 
 TEXAS. 
 
 R. R., the income of which is sufficient to pay 
 all operating expenses and fixed charges, which 
 has its domicile in the State. 
 
 (5) In bonds or notes secured by 1st Mtg. 
 or deed of trust on unincumbered real estate, 
 worth at least twice the amount loaned thereon. 
 But the mortgage investment of such Corp. 
 shall not exceed 60% of its total assets. 
 
 (6) In real estate sufficient to reasonably 
 furnish a domicile for such Corp., and no more. 
 
 Sec. 18. It shall be the duty of the directors 
 of any such Savs. bank, as soon as practicable, 
 to invest such fund of money, by purchase or 
 otherwise in the securities mentioned in Sec. 
 17 of this act, and from time [to time] to sell 
 and reinvest the proceeds of such investments, 
 but for the purpose of meeting current de- 
 mands and expenses in excess of the receipts 
 any of the securities may be sold or pledged; 
 and there shall be kept an available cash fund 
 of not less than 15% of the whole amount of 
 its assets, and the same or any part thereof 
 may be kept on hand or on deposit, payable 
 on demand, in any bank or banking Asso. of 
 the State of Tex., or under the laws of the 
 U. S., approved by the Supt. of Bkg., and hav- 
 ing a paid up capital stock of $50,000, or more, 
 but the deposits in any one bank or Tr. Co. 
 shall not exceed 20% of the total deposits, 
 capital and surplus of such Sav. Bank. 
 
 Sec. 20. It shall be lawful for any Sav. 
 Bank to purchase, hold, sell and convey real 
 estate, as follows : 
 
 (1) The house and lot on which is the domi- 
 cile of such Corp., and from portions of which, 
 not required for its own use, any revenue may 
 be derived, not to exceed in value 20% of the 
 capital of such Asso. 
 
 (2) Such as shall be purchased by it at sales 
 upon foreclosure of Mtgs. or deeds of trust 
 owned by such Corps., or upon judgments or 
 decrees rendered for debts due to it, or pur- 
 chased or taken in settlement to secure such 
 debts, and all such interests shall be sold by 
 such Corp. within 5 years after the same shall 
 be vested in it, unless the Supt. shall extend 
 
 7 
 
TEXAS. 
 
 Savings Banks. 
 
 the time within which such sale shall be made. 
 If [No] such Corp., or any person acting in 
 its behalf, shall negotiate, take or receive a 
 fee, brokerage, commission or gift or other 
 consideration, for or on account of the loan 
 made by and in behalf of such Corp., other 
 than appears on the face of the note or con- 
 tract by which such loan purports to be made. 
 But nothing contained herein shall apply to 
 any reasonable charges for services in the 
 examination of title, and the preparation of 
 conveyance to such Corp. as security for its 
 loan. All sums paid for services, fees, or 
 otherwise, to a member of the board of direc- 
 tors shall be reported in detail at each regular 
 meeting of the directors. All applications for 
 loans shall be made in writing through the 
 treasurer of the Corp., who shall keep a rec- 
 ord thereof, showing the date, name of appli- 
 cant, amount asked for and security offered, 
 and shall cause the same to be presented to 
 the board of directors, but at the sale of said 
 lands, real estate, said Corp. shall not repur- 
 chase said real estate directly or indirectly ; 
 nor shall any officer, director or person hold- 
 ing stock in said Corp. be a purchaser of said 
 real estate for the use of the Corp. 
 
 Sec. 22. * * * no director or officer of such 
 Corp. shall, directly or indirectly for himself, 
 or as an agent or partner of others, borrow 
 any of the funds of the Corp., or funds in its 
 custody, or in any manner use the same, ex- 
 cept to make necessary current payments for 
 the Corps., or to make investments, or to de- 
 posit for safety, under the direction and au- 
 thority of the board of directors; nor shall 
 any director or officer of such Corp. be an 
 indorser or surety, or in any way be an obligor 
 for moneys loaned by or borrowed of the 
 Corp. * * * 
 
 See also Sec. 7 under State Banks of De- 
 posit and Discount. 
 
 8 
 

 I 
 
 V 
 
» 
 
Savings Banks. 
 
 VERMONT. 
 
 Municipal Law in red. Street Railway Law in 
 Railroad Law in green. Thrown. 
 
 Other matter in black. 
 
 VERMONT. 
 
 Corrected to and including 1912-1913 Session. 
 
 SAVINGS BANKS. 
 
 Sec. 8 . The assets of banks shall be in- 
 vested as follows : 
 
 ist. In ist Mtgs. of unencumbered real estate, 
 not to exceed in each case 60% of the value of 
 such real estate, if located in Vt., and not to 
 exceed 50% of the value of such real estate 
 if located elsewhere. Not less than i-6th of 
 the amount of such Mtgs. shall be upon real 
 estate in this state, treating Mtgs. made on 
 lands in an adjoining state within 20 miles of 
 the Bk. making such loan as Vt. Mtg. loans, 
 and not more than 80% of the amount of the 
 assets shall be invested in Mtgs. of real 
 estate; Provided that not exceeding 60% of 
 the amount of such assets may be invested in 
 Mtgs. of real estate outside of this state. No 
 investment shall be made on Mtgs. of real 
 estate outside of Vt. which is unimproved and 
 unproductive and the amount of such invest- 
 ments on Mtgs. in Vt. shall not be more than 
 40% of the value thereof. No Bk. shall loan 
 to any person, partnership, association, or 
 corporation upon real estate Mtg. (treating 
 loans to the individual members of a partner- 
 ship as loans to the partnership) more than 
 $30,000, and in addition thereto 1% of the de- 
 posits of such Bk. in excess of $1,000,000. No 
 Mtg. investment shall be made except upon 
 the written approval of at least 3 trustees of 
 the Bd. of Inv., who shall certify in writing 
 according to their best judgment the value of 
 the premises mortgaged or to be mortgaged. 
 At the expiration of every Mtg. loan made for 
 a period of 5 yrs or more, such loan shall not 
 be extended or renewed unless 3 members of 
 the Bd. of Inv. certify in writing the value 
 in their best judgment of the mortgaged prem- 
 ises and unless such value meets the require- 
 ments above prescribed. 
 
 1 
 
VERMONT. 
 
 Savings Banks. 
 
 When buildings are included in the valua- 
 tion of real estate upon which an investment 
 is made, they shall be insured by the mort- 
 gagor in such Co. as the trustees or Bd. of 
 Inv. direct, and the policies of Ins. shall be 
 duly assigned, or the loss made payable to 
 such Bk., and such Bk. may renew such policy 
 of Ins. in the same or in another Co., as 
 said trustees or Bd. of Inv. elect, from yr. to 
 yr., or for a longer or shorter period, if the 
 mortgagor neglects so to do; and, when nec- 
 essary, the treasurer may sign premium notes, 
 and may charge the amount paid for such 
 Ins. to the mortgagor. 
 
 2d. (a) In the public funds of the U. S. 
 
 or any of the states or the Dist. of Col. or 
 in public funds for the payment of principal 
 and interest of which the faith of the U. S. 
 is pledged. 
 
 (b) In the bonds or notes of counties, cities, 
 towns, villages, sch. dists. and water dists. of 
 the New Eng. States and of any incorporated 
 dist. in Vt. having the right to levy taxes in 
 payment of its debt. 
 
 (c) In the bonds or notes of towns, cities 
 and sch. dists., having a population according 
 to the last preceding U. S. or state census 
 of at least 1,000 and a debt not exceeding 
 5% of the last preceding valuation for the 
 assessment of taxes in N. Y., Penn., Ohio, 
 Mich., 111 ., Ind., Iowa, Wis. and Minn. 
 
 (d) In the bonds or notes of towns, cities 
 and sch. dists. having a population according 
 to the last preceding U. S. or state census 
 of at least 7,000 and a debt not exceeding 
 5% of the last preceding valuation for the 
 assessment of taxes in N. J., Kans., Neb., N. 
 D., S. D., Mo., Ore., Wash, and Cali. 
 
 (e) In the bonds of counties having a popu- 
 lation, according to the last preceding U. S. 
 or state census, of at least 50,000 and a debt 
 of not exceeding 3% of the last preceding 
 valuation for the assessment of taxes, and in 
 the bonds or notes of cities and sch. dists. 
 having a population, according to the last 
 preceding U. S. or state census, of at least 
 
 I 
 
 2 
 
Savings Banks. 
 
 VERMONT. 
 
 50,000 and a debt not exceeding 5% of the 
 last preceding valuation for the assessment of 
 taxes, in any of the states above named and 
 in Colo., Del., Geo., Md., Okl., Tex., Utah and 
 VV. Va. 
 
 (f) In the bonds or notes of a city in any 
 of the states above named having a popula- 
 tion according to the last preceding U. S. 
 or state census of at least 100,000 and a debt 
 not exceeding 7% of the last preceding valu- 
 ation for the assessment of taxes. 
 
 (g) In the bonds or notes of a city in any 
 of the states above named having a population 
 according to the last preceding U. S. or state 
 census of at least 200,000. 
 
 In subdivs. (c) and (d) the word “debt” 
 shall mean the gross debt less debts created 
 in anticipation of taxes to be paid within 
 1 year and the amount of any sinking funds 
 available for the payment of such debt; and 
 in subdivs. (e) and (f) the word “debt” 
 shall mean the gross debt, less debts created 
 in anticipation of taxes to be paid within 1 
 year, the amount of any sinking funds avail- 
 able for the payment of such debt and debts 
 created for supplying the inhabitants of the 
 municipality with water. 
 
 The foregoing does not authorize invest- 
 ments in R. R. aid bonds (except such as are 
 issued by municipalities in the state of Vt.) 
 or in bonds which are not direct obligations 
 of a municipality or in bonds of municipalities 
 which have within 20 yrs. repudiated or com- 
 promised the payment of any debt or de- 
 faulted for more than 90 days in the payment 
 of any debt, and the purchase of such securi- 
 ties is hereby prohibited. 
 
 3d. (a) In the notes or bonds of a R. R. 
 Corp. incorporated under the laws of Vt., 
 irrespective of the length of such road, or the 
 motive power thereof, when issued in accord- 
 ance with the laws of this state and in compli- 
 ance with the provisions hereinafter set forth 
 relating to bonds of New Eng. R. Rs. 
 
 (b) In the bonds or assumed bonds of a 
 R. R. Corp. incorporated in any of the New 
 
 3 
 
VERMONT. 
 
 Savings Banks. 
 
 Eng. States, at least of the R. R. of which 
 is located in said states, whether such cor- 
 poration is in possession of and is operating 
 its own road or is leased to another R. R. 
 Corp. ; Provided, either that such bonds shall 
 be secured by a ist Mtg. of the whole or a 
 part of the R. R. and R. R. property of such 
 Corp., or by a refunding Mtg. as described 
 in paragraphs (3) or (4) of subdiv. (g) 
 or that if the R. R. and R. R. property of 
 such Corp. are unencumbered by Mtg. such 
 bonds shall be issued under the authority of 
 1 of said states which provides by law that 
 no such R. R. Corp. which has issued bonds 
 shall subsequently execute a Mtg. upon its 
 road, equipment and franchise, or upon any 
 of its real or personal property, without in- 
 cluding in and securing by such Mtg. all 
 bonds previously issued and all its pre-exist- 
 ing debts and liabilities, which provision, so 
 enacted in such state, shall have been ac- 
 cepted by the stockholders of such corpora- 
 tion ; and provided, that such corporation has 
 paid in dividends in cash an amount equal 
 to not less than 4% per annum on all its out- 
 standing issues of capital stock in each fiscal 
 yr. for the 5 yrs next preceding such in- 
 vestment. 
 
 (c) In the ist Mtg. bonds or assumed 
 ist Mtg. bonds or in the bonds secured' by 
 a refunding Mtg. as described in paragraphs 
 (3) or (4) of subdiv. (g) of a R. R. Corp. 
 incorporated in any of the New Eng. States, 
 the R. R. of which is located wholly or in 
 part therein, which have been guaranteed as 
 to principal and interest by a R. R. Corp., 
 described in subdivs. (a) or (b) which is in 
 possession of and is operating its own road; 
 
 (d) No bond shall be made a legal invest- 
 ment by subdiv. (b) unless the Corp. which 
 issued or assumed such bond has, during its 
 fiscal yr. next preceding the date of such 
 investment, paid in dividends on its capital 
 stock an amount equal to J/Jrd of the total 
 amount of interest paid on all its direct and 
 assumed funded debt. 
 
 4 
 
Savings Banks. 
 
 VERMONT. 
 
 No bond shall be made a legal investment 
 by subdiv. (c) unless the Corp. which guar- 
 anteed such bond has, during its fiscal yr. 
 next preceding such investment, paid in divi- 
 dends on its capital stock an amount equal 
 to R$rd of the total amount of interest paid 
 on all its direct, assumed and guaranteed 
 funded debt. 
 
 No bond shall be made a legal investment 
 by subdiv. (b) or (c) unless the Corp. owns 
 in fee not less than ioo miles of standard 
 gauge R. R. (exclusive of sidings) within the 
 Tj . S. 
 
 (e) In the Mtg. bonds, as described in any 
 of the following subdivs. of this clause, of 
 any R. R. Corp. incorporated under the laws 
 of any of the U. S. : 
 
 Provided, that during each of the 10 fiscal 
 yrs. of such R. R. Corp. next preceding the 
 date of such investment, — 
 
 (1) Such R. R. Corp. owned in fee not 
 less than 500 miles of standard gauge R. R., 
 exclusive of sidings, within the U. S., or, if 
 such Corp. owned in fee less than 500 miles 
 of such R. R., the gross earnings of such 
 Corp., reckoned as hereinafter provided, shall 
 have been not less than $15,000,000; 
 
 (2) Such R. R. Corp. shall have paid the 
 matured principal and interest of all its Mtg. 
 debt; 
 
 .( 3 ) Such R. R. Corp. shall have paid in 
 dividends in cash to its stockholders an 
 amount equal to at least 4% upon all its out- 
 standing capital stock; 
 
 (4) The gross earnings from the operation 
 of the property of such R ; R. Corp., includ- 
 ing therein the gross earnings of all R. Rs. 
 leased and operated or controlled and oper- 
 ated by said Corp., and the gross earnings 
 from the sale of coal from mines owned or 
 controlled by it, shall not have been less in 
 amount than 5 times the amount necessary 
 to pay the interest payable upon its entire out- 
 standing debt, the rentals of all leased lines, 
 and the interest on all the outstanding debt 
 of R. Rs. controlled and operated which is 
 
VEBMONT. 
 
 Savings Banks. 
 
 not owned by said Corp. after deducting from 
 said interest and rentals interest and divi- 
 dends received from the stocks, bonds or 
 notes of R. R. Corps, not operated by said 
 Corp., which have been deposited with a trus- 
 tee as the only security to secure the pay- 
 ment of bonds or notes issued by said Corp., 
 but not in excess of the interest on said last- 
 named bonds or notes; 
 
 And further provided, that, — 
 
 ( 5 ) No bonds shall be made a legal invest- 
 ment by subdiv. (g) in case the Mtg. secur- 
 ing the same shall authorize a total issue of 
 bonds which, together with all outstanding 
 prior debts of the issuing or assuming Corp., 
 including all bonds not issued that may legally 
 be issued under any of its prior Mtgs. or of 
 its assumed prior Mtgs., after deducting there- 
 from, in case of a refunding Mtg., the bonds 
 reserved under the provisions of said Mtg. 
 to retire prior lien debts at maturity, shall 
 exceed 3 times the outstanding capital stock 
 of said Corp. at the date of such investment; 
 
 (6) No bonds shall be made a legal invest- 
 ment by subdiv. (i) or (j) in case the Mtg. 
 securing the same shall authorize a total is- 
 sue of bonds which, added to the total debt 
 of the guaranteeing Corp. as defined in para- 
 graph 5, including . therein the authorized 
 amount of all previously guaranteed bonds 
 issues, shall exceed 3 times the capital stock 
 of such guaranteeing Corp. outstanding at the 
 date of such investment; nor in case at said 
 date the total debt of the Corp. which issued 
 said bonds shall exceed 3 times its outstand- 
 ing capital stock; 
 
 In the case of a Mtg. executed prior to the 
 passage of this act^ under which the total 
 amount of bonds which may be issued is not 
 specifically stated, the amount of bonds out- 
 standing thereunder at the date of such in- 
 vestment shall be considered, for the pur- 
 poses of paragraph 5 and of this paragraph, 
 as the total authorized issue. 
 
 (f) Whenever the term “ first mortgage ” 
 is used in the following subdivs., it shall 
 
Savings Banks. 
 
 VERMONT. 
 
 mean, unless otherwise qualified, a ist Mtg. 
 on not less than 75% of the R. R. owned in 
 fee at the date of the Mtg. by the R. R. Corp, 
 on the R. R. of which said mortgage is a 
 lien, but in no case on less than 100 continu- 
 ous miles of standard gauge R. R., exclusive 
 of sidings; Provided, that, — 
 
 75% of the R. R. subject to the lien of 
 said Mtg. is connected; 
 
 For 5 yrs prior to the date of investment 
 therein all the R. R. subject to the lien of 
 said Mtg. at the date of execution thereof has 
 been operated by, and its operations included 
 in, the operations of the R. R. Corp. which 
 issues, assumes or guarantees said bonds ; # 
 
 The date of said Mtg. is at least 5 yrs. prior 
 to the date of such investment; except that a 
 ist Mtg. given in substitution for and not 
 greater in amount than such a 1st Mtg., and 
 covering the same R. R. property, shall be 
 considered to be in accordance with this re- 
 quirement. 
 
 (g) Bonds issued or assumed by a R. R. 
 Corp. described in subdiv. (e) which are se- 
 cured by a Mtg. which was at the date thereof 
 or is at the date of such investment: 
 
 (1) A ist Mtg. on a R. R. owned in fee 
 by the Corp. issuing or assuming said bonds 
 except that, if it is not a ist Mtg. on 75% 
 of all such R. R, owned in fee by said Corp., 
 it shall be a ist Mtg. on at least 75% of the 
 R, R. subject to the lien of said Mtg. at the 
 date thereof; but if any stocks or bonds are 
 deposited with the trustee of said Mtg. as 
 part security therefor, representing or cover- 
 ing R. R. mileage not owned in fee, the bonds 
 secured by said Mtg. shall not become legal 
 investments unless said Corp. owns in fee 
 at least 75% of the total mileage which is sub- 
 ject to the lien of said Mtg. and which is rep- 
 resented or covered by said stocks or bonds; 
 
 (2) A ist Mtg., or a Mtg. or trust inden- 
 ture which is in effect a ist Mtg. upon all the 
 R. R. subject to the lien of said Mtg. or trust 
 indenture by virtue of the irrevocable pledge 
 with the trustee thereof of an entire issue 
 
 7 
 
VERMONT. 
 
 Savings Banks. 
 
 or issues of bonds which are a 1st lien, upon 
 the R. R. of a R. R. Corp. which is owned 
 and operated, controlled and operated or leased 
 and operated by the Corp. issuing or assum- 
 ing said bonds; 
 
 (3) A refunding Mtg. which covers at least 
 75% of the R. R. owned in fee by said Corp. 
 at the date of said Mtg. and provides for 
 the retirement of all outstanding Mtg. debts 
 which are a prior lien upon said R. R. owned 
 in fee and covered by said refunding Mtg. 
 at the date thereof; but if any of the bonds 
 which said refunding Mtg. is given to refund 
 are secured on a R. R. not owned in fee by 
 the Corp. executing said refunding Mtg., 
 there shall be conveyed and assigned to the 
 trustee of said refunding Mtg« either 
 
 At least 75% of the R. R. on which each 
 issue of bonds to be refunded is secured, 
 free from any Mtg. lien except that of the 
 Mtg. or Mtgs. securing the bonds to be re- 
 funded, or 
 
 At least 75% of the outstanding bonds of 
 each issue which is secured by a Mtg. lien 
 upon such R. R. ; and all of said R. R. not 
 owned in fee which is so subjected to the lien 
 of said refunding Mtg. shall be the R. R. of 
 one or more R. R. Corps, which are owned 
 and operated, controlled and operated, or 
 leased and operated by the Corp. issuing or 
 assuming said refunding Mtg. bonds; but in 
 no case shall the bonds secured by said refund- 
 ing Mtg. become a legal investment unless 
 they mature at a later date than any bonds 
 which said refunding Mtg. is given to refund, 
 nor unless the total mileage subjected to the 
 lien of said refunding Mtg. in accordance 
 with the requirements of this paragraph is 
 at least 25% greater than the mileage cov- 
 ered by any 1 of the Mtgs. securing bonds 
 which said refunding Mtg. is given to refund. 
 
 (4) A Mtg. upon not less than 10% of the 
 R. R. exclusive of sidings, owned in fee at 
 the date of said Mtg. by the corporation issu- 
 ing or assuming said bonds, but in no case 
 
Savings Banks. 
 
 VERMONT. 
 
 on less than 500 continuous miles of standard 
 gauge R. R. : Provided, that,-— 
 
 Said Mtg. is a 1st or 2d lien upon not less 
 than 75% of the total R. R. covered by said 
 Mtg. at the date thereof, and which pro- 
 vides for the retirement of all Mtg. debts 
 which are a prior lien upon said R. R. owned 
 in fee and covered by said Mtg., at the date 
 of the execution thereof; 
 
 The bonds secured by said Mtg. mature at 
 a later date than, and cover a mileage at least 
 25% greater than is covered by, any of 
 the bonds secured by a prior lien Mtg. so to be 
 retired; 
 
 The date of said Mtg. shall be at least 5 yrs. 
 prior to the date of such investment. 
 
 (h) Mtg. bonds or bonds secured by Mtg. 
 bonds which are a direct obligation of, or 
 which have been assumed, or which have been 
 guaranteed by endorsement as to both princi- 
 pal and interest, by a R. R. Corp whose 
 refunding Mtg. bonds are made a legal in- 
 vestment under paragraphs (3) or (4) of 
 subdiv. (g) : Provided, that: 
 
 Said bonds are prior to and are to be re- 
 funded by such refunding Mtg.; 
 
 Said refunding Mtg. covers all the real prop- 
 erty upon which the^ Mtg. securing said un- 
 derlying bonds is a lien ; 
 
 In the case of bonds so guaranteed or as- 
 sumed the Corp. issuing said bonds is owned 
 and operated, controlled and operated, or 
 
 leased and operated, by said R. R. Corp. 
 
 (i) Bonds which have been guaranteed by 
 endorsement as to both principal and interest 
 by a R. R. Corp. which has complied with all 
 the provisions of subdiv. (e) : Provided, that, — 
 
 Said bonds are secured by a 1st Mtg. on 
 the R. R. of a R. R. Corp. which is owned 
 and operated, controlled and operated, or 
 
 leased and operated, by the Corp. guaranteeing 
 said bonds; 
 
 In the case of a leased R. R., the entire 
 capital stock of which, except shares quali- 
 fying directors, is not owned by the lessee, 
 the rental includes an amount to be paid to 
 
 9 
 
Savings Banks. 
 
 the stockholders of said leased R. R. equal 
 to at least 4% per annum upon that portion 
 of the entire capital stock thereof outstanding 
 which is not owned by the lessee. 
 
 (j) 1st Mtg. bonds of a R. R. Corp. which 
 during each of its 10 fiscal yrs. next preced- 
 ing the date of such investment, has complied 
 with all the requirements of paragraphs (2), 
 (3) and (4) of subdiv. (e) Provided that said 
 bonds are guaranteed by endorsement as to 
 both principal and interest by a R. R. Corp. 
 which has complied with all the requirements 
 of subdiv. (e) preceding paragraph (5), not- 
 withstanding that the R. R. of said issuing 
 Corp. is not operated by said guaranteeing 
 Corp. 
 
 (k) Bonds which have been or shall become 
 legal investments under any of the provisions 
 of this act shall not be rendered illegal al- 
 though the Corp. issuing, assuming or guar- 
 anteeing such bonds shall fail for a period 
 not exceeding 2 successive fiscal yrs. to com- 
 ply with the requirements of paragraph (4) 
 of subdiv. (e) ; but no further investment in 
 the bonds issued, assumed or guaranteed by 
 said Corp. shall be made during said period. 
 If, after the expiration of said period, said 
 Corp. complies for the following fiscal yr. 
 with all the requirements of subdiv. (e), it 
 shall be regarded as having complied there- 
 with during said period. 
 
 (l) Bonds which have been or shall become 
 legal investments under any of the provisions 
 of this act shall not be rendered illegal, al- 
 though the property upon which they ar^ se- 
 cured has been or shall be conveyed to or 
 legally acquired by another R. R. Corp., and 
 although the Corp. which issued or assumed 
 said bonds has been or shall be consolidated 
 with another R. R. Corp., if the consolidated 
 or purchasing Corp. shall assume the payment 
 of said bonds and so long as^ it shall continue 
 to pay regularly interest or dividends, or both, 
 upon the securities issued against, in ex- 
 change for, or to acquire the stock of the 
 Corp, consolidated, or the property purchased, 
 
Savings Banks. 
 
 VERMONT. 
 
 or upon securities subsequently issued in ex- 
 change or substitution therefor, to an amount 
 at least equal to 4% per annum upon the capi- 
 tal stock, outstanding at the time of such 
 consolidation or purchase, of said Corp. which 
 issued or assumed said bonds. 
 
 (m) If a R. R. Corp. which has complied 
 with all the requirements of subdiv. (e) pre- 
 ceding paragraph 5, except that the period 
 of compliance is less than 10, but not less 
 than 5 successive yrs., shall be, or shall have 
 been, thereupon consolidated or merged with, 
 or its R. R. purchased and all of the debts 
 of such Corp. assumed by, another R. R. 
 Corp. incorporated under the laws of any of 
 the U. S., such Corp. so succeeding shall be 
 considered as having complied with all the 
 provisions of subdiv. (e) preceding paragraph 
 5 during those successive yrs. next preceding 
 the date of such consolidation, merger or 
 purchase in which all said consolidated, merged 
 or purchased Corps., if considered as 1 con- 
 tinuous Corp. in ownership and possession, 
 would have so complied: Provided, that said 
 succeeding Corp. shall continue so to comply 
 for a further period which shall make such 
 compliance equivalent to at least 10 succes- 
 sive vrs., but which shall be in no case less 
 than the 2 fiscal yrs. next following said con- 
 solidation, merger or purchase. 
 
 4th. (a) In the stock of any Nat. Bk. in 
 the New Eng. States and the State of N. Y. ; 
 in the stock of any Banking Asso. or Tr. Co. 
 incorporated under the authority of and lo- 
 cated in this state; but no Bk. shall hold Bk. 
 stock both by way of investment and as se- 
 curity for loans in excess of 10% of its de- 
 posits, nor, in any 1 Bk., more than 5% of 
 its deposits or more than $35,000, or more 
 than 10% of the capital stock of any 1 Bk. 
 
 5th. In loans or renewals of loans of the 
 class hereinafter described, payable and to 
 be paid or renewed at a time not exceeding 1 
 yr. from the date thereof, but not more than 
 J^rd of the assets of a Bk. shall be so in- 
 
 11 
 
VERMONT. 
 
 Savings Banks. 
 
 vested ; nor shall a Bk. loan to any person, 
 partnership, association or corporation upon 
 personal security (treating loans to the in- 
 dividual members of a partnership as loans to 
 the partnership) more than $10,000 until a 
 Bk’s deposits amount to $1,000,000, after 
 which the sums so loaned may be increased 
 1% of the deposits in excess of $1,000,000 
 up to, but not exceeding, $50,000, or (in cases 
 where 10% of the capital and surplus exceed 
 $50,000) up to, but not exceeding 10% of 
 the capital, if any, and surplus ; but this 
 limitation shall not apply to the purchase of 
 municipal or R R bonds, or to notes with 
 such bonds as collateral. 
 
 (a) A note bearing as makers, sureties or 
 endorsers the signatures of at least 2 ap- 
 proved names of residents of this state, or 
 of persons who reside within 50 miles of the 
 Bk. making the loan. 
 
 (b) A note or accepted draft given by in- 
 dividuals, firms or corporations residing with- 
 out the state, for goods manufactured within 
 the state and payable to individuals, firms or 
 corporations located within the state and en- 
 dorsed by at least 1 responsible citizen of the 
 state. 
 
 (c) A note of a corporation incorporated 
 by this state with 1 or more substantial sure- 
 ties resident in the state. 
 
 (d) A note of a responsible borrower with 
 a pledge as collateral, in such form as the 
 Bk. Commissioner shall approve of. 
 
 (1) 1 or more 1st Mtgs. of real estate such 
 as might be lawfully purchased by a Bk., as 
 in cases of Mtgs. bought by the Bk., and that 
 the amount of such note is not in excess of 
 the amount which the Bk. might loan on a 
 note secured by Mtg. on said land. 
 
 (2) Municipal bonds in which the Bk. 
 might legally invest at no more than 90% 
 of their market value; R. R. bonds in which 
 the Bk. might legally invest at no more than 
 80% of tlieir market value; and Bk. stocks 
 
 12 
 
Savings Banks. 
 
 VERMONT. 
 
 in which the Bk. might legally invest at no 
 more than 80% of their market value. 
 
 (3) Deposit books or certificates of depos- 
 it of depositors in Bks. of this state, includ- 
 ing Nat. Bks., at their full value and in banks 
 of any of the New Eng. States and of N. Y., 
 under state or federal supervision, at no 
 more than 90% of the amount of deposits 
 therein shown, provided written notice of 
 such assignments has been given to the Bk. 
 carrying the deposit. 
 
 6th. 5% of the deposits of a Bk. may be 
 invested in the purchase of a suitable building 
 for the convenient transaction of its business, 
 or a site therefor and the erection or repairs 
 of a building thereon, from portions of which 
 not required for its use a revenue may be 
 derived. 
 
 7th. A Bk. may hold real estate acquired by 
 the foreclosure of a Mtg. thereon, owned by 
 or pledged to such Corp., or by purchase 
 at sales made under the provisions of such 
 Mtg., or upon judgment for debts due, or 
 in settlements effected to secure such debts; 
 and such real estate shall be sold by such Corp. 
 as soon as a reasonable price can be obtained 
 therefor and within 5 yrs. after the same 
 is vested in such Corp., except when a ma- 
 jority of the trustees of such Corp. shall 
 make application in writing to the Bk. Com- 
 missioner, stating that, in their opinion, the 
 interests of such Corp. require that such real 
 estate be held for a longer period than 5 
 yrs.; in which event, said Commissioner may 
 extend the time of holding such real estate 
 not to exceed 5 yrs. 
 
 8th. A Bk. may hold stocks, bonds, notes 
 or other securities not the subject of legal 
 investment, acquired in settlements effected to 
 secure or adjust loans; but unless the length 
 of time such securities may be held is ex- 
 tended, as provided in the preceding clause, 
 they shall be sold within 5 yrs. after being 
 acquired. 
 
 Sec. 33. * * * * 2-5ths of such reserve may 
 be in U. S. or state bonds or in the bonds 
 
 13 
 
VERMONT. 
 
 Trust Companies. 
 
 of any city of the U. S. of at least 200,000 
 inhabitants according to the last preceding 
 U. S. census. 
 
 No new loans may be made when a bank’s 
 reserve is not in accord with the require- 
 ments of this section. 
 
 Sec. 54. Nothing in this act shall affect 
 the legality of investments heretofore made 
 or of transactions heretofore had, pursuant 
 to the law in force when such investments 
 were made or transactions had, but the 
 change of such investments for those named 
 in this Chap, shall be made gradually by 
 the sale or redemption of the securities so 
 invested, in such manner as to prevent loss or 
 embarrassment in the business of such Corp., 
 and unnecessary loss or injury to the borrow- 
 ers upon such securities. 
 
 Sec. 60. A trustee or officer of a Sav. 
 Bk. shall not, directly or indirectly, either 
 for himself or as the partner of others, bor- 
 row or use its funds or deposits, or sign 
 any note, as surety, upon which any of such 
 deposits are loaned. 
 
 TRUST COMPANIES. 
 
 Sec. 71. No loan shall be made to an officer, 
 director or employee of any Tr. Co. without 
 the written consent of a majority of the di- 
 rectors ; and such loan shall not at any one 
 time, directly or indirectly, exceed 5% of the 
 capital stock actually paid in, but the dis- 
 count of bona fide bills of exchange drawn 
 against existing values, and the discount of 
 commercial or business paper actually owned 
 by such director, officer or employee negotiat- 
 ing the same to an amount not exceeding 
 $10,000 or a loan upon the pledge of any 
 of the securities which are legal investments 
 and subject to the restrictions thereof to an 
 amount not exceeding the same sum, shall 
 not be prohibited by this section. No loan 
 shall be made by such Corp. upon its own 
 stock as collateral. 
 
 Everything under Savings Banks, with the 
 exception of Sec. 60, also applies to Trust Cos. 
 
LIST OF RAILROAD BONDS, 
 LEGAL INVESTMENTS 
 
 FOR 
 
 VERMONT STATE BANKS 
 March i, 1913, 
 
 The following is a list of railroad bonds 
 which, in the opinion of the Banking Depart- 
 ment, are now legal investments under the pro- 
 vision of section 8 of Act No. 158 of the Ses- 
 sion Laws of 1910, and Act No. 167 of the 
 Session Laws of 1912, 
 
 1 
 
VERMONT. 
 
 ATCHISON, TOPEKA & SANTA EE RY. 
 
 Atch., Top. & S. Fe Ry. . 
 do East. Old. 
 
 do Trans. Sh. Line . 
 Chi. & St. Louis Ry . . 
 Chi., S, Fe & Cali. Ry. . 
 Hutchinson Southern Ry. 
 San F. & San Joa. V. Ry. 
 
 Gen. 
 
 1st 
 
 1st 
 
 ist 
 
 1st 
 
 ist 
 
 4s 
 
 4 s 
 
 4s 
 
 6s 
 
 5s 
 
 5s 
 
 5s 
 
 1995 
 
 1928 
 
 1958 
 
 1915 
 
 1937 
 
 1928 
 
 1940 
 
 i 
 
 BALTIMORE & OHIO SYSTEM 
 
 Baltimore & Ohio R.R. . 
 
 Ext. 
 
 4 S 
 
 1935 
 
 do ...... 
 
 .Prior Lien 3^s 
 
 1925 
 
 do 
 
 
 4s 
 
 1948 
 
 do 
 
 . S.W. Div. 3l4s 
 
 1925 
 
 BOSTON & MAINE SYSTEM 
 
 
 Ports., G. F. & Con. R.R. 
 
 
 4/4 s 
 
 1937 
 
 Conn. & Pass. Rivs. R.R. 
 
 
 4s 
 
 1943 
 
 Concord & Montreal R.R. 
 
 . Con. 
 
 4s 
 
 1920 
 
 St. J. & Lk. Champ. R.R. 
 
 ist 
 
 5s 
 
 1944 
 
 Wor., Nash. & Roch. R. R. ist 
 
 4 S 
 
 1930 
 
 do 
 
 ist 
 
 4 s 
 
 1913 
 
 do 
 
 ist 
 
 4s 
 
 1934 
 
 do 
 
 
 4 S 
 
 1935 
 
 CENTRAL OF NEW 
 
 JERSEY 
 
 SYSTEM 
 
 Cent. R.R.ofN.J. . . . 
 
 . Gen. 
 
 5s 
 
 1987 
 
 CHICAGO & NORTHWESTERN SYSTEM 
 
 Chicago & North w'n Ry. . 
 
 do Sinking Fund . 
 
 do “ 
 
 Cr Rap. & Mo. Riv. R.R. . 
 
 Northw’n Union Ry. . . . 
 
 Mil., Lk. Sh.&West'nRy. . 
 do Marshfield Ext. 
 
 do Michigan Div. . 
 
 do Ashland Div. . 
 
 do Ext. & Imp. . . 
 
 Wis. Northern R.R. . . . 
 
 Winona & St. Peter R.R. . 
 
 M inn. & Iowa Ry. . . . . 
 
 Princet’n & Northw'n Ry. . 
 
 Fre., Elk & Mo. Val. R. R. 
 
 Iowa, Minn. & No’w’n Ry. . 
 
 Sioux City & Pac. R.R. . . 
 
 Manitowoc, G.B.&N.W.Rv. 
 
 Gen. 4s 
 
 & 3 l /2S 
 
 Con. 
 
 7 s 
 
 Ext. 
 
 4s 
 
 Mort. 
 
 7s 
 
 ist 
 
 7 s 
 
 Con. 
 
 6s 
 
 1st 
 
 5s 
 
 ist 
 
 6s 
 
 ist 
 
 6s 
 
 Mort. 
 
 5s 
 
 1st 
 
 4S 
 
 ist 
 
 7s 
 
 ist 
 
 354 s 
 
 1st 
 
 354s 
 
 Con. 
 
 6s 
 
 ist 
 
 354s 
 
 ist 
 
 354s 
 
 ist 
 
 354s 
 
 1987 
 
 1915 
 
 1926 
 
 1916 
 
 1917 
 
 1921 
 
 1922 
 
 1924 
 
 1925 
 1929 
 1931 
 1916 
 1924 
 
 1926 
 1933 
 
 1935 
 
 1936 
 
 1941 
 
 « 
 
 2 
 
VERMONT. 
 
 CHICAGO, BUR. & QUINCY SYSTEM 
 
 Chi., Bur. & Quincy R.R. 
 
 . Gen. 
 
 4 s 
 
 1958 
 
 do Illinois Div. 1 
 
 Mort. 3^s & 4s 
 
 1949 
 
 do Iowa Div. 
 
 Mort. 4s & 
 
 5 s 
 
 1919 
 
 do Denver Ext. 
 
 
 4 S 
 
 1922 
 
 do Nebraska Ext 
 
 . . Mort. 
 
 4 s 
 
 1927 
 
 B. & M. Riv. R.R. in Neb. 
 
 . Con. 
 
 6s 
 
 1918 
 
 Republican Val. R.R. . . 
 
 . Mort. 
 
 6s 
 
 1919 
 
 Tarkio Val. R.R. . . . 
 
 ist 
 
 7s 
 
 1920 
 
 Nodaway Val. R.R. . . 
 
 ist 
 
 7s 
 
 1920 
 
 CHICAGO, MIL. & ST. PAUL SYSTEM 
 
 Chi., Mil. & St. Paul Ry. Gen. 3J/2S 
 
 & 4s 
 
 1989 
 
 do 
 
 La C. & D. Div. . 
 
 ist ■ 
 
 5 s 
 
 1919 
 
 do 
 
 Dubuque Div. . 
 
 ist 
 
 6s 
 
 1920 
 
 do 
 
 Wis.Val. Div. . 
 
 ist 
 
 6s 
 
 1920 
 
 do 
 
 Chi. & P.W.Div. 
 
 ist 
 
 5 s 
 
 1921 
 
 do 
 
 Wis. & M. Div. . 
 
 1st 
 
 5 s 
 
 1921 
 
 do 
 
 Chi. & L. S. Div. 
 
 ist 
 
 5 s 
 
 1921 
 
 do 
 
 Chi. & Mo. Riv. 
 
 
 
 
 
 Div. . . 
 
 ist 
 
 5 s 
 
 1926 
 
 do 
 
 Terminal . . . 
 
 1st 
 
 5 s 
 
 1914 
 
 Dak. & Gt. Southern Ry. 
 
 ist 
 
 5 s 
 
 1916 
 
 Fargo & Southern Ry. . . 
 
 1st 
 
 6s 
 
 1924 
 
 Mil. & North’n Railroad 
 
 Ext. 
 
 4^s 1913 
 
 CHICAGO, ROCK ISLAND & 
 
 PACIFIC 
 
 
 SYSTEM 
 
 
 
 
 Chi., Rock I’d & Pac. R.R. . 
 
 Mort. 
 
 6s 
 
 1917 
 
 do 
 
 do Ry. . 
 
 Gen. 
 
 4 s 
 
 1988 
 
 CHICAGO. ST. PAUL, MINNEAPOLIS 
 & OMAHA SYSTEM 
 
 Chi., St. P., M. & 0 . Ry. 
 
 Con. 3 V3S & 6s 
 
 1930 
 
 Chi., St. Paul & Minn. Ry. 
 
 _ ist 
 
 6s 
 
 1918 
 
 North Wisconsin Ry. 
 
 TSt 
 
 6s 
 
 1930 
 
 St. Paul & S’x City R.R. 
 
 ISt 
 
 6s 
 
 1919 
 
 DELAWARE & HUDSON SYSTEM 
 
 Delaware Sr Hudson Co. . ist Ref. 4s 1943 
 
 do do Canal Co. ist 7s 1917 
 
 Adirondack Rv ist 4 l /is 1942 
 
 Sch’tady & DuanVpr R.R. . ist 6s 1924 
 
 Albany & Susqueh’a R.R. . Convt’ble 3L2S T946 
 
 3 
 
VERMONT. 
 
 GREAT NORTHERN SYSTEM 
 
 Great Northern Ry . . .ist & Ref. 
 
 St. Paul, Minn. & M. Ry. . Con. 
 
 do Con. 
 
 do Con. 
 
 do Montana Ext. . 
 do Pacific Ext. . . 
 
 East’n Ry. of Minn., N'n Div. 
 Montana Central Ry. . . jst 
 
 do 1st 
 
 Wilmar & Sioux Falls Ry. ist 
 
 Spok'e Falls & North’n Ry. ist 
 
 Minneapolis Union Ry. . ist 
 
 do ....!. . ist 
 
 4*4 s 
 
 1961 
 
 4 s 
 
 1933 
 
 4/2S 
 
 1933 
 
 6s 
 
 1933 
 
 4s 
 
 1937 
 
 4s 
 
 1940 
 
 4 s 
 
 1948 
 
 5s 
 
 1937 
 
 6s 
 
 1937 
 
 5s 
 
 1938 
 
 6s 
 
 1939 
 
 6s 
 
 1922 
 
 5s 
 
 1922 
 
 3 s 
 4 S 
 
 1951 
 
 1951 
 
 ILLINOIS CENTRAL SYSTEM 
 
 Illinois Central R.R. . . .Ref. Mort. 4s 1955 
 do Sterling Ext’d . 4s 1951 
 
 do Gold Extended . 3L2S 1950 
 
 do Sterling . . . 
 
 do Gold .... 
 
 do Gold .... 
 
 do Gold Extended . 
 
 do Springfield Div. 1st 
 
 do K.&S.W.R.R. ist 
 
 Cairo Bridge . ist 
 
 do St. Louis Div. .ist 3s & 
 
 do Purch’d Lines . ist 
 
 do Collat’l Trust . ist 
 
 3 j /2S 1951 
 3/^s 1951 
 3V2 s 1951 
 5 s 1921 
 4s 1950 
 3V2 s 1951 
 3 t / 2 s 1952 
 3^s 1950 
 
 LAKE SHORE & MICHIGAN 
 SOUTHERN SYSTEM 
 
 L’ke Sh. & Mich. So. Ry. . ist Gen. 3J/2S 1997 
 
 LOUISVILLE & NASHVILLE SYSTEM 
 
 1940 
 1930 
 *937 
 i93t 
 
 Louisv'e & Nashv'e R.R. . 
 
 Unified 
 
 4s 
 
 do 
 
 Gen. 
 
 6s 
 
 do 
 
 ist 
 
 5 s 
 
 do 
 
 Trust 
 
 5 s 
 
 Evan., Hend. & Nash. Div. 
 
 Sink. F'd 
 
 6 s 
 
 Louis. Cin. & Lex. Ry. 
 Southeast & St. Louis Div. . 
 Mobile & Montgomery . . 
 
 Gen. 
 
 4 L£s 
 
 6 s 
 
 4 r /Ss 
 
 New Or.&M. Div., $5, 000,000 
 
 ist 
 
 6s 
 
 Pensacola & Atlantic R. R. 
 
 ist 
 
 6s 
 
 Nash., Flor. & Sheffield Ry. 
 
 ist 
 
 ss 
 
 1921 
 
 1945 
 
 1930 
 
 1921 
 
 1937 
 
VERMONT. 
 
 MAINE CENTRAL SYSTEM 
 
 Maine Central Railroad 
 Maine Central R. R. . 
 Maine Shore Line R.R. . 
 Pen. Shore Line R.R. 
 Portland Terminal Co. 
 Port’d & Ogdens’g Ry. . 
 
 Somerset Ry 
 
 do 
 
 Washington County Ry. 
 
 Col. Tr’st 
 
 5 s 
 
 1923 
 
 Ref, Mort. 
 
 
 1961 
 
 
 6s 
 
 1923 
 
 
 4 s 
 
 1920 
 
 ist 
 
 4 s 
 
 1961 
 
 
 4 l As 
 
 1928 
 
 ist 
 
 5 s 
 
 1917 
 
 ' Ref. 
 
 4 s 
 
 1955 
 
 ist 
 
 3 'A s 
 
 1954 
 
 MICHIGAN CENTRAL SYSTEM 
 
 Michigan Cent. R 1 R 
 
 ist 
 
 3'A s 
 
 1952 
 
 Mich.C. — Mich. Air Line 
 R.R 
 
 ist 
 
 4 s 
 
 1940 
 
 Mich. C. — Det. & B. C. R.R. 
 
 ist 
 
 5 s 
 
 1931 
 
 Mich. C. — Jack. L. & Sag. 
 R.R 
 
 ist 
 
 3 'A s 
 
 1951 
 
 NEW YORK CENTRAL SYSTEM 
 
 N. Y. C. & Hud. Riv. R.R. . 
 
 Mort. 
 
 3 x As 
 
 1997 
 
 Beecti Creek R.R. .... 
 
 ist 
 
 4S 
 
 1936 
 
 Mohawk & Malone Ry. . . 
 
 ist 
 
 4 s 
 
 1 99 * 
 
 B. & A. Railroad .... 
 
 Plain 
 
 3V2S 
 
 1952 
 
 do 
 
 Plain 
 
 4 s 
 
 T9T3 
 
 do 
 
 Plain 
 
 i’/lS 
 
 1951 
 
 do . 
 
 Plain 
 
 4s 
 
 1933 
 
 do . 
 
 Plain 
 
 4s 
 
 1934 
 
 do 
 
 Plain 
 
 4s 
 
 1935 
 
 do 
 
 Plain 
 
 4 t / 2 S 
 
 1937 
 
 NEW YORK, NEW HAVEN & 
 HARTFORD SYSTEM 
 
 N. Y., Prov. & Bos. R.R. . 
 
 
 4s 
 
 1942 
 
 Housatonic Railroad . . . 
 
 Con. 
 
 5 s 
 
 1937 
 
 Danbury & Norwalk R.R. 
 
 Con. 
 
 6s 
 
 1920 
 
 do 
 
 Con. 
 
 5 s 
 
 1920 
 
 Prov. & Springfield R.R. 
 
 rst 
 
 5 s - 
 
 1922 
 
 New IT. & Derby R.R. 
 
 Corl. 
 
 5 s 
 
 1918 
 
 N. H. & North’pton R. R. 
 
 Ref. Con. 
 
 4s 
 
 1956 
 
 Naugatuck Railroad . . . 
 
 ist 
 
 4s 
 
 1954 
 
 Providence Term. Co. . . 
 
 ist 
 
 4s 
 
 1956 
 
 n 
 
NEW YORK, NEW HAVEN & 
 HARTFORD SYSTEM — Concluded 
 
 Pawtuxet Val. R.R. . . . 
 
 1st 
 
 4s 
 
 1925 
 
 Bos. & N. Y. Air Line R.R. 
 
 1st 
 
 4 S 
 
 1955 
 
 New England Railroad . . 
 
 Con. 
 
 4 s 
 
 1945 
 
 do 
 
 Con. 
 
 53 
 
 1945 
 
 Old Colony Railroad . . . 
 
 
 43 
 
 1938 
 
 do 
 
 
 4 s 
 
 1924 
 
 do 
 
 
 4 s 
 
 1925 
 
 do 
 
 
 3 l As 
 
 1932 
 
 NORTHERN PACIFIC RWY. 
 
 CO. 
 
 
 Northern Pacific Ry. . . 
 
 Prior Lien 
 
 4s 
 
 1997 
 
 St. Paul & North. Pac. Ry. 
 
 
 6s 
 
 1923 
 
 St. Paul & Duluth R. R. . 
 
 1st 
 
 5 s 
 
 I 93 J 
 
 Wash. & Columb. Riv. Ry. 
 
 1st 
 
 4 s 
 
 1935 
 
 
 PENNSYLVANIA SYSTEM 
 
 Pennsylvania Railroad . . Con. 5s 1919 
 
 do Con. 4s 1943 
 
 do Con. 3 ^ 4 s 1945 
 
 do ; Con. 4s 1948 
 
 Western Penn. Railroad . Con. 4s 1928 
 
 Southwest Penn. Railroad . 1st 7s 1917 
 
 Phil. & Erie R.R. . . ,6s, 5s & 4s 1920 
 United N. J. R.R. & Ca. Co. Gen. 4s 1923 
 
 do Gen. 4s 1929 
 
 do Gen. 4s 1944 
 
 do Gen. 4s 1948 
 
 do Gen. 3^s 1951 
 
 Cleve.& Pittsburgh R.R. Gen. 4P2S & 3^s 1942 
 
 do 3P2 s 1948 
 
 do y/ 2 s 1950 
 
 Allegheny Valley Ry. . . Gen. 4s 1942 
 
 j 4 
 
 MISCELLANEOUS NEW ENGLAND 
 RAILROADS 
 
 New London Nortldn R. R. Con. 4s 1940 
 
 BURLINGTON TRACTION CO. 
 
 Win. & Bur. Horse R. R. . 1st 6s 1914 
 
► 
 
 > 
 
« 
 
 
State Banks. 
 
 WISCONSIN. 
 
 Municipal Law in reel. Other matter in black. 
 Railroad Law in green. Street Railway bonds not 
 
 a legal investment. 
 
 WISCONSIN 
 
 Corrected to and including 1911 Sess. of Leg. 
 
 STATE BANKS (BANKS OF DISCOUNT AND 
 DEPOSIT). 
 
 Chaps. 234 and 429, Laws of 1903, as 
 amended by Chap. 109, Laws of 1905, and as 
 amended Laws of 1911. 
 
 Sec. 4. To exercise, by its directors, duly au- 
 thorized officers, or agents, all such powers as 
 shall be usual in carrying on the business, of 
 banking; by buying, discounting and negotiat- 
 ing promissory notes, bonds, drafts, bills of 
 exchange, foreign and domestic and other evi- 
 dences of debt; by receiving commercial and 
 savings deposits under such regulations as it 
 may establish; by buying and selling coin and 
 bullion, and by buying and selling exchange, 
 foreign and domestic; issuing letters of 
 credit, and by loaning money on personal or 
 real security, as provided hereinafter. 
 
 Sec. 14. A Bk. may purchase, hold and 
 convey real estate for the following purposes 
 only : 
 
 1st. Such as shall be necessary for the 
 convenient transaction of its business, in- 
 cluding with its banking offices other apart- 
 ments to rent as a source of income. No Bk. 
 shall invest in a banking office, including 
 apartments connected therewith, a sum ex- 
 ceeding 25% of its capital and surplus; pro- 
 vided, that this limitation shall not apply to 
 the present holdings of Bks. now doing busi- 
 ness. 
 
 2d. Such as shall be conveyed to it in sat- 
 isfaction of debts previously contracted in 
 the course of its business. 
 
 3d. Such as it shall purchase at sale on 
 judgments, decrees, or Mtg. foreclosures 
 
 1 
 
WISCONSIN. 
 
 State Banks. 
 
 under securities held by it, but a Bk. shall 
 not bid at such sale a larger amount than 
 is necessary to satisfy its debts and costs. 
 
 4th. No real estate acquired in the cases 
 contemplated in the 2d and 3d subdivs. pre- 
 ceding, shall be held for a longer time than 
 5 yrs., except an extension is granted by the 
 Com. of Bkg. If such extension be not 
 granted, it must be sold at a private or pub- 
 lic sale within 1 year thereafter. Nothing in 
 this section shall be construed to prevent 
 a Bk. from loaning moneys upon real estate 
 security as provided by law. Real estate shall 
 be conveyed under the corporate seal of the 
 Bk., and the hand of the president or vice- 
 president and cashier or assistant cashier. 
 
 Sec. 25. Every Bk. shall keep on hand at 
 all times at least 15% of its total deposits, of 
 which such portion as the board of directors 
 may determine, may be on deposit in Bks. ap- 
 proved by the Com. of Bkg. as reserve Bks. ; 
 except in the case of Bks. which shall be ap- 
 proved by the Com. of Bkg. as reserve Bks., 
 which Bks. shall at all times keep on hand 
 at least 25% of their total deposits in law- 
 ful money or on deposit in Bks. subject to 
 the approval of the Com. of Bkg., as re- 
 serve Bks. Cash items shall not be consid- 
 ered as a part of the reserve of any Bk. 
 
 Sec. 27. The total liabilities of any per- 
 son, co-partnership or corporation, to any Bk., 
 for money borrowed, including in liabilities 
 of the co-partnership, the liabilities of the 
 several members thereof, except special part- 
 ners, shall at no time exceed 30% of the 
 amount of capital and surplus of such Bk. ; 
 but the discounting of bills of exchange 
 drawn in good faith against actually exist- 
 ing values, and the discounting of commercial 
 or business paper actually owned by the 
 person negotiating the same, shall not be con- 
 sidered as money borrowed ; Provided, that 
 by a 2 /sr ds vote of the directors, the liabilities 
 of any person, co-partnership or corporation 
 may be increased to a total sum not exceed- 
 ing 50% of the capital and surplus of such 
 Bk. upon approved security. 
 
 
 2 
 
State Banks. 
 
 WISCONSIN. 
 
 Sec. 28. No Bk. shall be the holder of or 
 purchaser of any portion of its capital stock, 
 unless such purchase shall be necessary to pre- 
 vent loss upon a debt previously contracted 
 in good faith. Stocks so purchased shall in 
 no case be held by the Bk. for a longer time 
 than 6 mos. if the stock can be sold for the 
 amount of the claim of the Bk. against the 
 same, and it must be sold for the best price 
 obtainable within 1 year, or it shall be can- 
 celed, and shall then amount to a reduction 
 of the capital stock; Provided, that, if such 
 reduction shall reduce the capital stock below 
 the minimum required by law, such capital 
 stock shall be again increased to the amount 
 required by law as provided herein. 
 
 No Bk. shall loan any part of its capital, 
 surplus or deposits on the capital stock of 
 its own Bk. as collateral security, nor on the 
 capital stock of any other Bk. as collateral se- 
 curity, if by making such loan, the total stock 
 of such other Bk. held by such loaning Bk. 
 as collateral security will exceed in the ag- 
 gregate 10% of the capital stock of such 
 other Bk. ; Provided, that no loan upon the 
 capital stock of any Bk. shall be made unless 
 such Bk. has been in existence for 2 or more 
 yrs. and has earned and paid a dividend upon 
 its capital stock. 
 
 Sec. 29. It shall not be lawful for any Bk. 
 to loan to any of its officers, directors, clerks 
 or employees any of the funds of the Bk. 
 without a responsible endorser or sufficient 
 collateral security, unless the same shall have 
 been authorized, both as to amount and se- 
 curity, by a resolution of the board of di- 
 rectors, to be recorded. 
 
 Sec. 30. No Bk. shall lend an amount ex- 
 ceeding 50% of the aggregate of its capi- 
 tal, surplus and deposits upon Mtgs. or any 
 other form of real estate security, except 
 when authorized as to amount, security and 
 location in this and the adjoining states by 
 resolution of %rds of its board of directors, 
 properly entered upon its minutes. 
 
 3 
 
WISCONSIN. 
 
 Mutual Savings Banks. 
 
 MUTUAL SAVINGS BANKS (SAVINGS SOCIE- 
 TIES WITHOUT CAPITAL STOCK). 
 
 Chap. 3 of 
 
 Chap. 234, Laws of 1903. 
 
 Sec. 10. No trustee or director of such 
 Mutual Sav. Bk. shall be a borrower, or surety 
 for a borrower, of any of its funds . . . 
 
 Sec. 19. It shall be lawful for such Mutual 
 Sav. Bk. to purchase, hold and convey, such 
 real estate as Bks. are authorized by the law 
 of this state to purchase, hold and con- 
 vey, except that such Mutual Sav. Bk. may 
 purchase or build a building in which to 
 carry on its own business, but shall not in- 
 vest in the land and building a sum exceed- 
 ing $10,000; except upon the consent and ap- 
 proval of the Com. of Bkg. 
 
 Sec. 20. Every such Mutual Sav. Bk. shall 
 keep on hand or on deposit in banks ap- 
 proved by the Com. of Bkg. as reserve Bks., 
 at least 5% of its total deposits. 
 
 Chap. 260, Laws of 1911. 
 
 Sec. 1. Any Mutual Sav. Bk. organized 
 hereunder may employ not exceeding ^ of 
 its deposits in the purchase of bonds of the 
 U. S. or of the states of the U. S. or of 
 the authorized bonds of any incorporated 
 city, village, town or county, or Sch. Dist. 
 in the aforesaid states of the U. S., or of 
 1st Mtg. bonds of any R. R. Co., which has 
 paid annual dividends of not less than 4% 
 regularly on its entire capital stock for a 
 period of at least 5 yrs. next preceding the 
 investment, and in the consolidated Mtg. bonds 
 of any such Co. issued to retire the entire 
 bonded debt of such Co, All other loans 
 shall be secured by Mtg. on unincumbered 
 real estate lying and being in the state of 
 Wis. and states immediately adjoining the 
 state of Wis., to-wit : Mich., 111 ., Iowa and 
 Minn. No Mutual Sav. Bk. shall invest any 
 part of its deposits in the stock of any cor- 
 poration nor loan on, nor invest in any Mtg. 
 on real estate, except such real estate as lies 
 
 4 
 
Trust Companies, Etc. 
 
 WISCONSIN. 
 
 in the state of Wis., and states immediately 
 adjoining, to-wit : Mich., 111 ., Iowa and Minn. 
 No loan shall be made upon real estate to 
 an amount exceeding 60% of the value 
 thereof as determined upon by not less than 
 a majority of the members of the Finance 
 Com. who shall duly certify to the value 
 of the premises to be mortgaged, accord- 
 ing to the best of their judgment, and such 
 report shall be filed and preserved with the 
 records of the corporation. 
 
 No such Mutual Sav. Bk. shall loan any 
 money upon any obligation on which only 
 i person or firm shall be holden, unless the 
 same be secured by collateral in which the 
 Bk. might invest its funds or on which it 
 might loan its money to the extent author- 
 ized in the preceding paragraph. 
 
 TRUST, ANNUITY, GUARANTY, SAFE DEPOSIT 
 AND SECURITY COMPANIES. 
 
 (Statutes of 1898, as amended by Chap. 504, 
 Laws of 1905.) 
 
 Sec. 1791^. As soon as possible and not 
 later than 6 mos. after any such Co. has com- 
 menced business, it shall deposit with the 
 state treasurer not less than 50% of the 
 amount of its capital stock nor more than 
 $100,000; such deposit to be in cash, bonds, 
 or Mtgs., or notes and Mtgs. on unincum- 
 bered real estate within this state worth 
 double the amount secured thereby, or pub- 
 lic stocks and bonds of the U. S. or of any 
 state of the U. S. that has not defaulted on 
 its principal or interest within 10 yrs., or 
 of any county, town, village or city in this 
 state, and upon all which bonds and other 
 securities there shall have been no default in 
 the payment of interest or principal for a 
 longer period than 30 days; which cash, 
 bonds, Mtgs., or notes and Mtgs. or pub- 
 lic stocks or bonds shall be held by the 
 state treasurer in trust as security for the 
 depositors and creditors of said corporation 
 
 5 
 
WISCONSIN. 
 
 and for the faithful execution of any trust 
 which may be lawfully imposed upon and 
 accepted by it; Provided, that the securities 
 comprising such deposit shall first be sub- 
 mitted to the Com. of Bkg. for approval. 
 
 Sec. 1791#. . . . Such corporation may 
 loan money upon real estate and collateral 
 security, execute and issue its notes and de- 
 bentures, payable at a future date, and 
 pledge its Mtgs. on real estate and other se- 
 curities as security therefor; but nothing 
 herein contained shall be construed as giv- 
 ing it the right to issue bills to circulate as 
 money, buy or sell Bk. exchange or do a bank- 
 ing business. 
 
 Sec. 1791 h. It shall be lawful for any such 
 corporation to lease, purchase, hold and 
 convey such land as may be necessary to 
 carry on its business and execute any 
 trust committed to it, as well as such real 
 or personal estate as it may deem necessary 
 to acquire in the enforcement or settlement 
 of any claims or demands arising out of its 
 business transactions. . . . The directors 
 thereof shall invent so much of the capital 
 as is required to be deposited in the state 
 treasury and other moneys received by such cor- 
 poration in trust in bonds secured by Mtgs. or 
 notes and Mtgs. on unincumbered real estate 
 within this state worth double the amount 
 secured thereby, or in public stocks and bonds 
 of the U. S., or any state of the U. S. that 
 has not defaulted on its principal or interest 
 within 10 yrs., or of any county, town, vil- 
 lage or city in this state, or in any other 
 such state, duly authorized to be. issued, or 
 in such real or personal securities as they 
 may deem proper. 
 
 a 
 
 
 $ 
 
 
 C V 
 
 Trust Companies, Etc. 
 
 
 / 
 
 6