LAWS WITH REGARD TO BANKS, TRUST COM- PANIES AND BUILDING AND LOAN ASSOCIATIONS Including the criminal statutes affecting violations of such laws, the usury laws, and the laws with regard to taxation of such corporations. Compiled by hprjrY GF TOt FEB 2 7 1933 UNIVERSITY Of ILLINOIS M. W. McKenzie Attorney for the State Banking Department, formerly Assistant Attorney General. —* | June, 1926 V Digitized by the Internet Archive in 2019 with funding from University of Illinois Urbana-Champaign Alternates https://archive.org/details/bankingtrustcomp1926okla LAWS WITH REGARD TO BANKS, TRUST COM- PANIES AND BUILDING AND LOAN ASSOCIATIONS Including the criminal statutes affecting violations of such laws, the usury laws, and the laws with regard to taxation of such corporations. FEB 2 7 1933 UNIVERSITY OF ILLINOIS Compiled by M. W. McKenzie Attorney for the State Banking Department, formerly Assistant Attorney General. June, 1926 \ OKLAHOMA Laws Relating to Banks, Trust Companies and Building and Loan Associations COMPILED 19 2 6 (y'fc 43 Jy~ QJ — I fO Chapter 24, Corn- lows 1 - ° ' a4lorna Statutes, 1921, is hereby amended to read as fol- Dw* J iv V! 16 ' A1 t l ust com P an ies incorporated under the laws of this State are Hereby authorized to establish a commercial banking and savings department, in which they shall be permitted o receive money on deposit, with or without interest, including before S p accol7 nts, trust fun ds and sinking funds; provided, that nrovided *!?® t . com P a ^ » authorized to accept deposits, as above p , the hoard of directors of such trust company shall by mercial'bankiuo to the depositora ™ said con? “anTtal stockf an ?/ avm f department, set aside a portion of the fasc l I l f ^ t I? St com Pany. the amount of which in no ganizfa State 1 h S an ? olmt of capital stock required to or- nanv is loelw ba i k 1 “rh eitr or town in which said trust com- with the Sta^R A i ee n tlfied C ? Py ° f said resoluti ons shall be filed n,v!! + St t „ Ba ” k Commissioner and a certificate of the Board ^Directors of said trust company shall be filed with said Bank certlfymg ! hat the amount of capital stock neces- saiy to create a commercial banking and savings department has Trust Companies 75 been set aside, according to the laws of the State of Oklahoma, and thereupon the State Banking Board may, in its discretion, cause to be issued a certificate to said trust company, authorizing it to establish a commercial banking and savings department in said trust company.’’ History. Senate Bill 227, C. 56, L. 1925; amending- Section 4216, C. O. S. 1921; S. L. 1919, p. 242. 144. Commercial Bank Under Supervision of Commissioner. Section 6. That Section 4217, Article IV, Chapter 24, Com¬ piled Oklahoma Statutes, 1921, is hereby amended to read as fol¬ lows : “Section 4217. That the commercial banking and savings de¬ partment of a trust company established under the provisions of this Act shall be subject to to all laws of the State of Oklahoma relating to state banks and shall be under the supervision of the state banking board and the bank commissioner of the State of Oklahoma, and all loans or investments made of the funds in the commercial banking and savings department, except the savings and time deposits, of said trust company shall be made in conformity with the laws of the State of Oklahoma relating to state banks; provided, that all loans or investments made of the funds of the savings and time deposits in said department shall be made in ac¬ cordance with the laws governing the investments of trust funds by trust companies in this state, as provided in Section 4197, of Article TV, Chapter 24, Compiled Oklahoma Statutes, 1921.” History. Senate Bill 227, C. 56, L. 1925; amending Section 4217 C. O. S. 1921; S. L. 1919, p. 242. 145. Capital Set Aside for Commercial Bank. Section 7. That Section 4218, Article IV, Chapter 24, Com¬ piled Oklahoma Statutes, 1921, is hereby amended to read as fol¬ lows : “Section 4218. The capital stock set aside for the commercial banking and savings department and all deposits and all invest¬ ments and loans and securities held in the commercial banking and savinngs department shall be appropriated solely to the security and payment of the deposits in the commerical banking and sav¬ ings department, and shall not be mingled with the investment of the remaining capital stock or other money or property belonging to or controlled by such trust company, or be liable for the debts or obligations thereof until after the deposits in said commercial banking and savings department have been paid in full. The ac¬ counts and transactions of said commercial banking and savings department shall be kept separate and distinct from the general business of the corporation.” 7 b Mothersead, Bank Comm., y. History. Senate Bill 227, C. 56, L. 1925: amending Section 4218, C O S. 1921 ;L. S. L. 1919, p. 242. 146. Capital Liable for Payment of Deposits. Section 8. That Section 4219, Article IV, Chapter 24, Com¬ piled Oklahoma Statutes, 1921, is hereby amended to read as fol¬ lows : Section 4219. The capital stock of said trust company appro¬ priated to the commercial banking and savings department, to¬ gether with the stockholders’ liability thereunder, shall be held as secuiity for the payment of all deposits made in the commercial banking and savings department and, in addition thereto, the per¬ sons making such deposits, or entitled to said deposits, shall have an equal claim with the other creditors of such trust company upon the remaining capital and other property of the corporation, to¬ gether with the stockholders’ liability thereunder.” History. Senate Bill 227, C. 56, S. L. 1925; amending Section 4219, Compiled Oklahoma Statutes, 1921; S. L. 1919 p. 242. 147. Withdrawals of Deposits. Such trust company may at any time require a depositor in said savings department to give a notice not exceeding ninety (90) days of his intention to with¬ draw the whole or any part of his deposits. History. Section 4220, C. O. S. 1921; S. L. 1919, p. 242. 147-a. Supervision and Control. The savings department of a trust company created under the provisions of this act shall be under the supervision and control of the state bank commissioner of the State of Oklahoma, and be subject to all rules and regula¬ tions of the state banking board and state bank commissioner of the ► tate of Oklahoma; provided, that the depositors’ guaranty law of the State of Oklahoma shall apply to the savings department o± a trust company, in the same manner and to the same extent that said law now applies to state banks. History. Sec. 4223, C. O. S. 1921, R. L. 1919, p. 242, Sec. 8. 148. Accounts of Minors. Section 9. That Section 4221, Article IV, Chapter 24, Com- piled Oklahoma Statutes, 1921, is hereby amended to read as fol¬ lows : . S e( dicm 4221. A trust company is authorize to accept and receive commercial and savings deposits from minors or other in¬ competent persons, and such trust company is authorized to, pay to minors or incompetents, any funds deposits by said minors or in- Trust Companies 77 competents, in the commercial banking or savings department of said trust company, and the payment of said deposits and interest thereon to said minors or incompetents shall be binding on them.” History. Senate Bill 227, C. 56 L. 1925; amending C. O S. 1921, Sec. 4221; S. L. 1919, p. 242. 149. Section 4222. Investment of Trust Funds. All funds deposit¬ ed in the savings department of a trust company, by said trust company in its capacity as executor, administrator, guardian or trustee, which under the law should be invested in interest-bearing securities for the benefit of the cestue que trust, shall be invested by said trust company according to law for the benefit of the cestue que trust within ninety (90) days from the date of the deposit, or said trust company shall pay to the cestue que trust interest on all uninvested funds after ninety (90) days from the date of said deposit at the rate of eight per cent (8%) per annum until the same are invested according to law. History. Sec. 4222 C. O. S. 1921; S. L. 1919, p. 242. 151. Taxation of Capital Stock of Commercial Bank. Section 10. That the capital stock set aside for a commercial banking and savings department of a trust company shall be as¬ sessed and taxed upon the actual value of the shares of stock of such capital so set aside for the benefit of the commercial banking and savings department as the shares of stock in State banks are now assessed and taxed in the county, city, town, district or village where such trust company is located. All property held by a trust company in a fiduciary capacity shall be returned and rendered for taxation at the same time and in the same manner as now pro¬ vided by law for other property of like kind. History. Senate Bill 227, C. 56, L. 1925. (taxation of banks as pro¬ vided for in Section 9607, C. O. S. 1921). 152. Fees Charged Not Considered Interest. Section 11. The charges or service fees made by the trust department of any trust company organized and existing under the laws of this state, for any services performed or under any powers granted to such company, under the laws of this State, shall not be considered any part of the interest charged on any loan and shall not be subject to the interest laws of the State. History. Senate Bill 227, 1925. 153. Unfair Practices Prohibited. That the use of the word trust or trust company by any person, firm, corporation, or com¬ pany that does not possess the paid-in capital required by law to do a trust company business under the laws of Oklahoma shall be unlawful and punishable as a felony. 78 Mothersead, Bank Comm v v. History. Sec. 4224, C. O. S. 1921; S. L. 1919, p. 242. 154. Section 14. All Acts and parts of Acts in conflict here¬ with are hereby expressly repealed. History. Senate Bill 227, C. 56, L. 1925. Note: 1 his Section is included for the reason that an examination of this coompilation shows some of the trust laws heretofore enacted have been amended either directly or indirectly and, since this Sec¬ tion repeals conflicting - Acts, it is included as a matter of informa¬ tion. LOANS AND USURY 155. Legal and Contract Rates of Interest. The legal rate of interest shall not exceed six per cent, in the absence of any contract as to the rate of interest, and by contract parties may agree upon any rate not to exceed ten per cent per annum. Said rates of six and ten per cent shall be respectively the legal rate and the maximum contract rates of interest. History. R. L. 1004; S. L. 1910, p. 253, Sec. 5097, C. O. S. 1921. Usury defined: Clement Mtg Co. vs. Johnston 83 Okla. 153, 201 Pac. 2407. Bank vs. Thomycon 57 Okla. 52!. 164 Pac 077. Dies vs. Bank 100 Okla. 205. 729 Pac 474. Munn vs. Securities Co. 100 Okla. 105, 228 Pac. 150. Finerty Inv. Co. vs. Athey 89 Okla. 284, 215 Pac. 613. 156. Usury— —Penalty—Forfeiture. The taking, receiving, re¬ setting or charging a greater rate of interest than is provided by the preceding section shall be deemed a forfeiture of twice the amount of interest which the note, bill or other evidence of debt carries with it, or which has been agreed to be paid thereon. In case a greater rate of interest has been paid, the person by whom it has been paid, or his legal representatives, may recover from the person, firm or corporation, taking or receiving the same, in an action in the nature l of an action of debt, twice the amount of the entire interest paid; provided, that such action shall be brought within two years after the maturity of such usurious contract; provided, further, that when any suit is brought upon any note, bill or other evidence of indebtedness or to foreclose any mortgage or lien given to secure such indebtedness when a greater rate of interest has been collected, reserved, charged or received than is provided for in this act, the defendant, or his legal representative, may plead as a set-off or counter-claim in said action the amount of the entire interest collected, reserved, charged or received in said transaction or in all such transactions between the same parties. Loans and Usury 79 History. S. L. 1916; p.'24, Amenling R. L. 1005: Sec. 5098 C. O. S. 1921. Dies vs. Bank 100 Okla. 205, 229 Pac. 474. Munn vs. Securities Co. 100 Okla. 105, 228 Pac. 150. Clement Mtg. Co. vs. Johnston 83 Okla. 153, 201 Pac. 247. Bank vs. Thompson 57 Okla. 521, 164 Pac. 977. Finerty Inv. Co. vs. Athey 89 Okla. 284, 215 Pac. 613. Statute applies only to loan of money. National Novelty Co. vs. Muncy 93 Okla. 219 Pac. 670. 157. Liquidation of Usurious Contract—Tender—Procedure. Any contract for the loa nof money, where the rate of interest taken, received, reserved or charged is greater than the rate as declared in Section 1004 of the Revised Laws of Oklahoma, 1910, may be liquidated in the following manner: On the date such contract falls due, or at any time before suit for the collection thereof is instituted, the payor, his agent, attorney, or legal representative may tender to the holder thereof the exact amount of money re¬ ceived from the lender, less the amount of the entire interest charg¬ ed, received, reserved, or cllelecte dthereon, said tender to be in writ¬ ing, and to such party only as service may be had as in case of actions at law, and the payee of said contract is hereby given twenty-four hours thereafter to answer such tender, and such answer shall be in writing, and the acceptance or final rejection thereof shall constitute and be a full and complete satisfaction of such indebtedness. If no such tender as heretofore provided has been made, and suit is instituted in a court of competent jurisdiction for the collection thereof, the payor, his agent, attorney, or legal rep¬ resentative may, at or before the time he is required to plead, de¬ posit in the court the exact sum of money received on said contract, less the exact amount of the* entire interest taken, received, reserv¬ ed or charged, and the cost incurred, and if the same be not ac¬ cepted, the court or jury shall make a finding thereon and judg¬ ment against plaintiff shall be rendered on said finding holding such contract and debt satisfied by reason of such tender, if such is found to have been made, and for cost, and on such finding the said deposit shall be returned to said defendant. Provided, this section shall not be construed to prevent the debtor from bringing his action on cross-petition, or in an original suit to recover twice the amount of interest charged or paid in said contract sued upon. Provided, further, the provisions of this act shall not operate to repeal or modify any of the provisions of the negotiable instrument act. History. S. L. 1916, p. 25, Sec. 2: Sec. 5099 C. O. S. 1921. This amendment not unconstitutional. Dies vs. Bank 100 Okla. 205, 229 Pac. 475. Munn vs. Securities Co. lOOf Okla. 105, 228 Pac. 150. 158. Indorser and Indorsee— Liability—Transfer of Causes. Any person, firm or corporation violating the provisions of this act and the laws of this State relating to the loaning of money by taking, reserving, charging or receiving any usurious interest 80 Mothersead, Bank Comm v v. on any note, bill or other evidence of debt, and who shall transfer the same to a bona fide purchaser before due shall be liable to the maker of said note, bill or other evidence of debt for double all such interest taken, reserved, charged or received and it shall be competent to join in the same action, causes of action for reserv¬ ing and charging usurious interest with causes of action for taking and receiving usurious interest, and any number of such causes of such action may be joined in the same action, whether growing out of the same transaction or different transactions, wherein such usurious interest is taken, reserved, charged or received; provided, that the purchaser of any note, or evidence of debt, with notice or knowledge that same was executed in violation of interest laws of the State, shall not be deemed an innocent purchaser and such contract shall be held subject to all the defenses and penalties pro¬ vided in this act. Provided, further, that causes of action for the recovery of penalties created in this act shall not be assignable. History. S. L. 1916, p. 26, Sec. 3; Sec. 5100 C. O. S. 1921. Forfeiture of double interest for usurious loan of money. Dies vs. Bank 100 Okla. 205, 229 Pac. 475. Munn vs. Securities Co. 100 Okla. 105, 228 Pac. 150. 159. Jurisdiction of Court Denied in Certain Cases. No suit upon any contract entered into after the passage and approval of this Act, of $300.00 or less, or an action in replevin or to foreclose any mortgage or lien given as security therefor, shall be maintained in courts of this State, and no petition of bill of particulars shall be filed or any process issued where the amount of such sum is $300.00 or less, unless at the time of filing such suit, there shall be filed with such bill of particulars or petition, an affidavit setting forth such suit brought upon any note, bill or other evidence of indebt- laws of this State, and that a greater rate of interest than ten per cent has not been charged, reserved or collected on such contract or contracts sued upon; Provided, that if upon the trial of any such suit brought upon any note, bill or other evience of indebt¬ edness of $300.00 or less, or in replevin or for the foreclosure of any lien given to secure the same, it shall be shown by the evidence that the contract sued upon is usurious and made in violation of the interest laws of this State, said suit shall be dismissed at the cost of the plaintiff. Loans and Usury 81 History. S. L. 1916, p. 27, Sec. 5101 C. O. S. 1921. Quoere: Does this section violate the “Equal protection of the law” provision of constitution? Dies vs. Bank 100 Okla. 205, 229 Pac. 475. Does not apply to contract for sale of merchandise. National Nov. Co. vs. Muncy 93 Okla. 5, 219 Pac. 670. Alder vs. Chapman 91 Okla. 196, 219 Pac. 90. Clapp vs. Smith 91 Okla. 84, 216 Pac. 121. Where note is one of series and total amount exceeds $300, section does not apply. Rennie vs. Mtg. Co. 99 Okla. 217, 226 Pac. 314. 160. Banks to Report—Withdrawal of Charter—Procedure. It shall be the duty of the officers of all state banks, organized and doing business under and by virtue of the laws of the State, to make a sworn quarterly report to the Bank Commissioner, setting forth the rate of interest charged, retained, reserved or collected upon the loans made in excess of the legal or contract rate of in¬ terest during the quarter for which said report is made, and such other detailed information as the Bank Commissioner may require concerning rates of interest charged, and all such reports as show the rates of interest exceeding ten per cent per annum have been charged shall be published in the annual report of the Bank Com¬ missioner. Provided, that when the report of any bank shall dis¬ close that such bank is wilfully loaning money in violation of the interest laws of the State it shall be his duty to immediately re¬ port such violation to the Governor, who may direct the Bank Commissioner to bring suit, through the Attorney General, in a court of competent jurisdiction in the county where the bank is located, to cancel the charter of such bank, and the judgment of the court on the trial of said issue shall find the defendant bank guilty or not guilty, and if the judgment is guilty it shall further provide for the cancellation of the charter of said bank and the liquida¬ tion of the assets of said bank as the law now provides in cases of insolvent banks, from which judgment either party shall have the right of appeal to the Supreme Court, as in civil cases. Upon such appeal being filed, the Supreme Court shall hear and detemine same as an advanced case. History. S. L. 1916, p. 27, Sec. 5; Sec. 5102 C. O. S. 1921. Alder vs. Chapman 91 Okla. 196, 219 Pac. 91. 161. Attorney’s Fee. In all cases where an action is brought by any person to recover the penalty prescribed by the preceding section the prevailing party in such action shall be entitled to re¬ cover, as part of the costs, a judgment against the other party to such actionn for a reasonable attorney’s fee in a sum not less than ten dollars, to be fixed by the court, for the use and benefit of the attorney of record of the prevailing party, together with all costs. History. R. L. 1006, S. L. 1910, p. 253; Sec. 5103 C. O. S. 1921. Prevailing party is entitled to attorney fee. Loan Co. vs. Development Co. 81 Okla. 172, 197 Pac. 484. / 82 Mothersead, Bank Comm v v. Ruby vs. Warrior 71 Okla. 83, 175 Pac. 359. Bank of Buffalo vs. Verm. 68 Okla. 43, 171 Pac. 450. 162. Interest May Be Deducted From Loan. The interest which would become due at the end of a term for which a loan is made, not exceeding one year’s interest in all, may be deducted from the loan in advance if the parties thus agree. History. R. L. 1007; Dak. 3722; 1890, Sec. 915; C. O. S. 1921, Sec. 5104. If contract not usurious at inception subsequent plan of liquidating does not make it usurious. Clement Mtg. vs. Jolmston, 83 Okla. 153, 201 l ac. 249. 163. Interest on Judgments. All judgments of courts of rec¬ ord and justice of the peace shall bear interest from the day on which they are rendered at the rate of six per cent per annum; Provided, that when a rate of interest is specified in any contract, that rate shall continue until payment is made, and any judgment rendered on any such contract shall bear the same rate of interest mentione din the contract, which rate shall be specified in the judgment; but in no case shall such rate exceed the legal contract rate at the date of such obligation. History. R. L. 1008; S. L. 1895, p, 93; 5105 C. O. S. 1921. Judgments bear 6 per cent, interest unless contract provides greater. Daniels vs. Bunck 98 Okla. 47, 223 Pac. 841. Flcicha vs. Richie 91 Okla. 95, 216 Pac. 644. 164. Interest on Contracts After Breach. Any legal rate of interest, stipulated by a contract, remains chargeable after a breach thereof, as before, until the contract is superseded by a verdict or other new obligations. History. R. L. 1009; Dak. 3725; S. L. 1890, Sec. 918: C. O. S. 1921, Sec. 5106. Daniels vs. Bunch 98 Okla. 47, 223 Pac. 841. 165. Banks—Taxation of—Shares of Stock— Deductions. Every bank located within this State, whether such bank has been organ¬ ized under the banking laws of this State, or any other territory or state, or of the United States, shall be assessed and taxed upon the actual value of shares of stock therein, in the county, town, dis¬ trict, village, or city where such bank or banking association is lo ¬ cated whether such stockholders reside in such place or not, less such portion thereof as is invested in any bonds issued against the public building fund, issued under the authority of chapter 89, of the session laws of Oklahoma, 1911, being senate bill No. 198, of said session, and less such portion thereof as is invested in real estate situated in this State, which may be separately assessed and taxed. Such shares shall be listed and assessed with regard to the ownership and value thereof as they existed, on the first day of January annually, subject, however, to the restriction that taxation Loans and Usury 83 of such shares shall not be at a greater rate than is assessed upon any other moneyed capital in the hands of the individual citizens of the State, in the county, town, district, village or city where such bank is located. The shares of capital stock of national banks, not located in the State, held in this State, shall not be required to be listed under the provisions of this act. In each such bank there shall be kept at all times a full and correct list of the names and residences of its stockholders, and of the number of shares held by each; which list shall be subject to the inspection of the officers authorized to assess property for taxation; and it shall be the duty of the assessor to as¬ certain a correct list of the names and residences of all stockholders in any such bank, with the number and assessed value of all such shares held by each stockholder and enter the total value of the same on his tax list, in the coroprate name of such bank or cor¬ poration and file the list of stockholders with the county clerk. The officer or officers authorized to receive taxes may, all or either of them, have an action to collect the tax assessed on any share or shares of bank stock from any property oh said bank or corporation or from the avails of the sale of such share or shares, and the tax against such share or shares shall be and remain a lien thereon from January first in each year until the payment of said tax. For the purpose of collecting such taxes it shall be the duty of every such bank, or the managing officer or officers thereof, to pay the tax assessed against said bank, or the stock thereof, and to retain so much of every dividend or dividends belonging to such stockholders as shall be necessary to pay any taxes levied upon their shares of stock respectively until it shall be made to appear to such bank or its officers that such taxes have been paid; and they may sell any oij said stock to reimburse said bank for any taxes so paid on same; and any officer of said bank who shall pay over or authorize paying over of any such dividend or dividends or any portion thereof, contrary to the provisions of this section, shall hereby become liable for such tax; and if the said tax shall not be paid, the collector of taxes where said bank is located shall proceed to collect the same in the manner in which taxes on personal prop¬ erty are required to be collected by this act, or by suit in the dis¬ trict court. Taxes due upon any property in the hands of any receiver appointed by any court in this State, or in the hands of any assignee or trustee, shall be a prior first lien upon all of said property and shall be paid by such receiver, assignee or trustee before any other claim except his personal costs. History. S. L. 1921, p. 288, Sec. 1, amending- S. L. 1919' COS 1921 Sec. 9607. Taxes upon shares of stock of bank are not lien upon assets in hands of Bank Commissioner. Walcott vs. McCarroll 88 Okla. 279, 213 Pac. 296. Gourd vs. Bank 90 Okla. 298, 217 Pac. 358. 84 Mothersead, Bank Comm., v. Real property based on assessed value may be deducted from asses¬ sable value of shares of stock, but it must be assessed separately— Burden on bank to right of deduction. In re National Bank 100 Okla. 155, 228 Pac. 953. In re First National Bank 93 Okla. 233, 220 Pac. 913. 164. Notes—Bonds—Choses in Action Taxed. Any person owning any bond, note of any duration of over eight months or other choses in action evidenced by writing, located in the State of Oklahoma, may take same to the office of the county treasurer of the county in which the owner of said bond, note of a duration exceeding eight months, or other choses in action, resides or he may send a description of the same to said county treasurer, and pay to said county treasurer a tax of two per centum of the face amount thereof for five years, or at the option of such person, for a greater or less number of years at the same rate, and the said county treasurer shall thereupon make an endorsement upon said bond, note of a duration of over eight months, or other choses in action, cer¬ tifying that same is exempt from all taxation for State, county, city, town, township, school district and other municipal purposes for a period of five years, or for such longer or shorter period for which a proportionate tax has been paid, which endorsement or receipt shall be duly dated and signed in the name of the county treasurer of the county in which said property is located and where said tax is paid, and with the seal of the treasurer of said county affixed. Provided, that provisions of this act shall not apply to any property which under the existing laws is not subject to taxation, and prvided further, all property taxable under the provisions of this act and owned by a non-resident of the State of Ok¬ lahoma, shall be listed for taxes in the county in which such evi¬ dence f inebt.eness is located; and, provided, further, nothing in this act shall cause any part of the capital stock of a corporation to be exempt from taxation; and, provided, further, the bonds, notes and other choses in action, evidenced in writing held by bank¬ ing corporations which pay taxes on its capital stock, surplus and undivided profits, shall not be subject to th eprovisions of this act. History. S. L. 1917, p. 484, Sec. 1; Sec. 9608 C. O., S. 1921. Not unconstitutional. Harrell vs. Suter 100 Okla. 56, 227 Pac. 403. Not applicable if note less than eight months. Kelley vs. Hamilton 78 Okla. 179, 189 Pac. 535. Tippet vs. Fox 95 Okla. 205, 218 Pac. 1057. Does not apply to choses in action of non residents not in state. Pappas vs. Company 92 Okla. 25, 217 Pac. 474. 165. Property Subject to Tax Listed. All property taxable under provisions of this act, shall be listed for taxation as pro¬ vided for in Section 1, hereof, within sixty (60) days after this act becomes effective; provided, such property is now in existence and all other property subject to taxation under the provisinos Tax on Money and Credits 85 of. this act shall be listed for taxation as provided for herein, within sixty days from the date of execution of the evidence of such in¬ debtedness. History. S. L. 1917; p. 485, Sec. 3; Sec. 9610, C .O. S. 1921. 166. Collected—For What Purposes. The tax provided for m this act is hereby levied and collected for the following specific purposes; to-wit: First. For the contingent fund of the county in which such tax is paid, one-half of such amount collected. Second. For aid of the common schools of the county in which said tax is paid one-half of such amount collected; Provided, that it shall be the duty of the county treasurer of each county in ap¬ portioning the one-half apportioned for the use of the common schools to apportion same upon a uer capita basis, based upon the number of children of scholastic age in each and every school dis¬ trict in said county. History. S. L. 1917, p. 485, Sec. 4; Sec. 9611 C. O. S. 1921. Tax must be paid before note can be introduced in evidence Harrell vs. Suter, 100 Okla. 56, 277 Pac. 404. 167. Penalty for Violation. In case any person, firm or cor¬ poration holding or owning any property subject to taxation under provisions of this act,, fails to list such property and pay the taxes provided for m Section 1, of this act, within the time specified, such person, firm or corporation may pay such taxes at any time thereafter, together with a penalty thereon, in the sum of 5% of i? e i/i Ce * Va ^ Ue .°? suc h evidence of indebtedness and such penalty shall be m addition to the tax provided for in this act. History. S. L. 1917, p. 485, Sec. 5; Sec. 9612 C. O. S. 1921. 168. Not Admitted in Evidence Unless Listed. No bond or note of over eight months duration or other choses in action, which has not been registered with the county treasurer of the county n ^ * s l° ca ^ e d and the tax paid in accordance with this act shall be admitted in evidence in any of the courts of the State of Oklahoma; provided, that this act shall not apply to notes secured by real estate mortgages which have been or hereafter may be reg¬ istered under the provisions of Chapter 246, Session Laws, 1913 as amended by Chapter 105, Session Laws, 1915 (9585-9596). History. S. L. 1917, p. 486, Sec. 6; Sec. 9613 C. O. S 1921 Harrell vs. Suter 100 Okla. 56, 227 Pac. 404. * 7 TAX ON MONEY AND CREDITS Tax—Ad Valore mTax. Section 1. That hereafter money shall not be subject to ad valorem or other tax as personal property nor to any form of tax other than as herein provided. Same—Levy. 86 Mothersead, Bank Comm., v. Section 2. There is hereby levied in lieu of existing law a tax at the rate of one-tenth of one per cent on all monies, certificates .of deposit, or other evidence thereof, of any individual, co-partnership, or corporation, building and loan association, joint stock associa¬ tion or trust association in this state on the first day of January of each calendar year whether such money is in the personal custody of such owner or on deposit in any bank, trust company, building and loan association or other depository of money; provided, how¬ ever, the provisions of this Act shall not apply to moneyed capital in this state coming in competition with state and national banks as defined in the Act of Congress of March 4th, 1924, nor to certifi¬ cates of stock or evidence of deposit issued by building and loan associations. Same—Property Scheduled for Taxation. Section 3. Each person, corporation, co-partnership, . joint stock association, trust association, building and loan association, or any receiver or trustee, in this state, shall schedule for taxation all money, certificates of deposit or other eiv- dence thereof, belonging to such person, corporation, co-part¬ nership , joint stock assoiation, trust association, building and loan association or in the custody or possession of such re¬ ceiver or trustee on hand and in possession on the first day of January of each calendar year, as is now provided by law T for listing personal property for taxation. Property coming under the tax classification provided in this Act shall be assessed separately from all other property and shall not be computed in the total assessed valuation of any county by any excise board, or by the State Board of Equalization for ad valorem tax levy purposes, ex¬ cept to the extent of the provisions of this Act, nor in the compu¬ tation of bond levy limitations, either by the state or any sub-di¬ vision thereof. It shall be the duty of the State Examiner and In¬ spector to supply county assessors with separate and proper blanks for recording tax returns under this Act. History. H. B. 88, Chapter 120, S. L. 1925. 170. Cheats, Frauds and Bogus Checks. Section 1. Section 2146, of Article 53, of Chapter 6, of the Compiled Statutes of Oklahoma, 1921, is hereby amended to read as follows: “Section 2146. Every person who, with intent to cheat and defraud, shall obtain or attempt to obtain from any person, firm or corporation, any money, property, or valuable thing, of the value Twenty ($20.00) Dollars, or less, by means or by use of any trick or deception, or false or fraudulent representation, or statement or pretense, or by any other means or instrument or device commonly called the “confidence game”, or by means or use of any false Laws Gov. Domestic and Foreign Building Loan Ass’n. 87 or bogus checks, or by any other written or printed or eneraved be gUilty ° f a r a and one hundred fflm m n if b ® P T^ ed by a fine not to exceed e hundred ($100 00) Dollars, or by imprisonment in the county imprisonment 101 ^ ^b n th f ( f 0) , days > or by both such fine and thiL referred tt V& U ® °v h ° m ° ney ’ P roperty or valuable tv ?t2 nm th P reeedm g Paragraph, be more than Twen- ffuiltvoTl ^ larS ’ an J p f ® 01 } convicted hereunder shall be deemed State 7 Penitplf- y ^ Sh ? n b ® P unished b y imprisonment in the State Penitentiary, for a term not exceeding seven (7) years or by a fine not to. exceed Five Hundred ($500.00) Dollars orhv both shad fndude d che m r° nm r- The te ™ “ false or bo ^ us check” al “chide checks or orders given for money or property which pay same°r e a °" f insufficient *“ds of the maker to pay same as against the maker or drawer thereof the making rawing uttering or delivering of a check, draft or order payment 0 intent sha11 be p ™« facie’ S ot intent to defraud and the knowledge of insufficient funds in w drawe^shairnVb 1111 ° r d ®P ositor y; Provided, such maker or drawer shall not have paid the drawee thereof the amount due thereon, together with the protest fees, within five days from the thlt said S Z% 1S preS f ted for Payment; and, provided, further, davs aftLL™ - r y der “ Presented for payment within thirty days after same is delivered and accepted. The word “credit” as used herein, shall be construed to mean an arrangement or understanding with the bank or depository for the payment of such check, draft or order.” 1 y ’ 101 History. C. 33, S. L. 1923. LAWS GOVERNING DOMESTIC AND FOREIGN BUILDING LOAN ASSOCIATIONS , , 171, f ha ^ er ' At fny time when ten or more persons mav desire form a building and loan association under the provisions of this article, they shall make application to the secretary™”' in the anner prescribed by Section 1304. The said secretary is hereby em powered to grant charters to said association, provided thft no ^ ranted under or by virtue of the provisions of this article 5376 a 0°Y 1921 CT Peri ° d than tW6nty years ' ( S - 1893 > § H43 ) P lS e withTaw ati0n eann °‘ d ° bUSineSS in 0k l-homa unless it com- Mdland s et r T B - f L ' ASS ^ 78 ° kIa - 307> 190 Pac ' 873 - aland S. & L. Assn. vs. Development Co. 81 Okla. 172, 197 Pac. 484. 88 Mothersead, Bank Comm v v. 172. Capital Stock. I The capital stock of any corporation created by virtue of this article shall at no time consist of more than two thousand five hundred shares, of two hundred dollars each, or five thousand shares of one hundred dollars each, the installments on which stock are to be paid at such time and place as the by-laws shall appoint, no periodical payment to be made exceeding two dollars on each share, Every share of stock shall be subject to a lien for the payment of unpaid installments and other charges incurred thereon, under the provisions of the charter and by-laws, and the by-laws may pre¬ scribed the form and manner of enforcing such lien. New shares of stock may be issued in lieu of the shares withdrawn or forfeited. The stock may be issued in one or more successive series in such amount as the board of directors or stockholders may determine, and any stockholder wishing to withdraw from the said corpora¬ tion shall have power to do so by giving thirty day’s notice of his intention to withdraw, when he shall be entitled to receive the amount paid in by him, and such proportion of the profits as the by-laws may determine, less all fines and other charges. Provided, that at no time shall more than one-half of the funds in the treas- I ury of the corporation be applicable to the demands of withdraw¬ ing stockholders without the consent of the board of directors, and that no stockholder shall be entitled to withdraw whose stock is held in pledge for security. Upon the death of a stockholder, his legal representative shall be entitled to receive the full amount paid by him and legal interest thereon, first deducting all charges that may be due on the stock. No fines shall be charged to a de- 1 ceased member’s account from or after his decease, unless the legal representative of such decedent assumes the future payments of the stock. (S. 1893 tH44.) 5377 C. 0. S. 1921. Section construed. Holt vs. B. & L. Assn. 78 Okla. 307, 190 Pac. 873. Rule adopted July 1, 1925, by Board. The Building and Loan Board is of the opinion that partial withdrawals are not warranted by statute. You are, therefore, instructed to discontinue partial withdrawal privileges, and if your by-laws provide for partial withdrawals of any class of stock, you I should amend your by-laws to conform to the law. When stock is assigned to the Association for a loan, the opinion mentioned does not question the legal right of an association to apply any portion of the value of such assigned stock, to the loan, fines, taxes, in¬ surance, or any other legal charge against the assigned stock or property jointly mortgaged. 173. Capital May Be Increased. Domestic mutual building and loa nassociations, organized un- Laws Gov. Domestic and Foreign Building Loan Ass’n. 89 der the laws of the State of Oklahoma, are hereby authorized and empowered to increase their authorized capital stock to such amount as may be determined advantageous by such association, in the man- ?s r fqna i r « 7 H P Tn ed c; 19 ° 9 ' S - B - 138 > t00k effect February 18, 1909.) 5378 C. 0. S. 1921; R. L. 1294. . How and When Increased. Any such association desiring to increase its authorized capital stock may do so at any regular meet- mg o± the stockholders or at any special meeting of the stockholders called for that purpose. Upon the presentation to the secretary of state of a certified copy of the minutes of any such meeting, certi¬ fied to by the officers and board of directors of such association, showing and disclosing that a majority of the stockholders desire a i? , 1 1 n ^ rease ca Phal stock to the amount to which such increase shall be made, and upon the payment to the secretary of state of the regular fees prescribed by law, it shall be the duty of the secre¬ tary ot state to issue to any such association, an amended charter and articles of incorporation which shall authorize such association to increase its capital stock to the desired amount (L 1909 S R 138, took effect February 18, 1909.) 5379 C. 0. S. 1921, R.’ L.‘ 1295. 174. By-Laws—What to Contain. The number, titles, func¬ tions and compensation of the officers of any corporation created by virtue of this article, their terms of office, the time of their elec¬ tion, as well as the qualifications of electors, and the votes and man- iner of voting, and the periodical meetings of said corporation, and the manner and terms upon which loans shall be made and repaid shall be determined by the by-laws. See Note (4). R. L. 1296 5380 C. O. S. 1921. Rule of Board adopted July 1, 1925. The constitution, by-laws, plans and methods of conducting bus¬ iness, and the manner of keeping the books and records of Building and Loan Associations doing business in the State of Oklahoma, in¬ cluding to form and manner of issuing contracts or stock, notes, mortgages and all matters incident thereto, must be submitted to and approved by the Building and Loan Board. 175. By-Laws. The by-laws of every corporation created un¬ der the provisions of this article, or of those accepting the provisions of the same, shall be deemed and taken as its law, subordinate to this statute. They shall be made by the stockholders, or the board of dir¬ ectors, at their annual meeting or at any stated meeting of the board of directors. They shall prescribe the time and place of meeting of the corporation, the power and duty of its officers, the fines and penalties to be imposed upon delinquents and borrowers for the non-payment of dues, interest and premiums, and such other mat¬ ters as may be pertinent and necessary for the business to be trans- 90 Mothersead, Bank Comm., v. Sec. 5, C. 28 L. 1925 require all by-laws to be approved by Building and Loan Board. Rule of Board adopted July 1, 1925. The Building and, Loan Board is of the opinion that it is both j possible and probable that conditions may prevail when fixed divi¬ dends on full paid stock as now issued would receive a greater por¬ tion of the earnings of your Association than installment and pre¬ paid stock. There is a possibility that this would violate the mutu¬ ality of the Associations, and the Building and Loan Supervisor is hereby instructed to request all Associations to discontinue issuing stock to guarantee a fixed rate of dividend unless the certificate in addition to the rate as specified, shall contain a proviso as follows: Provided that the earnings of the Association shall be sufficient to pay the same rate of dividend as is provided for in this certi¬ ficate on all other classes of stock, and that in no case shall a greater rate of dividend be paid on full paid stock than is paid on install¬ ment and pre-paid stock. 176. Payment of Loans. A borrower may repay a loan at any time by the payment to the corporation of the principal sum bor¬ rowed, together with interest not to exceed twelve per cent per an¬ num; together with such per cent of premium per annum as may have been bid for the preference or priority of such loan, and any fines or charges that may be imposed upon; such stockholders at the time of such repayment; or in case the amouunt of premiu mbid for the priority of such loan be deducted in advance, and the repay¬ ment thereof is made before the expiration of the eighth year after the organization of the corporation there shall be refunded to such borrower one-eighth of the premium paid for every year of the said eight years unexpired. Provided, that when the stock is is¬ sued in separate series, the time shall be computed from the date of the issuing of the shares on which the loan was made. Provided, further, that when the series of stock has a less period than eight years to complete full payment thereof, there shall be refunded only pro rata for the unexpired term of the series; and provided further; that when the by-laws of the corporation prescribe a dif¬ ferent manner and terms upon which a loan may be repaid, then the repayment can only be made in accordance with the by-laws of such corporation. (S. 1893, tll47.) Sec. 1298 It. L. 5382 C. O. S. 1921. Stock legally issued in Conformity with By Laws. McGuire vs. Association 112 Okla. 158, 240 Pac. 722. 177. Charges Not Usurious. No premiums, fines or interest on such premiums that may accrue to the said corporation according to the provisions of this article shall be deemed usurious except as herein otherwise provided; and the same may be collected as debts of like amount are now bv law collected in this state. (L. 1893, U148.) Note (6). 1299 R. L.: 5384 C. 0. S. 1921. Laws Gov. Domestic and Foreign Building Loan Ass’n. 91 Under old law loan without bid does not authorize ’urns and such premiums and dues will be applied to Aetna B. &. L. Assn. vs. Rouch 32 Okla. 735, 124 Pac. charging prem- discharge loan. 24. 1^8. Neglect Not to Affect Life of Corporation. No corpora- ton created under this article shall cease or expire from neglect on the part of the corporation to elect officers at the time mentioned m t eir charter or by-laws, and all officers elected by such corpora¬ tion shall hold their offices until their successors are duly elected and qualified. (L. 1893, U149.) 1300 R. L.: 5384 C. 0. S. 1921. 179. Association May Purchase at Sheriff’s Sale. Any build¬ ing or loan association incorporated under the provisions* of this article, or. any one heretofore or hereafter incorporated, accepting the provisions of the same, is hereby authorized and empowered to purchase at the sheriff’s or other judicial sale, or at any other sale, public or private, any real estate upon which such association may aye or hold any mortgage, judgment, lien or other incumbrance, or m which said association may have an interest, and may sell, con¬ vey, lease or mortgage at pleasure the real estate so purchased, or any other that such association may hold or be entitled to, to any person whatsoever; and all sales of real estate heretofore made by such association to any person or persons not members of the associ¬ ation so selling are hereby confirmed and made valid (L 1893 tll50.) 1301 R. L. : 5385 C. 0. S. 1921. ’ Note: See Constitution of Oklahoma, Art. XXII, Sec. 2, limit¬ ing to seven years the period for which any corporation may hold title to real estate bid in on foreclosure or taken for debts. Validating Securities. All mortgages heretofore given to the building and loan associations organized under the laws of this state, accepting the provisions of this article, are hereby declared good and valid to all intents and purposes, as though they had been made to corporations organized under the provisions of this article (L. 1893, 11151.) 1302 R. L.: 5386 C. O. S. 1921. 181. Mode of Incorporation The charter of an intended cor¬ poration under the provisions of this article must be subscribed by ten or more persons, a majority of whom must be citizens of this state and set forth: First. The name of the corporation. Second. The purpose for which it is formed. Third. The place where it has its principal office, or the bus- mess is to be transacted. Fourth. The time for which it is to exist. Fifth. The names and residences of the subscribers, and the number of shares subscribed by each. 92 Mothersea i), Bank Comm., v. Sixth. The number of its directors, and the names and resi¬ dences of those who are selected as directors, and who shall hold their office until the next annual election, or until their successors are elected and qualified. Seventh. The amount of its capital stock, and the number and par value of its shares. (L. 1893, Sec. 1152.) 1303 R. L.: 5387, C. O. S. 1921. 182. Same—Notice of Application for Charter. Notice of the intention to apply for such charter shall be inserted in two news¬ papers of general circulation printed in the proper county for three weeks setting forth briefly the character and object of the corpora¬ tion to be formed, and the intention to make application therefor. The certificate for a corporation under the provisions of this article shall set forth all that is hereinbefore required to be set forth; the same shall be acknowledged by at least five of the subscribers thereto before a notary public or other officer authorized to admin¬ ister oaths, and they shall also make and subscribe an oath or af¬ firmation before him, to be indorsed on said certificate, that the statements contained therein are true. The said certificate, accom¬ panied with proof of publication of the notice as hereinbefore pro¬ vided, shall then be produced to the secretary of state, who shall examine the same, and if he find it to be in proper form, as specified in the foregoing sections, he shall approve thereof and endorse his approval thereon, and issue letters patent in the usual form, incor¬ porating the subscribers and their associates and successors into a body politic and corporate in deed and in law, by the manner chosen; an the said certificate shall be recorded in the office of the secretary of state, in a book to be by him kept for that purpose, and a certified copy of the said certificate shall be recorded in the office of the register of deeds of the county where the principal business of the association is transacted. Certified copies of the records thereof shall be competent evidence for all purposes in the several courts of this state. (S. 1893. 11153. Note 7.) 1304 R. L.: 5388 C. O. S. 1921. 183. Management of Business. The business of every corpora¬ tion created hereunder, or of those accepting the provisions of this article, shall be managed and conducted by a president, a board of directors or trustees, a secretary and treasurer, and such other of¬ ficers or agents as the by-laws may provide. The directors or trus¬ tees shall be elected annually by the stockholders or members, at the time fixed by the by-laws, and shall hold their office until others are chosen and qualified in their stead; the manner of such choice ond of the choice of appointment of all other agents or officers shall be prescribed by the by-laws. The number of directors or trustees shall not be less than five, one of whom shall be chosen president by the directors, or by the members of the corporation, as the by- Laws Gov. Domestic and Foreign Building Loan Ass’n. 93 laws may direct; the members of said corporation may, at a meet¬ ing called for that purpose, determine, fix or change the number of directors or trustees that shall thereafter govern its officers, and a majority of the whole number of such directors or trustees shall be necessary to constitute a quorum. The treasurer shall give bond in such sum, and with such sureties, as shall be required by the by-laws, for the faithful discharge of his duties, and he shall keep the moneys of the corporation in a separate bank account, to his credit as treas¬ urer, and if he shall neglect or refuse so to do he shall be liable to a penalty of fifty dollars for every day he should fail so to do, to be recovered at the suit of any informer in an action of debt. (S. 1893, tll55.) Note (8). 1306 R. L.: 5370 C. 0. S. 1921. Rule adopted by Board July 1 , 1925. The constitution, by-laws, plans and methods of conducting bus¬ iness, and the manner of keeping the books and records of Building and Loan Associations doing business in the State of Oklahoma, including the form and manner of issuing contracts or stock, notes, mortgages and all matters incident thereto, must be submitted to and approved by the Building and Loan Board. ^-84. Stock Certificates. The directors of such corporation shall procure certificates of stock, and shall deliver them signed by the president and secretary and sealed with the common seal of the corporation to each person entitled to receive the same, according to the number of shares held by him, which certificate or evidence of stock shall be transferable at the pleasure of the holder in person or by attorney duly authorized as the by-laws may prescribe, sub¬ ject, however, to all payments due or to" become due thereon; and the assignee or the party to whom the same shall have been so trans¬ ferred shall be a member of said corporation, and have and enjoy all the immunities, privileges and franchises, and be subject to all the liabilites, condtions and penaltes incident thereto, in the same manner as the original subscriber or holder would have been; but no certificate shall be transferred so long as the holder is indebted to said company, unless the board of directors shall consent thereto (S. 1893. U156.) 1307 R. L.: 5391 C. 0. S. 1921. 185. Oath of Officers in Election. No person acting as judge or officer for holding an election for any such corporation shall enter upon the duties of his appointment until he take and subscribe an oath or affirmation before a notary public or other person qualified by law to administer oaths, that he will discharge the duties of his office with fidelity, that he will not receive any vote but such as he believes to be legal, and if any such judge or officer shall know¬ ingly or wilfully violate his oath or affirmation he shall be subject to all the penalties imposed by law upon the officers of the general election of this state for violating their duties, and shall be pro¬ ceeded against in like manner and with like effect. (S 1893 tH57 ) 1308 R. L.: 5392 C. O. S. 1921. 94 M OTH ERSE AD, BANK COMM v V. 186. Vacancies. In case of death, removal or resignation of the president, or any of the directors, secretary, treasurer or other officer of such company, the remaining directors may supply the vacancy thus created until the next general election. (S. 1893, tll58.) 1309 R. L.: 5393 C. 0. S. 1921. 187. Loans, Procedure, Rate of Interest. Any such associa¬ tion may, by its by-laws, dispense with the offering of its moneys for bid, and in lieu thereof loan or advance its moneys to members at such rate of interest and premium as may be provided by the by¬ laws. Such premium to be paid in installments, shall not be deemed usurious,, but shall be taken to be the payment as it falls due, and the same shall be lawful, in so far as the said premium, together with interest, shall not exceed one per cent per month. 5394 C. O. S. 1921; S. L. 1913, p. 446, amending- Sec. 1310 R. L. Where contract made not in conformity with building and loan law, if interest, premiums, etc., exceed contractual note, contract us¬ urious. Holt vs. Aetna B. &. L. Assn. 78 Okla. 307, 190 Pac. 874. Union Savings Assn. vs. Cummins, 78 Okla. 265, 190 Pac. 869. 188. To Issue Shares in Series. Any building and loan associ¬ ation may issue shares of stock in series, or on what is known as the perpetual or permanent plan, when each share shall run from date of issue; Provided, that the by-laws of said association shall state upon which plan the association issues shares. (L. 1895, p. 77.) 1311 R. L.: 5395 C. O. S. 1921. 189. Term of Office of Directors. Any building and loan asso¬ ciation may elect directors or trustees for a longer term than one year if such term be set forth in the by-laws; Provided, that no director or trustee shall be elected for a longer period than three years, and the terms of at least two such directors or trustees shall expire each year. (L. 1895, p. 77.)) 1312 R. L.: 5396 C. O. S. 1921. 190. May Extend Life of Association. Every such corpora¬ tion may extend the time of its duration so as to make the entire period of its corporate existence not to exceed fifty years, by a vote of three-fourths of its stockholders at any meeting called for this purpose, thirty days’ notice having first been given each stock¬ holder by postal card or letter, and by paying to the secretary of state a fee of two dollars. (L. 1895, p. 77.) 131 R3. L.: 5397 C. O. S. 1921. 191. Semi-Annual Report. Every such corporation doing bus¬ iness in the state shall, semi-annually, in the months of January and July, publish in one or more newspapers in the city or county where such corporation is located, a statement verified by the oath of its president or secretary, setting forth its actual financial condition and the amount of its property and liabilities, under a penalty of two hundred dollars to the state, to be recovered by civil action for Laws Gov. Domestic and Foreign Building Loan Ass’n. 95 the benefits of the association, against the president, secretary or directois on the relation of any stockholder. It shall also deposit a copy of said statement, verified as aforesaid, in the office of the secretary of state. (L. 1895, p. 77.) 1314 R. L.: 5398 C. 0. S. 1921. 192. Loan or Investment Funds. Every such corporation shall lend (its) funds only on real estate security, or on the security of its own shares of stock, such loans being made upon the terms and conditions and in the manner which shall be specified by its by¬ laws No loans shall be made on shares of stock to an amount ex¬ ceeding the installments actually paid in on such shares. Such cor¬ poration may, however, employ a portion of its capital stock in the purchase of real estate and the erection of building thereon, foij rent or otherwise. If at any time it shall happen that there is no demand by the shareholder for the funds of the corporation, then such funds may be loaned to others who are not shareholders, at such rate of interest and premium as the directors may fix. No loans shall be made to members or others on personal security or on leasehold. (L. 1895, p. 78.) 1315 R. L.: 5399 C .0. S. 1921. Loans must be made in conformity with law. Aetna B. & L. Assn. vs. Harris, 67 Okla. 257, 170 Pac. 700. 193. Matured Shares. When any unpledged shares of stock shall reach the maturity value thereof, all payments of dues there¬ on shall cease, and the holders thereof shall be entitled to receive, and shall then be paid out of the funds of such corporation, the maturity value thereof for each share so matured and held: Pro¬ vided, however, that if there are not funds then on hand sufficient and applicable to the payment and redemption of said shares, then such shareholder shall be entitled to receive interest on the sum then due them, from the date of maturity of said shares to the date of redemption, at a rate of not less than six nor to exceed eight per cent interest per annum, as may be provided by the by-laws of said association; and provided further, that at no time shall more than half of the funds in the treasury be applicable to the payment or redemption of such matured shares, unnless by consent of the board of directors. (L. 18955, p. 78.) 1316 R. L.: 5400 C. O. S. 1921. 194. Minors and Married Women. It shall be lawful for any minor above the age of fourteen, or a married woman, to take and hold shares in such corporation, and for such corporation to pay to any minor any money that may be due him in respect to any shares, and his receipt therefor shall be valid; but no minor shall be eligible to hold any office in said corporation. (L. 1895, p. 78.) 1317 R L 5401 C. O. S. 1921. 195. Associations Heretofore Incorporated. Any building and loan association which has made and filed its articles of incorpora¬ tion under the laws of the state and received its certificate of incor¬ poration, and whose principal place of business is within the state, Mothersead, Bank Comm., v. 96 shall be entitled to all the benefits of all laws relating to building and loan associations, and have all the powers, rights and privileges by such laws conferred, upon accepting the same by unanimous vote of its board of directors at a regular meeting thereof, and filing with the secretary of state a certificate of such acceptance in writ¬ ing under the duly authenticated seal of said association to be bj him recorded as provided in Section 1304. Said certificate shall set forth the mode or plan of said association in ncharging premiums or bonus for priority of loan, and upon its acceptance and approval by the secretary of state, he shall issue his certificate to said corporation reciting the same, and thereafter said association shall be conclusive¬ ly deemed to have been duly and legally incorporated at and from the time of the issuing of its original certificate of incorporation, and the acts of such associations not in violation of law are hereby rat¬ tled and made legal. (L. 1895, p. 78.) 1318 R. L.: 5402 C. O. S. 1921. 196. Exemption From Taxation. The real estate, furniture, fixtures and all personal property, except as otherwise provided, of mutual building and loan associations, organized and doing business in this state, shall be subject to taxation in' the same manner and to the same extent as other like property. The notes and mortgages of building and loan associations chartered, organized and. doing business in this state, under the laws of this state and which are given by the members of such association upon real estate located in the state, and which real estate is subject to taxation under the laws of the state, and the shares issued by a building and loan asso¬ ciation loaning its funds to members within this state, shall not be subject to taxation. (L. 1899, p. 161.) 1391 R. L.: 5403 C. 0. S. 1921. Old statute construed. Midland S. & L. vs. Nicoll 76 Okla. 27, 183 Pac. 731. 197. Section 1. There is hereby created a board to be com¬ posed of three members and the Bank Commissioner which shall be designated as the Building and Loan Board. C. 28, L. 1925. 198. Section 2. Such Building and Loan Board shall be com¬ posed of the Bank Commissioner who shall be ex officio chairman thereof and three members who shall be appointed by the Governor of the State by and with the advice and consent of the Senate. One member of said board shall be appointed for a term of one year, one for a term of two years and cne for a term three years. There¬ after each of said members shall be appointed to hold office for a term of four years from the dates of their appointments. Each of said members shall be citizens of the State of Oklahoma and shall have had at least three years actual experience in the active man¬ agement of building and loan associations and shall be actively en¬ gaged in the management of an association during their terms of of- Laws Gov. Domestic and Foreign Building Loan Ass’n. 97 fice. The members of said board other than the Bank Commissioner shall receive a compensation of Ten (10.00) Dollars per day for each day actually an necessarily consumed in the performance of the du¬ ties of said office, and in addition thereto shall be paid the necessary expenses in the performance thereof which shall be paid from the revenues hereinafter provided. In case of death, removal, resigna¬ tion or other vacancy the Governor may appoint, according to the provisions of this Act and in compliance with the qualifications herein prescribed, some suitable person to fill such unexpired term. Meetings of said board shall be held monthly at the State Capitol and special meetings may be called at any time by the Bank Com¬ missioner. A majority of the board shall constitute a quorum for the transaction of business, and in case of a tie in voting the Bank Commissioner shall be entitled to cast a vote. C. 28 L. 1925. 199. Section 3. The Bank Commissioner, with the approval of the said board, is authorized to appoint not more than three exam¬ iners to be known as Building and Loan Auditors, one of whom may be designated by the Bank Commissioner with the approval of said Board of Building and Loan Supervisor. Said supervisor must have had at least two years actual experience in the active work of build¬ ing and loan associations and must be a citizen of the State of Ok¬ lahoma. Such supervisor shall receive a salary not to exceed Three Thousand Six Hundred (3,600.00) Dollars per year and each audi¬ tor shall receive a salary of Two Thousand, Four Hundred ($2400.- 00) Dollars per year for the first year’s service, and for each suc¬ ceeding year thereafter shall receive an increase in salary Two Hun¬ dred ($200.00) Dollars per year until such salary shall have reached the sum of Three Thousand ($3,000.00) Dollars per year, which last amount shall be the greatest compensation paid to any of said au¬ ditors. Said auditors shall be paid their actual traveling expenses including railroad fare, livery hire, telephone, telegraph and hotel bills while traveling upon business for said department; provided, not more than Four (4.00) Dollars per day, for expenses other than travel, shall be paid. There is hereby created the position of filing clerk and stenographer who shall be appointed by the Bank Com¬ missioner and who shall receive a salary of Fifteen Hundred ($1,- 500.00) Dollars per year. All of said salaries provided for in this Act and all compensation and expenses authorized shall be payable monthly by warrants drawn by the State Auditor against the special fund hereinafter provided for. C. 28 L. 1925. 200. Section 4. The Assistant Bank Commissioner shall be secretary of said Building and Loan Board and in case of absence, sickness or inability of the Bank Commissioner to preside at any Mothersead, Bank Comm v v. 98 meeting of said board, the Assistant Bank Commissioner shall act as ■chairman thereof until the Bank Commissioner may be able to re¬ sume his duties. C. 28, L. 1925. 201. Section 5. Said board shall have general supervision and control over all domestic and foreign building and loan associations doing business in this State and shall have full power to grant or refuse any permit or license to any association 1 to do business in this State when such association is not conducting its business in con¬ formity with the laws of the State and the rules and regulations of said board. All by-laws and amendments thereto of associations heretofore adopted shall be approved by said board and said board shall have the authority to approve, modify or reject any such by¬ laws or amendments thereto. Said board shall have full power and authority to prescribe all necessary and proper rules and regula¬ tions for the conduct and operation of buliding and loan associa¬ tions in this State and shall prescribe the manner in which the books and records of associations doing business in this State shall be kept and no building and loan asociations doing business in this State shall be permitted to pay any dividend when it has losses during any year in excess of its reserve and undivided profits, until such losses shall have been charged off. C. 28, Li. 1925. Rule adopted July 1, 1925, by Board. It was ordered that each application for permit to do business in the State of Oklahoma by a domestic corporation as a Building and Loan Association, shall be accompanied by deposit of $100.00 with the Bank Commissioner, the same to be used for the purpose of defraying the expenses of the necessary investigation and report, and that each application for permit to do business as a Building and Loan Association in the State of Oklahoma by a foreign corpor¬ ation shall be accompanied by a deposit of $500.00 with the Bank Commissioner to be used for the purpose of defraying the expenses of the necessary investigations and report. Provided that the above paragraph shall not apply to Building and Loan Associations heretofore authorized to do business in the State. Each Association doing business in this State shall cause to be printed, stamped or written, upon the application for membership and stock, the application for a loan, and upon the stock certificate and the pass book, the amount of the membership fee, or the with¬ drawal fee, if any, and all terns and conditions of the entrance and withdrawal of such member from said Association. 202. Section 6. An examination of every building and loan association doing business in this State shall be required at least once each year. Said board may require additional examinations to Laws Gov. Domestic and Foreign Building Loan Ass’n. 99 be made at any time when in its judgment an examination may be necessary. Every building and loan association shall pay Twenty ($20.00) Dollars per day and actual expenses for each examiner for actual time consumed in making such examination and an additional sum of four cents per thousand dollars of the total assets of such association invested in the State of Oklahoma, as fees for each ex¬ amination which shall be paid to the State Treasurer and be held and kept apart by the State Treasurer in a special and distinct fund which is hereby designated as the building and loan fund. All war¬ rants which may be drawn under the terms of this Act to pay ex¬ penses, salaries or compensation provided for in this Act shall be drawn against and paid out of said building and loan fund. It is hereby declared to be the intent of the Legislature that the necessary expenses of such supervision, control and examination shall be paid by the building and loan association for the purpose of meeting the necessary expenses thereof and the revenues pro¬ vided in this Act shall be kept and used by the State Treasurer solely and for the purpose only of paying the expenses provided for in this Act. C. 28, L. 1925. Rule of Board adopted July 1, 1925. Section 6 of Engrossed Senate Bill No. 120 was interpreted by the Building and Loan Board in part as follows: “That the 4c per thousand fee to be collected on the total assets of such Association invested in the State of Oklahoma, shall be collected annually.’’ 203. Section 7. Every foreign building and loan association do¬ ing business in this State shall conduct its business in accordance with the laws of this State governing domestic building and loan associations. No foreign building and loan association shall be permitted to operate in this State until it has first procured from said board a certificate of authority to so do and such association by accepting such certificate of authority shall at all times be subject to the laws and all rules and regulations governing domestic build¬ ing and loan associations. Each foreign building and loan associa¬ tion shall file with the Secretary of State a certified copy of its articles of incorporation and pay to the Secretary of State the fees required by Section 6476. Compiled Oklahoma Statutes, 1921. All laws relating to issue and re-issue of stock of domestic associations shall apply to foreign associations. Every foreign association do¬ ing business in this State shall keep on deposit with the State Treas¬ urer a surety bond, United States Bonds, State, county or other municipal bonds to be filed by said board in the sum of not less than Ten Thousand ($10,000.00) Dollars and not exceeding one (1%) per cent of the assets of such foreign association invested in this State, provided that in no event shall the bond required ex¬ ceed One Hundred Thousand ($100,000.) Dollars, as a guarantee of 100 Mothersead, Bank Comm., v. the faithful performance of its obligations under the terms of its contracts with citizens of this State, which securities or bonds shall be approved by the Bank Commissioner. C. 28, Li. 1925. Rule adopted by Board July 1, 1925. It was ordered that each application for permit to do business in the State of Oklahoma by a domestic corporation as a Build¬ ing and Loan Association, shall be accompanied by deposit of $100.00 with the Bank Commissioner, the same to be used for the purpose of defraying the expenses of the necessary investigation and report, and that each application for permit to do business as a Building and Loan Association in the State of Oklahoma by a foreign corporation shall be accompanied by a deposit of $500.00 with the Bank Commissioner to be used for the purpose of defraying the expenses of the necessary investigations and report. Provided that the above paragraph shall not apply to Building and Loan Associations heretofore authorized to do business in the State. 204. Section 8. Building and Loan associations may borrow money for any of its corporate purposes, not to exceed however, fifteen (15%) per cent of its total assets, and may issue unsecured evi¬ dence of indebtedness therefor; and such associations may borrow from and lend to like associations upon the approval of the board of directors of both the borrowing and lending associations, togeth¬ er with the approval of the Bank Commissioner. C. 28, L. 1925. Rule of Board adopted July 1, 1925. Section 8, Senate Bill No. 120, was interpreted to mean that the maximum amount any Association may borrow from any and all sources shall be limited to 15% of its total assets. Further that where the borrowing is to be from a like Association, full de¬ tails of the loan must be approvel by the Board of Directors of each Association and have the approval of the Bank Commissioner before said loan is consummated. 205. Section 9. Any association in this State, may, with the ap¬ proval of its board of directors, sell, assign, or transfer without recourse any notes and mortgages given to secure the same to a jun¬ ior lien-holder when the terms of such mortgage have been broken and the same is subject to foreclosure. C. 28, L. 1925. 206. Section 10. When it shall appear to the Bank Commissioner, after an examination of the affairs and conditions of a building and loan association, that such association is insolvent, the Bank Commissioner shall with the approval of a majority of the Build¬ ing and Loan Board, take possession thereof and all of its property and assets for the purpose of winding up its affairs and paying the Laws Gov. Domestic and Foreign Building Loan Ass’n. 101 •creditors thereof. For the purpose of liquidation the Bank Com¬ missioner may appoint such liquidating agent or agents, attorneys and employees that may be necessary in winding up the affairs •of such insolvent association. All liquidating agents and employees, shall, before entering upon the duties of their office, execute to the State of Oklahoma a fidelity bond in such amount as the Bank Gommissioner shall designate which shall be approved by the Bank Commissioner and filed in his office. The bond of such agent shall be conditioned upon the faithful performance of all duties required of such agents and employees and the faithful accounting to the Bank Commissioner for all monies, funds and assets that shall come into possession of such agent upon demand of the Bank Com¬ missioner. The compensation of such liquidating agent or em¬ ployees shall not exceed the sum of Four Thousand ($4,000.00) Dollars per yeaer. Such liquidating agents and attorneys shall hold office at the will an pleasure of the Bank Commissioner and such liquidating agents shall submit to the Bank Commissioner and ac¬ count duly verified each month, giving in detail a statement of all receipts and disbursements made from the assets in their possession, and each three months after appointment such liquidating agent shall file in the District Court of the county in which said associa¬ tion was located a complete statement, setting forth in detail items of receipts and disbursements out of the assets of such association, and no payments shall be madei from such assets except upon writ¬ ten order of the Bank Commissioner. The Bank Commissioner shall have power and authority to in¬ stitute and prosecute all necessary suits for the purpose of liqui¬ dation of any insolvent association taken over by the Bank Com¬ missioner, and such suits shall be brought in the name of the State of Oklahoma, on the relation of the Bank Commissioner, and no costs shall be required and the State of Oklahoma shall not be liable for any costs in the prosecution of said suits. After complete liquidation of an insolvent association and when the creditors there¬ of shall have been paid in full, if there remain in the hands of the Bank Commissioner any assets, such assets remaining shall revert to the stockholders and be surrendered by the Bank Commissioner to such stockholders of said insolvent association. The Bank Com¬ missioner shall have authority, by and with the consent of the District Court or a judge thereof in the county in which an insol¬ vent association is located to compound bad or doubtful debts. C. 28, L. 1925. 207. Section 11. Any association authorized to do business in the State of Oklahoma is authorized to charge not to exceed one <1%) per cent of the par value of each share of stock issued which may be designated by such association as a member¬ ship fee, a cancellation fee, or a withdrawal fee, subject however, to such regulations as may be provided by the Building and Loan 102 Mothersead, Bank Comm v y. Board. In no case shall such fee charged against the funds paid in by the shareholder be greater than one (1%) per cent of the par value of every share issued as herein provided. C. 28, L. 1925. 208. Section 12. Section 5350 of Compiled Oklahoma Statutes, 1921, shall have no application to buildipg and loan associations doing business in this State. C. 28, L. 1925. 209. Section 13. The members of the Building and Loan Board provided for herein shall be subject to removal and be removed from office in the manner and for the causes specified in Chapter 7, Article 4, Compiled Laws of Oklahoma 1921. C. 28, Ii. 1925. 210. Section 14. All acts and parts of acts in fonflict herewith be and the same are hereby repealed. It is provided further that in case any. section or paragraph of this Act shall be declared in¬ valid, such invalidity shall not affect the remaining portions of tho said Act. C. 28, I.. 1925. 211. Building and Loan Auditor. The Building and Loan Auditor, as now provided by law, shall be a citizen of this state, and shall have had at least three years’ actual experience in man- aging Building and Loan Associations. 5418 C. O. S. 1921: L. 1913, p. 445. Prior to this act, loans must be by competitive bidding-. Union Saving’s Assn. vs. Cummins, 78 Okla. 265, 190 Pac. 869. 212. Subject to Bank Commissioner. Any building and loan association now existing, or hereafter organized under the laws of the State of Oklahoma, and all foreign building and loan associa¬ tions doing business in the State of Oklahoma, or any person, part- nership or corporation engaged in the ! business of disposing of con¬ tracts on the partial payment plan, shall be subject to the super¬ vision of the Bank Commissioner: Provided that the provisions of this act shall not. apply to any person, partnership or corporation, domestic or foreign, engaged in the business of a money lender where either the principal or. interest of such money loaned is paid by installments on the partial payment plan and where no stock or certificate of interest in such business is issued to the borrower oi m consideration of the money loaned; Provided, however, that t e provisions of this act shall apply to all persons, firms or cor¬ porations doing a business of selling contracts upon which to predi¬ cate or base a loan at some future date. liAws Gov. Domestic and Foreign Building Loan Ass’n. 103 5419 C. O. S. 1921; L. 1913 p. 116. By Laws must be approved by Bank Commissioner. McGuire vs. Assn. 112 Okla. 158, 240 Pac. 722. 213. Issue of Stock and Reports. Any Building and Loan Association doing business in the State of Oklahoma may issue its stock in full-paid, prepaid or installment shares, in such amount and at such times and in such manner as the by-laws may provided, and each Building and Loan Association, or other person, partner¬ ships or corporations coming under the provisions of this Act shall file with the Bank Commissioner a certified copy of its charter, constitution and by-laws, and its plan of conducting business, to¬ gether with a statement, verified by oath of its president and secre¬ tary, showing the amount of authorized capital stock, assets and lia¬ bilities, the kind and character of the same, together with any other information which may be required, which statement, veri¬ fied by oath, shall be filed semi-annually thereafter. And any such Building and Loan Association may charge a fee of not to exceed $5.00 for examining each piece of real estate mortgaged to such association to secure a loan. 5420 C. O. S. 1921; L. 1913 p. 445. Rule of Board adopted July 1, 1925. Every Building and Loan Association doing business in this ■State whether heretofore or hereafter organized, shall accumulate from its earnings a “reserve fund”, for the payment of losses, and at least five per cent of the neL earnings shall be set aside at each dividend paying period to such fund until said fund amounts to 5 per cent of the total assets. All losses shall be paid out of such fund and said fund shall be a reserve fund used for the payment of losses only, and whenever the amount in such fund falls below 5 per cent of the total assets as aforesaid, it shall be replenished by appropriations of at least 5 per cent of the net earnings as hereinbefore provided until it again reaches such amount. Any sums heretofore transferred to the reserve fund of any association shall constitute its “reserve fund” when this regulation takes effect. 214. Loaning Money Without Bids. Section 17, Article 17, Chap. 17, Statute 1893, is hereby amended to read as follows: Any such Association may, by its by-laws, dispense with the offering of its moneys for bids, and in lieu thereof loan or advance its moneys to members at such rate of interest or interest and premium as may be provided by the by-laws. Such premium to be paiad in installments shall not be deemed usurious, but shall be taken to be the payment as it falls due, and the same shall be lawful, in so far as the said prem¬ ium, together with interest, shall not exceed one per cent per month. 104 Mothersead, Bank Comm., v. 215. Bank Commissioner’s Certificate. Any Building and Loan Association now existing, or hereafter organized under the laws of the State of Oklahoma, or any foreign Building and Loan Associa¬ tion, person, partnership or corporation engaged in the business of disposing of contracts of stocks on the partial payment plan must first secure a certificate of authority from the Bank Commissioner,, before is can transact any business in the State of Oklahoma. 5422 C. 0. S. 1921,1 L. 1913 p. 446. 216. Same—Terms of and Fees. Certificates of authority is¬ sued to Building and Loan Associations now existing, or organized under the laws of the State of Oklahoma, shall be for the period of six months, and if such association shall be solvent, and shall be doing and intending to transact a legitimate business, and have not violated any of the provisions of law, it shall be the duty of the Bank Commissioner to issue certificates for each subsquent six months period, upon the payment of Two and 50-100 ($2.50) Dol¬ lars to the Bank Commissioner, and thereupon such Building and Loan Association shall be duly authorized to transact a building and loan business in any county in the State of Oklahoma, during the period for which said certificate of authority is issued, unless soon¬ er revoked. 5423 C. O. S. 1921 L. 1913 p. 447. 217. Examination by Bank Commissioner. The Bank Com¬ missioner shall, at least once each year, or oftener, if he deems nec¬ essary, investigate the conditions of all Building and Loan Associa¬ tions, and all other persons, partnerships or corporations included in this Act which may be doing business in the State of Oklahoma,, and shall, for the purpose of making such examinations, have all the rights and powers to do and perform all things necessary to make such examinations as is now given to the examiner of State banks- 5424 C. 0. S. 1921, L. 1913 p. 447. 218. Voluntary Liquidation. No such association, whether heretofore or hereafter organized in this state, shall cease to du business or endeavor to liquidate its affairs prior to the maturity of all of its stock, except by and with the consent of the stockholders- representing seventy-five per cent of its capital stock. The liquida- tion of any Building and Loan Association shall be under the super¬ vision of the Bank Commissioner. It shall be unlawful for such association to make a voluntary general assignment of its business affairs, and if it is discovered to be in failing condition, the offi¬ cers and directors thereof shall immediately place it in the hands of the Bank Commissioner. But should the officers and directors of an association make an attempt to make a voluntary general assignment of its assets, Bank Commissioner shall, as soon as prac¬ ticable, by a thorough examination into its affairs, its actual fi¬ nancial condition, and if, in his opinion, the association is solvent Laws Gov. Domestic and Foreign Building Loan Ass’n. 105 and can be place din condition to resume business to the benefit of its creditors and stockholders, he shall proceed to conduct and man¬ age its affairs, but if he shall become satisfied that the association is insolvent and cannot resume business, he shall immediately in¬ stitute proceedings in the proper court to have a receiver appointed for such association, and shall proceed to wind up its affairs and business for the benefit of its credtors and stockholders. For his service in managing and conducting the affairs of an insolvent assoc¬ iation he shall receive reasonable compensation, not to exceed two and one-half per cent of its assets, which, together with his necessary expenses, is to be paid out of said assets. 5427 C. O. S. 1921, L. 1913, p. 448. Note: This section is modified as to insolvency by Sec. 10, C. 28, L. 1925. 219. False Swearing. If any president or secretary or other person swear falsely as to any material fact in the affidavit required by this service, such person shall be guilty of false swearing. 5429 C. 0. S. 1921. Fees to the State Treasurer. Section 14. All fees and penalties collected herein shall be paid to the Bank Commissioner, which shall be paid to the State Treasurer for the benefit of the state. 5430 C. 0. S. 1921. 220. Penalties. Any person, firm or corporation violating any provisions of this Act shall be guilty of a misdemeanor and upon conviction thereof, shall be fined in any sum not less than One Hundred ($100.00) Dollars, nor more than One Thousand ($1,000) Dollars, and in the event that the provisions of this Act has been violated by any person, he may be punished in addition to the above and foregoing by imprisonment in the county jail for not less than thirty (30) days, nor more than six months. 5431, C. O. S. 1921. 221. Privilege of Investment in Federal Farm Loan Bonds. Section 1 (Senate Bill 315, S. L. 1917, p. 93). Any trust com¬ pany, building and loan association, insurance company or bank¬ ing company, organized under the laws of the State of Oklahoma, may invest its funds in Federal Farm Loan Bonds issued under the* provisions of the Act of Congress, approved July.17, 1916, and any foreign corporation which, under the laws of this state, is re¬ quired to deposit securities in the office of the State Treasurer in order to do business in this state, may deposit such Federal Farm Loan Bonds in lieu of any other security required by law to be so deposited. The officers having charge of any sinking fund in this state, or any county, city, town, township or school district thereof, may invest the sinking fund of the state or of such county, city, town, township or school district in Federal Farm Loan Bonds, and’said bonds shall constitute security for the deposit of any public funds and be for the investment of trust funds. 8586 C. O. S. 1921. 106 Mothersead, Bank Comm v v. FOREIGN BUILDING AND LOAN ASSOCIATIONS 222. Certificate of Authority. All foreign building and loan associations and all other corporations or associations of persons, in- corporated, organized residing or having their place of business out¬ side ot the State of Oklahoma and transacting a building and loan usmess in the State of Oklahoma, by whatever name they mav be known, shall conduct such business in the state in accordance with this article, and no such building and loan association shall have au¬ thority to transact any business in this state until it shall procure ±rom the Bank Commissioner of this state a certificate of authority so to do To procure such cerificate, such building and loan assoeia^ non shall comply with the provisions of this articde (L. 1905, p. 157) 1320 R. L.: 5404 C. O. S. 1921. Note: C. 28, L. 1925, seem to modify this but not repeal it. County does not require that foreign corporation be allowed to en¬ force contracts in conflict with state laws. Holt vs. Aetna B. & L. Assn. 78 Okla. 308, 190 Pac. 873. • i - 223 ' 1 ?y t , ifled . C °py of Charter. Each building and loan asso¬ ciation shall file with the bank commissioner a certified copy of its charter, constitution, by-laws and all other rules and regulations, showing its manner of conducting business, together with a state¬ ment, verified by the oath of the president or managing officer showing the amount of capital stock, assets and liabilities, and the kind or character of the same; which statement, verified by oath shall be filed semi-annually thereafter and the certificate of the bank commissioner shall be good for six months only from date thereof; and no provision of either the constitution, by-laws or rules and regulations shall be of any force or effect or be binding upon any person doing business with such association until a cer- lfied and verified copy of same has been filed with and approved by said bank commissioner and the provisions of this section fully complied with; if any president or managing officer of such build¬ ing and loan association swear falsely in the affidavit required in tins section, he shall be guilty of perjury. 1322 R. L.: 5406 C. O. 224. County Agents to be Appointed. Each building and loam association shall file with the bank commissioner a written state¬ ment, duly executed, naming a person in each county as its agent upon whom service of summons and all other legal process can be had, and m the event of failure of such building and loan associa¬ tion to name such agent m any county or counties, the bank com¬ missioner shall limit by its certificate of authority to such building and loan association issued, the territory in which same can tran£ act business to the counties in which agents are named. (L. 1905 I a 1 Foreign Building and Loan Association 107 1323 R. L.: 5407 C. O. S. 1921. 225. Fee For Certificate. In order to obtain the certificate of authority to transact business in this state, as heretofore referred to, each building and loan association shall, in addition to meeting the requirements of other sections of this article, file with the state bank commissioner an application in writing for such permit and shall accompany same with a fee of ten dollars, which fee shall be retained and not refunded in any case by the bank commissioner. If such bank commissioner is satisfied that such building and loan association is solvent and is doing and intends to transact a legit¬ imate business, and has not violated any of the provisions of this article, he shall, when all the requirements of this article have been fully complied with, issue to such building and loan association a certificate of authority to transact business for the period of six months from date of such certificate; and until such certificate of authority is issued no building and loan association shall have au¬ thority to transact business in this state, except to close up its business. (L. 1905, p. 158.) See Note (1) R. L. 5408 C. 0. S. 1921. 226. Commissioner To Examine. The bank commissioner may at any time investigate the condition of any building and loan asso¬ ciation doing business in this state, and he shall for the purpose of making such examination have all the rights and powers to per¬ form all things necessary to make such examination as he is now given in the examination for banks in this state. Whenever the bank commissioner ascertains that any building and loan association is insolvent or in a failing condition or that it has violated any of the provisions of this article, it shall be his duty to revoke the certi¬ ficate of authority of such building and loan association, and there¬ after it shall have no authority to transact any further business in this state except to wind up the old business on hand necessary to the closing up and dissolution of its business in its (this) state and upon revocation of its authority to do business in this state all obli¬ gations and debts owing by such building and loan association, in¬ cluding all notes, bonds or other indebtedness, shall at once become due and payable. After the bank commissioner has revoked such certificate of authority, he shall have the right and authority to is¬ sue a new certificate upon the building and loan association com¬ plying with all the requirements of this article and doing and per¬ forming all things which were necessary for the same to receive its first certificate of authority hereunder and satisfying the bank commissioner that it had remedied all wrongs by it committed by a violation of this article, and paying to sai dbank commissioner for such examination and renewal of authority the sum of twenty-five dollars as his fee. (L. 1905, p. 159.) See Note (2). 1325 R. L. 5409 C. O. S. 1921. C. 28 L. 1925 provide for a complete liquidation in event of insolvency. 108 Mothersead, Bank Comm v v. 227. Usurious Interest Prohibited. Section 1 . That Section 1326 of the Revised Laws of Okla¬ homa, 1910, be amended so as to read as follows: Section 1326. Any rate charged by a foreign building and loan association on account of interest or interest and premiums in excess of ten per cent per annum upon the amount loaned by such building and loan association which may be computed and collected monthly, shall be usurious and subject such company or association to the penalties for usury provided by the laws of the state. In estimating the amount of money paid by any borrower upon such loan in order to determine whether same is usurious there shall be included all interest premiums and all money paid to the company or its agent as commission, or in any other manner to procure such loan, except as hereinafter provided. Payments made by the bor¬ rower as dues on installments on shares of stock belonging to the boi rower, in the building and loan association, shall not be com¬ puted as interest on the loan: Provided, that such building and loan association may charge a fee not to exceed five dollars for ex¬ amination of title, and a membership fee not exceeding one per cent upon the amount of such loan fees for recording the mortgage or obligation, and a fee of fifty cents per month for each month that dues are delinquent.” (Chap. 283, S. L. 1915, p. 542.) 5410 C. 0. S. 1921. y ' Foieign corporation complying with, state law may enforce contract and same not usurious. Midland S. & L. vs. Landrum 71 Okla. 115, 175 Pac. 544. 227-a. Loans by Foreign Associations. Any resident of this state who may purchase stock in any such building and loan asso¬ ciation with the object and purpose of obtaining a loan of money from such building and loan association, and shall at the time of subscribing for such stock sign a written or printed application for such loan and either deliver such application to the agent of such foreign association, who has obtained his subscription for stock or who may mail his application for a loan of money direct to the 1 home office of such building and loan association, shall, upon com¬ plying with all the by-laws, rules and regulations of such associa¬ tion, which are not in conflict with this article, be entitled to a loan of money not to exceed the par value of his stock in such for¬ eign association. If such foreign association shall not, within sixty days from the date of such application for loan from such stock¬ holder, close up such loan and pay over the proceeds thereof to such borrower, less the expenses therein mentioned, and all prior liens on the real estate he proposes to mortgage to such foreign association, to secure such loan, then and in that event such for¬ eign association shall pay back to such proposed borrowing stock- holed all money paid for stock to such foreign association or its agent. (L. 1905, p. 161). Foreign Building and Loan Asssociation 109 See. 1S28 R. L. 5412 C. O. S. 1921. Applied: Midland Savings Assn. vs. Improvement Co. 34 Okla. 564, 126 Pac. 720. 228. Shareholders May Withdraw. Any shareholder or the legal representative of any shareholder wishing to withdraw from such building and loan association shall have the right and power to do so at any time. In order to perfect such withdrawal, it shall be necessary for such person to surrender to such made in writing by such person of such building and loan association, or of or upon any agent of such association, such person shall, if judgment be obtained, be entitled to recover in addition to the amount of judg¬ ment an all costs of his action, a reasonable attorney’s fee, to be fixed by the court rendering judgment. (L. 1905, p. 162). 1327 R. L. 5411 C. O. S. 1921. Note: Sec. 11 C. 28 L. 1925 appears to have repealed a part of this section regarding withdrawal. Partial withdrawals not permitted. See Sec. 172, this compilation. 229. “Resident” Defined. Whenever the words “resident of this state” are used in this article, they shall be construed to include all persons who have real estate in this state pledged as security for the payment of any obligation to such building and loan associa¬ tion. (L. 1905, p. 163). 1330 R. L. 5414 C. O. S. 1921. 230. Unlawful Soliciting—Penalty. Any person who shall represent or solicit business for any building and loan association in this state which is not authorized to transact business herein, shall be guilty of a misdemeanor, and upon conviction shall for the first offense be punished by a fine of not less than twenty-five dollars nor more than five hundred dollars, and upon conviction of the second offense shall be punished by a fine of not less than two hun¬ dred and fifty dollars and not more than five hunudred dollars, and shall be committed to jail for a period of not to exceed one year. (L. 1905, p. 163). 1331 R. L. 5415 C. O. S. 1921. 231. Transacting Business Without Certificate. Any building and loan association which shall transact business in this state without having first obtained a certficate of authority therefor as provided in this article, shall forfeit any pay to the State of Okla¬ homa, to be recovered in a civil action in the^ name of the State of Oklahoma, the sum of five thousand dollars. ( L. 1905, p. 163.) 1332 R. L.: 5416 C. O. S. 1921. Note: C. 28 L. 1925 seems to amend this section so far as obtaining permit only. 232. Compliance Required. All foreign building and loan asso¬ ciations doing business in this state shall comply with the require¬ ments of this article; and no building and loan association nshall he 110 Mothersead, Bank Comm., y. permitted to transact business in this state until certificate of au¬ thority has been obtained in accordance with the provisions hereof (L. 1905, p. 163.) 1333 R. L. 5417 C. 0. S. 1921. Note: C. 28 L. 1925 has changed this section and permit must be ob¬ tained from Board. 233. Construction of Article. This article shall not be con¬ strued to apply or repeal or effect the laws of the State of Okla¬ homa regarding domestic building and loan associations: Provided, that if any domestic building and loan association carries on its business outside of the county in whch its prncpal place of busi¬ ness is located, then such association shall be governed and regulat¬ ed by this article. (L. 1905, p. 164). 1334 R. L. Note: This law with regard to Foreign Corporations is greatly mod¬ ified and control thereof is fixed by law in the Board C. 28 L. 1925. BLUE SKY LAW 234. Speculative Securities. The term “ Securities ” as used in this Act shall be taken to mean stock certificates, shares, bonds, debentures, certificates of participation, membership contracts, con¬ tracts or bonds for the sale and conveyance of land on deferred pay¬ ments or installment plan, or other instrument in the nature thereof by whatsoever name known or called and including the capital stock of any and all corporations offering the same for sale. The term speculative securities” as used in this Act shall be taken to mean and include, (1) All securities to promote or induce the sale of which, profit, gain or advantage unusual in the ordinary course of legitimate businenss is in any way advertised or promised; (2) All securities for promoting the sale of which a commission of more than ten per cent is offered or paid; (3) All securities into the specified par value of which the element of chance or hazard of speculative profit or possible loss equal or predominate over the element of reasonable certainty, safety, and investment; (4) All securities the value of which materially depends on proposed or promised future promotion development rather than on present tangible assets and conditions; (5) The securities of any enter¬ prise, association, partnership or corporation, which has included or proposes to include in its assets a materal part thereof, patents, formula, good-will, promotion or intangible assets, or which has issued or proposes to issue a material part of its securities in pay¬ ment for formula, patents, good-will, promotion or intangible assets; (6) Securities made or issued in furtherance of promotion any enterprise or scheme for the sale of unimproved or undeveloped land on any deferred payments or installment plan, when such lands are not situated in the State of Oklahoma and the value of such securities materially depends on the future performance of Blue Sky Law 111 any stipulation by the promoters of such enterprise to furnish ir¬ rigation or transportation facilities, or other value enhancing util¬ ity or improvement. The term “speculative enterprise” as used in this Act shall be taken to mean any business undertaking, project, venture or activity for the promotion or furtherance of which “speculative securities,” as herein defined, are made, issued, sold, or offered for sale. For the purpose of carrying out the provisions of this Act, there is hereby created a Commission, to be known as the State Issues Commission, composed of the Bank Commissioner, who shall be chairman thereof, the Secretary of State and State Auditor. The said Commission shall have authority to appoint, with the approval of the Governor, a secretary, who shall receive a salary of $2,5000.00 per annum, payable monthly. Sec. 2270 C. O. S. 1921, L. 1919, p. 77. 235. Sale of Securities. It shall be unlawful for any person, co-partnership, association, or corporation, hereinafter called the promoter, either as principal, or through brokers or agents, to sell or offer for sale or by means of any advertisements, circulars, or pros¬ pectus, or by any other form of public or private offerings, to at¬ tempt to promote the sale of any speculative securities in this State, including capital stock of such promoter, unless there first shall have been filed with and approved by the said Commission, (1) a copy of the securities so to be promoted; (2) a statement in sub¬ stantial detail of the assets and liabilities of the person or company making and issuing such securities and of any person or company guaranteeing the same, including specifically the total amount of such securities and of any securities prior thereto in interest or lien, authorized or issued by any such person or company; (3) if such securities are secured by mortgage or other lien, a copy of such mortgage or of the instrument creating such lien, and a competent appraisal of valuation of the property covered thereby, with a spe¬ cific statement of all prior liens thereon if any; (4) a full state¬ ment of facts showing the gross or net earnings, actual or esti¬ mated, of any person or company making and issuing or guarantee¬ ing such securities, or of any property covered by mortgage or lien; (5) all knowledge or information in the possession of such promoter relative to the character or value of such securities, or of the property or earning power of the person or company making and issuing or guaranteeing the same; (6) a copy of any general or public prospectus or advertising matter which is to be used in connection with such promotion, and no such prospectus or adver¬ tising matter shall be used unless the same has been filed hereunder; (7) the names, addresses and selling territory in this State of any agents by or through whom any such securities are to be sold, and no such agents shall be employed unless such statement with re¬ spect to them has been filed hereunder, and there shall have been paid to the said Commission a registration fee of Five Dollars Mothersead, Bank Comm., v. 112 J j «j ($5.00) for each such agent. The payment of such fee shall be payment in full of all fees for registration of such agent until and including the first day of March next following; (8) the names and address of such promoter, including the names and addresses of all partners, if the promoter be a partnership, and the names and addresses of the directors or trustees, and of any person owning ten per centum, or more, of the capital stock, if the promoter be a corporation or association; (9) a statement showing in detail the plan on which the business or enterprise is to be conducted; (10) the articles of co-partnership or association or corporation and all other papers pertaining to its organization, if the securities be in¬ sured or guaranteed by a co-partnership or unincorporated asso¬ ciation; (11) a copy of its charter and by-laws if the securities be issued or guaranteed by a corporation; (12) a filing fee of Twen¬ ty-five Dollars ($25.00). 2271 C. O. S. 1921, L. 1919 p. 77. 236. Permit. If the said Commission shall decide that the sale of stocks or bonds will be fairly and honestly conducted, both to the corporation and to the public, such permit shall be granted, provided that the commissions, promotion and other incidental ex¬ penses, exclusive of the exempted expenses mentioned in Section 1 of this Act, shall not be more than fifteen per cent (15%) of the price at which such stock or bonds is to be sold as shown by the application or amended application. Provided, that where any proposed corporation has already sold its stock or bonds or a part thereof, or any part thereof has been subscribed at the time this Act shall take effect, this Act shall not affect stocks or bonds pre¬ viously sold or subscribed nor any contracts made in reference to same; but if any of the stock or bonds of said; proposed corporation remains unsold or unsubscribed, said corporation shall, neverthe¬ less, be entitled to a permit upon complying with the other conditions of this Act, including the future sale or subscription of any of its stock or bonds. The commission or promotion fee shall be paid to the agent or promoter as the stock or bonds are sold by him and paid for by the purchaser. The stock or bonds shall be considered as paid for when paid for in cash or property or labor of par value thereof. No permit shall be granted unless there shall ap¬ pear upon the subscription lists and contracts of such corporation or proposed corporation, in bold type, the amount of the commis¬ sions, promotion fees and other estimated expenses incident to the sale of such stock or bonds and the interest which the officer, agent, employee or promoter selling or contracting to sell such stock or bonds has in such sale; nor shall such permit be granted until the applicants thereof have entered into a bond for not less than One Thousand Dollars ($1,000.00) nor more than One Hundred Thou¬ sand Dollars ($100,000.00), the same to be fixed by the said Com¬ mission at not less than ten per cent (10%) of the stock or bonds Blue Sky Law 113 proposed to be issued. The said bond shall be payable to the said Commission, conditioned that the facts set forth in the application foi such permit, and the proof and statements offered to the said Commission, upon which the application is based, are true, and that they comply with the provisons of this Act in the sale of the stock or bonds of such corporation or proposed corporation. Said bond may be made with individual sureties or a surety company authorized to do business in the State of Oklahoma and the bond shall be ap¬ proved by the said Commission. 2272 C. O. S. 1921, L. 1919, p. 77. 237. Civil Remedies. Any person who shall be induced to pur¬ chase any stock or bonds of any corporation or proposed corpor¬ ation by the officers, agents, employees, promoters or trustees, by reason of any misrepresentation of any material fact concerning such stock or bonds, such person or persons shall have the right to bring suit upon the bond above provided for, and such bond shall be subject to, and secuurity for such person so purchasing the stock or bonds provided that such person shall not be entitled to recover more than the money paid, or the actual value of the property given,. or the labor performed, in exchange of such securities with legal interest from the date of the payment or the performance of the legal services, or the transfer of the property. One or more recoveries upon such bond shall not vitiate the same, but it shall remain in full force and effect, but no recoveries upon such bond shall ever exceed the full amount of same, and upon suits being filed in excess of the amount of same, the said Commission may re¬ quire a new bond, and if the same is not given within thirty days they may cancel the permit herein provided for. Whenever any permit has been issued, the corporation or persons receiving the same shall file a list of the names of their or its authorized of¬ ficers, agents and employees, and the post office addresses of each; and, in case of change of any of its officers, agents or employees, it shall file a list of such changes with the said Commission. 2273 C. O. S. 1921, L. 1919, p. 77. 238. Foreign Corporations. Every foreign corporation before selling or offering for sale and speculative securities, in this State, shall also file its written consent, irrevocable, that actions may be commenced against it in the proper courts of any county in this State in which cause of action may arise or the plaintiff may re¬ side, by the service of process on the Secretary of State, and stipu¬ lating and agreeing that such service of process on the Secretary of State shall be taken and held in all courts, to be as valid and binding as if due service had been made upon the company iteself, ment shall be authenticated by the seal of said foreign corporation, and shall be accompanied by a duly certified copy of the order or 114 Mothersead, Bank Comm., v. resolution of the board of directors, trustees, or managers of the corporation authorizing the said secretary and president to execute the same. 2274, C. O. S. 1921, L. 1919, p. 77. 239. Examinations. It shall be the duty of the said Com¬ mission, as soon as is practical, to examine the, statement and docu¬ ments so filed and if said Commissio nshall deem it advisable, they shall make, or have made, a detailed inspection, examination, audit and investigation of the affairs of the makers or guarantors of such securities which said inspection, examination, audit and in¬ vestigation shall be at the promoter’s expense. As a part of the aforesaid inspection, examination, audit and investigation, the said Commission may cause an appraisal to be made of the property of the maker or guarantor, including the value of patents, formula, good-will, promotion, and intangible assets, and shall furnish a full and complete statement or report of his inspection and invest¬ igation aforesaid to the said Commission. The said Cmmission shall, within ten days thereafter, give the promoter a hearing if he so desires. If the said Commission finds no legal objection to the en¬ terprise, or securities, it shall note in a book to be kept by the said Commission for that purpose that said person, co-partnership, asso¬ ciation or corporation has cmplied with Sectin 2 of this Act. But, if from the statements, papers and documents on file, and the in¬ vestigations and report of the said Commission, or from other evi¬ dence submitted, it shall appear, the said Commission shall find (1) that the makers or guarantors of said securities are insolvent, in failing circumstances, or are untrustworthy; (2) or that the promoters’ plan of business is unfair, inequitable, dishonest or fraudulent; (3) or that the promoters’ plan of business does not adequately secure the investors against the unlawful dissipation or mis-application of the funds of the enterprise or business; (4) or that the promoters’ literature or advertising is misleading and calculated to deceive purchasers or investors; (5) or that the se¬ curities offered, or to be offered, or issued, in payment for property, patents, formula, good-will or promotion and intangible assets are in excess of the reasonable value thereof; (6) or that the enter¬ prise or business of the promoter is unlawful or against public pol¬ icy; (I) or is a mere scheme of a promoter or promoters to get rich quick at the expense of the purchasers of the aforesaid secur¬ ities; the said Commission shall reduce its said findings to writings and attest the same by the signature of the chairman and secretary thereof. Notice of such finding, or findings, shall immediately be given to the applicant by registered mail. And it shall thereafter be unlawful for the promoter or any broker or agent of said pro¬ moter to sell, offer for sale, or by means of any advertisement, circu¬ lar or prospectus, or by any other form of public offering to attempt to promote the sale of any such speculative security, or secur¬ ities, in this State. Blub Sky Law 115 2275 C. O. S. 1921, L. 1919, p. 77. 240. Investigation. The said Commission shall at any time have the authority and jurisdiction to investigate the affairs of any speculative enterprise, the securities of which are being sold or off- eied foi sale in this State, and after giving the promoters a hear¬ ing, may if the evidence warrants, make any of the adverse findings enumerated in Section 2775 of this Act, and it shall thereafter be unlawful for any person, co-partnership, association or corpora¬ tion to sell, offer for sale, or by means of any advertisement, circu- ar, or prospectus or by any form of public offering to attempt to promote the sale of the securities of such speculative enterprise in this State. 2276, C. O. S. 1921, L. 1919, p. 77. 241. Actions to Vacate Findings. Any person, co-partnership, association or corporation being dissatisfied with any finding, or findings, of the said Commission made in accordance with the pro¬ visions of this Act, may, within thirty days from the making there¬ of, commence an action in any court of competent jurisdiction against said Commission as defendant, to vacate and set aside said finding, or findings, on the ground that the said findings, are unjust or unreasonable. The rules of pleading and procedure in such action shall be the same as, are approved by law for) the trial of equitable actions in the district courts of this State and on the hearing, the judge of said court may set aside, modify or confirm said findings as the evidence and the rules of equity may require. Appeals may be taken from the decision of the district court to the Supreme Court by either party in the same manner as is provided by law in other civil actions. Pending any such action, the said findings of said Commission shall be prima facie evidence that they are just and reasonable and that the facts found are true, and pending any such action the said findings of the said Commission shall remain in full force and effect. If no action be brought to set aside said findings within thirty days, the same shall become final and binding. 2277 C. O. S. 1921, L. 1919. p. 77. 242. Amendments. No amendment of the charter, articles of incorporation, constitution or by-laws of any such corporation or the articles of association or by-laws of any unincorporated associa¬ tion subject to this Act, shall become operative until a copy of the same has been filed with the said Commission, as provided in regard to the original filings of charters, articles of incorporation, or asso¬ ciation, constitution and by-laws, and it shall be unlawfufl for any such person, co-partnership, association or corporation to transact business on any other plan than that set forth in the statement required to be filed by Section 2 of this; Act, or td make, issue, sell or offer for sale any “security” or “securities” required to be filed by Section 2 of this Act, until a written statement showing in 116 Mothersead, Bank Comm., v. full detail the proposed new plan of transacting business and a copy of the proposed new “security” or “securities’’ shall have been filed with the said Commission, in like manner as provided in regard to the original plan of business and proposed ‘‘security’’ or “secur¬ ities.” 2278 C. O. S. 1921, L. 1919, p. 77. 243. Securities Not Included. The provisions of this Act shall not apply to, (a) securities of the United States, or any foreign government; or of any state or territory; or of any county, city, township, school district or other public taxing sub-division of any state or territory of the United States or any foreign government; (b) securities of public or quasi-public corporations, the issues of which are now regulated by the public service commission or board of similar authority of any state or territory of the United States, or securities senior thereto; (c) securities of state or national banks or trust companies, mortgage companies dealing exclusively in bona fide mortgages on farm and city real estate, or building and loan associations authorized by the State Banking Board to do business in this state; (d) securities of any domestic corporation organized without capital stock, for religious, charitable or reformatory pur¬ pose. The provisions of this bill shall not apply to the sale of stock or bonds where the same are sold for cash and no commission or fee is paid, directly or indirectly, for the sale of same, and no expense for such sale is charged either to the company of issue or the pur¬ chaser of such securities. 2279 C. O. S. 1921, L. 1919, p. 77. 244. Accounts to be Kept. The general accounts of every per¬ son, co-partnership, association or corporation, issuing or guaran¬ teeing any securities subject to the provisions of this Act, shall be kept in a business like and intelligent manner and in sufficient de¬ tail so that the said Commission or their authorized representative can ascertain at any time the financial condition of such person, co¬ partnership, association or corporation, and the books of account and affairs of any such person, co-partnership, association or cor¬ poration, shall be subject to examination by the said Commission or by their assistants, accountants or examiners, at any time said Commission shall deem it advisable, and in the same manner as is now provided for by the examination of state banks; and such per¬ son, co-partnership, association or corporation shall pay the actual traveling and hotel expenses of the assistant, accountant or exam¬ iner of the said Commission when he is absent from the Capital of the State for the purpose of making such examination. And it is provided further, that every person, co-partnership, association, or corporation making or guaranteeing any securities subject to the provisions of this Act, shall file at the close of business December 31st, of each year, and at such other times as may be required by the Blue Sky Law 117 said. Commission, a statement certified by the oath of some person having actual knowledge of the facts therein stated, setting forth, m such form as may be prescribed by said Commission, the financial condition, amount of property and liabilities of such person, co¬ partnership, association or corporation, and such other information as the said Commission may require. Each statement shall be ac¬ companied by a filing fee o fTwo-Dollars and Fifty Cents, ($2.50). All fees herein provided for shall be collected by the said Commis¬ sion and shall be turned into the State Treasury. It shall be un¬ lawful for any person, partnership association, or corporation sub¬ ject to the provisions of this Act, failing or refusing to comply with the provisions of this Section within ten days after compliance is required, to thereafter sell or offer for sale in this State any speculative stock which said person, partnership, association or cor¬ poration is sellng or offerng for sale in this State. 2280 C. O. S. 1921, L. 1919, p. 77. 245. Special Investigations. The said Commission shall have pow r er upon reasonable notice either upon their own initiative or upon complaint of any responsible person, to make or have made such special inspection or investigation as they may deem necessary in connection with the promotion, sale, disposal, or offering for sale or disposal in this State, or any certificates, shares, stocks, bonds, securities, contracts, or contracts or bonds for deeds, to determine whether the same constitute a violation of this Act, or any other statute of this State, by any individual, co-partnership, corporation, or associaation, promoting, offering, selling or pledging the same; and the said. Commission, their assistants or deputies, shall have the power to issue subpoenas and process compelling the attendance of any person and the production of any papers or books for the purposes of such investigation and examination, and shall have power to administer an oath to any person whose testimony may be required on examination or investigation; and any person who shall refuse to obey any such subpoena or make answer to any competent and material question propounded to him by the said Commission shall, upon conviction in any court of competent juris¬ diction, be deemed guilty of a midsemeanor, and fined in any sum not exceeding Five Hundred Dollars ($500.00) or be punished by confinement in the County Jail for not more than ninety days, or both such fine and imprisonment. Upon the conclusion of such investigation, the said Commission may make findings of any fact touching the matter or matters under investigation, and such find¬ ings shall be prima facie evidence of the truth of the matters there¬ in found by the said Commission in any action, either evil or crimi¬ nal, instituted under any of the laws or statutes of this State against the person, persons, partnership, corporation or association. The notice herein provided for may be given by registered letter mailed 118 Mothersead, Bank Comm v v. to the last known address of person or persons or corporations to be investigated and the said Commissioner’s certificate shall be suf¬ ficient evidence of such notice and the mailing thereof. 2281 C. O. S. 1921, L. 1919, p. 77. 246. False Statements. Any person who shall knowingly make or file or cause to be made or filed with the said Commission any statement, document, circular, advertisement or prospectus, required to be filed by this Act, which is false in any material respect or mat¬ ter, shall be deemed guilty of a felony, and on conviction in any court of competent jurisdiction punished by a fine of not less than One Hundred Dollars ($100.00) or more than Five Thousand Dol¬ lars ($5,000,000) or by imprisonment in the State penitentiary for not less than one nor more than five years, or by both such fine and imprisonment. 2282, C. O. S. 19921, L. 1919, p. 77. 246a. Penalty—Felony. Any person, partnership, association or corporation who shall commit in this State any act declared unlawful by Section two, nine or eleven of this Act, shall be deemed guilty of a felony and on con¬ viction in any court of competent jurisdiction be punished by a fine of not less than One Hundred Dollars ($100.00) nor more than Five Thousand Dollars ($5,000.00), or by confinement in the Oklahoma State penitentiary for a term of not less than one nor more than seven years. 2283, C. O. S. 1921, L. 1919, p. 77. 247. Private Securities Not Included. This Act shall not ap¬ ply to the owner of any speculative security who is not the maker or issuer thereof, who shall acquire and sell the same for his own account in the usual and ordinary course of business and not for the direct or indirect promotion of any enterprise or scheme within the purview of this Act, providing that such ownership in good faith. Repeated or successive sales of any such speculative security or securities shall be prima facie evidence that the claim of ownership is not bona fide, but is a mere shift or device to evade the provisions of this Act. 2284, C. O. S. 1921, L. 1919, p. 77. 248. False Entry. Any person who shall knowingly or will¬ ingly subscribe to, or make, or cause to be made any false statements or false entry in any book of account or any person, co-partner¬ ship, association or corporation, subject to the provisions of this Act, or exhibit any false paper with the intention of deceiving any per¬ son authorized to examine into the affairs of such person, co-part¬ nership, association, or corporation, or shall make or publish any Blue Sky Law 119 ™l S ^it tateme “V° f the financial condition of any person, co-part- aA tion or corporation subject to the provisions of this Act 01 shall knowingly make any false statements materially af- ctmg the value of the stocks, bonds or other securities offered „ If ! y K an 1 y SUC j per , son > co-partnership, association or corpor- TAVri , gU t I of X felony and upon conviction there- shall be fined not less than One Hundred Dollars ($100.00) nor more than Five Thousand Dollars ($5,000.00), or shall be imprisoned tentiary ^ ^ ^ n0r more than ten years in the State p eni- 2285, C. O. S. 1921, L. 1919, p. 77. ■ Index 121 INDEX Administrator—trust company may act Affairs wound up—insolvent bank_ Articles of incorporation. Assets—bank may pledge—when. disposal of—insolvency..._. Assignment of stock _ Must be reported _____ Assistant Bank Commissioner .. Bond and oath . Salary . Secretary Building and Loan Board_ Assistant to Commissioner ... Bonds and oath . Salaries ... Attorney—special ___ Salary .. Powers and duty ... Additional __ Salary _ Pees in usury case ... Auditors—building and loans_ 63 45 9 21 68 38 25 39 39 39 97 39 40 40 41 41 42 43 43 81 Authority—bank to organize _ Buy bonds, etc.. May be revoked _ ..-.97-102 ..-. 10 —.10-62 Banks—by-laws .. .. . Word used wrong . ^ May invest in bonds . 10-31 Misuse of word, crime. 55 Must report interest _ Student loans _ To be examined _ 81 32 43 39 Bank Commissioner—appointment .. Member Issues Commission __ _ Bankers lien . Bills payable—limit .. Margin of security . .. 21 False issue of—Penalty ...... Blanks—Bank Commissioner to furnish .... 17 Blue sky law ____ Commission Created ._ Speculative securities __ Sale of ..... Of foreign corporation . 113 Permits ___ _. Securities not included .__ Examination of applicant . By-laws, charter, etc., to be filed ... Investigation of applicant . _ . ^ Special __ ”. 0 Private _ 33 21 58 25 110 111 110 111 112 116 115 115 117 118 Courts may review, when _.._ Accounts must be kept False statement _ Penalty _ False entry _ Board—Banking—members Banks may select _ 116 118 118 118 35 36 122 Index Continued Removal .-. Bond Clerk—office—salary . Bonds—employees of banks . Approval by directors . Bank may purchase U. S. May invest in .. Borrowing money by officer—Crime Building and Loans . Auditors . Board .••- May be removed . By-laws . Rule . Rule . Cancellation fee . Capital stock . Rule . Increased . How' increased . Certificate from Commissioner Term . Charter . Notice of application for - May extend life . Directors—terms . Exempt from taxation .. Examination . Pay for . Rule of 4c fee . False swearing . Fees to State Treasurer . Incorporation . Notice of .. Relates back ..— Insolvency . Interest rate . Liquidation . Loan or Investment fund . Loans without bids .. Management . May Extend Charter . Matured Shares .••. May Borrow Money .. Rules .. May Purchase at Foreclosure - May Sell Notes and Mtg.••- Married Women—Stock . Minors Stock . Neglect not Forfeiture . No Voluntary Assignment . Oath of Officer . Payment of Loans . Penalty violating laws of . Regulation of .••. Foreign to deposit . Rule . Rules of Board .. Seal—to purchase . Series of Stock . Semi-annual report . .... 36 .... 42 .... 14 .... 13 ..10-64 ..31-64 .... 53 .... 87 97-102 .... 96 .... 102 ..... 89 ..... 89 . 90 . 101 . 88 . 88 . 88 ..... 89 ... 104 . 104 . 87 . 91 . 94 ...... 94 . 96 .98-104 .. 99 ...... 99 . 105 . 105 . 91 . 91 . 95 . 100 . 94 . 101 . 95 . 103 . 92 . 94 . 95 . 100 . 100 . 91 __ 100 ...... 95 . 95 . 91 . 104 . 93 .. 90 . 105 . 99 . 99 . 100 . 98 . 93 . 94 . 94 Index Continued 123 Stock Certificates . Stock—how issued Rule __ Minors and Married Women Supervision by Board By Commissioner Validating- Mortg-ag-es . Vacancy . Voluntary liquidation . Withdrawal fees . Foreign .. Agents to be appointed _ Certificate of authority _ Certificate fee ... Charter-file copy Commissioner to Examine Loans by . Must comply with law Not apply to domestic _ “Resident” defined _ Shareholders may withdraw Transacting business ... No certificate . Unlawful soliciting . Usurious contract prohibited . 93 . 103 . 103 . 95 — 98 . 102 . 91 . 94 . 104 . 101 .... 106 .... 106 — 106 ..... 107 .... 106 .... 107 .... 108 109 .... 110 .J. 109 .... 109 .... 109 ... 109 ... 109 ... 108 Call reports by Commissioner Capital stock—banks . Not to be impaired . Proceedings when impaired Building and loans ... Increased . Trust companies __ Change—how .. With bank ___ Liable for deposits _ Certificate—of authority . Cheats, frauds and bogus checks .. Checks—certified . False—crime . Bogus .. Penalty . Charter—must be approved Building and loan .. Change—capital stock .’ ’ Claims—notice to creditors Clerks—chief—salary . Bond—salary __ Law—salary __ Convicted person—not to be in bank Commissioner—powers Appointment __ Assistant ... Bond and oath _.._ Examiners . Salary _.._ Corruption of . Council—Executive .. County Attorney—enforce bank laws Enforce trust laws . .. 17 . 11 . 20 .22 . 88 . 88 - . 69 .- 69 . 75 . 76 .. 10 - . 86 .. 42 .57-59 ........ 86 . 87 . 37 . 91 . 11 . 48 .- 42 . 42 . 43 . 38 ....... 38 . 39 . 39 . 40 __ 39 . 41 . 60 . 36 . 61 . 68 .124 Index Continued Collateral—may redeem -- Compensation—liquidating agents -- Attorneys —..— Crimes—certified check . Concealment of records —-- Corruption of Commissioner - Certified check—No funds - Corruption in office - : -"- Depository of funds ---- Destruction of records - Dispose of funds—insolvent - Embezzlement --- False advertising - False cert, of deposit - False draft —-- False check ---- False reports -- False entry ---*' False statement ... False swearing ---- Fraud - Give preference ----- Loans without approval -- Loans to officers .... Misapplication of funds - Misuse word “bank” -- Officers borrowing money -- Penalty for violations - Pledge of assets --- Receiving deposits—insolvent - Trust company false report - Building and loan false swearing -••- Debts—Commissioner may compound - Notice to bank --- Deposits—general ---- Charter revoked but receiving .. By guardian —--"- Rate of interest .*--- Receiving when insolvent —••--- Trust company may receive --- Of personal property ..- Special -••.. May guarantee -- Fiduciary property.. Capital of Trust Co.—liable for .. Withdrawal -••.... Depositories—banks and Trust co... State funds --".. Security for ... Approval ----- Sinking fund -- County funds .—---- Directors—board of -- Liabilities --- Must fix bonds - Loans without approval --- Of Trust company - Of building and loans --- Dividends—reported - Failure to report -- ... 50 ... 49 ... 49 ... 20 ... 60 .... 60 ... 58 .... 37 ... 29 .... 60 .... 58 .... 55 .... 55 .... 57 .... 57 .... 59 ..53-68 .... 58 .... 60 57-105 .... 55 .... 21 ..... 60 ..... 53 ..... 57 ..... 55 ..... 53 _ 61 _ 21 _ 54 _ 68 _ 105 ...48-51 _ 51 _ 10 _ 23 _ 30 _ 19 _ 54 _ 63 . 63 ..... 63 ...63-68 . 68 __ 76 . 76 __ 26 ....26-27 __ 27 __ 27 _ 28 __ 28 _ 12 _ 12 _ 13 _ 60 _ 65 ...... 94 _ 18 __ 18 Index Continued 125 May declare . Must build surplus ... Only from profits . Of trust company _ Drafts—certified .. False ..... Examinations—banks to have Fees for . Executive Council—kow named Fees ... Executor—trust company may be Trust company may vote stock . Not liable as stockholder . False advertising- _ Entry ..... Swearing . Statement .. Reports . Checks . Federal Reserve Bank ... May Join _.... No limit to loans. Fees—trust company not interest .." ” Examination .... Fidelity bonds—trust company may write Employees of banks . Fiduciary deposit of trust company Trust Company must deposit .. Amount . Bank Commissioner to examine security Fiscal Agent—trust company may be .. Foreclosure building and loan may purchase at Funds—reserve required Misapplication __ Fraudulent use of funds ___ Furniture and fixtures—limit .~ Guarantee titles—trust company may. Guaranty Fund—title to .™ ” Guardian—deposit by Trust company may act .. No limit __ Vote stock as .. Not liable on stock... Impaired Capital—trust company. Incorporation—bank .. Building and loan ......__ Trust company .. May extend building and loan Indebtedness—departments to report .. Attorney General to collect .. Insolvent—banks . May repair credit ._ May resume business _.._ Notice to creditors __ Dividends of __ Inventory ___ Assets collected.. Deposited .. Redeem collateral ... .. Trust company . - 2C . 20 . 20 . 66 - 20 .57-59 . 43 . 43 . 36 -- 36 . 63 - 69 ■. 68 ..31-55 .57-58 .57-105 . 60 . 53 . 59 —. 33 .. 34 . 35 .. 77 . 43 . 64 . 14 . 68 . 71 . 71 . 71 . 64 . 91 . 16 . 57 . 55 . 10 . 64 . 52 . 30 .63-65 . 65 . 69 . 69 . 73 . 9 . 91 . 61 . 94 . 44 . 44 . 25 - 46 .. 47 .. 48 . 50 . 49 . 49 . 49 . 50 . 74 126 Index Continued Inspection—records of Trust Co... Interest—rates—usury . Liability of endorser of note for usury . May be deducted from loan . Or judgments . After breach of contract . Building and loan rates . Investments—by trust company . Jurisdiction denied in usury case. Letters of Credit—trust company may issue . Liquidation—act retroactive . Voluntary . To wind up .••. Suits in name of state.. Notice to creditors . Inventory . Assets collected —..-. Dividends ..- Title in state . Agents .. Attorneys ..—.-. Salary .. Compensation .-.-. May redeem collateral .-. Prior mortgages .. Limitation of foreclosure .. Surety company may participate .. Loans on real estate—bank . No new—when . Total to any one person .-. Payment by building and loan . By foreign building and loan - Losses from surplus .••. Misapplication of funds . Money—taxation of .-. Scheduled . Mortgages to building and loan valid . National bank—become state bank . Notes—taxation of . Officers—to give bond —.. Bond to be approved . Removal of .... Violation of law by . Overdrafts ... Convicted person not to be . Borrowing money from bank .-. Organization of banks .••. Certificate . Trust company . Over drafts .— ••. Permit—may be revoked . Possession—of banks . Posting notice ... Preferences—prohibited . Records—to be preserved—banks .-. Trust company ....... Inspection . Real Estate—loans on . May own .. Rediscount—no limit . ..... 69 .... 78 ..... 80 .... 82 ..... 82 . 82 ..... 94 _ 66 . 80 . 64 . 52 . 19 . 45 ..... 47 ....47-48 . 49 .. 49 _ 50 _ 51 . 46 . 46 . 47 . 49 . 50 . 51 . 51 . 52 . 10 . 16 . 17 .•• 90 _ 108 . 20 . 57 . 86 . 86 _ 91 . 23 . 84 . 14 .13-14 . 14 . 14 . 21 _ 38 .. 53 . 9 . 10 . 61 .. 21 . 23 . 18 . 18 . 21 . 25 . 66 . 69 ..10-64 10-11-23 . 21 Index Continued 127 Reports—required ____ Published __ Failure to make _ Call .. By trust company _ Published __ False .. Reserve—required—Banks No new loans _ Rules .. Safety vaults—trust company Rents not paid .. Saving-s deposits—trust company Capital liable for . Accounts, of minors . Invest trust funds . Supervision . Withdrawals .. Securities—not in commerce For state funds . For county funds . Bonds liable for .. Of trust company examined . May be examined . Deposited with State ..... Liable for debts . Additional deposit . Shares of stock—no loan on .. As collateral may sell . Personal property May be transferred . Sale to be reported . Assignment . Taxation of __ Special deposit—trust company State depository—when Stenographers—office . Stockholders—additional liable Total indebtedness . Notice of increase .. Impair capital . List kept . Liability on failure _ May be compounded . Trust company .... Trust company may vote . Student loans . Surety company may participate Surplus—build up . Losses out of . Taxation—banks . Trust company .. Notes, bonds, etc. .... When . How distributed . Penalty ___ Failure to pay.. Money ___ Money and credits—rate .. Scheduled . - 17 .. 18 .. 18 - 44 . 66 . 67 . 53 . 16 . 16 .25-26 . 63 . 70 - 75 . 76 .— 76 . 77 -— 76 ...... 76 ...... 15 . 27 . 29 .-27-30 . 71 . 71 . 71 . 72 . 73 ...15-25 .. 15 .. 24 ..... 24 . 25 . 38 ...77-82 . 63 —. 26 ..... 42 ...15-62 . 25 11 ..... 22 ..... 22 ..... 48 .... 48 .... 68 .... 69 .... 32 .... 52 .... 20 .... 20 .... 82 .... 77 .... 84 .... 84 ... 85 ... 85 ... 85 ... 85 ... 86 ... 86 128 Index Continued Building - and loan exempt .-. Trust companies—articles of incorporation . Attorney in fact may be.. Accounts of minors - Bank under supervision .-. Book open to inspection . Bonds and warrants— buy . m. Capital stock ... Change of capital .-. Notice . How . Commercial bank—may have Capital for ... Deposit securities with state Amount .. Certificate .. Liable for debts . Additional . Directors . Dividends of .. Failure to report - Fees not interest —. Fiduciary deposit special ... Fidelity bonds . Guardian—no limit —. Incorporation --- Investment by .—. Impairment of capital —..... Insolvency and liquidation ..... Investment of trust funds ... Loan of money, etc. ~.—---- May engage in banking .....-. May act as executor ... No limit as Guardian ..... Records of -••--- Report of ..--- Published -••... Shareholders -- Executor not liable --- Guardian not liable -- Executor to vote for - Liable when —••... Safety deposit boxes —.... Failure to pay rent .—... Supervision and control ...-.-. Taxation of stock —.-... “Trust” not to be used . U. S. Bonds—bank may buy ..-.-. Trust company . Usury—banks must report .—... Attorney fees when .—.-. Forfeiture of charter --. How liquidated .1..-. Jurisdiction denied ...••. Liability as endorser of note .-. Interest rate . Penalty —.— Building and loan not Usury prohibited Voluntary liquidation . TH SH ftRYi FT HE FEB 2 7 1933 . 96 .62-65 ... 63 _ 76 . 75 .. 69 .. 64 . 65 .. 69 . 69 .69 _ 74 . 75 . 71 . 71 . 72 . 72 . 73 .. 65 .. 66 . 68 ... 77 .. 68 .. 64 . 65 ... 61 . 66 __ 73 _ 74 . 77 .. 64 .11-74 ..63-65 . 65 ___ 66 . 66 .. 67 _ 68 . 68 .. 68 __ 69 . 62 .. 70 . 70 . 76 . 77 . 77 . 10 . 64 ... 81 . 81 . 81 . 79 . 80 . 80 . 78 ... 78 .._.... 90 . 108 .18-19 UNIVERSITY OF ILLINOIS UNIVERSITY OF ILLINOIS-URBANA A 3 0112 064193631