amount un shares and and sale for face value, exclusive of all other property, assets and effects it may have, and to be used directly in its business. That no bank shall be incorporated with a capital stock of less than five thousand dollars. SECTION 20. Payment of the amount that may at Collection of any time remain unpaid on any share of the capital paid on stock may be required by the board of directors at forfeiture such time, in such amounts, either in whole or in non-payment. part, as they may determine, and upon neglect or refusal of any stockholder to make the required payment, the same may be collected as a debt by a suit at law, or the board of directors may at their option sell the stock on which payment is delinquent and dispose of the same to any person making payment of the amount required thereon, after thirty days notice of such sale, published in a newspaper of general circulation published in the county in which such bank is located. board of how filled. SECTION 21. Any vacancy in the board of directors Vacancy in caused by the death, resignation, removal for cause, directors, becoming disqualified by ceasing to own in his own right the required amount of stock, or other cause, shall be filled by the remaining directors by the appointment of a stock holder having the required qualifications, who shall take the oath of office and hold his office until the annual election thereafter held. share hold SECTION 22. Each shareholder shall be liable, and Liability of individually responsible equally and ratably without ers. benefit of exemption laws, for all contracts, debts, obligations and engagements of the bank to an amount equal to double the par value of all the stock held by him. SECTION 23. Every bank shall at all times have on Reserve fund. hand as a reserve in available funds, an amount equal to at least fifteen per cent. of the aggregate amount of its deposits; two-fifths of the said fifteen per cent. shall be cash in the vaults of the bank, and whenever the same available funds, consisting of cash on hand and balances due from other solvent banks, shall fall below the reserve herein required, such bank shall not make any new loans or discounts, otherwise than by discounting or purchasing bills of Limitation of rediscounts. Banks not to make loans its stock. exchange payable at sight, nor receive any money or other valuable thing on deposit without first giving actual notice to the depositor of the then condition of the bank, nor shall such bank make any dividends of its profits until it has on hand the available funds required by this act. SECTION 24. The aggregate amount of the rediscount and bills payable of any bank shall at no time exceed two-thirds of its paid up capital. SECTION 25. No bank shall make any loan or dison shares of count on the security of the shares of its own capital stock, nor be the purchaser or holder of any such shares, unless such security or purchase shall be necessary to prevent loss upon a debt previously contracted in good faith; and stock so purchased or acquired shall, within six months from the time of its purchase or acquirement, be sold or disposed of at public or private sale, and in default thereof a receiver may be appointed to close up the business of the bank: Provided, That in no case shall the amount of stock so held exceed ten per cent. of the paid up capital of such bank. For what purpose banks may hold real es same may be held. SECTION 26. Any bank may purchase, hold and convey real estate for the following purposes only: tate, and time For the necessary and convenient transaction of its business; such as shall be conveyed to it for debts due the bank; and such as it shall purchase at sales under judgments and decrees upon enforcement of its securities; but the bank at such sale shall not bid a larger amount than will satisfy its debts, allowing for costs: Provided, That in case of collection of debts. under decree of foreclosure of mortgage or on execution, it shall be permitted to bid such an amount as may be necessary under the law to secure its debt. No real estate so acquired in satisfaction of debts, or at a sale upon its judgments and decrees, shall be held longer than five years, and within thirty days thereafter must be sold at public or private sale. And at no time shall the amount of real estate held by any bank exceed in aggregate value an amount equal to fifty per cent. of its paid up capital. SECTION 27. and when div- be withdrawn, Capital not to be withdrawn No bank shall withdraw, or permit to either in the form of dividends or and may not otherwise, any part of its capital. If losses have been idends may sustained, or the expenses of operation are equal to be declared. or exceed the undivided profits on hand, no dividend shall be made; and no dividend shall be made by any bank to an amount greater than the net profits on hand less the losses and bad debts. of stock may person trans SECTION 28. In case any person holding any stock How transfer in any bank shall sell, transfer or dispose of such relieve the stock, knowing that such bank is insolvent or in fail- ferring same. ing circumstances, or that its business is being conducted in an unsafe manner, he shall, in the event of such bank becoming insolvent and unable by reason of such insolvency to carry on its business, be deemed the owner of such stock and liable thereon the same as if such stock had not been sold, transferred or disposed of, and such liability may be enforced against him by an action at law, to the extent provided in this act, whenever by the provisions thereof it may become necessary to enforce the same. stock must be reported. SECTION 29. No transfer, sale or disposal of stock Transfer of shall be sufficient to exonerate or relieve the person recorded and selling, transferring or disposing of the same from his liability thereon, unless such sale, transfer or disposal, the name of the person selling, transferring or dispos ing of the same, the name of the person to whom the same is sold, transferred or disposed of, the number of shares sold, transferred or disposed of, and a designation thereof, and the date of the sale, transfer or disposal thereof, be entered upon the books of the bank and the same immediately reported to the Territorial Banking Board as fully as is required of its entry on the books of the bank. The provisions of this section shall in no way be construed to affect the provision of section 28 of this act. stockholders Stockholders directors, or meetings by may act at proxy, and SECTION 30. At any meeting of the of any bank for the election of their other purposes, any stockholder may act through how. some other stockholder of the bank at such meeting, upon such other stockholder holding and presenting duly accredited authority, in writing, verified by the affidavit of the stockholder giving such authority, which authorities shall be kept on file and made a part of the records of the bank. Voluntary liquidation, how made. Dividends, when and how declared. Special reports by banks. How persons interested in bank may borrow therefrom. Penalty for borrowing from bank SECTION 31. Whenever any bank shall desire to go into voluntary liquidation, it shall first obtain written permission from the Territorial Banking Board so to do, and the said board may, before granting such permission, cause a special examination to be made of the condition and affairs of such bank. SECTION 32. Any bank may semi-annually declare a dividend of so much of the net profits as the directors thereof may deem expident, but such bank shall, before declaring a dividend, carry one-tenth of its net profits to its surplus fund until the same shall amount to twenty per centum of its paid up capital stock. SECTION 33. The Territorial Banking Board shall have power and authority to call for special reports from any bank whenever it may deem it necessary in order to obtain a full and complete knowledge of the condition of such bank. SECTION 34. No bank in this territory shall be permitted to carry any note or obligation of any director, stockholder, officer or employe of such bank as any part of the assets of the bank, unless the same be amply secured by sureties other than persons directly interested in the bank or other security. And no stockholder, director, officer or employe of a bank shall either directly or indirectly be permitted to borrow any of the funds of the bank upon his own note or obligation, or upon any note or obligation made to him for accommodation, without having first obtained the approval of a majority of the board of directors of the bank, and the approval, if obtained, shall be made a part of the records of the bank; and in no case shall the total liabilities of the several stockholders, directors, officers and employes of any bank, excepting the amount that may remain unpaid on any share or shares of stock, exceed twenty-five per cent. of the paid up capital of such bank. But the discount of bills of exchange drawn in good faith against actual existing values, and the discount of commercial paper actually owned by the person negotiating the same, shall not be considered as money borrowed. SECTION 35. Any member, stockholder, director, officer or employe of any bank, who shall violate any of the provisions of section thirty-four of this act, except as prescribed shall be deemed guilty of embezzlement of the funds of the bank to the extent of the note or notes, obligation or obligations so given, and upon conviction shall be punished as provided by law as for embezzlement. SECTION 36. of condition Whenever authentic information veri- Information fied by the affidavit of not less than five depositors in given by depositors. any bank, who shall state under oath the amount of their deposits, is presented to the Territorial Banking Board, setting forth that the affairs of such bank are in an unsafe condition, [or are] being conducted in an unsafe manner, it shall be the duty of said Banking Board to at once inquire into the condition and affairs of such bank, and, if deemed advisable, cause a speedy examination thereof to be made. on loans to rations. SECTION 37. No bank shall loan to, or by contract Limitation incur, the debt or obligation of any single corporation, other corpopartnership, firm or association, including in such loan or obligation all loans made to the several members of such corporation, partnership, firm, association or individual, jointly or severally, an amount more than ten per cent of the total capital stock of said bank: Provided, That if the bank shall violate the provisions of this section, it shall be no defense by the borrower to an action by the bank on the obligation. using any ment indica ing business bank under SECTION 38. Any person, association of persons, Penalty for company, corporation, partnership or firm, not en- advertisegaged in the banking business, or which shall have tive of bankbeen engaged in the business of banking prior to the when not a passage of this act, under the provisions of this act, this act. and not engaged in the business of banking under the laws of the United States, using [the] words, "bank," "banker," "bankers," "banking" or "depository," other than of articles, goods and property specially mentioned and not money, or other thing current as money, to designate his, their or its business, on a painted, printed, or written sign, at his, their or its place of business, or in a newspaper, circular, or any other kind of advertisement, or any letter head, or any envelope used by him, them or it, shall be deemed guilty of a misdemeanor, and upon conviction fined |