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further, instruct the people of the State, by lecture and demonstration, as may in his judgment be practicable and necessary, in the best methods of preserving and protecting their property and their health against injuries by insects; and he shall prepare, from time to time, articles on the injurious and beneficial insects of Illinois, containing the results of his researches, which articles shall be published as bulletins of the Agricultural Experiment Station, and shall also be issued biennially in an edition of one thousand copies as his official report. He shall present to the Governor biennially an executive report describing the operations and publications of his office, together with a financial statement in detail.

§ 2. To carry out the provisions of this Act there is hereby appropriated the sum of twenty-five thousand dollars ($25,000.00) per annum: Provided, that five thousand dollars ($5,000.00) per annum, or so much thereof as may be necessary, shall be set aside for expenses incurred by the State Entomologist under the "Act to prevent the introduction and spread in Illinois of the San Jose scale and other dangerous insects and contagious diseases of fruits:" And, provided, further, that the work outlined in this section shall be carried out on lines agreed upon by the State Entomologist and an advisory committee to consist of the director of the Agricultural Experiment Station, two members to be appointed by the Illinois Farmers' Institute and two members to be appointed by the Illinois State Horticultural Society.

§ 3. The advisory committee herein named shall meet at such times and places as may be designated by the State Entomologist, or upon a request of a majority of the committee. They shall serve without compensation, except for expenses, to be paid out of the appropriation herein made.

4. The Auditor of Public Accounts is hereby authorized and directed to draw his warrant on the State Treasurer for the sum herein appropriated, upon the order of the chairman of the board of trustees of the University of Illinois, countersigned by its secretary, and with the corporate seal of said university, and no installment subsequent to the first shall be paid by the Treasurer, nor warrant drawn therefor, until detailed accounts showing expenditures of the preceding installment have been filed with the Auditor of Public Accounts.

APPROVED May 25, 1907.

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AN ACT to amend sections four (4), five (5), ten (10) and eleven (11) of an Act entitled, "An Act concerning corporations with banking powers," approved June 16, 1887; submitted to a vote of the people at the November election, 1888, and adopted, as amended by an Act approved June 3, 1889; submitted to a vote of the people at the November election, 1890, and adopted, as amended, by an Act approved June 4, 1897, and ratified by the people at the election of November 8, 1898, and adopted, as amended, November 28, 1898.

SECTION I. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That sections four (4), five (5), ten (10) and eleven (11) of an Act entitled, "An Act concerning corporations with banking powers," approved June 16, 1887; submitted to a vote of the people at the November election, 1888, and adopted, as amended by an Act approved June 3, 1889, submitted to a vote of the people at the November election, 1890, and adopted, as amended by an Act approved June 4, 1897, and ratified by the people at the election of November 8, 1898, and adopted, as amended November 28, 1898, be amended to read as follows:

4. The directors so elected may proceed to organize by the election of one of their number as president, and may appoint the necessary officers and employés and fix their salaries to carry on the business of the bank or association and make by-laws (not inconsistent with this Act) for the government of the bank or association; and each director shall take and subscribe to an oath, such as the Auditor shall prescribe, of fealty to the bank or association of, which he is director, and that he will, so far as the duty devolves on him, diligently and honestly administer the affairs of such bank or association, and will not knowingly violate or willingly permit to be violated any of the provisions of this Act; and that he is the owner in good faith and in his own right of the number of shares of stock required by this Act; and that same is not hypothecated or in any way pledged as security for any loan or debt. Such oath subscribed by the director making it and certified by a proper officer authorized to administer oaths, shall be immediately transmitted to the Auditor and shall be filed and preserved by him in his office. The directors shall cause to be kept suitable books

of record of all the transactions of the bank or association, and shall furnish to the Auditor lists of the stockholders and copies of any other records the Auditor may require. And there shall be an annual meeting of the stockholders for the election of directors each year on the first Monday in January, unless some other date shall be fixed by the by-laws of the association. Any omission to elect directors shall not impair any of the rights and privileges of the association or of any person in any way interested, but the existing directors shall hold office until their successors are elected and qualified, as in such cases may be by law provided. Vacancies may be filled by a two-thirds vote of the remaining directors.

Every director of any bank or association organized under the provisions of this Act must own in his own right, free of any lien or incumbrance, at least ten shares of the capital stock of such bank or association of which he is a director. Any director who ceases to be the owner of ten shares of the capital stock of such bank or association, or who becomes in any form disqualified, shall therefor vacate his place as such director.

The directors of any bank or association organized under the provisions of this Act shall hold regular meetings at least once each month, and there shall be present a quorum, as may be prescribed by the by-laws of such bank or association, approved by the Auditor of Public Accounts.

Any officer, director or employé of any bank or association organized under the provisions of this Act, who shall wilfully and knowingly subscribe to or make, or cause to be made, any false statement with intent to deceive any person or persons authorized to examine into the affairs of such bank or association, upon conviction thereof, shall be punished by imprisonment of not less than one year or more than ten years.

§ 5. When the directors have organized, as in section 4 of this Act, and the capital stock of such association shall have been all fully paid in and record of the same laid before the Auditor, he shall, by himself or some competent person of his appointment, make a thorough examination into the affairs of such association, and if satisfied the authorized capital [stock] has been paid in, and that the association has the full amount dedicated to the business, including proposed surplus, if any, and when they pay into the Auditor's office the reasonable expenses of such examination, he shall give them a written or printed certificate under seal authorizing them to commence the business designated in section I of this Act. And said certificate and the permit issued in accordance herewith, duly certified by said Auditor, shall be filed and recorded in the office for the recording of deeds in the county where such bank is organized, and the original or a certified copy thereof shall be evidence in all courts of the existence and authority of said corporation to do business. Upon the recording of said certificate and permit said bank shall be deemed fully organized and may proceed to business.

The Auditor may, in his discretion, withhold the issuing of the said certificate authorizing the commencement of business when he is

not satisfied as to the personal character and standing of the officers or directors elected or appointed, in accordance with sections three and four of this Act; or when he has reason to believe that the bank is organized for any purpose other than that contemplated by this Act.

§ 10. The total liabilities to any association, of any person or of any corporation or firm, for money borrowed, including in the liabilities of a company or firm the liabilities of the several members thereof, shall at no time exceed fifteen per cent of the amount of the capital stock of such association actually paid in and unimpaired and fifteen per cent of its unimpaired surplus fund.

Provided, however, that the total liabilities of any such person, company or firm, shall at no time exceed thirty per cent of the amount of capital actually paid in: And, provided, further, that undivided profits shall not be construed as a part of the surplus; but the discount of bills of exchange drawn in good faith against actually existing values, and the discount of commercial or business paper actually owned by the person negotiating the same shall not be considered as money borrowed.

Every such loan made in violation of the provisions hereof shall be due and payable according to its terms, and the remedy for the recovery of any money loaned in volation of the provisions hereof, or for the enforcement of any agreement, collateral or otherwise, made in connection with any such loan, shall not be held to be impaired, affected or prohibited by reason of such violation, but such remedy shall exist, notwithstanding the same. But every director of any such association who shall violate, or participate in, or assent to such violation, or who shall permit any of the officers, agents or servants of the association to violate the provisions hereof, shall be held liable in his personal and individual capacity for all damages which the association, its shareholders or any other person shall have sustained in consequence of such violation.

It shall not be lawful for any bank to loan to its president or to any of its vice presidents or its salaried officers or employés, or to corporations or firms, controlled by them, or in the management of which any of them are actively engaged, until an application for such loan shall have been first approved, both as to security and amount, by the board of directors.'

§ 11. Banks or banking associations may be organized under the provisions of this Act in all cities, towns and villages with a minimum capital stock according to the population of such cities, towns and villages, as follows:

In all cities, towns and villages of not exceeding five thousand inhabitants, of twenty-five thousand dollars.

In all cities, towns and villages of over five thousand inhabitants and less than ten thousand inhabitants, of fifty thousand dollars.

In all cities, towns and villages of ten thousand inhabitants and less than fifty thousand inhabitants, of one hundred thousand dollars.

In all cities and towns of fifty thousand inhabitants or more, of two hundred thousand dollars.

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Should the capital stock of any bank organized under this Act become impaired, the Auditor shall give notice to the president to have the impairment made good by assessment of the stockholders or a reduction of the capital stock of such bank, if the reduction should not bring the capital below the provisions of this section; and if the capital stock of said bank shall remain impaired for thirty days after notice by the Auditor, he shall have power, and it is hereby made his duty, to enter suit against each stockholder in the name of the People of the State of Illinois, for the use of said bank, for his or her pro rata proportion of such impairment, and when collected shall pay over the amount thereof to said bank; and the judgment in such case shall be for the amount claimed, with all costs and reasonable attorney's fees, which fees shall be fixed by the court; or, if it appears from the reports made to the Auditor under this Act, or from any examination made by or on behalf of the Auditor, that the conditions of any bank organized under this Act are such that the impairment of the capital stock cannot be made good, or that the business of any such bank is being conducted in an illegal, fraudulent or unsafe manner, he may in his discretion, without having taken the steps provided in this section to make good the impaired capital stock, through the Attorney General, file a bill in the circuit court of the county in which said bank is located, in the name of the People of the State of Illinois against said bank and its stockholders for the dissolution of the corporation and for an injunction, and for the appointment of a receiver for the winding up of the affairs of the bank. And said court, upon presentation of said bill, and upon being made satisfied that the capital stock of said bank has become impaired to such an extent that it cannot be made good, or that such bank is being conducted in an illegal, fraudulent or unsafe manner, shall immediately appoint a competent and disinterested person as such receiver, and shall determine and fix his bonds and shall prescribe his duties. And said cause shall proceed as other cases in equity. And no bill shall be filed nor proceedings commenced in any court for the dissolution or for the winding up of the affairs or for the appointment of a receiver for any such banking corporation on the grounds of insolvency or impairment of the capital stock of such banking corporation or upon the ground that such bank is being conducted in an illegal, fraudulent or unsafe manner, except in the name and by the authority of the Auditor of Public Accounts, represented by the Attorney General. When it shall be ascertained, in the course of the administration of the estate of a bank in the hands of a receiver that the assets of the bank are insufficient to discharge the entire liability of such bank to its creditors, and when the amount of such deficiency is determined, the court may, in its discretion, direct the receiver to proceed to enforce the liability of the stockholders to creditors provided in section 6 of this Act; and when so directed, such receiver shall have the power, and it shall be his duty, to take such action, by suit or otherwise, as the court may direct, to enforce such liability for the benefit of the creditors and to disburse to creditors the amounts collected thereon, in the same manner as disbursements are made to creditors of the assets of the bank.

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