by a name so similar to the name of any other corporation then operating under the laws of this State, or of any law of the United States or of any person, firm, partnership or corporation then conducting a banking business as in the opinion of the Auditor of Public Accounts will create confusion, provided that a permit may be issued hereunder to a corporation by a name the same as or similar to the name of any person, firm or partnership then conducting a banking business, by and with the written consent of such person, firm or partnership of the same or similar name, such name of such proposed corporation not being the same or similar to the name of any banking corporation then operating under the laws of this State or of the United States, and all associations formed under this Act shall have their capital stock divided into shares of one hundred dollars ($100) each.

§ 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 employees 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 direc tors 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, and stock certificates for not less than ten shares shall be filed unendorsed and unassigned with the cashier of the bank during his term as 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 employee 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.

§ 7. Any and all persons and associations organizing under the provisions of this Act shall make to the Auditor a report according to the form which may be prescribed by him, verified by oath or affirmation of the president or cashier of such association, which report shall exhibit in detail and under appropriate heads the resources and liabilities of such bank or association at the close of business of any day he may choose; and he shall call for such reports at least once every three months of each year, and the officers of said banks shall transmit the same to the Auditor within five days after receiving call for the same; and any bank failing to make and transmit such report, or to comply with any provisions of this Act, shall be subject to a penalty of one hundred dollars for each day after five days that such report is delayed beyond that time. And he shall cause such report to be published at the expense of such bank in some newspaper published in the city or town where such bank is located; or if no newspaper is published in such town, then in the nearest newspaper to such town. Every such quarterly report shall be accompanied with a fee of five dollars to defray the expense of examining the same and preparing it for publication.

§ 8. The Auditor, as often as he shall deem necessary or proper, and at least once in each year, shall appoint a suitable person or persons to make an examination of the affairs of every bank established under the provisions of this Act, which person shall not be a stockholder or officer or employee of any bank which he may be directed to examine, and who shall have power to make a thorough examination into all the affairs of the bank, and in so doing to examine any of the officers or agents, or employees thereof on oath, and shall make a full and detailed report of the condition of the bank to the Auditor; and the bank shall not be subject to any other visitorial power than such as may be authorized by this Act, except such as are vested in the several courts of law and chancery. And there shall be paid to the Auditor of Public Accounts for each such examination, a minimum fee of twenty-five dollars ($25.00) and two cents (2c) additional for each one thousand dollars ($1,000) of the total assets of the bank examined.

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 (1) the discount of bills of exchange drawn in good faith. against actually existing values; (2) the discount of commercial or business paper actually owned by the person negotiating the same; (3) the purchase of or loaning money in exchange for, evidences of indebtedness which shall be secured by mortgage or trust deed upon productive real estate, the value of which, exclusive of buildings, as ascertained by the oath of two disinterested appraisers, is double the amount of the principal debt secured, and which mortgage or trust deed is ascertained by a guaranty policy of a title guaranty company approved by the Auditor of Public Accounts, or by a registrar's certificate of title in any county having adopted the provisions of the Land Titles Act, or by the opinion of a reputable attorney at law to be a first lien upon the real estate therein described; and (4) the purchase of, or loaning money in exchange for, evidences of indebtedness secured by a written pledge covering live stock, the president, vice president or cashier of such bank or association. certifying at the time of such purchase or loan that the value of such live stock is double the principal debt secured, shall not be considered as money borrowed within the meaning of this section.

In computing the total liabilities of any person, corporation or firm for the purposes of this section, there shall not be included any liabilities of such person, corporation or firm which shall be secured by collateral approved as sufficient security therefor by the Auditor of Public Accounts, and deposited with him, or which shall be secured by a good and sufficient bond conditioned to indemnify and save harmless such bank from loss or damage on account of failure to pay such loan on maturity, filed with and approved by the Auditor of Public Accounts.

And, provided, further, that if any bank or association existing hereunder shall cause to be deposited with the Auditor of Public Accounts a good and sufficient bond, or shall cause to be deposited with him securities approved by him (such securities not being assets of said bank or association), the Auditor of Public Accounts may issue to such bank or association a permit, granting permission to such bank or association, within the period of one year from the date of said permit, to carry, without liability against the officers and directors of such bank or association, on account of such loans being excessive, loans otherwise excessive under the provisions hereof, to an aggregate amount equal to the amount of such bond, or to the value of such securities as determined by the Auditor of Public Accounts. Such bond shall run to the Auditor of Public Accounts for the use of said bank or association, its creditors and stockholders, and shall undertake to indemnify and save harmless said bank or association, its stockholders and creditors, against loss on account of loans carried under the permit issued by the Auditor of Public Accounts in pursuance of the filing of such bond; and such securities shall be deposited under a like contract running to the Auditor of Public Accounts for the use of said bank or association, its creditors and stockholders, undertaking that such securities shall be held to indemnify and save harmless said bank or association, its stockholders and creditors, against loss on account of loans carried under the permit issued by the

Auditor of Public Accounts in pursuance of the deposit of said securities with the Auditor: Provided, further, that if in the opinion of the Auditor of Public Accounts, such bond or such securities shall become impaired in value, the Auditor of Public Accounts may revoke such permit unless such bank or association shall file with the Auditor of Public Accounts such additional bond or such additional securities as will, in the opinion of the Auditor of Public Accounts, fully indemnify such bank or association, its stockholders and creditors, against loss by reason of loans made under such permit.

And, provided, also, that the total liabilities of any such person, firm or corporation for money borrowed under the provisions of this section shall not exceed twenty-five per cent of the deposits of any such bank or association, and also that such total liabilities shall at no time exceed the amount of the capital stock of such bank or association.

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 violation 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 employees, 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 at any place in this State. If not within any city, town or incorporated village, with a minimum capital stock of ten thousand dollars ($10,000); if within a city, town or incorporated village, the capital stock shall be according to the population of such city, town or village, as determined by reference to the last preceding United States census, as follows:

(a) In all cities, towns and villages of not exceeding fifteen hundred (1,500) inhabitants, with a minimum capital stock of fifteen thousand dollars ($15,000).

(b) In all cities, towns and villages of over fifteen hundred (1,500) inhabitants and not exceeding five thousand (5,000) inhabitants, with a minimum capital stock of twenty-five thousand dollars ($25,000).

(c) In all cities, towns and villages of over five thousand (5,000) inhabitants and not exceeding ten thousand (10,000) inhabitants, with a minimum capital stock of fifty thousand dollars ($50,000).

(d) In all cities, towns and villages of over ten thousand (10,000) inhabitants and not exceeding fifty thousand (50,000) inhabitants, with a minimum capital stock of one hundred thousand dollars ($100,000). (e) In all cities, towns and villages of over ten thousand (10,000) inhabitants and not exceeding fifty thousand (50,000) inhabitants, with a minimum capital stock of fifty thousand dollars ($50,000); but a bank so incorporated in a city, town or village of over ten thousand (10,000) inhabitants and not exceeding fifty thousand (50,000) inhabitants, with a capital stock of less than one hundred thousand dollars ($100,000), shall not accept deposits in excess of five hundred thousand dollars ($500,000), so long as its capital stock is less than one hundred thousand dollars ($100,000). Such bank may at any time increase its capital stock to not less than one hundred thousand dollars ($100,000), and if the Auditor shall find the deposits in excess of the limitation contained herein, he shall order such bank to increase its capital stock to at least one hundred thousand dollars ($100,000), within ninety days from the date of such order.

If any such bank shall fail so to increase its capital stock within said time, the Auditor of Public Accounts shall revoke and cancel the permit and authority of such bank to carry on such banking business, and shall file a duly certified copy of such revocation and cancellation at the office for the recording of deeds in the county where such bank has conducted such business, and upon the recording of said revocation, said bank shall cease to receive deposits and shall proceed to dispose of its assets and wind up its affairs within one year from the date of such revocation, and at the end of said year the authority of said bank to conduct any business under the provisions of this Act shall cease and determine.

(f) In all cities, towns and villages of more than fifty thousand (50,000) inhabitants, with a minimum capital stock of one hundred thousand dollars ($100,000); but a bank so incorporated in a city, town or village of more than fifty thousand (50,000) inhabitants, with a capital stock of less than two hundred thousand dollars ($200,000), shall not accept deposits in excess of one million dollars ($1,000,000), so long as its capital stock is less than two hundred thousand dollars ($200,000).

Such bank may at any time increase its capital stock to not less than two hundred thousand dollars ($200,000), and if the Auditor shall find the deposits in excess of the limitation contained herein, he shall order such bank to increase its capital stock to at least two hundred thousand dollars ($200,000) within ninety days from the date of such order.

If any such bank shall fail so to increase its capital stock within said time, the Auditor of Public Accounts shall revoke and cancel the permit and authority of such bank to carry on such banking business, and shall file a duly certified copy of such revocation and cancellation at the office for the recording of deeds in the county where such bank has conducted such business, and upon the recording of said revocation, said bank shall cease to receive deposits and shall proceed to dispose of its assets and wind up its affairs within one year from the date of such