19 provided for, nor shall any amendment of the charter, constitu20. tion or by-laws of any such association or corporation become 21 operative until a copy of the same shall have been filed, and a 22 certificate of authority obtained as above provided in regard to 23 original charter, constitution and by-laws. Any bank, associa24 tion or corporation violating the provisions of this section shall 25 be deemed guilty of a misdemeanor, and on conviction thereof 26 shall be fined not less than five hundred dollars nor more than 27 one thousand dollars, and in addition thereto the officer or offi28-29 cers of any such bank, association or corporation violating the 30 provisions of this section shall be deemed guilty of a misde31 meanor and on conviction thereof shall be fined not less than five 32 hundred dollars nor more than one thousand dollars, and, in the 33 discretion of the court, imprisoned in the county jail not more 34 than six months. Every building and loan association, mutual 35 investment association, mortgage company, and mortgage and 36 discount company, and every association or corporation, except 37 licensed stock brokerage companies, of like kind or character, or 38 organized for the purpose or engaging in the business of buying, 39 selling or dealing in mortgages, bonds, notes, or other securities 40 or commercial paper, organized under the laws of this state, and 41 operating within the state, shall at least twice a year, at such 42 times as may be designated by the commissioner of banking, file 43 in the office of said commissioner of banking within ten days 44 after the receipt of his request for same, a statement verified by 45 its president or secretary and approved by three of its directors, 46 in such form as may be prescribed by said commissioner, setting 47 out its actual financial condition and the amount of its assets and 48 liabilities, and furnish such other information as to its affairs as 49 the said commissioner may require, which reports, in the same 50 form in which they are transmitted to the commissioner of bank51 ing, shall be printed and circulated among all the stockholders 52 of the association or corporation. Every person who shall wil53 fully or knowingly subscribe or make, or cause to be made, any 54 false statement or any false entry in any books of any association 55 or corporation above mentioned, or exhibit false papers with the 56 intent to deceive any person authorized to examine into the 57 affairs of such association or corporation, or shall make, state or 58 publish any false statement of the financial condition of such 59 association or corporation, shall be deemed guilty of a felony 60 and upon conviction thereof shall be fined not exceeding ten

61 thousand dollars, and in the discretion of the court, be im62 prisoned in the state penitentiary not less than one nor more 63 than five years.

Sec. 78-a-(7). At least twice in every year the commis2 sioner of banking, either in person or by competent assistant, 3 shall make a thorough examination of the books and affairs of 4 every association or corporation mentioned in the next preceding 5 section of this act. He shall carefully examine all bonds, notes 6 and mortgages, and all other securities and assets of every such 7 association or corporation, and shall ascertain the full amount of 8 its liabilities. He shall see that the books are kept properly 9 posted and balanced, and that complete trial balances are struck 10 at regular intervals. Whenever it shall appear to the commis11 sioner of banking that any institution which by law is required to 12 obtain from him a certificate, or permit, to begin business, does 13 not keep its books and accounts in such manner as to enable him 14 readily to ascertain its true condition, he may issue an order 15 requiring such institution, or the officers thereof, or any of them, 16 to open and keep such books or accounts as he may, in his dis17 cretion, determine and prescribe for the purpose of keeping ac18 curate and convenient records of the transactions and accounts 19 of such institution; and the expense thereof shall be paid by said 20 institution. Every such bank, association and corporation men21 tioned in section 78-a-(5) of this chapter shall preserve all its 22 records of final entry, including cards used under the card sys23 tem and deposit tickets, for a period of at least six years from 24 the date of making the same or from the date of the last entry 25 thereon. Each official communication directed by the commis26 sioner of banking or one of his assistants to a bank or to any 27 officer thereof, relating to an examination or investigation con28 ducted by the banking department or containing suggestions or 29 recommendations as to the conduct of the business of the bank, 30 shall be submitted, by the officer receiving it, to the board of 31 directors at the next meeting of such board, and duly noted in 32 the minutes of the meetings of such board. If at any time he 33 shall find one of these institutions in an insolvent condition, 34 he shall deal with it according to the manner prescribed in sec35 tion eighty-one-a- (7) of this act.

Sec. 78-a-(8). It shall be unlawful for any foreign build2 ing and loan association, mutual investment association, trust 3 company, mortgage company, mortgage and discounty company,

4 or association or corporation of like kind and character, or 4a association or corporation, except licensed brokerage com5 panies, organized for the purpose or engaging in the business 6 of buying, selling, discounting or dealing in mortgages, bonds, 7 notes, or other securities or commercial paper, to transact any 8 business or offer its capital stock for sale in this state, directly 9 or indirectly, without first procuring a certificate of authority 10 from the commissioner of banking. Before obtaining such cer11 tificate such foreign association or corporation shall furnish the 12 commissioner of banking an itemized statement of its financial 13 condition and all such other information touching its affairs as 14 the said commissioner may require, which statement and infor15 mation shall be verified by the oath of the president or secretary 16 of the association or corporation. Such foreign association or 17 corporation shall also file with the commissioner of banking a 18 certified copy of the laws of the state, territory or government 19 under which it is incorporated, and of its constitution and by20 laws and all amendments thereto; and shall appoint an attorney 21 in each county in which it transacts or solicits business, who 22 shall be a resident of such county. It shall file with the com23 missioner of banking a written instrument, duly signed and 24 sealed, authorizing such attorney of such association or corpora25 tion to acknowledge service of process in behalf of such associa26 tion or corporation, consenting that the service of process, mesne 27 or final, upon such attorney shall be taken and held as if served 28 upon the association or corporation according to the laws of this 29 or any other state, and waiving all claim or right of error by 30 reason of such aknowledgment of service. If, after examination 31 of such statement, and certified copy of instruments, and after 32 such association or corporation shall have complied with the 33 provisions of this act with reference to the appointment of an 34 attorney or attorneys, the commissioner of banking shall be satis35 fied that said association or corporation is solvent and that the 36 capital and investments are secure, and that the laws, charters, 37 articles of incorporation, constitution and by-laws governing it 38 afford as ample protection to the interests of its members or 39 stockholders as is afforded by the laws of this state to members 40 or stockholders of like associations or corporations chartered by 41 and doing business in this state, he may grant such association or 42 corporation a certificate of authority permitting it to transact 43 business in this state until the thirty-first day of the next suc

44 ceeding December; but the same statements and the same cer45 tificates shall be renewed every year as long as such association 46 or corporation shall continue to do business in this state; and 47 and for every certificate issued the commissioner of banking 48 shall collect a sum of twenty-five dollars and pay the same into 49 the treasury of the state. Any person, agent or corporation 50 doing business or attempting to do business in this state for any 51 foreign building association, mutual investment company or 52 trust company, mortgage company, mortgage and discount com53 pany, or association or corporation of like kind and character, 54 or association or corporation, except licensed stock brokerage 55 companies, organized for the purpose of engaging in the busi56 nes of buying, selling, discounting or dealing in mortgages, 57 bonds, notes, or other securities or commercial paper, which 58 shall not at that time be a holder of a valid certificate of au59 thority, as provided for in this act, shall be deemed guilty of a 60 misdemeanor, and on conviction thereof shall be fifined not less 61 than five hundred dollars nor more than one thousand dollars 62 for each and every offense.

63 All acts and parts of acts in conflict herewith are hereby re63 pealed.

CHAPTER 32

(House Bill No. 556—Mr. Read)

AN ACT giving a bank the option to refuse payment of a check presented one year after date.

[Passed April 19, 1923. In effect ninety days from passage. Became a law without the approval of the Governor]

Be it enacted by the Legislature of West Virginia:

Section 1. Where a check or other instrument payable on 2 demand at any bank or trust company doing business in this 3 state is presented for payment more than one year from its 4 date, such bank or trust company may, unless expressly in5 structed by the drawer or maker to pay the same, refuse pay

6 ment thereof and no liability shall thereby be incurred to the 7 drawer or maker for dishonoring the instrument by non8 payment.

9 All acts and parts of acts inconsistent herewith are hereby 10 repealed.

CHAPTER 33

(House Bill No. 10-Mr. Kuhn)

AN ACT to amend chapter fififty-seven of the code by adding thereto section twelve, relating to the sale of real estate by trustees for labor unions.

[Passed January 24, 1923.

SEC.

In effect from passage. Approved by the Governor
April 24, 1923]

12. Sale of lands by trustees for

labor unions, etc.

Be it enacted by the Legislature of West Virginia:

That chapter fifty-seven of the code be amended by adding thereto section twelve, as follows:

Section 12. The provisions of section nine of this chapter 2 shall apply to an govern the sale of real estate held by trustees 3 for any labor union, or similar association or brotherhood of 4 craftsmen or employees, or any local or branch thereof; but 5 nothing herein contained shall make such labor union or other 6 association, or the trustees therefor, a corporation.

CHAPTER 34

(House Bill No. 14-Mr. McLaughlin)

AN ACT imposing a state tax on gasoline, and on all other liquids containing any derivative of petroleum or natural gas, produced, prepared or compounded or usable for the purpose of generating power by means of internal combustion and sold at wholesale in this state as the words "at wholesale" are defined in this act; and providing for the collection of such tax and for the distribution and use of the revenues derived therefrom; making an appropriation; and fixing penalties.