good faith; and all stock purchased or acquired in such manner shall within six months from the time of purchase, be sold or disposed of at public or private sale.

Limit on Loans.

I. The total liabilities to any bank or trust company of any person, or of any company, corporation or firm, for money borrowed, including in the liabilities of the company or firm the liabilities of the several members thereof, shall at no time exceed twenty per centum of the capital stock plus the surplus fund and undivided profits; 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. The corpo rations mentioned in this section shall not be construed to mean municipal corporations, districts or counties.

II. The directors of any bank may quarterly, semi-annually or annually declare a dividend of so much of the net profits of the bank as they shall judge expedient; but such bank shall, before the declaration of any dividend, carry one-tenth part of the net profits accrued to its surplus fund, until the same shall amount to twenty per centum of its capital stock.

Capital not to be Impaired.

III. No bank, or any of the officers or directors thereof, shall during the time it shall continue its banking operations, withdraw or permit to be withdrawn, either in the form of dividends or otherwise, any portion of its capital stock. If losses have at any time been sustained by any such bank, equal to or exceeding its undivided profits then on hand, no dividend shall be made; and no dividend shall ever be made by any bank while it continues its banking operations to an amount greater than its net profits on hand, deducting therefrom its expenses, losses and bad debts; but nothing in this section shall prevent the reduction of the capital stock of the bank, as provided in section seventy-eight I of this chapter.

Restoration of Capital.

IV. Whenever the capital stock of a bank has become impaired, by losses or otherwise, it shall be the duty of the board of directors

to restore the same within three months by an assessment pro rata on the stockholders, on the amount of capital stock held by each.

Enforcement of Assessment.

V. If any stockholder or stockholders of a bank shall neglect or refuse, after three months' notice to pay the assessment as provided in the next preceding sub-section, or in section seventyeight II of this chapter, it shall be the duty of the board of directors to cause a sufficient amount of the capital stock of such shareholder or shareholders to be sold at public auction, after thirty days' notice shall have been given by posting such notice of sale in the office of the bank, and by publishing such notice in a newspaper of the city or town in which the bank is located, or in a newspaper published nearest thereto, to make good the deficiency, and the balance if any, shall be returned to the delinquent stockholder or stockholders.

List of Stockholders to be Exhibited.

VI. The president and the cashier of every bank association shall cause to be kept at all times a full and correct list of the names and residences of all the stockholders in the association and the number of shares held by each, in the office where its business is transacted; such list shall be subject to the inspection of all the stockholders and creditors of the association, and the officers authorized to assess taxes under state authority during business hours of each day in which business may be legally transacted; a copy of such list on the first Monday of July of each year, verified by the oath of such president and cashier, shall be transmitted to the commissioner of banking.

The words "bank" or "banking company" in this act shall be taken and construed to include any bank, banker, banking company or trust company.

All banks operating under the provisions of this chapter shall at all times maintain on hand as a reserve, in lawful money of the United States, an amount equal to at least fifteen per centum of the aggregate of all of its deposits which are subject to withdrawal on demand; and whenever said reserve of any such bank shall fall below said per centum of such deposits, it shall not increase its liabilities by making any new loans until the required proportions between the aggregate amount of such deposits

and its reserve fund shall be restored; provided, that in lieu of lawful money on hand three-fifths of said fifteen per centum may consist of balances payable on demand due from any national or state bank doing business in this state, or any solvent banking institu tions outside of this state that may be approved by the supervisor in said state.

Bank Supervision.

Sec. 81. The commissioner of banking shall have jurisdiction and control, as hereinafter provided, over all banks chartered by and operated in this state, and all other institutions enumerated in sub-division fifteen of this section.

Appointment of Commissioner.

I. On or before the first day of April, one thousand nine hundred and seven, or as soon thereafter as possible, and every four years thereafter, the governor of this state shall designate and appoint some competent person commissioner of banking who is a citizen of this state, and who shall be experienced and skilled in the science of bookkeeping and banking, and who shall have had at least two years' experience as a cashier or an assistant cashier of a bank, or shall have served at least two years as assistant commissioner of banking, bank examiner, or as an accounting officer of the state, and who is neither directly nor indirectly interested in any bank or corporation subject to his supervision, who shall examine into and report as hereinafter provided, upon the affairs of all banks and other institutions, specified in sub-section fourteen of section eighty-one of this chapter, doing business in this state, except those that are organized and carrying on business under the banking acts of the national government; such commissioner of banking may designate and appoint an assistant commissioner of banking, who shall be a competent accountant and who shall assist the commissioner of banking, and under his directions and authority may perform any or all of the duties, and exercise any or all of the powers by this act required of, or vested in the commissioner of banking, and who may be removed by the commissioner of banking. The assistant commissioner of banking shall take the same oath as is hereinafter required by the commissioner of banking.

Duties of Commissioner.

II. The commissioner of banking shall hold his office for a term

of four years unless sooner removed by the governor, or until his successor is appointed and qualified; and before entering upon the discharge of his duty he shall take and subscribe before some person competent to administer the same, an oath to support the constitution of the United States and the constitution of the state of West Virginia, and to faithfully and honestly examine into the affairs of all the banks and other institutions subject to supervision under this chapter, incorporated by and doing business in this state, and to perform all of the duties prescribed for such services under this act; and said oath shall be filed and preserved in the office of the secretary of state.

Office and Records of Commissioner.

III. Said commissioner of banking shall maintain an office in the state capitol; in such office he shall prepare and keep a complete record of the financial condition of all the banks and other institutions subject to his supervision, as may appear in his reports.

Examinations.

IV. At least once in each twelve months the said commissioner, or assistant commissioner, shall personally make a thorough and complete examination of the condition and affairs of each of said banks and other institutions subject to his supervision; he shall ascertain whether the officers and directors thereof have properly taken the oath prescribed by law as such, and whether or not the said officers have executed proper and legal bonds in sufficient amounts and with ample security; he shall examine and ascertain whether the books of said institution are properly kept, and he shall ascertain carefully and fully the assets and liabilities of each and all of said banks and other institutions, and whether such assets are solvent and good or otherwise, and whether all the laws of this state pertaining to banks and banking are being carefully observed. Duty of Officials of Banks and Other Institutions.

V. For the purpose of making said examinations as above required, the officers of said banks and other institutions, shall upon his demand, furnish and give full access to said commissioner, or such examination, all the books, papers, notes, bills and other evidences of debts due said bank or other institutions, and shall disclose fully and truly all the institution's indebtedness and liabili

ty, and shall furnish him with all necessary clerical aid and assistance; and said commissioner shall have a right to administer to and examine under oath any and all of said bank officers touching any matter or thing pertaining to said examination, and the affairs and conditions of said institution. Any officer failing or refusing to furnish said commissioner with any such papers or information, or who shall fail to do or perform any of the other duties or requirements of this act, shall be guilty of a misdemeanor, and upon conviction thereof shall be fined not less than one hundred dollars nor more than five hundred dollars, and may at the discretion of the court, be imprisoned in the county jail not less than three months nor more than one year; and it shall be the duty of said commissioner to report at once to the prosecuting attorney, of the county in which the bank is situated, any such violation on the part of any such bank officer.

Banks and Institutions Improperly Conducted.

VI. If upon making his examination of any bank or other institution, the commissioner should discover that the banking laws of the state are not being fully observed, or that any irregularities are being practiced, he shall at once call attention of the officers and directors of the bank or other institution to the fact and demand that the same be promptly corrected; it shall also be his duty to demand a sworn statement from the officers of said bank or other institutions, covering all the points of controversy, to be mailed to him at his office once every thirty days (not for publication but for his own information and guidance), until he is satisfied that the irregularities have been corrected; said examination to be paid for by the bank or other institutions, the same as regular examinations. The said commissioner shall also have authority to call for special reports and make special examinations. of any bank or other institution which he may have good reason for believing is not properly conducted.

Insolvent Banks or Other Institutions.

VII. If any such institutions shall neglect or refuse for a period of ninety days to make such special reports to the commissioner as he may demand or if any time the commissioner shall find a bank or other institution subject to his supervision in an insolvent condition or if such institution shall neglect or refuse to correct