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Proviso, transfer of surplus.

Consent.

How
paid out.

Disposition of fees.

Total appropriations...

Each of said amounts shall be used solely for the specific purposes herein stated: Provided, That if the amounts appropriated in this act for any given schedule under a stated classification be insufficient to maintain said schedule, any surplus remaining in any other schedule, or schedules, under the same classification, may, by obtaining the consent of the Auditor General in writing, be transferred to the schedule or schedules, where such deficiency seems unavoidable.

SEC. 9. The amounts hereby appropriated shall be paid out of the State treasury, and the disbursing officer of the Michigan State Police shall render his accounts therefor, at such times and in such manner as is or may be provided by

law.

SEC. 10. All fees or other moneys received by said institution shall be forwarded to the State Treasurer each month

and shall be by said treasurer deposited in the State treasury to be disbursed in such manner and for such purposes as may be provided by law.

SEC. 11. The Auditor General shall incorporate in the Tax clause. State tax for the years nineteen hundred nineteen and nineteen hundred twenty, sufficient amounts to reimburse the general fund for the appropriations hereby made.

SEC. 12. This act is hereby declared to be immediately necessary for the protection of the public peace, health and safety.

This act is ordered to take immediate effect.
Approved March 27, 1919.

[No. 27.]

AN ACT to amend section four of act number two hundred five of the Public Acts of eighteen hundred eighty-seven, entitled "An act to revise the laws authorizing the business of banking and to establish a banking department for the supervision of such business," as amended, being compilers' section seven thousand nine hundred seventy of the Compiled Laws of nineteen hundred fifteen, as amended by act number two hundred ninety-nine, Public Acts of nineteen hundred seventeen, by adding thereto a new paragraph to be known as paragraph ninth.

The People of the State of Michigan enact:

SECTION 1. Section four of act number two hundred five Section of the Public Acts of eighteen hundred eighty-seven, entitled amended. "An act to revise the laws authorizing the business of banking and to establish a banking department for the supervision of such business," as amended, being compilers' section seven thousand nine hundred seventy of the Compiled Laws of nineteen hundred fifteen, as amended by act number two hundred ninety-nine, Public Acts of nineteen hundred seventeen, is hereby amended by adding a new paragraph Paragraph thereto to be known as paragraph ninth, which section four added. with such paragraph ninth as added shall read as follows:

powers.

SEC. 4. Upon making and filing the articles of incorpo- Corporate ration required by this act the bank shall become a body corporate, and as such shall have power:

Seal.

First, To adopt and use a corporate seal;
Second, To have succession for the period of years named Life.

in the articles of incorporation;

Third, To make contracts;

Contracts.

Litigation.

Directors, etc.

Proviso,

surety bonds. By-laws.

Business powers.

Proviso, reserve of member bank.

Proviso, minimum discount

charge, etc.

Authority to

commence.

Drafts.

Fourth, To sue and be sued in any court of law or equity as fully as natural persons;

Fifth, To elect or appoint directors, who shall choose from their members a president and one or more vice presidents, and shall have power to appoint and employ a cashier or treasurer, and other officers, including a vice president or vice presidents who are stockholders but not members of board of directors; define their duties, dismiss such officers so elected or appointed, or any of them at pleasure, and elect or appoint others to fill their places, and the board of directors shall require every officer and every clerk concerned in the handling of moneys, accounts and securities of the bank to be bonded either by a surety company authorized to do business in the State of Michigan or by a personal bond in such an amount as shall be determined by the board of directors: Provided, That the bank shall pay for any surety bonds required of its employes;

Sixth, To prescribe by its board of directors by-laws not inconsistent with law, regulating the manner in which its stock shall be transferred, its directors and officers elected or appointed, its stockholders convened for special meetings, its property transferred, its general business conducted, and the privileges granted to it by law exercised and enjoyed;

Seventh, To exercise by its board of directors or duly authorized officers or agents, subject to law, all such power as shall be necessary to carry on the business of banking by discounting and negotiating promissory notes, drafts, bills of exchange and other evidences of debts, by receiving deposits, by buying and selling exchange, coin and bullion, and by loaning money on personal and real security, as provided hereinafter, to purchase capital stock in a federal reserve bank, or do any other act required to be done by a bank to become a member bank under the federal reserve act passed by the sixty-third congress of the United States, or any amendment thereto Provided, however, That the amount of reserve required to be kept on hand by any such bank becoming a member bank under the said federal reserve act shall be as fixed by said federal reserve act or any amendment thereto, and not as fixed by the provisions of this act; but no such bank shall take or receive more than the rate of interest allowed by law in advance on its loans and discounts: Provided, That this restriction shall not authorize any transaction for a less sum that [than] fifty cents as a discount or interest charge; and no bank shall transact any business except such as is incidental and necessarily preliminary to its organization until it has been authorized by the Commissioner of the Banking Department to commence the business of banking;

Eighth, To accept for payment at a future date, not to exceed six months, drafts drawn by its patrons, but no bank shall accept such drafts in the aggregate to an amount exceeding fifty per cent of its capital and undivided surplus, such

acceptances to be considered liabilities within the meaning and limitations provided in section fifty-two of this act;

powers, how

Ninth, Any bank organized under this act possessing a cap- Additional ital and surplus of one million dollars or more may file appli- obtained. cation with the Commissioner of the Banking Department for permission to exercise, upon conditions and under such regulations as may be prescribed by the said Commissioner of Banking, either or both of the following powers:

branches,

(a) To establish branches in foreign countries, or depen- Foreign dencies or insular possessions of the United States for the establishment furtherance of the foreign commerce of the United States, of. and to act, if required to do so, aş fiscal agents of the United

States;

invest.

(b) To invest an amount not exceeding in the aggregate Amount may ten per centum of its paid in capital stock and surplus in the stock of one or more banks or corporations chartered or incorporated under the laws of the United States or of any state thereof, and principally engaged in international or foreign banking, or banking in a dependency or insular possession of the United States either directly or through the agency, ownership or control of local institutions in foreign countries, or in such dependencies or insular possessions.

what to

specify.

may approve or reject.

as to

Such application shall specify the name, capital and sur- Application, plus of the bank filing it, the powers applied for, and the place or places where the banking operations are to be carried on. The Commissioner of the Banking Department shall Commissioner have power to approve or reject such application in whole or in part if for any reason the granting of such application is deemed inexpedient, and shall also have power from time to time to increase or decrease the number of places where such banking operations may be carried on. Every bank organized Information hereunder operating foreign branches shall be required to condition. furnish information concerning the condition of such branches to the Commissioner of the Banking Department upon demand and every such bank investing in the capital stock of banks or corporations as provided herein shall be required to furnish information concerning the condition of such banks or corporations to the Commissioner of the Banking Department upon demand, and said commissioner of Special exbanking may order special examinations of the said branches, banks or corporations at such time or times as he may deem best. Before any bank organized hereunder shall be permitted to purchase stock in any such corporation the said corporation shall enter into an agreement or undertaking Agreement with the Commissioner of the Banking Department to restrict commissioner. its operations or conduct its business in such manner or under such limitations or restrictions as the said commissioner of banking may prescribe for the place or places wherein such business is to be conducted. If at any time the Commis- Investigasioner of the Banking Department shall ascertain that the regulations prescribed by him are not being complied with, said commissioner of banking is hereby authorized and

aminations.

with

tions.

Disposal of holdings.

empowered to institute an investigation of the matter and to send for persons and papers, subpoena witnesses and administer oaths in order to satisfy himself as to the actual nature of the transactions referred to. Should such investigation result in establishing the failure of the corporation in question, or of the bank or banks which may be stockholders therein, to comply with the regulations laid down by the said commissioner of banking, such bank or banks may be required to dispose of stock holdings in said corporation upon reason. able notice. Each and every bank organized hereunder shall branches to be conduct the accounts of each foreign branch independently of the accounts of other foreign branches established by it and of its home office, and shall at the end of each year transfer to its general ledger the profit or loss accrued at each branch as a separate item.

Accounts of foreign independent.

Approved March 28, 1919.

Section amended.

[No. 28.]

AN ACT to amend section seventy-nine of act number two hundred six of the Public Acts of eighteen hundred ninetythree, entitled "An act to provide for the assessment of property and the levy and collection of taxes thereon and for the collection of taxes heretofore and hereafter levied; making such taxes a lien on the lands taxed, establishing and continuing such lien, providing for the sale and conveyance of lands delinquent for taxes and for the inspection and disposition of lands bid off to the State and not redeemed or purchased; and to repeal act number two hundred of the Public Acts of eighteen hundred ninety-one and all other acts and parts of acts in any wise contravening any of the provisions of this act," the same being section four thousand seventy-seven of the Compiled Laws of nineteen hundred fifteen.

The People of the State of Michigan enact:

SECTION 1. Section seventy-nine of act number two hundred six of the Public Acts of eighteen hundred ninety-three, entitled "An act to provide for the assessment of property and the levy and collection of taxes thereon and for the collection of taxes heretofore and hereafter levied; making such taxes a lien on the lands taxed, establishing and continuing such lien, providing for the sale and conveyance of lands delinquent for taxes and for the inspection and disposition of lands bid off to the State and not redeemed or purchased;

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