cably their present charters, and that by afterwards ceasing, through legislation of congress, or otherwise, to be national banking associations, they may then wholly and forever cease to exist; for the purpose of facilitating and rendering safe the change of such banks into national associations;

1864.

The faith of the

state pledged,

Any bank of this state which has become, or may hereafter become, a national banking association, shall be deemed to have done so upon the faith of the promise and assurance of this state, hereby &c. pledged, that the rights and guaranties hereby offered to and conferred upon said banks, in the several provisions of this act, shall not be revoked or impaired.

render their

coming national

SECT. 331. The charter of any such bank shall not be deemed Banks not to be surrendered, revoked, altered or amended, by the action of such deemed to surbank in becoming a national banking association, nor by the opera- charter, by betion of this act; but by such action of such bank, and from the banking associa time of such action, said charter shall be deemed suspended, (ex- tions. cept so far as the same shall remain in force by virtue of the three hundred and thirty-fifth section of this act,) and shall continue so suspended until such bank shall cease to be a national banking association.

SECT. 332. Whenever any such bank, after having been a na- May resume its chartered rights tional banking association, shall cease to exist as such national and powers, banking association, (either by expiration of the time now limited when. by act of congress for the existence of such associations, or in consequence of future legislation by congress, or by the operation of any other cause, involving no censure of such banking association,) the now existing charter of such bank shall thereupon cease to be suspended, and shall again be in full force in every respect whatsoever; and such bank shall then resume all the rights and powers which it now possesses, in the same manner, and to the same extent, as if said charter, rights, and powers had never been suspended.

Directors, &c., of national banking

to

resumption of

SECT. 333. The directors, and other officers of any such corporation, who shall be in office at the time when such corporation shall associations, cease to be a national banking association, shall continue to hold retain office after their respective offices after said corporation shall have resumed its charter. powers as a bank of this state, until other directors and officers shall be duly appointed in their stead, in accordance with the now existing charter of such bank.

be reduced when,

amount.

SECT. 334. If any increase of its capital stock shall have been Capital stock to made by any such corporation, during its existence as a national and to what banking association, then such corporation, upon ceasing to be a national banking association, and upon resuming its powers as a bank of this state, shall reduce its capital stock to the present amount thereof; but no bank shall be required by this act to reduce its capital stock below one hundred thousand dollars. If the shares, representing said increase of capital stock, shall then be distinguishable from the shares, representing the present capital of said bank, an equitable appraisal of the value of the shares, representing said increase of capital, shall be made in such manner as the directors shall order, and the value of said shares, as fixed by said appraisal, shall be paid by said bank to the owners of said shares, respectively, and Shares of stock, said shares shall be extinguished. If said shares, representing said how to be extin increase of capital, shall not then be distinguishable from the shares guished, or prorepresenting said present capital, an equitable appraisal of the value duced. of the whole capital, per share, shall be made, in such manner as the directors shall order; and the number of shares of said whole capi

portionally re

Every such bank

a body corporate,

what.

tal, held by each stockholder, shall be, by order of the directors, proportionally reduced to such an extent as to extinguish the whole of said increase of capital, and each stockholder shall be paid, by said bank, the so appraised value of the shares, taken from him in effecting such reduction of capital.

SECT. 335. Every such bank of this state shall, notwithstanding to continue to be the general suspension of its powers provided for in the three hunhow long and for dred and thirty first section of this act, continue to be a body corpo. rate, for the term of three years from the date of such suspension, and until the termination of all suits then pending in which said bank shall be interested, for the purpose of prosecuting and defending suits by or against it, and of closing its concerns, but not for the purpose of continuing, under the laws of this state, the business for which it was established.

Duty on resuming chartered powers.

SECT. 336. Every bank of this state, which shall resume its powers as a bank of this state, after having been, and having ceased to be, a national banking association, shall thereupon make out and deliver to the bank commissioners, and duly publish, in a newspaper of the county in which such bank is located, such a particular and detailed statement, under oath, of its condition, as it is now required to make out and publish quarterly; and such bank shall thereafter continue to make out and publish a similar statement, Quarterly state- quarterly, in the same manner in which it is now by law required to do, and shall continue, as now, subject to examination by the bank commissioners, and to the control of the superior court, and shall be, and remain, in all other respects, subject to the legislation of this state, as fully as it is now subject thereto.

ments.

Stock owned by

itable associa

tions, &c., not

ferable, when.;

Owner electing

to become a stockholder. withdraw the same.

SECT. 337. In all cases where this state, or any charitable instituthe state, or char- tion, association, or corporation, now holds stock not transferable in any bank, now or heretofore doing business under the laws of this now transferable, state, if such bank has determined, or shall determine, to become a to become trans- national banking association, such bank shall give written notice of such determination to the treasurer of the state, or to such institu tion, association, or corporation, as the case may be, which notice shall be given within ten days after such bank shall have made its said determination; and thereupon, the state, by its treasurer, or the other owners of such stock, as the case may be, may, within thirty days after the receipt of said written notice, elect, by giving written notice to such bank, to continue to hold such stock as transferable stock, not differing in any of its rights, liabilities or properties, from the other stock of such bank, and to hold the same after the promay posed change shall have been effected, as stock of the proposed national banking association; and thereupon such bank shall count such stock as part of its regular capital stock, and such stock shall be deemed, for all purposes, thenceforth, regular capital stock of said bank. If said owner, or owners, of such non-transferable stock shall not, within said thirty days, by giving said written notice to such bank, so elect to hold said stock as transferable stock, and to become a stockholder or stockholders in said proposed national banking association, as aforesaid, then, at the expiration of said thirty days, said owner or owners shall be entitled forthwith to receive, and shall forthwith receive, from said bank, the par value of said stock, with interest thereon from and after the date of the last dividend which shall have been theretofore declared by said bank; and The amount how said amount shall be a debt, due and payable to said owner or owners from said national banking association, until paid, to be recovered in an action of debt, or any other proper action, instituted

recoverable.

troller.

in the superior court, or in any other court of competent jurisdiction. Any bank of this state, which shall refuse to permit any of the provisions of this section to be carried into full effect, shall not be entitled to the benefit of any of the other provisions of this act. SECT. 338. Any bank heretofore existing, and doing business Notice to compunder the laws of this state, and which may organize as a banking association under the laws of the United States, and elects to accept the provisions of the eight preceding sections of this act, shall, within sixty days after such organization, notify the comptroller of public accounts of such election, in writing; and any such bank, failing to give such notice, or to comply with any of the provisions of said sections applicable to such bank, shall, upon becoming a national banking association, be deemed to have surrendered its charter, and the same shall be thenceforth considered as revoked, except so far as the same shall remain in force by virtue of the three hundred and thirtyfifth section of this act.

SECT. 339. The stock of all national banking associations, which Stock subject to taxation by the have been or may be formed in this state, shall be equally and alike state. subject to taxation under the authority of this state; and the officers of said associations shall make returns to the comptroller of public accounts, and to the assessors of towns, as provided by law in the case of incorporated banks.

banks which have already become banking associations.

SECT. 340. The several provisions of the ten preceding sections To apply to of this act shall apply to all the banks of this state, which have already become national banking associations, so far as said provisions can, in the nature of the case, be made applicable to such banks.

National banks

a bank of this

SECT. 341. No corporation, which has been a bank of this state, 1865. and has become a national banking association, and no corporation not to circulate now being a bank of this state, which shall hereafter become a na- its bills issued as tional banking association, shall, at any time, while it exists as a state. national banking association, issue and keep in circulation, bills, issued in its name as a bank of this state, which, together with bills, issued and kept in circulation in its name as a national banking association, shall exceed the aggregate sum of ninety per cent. of its unimpaired capital, and after any such corporation shall have been a national banking association for the period of six months, it shall not issue, nor intentionally keep in circulation, any bills issued in its name as a bank of this state; and so long as it shall keep in circulalation any bills, issued in its name as a bank of this state, it shall be subject to examination by the bank commissioners, and shall be bona fida owners of, and keep on hand, gold and silver coin amounting to ten per cent. of the amount of said last named bills, so for the time being kept by it in circulation; and any director, or other officer of any such corporation, who shall knowingly permit or consent to a violation of this section, by the corporation of which he is, or shall be, an officer at the time, shall, for every such offense, be punished by a fine of five hundred dollars.

SAVINGS BANKS.

1859.

Loans may be

SECT. 342. Each savings bank, or savings society, may loan on such, 1858. personal security, as the directors, trustees or managers may approve, made on personal to an amount not exceeding one-half of the whole amount on de- security. posit in such bank or society; but they shall not loan on the pledge of, nor shall they purchase, any stocks, bonds, or other securities, not

Investments, how made.

1958.

1862.

Same subject.

1850.

May receive de

posits.

1947. 1854. Contingent fund.

1847. Income, how di

specifically named in the next succeeding section, nor shall any such bank or society invest in, or loan on the pledge of, any bank stock therein named, a sum greater than ten per cent. of its deposits.

SECT. 343. Each of said institutions may invest such portions of the deposits, allowed by the preceding section to be loaned on personal security, as the directors, trustees, or managers, shall approve, in the purchase of the public stock of any of the New England states, or the states of New York, Ohio, Pennsylvania, and Kentucky, or in stock of the United States, or in the stock of any incorporated city, town, or borough in this state, or of the cities of New York, Boston, Providence or Albany, or in mortgage security in this or other states.

SECT. 344. Each of said institutions may also invest such portion of its deposits, as the directors, trustees, or managers shall approve, in the purchase of the public stock of any of the New England states, or of the United States, or in the public stock or bonds of any incorporated city, town, or borough in this state, but the amount so invested, with the amount loaned and invested under the provisions of the two next preceding sections, shall not exceed three-fourths of the whole amount on deposit in such institution; and all other loans, or investments of said institutions, shall be secured by mortgage of real estate in this state, unincumbered, equal in value to double the amount of the sum loaned or invested thereon.

SECT. 345. The several savings banks, and savings societies in this state, may receive on deposit, from any one individual, in his own name, or in the name of another, in any one year, a sum not exceeding four hundred dollars.

SECT. 346. Every savings bank and savings society may reserve, out of any surplus earnings, such sums as from time to time may be conveniently reserved, not exceeding at any one time the amount of two and one-half per cent. on the amount deposited in said savings bank or society, which sums so reserved shall be a contingent fund; and any banking house, or other fixtures, for the use of any sav ings bank, or savings society, shall form part of said contingent fund.

SECT. 347. All the income, profits, and earnings on the deposits, vided, and when, and on the contingent fund, in any savings bank or savings society, after defraying the expenses of said bank or savings society, as provided in its charter, and after deducting the losses of said institution, shall be semi-annually divided among the depositors in said institution, their executors, or administrators, in just proportions; but no dividend need be made on any other fraction than one-half of one per cent.* SECT. 348. The treasurers of the several savings banks, and savings societies in this state, shall give bonds, with surety, in a sum not less than ten thousand dollars, which bonds shall be made payable to said banks, and kept by the presidents thereof.

1860. Treasurers of savings banks and societies

must give bonds.

1862.

&c., required to

bank commis

sioners.

SECT. 349. The treasurers of the several savings banks, societies Savings banks for savings, savings banks and building associations, on or before the make returns to first day of April in each year, and as much oftener as may be required by the bank commissioners, shall make up, and transmit to them, a sworn statement of the condition of their respective institutions, making a balance sheet, showing, among other things, the amount invested in real estate, the locality thereof, and the cash value of said real estate; the amount invested in stocks or bonds

* Savings banks are liable to their depositors, although they have paid the money to the holder of a stolen book. Eaves v. People's Savings Bank, 27 C. R. 229.

specifying the number of shares, the par value thereof, the actual cost to the institution, the actual market value of said stocks at the time of said return; the number and amount of bonds, and of what description, the par value of the same, the actual cost, and the present market value; and all other investments in personal property, specifying the value thereof, and also showing the actual cash value thereof, and the original cost.

SECT. 350. If any treasurer of any savings bank, savings society, or Penalty for refusavings bank and building association, shall neglect or refuse to make sal or neglect. said return agreeably to the preceding section of this act, he shall forfeit to the treasurer of the state, for the use of the state, the sum of five hundred dollars, to be collected under this act.

ings banks and

officers to fill va

SECT. 351. Whenever a vacancy exists in any of the offices of an Trustees of savincorporated savings bank, or society for savings, by reason of death, societies for sav resignation, or otherwise, the trustees of said corporation may choose ings may appoint the proper officer to fill such vacancy, and the officer so chosen shall cancies, &c. continue in office until the next annual meeting of said corporation, or until another is chosen in his stead. And whenever any officer of said corporation shall be disabled, by sickness or otherwise, from performing the duties of his office, the trustees may appoint an assistant to such officer, who shall continue in office during the pleasure of said trustees, or until the next annual meeting of the corporation; and the officer or assistant officer, chosen or appointed as aforesaid, shall have all the powers, and be subject to all the duties, appertaining to such officer when chosen at the annual meeting of the corporation.

BOAT CLUBS.

1863

Providing for the

members of col

tutions.

SECT. 352. Any number of persons, members of any collegiate, academy, or literary institution, may associate for the purpose of incorporation of forming boat-clubs, and of becoming proficient in the management boat clubs, by of boats in the rivers, harbors, and navigable waters of this state; leges, academies, and, being so associated, shall, upon compliance with the provisions or literary insti of this act, be a body politic and corporate; may sue and be sued ; have a common seal, which they may change or alter at pleasure; purchase, hold, and convey, real and personal estate, of a value not exceeding ten thousand dollars; choose such officers, and make and adopt such articles and by-laws, as they may deem necessary or convenient for conducting and regulating their affairs, not inconsistent with the laws of this state or of the United States; and may do all acts necessary and proper for accomplishing the objects of said boat clubs.

to be lodged with

ed by town clerk.

SECT. 353. Before any such association shall be entitled to the Copy of articles privileges herein granted, it shall lodge with the secretary of this the secretary of state a copy of its articles or by-laws, attested by its commodore, state, and recordcaptain, or principal officer, and also cause a like copy to be recorded in a book kept for that purpose in the town clerk's office, in the town where such association is situated. And all subsequent alterations, or amendments of its articles or by-laws, shall, in like manner, be so attested, and the same shall not take effect until so attested, and left with the secretary, and town clerk, as aforesaid.

SECT. 354. The two preceding sections may be altered or repealed, Repeal. at the pleasure of the general assembly.