mortgages 5. In bonds and mortgages on unincumbered real estate situate Bonds and in this State, and worth at least twice the amount loaned thereon, but not to exceed sixty per cent of the whole amount of deposits shall be so loaned or invested, but in case the loan is on unim proved or unproductive real estate, the amount loaned thereon shall not be more than forty per cent of its actual value; and no Investinvestment in any bond and mortgage shall be made by any sav- B.& M.not ings bank, except upon the report of a committee charged with the to be made duty of investigating the same, and who shall certify to the value upon reof the premises mortgaged or to be mortgaged, according to their committee best judgment, and such report shall be filed and preserved among the records of the institution. ments in except port of 6. In real estate, subject to the provisions of section twenty-nine Real esof this act. tate. be invest cable. fund of 10 deposits. in bank or § 27. It shall be the duty of the trustees of any such corpora- Moneys to tion, as soon as practicable, to invest the moneys deposited with ed asse them in the securities named in the twenty-sixth section of this act, as practiexcept that, for the purpose of making* current payments and expenses in excess of the receipts, there may be kept an available Available fund of not exceeding ten per cent of the whole amount of deposits per cent of with such corporation, and the same may be kept on hand, or on deposit, in any bank or banking association in the State of New York, organized under any law or laws of this State, or of the United States, or with any trust company incorporated by any law of this State, but the sum so deposited in any one bank or trust Deposits company shall not exceed twenty-five per cent of the paid-up capital trust co and surplus of such bank or trust company; or such available fund, not to exor any part thereof, may be loaned upon pledge of the securities, cent of or any of them, named in subdivisions one, two, three and four of surplus. section twenty-six of this act; but not in excess of ninety per cent Available of the cash market value of such securities so pledged, nor in excess of the par value thereof; and should any of the securities so held upon secu in pledge depreciate in value, after making any loan thereon, it shall be the duty of the trustees to require the immediate payment In case of of such loan, or of a part thereof, or additional security therefor, so tion of se. that the amount loaned shall at no time exceed ninety per cent of curities. the market value of the securities pledged for the same. ceed 25 per capital and fund may be loaned rities. deprecia rary de banks or due pro § 28. It shall further be lawful for any such corporation to deposit Tempotemporarily in banks or trust companies, as provided in the last pre- posits in ceding section of this act, the excess of current daily receipts over trust com. the payments, until such time as the same can be judiciously invested panies. in the securities named in section twenty-six of this act; and when- In case un ever it shall appear to the Superintendent of the Bank Department portion of that the trustees of any such corporation are violating the spirit and money is intent of the foregoing provision, by keeping permanently unin- vested. vested all, or an undue proportion, of the moneys received by them, it shall be his duty to report the facts to the Attorney-General, who shall proceed against such corporation under the provisions of section. forty-four of this act. kept unin 29. It shall be lawful for any such corporation to purchase, hold Real esor convey real estate, only as follows: *So in the original. Should be meeting. tate. Banking house. Cost of such build 1. A plot whereon is erected, or may be erected, a building or buildings requisite for the convenient transaction of its business, and from portions of which, not required for its own use, a revenue ing and lot may be derived. The cost of such building or buildings and lot in no case to exceed fifty per cent of the net surplus of such corporation, per cent of except by written permission of the Superintendent of the Banking except by Department, except where lots have been heretofore purchased, or sion of the where maps, plans and estimates have been made for the purpose of erecting a banking building. not to ex ceed 50 surplus, permis Superin tendent. Real estate purchased at sales upon foreclosure of Such real estate to be sold within 5 years. Superintendent may extend time. 2. Such as shall have been purchased by it at sales upon the foreclosure of mortgages owned by such corporation, or upon judgments or decrees obtained or rendered for debts due to it or in settlements mortgage. effected to secure such debts; and all such real estate mentioned in the last preceding clause, shall be sold by such corporation within five years after the same shall be vested in it, unless, upon application by the board of trustees, the Superintendent of the Banking Department shall extend the time within which such sale shall be made; and it shall be lawful for any such corporation, with the apChange of proval in writing, and under the seal of the Superintendent of the location. Banking Department, to change its location within the limits of any city or town wherein it may be established; and in effecting such change of location, such corporation owning a banking-house and Additional lot may purchase such additional plot under the provisions of subplot for division one of this section as the corporationmay require; and such house may banking-house and lot, previously owned and occupied, shall be sold, as provided in subdivision two of this section, concerning real estate acquired in satisfaction of debts. banking be pur chased. Moneys deposited not to be loaned upon notes, etc., nor $30. It shall not be lawful for the trustees of any savings bank to loan the moneys deposited with them, or any part thereof, upon notes, bills of exchange, drafts, or any other personal securities whatever; and in all cases of loans upon real estate, a sufficient personal bond, secured by a mortgage thereon, shall be required of the borrower, and all the expenses of searches, examinations and certifireal estate cates of title or appraisals of value, and of drawing, perfecting and recording papers, shall be paid by such borrower. securities. Loans on to be se cured by B & M. Buildings to be insured by mortgagor. § 31. Whenever buildings are included in the valuation of any real estate upon which a loan shall be made by any such corporation, they shall be insured by the mortgagor in such company or companies as the trustees shall direct, and the policy of insurance shall be duly assigned, or the loss made payable, as its interest may apInsurance pear, to such corporation; and it shall be lawful for such corporation policy may to renew such policy of insurance, in the same, or in any other comnewed by pany or companies, as they may elect, from year to year, or for a poration if longer or shorter term, in case the mortgagor shall neglect to do so, mortga- and may charge the amount paid to the mortgagor. And all the neglects to necessary charges and expenses paid by such corporation, for such be the cor gor do so. Limita tions on business. Amended 1878, ch. 347, post. renewal or renewals, shall be paid by such mortgagor to such corporation, and shall be a lien upon the property so mortgaged, recoverable with interest from the time of payment as part of the moneys secured to be paid by such mortgage. § 32. It shall be unlawful for any savings bank, directly or indirectly, to deal or trade in real estate, in any other case or for any other purpose than as authorized in section twenty-nine of this act, or to deal or trade in any goods, wares, merchandise or commodities whatever, except as authorized by the terms of this act, and except such personal property as may be necessary in the transaction of its business; and it shall be unlawful for any savings bank, or for any officer, in his regular attendance upon the business of such bank, to in any manner engage in the business, in such bank, of buying or selling exchange, gold or silver, or in the business of collecting or protesting promissory notes or time bills of exchange. Interest deposits. 1877, ch. fund of 10 of depos Depositors classes dividends. to allow deposits § 33. It shall be the duty of the trustees of every such corporation to regulate the rate of interest or dividends, not to exceed six or diviper centum per annum, upon the deposits therewith, in such manner dends on that depositors shall receive, as nearly as may be, all the profits of Amended such corporation, after deducting necessary expenses and reserving 256, post. such amount as the trustees may deem expedient as a surplus fund Surplus for the security of depositors, which, to the amount of ten per cent per cent of their deposits, the trustees of any such corporation are hereby its authorauthorized gradually to accumulate and hold, to meet any contin- ized. gency or loss in its business, from the depreciation of its securities or otherwise; provided, however, that the trustees of any such corpo- may be diration may classify their depositors according to the character, vided into amount and duration of their dealings with the corporation, and with regulate the interest or dividends allowed, in such manner that each respect to depositor shall receive the same ratable proportion of interest or dividends as all others of his class. It shall be unlawful for the Unlawful trustees of any savings bank to declare or allow interest on any interest on deposit for a longer period than the same has been deposited, except for a that deposits made not later than the tenth day of the month, com- riod than mencing any semi-annual interest period, or than the third day of any the same month, or withdrawn on one of the last three days of the month, deposited. may have interest declared upon them for the whole of the period Excepor month when so deposited or withdrawn. No dividends or inter- No diviest shall be declared, credited or paid except by the authority of dends to a vote of the board of trustees, duly entered upon their minutes, whereon shall be recorded the ayes and nays upon such vote, and of the whenever any interest or dividends shall be declared and credited in excess of the interest or profits earned and appearing to the credit of Trustees the corporation, the trustees voting for such dividend shall be jointly dividends and severally liable to the corporation for the amount of such excess of profits. so declared and credited. And it shall be the duty of the trustees of any such corporation whose surplus amounts to ten per cent of Extra divits deposits at least once in three years, to divide equitably the accumulation beyond such authorized surplus as an extra dividend three to depositors, in excess of the regular dividends herein befcre authorized. longer pe has been tions. be made except by authority board of trustees. voting for in excess idends once in years. nation of surplus. § 34. In determining the per cent of surplus held by any savings Determibank, its interest-paying stocks and bonds shall be estimated at their per cent of market value; its bonds and mortgages on which there are no arrears Amended of interest for a longer period than six months shall be estimated at 1877, ch. their face, and its real estate at not above cost. Concerning such Concernstocks or bonds, or bonds and mortgages as are in arrears of interest tion of for six months or more, and concerning all other investments not bonds, and 256, post. ing valua stocks, 13 J. & S. Compensa. bonds and herein enumerated, the Superintendent of the Banking Department mortgages, shall determine the valuation of the same, from the best information 621. he can obtain, and he may change valuation thereof, from time to time, according as he may obtain other and further information. $35. It shall be lawful for trustees of such corporation, acting as officers of the same, whose duties require and receive their regular and faithful attendance at the institution, to receive such compensation as in the opinion of a majority of the board of trustees shall be just and reasonable; but such majority shall be exclusive of any trustee to whom such compensation shall be voted; but it shall not be lawful to pay trustees, as such, for their attendance at meetings of the board. tion of trustees acting as officers. Reports to each year. What shall be stated in such reports. Amended 1877, ch. 256, post. Shall also state liabilities. Other reported. § 36. Every such corporation shall, on or before the first day of February in each year, make a report in writing to the Superintendent of the Banking Department, and in such form as he shall prescribe, of its conditions on the morning of the first day of January preceding. 37. Such report shall state the amount loaned upon bond and mortgage together with a list of such bonds and mortgages, and the location of the mortgaged premises, as have not previously been reported, and also a list of such previously reported as have since been paid wholly or in part, or have been foreclosed, and the amount of such payments respectively; the cost, par value and estimated market value of all stock investments, designating each particular kind of stock; the amount loaned upon the pledge of securities, with a statement of the securities held as collateral for such loans; the amount invested in real estate, giving the cost of the same; the amount of cash on hand, and on deposit in banks or trust companies, with the names of such banks or trust companies, and the amount deposited in each, and such other information as the Superintendent may require. $38. Such report shall also state all the liabilities of such savings corporation on the morning of the said first day of January; the amount due to depositors, which shall include any dividend to be credited to them for the six months ending on that day, and any other debts or claims against such corporation which are or may be a charge upon its assets. Such report shall also state the amount items to be deposited during the year previous, and the amount withdrawn during the same period; the whole amount of interest or profits received or earned and the amount of dividends credited to depos itors, together with the amount of each semi-annual credit of interest, and the amount of interest that may have been credited at other than semi-annual periods; the number of accounts opened or reopened, the number closed during the year, and the number of open accounts at the end of the year, and such other information as may be required by the Superintendent. Report, how verified. $39. Such report shall be verified by the oath of the two principal officers of the institution, and the statement of assets shall be verified by the oath of a majority of the trustees who examined the same, pursuant to the requirements of section forty-five of this act; and any willful false swearing in regard to such reports, or in regard to any reports made to the Superintendent of the Banking Depart ment pursuant to the provisions of this act, shall be deemed perjury, and be subject to the prosecutions and punishments prescribed by law for that offense. for failure $40. If any savings bank shall fail to furnish to the Superintendent Penalty of the Banking Department any report or statement required by this to report. act, at the time so required, it shall forfeit the sum of one hundred dollars per day for every day such report or statement shall be so delayed or withheld; and the said Superintendent may maintain an action in his name of office to recover such penalty, and, when collected, the same shall be paid into the Treasury of the State, and be applied to the expenses of the Bank Department; but the superintendent may, for sufficient cause, extend the time for making such report not exceeding thirty days. make re other au § 41. No such corporation shall hereafter be required to make Not reany annual or other report to the Legislature, nor to the mayor or quired to commonalty of any city, nor to the board of supervisors of any port to county, nor to any other officer or authority whatsoever, except thorities. as in this act provided and required, any thing in the charter of Not subany such corporation to the contrary notwithstanding, nor shall they ject to the be subject to the inspection or supervision of any local officer, or of or interboard, nor to any interference from any such local officer or board, from local in any matters pertaining to the business or dealings of such corpo- board. ration. inspection ference officer or tendent of ment to the legisla 42. It shall be the duty of the Superintendent of the Bank- Superining Department, on or before the first day of March in each year, to banking communicate to the Legislature a statement of the condition of departevery such corporation from which a report has been received for the report to preceding year, also the name and location of savings corporations ture on or authorized by him during the previous year, with the date of their March 1, in incorporation, and particularly designating those incorporated at each year. any time which have commenced business during the previous year. before tions. examiner. 43. It shall be the duty of the said Superintendent once in two Examinayears, either personally or by some competent person or persons to tion of be appointed by him, to visit and examine every savings corporation corporain this State. The Superintendent shall also have power, in like manner, to examine any such corporation, whenever, in his judg ment, its condition or management is such as to render an examination of its affairs necessary or expedient. The said Superintendent Power of and every such examiner, shall have power to administer an oath to any person whose testimony may be required on any such examination, and to compel the appearance and attendance of any such person for the purpose of such examination, by summons, subpœna or attachment, in the manner now authorized in respect to the attendance of persons as witnesses in the courts of record of this State; and all books and papers which it may be deemed necessary to exami: e by the Superintendent or the examiner or examiners so appointed, shall be produced, and their production may be compelled in like manner. The expense of every such special examination, if any, Expense o shall be paid by the corporation examined, in such amount as the special ex Superintendent shall certify to be just and reasonable. Whenever such special examination shall be made by the Superintendent in person, or by one or more of the regular clerks in his department, amination. |
