$100,000 nor more than $1,000,000, divided into shares of $100 each; 20 per centum must be paid in before beginning business, and the balance within six months. The name of any such company must commence with the word "the", and end with the words, "trust company". None but companies complying with and organized under the trust company laws may use the word "trust" in titles. The directors may be from five to fifteen in number; a majority of them must be residents of Kansas, and each must own not less than $1,000 of stock. They must take an oath of office. Before dividends are declared ten per centum of the net earnings must be carried to surplus fund until the latter equals one-half of the capital. The company may own real estate for its own use, and such as is acquired in the collection of debts, but the total amount shall not exceed in value 50 per centum of the capital for more than six months. Trust companies are under the supervision of the Bank Commissioner, to whom they must make four reports yearly, and are subject to examination by him the same as banks, at least once per annum. The banking law applies to them regarding impairment of capital and insolvency. In the absence of special provisions in this act, the general corporation act shall apply.

(Laws of 1901, chapter 407; Laws of 1903, chapter 528; Laws of 1907, chapter 425.)

KENTUCKY.

Companies may be incorporated either to do a trust business, or to do both a banking and a trust business. For the former, seven or more corporators are required. The capital must be not less than $15,000 in counties whose population is from 25,000 to 40,000; not less than $100,000 in counties of from 40,000 to 100,000 population, and not less than $200,000 in counties having a larger population; provided, that in counties having a population of 25,000 or more, trust companies may be organized with a capital of $25,000 in cities of the fourth, fifth or sixth class. Fifty per centum of the capital must be paid in, and the balance within one year. Copies of the articles of incorporation must be filed with the clerk of the county, and with the Secretary of State. Powers specified, to have the powers usual with corporations; "to exercise, subject to law, such powers as may be necessary to carry on its business"; to act as guardian of infants, executor, administrator or curator of estates of decedents, "committee of persons of unsound mind, receiver or trustee for persons or estates"; to act as agent or attorney for the management of estates, the collection of rents, accounts, etc., "and demands of every character"; to receive on deposit or for safe-keeping, gold, silver, money and other personal property. Such corporations are forbidden to loan on their own stock, and to purchase same except to prevent loss on a debt previously contracted, in which case such stock shall not be held longer than one year. No person shall be allowed to become indebted to the company in a sum exceeding ten per centum of the

paid-up capital and surplus, except that on good collateral or mortgage. security the sum may be increased to 20 per centum. If the borrower is a directer or officer of the company, he shall not be permitted to become indebted to the company in excess of ten per centum of paid capital and surplus, unless the excess be secured by mortgage or pledge of real or personal property double in value the amount of such excess. When acting in trust capacities whose duties are regulated by law or subject to the control of courts, trust companies shall be subject to the same duties and responsibilities, have the same rights and powers, and receive the same compensation as would individuals acting in like capacities. But upon bonds required to be executed in such cases the capital stock of the company shall be taken as the only security required, unless the court or some party in interest demands more. A trust company may hold real estate needed for its business, and for a period not longer than five years such real estate as is acquired in the satisfaction of debts due it. It may hold, operate, and manage real estate for others. Such companies are forbidden to engage in banking, or to buy or sell bills of exchange.

Companies may, however, as above stated, be incorporated to do "both a banking business and a trust company business." Such a corporation must have a paid capital of at least $50,000 before commencing business, except that if the subscribed capital is $100,000 or over, one-half must be paid before commencing business, and the balance within a year. One-half of such capital "shall be securely invested for the trust business of the corporation, and shall at all times be kept separate and distinct from its other assets, and shall be primarily liable for its fiduciary obligations." The remainder of the capital may be used for its banking business, and the books must be so kept as to at all times show the condition of its banking business and of its trust busiThe banking department is governed by the banking laws, and the trust department by the trust company laws. Stockholders are subject to double liability. A list of the stockholders and officers must be filed in January of each year with the Secretary of State. The capital and funds not held in a fiduciary capacity may be invested at the discretion of the directors; the trust funds, under order of court or as provided by law for the investment of other trust funds. Trust companies must make reports and be subject to examinations the same as banks; i. e., reports shall be made quarterly, and each alternate report shall be published in a newspaper published in the county, if any, and which has the largest bona fide circulation in the county.

ness.

(Statutes, 1903, $$603-616. Laws of 1904, chapter 78. Laws of 1906, chapters 22, 46 and 146.

LOUISIANA.

Five or more persons may incorporate for the purpose of conducting a savings, safe deposit and trust banking business. A certificate of

authority must be obtained from the State Examiner of State Banks. One-half of the subscribed capital must be paid in before commencing business, and the balance within ninety days. Powers specified, to have succession for a period specified in the articles of incorporation, not to exceed ninety-nine years; to have the other ordinary powers of corporations; to hold real and personal property needed or convenient for the purposes of the association; the real estate that may be held is limited to such as is necessary for the proper transaction of the business and such as is acquired in satisfaction of debts, but the latter may not be held more than ten years; to accept and execute "trusts and agencies of any and every description which may be committed or transferred with their consent to them by any person or persons, corporation, board or body, public or private," or by State or United States courts; to act as executor, administrator, syndic, receiver, curator, tutor, trustee or assignee, “in the same manner and to the same extent and under the same conditions that natural persons may be so appointed"; but as curator of an interdict or tutor of a minor, it shall have charge of the estate only, not of the person, and the commissions allowed by law shall be equally divided between the company and the persons having charge of the person; to act as depository of funds held by persons or officers acting as fiduciaries; to do a banking business.

Regarding the trust business that may be undertaken, it is to be noted that the constitution and laws of the State prohibit trusts, as they exist elsewhere under the common law; and the trust company act specially provides that nothing therein "shall be construed as authorizing the constitution of any agency or trust in this State which is contrary to the public policy of the State of Louisiana, or which seeks to place the property of persons or estates in this State out of commerce, in contravention of the laws of inheritance of this State, or of the prohibitions therein contained against fidei commissa and substitutions."

There is no limit specified to the number of directors, but a majority of them must be citizens of the State. The capital of the company, where it acts in fiduciary capacities, is to be taken as the security required by law for the faithful performance of duty; but the court may require other security. Money or property deposited by married women or minors is subject to their control. The company must keep a reserve of 25 per centum of its demand deposits. Of this eight per centum must be on the premises in cash. The remainder of the reserve may consist of deposits in other banks, or bills of exchange, or discounted paper maturing within not more than one year, or in State, United States or municipal bonds. The capital must be at least $100,000.

Such companies have the powers and are subject to the regulations. and liabilities of State banks. They may have branches within the limits of the municipality or parish. Trust funds may be invested in United States or State bonds, county, municipal and other public bonds of Louisiana and other States that are quoted at or above par and have not

defaulted in interest for two years; stocks of railroads, canals and other quasi-public corporations quoted at or above par and having paid interest at not less than four per centum for five years; or in first mortgages on real estate appraised at double the amount of the loan and said mortgages running not longer than ten years. Trust funds or property must not be included in the published assets of the company. Reports as of a specified past day must be made, on call of the State Examiner, four times a year, and must be published in a local paper. Examinations are made by the same official, at his discretion or on order of the Governor or the Courts. Loans to any one borrower, except loans on "good collateral or solvent endorsements," are restricted to 20 per centum of the capital, surplus and undivided profits. No loans may be made to officers or employees, unless approved by the Directors at a meeting at which the applicant is not present. Before declaration of a dividend, one-tenth of the profits must be added to the surplus until the latter equals 20 per centum of the capital. Dividends must be earned during the dividend period, unless the undivided profits are enough to pay the dividend and all losses. All loans, discounts, overdrafts and other debts past due more than twelve months, and on which interest has not been paid, must be classed as bad debts, and be either charged off or reduced in value after an appraisement by the Bank Examiner and two stockholders, before a dividend is declared.

(Laws of 1902, Act No. 45. Act No. 179; Laws 1904, Act No. 40; Laws 1906, Act No. 140; Laws of 1908, Acts 188, 251, 288.)

MAINE.

Until late in the year 1907, trust companies in this State were incorporated only by special acts of the Legislature, their powers being defined in such special charters. They may now be incorporated under the provisions of the elaborate trust company law, approved March 21, 1907. The number of corporators required is five or more. The powers specified are to receive deposits and to allow interest thereon; to borrow money; to loan money on credits or real estate or personal security, and to negotiate loans and sales for others; to do a safe deposit business; to hold and enjoy real or personal or mixed property; to act as transfer agent or registrar; to execute trusts of every description and to hold property in connection therewith; to act as assignee, receiver, executor, "and no surety shall be necessary upon the bond of the corporation, unless the court or officer approving such bond shall require it"; "to do in general all the business that may lawfully be done by trust and banking companies." Capital required, $25,000 in a town of not more than five thousand inhabitants; $50,000 in cities of from five to ten thousand inhabitants; $75,000 in cities of from ten to twenty thousand inhabitants; $100,000 in cities of from twenty to thirty thousand inhabitants; $150,000 in larger cities. The shares must have a par value of $100 each. No stock shall be issued until its par value has been paid in in cash.

The number of directors shall be at least five, two-thirds of whom must be residents of the State, and each of whom shall own at least ten shares of stock. The stockholders may at their option elect from the Board of Directors an Executive Committee of not less than five members. The Board of Directors or the Executive Committee shall constitute the board of investment of the company, and shall keep records of all loans and investments, which record shall be submitted to the directors, stockholders and bank examiner.

A separate trust department must be maintained, and all trust moneys and property be kept separate. Persons holding fiduciary appointments may deposit their funds or securities with a trust company. Loans to one person, firm, business syndicate or corporation may not exceed ten per centum of the total capital, unimpaired surplus and net undivided profits, "except on approval of a majority of its entire investment board, unless secured by collateral, nor in excess of 25 per centum thereof, except on such approval and secured by collateral which in the judgment of said majority of said investment board shall be of a value equal to the excess of said loan above said 25 per centum;" provided, that in determining said amount every name appearing on any loan as endorser, guarantor or surety shall be regarded as an original promissor. Bona fide discounts are not regarded as money borrowed. In all cases where loans in excess of ten per centum are granted, the records must show who voted in favor thereof. Loans in any form to officers, directors or employees may be made only after approval of a majority of the board of directors or executive committee, and the names of those voting for such loans shall be spread upon the minutes. The applicant for the loan or anyone associated or connected with him may not be regarded as voting for the loan.

Trust companies are required to make and publish reports as directed by the bank examiner. Annual examinations by two of the directors, under the direction of the bank examiner, are required. Branches may not be established outside the city or town in which the company is located, without special warrant from the bank examiner, and in any event a trust company may not establish branches outside of its own and an adjoining county. Every director, officer, agent or employe who authorizes, or assists in procuring, granting or causing the granting of a loan in violation of the law as stated above relating to loans to directors or officers, every director who votes on same, and every director, officer, agent or employee who wilfully and knowingly pays out funds or permits or causes same to be done on loans in violation of said provisions, "shall be personally responsible for the payment thereof, and shall be guilty of a misdemeanor".

For purposes of taxation, trust companies are required to make returns to the State assessors semi-annually. Money deposited in trust companies by minors or married women is subject to their order. Such corporations are forbidden to act as administrator or guardian, anything