in their charters to the contrary notwithstanding. They must keep a reserve of 15 per centum of aggregate deposits payable on demand or within ten days. The stockholders are subject to double liability.

The laws of this State relating to "trust and loan associations" do not refer to trust companies, but to building and loan associations.

(Revised Statutes, chapter 46; Laws 1889, chapter 312; Laws 1893, chapters 281 and 293; Laws 1895, chapter 48; Laws 1897, chapters 218, 247, 259; Laws 1899, chapter 68; Laws 1901, chapters 196, 286; Laws 1905, chapter 171; Laws 1907, chapters 96, 119.)

MARYLAND.

Trust companies in this State are incorporated only by special act of the Legislature. There was formerly a general law for the incorporation of such companies, which was repealed in 1890. (Chapter 272, Laws of 1890.) The special charters define the powers and duties of such companies, which are usually quite full. The only general laws applying to trust companies now are those designed to regulate and control same. They are required to make semi-annual reports as of June 30 and December 31, to the Treasurer of the State. The statutes specify the matters to be covered in the reports, but the Treasurer of State may call for additional information, and for additional reports. They are subject to an annual examination by the Treasurer or his appointee, the items to be covered in the examination being specified by the statute. If a company be found unsafe, the Treasurer shall report to the Attorney-General, who shall institute proceedings. Trust companies are required to deposit with the State Treasurer, to be held by him in trust as security for creditors, securities equal in value to 15 per centum of the paid-up capital, and not less than $30,000 in amount. Neither the deposits nor the loans of the company shall be allowed to exceed ten times the paid-up capital and surplus, "but any such corporation authorized to receive court deposits may at any time receive on deposit and loan out any money which may be deposited with it by order of any of the courts of this State notwithstanding such limitation." The stockholders are subject to double liability. The Treasurer of State is required to report to the General Assembly at each regular session the condition of all trust companies.

(Acts of 1892, chapters 109, 279; Acts of 1908, p. 56.)

MASSACHUSETTS.

Trust companies, which in this State were formerly incorporated only by special act of the Legislature, may, by an act passed in May, 1904, be incorporated under the general law. Fifteen or more persons may incorporate. Notice of intention to organize a trust company must be given to the Board of Bank Incorporation, consisting of the Bank

Commissioner, the Treasurer and Receiver-General, and the Commissioner of Corporations, and must be published. The procedure for organization is set forth at length in the statute. No shares of stock shall be issued until the par value thereof is paid in full in cash. The amount of the capital shall not be less than $200,000, nor more than $1,000,000; except that in cities or towns of a population not greater than 100,000 the capital stock may be not less than $100,000, divided into shares of $100 each. When the entire capital stock is paid for and issued, a list of stockholders with addresses and number of shares held must be filed with the Board of Bank Incorporation, who, if satisfied that the law has been complied with, issue a certificate authorizing the corporation to begin business. No corporation not duly authorized may advertise business as a trust company. Officers of the corporation shall be sworn to the faithful performance of their duties. Each director must own at least ten shares of unpledged stock, and a majority of them must be citizens and residents of the Commonwealth and not more than a third may be directors in any other such corporation. The books of the company must at all reasonable times be open to the inspection of stockholders and beneficiaries under trusts. Trust companies in Boston must keep a reserve of 20 per centum of aggregate deposits less time deposits not payable within thirty days: trust companies elsewhere in the State must keep reserves of 15 per centum. Two-fifths of the reserve must be in cash on hand. The remainder may be on demand deposit with Boston trust companies duly authorized as reserve agents, or with National banks in Massachusetts or in the cities of New York, Philadelphia, Chicago or Albany. A por tion of the reserve not exceeding one-fifth may consist of bonds of the United States or Massachusetts: provided, that the aggre

gate cash reserve must always equal five per centum of the total time and demand deposits, exclusive of deposits in the savings department. Any Boston trust company may be authorized by the Bank Commissioner to act as reserve agent for other trust companies in the state. Such reserve agent trust companies must keep one-half of their reserves in cash, and the balance may be on demand deposit with other Boston reserve agent trust companies or with the National banks above described.

Powers specified, to receive on deposit, storage or otherwise, money, Government securities, stocks, bonds, coin, jewelry, plate, valuable papers and documents, evidences of debt, and other property of any kind; to collect and disburse income or principal; on deposits of money so received it shall not give collateral or other security; to advance money on credits on real property in the State or on personal security; to invest in stocks, bonds or other evidences of indebtedness of corporations; but "no trust company shall advance money or credits upon notes secured by deed of trust or by mortgage upon farms or agricultural or unimproved land outside of this Commonwealth, except upon land situated in the New England States or the State of New York, nor invest in nor make loans upon securities of a company negotiating or dealing in such notes

sc secured or in such mortgages"; and "no trust company shall as agent, buy, sell or negotiate securities or evidences of debt on which said company may not lawfully advance money or credits, nor as such agent buy, sell or negotiate evidences of debts secured by real estate under mortgage or deed of trust"; to act as depository of court and trust funds; if court funds remain unclaimed for a period of more than ten years, the court may upon motion of the Attorney-General order same to be paid to the Treasurer and Receiver-General to hold for the owners; to act as executor, administrator, receiver, assignee, guardian, conservator or trustee "under the same circumstances, in the same manner, and subject to the same control by the court having jurisdiction of the same, as a legally qualified person"; any such appointment as guardian shall apply to the estate and not to the person of the ward; to act as transfer agent, registrar, fiscal agent, trustee under bond issues. Trust funds may be invested only in authorized loans of the United States, or of any of the New England States, Illinois, Iowa, Michigan, Minnesota or Wisconsin, or the cities or counties thereof, or stocks of State or National banks organized within the Commonwealth, or in the first mortgage bonds of a railroad incorporated in any of the New England States and whose road is located wholly or in part in the same and which has earned and paid regular dividends on all its stocks for two years, or in the bonds of any such railroad company unencumbered by mortgage, or in first mortgages on real estate in this Commonwealth, or in any securities in which Savings banks may invest, or upon notes with two sureties of domestic manufacturing corporations or of individuals with a sufficient pledge as collateral of any of the aforesaid securities; but real estate acquired by foreclosure, etc., shall be sold at public auction within two years.

The capital and liability of stockholders shall be held as security for the faithful performance of duties in trust capacities, and no surety shall be required upon bonds filed by such corporations, except that the court may at its discretion, upon application of interested parties, require additional security where the company is by it appointed as executor, administrator, receiver, assignee, or guardian. The company must be governed in the matter of investment of trust funds by the directions, if any, of persons creating trusts. A trust department must be maintained for the purpose of keeping separate the trust funds and property and the accounts thereof. If savings deposits are received, a separate savings department must be maintained, whose assets shall be appropriated solely to the security and payment of such deposits, the accounts and transactions of the department being kept separate. Ninety days' notice may be required for withdrawals in this department. Trust companies chartered subsequent to May 21, 1896, must annually set apart ten per centum of net earnings to a guaranty fund until same equals 25 per centum of the capital, which fund shall be invested in the same manner as deposits in Savings banks may be invested. With companies

chartered prior to that date, the creation of such guaranty fund seems to be optional, but the fund once established must be maintained as long as trust undertakings remain unfinished. The guaranty fund shall be absolutely pledged for the faithful performance of trust duties, and trust creditors have in addition thereto an equal claim with other creditors upon the capital and other property of the corporation. Stockholders are subject to double liability. No such corporation shall loan upon its own stock, or purchase same, except to prevent loss upon a debt previously contracted in good faith, in which case the stock shall within six months be sold at public or private sale. The total loans to one person or firm shall not exceed one-fifth of the paid capital and surplus, where the capital of the company is $50,000, or over, nor one-fifth of the capital of companies with a smaller capital; but bona fide discounts shall not be considered as money borrowed. Such corporation may hold real estate unencumbered by mortgage, for its use, to an amount not exceeding 25 per centum of its paid capital, and in no case exceeding $250,000; but investments legally made prior to April 18, 1894, need not on this account be changed. Branch offices for receipts of deposits, payment of checks and transacting a safe-deposit business, only, to be conducted in the same city where the main office is located, but not elsewhere, were formerly permitted; and may be continued, if heretofore authorized: but after January 1, 1909, a trust company may be authorized to have one such branch only. Reports must be made on call of the Bank Commissioner, not exceeding five times within any calendar year, giving full information detailed in the statute. For purposes of taxation, they render an annual report in May. Such companies are subject to examination by the commissioners the same as Savings banks; i. e., annually and whenever the commissioner deems it wise. The stockholders of every trust company are required to elect cach year an examining committee of three stockholders who are not members of the executive or finance committees, nor the president, vice-president, secretary or treasurer of the company. At least once a year, without previous notice to the officers or directors, this committee must make or cause to be made a thorough examination of the company's affairs. Within ten days after the completion of the examination the committee must report to the bank commissioner, giving the assets and liabilities, including those of the trust department, and such other information as the commissioner may require. The report must also be read to the directors and to the stockholders at their next meetings. If the commissioner thinks it necessary after receipt of the report he may require a special examination by an expert, at the company's cost.

(Revised Laws, chapter 116, including amendments to 1902; Acts 1902, chapter 355; Acts 1904, chapters 200, 374; Acts 1905, chapters 189, 228, 331; Acts 1906, chapter 204; Acts 1907, chapters 319, 320, 417, 487. Acts 1908, chapters 116, 520.)

MICHIGAN.

Seven or more persons may incorporate to carry on a "trust, deposit and security business." Articles of association must be executed in triplicate and filed. The capital must be at least $300,000 in cities of 100,000 inhabitants or more, and at least $150,000 in smaller places, and may not exceed $5,000,000; 50 per centum must be paid in at the start and the balance within six months. Before the company begins business, 50 per centum of the capital, but not more than $200,000 in amount, in securities, must be deposited with the State Treasurer. The number of directors must be seven or more, and each must own at least ten shares of stock. Before a dividend is declared, one-tenth of the net profits must be carried to surplus fund, until it equals 20 per centum of the capital. Powers specified, to hold real and personal property in trust; to execute trusts for married women and minors; to administer court trusts; to act as agents or attorneys for the transaction of business, the management of estates, the collection of income, principal, etc.; to act as fiscal agent, transfer agent and registrar; to act as executor, administrator, trustee, receiver or assignee, guardian of any minor, incompetent person, lunatic, or any person subject to guardianship, courts being authorized to make such appointments; except in the discretion of the court, trust companies acting in these capacities need not be required to give security other than the deposit with the State Treasurer; to loan upon real and collateral security; to issue its notes and debentures payable at a future date; but nothing herein contained shall be construed as giving the right to buy and sell bank exchange, or do a general banking business; to do a safe-deposit business; to become sureties in cases where, by law or otherwise, one or more sureties are required, except as surety on any recognizance for criminals; to do a title insurance business. Such companies may hold real estate needed for the transaction of business, including with the business office, other apartments in the same building to rent as a source of income, and such as is acquired in the settlement of debts; but the latter shall not be reckoned as an asset for longer than five years. They may hold real estate in trust. They must keep a reserve of 20 per centum of "matured obligations and money due and payable." Of this three-fourths may be kept in any bank or trust company approved by the Commissioner of the Banking Department. The securities to be deposited with the State Treasurer shall consist of bonds secured by mortgages, or notes and mortgages on unincumbered real estate in Michigan, worth double the amount secured thereby, or public stocks and bonds of the United States, of Michigan, or of any State of the United States that has not defaulted on principle or interest for ten years, or in duly authorized issues of counties, townships, school districts and municipalities in such States. The directors may invest the balance of the capital, and moneys received in trust, in the same securities, or in such real or personal securities as they may deem proper." The