ing a bank or trust company. Forcign trust companies may do only such business as is permitted to domestic trust companies, and upon compliance with the laws.

(Laws of 1899, chapter 174; Laws of 1902, chapter 71; Laws of 1903, chapters 210 and 214; Laws of 1906, chapters 157 and 191; Laws of 1907, chapters 35, 40 and 50.)

NEW MEXICO.

Fifteen or more persons, a majority of whom are residents of the Territory, may incorporate a trust company. Articles of agreement must be filed with the Territorial Auditor of Public Accounts and with the probate clerk of the county. The capital stock actually subscribed must be at least $100,000, of which at least $100,000 must be paid in lawful money of the United States. The number of years that the corporation is to continue may not exceed fifty.

Powers specified: To receive money in trust; to guarantee special deposits; to do a safe deposit business; to accept and execute all such trusts and perform such duties of every description as may be committed to them by courts; to hold in trust real or personal property from whatever source received, and to execute any lawful trusts regarding same; to act as principal or surety and to guarantee against loss any principal or surety on any bonds required by law; to act as agent or attorney-in-fact for persons or corporations in the management of real or personal property and for the investment of money; to act as transfer agent and registrar; to execute trusts for married women with respect to their separate property, real or personal, and to act as agent in the management of same; to act as executor, administrator or as guardian of the estate or curator of any infant, insane person, idiot or habitual drunkard or convict; to do a fidelity insurance business; to guarantee the principal or interest, or both, of any securities of any kind; to conduct a title insurance business; to loan money on real estate and collateral security; to purchase, invest in and sell all kinds of Government, State, municipal and other bonds, and all kinds of negotiable and nonnegotiable paper, and other investment securities. Courts are authorized to appoint trust companies as administrators, guardians, trustees, receivers, assignees, or in other fiduciary capacities, and as legal depositories for funds in the keeping of persons holding fiduciary appointments. Such court or officer may make orders regarding such trusts, and require such accounts as could be required of a natural person acting in such capacity. Any trust company may qualify as executor, administrator, guardian, receiver, trustee, assignee, committee or in any other fiduciary capacity or as depository of money in court, may become sole guarantor, surety upon bonds, and so on, without giving bond, upon making with the Auditor of the Territory a deposit of not less than $50,000 nor more than $200,000, as the Auditor may from time to time require, in cash, Treasury notes of the United States, or Government,

State or Territorial bonds, or bonds of any county of this Territory which has not defaulted in the payment of its obligations for five years. Such deposit shall be primarily liable for the obligations of such corporation acting in fiduciary capacities, and shall not be liable for any other debt or obligation of the corporation until all such trust liabilities shall have been discharged. But such corporations may act in such fiduciary capacities without having made such deposit, upon the execution and approval of a bond as required by law in the case of individuals. The securities deposited with the Auditor must be by him turned over to the Treasurer of the Territory, who shall have custody of same.

No dividends may be declared by trust companies until at least $100,000 of the capital stock has been paid in. Before dividends are declared, one-tenth of the net earnings must be carried to a surplus fund until such surplus fund equals twenty per centum of the paid-in capital stock.

Such corporations may not make loans on their own stock; nor shall they purchase their own stock, except to prevent loss upon a debt previously contracted, in which case such stock must be disposed of within six months. Loans to any one person may not exceed twenty per centum of the paid capital, and loans to any director, officer or employee must not exceed ten per centum of the paid capital. Such corporations must maintain a reserve of 15 per centum of their liabilities other than the liabilities for which bonds in an amount not less than $50,000 have been deposited with the Auditor of the Territory. Three-fifths of the reserve may consist of balances due the corporation from any National, State or Territorial banks or from any trust companies designated by the Audiior of the Territory.

Trust companies are required to make to the Auditor of the Territory not less than four reports during each year, according to the form which may be prescribed by him, and such reports must be published in a local newspaper. The Auditor may in his discretion call for special reports at any time. He is required to make examinations of trust companies once each half year, and oftener if he deems it necessary. If unsafe conditions are found, he may take charge of the company, and notify the Governor, who shall require the Solicitor-General to institute proceedings for the appointment of a receiver. Trust companies may become depositories of Territorial moneys to an amount not exceeding forty per centum of their paid-up capital. The affairs of such companies shall be managed by a board of not less than five directors, each of whom shall own at least ten shares of stock, and a majority of whom shall be bona fide citizens of the Territory. Directors serve for one year, unless the articles of incorporation divide them into classes so that the terms of a part of them expire each year, in which case the terms may be for three or five years. They are required to take an oath for the faithful performance of their duties. Trust companies may hold real estate needed for the business, and such as is obtained in the settlement of debts due to them, but the latter must be disposed of as speedily as

possible. Provision is made for the conversion of building and loan companies into trust companies. The provisions of the general incorporation act are made applicable to trust companies, so far as not inconsistent with this act.

(Council substitute for Council bill No. 10, February 28, 1903; Laws of 1903, chapters 52, 54 and 115; Laws of 1905, chapters 78 and 106; Laws of 1907, chapters 4, 66, 103.)

NEW YORK.

An or

Thirteen or more persons may incorporate a trust company. ganization certificate must be filed with the Superintendent of Banks, who is charged with the duty of satisfying himself of the need of the proposed corporation and of the advisability of its incorporation. Capital required, at least $100,000 in towns or cities whose population does not exceed 25,000; at least $150,000 in cities of from 25,000 to 100,000 inhabitants; at least $200,000 in cities of from 100,000 to 250,000; and at least $500,000 in larger cities.

Powers specified:68 To act as fiscal or transfer agent or registrar; to act as agent for corporations, foreign or domestic; to receive deposits of trust moneys, securities and other personal property from persons or corporations; to loan money on real or personal securities; to hold real estate necessary for the transaction of business, and such as is acquired in the satisfaction or partial satisfaction of debts due to the company; to act as trustee under any mortgage or bond, "and accept and execute any other municipal or corporate trust not inconsistent with the laws of this State"; to execute trusts for married women with respect to their separate property, to act as agent in the management of same; to act under the appointment of court as guardian, receiver or trustee of the estate of any minor; to act as depositary of moneys paid into court; to exercise such legal trusts in regard to the management of property, real or personal, as may be confided to it by courts, persons, corporations, municipalities or other authority; to execute trusts and powers of every description received from any source; to purchase, invest in and sell stocks, bills of exchange, bonds and mortgages and other securities; to give its bonds or obligations for moneys or securities for moneys borrowed or received on deposit or for investment; to act as executor, trustee under will, administrator, and committee of the estates of lunatics, idiots, persons of unsound mind and habitual drunkards; to do a banking business. No such corporation may make any contract or accept or execute any trust which it would not be lawful for any individual to make, accept or execute. No loan exceeding in amount one-tenth of the capital stock shall be made by any such corporation, directly or indirectly, to any director or officer thereof, and such loans must have the consent of a majority of the directors. Foreign trust companies are forbidden to do

68 The powers of New York trust companies are printed in full in Chapter IV.

a trust company business in New York, and any person or corporation acting as agent for same is guilty of a misdemeanor. A trust company may have branches in the city in which its business is transacted, but not elsewhere: but written approval of the Superintendent of Banking must be obtained for the opening of a branch, and the capital of the company must exceed the capital required by law by the sum of $100,000 for each branch office maintained. Courts are authorized to appoint trust companies as administrators, guardians, trustees, etc. Moneys brought into court on orders or judgments may be deposited in properly designated and bonded trust companies. Before engaging in business such companies are required to deposit with the Superintendent of Banks securities equal in value to ten per centum of the paid-up capital stock, and not less in amount than $100,000 in cities of 500,000 population or more, not less than $50,000 in cities of from 100,000 to 500,000 population, not less than $30,000 in cities of from 25,000 to 100,000 population, and not less than $20,000 in smaller places. These securities must consist of public bonds or stocks of the United States, or of this State, or of any of its political subdivisions; they must be registered in the name of the Superintendent officially, as held in trust as security for the depositors with and the creditors of such corporation. Beyond this deposit, no security shall be required of trust companies for or in respect to any trust, or when appointed executor, administrator, guardian, trustee, receiver, committee or depositary; except that courts or officers making such appointments may, upon proper application, require such security as they deem proper. Such courts or officers may make further orders regarding such trusts, and may require the corporation to render such accounts as might be required of a natural person acting in like capacity. The capital of such a company shall be invested in bonds and mortgages on unincumbered real property in this State to the extent of 60 per centum of the value therof, or in the stocks or bonds of this State or of the United States, or of any county or city of this State duly authorized by law to be issued. The stocks or bonds must not be valued on the books or in reports at a higher value than that determined by amortization, so as to bring them to par at maturity. Moneys received in trust may be invested, in the company's discretion, in the same classes of securities as the capital, or in the stocks or bonds of any State of the United States, or in such real or personal securities as it may deem proper. No such corporation shall hold stock in any private corporation to an amount in excess of ten per centum of its capital, surplus and undivided profits; nor shall it own stock of another monied corporation (except of a safe deposit company immediately connected with and adjacent to it,) to an amount exceeding, in par value, ten per centum of the outstanding capital of such other monied corporation. On all sums of money not less than $100 which shall be collected and received by such corporation acting in trust capacities, interest must be allowed at not less than two per centum per annum. The affairs of

such corporations shall be managed by a board of directors of such number, not less than thirteen nor more than thirty, as shall from time to time be prescribed in its by-laws. Not less than one-third of such board of directors, and in no case less than seven, shall constitute a quorum. Each director must own and continue to own unpledged, at least ten shares of stock. Directors must take oath for the faithful performance of their duties. They must be divided into three classes, so that the terms of office of one-third of the members shall expire each year, each member then being elected for a term of three years. The directors must meet once a month. They must designate an officer or officers whose duty it shall be to submit to each director at each regular meeting, or to an executive committee of at least five members of the board a written statement of all purchases and sales of securities, and of every discount and loan of $1000 or more made since the last meeting of the board, with description of collateral, together with other information. A verified copy of this statement must be filed with the records. Specially chartered trust companies are subject to the provisions of the general law so far as not inconsistent with the special laws relating to them.

Trust companies, in common with other financial institutions, are required to render reports to the Superintendent of Banks, upon his call, at least once every three months, such reports to contain such particulars as the Superintendent may prescribe. Summaries of such reports must be published in a local newspaper. Trust companies are subject to the supervision and inspection of the Superintendent of Banks, who must examine them at least twice a year or oftener at his discretion. If unsafe conditions are revealed, he must notify the Attorney-General, and may take possession of the company until the termination of the action instituted by the Attorney-General. Special examinations by order of the supreme court may be made on application of creditors or shareholders whose debts or shares amount to $1,000. All official communications from the State Banking Department must be submitted to the Directors at their next meeting after receipt of same.

In April and October of each year the Directors are required to examine the company or cause a committee of at least three of their number to do so. The examination is to concern particularly the loans and discounts, and the statute specifies what it must cover. Within ten days after completion, a written report of the examination must be made to the directors, which must be placed on file in the company's records, and a duplicate of the report must be filed with the Banking Department.

Such a corporation is prohibited from making loans to one person, company, corporation or firm to an amount exceeding ten per centum of its paid capital and surplus: provided, however, that a trust company having its principal place of business in a borough in any city which borough had at the last census a population of 1,800,000 or over (i. e., the borough of Manhattan in New York city) may loan to one interest