1888, 250, § 2.

1890, 298.

1890, 394.

h. In the bonds and notes of the Boston and Maine Railroad issued according to law, notwithstanding any mortgages on that part of its railroad, franchises and property formerly belonging to the Eastern Railroad Company, the Eastern Railroad in New Hampshire, or the Portsmouth, Great Falls and Conway Railroad.

i. In the first mortgage bonds of the Concord and Montreal Railroad, notwithstanding such company be formed by the union of two or more companies, only one of which has paid regular dividends for the two years next preceding such investment on all its issues of capital stock, and notwithstanding the mortgage indebtedness existing on that part of its road formerly belonging to the Boston, Concord and Montreal Railroad: provided, however, that said bonds shall be issued in whole or in part to renew and refund said existing mortgage indebtedness, and that an amount of such bonds equal at the par value to the amount of such existing mortgage indebtedness shall, by the terms of the mortgage securing the same, be made applicable exclusively to the payment of such existing mortgage indebtedness and, for the purpose of securing such payment at the maturity of the same, shall be deposited with and held by such trust company, incorporated under the laws of this Commonwealth and doing business in the city of Boston, as may be approved by the board of commissioners of savings banks.

j. In the bonds of the Maine Central Railroad Company, known as the Consolidated Mortgage Bonds, notwithstanding the existence of a mortgage indebtedness not matured upon the whole or a part of the road of said railroad company: provided, however, that said bonds be issued in whole or in part to renew and refund said existing first mortgage indebtedness, and that an amount of such bonds equal at the par value to the amount of such existing mortgage indebtedness shall, by the terms of the mortgage securing the same, be made applicable exclusively to the payment of such existing mortgage indebtedness; and for the purpose of securing such payment at

the maturity of the same, said bonds shall be deposited with and held by such trust company, incorporated under the laws of this Commonwealth and doing business in the city of Boston, as may be approved by the board of commissioners of savings banks.

cl. 3.

k. In the note or notes of any citizen of this Common- P. §., 116, 20, wealth with a pledge as collateral of any of the aforesaid 1887, 196. securities at no more than the par value thereof.

1888, 213.

railroad stock.

7. In the note or notes of any citizen of this Common- Loans on wealth with a pledge as collateral, of shares of the capital 1887, 196. stock of any railroad company incorporated under the authority of any of the New England states and whose road is located wholly or in part therein and which is in possession of and operating its own road and has earned and paid regular dividends of not less than five per cent. per annum on all its issues of capital stock for five years next preceding the date of such note or notes, or any renewal thereof, and at no more than seventy-five per cent. of the market value thereof, such note or notes to be made payable on demand and to be paid or renewed within one year of the date thereof.*

cl. 3.

m. Street railway companies shall not be considered P. S., 116, 20, railroad companies within the meaning of this section.

Bonds of New England Rail1888, 301, § 6.

York and New

road Company.

Fourth. In the bonds of the New York and New England Railroad Company issued according to law, and for the payment of the principal and interest of which first mortgages, made as provided in chapter three hundred and one of the acts of the year eighteen hundred and eighty-eight are held as collateral security under an indenture of trust duly made and entered into for that purpose: provided, that the amount of the bonds so issued Proviso. shall not exceed the amount of the mortgages so held in trust, and that no one of said mortgages shall exceed in amount sixty per cent. of the value of the real estate thereby mortgaged; and no investment in said bonds shall be made by any such corporation except upon the report of not less than two members of the board of investment, who shall certify to the value of the premises *See page xxxiii for additional investments.

Bank stocks, deposits, etc. P. S., 116, 20, cl. 4

1890, 168.

151 Mass. 107.

covered by each of said mortgages, according to their best judgment, and such report shall be filed and preserved with the records of the corporation.

Fifth. In the stock of any bank incorporated under the laws of this Commonwealth, or in the stock of any 141 Mass. 522. banking association located in the New England states, and incorporated under the authority of the United States, or in the stock of any trust company incorporated under the laws of and doing business within this Commonwealth, as provided for in chapter four hundred and thirteen of the acts of the year eighteen hundred and eighty-eight, or of those trust companies incorporated as such by special charters granted under the laws of and doing business within this Commonwealth, whose special charters require them to provide the same security as prescribed in sections thirteen and fourteen of said chapter four hundred and thirteen, or in the notes of any citizen of this Commonwealth, with a pledge as collateral of any of the aforesaid securities at no more than eighty per cent. of the market value and not exceeding the par value thereof: provided, that no such corporation shall hold, both by way of investment and as security for loans, more than thirty-five per cent. of its deposits in the stock of such banks, associations or companies, and shall not so hold more than three per cent. of its deposits in, nor more than one hundred thousand dollars, nor more than one quarter part of the capital stock of, any one such bank, association or company; any such corporation may deposit not more than five per cent. of its deposits in any one such bank, association or company, but such deposit shall not exceed in amount twenty-five per cent. of the capital stock and surplus of such depositary.

Proviso.

Loans to depositors.

P. S., 116, 20, cl. 5.

Sixth. In loans upon the personal notes of the depositors of the corporation, but not exceeding one half of the amount of his deposit to a depositor; and in each such case the deposit and the book of the depositor shall be held by the corporation as collateral security for the payment of such loan.

securities.

cl. 6.

1884, 168.

1886, 69.

Seventh. If such deposits and income cannot be con- Personal veniently invested in the modes hereinbefore prescribed, P. S., 116, 20, not exceeding one third part thereof may be invested in bonds or other personal securities, payable and to be paid at a time not exceeding one year, with at least two sureties, if the principal and sureties are all citizens of this Commonwealth and resident therein: provided, that the total Proviso. liabilities to any such corporation, of any person, or of any partnership, company or corporation for money borrowed upon personal security, including in the liabilities of a partnership or company not incorporated the liabilities of the several members thereof, shall at no time exceed five per cent. of such deposits and income.

building and

site.

Eighth. Five per cent. of the deposits of any such cor- Corporation poration, but not exceeding two hundred thousand dollars, ie, 116, 20, may be invested in the purchase of a suitable site and the cl. 7. erection or preparation of a suitable building for the con- 11 Mass. 7. venient transaction of its business.

1893, 174.

149 Mass. 8.

acquired by

cl. 8.

Ninth. Any such corporation may hold real estate Real estate acquired by the foreclosure of any mortgage owned by it, foreclosure, etc. or by purchase at sales made under the provisions of any 18, 77 such mortgage or upon judgments for debts due it, or in 149 Mass. 4. settlements effected to secure such debts; but all such real estate shall be sold by it within five years after the title thereof is vested in the corporation: provided, however, Proviso. that the board of commissioners of savings banks may, upon the petition of the board of investment of any such corporation, and for good cause shown, grant an additional time for the sale of the same.

securities 28

remain valid.

cl. 9.

Tenth. The provisions of this act shall not be construed Pledges of to invalidate or in any manner impair the title of any cor- collateral to poration to any securities which have been or may be held P. 8., 116, 20, by it in pledge or as security for a loan or indebtedness; and the same shall be held for the purposes for which they were pledged; and nothing herein contained shall require any such corporation to change any of its investments made before the first day of October in the year eighteen hundred and seventy-six.

Investing

officers not to

borrow funds

corporation or

P. S., 116, 21.

1889, 161.
134 Mass. 179.

Not to receive

brokerage, etc.,

loan.

P. 8., 116, 22.

SECTION 22. No president, treasurer, member of a of committee or board of investment, or officer of such corporation charged with the duty of investing its funds, shall borrow or use any portion thereof, be surety for loans to others, or in any manner, directly or indirectly, be an obligor for money borrowed of the corporation; and if such member or officer becomes the owner of real estate upon which a mortgage is held by the corporation, his office shall become vacant at the expiration of sixty days thereafter, unless he has ceased to be the owner thereof, or has caused said mortgage to be discharged. Only one of the persons holding the offices of president, clerk, and treasurer shall at the same time be a member of the board of investment.

SECTION 23. No such corporation, nor any person acton account of ing in its behalf, shall negotiate, take or receive a fee, brokerage, commission, gift, or other consideration for or on account of a loan made by or on behalf of such corporation, other than appears on the face of the note or contract by which such loan purports to be made; but nothing herein contained shall apply to any reasonable charge for services in the examination of titles and preparation of conveyances to such corporation as security for its loans. Whoever violates a provision of this section shall be punished by fine of not less than one hundred nor more than one thousand dollars. All sums paid for services, fees, or otherwise to a member of the board of trustees shall be reported in detail at each regular meeting of the trustees.

Penalty.

Applications for loans, etc. P. S., 116, 23.

Guaranty fund

to be created and

maintained. P. 8, 116, 24.

134 Mass. 346. 148 Mass. 243. 149 Mass. 5, 169. 151 Mass. 104.

SECTION 24. All applications for loans shall be made in writing, through the treasurer of the corporation, who shall keep a record thereof, showing the date, name of applicant, amount asked for, and the security offered, and he shall cause the same to be presented to the board of investment.

DIVIDENDS AND PAYMENTS.

SECTION 25. Every such corporation shall, at the time of making each semi-annual dividend, reserve as a guaranty fund, from the net profits which have accumulated