the premiums paid therefor may be paid by and shall be allowed to said corporation as a necessary disbursement. Id., § 111.

[Note. Revised from L. 1882, c. 409, § 254. (See Birdseye's R. S., 1st ed., p. 218.) The last paragraph is new. Otherwise without material change.] 112 Dividends, compensation and loans to trustees prohibited. No trustee of any such corporation shall have any interest, direct or indirect, in the gains or profits thereof, nor as such, directly or indirectly, receive any pay or emolument for his services, except as hereinafter provided; and no trustee or officer of any such corporation shall directly or indirectly, for himself or as an agent or partner of others, borrow any of its funds or deposits, or in any manner use the same except to make such current and necessary payments as are authorized by the board of trustees; nor shall any trustee or officer of any such corporation become an indorser or surety, or become in any manner an obligor, for moneys loaned by or borrowed of such corporation. Id., § 112.

[Note. Revised from L. 1882, c. 409, § 255. (See Birdseye's R. S., 1st ed., p. 218.) Without material change.]

79 N. Y. 16; 62 id. 614; 82 id. 65; 29 id. 146; 59 How. Pr. 316; 4 Edw. Ch. 165.

113 Repayment of deposits; regulations; limitation. The sums deposited with any savings bank, together with any dividends or interest credited thereto, shall be repaid to such depositors respectively, or to their legal representatives, after demand, in such manner and at such times, and after such previous notice, and under such regulations, as the board of trustees shall prescribe. Such regulations shall be posted in a conspicuous place in the room where the business of the corporation shall be transacted, and shall be printed in the pass-books or other evidences of deposit furnished by it, and shall be evidence between the corporation and the depositors holding the same, of the terms upon which the deposits therein acknowledged are made. Every such corporation may limit the aggregate amount which any one person or society may deposit to such sum as it may deem expedient to receive, and may, in its discretion, refuse to receive a deposit, and may also at any time return all or any part of any deposit. The aggregate amount of deposits to the credit of any individual at any time shall not exceed three thousand dollars, exclusive of deposits arising from judicial sales or trust funds or interest; and to the credit of any society or corporation at any time, shall not exceed five thousand dollars, exclusive of accrued interest, unless such deposit was made prior to May 17, 1875, or pursuant to an order of a court of record. Id., § 113.

[Note.-Revised from L. 1882, c. 409, §§ 257, 290; L. 1885, c. 477, and L. 1878, c. 347, § 2. (See Birdseye's R. S., 1st ed., pp. 219, 227, 235.) The word society," in the last sentence, is new. The former law allowed an order for deposit, as set forth in the last sentence, to be made also by a surrogate. It was also formerly provided that the limitation of individual deposits to $3,000 should not "be construed as prohibiting the crediting of interest on individual accounts, which may have reached the maximum limit, provided that thereafter no interest shall be allowed on such increase." This section seems to have changed the law in respect to the crediting of interest on interest, after the limit of $3,000 is reached.]

66 Hun, 538; 50 N. Y. St. R. 270; 101 N. Y. 58; 100 id. 51; 75 id. 134; 57 id. 418; 62 id. 12; 84 id. 677; 98 id. 661: 84 id. 83, rev'g 21 Hun, 235: 69 N. Y. 414, aff'g 2 Abb. N. C. 342; 92 N. Y. 7; s. c. 16 W. D. 374, rev'g 28 Hun, 375; s. c. 15 W. D. 524; 89 N. Y. 435, rev'g 62 How. Pr. 463; 23 Hun, 420; 36 id. 513; 38 id. 255; 44 id. 357; 2 Daly, 229; 9 id. 211, 507; 4 Abb. N. C. 215; 17 id. 82; 2 Redf. 251; 17 W. D. 138; 50 N. Y. Super. 454; 21 N. Y. Supp. 644-646.

114 Deposits of minors, and trust deposits. When any deposit shall be made by or in the name of any minor, the same shall be held for the exclusive right and benefit of such depositor, and free from the control or lien of all other persons, except creditors, and shall be paid, together with the dividends and interest thereon to the person in whose name the deposit shall have been made, and the receipt or acquittance of such minor shall be a valid and sufficient release and discharge for such deposit or any part thereof to the corporation.

When any deposit shall be made by any person in trust for another, and no other or further notice of the existence and terms of a legal and valid trust shall have been given in writing to the bank, in the event of the death of the trustee,

the same, or any part thereof, together with the dividends or interest thereon, may be paid to the person for whom the deposit was made. L. 1892, c. 689, § 114. [Note.- Revised from L. 1882, c. 409, § 258. (See Birdseye's R. S., 1st ed., p. 219.) The provisions governing a deposit by or in the name of a "female being or thereafter becoming a married woman" omitted; otherwise without material change.]

86 N. Y. 390; 91 id. 297; 75 id. 134, 142; 40 Hun, 298; 17 Abb. N. C. 78.

115 Wife witness against husband; claimants may be interpleaded. In all actions in any court of this state against any savings bank by a husband to recover for moneys deposited by his wife in her own name, or as her own money, the wife may be examined and testify as a witness in like manner as if she were an unmarried woman.

In all actions against any savings bank to recover for moneys on deposit therewith, if there be any person or persons, not parties to the action, who claim the same fund, the court in which the action is pending, may, on the pet tion of such savings bank, and upon eight days notice to the plaintiff and such claimants, make an order amending the proceedings in the action by making such claimants. parties defendant thereto; and the court shall thereupon proceed to determine the rights and interests of the several parties to the action in and to such funds. The funds on deposit which are the subject of the action may remain with such savings bank upon the same interest as other deposits of like amount to the credit of the action, until final judgment therein, and the same shall be paid by such savings bank in accordance with the order of the court; or the deposit in controversy may be paid into court to await the final determination of the action; and when so paid into court the corporation shall be stricken out as a party to any such action, and its liability for such deposit shall cease.

The costs in the acts referred to in this section shall in all cases be in the discretion of the court, and may be charged upon the fund affected by the action. The statutes limiting the time within which actions shall be commenced shall have no application to actions brought by depositors, their representatives or assigns, against savings banks for deposits made therein. Id., § 115.

[Note. Revised from L. 1882, c. 409, § 259. (See Birdseye's R. S., 1st ed., p. 219.) Without material change, except that in the second line of paragraph 2, the words "whether husband or wife," after persons," have been omitted.]

36 Hun, 200; 34 Abb. N. C. 244, n.; 23 id. 42; 69 N. Y. St. R. 784.

116 In what securities deposits may be invested. The trustees of any savings banks may invest the moneys deposited therein and the income derived therefrom only as follows:

1. In the stocks or bonds or interest-bearing notes or obligations of the United States, or those for which the faith of the United States is pledged to provide for the payment of the interest and principal, including the bonds of the District of Columbia.

2. In the stocks or bonds or interest-bearing obligations of this state, issued pursuant to the authority of any law of the state.

3. In the stocks or bonds or interest bearing obligations of any state of the United States which has not within ten years previous to making such investment by such corporation defaulted in the payment of any part of either principal or interest of any debt authorized by the legislature of any such state to be contracted; and in the bonds or interest bearing obligations of any state of the United States, issued in pursuance of the authority of the legislature of such state, which have, prior to the passage of this act, been issued for the funding or settlement of any previous obligation of such state theretofore in default, and on which said funding or settlement obligation there has been no default in the payment of either principal or interest since the issuance of such funded or settlement obligation, and provided the interest on such funded or settlement obligation has been paid regularly for a period of not less than ten years next preceding such investment.

4. In the stocks or bonds of any city, county, town or village, school district bonds and union free school district bonds issued for school purposes, or in the interest-bearing obligations of any city or county of this state, issued pursuant

to the authority of any law of the state for the payment of which the faith and credit of the municipality issuing them are pledged.

5. In the stocks or bonds of the following cities: Boston, Worcester, Cambridge, Lowell, Fall River and Springfield, in the state of Massachusetts; Saint Louis, in the state of Missouri; Cleveland, Cincinnati, and Toledo, in the state of Ohio; Detroit and Grand Rapids, in the state of Michigan; Providence, in the state of Rhode Island; New Haven and Hartford, in the state of Connecticut; Portland, in the state of Maine; Philadelphia, Pittsburgh, Alleghany, Reading and Scranton, in the state of Pennsylvania; Minneapolis and Saint Paul, in the state of Minnesota; Des Moines, in the state of Iowa; Milwaukee, in the state of Wisconsin; Louisville, in the state of Kentucky; Paterson, Trenton and Newark, in the state of New Jersey; Baltimore, in the state of Maryland. If at any time the indebtedness of any of said cities, less its water debt and sinking fund, shall exceed seven per centum of its valuation for purposes of taxation, its bonds and stocks shall thereafter, and until such indebtedness shall be reduced to seven per centum of the valuation for the purposes of taxation, cease to be an authorized investment for the moneys of savings banks, but the superintendent of the banking department may, in his discretion, requiring any savings bank to sell such bonds or stocks of said city, as may have been purchased prior to said increase of debt.

6. In bonds and mortgages on unincumbered real property situated in this state, worth at least twice the amount loaned thereon. Not more than sixtyfive per centum of the whole amount of deposits shall be so loaned or invested. If the loan is on unimproved and unproductive real property, the amount loaned thereon shall not be more than forty per centum of its actual value. No investment in any bond and mortgage shall be made by any savings bank, except upon the report of a committee of its trustees charged with the duty of investigating the same, who shall certify to the value of the premises mortgaged or to be mortgaged according to their best judgment, and such report shall be filed and preserved among the records of the corporation.

7. In real property subject to the provisions of the next section. Id., § 116; subd. 5, as am'd L. 1893, c. 440, L. 1895, c. 813, and L. 1896, c. 454.

[Note.- Revised from L. 1882, c. 409, § 260; L. 1887, c. 524; L. 1888, c. 373, and L. 1890, c. 525. (See Birdseye's R. S., 1st ed., p. 220.) The provisions of this section have been materially extended by the amendments made in 1893, 1895 and 1896.]

102 N. Y. 331, aff'g 32 Hun, 270; 79 N. Y. 437; 44 Hun, 142; 30 id. 638; 103 U. S. 99; 98 id. 621; 59 How. Pr. 303.

117 Limitation as to real property. Every such corporation may purchase, hold or convey real property only as follows:

1. A plot whereon is erected or may be erected a building or buildings requisite for the convenient transactions of its business, and from portions of which not required for its own use a revenue may be derived. The cost of such building or buildings and lot shall in no case exceed twenty-five per cent of the net surplus of the corporation, except by written permission of the superintendent of banks. The estimate of the cost of said building and lot, and the plans of the building to be erected shall first be submitted to the superintendent of banks for his approval, before the purchase of the lot is made or before the erection of the building is commenced.

2. Such as shall have been purchased by it at sales upon the foreclosure of mortgages owned by it, or on judgments or decrees obtained or rendered for debts due to it, or in settlements effected to secure such debts. All such real property 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 shall extend the time within which such sale shall be made.

Every such corporation may, with the approval in writing and under the seal of the superintendent of banks, change its location within the limits of any city or town wherein it may be established. In effecting such change of location such corporation owning a banking-house and lot, may purchase such additional

plot under the provisions of subdivision one of this section as the corporation may require; and such banking-house and lot previously owned and occupied shall be sold as provided in this subdivision concerning real property acquired in satisfaction of debts. L. 1892, c. 689, § 117, as am'd L. 1894, c. 178.

[Note. Revised from L. 1882, c. 409, § 263. (See Birdseye's R. S., 1st ed., p. 220.) The last sentence in subd. 1 was added in 1894, and the limit of the cost of the building changed from 50 per cent to 25 per cent of the net surplus; otherwise without material change.] 118 Available fund for current expenses; how loaned. The trustees of every such corporation shall as soon as practicable invest the moneys deposited with them in the securities authorized by this ar.icle; but for the purpose of meeting current payments and expenses in excess of the receipts, there may be kept an available fund not exceeding ten per centum of the whole amount of deposits with such corporation, on hand or deposit in any bank in this state organized under any law of this state or of the United States, or with any trust company incorporated by any law of the state; but the sum so deposited in any one bank or trust company shall not exceed twenty-five per centum of the paid-up capital and surplus of any such bank or company; or such available fund, or any part thereof, may be loaned upon pledge of the securities or any of them named in subdivisions one, two, three and four of the preceding section but one, but not in excess of ninety per centum of the cash market value of such securities so pledged. Should any of the securities so held in pledge depreciate in value, after making any loan thereon, the trustees shall require the immediate payment of such loan or of a part thereof, or additional security therefor, so that the amount loaned shall at no time exceed ninety per centum of the market value of the securities pledged for the same. Id., § 118.

[Note.- Revised from L. 1882, c. 409, § 261, and L. 1886, c. 569. (See Birdseye's R. S., 1st ed., p. 220.) Without material change.]

142 N. Y. 590; 55 N. Y. St. R. 914; 104 N. Y. 532; 44 N. Y. Super. 248; 82 Hun, 275; 26 N. Y. Supp. 200.

119 Temporary deposits. Every such corporation may also deposit temporarily in the banks or trust companies specified in the last section the excess of current daily receipts over the payments, until such time as the same can be judiciously invested in the securities required by this article. Whenever it shall appear to the superintendent of banks that the trustees of any such corporation are violating the spirit and intent of this provision by keeping permanently uninvested all or an undue proportion of the moneys received by them, he shall report the facts to the attorney-general, who shall proceed against such corporation in the manner provided in section eighty-two of this chapter. Id., § 119. [Note.-Revised from L. 1882, c. 409, § 262. (See Birdseye's R. S., 1st ed., p. 220.) The reference to § 82, in the last sentence, is probably an error. The former law directed proceedings under L. 1882, c. 409, § 278, which has been revised in § 127, post, and it was to § 127 that it was probably intended to refer.]

120 Personal security prohibited; loans on bond and mortgage. The trustees of any savings bank shall not loan the moneys deposited with them or any part thereof, upon notes, bills of exchange, drafts or any other personal securities whatever. In all cases of loans upon real property, a sufficient bond secured by a mortgage thereon, shall be required of the borrower, and all the expenses of searchers,* examinations and certificates of title or appraisal of value, and of drawing, perfecting and recording papers, shall be paid by the borrower. Id., § 120.

[Note.-Revised from L. 1882, c. 409, § 264. (See Birdseye's R. S., 1st ed., p. 221.) Without material change.]

121 Mortgaged property to be insured. Whenever buildings are included in the valuation of any real property 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 directors shall direct, and the policy of insurance shall be duly assigned, or the loss made payable as its interest may appear, to such corporation; and any such corporation may renew such policy of in urance in the same or

* So in the original.

any other company or companies as they may elect, from year to year, or for a longer or shorter term, in case the mortgagor shall neglect to do so, and may charge the amount paid to the mortgagor. All the necessary charges and expenses paid by such corporation for such renewal or renewals shall be paid by the mortgagor to the corporation, and shall be a lien upon the property mortgaged, recoverable with interest from the time of payment as part of the moneys secured to be paid by the mortgage. Id., § 121.

[Note.-Revised from L. 1882. c. 409, § 265. (See Birdseye's R. S., 1st ed., p. 221.) Without material change.]

122 Restrictions on methods of doing business. No savings banks shall directly or indirectly deal or trade in real property in any other case or for any other purpose than is authorized by this article, or deal or trade in any goods, wares, merchandise or commodities whatever, except as authorized by this article, and except such personal property as may be necessary in the transaction of its business; nor shall any savings bank or any officer thereof in his regular attendance upon the business of the bank, in any manner buy or sell exchange, or gold or silver, or collect or protest promissory notes or time bills of exchange; but savings banks may sell gold or silver received in payment of interest or principal of obligations owned by them, or from depositors in the regular course of business, and may pay regular depositors when requested by them by draft upon deposits to the credit of the bank in the city of New York, and charge current rates of exchange for such drafts.

No savings bank shall make or issue any certificate of deposit payable either on demand or at a fixed day, or pay any interest except regular quarterly or semiannual dividends upon any deposits or balances, or pay any interest or deposit, or portion of a deposit, or any check drawn upon itself by a depositor unless the pass-book of the depositor be produced, and the proper entry be made therein at the time of the transaction.

The board of trustees may, by their by-laws, provide for making payments in cases of loss of pass-book, or other exceptional cases where the pass-book can not be produced without loss or serious inconvenience to depositors, the right to made such payments to cease when so directed by the superintendent of banks, upon his being satisfied that such right is being improperly exercised by any savings bank; but payments may be made upon the judgment or order of a court or the power of attorney of a depositor. Id., § 122.

[Note. Revised from L. 1882, c. 409, § 266. (See Birdseye's R. S., 1st ed., p. 221.) Without material change.]

96 U. S. 388; 80 N. Y. 98.

123 Rate of interest; extra dividends. The trustees of every such corporation shall regulate the rate of interest or dividends not to exceed five per centum per annum upon the deposits therewith, in such manner that depositors shall receive as nearly as may be, all the profits of such corporation, after deducting necessary expenses and reserving such amounts as the trustees may deem expedient as a surplus fund for the security of the depositors, which to the amount of fifteen per cent of its deposits, the trustees of any such corporation may gradually accumulate and hold, to meet any contingency or loss in its business from the depreciation of its securities or otherwise. The trustees may classify their depositors according to the character, amount and duration of their dealings with the corporation, and regulate the interest or dividends allowed in such manner that each depositor shall receive the same ratable portion of interest or dividends as all others of his class.

The trustees of any such corporation shall not declare or allow interest on any deposit for a longer period than the same has been deposited, except that deposits nade not later than the tenth day of the month, commencing any semi-annual interest period, or the third day of any month, or withdrawn upon one of the last three days of the month, ending any quarterly or semi-annual interest period, may have interest declared upon them for the whole of the period or month when so deposited or withdrawn.

So in the original.