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three consecutive weeks in two newspapers of general circulation, one printed in Springfield, and one in the county seat of the county in which the company is located.

Trust companies which do a banking business are, as above stated, organized under the banking laws, and as to their banking departments are subject to the provisions of such laws.

(Starr & Curtiss' Annotated Statutes, 1896, chapter 32, sections 89-107. Act of May 7, 1897. Act of April 24, 1899.)

INDIANA.

Ten or more persons may incorporate a trust company. They shall file articles of association with the Secretary of State. The amount of capital shall be at least $100,000 in cities of over 50,000 inhabitants; at least $50,000 in cities of between 25,000 and 50,000 inhabitants, and at least $25,000 in cities of less than 25,000 inhabitants. Maximum limit, $2,000,000. The capital must be divided into shares of $100 each. Where it does not exceed $100,000 it must be fully paid. Stockholders are subject to double liability. The directors shall number not less than six. Each must own at least ten shares of stock, and a majority must be citizens of the State. Powers specified, to hold real estate and personal property such as is necessary for the convenient transaction of its business, for the use and occupation of officers and employees and for the safe-keeping of its assets, deposits and property held in trust, and such as is acquired in satisfaction of debts; trust property may be invested in real estate only if the instrument creating the trust so specifies; to hold real or personal property in trust, however received and from whatever source-whether courts, corporations or persons--upon trusts created in accordance with the laws of the State and of the United States; to execute trusts for married women in respect to their separate property, and to act as agent in the management of such property; to act as fiscal and transfer agent and registrar; to conduct a fidelity insurance business; to act as depository of the funds in charge of State, municipal or corporation officials or other officials or private persons; to act as trustee, assignee, receiver, administrator, executor, guardian of the person or estate of minors, guardian of the estate of lunatics, imbeciles, spendthifts, habitual drunkards or other persons disqualified or unable to manage their estates; courts are given authority to make such appointments, and no bond or security is necessary to enable a trust company to accept such appointments; to act as general agent and attorney in fact for public or private corporations or persons in the management of real estate and personal property; to receive, under specified conditions, trusts resigned by others; to receive savings deposits under the same regulations regarding repayment as savings banks; to invest deposits and trust funds at the discretion of the directors in such personal securities as are not hereinafter expressly prohibited, but special directions or agreements imposed by order

of court, will, contract, etc., must be followed. Trust companies are "forbidden" to "engage in any banking, mercantile, manufacturing or other business, except such as is hereby expressly authorized"; provided that promissory notes, etc., made negotiable by the laws of the State when payable at a bank shall also be negotiable if payable at a trust company. They shall not loan to directors, officers, agents, or employees, or allow them to become indebted to the company. Interest at not less than three per centum per annum shall be allowed on all trust funds of $100 or over remaining with the company uninvested for over six months. Such corporations are subject to the orders of courts committing trusts to them. Annual reports must be rendered to the Auditor of State, and the same must be published in a local newspaper. Corporations not organized under the provisions of this act are forbidden to use the word "trust" in their titles. Shares of trust company stock are to be assessed in the town or city where they are located, and taxed at the same rate as other property in the locality. Such companies must render to the local assessor, between March 1 and May 15 each year, a statement giving the number of shares and estimated cash value of same, less real estate or other tangible property at its assessed value. Foreign companies may operate after procuring a certificate of authority from the Auditor of State. Before such certificate is issued, certain statements and information must be filed with the Auditor, who must satisfy himself of the solvency and the safety of the company. Such corporation must deposit with the Auditor securities to the value of $25,000 to remain for one year; and thereafter must keep with the Auditor securities equal in value to the amount of its liabilities to citizens of the State. If the company becomes insolvent or fails to carry out its agreements, the Auditor shall revoke its authority to do business in the State and apply to the proper court for a receiver to take charge of the deposit above mentioned. Trust companies are under the supervision of the Board of Bank Examiners, who work under the direction of the Auditor of State. They are to be examined, thoroughly "as often as shall be necessary", no previous notice of the proposed examination being given. The fees for examination are paid by the companies as examined.

(Acts of March 4, 1893, p. 344, Acts of 1893; March 6, 1899, p. 503, Acts of 1899; March 7, 1901; Feb. 24, 1899; Feb. 27, 1899; March 11, 1901; chapter 148, Laws of 1903; Acts of 1905, p. 199; Acts of 1907, chapters 83, 182, 281.)

IOWA.

Trust companies are organized under the general incorporation laws. There is very little legislation regarding such companies. Loan and trust companies are authorized to receive time deposits and issue drafts on their depositories. Such companies, organized under the general incorporation laws, which were engaged in the banking business prior to January 1, 1886, and have continued therein since that date, may become

State banks. Trust companies are specifically made subject to the control of the State Bank Examiners, who are appointed by the Auditor of State. They must have a full-paid capital of not less than $10,000 in towns of less than 10,000 population, and not less than $50,000 in larger places. The banking law, which applies to trust companies, requires such institutions to make quarterly reports to the Auditor of State, who also has power to examine them at his discretion. The stockholders are subject to double liability.

(Code 1895, section 1889; Laws of 1904, chapter 85; Laws of 1906, chapter 81; Laws of 1907, chapter 92.)

KANSAS.

Trust companies are organized under the provisions of the general corporation laws, but governed and regulated by the provisions of the trust company law. Powers specified, to receive moneys in trust; minors may control their deposits; to do a safe deposit business; to "accept and execute all such trusts and to perform all such duties of every description as may be committed to them by" persons, corporations or courts; to hold real or personal property in trust; to execute and guarantee bonds required to be given by public officers or in proceedings in the courts, provided that the liability so incurred shall not be in a sum exceeding one-fourth of the paid-up capital; 40 per centum of the premiums must be set aside as a guaranty fund, specially invested; to act as agent for the investment of money; to act as transfer agent and registrar, assignee, receiver, trustee, depository, fiscal agent, bond trustee; “and generally to have and execute such powers as are usually had and exercised by trust companies"; to act as guardian or curator of any infant, insane or other person subject to guardianship; to act as executor, trustee under will, administrator; to conduct a fidelity insurance business and a title insurance business; to loan money on real or personal security; to execute and issue its notes, bonds or debentures under certain restrictions; to buy and sell municipal and corporate bonds and all kinds of stocks and securities; provided, that it shall not loan money upon or purchase its own stock unless to prevent loss upon a debt previously contracted, in which case it may not hold such stock longer than six months, and the same shall not be included in assets for longer than six months; "to receive deposits of money from any bank, Savings bank, trust company or from any public officer or board subject to check, or from any person, company, corporation or association upon time certificates of deposit"; to buy and sell foreign and domestic exchange, gold, silver, foreign coin or bullion; provided, that the total investment in bank stocks shall not exceed one-fourth the paid-up capital.

Trust companies must keep a reserve of twenty-five per centum of deposits subject to check, and ten per centum of time deposits, subject to the same rules as State banks, but part of the reserve may be in United States bonds or in loans secured by United States, State or municipal bonds, in lieu of deposits in banks. The capital must be not less than

$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

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