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Treasurer of the company shall give a bond to the savings department in like manner as is required of the treasurers of savings banks. Trust companies are forbidden to commence business until they have satisfied the Bank Commissioners that their capital has been paid in in accordance with the provisions of their charters. The management of such companies shall consist of a board of trustees or directors elected annually, who must be sworn to the faithful discharge of their duties, and one of whom shall be elected President of the company. Such board shall elect an investment committee of not less than three of its members. The board must meet at least once each month, and receive the report of the investment committee. Each director must be the absolute owner of at least ten shares of stock; or of at least five shares if the capital stock does not exceed $50,000. A trust company may not "hire" money or give its note except on the duly recorded vote of the directors. The directors are required to make a semi-annual examination of the company, forward reports of such examinations to the Bank Commissioners, and publish copies of same in a local newspaper. For the record of loans and investments, trust companies must keep a separate book, with classifications as required by the Bank Commissioners, which book must be submitted to the Commissioners or the directors at each examination. The Treasurer of the company must report to the Bank Commissioners the condition of the company annually as of the last business day of June. Officers and employees are forbidden to receive any fee, present or benefit from borlowers as an inducement to make loans. Trust companies are forbidden to loan to one person, firm or corporation an amount in excess of ten per centum of their capital, or to hold, both by way of investment and security for loans, the stock and bonds of any corporation to an amount in excess of said ten per centum, or to make loans on their capital stock. (Laws of 1895, chapters 90, 92, 105 and 108; Laws of 1899, chapter 14; Public Statutes, chapter 65, $12, and chapters 162, 163 and 165, passim.; Laws of 1905, chapter 32.)

NEW JERSEY.

The laws of this State regarding trust companies were carefully revised in 1899, and the Trust Company Law of that year is quite elaborate. Seven or more persons "of full age" may incorporate a trust company. The name of the company must contain the word "trust", and no company incorporated under any other act may use such word in its title. The capital must be at least $100,000 fully paid, divided into shares of $100 each. More than one class of stock is forbidden. The proceedings for incorporation are specified in detail.

In addition to the usual corporate powers, such a company, "whether such powers are set forth in its charter or certificate of incorporation or not," shall have power: To act as fiscal or transfer agent, and in such capacity to receive and disburse money; to act as registrar; to act as

agent for corporations, foreign or domestic; to receive deposits of trust moneys, securities and other personal property; to loan on real or personal security; to hold such real estate as is necessary or convenient for the transaction of its business, or as its purposes may require, and such as is acquired in the settlement of debts due to it; to act as trustee under a mortgage or bond issue, "and to accept and execute any other municipal or corporate trust not inconsistent with the laws of this State;" to execute trusts for married women in respect to their separate property and to be their agent in the management of same; to act under appointment of court as guardian, receiver or trustee of the estate of any minor, and as depository of any moneys paid into court; to receive and execute court trusts; to manage estates; to receive and execute trusts of any nature or description confided to it by persons, bodies politic, corporations or other authority, and to hold any property or estate, real or personal, that may be the subject of any such trust; "to purchase, invest in and sell stocks, promissory notes, bills of exchange, bonds and mortgages and other securities", but "no corporation created under this act shall have power to discount commercial paper"; to give its bonds or obligations for moneys. or securities for moneys borrowed or received on deposit or for investment; to act as assignee or trustee under an assignment; to act as receiver or trustee; to act as executor, administrator or as committee of the estates of lunatics, idiots, persons of unsound mind and habitual drunkards; to do a safe deposit business, a title insurance business, a fidelity insurance business, and to become sole surety in cases where by law two or more sureties are required, provided such powers are enumerated in the certificate of incorporation; to collect coupons or interest on securities; to receive and manage any sinking fund; "generally to execute trusts of every description not inconsistent with the laws of this State or of the United States"; to receive money on deposit subject to check or otherwise.

Trust companies are forbidden to make loans upon bills, notes or other evidences of debt, except to a county, city, town, township, borough or municipality of this State, unless the same shall be secured by mortgage upon lands or by other securities, the actual market value of which other securities shall at all times exceed by at least ten per centum the amount loaned upon the same. Funds or property held in trust must not be mingled with the other funds or property of the com pany. Such a company may not be appointed to act as assignee, receiver, administrator, guardian or trustee by any surrogate or court of the State, until it has set apart a fund specially devoted to securing its liabilities in such capacities of trust and confidence, invested in securities of the character in which trust funds may by law be invested, and has deposited such securities with the register of the prerogative court. This fund must be equal to at least one-fifth the amount of the liabilities for which the fund is especially responsible, unless the fund equals or exceeds $100,000—in which case it must be equal to at least one-tenth of

such liabilities. However, the creation of this fund is not required when the trust company gives security in the manner prescribed by law in such behalf for natural persons, or in cases where the trust company shall have been appointed as executor or trustee by any will or deed. If the deposit be made, no other security shall be required.

A list of stockholders of record must be kept which must be open at all times during business hours to the inspection of any stockholder. The affairs of every trust company shall be managed by a board of not less than five directors, elected annually. A majority of the Board constitutes a quorum; provided that if the number of directors exceeds nine, they may designate nine members, of whom any five shall constitute a quorum. Each director must own at least five shares of stock, and is required to subscribe to and place on file an oath not to knowingly violate, or permit to be violated, the provisions of the trust company law. Before the directors may declare a dividend, one-tenth of the net profits must be carried to a surplus fund until such fund equals twenty per centum of the capital. The directors must appoint examining committees who must examine the affairs of the company every six months. No loans may be made to directors, officers or employees unless the proposition to make such loan shall have been submitted in writing to the directors or executive committee and regularly approved by a majority of those present constituting a quorum, nor shall such persons be permitted to become indebted to the company through an overdraft. At least two reports each year must be made to the Commissioner of Banking and Insurance, according to a form prescribed by him, and abstracts of such reports must be published once in a local newspaper. The Commissioner may call for special reports. No trust company shal! make loans on its own stock; or be a purchaser of same unless such purchase be necessary to prevent loss on a previously contracted debt; and stock so purchased must be disposed of within one year. Deposits made by minors are under their control.

Every trust company receiving deposits of money subject to check or payable on demand shall keep a reserve fund of fifteen per centum of all its immediate demand liabilities. One-fifth of this must consist of cash on hand: the balance may consist of deposits in "good, solvent banks or trust companies." Trust companies are subject to the inspection and supervision of the Commissioner of Banking and Insurance, who must examine them when he deems it expedient or at their request. If unsafe conditions are revealed, he may take immediate possession, notifying the Attorney-General, who shall institute such proceedings as are necessary. The capital of a trust company must be taxed in the taxing district where its office is situated, and its real estate where such real estate is situated. Trust companies are specially authorized to act as depositaries for the moneys of counties, cities and other municipalities. Trust companies may pay to either person moneys on a joint account, whether the other be living or not. It is a misdemeanor to circulate false reports regard

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 Auditor of the Territory.

If

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. 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

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