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in any manner they see proper; "to purchase and sell real estate and take charge of the same"; to become security for the faithful performance of duty in several cases specified and to become security for other purposes named in the statute; provided that before exercising any of the above-mentioned powers, such corporations shall have a paid-up capital of not less than $125,000. When acting in fiduciary capacities the capital of such companies shall be taken as the security required by law for the faithful performance of duty, and shall be absolutely liable in case of default. Persons holding fiduciary appointments may deposit the securities or other valuables for safe keeping with such companies. Courts making fiduciary appointments to such companies may have the companies examined. Trust funds and investments must be kept separate from the assets of the company, and investments made by the company as fiduciary must be so designated as to clearly show to what trust they belong. The powers of doing a safe deposit business and of acting as fiscal or transfer agent or registrar are given to all companies incorporated under the laws of the Commonwealth "which are by their charters authorized to act as trustees, receivers, assignees, guardians and committees." Such companies may increase their capital stock to an amount not exceeding $2,000,000.

Previous to 1873 trust companies in the State were incorporated by special acts of the Legislature, but the constitution of that year forbade such special charters in the future. No provision for the incorporation of such companies under general law was made until 1881.

Trust companies are under the supervision of the Commissioner of Banking. They must render to him not less than two reports each year, according to the form prescribed by him, and within five days (unless he extends the time) after the receipt of a request therefor from him. He may also call for special reports. Summaries of the reports must be published in a local newspaper at least three times. It is the duty of the Commissioner of Banking to examine such companies as often as he shall deem proper. If unsafe conditions are revealed, he must notify the Attorney-General, who shall institute proceedings for the appointment of a receiver; or, if the conditions seem to make it necessary, the Commissioner may appoint a temporary receiver. No director of such a company shall receive as a loan an amount greater than ten per centum of the paid capital and surplus; and the gross amount loaned to all officers and directors of such corporations, including concerns in which they are interested, shall not exceed twenty-five per centum of the paid capital and surplus. Such companies may not loan on their own stock; nor shall they purchase same, unless to prevent loss on a debt previously contracted in good faith, in which case the stock so purchased shall not be held for a longer period than six months, "if the same can be sold for what such stock cost the corporation." It is a misdemeanor punishable by a fine not exceeding $1,000 and imprisonment not exceeding two years, or both, for any director, officer or employee of a bank, trust company or

building and loan association to make a false statement or entry on the books or to subscribe to or exhibit same with intent to deceive, or to wilfully or knowingly subscribe to a false report. All such corporations must furnish a receipt in full, by pass-book or otherwise, for all moneys received as deposits or otherwise. The reports must set out in full the aggregate of these liabilities, which must not be concealed for any purpose. If the company borrows money the amount must be set out in full on the books and in all reports required by law. It is also illegal to conceal any assets. Violations of these provisions constitute a misdemeanor. For purposes of taxation, trust companies must render an annual report on or before June 20, stating the number of shares of the company outstanding, their actual value, etc.

The reserve requirements, which apply to all State banks, Savings banks and Trust Companies, are as follows: If the company receives deposits subject to or payable on demand, it must keep a reserve of 15 per centum of the aggregate of all immediate demand liabilities. If the company receives time deposits "payable at some future time", it must keep a reserve of 72 per centum of all time deposits. One-third of the reserve must be in cash; one-third may be in certain specified bonds; the balance may be on deposit in any bank or trust company in Pennsylvania approved by the Commissioner of Banking, or in companies in reserve cities in other States approved by him.

Trust companies may renew or extend their charters for a period of twenty years on complying with the provisions of the law of May 10, 1889.

(Laws of June 11, 1885, §§ 1, 2, 3; May 9, 1889, § 1; May 10, 1889, § 1; Feb. 11, 1895, §§ 1, 2, 7, 9; May 29, 1905; June 24, 1895, § 1, June 26, 1895; June 27, 1895, §§ 1, 2; May 29, 1901; June 14, 1901; April 21, 1903 [art. 162]; Acts of 1905, No. 131; Acts of 1907, Nos. 141, 150, 151, 512, 525. The Title Insurance Company laws are found in Pepper and Lewis's Digest, Vol. 3 [Supplement, 1894-97], chapter 12, §§ 90-109.)

RHODE ISLAND.

Trust companies in this State, which were formerly incorporated only by special act of the Legislature, may since May 26, 1908, be organized under the general banking law passed on that date, to which all trust companies in the State must conform. Fifteen or more persons, all of whom must be citizens of the State, may associate for the purpose of forming a trust company. The incorporation proceedings are detailed at length. No shares of stock may be issued until their par value has actually been paid in cash. Branches may be established after obtaining the consent of the Board of Bank Incorporation. None but regularly incorporated trust companies may use the words "trust company" in signs, titles, etc.

The powers specified, in addition to ordinary powers of corporations, are to receive and hold moneys in trust or on deposit; to allow interest on same; to make such loans and investments as are not prohibited by this act; to hold on deposit moneys or to receive and manage other property in charge of executors, administrators and other iduciaries, who are released from liability for funds or other property so deposited; to do a safe deposit business; to act as executor, administrator, custodian, conservator or guardian of any estate, giving bond in the same manner as individuals so acting, but surety on such bonds shall not be required except upon written demand of a person pecuniarily interested; to act as assignee, receiver; to accept trusts of every description committed to it by persons, corporations or courts; courts are authorized to appoint such a corporation as administrator, custodian, guardian (of the estate only) or conservator, except that they may not appoint it administrator or custodian upon the estate of a wife dying intestate unless upon petition of the husband; to be depositary of court funds.

Trust companies are required to deposit with the Treasurer of the State, in cash or in certain specified securities, an amount equal to twenty per centum of the capital as security additional to the capital for the faithful performance of trust duties. Substitutions of these securities may be made, and the income goes to the company depositing them. Banks and trust companies must maintain reserves of fifteen per centum of aggregate deposits, of which two-fifths must be in cash on hand. The balance may be on deposit with authorized reserve agents. These reserve requirements do not apply to the funds of the savings or "participation" department, if the company has complied with the law relative thereto, which requires that a guaranty fund equal to five per centum of the savings deposits be accumulated by setting aside fom oneeighth to one-fourth of one per centum of the net profits of the department each year. A separate savings department must be maintained, whose assets are not subject to other liabilities of the company until savings deposits have been paid. The investments permitted to this department are specified at great length, and include municipal bonds, certain steam and electric railroad bonds, certain bank stocks, loans secured by the foregoing, securities and notes of certain gas, water, electric light or power, telephone, railroad or street railway companies, real estate mortgages under certain limitations, and promissory notes under limitations.

Trust companies may not make loans for the repayment of which they are directly or contingently liable; or loans in excess of twenty per centum of the capital, surplus and profits, the repayment of which is undertaken severally, but not jointly, by two or more individuals, corporations, firms or other parties. Loans to one interest, bona fide discounts excepted, may not exceed ten per centum of the paid capital and surplus, nor in any event thirty per centum of the capital. Overdrafts by

officers or employees are forbidden, and loans to them must first be submitted in writing to, and be approved by, the directors or executive committee. The company may not loan on its own stock, or purchase same except to prevent loss on debts previously contracted in good faith, and stock so acquired shall be sold in one year. Minors may control their deposits. Joint accounts of two persons may be paid to either or to the survivor. Ninety days notice may be required for withdrawals on savings accounts. The deposits of a trust company may not exceed ten times the amount of the surplus and paid capital. A number of offences and crimes are made punishable by fine or imprisonment or both.

Trust companies are under the supervision of the Bank Commissioner, to whom they must make at least five reports each year, on his call. The information to be given is specified in detail, and is quite full. It includes trust funds. The Commissioner must examine each company at least twice in each year, and if it is connected with a National bank, must if possible, work simultaneously with the National bank examiner. (Laws of 1908, Chapter 1590, passed May 26, 1908.)

SOUTH CAROLINA.

Trust companies in this State are incorporated by special act of the Legislature, such special charters defining the powers and limitations of such corporations. They may also be incorporated under the Business Corporation Law. There are few general laws relating to trust companies, but they are governed by the banking laws, in part at least. Any banking corporation or trust company, with a bona fide capital of at least $25,000 actually paid in, if so authorized by its charter, may be appointed executor, administrator, receiver, assignee, guardian (of the estate only, not of the person), trustee for the care and management of property, "under the same circumstances, in the same manner, and subject to the same control by the court having jurisdiction of the same, as a legally qualified person." The capital and stockholders' liability are held as security for the faithful performance of duty, and no surety shall be required upon bonds filed by such company, except that the court making any of the above-mentioned appointments, save that of trustee, may, upon application of an interested person, require such additional security as the court considers proper. The State Bank Examiner is required to examine each company at least once a year, and also upon petition of stockholders representing one-fourth of the stock. The examiner must, without previous notice, call for at least four statements each year, and these statements must be published in local papers.

(Laws of 1903, No. 37; Laws of 1904, No. 215; Laws of 1906, No. 64).

SOUTH DAKOTA.

Five or more persons, of whom one-third must be residents of the State, may incorporate a trust company. The capital must be at least

$25,000 in towns of less than 10,000 inhabitants; at least $50,000 in cities of from 10,000 to 25,000, and at least $100,000 in larger cities. It must be divided into shares of $100 each, and must all be paid in before commencing business. The stockholders are subject to double liability. There must be at least five directors, each of whom must own five shares of stock, and a majority of whom must be residents of the State. The powers specified are to act as assignee or trustee by deed, executor, guardian or trustee by will, such appointments having the same force as in the appointment of natural persons; to act as receiver, assignee, guardian, conservator, executor, administrator or other trustee by appointment of court; the appointment as guardian or conservator shall be of the estate only, not of the person; to act as fiscal agent, transfer agent, registrar, trustee under bond issues; to execute trusts and powers "of whatever nature or description" not in conflict with the laws, received from persons, corporations, courts or other authority; to hold and manage in trust real or personal property; to act as agent for the investment of moneys in real or personal securities; to receive moneys and other property, real or personal in trust and to allow interest; to deal in stocks, bills of exchange, bonds, mortgages, notes and other securities; to loan on real or personal security; but the total loans may not exceed ten times the capital and surplus; to buy, sell, deal in and handle real estate, but the amount invested in real estate shall not exceed onehalf the paid capital, (this does not apply to trust funds or to real estate taken in satisfaction of debts, but real estate taken as last mentioned shall not be held more than two years); to receive money on deposit subject to check.

Before a dividend is declared, ten per centum of the net profits must be carried to surplus until the latter equals 30 per centum of the capital. Before undertaking any trust the company must execute a bond in favor of the State in a penal sum equal to the capital, signed by at least three securities, approved by and deposited with the Secretary of State; the latter has the discretion of accepting a surety company bond. No other bond shall be required of the company, except that a court may at its discretion require more security if the value of an estate to be committed to the company's care exceeds the capital and surplus by more than three times. No loans may be made on the company's own stock except to prevent loss upon debts previously contracted in good faith, in which case it must be sold within six months. The total liability to the company of any one party must not exceed 15 per centum of the capital and surplus, first mortgages on property worth double the amount loaned being excepted. Trust funds must be kept separate. The compensation received by the company must not exceed that allowed to natural persons for like services.

A reserve must be maintained, of 10 per centum of time and 25 per centum of demand deposits; on hand in cash or on deposit in solvent banks. The Public Examiner must call at least four reports each year, ac

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