cording to a form prescribed by him, as of past days. The reports must include a list and brief description of the trusts and of the amount of real and personal estate held under the same. Special reports may be called and all reports must be published in local papers. Each company must be examined at least once a year by the Public Examiner. Title insurance, surety and fidelity insurance companies are provided for by chapter 73, Acts of 1905.

(Laws of 1903, chapter 79 [this is 4204 and 4205 Grantham's Annotated Statutes 1901]. See also Annotated Statutes, paragraph 3812. The trust company law is found in chapter 74, Laws of 1905, as amended by chapter 109, Laws of 1907).

TENNESSEE.

Act 168 of the Acts of 1883 provides for the organization of banks, "said banks to be invested with authority, if the banking company or corporation so chooses, to couple with the ordinary business of banking a safe deposit and trust company." Such banks must have five or more directors. Their powers specified are: Ordinary banking; safe deposit business; to guarantee the payment of bonds and mortgages; to do a title insurance business, and "to accept and execute all trusts of every name and kind which may, with its consent, be imposed upon it by any person or corporation, whether the trust be that of guardian, executor, trustee, the committee of the estate of a non compos mentis, or any other trust, the said corporation being hereby invested with the power to act in such fiduciary capacity as fully as if the corporation were a person in being." Such corporation must be organized like other corporations, and must publish a statement in a local newspaper every six months. (Shannon's Code, 1896, §§ 2090-2105).

Chapter 44, Acts of 1901, provides that trust companies must, in July and January of each year, or within thirty days thereafter, publish in a newspaper in the county a statement of financial condition as of June 30 and December 31, respectively, next preceding. The form of this statement is to be determined by the Comptroller of the State.

Chapter 377, Acts of 1903, makes more detailed provisions regarding trust companies. Banks in counties of population from sixty to ninety thousand, organized for the purpose of conducting a savings, safe deposit and trust banking business, with a capital of $100,000 or more, "may be appointed to accept and execute trusts and agencies of any kind and character whatsoever", to which they may be appointed by persons, corporations, public or private, or executor, administrator, guardian (of estates only, not of persons) of infants, idiots, lunatics and other persons of unsound mind, receiver, commissioner, assignee or trustee for any person, firm, association, etc., attorney in fact or agent for the transaction of any business, management or sale of any property whatsoever, "in the same manner and to the same extent as natural persons." The capital of such companies shall be taken as the security for faithful per

formance of duty required by law, and no other security need be required, except in the discretion of the courts. Such corporations may act as depositaries for public funds and for funds in charge of persons acting in fiduciary capacities.

Trust funds must not be included in the assets of the company. They may be invested in bonds of the United States, of Tennessee and the other States, first mortgage bonds of any railroad, bonds of any county or municipal corporation, provided such bonds be worth par or more and have regularly paid dividends of not less than four per centum for the five years preceding, or in first mortgages on real estate appraised at least twice the amount loaned thereon, such mortgages to run for not more than ten years. The designation of an attorney in a will, and the right of heirs to select an attorney must be recognized. When acting as guardian, such company need render statements only every two years, instead of yearly, as is required of natural persons so acting. The fees which may be charged for services in certain fiduciary capacities are specified in the statute.

TEXAS.

Five or more persons may incorporate a "banking and trust company." Articles of agreement must be filed with the Secretary of State. The corporation may not continue more than fifty years.

To ex

The act authorizes the establishment of banks of deposit or of discount, or both, having trust powers. The powers specified are: ercise the powers of banks of deposit and discount; to act as fiscal agent of corporations, public and private; to act as transfer agent and registrar; to receive deposits of trust moneys, securities or other personal property; to loan money on real or personal securities; to hold such real estate as is needed in the transaction of the business, and such as is acquired in the satisfaction of debts due the company; but the latter may be retained not more than five years; to act as trustee under any mortgage or bond issue, "and accept and execute any other municipal or corporate trust not inconsistent with the laws of this State"; to accept trusts for married women with respect to their separate property, and to act as agents in the management of same; to act under the appointment of court as guardian, receiver or trustee of the estate of any minor, the annual income of which shall not be less than $100; to act as depository of any moneys paid into court; to execute any legal trusts regarding the management of estates real or personal, from whatever source the trust may be received; to manage estates; "to purchase, invest in, guarantee and sell stocks, bills of exchange, bonds and mortgages and other securities"; to issue its own bonds and obligations; to act as executor, as administrator, as guardian of any infant, insane person, idiot or habitual drunkard, or as trustee for any convict in the penitentiary, under appointment of court; to do a fidelity insurance business; "provided, this

act shall never be construed as authorizing the granting of a trust not lawful as between individuals."

The capital shall be not less than $50,000 nor more than $10,000,000. The affairs of the corporation shall be managed by a board of directors not less than five nor more than twenty-five in number; elected annually unless the number exceeds five, in which case they are to be divided into three classes so that each shall serve three years, one-third retiring each

year.

The office of Superintendent of Banking is filled by the Commissioner of Agriculture, Insurance, Statistics and History, who is authorized to employ clerks and examiners. It is his duty, either in person or by an examiner, to visit and examine every trust company in the State once per annum, and oftener when he thinks it necessary. The expense of such examinations is borne by the companies examined, according to a schedule of maximum charges outlined in the statute. Detailed provision for procedure to enforce the authority of the Superintendent of Banking is made in the statute. In case he finds a trust company to be in bad condition or to ignore his instructions, he must communicate the facts to the Attorney-General, who shall institute such proceedings as the nature of the case may require. In case of need, the Superintendent of Banking may take immediate charge of the company, pending the appointment of a Receiver. A trust company may place itself in the hands of the Superintendent of Banking by posting notice, and a voluntary general assignment is forbidden.

Reports to the Superintendent, in a form prescribed in the statute and by the Superintendent, must be made upon his call at least twice cach year, and oftener at his discretion. Such statements must be published in a local newspaper, and must be posted in the banking house.

Trust companies may not loan to any one individual, company or corporation an amount greater than twenty-five per centum of the capital stock; or of the capital stock and surplus if the latter is equal to or in excess of fifty per centum of the capital. The discount of bills of exchange drawn against actually existing values and the discount of paper upon the collateral security of warehouse receipts covering products in store under certain conditions, are not considered as money borrowed. Trust companies may not engage in trade or commerce. The directors may declare dividends, if earned, every six months or oftener, but must first set aside ten per centum of the net profits to a surplus fund, until the same amounts to fifty per centum of the capital.

Funds in the charge of trust companies may be invested in loans secured by real estate or other sufficient collateral security, in public bonds of the United States or of this State, in the bonds of any incorporated city or county or independent school district in this State. Such corporations may own only such real estate as is required for the transaction of their business, and such as is acquired in the collection of debts; but the latter may not be retained more than five years. Stockholders

are subject to double liability. The books and records of such corporations must be kept open for the inspection of all persons interested. Trust companies having a capital of at least $100,000, and making a deposit of $50,000 with the State Treasurer shall be permitted to qualify as guardian, curator, executor, etc., without giving bond as such. Such deposit shall consist of cash, Treasury notes of the United States, or Government, State, county, municipal or other bond or bonds, notes or debentures, secured by first mortgages or deeds of trust, or mortgages or deeds of trust, or unincumbered real estate in the State worth at least double the amount loaned thereon, or such other first-class securities as the Superintendent of Banking may approve. This deposit shall be primarily liable for the obligations of such company acting in fiduciary capacities, "and shall not be liable for any other debt or obligation of the company until all trust liabilities have been discharged."

Trust companies already in existence may avail themselves of the provisions of this act, provided that they thereby waive the powers granted by their charters and derive their sole powers under the terms of this act. Corporations not organized under this act are forbidden to use the words "trust" or "trust company" in their titles; except that corporations already organized and authorized to use such terms in their titles may retain same by using thereafter the words "without banking privileges." Foreign corporations, other than National banks, are forbidden to do a business of banking and discount in this State.

Every banking corporation is required to maintain a reserve of at least twenty-five per centum of the aggregate amount of its demand deposits, ten per centum of which is to be actual cash in the bank. The reserve fund or any part thereof may be kept on hand or on demand deposit in any bank or banking association in the State of Texas or in any bank, banking association or trust company in another State approved by the Superintendent of Banking and having a paid-up capital of $50,000 or more; but the deposits in any one bank or trust company shall not exceed twenty per centum of the total deposits, capital and surplus of said bank.

(Laws of First Called Session, 1905, chapter 10 [page 489]; Laws of 1907, chapter 37).

UTAH.

"Loan, trust and guaranty associations" may be incorporated by three or more persons in the same manner as other corporations for pecuniary profit; and are governed by the provisions of chapters 1 and 2, title 2, concerning corporations, except as in this chapter otherwise provided.

Powers specified: To do a title insurance business; to act as assignees, agents, receivers, guardians of the estates of minors and incompetent persons, to act as executors and administrators; "to execute trusts of every description not inconsistent with law"; to become sole security in cases where by law one or more sureties may be required; "to buy, sell

cr mortgage real estate or personal property, to loan money on real estate security or otherwise, to sell and assign mortgages and endorse negotiable instruments, and to make, execute and deliver bonds, promissory notes and bills of exchange"; to receive deposits of money; provided that, if such associations shall receive commercial or savings deposits, the liability of stockholders and the restrictions concerning the lending of its funds shall be the same as those for commercial or Savings banks respectively; to act as security for the faithful performance of any contract; to do a fidelity insurance business; but nothing in this chapter shall be construed as dispensing with the approval of such association as security by the court, officer or individual charged by law with the duty of approving such security. When acting under fiduciary appointments the capital of the corporation shall be held as security for the faithful performance of duty, and no bond for such purpose shall be required of it. The capital, paid up, must be at least $25,000, and in cities of the first class at least $100,000. The capital must be kept in money on hand, or on deposit in solvent banks, or invested in bonds of the United States or of this State, or of any county, municipality or school district thereof, or in first mortgages on real estate situated in Utah, worth at least twice the amount loaned thereon. Such corporations are under the same provisions regarding reports as banking corporations. They must make to the Secretary of State not less than four reports each year, according to the form prescribed by him, and on his call. The Secretary has power to call for special reports. If satisfied that a company is insolvent, the Secretary may, through the AttorneyGeneral, apply to the district court for the appointment of a receiver.

(Statutes, title 2, chapter 6, $$ 423-430; chapter 2, §§ 388-391; chapters 1 and 2, passim; Laws of 1905, chapter 75).

VERMONT.

Trust companies are incorporated only by special acts of the Legislature. The general laws regulating and restricting trust companies are quite numerous, most of them applying to Savings banks as well as trust companies, the two classes of institutions being placed under much the same regulations. The officers must be sworn to the faithful performance of their duties, and the amount of bond required of the Treasurer is specified in the statutes. Such companies must make an annual report as of June 30, to the Inspector of Finance. The items to be covered in the reports are set forth in the statutes, and are very full. When deposits are made in trust, the name and residence of the person for whom the deposit is made must be disclosed. Minors are entitled to control of deposits made by them. Provision is made for the report of all accounts inactive for ten years. In 1898, and every fifth year thereafter, the pass books must be called in and be verified and be examined by an outsider approved by the Inspector of Finance. No investment of the capital, sur