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plus and deposits may be made in mortgages, except in first mortgages on unincumbered real estate to an amount not greater than three-fifths of the cash value thereof, and not over two-fifths if the property be unimproved or unproductive. Not less than one-sixth of the amount of such mortgages shall be upon real estate in this State, and not more than eighty per centum of the assets shall be invested in mortgages; provided that not more than sixty per centum of such assets shall be invested in mortgages on real estate outside of this State. No mortgage investments may be made except on the written approval of three of the trustees or of the members of the board of investment. Five per centum of the deposits may be invested in a lot and building, and part of the premises may be rented for revenue. No loans or investments on personal security may be made except upon at least two approved names, not less than two of whom reside in the State or within fifty miles of the office of the company, or upon notes or accepted drafts from parties without the State for goods manufactured within the State and payable to parties in the State. Such loans may not be for more than one year. Not over onethird of the assets may be invested in personal securities. The statutes provide that, with the foregoing exceptions, deposits may be invested "only as follows"; then is given in much detail a list of securities, which include United States bonds, municipal bonds of specified States, National bank stocks in certain States and cities, banks and trust companies in Vermont, school district bonds in certain States, State bonds, and notes with any of the foregoing as collateral. But the company

shall not hold, either as investments or as collateral, more than ten per centum of the capital of any one bank, nor invest more than ten per centum of its deposits or more than $35,000 of its deposits in the stock of any one bank. And all such investments and loans may not exceed one-fourth of its deposits. It shall not loan to any one person, firm or corporation more than five per centum of its deposits, nor more than $30,000; nor shall such loans be greater than $10,000 until the deposits equal $1,000,000; after which the loans may be increased one per centum of the deposits in excess of $1,000,000. "But this section shall not apply to United States bonds or municipal bonds, or to notes with such bonds as collateral." No loans may be made to officers, directors or employees without the written consent of a majority of the directors, and then not to an amount greater than five per centum of the paid capital, bona fide discounts and loans on certain specified collateral excepted. The company may not loan on its own stock as collateral.

The stockholders are subject to double liability. Trust companies may deposit on calls with banks, banking associations or trust companies in Vermont, or in New York, Boston, Chicago, Albany, Philadelphia or Concord, N. H., or in any other legal designated depositary under the laws of the United States, or in National banks in St. Paul, Minneapolis and Kansas City, with or without interest, sums not exceeding in the aggregate twenty per centum of their assets. They may hold real estate

acquired by foreclosure or in settlement of debts due them; but such real estate must be sold as soon as a reasonable price can be obtained, and at any rate within five years; and the Inspector of Finance may at any time order the sale within ninety days of particular pieces of such real estate. The Inspector of Finance must examine such companies annually or oftener. If the Treasurer or a Cashier of a trust company is also an officer of a National bank, or if the latter is in the same office or building, the Inspector of Finance shall examine such trust company annually at the same time as the United States Examiner examines the National bank. If unsafe conditions are revealed, he shall proceed against the company as if it were insolvent. The powers and restrictions of all trust companies are enlarged or abridged to conform to this chapter, their charters to the contrary notwithstanding.

A trust company must pay to the State Treasurer in semi-annual instalments in February and August, a tax at the rate of seven-tenths of one per centum annually upon the average amount of its deposits, including money or securities received as trustee under order of court or otherwise, deducting therefrom the average amount, if any, of its capital and accumulations invested in United States bonds, and the amount, if any, of individual deposits in excess of $2,000 each, listed to the depositors in towns of this State where such depositors reside. No other taxes shall be assessed against deposits or depositors on account thereof, except on individual deposits exceeding in the aggregate $1,500.

Any trust company incorporated in this State may act as administrator, executor, receiver, assignee, trustee, guardian of any person, subject to guardianship, "under the same circumstances, in the same manner, and subject to the same control by the court having jurisdiction, as in the case of a natural person legally qualified." The capital, surplus and stockholders' liability are held as security for the faithful performance of duties of this character, and no surety shall be required upon bonds filed by the company, unless required by the court. Trust property and moneys must be kept separate from the assets of the company, and are not liable for its debts. In addition to the examinations above-mentioned, the Inspector of Finance may make such further examinations as he sees fit, and must make them when requested by the court having jurisdiction.

(Revised Statutes, 1894, §§ 4067-4131, passim; §§ 583 and 584. Acts 1896, Nos. 17 and 80; Acts 1900, Nos. 53 and 54; Acts 1902, No. 72; Acts 1904, Nos. 98 and 99; Acts 1905, No. 100; Acts 1906, Nos. 28, 128 and 129).

VIRGINIA.

Trust companies in this State are incorporated by special acts of the Legislature, the special charters so granted specifying their powers and limitations. There are very few general statutes relating to such companies, and these apply mainly to foreign companies. "No guaranty,

trust, indemnity, fidelity or other company, having for its purpose to become security for the faithful performance of any trust or to become fiduciary." shall do business in this State until it complies with this act. It must appoint and maintain an agent residing in Richmond, upon whom process can be served. Every foreign company must give bond to the Auditor of Public Accounts, with two or more sureties to be approved by him, in a sum not less than $1,000 nor more than $5,000, with conditions to make returns and pay taxes. Both foreign and domestic companies. shall deliver, under oath, to the Treasurer of State, a statement of the amount of the capital stock, and deposit with him bonds of the State of Virginia, or of the United States, or bonds of the cities of Richmond, Petersburg, Lynchburg, Norfolk, Portsmouth, Roanoke, Alexandria, Danville or Newport News, to an amount equal to five per centum of said capital, assigned to him in trust; but the cash values of same need not be greater than $25,000, and may not be less than $12,500. The company gets the income of these securities so long as it meets its trust obligations, and may substitute other similar securities from time to time. The resident agent of the company must deposit with the Auditor of Public Accounts a copy of the company's charter, a statement of its capital and manner of its investment, etc., and must annually render to him a statement which must be published in a Richmond newspaper. The auditor must annually examine these statements. He may also at any time examine into the affairs of "any company incorporated by, or doing business in, this State." If unsafe conditions are revealed, he may revoke the certificate of authority issued to the company, and publish such action.

(Code 1904, title 18, chapter 53, section 1286c, pages 646-651).

WASHINGTON.

Three or more persons may incorporate a trust company. The name of the company must contain the word "trust," and other corporations are forbidden to use the word in their titles. Capital required: $10,000 in towns of less than 1000 inhabitants; $15,000 in towns of from 1000 to 2000; $20,000 in towns of from 2000 to 3000; $25,000 in towns of from 3000 to 5000; $30,000 in cities of from 5000 to 10,000; $50,000 in cities of from 10,000 to 25,000; $75,000 in cities of from 25,000 to 50,000; $100,000 in larger cities. Existing companies may continue with capital required under the old law. At least 50 per centum of the capital must be paid in at the start and the balance at the rate of 10 per centum a month until fully paid. Stockholders are subject to double liability.

The holding of real estate is limited in practically the same way as that of National banks. Such as is not needed for the business may not be held as an asset over three years. Before declaring dividends, onetenth of the net profits must be carried to surplus until the latter equals

20 per centum of the capital. Checks may not be certified unless the necessary funds are on deposit. Trust companies must carry a reserve of 20 per centum of demand liabilities. Payment on joint accounts of not over $300 may be made to either party, whether the other is alive or not. In December of each year a report must be made of all deposits that have been unclaimed for ten years, unless the Secretary or Cashier knows the depositor to be living.

Powers specified: to act as fiscal or transfer agent or registrar, and as agent for any corporation, foreign or domestic, for any purpose required by statute or otherwise; to receive deposits of trust moneys, securities and other personal property from persons or corporations; to loan money on real or personal securities; to discount and negotiate promissory notes, drafts, bills of exchange and other evidences of debt; to buy, sell and exchange coin and bullion; to hold all real estate necessary for, and convenient in, the transaction of its business, or which the purposes of the corporation may require, and such as is required in satisfaction of debts due to it; to act as trustee under mortgages and bond issues, "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 act as agent in the management of same or in business relative thereto; to act as guardian, receiver or trustee of the estate of any minor, and as depositary of any moneys paid into court; to execute any legal trusts and powers regarding the management of any estate, real or personal, confided to it by any court of record, person, corporation, municipality or other authority, and to hold property that may be the subject of any such trust; to purchase, invest in and sell stocks, promissory notes, bills of exchange, bonds, debentures and mortgages and other securities; to issue its bonds. or obligations for money borrowed or received on deposit or for investment; to act as assignee or trustee under an assignment, or as receiver;. to act as executor, trustee under will, administrator, or guardian of the estate of lunatics, idiots, persons of unsound mind and habitual drunkards; to do a safe deposit business; to do a title insurance business, but. not if the company does a banking business; to collect income on securities as agent; to receive and manage a sinking fund for any corporation; "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, with or without interest.

The affairs of every such corporation shall be managed by a board of directors, not less than three in number, each of whom must own five shares of stock. Trust companies may not loan to their officers, stockholders or employees from trust funds, and any loans to them must first be approved by a majority of the directors and be entered on the records. Directors who knowingly permit a violation of this are individually liable for damages. Trust companies may not loan on the security of their own stock, nor purchase same except to prevent loss on a debt previously

contracted in good faith. They must make to the State Examiner not less than three reports each year, according to forms which may be prescribed by him; such reports to be rendered as of past day specified by the Examiner, which days shall correspond with those on which national bank statements are called for. An abstract of the reports must be published in a local newspaper. The Examiner may call for special reports at his discretion. Trust companies are subject to the inspection and supervision of the State Examiner, and it is his duty to examine them at least once a year without previous notice. If unsafe conditions are found, he must notify the Attorney-General, and may take immediate possession of the company pending the proceedings instituted by the Attorney-General, or until a receiver is appointed. Deposits made by minors and married women are subject to their control.

(Pierce's Washington Code 1905, $$7225-7225r, 7226-7226d. Laws of 1907, chapters 22, 37, 80, 126, 225. Corporation Laws, §§ 191-210.).

WEST VIRGINIA.

Trust companies are organized according to provisions of the general incorporation laws, and governed by the provisions of the “Title and Trust Company" law.

Powers specified: To do a title insurance business; to buy, sell, hold and guarantee bonds, stocks, loans and evidences of indebtedness, and to make and execute contracts and agreements required therefor; to engage in a general banking business, with all the incidental powers necessary thereto; as to such banking business, trust companies are subject to the banking laws, except that there shall be no limit to the maximum of paid-up capital that such companies may have; to do a safe deposit business; to act as trustee, assignee, receiver (general or special), guardian, executor, administrator, special commissioner, committee or curator; to execute trusts of every description not inconsistent with the constitution of this State or of the United States; to receive deposits of money or other personal property, and issue its obligations therefor; to invest its funds in and to purchase real and personal securities, and to loan money on real and personal securities; to act as fiscal or transfer agent or registrar; to purchase and sell or take charge of real estate for other persons, firms or corporations; for the purpose of indemnifying and saving harmless any company for making any loans, or accommodations, such company is authorized to receive and hold on deposit and in trust, as security, estates, real and personal, including the notes, bonds and obligations of States, counties or municipal corporations, individuals, firms or corporations, and the same to purchase, collect and adjust, settle and dispose of, in case of default upon any note or obligation for which such property has been received as indemnity, or as collateral security, without proceedings at law or in equity. Courts appointing such companies to trusts may, in their discretion, on the application of any persons interested, investigate the affairs of trust companies so ap

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