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Trust companies are required to render to the Bank Commissioners, at their call at least three times a year, complete reports of condition as of a specified past day. Special reports may be called for by the Commissioners. They must examine each company at least once a year. Every company must obtain from the Commissioners a license to do business. The use of the word "trust" in titles is forbidden to other corporations. Trust companies are forbidden to make loans upon their own stock, or to purchase same, except to prevent loss upon debts previously contracted, in which case the stock must be sold within six months. The reserve required is twenty per centum of demand or immediate liabilities and of time certificates of deposit, if the company is located in a city of 200,000 or more inhabitants; or fifteen per centum if located elsewhere. One-half of the reserve may be on deposit subject to call in any solvent bank or trust company.

The term "trust company" is barely mentioned in the statutes; the act granting trust powers is entitled "An act authorizing certain corporations to act as executor and in other capacities," etc.

Foreign corporations, to do business in the State, must file with the Secretary of State and with the county clerk in the county in which their principal office in the State is located, a certified copy of their articles of incorporation or of their charters or of the statutes under which they were created. Such companies must in any case designate some person residing in the State upon whom process may be served.

(Civil Code, 1906, pp. 702, sqq. [This is the Act of April 6, 1891, as amended 1897, 424; 1903, 244; 1905, 232]; Civil Code, 1906, paragraphs 287, 2902, 583b; General Laws 1906, page 46, Act 296 [This is the act creating the Board of Bank Commissioners, passed 1903, 365, amended 1905, 304]; Laws 1905, chapter 259; Laws 1907, chapters 50, 75, 302, 453.)


Five or more persons may associate for incorporation as a trust company. They shall execute articles of incorporation as provided in section 2, chapter 19, General Statutes. One copy of these articles shall be filed with the Secretary of State, and one with the recorder of deeds in the county where the company is to do business. The capital, paid in full, in cash, must be at least $50,000 in cities of the second class, and at least $250,000 in cities of the first class. The number of directors must be three or more. Powers specified, to act as fiscal agent, registrar and transfer agent; to receive from persons, corporations or under order of court, deposits of money, securities or other personal property in trust or for investment or for safe keeping, subject to withdrawal on demand or on time certificates; to hold and accumulate same or pay interest thereon at not to exceed six per centum; to loan on real or personal security; to act as trustee under any mortgage or deed of trust or bond, “and to accept and execute any other trust" not inconsistent with the laws; to act

under order of court as guardian, receiver or trustee of the estate of any minor, the annual income of which is not less than $100, and to act as depositary of funds paid into court; to accept and execute any legal trusts regarding the handling of estates, real or personal, of living or deceased persons, confided to it by courts of record, persons, corporations or other authority, being accountable to all persons in interest for the faithful discharge of such trusts; to take and execute any trusts confided to it by courts of record and hold real or personal property in connection with such trusts; to purchase, invest in and sell stocks, bills of exchange, notes, bonds and mortgages and other securities, and to give receipts, certificates, bonds or obligations for same or for moneys borrowed; to act as executor, administrator, trustee under will, conservator or committee of the estate of lunatics, idiots, persons of unsound mind and habitual drunkards-courts being authorized to make such appointments; to conduct a safe-deposit business, a fidelity insurance business; "provided, that nothing herein shall authorize trust companies to engage in the business of banking except, in the event of being expressly authorized, except to the extent herein allowed and provided for." "That all corporations incorporated under this act may do or perform all acts and exercise all powers connected with, belonging to or necessary for the full and complete exercise and discharge of the rights, powers. and responsibilities hereinbefore granted, and all provisions of this act shall be liberally construed so as to accomplish the purposes and objects hereby proposed." A trust company may hold such real estate as is necessary to carry on its business.

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Courts appointing the company to trusts may make such orders and require such accounts as they might if the company were a natural person. The trustees or board of directors have discretionary power of investing trust funds in the stocks or bonds of the United States, any State, any incorporated city or county of the State duly authorized, "or in such real or personal securities as they may deem proper, but no trust company shall invest in the stocks or bonds of any private incorporated company." No loan shall be made, directly or indirectly, to any trustee, director or other officer of the company, and no loan on the stock of the company. Stockholders are subject to double liability. In handling court trusts the company is subject to the same responsibilities, has the same powers, and shall receive the same compensation as individuals holding similar trusts, except as herein otherwise provided. Trust funds and investments must be kept separate from the assets of the company and be so designated as to show to what trust they belong. Trust companies are under the supervision of the State Bank Commissioner, to whom they must make not less than three reports a year, according to a form prescribed by him. The reports must be called for a past day, the days selected to be the same as those named by the Comptroller of the Currency for the first, third and fifth calls for reports of National Banks. Special reports may be called. The Commissioner must examine each company

twice a year or oftener. The use of the words "trust" or "trust company" in titles is forbidden except to regularly incorporated trust companies.

(Mills Annotated Statutes 1904, paragraphs 544-5441, incl. Laws of 1907, chapters 111 [H. B. 161] 138 and 140. See Revised Statutes 1908, sections 296-314 incl., section 847, sections 315-352 incl.)


Trust companies are incorporated by special act of the Legislature. There are a number of general laws regulating the business of such corporations, most of them applying also to State banks and Savings banks. Trust funds, unless it is otherwise provided in the instrument creating the trust, may be invested in such securities as Savings banks are allowed to invest in. These are specified in great detail, and include United States bonds, certain State and municipal bonds, loans on certain collateral, notes of two or more persons resident in the State, stock of banks and trust companies in the State or in New York city or Boston, certain railroad bonds, mortgages on real estate worth at least double the amount loaned and situated in the State or in certain specified places, and deposits in banks or trust companies in the State or in New York, Massachusetts or Rhode Island. Trust companies maintaining savings departments are required to invest the deposits of such department separately according to the rules for investment for savings banks; such investments being exclusively for the protection of savings depositors until their claims are paid in full. Such deposits are also treated separately for purposes of taxation. Notwithstanding anything in their charters to the contrary, trust companies are now (1908) expressly forbidden to issue, sell or negotiate their own bonds or mortgage securities, etc., as investments, to guarantee same, or to engage in any form of insurance 'business; except that a company actually engaged in the business of a title insurance and guarantee company on January 1, 1907, may continue such business.

Trust companies may receive deposits of public moneys under certain restrictions, but not to an amount from one official of more than thirty per cent. of the paid-up capital, surplus and profits of the company. They must maintain a reserve fund of fifteen per centum of aggregate deposits, of which not less than four-fifteenths must be in legal tender on hand. One-fifth of the reserve may consist of certain approved railroad bonds and the rest may be on demand deposit with specified reserve agents. Loans may not be made on the stock of the company. Loans to one person, firm or corporation may not exceed ten per centum of paidin capital, surplus and profits, except that on collateral, with a margin of twenty per centum, such loans may not exceed twenty per centum of such capital, surplus and profits. Paper endorsed by officers or clerks of the company may not be discounted. Loans to parties out of the State may

not be made until the loans to residents amount to at least half the capital. Loans to directors may not exceed five per centum of capital, surplus and profits to any one, or twenty per centum to all together; but these provisions do not apply to loans on collateral with a margin of twenty per centum. Such loans on collateral to one director must not exceed ten per centum of capital, surplus and profits. The use of the word "trust" in signs or titles is forbidden except to regularly chartered trust companies. The statutes provide in detail for the issuance of a new savings pass-book when the old one is lost.

Trust companies are under the supervision of the Bank Commissioners, to whom they must render at least five reports each year, setting forth in detail such information as said commissioners may require. They are subject to examination semi-annually or oftener, the Bank Commissioners being required to examine each department of such companies. If the Treasurer of the trust company is also Cashier of a National bank, examinations must be made at the same time as the National bank examiner examines the National bank. If a trust company does a surety business, it is required to make annual reports with special reference to that business.

For purposes of taxation, trust companies must file statements with the tax commissioner annually during the first fifteen days of October, showing number of shares of stock, their market value, names and residences of stockholders and number of shares owned by each. In the February following, the company must pay to the State Treasurer a tax of one per centum on the market value of each share, less the amount of taxes paid on the company's real estate in the State, which is assessed in the taxing district in which it is located.

(Revised Statutes, 1902, sections 254, 1969, 3400, 3401, 3402, 3403, 3404, 3411, 3416, 3428, 3429, 3457, 3458, etc. Public Acts, 1903, chapters 167 and 204. Public Acts, 1905, chapters 54, 204, 207, 231. Public Acts, 1907, chapters 85, 86, 130, 180.)


Trust companies in this State are incorporated by special act of the Legislature. There are a few general laws regarding such corporations, most of them applying also to other financial corporations. They are under the supervision of the Insur surance Commissioner, to whom they must render not less than two reports each year, according to the form prescribed by him, within twenty days of receipt of request from him for such report. Such report must be published once in a local newspaper. The Commissioner has authority to examine trust companies at his discretion or on request of the company. If unsafe conditions are revealed, the commissioner may take temporary charge, and report to the AttorneyGeneral, who shall institute proceedings. If a trust company is authorized to act as surety or guarantor, it must file with the Insurance Com

missioner a copy of its charter, make to him an annual statement and pay an annual license fee of $100, and other lesser fees. Courts are authorized to appoint trust companies to offices of trust; and may in their discretion not require such corporations to give surety on bonds given for faithful performance of duty; but the capital, surplus and property of the company shall be liable. All liabilities and obligations arising out of any such trusts are "made liens upon its real estate prior and paramount to any other lien or incumbrance the said corporation may create or suffer respecting the same."

(Statutes, Vol. XXII, chapter 330, sections 1, 2, 4, 5, 7, 8, 9. Laws of 1903, chapter 330.)


Twenty-five or more persons may incorporate to do "a safe-deposit, trust, loan and mortgage business." They shall file an organization certificate with the Commissioners of the District. Notice of intention to organize must be printed in two newspapers in the District at least four times per week for three weeks. The charter, when granted, must be filed with the recorder of deeds for the District, and copies of both the organization certificate and the charter must be filed with the Comptroller of the Currency, under whose supervision trust companies operate. The Comptroller has over trust companies the same visitorial and examination powers that he has over National banks, and trust companies must report to him as the National banks do. They may not begin business until the capital stock is paid in full and the deposit of securities with the Comptroller, hereafter described, is made. Powers specified, to make contracts; to sue and be sued, implead and be impleaded in any court as fully as natural persons; to make and use a common seal; to loan money; "to accept and execute trusts of any and every description which may be committed or transferred to them"; to act as a receiver, assignee, executor, administrator, guardian of the estates of minors with the consent of the guardian of the person of such minor, and committee of the estates of lunatics and idiots; to accept deposits of money for the purposes herein designated; to act as fiscal and transfer agent and registrar; to issue its debenture bonds upon deeds of trust or mortgages of real estate under conditions specified. The courts of the District are authorized to appoint trust companies to act in fiduciary capacities. The capital stock, all property of the company and the liability of stockholders and officers are to be considered as the security required by law for the faithful performance of duties, and are absolutely liable in case of default. Trust companies must also make a deposit with the Comptroller of the Currency, in trust, either in money or in bonds, mortgages, deed of trust or other securities equal in actual value to one-fourth of the capital stock paid in. The Comptroller may from time to time require an additional deposit not exceeding in value one-half the paid-in capital stock. The company may hold real estate not exceeding in value $500,000, and in

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