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addition such as it may acquire in satisfaction of debts. But real estate acquired under foreclosure or to secure debts may not be held longer than five years. Charters of such corporations may be made perpetual, or may be limited in time, subject to the approval of Congress. The capital must be at least one million dollars, half paid in, and all paid within one year. Taxes of one and one-half per centum per annum must be paid, in lieu of personal taxes. Stockholders are subject to double liability. The number of directors must be not less than nine nor more than thirty; all of them must be stockholders, and at least half of them citizens and residents of the District. The District Supreme Court has jurisdiction over trust companies in the requirement of statements, examinations, making of orders regarding trusts, etc. Similar corporations already organized may acquire the privileges of this act, and all such are subject to its provisions. Congress reserves the right to alter, amend or repeal the act. Trust companies, in common with all other banking institutions in the District, are required to make the same reports to the Comptroller of the Currency that National banks are required to make. These reports must be published in two or more daily papers of Washington, one of which must be a morning newspaper. The Comptroller may examine such companies at his discretion, or may take possession of them for the same reasons and in the same manner as in the case of National banks.
(Code of the District, sections 715-748. Act approved June 25, 1906. Included as sections 186-220, and section 224, in National Bank Act, edition 1907.)
There are no statutes regarding trust companies. Three or more persons may incorporate "for the transaction of any lawful business of a public or private character." (Revised Statutes, chapter 2, article 1, sec. 2122.) But banking corporations must have five or more incorporators, (section 2165). Foreign corporations may do business upon complying with certain provisions detailed in an act approved June 1, 1907. Chapter 4671 of Laws, approved June 1, 1899, authorizes solvent guarantee companies, surety companies, fidelity insurance companies and fidelity deposit companies to become surety upon the bonds of city, county and State officers.
Five or more persons may incorporate a trust company. They must file articles of incorporation with the Secretary of State. Before the filing of such articles, notice of intention to organize must be published once a week for at least four weeks in a local newspaper. Powers specified, those of ordinary corporations, and in addition, to act as fiscal and transfer agent and registrar; to receive deposits of moneys, securities and other personal property and to loan money on real or personal securities; to hold real estate such as is needed for the purposes of the corporation
and such as is acquired in settlement of debts due to it; to act as trustee under mortgages and bonds, and to accept and execute any other municipal or corporate trust not inconsistent with law; to execute trusts for married women in respect to their separate property, real or personal, and to act as agent in the management of same; to act under appointment of court as guardian, receiver or trustee of the estate of any minor, the annual income of which is $100 or more, and as depository of moneys paid inte court; to receive court trusts of all kinds; to receive in trust and manage property of all kinds committed to its care by persons, bodies politic or corporations; to purchase, invest in and sell stocks, bills of exchange, bonds and mortgages and to issue the obligations of the company for moneys or securities borrowed or received on deposit; to act as executor, administrator, or committee of the estates of lunatics, idiots, persons of unsound mind and habitual drunkards. Capital required, at least $100,000 paid in, and not to exceed $2,000,000, divided into shares of $100 each. The Board of Trustees may consist of not less than five nor more than fifteen persons. Trust companies may acquire and exercise all the rights and privileges and be subject to the same liabilities and restrictions as banks upon compliance with the banking laws. Savings banks, trust, security or guarantee companies already organized may acquire the powers here stated. All trust companies which receive deposits are under the jurisdiction of the State Bank Examiner and are subject to the same laws as banks. They must render at least four reports each year to the Examiner, upon his call. Such reports must give full statements of condition according to a prescribed form as of any past day specified by the Examiner, and must be published in a local paper within ten days. The Examiner must examine each company twice a year or oftener. The companies are required to keep an accurate list of the names and addresses of stockholders, and to send such lists to the Examiner on the first day of July of each year. Checks may not be certified unless the money for same is on deposit, and such checks must be charged at once.
(Acts of 1898, p. 78. Supplement to the Code, 1901, sections 64586466. Acts of 1907, No. 81.)
Trust companies are organized under the general laws, their powers and limitations being defined by special acts relating to such corporaticns. The corporate name must contain the word "trust". It must be organized for the specific purpose of doing business as a trust company, and such objects must be expressed in its articles of association. The capital must be at least $100,000, fully subscribed, and at least $50,000 must be paid in. No corporation not so organized may act in fiduciary capacities or use the words "trust" or "trustee" in its corporate name. Powers specified, in addition to ordinary corporate powers: To receive
and hold and reconvey and dispose of any property, real and personal, which may be committed to it upon any trust or trusts whatsoever, from any source, including married women and minors, individuals, corporations, courts; to act as agents or attorneys in the management of property; to act as transfer agent, registrar, agents for buying and selling securities, managers of sinking funds; to act as executor, administrator, trustee, receiver, assignee, guardian, by appointment by will or by court; to loan money upon real or collateral security; to issue notes and debentures and to pledge mortgages and other securities as collateral therefor; to do a safe deposit business; to hold such personal estate as is necessary; to lease, hold, purchase and convey real estate as its corporate property; to purchase, hold and sell stocks and bonds; to act as agents of insurance companies and security companies; to do a general trust and security business; "to transact as agents any other business or undertaking, trust, mercantile or otherwise which may be necessary, useful or convenient to the main purpose of the corporation". But "Nothing herein contained shall be construed as giving the right to issue bills to circulate as money or to discount commercial paper, or to do a general banking business, or to do a savings bank business.”
Any Circuit Judge may require of any trust company which has been appointed to act in any fiduciary capacity by Hawaiian courts, a bond in an amount not exceeding $50,000, conditioned for the faithful performance of duties arising from any such fiduciary appointment; and no further bond shall be required, unless the value of a single estate under its management is more than $50,000. Investment of trust funds are at the company's risk, unless they are such as the courts recognize as proper when made by an individual acting in like fiduciary capacity or are permitted by the instrument creating the trust.
Trust companies are under the supervision of the Treasurer or the Auditor of the Territory. They must render and publish statements in January and July of each year, according to a schedule prescribed in the statute. The Treasurer of the Territory may at any time and in his discretion deputize a competent person to examine any trust company; and must have such examination made at any time upon written request of six stockholders or depositors, provided they deposit funds to cover the cost of the examination.
(Laws of 1905, Acts 68 and 69; Laws of 1907, Act 76.)
Trust companies are organized under the provisions of the general incorporation laws. Five or more persons may incorporate. They must file articles of incorporation. The number of directors shall be not less than five, and each must own at least $500.00 par value of stock. Stockholders have the right of cumulative voting. Trust companies are governed by the provisions of chapter 92 of the Laws, as amended, which
relates to “trust, guarantee title, abstract and safety deposit companies." Powers specified, to do a title insurance business; to receive on deposit and in trust estates, both real and personal, and manage same; to act as trustee, assignee, receiver, guardian, executor, administrator and to accept and execute "trusts of every description not inconsistent with the laws"; to receive deposits of moneys and 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 same; to act as fiscal and transfer agent and registrar; to manage sinking funds; to hold and dispose of in any way it sees fit all such real property as may be the subject of insurance by the company; to purchase and sell real estate and take charge of same; to become security for the payment of damages assessed to be paid for lands taken in the building of a railway, for the opening of streets or roads, or for any purposes where land or property is authorized by law to be taken; to become security upon any writ of error or appeal, or in any proceeding instituted in any court in the State; to receive on deposit for safe keeping securities under the control of executors, administrators, etc.; to receive deposits of court funds; to do a regular banking business.
The capital required for trust companies since 1905 is as follows: In villages of less than 2000 inhabitants, $10,000; in towns of from 2000 to 3000, $20,000; in towns of from 3000 to 5000, $25,000; in cities of from 5000 to 10,000, $30,000; in cities of from 10,000 to 25,000, $50,000; in larger places, $100,000. Companies organized prior to 1905 are permitted to continue with the former required capital, $25,000. The capital is liable in case of default in the faithful discharge of trusts, and is to be taken as the security required by law. Courts making trust appointments may examine the officers of the company regarding the administration of the trusts. Stockholders are subject to double liability. The tenure of real estate is limited much like that of national banks. Before declaring dividends, one-tenth of the net profits must be carried to surplus until it equals 20 per centum of the capital. Loans to one party, except secured loans, may not exceed 50 per centum of the capital, surplus and undivided profits. The investments permitted include United States bonds; municipal bonds of Idaho and of other States which have not defaulted on interest for three years, but not more than 50 per centum of the assets may be invested in securities of any one State, county or municipality outside of Idaho; first mortgages upon property worth double the amount loaned upon them; real estate within specified limits; commercial paper under certain restrictions. The reserve required is 15 per centum, of which one-half may be on deposit with other banks or trust companies.
The banking departments of trust companies are specifically made subject to the regulations, examinations and reports required of all banking institutions. They are under the supervision of the State Bank Commissioner, who must examine them at least once a year, without previous
notice. The Commissioner must call for at least two reports a year, and may call for not to exceed three additional reports.
(Code 1901, chapter 92, sections 2332-2337; sections 2086 sqq.; Session Laws 1905, No. 167; Session Laws 1907, S. B. 93, page 545.)
Trust companies are incorporated under the general incorporation laws, but regulated by the provisions of the trust company law. If they wish to do both a banking and a trust business, they are organized as banks, and qualify under the trust company law. Powers authorized, assignee or trustee by deed; executor, guardian or trustee by will; trustee, assignee, receiver, guardian, conservator, executor or administrator by appointment of court; the appointment as guardian or conservator shall apply to the estate only, and not to the person; depository for persons holding fiduciary appointments. Such corporations are not required to give bond or security, but are responsible for investments and are further hable the same as natural persons in like positions. They are required to pay interest on all trust funds, at a rate fixed by contract or ordered by the court. Their compensation may not exceed that allowed to natural persons for like services. Before accepting trust appointments or deposits, each company located in a city of 100,000 or more inhabitants shall deposit with the Auditor of Public Accounts the sum of $200,000, and each company in towns or cities of less than 100,000 inhabitants shall deposit $50,000. Said deposits are for the benefit of creditors of the company, and shall consist of bonds of the United States or municipal bonds of this State or first mortgages on improved and productive real estate located in this State and worth at least twice the amount loaned thereon. If it appears to the Auditor that the value of the trust property held by any company exceeds ten times the amount of its deposit with the State, he must require such company to increase its deposit to $500,000 if located in a city of oyer 100,000 inhabitants or to $125,000 if in a smaller city or town. The deposit may be reduced to the original amount when the Auditor is satisfied that the value of the trust property held has been reduced below ten times the amount of such original deposit. Neither the deposits nor the loans of such a company shall at any time exceed ten times the amount of its paid-up capital and surplus.
Trust companies are required to file with the Auditor, during the month of January of each year, a statement of condition as of December 31 preceding. The information called for is detailed in the statute, and is very full. It includes a list and brief description of trusts held. The Auditor may at his discretion call for additional information, and for additional reports at any time. The Auditor must make an examination of each company annually, and may make examinations oftener if he thinks best. The annual statements, in condensed form, must be published by the Auditor at the expense of the companies, once a week for