is true and correct in all respects to the best of his knowledge and belief, and that the usual business of such corporation or banker has been transacted at the location required by this chapter, and not elsewhere. The superintendent shall serve a notice designating the day in each quarter when a report shall be made upon each bank, trust company and individual banker required to report to him by delivering the same to some officer or clerk thereof at their respective places of business or by depositing the same in the post-office inclosed in a post-paid wrapper and properly directed to each of them, or some officer thereof, at their places of business respectively.

(Former section 20; R. S., 1519, 1521, 1559, 1571, 1590; L. 1875, ch. 564, § 2; L. 1882, ch. 409, §§ 20, 28, 219, 270, 271, 272, 273, 274; L. 1898, ch. 333; L. 1905, ch. 297; L. 1908, ch. 123.)

See section 24.

1. The officers of a bank are liable to anybody injured by misrepresentation in the quarterly reports of the bank for his losses. Morse v. Switz, 19 How. Pr.

275.

2. The bank can be required to give a true statement of its condition as to its loans and discounts. A mere statement of totals is insufficient. The superintendent may require the bank to report "in a general way the largest loan to any one individual, firm or corporation also the aggregate loans upon paper made, accepted or indorsed by directors individually or as members of firms. People, etc., v. Vail, 57 How. Pr. 82.

3. An opinion by the attorney-general was filed in the banking department September 13, 1878, relative to certain new forms prepared under the direction of the superintendent of that department, for the quarterly reports from banks, banking associations and individual bankers, subject to the supervision of the superintendent and the provisions of law relating thereto. The opinion holds that the forms are not beyond the provision of the statutes, and that the facts required to be reported may properly be called for by the superintendent. The attorney-general further says: "The statute creating the banking department, and giving to its head supervisory and inquisitorial powers over moneyed corporations, is for the benefit of the public. It is a well-settled rule of construction, that a statute made pro bono publico shall be continued in such manner that it may, as far as possible, attain the end proposed. All statutes made for the convenience or benefit of the public ought to have a liberal construction, to be expounded largely, and not with restrictions. Before the banking department

was created it was made the duty of every moneyed corporation, annually on the first day of January, to make out and transmit to the comptroller, in the form prescribed by him, a full statement of its affairs, verified by the oaths of its president and cashier, or treasurer or secretary. By the act creating the banking department, that department is charged with the execution of all laws relating to banks and the business of banking, and the superintendent succeeded to all the powers and duties of the comptroller, and all existing laws were so modified and amended, that every power and duty conferred by them on the comptroller was

transferred to and conferred upon the superintendent.

Other and additional powers were also given to him. The quarterly reports required to be made to the superintendent by every incorporated bank, banking association or individual banker in this State, the statute declares, shall contain a true statement of the condition of the bank, banking association or individual banker making such report,' in respect to the following items and particulars, to wit: 'Loans and discounts, overdrafts due from banks, due from the directors of the bank or banking association making the report, due from brokers, real estate, specie, cash items, stocks and promissory notes, bills of solvent banks, bills of suspended banks, loss and expense account, capital, circulation (distinguishing that received from the superintendent from the outstanding bills, profits, amount due to banks, amount due to individuals and corporations other than banks, amount due to the treasurer of the State, amount due to the commissioners of the canal fund, amount due to depositors on demand, amount due not included under either of the above heads.' The object of these reports is to furnish the superintendent, who is the supervising representative of the State, with accurate and detailed information concerning the condition of the bank. The statute requires a true statement in respect to the various items and particulars enumerated. Manifestly the superintendent must determine how full and detailed the statement must be, to inform him satisfactorily of the condition of the bank. Mere general statements can give him no useful information. The statute contemplates a complete disclosure of its affairs on the part of the bank. The forms prescribed call for no more than seems essential to a thorough and necessary knowledge of the bank. I think, therefore, the superintendent has not exceeded his duties or powers, in the forms prescribed for the quarterly reports. This view is strengthened by a subsequent section, which makes it the duty of the superintendent, whenever in his opinion there shall be good cause to suspect that any bank, banking association or individual banker has made an incorrect or imperfect quarterly return, or is in an unsound or unsafe condition to do banking business, to cause an examination to be made forthwith into the books, papers and affairs of the institution, and to cause a report thereof to be forthwith published at the expense of the bank."

4. A bank has no right to discount paper at any other place than that of its location, and a note so discounted would be void. But it would seem that a note so discounted to pay a debt due from a third party would be valid. Potter v. Bank of Ithaca, 7 Hill, 530.

5. An individual banker, as far as his business is concerned, stands by law in the main upon the same footing as banking associations. His residence for the purpose of taxation of his capital is the place mentioned in the certificate required by Law of 1844, ch. 281, § 3, whether the banker has removed his residence or not, until after he has actually filed certificate of change and moved his bank. The statute does not intend to abridge a banker's right to live where he pleases, it only fixes his business residence. Miner v. Village of Fredonia, 27 N. Y. 155; cited Matter of Metcalf v. Messenger, 46 Barb. 329.

6. As to the prosecution of a suit by an individual banker in a name importing a corporate character, see Bank of Havana v. Magee, 20 N. Y. 355.

7. In an opinion of the attorney-general filed in the banking department July 19, 1888, the following ruling was made:

"I am firm in the conviction that foreign companies doing business within the

State and selling mortgages and guaranteeing the payment of the principal and interest thereon, are subject to the provisions of section 219 of chapter 409 of the Laws of 1882."

(Section 21.)

8. It is not necessary that a report be verified by the unqualified oath of the officers; an oath that the report is true " to the best of his knowledge and belief" is sufficient. Davenport v. Prentice, 126 App. Div. 451.

9. A bank cannot withhold a substantial portion of its earnings or surplus, nor can it fail to report the same under the form of report required by banking department.

To report a sum arbitrarily set apart as a "Guarantee Fund" as being an amount "Due on cashier's checks" would be an inaccurate statement of fact. There is no provision in the Banking Law for arbitrarily setting apart any such "Guarantee Fund." Section 21a of the Banking Law (old number) provides for a semi-annual examination of the affairs of a bank by a committee of the board of directors and authorizes the board of directors, as a result of such examination, to make such deductions from the assets or additions to the liabilities as conditions may warrant. This contemplates the charging off or marking down of bad loans or securities, the value of which has been impaired and does not give the directors authority to establish a fund for the purposes stated in your question.

If a bank failed to make the report prescribed by the superintendent, it becomes subject to the forfeitures specified in section 21, above referred to, or the superintendent, under the power vested in him under section 18, may issue his order directing the bank to furnish the report in the form required by him, and in the event of the failure of the bank to comply with such order the proceedings specified in section 18 may be resorted to.

The bank has no authority to change the form of report prescribed by the superintendent. In the event that the report failed to cover the facts as they actually existed, it would be competent for the bank to supplement the report by incorporating therein a statement of such facts. The item "Due on cashier's checks," of course, means the amount of such checks issued by the bank remaining outstanding and unpaid. Such an item is a liability of the bank and is so carried in the form of report prepared by the banking department. There being no provision for the setting aside of such a Guarantee Fund," such a fund can be properly required by the superintendent to be included in the surplus of the bank. Opinion Atty.-Gen., August 26, 1908.

66

10. The treasurer of a savings bank is the proper official to verify report. People v. Ostrander, 64 Hun, 335.

11. That an officer being prosecuted was not the proper officer to verify report is not a defense if he actually verified it. People v. Bowe, 34 Hun, 528; People v. Trumpbour, 64 Hun, 346.

§ 22. Penalties for failure to report. If any bank or trust company or individual banker shall fail to make such report within ten days from the day designated for the making thereof, or to include therein any matter required by the superintendent, or if any savings bank shall fail to make such report within the time required by this

chapter, or to include therein any matter required by the superintendent, every such delinquent bank, banker, savings bank or trust company shall forfeit to the people of the state the sum of one hundred dollars for every day that such report shall be delayed or withheld. and for every day that it shall fail to report any such omitted matter. Every other corporation subject to the provisions of this chapter which shall fail to make such report within the time herein required, or to include therein any matter required by the superintendent to be stated, shall forfeit to the people the sum of ten dollars for every day for which such report shall be delayed or withheld, and for every day that any such omitted matter may remain unreported.

The moneys forfeited by this section, when recovered, shall be paid into the state treasury to be used to defray the miscellaneous expenses of the department.

If any corporation or individual banker shall fail to make two successive reports as herein required, every such corporation shall forfeit its charter, and every such individual banker shall forfeit his privileges as such banker; and every such corporation or indıvidual banker may be proceeded against and the affairs of such corporation closed, and such individual banker be restrained from continuance in business, in the same manner as an insolvent corporation or individual banker may be proceeded against.

In case of the failure of any corporation or individual banker to make any report required by law, the superintendent shall immediately cause the books, papers and affairs of such corporation or banker to be examined as directed by section eight of this chapter.

(Former section 21; R. S., 1520, 1572, 1592, 1596; L. 1882, ch. 409, §§ 21, 22, 23, 274; L. 1887, ch. 556.)

§ 23. Books, papers and affairs to be examined. It shall be the duty of the board of directors of every bank and trust company in the months of April and October in each year to examine, or to cause a committee of at least three of its members to examine, fully into the books, papers and affairs of the bank or trust company of which they are directors, and particularly into the loans and discounts thereof, with the special view of ascertaining the value and security. thereof, and of the collateral security, if any, given in connection therewith, and into such other matters as the supreintendent of banks

may require. Such directors shall have power to employ such assistance in making such examination as they may deem necessary. Within ten days after the completion of each of such examinations a report in writing thereof, sworn to by the directors making the same, shall be made to the board of directors of such bank or trust company, be placed on file in said bank or trust company, and a duplicate thereof filed in the banking department. Such report shall particularly contain a statement of the assets and liabilities of the bank or trust company examined, as shown by the books of the bank or trust company, together with any deductions from the assets or additions. to liabilities, which such directors or committee, after such examination, may determine to make. It shall also contain a statement, in detail, of loans, if any, which in their opinion are worthless or doubtful, together with their reasons for so regarding them; also a statement of loans made on collateral security which in their opinion are insufficiently secured, giving in each case the amount of the loan, the name and market value of the collateral, if it has any market value, and, if not, a statement of that fact, and its actual value as nearly as possible. Such report shall also contain a statement of overdrafts, of the names and amounts of such as they consider worthless or doubtful, and a full statement of such other matters as affect the solvency and soundness of the institution. If the directors of any bank or trust company shall fail to make, or cause to be made, and file such report of examination in the manner, and within the time, specified, such bank or trust company shall forfeit to the people of the state on hundred dollars for every day such report shall be delayed, which penalty may be recovered through an action brought by the attorney-general against such bank or trust company, in the name of the people of the state of New York. The moneys forfeited by this section, when recovered, shall be paid into the state treasury, to be used to defray the expenses of the banking department.

(Former section 21a; R. S., 1520, 1572, 1592, 1596; L. 1875, ch. 564, § 6; L. 1882, ch. 409, §§ 21-23, 274; L. 1887, ch. 556, § 20; L. 1905, ch. 418; L. 1906, ch. 481.)

§ 24. Publication of reports. Within thirty days after any report required by section twenty-one of this chapter shall be made, the superintendent shall, with the exception of the reports made by sav