however, that the written approval of the superintendent of banks must be obtained for each branch so opened and maintained, which written approval may be given or withheld in his discretion. Every safe deposit company shall forfeit to the people of the state the sum of one thousand dollars for every week during which any branch office shall be maintained without such written approval.

(Former section 210; R. S., 1604; L. 1875, ch. 613, §§ 1, 2; L. 1877, ch. 10; L. 1883, ch. 273.)

See section 18, ante; Stock Corporation Law, §§ 8, 50, 52, 53, 55, 62-64; General Corporation Law, §§ 37-41.

1. A safe of the Mercantile Trust Company, and a tin box containing property and securities of the defendant on deposit, are not within the protection which the law affords to a debtor's dwelling-house against an officer acting under civil process, such safe and box are simply places of deposit and safe-keeping which a sheriff may enter to make the seizure required by law in the execution of a process, otherwise "there would be nothing to prevent a failing or insolvent debtor from turning all his property into valuable securities, or other articles requiring but little space for their custody, and then placing them in the hands of a safe deposit company for protection, and defy all the efforts of his creditors to satisfy their debts by resorting to them." DANIELS, J. United States v. Graff, 67 Barb. 310; mem. of same case, 4 Hun, 634.

2. After the property of a customer of a safe-deposit company has been taken into the possession of the officers of the law, the company is under no obligation to resist the execution of a search warrant. It is the duty of the owner of the property to begin legal proceedings, for the recovery of the same. The company is not responsible for the loss or misappropriation of the property. Citing Jones

v. Morgan, 90 N. Y. 4, 43 Am. Rep. 131; Bell v. Clapp, 10 Johns. R. 263; United States v. Graff, 67 Barb. 526; Day v. Bach, 87 N. Y. 56; Whitaker v. Merrill, 28 Barb. 526; Stamford Steamboat Co. v. Gibbons, 9 Wend. 327. Roberts v. Stuyvesant Safe Deposit Co., 1887, 3 N. Y. State Rep. 507; but see same case reversed 123 N. Y. 57.

A State deposit and savings institution created by chapter 816, Laws of 1868, "had no power under its charter to loan money on personal security, and was forbidden by the Restraining Act from engaging in the business of discounting notes and other commercial paper, and could not enforce notes discounted in violation of the act." ANDREWS, J. Pratt v. Eaton, 79 N. Y. 452; In re Jaycox, 12 Blatchf. C. Ct. 209, Fed. Cas. No. 7,237, 13 id. 70, Fed. Cas. No. 7,238.

301. Directors. The affairs of every such corporation shall be managed by not less than five nor more than thirteen directors, who shall be stockholders and a majority of whom shall be citizens of this state, and who shall, except for the first year, be annually elected by the stockholders at such time and place as shall be prescribed in the by-laws of the corporation. Notice of the time and place of holding such election shall be published not less than ten days pre

vious thereto in a newspaper in the town or city in which the operations of such corporation shall be carried on, and the election shall be made by such of the stockholders as shall attend for that purpose either in person or by proxy.

(Former section 21; R. S., 1605; L. 1875, ch. 613, § 3; L. 1883, ch. 338.) See General Corporation Law, § 23-32, 34; Stock Corporation Law, §§ 26-29, 51; Penal Law, §§ 297, 664, 665, 668.

§ 302. Officers and by-laws. There shall be a president of the corporation to be designated from the directors, and such subordinate officers as the corporation by its by-laws may designate, who may be elected or appointed, and required to give such security for the faithful performance of the duties of their offices as the corporation by its by-laws may require. The directors may make such by-laws as they shall deem proper for the management, disposition of the stock, property and business affairs of the corporation, not inconsistent with law, and prescribing the duties of the officers and persons employed by it, the manner of the appointment and election of all officers, and for carrying on all kinds of business within the objects and purposes of the corporation.

(Former section 212; R. S., 1605; L. 1875, ch. 613.

See General Corporation Law, § 11; Stock Corporation Law, § 30; Penal Law, 88 664,065.

§ 303. Liability of stockholders. The stockholders of every such corporation shall be jointly and severally liable for all debts that may be due and owing by it to an amount equal to the par value of their stock in such corporation over and above such stock, to be recovered of the stockholders who were such when the debt was contracted or the loss or damage sustained, or of any subsequent stockholder. Any stockholder who may have paid any demand against such corporation, either voluntarily or by compulsion, shall have a right to resort to the rest of the stockholders who are liable to contribution; and the dissolution of the corporation shall not release or affect the liability of any stockholder incurred before dissolution. (Former section 213; R. S., 1606; L. 1875, ch. 613, § 9.) See Stock Corporation Law, §§ 56-59.

§ 304. Remedy for non-payment of rent for safe.

If the amount

due for the use of any safe or box in the vaults of any such corpora

tion shall not have been paid for three years, it may, at the expiration thereof, cause to be sent to the person in whose name such safe or box stands on its books a notice in writing in a securely closed post-paid registered letter, directed to such person at his post-office address as recorded upon the books of the corporation, notifying such person that if the amount then due for the use of such safe or box is not paid within sixty days from the date of such notice, the corporation. will then cause such safe or box to be opened in the presence of its president or secretary or treasurer, and of a notary public not an officer or in the employ of the corporation, and the contents thereof, if any, to be sealed up by such notary public in a package, upon which such notary public shall distinctly mark the name and address of the person in whose name such safe or box stands upon the books of the corporation, and the estimated value thereof; and the package so sealed and addressed, when marked for identification by such notary public, will be placed by such notary public in one of the general safes or boxes of the corporation.

Upon the expiration of sixty days from the date of mailing such notice as aforesaid, and the failure of the person in whose name such safe or box stands on the books of the corporation to pay the amount due for the use thereof in full up to the date of such notice, the corporation may in the presence of a notary public and of its president or secretary or treasurer, cause such safe or box to be opened, and the contents thereof, if any, to be removed and sealed up by such notary public in a package, upon which such notary public shall distinctly mark its estimated value and the name of the person in whose name such safe or box stood on the books of the corporation, and when such package has been marked for identification by such notary public, it shall, in the presence of the president or secretary or treas urer of the corporation, be placed by such notary public in one of the general safes or boxes of the corporation, and the proceedings of such notary public shall be fully set out by him in his own proper handwriting and under his official seal, in a book to be kept by the corporation for that purpose.

(Former section 214; R. S., 1607; L. 1875, ch. 613, § 15; L. 188§, ch. 498.)

ARTICLE 10.

PERSONAL LOAN ASSOCIATIONS.

SECTION 310. Organization; how effected.

311. Supervision; bond and reports required; examinations; expenses; proceedings for violation of law.

312. Powers; rate of interest or discount.

313. Dividends limited.

314. Prohibitions.

§ 310. Organization; how effected. In any county of this state containing or which is contained in an incorporated city, except in the counties of Monroe and Westchester, any five or more persons may organize and become a corporation, for the purpose of aiding such persons as shall be deemed in need of pecuniary assistance, by loans of money at interest, not exceeding two hundred dollars to any one person, upon a pledge or mortgage of personal property, by making, signing, acknowledging and filing a certificate, in the form prescribed by the business corporations law. Before transacting any business the said corporation shall execute and file a bond in an amount equal to one-tenth of its capital stock, but not less than the sum of five thousand dollars, with the superintendent of banks, to be approved by him for the faithful observance of all general provisions of law regulating business corporations within the state of New York, and of the provisions of this article. Said bond shall be executed by a domestic or foreign corporation authorized by the superintendent of insurance to transact within the state the business of surety insurance as surety. At the time of filing such bond such corporation shall also file with the superintendent of banks a certified copy of its certificate of incorporation. Upon the filing of such certified copy of the certificate of incorporation, and the filing and approval of the bond hereinbefore provided for, the superintendent of banks shall issue to the corporation a license to transact business under this article, which license shall terminate on the thirty-first day of March in the following calendar year.

(L. 1895, ch. 326, 706; L. 1896, ch. 206; L. 1902, ch. 78; L. 1905, ch. 333.) See section 180, ante.

§ 311. Supervision; bond and reports required; examinations; expenses; proceedings for violation of law. Said bond shall be renewed and refiled annually, in January of each year, and shall be approved by the superintendent of banks, and a new license issued on or before the first day of March; or the corporation shall, within thirty days thereafter, cease doing business and proceedings for a dissolution shall be instituted by the attorney-general at the request of said superintendent. Every such corporation shall also in January of each year make a report for the previous calendar year to the superintendent of banks, giving such information as he shall require, which report shall be verified by the oath of the president or secretary; and it shall make such other and further reports, under the like oath, as the said superintendent shall demand at any time. The superintendent of banks shall cause every such corporation to be examined at least once in each year, and may cause it to be examined as often as he deems it necessary; and the examiners appointed by him shall be given free access to all books, papers, securities and other sources of information in respect to the said corporation; for which examination a reasonable charge shall be imposed by the superintendent and paid by the said corporation within twenty days after notice of the charge shall have been mailed to the corporation at the last address given by it. If any such corporation shall knowingly violate any of the provisions or restrictions of this article, the said bond shall be forfeited and shall be collected by suit by the superintendent of banks, in the name of the people of the state, which suit shall be conducted by the attorney-general; and a reward of two hundred and fifty dollars shall be paid by the state to the person first giving information and furnishing legal proof of such violation. Corporations organized under the provisions of this article shall be subject to the supervision of the superintendent of banks; and the general provisions relative to the supervision of moneyed corporations contained in article two of this chapter shall be applicable to them in so far as they are not inconsistent with the provisions of this article. All expenses incurred by the superintendent of banks in preparing and furnishing suitable blanks, stationery and forms, in preparing and keeping suitable records, for clerical service, and such other expenses as may be incident to such supervision, shall be paid