the county where the bank carried on business, may sell all the real and personal property of such bank on such terms as the court shall direct; and may, if necessary to pay the debts of such bank, if a corporation, enforce the individual liability of its stockholders. The examiner may employ such clerks and assistants and incur such expenses for rent, office supplies and other proper and reasonable expenses as may be necessary in the preservation and liquidation of the business of such bank, and in special and important cases may employ an attorney, or attorneys at law, as special counsel to assist in the conduct of any particular case, whose compensation shall be fixed by the state banking board at such reasonable and proper sum as may be determined upon by them, for the services rendered. In ordinary cases, and for the usual advice and assistance that the examiner may require in all legal matters, such services shall be rendered by the district attorney of the county where said banking business was carried on, and also upon request of the examiner, by the attorney-general, without additional compensation, except that the state banking board may, in their discretion, allow the district attorney such sum as may be adjudged reasonable by them, not exceeding, however, fifty ($50) dollars per month, during the period of the rendition of said services.

670. Assistants to give bonds.

SEC. 55. The examiner shall require from the clerks and assistants, including a deputy examiner, if any, employed in the settling up of the affairs of any bank, in accordance with this section, such security for the faithful performance of their duties as he may deem proper.

671. Notice to creditors of closed bank to be advertised and mailed.

SEC. 56. The examiner shall cause notice to be given by advertisement, in one or more newspapers, published in the place where said banking business was carried on, weekly, for two successive months, calling on all persons who may have claims against such bank, to present the same to the examiner, and make legal proof thereof, at a place and within a time not earlier than the last date of publication, to be therein specified. The examiner shall mail a similar notice to all persons whose names appear as creditors, upon the books of such bank. If the examiner doubts the justice and validity of any claim, he may reject the same, and serve notice of such rejection, upon the claimant, either by mail or personally. An affidavit of service of such notice shall be prima facie evidence thereof, and shall be filed in his office. An action upon a claim so rejected, must be brought within three months after such service, and a judgment for such claim shall have the effect only of placing the claim on the same basis as an approved claim, and shall create no lien or preference on the property or assets in the examiner's hands, nor shall any execution be issued in such judgment. Claims presented after the expiration of the time fixed in the notice to creditors, shall be entitled to share in the distribution only to the extent of the assets in the hands of the examiner, equitably applicable thereto. After the posting of the notice provided for in section 24 of this act, or the taking possession of any bank by the examiner, no attachment, execution or other writ shall be levied upon the property or assets of such bank until such possession shall have been surrendered by the examiner in accordance with the provisions of this act. 672. Inventory of closed bank to be filed with board.

SEC. 57. Upon taking possession of the property and assets of such bank, the examiner shall make an inventory of the assets thereof, in duplicate; one to be filed in the office of the state banking board at the capitol, and one to be kept at the place where said banking business was carried on, and upon the expiration of the time fixed for the presentation of claims, the examiner shall make in duplicate a complete list of the claims presented, including

and specifying such claims as have been rejected by him; one to be filed in the office of the state banking board at the capitol, and one to be retained and kept at the place where said banking business was carried on, which inventory and list of claims shall be open at all reasonable times to inspection. 673. Expenses to be paid from funds of closed bank-Collections to be deposited in solvent banks.

SEC. 58. The compensation of all special counsel, employees, assistants, and the extra compensation allowed to the district attorney, if any, and all expenses of supervision and liquidation, except the salaries of the examiner and deputy examiner, if any, shall be paid by the examiner out of the funds of such bank in his hands. The moneys collected and realized by the examiner shall be from time to time deposited in one or more banks of deposit, organized under the laws of this state, and designated by the state banking board, which bank or banks shall give bonds to secure the payment of such deposits on demand. Such bonds shall be subject to the approval of the examiner.

674. Dividends of closed bank, how paid.

SEC. 59. At any time after the expiration of the date fixed for the presentation of claims, the examiner may, out of the funds remaining in his hands, after the payment of expenses, declare one or more dividends, and after the expiration of one year from the first publication of notice to creditors, he may declare a final dividend; such dividends to be paid to such persons and in such amounts as may be found to be correct.

675. Closed bank may apply to recover control from examiner.

SEC. 60. Whenever any banker, or banking corporation, or association, of whose property and business the examiner has taken possession, or of which he threatens to take possession, as aforesaid, feels aggrieved thereby, it may, after suit filed, at any time not later than ten days after such taking possession, apply to the district court in the judicial district in which the bank is located, to enjoin further proceedings; and the court, after citing the examiner to show cause why further proceedings should not be enjoined, and hearing the allegations and proofs of the parties, and determining the facts, may, upon the merits, dismiss such application, or enjoin the examiner from further proceedings, and direct him to surrender such business and property to such banker, or banking corporation, firm or association. Such suits shall be brought to trial at the earliest time practicable, and shall be entitled to preference over other civil cases.

676. Closing liquidation, how accomplished.

SEC. 61. Whenever the examiner shall have paid to each and every depositor and creditor of said bank, whose claim or claims shall have been duly proved and allowed, the full amount of such claims, and shall have made proper provision for unclaimed and unpaid deposits or dividends, and shall have paid all the expenses of the liquidation, the examiner shall pay over the surplus remaining in his hands, to the individual, firm, corporation, or association entitled to receive the same.

677. Examiner to report semiannually on closed banks.

SEC. 62. The examiner shall report to the state banking board, semiannually, the names and locations of banks, so taken possession of and liquidated, and the sums of unclaimed and unpaid deposits or dividends, with respect to each of them, respectively, and such dividends and unclaimed deposits remaining unpaid, in the hands of the examiner, for six months after the final distribution, shall be by him deposited in one or more banks, complying with the provisions of this act, to the credit of the state banking

board, in trust for the several depositors and creditors of the liquidated bank from which they were received, and the said state banking board shall pay over the money so held to the persons respectively entitled thereto, upon being furnished satisfactory evidence of their right to the same.

678. Voluntary liquidation, proceedings under.

SEC. 63. Whenever any bank shall voluntarily place itself in the hands of the bank examiner, the said bank examiner shall immediately take possession of such bank and of its assets and he shall proceed to administer and liquidate its property and assets as herein provided in case of an involuntary taking possession by the examiner.

679. How bank may resume business.

SEC. 64. After the bank examiner shall have taken possession of any bank which is subject to the provisions of this act, the owner, in case it is an unincorporated bank, or if a corporation, its stockholders, may repair its credit, restore or substitute its reserves or otherwise place it in a condition so that it is qualified to do a general banking business as before it was taken possession of by the bank examiner, but such bank shall not be permitted to reopen its business until the bank examiner after a careful investigation of its affairs, is of the opinion that the law has been complied with and that its credits and funds are in all respects repaired, and its reserves restored or sufficiently substituted, and that it should be permitted to again reopen for business. Whereupon, the examiner is authorized to issue written permission for the reopening of said bank, in the same manner as herein otherwise provided. Thereupon said bank may be reopened to do a general banking business.

680. Bond of bank examiner, $100.000.

SEC. 65. The bank examiner shall, before entering upon the discharge of his duties, take and subscribe the usual oath of office and execute to the State of Nevada a bond in the sum of $100,000, with sufficient surety for the performance of his duty, to be approved by and filed with the Nevada state banking board.

681. Bond of deputies, $50,000.

SEC. 66. The deputy bank examiners, if any, shall before entering upon the discharge of their duties, take and subscribe the same oath of office as their principal, and execute to the State of Nevada a bond in the sum of $50,000 with sufficient surety for the faithful performance of their duty, to be approved by and filed with the Nevada state banking board.

682. Every bank examined twice each year.

SEC. 67. It shall be the duty of the bank examiner or one of his deputies to visit each and every bank subject to the provisions of this act, at least twice each year, and oftener, if he deem it advisable, for the purpose of making a full and careful examination and inquiry into the condition of such bank, and for that purpose the bank examiner and his deputies are hereby authorized and empowered to administer oaths, and to examine under oath, the owners, stockholders and directors and all officers and employees and agents of such banks or other persons. The result thereof may be reduced to writing, which shall contain a true statement of the condition of such bank. 683. Expenses of examiner and deputies.

SEC. 68. The bank examiner and deputy bank examiners shall be allowed all necessary traveling expenses, when away from the capital on official business, subject to the approval of the Nevada state banking board, all such traveling expenses to be paid out of the general fund of the state.

684. Salaries paid from state funds.

SEC. 69. The salaries of the said bank examiner, his' deputies and the members of the Nevada state banking board, and the traveling expenses and hotel expenses of each, shall be paid by the state treasurer upon warrants drawn by the state controller, when the same shall have been approved by the board of examiners of this state, out of the general fund of the state treasury, in the same manner as other state officers are paid.

685. Penalties for misconduct of banking board, bank examiner and deputies.

SEC. 70. The Nevada state banking board or any member thereof, or any bank examiner or deputy bank examiner, who shall neglect to perform any duty provided by this act, or who shall make any false statement or any statement, except in the exercise of his duty concerning any bank, or who shall be guilty of misconduct or corruption in office, shall, upon conviction thereof, be deemed guilty of felony and punished by a fine not exceeding one thousand dollars or imprisonment in the state prison not exceeding five years, and in addition thereto shall be removed from office.

686. District attorneys to act when notified of violation of this act.

SEC. 71. It shall be the duty of the bank examiner to inform the district attorney of the county in which the bank is located, of any violation of any of the provisions of this act, which constitutes a misdemeanor or felony, by the officers, owners, or employees of any bank, and upon receipt of such information the district attorney shall institute proceedings to enforce the provisions of this act.

687. Charters of banks made to conform to this act-Legality of investments not affected-Future transactions must conform to this act. SEC. 72. The powers, privileges, duties and restrictions conferred and imposed upon any corporation or individual, existing and doing business under the laws of this state are hereby abridged, enlarged or modified as each particular case may require, to conform to the provisions of this act, notwithstanding anything to the contrary in their respective articles of incorporation or charters. The legality of investments heretofore made, or of transactions heretofore had, pursuant to any provisions of law in force when such investments were made or transactions had, shall not be affected by the provisions of this act, except as the same can be done gradually by the sale or redemption of the securities so invested in, in such manner as to prevent loss or embarrassment in the business of such corporation or individual, or unnecessary loss or injury to the borrowers on such security; provided, all investments, transactions, loans, and requirements shall be made to conform to the provisions of this act, within the period of eighteen months from the time of the enactment thereof.

688. Each section of this act declared independent.

SEC. 73. Each section of this act, and every part of each section is hereby declared to be independent of every other section and part of section, and the holding of a section or part of section to be void or ineffectual for any cause shall not be deemed to affect any other section or part of section.

689. General penalty prescribed.

SEC. 74. Where no other punishment is provided herein, any person violating any of the provisions of this act, shall be deemed guilty of a misdemeanor, and upon conviction thereof, shall be punished by a fine of not less than one hundred dollars ($100), or more than five hundred dollars

($500), or by imprisonment in the county jail for not less than thirty days, or both, in the discretion of the court.

690. Terms and words used defined.

SEC. 75. The words "corporation," "banking corporation," "bank," "trust company," or "banker," as used in this act, shall refer to and include banks, savings banks, and trust companies, individuals, firms, associations and corporations of any character conducting the business of receiving money on deposit or otherwise carrying on a banking or trust company business, except as herein specially provided.

691. General corporation act adopted.

SEC. 76. All provisions of an act entitled "An act providing a general incorporation law," approved March 13, 1903, as amended, not in conflict with this act are hereby adopted as a part of this act.

See secs. 1105 to 1215, infra.

692. Repeal of conflicting acts.

SEC. 77. All acts and parts of acts in conflict with the provisions of this act are hereby repealed, but such repeal shall not affect any civil actions or rights of action nor the prosecution of any person or persons for any offenses which may now exist or which have been heretofore committed under existing laws.

693. Appropriation.

SEC. 78. For the purpose of carrying this act into effect and paying the salaries and expenses herein provided for, and incident hereto, the sum of twenty thousand dollars ($20,000) is hereby appropriated out of the state treasury.

694. Declared unconstitutional.

[Section 79, directing bank examiner to take charge of banks in the hands of receivers, declared unconstitutional. State ex rel. Howell v. Wildes, 33 Nev. - 116 P. 195.]

The foregoing act supersedes the general corporation law of 1865, sections 1219 to 1241, incl., infra, in so far as it authorized the incorporation of banks. As they are covered by the provisions of the foregoing banking act, the following acts are omitted: "An Act to provide for the incorporation of banks, banking institutions and saving societies and the management of the affairs thereof, and other matters relating thereto, providing penalties for the violation of the provisions of this act, and repealing all acts in conflict thereof," approved March 29, 1907, p. 362; and "An Act creating a board of bank commissioners, defining their duties, providing for the appointment of a bank examiner, prescribing his duties, fixing his compensation, providing penalties for the violation of the provisions of this act, and other matters relating thereto," approved March 26, 1907, p. 229; and "An Act to define and regulate the business of banking: creating a state banking board, and definining its duties and powers, and providing for a bank examiner and the examination and supervision of banking corporations; and for the appointment of receivers in certain cases, fixing penalties for the violation thereof, and other matters relating thereto," approved March 24, 1909, p. 251.

As its sections have been superseded and carried to the general act in relation to crimes which becomes effective January 1, 1912, the following act is omitted: "An Act making it a felony for any banker, or any officer, director, cashier, teller, managing member, manager, clerk, person, party or agent of any bank, banking corporation, association, firm or person engaged in a banking. brokerage, exchange or deposit business to receive, or accept or assent or be accessory to or permit the reception or deposits of money, currency or valuable paper, in banking and other institutions, knowing the same to be insolvent; providing a punishment therefor and establishing a rule of evidence in connection therewith." approved March 13, 1909, p. 95, sections 6724 and 6725, infra.

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