ARTICLE V. State Banking Department. § 120. State banking department. Superintendent appointed by gov § 121. § 122. § 123. § 124. ernor. Employees of superintendent of banks. Compensation. Principal office. Not to borrow from banks. In case State banking fund created. Each bank to contribute to fund. Inspection of banks. Extra examinations. May administer Examiner. Oath of office of. Neglect of duty. Written consent for organizing banks. Certificate to transact § 125. § 126. § 127. § 128. § 129. Reports. § 130. § 131. § 132. § 133. Same. Report of foreign corporation. Reports for branch § 134. Violation of law by bank. Shall show what. Assessment. Public sale. Private $135. Superintendent of banks may call stockholders' meeting. § 135a. Action to dissolve bank violating law. Ac § 136. Superintendent of banks may take possession of bank violat- § 137. Right to dissolve.. Discharge of receiver. Unclaimed moneys Reports, failure to make. Examination by board of directors. Report. Failure to make Report of superintendent to governor. § 138. § 139. § 140. § 141. Weekly bulletin to be posted by superintendent; items of. Records deemed public documents. Official reports prima facie [Repealed.] Actions for recovering forfeitures. Fines may be compromised. prior to July 1, 1909. § 146. Conflicting laws repealed. § 147. Act takes effect when. § 1. Title of act. This act shall be known as the "bank act," and shall be applicable to all corporations specified in the next section and to such other corporations as shall subject themselves to special provisions and sections thereof, and to such other persons, associations, copartnerships or corporations who shall, by violating any of its provisions, become subject to the penalties provided therein. [Amendment approved June 3, 1921; Stats. 1921, p. 1361. Also amended 1. 1913. Stats. 1913, p. 137; 2. 1915. Stats. 1915, p. 1104.] § 2. "Bank" defined. Money in escrow. Classification. The word "bank," as used in this act shall be construed to mean any incorporated banking institution which shall have been incorporated to conduct the ! business of receiving money on deposit, or transacting a trust business as hereinafter defined. The soliciting, receiving, or accepting of money or its equivalent on deposit as a regular business shall be deemed to be doing a commercial or savings bank business whether such deposit is made subject to check or is evidenced by a certificate of deposit, a pass-book, a note, a receipt or other writing; provided, that nothing herein shall apply to or include money or its equivalent left in escrow or left with an agent, pending investment in real estate or securities for or on account of his principal. It shall be unlawful for any corporation, partnership, firm, or individual to engage in or transact a banking business within this state except by means of a corporation daly organized for such purpose. Banks are divided into the following classes: (a) Savings banks; (b) Commercial banks; and (e) Trust companies. [Amendment approved May 6, 1913; Stats. 1913, p. 137.] § 3. Corporations, how formed. Corporations may be organized by any number of natural persons, not less in any case than three, under the laws of this state to conduct, as provided in this act, and not otherwise, any one or more or all of the businesses mentioned in divisions (a), (b), and (c) of section two, of this act. [Amendment approved June 3, 1915; Stats. 1915, p. 1105.] Also amended May 6, 1913. Stats. 1913, p. 137. §4. Savings bank, meaning of term. The term "savings bank," when used in this act, means a bank organized for the purpose of accumulating and loaning the funds of its members, stockholders, and depositors, and which may loan and invest the funds thereof, receive deposits of money; loan, invest, and collect the same with interest; and may repay depositors with or without interest, and having power to invest said funds in such property, securities, and obligations as may be prescribed by this act; and to declare and pay dividends on its general deposits, and a stipulated rate of interest on deposits made for a stated period or upon special terms. § 5. Commercial bank. The term "commercial bank" when used in this act, means any bank authorized by law to receive deposits of money, deal in commercial paper or to make loans thereon, and to lend money on real or personal property, and to discount bills, notes or other commercial paper, and to buy and sell and advertise for purchase or sale such securities as are permissible for investment by commercial banks, gold and silver bullion, or foreign coins or bills of exchange; provided, any commercial bank located and doing business in any place the population of which does not exceed five thousand persons, as shown by the last preeeding federal census, or any subsequent census compiled and certified under any law of this state, may, under such rules and regulations as may be prescribed by the superintendent of banks, act as the agent for any fire, life, or other insurance company authorized by the authorities of the state of California to do business in this state, by soliciting and seling insurance and collecting premiums on policies issued by such company; and may receive for services so rendered such fees or commissions as may be agreed upon between the said bank and the insurance company for which it may act as agent; and may also act as the broker or agent for others in making or procuring loans on real estate located within one hundred miles of the place in which said bank may be located, receiving for such services a reasonable fee or commission; provided, however, that no such bank shall in any case guarantee either the principal or interest of any such loans or assume or guarantee the payment of any premium on insurance policies issued through its agency by its principal; and provided, further, that said bank shall not guarantee the truth of any statement made by an assured in filing his application for insurance. [Amendment approved June 3, 1921; Stats. 1921, p. 1362.] This section was also amended in 1919 (Stats. 1919, p. 622). § 6. "Trust company" defined. The term "trust company," when used in this act, means any corporation which is incorporated under the laws of this state for the purpose of conducting the business of acting as executor, administrator, guardian of estates, assignee, receiver, depositary or trustee under appointment of any court or by authority of any law of this state, or as trustee for any purpose permitted by law. [Amendment approved May 6, 1913; Stats. 1913, p. 137.] § 7. Foreign corporations. Capital and deposits kept separate. Loans. Income as profits. Attorney. Service of process. Trust company business. Loans by foreign banks. No foreign corporation shall transact a banking business in this state without first complying with all the requirements of the laws of this state relative to banks as defined in this act, and without having assigned to its business in this state the amount of paid-up capital and surplus required by this act for the transaction of such business within this state. No foreign banking corporation shall transact business in this state until such corporation has made the assignment of capital required by this section and has received a certificate from the superintendent of banks; provided, that a foreign banking corporation shall not be permitted to accept deposits of money in this state but may receive a certificate from the superintendent of banks to transact in this state only the business of buying or selling, paying or collecting bills of exchange, or of issuing letters of credit or of receiving money for transmission or transmitting the same by draft, check, cable or otherwise, or of making loans; and provided, further, that those foreign banking corporations that now have power to do a banking business in this state and which now receive deposits of money shall be permitted to continue to accept money on deposit. Any foreign banking corporation transacting business in this state shall become subject to the supervision of the state superintendent of banks. Every foreign banking corporation, including those which were on January second, one thousand nine hundred thirteen, transacting business in this state, which receives any deposits or transacts any other banking business or transacts its business in such a manner as might lead the public to believe that its business is that of a bank shall conduct all its business in accordance with the statutes governing incorporated banking institutions organized under the laws of this state. Capital and deposits kept separate. The capital of any such foreign banking corporation assigned to its business in this state and all funds and deposits of money received by any such corporation in this state or for or in connection with its business in this state and all accounts and transactions of said business transacted by any such foreign corporation in this state shall be kept separate and apart from the general business, assets and accounts of such foreign corporation in the same manner as if the business of such foreign corporation conducted within this state was that of a separate and independent corporation organized under the laws of this state for the purpose of doing a banking business and all of the provisions of this act affecting investments, loans of money, receiving deposits and conducting business in any respect shall be deemed to apply to such assigned capital, investments, loans, deposits, assets, funds and business in the same manner as if such assigned capital, investments, loans, deposits, assets, funds and business were that of such separate and independent corporation; Loans. provided, that loans may be made by any such foreign corporation based on its entire paid-up capital and surplus in case such foreign corporation shall have assigned to its business in this state a paid-up capital and surplus as above provided equal to twenty per eentum of the deposit liability of such branch agency or office to residents of this state. Such funds and investments or loans thereof shall be appropriated solely to the security and payment of such deposits, and shall not be mingled with the investments of the capital stock or other money or property belonging to such corporation or be liable for the debts or obligations thereof. Income as profits. All income received from the investments of said funds over and above such funds as may be paid to depositors as interest or shall be carried to the surplus fund, as provided in section twenty-one of this act, shall accrue as profits to the corporation and may be transferred to its general funds. Attorney. No such foreign corporation shall transact any banking business in this state until it has executed and filed with the superintendent of banks a written instrument appointing such superintendent or his successor in office, its true and lawful attorney, upon whom all process issued by authority of or under any law of this state may be served, with the same effect as if such corporation was formed under the laws of this state and had been lawfully served with process therein. Such service upon such attorney shall be deemed personal service on such corporation. Service of process. The superintendent of banks shall forthwith forward by mail, postage prepaid, a copy of every process served upon him under the provisions of this section, addressed to the manager or agent of such corporation, at its principal place of business in this state. For each copy of process, the superintendent of banks shall eollect the sum of two dollars, which shall be paid by the plaintiff or moving party at the time of the service, to be recovered by him as a part of his taxable costs if he succeed in the suit or proceeding. Trust company business. No foreign corporation shall have or exereise in this state the power to receive deposits of trust moneys, securities or other personal property from any person or corporation or any of the powers specified in section six of this act, nor have or maintain an office in this state for the transaction of, or transact, directly or indirectly, any such or similar business, except that a trust company incorporated in another state may have or exercise in this state such powers as are permitted to foreign corporations by the provisions of section ninety of this act; provided, that no foreign corporation which may have or exercise in this state such powers as are permitted to foreign corporations by the provisions of section ninety of this act shall establish or maintain, directly or indirectly, any branch office or agency in this state; Loans by foreign banks. and provided, further, that nothing in this act shall limit or affect the right of any foreign corporation doing a banking business in this state, to lend within this state, moneys of such corporation which do not form a part of the moneys, deposits or assets of such corporation assigned or belonging to its business in this state. This section shall not be construed to prohibit foreign banking corporations, which do not maintain an office in this state for the transaction of business, from making loans in this state secured by mortgages on real property, nor from accepting assignments of mortgages covering real property situated in this state, nor from making loans through correspondents which are engaged in the business of banking in this state under the laws of this state. [Amendment approved May 2, 1923. Stats. 1923, p. 169.] This section was also amended in 1913 and 1917. See Stats. 1913, p. 137; 1917, p. 598. § 8. Copy of articles of incorporation. Every corporation, at the time it applies for a certificate of authority to do a banking business, must file with the superintendent of banks a certified copy of its articles of incorporation, or of the statute chartering such corporation, a certified copy of its by-laws, and also a certified copy of all instruments amending or altering such articles of incorporation or charter or by-laws. Thereafter a certified copy of each amendment or certificate designed to increase or decrease the capital stock, to change the number of directors, to amend the articles of incorporation, to change the principal place of business, or the name of such corporation, or to effect any other organic change shall likewise be so filed before such instrument takes effect. Each certification required by the provisions of this section other than that of by-laws must be by the secretary of state. [Amendment approved May 15, 1919; Stats. 1919, p. 623.] This section was also amended in 1913 and 1917. See Stats. 1913, p. 140; 1917, p. 601. § 9. Approval for opening branch office. Capital. Discontinuance. Certificate of authority. Fee. Savings banks in schools. Penalty. No bank in this state, or any officer or director thereof, shall hereafter open or keep an office other than its principal place of business, without first having obtained the written approval of the superintendent of banks to the opening of such branch office, which written approval may be given or withheld in his discretion, and shall not be given by him until he has ascertained to his satisfaction that the public convenience and advantage will be promoted by the opening of such branch office; provided, that no bank or any officer or director thereof, shall open or maintain any such branch office unless the capital of such bank, actually paid in, in cash, shall exceed the amount required by this act by the sum of twenty-five thousand dollars for each branch office opened and maintained in the place where its principal business is transacted. Capital. And provided, that for each branch office opened or maintained by any bank, other than a bank transacting only the business |