decreed... against each parcel of land for each tax included therein. The court may decree such costs against a person contesting any Costs may be tax as may be equitable, if the tax, or any part thereof which remains unpaid, be adjudged valid. Approved June 23, 1899. [No. 265.] AN ACT to amend sections one, twelve, fourteen, eighteen and fifty-two of act number two hundred and five of the Public Acts of eighteen hundred and eighty-seven, entitled "An act to revise the laws authorizing the business of Banking, and to establish a Banking Department for the Supervision of such business," the same being sections three thousand two hundred eight a, three thousand two hundred eight b1, three thousand two hundred eight b3, three thousand two hundred eight b7 and three thousand two hundred eight f1, of Howell's Annotated Statutes volume three, as amended by act number ten of the public acts of eighteen hundred and ninety-one. The People of the State of Michigan enact: amended. SECTION 1. That sections one, twelve, fourteen, eighteen Sections and fifty-two of act number two hundred and five of the public acts of eighteen hundred and eighty-seven, entitled "An act to revise the laws authorizing the business of banking, and to establish a banking department for the supervision of such business," the same being sections three thousand two hundred eight a, three thousand two hundred eight b1, three thousand two hundred eight b3, three thousand two hundred eight b7 and three thousand two hundred eight f1 of Howell's annotated statutes volume three, as amended by act number ten of the public acts of eighteen hundred ninety-one, be and the same are hereby amended so as to read as follows: establishing SECTION 1. That any number of persons, not less than five, Association for may associate to establish offices of discount and deposit to banks, etc. be known as commercial banks, and also to establish offices of loan and deposit to be known as savings banks, or to estab lish banks having departments for both classes of business, upon the terms and conditions and subject to the liabilities prescribed in this act, but the aggregate amount of the cap- Capital stock. ital stock of any such bank shall not be less than two hundred fifty thousand dollars, except that banks with a capital of not less than twenty thousand dollars may be organized in a city or village, the population of which does not exceed fifteen hundred inhabitants, and with a capital of not less. than twenty-five thousand dollars in a city or village the population of which does not exceed five thousand inhabitants and Provis). Security required on loans. Bank not to hold capital stock. Affairs managed by board of directors, Quorum. Proviso. with a capital of not less than fifty thousand dollars, in a city or village the population of which does not exceed twenty thousand inhabitants and with a capital of not less than one hundred thousand dollars in cities not less than one hundred and ten thousand inhabitants, in cities over one hundred and ten thousand inhabitants a capital not less than two hundred and fifty thousand dollars: Provided, That banks having deposits exceeding five million dollars the capital shall be increased to a sum not less than four hundred thousand dollars. No bank shall take as security for any loan or discount a lien upon any part of its capital stock. The same security in kind and amount shall be required of stockholders and of persons not stockholders. No bank shall be the holder or purchaser of any portion of its capital stock unless such purchase shall be necessary to prevent loss upon a debt previously contracted in good faith. Stock so purchased shall in no case be held by the bank for a longer time time than six months, if the stock can be sold for what it cost, and it must be sold for the best price obtainable within one year, or canceled as hereinafter provided for the reduction of capital stock. SEC. 12. The affairs of each bank shall be managed by a board of not less than five directors, who shall be elected by ●lection of, etc. the stockholders and hold office for one year, and until their successors are elected and have qualified. A majority of the board of directors shall constitute a quorum for the transaction of business: Provided, That when the number of directors shall exceed nine, they shall once in three months designate by resolution nine members, any five of whom shall constiFirst and subse- tute a quorum. In the first instance the directors shall be elected at a meeting held before the bank is authorized to commence business by the Commissioner, and afterwards at the annual meeting of stockholders to be held on the second Tuesday in January of each year; and if for any cause an election is not had at that meeting it may be held at a subsequent meeting called for that purpose, of which due notice shall be given as provided in the by-laws adopted by such bank. At Who entitled to a meeting of stockholders for election of directors each share quent election of directors. vote. Proxy. Who may be shall entitle the owner to one vote for each director, but no stockholder shall be entitled to vote who is indebted to the bank upon any obligation past due. A stockholder may vote at any meeting of the corporation by a proxy in writing signed by him, but no officer, clerk, teller or bookkeeper of such corporation shall act as proxy. Every director must own and hold in his own name not less than ten shares of the capital stock of such bank. He shall take and subscribe an oath that he will diligently and honestly perform his duties in such of fice, and will not knowingly violate, or permit to be violated, any provisions of this act; that he is the owner in good faith of stock of the bank, as required to qualify him for such office, standing in his name on the books of the bank, and that such stock is not pledged as security for any debt; such oath shall be transmitted to the Commissioner and filed in his office. Any vacancy in the board of directors shall be filled by the board, and the directors so appointed shall hold office until the next election. receiving de SEC. 14. The directors and officers of any bank who shall Fraudulently fraudulently and with intent to cheat and defraud any person, posits, etc., a receive any deposit, knowing, or having good reason to be- felony. lieve, that such bank is insolvent, shall be deemed guilty of a felony, and punished, upon conviction thereof, by imprison- Penalty. ment in the State Prison or in the State House of Correction and Reformatory at Ionia, not to exceed five years, or by a fine not to exceed one thousand dollars or both such fine and imprisonment, at the discretion of the court. lation of act. SEC. 18. Every officer, clerk, agent or employe of a bank Penalty for viowho shall knowingly aid or assist in a violation of any of the provisions of this act, shall be deemed guilty of a felony, and upon conviction shall be punished as provided in section fourteen of this act. banks. etc., loans to officers or employes. SEC. 52. The total liabilities to any bank of any person or Liability of of any company, corporation or firm for moneys advanced, including in the liabilities of the company or firm the liabilities of the several members thereof, except special partners, shall at no time exceed one-tenth part of the amount of the capital and surplus of such bank; but the discount of bills of exchange drawn in good faith against actually existing values and the discount of commercial or business paper actually owned by the person negotiating the same shall not be considered as money borrowed: Provided however, That the fore- Froviso. going limitations shall not apply to loans on real estate or other collateral securities authorized by this act. Provided Further however, That by a two-thirds vote of the directors the liabilities of any bank of any person or company or corporation or firm may be increased to a sum not exceeding one-fifth of the capital and surplus of the bank: Provided further, That be- Proviso as to fore any bank, under the supervision of the laws of this State, shall loan any of its funds to its officers or its employes, any loans shall be first submitted to the directors of such bank for their approval. In addition to the investments authorized by statute State banks and trust companies may invest their de How may invest posits and the income derived therefrom: First, In the legally - authorized bonds of the New York Central & Hudson River Railroad Company, of the Michigan Central Railroad Company, of the Lake Shore & Michigan Southern Railway Company, of the Illinois Central Railroad Company, of the Pennsyl vania Railroad Company, of the Delaware Lackawanna & Western Railroad Company, of the Chicago, Burlington & Quincy Railroad Company, of the Chicago & Northwestern Railway Company and the Delaware & Hudson Canal Company: Provided, That all such bonds hereby authorized for Proviso. investment shall be secured by a first mortgage of the whole or a part of the railroad and railroad property actually in the possession of and operated by such company, and provided that each railroad whose bonds are hereby authorized for in funds. Amount may invest in railroad bonds. Street and elec tric railway corporations, how considered Proviso as to security on bonds. vestment shall have earned and paid regular dividends of not less than four per cent each fiscal year on all its issues of capital stock for the ten years next preceding such investment, and that such capital stock shall equal or exceed in amount one-third of the par value of all its bonded indebtedness. Not more than twenty per centum of the whole amount of deposits of any bank shall be loaned or invested in railroad bonds, and not more than five per centum of the deposits of any bank shall be invested in the bonds of any one railroad. Street and electric railway corporations shall not be considered railroad corporations within the meaning of this subdivision; Second, In the legally authorized bonds of anv railroad company incorporated under the authority of the States of New York, Massachusetts, Ohio, Michigan, Illinois or Iowa, whose road is located wholly or in part in the same and has earned and paid regular dividends of not less than four per cent per annum on all its issues of capital stock for the ten years preceding such investment: Provided, Said bonds be secured by a first mortgage of the whole or a part of the railroad and railroad property of such company, and be guaranteed, both prin cipal and interest, by one or more of the companies named in the first clause of this act. Approved June 23, 1899. [No. 266.] AN ACT to amend the Title and section two of article one and sections seven, eight, nine, fifteen, seventeen, eighteen, twenty-six, twenty-nine, thirty-one, thirty-two, thirty-three, thirty-four, thirty-seven and thirty-eight of article two of the act entitled "An act to revise the laws providing for the Incorporation of Railroad Companies, and to Regulate the Running and Management, and to fix the duties and Liabilities of all Railroad and other Corporations Owning or Operating any Railroad in this State," being act number one hundred and ninetyeight of the session laws of eighteen hundred and seventythree, approved May first, one thousand eight hundred and seventy-three, and being sections six thousand two hundred twenty-four, six thousand two hundred thirty-two, six thousand two hundred thirty-four, six thousand two hundred forty, six thousand two hundred forty-two, six thousand two hundred forty-three, six thousand two hundred fifty-one, six thousand two hundred fifty-four, six thousand two hundred fifty-six, six thousand two hundred fifty-nine, six thousand two hundred sixty-two, six thousand two hundred sixty-three of the Compiled Laws of eighteen hundred ninety-seven. The People of the State of Michigan enact: Sections seven, amended. SECTION 1. That the title of act number one hundred and Title amended. ninety-eight of the session laws of eighteen hundred and sev enty-three, approved May third, eighteen hundred and seventythree, entitled, "An Act to Revise the laws providing for the incorporation of railroad companies and to regulate the running and management and to fix the duties and liabilities of all railroad and other corporations owning or operating any railroad in this State," be amended so as to read as follows: "An Act to revise the laws providing for the incorporation of the railroad bridge and tunnel companies and to regulate the running and management and to fix the duties and liabilities of all railroad, bridge, tunnel and other corporation owning or operating any railroad, bridge or tunnel within this State." SEC. 2. That section two of article one and sections eight, nine, fifteen, seventeen, twenty-six, twenty-nine, thirtyone, thirty-two, thirty-three, thirty-four, thirty-seven and thirty-eight of article two of the act entitled "An act to revise the laws providing for the incorporation of railroad companies, and to regulate the running and management, and to fix the duties and liabilities of all railroad and other corporations owning or operating any railroad in this State; being act number one hundred and ninety-eight of the session laws of eighteen hundred and seventy-three, approved May first, eighteen hundred and seventy-three, and being sections six thousand two hundred twenty-four, six thousand two hundred thirty-two, six thousand two hundred thirty-four, six thousand two hundred forty, six thousand two hundred forty-two, six thousand two hundred forty-three, six thousand two hundred fiftyone, six thousand two hundred fifty-four, six thousand two hundred fifty-six, six thousand two hundred fifty-nine, six thousand two hundred sixty-two, six thousand two hundred sixty-three, of the compiled laws of eighteen hundred ninetyseven, be and the same are hereby amended so as to read as follows, to wit: ARTICLE I. of railroad, tunnel. SEC. 2. In case of the foreclosure and sale of any railroad, Mortgage sale bridge or tunnel, or part of any railroad, bridge or tunnel, bridge or under any trust deed, or mortgage given to secure the payment of bonds sold to aid in its construction and equipment, or for other cause authorized by law, it shall be competent and lawful for the parties who may become the purchasers, Purchasers may and such others as they may associate with themselves, to poration. organize a corporation for the management of the same, and issue stock in the same in shares of one hundred dollars each, to represent the property in said railroad, bridge or tunnel; organize a cor |