Section Cited.

Burke v. Badlam, 57 Cal. 602; Mitchell v. Beckman, 64 Cal. 123, 28 Pac. 110; Wells v. Black, 117 Cal. 160, 59 Am. St. Rep. 162, 48 Pac. 1090.

Annotation.

Creating Debts.-Between a savings bank and its depositors the relation of debtor and creditor does not exist. (Burke v. Badlam, 57 Cal. 602. To same effect: Los Angeles v. State Loan etc. Co., 109 ('al. 396, 42 Pac. 149; Wells v. Black, 117 Cal. 160, 59 Am. St. Rep. 48, Pac. 1090.)

BANKS, AMOUNT OF CAPITAL STOCK REQUIRED.

Sec. 580, C. C. No savings bank, or bank, or banking corporation, shall be incorporated in this state and conduct such banking business in a city or town of five thousand inhabitants or under, with a capital stock of less than twenty-five thousand dollars, or in a city or town of over five thousand and not exceeding ten thousand inhabitants with a capital stock of less than fifty thousand dollars, or in a city or town of over ten thousand and not exceeding twenty-five thousand inhabitants with a capital stock of less than one hundred thousand dollars, or in a city or town of over twenty-five thousand inhabitants with a capital stock of less than two hundred thousand dollars. Before the Secretary of State issues to any corporation that proposes to do a banking business his certificate of the filing of the articles of incorporation, there must be filed in his office the affidavit of the persons named in said articles as the first directors of the corporation, that all the capital stock has been actually and in good faith subscribed, and at least fifty per centum thereof paid, in lawful money of the United States, to a person in such affidavit named, for the benefit of the corporation. The remainder of the capital stock must be paid in within two years after said banking corporation receives its certificate of incorporation, and if not so paid said banking corporation shall not be authorized to do business; provided, however, that the provisions of this section. shall not apply to corporations now in existence. En. Stats. 1903, 87.

RESTRICTIONS ON SAVINGS BANKS.

Sec. 581, C. C. No savings bank shall lend to exceed sixty per cent of the market value of any piece of real estate to be taken as security, except for the purpose of facilitating the sale of property owned by the corporation. And it shall be unlawful for any savings and loan society, or savings bank, to purchase, invest, or loan its capital, or the money of its depositors, or any part of either, in mining shares or stock. Any president or managing officer who knowingly consents to a violation of the above provision shall be deemed guilty of a felony. En. Stats. 1903, 352.

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TRUE NAMES OF PERSONS ENGAGED IN BANKING MUST BE SHOWN.

Sec. 582, C. C. Every person or number of persons not being incorporated, engaged in the business of banking, or publicly receiving money on deposit must conduct such business under a name which shows the true names of all persons engaged therein, unless such person or persons have complied with the provisions of article VII of chapter II of title X of part IV of division third of said Civil Code. Every person violating any of the provisions of this section is guilty of a misdemeanor, and is punishable by imprisonment in the county jail for not less than ninety days nor more than six months, or by fine of not less than one hundred dollars nor more than five hundred dollars, or by both such fine and imprisonment. En. Stats. 1903, 352.

DIVIDENDS-SURPLUS FUNDS.

Sec. 583, C. C. The directors of any savings bank, bank, or banking corporation having a capital stock, may semi-annually declare a dividend of so much of the net profits of the stockholders as they shall judge expedient; but every such corporation shall, before the declaration of such dividend, carry at least one-tenth (1-10) part of the net profits of the stockholders for the preceding half year to its surplus or reserve fund until the same shall amount to twenty-five per centum

of its paid-up capital stock. But the whole or any part of such surplus or reserve fund, if held as the exclusive property of stockholders, may at any time be converted into paid-up capital stock, in which event such surplus or reserve fund shall be restored in manner as above provided until it amounts to twenty-five per centum of the aggregate paid-up capital stock. A larger surplus or reserve fund may be created, and nothing herein contained shall be construed as prohibitory thereon. En. Stats. 1903, 353.

CAPITAL ACTUALLY PAID UP MUST BE PUBLISHED.

Sec. 583a, C. C. No banker, nor officer of any bank or corporation doing a banking business, shall advertise in any manner, or publish any statement of the capital stock authorized or subscribed, unless he advertise and publish in connection therewith, the amount of capital actually paid up. Any officer, or the officers of any bank or corporation doing a banking business, advertising in any manner, or publishing, a statement of the capital stock of such bank or banking corporation, authorized or subscribed, without the statement in connection therewith of the stock actually paid up, shall be guilty of a misdemeanor. En. Stats. 1903, 353.

TITLE XI.

MINING CORPORATIONS.

$ 584. Removal of the principal office provided for. (Repealed.) 585. Directors to file certificates of proceedings in offices of county clerks and Secretary of State.

§ 586. Transfer agencies.

§ 587. Stock issued at transfer agencies.

REMOVAL OF THE PRINCIPAL OFFICE PROVIDED FOR. pealed.)

Sec. 584, C. C. En. March 21, 1872.

Legislative History.

(Re

Rep. 1875-76, 73.

This section was, and the next section is, based on the act of February 15, 1864, page 76, authorizing mining corporations to change their place of business.

The section repealed is as follows: "Sec. 584. Every mining corporation may change its principal place of business from one county or city to another, within this state. Before such removal is made the consent in writing of the holders of two-thirds of the capital stock must be obtained and filed in the office of the corporation. When such consent is obtained, notice of the intended removal must be published for thirty days in some newspaper published at the principal place of business of the corporation, giving the name of the county or city where it is then situated, and that to which it is intended to remove it."

DIRECTORS TO FILE CERTIFICATES OF PROCEEDINGS IN COUNTY CLERKS AND SECRETARY OF

OFFICES
STATE.

OF

Sec. 585, C. C. When the publication provided for in the preceding section has been complete, the directors of the corporation must file in the offices of the clerks of the counties from and to which such change has been made, and in the office of the Secretary of State, certified copies of the written consent of the stockholders to such change, and of the notice of such change, and proof of publication; also, a certificate that the proposed removal has taken place; and thereafter

the principal place of business of the corporation is at the place to which it is removed. En. March 21, 1872.

Legislative History.

See sec. 584, C. C., supra.

TRANSFER AGENCIES.

Sec. 586, C. C. Any corporation organized in this state for the purpose of mining or carrying on mining operations in or without this state, may establish and maintain agencies in other states of the United States, for the transfer and issuing of their stock; and a transfer or issue of the same at any such transfer agency, in accordance with the provisions of its bylaws, is valid and binding as fully and effectually for all purposes as if made upon the books of such corporation as its principal office within this state. The agencies must be governed by the by-laws and the directors of the corporation. En. March 21, 1872.

Legislative History.

The basis of this and the following section is the act of 1863-64, page 429, authorizing the establishment of transfer agencies.

STOCK ISSUED AT TRANSFER AGENCIES.

Sec. 587, C. C. All stock of any such corporation, issued at a transfer agency, must be signed by the president and secretary of the corporation, and countersigned at the time of its issue by the agent having charge of the transfer agency. No stock must be issued at a transfer agency, unless the certificate of stock, in lieu of which the same is issued, is at the time surrendered for cancellation. En. March 21, 1872.

Legislative History.

See sec, 586, C. C., supra.

Act for protection of miners: See post, Statutes at Large, title "Mines and Mining."

Act relating to removal of officers: See post, Statutes at Large, title "Mines and Mining."

Act for protection of stockholders in mining corporations: See post, Statutes at Large, title "Mines and Mining."