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provided for, and said company is not in any default in its duties and obligations hereunder, he shall allow said company to reduce its said deposits to the sum originally required in this section by the withdrawal of such additional deposits until such time as an increase in its holdings shall again require an additional deposit as hereinbefore provided. No corporation authorized to accept and execute trusts shall either directly or indirectly through any officer, agent or employe of such corporation, certify to any bond, note or other obligation to evidence debt, secured by any trust deed or mortgage upon or accept any trust concerning property located wholly or in part in this State without complying with said act and the amendments thereto; and any trust deed or mortgage given or taken in violation of the provisions of this act and the amendment thereto shall be null and void. (As amended by act approved and in force April 24, 1899. L. 1899, p. 123; Legal News Ed., p. 110.
135. When deposit in bonds and mortgages.) § 7. When any part of such deposit is made in bonds and mortgages it shall be accompanied by full abstracts of titles and searches, and shall be examined and approved by or under the direction of the Auditor. The fees of an examination of title by counsel, to be paid by the company making the deposit, shall not exceed $20 for each mortgage, and the fee for each appraiser not exceeding two, besides expenses, shall be $5 for each mortgage.
136. Certificate of authority from auditor.) § 8. It shall not be lawful for any such company to accept any trust or deposit as hereinbefore provided, after the passage of this act, without first procuring from the Auditor of Public Accounts a certificate of authority stating that such company has complied with the requirements of this act in respect to such deposit.
137. Statement to be filed with auditor.) § 9. Such companies shall file with the said Auditor, during the month of January of each year, a statement under oath, of the condition of such company on the thirty-first day of December next preceding, exhibiting the following items in the following form:
(a) The assets of said company, specifying:
First-The description and market value, or as nearly as may be, of the real estate owned by such company.
Second–The amount of cash on hand and deposited in banks to the credit of said company, specifying in what banks such deposits are.
Third—The amount of cash in the hands of agents and in course of transmission.
Fourth—The amount of ioans secured by mortgages and bonds, constituting a first lien on real estate, on which there shall be less than one year's interest due or owing and the amount of such interest.
Fifth-The amount of such loans on which there shall be more than one year's interest due or owing, and the amount of such interest.
Sixth-The amount due the company on which judgments have been obtained.
Seventh-The amount of stocks and bonds of this State, and of the United States, of any incorporated city of this State, and of any other stocks and bonds owned by such company, specifying the amount, number of shares, and the par and market value of each kind of stock and bonds.
Eighth—The amount loaned upon the pledges of securities, with a statement of the securities so held by such company, and the par and market value of such securities.
Ninth—The amount of all other assets of such company, including accrued interest not enumerated above.
(b) The liabilities of such company, specifying:
(c) A list and brief description of the trusts held by such company, the source of the appointment thereto, and the amount of real and personal estate held by such company by virtue thereof, except that mere mortgage trusts wherein no action has been taken by such company, shall not be included in such statement. The said report shall also be in such form and contain such statements, returns and information as to the affairs, business condition and resources of the corporation, as the said Auditor of Public Accounts may, from time to time, prescribe and require.
138. What report to contain.) § 10. Such report shall be verified by the affidavit of one of the managing officers, and two of the directors or trustees of said company, who shall also state in such affidavit that they have examined the assets and books of said company for the purpose of making said report. Any false swearing in regard to such report shall be deemed perjury, and shall be subject to the punishments prescribed by law for such offense.
139. Power and duty of auditor.) § 11. The Auditor of Public Accounts is hereby authorized and empowered to address any inquiries to such company, or the officers thereof, in relation to its doings and condition, or any other matter connected with its affairs, and it shall be the duty of any company or persons so addressed to promptly reply in writing to such inquiries. The Auditor may also require reports from any such corporation at any time he may deem advisable.
140. Auditor to visit corporation annually.) § 12. It shall be the duty of said auditor, annually, either personally or by one or more competent persons to be appointed by him, to visit and examine every such corporation in this State. The auditor shall also have power, in like manner, to examine any such corporation, whenever in his judgment it may be deemed necessary or expedient. The said auditor and every such examiner shall have power to administer an oath to any person whose testimony may be required on any such examination, and to compel the appearance and attendance of any such person for the purpose of examination, by summons, subpoena or attachment, in the manner now authorized in respect to the attendance of persons as witnesses in the courts of record in this State; and all books and papers which may be deemed necessary to examine by the Auditor or examiner so appointed shall be produced, and their production may be compelled in like manner. The expense of every examination, if any, shall be paid by the corporation examined, in such amount as the auditor shall certify to be just and reasonable; but whenever such special examination shall be made by the Auditor in person, or by one or more of the regular clerks in his department, no charge shall be made except for necessary traveling and other actual expenses. On every examination, inquiry shall be made as to the condition and resources of the corporation generally, the mode of conducting and managing its affairs, the action of its directors or trustees, the investment of its funds, the safety and prudence of its management, the security afforded to those by whom its engagements are held, and whether the requirements of its charter and of the laws have been complied with in the administration of its affairs. The result of any such examination shall be certified by the examiner, or one of them, upon the records of the corporation examined, and the result of all the examinations during the preceding two years, shall be embodied in the report of the Auditor required by this act to be submitted to the Legislature. Such report shall give the date to which such report refers, the amount of capital returned by each of said corporations, the whole amount of its debts and liabilities, the total sum of its resources, and such other information as such Auditor may deem useful.
141. May cause proceedings to be instituted against corporations.) § 13. Whenever it shall appear to the said auditor from any such examination or report, that any such corporation has committed any violation of law, or is conducting its business in an unsafe or unauthorized manner, he shall, by order under his hand and seal, direct the discontinuance of such illegal and unsafe or unauthorized practices and strict conformity with the requirements of the law, and with safety and security in its transactions, and whenever any such corporation shall refuse or neglect to make any such report as is hereinbefore required, or to comply with any such order as aforesaid, or whenever it shall appear to the Auditor that it is unsafe or inexpedient for any such corporation to continue to transact business, or that extraordinary withdrawals of money are jeopardizing the interests of remaining depositors, or that any trustee or officer has abused his trust or been guilty of misconduct, or malversation in his official position, injurious to the institution, or that it has suffered a serious loss by fire, burglary, repudiation or otherwise, he shall communicate the facts to the Attorney-General, who shall thereupon institute such proceedings against the corporation, as the nature of the case may require.
142.-Certificates may be revoked.) § 14. If the auditor shall at any time have satisfactory evidence that any annual statement or other report required or authorized by this act, made or to be made by any officer or officers of such corporation, is false, it shall be the duty of the said auditor to immediately revoke the certificate of authority granted on behalf of such corporation, and mail a copy of such revocation to said corporation and the clerk of any court of record in this State. Such revocation shall not be set aside until satisfactory evidence shall be given to said auditor, that such corporation is, in substance and in fact, in the condition set forth in such statement or report, and that all the requirements of this act have been complied with. Such revocation shall be sufficient cause for the removal of such company from any appointment held by it under the provisions of this act.
143. Penalty.) § 15. Any violation of the provisions of this act shall subject the party violating the same to a penalty of $500 for each offense, and the additional sum of $100 per day
during which any such company shall fail to file its said report after the last day of January of each year.
144. Abstract of statement to be published.) § 16. The said auditor shall cause a proper abstract of the statements of assets and liabilities reported under Section 9 of this act, to be published once in each week for three consecutive weeks, in two newspapers of general circulation, the one printed in the city of Springfield and the other in the county seat of the county wherein the principal office of the respective company is located, such publication to be paid for by said company. (Added by act approved June 1, 1889. In force July 1, 1889. L. 1889, p. 101; Legal News Ed., p. 75.
145. Fee.) § 17. There shall be paid to every company to whom this act shall apply, the following fees: For filing the original application and receiving the deposit required by Section 8 of this act, the sum of $30.00; for filing the annual statement required, $10; for the certificate of authority, $2; for each copy of the paper filed in the auditor's office, the sum of 20 cents per folio; for affixing the seal of said office to said copy and certifying the same, $1.
146. May retire from business.) § 18. Any company which desires to retire from business under this act, shall furnish to the auditor satisfactory evidence of its release and discharge from all obligations and trusts hereinbefore provided for, whereupon he shall revoke his certificate to such company, and return its securities.
147. Repeal.) § 19. All laws and parts of laws in conflict with the provisions of this act are hereby repealed.
Corporate property is subject to creditors' claims, and purchasers securing such property by a fraudulent scheme will be held liable to creditors.
Standard Distilling Co. v. Springfield Coal Co., 239 Ill. 600 (605). Sales of corporate property made in bad faith, while it is solvent, will be set aside and the purchasers, with notice, held for corporate debts, in suit under Section 25.
Standard Distilling Co. v. Springfield Coal Co., 239 I11. 600 (605).