loaned, and such as may be conveyed to it by borrowers in satisfaction and discharge of loans made thereon; 4. No such corporation must purchase, hold or convey real estate in any other case or for any other purpose; and all real estate described in subdivision three of this section must be sold by the corporation within ten years after the title thereto is vested in it by purchase or otherwise; 5. No such corporation must purchase, own, or sell personal property, except such as may be requisite for its immediate accommodation for the convenient transaction of its business, mortgages on real estate, bonds, securities or evidences of indebtedness, public or private, gold and silver bullion and United States mint certificates of ascertained value and evidences of debt issued by the United States; 6. No such corporation must purchase, hold or convey bonds, securities or evidences of indebtedness, public or private, except bonds of the United States, of the State of California, and of the counties, cities, or cities and counties, or towns, or school districts of the State of California, or bonds of railroad or street railroad corporations owning property and having their principal place of business in the State of California, unless such corporation has a capital stock or reserve fund paid in of not less than one hundred thousand dollars. [Amendment in effect March 23, 1901.] 64 Cal. 123; 106 Cal. 401; 117 Cal. 160; 126 Cal. 416; 133 Cal. 613; 136 Cal. 442. § 575. Married women and minors may, in their own right, make and draw deposits and draw dividends, and give valid receipts therefor. 64 Cal. 123; 117 Cal. 160; 134 Cal. 405. § 576. Savings and loan corporations may issue general certificates of deposit, which are transferable, as in other cases, by indorsement and delivery; may issue, when requested by the depositor, special certificates, acknowledging the deposit by the person therein named of a specified sum of money, and expressly providing on the face of such certificate that the sum so deposited and therein named may be transferred only on the books of the corporation; payment thereafter made by the corporation to the depositor named in such certificate, or to his assignee named upon the books of the corporation, or, in case of death, to the legal representative of such person, of the sum for which such special certificate was issued, discharges the corporation from all further liability on account of the money so paid. 64 Cal. 123; 109 Cal. 403; 117 Cal. 160; 119 Cal. 341; 136 Cal. 512. § 577. Savings and loan corporations may prescribe by their by-laws the time and conditions on which repayment is to be made to depositors; but whenever there is any call by depos itors for repayment of a greater amount than the corporation may have disposable for that purpose, the directors or officers thereof must not make any new loans or investments of the funds of the depositors, or of the earnings thereof, until such excess of call has ceased. The directors of any such corporation having no capital stock must retain, on each dividend day, at least five per cent of the net profits of the corporation, to constitute a reserve fund, which must be invested in the same manner as other funds of the corporation, and must be used toward paying any losses which the corporation may sustain in pursuing its lawful business. The corporation may provide by its by-laws for the disposal of any excess in the reserve fund over one hundred thousand dollars, and the final disposal, upon the dissolution of the corporation, of the reserve fund, or of the remainder thereof, after payment of losses. 57 Cal. 602; 64 Cal. 123; 109 Cal. 401; 117 Cal. 160. § 578. No director or officer of any savings and loan corporation must, directly or indirectly, for himself or as the partner or agent of others, borrow any of the deposits or other funds of such corporation, nor must he become an indorser or surety for loans to others, nor in any manner be obligor for moneys borrowed of or loaned by such corporation. The office of any director or officer who acts in contravention of the provisions of this section immediately thereupon becomes vacant. 64 Cal. 123; 104 Cal. 476; 117 Cal. 160; 124 Cal. 291; 130 Cal. 257; 136 Cal. 442. § 579. Receiving deposits, issuing certificates of deposit, checks, and bills of exchange, and the like, in the transaction of the business of savings and loan corporations, must not be con strued to be the creation of debts within the meaning of the phrase "create debts," in section three hundred and nine. 57 Cal. 602; 64 Cal. 123; 117 Cal. 160. § 580. [Repealed March 18, 1907; in effect immediately.] § 581. 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 stocks. Any president or managing officer who knowingly consents to a violation of the above provision shall be deemed guilty of a felony. [New section; approved March 21, 1903; in effect immediately.] § 582. 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 11 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. [New section; approved March 21, 1903; in effect immediately.] § 583. 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 thereof. [New section; approved March 21, 1903; in effect immediately.] § 583a. 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. [New section; approved March 21, 1903; in effect immediately.] § 5836. The president of every savings bank, savings and loan society, and every other bank, depository, society, or institution in which deposits of money are made, whether any interest or dividend is paid, or agreed to be paid, thereon or not, must, within fifteen days after the first day of January of every odd-numbered year, return to the Board of Bank Commissioners a sworn statement showing the amount placed to his credit, the last known place of residence or postoffice address, and the fact of death, if known to such president, of every depositor who has not made a deposit therein or withdrawn therefrom any part of his deposit, or any part of the interest or dividends thereon, for a period of more than ten years next preceding. Such president must give notice of these deposits in one or more newspapers published in or nearest the town, city, or city and county where such bank, society, or other institution is situated or has its principal place of business, at least once a week for four successive weeks, the cost of such publication to be paid pro rata out of such unclaimed deposits. This section does not apply to any deposit made by or in the name of a person known to the president to be living, or which, with the accumulation thereon, is less than fifty dollars. The Board of Bank Commissioners must incorporate in their subsequent report each return made to them as provided in this section. Any president of any of the institu tions mentioned in this section who neglects or refuses to make the sworn statement required thereby, is guilty of a misdemeanor. [New section; approved March 21, 1905; in effect in sixty days.] Sections 2 and 3 of the Act adding § 583b read as follows: SEC. 2. The Act entitled "An Act to compel savings banks to publish a sworn statement of all unclaimed deposits," approved March 23, 1893, is hereby repealed. SEC. 3. The Act entitled "An Act to compel all depositaries of money and commercial banks to publish a sworn statement of all unclaimed deposits," approved February 25, 1897, is hereby repealed. Note.-8583b. This section is a codification of the statutes of 1893, page 183, and 1897, page 27, the only change made being in the provisions concerning the person who is to make the report. The original statute provided that the report should be made by the president or secretary. It has been thought best to impose the duty upon a single officer, so that it can not be evaded by one officer, by his saying that it was the duty of the other, or that he had supposed the other had, or would, perform it. Section 1 of the Act approved March 21, 1905 (in effect in sixty days), reads as follows: SECTION 1. Title XI of Part IV of Division First of the Civil Code and each and every section of said title are hereby repealed, and a new Title XI is substituted in place thereof in said code, to read as follows: SEC. 586. TITLE XI. Mining Corporations. Transfer agencies. 587. Stock issued at transfer agencies. 587a. Consolidation of mining corporations. 588. Books and balance sheets to be kept by secretary. Stockholders' right to inspect. 589. 590. § 585. Right of stockholders to visit mine with expert. [Repealed; approved March 21, 1905; in effect in sixty days.] |