chased of which the debt, debts, or liabilities at the time exceed fifteen per cent of the assessed value of the taxable property of said county.

SEC. 7. All bonds purchased by the board under the provisions of this Act must be delivered to the State Treasurer, who shall keep them as a portion of said "The Dissolved Savings Bank Fund," the interest upon such bonds to be placed by him to the credit of said fund.

SEC. 8. Whenever the moneys on hand in the State treasury to the credit of the said "The Dissolved Savings Bank Fund" is not sufficient to pay the claims allowed by the State Board of Examiners.against said fund, it shall be the duty of said board to sell such bonds belonging to said fund as they may deem proper, for the purpose of providing funds for the payment of such claims so allowed by them.

SEC. 9. This Act shall take effect from and after its passage.

BANK COMMISSIONERS.

An Act creating a Board of Bank Commissioners, and prescribing their duties and powers.

[Approved March 24, 1903. Amended March 20, 1905. Amended March 18, 1907.]

The people of the State of California, represented in Senate and Assembly, do enact as follows:

SECTION 1. Within ten days after the passage of this Act the Governor shall appoint, by and with the advice and consent of the Senate, four competent persons, one of whom shall be an expert of accounts, to be styled Bank Commissioners; and the Governor shall designate, at the time of such appointment, their respective terms of office in accordance with the following classification, viz: Two of said Commissioners shall serve for two years, and two for four years. Their successors shall be appointed by the Governor and hold their office for the term of four years and until their successors are appointed and qualified. Should a vacancy occur either by death, removal from the State or otherwise, the Governor shall appoint his successor for the unexpired portion of his term. The persons who are so appointed shall have no official connection with

nor be in the employ of any savings bank, bank, banking company, or banking society, nor shall they, during their terms of office, own or be interested in the stock or other property thereof. Said Commissioners shall have their office in the City of San Francisco.

SEC. 2. The Bank Commissioners, before entering upon the duties of their office, must execute an official bond in the sum of twenty thousand dollars, and take the oath of office, all as prescribed by the Political Code for State officers in general.

SEC. 3. The duties of the Bank Commissioners shall be to prepare and furnish to every savings bank, bank, and banking company, or any other corporation incorporated under the laws of this State, or of any other State or Territory, or foreign country, doing a banking business in this State, applying therefor, a license, in the form to be prescribed by them, authorizing such corporation to use the name and to transact the business of a savings bank, bank, or banking company, until the first day of July next thereafter; to receive and place on file in their office the reports required to be made by savings banks, banks, or banking corporations, by this Act; to prepare and furnish, on demand, to all persons, firms, partnerships, corporations, or officers required to make and return statements or reports to said Bank Commissioners by the provisions of this Act, blank forms for such statements or reports as may by law be required of them; to make, on or before the first day of October in each year, a report to the Governor of this State, containing a tabular statement and synopsis of the several reports which have been filed in their office since their last report, and any other proceedings had or done by them under this Act, showing generally the condition of the respective savings, commercial and other banking corporations or institutions of this State, and such other matters as in their opinion may be of interest to the public, with a detailed statement, verified by their oaths, of all moneys and fees of office received by them during the same period.

SEC. 4. It shall be the duty of one or more of the Bank Commissioners, as designated by the Commissioners, once in each year, and as often as in their judgment may be deemed necessary, without previous notice, to visit and make, personally, a full examination of each and every corporation mentioned in section three of this Act; to inspect all books, papers, notes, bonds, or evidences of debt of such corporation, and all securi

ties; to ascertain the condition of every such corporation, its solvency, its ability to fulfill its obligations, and, if in their opinion it is deemed necessary, report its condition to the . Attorney-General as soon as practicable after such examination. SEC. 5. Such Commissioners must examine, under oath, any of the officers, agents, and servants of any such corporation, in relation to the affairs and condition of such corporation, and may administer such oath personally; and whoever shall neglect or refuse, after demand and notice thereof, and without justifiable cause, to appear, or testify under oath, before the said Commissioners in the discharge of their duties, shall be deemed guilty of misdemeanor, and on conviction thereof be punished by a fine not exceeding five thousand dollars, or by imprisonment in the county jail not exceeding one year, or by both such fine and imprisonment.

SEC. 6. If any Bank Commissioner shall have knowledge of the insolvency or unsafe condition of any corporation mentioned in this Act, and shall neglect to report the same, in writing, to the Attorney-General, as required by this Act, he shall on conviction thereof be punished by a fine not exceeding ten thousand dollars nor less than five thousand dollars, or by imprisonment in the county jail not less than one year nor more than two years, or by both such fine and imprisonment, and his office shall be declared vacant by the Governor, and a successor be appointed for the unexpired term.

SEC. 7. No corporation shall use the name or transact the business of a savings bank, or bank, or banking corporation, without the license provided for by section three of this Act; and any corporation violating this provision shall forfeit the sum of one hundred dollars per day during the continuance of the offense; and any person who enters upon, engages in, or carries on, or in any manner attends to the business or management of a savings bank, or bank, or banking corporation, doing business without such license, whether as manager, principal, agent, officer, employé, or otherwise, shall forfeit the sum of one hundred dollars for every day he so enters upon, engages in, or carries on, or attends to such business; and any violation of this section is also hereby declared to be a misdemeanor.

SEC. 8. Any corporation mentioned in section three of this Act, including banks in liquidation or insolvency, shall, when- ever required by the Board of Bank Commissioners, make a

report in writing to the Commissioners, verified by the oath of its president and its secretary, or cashier, or its two principal officers. Said report shall show the actual financial condition of the corporation making the report at the close of any past. day by the Commission specified, by stating:

First-The amount of its capital stock, and the number of shares into which it is divided; or, if not incorporated, the amount of capital actually paid in and by whom.

Second-The names of the directors, and the number of shares of stock held by each; or, if not incorporated, the names of each member of the firm and the amount of capital stock paid in by each.

Third-The total amount actually paid in, in money, by stockholders for capital stock, and the total amount of contingent fund and other reserve funds, if any.

Fourth-The total amount due to depositors.

Fifth-The total amount and character of any other liabilities it may have.

Sixth-The amount at which the lot and building, occupied by the bank for the transaction of its regular business, stands debited on its books, together with the market value of all other real estate held, whether acquired in settlement of loans or otherwise; the amount at which it stands debited on the bank books; in what county situated, and in what name the title is vested, if not in the name of the corporation itself.

Seventh-The amount loaned on real estate, specifying the amount secured on real estate in each county separately; also, specifying the name of the person in whose name the property is held in trust, or as security, in case it is held in any name other than that of the bank, and the instrument creating the security does not of itself disclose the name of the bank.

Eighth-The amount invested in bonds, designating each particular class, and the amount thereof.

Ninth-The amount loaned on stocks and bonds, designating each particular class, and the amount thereof.

Tenth-The amount of money loaned on other securities, with a particular designation of each class, and the amount loaned on each.

Eleventh-The actual amount of money on hand or deposited in any other bank or place, with the name of the place where deposited, and the amount in each place.

Twelfth-Any other property held or any amount of money

loaned, deposited, invested, or placed, not otherwise herein enumerated, with the place where situate, and the value of such property, and the amount so loaned, deposited, or placed.

The oaths of the officers to the statements above required shall state that they, and each of them, have a personal knowledge of the matters therein contained, and that they believe every allegation, statement, matter, and thing therein contained is true; and any willfully false statement in the premises shall be perjury, and shall be punished as such. The reports as provided for by this section shall by the Commissioners be required from each and every corporation herein mentioned at least three times in each year, and shall be transmitted to the Commissioners within five days ofter the receipt from them of a request or requisition therefor. [Amendment approved March 18, 1907; in effect immediately.]

SEC. 9. Any corporation mentioned in section three of this Act failing to furnish to the Bank Commissioners any report by them required under the provisions of this Act within the time herein specified, shall forfeit the sum of one hundred dollars per day during the time of such default.

SEC. 10. If the Bank Commissioners, on examination of the affairs of any corporation mentioned in section three of this Act, shall find that any such corporation has been guilty of violating its charter, the laws of this State, or any of the provisions of this Act, or is conducting business in an unsafe manner, they shall, by an order addressed to the corporation so offending, direct discontinuance of such illegal and unsafe practices, and a conformity with the requirements of the law and its charter, and of the provisions of this Act. And if such corporation shall refuse or neglect to conform with such requirements before the expiration of the time in the order specified, or if it shall appear to said Commissioners and they shall unanimously decide that it is unsafe for any such corporation to continue to transact business, it shall be the duty of the Commissioners immediately to take such control of such corporation, and all the property and effects thereof, as may be necessary to prevent waste or diversion of assets, and to hold possession of the same until the order of court hereinafter mentioned, and to immediately notify the Governor and the Attorney-General of their action; and it is hereby made the duty of the Attorney-General, upon receiving such notification, to immediately commence suit in