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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, whenever required by the Board of Bank Commissioners, make a

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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 the Attorney-General, upon receiving such notification, to immediately commence suit in

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the proper court against such corporation, and all the directors or trustees thereof, to enjoin and prohibit them from the transaction of any further business. If upon the hearing of the case the court shall find that such corporation is solvent and may. safely continue business, it shall dismiss the action, and order' that the corporation be restored to the possession of the property, but if

court shall find that it is unsafe for such corporation to continue business, that such corporation is insolvent, said court shall by its decree order such corporation into involuntary liquidation, and shall issue the injunction applied for, and shall cause the same to be served according to law, and shall order the Commissioners to surrender the property of the corporation in their possession to a receiver appointed by the court for the purpose of liquidation in such proceeding, under the orders and direction of the court. The issuance of the injunction hereinbefore provided for shall, by operation of law, dissolve any and all attachments levied upon any property of such corporation within one month next preceding the date of the notification by the Commissioners to the Governor and the Attorney-General as provided for in this section; and no attachment or execution shall, after the issuance of such injunction and during the process of liquidation, be levied upon any property of such corporation, nor shall any lien be created thereon. If a receiver be appointed, before surrendering to him the property of the corporation for purposes of liquidation, the person named as receiver shall execute to the people of the State of California, an undertaking, with sufficient sureties, in an amount to be fixed by the court, that he will well and truly perform all the duties devolving on him by reason of such receivership, and that he will faithfully discharge the duty of receiver in the proceeding, and obey the orders of the court therein. Every receiver appointed under the provisions of this section shall make report of the condition of the affairs under his charge to the Bank Commissioners in the same manner as the solvent banks mentioned in this article are, by law, required to do, and, in addition thereto, shall state the amount of dividends paid, debts collected, and the money realized on property sold, if any, since the previous report. The Bank Commissioners shall have the power, and it is hereby made their duty, to examine the condition of the affairs of every such corporation in liquidation, in the same

as in case of solvent banks, businesses, and institutions, and they shall have a gen

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eral supervision of the affairs of such corporation in liquidation. They shall have the power to limit the number of employés necessary to close up the business of any such corporation in liquidation, and also to limit the salaries of the same, and shall do all in their power to make such liquidation as economical and as expeditious as the interests of the creditors, depositors, and stockholders will admit. If any officer or employé of any association or corporation solvent, insolvent, or in liquidation, or if any other person, shall refuse to comply with the provisions of this section, or disregard or refuse to obey the directions of said Bank Commissioners, given in accordance with the provisions of this Act, such person, officer, or employé shall be punished by a fine of not exceeding five thousand dollars or by imprisonment in the county jail not exceeding one year, or by both such fine and imprisonment. When the receiver herein provided for shall have been appointed and qualified, the duties of the Attorney-General shall end.

The Bank Commissioners shall, by a resolution entered upon its minutes, concurred in by at least three members, have power to employ legal counsel for any of the purposes mentioned in this section or to enforce any of the penalties prescribed by this Act, without the consent of the Attorney-General, the expense thereof to be a charge against the individual bank concerning which said services are required, and if more than one bank, then pro rata among such banks.

SEC. 101/2. When the Bank Commissioners shall have taken control of a bank, banking company or banking corporation, with possession of its property and assets, pursuant to the provisions of the preceding section, they shall have full power to sell any portions which they deem perishable, to realize on securities where they deem depreciation of value to be imminent, to preserve liens of any and every kind, protect the property from waste, dissipation, and tax liens and in this behalf they shall have all the powers of trustees of an implied trust, otherwise, they shall preserve all the property intact, so near as may be, until the final determination of the action in the preceding section provided. [New section ; approved March 18, 1907 ; in effect immediately.]

SEC. 11. The Bańk Commissioners shall each receive a salary of three thousand six hundred dollars per annum, and necessary traveling expenses, not to exceed, for the four Commissioners, the sum of five thousand dollars per annum, to be

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