to time, as may be necessary to compel a full compliance with the provisions thereof, and may, in this behalf, revoke any and all licenses heretofore or hereafter granted. In construing the provisions of this section, net surplus shall be treated and considered as part of the paid-in capital. [New section approved March 18, 1907; in effect immediately.]

SEC. 20. Every person engaged for himself, or any person being the cashier, manager or agent of two or more persons, not incorporated, engaged in the business of banking in this State, or publicly receiving money on deposit, must apply for and take out a license for such privilege, and shall be subject to the same requirements, limitations, liabilities, penalties and provisions as are in this Act provided for incorporated banks or banking corporations, so far as the same appertain to said business. [Amendment approved March 20, 1905; in effect immediately.]

SEC. 21. The use of the word "pank," or any other word or terms denoting or implying the conduct of the business of banking, or the use of the word "savings," alone or in connection with other words denoting or implying the conduct of the business of a savings institution, or a savings and loan society, is hereby prohibited to all persons, firms, associations, companies, or corporations other than those subject to the supervision of the Bank Commissioners or required by this Act to report to them, and no license as in this Act provided shall be issued by the Commissioners to any corporation that does not receive money from the public as deposits in manner customary with commercial or savings banks. Any person, firm, association, company, or corporation not subject to the supervision of the Bank Commissioners or not required by this Act to report to them, making use of terms implying conduct of a bank, savings bank, or savings and loan society by means of signs, advertisements, letter heads, bill heads, blank notes, blank receipts, certificates, circulars, or any written or printed or partly written and partly printed paper whatever, having thereon any artificial or corporate name or other word or words indicating that such business is the business of a bank, savings bank, or savings and loan society, shall forfeit for each day the offense is continued the sum of one hundred dollars, to be recovered as provided in this Act.

SEC. 22. The Commission hereby established shall be the legal successor of the Bank Commissioners created by the Act

creating a Board of Bank Commissioners, approved March 30, 1878, and the Acts amendatory thereto, and shall be entitled to have and receive all the books, records and other property acquired by and belonging to the said Bank Commissioners and shall be substituted for and continue in the stead and place of said Bank Commissioners [in] all suits, actions and proceedings at law now pending wherein said Bank Commissioners are a party.

SEC. 23. No bank, banking corporation, person, or partnership, shall make any loan or discount on the security of the shares of its own capital stock, nor be the purchaser of any such shares, unless such security or purchase shall be necessary to prevent loss upon a debt previously contracted in good faith; and stock so purchased or acquired shall, within six (6) months from the time of its purchase, be sold at public or private sale; and in default thereof, after demand by the Bank Commissioners, the charter of such corporation shall be deemed forfeited and the Bank Commissioners may institute liquidation proceedings , against said corporation, as is provided in section ten of this Act. [Amendment approved March 29, 1905; in effect immediately.]

SEC. 24. Every banking corporation, except savings banks, and every person and partnership doing a banking business, shall at all times have on hand in cash an amount equal to at least twenty (20%) per cent. of its demand or immediate liabilities and time certificates of deposit, if its principal place of business is located in any city of the State having a population of two hundred thousand (200,000) and over; and an amount equal to at least fifteen (15%) per cent. of its demand or immediate liabilities and time certificates of deposit, if its principal place of business is located elsewhere in the State. One half of such cash reserve may consist of moneys on deposit subject to call with any solvent bank or trust company. Cash shall include specie, national bank notes, legal tender notes, and all paper obligations of the United States circulating as money, and exchanges for clearing-house associations. [Amendment approved March 20, 1905; in effect immediately.]

SEC. 25. No corporation which has or shall be incorporated under the general laws of this State authorized by its articles of incorporation to act as executor, administrator, guardian, assignee, receiver, depositary or trustee shall be per

mitted to act or be appointed as such unless it shall have a paidup capital of not less than one hundred thousand ($100,000) dollars, of which one hundred thousand ($100,000) dollars shall have been actually paid in in cash. [New section; approved March 20, 1905; in effect immediately.]

Sections 7 and 8 of the Act approved March 20, 1905, read as follows:

SEC. 7. All Acts or parts of Acts in conflict with this Act are hereby repealed.

SEC. 8. This Act shall take effect immediately.

DEPOSIT OF STATE MONEYS IN BANKS.

An Act to authorize the deposit of State moneys in banks in this State, and to repeal all Acts or parts of Acts in conflict with this Act.

[Approved February 28, 1907.]

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

SECTION 1.. All moneys in the State treasury belonging to the State not immediately required to meet current expenditures may be deposited by the State Treasurer to the credit .of the State in such State or National bank, or banks, in the State, as the Treasurer, with the approval of the Governor and State Controller, shall select for the safe-keeping of such deposits, and any sum so deposited shall be deemed to be in the State treasury; provided, that the bank or banks in which such money is deposited shall furnish security as hereinafter provided; and provided further, that such depositary bank or banks be selected from those agreeing to pay the highest rate of interest, not less than two per cent per annum, for such deposits, as may be determined by bids to be submitted at such times and in such manner, as the Treasurer, with the approval of the Governor and State Controller, shall direct; provided, that not more than one tenth of the aggregate amount of State moneys available for deposit and on deposit shall be deposited in any one bank; and provided further, that such deposit shall not exceed twenty-five per cent of the paid-up capital, exclusive of reserve and surplus, of any depositary bank. Any and all

bids may be rejected by the Treasurer, with the approval of the Governor and State Controller, and new bids asked for. The expense of transportation of moneys to and from the State treasury to such depositaries shall be borne by such depositaries. Said deposits, with interest thereon, shall be subject to withdrawal at any time upon the demand of the State Treasurer, or upon presentation of a certificate of deposit properly indorsed.

SEC. 2. The interest to be paid by any such depositary bank shall be on the average daily balances of the State moneys kept on deposit therewith, and shall be paid and credited to the State monthly on the first day of each and every month, and such interest shall accrue to the General Fund of the State treasury; provided, that if any moneys belonging to the State School Fund or the State School Land Fund shall at any time be deposited under the provisions of this Act, the interest received thereon shall be paid into the State School Fund.

SEC. 3. For the security of the funds deposited by the State Treasurer under the provisions of this Act, there shall be deposited with the Treasurer bonds of the United States, or of this State, or of any county, municipality or school district within this State, which bonds shall be approved by the Governor, Controller and Treasurer, to an amount in value at least ten per cent in excess of the amount of the deposit with such bank or banks; and if in any case, or at any time, such bonds are not deemed satisfactory security to the Governor, Controller and Treasurer, they may require such additional security as may be satisfactory to them. Said bonds or any part thereof may be withdrawn on the written consent of the Governor, Controller and Treasurer; provided, that a sufficient amount of said bonds to secure said deposits shall always be kept in the treasury; and in the event that said bank or banks of deposit shall fail to pay such deposits or any part thereof on the demand of the State Treasurer, or upon any presentation of a certificate of deposit properly indorsed, then it shall be the duty of the State Treasurer to forthwith convert said bonds into money and to disburse the same according to law; provided, however, that he shall sell no bonds for less than their face value except at public sale after ten days' printed notice in some newspaper of general circulation published in the county where the sale is to take place.

SEC. 4. The Treasurer shall take from such depositary or depositaries a written contract, in duplicate, setting forth the conditions and terms upon which the funds of the State are deposited therewith, one of which shall be filed with the Controller. One provision of said contract shall be that each depositary shall at the end of each month render to the Treasurer a statement in duplicate showing the daily balances or amount of money of the State held by it during the month and the amount of the accrued interest thereon separately, one of which shall be filed by the Treasurer with the Controller. The Treasurer shall annually on the first day of July furnish each depositary bank with a statement showing the amount and description of the bonds on deposit with him by such bank to secure State deposits.

SEC. 5. The Treasurer, with the approval of the Governor and Controller, shall, if in his judgment it shall appear necessary for the security of the State, require said banks of deposit to give an indemnity bond, the sureties on which shall not be interested as stockholders in said bank or banks, to be approved by the Governor, Controller and Treasurer, to secure the State against loss by any depreciation in value that may occur in such bonds held by him as security for the safe-keeping and prompt payment of the State moneys in such depositaries.

SEC. 6. The State Treasurer shall not be responsible for any moneys deposited in a bank or in banks under the provisions of this Act while the same remain there deposited with the consent of the Governor and Controller; but the Treasurer shall be chargeable with the safe-keeping, management and disbursement of the bonds and certificates of deposit deposited with him as security for deposits of State moneys, and with the interests thereon, and the proceeds of any sale under the provisions of this Act.

SEC. 7. At the time of depositing State moneys in any bank designated as a depositary the Treasurer shall take a certificate or certificates of deposits made payable to the Treasurer of State in such sum or sums as he shall deem advisable. Such certificate or certificates of deposit in the possession of the Treasurer shall be deemed and counted as cash by the State Board of Examiners. Controller's warrants drawn upon the State treasury may be paid by such certificates of deposit when properly indorsed by the Treasurer the same as in cash.