SEC. 8. The Act of March 20, 1905, entitled "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of Acts in conflict with this Act," and all other Acts or parts of Acts in conflict with this Act, are hereby expressly repealed.

DEPOSIT OF COUNTY AND MUNICIPAL MONEYS IN BANKS.

An Act to provide for and regulate the deposit of county and municipal moneys in banks and banking corporations, limiting the amount of public moneys that may be deposited therein, and providing a penalty for the illegal deposit and use thereof.

[Approved March 23, 1907.]

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

SECTION 1. All moneys belonging to any county or municipality within the State, may be deposited by any officer of such county or municipality having the legal custody of such county or municipal funds in any licensed national bank, or banks, within this State, or in any bank, banks or corporȧtions authorized and licensed to do a banking business, and organized under the laws of this State; provided, that such bank or banks in which such moneys are deposited shall furnish as security for such deposits, bonds of the United States, or of this State, or of any county, municipality or school district within this State, approved by the officer making the deposit and the District Attorney for the county or City Attorney for the municipality to which the deposit belongs. The market value of the bonds furnished as security, shall be at least ten per cent in excess of the amount of the deposit secured thereby; but the amount of the deposit shall in no case exceed the face value of the bonds furnished as security therefor; and provided, that such bank, or banks, shall pay a reasonable rate of interest, not less than two per cent per annum on the daily balances therein deposited.

SEC. 2. The rate of interest shall be fixed annually as herein provided in the month of January of each year on all deposits to be made for such year; provided, that the rate of interest for the year ending December thirty-first, nineteen hundred and seven, may be fixed as herein provided within ninety days after this Act goes to effect. The rate of interest shall be fixed in the case of counties, by the Treasurer, Auditor, and chairman of the Board of Supervisors, and in the case of municipalities by the Treasurer, Auditor, (or Clerk in municipalities having no Auditor) and chairman of the council or other governing body of such municipality: Said rate of interest shall be a reasonable rate and not less than two per cent per annum on the daily balances deposited; and the rate of interest so established for each year as herein provided, shall be the uniform rate of interest required from all banks receiving deposits from the county or municipality, for that year. Interest on all moneys deposited as herein provided for shall belong to the county or municipality represented by the officer making such deposit and shall be paid quarterly into the general fund of such county or municipality except where the law otherwise directs.

SEC. 3. It shall be the duty of the officer making the deposit, to receive from the bank in which the deposit is made, a receipt or receipts in duplicate showing the date and amount of deposit and rate of interest to be paid thereon, one copy of which said officer shall keep on file in his office and he shall file one copy with the Auditor of the county or Auditor of the municipality (or Clerk in municipalities having no Auditor) as the case may be.

SEC. 4. Every Treasurer shall keep a record in his office which shall be open to public inspection, showing at all times the amount of money on deposit and all banks in which the same is deposited, and dates of deposit. Also a record of all banks making application for the deposit of the public funds.

SEC. 5. The total amount of public moneys on deposit in any bank, shall not at any one time exceed fifty per cent of the paid-up capital stock of such depositary bank or banks. No officer shall have on deposit at any one time more than ten per cent of the public moneys under his control and available for deposit in any bank while there are other qualified banks requesting such deposits; provided, that no Treasurer of a

county, or municipality, shall be required to deposit public moneys in any bank outside of the county owning the money or in which the municipality is situated.

SEC. 6. The receipt issued by any bank for deposits made therein, together with the bonds held as security therefor, shall be held by the Treasurer making the deposit and be recognized and counted as cash to the amount recited in the receipt by the officers required by law to count the same.

SEC. 7. Deposits, with interest thereon, shall be subject to withdrawal on demand of the Treasurer making the same, or his successors in office, and any bánk receiving the deposit of public moneys, may at any time return the same to the public officer making such deposit, together with interest to date of return, and it shall be the duty of the public officer upon receiving the return of such deposit, to immediately return to such bank all bonds held as security for the deposit returned. When any officer withdraws his deposit he shall return, on demand of the bank, such bonds as were held as security for the deposit or portion thereof withdrawn.

SEC. 8. Should any bank fail to pay any public moneys held on deposit as herein provided, the officer making such deposit may, after ten days' written notice to such bank, proceed to sell at public or private sale, such of the bonds held by him as security as he may see fit; 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. The proceeds of such sale, after paying all expenses, shall be credited to the account of the bank which deposited the bonds as collateral. Any bank failing to make payment, may, at any time before the sale of the bonds is completed, stop such sale by repaying all the moneys deposited with it, together with any expense that may have been incurred by the officer making such deposit, as the result of such failure. Should the proceeds of any such sale fail to fully repay any deposit, the balance remaining unpaid may be collected in an action of law in the name of the officer making the deposit.

SEC. 9. Public officials shall not be responsible for any loss of public moneys resulting from the deposit thereof when made in accordance with the provisions of this Act. It shall be the duty of the officer making the deposit to safely keep all evi

dence of indebtedness issued by banks for deposits made therein, and bonds deposited for security and such public officer shall be responsible for such evidence of indebtedness, and for bonds held as security therefor, together with the interest thereon and the proceeds of any sale of such bonds; and the city, county or municipality for which said officer acts, shall be responsible to such bank for the safe return of the securities furnished by it to such officer.

SEC. 10. The expenses of transportation of moneys to or from the State, county or municipal treasuries to such depositaries shall be borne by such depositaries.

SEC. 11. The making of profit out of county, city, town or other public moneys, or using the same for any purpose not authorized by law by any officer having possession or control thereof, shall be a felony. Any violation of the provisions of this Act by a bank or a banking corporation, shall be punishable by a fine not exceeding five hundred dollars for each offense, and the officers of such bank or banking corporation and officer receiving such deposit shall be guilty of a felony.

SEC. 12. Nothing in this Act contained shall prevent any county or municipality within this State from buying bonds or otherwise investing its money in any manner now provided by law and nothing herein contained as to the disposition of interest on public moneys deposited shall apply to any money received or held by any county or municipality wherein any law provides for the payment of interest or profit thereon, into any particular fund.

SEC. 13. All Acts or parts of Acts in conflict with this Act are hereby repealed.

SEC. 14. This Act shall take effect immediately.

BUILDING AND LOAN ASSOCIATIONS.

BUILDING AND LOAN COMMISSIONERS.

An Act creating a Bureau of Building and Loan Supervision; providing for the appointment of administration officials therefor to be known as the Building and Loan Commissioners; prescribing their duties, powers and compensation; providing for a secretary, his powers and compensation; providing for the rental of offices for the use of the Bureau and for traveling and office expenses; providing a system for licensing building and loan and other associations, and for assessing and collecting the license fees necessary to meet the salaries and other expenses; providing a course of procedure where violations of law, or unsafe practices are found to exist, or are reported by the Commissioners to the Attorney-General; providing for involuntary liquidation by trustees, and proceedings in connection therewith; providing for exemption of property of associations in liquidation from attachments, executions and liens, pending liquidation; providing for and requiring associations to procure licenses, pay assessments levied for pro rata of salaries and expenses, and to make and file reports; providing penalties for violations of law and orders of the Commissioners; providing for succession in office, and repealing all Acts and parts of Acts in conflict herewith.

[Approved March 21, 1905. Amended March 23, 1907.] The people of the State of California, represented in Senate and Assembly, do enact as follows:

SECTION 1. There is hereby created a bureau, to be known and designated as the "Bureau of Building and Loan Supervision," with powers of supervision, examination and license of all building and loan associations, mutual loan associations, cooperative home associations, and all other corporations, asso