safe deposit and trust company." Such banks must have five or more directors. Their powers specified are: Ordinary banking; safe deposit business; to guarantee the payment of bonds and mortgages; to do a title insurance business, and "to accept and execute all trusts of every name and kind which may, with its consent, be imposed upon it by any person or corporation, whether the trust be that of guardian, executor, trustee, the committee of the estate of a non compos mentis, or any other trust, the said corporation being hereby invested with the power to act in such fiduciary capacity as fully as if the corporation were a person in being." Such corporation must be organized like other corporations, and must publish a statement in a local newspaper every six months. (Shannon's Code, 1896, §§ 2090-2105).

Chapter 44, Acts of 1901, provides that trust companies must, in July and January of each year, or within thirty days thereafter, publish in a newspaper in the county a statement of financial condition as of June 30 and December 31, respectively, next preceding. The form of this statement is to be determined by the Comptroller of the State.

Chapter 377, Acts of 1903, makes more detailed provisions regarding trust companies. Banks in counties of population from sixty to ninety thousand, organized for the purpose of conducting a savings, safe deposit and trust banking business, with a capital of $100,000 or more, "may be appointed to accept and execute trusts and agencies of any kind and character whatsoever", to which they may be appointed by persons, corporations, public or private, or executor, administrator, guardian (of estates only, not of persons) of infants, idiots, lunatics and other persons of unsound mind, receiver, commissioner, assignee or trustee for any person, firm, association, etc., attorney in fact or agent for the transaction of any business, management or sale of any property whatsoever, "in the same manner and to the same extent as natural persons." The capital of such companies shall be taken as the security for faithful performance of duty required by law, and no other security need be required, except in the discretion of the courts. Such corporations may act as depositaries for public funds and for funds in charge of persons acting in fiduciary capacities.

Trust funds must not be included in the assets of the company. They may be invested in bonds of the United States, of Tennessee and the other States, first mortgage bonds of any railroad, bonds of any county or municipal corporation, provided such bonds be worth par or more and have regularly paid dividends of not less than four per centum for the five years preceding, or in first mortgages on real estate appraised at least twice the amount loaned thereon, such mortgages to run for not more than ten years. The designation of an attorney in a will, and the right of heirs to select an attorney must be recognized. When acting as guardian, such company need render statements only every two years, instead of yearly, as is required of natural persons so acting.

The fees which may be charged for services in certain fiduciary capacities are specified in the statute.

Banks and trust companies in counties having a certain population and having a paid up capital of $100,000 or more, may deposit with the State Treasurer $25,000 in United States or Tennessee State bonds, and thereupon assume the trust duties and trusts permitted by their charters.

Under the general banking act of 1913 (Chapter 20, Acts of 1913), trust companies are included under the term "banks," and are subject to the provisions relating to all banks. They are subject to the supervision of the Superintendent of Banks, who must examine each company at least twice a year, and oftener if he deems it necessary, without giving previous notice. They must render to the Superintendent on his call, a report once each half-year, and these reports must be published in a local newspaper. Special reports may be called.

The capital required of all banks, including trust companies, is at least $7,500 in towns of less than 1,500 inhabitants; $10,000 in towns of from 1,500 to 5,000; $12,000 in cities of from 5,000 to 20,000; $25,000 in cities of from 20,000 to 40,000; $35,000 in cities of from 40,000 to 100,000; and $50,000 in larger cities. Existing banks may continue on present capital, but must devote earnings in excess of six per cent. for dividends to building up capital. The reserve required is ten per cent. of demand deposits, which may be on deposit with other banks. Loans may not be made to officers or employees except upon approval of the directors or finance committee. Loans to one person or interest may not exceed fifteen per cent. of the capital, surplus and profits, except upon approval of a majority of the executive or finance committee. Loans upon or the purchase of the company's own stock are prohibited, unless to prevent loss upon debts previously contracted, in which case the stock must be disposed of within six months.

TEXAS.

Five or more persons may incorporate a "banking and trust company." Articles of agreement must be filed with the Secretary of State. The corporation may not continue more than fifty years.

The law authorizes the establishment of banks of deposit or of discount, or both, having trust powers. The powers specified are: To exercise the powers of banks of deposit and discount; to act as fiscal agent of corporations, public and private; to act as transfer agent and registrar; to receive deposits of trust moneys, securities or other personal property; to loan money on real or personal securities; to hold such real estate as is needed in the transaction of the business, and such as is acquired in the satisfaction of debts due the company; but the latter may be retained not more than five years; to act as trustee under any mortgage or bond issue, "and accept and execute any other municipal or corporate trust not inconsistent with the laws of this State"; to accept

trusts for married women with respect to their separate property, and to act as agents in the management of same; to act under the appointment of court as guardian, receiver or trustee of the estate of any minor, the annual income of which shall not be less than $100; to act as depository of any moneys paid into court; to execute any legal trusts regarding the management of estates real or personal, from whatever source the trust may be received; to manage estates; "to purchase, invest in, guarantee and sell stocks, bills of exchange, bonds and mortgages and other securities"; to issue its own bonds and obligations; to act as executór, as administrator, as guardian of any infant, insane person, idiot or habitual drunkard, or as trustee for any convict in the penitentiary, under appointment of court.

The capital shall be not less than 50,000 in towns or cities of less than 20,000 inhabitants, and not less than $100,000 in larger cities, nor more than $10,000,000. The affairs of the corporation shall be managed by a board of directors not less than five nor more than twenty-five in number; elected annually unless the number exceeds five, in which case they are to be divided into three classes so that each shall serve three years, one-third retiring each year.

Banks and trust companies are under the supervision of the Commissioner of Banking and Insurance, who is required, through his examiners, to examine each company at least once in each quarter of each calendar year.

Reports to the Commissioner, in a form prescribed in the statute and by the Commissioner, must be made upon his call at least twice each year, and oftener at his discretion. Such statements must be published in a local newspaper, and must be posted in the banking house.

Trust companies may not loan to any one individual, company or corporation an amount greater than twenty-five per centum of the capital stock; or of the capital stock and surplus if the latter is equal to or in excess of fifty per centum of the capital. The discount of bills of exchange drawn against actually existing values and the discount of paper upon the collateral security of warehouse receipts covering products in store under certain conditions, are not considered as money borrowed. Trust companies may not engage in trade or commerce. The directors may declare dividends, if earned, every six months or oftener, but must first set aside ten per centum of the net profits to a surplus fund, until the same amounts to fifty per centum of the capital.

Funds in the charge of trust companies may be invested in loans secured by real estate or other sufficient collateral security, in public bonds of the United States or of this State, in the bonds of any incorporated city or county or independent school district in this State. Such corporations may own only such real estate as is required for the transaction of their business, and such as is acquired in the collection of debts; but the latter may not be retained more than five years. Stockholders are subject to double liability. The books and records of such corpora

tions must be kept open for the inspection of all persons interested. Trust companies having a capital of at least $100,000, and making a deposit of $50,000 with the State Treasurer shall be permitted to qualify as guardian, curator, executor, etc., without giving bond as such. Such deposit shall consist of cash, Treasury notes of the United States, or Government, State, county, municipal or other bond or bonds, notes or debentures, secured by first mortgages or deeds of trust, or mortgages or deeds of trust, or unincumbered real estate in the State worth at least double the amount loaned thereon, or such other first-class securities as the Superintendent of Banking may approve. This deposit shall be primarily liable for the obligations of such company acting in fiduciary capacities, "and shall not be liable for any other debt or obligation of the company until all trust liabilities have been discharged."

Corporations not organized under this act are forbidden to use the words "trust" or "trust company" in their titles; except that corporations already organized and authorized to use such terms in their titles may retain same by using thereafter the words "without banking privileges." Foreign corporations, other than National banks, are forbidden to do a business of banking and discount in this State.

Every banking corporation is required to maintain a reserve of at least twenty-five per centum of the aggregate amount of its demand deposits, ten per centum of which is to be actual cash in the bank. The reserve fund or any part thereof may be kept on hand or on demand deposit in any bank or banking association in the State of Texas or in any bank, banking association or trust company in another State approved by the Superintendent of Banking and having a paid-up capital of $50,000 or more; but the deposits in any one bank or trust company shall not exceed twenty per centum of the total deposits, capital and surplus of said bank.

Banks and trust companies maintaining or advertising a savings bank business or having the word "savings" as part of the corporate name, must maintain a separate savings department, whose assets and liabilities must be segregated from the other business of the company. This department must at all times maintain a reserve in actual cash of fifteen per cent. of its deposits. The remaining eighty-five per cent. may be invested in United States bonds, State bonds meeting certain requirements, bonds of municipalities, counties, etc., in Texas meeting stated requirements, first mortgage bonds of steam and electric railroads in Texas having income sufficient to meet charges, and first mortgage bonds on real estate in the State worth double the amount loaned thereA monthly statement of the assets and liabilities of this department must be made to the Commissioner, and a copy of same must be conspicuously posted in the banking office.

on.

Trust companies may at their option take advantage of the Bank Deposit Guaranty Law. Banks and trust companies may not loan upon their own stock, nor purchase same, except to prevent loss upon debts

previously contracted. They may not own more than ten per cent. of the capital stock of another bank or trust company, nor hold more than such amount of same as collateral.

(Vernon's Sayles' Annotated Civil Statutes, 1914, Title 14, especially articles 380-385, 431-444, 517a-574.)

UTAH.

"Loan, trust and guaranty associations" may be incorporated by three or more persons in the same manner as other corporations for pecuniary profit.

Powers specified: To do a title insurance business; to act as assignees, agents, receivers, guardians of the estates of minors and incompetent persons, to act as executors and administrators; "to execute trusts of every description not inconsistent with law"; to become sole security in cases where by law one or more sureties may be required; "to buy, sell r mortgage real estate or personal property, to loan money on real estate security or otherwise, to sell and assign mortgages and endorse negotiable instruments, and to make, execute and deliver bonds, promissory notes and bills of exchange"; to receive deposits of money; provided that, if such associations shall receive commercial or savings deposits, the liability of stockholders and the restrictions concerning the lending of its funds shall be the same as those for commercial or Savings banks respectively; to act as security for the faithful performance of any contract; to do a fidelity insurance business; but nothing in this chapter shall be construed as dispensing with the approval of such association as security by the court, officer or individual charged by law with the duty of approving such security. When acting under fiduciary appointments the capital of the corporation shall be held as security for the faithful performance of duty, and no bond for such purpose shall be required of it. The capital, paid up, must be at least $25,000, and in cities of the first class at least $100,000. The capital must be kept in money on hand, or on deposit in solvent banks, or invested in bonds of the United States or of this State, or of any county, municipality or school district thereof, or in first mortgages on real estate situated in Utah, worth at least twice the amount loaned thereon. Such corpora

tions are under the same provisions regarding reports and examinations as banking corporations. They must make to the Secretary of State, who is ex-officio Bank Commissioner, not less than four reports each year, and must be examined by him once a year or oftener.

The reserve required of commercial banks is fifteen per cent. of demand deposits, unless the bank is located in a city of more than 50,000 population, in which case the reserve required is twenty per cent. Oneeighth of the reserve must be in cash. Savings banks must carry a reserve of ten per cent. of deposits, of which one-fourth must be in cash. Companies doing both lines of business must carry reserves as above for each line of business.