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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 “bank,” 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. ny 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 20, 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, depository or trustee shall be permitted 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.



BUILDING AND LOAN COMMISSIONERS. An Act creating a Bureau of Building and Loan Super

vision; 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 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.)

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, coöperative home associations, and all other corporations, associations and societies, whenever, wherever and however formed, which, in the judgment of the administration of said Bureau, are based, or are operating on plans or methods similar to building and loan associations as defined in section six hundred and forty-eight of the Civil Code; it is also charged with the enforcement of all laws designed for the formation, government or operation, in this State, of any such association, corporation or society.

SEC. 2. The administration of said Bureau shall be vested in two commissioners, to be known and designated as the “Building and Loan Commissioners,” who shall be appointed by the Governor (except as herein provided) and commissioned to hold office for the term of four years and until their successors shall be appointed and have qualified. They must be citizens of this State and residents of different counties; and they must not be in any way connected with any association, corporation or society coming under their supervision. They shall be authorized and empowered to appoint a secretary, with powers of examination the same as their own, who must be a practical, skilled accountant, fully conversant with building and loan accounts.

SEC. 3. The Commissioners shall each receive a salary of twenty-four hundred dollars per annum, and their secretary shall receive a salary of not exceeding eighteen hundred dollars per annum. There shall also be allowed and paid the necessary traveling expenses of the Commissioners and their secretary, not to exceed the sum of eight hundred dollars per annum. The Commissioners shall procure and have an office in the City of San Francisco, for which there shall be allowed and paid a rental of not exceeding fifty dollars per month, and such office shall be kept open for business, every business day, during such hours as are commonly observed by the banks of that city as banking hours; they may also provide such fuel, stationery, printing, postage, office help and other necessary conveniences as may be requisite in such office, at a cost not to exceed, in the aggregate, the sum of five hundred dollars per annum. All said salaries and expenses shall be audited and paid in the same manner as the salaries and expenses of other State officers.

SEC. 4. Before entering upon their respective duties the Commissioners must each execute an official bond in the sum of five thousand dollars and the secretary a like bond in the sum of two thousand dollars, and each must take the oath of office as prescribed by the Political Code for State officers in general.

SEC. 5. It shall be the duty of the Commissioners to furnish to all associations, corporations or societies, which, in their judgment, legally come under their jurisdiction, and that have otherwise complied with the requirements of law, a license authorizing them to transact business for one year from the date of said license; to receive and place on file in their office the annual or other reports required by law to be made by building and loan associations or other corporations or societies licensed by them; to supply each with blank forms for such statements; and to make, on or before the first day of October in each year, a tabulated report to the Governor of this State, showing the condition of all such associations, corporations or societies reporting to them, with such recommendation as they may deem proper, accompanied by a detailed statement of all moneys received by them since their last report, and the disposition thereof.

SEC. 6. It shall be the duty of one or both of the Commissioners, in person, at least once in each year, without previous notice, to visit and examine into the affairs of every such association, corporation or society licensed by them, incorporated or doing business in this State; on such occasions they shall have free access to all the books, records, securities and papers of every such association, corporation or society and shall first count the cash and check the bank balance of such corporation or association with the proper amount of funds as shown by the books to be on hand and at the date and hour of such examination, and shall then examine and verify the books, accounts, and securities, and, so far as possible and consistent, the values of all property owned or held as collateral security for moneys loaned, and otherwise use reasonable diligence to ascertain the financial condition and solvency thereof. They and their secretary shall have power to administer oaths in the line of duty, and to examine under oath the officers, employés and agents, or the custodian or receiver, relative to any or all the business thereof. The Commissioners or their secretary or representative shall receive for any examination into the books and affairs of any such association, corporation or society formed outside of the State of California and applying for a license to do business in this State, heir reasonable expenses, which shall be paid by the association, corporation or society so examined; provided, that

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