exceeding one and one half (12) per centum per month. It may also charge for the first examination of the property to be mortgaged and for drawing and filing the necessary papers, and for all other expenses, a sum not exceeding five dollars ($5.00) if a loan shall actually be made; but no further charge for examination of the property or for drawing or filing papers, or for any services or expenses, or upon any pretext whatsoever, beyond the said charge for interest or discount, shall be made upon any renewal or extension of the loan, or any transfer or change of the loan, or upon any other occasion, within one year from the date of the original loan, or oftener than once in each period of twelve months thereafter; provided, however, it shall be lawful to charge for any fire insurance that may be at any time effected. It may also charge and receive upon each loan made by it upon the pledge of personal property, which charge shall include all services of every character in connection with said loan, except upon the sale of the security at public auction, as hereinafter provided, interest or discount at a rate not exceeding one and one half (12) per centum per month; provided, however, that all loans shall be subject to one month's interest and no loan shall be settled at a less charge than fifteen cents. A charge of one half (2) of one per centum per month additional may be made upon pledges for storage, burglary and fire insurance. In case

of loss by fire or theft, such corporation shall not be liable, however, for more than the amount loaned, and twenty-five (25) per centum thereof in addition.

SEC. 7. Such corporation shall give to each pledgor a memorandum or ticket inscribed with the name of the corporation, mentioning the article or articles, security or securities, pledged, the name of the pledgor, the amount of the loan, the rate of compensation, the date when made, the date when payable, the page of the book where recorded, and a copy of section six (6) and eight (8) of this Act.

SEC. 8. Property pledged to such corporations shall not be sold prior to six (6) months after the day fixed in the contract for payment, and all sales shall be at public auction, and notice of any such sale shall be published at least five (5) days previous thereto in a daily newspaper printed in the city, or city and county, in which any such corporation is located. If upon the sale of any such property at public auction there be

any surplus left, after paying the cost of advertising and sale, and the amount of the loan and interest due thereon, the same shall be paid over to the pledgor or his legal representative or assigns on demand, any time within two years after such sale. It shall not be necessary for such corporation to sell at public auction any savings bank deposit book pledged for a loan, but the corporation may collect the money due thereon or so much thereof as may be necessary to pay the debt, in such manner and at such time as in the judgment of the directors of such corporation will best serve the interest of all parties, holding the net surplus, if any, for the owner, his legal representative or assigns. Loans on pledges may be renewed from time to time, but in no case longer than one year.

SEC. 9. A corporation organized under this Act shall be authorized to borrow money in any amount to be used in its business not exceeding in the aggregate the amount of its capital stock.

SEC. 10. Such corporation shall file with the Board of Bank Commissioners, during the months of January and July of each year, a statement, under oath, of the condition of such corporation at the close of business on the thirty-first day of December, and the thirtieth day of June, respectively next preceding, showing its actual financial condition. The said statement shall also be in such form, and contain such reports, returns, and information as to the affairs, business, condition, and resources of the corporation, as the said Commissioners may from time to time prescribe and require.

SEC. 11. The said Board of Bank Commissioners shall have access to the vaults, books, and papers of any such corporation, and it shall be their duty to inspect, examine and inquire into its affairs and take proceedings in regard to it, in the same manner and to the same extent as if said corporation were a savings bank or a banking corporation.

SEC. 12. No person, firm or corporation, other than corporations organized pursuant to this Act shall, directly or indirectly, charge or receive any interest, discount or consideration greater than at the rate of one and one half (12) per centum per month upon the loan, use or forbearance of money, goods or things in action, less than three hundred dollars ($300.00) in amount or value, or upon the loan, use or sale of personal credit in anywise, where there is taken for such loan, use or

sale of personal credit, any security upon any upholstery, furniture or household goods, oil paintings, pictures or works of art, pianos, organs, musical instruments, or sewing machines, plate or silverware, iron or steel safes, professional libraries, or office furniture or fixtures, instruments of surveyors, physicians, or dentists, printing presses or printing material, wearing apparel, diamonds, watches or jewelry. The foregoing prohibition shall apply to any person who, as security for any such loan, use or forbearance of money, or for any such loan, use or sale of personal credit, as aforesaid, makes a pretended purchase of property from any person, or who, by any device or pretense of charging for his services, or otherwise, seeks to obtain a larger compensation in any case hereinbefore provided for. Any person violating the foregoing prohibition shall be guilty of a misdemeanor and is punishable by a fine of one hundred dollars ($100.00) for the first offense, and by a like fine and imprisonIment in the county jail for thirty days for the second and each subsequent offense; and further, the interest on any amount loaned shall be forfeited to the borrower. But this section shall not apply to licensed pawnbrokers, making loans upon the actual and permanent deposits of personal property, excepting those charging unlawful rates of interest, nor affect in any way the validity or legality of any loan of money or credit exceeding three hundred dollars ($300.00) in amount.

SEC. 13. Any corporation organized under this Act which shall violate the provisions of the second section hereof, shall be liable to a penalty of one hundred dollars ($100.00) for each and every day of the continuance of such violation; and any corporation which shall willfully violate any of the provisions of any other section of this Act, by which any person shall suffer or sustain loss or damage, shall forfeit its rights to do business, and the Attorney-General of this State shall take the necessary legal measures to wind up and discontinue its business. Any director, officer or employé of any corporation organized under this Act who shall charge, take or collect or receive, any compensation on a loan beyond or in excess of the charges herein allowed, shall be guilty of a misdemeanor and be fined not to exceed one hundred dollars ($100.00) or be imprisoned in the county jail for not more than six (6) months, or both. SEC. 14. No such corporation shall, in any year, declare or pay dividends on its capital stock amounting to more than six

(6) per centum. After any such corporation shall have accumulated a surplus or risk fund amounting to fifty (50) per centum of its capital, the Board of Bank Commissioners, upon ascertaining that said corporation has, during the previous calendar year, made a net profit amounting to more than six (6) per centum on its capital, shall have authority to make an order reducing the rates of interest, discount and charges which said corporation may lawfully charge and receive upon loans, to such rates as will, in the judgment of said Commissioners, produce a net return of six (6) per centum on its capital stock. It shall be stated in said order when it shall take effect, which shall not be less than four months after it is made, and it shall continue in force until revoked.

SEC. 15. Such corporation shall pay annually in advance license fees, as follows: To the Treasurer of State, who shall pay the same into the "Bank Commissioners' Fund," the sum of fifty dollars ($50.00), to the Treasurer of the city, or city and county, in which such corporation is located, the sum of one hundred and fifty dollars ($150.00). This to be in lieu of all other licenses.

SEC. 16. This Act shall take effect and be in force from and after its passage.

An Act fixing the rates of interest and charges on loans upon chattel mortgages on certain personal property, and prescribing penalties for the violation of the Act.

[Approved March 20, 1905.]

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

SECTION 1. It shall not be lawful for any individual, partnership, association or corporation lending money upon chattel mortgages, where there is taken for such loan any security upon any upholstery, furniture or household goods, oil paintings, pictures or works of art, pianos, organs or sewingmachines, iron or steel safes, professional libraries or office furniture or fixtures, instruments of surveyors, physicians or dentists, printing presses or printing material, to have or charge for the use of money so loaned more than the rate of one and one half per cent per month interest thereon, and that no additonal sum, either in the way of bonus or otherwise, shall be required or exacted of the borrower or borrowers; and

further, that no charge for examination or valuation of property offered, insurance of same, and preparation, execution and recording of necessary papers shall be imposed, except as follows: For examination of valuation of property offered for mortgage and preparation of papers (both included), no greater sum than five ($5.00) dollars where the amount loaned does not exceed three hundred ($300.00) dollars. For necessary affidavits, recording of papers, and fire insurance premiums, the amounts actually to be paid for same; provided, that the foregoing charges may be deducted from the principal of the loan when the same is made; and provided further, that in no case shall it be lawful to deduct interest in advance, nor make any charge for extensions of loans, nor to divide or split up loans under any pretense whatsoever for the purpose of requiring or exacting any other or greater charges than prescribed herein.

SEC. 2. Any individual and any officer of any association or corporation, who shall violate any of the provisions of this Act, shall be guilty of a misdemeanor, and shall be fined $100.00 for the first offense, and a like fine and imprisonment in the county jail for thirty days for the second and each subsequent offense; and further, the mortgage or other instrument of security given for any loan shall become null and void as to the interest to be paid thereunder.

ANNUAL LICENSE TAX ON CORPORATIONS.

An Act relating to revenue and taxation, providing for a license tax upon corporations, and making an appropriation for the purpose of carrying out the objects of this Act.

[Approved March 20, 1905.]

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

SECTION 1. No corporation heretofore or hereafter incorporated under the laws of this State, or any other State, shall do or attempt to do any business by virtue of its charter or certificate of incorporation, in this State, without a State license therefor.