until their successors have been elected and qualified, unless sooner removed by the board of directors. The board shall require the cashier, and any and all officers and employees of the bank, having care of the funds, to give a good and sufficient bond to be approved by them. The board of directors shall hold at least four (4) regular meetings each year, and at such meetings a thorough examination of the books, records, funds and securities held by the bank or trust company, shall be made and recorded in detail upon its record book.

False oath perjury, sec. 660.

The president and receiving teller of an incorporated bank acting within the scope of their authority are agents of the corporation, and not of each other, and though the president has larger powers than the teller, and may direct his acts, the president is in no sense the principal, but his acts, within the scope of his powers, are the acts of the corporation. Ex Parte Rickey, 31 Nev. 82.

The president of an incorporated bank may be authorized by the directors thereof to do anything within the authority of the bank's charter, except the positive requirements that are personal, and cannot be delegated; and, when he goes beyond the scope of his usual authority, it must be shown in some way that his act was authorized by the directors. 82.

626. Bank closed when officers violate law.

Idem,

SEC. 11. The violation of any of the provisions of this act by the officers or directors of any bank, organized or existing under the laws of this state shall be sufficient cause to subject the said bank or trust company to be closed and liquidated and for the annulment of its charter.

In Golden v. District Court, 31 Nev. 250, it was held that in a proceeding by stockholders to appoint a receiver for a bank and to enjoin its further operation under sec. 94 of the general incorporation act of 1903 (sec. 1195, infra.) the directors must be made parties.

In State v. State Bank and Trust Co., 31 Nev. 456, it was held that the superseded act of March 26, 1907 (Stats. 1907, p. 232, c. 119), sec. 10, providing that, on the determination

by the bank commissioners that it is unsafe for a bank to continue business, they shall order the bank examiner to take possession of its property till the court makes an order, and the attorney-general shall bring action to enjoin it from transacting business, and if on the hearing the court finds it solvent, it may dismiss the action, and order the bank restored to possession of its property, did not confer judicial power on an executive board.

627. Stockholders individually liable.

SEC. 12. The stockholders of any bank organized under this act, shall be individually liable to the creditors thereof, equally and ratably, and not one for another, in addition to the amount of stock owned by them, in a sum equal to the par value of such stock and no more.

628. Bank not to engage in trade.

SEC. 13. No bank shall employ its moneys, directly or indirectly, in trade or commerce by buying or selling goods, chattel wares or merchandise, and shall not invest any of its funds in the stock of any other bank or trust company or corporation, nor make any loans or discounts upon the security of the shares of its own capital stock, nor be the purchaser or holder 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 twelve months from the time of its purchase, be sold or disposed of at public or private sale; after the expiration of twelve months any such stock shall not be considered as part of the assets of any bank or trust company; provided, that it may sell or become the owner of any personal property which may come into its possession as collateral security for any debt or obligation due it, according to the terms of any contract depositing such collateral security, and if there be no such contract then collateral security may be sold in the manner provided by law.

629. Available funds-Per cent must be on hand-When bank is deemed insolvent.

SEC. 14. Every bank doing business under the laws of this state shall have on hand in available funds an amount equal to fifteen per cent of its entire deposits; two-thirds of such amount may consist of balances due from

good, solvent banks, selected from time to time, with the approval of the bank examiner, and one-third shall consist of actual cash; provided, that any bank that has been made the depositary for the reserve of any other bank or banks shall have on hand in the manner provided herein twenty-five per cent of the deposits. Whenever the available funds in any bank shall be below the required amount, such bank shall not make any new loans or discounts otherwise than the discounting or purchasing of bills of exchange, payable at sight; nor make any dividends of its profits until the required proportion between the aggregate of its deposits and its lawful money reserve shall have been restored and the bank examiner shall notify any bank whose lawful money reserve shall be below the amount required to be kept on hand, to make good such reserve, and if such bank shall fail to do so for a period of sixty days after such notice, it shall be deemed to be insolvent and the bank examiner may take possession of the same and proceed in the manner provided in this act, relating to insolvent banks. The bank examiner may refuse to consider, as a part of its reserves, balances due from any bank which shall refuse or neglect to furnish him with such information as he may require from time to time, relating to its business with any other bank doing business under this act, which shall enable him to determine its solvency; provided, that all banks doing a savings bank or trust company business, but which do not transact a general banking business, shall be required to keep on hand at all times, in available funds, a sum equal to ten per cent of their deposits, one-half of which may consist of balances due from good solvent banks.

630. Borrower's liability restricted.

SEC. 15. The total liability to any bank of any person, company, corporation or firm for money borrowed, including in the liability of the company or firm, the liabilities of the several members thereof, shall not at any time exceed twenty-five per cent of the capital stock and surplus of such bank, actually paid in, but the discount of bills of exchange drawn in good faith against actual existing values, as collateral security, and a discount or purchase of commercial or business paper, actually owned by the persons, shall not be considered as money borrowed.

631. False statements, how punished.

SEC. 16. Every officer, director, proprietor, partner, agent or clerk of any bank doing business under the laws of the State of Nevada, who knowingly or willingly subscribes to, or makes any false report or makes any false statement or entries in books of such bank, or knowingly subscribes to or exhibits any false writings on paper with the intent to deceive any person or persons as to the condition of such bank, shall be deemed guilty of a felony, and shall be punished by a fine not to exceed one thousand dollars or by imprisonment in the state prison not to exceed five years, or by both such fine and imprisonment.

632. No proprietor, officer or employee to endorse loans.

SEC. 17. It shall be unlawful for any director, proprietor, partner, officer or employee of any bank or trust company to become an endorser or surety for loans to any other person, or in any manner become obligor for money borrowed of or loaned by such bank. The office of any director, officer or employee, who act in contravention to the provisions of this section, immediately thereon becomes vacant, and no such director, officer or employee shall be elected or appointed to such vacancy while such indebtedness exists. 633. No director, officer or employee to borrow without approval of the majority of board.

SEC. 18. It shall be unlawful for any director, officer or employee of any bank directly or indirectly, for himself or as the agent of others, to borrow

money from such bank or trust company, unless he gives good and sufficient security for the repayment of such loan, which loan and security must be approved by a majority vote of the directors, in regular or in special meeting assembled, the applicant not voting, and all the proceedings relating thereto shall be recorded at length in the records of the bank.

634. Insolvent bank not to receive deposits-Directors and officers individually responsible.

SEC. 19. It shall be unlawful for any president, director, manager, cashier, or other officer or employee of any banking institution, or proprietor of, or partner in any bank, to assent to the reception of deposits or the creation of debts by such banking institution after he shall have had knowledge of the fact that it is insolvent or in failing circumstances, and it is hereby made the duty of every such officer, manager, proprietor, or agent of, or partners in such banking institution to examine into the affairs of the same and if possible to know its condition, and upon the failure of any such person to discharge such duty, he shall for the purpose of this act, be held to have had knowledge of the insolvency of such bank or trust company, or that it was in failing circumstances. Every person violating the provisions of this section shall be individually responsible for deposits so received, and all such debts so contracted; provided, that any director who may have paid more than his share of the liabilities mentioned in this section, may have a proper remedy at law against such other persons as shall not have paid their full share of such liabilities, and every person knowingly violating the provisions of this section, or who shall be accessory to, or permit or connive at the receiving or accepting of any such deposits, shall be guilty of a felony and upon conviction thereof, shall be punished by a fine not exceeding five thousand dollars, or by imprisonment in the state prison not exceeding five years, or by both such fine and imprisonment.

See Ex Parte Smith, 33 Nev., 111 P. 930.

635. Penalties-Misdemeanor, when-Felony, when.

SEC. 20. An officer, agent, teller, or clerk of any bank, and every individual banker or agent, and any teller, clerk or agent of an individual banker who receives any deposit, knowing that such bank or banking institution or banker is insolvent, is guilty of a misdemeanor, if the amount of such deposit is less than thirty dollars; if the amount or value of such deposit is fifty dollars, or more, such person shall be guilty of a felony, punishable by imprisonment for not less than one nor more than five years, or by fine of not less than five hundred nor more than five thousand dollars, or by both such imprisonment and fine.

See secs. 459, 460, Crimes Act, secs. 6724, 6725, infra.

See Ex Parte Rickey, 31 Nev. 82, 100 P. 134.

636. Bank to report quarterly or oftener-Sworn report to be published— Special reports, when.

SEC. 21. Every bank shall make at least four reports each year, and oftener if called upon, to the bank examiner, according to the forms which may be prescribed by him verified by the oath or affirmation of its president, vice-president or cashier, and attested by the signatures of at least two of the directors. Each report shall exhibit in detail and under the appropriate heads, the resources and liabilities of such bank at the close of business on any past day specified by the bank examiner, and shall be transmitted to him within ten days after the receipt of a request or requisition therefor by him, and shall be published in condensed form, according to his requirements, within ten days after same is made, in a newspaper published in the county in which such bank is established, for one insertion at the expense of the bank, and such proof of publication shall be furnished within five days after the

date of publication, as may be required by the bank examiner. The bank examiner shall also have power to call for special reports which need not be published, from any bank, whenever, in his judgment, the same is necessary, in order to gain a full and complete knowledge of its condition; provided, the reports authorized and required by this section, to be called for by the bank examiner, shall relate to a date prior to the date of such call to be specified therein; provided, that no written report shall be made giving the name or names of the debtor or debtors of such bank.

637. Penalties for failure to report-Suit for fines, when.

SEC. 22. Every bank which fails to make and transmit or to publish any report required under this act, shall be subject to a penalty of fifty dollars for each day after the period mentioned in the preceding section, that it delays to make and transmit its report or proof of publication. Whenever any bank delays or refuses to pay the penalty herein imposed for a failure to make and transmit or to publish a report, the bank examiner is hereby authorized to maintain an action, in the name of the state, against the delinquent bank for the recovery of such penalty, and all sums collected by such action shall be paid into the general fund of the state.

638. Bank may close voluntarily, how.

SEC. 23. Any bank doing business under this act may place its affairs and assets under the control of the bank examiner by posting a notice on its front door as follows: "This bank is in the hands of the state bank examiner." The posting of such notice or the taking possession of any bank by the bank examiner shall be sufficient to place all of its assets and property of whatever nature in the possession of the bank examiner, and shall operate as a bar to any attachment proceedings, and the said bank shall be liquidated and its property and assets administered as in this act provided.

639. Voluntary liquidation, method of.

SEC. 24. Any bank doing business under this act, may voluntarily liquidate by paying off all its depositors in full and upon filing a verified statement with the bank examiner, setting forth the fact that all its liabilities have been paid, and on the surrendering of its certificate of authority to transact a banking business, it shall cease to be subject to the provisions of this act, and may continue to transact a loan and discount business under its charter; provided, that the bank examiner shall make an examination of any such bank for the purpose of determining that all its liabilities have been paid.

640. Bank insolvent, when.

SEC. 25. A bank shall be deemed to be insolvent:

First-When the actual value of its assets is insufficient to pay its liabilities;

Second-When it is unable to meet the demands of its creditors in the usual and customary manner;

Third-When it shall fail to make good its reserve as required by law. 641. Dividends declared, when.

SEC. 26. The directors or owner of any bank doing business under this act, may declare dividends of so much of the net profits as they may judge expedient, but such bank shall, before the declaring of the dividend, carry not less than one-tenth of its net profits since the last preceding dividend to its surplus fund, until the same shall amount to twenty per cent of its capital stock.

642. Losses, how charged.

SEC. 27. Any losses sustained by any bank, in excess of its undivided profits, may be charged to its surplus fund; provided, that it surplus fund shall thereafter be reimbursed from its earnings, in the same proportion to its earnings, as provided in the preceding section.

643. Capital not to be withdrawn.

SEC. 28. No bank or bank officer or director thereof, or individual banker, shall withdraw or permit to be withdrawn, either in form of dividends or otherwise, any portion of its capital. If losses have at any time. been sustained by such bank equal to, or exceeding its undivided profits, then on hand, no dividend shall be made, and no dividend shall be declared by any bank while it continues its banking business to any amount greater than its profits on hand, deducting therefrom its losses, to be ascertained by a careful estimate of the actual value of its assets at the time of making such dividends. Nothing in this section will prevent the reduction of the capital stock of any bank in the manner prescribed herein.

644. Interest on time deposits no more than 4 per cent-Penalty.

SEC. 29. No bank shall pay interest on time deposits directly or indirectly at a greater rate than four per cent per annum. Any banker, or officer, director or employee of a bank who shall violate the provisions of this section shall be deemed guilty of a misdemeanor and on conviction thereof shall be punished by a fine of not less than one hundred dollars ($100) nor more than five hundred dollars ($500), or by imprisonment in the county jail not exceeding six months, or both at the discretion of the court.

645. Officers guilty of felony, when.

SEC. 30. Every banker, officer, employee, director or agent of any bank or trust company, who shall, wilfully or maliciously neglect to perform any duty required by this act, or who shall wilfully or maliciously fail to conform to any material lawful requirement made by the bank examiner, shall be deemed guilty of a felony, and upon conviction thereof shall be punished by a fine not to exceed one thousand dollars, or by imprisonment in the state prison not to exceed five years, or by both such fine and imprisonment. 646. Bank examiner to offer rewards, when.

SEC. 31. The bank examiner shall have power to offer, under such conditions as he may deem proper, and not to exceed the sum of $500 in any one case, rewards for the arrest and conviction of any officer, director, agent or employee of any bank or trust company charged with violating any of the laws of this state relating to banks and banking, for which a criminal penalty is provided, or for the arrest and conviction of any person charged with stealing with or without force, any money, property or thing of value of any bank or trust company, and the state treasurer is hereby authorized, empowered and directed to pay out of the general fund of the state, all rewards so offered, when the same shall be approved by the board of examiners of this state, in the usual manner for allowing other claims against the state. 647. Unlawful to certify check without funds.

SEC. 32. It shall be unlawful for any officer, clerk or agent of any bank doing business under this act, to certify any check, draft or order drawn upon such bank, unless the person, firm or corporation drawing such check, draft or order has on deposit with the said bank at the time such check, draft or order is certified, an amount of money equal to the sum specified in said check. Any check, draft or order so certified by a duly authorized officer shall be a