The Banking Law (L. 1892, ch. 689), § 130.

at least four per centum dividends per annum on their outstanding capital stock, and provided their capital stock shall equal or exceed in amount one-third of the par value of all their bonded indebtedness, and further provided that all bonds of either of said companies hereby authorized for investment shall be secured by a mortgage which is a first mortgage on either the whole or some part of the railroad or railroad property actually in the possession of and operated by said company, or that such bonds shall be mortgage bonds of an issue to retire all prior debts of said railroad company.

(d) The first mortgage bonds of the Fonda, Johnstown and Gloversville Railroad Company, or in the mortgage bonds of said railroad company of an issue to retire all prior mortgage debts of said railroad company, and provided the capital stock of said railroad company shall equal or exceed in amount one-third of the par value of all its bonded indebtedness, and provided also that such railroad be of standard gauge of four feet eight and one-half inches, and in the mortgage bonds of the Buffalo Creek Railroad Company of an issue to retire all prior mortgage debts of said railroad company. Not more than twenty-five per centum of the deposits of any bank shall be loaned or invested in railroad bonds, and not more than ten per centum of the deposit of any bank shall be invested in the bonds of any one railroad corporation described in paragraph a of this subdivision, and not more than five per centum of such deposits in the bonds of any other railroad corporation. Street railroad corporations shall not be considered railroad corporations within the meaning of this subdivision. (Amended by L. 1898, ch. 236; L. 1889, ch. 386; L. 1900, ch. 42, and L. 1902, ch. 440, in effect April 10, 1902, and clause d, amended by L. 1903, ch. 640, in effect May 21, 1903.)

§ 130. Debts due savings banks from insolvent banks, and building and mutual loan corporations preferred.- All the property of any bank or trust company which shall become insolvent shall after providing for the payment of its circulating notes, if it has any, be applied by the trustees, assignees or receivers thereof in the first place, to the payment in full of any sum or sums of money deposited therewith by any savings bank or banks and by any building and mutual loan corporation or corporations ratably and proportionally, but not to an amount exceeding that authorized to be so deposited by the provisions of this charter, and subject to any

The Banking Law (L. 1892, ch. 689), § 131.

other preference provided for in the charter of any such trust company. (Amended by L. 1904, ch. 693, in effect May 9, 1904.)

Interest upon preferred deposits. The preferences in favor of the payment of debts due savings banks take effect upon the appointment of a receiver. But preferred creditors are not entitled, upon the settlement of the receiver's accounts, to any interest upon their claims from the date of the appointment of the receiver. Interest is payable to all creditors if the assets are sufficient, if not, interest ceases upon all claims whether preferred or unpreferred from the date of such appointment. People v. American Loan and Trust Co., 172 N. Y., 371, affirming, 70 App. Div. 579, 75 N. Y. Supp. 563.

§ 131. Advertisements of unauthorized savings banks prohibited. No bank, banking association, individual banker, firm, association, corporation, person or persons shall advertise or put forth a sign as a savings bank, or in any way solicit or receive deposits as a savings bank, except that it shall be lawful for the principal or superintendent of any public school or schools in the state of New York or for any person designated for that purpose by the board of education or other school authority in which such school shall be situated to collect once a week, or from time to time, small amounts of savings from the pupils of said school, the same to be deposited by said principal or superintendent on the day of collection in some savings banks in the state to the credit of the respective pupils from whom the money shall be collected, or if the amount collected at any one time shall be deemed insufficient for the opening of individual accounts, in the names of said principal or superintendent, in trust, and to be by him eventually transferred to the credit. of the respective pupils to whom the same belongs. In the meantime, said principal or superintendent shall furnish to the bank a list giving the names, signatures, addresses, ages, places of birth, parents' names and such other data concerning the respective pupils as the bank may require, and it shall be lawful to use the words "system of school savings banks" or "school savings banks" in circulars, reports and other printed or written matter used in connection with the purposes of this law. bank, banking association, individual banker, firm, association, corporation, person or persons violating this provision shall forfeit to the people of the state for every offense the sum of one hundred dollars for every day such offense shall be continued. (Amended by L. 1904, ch. 568, in effect May 3, 1904.)

Any

The Banking Law (L. 1892, ch. 689), § 156.

§ 156. Powers of corporation. Upon the filing of any such certificate of authorization of a trust company, the persons named therein and their successors shall thereupon and thereby become a corporation and in addition to the powers conferred by the general and stock corporation laws shall have power:

1. To act as the fiscal or transfer agent of any state, municipality, body politic or corporation; and in such capacity to receive and disburse money, to transfer, register and countersign certificates of stock, bonds or other evidences of indebtedness, and to act as agent of any corporation, foreign or domestic, for any lawful purpose.

2. To receive deposits of trust moneys, securities and other personal property from any person or corporation, and to loan money on real or personal securities.

3. To lease, hold, purchase and convey any and all real property necessary in the transaction of its business, or which the purposes of the corporation may require, or which it shall acquire in satisfaction. or partial satisfaction of debts due the corporation under sales, judgments or mortgages, or in settlement or partial settlement of debts duc the corporation by any of its debtors.

4. To act as trustee under any mortgage or bonds issued by any municipality, body politic or corporation, and accept and execute any other municipal or corporate trust not inconsistent with the laws of this state.

5. To accept trusts from and execute trusts for married women, in respect to their separate property, and to be their agent in the management of such property or to transact any business in rela

tion thereto.

6. To act under the order or appointment of any court of record as guardian, receiver or trustee of the estate of any minor, the annual income of which shall not be less than one hundred dollars, and as depository of any moneys paid into court, whether for the benefit of any such minor or other person, corporation or party.

7. To take, accept and execute any and all such legal trusts, duties and powers in regard to the holding, management and disposition of any estate, real or personal, and the rents and profits thereof, or the sale thereof, as may be granted or confided to it by any court of record, or by any person, corporation, municipality or other authority; and it shall be accountable to all parties in interest for the faithful discharge of every such trust, duty or power which it may so accept.

The Banking Law (L. 1892, ch. 689), § 159.

8. To take, accept and execute any and all such trusts and powers of whatever nature or description as may be conferred upon or intrusted or committed to it by any person or persons, or any body politic, corporation or other authority, by grant, assignment, transfer, devise, bequest or otherwise, or which may be intrusted or committed or transferred to it or vested in it by order of any court of record, or any surrogate, and to receive and take and hold any property or estate, real or personal, which may be the subject of any such trust.

9. To purchase, invest in and sell stocks, bills of exchange, bonds and mortgages and other securities; and when moneys or securities for moneys are borrowed or received on deposit, or for investment, the bonds or obligations of the company may be given therefor, but it shall have no right to issue bills to circulate as money.

10. To be appointed and to accept the appointment of executor of or trustee under the last will and testament, or administrator with or without the will annexed, of the estate of any deceased person, and to be appointed and to act as the committee of the estates of lunatics, idiots, persons of unsound mind and habitual drunkards. 11. To exercise the powers and possess the privileges conferred on banks and individual bankers by sections fifty-five and fifty-six of this act, subject to the restrictions contained in said sections. No such corporation shall have any right or power to make any contract, or to accept or to execute any trust whatever, which it would not be lawful for any individual to make, accept or execute. No loan exceeding one-tenth of its capital stock, shall be made by any such corporation (directly or indirectly) to any director or officer thereof, and such loan to such director or officer shall not be made without the consent of a majority of the directors. No such corporation shall transact its ordinary business by branch office in any city not named in its certificate of incorporation or charter as the place where its business is to be transacted. No foreign corporation shall have or exercise in this state any of the powers specified in subdivisions one, two, four, five, six, seven, eight, ten and eleven, nor have or maintain an office in this state for the transaction of, or transact directly or indirectly, any such or similar business. (Amended by L. 1893, ch. 696; L. 1903, ch. 660, and L. 1904, ch. 492, in effect April 28, 1904.)

$159. Investments of capital, surplus, undivided profits and deposits. The capital of every such corporation shall be invested

The Banking Law (L. 1892, ch. 689), § 161.

in bonds and mortgages on unincumbered real property in this state to the extent of sixty per centum of the value thereof, or in the stocks or bonds of this state, or of the United States, or of any county or incorporated city of this state duly authorized by law to be issued. The moneys received by any such corporation in trust may be invested in its discretion in the securities of the kind in which its capital is required to be invested, or in the stocks or bonds of any state of the United States, or in such real or personal securities as it may deem proper. No such corporation shall hold stock in any private corporation to an amount in excess of ten per centum of the capital, surplus and undivided profits of the corporation holding such stock. (Amended by L. 1903, ch. 160, and L. 1904, ch. 479, in effect April 28, 1904.)

§ 161. Directors. The affairs of every such corporation shall be managed and its corporate powers exercised by a board of directors of such number, not less than thirteen nor more than thirty, as shall from time to time be prescribed in its by-laws. The number of directors necessary to form a quorum for the transaction of business may be fixed by the organization certificate, or the bylaws; such quorum shall not be less than one-third of such number of directors, and in no case less than seven. No person can be a director who is not the holder of at least ten shares of the capital stock of the corporation. The persons named in the organization certificate, or such of them respectively, as shall become holders of at least ten shares of such stock, shall constitute the first board of directors, and may add to their number not exceeding the limit of thirty, and shall severally continue in office until others are elected to fill their respective places. Within six months from the time when such corporation shall commence business, the first board of directors shall classify themselves by lot into three classes, as nearly equal as may be. The term of office of the first class shall expire on the third Wednesday of January next following such classification; the term of office of the second class shall expire one year thereafter; and the term of office of the third class shall expire two years thereafter. At or before the expiration of the term of the first class, and annually thereafter, a number of directors shall be elected equal to the number of directors whose term will then expire, who shall hold their offices for three years or until their successors are elected. Such election shall be held at the office of the corporation and at such time and upon such public notice not