Impairment of capital. Violation of act. Appointment of receiver. Banks under con trol of examiner. no case must the charge be more than two hundred dollars. All money collected under the provisions of this section shall be paid into the State's general fund: Provided, however, That no bank shall be required to pay for more than one examination in any one year. SEC. 41. Whenever it shall appear from any report of any bank, or whenever the examiner shall have reason to believe that the capital of such bank is reduced by impairment or otherwise below the amount required by this act, or by its certificate or articles of incorporation, it shall be the duty of the Examiner to require such bank to make good the deficiency so appearing, or to reduce its capital in accordance with the provisions of section 17 of this act; and to give effect to such requisition he shall have the power to examine or cause to be examined any such bank, to ascertain the amount of any such impairment of capital, and whether his requirements have been complied with. And if such bank shall neglect for three months to comply with such requirements, the same shall be cause for the proceedings provided for in section 42 of this act. SEC. 42. If the State Examiner, upon examination of the affairs of any bank governed by this act, shall find that such bank has been guilty of violating its charter or the provisions of this act, or is conducting its business in an unsafe manner, he shall, by an order addressed to the bank so offending, direct discontinuance of such illegal or unsafe practices, and if such bank shall refuse or neglect to comply with such order within a period of thirty days, he may immediately apply to the superior court of the county in which such bank has its principal place of business, for the appointment of a receiver of such bank, who, if he be appointed, shall proceed to administer the assets of the bank in accordance with law. SEC. 43. Any bank doing business under this act may place its affairs and assets under the control of the State Examiner by posting a notice on its front door as follows: "This bank is in the hands of the State Examiner." The posting of such notice, or the taking possession of any bank by the State Examiner, shall be sufficient to place all its assets and property of whatever nature in the possession of the State Examiner, and shall operate as a bar to any attachment proceedings. Examiner to take charge of when. SEC. 44. If upon examination made by the Examiner or his deputy, or from any report made to the Examiner, banks, it shall appear that any bank is insolvent, it shall be the duty of the Examiner to immediately take charge of such bank and all the property and effects thereof. Upon taking charge of any bank, the Examiner shall as soon as possible, ascertain by a thorough examination into its affairs, its actual condition, and whenever he shall become satisfied that such bank cannot resume business, or liquidate its indebtedness to the satisfaction of all its creditors, he shall report the fact of its insolvency to the Attorney General, who shall immediately upon receipt of such notice, institute proper proceedings in the proper court for the purpose of having a receiver appointed to take charge of such bank, and to wind up the affairs and business thereof for the benefit of its depositors, creditors and stockholders. The State Examiner may appoint a special deputy State Examiner to take charge of the affairs of an insolvent bank temporarily, until a receiver is appointed; such deputy Receivers. shall qualify, give bond and receive compensation the same as a regular deputy; such compensation to be paid by such bank or allowed by the court in costs in the case of appointment of a receiver: Provided, That in no case shall any bank continue in charge of such special deputy for a longer period than ninety days: Provided further, That after a bank has been taken charge of by the State Examiner or a deputy, if it be ascertained upon examination, to the satisfaction of the Examiner, that the said bank is solvent, he may permit the same to be reopened, and it shall in that event repossess the officers of such bank with all of its funds and assets, after deducting therefrom the necessary expense incident to the charge and control thereof while in the hands of the Examiner. SEC. 45. Receivers provided for in this act shall receive such compensation as shall be allowed by the court, Compensation of receivers. Examiner to keep record of fees collected. Examiner shall keep records. Distribution of assets. Attorney General to conduct suits. Auditorduties of devolve upon examiner. but in no event to exceed the fees allowed executors and administrators in the administration of estates. SEC. 46. It shall be the duty of the State Examiner to keep a record of all fees collected by him or his deputy, together with a record of the expense incurred in making the examinations of all banks, and pay to the State Treasurer at the times and in the manner prescribed by law, all fees collected, together with all funds received by him officially from whatsoever source, and he shall file with the State Treasurer, quarterly, an itemized statement showing from whom collected. SEC. 47. The State Examiner shall keep proper books of record of all acts, matters and things done by him under the provisions of this act, as records of his office. Neither he nor his clerks shall disclose any fact or information obtained in the course of the business of the department, except so far as this act makes it their duty to make public records and publish the same, and any violation of this prohibition shall subject the offender to prosecution for misdemeanor in any court of competent jurisdiction. and to punishment by fine not exceeding one thousand dollars, with imprisonment in the county jail until the same is paid; and such conviction shall subject the offender to a forfeiture of his office or employment. SEC. 48. In distributing the assets of any bank for which a receiver has been appointed under the provisions of this act, the claims of depositors shall be given preference over all other claims except claims for labor: Pro'vided, That this section shall not be so construed as to impair the rights of secured creditors. SEC. 49. The Attorney General of the State shall conduct all actions, suits or proceedings begun by the State Examiner under the authority of this act.. SEC. 50. That all duties now required to be performed by and all responsibilities now imposed upon the Auditor of this State, under the laws regulating the business of banking shall hereafter be performed by the State Examiner, and all reports and documents now on file in the State Auditor's office pertaining to banks now in existence are Examiner trust com hereby transferred to the custody of the Bank Examiner. That all duties now required to be performed by and all shall inspect responsibilities now imposed upon the Secretary of State panies. under chapter 176 of the Laws of 1903, relating to the inspection and supervision of trust companies, shall hereafter be performed by the State Examiner, and all reports and documents now in existence are hereby transferred to the custody of the Bank Examiner. Appropria SEC. 51. There is hereby appropriated out of any tion $20,000. moneys in the treasury not otherwise appropriated, the sum of twenty thousand dollars ($20,000) or so much thereof as may be necessary, for the salary of a State Examiner and deputy, and the expenses of his office for the ensuing two years. SEC. 52. All acts and parts of acts regulating the or- Repeal. ganization and management of banks inconsistent with this act are hereby repealed; but nothing herein shall be held to repeal any law regulating trust companies, foreign banks and foreign bankers doing business in this State. SEC. 53. Any person or persons who shall wilfully and knowingly subscribe to or make or cause to be made any false statement or false entry in the books of any bank or corporation transacting a banking business or shall knowingly subscribe to or exhibit false or fictitious papers or securities with the intent to deceive any person or persons authorized to examine into the affairs of said bank or corporation, or shall make, state or publish any false statement of the amount of the assets or liabilities of any such bank or corporation, shall be deemed guilty of a felony and upon conviction thereof shall be imprisoned in the State Penitentiary not less than one year nor more than ten years. Passed the House February 26th, 1907. Approved by the Governor March 16th, 1907. False entriespenalty. for making. Organiza. tion. CHAPTER 226. AMENDING ACT PROVIDING FOR THE REGULATION OF AN ACT relating to railroads and express companies and provid- Be it enacted by the Legislature of the State of Washington: SECTION 1. That section 2 of chapter 81 Session Laws of 1905 be and the same is hereby amended to read as follows: Sec. 2. The Commission appointed shall meet at |