ÆäÀÌÁö À̹ÌÁö
PDF
ePub

But the discount of bills of exchange drawn in good faith against actually existing values, and the discount of commercial or business paper actually owned by the person negotiating the same, shall not be considered as money borrowed. The corporation mentioned in this section shall not be construed to mean municipal corporations, districts or counties. (Code 1916, c. 54.)

§ 10. Bank dividends. The directors of any bank may annually, semi-annually or quarterly, declare dividends, but such bank shall, before the declaration of any dividend, carry onetenth part of the net profit accrued to its surplus fund until the same shall amount to twenty per centum of its capital stock. No dividend shall be declared except from earnings remaining after deducting all losses, all sums due for expenses, and all over-due debts upon which no interest has been paid for a period of six months, unless the same are well secured and in process of collection. Any director voting for any dividend in violation of the provisions of this section shall be deemed guilty of a misdemeanor and upon conviction thereof shall be fined not less than five hundred dollars, and in the discretion of the court, confined in jail not less than thirty days. (Code 1916, c. 54.)

§ 11. Impairment of bank capital. No bank, or any of the officers or directors thereof, shall during the time it shall continue its banking operations, withdraw, or permit to be withdrawn, either in the form of dividends or otherwise, any portion of its capital stock. Whenever the capital stock of a bank has become impaired, by losses or otherwise, it shall be the duty of the board of directors to restore the same within three months by an assessment pro rata on the stockholders, on the amount of the capital stock held by each. But nothing in this section shall prevent the reduction of the capital stock of the bank, as provided in section four of this chapter. (Code of 1916, c. 54.)

§ 12. Failure to pay stock assessment or cure impairment of capital. If any stockholder or stockholders of a bank shall neglect or refuse after three months' notice, to pay the assessment as provided in the next preceding section or in section five of this chapter, it shall be the duty of the board of directors to cause a sufficient amount of the capital stock of such stockholder or stockholders to be sold at public auction, after thirty days' notice shall have been given by posting such notice of sale in

the office of the bank, and by publishing such notice in a newspaper of the city or town in which the bank is located, or in a newspaper published nearest thereto, to liquidate the deficiency, and the residue of the proceeds of said sale, if any, shall be paid to the delinquent stockholder or stockholders. A failure by the board of directors to make the assessment provided for in section eleven to cure an impairment of capital stock, or failure to carry out the provisions of this section, shall make the members of the board of directors subject to the penalties prescribed in section twenty-seven of this chapter. (Code 1916, c. 54.)

§ 13. List of bank stockholders. The president and the cashier of every bank or association shall cause to be kept at all times a full and correct list of the names and residences of all the stockholders in the bank or association, and the number of shares held by each, in the office where its business is transacted. Such list shall be subject to the inspection of all the stockholders and creditors of the bank or association and the officers authorized to assess taxes under state authority, during business hours of each day in which business may be legally transacted. A copy of such list on the first Monday of July of each year, verified by the oath of such president and cashier, shall be transmitted to the commissioner of banking. (Code 1916, c. 54.)

§ 14. What is "bank" or "banking company."-The words "bank" or "banking company" in this act shall be taken and construed to include any bank, banker, banking company or trust company. (Code 1916, c. 54.)

§ 15. Reserve fund of banks. All banks operating under the provisions of this chapter shall at all times maintain on hand as a reserve in lawful money of the United States, an amount equal to at least fifteen per centum of the aggregate of all its deposits which are subject to withdrawal on demand; and whenever said reserve of any such bank shall fall below said per centum of such deposits it shall not increase its liabilities by making any new loans until the required proportion between the aggregate amount of such deposits and its reserve fund shall be restored; provided, that in lieu of lawful money on hand, three-fifths of said fifteen per centum may consist of balances payable on demand due from any national or state bank doing business in this state, or any solvent banking institutions outside

Acts of 1919, Chapter 60, added to Chapter 54 of Barnes Code of 1916, section 79 a(11) which provides among other things:

"A compliance on the part of any such bank or trust company" (one becoming member of Federal Reserve) "with the reserve requirements of the federal reserve act shall be held to be a full compliance with those provisions of the laws of this state which require banks or trust companies to maintain cash balances in their vaults or with other banks, and no such bank or trust company shall be required to carry or maintain reserve other than such as is required under the terms of the federal reserve act."

§ 19. Commissioner of banking; scope of powers. The commissioner of banking shall have jurisdiction and control, as hereinafter provided, over all banks chartered by and operated in this state, and all other institutions mentioned in this act. (Code 1916, c. 54.)

§ 20. Same: appointment; assistants. On or before the first day of April, one thousand nine hundred and fifteen, or as soon thereafter as possible, and every four years thereafter the governor of this state shall designate and appoint some competent person commissioner of banking, who is a citizen of this state, and who shall be experienced and skilled in the science of bookkeeping and banking, and who shall have had at least two years' experience as a cashier or an assistant cashier of a bank, or shall have served at least two years as assistant commissioner of banking, bank examiner or as an accounting officer of the state, and who is neither directly nor indirectly interested in any bank or

corporation subject to his supervision, who shall examine into and report, as hereinafter provided, upon the affairs of all banks and other institutions specified in this act, doing business in this state, except those that are organized and carrying on business under the banking acts of the national government. The commissioner of banking may designate and appoint three assistant commissioners of banking, who shall have the same qualifications as the commissioner and who shall assist the commissioner of banking, and under his directions and authority may perform any or all of the duties, and exercise any or all of the powers by this act required of, or vested in, the commissioner of banking, and who may be removed by the commissioner of banking. The assistant commissioners of banking shall take the oath as is hereinafter required of the commissioner of banking. (Code 1916, c. 54.)

§ 21. Same: term; oath.-The commissioner of banking shall hold his office for a term of four years unless sooner removed by the governor, or until his successor is appointed and qualified, and before entering upon the discharge of his duty, he shall take and subscribe, before some person competent to administer the same, an oath to support the constitution of the United States, and the constitution of the state of West Virginia, and to faithfully and honestly examine into the affairs of all the banks and other institutions subject to supervision under this chapter, incorporated by and doing business in this state, and to perform all of the duties prescribed for such services under this act; and said oath shall be filed and preserved in the office of the secretary of state. (Code 1916, c. 54.)

§ 22. Same: office; records.-Said commissioner of banking shall maintain an office in the state capitol. In such office he shall prepare and keep a complete record of the financial condition of all the banks and other institutions subject to his supervision, as may appear in his reports. (Code 1916, c. 54.)

§ 23. Examination of banks: duties of commissioner; false report; bribery. At least twice in each twelve months the said commissioner, or an assistant commissioner, shall personally make a thorough and complete examination of the condition and affairs of each of said banks and other institutions subject to his supervision. He shall ascertain whether the officers and directors

thereof have properly taken the oath prescribed by law as such, and whether or not the said officers have executed proper and legal bonds in sufficient amount and with ample security. He shall examine and ascertain whether the books of said institution are properly kept, and he shall ascertain carefully and fully the assets and liabilities of each and all of said banks and other institutions, and whether such assets are solvent and good or otherwise, and whether all the laws of this state pertaining to banks and banking are carefully observed. The commissioner of banking or his assistant shall examine each and every bank in the hands of a receiver at least once in each six months, until its affairs shall be wound up, and shall file a copy of each of said examinations with the clerk of the circuit court of the county where such bank is located. Receivers of all insolvent banks shall make reports to the commissioner of banking in the same manner as required of other banks, and shall cause statements to be published in like manner. Any receiver of any insolvent bank who shall fail to comply with the provisions of this section, or who shall neglect or refuse to submit the affairs of such bank to an examination by the commissioner of banking or his assistant, or who shall violate any of the provisions of this act relating to the examination of banks, shall be subject to the same penalties provided for officers or employees of banks.

Any commissioner or assistant commissioner acting under this section, in making the examination into all the books, papers, notes, bills, securities, moneys and affairs of any bank or other institutions in this state subject to his supervision, such examination shall be in the presence of at least two members of the board of directors of any such bank or institution, and it shall be the duty of the commissioner or assistant commissioner to state in his report herein refered to the names of the directors in whose presence the examination is made, and in making such examination the commissioner or assistant commissioner shall have the power to administer oaths and affirmations, and to examine on oath or affirmation the officers, agents and clerks of any such bank or other such institution, touching the matter which the said commissioner or assistant commissioner may be authorized and directed to inquire into and examine, and to summon, and by attachment compel the attendance of any person or persons in this state to testify under oath before him in relation to the affairs of any such bank or other such institution.

The

« ÀÌÀü°è¼Ó »