4. In loans upon personal notes of the depositors of the corporation, but not exceeding the amount of his deposit to a depositor; and in such cases the deposit and book of the depositor shall be held by the corporation as collateral security for the payment of the loan.

5. If such deposit and income cannot be conveniently invested, not exceeding one-third part thereof may be invested in bonds or other personal securities, payable at a time not exceeding one year, with at least two sureties, if the principal and sureties are all citizens of this state and resident therein.

6. Fifteen per cent of the deposits of any such corporation, but not exceeding one hundred thousand dollars, may be invested in the purchase of a suitable site and the erection or preparation of a suitable building for the convenient transaction of its business; and from portions of which, not required for its own use, a revenue may be derived.

7. Any such corporation may take real estate, stocks, bonds and securities in payment in whole or in part of any debt bona fide owing to it, or may purchase the same if deemed necessary to secure or obtain payment of any such debt in whole or in part; and may manage, use and dispose of what has been taken or purchased as a natural person might do; but all taxes, foreclosure expenses and costs of maintenance shall be paid out of the income of the bank.

8. That farm loan bonds issued by federal land banks or joint stock land banks, under an act of congress approved July seventeenth, one thousand nine hundred and sixteen, entitled "An act to provide capital for agricultural development, to create standard forms of investment based upon farm mortgage, to equalize rates of interest upon farm loans, to furnish a market for United States bonds, to create government depositories and financial agents for the United States, and for other purposes, shall be a lawful investment for savings bank deposits, for all fiduciary and trust funds, for the funds of insurance companies and savings and loan associations, and for the workmen's compensation fund. Said farm loan bonds shall be accepted as security for all public deposits on the same terms as any bonds for which the faith of the United States is pledged. (Acts 1917, c. 56; 2nd Ex. Sess., c. 11.)

§ 18. Time for such investment; reserve fund.-Investments shall be made as soon as practicable, except that for the purpose of meeting current expenses and payments in excess of receipts, there may be kept an available fund not to exceed ten per cent. of the whole amount of deposits, and such fund may be invested only in such loans as are provided for in subdivisions two, three, four, five and seven of section seventeen. (Code 1916, c. 54.)

§ 19. Deposit of deposits in other banks.-The excess of current receipts over the payments may be deposited to the credit of the corporation in such banks as may be designated by the trustees; and moneys so deposited shall be withdrawn only on the checks of the president or treasurer, countersigned by such other officer as the trustees may designate. (Code 1916, c. 54.)

§ 20. Powers as to real estate. The real estate which it shall be lawful for any such corporation to purchase, hold and convey, shall be only such as is hereinbefore provided. (Code 1916, c. 54.)

§ 21. Loans.--All applications for loans shall be made in writing through the treasurer of the corporation, who shall keep a record thereof, showing the date, name of applicant, amount asked for and the security offered, and he shall cause the same to be presented to the investment committee of the board of trustees, and in all cases of loans upon real estate, the borrower shall be required to pay all expenses attending the examination of title and securing the money loaned. (Code 1916, c. 54.)

§ 22. Certificates of deposit; interest or dividends; pass books. -No savings bank organized under this act, shall make or issue any certificate of deposit, or pay any interest on a deposit, except semi-annual dividends, nor pay any interest or deposit, or portion of a deposit or check, drawn upon itself by any depositor, unless the passbook of the depositor be produced and proper entry be made therein at the time of the transaction; provided, however, that when any passbook issued by any such savings bank has been lost or destroyed, the person in whose name such book was issued, or his legal representatives, may make written application to the bank which issued such passbook for payment of the amount of the deposit represented by said book, or for the issuance of a duplicate book therefor, and shall give public notice of such application by advertising the same at least once

a week for three weeks successively in a newspaper published in the city, town or village in which such bank is located; or if no newspaper be published in said city, town or village, in a newspaper having a circulation in said city, town or village. If said book shall not be presented to said bank within three months after the date of the first advertisement, as aforesaid, said bank shall, upon proof that there has been given as hereinbefore provided, pay the amount due on said book or issue a duplicate therefor, and upon such payment or delivery of a new book all liability of the bank on account of the original book shall terminate. Notwithstanding anything hereinbefore contained, any such bank may, in any case, at its treasurer's discretion, pay or cause to be paid to the owner the amount due on a lost or destroyed book issued by the bank, or issue a duplicate therefor to such owner, taking from the owner of the lost or destroyed book such security or indemnty to the bank, as the treasurer may deem sufficient, against loss, damages, expenses and costs in anywise arising to the bank from or by reason of such payment or issuance of such duplicate, and waiving the publication of such notice. (Acts 1917, c. 56.)

§ 23. Guaranty fund. Every such savings bank shall, at the time of making each semi-annual dividend, reserve as a guaranty fund from the net profits which have accumulated during the six months then next preceding, not less than one-eighth nor more than one-fourth of one per cent. of the whole amount of deposits, until such fund amounts to five per cent. of the whole amount of deposits; which fund shall be thereafter maintained and held to meet losses in its business from depreciation of its securities or otherwise. (Code 1916, c. 54.)

§ 24. Division of profits; dividends.-The income or profits of every such savings bank, after a deduction of all reasonable expenses incurred in the management thereof and the guaranty fund, shall be divided among its depositors or their legal representatives, at times fixed by its by-laws, in the following man

ner:

Ordinary dividends shall be made every six months and shall not exceed two and one-half per cent. on all sums which have been on deposit for six months preceding, or one and onefourth per cent. on all sums which have been on deposit for three months preceding; and no ordinary dividend shall be declared or paid except as above provided, nor upon a deposit of less than

three months standing; and any such savings bank may, by its by-laws, provide that no dividends shall be declared or paid on a less sum than three dollars, or on the fractional part of a dollar. (Code 1916, c. 54.)

§ 25. Same: when dividends not declared.—If at the time provided by the by-laws for making ordinary dividends, the net profits for the six months preceding, over and above the sum to be added to the guaranty fund, do not amount to one per cent. of the deposits, no dividends of the profits shall be declared or paid. (Code 1916, c. 54.)

§ 26. Same: tri-ennial dividends.--Once in every term of three years, if the net profits accumulated over and above said guaranty fund and dividends, amounts to one per cent. of the deposits which have remained in such savings bank for one year then next preceding, such net profits shall be divided among the depositors whose deposits have remained therein for one year at least then next preceding, in proportion to the amount of dividends which have been declared on their deposits during the three years then next preceding. (Code 1916, c. 54.)

§ 27. Same: how dividends declared.--No dividend shall be declared or paid until the trustees cause an examination to be made and find that the amount thereof has actually accrued, and no dividend or interest shall be paid unless authorized by an aye and no vote of the trustees, recorded in their minutes, after such examination. (Code 1916, c. 54.)

§ 28. Examination of bank by trustees.--It shall be the duty of the trustees of every such savings bank, by a committee of not less than three of their number, in the months of January and July in each year, to thoroughly examine the books, vouchers and assets of such savings bank, and to make a statement of its assets and liabilities, and to publish the same in a newspaper of general circulation in the county in which such bank is located, at least twice within ten days from the completion of such statement; which said statement shall be verified by the oath of a majority of the trustees making such examination. (Code 1916, c. 54.)

§ 29. Examination of bank by circuit court. The circuit court of the county in which any such savings bank is located, may, at any time, on the application under oath, of any five or more officers, trustees or deposiitors, of any such corporation, and such depositors, representing deposits aggregating at least two thousand dollars, setting forth their interests, and the reasons for making such examination, for reasons deemed sufficient by said court, appoint two or more persons to examine into the investments thereof, and its affairs and business generally. The books, papers and business of such corporation shall be open and subject to the examination of such persons, and the trustees, officers and clerks thereof or any other person may be examined on oath by such persons; and the said court may confer such other powers on the persons so appointed as they may consider necessary for the more thorough and perfect examination of the affairs and business of such corporation; the said persons so appointed shall report the result of their investigation to the said court, who, if satisfied thereby, that any trustee, officer or servant of such corporation has been guilty of any fraud or misconduct, may remove such person or persons, and make further order and take such further measures for securing the funds, and property of such corporation, as the said court may deem expedient. The costs and fees attending such proceedings shall be within the discretion of the said court, and may be adjudged either against the petitioners or the funds of such corporations as the court may determine. (Code 1916, c. 54.)

30. Unlawful investments.-Any trustee, officer or agent, of any such corporation who shall authorize or make an investment in any securities not named in this act, shall be guilty of a misdemeanor, and fined not less than one hundred dollars, and imprisoned not less than one year. (Code 1916, c. 54.)

§ 31. Special meetings of trustees; notice.-Every such corporation may, at any time, hold special meetings of its trustees; and its treasurer shall also give notice of such special meetings upon the requisition in writing of the president or any three trustees. Notice of all meetings shall be given by mailing to each trustee a written or printed notice of such meeting at least a day before the meeting. (Acts 1917, c. 56.)