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PREFACE.

1 Daten ang

Herein will be found such provisions of the state statutes as directly or practically apply to banking institutions and the business ordinarily connected therewith. Certain other laws have been added, knowledge of which it is believed will be of practical value. Since the last publication of this manual many new statutes relating to banking have been enacted, and these are embodied in the present edition. To the text is appended a full index of the laws.

The references at the end of sections throughout the manual are to BARNES' WEST VIRGINIA CODE of 1916, the latest official edition of all the state statutes. The other references are to the particular Acts of the legislature containing the sections so annotated.

S. P. SMITH,
Charleston, W. Va.,

State Banking Commissioner.
July 1, 1917.

s-1.

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. CHAPTER 1.

GENERAL BANKING STATUTE.

§ 1. Laws applicable.—Banks of issue or of discount and deposit, whether heretofore formed under the laws in force at the time of their formation, or hereafter formed under the provisions of this chåpter, shall be subject to the provisions of this chapter, and of chapters fifty-two and fifty-three of the code, so far as the same are applicable and not inconsistent with the following sections of this chapter. (Code 1916, c. 54.)

§ 2. Capital stock.—The capital stock of every banking company, formed under the provisions of this chapter, shall not be less than twenty-five thousand dollars ($25,000), nor more than five hundred thousand dollars ($500,000). Said stock shall be divided into shares of the par value of one hundred dollars ($100.00) each; such shares shall be deemed personal property and transferable on the books of the association in such manner as may be prescribed in the by-laws of the association, and every person becoming a share-holder, by such transfer shall, in proportion to his shares, succeed to all the rights and liabilities of the prior holder of such shares. (Code 1916, c. 54.)

§ 3. Powers of banks; necessity of incorporation; holding of real estate.--Every such bank may exercise, under the laws of this state, all such incidental powers as may be necessary to carry on the business of banking, by discounting promissory notes, negotiating drafts, bills of exchange and other evidences of indebtedness, receiving deposits, buying and selling exchange, bank notes, bullion or coin, and by loaning money on personal or other security. It shall be unlawful for any individual or association of individuals doing business in this state to use in connection with such business the term “bank,” “banker,” “bank. ing company,” or “trust company," or receive deposits, or sell foreign exchange, until they shall have taken out a charter, and complied with the statutes governing banks and trust companies. Hereafter no charter shall be issued to any bank to do business in this state until the application therefor has been approved in writing by the commissioner of banking; and no real estate shall

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be carried upon the books of any bank at a value greater than the assessed value as shown by the land books of the county wherein such real estate is assessed. No bank shall hold or convey real estate except for the following purposes: 1. Such as shall be necessary for its immediate accommodation in the transaction of its business. 2. Such as shall be mortgaged to it in good faith by way of security for debts contracted. 3. Such as shall be conveyed to it in satisfaction of debts previously contracted in the course of its dealings. 4. Such as it shall purchase at sales under judgments, decrees, deeds of trust or mortgages held by the association, or shall purchase to secure debts due to it, which it shall dispose of at the earliest practicable date. wny person violating the provisions of this section shall be deemed guilty of a misdemeanor, and on conviction thereof shall be fined not less than five hundred dollars nor more than one thousand dollars, or be confined in the county jail for a period not exceeding six months, or both, at the discretion of the court, for each and every offense. (Code 1916, c. 54.)

§ 4. Increase or reduction of stock.-Any banking company heretofore formed or which may be hereafter formed under the provisions of this chapter, at any general, adjourned or special meeting of the stockholders thereof, may by resolution make such increase or reduction of the capital stock thereof as may be decided upon by said stockholders, a majority of the stock of such company being represented at such meeting by the holders thereof, and such holders being present in person, or by proxy, and voting for such increase or reduction; provided, that no increase or reduction shall conflict with the limitation prescribed in section seventy-seven of this chapter, and that a notice over the signature of the president of said banking company, of the intention to offer such resolution, shall be sent through the United States mail to each stockholders ten days previous to such meeting; or that notice of such intention be given by advertisement published once a week for two successive weeks in some newspaper of general circulation in this state; or for ten days in some daily paper of like circulation printed in this state. When such increase or reduction shall have been made by any banking company, the president thereof shall, under his signature and the seal of such bank, certify the resolution increasing or reducing the capital stock, to the secretary of state; and the secretary of

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