Steam railroad bonds. Proviso. Leased lines of railroad companies. In bonds which retire prior mortgage indebtedness. Proviso as to company's condition. Proviso. In bonds of street railways, gas companies, etc. Proviso as to company's condition. (c) In the legally authorized first mortgage bonds of any steam railroad corporation organized under the laws of any state of the United States: Provided, That such company has for five years prior to the time of making such investment by said bank, paid annually, dividends equal to not less than four per cent on its entire capital stock and has not during said period defaulted in the payment of the matured principal or interest of any debts incurred by it and secured by mortgage or trust deed upon its property or any part thereof, or in the payment of any part of the matured principal or interest of any bonds guaranteed and assumed by it; or (d) In the first mortgage bonds of railroad companies whose lines are leased or operated or controlled by any railroad company specified in paragraph (c) of this section, if said bonds be guaranteed both as to principal and interest by the railroad company to which said lines are leased or by which they are operated or controlled; (e) In the legally authorized mortgage bonds of any steam railroad incorporated under the laws of any state of the United States, which shall have been issued for the purpose of retiring all prior mortgage indebtedness on so much of the property of such company as is covered by the mortgage securing such issue of bonds, and further providing for additions, extensions or improvements: Provided, That such company has for three years prior to the time of making such investment by said bank, paid annually, dividends equal to not less than four per cent on its entire capital stock, which capital stock shall equal or exceed in amount one-third of the par value of all its bonded indebtedness, and has not during the same period defaulted in the payment of the matured principal or interest of any debts incurred by it and secured by mortgage or trust deed upon its property or any part thereof, or in the payment of any part of the matured principal or interest upon a bond guaranteed or assumed by it: Provided, Said issues of bonds shall have been approved by the securities commission, hereinafter provided for; (f) In the legally authorized first mortgage bonds of any electric railroad, street railway, gas or electric light or power company, organized under the laws of the State of Michigan: Provided, That such company has for five years prior to the time of making such investment by said bank, paid annually, dividends equal to not less than four per cent on its entire capital stock, and has not during the same period defaulted in the payment of the matured principal or interest of any debts incurred by it and secured by mortgage or trust deed upon its property or any part thereof, or in the payment of any part of the matured principal or interest of any bonds guaranteed or assumed by it; or in the first mortgage bonds of any such company which has been in operation less than Proviso as to cost five years: Provided, That the cost of construction and equipbrances, etc. ment of the plant of such company shall exceed by at least fifty per cent the amount of the entire bonded indebtedness of plant, encum: of such company, and the said plant and equipment shall be ship companies. (g) In the legally authorized first mortgage bonds of In bonds of steamsteamship companies: Provided, That such mortgages shall Proviso as to conbe upon steel steamship or steamships for the carriage of struction of boats. freight or package freight and passengers combined, upon the Great Lakes and connecting waters, of at least five thousand tons carrying capacity each: Provided, Such bonds Proviso. are issued at the time of completion and enrollment of such mortgagee by steamship or steamships, or within one year thereafter: And Further proviso. provided further, That by the express terms of said mortgage, at least ten per cent of the total issue of said bonds shall be retired annually, beginning within two years from the date of said bonds, and that the mortgage liability against said property shall not exceed one-half of its actual cost: And Further proviso provided further, That the trustee of such mortgage shall be as to protection of required to protect the lien of said mortgage by attending to trustee. the recording thereof and by causing property covered by said mortgage to be insured against all risks on vessel property ordinarily covered by such insurance, including marine risks and disasters, general and particular average, collision liability, protection and indemnity insurance and insurance against liability for injuries to persons, in insurance companies and under forms of policies approved by the trustee, for an amount equal to the full insurable value of such steamship, such insurance to be made with loss payable to said trustee and the policies deposited with it: And provided Further proviso as further, That there shall be filed with the Commissioner of the Banking Department of this State a schedule of the insurance upon such property, which schedule shall be signed by the trustee under said mortgage and shall be accompanied by the certificate of said trustee that the policies mentioned in said schedule are held by said trustee and are payable to said trustee in case of loss for the benefit of the holders of the outstanding bonds issued under such mortgage; and fur- Certificates of ther that similar certificates be filed from time to time by said trustee with said Commissioner of the Banking Department of this State evidencing renewals of said insurance by proper policies or legal insurance binders: Provided further, Further proviso as That by the terms of such mortgage, the mortgagor shall not suffer such steamship to become indebted in an amount exceeding five per cent of the original amount of the principal of said mortgage at any time and that the failure of the mortgagor to forthwith procure the release of such steamship or steamships, from mechanics', laborers', admiralty, to schedule of insurance. renewal. to excessive indebtedness. statutory or other liens, claims or charges against such steamship, shall constitute a default in the provisions of such mortFurther proviso. gage: And provided further, That such bonds shall have been approved by the securities commission hereinafter provided for. Secured negotiable paper. Real estate mortgages. (h) Said banks may loan the same upon negotiable paper, or other evidences of indebtedness, secured by any of the above mentioned classes of security; or (i) Upon notes or bonds secured by mortgage lien upon unencumbered real estate worth at least double the amount loaned; the remainder of such deposits may be invested in payment insured notes, bills or other evidences of debt, the payment of which Notes, bills, etc., by collateral security. May deposit Investments in approved negotiable paper. When bank to restore its reserve fund. Amount of liabilities permitted. Proviso. Proviso. Further proviso as to loans to officers and employes. is secured by the deposit with the bank, of collateral security consisting of personal property or securities of known marketable value, worth ten per cent more than the amount so loaned and interest for the time of the loan; or may be deposited in any national bank, trust company, or bank in cities in this or any other state, approved by the Commissioner of the Banking Department as reserve cities, and a portion of said. remainder not exceeding the capital and additional stockholders' liability, may be invested in negotiable paper ap proved by the board of directors, but the deposits in any one bank shall not exceed ten per cent of the total deposits, capital and surplus of the depositing bank. In case the actual reserve shall fall below the fifteen per cent above provided, the bank shall promptly and in good faith, take measures to restore and maintain its lawful reserve, in default of which the Commissioner of the Banking Department shall require such restoration within thirty days after notice, and a failure. to comply with such demand shall warrant proceedings to wind up the bank as provided in section six of this act. SEC. 52. The total liabilities to any bank of any person or of any company, corporation or firm for moneys advanced, including in the liabilities of the company or firm, the liabilities of the several members thereof, except special partners, shall at no time exceed one-tenth part of the amount of the capital and surplus of such bank, 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: Provided, however, That the foregoing limitations shall not apply to loans on real estate or other collateral securities authorized by this act, and deposited with the bank: Provided, however, That by a twothirds vote of directors, the liabilities to any bank of any person or company or corporation or firm may be increased to a sum not exceeding one-fifth of the capital and surplus of the bank: Provided further, That before any bank, under the supervision of the laws of this State, shall loan any of its funds to its officers or its employes, such loans shall be first submitted to the directors of such bank for their approval. vestments. Not more than one-fourth of the assets of any bank shall be Limit of other loaned or invested in steam railroad bonds and not more than loans and inone-tenth of the assets of any bank shall be invested in the bonds of any one railroad corporation described in paragraph (c) or (d) of section twenty-seven, and not more than one-twentieth of such assets in the bonds of any company or corporation described in paragraphs (e), (f) or (g) of said section, and not more than one-tenth of the assets of any bank shall be loaned to any one person, corporation or firm on the collateral pledges described in paragraph (h) of same section. who to constitute. SEC. 67. There shall be a board of commissioners for the Commissioners, purpose of passing on the securities mentioned in paragraphs (e), (f) or (g) of section twenty-seven of this act, consisting of the Commissioner of the State Banking Department, who shall be chairman, the Attorney General and the State Treasurer of this State, who shall be members of this board during their respective terms of office, which board shall be known as the Securities Commission. It shall be the duty Duty of. of this commission, whenever an issue of bonds, which shall come within the requirements of paragraphs (e) and (f) of section twenty-seven of this act, shall be presented to them, to examine into the financial conditions of the corporation issuing such bonds, and ascertain whether such issue is excessive as compared with the value of the property of such corporation, and if they shall find that such issue of bonds is not excessive and that they comply with the other requirements of said paragraph of said section, they shall so certify in a book to be kept in the State Banking Department for that purpose, and thereupon said banks may invest in such bonds. The actual expense of the commission in examining Expense of. the issues of bonds presented as aforesaid, shall be paid by by whom paid. the person or company applying to said commission to have such bonds certified as legal investment under said paragraphs of said section. This act is ordered to take immediate effect. [No. 263.] AN ACT to amend section twenty-six of chapter seventyeight of the revised statutes of eighteen hundred forty-six, entitled "Of the sale of lands of minors and other persons under guardianship, and securing the proceeds for their use," as added by act one hundred twenty-eight of the public acts of eighteen hundred ninety-five, being section nine thousand one hundred sixty-six of the Compiled Laws of eighteen hundred ninety-seven, as last amended by act two hundred seven of the public acts of nineteen hundred three. Section amended. Judge of Probate, may grant license To determine value and confirm sale. The People of the State of Michigan enact: SECTION 1. Section twenty-six of chapter seventy-eight of the revised statutes of eighteen hundred forty-six, entitled "Of the sale of lands of minors and other persons under guardianship, and securing the proceeds for their use," as added by act one hundred twenty-eight of the public acts of eighteen hundred ninety-five, being section nine thousand one hundred sixty-six of Compiled Laws of eighteen hundred ninety-seven, as last amended by act two hundred seven of the public acts of nineteen hundred three, is hereby amended to read as follows: SEC. 26. In any case where license to sell real estate is to sell real estate. applied for, the judge of probate may, in his discretion, after due notice to all persons interested as required by this chapter, and after taking or causing to be taken, the testimony of two or more credible and disinterested freeholders, under oath in writing, administered by said judge of probate, or by the judge of probate of the county in which the real estate is situated, grant a license to the guardian to dispose of said real estate at private sale, at the highest price obtainable, not less than the value thereof, as determined by said judge of probate, which sale shall be confirmed and approved by said judge of probate before any deed passing the title to said real estate so sold at private sale shall be valid and effectual: Provided, That said freeholders shall be well known to the judge taking such testimony to be credible witnesses and when taken by a judge not having the estate in charge shall be paid for and transmitted the same as depositions in other courts and in either case such testimony shall be filed and kept with other papers relating to the sale of said real estate: Further proviso as And provided further, That the provisions of this chapter relating to the oath and bond of the guardian before a sale shall be applicable to sales under the provisions of this section, and all other provisions of this chapter, except where plainly inapplicable, shall be applicable to sales under this section. Proviso as to testimony. to oath and bond. This act is ordered to take immediate effect. [No. 264.] AN ACT to authorize under certain conditions and restrictions the use of public streets, alleys and highways by persons, firms or corporations engaged in the manufacture, transmission and distribution of electricity for lighting, heating and power purposes. |