What Books Must Be Kept.

383. [Sec. 27.] It shall be incumbent upon the officers of each Banking Association or Savings Bank, to keep such books of account as may be necessary to show daily a full and complete aggregated record of the business of the Banking Association or Savings Bank, as the case may be; a failure to comply with this requirement shall subject the officers of the bank to a penalty of twenty-five dollars for each month that they fail to comply with the requirements of this section.

Capital Required for Savings Banks and Trust Companies.

384. [Sec. 28.] No savings bank and trust company shall be hereafter organized with less than One Hundred Thousand Dollars ($100,000.00) capital stock subscribed; provided that banking institutions to carry on the business of banking, other than savings banks, may be organized in incorporated towns and villages of less than twenty-five hundred population with a capital stock subscribed of not less than Fifteen Thousand Dollars ($15,000.00) and in incorporated towns of more than twenty-five hundred and less than thirty thousand population with a capital stock subscribed of not less than Fifty Thousand Dollars ($50,000.00). It is provided that savings banks may be established in towns and cities of less than fifteen thousand population with a capital stock of at least Thirty Thousand Dollars ($30,000.00) all of which must be fully paid in before commencing business; that savings banks may be established in towns and cities of more than fifteen and less than thirty thousand population with a capital stock of at least Fifty Thousand Dollars ($50,000.00) all of which must be fully paid in before commencing business. (Amd. Act 152, 1910, p. 232.)

Duty of Atty. General.

385. [Sec. 29.] It shall be the duty of the Attorney General when notified by the State Examiner of State Banks, that a Banking Association or Savings Bank is not complying with the laws of the State, to bring suit, to compel the delinquent Banking Association or Savings Bank to comply with the laws of the State regulating Banks and Banking; and where it shall occur that any Banking Association, or Savings Bank has not completed its capital as required by the laws on that subject the Attorney General shall bring and prosecute a suit to forfeit the charter of the delinquent Banking Association, or Savings Bank.

Creating Surplus.

386. [Sec. 30.] It shall be the duty of the board of directors of every banking association or savings bank to set aside one-tenth of the annual profits of said banking association or savings bank for the creation of a surplus fund until the said surplus fund shall equal twenty per centum (20 per cent.) of the capital stock of the said banking association or savings bank. It shall not be lawful for any banking association or savings bank to declare or pay any dividends on its stock unless said dividends shall have been earned within the preceding six months; if its dividends are half yearly, and within the preceding twelve months if its dividends are declared yearly. Provided, if any banking association or savings bank shall have accumulated an amount to the credit of its undivided profits in excess of what may be necessary to pay the dividend in question and losses, this section shall not apply. Provided further that all loans and discounts, overdrafts and other debts owned or held by any banking association, savings bank or trust company included in its resources which are past due for more than twelve months, and on which the interest has not been paid, shall be classed as bad debts and either be charged off or reduced in value after an appraisement by the Bank Examiner and two stockholders of the bank before any dividend shall be declared out of the profits of said 'bank. A failure to comply with the requirements of this section renders the delinquent banking association or savings bank liable to a penalty of five hundred dollars. (Amd. Act 140, 1906, p. 240.)

Penalties Go to General Fund.

387. [Sec. 31.] All penalties collected by the Attorney General or by any District Attorney shall be turned over to the State Treasurer for the general fund of the State, less the commission provided in this act.

Act 45 of 1902 to Take Precedence in What Cases.

388. [Sec. 32.] In case of conflict between any of the provisions of this act and any provisions of Act 45 of 1902, "An act relating to banks, organized and to be organized, for the purpose of conducting a savings, safe deposit and trust banking business, and defining, regulating ad limiting their powers," or in case the same subject matter be provided for in said Act 45 of 1902, the provisions of Act 45 of 1902 shall govern and control in so far as concerns savings, safe deposit and trust banks organized under

the provisions of said Act 45 of 1902, or hereafter excepting by amendment to their charters the benefit of said law.

Dividends and Surplus.

389. [Sec. 1, Act 65, 1900, p. 112.] The directors of any bank, banking association, corporation or company organized under the laws of this State, may quarterly or semi-annually declare a dividend of so much of the net profits of the bank, banking association, corporation or company, as they shall judge expedient; but each bank, banking association, corporation or company shall, before the declaration of a dividend carry one-tenth part of its net profits, earned since its last preceding dividend to its surplus fund until the same shall amount to twenty per centum of its capital stock.

No Part of Surplus or Capital Can Be Withdrawn.

390. [Sec. 2.] No bank, banking association, corporation or company, or any member thereof subject to this Act, 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 or the surplus fund hereinabove provided for. If losses have at any time been sustained by any such bank, banking association, corporation or company equal to or exceeding its undivided profits then on hand, no dividend shall be declared; and no dividend shall ever be made by any bank, banking association, corporation or company, while it continues its banking operations, to an amount greater than its net profits then on hand, deducting therefrom its losses and bad debts.

Penalty.

391. [Sec. 3.] Any officer or director of any bank, banking association, corporation or company, who shall assent to declaring and paying a dividend in excess of the net profits or that would impair the capital and twenty per cent. surplus herein provided for, shall be personally liable to the creditors of said bank, banking association, corporation or company, if any loss occur by reason of the payment of such dividend.

SAVINGS, SAFE DEPOSIT AND TRUST BANKS.

Number of Incorporators; Powers.

392. [Sec. 1, Act 45, 1902, p. 59.] Any number of persons, not less than five associating themselves for the purpose of con

ducting a savings, safe deposit and trust banking business in any of its branches, may constitute themselves a corporation with power and authority:

First. To have and enjoy succession by a corporate name, to be selected by themselves, for a period that shall be expressed and limited in the articles of association, not exceeding ninetynine years, and by that corporate name to contract, sue and be sued, plead and be impleaded, appear, answer, and prosecute in any and all courts of justice and elsewhere.

Second. To receive, hold, purchase, acquire and convey by and under their corporate name, such property, real and personal, including bonds, stocks and securities of the United States, or of any of the United States, or of any corporation, board or body, public or private thereof, as may be necessary, proper or convenient to the objects of the association, and to exercise, in relation thereto, all the direct and incidental rights of ownership. The real estate which such corporation may lawfully purchase, acquire, hold and convey, other than as trustee or agent, shall be: (1st.) Such as may be necessary for the proper transaction of their business.

(2nd.) Such as shall have been mortgaged to them in good faith as security for loans;

(3rd.) Such as shall be conveyed to them in satisfaction of debts previously contracted bona fide in the course of their business; and

(4th.) Such as they may purchase at sale under judgments or mortgages held by themselves, or in which they have an interest, by being subrogated to rights according to law; but they shall not have the power to hold any real estate acquired in any way, except such as may be held by them as agent or trustee, or necessary for the proper traisaction of their business, for a longer period than ten years.

Third. To make and use a corporate seal which shall be described in the articles of association.

Fourth. To name and appoint such managers and directors to administer the affairs of the corporation as they may think necessary and proper, the number and style of such directors or managers being prescribed in the articles of association; and to fix the compensation of all persons in their employment. At least a majority of the directors of such corporation shall be citizens of the State of Louisiana.

Fifth. To make and ordain such by-laws for the proper management of the affairs of the corporation as may be necessary and proper and in conformity with the law and the articles of association; and they may repeal, alter, or amend such by-laws at pleasure.

Sixth. To accept and execute trusts or agencies of any and every description which may be committed or transferred with their consent to them by any person or persons, corporation, board or body, public or private, whomsoever, or by any court of the State of Louisiana, or of the United States, or of any one of the United States. And such banks may be appointed by any person or by any court of this or any other State, or of the United States, executor, administrator, syndic, receiver, curator, tutor, trustee or assignee, in the same manner and to the same extent and under the same conditions that natural persons may be so appointed; and when acting in such capacity, they shall account, shall receive compensations, and shall be subject to all orders or decrees made by the proper tribunal in the same manner and to the same extent as natural persons acting in similar capacity; provided, that whenever any bank shall have been appointed curator of an interdict, or tutor of a minor, by any court or person, it shall have only the care, custody and administration, of the property of such interdict or minor, and the care and custody of the person of such interdict or minor shall be confided to such person as by law would otherwise be entitled to the curatorship or tutorship, and, in such case, the commissions allowed by law shall be equally divided between such bank and such person having the custody of the person of such interdict or minor; provided further that the designation in any will of an attorney to the succession, or the selection of an attorney by the surviving spouse, or heirs shall be binding upon such bank.

May Act as Executor, Tutor, Receiver, etc.

393. [Sec. 2.] When any court shall appoint said bank as executor, administrator, syndic, receiver, curator, tutor, trustee or assignee, or shall authorize the deposit of money or other valuables of any kind with said bank, the capital stock as paid in shall be taken and considered as security required by law for the faithful performance of its duties as such fiduciary; provided the court shall have the right to require other security, if it shall deem proper. The court may, if it deem necessary, from time to time, require additional security, and may require the State