taken by it to bring suit in the name of the county board of sinking fund commissioners. SEC. 10. Before this act shall be operative in any county Referendum. in this State it shall be adopted by a two-thirds vote of the board of supervisors regularly convened at any regular, adjourned or special meeting of said board of supervisors for that particular county. SEC. 11. All acts or parts of acts in any wise contravening the provisions of this act are hereby repealed. Approved April 8, 1913. [No. 43.] AN ACT to amend section thirty-eight of act number two hundred five of the Public Acts of eighteen hundred eightyseven, entitled "An act to revise the laws authorizing the business of banking, and to establish a Banking Department for the supervision of such business," being compiler's section six thousand one hundred twenty-seven of the Compiled Laws of eighteen hundred ninety-seven, as amended by act number one hundred three of the Public Acts of nineteen hundred nine. The People of the State of Michigan enact: | SECTION 1. Section thirty-eight of act number two hun- Section dred five of the Public Acts of eighteen hundred eighty-seven, amended. entitled "An act to revise the laws authorizing the business of banking, and to establish a Banking Department for the supervision of such business," being compiler's section six thousand one hundred twenty-seven of the Compiled Laws of eighteen hundred ninety-seven, as amended by act number one hundred three of the Public Acts of nineteen hundred nine, is hereby amended to read as follows: etc. SEC. 38. Every bank existing or hereafter incorporated Inspection, under the laws of this State shall be subject to the inspection and supervision of the Commissioner of the Banking Depart ment, as provided in this act. He may also employ from time Examiners. to time such examiners to assist him and his deputy in the discharge of the several duties imposed upon them by this act, as he shall find necessary. Salaries of the examiners shall Salaries, be the sum of seventeen hundred dollars per annum during etc. the first year of their employment as such, and shall be increased not to exceed two hundred dollars each year of such employment until the full sum of two thousand two hundred dollars is reached, which sum shall be their annual salary thereafter. The salaries of the examiners shall be paid monthly by the State Treasurer, upon a voucher countersigned how increased, Expenses. Bond. by the Auditor General. Vouchers for the examiners' salaries must be first approved by the commissioner. All traveling expenses of examiners shall be paid as is indicated in this act and provided for in the payment of expenses of commissioner, deputy, and clerks. Bank examiners shall file with the Commissioner of Banking a bond for ten thousand dollars for the faithful discharge of their duties. Approved April 9, 1913. Section amended. [No. 44.] AN ACT to amend section twenty-seven of act number two hundred five of the Public Acts of eighteen hundred eightyseven, entitled "An act to revise the laws authorizing the business of banking and to establish a Banking Department for the supervision of such business," being compiler's section six thousand one hundred sixteen of the Compiled Laws of eighteen hundred ninety-seven, as amend ed by act number two hundred sixty-two of the Public Acts of nineteen hundred five and act number three hundred twenty-two of the Public Acts of nineteen hundred seven. The People of the State of Michigan enact: SECTION 1. Section twenty-seven of act number two hundred five of the Public Acts of eighteen hundred eighty-seven, entitled "An act to revise the laws authorizing the business of banking and to establish a Banking Department for the supervision of such business," being compiler's section six thousand one hundred sixteen of the Compiled Laws of eighteen hundred ninety-seven, as amended by act number two hundred sixty-two of the Public Acts of nineteen hundred five and act number three hundred twenty-two of the Public Acts of nineteen hundred seven, is hereby amended to read as follows: Savings banks SEC. 27. A savings bank shall keep on hand at least fifteen deposits, reserve required. per cent of its total deposits, one-third of which reserve shall be in lawful money in its own vaults and the balance on deposit, payable on demand, with banks, national or State, in cities approved by the commissioners as reserve cities, or invested in United States bonds; three-fifths of the remainder of the savings deposits shall be invested by the board of directors as follows: Investments. In U. S. bonds. (a) In bonds of the United States, of any state or territory of the United States: Provided, That such state or territory has not, in the ten years preceding the time of such investment repudiated its debt and failed to pay the same, or the interest due thereon, or upon any part of such debt; or (b) In the public debt or bonds of any city, county, town- City, etc., ship, village, or school district of any state or territory in bonds, etc. the United States, which shall have been authorized by the legislature of such state or territory: Provided, The total Proviso. indebtedness of such municipality does not exceed five per cent of its assessed valuation; except by a vote of two-thirds of the board of directors, such bonds may be purchased if the total liabilities do not exceed ten per cent of its assessed valuation; or Steam railroad bonds. (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 Proviso. 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 Leased lines. 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; mortgage in (e) In the legally authorized mortgage bonds of any Bonds retiring steam railroad incorporated under the laws of any state of debtedness. 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 Proviso. 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 ap Proviso, proved by the ecurities 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 9 approval. Street railway, ete. Proviso. Proviso. Proviso, approval. Steamship companies. Proviso. Proviso. Further proviso, when retired. Further proviso. Further proviso, insurance. 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 or 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 five years: Provided, That the cost of construction and equipment of the plant of such company shall exceed by at least fifty per cent the amount of the entire bonded indebtedness of such company, and the said plant and equipment shall be free from all other liens and encumbrances, and the said company shall have earned during the period it has been in operation, more than enough to pay all interest accrued on all said bonds and not less than four per cent per annum dividends upon its entire capital stock outstanding: Provided, Said issues of bonds shall have been approved by the securities commission hereinafter provided for; (g) In the legally authorized first mortgage bonds of steamship companies: Provided, That such mortgages shall be upon steel steamship or steamships for the carriage upon the great lakes and connecting waters of package freight and passengers combined of at least five thousand tons carrying capacity each, and upon bulk freighters of at least seven thousand tons carrying capacity each: Provided, Such bonds are issued at the time of completion and enrollment of such steamship, or steamships, or within one year thereafter: And 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 Provided further, That the trustees of such mortgage shall be required to protect the lien of said mortgage by attending to 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. 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 proviso. 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 further, 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, 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, statutory, or other liens, claims or charges against such steamship, shall constitute a default in the provisions of such mortgage: And Provided further, That such bonds Further shall have been & proved by the securities commission here- proviso, apinafter provided for; proval. negotiable (h) Said banks may loan the same upon negotiable paper Secured or other evidences of indebtedness, secured by any of the paper. above mentioned classes of security; or by mortgage payment (i) Upon notes or bonds secured by mortgage lien upon Notes secured unencumbered real estate worth at least double the amount on real estate. loaned; the remainder of such deposits may be invested in notes, bills or other evidences of debt, the payment of which Notes, etc., is secured by the deposit with the bank, of collateral se- security. curity 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 invested in notes, bills or other evidences of debt, the payment of which is secured by such property or securities deposited in a trust company organized under the laws of this State; 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 approved 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 Bank to mainper cent above provided, the bank shall promptly and in tain reserve. 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. Approved April 9, 1913. |