[No. 322.] AN ACT to amend sections twenty-seven and fifty-two 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," as amended, being compiler's sections six thousand one hundred sixteen and six thousand one hundred forty-one, respectively, of the Compiled Laws of eighteen hundred ninety-seven, as amended by act number two hundred sixtytwo of the public acts of nineteen hundred five. The People of the State of Michigan enact: amended. SECTION 1. Sections twenty-seven and fifty-two of act two sections hundred five, 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," such sections being compiler's sections six thousand one hundred sixteen and six thousand one hundred forty-one of the Compiled Laws of eighteen hundred ninety-seven, as amended by act two hundred sixty-two of the public acts of nineteen hundred five, are hereby amended to read as follows: deposits, SEC. 27. A savings bank shall keep on hand at least fif- Savings banks teen per cent of its total deposits, one-third of which re- amount of serve shall be in lawful money in its own vaults and the bal- reserve. ance 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 Investments. remainder of the savings deposits shall be invested by the board of directors as follows: bonds, etc. (a) In bonds of the United States, of any State or terri- In U. S. tory of the United States: Provided. That such State or ter- Proviso as to ritory has not, in the ten years preceding the time of such in- states, etc. vestment repudiated its debt and failed to pay the same, or the interest due thereon, or upon any part of such debt; or etc. (b) In the public debt or bonds of any city, county, city or township, village or school district of any State or territory county bonds, in the United States, which shall have been authorized by the legislature of such State or territory: Provided, The Proviso as to , total indebtedness of such municipality does not exceed five indebtedness. per cent of its assessed valuation, except by a vote of twothirds 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 road bonds. (c) In the legally authorized first mortgage bonds of Steam railany steam railroad corporation organized under the laws of any state of the United States: Provided. That such com- Proviso as to pany has for five years prior to the time of making such in- paid, etc. dividends Leased lines of railroads. Bonds retiring mortgage indebtedness of steam railroads. Proviso as to paid, capital dividends stock, etc. Proviso as to approval. Street railways, gas companies, etc. Proviso as to dividends paid, etc. vestment 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 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 Proviso as to five years: Provided, That the cost of construction and equipcost of places ment of the plant of such company shall exceed by at least and earnings. 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 encumbrances operation, more than enough to pay all interest accrued on Pro- Proviso as to approval ships. time of amount re tecting lien. (g) In the legally authorized first mortgage bonds of Steamship steamship companies: Provided, That such mortgages shall proviso as to be upon steel steamship or steamships for the carriage of certain steamfreight 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 as to are issued at the time of completion and enrollment of such issue. steamship or steamships, or within one year thereafter: And Provided further, That by the express terms of said Proviso as to mortgage, at least ten per cent of the total issue of said tired annually bonds shall be retired annually, beginning within two years and liability. 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 mort- Proviso as to gage shall be required to protect the lien of said mortgage trustees proby 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 Com- Proviso as to missioner of the Banking Department of this State a schedule of insurance, of the insurance upon such property, which schedule shall etc. 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 further, that similar certificates be filed from time Renewal of to time by said trustee with said Commissioner of the Bank- certificates. ing Department of this State, evidencing renewals of said. insurance by proper policies or legal insurance binders: Provided further, That by the terms of such mortgage, the Proviso as to mortgagor shall not suffer such steamship to become indebted of steamships. 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 certain liens of such steamship or steamships, from mechanics', laborers', to constitute admiralty, statutory or other liens, claims or charges against such steamship, shall constitute a default in the provisions filing schedule indebtedness default. of such mortgage: And Provided further, That such bonds Proviso as to approval. Secured negotiable paper. Notes secured on real es- payment of, shall have been approved by the securities commission hereinafter provided for; (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 by mortgage unencumbered real estate worth at least double the amount loaned; the remainder of such deposits may be invested in notes, bills or other evidences of debt, the payment of which 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 invested in notes, bills or other evidences of debt, the payment of which is secured by such property or securities deposited in a collateral deposit company organized under the laws of Deposited in this State; or may be deposited in any national bank, trust approved banks or trust companies. 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 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 Warrant pro- 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. Bank to maintain reserve. ceedings in case of failure. Amount of borrower's liabilities limited. 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 Proviso when be considered as money borrowed: Provided, however, That not applicable the foregoing limitations shall not apply to loans on real to certain estate or other collateral securities authorized by this act, and deposited with the bank, or a safety and collateral deProviso as to posit company organized under the laws of this State: Provided, however, That by a two-thirds 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 oneProviso as to fifth of the capital and surplus of the bank: Provided further, bank's officers That before any bank, under the supervision of the laws of this State, shall loan any of its funds to its officers or its limitations loans. increase of liabilities. loans to etc. amount of employes, such loans shall be first submitted to the directors This act is ordered to take immediate effect. 3 [No. 323.] AN ACT to amend section one of chapter six, as amended by act number two hundred fifty-four of the public acts of eighteen hundred ninety-seven, entitled "An act to pro'vide for the construction and maintenance of drains and the assessment and collection of taxes therefor, and to repeal all other acts relative thereto," approved June two, eighteen hundred ninety-seven, the same being compiler's section number four thousand three hundred fifty-four of the Compiled Laws of eighteen hundred ninety-seven, as amended by act two hundred seventy-two of the public acts of eighteen hundred ninety-nine. The People of the State of Michigan enact: amended. SECTION 1. Section one of chapter six, as amended by act Section number two hundred fifty-four of the public acts of eighteen hundred ninety-seven, entitled "An act to provide for the construction and maintenance of drains, and the assessment and collection of taxes therefor, and to repeal all other acts relative thereto," approved June two, eighteen hundred ninety-seven, the same being compiler's section number four thousand three hundred fifty-four of the Compiled Laws of eighteen hundred ninety-seven, is hereby amended to read as follows: drain, what SEC. 1. Within ten days after the letting of contracts, Computation and in case of an appeal, then forthwith after such appeal of cost of shall have been decided, the county drain commissioner shall to include. make a computation of the entire cost of such drain, which shall include all the expense of locating, establishing and constructing the same, including the commissioner's fees, cost of survey, fees and expenses of special commissioners, or jury, and amount of contracts for construction, also the cost of appeal in case the assessment of benefits made by |