BANKS. a thorough examination of the affairs of such bank, and file a certified copy of his report with said petition. Any creditor or stockholder may, on or before the time fixed by the notice, and afterwards if permitted by the court, file written objections to the dissolution of such corporation. The petition and objections thereto, if any, shall stand for hearing the same as a civil action; and if upon the hearing thereof the court shall be satisfied that the petition is true and that there is no valid objection to the dissolution of such corporation, it shall render judgment dissolving the same. [Id., § 414.] Management and Control.-SEC. 96. The affairs and business of any banking corporation doing business under this act shall be managed and controlled by a board of directors, not less than five nor more than thirteen in number, who shall be selected from the stockholders at their annual meeting, which shall be held on any day between the 1st and 10th days of January of each year, and in the manner provided in the general corporation act. A majority of such directors shall be residents of Kansas. The board shall designate one of their number to act as president and one as secretary, and may designate one or more of their number to act as vice-president or vice-presidents, and shall select from among the stockholders a cashier. Such officers shall hold their offices for the term of one year and until their successors are elected and qualified, and before entering upon the discharge of their duties shall take and subscribe to an oath that they will, so far as the duty devolves upon them, diligently and honestly administer the affairs of such bank, and will not knowingly or willingly permit to be violated any of the provisions of the law, and that they are the owners, in good faith, and in their own right, of the number of shares of stock subscribed by them or standing in their names on the books of the bank; and no person shall hold the office of president or vice-president of any bank unless he owns, in his own name and right and in good faith, at least five hundred dollars of stock, which shall not be pledged or in any way hypothecated: Provided, That any trust company which shall be the owner of the required amount of stock in any bank may, by resolution of its board of directors, designate one of its stockholders to represent it, and when so designated such stockholder shall be deemed and held to be an owner in good faith for the purposes of this act. Such oath, subscribed by the directors making it, and certified by the officer before whom it is taken, shall be immediately transmitted to the bank commissioner and shall be filed and preserved in his office. The board of directors shall require the cashier and any and all other officers having the care and handling of the funds of the bank to give good and sufficient bond, to be approved by them and held by such custodian as the board may designate. The board of directors shall hold not less than four regular meetings each year, and at such meetings a thorough examination of the books, records, funds and securities held by the bank shall be made by them, and the result of such examination shall be recorded in detail upon the record-book of the bank. A certified copy of the record of such meeting shall be forwarded to the bank commissioner within ten days after the holding of the same. [Laws 1903, ch. 69, §1.] Shareholders Liable.- SEC. 97. The shareholders of every bank organized under this act shall be additionally liable for a sum equal to the par value of stock owned and no more. [G. S. 1901, § 416.] Funds, how Invested.- SEC. 98. No bank shall employ its moneys, directly or indirectly, in trade or commerce, by buying and selling goods, chattels, wares and merchandise, and shall not invest any of its funds in the stock of any other bank or corporation, nor make any loans or discounts on the security of the shares of its own capital stock, nor be the purchaser or holder of any such shares, unless such security or purchase shall be necessary to prevent loss upon a debt previously contracted in good faith; and stock so purchased or acquired shall, within six months from the time of its purchase, be sold or disposed of at public or private sale; after the expiration of six months any such stock shall not be considered as a part of the assets of any bank: Provided, That it may hold and sell all kinds of property which may come into its possession as collateral security for loans or any ordinary collection of debts, in the manner prescribed by law: Provided further, That any goods or chattels coming into the possession of any bank as aforesaid shall be disposed of as soon as possible, and shall not be considered as a part of the bank's assets after the expiration of six months from the date of acquiring same. [Id., § 417.] Funds on Hand.- SEC. 99. Each bank doing business under this act shall have on hand at all times in available funds. the following sums, to wit: Banks located in cities or towns having less than five thousand population, an amount equal to twenty per cent. of their entire deposits; and banks located in cities having over five thousand population, an amount equal to twenty-five per cent. of their entire deposits, one-half of which may consist of balances due to them from good solvent banks located at commercial centers and at such other points as the bank commissioner may approve, and one-half shall consist of actual cash: Provided, That any bank which is made the depository for the reserve of any other bank or banks shall have on hand at all times, in the manner herein provided, twenty-five per cent. of its deposits. Cash items shall not be considered as a part of the reserve of any bank. Whenever the available funds in any bank shall be below the required amount, such bank shall not increase its investments by making any new loans or discounts otherwise than by discounting or purchasing bills of exchange payable at sight, nor make any dividends of its profits, until the required proportion between the aggregate amount of deposits and its lawful money reserve has been restored; and the bank commissioner shall notify any bank whose lawful money reserve shall be below the amount above required to be kept on hand, to make good such reserve, and if such bank or association. shall fail to do so for a period of thirty days after such notice, it shall be deemed to be insolvent, and the bank commissioner shall take possession of same and proceed in the manner provided in, this act relating to insolvent banks. The bank commissioner may refuse to consider as a part of its reserve balances due to any bank from any other bank or association which shall refuse or neglect to furnish him with such information as he may require from time to time relating to its business with any bank doing business under this act which shall enable him to determine its solvency: Provided, That all savings banks or savings associations which do not transact a general banking business shall be required to keep on hand at all times, in actual cash, a sum equal to ten per cent. of their deposits, and shall be required to keep a like sum invested in good bonds of the United States, or state, county, school district or municipal bonds of the state of Kansas, worth not less than par. [Id., § 418.] Loans Limited. SEC. 100. The total liability to any bank of any person or company, corporation or firm, for money borrowed, including in the liabilities of a company or firm the liabilities of the several members thereof, shall not at any time exceed fifteen per cent. of the capital stock and surplus of such bank actually paid in; but the discount of bills of exchange drawn in good faith against actual existing values or loans upon produce in transit, or upon warehouse or elevator receipts as collateral security, and the discount of commercial or business paper actually owned by the person negotiating the same, shall not be considered as money borrowed. The bank commissioner may at any time order any excess loan reduced to the legal limit within sixty days from the date of notification by him. [Id., § 419.] Penalty for False Statement.-SEC. 101. Every officer, director, agent or clerk of any bank (other than national bank) doing business in the state of Kansas, who willfully and know BANKS. ingly subscribes to or makes any false report or any false statement or entry in the books of such bank, or knowingly subscribes or exhibits any false writing or paper, with the intent to deceive any person as to the condition of such bank, shall be punished by a fine not to exceed one thousand dollars, or by imprisonment in the penitentiary not less than one year nor more than five years. [Id., § 420.] Penalty for Insolvent Bank Receiving Deposits.*SEC. 102. No bank shall accept or receive on deposit, with or without interest, any money, bank bills or notes, or United States treasury notes, gold or silver certificates, or currency, or other notes, bills, checks, or drafts, when such bank is insolvent; and any officer, director, cashier, manager, member, partner or managing partner of any bank, who shall knowingly violate the provisions of this section or be accessory to or permit or connive at the receiving or accepting on deposit of any such deposit, shall be guilty of a felony, and upon conviction thereof shall be punished by a fine not exceeding five thousand dollars, or by imprisonment in the penitentiary not less than one year nor more than five years, or by both such fine and imprisonment. [Id., § 421.] Banks not Allowed without Authority.- SEC. 103. It shall be unlawful for any individual, firm or corporation to transact a banking business, or receive deposits, without having * Mere negligence in not ascertaining bank's insolvency is not a crime under the statute. Both insolvency and knowledge of it must be proved; it is not enough that insolvency might have been discovered. But, on the question of knowledge, the jury may consider the accused's relations to the bank as managing officer, and his duty in the premises. (The State v. Tomblin, 57 Kan. 841.) It is immaterial whether the party making the deposit, e. g., a county treasurer, was authorized to make it; for whether rightfully made or not, it was a deposit within the meaning of the law. Neither need the state prove that the bank held the bank commissioner's certificate authorizing it to transact business. (Id., 841-845.) Capital stock and surplus are not to be considered liabilities in determining whether the bank was solvent when a deposit was received. (The State v. Myers, 54 Kan. 206.) |