and associations within and for the State of Indiana and such sale shall be for cash and for not less than the full appraised value thereof as shown by such appraisement, or re-appraisement. The proceeds of such sale or any amount derived from such assessment shall be applied by the directors of such association as follows: First: To the payment of the costs and expenses of such sale including attorneys' fees when such services are required. Second: To the payment or reduction of any amount assessed and unpaid on any outstanding capital stock, to make good such impairment of capital stock. Third: To the payment or reduction of any amount due thereon for unpaid subscription for such capital stock. Fourth: Any residue remaining after paying the amounts aforesaid shall be paid at once to the owner of such stock as disclosed by the books of such association. This section amends section 3341 Revision of 1914. 3341a. Legalizing sales of stock.-2. All sales of stock heretofore made or assessments collected under this act and as set out in section 13 of an act entitled "An act to authorize and regulate the incorporation of banks of discount and deposit in the State of Indiana," approved February 7, 1873, and acts amendatory thereto, the same being section 3341 of Burns' Revised Statutes of 1914 and in substantial compliance therewith and wherein the proceeds of sale were applied to the reduction of or making good an impairment of capital stock or paying the debts of such association are hereby legalized and made binding upon all the parties who had notice of such sale. Title to this act is to amend section 1, Act 1895, p. 202. Section 3 of the above act provides for the repeal of all laws and parts of laws in conflict therewith. [Acts 1919, p. 577. In force May 15, 1919.] 3343. Number of directors.-15. The number of directors in any such association shall be not less than five. The number of directors above five may, from time to time, be fixed by the by-laws of the association. A majority of such directors shall be citizens of this state. This section amends section 3343 Revision of 1914. See title to this amendment. [Acts 1921, p. 367. In force March 9, 1921.] 3347a. Branch banks prohibited.-1. It shall be unlawful for any person, firm or corporation engaged in the business of operating a state bank, private bank, savings bank, or loan, trust or safe deposit company to open, or establish a branch bank or branch office: Provided, That the provisions of this section shall not apply to branch banks or branch offices for which charters have heretofore been granted. 3347b. Penalty.-2. Any person violating the provisions of this act either individually or as an interested party shall be guilty of a misdemeanor and upon conviction thereof, shall be fined in a sum not less than $300.00, nor more than $1,000.00, or by imprisonment in the county jail not less than thirty days nor more than one year, or by both such fine and imprisonment. 3347c. Repeal.-3. All laws or parts of laws in conflict with this act are hereby repealed. Section 4 of the above act provides that the act be in force and effect from and after its passage. Deposits made in savings banks are held by the trustees of the bank in a quasi trust capacity, and such deposits are not taxable to the depositors, but are subject to taxation as against the bank. Beard v. People's Sav. Bank, 53 App. 185, 101 N. E. 325. [Acts 1917, p. 416. In force March 8, 1917.] 3366. Investment of deposits.-1. It shall be lawful for the trustees of any savings bank to invest the money deposited therein only as follows, to wit: First. In the bonds or notes of the United States. Second. In the notes or bonds of the State of Indiana. Third. In the orders or bonds of any county, township, city or town in this state, or of any other state of the United States, issued pursuant to the authority of law. Fourth. In the notes or bonds of any state in the union that has for five (5) years previous to such investment being made regularly paid the interest on its legal bonded debt in lawful money of the United States. Fifth. In bonds or notes secured by first (1st) mortgage on real estate situate in the state of Indiana, or in any adjoining county in an adjoining state, worth at least twice the amount loaned thereon. Sixth. In promissory notes, payable at some chartered bank within this state, and having not to exceed twelve (12) months to run from the date of the loan or purchase, made or endorsed by two (2) or more responsible freeholders, one of whom at least shall be a resident of the state of Indiana, and no such promissory note shall exceed the amount of ten thousand dollars ($10,000). Seventh. In real estate subject to the provisions of section twentyfour (24). Eighth. In dealing in exchange by purchasing and selling sight or time drafts and acceptances payable out of this state, but no such draft or acceptance shall exceed ten thousand dollars ($10,000) nor have to exceed one hundred twenty days (120) to run from the time of the purchase thereof. This act amends section 3366 of the Revised Statutes of 1914. When the money deposited in a savings bank is invested in nontaxable securities, such securities can not be taxed as cash. Beard v. People's Sav. Bank, 53 App. 185, 101 N. E. 325. [Acts 1919, p. 688. In force May 15, 1919.] 3366a. Insurance, bonding, trust companies or savings banks, investment of funds.-1. Any life insurance, fire insurance, live stock insurance, casualty or accident insurance, or bonding or surety company, or trust company, or savings bank, now or hereafter organized under the laws of the State of Indiana, in addition to the investment of its funds as now provided by law, be and hereby is authorized and empowered to invest its funds in the bonds issued by any federal land bank or joint stock land bank organized under the federal farm loan act. [Acts 1917, p. 175. In force May 31, 1917.] 3369. Reserve, deposit.-22. The trustees may keep in reserve not exceeding twenty per cent. (20%) of the total amount of deposits without investment, or deposit the same on call with or without interest, in any bank organized under the laws of this state or in any bank in any adjoining state, organized under the laws of such state, or in any national bank in the United States. Provided, That no such deposit shall be made outside the state of Indiana excepting in national banks as aforesaid without the approval of the auditor of the state of Indiana. This act amends section 3369 of the Revised Statutes of 1914. Cash that savings banks are required to keep on hand under the act of 1917, see section 3337a. SEC. ARTICLE 3.-PRIVATE BANKS. 3409. Examinations, receiver, failure, fees. SEC. 3411. Property in trust. 3409. Examinations, receiver, failure, fees. This section does not prevent a member of a partnership engaged in the banking business from having a receiver appointed to take charge of the assets and business of the firm. Wehmeier v. Mercantile Banking Co., 49 App. 454, 97 N. E. 558. 3411. Property in trust. This section applies to notes and mortgages held in trust by a bank. Drudge v. Citizens' Bank of Akron, 64 App. 217, 113 N. E. 440. Conversion will not lie to recover the value of notes and mortgages held by a bank in trust, which were appropriated to the payment of depositors when the bank was dissolved. Drudge v. Citizens' Bank of Akron, 64 App. 217, 113 N. E. 440. 3413. Suits, service of process. Private banks organized under the statutes of the state may sue and be sued, and a judgment recovered against such a bank binds all the persons interested in the bank. New Amsterdam etc. Co. v. New Palestine Bank, 59 App. 69, 107 N. E. 554. SEC. ARTICLE 4.-BANK EXAMINERS. 3418. Examiners, appointment, salary, bond, removal. 3419. Examinations, reports, fees. SEC. 3419a. Receivers for banks and trust companies. 3420. Disclosures by examiner, penalty. For [Acts 1921, p. 816. In force May 31, 1921.] 3418. Examiners, appointment, salary, bond, removal.-1. the purpose of examining all private banks, banks of discount and deposit, savings banks, loan and trust and safe deposit companies formed, organized and doing business pursuant to the laws of the State of Indiana, the bank commissioner, with the approval of the governor, shall appoint as many examiners to be denominated bank examiners as in their judgment are necessary to carry out the provisions of this act, the number of examiners to be appointed shall not exceed ten and each shall be paid a salary to be fixed by the bank commissioner and approved by the governor and necessary traveling and other expenses incident to their work, the salary and expenses to be paid out of the funds appropriated to the department of banking. Such examiners shall be subject to removal by the bank commissioner at any time, and shall qualify by giving a bond payable to the State of Indiana in the sum of ten thousand dollars ($10,000), to be approved by the bank commissioner, conditioned for the faithful performance of duty as prescribed by law. Such examiners shall have the powers and perform the duties hereinafter prescribed under the direction of the bank commissioner. This section amends section 3418 Revision of 1914. 3419. Examinations, reports, fees.-2. The affairs of every private bank, bank of discount and deposit, savings banks, loan and trust and safe deposit companies shall be examined by one of the examiners provided for by section 1 of this act, as often as shall be deemed necessary, and such examiner shall have the power to, and shall make a thorough examination into all the affairs of such bank, savings bank, loan and trust and safe deposit company, and in doing so, to examine any of the officers, and agents thereof, under oath; and such examiner shall have the power to administer oaths to such officers or agents; and if such private bank, bank of discount and deposit, savings bank, loan and trust and safe deposit company be in an insolvent or failing condition, or if the assets thereof are being wasted or improperly used or converted, said examiner shall at once notify the bank commissioner who shall thereupon direct said examiner or some other person appointed by him to at once take charge and control of said private bank, bank of discount and deposit, savings bank, loan and trust and safe deposit company, and all the books, notes, cash on hand and other asserts [assets], and said bank commissioner shall immediately thereafter make application to the judge of the circuit court or superior court of the county where such private bank, bank of discount and deposit, savings bank, loan and trust and safe deposit company is situated, either during term time or vacation, for the appointment of a receiver to take charge of said private bank, bank of discount and deposit, savings bank, loan and trust and safe deposit company. Notice of such application shall be given to the stockholders and depositors of said private bank, bank of discount and deposit, savings bank, loan and trust and safe deposit company by publication as directed by the judge of said court. Should any such private bank, bank of discount and deposit, savings bank, loan and trust and safe deposit company fail or suspend between the periods of examination authorized, it shall be the duty of the officers of said private bank, bank of discount and deposit, savings bank, loan and trust and safe deposit company to immediately notify the bank commissioner of such failure or suspension, and said commissioner shall thereupon appoint some proper person to take charge of the assets of said private bank, bank of discount and deposit, savings bank, loan and trust and safe deposit company pending the application for and appointment of a receiver as herein provided for. Such person so appointed to take charge of the assets of any such private bank, bank of discount and deposit, savings bank, loan and trust and safe deposit company shall receive the compensation assessed by the bank commissioner, which must be allowed him by the court having jurisdiction over the receiver appointed. Said examiner shall make a full and detailed report of the condition of the private bank, bank of discount and deposit, savings bank, loan and trust and safe deposit company to the bank commissioner and the private bank, bank of discount and deposit, savings bank, loan and trust and safe deposit company shall not be subject to any other visitorial powers than such as are authorized by this act, except such |