i which several officers shall hold their offices for the term of one year and until their successors are chosen and qualified. 2712. By-laws. 10. The board of trustees of every savings-bank shall have power, from time to time, to make such by-laws, rules, and regulations as they may think proper, consistent with the laws of this State, for the election of officers, for prescribing their powers and duties and the manner of discharging the same, for the appointment and prescribing of the duties of committees, and generally for transacting the business of the corporation; and a copy of said by-laws, rules, and regulations shall be transmitted to the Auditor of State, who shall be notified of any amendment or change therein. 2713. Quorum. 11. A quorum of the board of trustees of any savingsbank shall not be less than five, of whom the president or a vice-president shall be one; but it shall be lawful for the trustees, in their by-laws, to provide for a larger quorum; and where such quorum shall be nine trustees or more, it may be composed without the attendance of a president or a vice-president; but when the number of trustees is fifteen or more, the quorum shall not be less than seven, with a president or a vice-president in attendance. 2714. Reduction of number. 12. It shall be lawful for the trustees of any savings-bank, by a resolution to be incorporated in their by-laws, to reduce the number of the trustees as provided in section one [§ 2703] to a number not less than the minimum prescribed therein; and thereafter, as vacancies occur, the same shall not be filled until the number is reduced to such minimum or to such other number as the board, in such resolu tion, shall designate. 2715. Meetings. 13. Regular meetings of the board of trustees shall be held as often as once in three months; and they may provide, in their by-laws, for more frequent regular meetings and for the calling of special meetings. Minutes of the proceedings of each meeting shall be kept in a record provided for that purpose. 2716. Officers' bonds. 14. The trustees of every savings-bank shall require from the officers and agents of the corporation such security for their fidelity and the faithful performance of their duties as they shall deem necessary; and every officer or agent of such savings-bank who, by the rules and regulations thereof, is to have direct custody or control of the funds thereof, shall, before entering upon his duties, execute, with one or more freehold sureties to be approved by said Judge, an undertaking in such sums as said Judge may determine, payable to the State of Indiana for the use of such savings-bank or any creditor thereof or depositor therein, conditioned for the faithful discharge of his duties as such officer or agent, and for the payment of any loss or damage occasioned by his willful misconduct or neglect; which undertaking shall be filed in the office of the Clerk of the Circuit Court of the county wherein such bank is situated. 2717. Perquisites forbidden. 15. No trustee of any savings-bank shall directly or indirectly receive, for his services or otherwise, any pay or emolument except as hereinafter provided; and no trustee, officer, or agent of any savings-bank shall directly or indirectly, for himself or as the partner or agent of others, borrow any of the funds of such savings-bank or its deposits, or in any manner use the same, except to pay necessary expenses, or to make investments, or to deposit for safety, as directed by the board of trustees; nor shall any trustee, officer, or agent of any savings-bank be an indorser or surety for loans to others, nor in any manner be an obligor for moneys loaned by such savings-bank; nor shall any such trustee, officer, or agent receive, directly or indirectly, any commission or reward for procuring a loan from such savings-bank, or for selling to such savings-bank any note, mortgage, chose in action, or property of any kind whatever. 2718. Deposits. 16. Every savings-bank shall be authorized to receive on deposit any sum or sums of money that may be offered for that purpose by any person or persons, or by any religious or charitable corporations or societies, or that may be ordered to be deposited by any Court of this State, and to invest the same, and declare, credit, and pay dividends thereon, as hereinafter authorized, and not otherwise: Provided, That such savingsbank shall not be compelled to receive sums less than one dollar or exceeding five hundred dollars, in any one year, from any one depositor, unless provision therefor be made in the by-laws thereof, [1875, p. 129. In force August 24, 1875.] 2719. Re-payment of deposits. 17. The sums so deposited shall be re-paid to each depositor or his legal or authorized representatives, when required by him or by them, but at such times, and with such dividends from profits, and under such regulations, as the board of trustees may prescribe, not inconsistent with the provisions of this Act; which regulations shall be put and kept up in some conspicuous place in the room where the business of the savings-bank shall be transacted, and shall not be altered so as to affect any deposits which shall have been made previous to such alteration, until after notice to the person making the deposit so to be affected: Provided, however, That in order to prevent loss to the depositor by enforced sales of considerable amounts of securities below their par value, it shall be lawful for the trustees, in their discretion, to require a notice of one week, before the withdrawal of any part of any deposit of more than ten dollars and not exceeding a hundred dollars; of two weeks, before the withdrawal of any part of any deposit of more than one hundred dollars and not exceeding five hundred dollars; of three weeks, before the withdrawal of any part of any deposit of more than five hundred dollars and not exceeding one thousand dollars; of thirty days, before the withdrawal of any part of any deposit of more than one thousand dollars and not exceeding two thousand dollars; of sixty days, before the withdrawal of any part of any deposit of more than two thousand dollars and not exceeding three thousand dollars; and of ninety days, before the withdrawal of any part of any deposit of over three thousand dollars; but in any case where a deposit has been made for a definite time, no notice for a withdrawal at the expiration thereof shall be necessary, unless the depositor fail to withdraw the same within ten days: And Provided, further, That if at any time, in the opinion of the Auditor of State, any savings-bank is solvent and doing business according to law, and that it is necessary, in order to prevent a run on such bank, and also to prevent loss and sacrifice to the depositors, the trustees of such bank may, by and with the written consent of such Auditor, make any and all changes deemed necessary in regard to the notices which are above required to be given by the depositors for the withdrawal of their deposits, and also extend the time that notices shall be given by the depositors, for the withdrawal of any and all deposits, to any period of time not exceeding six months. [1869 S., p. 104. In force May 12, 1869.] 2720. Deposits by aliens, infants, or females. 18. Whenever any deposit shall be made in a savings-bank by an alien, minor, or a female being or thereafter becoming a married woman, the same shall be held for the exclusive right and benefit of such depositor, free from the control or lien of all persons except creditors, and shall be re-paid, with the dividends thereon, to the person making the deposit; and the receipt or acquittance of such alien, minor, or female shall be a sufficient release and discharge to the corporation for such deposit. [1873, p. 28. In force March 7, 1873.] 2721. Investments. 19. It shall be lawful for the trustees of any sav ings-bank to invest the money deposited therein only as follows, to-wit: First. In the stocks or bonds or treasury-notes of the United States. Second. In the stocks or bonds of this State. Third. In the orders or bonds of any county, city, or town in this State, issued pursuant to the authority of law. Fourth. In the stocks or bonds of any State in the Union that has, for five 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 mortgage on unincumbered real estate situate in the county where the bank is located, or in an adjoining county (or in any other county in the State of Indiana) worth, exclusive of perishable improvements, at least twice the amount loaned thereon. Sixth. In promissory notes or bills of exchange before their maturity, payable at some chartered bank within this State, and having not to exceed twelve months to run from the date of the loan or purchase, made or indorsed by two or more responsible freeholders of the State of Indiana: Provided, That no such note or bill shall exceed the sum of ten thousand dollars, and that no more than ten thousand dollars shall be loaned upon the same security: Provided further, That no money shall be so invested unless said notes or bills are made or indorsed by at least one freeholder of the county in which said bank is located. Seventh. In real estate subject to the provisions of section twenty-four. [2726.] Eighth. In dealing in exchange, by purchasing and selling sight or time drafts payable out of this State: Provided, That no draft shall be purchased by any savings bank, unless the same be made or indorsed by one or more responsible freeholders of the county in which the bank is located or an adjoining county, and no such draft shall be for a larger sum than ten thousand dollars, nor shall any time draft payable out of the State be so purchased which shall have, at the time of such purchase, more than sixty (60) days to run until it matures: And provided, also, That not more than one draft shall be held by any such bank, at any one time, which is secured by the same indorsers or by any of the same indorsers. [As amended, 1893 S., p. 273. In force March 3, 1893. [1869 S., p. 104. In force May 12, 1869.] 2722. Loans on stocks. 20. It shall be lawful for the trustees of any savings-bank, while awaiting opportunity for the judicious investment of the funds deposited with them, to loan the moneys so deposited upon the secu rity of the stocks and other securities mentioned in the preceding section, not exceeding ninety per cent. of the cash market value thereof. 2723. Depreciation of securities. 21. Should the stocks or other securities on which loans are made, pursuant to the provisions of the last preceding section, depreciate in value after making any loan thereon, it shall be the duty of the trustees to require the immediate payment of such loan made by them thereon, or additional security therefor, so that the amount so loaned shall at no time exceed ninety per cent. of the market value of such securities; and no loan shall be so made without an agreement from the borrower that the same shall be subject to the conditions of payment or of additional security, as required by this section. 2724. Reserve. 22. The trustees may keep in reserve not exceeding twenty per cent. of the total amount of deposits without investment, or deposit the same on call, with or without interest, in any bank in this State organized under laws thereof or under the laws of the United States. 2725. Restrictions on loans. 23. No loan shall be made upon the security of real estate, as provided in subdivision five of section nineteen [§ 2721]. or upon notes or bills, as provided in subdivision six of said section, without the consent of a majority of the trustees, or the unanimous consent of the committee of investment which may be created under the by-laws of such bank. 2726. Real estate purchases. 24. It shall be lawful for the trustees of any savings-bank to purchase, hold, and convey real estate as follows, and not otherwise: First. A lot and banking-house requisite for the transaction of its business, and for an income from such portions of the same as are not required for its own use. Second. Such as shall have been mortgaged to it in good faith for money loaned, or upon which it shall have purchased a mortgage. Third. Such as shall have been purchased at sales upon judgments or decrees obtained upon claims in favor of the bank, or which may be so purchased to prevent loss upon claims held by the bank. 2727. Banking-house-Cost. 25. No banking-house shall be erected or purchased by any savings-bank until the estimated cost of the same, and of the income to be derived therefrom, shall be submitted to and approved by the Auditor of State; nor shall the same cost to exceed five per cent. of the amount of deposits of such bank. 2728. Real estate sales. 26. All such real estate as is described in subdivisions two and three of section twenty-four [$ 2726] shall be sold within three years after the same has become vested in such savings-bank, if the same will bring the amount due on account thereof; and if it can not be sold for a sufficient sum for that purpose, the Auditor of State may give such further time as he shall deem necessary in which to sell the same. 2729. Restrictions on dealings. 27. It shall not be lawful for any savings-bank to deal or trade in real estate in any other case or for any other purpose than as authorized in section twenty-four [§ 2726], or to deal or trade in any goods, wares, or merchandise, except as herein authorized, and except such personal property as may be necessary in the transaction of its business. [1881 S., p. 89. In force September 19, 1881.] 2730. Surplus fund. 28. It shall be the duty of the trustees of every savings-bank to reserve and set aside from the gross amount of gains or profits of the institution not less than one-half of one per cent. per annum on the deposits, to be held and invested as provided for in this Act, as a surplus fund to meet any contingency in its business, until such surplus shall be equal to ten per cent, upon the amount of deposits; and it shall be lawful to accumulate such surplus until the same shall equal twentyfive per cent. upon the whole amount of deposits so held. [1869 S., p. 104. In force May 12, 1869.] 2731. Accounts and dividends. 29. All savings-banks shall make up their accounts semi-annually to the first days of January and July in each year; and all dividends or profits shall be divided, credited, or paid to the depositors on or before the thirty-first days of January and July, respectively. 2732. Dividends from profits. 30. It shall not be lawful for the trustees of any savings-bank, or for any officer or agent thereof, to declare or pay any dividend except from profits actually earned during the period for which the same is made, after deducting therefrom the necessary expenses incurred in transacting the business of the corporation, and not less than one-half of one per cent. upon the deposits at the time of making such dividend, for account of the surplus fund, as provided in section twenty-eight [§ 2730]. [1873, p. 28. In force March 7, 1873.] 2733. Restrictions on dividends. 31. It shall not be lawful for the trustees of any savings-bank to declare or allow dividends on any deposit for a longer period than the same has been deposited; except that deposits made not later than the tenth days of January, April, July, and October in each year, may, unless prohibited by the by-laws of the bank, have dividends, provided the same shall not exceed six per cent. per annum, declared upon them, the same as though deposited on the first day of either of those months respectively. And no dividend shall be paid unless upon deposits when the same are declared: Provided, That the trustees may in their discretion allow dividends upon moneys that shall have been on deposit but which shall have been withdrawn prior to the regular times for declaring dividends. [1869 S., p. 104. In force May 12, 1869.] 2734. Limit of dividends. 32. No dividend shall be declared upon any deposit exceeding the sum of five thousand dollars, or upon any or all of several deposits standing in the name of any one depositor, in trust or otherwise, whose aggregate shall exceed said sum, unless the same shall have been on deposit for at least six months prior to such dividend being declared. 2735. Discrimination in dividends. 33. It shall be lawful for the trustees of any savings-bank to discriminate (in the modes to be provided in their by-laws) in the dividends declared by them, between the deposits of a thousand dollars and under and the deposits of more than a thousand dollars, and between those deposits which have remained undiminished for one year and upwards, and those that have had some portion withdrawn within one year preceding such dividend, so that deposits of the smaller amount or remaining undiminished the longer time shall receive a larger pro rata dividend than the others. 2736. Division of profits. 34. It shall be the duty of the trustees, after deducting the necessary expenses and the reserve for the surplus fund (which shall not be less than a half per cent. nor exceed three per centum), to divide as nearly as may be practicable all the remaining profits, within |