vestments.

Not more than one-fourth of the assets of any bank shall be Limit of other loaned or invested in steam railroad bonds and not more than loans and inone-tenth of the assets of any bank shall be invested in the bonds of any one railroad corporation described in paragraph (c) or (d) of section twenty-seven, and not more than one-twentieth of such assets in the bonds of any company or corporation described in paragraphs (e), (f) or (g) of said section, and not more than one-tenth of the assets of any bank shall be loaned to any one person, corporation or firm on the collateral pledges described in paragraph (h) of same section.

who to constitute.

SEC. 67. There shall be a board of commissioners for the Commissioners, purpose of passing on the securities mentioned in paragraphs (e), (f) or (g) of section twenty-seven of this act, consisting of the Commissioner of the State Banking Department, who shall be chairman, the Attorney General and the State Treasurer of this State, who shall be members of this board during their respective terms of office, which board shall be known as the Securities Commission. It shall be the duty Duty of. of this commission, whenever an issue of bonds, which shall come within the requirements of paragraphs (e) and (f) of section twenty-seven of this act, shall be presented to them, to examine into the financial conditions of the corporation issuing such bonds, and ascertain whether such issue is excessive as compared with the value of the property of such corporation, and if they shall find that such issue of bonds. is not excessive and that they comply with the other requirements of said paragraph of said section, they shall so certify in a book to be kept in the State Banking Department for that purpose, and thereupon said banks may invest in such bonds. The actual expense of the commission in examining Expense of. the issues of bonds presented as aforesaid, shall be paid by by whom paid. the person or company applying to said commission to have such bonds certified as legal investment under said paragraphs of said section.

This act is ordered to take immediate effect.
Approved June 16, 1905.

[No. 263.]

AN ACT to amend section twenty-six of chapter seventyeight of the revised statutes of eighteen hundred forty-six, entitled "Of the sale of lands of minors and other persons under guardianship, and securing the proceeds for their use," as added by act one hundred twenty-eight of the public acts of eighteen hundred ninety-five, being section nine thousand one hundred sixty-six of the Compiled Laws of eighteen hundred ninety-seven, as last amended by act two hundred seven of the public acts of nineteen hundred three.

Section amended.

Judge of Probate, may grant license

To determine value and confirm sale.

The People of the State of Michigan enact:

SECTION 1. Section twenty-six of chapter seventy-eight of the revised statutes of eighteen hundred forty-six, entitled "Of the sale of lands of minors and other persons under guardianship, and securing the proceeds for their use," as added by act one hundred twenty-eight of the public acts of eighteen hundred ninety-five, being section nine thousand one hundred sixty-six of Compiled Laws of eighteen hundred ninety-seven, as last amended by act two hundred seven of the public acts of nineteen hundred three, is hereby amended to read as follows:

SEC. 26. In any case where license to sell real estate is to sell real estate. applied for, the judge of probate may, in his discretion, after due notice to all persons interested as required by this chapter, and after taking or causing to be taken, the testimony of two or more credible and disinterested freeholders, under oath in writing, administered by said judge of probate, or by the judge of probate of the county in which the real estate is situated, grant a license to the guardian to dispose of said real estate at private sale, at the highest price obtainable, not less than the value thereof, as determined by said judge of probate, which sale shall be confirmed and approved by said judge of probate before any deed passing the title to said. real estate so sold at private sale shall be valid and effectual: Provided, That said freeholders shall be well known to the judge taking such testimony to be credible witnesses and when taken by a judge not having the estate in charge shall be paid for and transmitted the same as depositions in other courts and in either case such testimony shall be filed and kept with other papers relating to the sale of said real estate: Further proviso as And provided further, That the provisions of this chapter relating to the oath and bond of the guardian before a sale shall be applicable to sales under the provisions of this section, and all other provisions of this chapter, except where plainly inapplicable, shall be applicable to sales under this section.

Proviso as to testimony.

to oath and bond.

This act is ordered to take immediate effect.
Approved June 16, 1905.

[No. 264.]

AN ACT to authorize under certain conditions and restrictions the use of public streets, alleys and highways by persons, firms or corporations engaged in the manufacture, transmission and distribution of electricity for lighting, heating and power purposes.

The People of the State of Michigan enact:

etc., for trans

SECTION 1. Any person, firm or corporation authorized by Use of highways the laws of this State to conduct the business of producing mission of and supplying electricity for purposes of lighting, heating electricity. and power, and which shall be engaged or which shall hereafter desire to engage in the business of the transmission of such electricity, shall have the right to construct and maintain lines of poles and wires for use in the transmission and distribution of electricity on, along or across any public streets, alleys and highways and over, under or across any of the waters of this State, and to construct and maintain in any such public streets, alleys or highways all such erections and appliances as shall be necessary to transform, convert and apply such electricity to the purposes of lighting, heating and power, and to distribute and deliver the same to the persons, firms and public or private corporations using the same: Provided, That the same shall not injuriously interfere with Proviso, not to other public uses of such streets, alleys or highways, or with other public the navigation of said waters, and that the designation and location of all lines of poles and wires shall be subject to the Location, by regulation, direction and approval of the common council of cities, the village council of villages, and the township board of townships, as the case may be: Provided, That this act Proviso as to shall not apply to the county of Wayne: Provided further, Further proviso. That nothing herein shall deprive cities, villages or townships

of the power and control over their streets and highways,

which they have by the general laws of this State.

This act is ordered to take immediate effect.

Approved June 16, 1905.

interfere with

uses.

whom granted.

Wayne.

[No. 265.]

AN ACT relating to negotiable instruments.

The People of the State of Michigan enact: SECTION 1. This act shall be known as the "Negotiable "Negotiable instruments law."

Instruments
Law."

GENERAL PROVISIONS.

defined.

SEC. 2. In this act, unless the context otherwise requires: Certain words "Acceptance" means an acceptance completed by delivery or notification. "Action" includes counterclaim and set-off. "Bank" includes any person or association of persons carrying on the business of banking, whether incorporated or not. "Bearer" means the person in possession of a bill or note

Act, when not applicable.

which is payable to bearer. "Bill" means bill of exchange and "note" means negotiable promissory note. "Delivery" means transfer of possession, actual or constructive, from one person to another. "Holder" means the payee or endorsee of a bill or note, who is in possession of it, or the bearer thereof. "Indorsement" means an indorsement completed by delivery. "Instrument" means negotiable instrument. "Issue" means the first delivery of the instrument, complete in form, to a person who takes it as a holder. "Person" includes a body of persons, whether incorporated or not. "Value" means valuable consideration. "Written" includes printed, and "writing" includes print. The person "primarily" liable on an instrument is the person who by the terms of the instrument is absolutely required to pay the same. All other parties are "secondarily" liable. In determining what is a "reasonable time" or an "unreasonable time," regard is to be had to the nature of the instrument, the usage of trade or business, if any, with respect to such instruments, and the facts of the particular case. Where the day, or the last day, for doing any act herein required or permitted to be done, falls on Sunday or on a holiday, the act may be done on the next succeeding secular or business day. The provisions of this act do not apply to negotiable instruments made and delivered prior to the passage hereof. In any case not provided for in this act the rules of the law merchant shall gov

ern.

Instrument,

TITLE I. NEGOTIABLE INSTRUMENTS IN GENERAL.

Article 1. Form and Interpretation.

SEC. 3. An instrument, to be negotiable, must conform to when negotiable. the following requirements:

Sum payable.

First, It must be in writing and signed by the maker or drawer;

Second, It must contain an unconditional promise or order to pay a certain sum in money;

Third, It must be payable on demand or at a fixed or determinable future time;

Fourth, It must be payable to order or to bearer; and Fifth, Where the instrument is addressed to a drawee, he must be named or otherwise indicated therein with reasonable certainty.

SEC. 4. The sum payable is a sum certain within the meaning of this act, although it is to be paid:

First, With interest; or

Second, By stated installments; or

Third, By stated installments, with a provision that upon default in payment of any installment or of interest the whole shall become due; or

Fourth, With exchange, whether at a fixed rate or at the current rate; or

Fifth, With costs of collection or an attorney's fee, in case payment shall not be made at maturity.

SEC. 5. An unqualified order or promise to pay is uncon- When promise to ditional within the meaning of this act, though coupled with: tional.

First, An indication of a particular fund out of which reimbursement is to be made, or a particular account to be debited with the amount; or

Second, A statement of the transaction which gives rise to the instrument.

But an order or promise to pay out of a particular fund

is not unconditional.

pay is uncondi

SEC. 6. An instrument is payable at a determinable future Instrument, time, within the meaning of this act, which is expressed to when payable. be payable:

First, At a fixed period after date or sight; or

Second, On or before a fixed or determinable future time

specified therein; or

Third, On or at a fixed period after the occurrence of a specified event, which is certain to happen, though the time. of happening be uncertain.

An instrument payable upon a contingency is not negotiable, and the happening of the event does not cure the defect. SEC. 7. An instrument which contains an order or promise When not to do any act in addition to the payment of money is not negotiable. But the negotiable character of an instrument otherwise negotiable is not affected by a provision which:

First, Authorizes the sale of collateral securities in case the instrument be not paid at maturity; or

Second, Authorizes a confession of judgment if the instru ment be not paid at maturity; or

Third, Waives the benefit of any law intended for the advantage or protection of the obligor; or

Fourth, Gives the holder an election to require something

to be done in lieu of payment of money.

But nothing in this section shall validate any provision

or stipulation otherwise illegal.

negotiable.

SEC. 8. The validity and negotiable character of an in- When validity, strument are not affected by the fact that:

First, It is not dated; or

Second, Does not specify the value given, or that any value

has been given therefor; or

Third, Does not specify the place where it is drawn or the place where it is payable; or

Fourth, Bears a seal; or

Fifth, Designates a particular kind of current money in which payment is to be made.

But nothing in this section shall alter or repeal any statute requiring in certain cases the nature of the consideration to

be stated in the instrument.

SEC. 9. An instrument is payable on demand:

etc., not affected.

When payable

First, When it is expressed to be payable on demand, or at on demand. sight, or on presentation; or