446 



SAVINGS BANKS. 



Savings banks arc by law declared to be corpora- 

 tions possessed of the 'powers and functions of cor- 

 porations generally and as such may have perpetual 

 succession, sue and be sued, complain and defend iu 

 any court of law or equity, appoint such officers, 

 managers, or agent* as ihe business of the corpora- 

 tion requires, provide tor the management of its 

 property and the regulation of its affairs, contract 

 and be contracti-d with, receive money on < 

 and invest the same and exercise any additional 

 powers incidental to the business of a savings bank. 

 S'ot le.-is than thirteen persons can organize, each of 

 whom is required to make a written declaration that 

 lie will accept the responsibilities and faithfully dis- 

 charge the duties of a trustee of the institution if 

 the same shall be authorized by the bank superinten- 

 dent. This officer has discretionary power in regard 

 to the creating of new banks, being required to deter- 

 mine from the best sources of information at his 

 command, whether greater convenience of access to 

 a savings bank will l>e afforded to any considerable 

 number of depositors by opening a bank at the place 

 d^ignated. and if the density 'of the population in 

 the neighborhood ami in the surrounding country is 

 such as to alford a reasonable promise of adequate 

 support to the enterprise, and also whether the re- 

 *p msibility. character, and general fitness for the 

 di* -barge of the duties appertaining to such a trust 

 of the persons named as trustees are Huch as to com- 

 mand the confidence of the community in which the 

 savings bank is proposed to be located. On au- 

 thority to transact business being granted the per- 

 sons designated as trustees have the entire manage- 

 ment and control of the affairs of the corporation. 

 Residents of the State alone are eligible as trustees, 

 and whenever a trustee of one bank becomes 

 a trustee, officer, clerk, or employe in any other 

 savings bank, or upon borrowing, directly or in- 

 directly, any of the funds of the bank of which he is 

 a trustee, cr becoming a surety or guarantor fur 

 money borrowed of or a loan made by the bank, or 

 upon "failure to attend regular meetings of the board 

 or to perform any duties devolved upon him as a 

 trustee for six successive months, without having 

 previously been excused by the Ixiard, his office be- 

 comes vacant. But in the discretion of the board 

 such tni>tee~ arc eligible for re-election. The board 

 of trustees elect from their number a president and 

 two vice-presidents ; ami from their number or 

 otherwise, elect or appoint such officers and clerks, 

 whose salaries are fixed by the board, as they may 

 ee fit. Vacancies in the office of the trustee are 

 tilled by the Ixmrd, which has power from time to 

 tim to make sucli by-laws, rules, and regulations as 

 in iy be thought proper for the election of officers, 

 for'prencribing their respective powers and duties 

 mid the m inner of discharging the same ; for the 

 appointment and duties of committees, and gene- 

 rally for transacting, managing, and directing the 

 n:t'.iir< of the corporation. Regular meetings of the 

 board of trustees are required to be held as often as 

 once in each month, at which at least seven trustees 

 must be present. Trustees are prohibited by law 

 from having any interest whatever, direct or in- 

 direct, in the gains or profits of their banks, or from, 

 directly or indirectly, receiving any pay or emolu- 

 ment (or their services, except that trustees acting 

 as officers, whose duties require nnd receive their 

 regular and faithful attendance at the bank, may re- 

 ceive such compensation as in the opinion of a ma- 

 jority of the board of trustees shall be just and rea- 

 sonable ; such majority to be exclusive of any trustee 

 to whom compensation is voted ; but it is not lawful 

 to pay trustees, as such, for attendance at board 

 meetings. No trustee or officer, for himself or as 



(tuck* ind bond*. hom1 of cltle*, n<l prnnnal wcuritlr*. 

 Iu torn* (tw State* the back* deal ID commercial paper. 



the agent or partner of others, can borrow the funds 

 or deposits of the bank, or in any manner use the 

 same, except to make current and necessary pay- 

 ments authorized by the board of trustees, nor can 

 any trustee or officer become an iudoraer or surety, or 

 in any manner an obligor for moneys loaned by or 

 borrowed of his bunk. 



Savings banks are authorized by law to receive on 

 deposit Mich sums of money as may be offered by 

 individuals, corporations, or societies ; invest the 

 same and pay interest or dividends thereon. On 

 making first deposit, banks furnish to each depositor 

 a pa-s. hook jn which all deposits and withdrawals 

 arc required to be entered. Such pai-8-book contains 

 the rules and regulations of the bank, and is le^al 

 evidence between the corporation and the depositor 

 as to the terms on which the deposit is made. The 

 sums deposited together with accumulations are 

 required to l>e repaid to depositors or their legal 

 representatives, after demand, in such manner and 

 : at such times and after such previous notice, and 

 under such regulations as the board of trustees may 

 prescribe. The usual provision is for sixty days' 

 notice, which is only demanded in time of panic to 

 allay excitement. W bile depositors are not restricted 

 as to the number of banks with which they may 

 have accounts, the aggregate amount a single bank 

 can hold to the credit of an individual is limited to 

 $3000. Such limitation does not apply to deposits 

 made by order of a court of record or a surrogate. 

 Hanks may refuse to receive deposits, or at any time 

 return all or any portion thereof. Deposits made 

 by minors or females are held for their exclusive 

 benefit, free from the control or lien of all persons 

 whatsoever, except creditors. 



It is made the duty of trustees to regulate the rate 

 of interest or dividends on deposits not to exceed 5 

 per cent, per annum, iu such manner that debitors 

 shall receive, as nearly as may be, all profit* of the 

 corporation after deducting necessary expenses, nnd 

 reserving such amount as may be deemed expedient, 

 as a surplus fund for the security of depositors, 

 which to the amount of 15 percent, of deposits they 

 are authorized to gradually accumulate and hold, 

 to meet any contingency or "loss in business frnm the 

 depreciation of securities or otherwise. When sur- 

 plus exceeds 15 per cent, of deposits extra dividends 

 may be declared. Savings banks are prohibited 

 from declaring, crediting, or paying dividends or 

 interest exeept on authority of a vote of the board 

 of trustees. When dividends arc declared and 

 credited in excess of the earnings of a ravings bank, 

 trustees voting therefor are jointly and severally 

 liable to the liank for the excess so declared. 



Tin' securities in which investments may lawfully 

 be made are stocks or bonds or interest-ben ring 

 notes or obligations of the United States, or those 

 for which its faith is pledged ; 3.C5 bonds of the 

 District of Columbia ; interest-bearing stocks or 

 bonds of the State of New York and those issued l.y 

 cities, counties, towns, or villages thereof, nnd the 

 stocks or bonds of any State in the Union that hae 

 not, within ten years, defaulted in the payment of 

 any part of eith'cr principal or interest of any debt 

 authorized bv any legislature of such State to be 

 contracted. In bonds and mortgages on nnincum- 

 bcred real estate, situate in the Slnte, and worth, at 

 least, twice the amount loaned thereon, but not to 

 exceed (W per cent, of deposits can be so loaned. 

 In case the loan is on unimproved and unproductive 

 real estate the amount is restricted to 40 per cent, 

 of actual value. No loan on bond and mortgage can 

 be made except upon the report of a committee 

 charged with the duty of in\ estimating the winifi, 

 who certify the value of the premise s according to 

 their best judgment, which report is fdcd and pre- 

 served among the records of the institution. 



Trustees are required to invest the moneys de- 



