No. 4.] AGRICULTURAL LEGISLATION. 293 



AUDITING COMMITTEE. 



Section 10. The auditing committee shall inspect the securities, cash 

 and accounts of the bank, and shall employ accountants, authorized by 

 law to examine savings banks, to audit the books, records and accounts, 

 and may do so without previous notice to the directors or officers and with 

 such frequency and at such times as they deem necessary or expedient. 

 At the annual meeting of the shareholders the coimnittee shall submit its 

 report, including the results of audits made during the year, and such 

 recommendations as it may desire to make. At any time it may, by a 

 majority vote, call a meeting of the shareholders to consider any violation 

 of this act or of the by-laws, or any matter relating to the affairs of the 

 bank which, in the opinion of said committee, requires action on the part 

 of the shareholders. The committee, unless otherwise provided in the 

 by-laws, shall prescribe the method of keeping the mortgage register, 

 of holding and preserving the mortgages and other securities, of crediting 

 payments on mortgages, of cancelling mortgages, and of releasing the liens 

 of mortgages. The committee shall also ascertain that all mortgages, 

 deeds, assignments and other evidences of title to real estate have been 

 duly recorded according to law, and, in the event of failure on the part of 

 the proper officers to record any such instrument, the auditing committee 

 shall certify such fact upon the records of the bank, and such officers shall 

 be liable in damages to the bank for any loss sustained by reason of the 

 failure to record such instrument. The auditing committee shall fill va- 

 cancies in its own membership until the next amiual meeting of the share- 

 holders. 



meetings. 



Section U. The annual meeting of the corporation shall be held at 

 such time and place as the bj^-laws shall prescribe, but it must be held 

 within thirty days after the close of the fiscal year. Special meetings of 

 the shareholders may be called by the president, or by a majority of the 

 directors or of the auditing committee, and shall be called by the clerk 

 upon written application of three or more shareholders who hold at least 

 one tenth part in interest of the capital stock, stating the time, place and 

 purpose of the meeting. Meetings of the board of directors shall be held 

 at least quarterly. Notice of all meetings of the shareholders and of the 

 board of directors and of committees shall be given in the manner pre- 

 scribed in the by-laws, but at least seven days' notice shall be given of all 

 meetings of the shareholders, which notice shall state the purposes for 

 which the meeting is called. Meetings of the shareholders may be held 

 without notice if all the shareholders waive notice in writing and such 

 waiver is filed with the records of the meeting. Meetings of the board of 

 directors may be held without notice if all members thereof waive notice 

 in wi-iting and such waiver is filed with the records of the meeting. Meet- 

 ings of committees may be held without notice if all members thereof 



