authorized by law to transact business in this state, and all persons, copartnerships, or corporations authorized by chapter 125 of the acts of the seventieth regular session of the general assembly, to engage in making small loans, are hereby transferred to the department of banking hereby created, and all such powers and authority shall hereafter be exercised by the bank commissioner provided for in this act instead of by the auditor of state, and all such laws relating to such several institutions are hereby continued in full force and effect, excepting as modified by this act. 3328c. Transfer of records by auditor of state.-3. Upon the taking effect of this act all the books, records, documents, reports, files, filing cases and equipment now in the office of the auditor of state, relating to or in anywise connected with the business of all banks, all loan, trust and safe deposit companies, building and loan associations, all mortgage guarantee companies, all rural loan and savings associations, and all business of making small loans, all as mentioned and defined in section two of this act, shall be and are hereby transferred to the department of banking hereby created. 3328d. Act effective September 30, 1920-Termination of offices. 4. This act shall be in full force and effect on September 30th, 1920, and the terms of office and employment of the bank clerk, assistant bank clerk, second assistant bank clerk, building and loan clerk, building and loan examiners, and bank examiners, and all other employees in the banking department of the auditor of state as now organized, shall cease on said date. 3328e. Traveling expenses.-5. The bank commissioner, deputy bank commissioner and all other appointees and employees of such department shall be allowed and paid all necessary office expenses, and all necessary expenses incurred while traveling in the performance of official duties. Section 6 provides that this act shall be known as the Southworth-Symons act. ARTICLE 1.-OF DISCOUNT AND DEPOSIT. SEC. 3329a. Charter board created. 3329c. Investigation of proposed banks. 3329f. Penalty for violation. 3331. President and cashier, bonds. SEC. 3332a. Trusts, powers of banks to exe- 3334. Who eligible as directors. 3341. Liability of stockholders, asses- 3341a. Legalizing sales of stock. 3329a. [Acts 1915, p. 550. In force March 9, 1915.] Charter board created.-1. That there is hereby created a state charter board, to be composed of the governor, secretary of state, and the auditor of state, which shall meet on the first and third Wednesday of each month in the office of the governor. The governor shall be president, and the clerk of the banking department shall be the secretary of the board. [Acts 1917, p. 689. In force May 31, 1917.] 3329b. Board approves applications for bank and trust company charters.-2. All applications for the organization and incorporation of banks of discount and deposit, saving bank, and loan, trust and safe deposit companies shall be referred to the charter board. The charter board shall make a careful examination as to the financial standing and character of the incorporators, organizers or partners: also of the public necessity of the business in the community in which it is sought to establish a bank of discount and deposit, a savings bank, or loan trust and safe deposit company, and if the board shall determine either of the questions unfavorably to said applicants, organizers or partners, it shall refuse said charter. This section amends section 2, Acts 1915, p. 550, being section 3329b Supplement of 1918. [Acts 1915, p. 550. In force March 9, 1915.] 3329c. Investigation of proposed banks.-3. It shall be unlawful for any individual, firm, or corporation to hereafter engage in a banking business after the enactment of this act without first receiving from the charter board the approval of their application. Any person violating the provision of this section 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, or by imprisonment in the county jail not less than thirty days nor more than one year, or by both such fine and imprisonment. When in the judgment of said charter board it is advisable to make a personal investigation as to the need and necessity of establishing a bank of discount and deposit, private bank, savings bank, or loan, trust or safe deposit company in any community, then the board may appoint some person to make a thorough investigation, and said person shall make a written report of his findings and file the same with the charter board; such person so appointed shall receive a compensation of five ($5.00) dollars per day, and necessary traveling expenses, the same to be paid by the petitioners for a bank of discount and deposit, private bank, savings bank, or loan, trust and safe deposit company. [Acts 1919, p. 681. In force May 15, 1919.] 3329d. Branch banks or office, charter.-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 without first having obtained a charter from the state charter board. 3329e. Application to state charter board.-2. All applications for the opening or establishing of any branch bank or branch office contemplated in section 1 of this act shall be made to the state charter board and before granting a charter, the charter board shall ascertain to its satisfaction that the public convenience and advantage will be subserved and promoted by opening or establishing a branch bank or branch office in the community where it is proposed to be located. 3329f. Penalty for violation.-3. 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 any sum not less than three hundred dollars ($300) nor more than one thousand dollars ($1,000), or by imprisonment in the county jail not less than thirty (30) days nor more than one (1) year, or by both such fine and imprisonment. 3331. President and cashier, bonds. The directors of a bank have no authority to provide that the bond of a president or cashier of a bank shall limit their liability to less than the obligations or liability that the statute imposes upon such officers. United States Fidelity etc. Co. v. Poetker, 180 Ind. 255, 102 N. E. 372. Bonds executed by the officers of a bank organized under the laws of the state are official bonds within the meaning of the statute providing that bonds executed by public officers shall not be void for want of form or substance, and the statute regulating the duties of bank officers becomes a part of the bonds given by such officers, and the principal and sureties are held liable on such bonds for the failure of such officers to perform the duties required of them by law. United States Fidelity etc. Co. v. Poetker, 180 Ind. 255, 102 N. E. 372. A president of a bank is liable on his bond required by this section and section 3334, for inducing loans to himself and brother, both being insolvent. American Surety Co. v. State ex rel. Booth, App. 127 N. E. 844. [Acts of 1915, p. 310. In force April 26, 1915.] 3332a. Trust, powers of banks to execute.-1. That every person, firm or corporation transacting a banking business subject to the provisions of an act entitled, "An act to regulate and supervise the business of banking by individuals, partnerships or unincorporated persons," approved March 8, 1907; and every corporation transacting a banking business as prescribed in, "An act to authorize and regulate the incorporation of banks of discount and deposit in the state of Indiana," approved Feb. 7, 1873, and all acts amendatory or supplemental thereto, and every national bank coming within the United States federal reserve act shall be empowered by this act to accept and execute trusts of any and every description which may be committed or transferred to them, under the same rules and regulations as now govern like powers in loan and trust companies. In case of any person, firm or corporation transacting a banking business and accepting any trust under the provisions of this act, the president or cashier of such bank is authorized to receive and execute the same in the name of the bank. See sections 3329 to 3347 and 3402 to 3417 inclusive Revision of 1914. 3334. Who eligible as directors. See note to section 3331. [Acts 1917, p. 189. In force May 31, 1917.] 3337a. Cash to be kept on hand.-1. That every bank of discount and deposit, savings bank, loan and trust and safe deposit company or private bank in the State of Indiana receiving commercial deposits payable upon demand and subject to check, shall at all times have on hand or in bank, in cash or currency an amount equal to at least twelve and one-half per cent. (12%) of the aggregate amount of such commercial deposits. [Acts 1919, p. 832. Law without the signature of the Governor.] 3341. Liability of stockholders, assessments, sale of stock.-13. The shareholders of each bank or association formed under the provisions of this act shall be individually liable to an assessment of not to exceed one hundred per centum (100%) of the par value of their respective shares of capital stock, and in addition to all assessments for unpaid subscriptions for capital stock or parts thereof, same to be levied and collected as hereinafter provided when such assessment is required for the payment of the debts or liabilities of such bank or association or to restore the capital stock thereof. Any person holding shares of such stock as trustee or in any other fiduciary capacity shall not be individually liable as herein provided but the person for whom such trustee or other person is so holding in such fiduciary capacity, his estate or assets of such person or estate shall be liable for such assessment. Whenever the capital stock of such bank or association is reduced by impairment or otherwise below the amount required by law or by its articles of association and by certificate of increase or decrease of capital stock, as the case may be, the board of directors shall, at a called meeting or any other meeting, the purpose of which shall have been stated in writing and notice duly served upon said directors as hereinafter provided more than five (5) days prior to the holding of such meeting, make assessment upon each and every such owner or holder of such stock of such association for an equal amount on each and every share of such stock so owned or held and in an amount or to the extent of not exceeding one hundred per centum (100%) of such capital stock, as may be required for such purposes, and the board of directors of such association shall immediately upon making such assessment give notice thereof, to each and every such stockholder in writing personally or by registered letter at his last and usual place of residence as disclosed by the books and records of such association setting forth in such notice the amount of such assessment and the time given within which to pay such assessment which time for such payment shall not be less than thirty (30) days nor more than sixty (60) days, and such board of directors failing to make and collect such assessment or failing to carry out the conditions of this act, the auditor of the State of Indiana or any one duly authorized by him or any other person or persons duly authorized by law to supervise banks and banking within and for the State of Indiana and for failure or neglect of such auditor or supervisor to carry out the provisions of this act the Attorney-General of the State of Indiana shall make such assessment as heretofore provided and collect the same as hereinafter provided or institute proceedings for the appointment of a receiver for such association and wind up its affairs as provided by law and such assessment when so made shall constitute a lien on such stock to the amount and extent of any and all unpaid balance due on such assessment including the necessary costs incurred as heretofore or hereinafter provided and which lien shall attach and be binding until enforced but not exceeding a period of two (2) years, and which assessment may be collected and such lien may be enforced by said association either by an action at law or by a refusal to transfer such stock on the books of such association or by sale of such stock as hereinafter provided. If any stockholder or other person aforesaid shall fail, neglect or refuse to pay any balance due on subscription for capital stock or the amount duly assessed upon such capital stock and as set out in the notice heretofore specified, within sixty (60) days from the day of giving such notice, the board of directors of such association is hereby authorized and directed to sell such stock, or any part thereof, to the highest bidder at public or private sale as such auditor or other supervisor of banks may direct, after giving thirty (30) days' notice by one (1) publication in a newspaper of general circulation published in the town or city in which such bank may be located, or if none be so published then by publishing such notice in such paper published in a city or town next adjacent thereto giving the place, time, terms and conditions of such sale to be made. Such stock, before such sale, shall be appraised or re-appraised if necessary, by the auditor of the State of Indiana or such other person as may have supervision of such banks |