may be conveyed to it by borrowers in satisfaction and discharge of loans made thereon; 4. No such corporation must purchase, hold, or convey real estate in any other case or for any other purpose; and all real estate described in subdivision three of this section must be sold by the corporation within ten years after the title thereto is vested in it by purchase or otherwise; 5. No such corporation must purchase, own, or sell personal property, except such as may be requisite for its immediate accommodation, for the convenient transaction of its business, mortgages on real estate, bonds, securities, or evidences of indebtedness, public or private, gold and silver bullion, and United States mint certificates of ascertained value, and evidences of debt issued by the United States; 6. No such corporation must purchase, hold, or convey bonds, securities, or evidences of debt, public or private, except bonds of the United States, of the state of California, and of the counties, cities, or towns, unless such corporation has a capital stock or reserved fund paid in, of not less than three hundred thousand dollars. Rights and Liabilities of Stockholders. C. C. Sec. 572. When savings and loan corporations have a capital stock specified in their articles of incorporation certificates of the ownership of shares may be issued; and the rights and privileges to be accorded to, and the obligations to be imposed upon, such capital stock as distinct from those of depositors, must be fixed and defined, either in the articles of incorporation or in the by-laws. Married Women and Minors as Depositors in Savings Banks. C. C. Sec. 575. Married women and minors may, in their own right, make and draw deposits and draw dividends, and give valid receipts therefor. Power of Directors to Create Debts and Declare Dividends. C. C. Sec. 573. The directors of savings and loan corporations may, at such times and in such manner as the by-laws prescribe, declare and pay dividends of so much of the profits of the corporation, and of the interest arising from the capital stock and deposits, as may be appropriated for that purpose under the by-laws or under their agreements with depositors. The directors must not contract any debt or liability against the corporation for any purpose whatever, except for deposits. The capital stock and the assets of the corporation are a security to depositors and stockholders, depositors having the priority of security over the stockholders, but the by-laws may provide that the same security shall extend to deposits made by stockholders. Definition of phrase "Create Debts." Directors Not to Borrow From the Corporation. C. C. Sec. 578. No director or officer of any savings and loan corporation must, directly or indirectly, for himself or as the partner or agent of others, borrow any of the deposits or other funds of such corporation, nor must he become an indorser or surety for loans to others, nor in any manner be obligor for moneys borrowed of or loaned by such corporation. The office of any director or officer who acts in contravention of the provisions of this section immediately thereupon becomes vacant. Reserve Fund of Savings Banks. C. C. Sec. 577. Savings and loan corporations may prescribe by their by-laws the time and conditions on which repayment is to be made to depositors; but whenever there is any call by depositors for repayment of a greater amount than the corporation may have disposable for that purpose, the directors or officers thereof も抜きす must not make any new loans or investments of the funds of the depositors, or of the earnings thereof, until such excess of call has ceased. The directors of any such corporation having no capital stock must retain, on each dividend day, at least five per cent of the net profits of the corporation, to constitute a reserve fund, which must be invested in the same manner as other funds of the corporation, and must be used toward paying any losses which the corporation may sustain in pursuing its lawful business. The corporation may provide by its by-laws for the disposal of any excess in the reserve fund over one hundred thousand dollars, and the final disposal, upon the dissolution of the corporation, of the reserve fund, or of the remainder thereof, after payment of losses. Officer of Savings Bank, Overdrawing His Ac count, Guilty of Felony. Pen. C. Sec. 561. Every officer, agen clerk of any savings bank, who knov draws his account with such bank, and thereby wrongfully obtains the money, note, or funds of such bank, is guilty of a felony. Annual Statement of Unclaimed Deposits. C. C. Sec. 580. The president of every savings bank, savings and loan society, and every other bank, depository, society, or institution in which deposits of money are made, whether any interest or dividend is paid, or agreed to be paid, thereon or not, must, within fifteen days after the first day of January of every odd-numbered year, return to the board of bank commissioners a sworn statement showing the amount placed to his credit, the last known place of residence or postoffice address, and the fact of death. if known to such president, of every depositor who has not made a deposit therein or withdrawn therefrom any part of his deposit, or any part of the interest or dividends thereon, for a period of more than ten years next preceding. Such president must give notice of these deposits in one or more newspapers published in or nearest the town, city, or city and county where such bank, society, or other instition is situated or has its principal place of business, at least once a week for four successive weeks, the cost of such publication to be paid pro rata out of such unclaimed deposits. This section does not apply to any deposit made by or in the name of a person known to the presi dent to be living, and which, with the accumulation thereon, is less than fifty dollars. The board of bank commissioners must incorporate in their subsequent report each return made to them as provided in this section. Any president of either of the institutions mentioned in this section who neglects or refuses to make the sworn statement required thereby is guilty of a misdemeanor. Transfer Book to Be Kept Open for ion. 321. Every corporation doing a banking business in this state must keep in its office, in a place accessible to the stockholders, depositors and creditors thereof, and for their use, a book containing a list of all stockholders in such corporation, and the number of shares of stock held by each; and every such corporation must keep posted in its office, in a conspicuous place, accessible to the public generally, a notice, signed by the president or secretary, showing: First, the names of the directors of such corporation; Second, the number and value of shares of stock held by each director. The entries on such book, and such notice shall be made and posted within twenty-four hours after any transfer of stock, and shall be conclusive evidence against each director and stockholder' of the number of shares of stock held by each. The provisions of this section shall apply to all banking corporations, formed or existing before twelve o'clock noon of the day which this code took effect, as well as to those formed after such time. on Benevolent Associations. Not Subject to the Insurance Laws of the How Created. Articles of Incorporation-What to Contain. Power to Alienate Real Property. Rights of Members Admitted After Incorpor- Rights of Membership Not Transferable. Election and Removal of Directors. Books and Reports. Not Subject to the Insurance Laws of the State. C.C. Sec. 451. All associations or secret orders, and other benevolent or fraternal co-operative societies, incorporated or orangized for the purpose of mutual protection and relief of its members, and for the payment of stipulated sums of money to its members, or to the family of deceased mem bers, and not for profit, are declared not to be insurance companies in the sense and meaning of the insurance laws of this state, and are exempt from the provisions of all existing insurance laws of this state. How Created. C. C. Sec. 593. Any number of persons associated together for any purpose, where pecuniary profit is not their object, and for which individuals may lawfully associate themselves, may, in accordance with the rules, regulations, or discipline of such association, elect directors, the number thereof to be not less than five nor more than eleven, and may incorporate themselves as provided in this title. [Sec. 593-607 C. C.] |