stock, which capital stock shall equal or exceed in amount one-third of the par value of all its bonded indebtedness, and has not, during the same period, defaulted in the payment of the matured principal or interest of any debts incurred by it and secured by mortgage or trust deed upon its property or any part thereof, or in the payment of any part of the matured principal or interest upon a bond guaranteed or assumed by it: Provided, That said issues of bonds shall have been approved by the securities commission hereinafter commission. provided for; Proviso, approval by securities Electric, etc.. railway bonds. Proviso. Proviso. Proviso, approval. Steamship bonds. Proviso. Proviso. Further proviso. Further proviso. (g) In the legally authorized first mortgage bonds of any electric railroad, street railway, gas or electric light or power company, organized under the laws of the state of Michigan: Provided, That such company has, for five years prior to the time of making such investment by said bank, paid annually dividends equal to not less than four per cent on its entire capital stock, and has not during the same period defaulted in the payment of the matured principal or interest of any debts incurred by it and secured by mortgage or trust deed upon its property or any part thereof, or in the payment of any part of the matured principal or interest of any bonds guaranteed or assumed by it; or in the first mortgage bonds of any such company which has been in operation less than five years: Provided, That the cost of construction and equipment of the plant of such company shall exceed by at least fifty per cent the amount of the entire bonded indebtedness of such company, and the said plant and equipment shall be free from all other liens and encumbrances, and the said company shall have earned during the period it has been in operation, more than enough to pay all interest accrued on all said bonds and not less than four per cent per annum dividends upon its entire capital stock outstanding: Provided, That said issues of bonds shall have been approved by the securities commission hereinafter provided for; (h) In the legally authorized first mortgage bonds of steamship companies: Provided, That such mortgages shall be upon steel steamship or steamships for the carriage upon the great lakes and connecting waters of package freight and passengers combined of at least five thousand tons carrying capacity each, and upon bulk freighters of at least seven thousand tons carrying capacity each: Provided, That such bonds are issued at the time of completion and enrollment of such steamship or steamships, or within one year thereafter: And provided further, That by the express terms of said mortgage, at least ten per cent of the total issue of said bonds shall be retired annually, beginning within two years from the date of said bonds, and that the mortgage liability against said property shall not exceed one-half of its actual cost: And provided further, That the trustees of such mortgage shall be required to protect the lien of said mortgage by attending to the recording thereof and by causing property covered by said mortgage to be insured against all risks on proviso. vessel property ordinarily covered by such insurance, including marine risks and disasters, general and particular average, collision liability, protection and indemnity insurance and insurance against liability for injuries to persons, in insurance companies and under forms of policies approved by the trustee, for an amount equal to the full insurable value of such steamship, such insurance to be made with loss payable to said trustee and the policies deposited with it: And provided further, That there shall be filed with the Further commissioner of the banking department of this state a schedule of the insurance upon such property, which schedule shall be signed by the trustee under said mortgage and shall be accompanied by the certificate of said trustee that the policies mentioned in said schedule are held by said trustee, and are payable to said trustee in case of loss for the benefit of the holders of the outstanding bonds issued under such mortgage: And provided further, That similar certificates Further be filed from time to time by said trustee with said commis- proviso. sioner of the banking department of this state, evidencing renewals of said insurance by proper policies or legal insurance binders: Provided further, That by the terms of Further such mortgage, the mortgagor shall not suffer such steamship to become indebted in an amount exceeding five per cent of the original amount of the principal of said mortgage at any time and that the failure of the mortgagor to forthwith procure the release of such steamship or steamships from mechanics', laborers', admiralty, statutory, or other liens, claims or charges against said steamship, shall constitute a default in the provisions of such mortgage: And provided Further further, That such bonds shall have been approved by the securities commission hereinafter provided for; proviso. proviso. paper, etc. (i) Said banks may loan the same upon negotiable paper Negotiable or other evidences of indebtedness, secured by any of the above mentioned classes of securities; or mortgages. (j) Upon notes or bonds secured by mortgage lien upon Real estate unencumbered real estate worth at least double the amount loaned except on improved farm property the amount loaned upon such notes or bonds secured by first mortgage lien shall not exceed sixty per cent of value of such property; or (k) In accepted drafts or bills of exchange having not Drafts, etc. more than six months to run growing out of transactions involving the importation or exportation of goods; or growing out of transactions involving the domestic shipment of goods providing shipping documents conveying or securing title are attached at the time of acceptance; or which are secured at the time of acceptance by official warehouse receipt or other document conveying or securing title covering readily marketable staples. For the purposes of this section the acceptance of any one person, company, firm or corporation shall not exceed at any time more than twenty per cent of its paid up capital and unimpaired surplus. The aggregate of such accepted drafts or bills of exchange shall not exceed at any Notes, etc. one time the amount of capital stock and unimpaired surplus of the bank; (1) The remainder of such deposit may be invested in notes, bills, or other evidences of debt, the payment of which is secured by the deposit with the bank of collateral security consisting of personal property or securities of known marketable value worth ten per cent more than the amount so loaned and interest for the time of the loan; or may be invested in notes, bills or other evidences of debt, the payment of which is secured by such property or securities deposited in a trust company organized under the laws of this state; or may be deposited in any national bank, trust company, or bank in cities in this or any other state, approved by the commissioner of the banking department as reserve cities, and a portion of said remainder, not exceeding the capital and additional stockholders' liability, may be invested in negotiable paper approved by the board of directors, but the deposits in any one bank shall not exceed ten per cent of the total deposits, capital and surplus of the depositing bank. In case the actual reserve shall fall below the twelve per cent above provided, the bank shall promptly and in good faith take measures to restore and maintain its lawful reserve, in default of which the commissioner of the banking departinent shall require such restoration within thirty days after notice, and a failure to comply with such demands shall warrant proceedings to wind up the bank as provided in section six of this act. Approved March 23, 1923. Section amended. [No. 10.] AN ACT to amend section ten of act number two hundred five of the public acts of eighteen hundred eighty-seven, entitled "An act to revise the laws authorizing the business of banking, and to establish a banking department for the supervision of such business," being section seven thousand nine hundred seventy-six of the compiled laws of nineteen hundred fifteen. The People of the State of Michigan enact: SECTION 1. Section ten of act number two hundred five of the public acts of eighteen hundred eighty-seven, entitled "An act to revise the laws authorizing the business of banking, and to establish a banking department for the supervision of such business," being section seven thousand nine hundred seventy-six of the compiled laws of nineteen hundred fifteen, is hereby amended to read as follows: amended. of capital etc. SEC. 10. A bank may amend its articles of association in Articles, how any manner not inconsistent with the provisions of this act, at any time, by a vote of its stockholders representing twothirds of the capital had at a meeting duly called for that purpose. A certificate of that fact shall be executed by its Certificate. officers, including a majority of its directors, and filed as required for articles of incorporation, but no increase of capital stock shall be valid until the amount thereof has been subscribed and actually paid in; and no reduction shall be Reduction made to a less amount than is required in section one for stock, capital, nor be valid or warrant the cancellation of stock approval. certificates, or diminish the personal liability of stockholders until such reduction has been approved by the commissioner of the banking department. Such approval must be based Basis of upon a finding by him that the security of existing creditors approval. of the bank will not be impaired by the proposed reduction. Whenever the directors of a bank deem that the value of Reappraisal, any banking house or houses, owned by such bank, shall have increased over and above the cost of the same, such bank shall have the right to a reappraisal of such banking house or houses including the real estate upon which they are placed and to a readjustment of its capital stock or surplus in the following manner, to-wit: The directors of such bank Resolution. shall first pass a resolution that in their judgment the banking house or houses owned by such bank have increased in value since their acquisition and shall request the state banking commissioner to reappraise such banking house or houses. The banking commissioner shall, upon receipt of a copy of Appraisers, such resolution, thereupon appoint one appraiser and the how chosen. directors of such bank shall appoint another appraiser. The two appraisers thus appointed shall, if possible, determine the market value of such banking house or houses. If. When unable within thirty days after their appointment, such appraisers cannot agree upon such value then they shall, in writing, appoint a third appraiser and shall at once notify the banking commissioner and such bank of their appointment of such third appraiser. The appraisers thus appointed shall thereupon proceed to appraise the market value of such banking house or houses and the market value, as found and determined by them, or a majority of them, shall be considered and treated as the true market value thereof. Should such appraisal establish the value of such banking house or houses in excess of the cost thereof, as shown on the books of such bank, then such bank shall be entitled to treat such excess as part of its surplus; should such appraisal show a market value of less than the cost thereof, then such bank shall diminish its capital stock or surplus by such deficiency: Provided, That no appraisal may be had hereunder more Proviso. often than once every five years. Before entering upon the duties of their office, each appraiser shall be sworn faithfully and impartially to perform his duties as such appraiser and to make a just appraisal. They shall report their proceedings to agree. Appraisers' fees. Blanks, who to furnish. in writing and shall, within thirty days after their appointment, forward one copy of their appraisal to the state banking commissioner and one copy thereof to such bank. Such bank so requesting such appraisal shall pay the fees of such appraisers which are hereby fixed as follows, to-wit: For the first fifteen thousand dollars of such appraisal, fifty dollars; for each one thousand dollars in addition thereto, one dollar. The commissioner of banking shall prepare and furnish upon request all blanks necessary to carry out the provisions hereof. Approved March 28, 1923. Section amended. Organization, etc., of trustees. Treasurer, who to be. Reimbursements. [No. 11.] AN ACT to amend section four of act number three hundred fifty of the public acts of nineteen hundred thirteen, entitled "An act to enable counties to establish and maintain public hospitals, levy a tax and issue bonds therefor, elect hospital trustees, maintain training schools for nurses, provide suitable means for the care of tuberculous persons and to make possible the ultimate establishment of an adequate supply of hospitals," said section being section ten thousand eight hundred sixty-one of the compiled laws of nineteen hundred fifteen. The People of the State of Michigan enact: SECTION 1. Section four of act number three hundred fifty of the public acts of nineteen hundred thirteen, entitled "An act to enable counties to establish and maintain public hospitals, levy a tax and issue bonds therefor, elect hospital trustees, maintain training schools for nurses, provide suitable means for the care of tuberculous persons and to make possible the ultimate establishment of an adequate supply of hospitals," is hereby amended to read as follows: SEC. 4. The said trustees shall within ten days after their appointment or election qualify by taking the oath of civil officers, and organize as a board of hospital trustees by the election of one of their number as chairman, one as secretary, and by the election of such other officer as they may deem necessary, but no bond shall be required of them. The county treasurer of the county in which such hospital is located shall be treasurer of the board of trustees. The treasurer shall receive and pay out all the moneys under the control of the said board as ordered by it, but shall receive no compensation from such board. No trustee shall receive any compensation for his services performed, but may receive |