stockholder, the number of shares held by each, the time when such person became a stockholder, together with all transfer of stock, stating the time when made, the number of shares and by whom transferred, which book shall be subject to the inspection of the directors, officers, and stockholders of the bank at all times. during the usual hours for the transaction of business. 1921, c. 4, s. 56.

269. Directors, officers, etc., accepting fees, etc. No gift, fee, permission, or brokerage charge shall be received, directly or indirectly, by any officer, director, or employee of any bank doing business under this act, on account of any transaction to which the bank is a party. Any officer, director, employee, or agent who shall violate the provisions of this section shall be guilty of a misdemeanor, and shall be and thereafter remain ineligible as an officer, director, or employee of any bank doing business under this act. Nothing in this section shall be construed to prevent the payment of necessary and proper attorney's fees to any licensed attorney for professional services rendered.

1921, c. 4, s. 57.

270. Dividends, directors may declare. The board of directors of any bank may declare a dividend of so much of its undivided profits as they may deem expedient, subject to the requirements, hereinafter provided. Before such dividend is declared, not less than twenty-five per cent of the undivided profits of any bank, having a capital stock of fifteen thousand dollars or more, shall be carried to the surplus of such bank until its surplus amounts to fifty per cent of its paid-in capital stock; and not less than fifty per cent of the undivided profits of any bank having a capital stock of less than fifteen thousand dollars shall be carried to the surplus of such bank until its surplus amounts to one hundred per cent of its paid-in capital stock. In order to ascertain the undivided profits from which such dividend may be made, there shall be charged and deducted from the actual profits:

(a) All ordinary and extraordinary expenses, paid or incurred, in managing the affairs and transacting the business of the bank; (b) Interest paid or then due on debts which it owes;

(e) All taxes due;

(d) All overdrafts which have been standing on the books of the bank for a period of sixty days or longer;

(e) All losses sustained by the bank. In computing the losses, debts owing to it which have become due and which are not in process of collection, and on which interest for one year or more is due and unpaid, unless same are well secured, and debts upon which final judgment has been recovered, but has been for more than one year unsatisfied, and on which also for a period of one year no interest has been paid, unless same are well secured, shall be included.

1921, c. 4, s. 58.

271. Surplus, shall not be used for. The surplus of any bank doing business under this act shall not be used for the purpose of paying expenses or losses until the credit to undivided. profits has been exhausted. But any portion of such surplus may be converted into capital stock and distributed as a stock dividend, provided that such surplus shall not thereby be reduced below fifty per cent of the paid-in capital of such bank, having a paid-in capital of fifteen thousand dollars or more. When the surplus of any bank having a capital stock of less than fifteen thousand dollars shall reach an amount equal to one hundred per cent of its paid-in capital, the board of directors of such bank shall declare a dividend of fifty per cent of said surplus and distribute the same as a stock dividend: Provided, that where the distribution of such a stock dividend would increase the capital stock of any bank to an amount greater than fifteen thousand dollars, the board of directors of such bank may, in its discretion, declare a stock dividend of only so much of said surplus as will be necessary to increase the stock of the said bank to fifteen thousand dollars. 1921, c. 4, s. 59.

272. Overdrafts, payment by officer, etc. Any officer (other than a director), or employee of a bank, who shall permit any customer or other person to overdraw his account, or who shall pay any check or draft, the paying of which shall overdraw any account, unless the same shall be authorized by the board of directors or by a committee of such board authorized to act, shall be personally and individually liable to such bank for the amount of such overdrafts.

1921, c. 4, s. 60.

273. Officers and employees shall give bond. The active officers and employees of any bank, before entering upon their duties, shall give bond to the bank in a bonding company authorized to do business in North Carolina in the amount to be required by the directors, in such form as may be prescribed or approved

by the corporation commission. The corporation commission, or directors of such bank, may require an increase of the amount of such bond whenever they may deem it necessary. If injured by the breach of any bond given hereunder, the bank so injured by the breach may put the same in suit and recover such damages as it may have sustained.

1921, c. 4, s. 61; Ex. Session 1921, c. 18.

274. Officers and employees may borrow, when. No officer who is actively engaged in the management of any bank, or any employee, shall borrow any amount whatever from said bank by whom employed, except upon good collateral, or other ample security or endorsement; and no such loan shall be made until after it has been approved by a majority of the directors or a committe of the board of directors authorized to act.

1921, c. 4, s. 62.

275. Oaths of corporations. In all cases where a corporation is appointed administrator, executor, collector, or to any other fiduciary position, of which fiduciary an oath is required by law, such oath may be taken by such corporation by and through any officer or agent of said corporation who is authorized by law to verify pleadings in behalf of such corporation; and any oath so taken shall be valid as the oath of such corporation. Any oath heretofore taken in the manner aforesaid in behalf of a corporation as such fiduciary is hereby validated as the oath of such corporation.

C. S., s. 3192; 1919, c. 89, ss. 1, 2.

ART. 7. CORPORATION COMMISSION.

276. Corporation commission shall have supervision over, etc. Every bank, corporation, partnership, firm, company, or individual now or hereafter transacting the business of banking, or doing a banking business in connection with any other business, under the laws of and within this state, shall be subject to the provisions of this act, and shall be under the supervision of the corporation commission. The corporation commission shall exercise control of and supervision over the banks doing business under this act, and it shall be its duty to execute and enforce through the chief state bank examiner, the state bank examiners, and such other agents as are now or may hereafter be created or appointed, all laws which are now or may hereafter be enacted relating to banks as defined in this act. For the more complete and thorough enforcement of the provisions of this act, the corpo

ration commission is hereby empowered to promulgate such rules, regulations, and instructions, not inconsistent with the provisions of this act, as may in its opinion be necessary to carry out the provisions of the laws relating to banks and banking as herein. defined, and as may be further necessary to insure such safe and conservative management of the banks under its supervision as will provide adequate protection for the intrests of the depositors, creditors, stockholders, and public in their relations with such banks. All banks doing business under the provisions of this act shall conduct their business in a manner consistent with all laws relating to banks and banking, and all rules, regulations, and instructions that may be promulgated or issued by the corporation commission.

1921, c. 4, s. 63.

277. Reports of condition. Every bank shall make to the corporation commission not less than four reports during each year, according to the form which may be prescribed by said commission; which report shall be verified by the oath or affirmation of the president, vice president, cashier, secretary, or treasurer of said bank, and in addition thereto, two of the directors, in the case of incorporated banks, and in other cases by the oath or affirmation of the partners, members of the firm, or individual owner. Each such report shall exhibit in detail and under appropriate heads the resources, assets, and liabilities of such bank at the close of business on any past day by the corporation commission specified, and shall be transmitted to the corporation commission within ten days after the receipt of a request or requisition therefor from the commission; and in a form prescribed by the corporation commission; a summary of such report shall be published in a newspaper published in the place where the bank is located, or if there is no newspaper in the place, then in the nearest one published thereto in the county in which such bank is established. Proof of such publication shall be furnished the corporation commission in such form as may be prescribed by it. 1921, c. 4, s. 64.

Banks & Banking § 82. A bank depositor, on rumors of its insolvency, went to withdraw his deposits, but was informed by the vice president and director that the bank was perfectly solvent, and that "we have got all the money you want. You need never have any fears of this bank as long as I am in it." Such depositor, relying on such representations, permitted his deposits to remain. The bank was in fact insolvent when the representations were made. Held, that such vice president and director was personally liable to such depositor for the money lost by the failure of the bank.-Townsend v. Williams, 117 N. C. 330, 23 S. E. 461.

Banks & Banking § 82. Bank directors, who, by false and fraudulent statements to the state treasurer as to the condition of the bank, in order to conceal its insolvency, induce him not only to make new deposits of the state's money, but also to permit a portion of the money deposited by his predecessor to remain, are liable to such treasurer for any loss, either of the old or new deposits.-Tate v. Bates, 118 N. C. 287, 24 S. E. 482.

Banks & Banking § 82. A complaint charging bank directors with fraud and deceit in making false statements of the bank's solvency need not allege that defendant knew or believed the bank to be insolvent, such knowledge being conclusively presumed.-Ibid.

Banks & Banking § 54. It is the duty of the directors to know the condition of their bank, and to prevent publication of false statements of its condition, and by no private arrangement could they be excused from giv ing proper attention to such duties because they are nonresidents of the town wherein their bank is located.-Houston v. Thornton, 122 N. C. 365, 29 S. E. 827.

Banks & Banking § 54. Where it appears that the affairs of a bank were left in the management of officers thereof, who, by gross frauds extending through a period of several years, ruined the bank, and during which time false statements were published showing the bank to be in a good condition, the fact that the directors resided away from the town where the bank was located will not warrant the assumption that such directors could not, in the proper discharge of their duty, have ascertained that such statements were false.-Ibid.

Banks & Banking § 55. Where negligence of directors in permitting a false and fraudulent statement of the condition of a bank is the basis of an action against the directors, the plaintiff's right to recover should not be restricted to one instance of negligence, where there are many others in evidence. Ibid.

278. Reports of condition of trust and surety companies. Every person, firm, corporation, or partnership doing a banking business, or a banking business in connection with any other business, shall make to the corporation commission not less than four reports during each year, showing the entire amount of trust, surety, fiduciary, and guaranty business as a part of the liabilities of said banking institution, which reports shall be published as are the reports of other banking institutions. If any person, firm, corporation, or copartnership shall show by said reports, or by the examination of any state bank examiner, that such liabilities are equal to the amount of the capital stock of such bank, the corporation commission shall have authority, and is hereby empowered to make such rules and regulations for the reduction of said. liabilities as it may deem necessary for the protection of the creditors and depositors of such banking institution.

1921, c. 4, s. 65.

279. Special reports. The corporation commission may call for special reports whenever in its judgment it is necessary to inform it of the condition of any bank, or to obtain a full and