[No. 321.]

AN ACT to amend section one of act number two hundred sixty-six of the public acts of eighteen hundred ninetyfive, entitled "An act relative to bonds and other obligations, with surety or sureties, and the acceptance as surety、 thereon of companies qualified to act as such, and the release of such surety, and the safe depositing of assets for which such surety may be liable, and to the charging by fiduciaries of the expense of procuring sureties, and repealing all laws in conflict therewith," as amended by act number one hundred six of the public acts of eighteen hundred ninety-seven, the same being compiler's section five thousand one hundred ninety-six of the Compiled Laws of eighteen hundred ninety-seven.

The People of the State of Michigan enact:

SECTION 1. Section one of act two hundred sixty-six of Section the public acts of eighteen hundred ninety-five, entitled "An amended. act relative to bonds and other obligations with surety or sureties and the acceptance as sureties thereon of companies qualified to act as such and the release of such surety, and the safe depositing of assets for which such surety may be liable, and to the charging by fiduciaries of the expense of procuring sureties and repealing all laws in conflict therewith," as amended by act one hundred six of the public acts of eighteen hundred ninety-seven, said section being compiler's section five thousand one hundred ninety-six of the Compiled Laws of eighteen hundred ninety-seven, is hereby amended to read as follows:

SEC. 1. Whenever any bond, undertaking, recognizance or Surety comother obligation is by the law of the State or by the charter, ized to expanies authorordinances, rules or regulations of any municipality, board, ecute bonds. body, organization or public officer, or in any judicial or other proceeding required or permitted to be made, given, tendered or filed with the surety or sureties and whenever the performance of any act, duty or obligation, or refraining from any act is required or permitted to be guaranteed, such bond, undertaking, obligation, recognizance or guaranty, may be executed by a surety company, qualified to act as surety or guarantor as hereinafter provided, and such execution by such company of such bond, undertaking, recognizance, obligation or guaranty shall be in all respects a full and complete compliance with every requirement of every law, charter, ordinance, rule, regulation or order, that such bond, undertaking, obligation or recognizance or guaranty shall be executed by one surety, or by one or more sureties, or that such sureties shall be residents or householders or freeholders or either or both, or possess any other qualifica

bonds.

Proviso, approval of bonds.

Michigan

corporation.

Proviso,

when unlaw

Proviso, bail tions: Provided, That such sureties companies shall in no case be accepted as surety on any recognizance for the appearance of persons charged with crime: Provided further, That where any bond is required for the sale of liquors under the laws of this State, such bonds shall not be executed by any surety company as herein provided, except by and with the consent and approval of the township board, or of the board of trustees or of the common council of any village or city, as the case may be, within which said bond is reProviso, to be quired to be filed: And Provided further, That the bond of such surety company shall not be accepted by said township board, common council or a board of trustees, unless such surety company shall be a corporation of the State of Michigan, organized and existing under the laws of the State of Michigan, and with a capital stock of not less than five hundred thousand dollars: Provided, That whenever a majority ful to accept. of the qualified electors of any township, village or city equal to a majority of the votes cast for Governor at the last general election shall file a petition with the township board of any township, board of trustees, council or common council of any village or city, protesting against the acceptance of the bonds offered by any individual, firm or corporation proposing to engage in the sale of intoxicating liquors at retail, it shall be unlawful for such township board of such township, board of trustees, council or common council of any village or city to accept such bonds: And Provided further, That such bonding company or companies shall not charge more than ten dollars per thousand Proviso, suits, dollars for going on such liquor bond or bonds: Provided further, That suits may be commenced in the circuit court in any county where the plaintiff resides, by declaration or writ, and service shall be made in such cases only upon the Commissioner of Insurance in like manner and with like effect as is provided for the service of process upon societies, orders or associations organized under the laws of any other state, province or territory and doing business in this State, and not having its principal office within this State, and for the purpose of service of process as herein provided such surety company shall appoint in writing the Commissioner of Insurance, or his successor in office, to be its true and lawful attorney.

Proviso, charge for

liquor bonds.

how commenced.

Attorney appointed.

Repealing clause.

SEC. 2. All acts or parts of acts, whether local or general, inconsistent with the provisions of this act are hereby repealed.

Approved June 28, 1907.

[No. 322.]

AN ACT to amend sections twenty-seven and fifty-two 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," as amended, being compiler's sections six thousand one hundred sixteen and six thousand one hundred forty-one, respectively, of the Compiled Laws of eighteen hundred ninety-seven, as amended by act number two hundred sixtytwo of the public acts of nineteen hundred five.

amended.

The People of the State of Michigan enact: SECTION 1. Sections twenty-seven and fifty-two of act two Sections hundred five, 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," such sections being compiler's sections six thousand one hundred sixteen and six thousand one hundred forty-one of the Compiled Laws of eighteen hundred ninety-seven, as amended by act two hundred sixty-two of the public acts of nineteen hundred five, are hereby amended to read as follows:

deposits,

SEC. 27. A savings bank shall keep on hand at least fif- Savings banks teen per cent of its total deposits, one-third of which re- amount of serve shall be in lawful money in its own vaults and the bal- reserve. ance on deposit, payable on demand, with banks, National or State, in cities approved by the commissioners as reserve cities, or invested in United States bonds; three-fifths of the Investments. remainder of the savings deposits shall be invested by the board of directors as follows:

Proviso as to

(a) In bonds of the United States, of any State or terri- In U. S. tory of the United States: Provided. That such State or ter- bonds, etc. ritory has not, in the ten years preceding the time of such in- states, etc. vestment repudiated its debt and failed to pay the same, or the interest due thereon, or upon any part of such debt; or

etc.

indebtedness.

(b) In the public debt or bonds of any city, county, city or township, village or school district of any State or territory county bonds, in the United States, which shall have been authorized by the legislature of such State or territory: Provided, The Proviso as to total indebtedness of such municipality does not exceed five per cent of its assessed valuation, except by a vote of twothirds of the board of directors, such bonds may be purchased if the total liabilities do not exceed ten per cent of its assessed valuation; or

of

road bonds. Proviso as to

(c) In the legally authorized first mortgage bonds of Steam railany steam railroad corporation organized under the laws any state of the United States: Provided. That such com- dividends pany has for five years prior to the time of making such in- paid, etc.

Leased lines of railroads.

Bonds retiring mortgage indebtedness of steam railroads.

Proviso as to paid, capital

dividends

stock, etc.

vestment by said bank, paid annually, dividends equal to not less than four per cent on its entire capital stock and has not during said 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 and assumed by it; or

(d) In the first mortgage bonds of railroad companies whose lines are leased or operated or controlled by any railroad company specified in paragraph (c) of this section, if said bonds be guaranteed both as to principal and interest by the railroad company to which said lines are leased or by which they are operated or controlled;

(e) In the legally authorized mortgage bonds of any steam railroad incorporated under the laws of any state of the United States, which shall have been issued for the purpose of retiring all prior mortgage indebtedness on so much of the property of such company as is covered by the mortgage securing such issue of bonds, and further providing for additions, extensions or improvements: Provided, That such company has, for three 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, 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 Proviso as to it: Provided, Said issues of bonds shall have been approved by the securities commission, hereinafter provided for;

approval.

Street railways, gas companies, etc.

Proviso as to dividends paid, etc.

Proviso as to

cost of plant, encumbrances

and earnings.

(f) 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 or 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: Pro- Proviso as to vided, Said issues of bonds shall have been approved by the securities commission hereinafter provided for;

approval

ships.

time of

amount re

and liability.

tecting lien.

(g) In the legally authorized first mortgage bonds of Steamship steamship companies: Provided, That such mortgages shall companies. be upon steel steamship or steamships for the carriage of certain steamfreight or package freight and passengers combined, upon the Great Lakes and connecting waters of at least five thousand tons carrying capacity each: Provided, Such bonds Proviso as to are issued at the time of completion and enrollment of such issue. steamship or steamships, or within one year thereafter: And Provided further, That by the express terms of said Proviso as to mortgage, at least ten per cent of the total issue of said tired annually 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 mort- Proviso as to gage shall be required to protect the lien of said mortgage trustees proby attending to the recording thereof and by causing property covered by said mortgage to be insured against all risks on 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 Com- Proviso as to missioner of the Banking Department of this State a schedule of insurance, of the insurance upon such property, which schedule shall etc. 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 further, that similar certificates be filed from time Renewal of to time by said trustee with said Commissioner of the Bank- certificates. ing Department of this State, evidencing renewals of said insurance by proper policies or legal insurance binders: Provided further, That by the terms of such mortgage, the Proviso as to mortgagor shall not suffer such steamship to become indebted of steamships. 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 Certain liens of such steamship or steamships, from mechanics', laborers', to constitute admiralty, statutory or other liens, claims or charges against such steamship, shall constitute a default in the provisions

filing schedule

indebtedness

of such mortgage: And Provided further, That such bonds Proviso as to

approval.