Chap. 88.—An ACT to amend and re-enact Sections 1, 2, 3 as amended, 4, 7-a, 9,
9-a as amended, 12, 17, 20, 22, 25, 33, 38, 39, 50, 53 as amended, 57, and 71 as
amended, of an act entitled ‘an act to revise, collate and codify into one act
the general statutes of the Commonwealth relating to banks and_ banking,
Sg | oe

which act shall constitute and be designated and cited as the Virginia Bank-
ing Act, and to repeal all Code sections and all acts and parts of acts incon-
sistent therewith, and to provide penalties for the violations thereof,’ ap-
proved March 27, 1928, so as, among other things, to authorize banks, trust
companies, banking institutions and others engaged in banking, hereinafter
referred to as banks, to become insured and to insure deposits, to require
approval by the State Corporation Commission before merged and consol-
idated banks may do business, to restrict the authority of banks to invest in
common stock or its equivalent and in certain real estate securities, and to
authorize the State Corporation Commission to examine certain corporations,
associations and partnerships affliated or connected with banks and to re-
quire a proper valuation of bank assets; to restrict and regulate the purchase
and sale of property for or belonging to trusts by banks; and to further
amend the said act by adding thereto the following five new sections: section
49-a restricting the power of banks to make loans secured by real estate or
real estate securities, section 75-a exempting banks from the necessity of
securing insured deposits, section 75-b providing under certain circumstances
for the removal of officers and directors of banks from office and for re-
straining them from participating in the management of such banks and
prescribing procedure therefor and penalties for violations, section 75-c con-
stituting certain acts of officers, directors, agents and employees of banks
misdemeanors and felonies and prescribing punishment therefor, and section
75-d prescribing penalties for certain violations of the act for which no pen-
alties are now provided, for causing banks to violate provisions of the act
and for participating or acquiescing in such violations. [H B 85]

Approved February 29, 1936

1. Be it enacted by the General Assembly of Virginia, That sections
one, two, three as amended, four, seven-a, nine, nine-a as amended,
twelve, seventeen, twenty, twenty-two, twenty-five, thirty-three, thirty-
eight, thirty-nine, fifty, fifty-three as amended, fifty-seven and seventy-
one as amended, of an act entitled ‘“‘an act to revise, collate and codify
into one act the general statutes of the Commonwealth relating to
banks and banking, which act shall constitute and be designated and
cited as the Virginia Banking Act, and to repeal all Code sections and
all acts and parts of acts inconsistent therewith, and to provide penal-
ties for the violations thereof,” approved March twenty-seventh, nine-
teen hundred and twenty-eight, be amended and re-enacted and that
the said act be further amended by adding thereto five new sections,
numbered forty-nine-a, seventy-five-a, seventy-five-b, seventy-five-c,
seventy-five-d, so that the said amended sections and the said new
sections shall read as follows:

Section 1. Meaning of “bank” in this act——The word “bank,”
wherever it shall appear in this act, shall include banks of deposit and
discount, savings banks, savings societies, savings institutions and trust
companies now chartered, or which may hereafter be chartered, and any
other corporations now chartered to receive deposits or to do any banking
business or trust business, and all persons, firms and associations receiv-
ing deposits, or doing any banking business or trust business.

Section 2. Banks coming under the provisions of this act-—The
provisions of this act shall apply to and govern all chartered banks,
including banks of deposit and discount, savings institutions, savings
societies and trust companies, and any other person, firm or associa-
tion receiving deposits or doing a banking business or trust business,
and any other corporation authorized to receive deposits or to do any
branch of the banking business or trust business other than that of
banks organized under the banking laws of the United States, which
last-mentioned banks are, however, expressly included within the pro-
visions of this act, touching the course and conduct of the banking busi-
ness or trust business and in so far generally as this State has the
right to enact legislation in regard to such banks. The powers, priv-
ileges, duties and restrictions conferred and imposed upon any bank
existing and doing business under the laws of this State are hereby
abridged, enlarged or modified, as each particular case may require, to
conform to the provisions of this act. Nothing in this act, however,
shall be construed to change or affect any privilege or privileges granted
by charter to any bank incorporated before June fifteenth, nineteen
hundred and ten, nor to affect the legality of any investment hereto-
fore made or transactions heretofore had, pursuant to any provisions
of law in force when such investments were made or transactions had.

Section 3. Who shall not do a banking or trust business.—No per-
son, co-partnership or corporation, except corporations duly chartered
and already conducting the banking business or trust business in this
State under authority of the laws of this State or the United States, or
which shall hereafter be incorporated under the laws of this State or
authorized to do business in this State under the banking laws of the
United States, shall engage in the banking business or trust business in
this State, and no foreign corporation shall do a banking or trust busi-
ness in this State; except that nothing in this act shall prevent a nat-
ural person from qualifying and acting as trustee, personal representa-
tive, guardian, committee or in any other fiduciary capacity, nor pre-
vent any person or co-partnership or corporation from lending money
on real estate and personal security or collateral, or from guaranteeing
the payment of bonds, notes, bills and other obligations, or from pur-
chasing or selling all stocks and bonds, or prevent any bank or trust
company organized under the laws of this State from qualifying and
acting in another State or in the District of Columbia, as trustee, per-
sonal representative, guardian or committee or in any other fiduciary
capacity, when permitted so to do by the laws of such other State or
District. Nothing in this section shall be construed to prevent bank-
ing institutions or trust companies organized in this State and chartered
under the laws of the United States from transacting business in Vir-
ginia.

So much of chapter two hundred and eighty-five of the acts of
nineteen hundred and twenty-four as may be in conflict with the provi-
sions hereof is hereby repealed.

Section 4. Unlawful use of the term “bank,” “banker” or “bank-
ing.”—No person, co-partnership or corporation not lawfully engaged
in the banking business or trust business in this State and subject to
the supervision of the State Corporation Commission, by the provisions
of this act or authorized to transact a banking business or trust business
under the laws of the United States, shall make use of any office sign
having thereon any artificial or corporate name or other words indi-
cating that any such place or office is the place or office of a bank,
EI ga A 9 nes SY Oa Preteen. Rare See AN Aut tlh A Se er eS Ee rz |

savings bank, trust company, bank or place of banking, nor shall any
person, co-partnership ‘or corporation make use of or circulate any
letterheads, billheads, blank notes, blank receipts, certificates, circulars
or any written or printed paper whatever, having thereon any artificial
or corporate name or word or words indicating that such business 1s the
business of a bank, savings bank, trust company or banker, or a place
of banking; nor shall any person, co-partnership or corporation use
the word “bank,” ‘‘savings bank,” “banking,” “banker,” or “trust,” or
the equivalent thereof in any foreign language, or the plural of any
such word or words in any business, or in connection with any other
business than that of the business of banking as defined under this
act. Any person or persons violating the provisions of this or the
preceding section, either individually or as an interested party, in any
co-partnership or corporation, shall be guilty of a misdemeanor. The
State Corporation Commission shall have authority to examine the ac-
counts, books and papers of any person, co-partnership or corporation
whom it has reason to suspect is doing a banking business within the
intent of this act, in order to ascertain whether such person, co-part-
nership, or corporation has violated, or is violating, any provision of
this act, and the refusal to submit such accounts, books and papers shall
be prima facie evidence of such violation.

The use of the above terms in the name of any corporation or in
connection with any other business shall not be prohibited where the
context or remaining words show clearly and definitely that the cor-
poration or business is not a bank or trust company, and is not carry-
ing on a banking or trust business.

Section 7-a. State banks permitted to become insured banks as
provided in section twelve-B of the Federal Reserve Act.—Any bank
heretofore or hereafter incorporated under the laws of this State may,
if it so elects, become an “insured bank’ as that term is used in section
twelve-B of the Federal Reserve Act, as amended, providing for the
creation of a Federal Deposit Insurance Corporation, and shall, upon
becoming an insured bank, be vested with all powers conferred by said
section and any amendment thereof upon State banks which shall be-
come insured banks, which powers shall be exercised subject to all re-
strictions and limitations imposed upon such banks by the said section
and any amendment thereof.

Section 9. National bank may become State bank; procedure and
effect—Any banking corporation organized under the laws of the
United States and doing business in this State may become an incor-
porated bank of this State with all the powers and subject to all the
obligations and duties imposed under the provisions of this section, pro-
vided such banking corporation has authority by virtue of any law of
the United States, to dissolve its organization as a national banking
corporation. A national banking corporation desiring to become such
an incorporated bank of this State shall proceed in the following man-
ner:
First. It shall take such action, in the manner prescribed or author-
ized by the laws of the United States, as shall make certain its dis-
solution as national banking corporation effective at a specified future
date.

Second. The required number of its directors shall thereafter and
before the time when its dissolution becomes effective, organize a cor-
poration according to the provisions of chapter one hundred and forty-
eight, with the same officers and directors as the said national bank-
ing corporation, and shall make application for a certificate of author-
ity to do business under section fifteen of this act, attaching thereto, as
a part thereof, a statement of its financial condition, on forms pre-
scribed by the State Corporation Commission, as of the close of busi-
ness the day preceding the date of the said application, copies of the
written authority of stockholders and resolutions fixing the date on
which its dissolution as a national banking corporation shall become
effective, properly verified by the affidavit of the president or cashier of
the said national banking corporation.

Third. Upon the granting of a certificate of authority to do busi-
ness in accordance with the provisions of section fifteen of this act, and
as soon as its dissolution as a national banking corporation becomes ef-
fective, its corporate existence as a State bank shall begin. But such
bank shall transact no business as a State bank other than that relat-
ing to its organization until its certificate of authority to do business
shall have been granted.

Fourth. At the time when the corporate existence of said State
bank begins all the property of the said national banking corporation,
including all its right, title and interest in and to all property of what-
soever kind, whether real, personal or mixed, and things in action, and
every right, privilege, interest and asset of any conceivable value or
benefit then existing, belonging or pertaining to it, or which would
inure to it, shall immediately by act of law and without any conveyance
or transfer, and without any further act or deed, be vested in and be-
come the property of such State bank, which shall have, hold and enjoy
the same in its own right as fully and to the same extent as if the
same was possessed, held or enjoyed by said national banking corpora-
tion; and such State bank shall be deemed to be a continuation of the
entity and of the identity of said national banking corporation, operat-
ing under and pursuant to the laws of this State, and all the rights, ob-
ligations and relations of said national banking corporation to or in
respect to any person, estate, creditor, depositor, trustee or beneficiary
of any trust, and in or in respect to any executorship or trusteeship or
other trust or fiduciary function, including appointments, designations
and nominations, shall remain unimpaired, and such State bank, as of
said beginning of its corporate existence, shall by operation of this
section succeed to all such rights, obligations, relations and trusts, in-
cluding appointments, designations and nominations, and the duties and
liabilities connected therewith, and shall execute and perform each and
every such trust and relation in the same manner as if such State bank
had itself assumed the trust or relation, including the obligations and
liabilities connected therewith. If said national banking corporation be
acting as administrator, co-administrator, executor, co-executor, trus-
tee, or co-trustee of or in respect to any estate or trust being adminis-
tered under the laws of this State, such relation, as well as any other
or similar fiduciary relations, and all rights, privileges, duties and ob-
ligations connected therewith shall remain unimpaired and shall con-
tinue into and in said State bank, from and as of the said beginning of
its corporate existence, irrespective of the date when any such rela-
tions may have been created or established and irrespective of the date
of any trust agreement relating thereto or the date of the death of any
testator or decedent whose estate is being so administered. Neither the
act of said national banking corporation, under subdivision one of this
section, in fixing the date of or providing for its liquidation or dissolu-
tion nor its liquidation or dissolution under the national banking laws,
nor any other thing done in connection with the change from a na-
tional to a State bank, shall, in respect to any such executorship, trus-
teeship or similar fiduciary relations, be deemed to be or to effect, under
the laws of this State, a renunciation or revocation of any letters of ad-
ministration or letters testamentary pertaining to such relation, nor a
removal or resignation from any such executorship or trusteeship, nor
shall such act or any other thing done be deemed to be of the same
effect as if the executor or trustee had died or otherwise become in-
competent to act.

Fifth. The directors of said national banking corporation in office
at the time of its dissolution shall be the directors of the bank created
in pursuance hereof until its first annual election of directors there-
after, and shall have power to take all necessary measures to perfect
its organization, and to adopt such regulations concerning its business
and management as may be proper and not inconsistent with law.

Section 9-a. State banks may be merged or consolidated with other
State or with national banks; by what laws such mergers or consol-
idations governed ; vote required—Any bank organized and doing busi-
ness under the laws of this State may be merged or consolidated with
another bank organized and doing business under the laws of this State,
or with a banking corporation organized under the laws of the United
States doing business in this State, upon compliance with the provisions
of sections thirty-eight hundred and twenty-one and thirty-eight hun-
dred and twenty-two of the Code of Virginia relating to mergers or
consolidations of corporations, except that such mergers or consolida-
tions of banks shall be ratified and confirmed by an affirmative vote of
the shareholders of each of such banks owning at least two-thirds of
its capital stock outstanding and having voting power. The provisions
of sections thirty-eight hundred and twenty-three, thirty-eight hundred
and twenty-five and thirty-eight hundred and twenty-six of the Code
of Virginia shall apply to such merged or consolidated corporation
except as otherwise provided in this act; or any bank incorporated
under the laws of this State may, upon compliance with the laws of the
United States, be converted into a national banking association.

In event of any such merger or consolidation the merged or con-
solidated corporation (whether it be one of said merging or consolidat-
ing banks, or a new hank, State or national, formed by means of such
merger or consolidation) shall without further act or deed succeed to,
and be vested with, all offices, rights, obligations and relations of trust,
or of a fiduciary nature, including appointments, designations and nom-
inations, existing immediately prior to the time at which such consolida-
tion or merger, became effective, or then belonging or pertaining to any
one or more of the banks, parties to such consolidation or merger, or
which would then inure to any one or more of such banks. But no
such merged or consolidated State bank, hereafter resulting from any
merger or consolidation, shall do business in Virginia until it shall
have obtained from the State Corporation Commission a certificate of
authority authorizing it to do so; the provisions of section fifteen of
this act shall apply to the issuance, or refusal of the commission to
issue, the certificate herein provided for, to the same extent as if the
merged or consolidated bank were a new bank.

At the time when such conversion of a State bank becomes effective
as a national bank, all the property of said State bank, including all its
right, title and interest in and to all property, whether real, personal or
mixed, and things in action, and every right, privilege, interest and as-
set of any conceivable value or benefit then existing, belonging or per-
taining to it, or which would inure to it, shall immediately, by act of
law and without any conveyance or transfer, and without any further
act or deed, be vested in and become the property of such national
bank, which shall have, hold and enjoy the same in its own right as
fully and to the same extent as if the same were possessed, held or
enjoyed by said State bank, and such national bank shall be deemed to
be a continuation of the entity and identity of said State banking cor-
poration operated pursuant to the laws of the United States, and all
the rights, obligations and relations of said State banking corporation
to or in respect to any person, estate, creditor, depositor, trustee or
beneficiary of any trust, and in or in respect to any executorship or
trusteeship or other trust or fiduciary function including appointments,
designations and nominations, shall remain unimpaired, and such na-
tional bank, as of said beginning of its corporate existence, shall, by
operation of this section, succeed to all such rights, obligations, rela-
tions and trusts, including appointments, designations and nominations,
and the duties and liabilities connected therewith, and shall execute
and perform each and every such trust and relation in the same manner
as if such national bank had itself assumed the trust or relation, in-
cluding the obligations and liabilities connected therewith. If said State
banking corporation be acting as administrator, co-administrator, exec-
utor, co-executor, trustee, or co-trustee of or in respect to any estate
or trust being administered under the laws of this State, such relation,
as well as any other of similar fiduciary relations, and all rights, priv-
ileges, duties and obligations connected therewith shall remain unim-
paired and shall continue into and in said national bank from and as
of the said beginning of its corporate existence, irrespective of the
date when any such relations may have been created or established,
and irrespective of the date of any trust agreement relating thereto or
the date of the death of any testator or decedent whose estate is being
so administered. Nothing done in connection with the change from a
State to a national bank shall, in respect to any such executorship,
trusteeship or similar fiduciary relation be deemed to be or to effect,
under the laws of this State, a renunciation or revocation of any let-
ters of administration or letters testamentary pertaining to such rela-
tion, nor a removal or resignation from any such executorship or trus-
teeship, nor shall such act or any other thing done be deemed to be of
the same effect as if the executor or trustee had died or otherwise be-
come incompetent to act; provided, however, that nothing in this sec-
tion shall in any way affect any provisions of law in case of a national
bank becoming a State bank.

Section 12. Kinds of business banks may do; powers they may
exercise; limitations as to investments.—Every such bank shall have
power to exercise, by its board of directors, or duly authorized officers
or agents, subject to law, all such incidental powers as shall be neces-
sary to carry on the business of banking, by discounting and negotiating
bills of exchange, promissory notes, drafts, and other evidences of
debt ; by receiving deposits ; by buying and selling exchange, coin, and
bullion; by loaning money on real and personal security, or collateral ;
by guaranteeing the payment of bonds, bills, notes and other obliga-
tions, having not more than six months to run; by rediscounting paper ;
and in purchasing and selling bonds.

No bank shall acquire or own its own stock except when done to
protect itself against loss from debts previously contracted, in which
case it shall be disposed of within twelve months from the time ac-
quired. Nor shall any bank invest any of its funds in shares of the
common stock, or its equivalent, of any other corporation, except such
shares of stock as national banks are permitted to purchase for their
own account, or in any notes or other obligations secured by real estate
on which as security it is prohibited by section forty-nine-a of this act
from making any loan; this provision shall not, however, prevent any
bank from acquiring any such stock, notes or other obligations to pro-
tect itself or any fund in its custody or possession against loss from
debts theretofore contracted, nor from acquiring, owning and holding
stock of a building corporation of the character and to the amount pro-
vided by section thirty-one of this act, nor from acquiring, owning and
holding stock of an agricultural credit corporation organized under the
laws of the State of Virginia, provided that the total amount of such
stock shall not exceed twenty per centum of the amount of the capital
stock of such bank actually paid in and unimpaired, plus the amount of
its unimpaired surplus fund.

Section 17. What part of capital stock to be paid before commenc-
ing business; when residue to be paid; stock to be sold at not less than
par; no commission or fees to be paid for sale of stock; individual
liability of stockholders.—Hereafter the subscriptions to the capital
stock of any bank incorporated under the laws of Virginia shall be
paid in money at not less than par, and at least the minimum amount of
capital prescribed by the charter shall be subscribed, and at least fifty
per centum of the subscription of each subscriber shall actually be paid
in cash before such bank shall be authorized to begin business, and the
remainder of the capital stock of such bank shall be paid in monthly
installments of at least ten per centum of the whole capital, payable
at the end of each succeeding month from the date of certificate of the
State Corporation Commission, authorizing such bank to begin busi-
ness. The payment of each monthly installment shall be certified to
the State Corporation Commission, under oath, by the president or
cashier of such bank. But no bank shall be authorized to begin busi-
ness until at least twenty-five thousand dollars of its capital stock has
been actually paid in money, and no trust company shall be authorized
to begin business until the provisions of section sixty-nine of this act
shall have been complied with. Subscriptions to the capital stock of
every bank, heretofore or hereafter incorporated under the laws of this
State, shall be paid in money and accounted for to the bank in the full
amount paid for the same. No commissions, fees, brokerage, or other
compensation of any kind, by whatever name it may be called, either
directly or indirectly, shall be paid to any person, persons, partnership,
association or corporation for the sale of such stock of any bank or
trust company hereafter chartered. The State Corporation Commis-
sion shall refuse to issue a certificate of authority to any bank to com-
mence business if commissions, fees, brokerage, or other compensation,
by whatever name it may be called, either directly or indirectly, have
been paid or contracted to be paid by any bank, or by any one in its
behalf, to any person, persons, partnership, association or corporation
for the sale of stock in such bank.

If the provisions of this section are violated by any bank, hereto-
fore or hereafter incorporated under the laws of this State, it shall be
liable to a fine of one thousand dollars, to be imposed and judgment
entered therefor by the State Corporation Commission and enforced by
its process.

Section 20. Every director of a bank which has a capital stock
not in excess of fifty thousand dollars shall be the owner in his own
name and have in his personal possession or control shares of stock in
the said bank having a par value of not less than one hundred dollars
for each ten thousand dollars, or fractional part thereof, of the capital
stock of the said bank; every director of a bank which has a capital
stock in excess of fifty thousand dollars shall be the owner in his own
name and have in his personal possession or control shares of stock
in the bank of which he is a director having a par value of not less
than five hundred dollars if the bank in which he is such director has a
capital stock of more than fifty thousand dollars and not to exceed one
hundred thousand dollars, not less than seven hundred and fifty dollars
if the bank in which he is a director has a capital stock of more than
one hundred thousand and not more than three hundred thousand dol-
lars, and not less than one thousand dollars if the bank in which he is
a director has a capital stock of more than three hundred thousand dol-
lars, which stock must be unpledged and unencumbered at the time of
his becoming a director and during the whole of his term as such; pro-
vided, however, that these requirements shall not apply to any person
duly elected a director of a bank at the time this act takes effect, or so
long as he shall successively be re-elected a director, and as to such per-
son the present requirements of the law shall apply. Any director
violating the provisions of this section shall, immediately, vacate his
office and the remaining directors shall proceed, forthwith, to fill such
vacancy as provided in section twenty-one of this act.

Section 22. Oaths of directors——Every director of a bank incor-
porated under the laws of this State shall, within sixty days after his
election, take and subscribe to an oath that he will diligently and hon-
estly perform his duties as director, and that he is the owner and has
in his personal possession or control, standing in his own name on the
books of the bank, unpledged and unencumbered in any way, shares of
stock of the bank of which he is a director, having a par value of not
less than the amounts respectively prescribed by section twenty of this
act, which must be unpledged and unencumbered at the time of his
becoming a director and during the whole of his term as such, and
in case of re-election or reappointment, that during the whole of his
immediate previous term as a director, such stock was not any time
pledged or in any other manner encumbered or hypothecated to secure
a loan. Such oath subscribed to by such director, certified by the of-
ficer before whom it is taken, shall be transmitted by the cashier of said
bank to the State Corporation Commission. Any director who fails for
a period of sixty days after his election or appointment to take the
oath as required by this section, shall automatically forfeit his office,
and the remaining directors shall appoint some qualified stockholder to
fill his place and stead.

Section 25. Settlement of cashier’s accounts.—The directors shall,
at least twice in each calendar year, cause an examination to be made of
the bank, and a settlement to be made of the accounts of the cashier,
a statement of which examination and settlement shall be recorded with
the proceedings of the board.

Section 33. Surplus; dividends; undivided profits—The board of
directors may declare a dividend of so much as they shall judge ex-
pedient, of the profits of the bank, after providing for all expenses,
losses, interest and taxes accrued, or due by said bank, and the crea-
tion of a surplus fund equal to ten per centum of the capital stock ex-
clusive of any preferred stock issued to the Reconstruction Finance
Corporation, but before any such dividend is declared, the capital shall
be paid in full, and the directors shall cause to be laid aside, to a
fund known as a surplus fund, the entire net profits, until such fund
shall amount to at least ten per centum of such capital stock, and there-
after the directors, before declaring a dividend and in the absence of
a dividend declaration at least annually, shall set aside to the surplus
fund, at least ten per centum of the net profits as hereinafter defined,
until the surplus fund shall amount to twenty per centum of the capital
stock (exclusive of any perferred stock which may have been issued
to the Reconstruction Finance Corporation). Any losses sustained by
such bank in excess of its net undivided profits may be charged to its
surplus fund; provided, that its surplus fund shall thereafter be reim-
bursed from its earnings, and no dividend shall be declared or paid by
such bank until its surplus fund shall be fully restored to the amount
accumulated in accordance with this section, or which would reduce the
surplus below the amount accumulated in accordance with the manda-
tory requirements of this section.

To ascertain the net undivided profits before any dividend shall be
declared, all debts due to such bank on which interest is past due and
unpaid for a period of twelve months, unless the same are well secured
and in process of collection by law, shall be deducted from the profits
in addition to all expenses, losses, interest and taxes accrued, and the
balance shall be deemed to be the net profits.

Section 38. Deposits in names of two or more persons, or sur-
vivors; how discharged—When a deposit has been made, or shall
hereafter be made, in any bank or trust company transacting business in
this State, under the names of two or more persons, payable to either,
or payable to either of the survivors, such deposits, or any part thereof,
or any interest or dividend thereon, may be paid to either of said per-,
sons, whether the other or others be living or not, and the receipt or
acquittance of the person so paid shall be a valid, sufficient and com-
plete release and discharge of the bank or trust company for any pay-
ment so made.

Section 39. Safety deposit box hired to two or more; access of
either, or survivor; who to have access.—When a safety deposit box
shall have been hired, or shall hereafter be hired, from any bank or
trust company transacting business in this State, under the name of
two or more persons, with the right of access being given to either, or
with access to either the survivor or survivors of said persons, any
one or more of such persons, whether the other or others be living or
not shall have the right of access to such deposit vault, and may re-
move therefrom the contents of said box; and in case of such removal,
the said bank or trust company shall be exempt from any liability for
permitting the said person or persons access thereto.

Section 49-a. Limitation on amount of loans made upon real es-
tate security——No bank shall make any loan secured by real estate
when such loan together with all prior liens and encumbrances on such
real estate exceeds fifty per centum of the appraised value of the real
estate offered as security, unless such loan be for a term not longer
than fifteen years and be secured by an amortized mortgage, deed of
trust or other instrument under the terms of which the annual install-
ment payments are not less than four per centum per annum of the
principal of the loan when such loan is for a period not more than ten
years, or not less than five per centum per annum of the principal of
the loan when such loan is for a period in excess of ten years but not
more than fifteen years, in neither of which events shall the amount of
the loan, together with all prior liens and encumbrances on such real
estate exceed sixty per centum of the appraised value of the real estate
offered as security, nor shall any bank make such loans in an aggregate
sum in excess of the amount of its capital stock actually paid in and
unimpaired plus the amount of its unimpaired surplus fund, or in ex-

cess of sixty per centum of the amount of its time and savings de-
posits, at the election of the bank. A loan secured by a mortgage, deed
of trust, or other such instrument upon real estate, or secured by notes
or other obligations which are so secured, shall, for the purposes of this
section, be a loan secured by real estate. The appraisals herein re-
quired, if and when the loan shall exceed five hundred dollars, shall
be made by appraisers appointed by the board of directors, shall be in
writing, signed by the appraisers and shall be retained in the files of the
bank subject to examination by the bank examiners.

The provisions of this section shall not be construed to prohibit any
bank from renewing from time to time any such loans heretofore made
not in comformity herewith, provided such loans shall be reduced as
soon as reasonably possible so as to conform to the requirements of this
section, or to prohibit any bank from accepting as security for a loan
heretofore or hereafter made in good faith without security or upon
security since found to be inadequate, a mortgage, deed of trust, or
other such instrument upon real estate, or notes or other obligations,
which are so secured, nor shall the limits set forth in this section apply
to any loans secured by mortgage or deed of trust which are insured
by the Federal Housing Administrator under the provisions of Title II
of the National Housing Act.

Section 50. No bank or trust company to give preference to de-
positor or creditor by pledging assets; exceptions; limitations ——No
bank or trust company shall give preference to any depositor or cred-
itor by pledging the assets of such bank or trust company, except as
otherwise authorized in this section; provided, that any bank or trust
company may deposit securities for the purpose of securing deposits
of the United States government, and its agencies, and the Common-
wealth of Virginia, its agencies, and its political subdivisions, and for
the purpose of securing sureties on surety bonds furnished to secure
such deposits; and further provided, that any bank or trust company
is authorized :

First, for any temporary purpose to pledge its assets as security for
amounts of borrowed money which shall not, without the approval of
the State Corporation Commission given in advance in writing, exceed
in the aggregate the amount of its capital and surplus actually paid in
or earned, and remaining undiminished by losses or otherwise ; provided
that the amount of assets pledged for the security of a loan shall not
without such approval, so given, exceed one hundred and fifty per
centum of the amount borrowed, provided also, that no excess loan
made to any such bank or trust company shall be invalid or illegal as
to the lender, even though made without the consent of the State Cor-
poration Commission; provided, also, that rediscounting with or with-
out guarantee or indorsement of notes, drafts, bills of exchange or
loans is hereby authorized and shall not be limited by the terms of this
act, and shall not be considered as borrowed money within the mean-
ing of this section.

Second. To borrow from a Federal Reserve Bank and to redis-
count with and sell to a Federal Reserve Bank any and all notes, drafts,
bills of exchange, acceptances and other securities, and to give security
for all money so borrowed and for all liabilities incurred by the dis-
count of such notes, drafts, bills of exchange and other securities with-
out restriction in like manner and to the same extent as national banks
may lawfully do under the Acts of Congress and the regulations of the
Board of Governors of the Federal Reserve System.

Section 53. Statements rendered to the State Corporation Com-
mission and published; State Corporation Commission to furnish
forms; examination of banks and affiliates; revaluation of certain as-
sets; notice of impairment of capital; closing banks; receivers; dis-
continuance of State deposits—Every bank, as hereinbefore defined in
section one of this act, shall make to the State Corporation Commis-
sion, statements of its financial condition at such times as the national
banks organized under the laws of the United States are required to
make their statements to the comptroller of the currency and at such
other times as the State Corporation Commission may deem necessary ;
and also within fifteen days after such call publish such statements in
condensed form in some newspaper printed in the county, city or town
where such banking business is carried on, or where the principal of-
fice of such bank is located; and if there is no such paper published in
the county, city or town, then such statements shall be published in the
newspaper published in the county, city or town nearest thereto. The
statement shall be made and published in accordance with forms pre-
scribed by the State Corporation Commission certified under oath by
the president or cashier of the bank, or, if there is no cashier, by the
treasurer, and attested by at least three of its directors. It shall be the
duty of the State Corporation Commission to call upon all such banks
doing business in Virginia for the statements hereinbefore mentioned,
and at the time prescribed, and to have prepared such forms as may be
necessary to carry out the provisions of this section. Whenever calls
for statements are made by the State Corporation Commission, it shall
forward to each such bank two blank forms, one of which, after be-
ing properly filled out and certified, as hereinbefore required, shall be
returned to the State Corporation Commission within fifteen days next
succeeding the date of such call, and the other filled out in like manner,
shall be filed with the records of said bank.

The State Corporation Commission shall, at least once in each and
every year, and at such other times as they may deem necessary, cause
to be examined each and every bank doing business in this State.

The Commission is also authorized and empowered in connection
with the examination of any bank, to make, or to cause to be made,
such examination of the affiliates of such bank as shall be necessary to
ascertain the financial condition of such bank and to disclose fully the
relations between such bank and its affiliates and the effect of such
relations upon the affairs of such bank. For the purpose of this section
the term “affiliate” of any bank shall mean any corporation, business
trust, association, or other similar organization (1) of which such
bank, directly or indirectly, owns or controls either a majority of the
voting shares or more than fifty per centum of the number of shares
voted for the election of its directors, trustees, or other persons exer-
cising similar functions at the preceding election, or controls in any
manner the election of a majority of its directors, trustees, or other
persons exercising similar functions, or (2) of which control is held,
directly or indirectly, through stock ownership or in any other manner,
by the shareholders of such bank who own or control either a majority
of the shares of such bank or more than fifty per centum of the num-
ber of shares voted for the election of directors of such bank at the
preceding election, or by trustees for the benefit of the shareholders of
any such bank, or (3) of which a majority of its directors, trustees,
ia other persons exercising similar functions are directors of such
ank,

Said State Corporation Commission shall also upon written ap-
plication made to them by the board of directors or by the stockholders
representing two-fifths of the total outstanding capital stock of any
such bank doing business in this State, or whenever, in the judgment
of the State Corporation Commission, it may be necessary for the pro-
tection of the public or of persons depositing or dealing with such
bank, cause to be made a special examination of such bank. All ex-
penses incident to such special examination shall be borne by the bank
so examined. In making such examination, as required by this section,
the officers, directors and employees of such banks shall, upon the de-
mand of the person or officer designated to make such examination,
give to such examiner full access to all the money, books, paper, notes,
bills and other evidences of debts due said bank and shall also disclose
fully and truly all indebtedness and liability thereof, and shall furnish
him with all information which he may deem necessary to a full in-
vestigation into the affairs of said bank, and said examiner shall have
the right to examine, under oath, any and all of the directors, officers,
clerks and employees in any manner connected with the operation of
any such bank touching any matter or thing pertaining to said exam-
ination, and for that purpose shall have authority to administer oaths
to them. No previous notice of any examination shall be given such
bank or any of its directors, officers, or emplovees.

Whenever it shall appear to the State Corporation Commission,
from an examination of such bank, that any of the assets thereof are
valued by the bank at an amount in excess of their fair and reasonable
value, the State Corporation Commission shall, after such bank shall
have been given an opportunity to be heard by such Commission, have
authority to require such bank to revalue such assets on the basis of
their fair and reasonable value.

When any bank is examined, as herein provided, a copy of the
report of such examination shall for a period of sixty days after com-
pletion thereof be open to the inspection of the officers and directors
of the bank examined; upon resolution of the board of directors of
the said bank, such report may at any time during such period be in-
spected by the officers and directors of any other bank, designated in
the said resolution.

If upon the examination of any bank, the State Corporation Com-
mission shall ascertain that the banking laws of this State are not being
fully observed, or that any irregularities are being practiced, or that its
capital has been or is in danger of being impaired, the said Commis-
sion shall give immediate notice thereof to the officers and directors of
such bank and if deemed necessary in order to conserve the assets of
such bank or to protect the interests of depositors and creditors thereof,
the Commission may exercise any or all of the following powers:
(1) temporarily suspend the right of such bank to receive any further
deposits; (2) temporarily close such bank, for a period not exceeding
sixty days, which period may be further extended for a like period or
periods as the Commission may deem necessary; (3) require the of-
ficers and directors of such bank to liquidate in so far as shall be re-
quired its outstanding loans; (4) require that the impairment of the
capital stock shall be made good; (5) require that the said irregularities
shall be promptly corrected; (6) require such bank to make reports
daily or at such other times as may be required to the Commission as
to the results achieved in carrying out the orders of the Commission ;
and (7) without examination, close, for such period or periods as the
Commission may deem necessary, any bank facing an emergency due
to withdrawal of deposits or otherwise, or, without closing such bank,
grant to it the right to suspend or limit the withdrawal of deposits, for
such period as the Commission may determine. Provided, however,
that powers enumerated in (1), (2), (3) and (7) are to be exercised
only upon request of directors of such bank. If any such bank shall
fail or refuse to comply with any such order or orders of the Com-
mission, or if the Commission shall determine that a receiver should
be appointed, it may apply for the appointment of a receiver to take
charge of the business affairs and assets of the said bank and to wind
up its affairs as hereinafter provided.

If, however, upon the examination of any bank, it shall be found
to be insolvent, or it is deemed necessary by the State Corporation
Commission for the protection of the public interests, the Commission
may at once close the doors of such bank without any notice whatso-
ever, and the State Corporation Commission by its duly appointed
agent shall take charge of the books, assets and affairs of such bank
until the appointment of a receiver as provided by law.

If, upon such examination, it shall appear to the State Corporation
Commission that any such bank, which is designated as a State deposi-
tory, is insolvent or is unable to meet its obligations and the legal
demands upon it in the ordinary course of its business, the State Cor-
poration Commission shall forthwith notify the Treasurer of the Com-
monwealth, who shall discontinue further deposits therein of State
funds and take such action as may be necessary to protect the deposits
of the State therein.

In any case the said State Corporation Commission may, and it
shall be its duty, whenever, in its judgment, it is necessary for the
protection of the interests of the State or of the depositors and credi-
tors of any such bank doing business in this State, or of the creditors
of any trust company doing business in this State, to apply to any
court in this Commonwealth having jurisdiction to appoint receivers, for
the appointment of a receiver to take charge of the business affairs and
assets and to wind up the affairs and business of any such bank or
trust company failing to comply with the requirements of the State
Corporation Commission, or found upon examination to be insolvent
or unable to meet its obligations and the legal demands made upon it
in the ordinary course and conduct of its business, as aforesaid.

And where such receiver shall be appointed for any bank authorized
to do a trust business or for any trust company he may be empowered
by the court by which he is appointed to act for and on behalf of such
bank or trust company in the execution of the power of sale conferred
upon such bank or trust company by any instrument, and, where such
sale is made, to execute, acknowledge and deliver for and on behalf
of such bank or trust company such deed as may be proper under the
provisions of such instrument for the conveyance of title to the prop-
erty conveyed therein, and upon payment of the amount secured under
any such instrument, to execute, acknowledge and deliver for and on
behalf of such bank or trust company a proper release deed for the
property conveyed therein. And any such sale made by such receiver
and any such deed or release executed by him, when so authorized and
empowered, shall be as effective and as binding as if the same had been.
made or executed by such bank or trust company before the appoint-
ment of such receiver. And all sales which have been made by any
such receivers within the State of Virginia and all such deeds and re-
lease deeds which have been executed by any such receivers within
this State under the authority of the court by which they were ap-
pointed, since the seventeenth day of June, nineteen hundred and
twenty-eight, the date upon which the Virginia Banking Act became
effective, shall be as effective and as binding as if the same had been
made by such bank or trust company before the appointment of
such receiver.

Such receiver shall be and become assignee of the assets and prop-
erty of any such bank or trust company, with power to prosecute and
defend, in the name of the bank or trust company or in his name as
such receiver or otherwise, in Virginia or elsewhere, all such suits as
may be necessary for the purposes aforesaid, and to appoint such
agents or attorneys for any such purposes as the court may approve.

Section 57. Appointment of examiners and assistants; their quali-
fications—The State Corporation Commission, for the purpose of
carrying out the provisions of this act, shall appoint such officers,
examiners, assistant examiners, clerks and stenographers, as in its judg-
ment may be necessary for the discharge of the several duties imposed
upon it by this act, provided that the persons appointed as such officers
and as such examiners of banks shall be citizens of this State experi-
enced in accounting, and shall have had at least five years of service
in some bank, or sufficient service as assistant examiners, in addition
to the actual banking experience to make five years, assistant examiners
of banks two years of service in some bank, and the State Corporation
Commission shall fix the salaries of such officers, examiners, assistant
examiners, clerks and stenographers. Such officers, examiners and as-
sistant examiners, before entering upon the duties of their office, shall
take the necessary oath before the State Corporation Commission, as
prescribed by the Constitution of this State, and such officers, ex-
aminers and assistants engaged in the examination of banks shall give
bond in the penalty of five thousand dollars, with surety in some good
solvent bonding company to be approved by the State Corporation
Commission conditioned for the faithful performance of their duties,
and the premiums on the said bonds shall be paid out of the fund
created by the next section.

Section 71. Powers of trust companies ; regulations and restrictions.
—AIl banks, which are authorized to do a trust business, and all trust
companies heretofore and hereafter chartered, shall have the powers,
and be subject to the regulations and restrictions conferred or im-
posed upon companies authorized to do a general banking business in
this State, and shall in addition thereto have the following rights,
powers and privileges, and shall be subject to the following regulations
and restrictions:

(a) To act as agent for any person, corporation, municipality or
State for the collection or disbursement of interest, or income or prin-
cipal of securities.

(b) To act as the fiscal or transfer agent of any State, municipality,
body politic or corporate, and in such capacity to receive and disburse
money ; to transfer, register and countersign certificates of stock, bonds
or other evidences of indebtedness, and to act as agent of any corpora-
tion, foreign or domestic, for any lawful purpose.

(c) To act as trustee under any mortgage or bond issued by any
individual, municipality, body politic or corporate, and accept and exec-
ute any other municipal or corporate trust not inconsistent with the
laws of this State.

(d) To accept trusts from and execute trusts for married women,
in respect to their separate property, and to be their agent in the man-
agement of such property, or to transact any business in relation
thereto.

(e) To act as guardian, receiver or trustee of the estate of any
minor and as depository of any money paid into court, whether for
the benefit of any minor or other person, corporation or party.

(f) To take, accept and execute any and all such lawful trusts,
duties and powers in regard to the holding and management and dis-
position of any estate, real and personal, and the rents and profits there-
of, or the sale or lease thereof, as may be granted or confided to it by
any. court of record, judge or clerk, or by any person, corporation,
municipality or other authority, and it shall be accountable to all parties
in interest for the faithful discharge of every such trust, duty or
power which it may so accept.

(g) To take, accept and execute any and all such trusts and powers
of whatever nature and descriptions as may be conferred upon or
entrusted or committed to it by any person or persons, or any body
politic or corporate, or by other authority, by grant, assignment,
transfer, devise, bequest or otherwise, which may be entrusted or com-
mitted or transferred to it or vested in it by order of any court of
record, judge or clerk, and to receive and hold any property or estate,
real or personal, which may be the subject of any such trust.

(h) To act as executor under the last will and testament or ad-
ministrator of the estate of any deceased person; or as guardian of
any infant; or as committee of the estate of any insane person, idiot
or habitual drunkard, or trustee or committee for any convict in the
penitentiary, under appointment of any court of record, judge or clerk
thereof, having jurisdiction of the estate of such deceased person,
infant, insane person, idiot, habitual drunkard or convict.

(j) No bank or trust company of this State, with a minimum
unimpaired capital stock of fifty thousand dollars or more, shall be
required by any officer or court of this State to give security upon
appointment to or acceptance of any office of trust which it may, by
law, be authorized to execute ; provided, however, that no bank or trust
company shall qualify on an estate having a value in excess of its com-
bined unimpaired capital and surplus without giving bond for such
excess.

(k) In all cases where any bank or trust company in this State
shall be appointed to act as trustee, executor or administrator of any
estate or guardian for any infant, or in any other fiduciary capacity,
it shall be lawful for the president, vice-president, cashier, treasurer,
secretary, or any other officer of such trust company to take and sub-
scribe for such corporation any and all oaths required to be taken or
subscribed by such executor, administrator, trustee, guardian, or other
fiduciary.

(1) Nothing in this section shall ever be construed as authorizing
the creation of a trust not lawful as between individuals nor to prohibit
the deposit of funds by court and fiduciaries in banks of deposit and
discount and savings banks.

(m) Every State bank which obtains permission from the State
Corporation Commission to do a trust business, and every trust com-
pany permitted to do commercial banking, shall establish a separate
trust department. Such department shall be established before such
bank or trust company undertakes to act in any fiduciary capacity and
shall be placed under the management of an officer or officers whose
duties shall be prescribed by the board of directors of the bank or
trust company or by either an amendment to the by-laws of the bank or
trust company or by a resolution duly entered in the minutes of the
board of directors.

(n) Funds received or held in the trust department of a bank or
trust company awaiting investment or distribution shall be invested or
distributed as soon as practicable and shall not be held uninvested by
such bank or trust company any longer than is reasonably necessary.

Funds received or held in the trust department of a bank or trust
company awaiting investment or distribution shall not be used by the
bank or trust company in the conduct of its business, through deposit
in its commercial or savings department to the credit of its trust de-
partment, or otherwise, unless the bank or trust company first delivers
to the trust department, as collateral security therefor securities of
any of the following classes;

(1) Bonds, notes, or certificates of indebtedness of the United
States; or

(2) Other readily marketable securities of the classes in which
fiduciaries are authorized or permitted to invest trust funds, as set
forth in section fifty-four hundred and thirty-one of the Code of
Virginia; or

(3) Other readily marketable bonds, notes, and/or debentures, com-
monly known as investment securities, meeting the following require-
ments:

(a) That the issue be of a sufficiently large total to make market-
ability possible ;

(b) Such a public distribution of the securities must have been
provided for or made in a manner to protect or insure the marketability
of the issue;

(c) That the trust agreement under which the security is issued
provides for a trustee independent of the obligor, which trustee must
be a bank or trust company.

The securities so deposited as collateral shall be owned by the
bank or trust company and shall at all times be at least equal in market
value to the amount of trust funds so used in the conduct of the business
of the bank or trust company.

In the event of the failure or liquidation of such bank or trust
company the owners of the funds held in trust for investment shall
have a lien on the bonds or other securities so set apart in addition
to their claim against the estate of the bank.

(o) The securities and investments held in each trust shall be
kept separate and distinct from the securities owned by the bank and
separate and distinct one from another.. Trust securities and invest-
ments shall be placed in the joint custody of two or more officers or
other employees designated by the board of directors of the bank or
trust company, and the said joint custody shall be interpreted to mean
that neither of such officers shall have access alone at any time to such
securities and investments, and all such officers and employees shall
be bonded.

(p) Where the instrument creating the trust does not specify the
character or class of investments to be made, and does not expressly in-
vest in the bank, its officers or its directors a discretion in the matter
of investments, funds held in trust shall be invested in any securities in
which corporate or individual fiduciaries may lawfully invest.

(r) No trust company or bank doing a trust business shall buy any
property for a trust from itself, or a department or branch thereof, or
from an affiliate or subsidiary corporation, or from an officer or em-
ployee of such trust company or bank. Any such purchase shall be
voidable at the election of any beneficiary or successor trustee. But a
trust company or bank as trustee of one trust may buy from itself as
trustee of another trust bonds and negotiable notes directly secured by
a first lien on improved real estate which at the time of purchase satisfy
the requirements of section fifty-four hundred and thirty-one of the
Code of Virginia.

(s) A sale of any trust property by a trust company or bank doing
a trust business to itself, or a department or branch of such trust com-
pany or bank, or to an affiliate or subsidiary corporation, or to an officer
or employee of such trust company or bank shall be a breach of trust
and voidable at the election of any beneficiary or successor trustee.
But a trust company or bank as trustee of one trust may sell to itself as
trustee of another trust bonds and negotiable notes directly secured by a
first lien on improved real estate which at the time of sale satisfy the re-
quirements of section fifty-four hundred and thirty-one of the Code
of Virginia.

(t) Any trust company or any bank doing a trust business, failing
to comply with the provisions imposed by subsections (m), (n), (0)
and (r), of this section or any one or more of them, may be suspended
or prohibited, or suspended and prohibited from doing a trust business
by the State Corporation Commission.

Section 75-a. Amount of surety bond or securities required to be
deposited by banking institutions as security for deposits insured by
Federal Deposit Insurance Corporation—In every case where a bank
is required by the laws of this State to furnish or deposit a surety bond
or securities as security for the payment of any funds deposited in such
banking institution, other than funds received or held in the trust de-
partment of such banking institution awaiting investment or distribu-
tion, the amount of the penalty of such bond or the amount of such
securities shall be as required by law, less the amount of such deposit
as is, to the satisfaction of the body, officer or person charged with the
responsibility of seeing that a surety bond or securities are furnished
as security for such deposit, insured under the provisions of section
twelve-b of the Federal Reserve Act, as amended, or any amendments
thereto.

Section 75-b. Removal and restraint of director or officer of bank
from participating in management thereof; appeals——Whenever any
director or officer of a bank doing business in this State, shall have
continued to violate any law relating to such bank or shall have con-
tinued unsafe or unsound practices in conducting the business of such
bank, after the said director or officer, and the governing board of the
bank of which he is a director or officer, have been warned in writing by
the State Corporation Commission to discontinue such violation of law
or such unsafe or unsound practices, the State Corporation Commission
shall certify the facts to the circuit court of the city of Richmond. The
said circuit court shall thereupon enter an order requiring such director
or officer to appear before such court, within not less than ten days, to
show cause why he should not be removed from office and thereafter
restrained from participating in any manner in the management of said
bank. The said order shall contain a brief statement of the facts certi-
fied to the court by the State Corporation Commission. A copy of such
order shall be served upon such director or officer, and a copy thereof
shall be sent by registered mail to each director of the bank affected.
If after granting the accused director or officer a reasonable oppor-
tunity to be heard the court shall find that he has continued to violate
any law relating to such bank, or has continued unsafe or unsound prac-
tices in conducting the business of such bank, after he and the governing
board of the bank, of which he is a director or officer have been warned
in writing by the State Corporation Commission to discontinue such
violation of law or unsafe or unsound practices, the court shall enter an
order removing such director or officer from office and restraining such
director or officer from thereafter participating in any manner in the
management of the said bank. A copy of such order shall be served
upon such director or officer. A copy of such order shall also be served
upon the bank of which he is a director or officer, whereupon such
director or officer shall cease to be a director or officer of the said bank
and thereafter cease to participate in any manner in the management
of such bank.

The State Corporation Commission in any such hearing shall be
represented by the Attorney General.

The State Corporation Commission and any such director or officer
aggrieved by any order of the court removing such director or officer
from office and restraining him from participating in any manner in the
management of the bank of which he is a director or officer, or refusing
to remove the said director or officer from office and to restrain him
from participating in any manner in the management of the said bank,
shall have, of right, an appeal to the Supreme Court of Appeals within
sixty days from the date of such order.

Any such director or officer removed and restrained, as herein pro-
vided, from participating in any manner in the management of any bank
of which he is a director or officer, who thereafter participates in any
manner in the management of such bank except as a stockholder therein
shall be fined not more than five thousand dollars, or confined in the
penitentiary for not less than one year nor more than five years, or both.

Section 75-c. Embezzlement, et cetera; by officers, directors, agents
and employees of banks.—Any officer, director, agent or employee of
any bank, as defined in this act, who embezzles, abstracts, or wilfully
misapplies any of the moneys, funds or credits of, or in the possession
or control of such bank, shall be punished as if found guilty of larceny
under the laws of this State. Any officer, director, agent or employee
of any bank, as defined in this act, who issues or puts forth any certifi-
cate of deposit, draws any order or bill of exchange, makes any ac-
ceptance, assigns any note, bond, draft, bill of exchange, mortgage,
judgment, decree or other instrument in writing, or who makes any
false entry in any book, report or statement of such bank, with intent
in any case to injure or defraud such bank, or any other company, body
politic or corporate, or any individual person, or to deceive any officer
of such bank, or the State Corporation Commission, or any agent or
examiner authorized to examine the affairs of such bank, and any per-
son, who, with like intent, aids or abets any such officer, director, agent
or employee of such bank, in any such violation, shall be guilty of a felony
and upon conviction thereof shall be confined in the penitentiary not
less than one year or more than ten years, or be confined in jail not
exceeding twelve months and fined not exceeding five thousand dollars.

Section 75-d. Penalty on officers, directors, agents and employees
violating or knowingly causing bank to violate act; civil liability not
affected.—Any officer, director, agent or employee of any bank who
knowingly violates or who knowingly causes any bank to violate any
provision of this act, or knowingly participates or knowingly acquiesces
in any such violation, shall, unless other punishment be provided for
the offense of such officer, agent, or employee, be guilty of a misde-
meanor and be punished accordingly. The provisions of this section
shall not affect the civil liability of any such officer, director, agent or
employee.