to such stockholder at his place of business or served personally upon him. If any stockholder shall refuse or fail to pay the assessment specified in the notice within sixty (60) days from the date thereof, said Directors shall have the right to sell said stock, or any part thereof, to the highest bidder at public or private auction, and with or without notice as the Auditor may direct the sale to be made, but such stock shall not be sold for a less sum than valuation put thereon by the Auditor and certified by him to the Board of Directors, and the Auditor may revalue such stock, and new offers for sale may be made at any time, and from the proceeds of sale shall first be deducted the costs thereof.

If any association shall neglect for sixty (60) days after the Auditor shall have required such deficiency to be made good to comply with such request, the Auditor shall report the fact to the Attorney-General, who shall at once institute such legal proceedings as shall be proper to wind up the defaulting association according to law, and in violation of law, or default named in this act shall be sufficient cause for the appointment of a receiver for any such association. [As amended, 1895 S., p. 202. In force July 1, 1895.

2697. What transfers void. 14. All transfers of notes, bonds, bills of exchange, and other evidences of debt owing to any association, or of deposits to its credit; all assignments of mortgages, sureties on real estate, or of judgments or decrees in its favor; all deposits of money, bullion, or other valuable thing to its use, or for the use of any of its shareholders or creditors; and all payments of money to either, made after the commission of an act of insolvency, or in contemplation. thereof, with a view to prevent the application of its assets to the proper payment of its just liabilities, or with a view to the preference of one creditor to another, shall be utterly null and void.

2698. Number of directors. 15. The number of directors in any such association may be increased or diminished by a vote of the shareholders owning two-thirds of the stock, at any regular annual meeting thereof for the purpose of electing directors; but in no case shall the number of directors be less than three nor more than nine. If from any cause, an election of directors shall not be made at the time appointed, the association shall not, for that cause, be dissolved, but an election may be held on any subsequent day, notice of the time and place of holding the same being given as required in section six [§ 2689]. 2699. Annual statements. 16. It shall be the duty of the president and cashier of every association organized under this Act, to annually make out a sworn statement of the financial condition of such association, and cause the same to be published for two weeks in a newspaper printed and published in the county where such association has its principal place of business, if a newspaper be printed in such county; if no paper be printed in such county, then they shall cause such statement to be published in a newspaper printed nearest to the place where such association has its principal office.

2700. Penalties. 17. Any person who shall fail or refuse to comply with the provisions of the preceding section shall be guilty of a misdemeanor, and, upon conviction thereof, shall be fined in any sum not less than twenty-five dollars and not exceeding one thousand dollars.

2701. Examinations. 18. The Auditor of State, with the approval of the Governor, as often as shall be deemed necessary or proper, shall appoint a suitable person or persons to make an examination of the affairs of every banking association under this act, which person shall not be a director or other officer in any association whose affairs he shall be appointed to examine, and who shall have power to make a thorough examination into all the affairs of the association, and, in doing so, to examine any of the officers and agents thereof on oath; and if such bank be in an insolvent or failing condition, or if the assets thereof are being wasted or improperly used or converted, said examiner shall at once notify said Auditor of State, who shall thereupon direct said examiner, or some other person appointed by him, to at once take charge and control of said bank, and all the books, notes, cash on hand and other assets, and said Auditor of State shall immediately thereafter make application to the Judge of the Circuit Court or Superior Court of the county where such bank is situated, either during the term time or in vacation, for the appointment of a receiver to take charge of said bank. Notice of such application shall be given to the stockholders and depositors of said bank by publication, as directed by the Judge of said court. Should any such bank fail or suspend between the periods of the examination herein authorized, it shall be the duty of the President or Cashier of said bank to immediately notify the Auditor of State of such failure or suspension, and said Auditor shall thereupon appoint some proper person to take charge of the assets of said bank pending the application for and appointment of a receiver as herein provided for. Such person so appointed to take charge of the assets of any such bank shall receive such compensation as may be allowed him by the court having jurisdiction over the receiver appointed. Said examiner shall make a full and detailed report of the condition of the association to the Auditor, and the association shall not be subject to any other visitorial powers than such as are authorized by this act, except such as are vested in the several courts of this State. Associations being administered by receivers as assignees shall be subject to the same examinations, and be required to report to the Auditor of State, as is required of solvent associations. And examiners so appointed to examine said associations shall receive compensation for services as follows: For examining banks having a capital of less than $40,000, fifteen ($15) dollars, those having a capital of $40,000 and less than $100,000, twenty dollars; those having a capital of $100,000 and less than $300,000, twenty-five dollars; those having a capital of $300,000 and less than $400,000, thirty-five dollars; those having a capital of $400,000 and less than $500,000, forty dollars; those having a capital of $500,000 and less than $600,000, fifty dollars; those having a capital of $600,000 and over, seventy-five dollars; which amounts shall be assessed by the

Auditor of State upon, and paid by, the respective associations so examined, and when collected be paid to the proper examiner. A failure to pay such assessment on notice shall be cause for the appointment of a receiver of the association in default. The Auditor shall also assess all expenses and outlays incident to taking and holding possession of an association as herein provided, including ten dollars per day for the services of the examiner in charge thereof, to be paid beforeany distribution of the assets of the association. [As amended, 1895 S., p. 203. In force July 1, 1895.

2702. Reports. 19. Every association formed under the provisions of this Act shall make to the Auditor of State not less than five reports during each and every year, according to the form which may be prescribed by him, verified by the oath or affirmation of the president, cashier, or other managing agent of such association; which report shall exhibit, in detail and under appropriate heads, the resources. and liabilities of the association at the close of business on any past day to be by him specified; and shall transmit such report. to the shall Auditor within five days after the receipt of a request or requisition therefor from him; and the report of each association above required, in the same form in which it is made to the Auditor, shall be published in a newspaper published in the place where such association is established, or, if there be no newspaper in theplace, then in one published nearest thereto in the same county or an adjoining county, at the expense of the association; and such proof of publication shall be furnished as may be required by the said Auditor. And the said Auditor shall have power to call for special reports from any particular association, whenever, in his judgment, the same shall be necessary in order to a full and complete knowledge of its condition. Any association failing to make and transmit any such report shall be subject to a penalty of one hundred dollars for each day, after five days, that such bank shall delay to make and transmit any such report as aforesaid, to be recovered in any Court having jurisdiction, in an action instituted by the Auditor of State on the relation of the State of Indiana; and when so recovered, shall be placed in the Treasury of the State on account of the general fund.

1. Assigments or transfers of evidence of indebtedness by an insolvent bank, with a view of preferring creditors, are void, and creditor taking such a trans

fer obtains no title.- Brighton v. White, 128 Ind. 320.

2. Accepting a certified check does not make the acceptor assume the risk of the solvency of the bank, but he must use diligence in presenting the same for payment.-Born v. Bank, 123 Ind. 78.

3. If the holder of a check_procures the bank to certify it the drawer will be released. Born 7. Bank, 123 Ind. 78.

4. The title to articles specially deposited remains in the depositor.— Coffin v. Anderson, 4 Blkf. 395; McLain v. Wallace, 103 Ind. 562.

5. Trust funds deposited generally in the name of the trustee will not give him preference over other general depositors.- Fletcher z. Sharp, 108 Ind. 276.

6. Deposits are deemed to have been made from the date of entry in the passbook and such entries are evidence against the bank.-Wasson v. Lamb, 120 Ind. 514.

7. If a bank has a note for collection, the deposits of the maker may be applied on the note if there is no valid defense to the note.- Bedford Bank v. Acoam, 125 Ind. 584.

8. If the drawer of a check has no funds in the bank, presentment for payment and notice of non-payment is not necessary.- Fletcher v. Pierson, 69 Ind. 281; Culver . Marks, 122 Ind. 554.

2703. How organized. 1. Any number of persons, being voters of this State, not less than seven nor more than twenty-one, who shall have been citizens of the county where they then reside for at least five years then next preceding, and who shall severally own unincumbered real estate therein worth at least five thousand dollars, exclusive of perishable improvements, may associate themselves together for the purpose of organizing and managing a savings-bank in such county, in accordance with the provisions of this Act, as a body politic and corporate.

2704. Certificate. 2. Such persons shall execute a certificate under their hands and seals, in which shall be set forth

First. The name assumed by such association.

Second. The name of the town or city in which the association is to be located, and its business carried on.

Third. The name, residence, occupation, and post-office address of each member of such association.

Fourth. A declaration that each member of such association will accept the responsibilities and faithfully discharge the duties of a trustee thereof. 2705. Execution and recording of certificate. 3. Such certificate shall be executed in duplicate, and be duly acknowledged before the Judge of the Circuit Court of the county wherein such association is located; which Judge shall make diligent inquiry, and, if necessary, hear proof of the qualifications of the persons executing said certificate, and if satisfied that they are duly qualified as required by section one of this Act [§ 2703], and are in all respects suitable persons to be intrusted with the management of a savings-bank, he shall certify such acknowledgment and such facts as to the qualifications and fitness of said persons upon said certificate, one copy of which shall, thereupon, within thirty days, be recorded in the office of the Recorder of said county, and the other shall be filed in the office of the Auditor of State; whereupon said persons and their lawfully appointed successors shall be authorized as a corporation to open and conduct a savings-bank under the provisions of this Act.

2706. Forfeiture of rights. 4. Any savings-bank so incorporated that shall not organize fully and commence business within one year after the filing and recording of said certificate, as provided in the preceding section, shall forfeit all its rights and privileges as such corporation.

2707. First trustees. 5. The persons named in the certificate aforesaid shall be the first trustees of such corporation, and shall have the entire management and control of the affairs thereof, subject to the provisions. herein contained and the laws of the State.

2708. Vacancies. 6. Whenever any trustee shall die, resign, remove from the county where such savings bank is located, become insolvent or incapacitated for the discharge of his duties, or fail for nine successive months to attend the regular meetings of the Board of Trustees, or shall borrow, directly or indirectly for himself or any other person or persons, firm or firms, or corporation or corporations in which he is financially interested, any of the funds of such savings bank, or become surety for any borrower thereof, a vacancy shall thereby be created, and a successor shall be elected by the residue of the Board of Trustees by ballot, at any regular meeting thereof, or at a special meeting of which all the remaining members of the board shall have notice: Provided, That the votes of the majority of the legal number of trustees of such bank shall be necessary for a choice of such successor, who shall possess all the qualifications required for the original trustees. [As amended 1901 S., p. 155. Approved March 6, 1901.

2709. Judge appoints trustee, when. 7. In case of a failure of any savings-bank to fill any vacancy in the board of trustees for three months after the same occurs, said Judge shall, upon the written request of any two trustees, or of any five depositors in said bank, appoint a person duly qualified as hereinbefore provided, to fill the vacancy.

2710. Certificate of fitness. 8. Every trustee, elected or appointed to fill a vacancy, shall, before he is authorized to enter upon his duties, procure from said Judge a certificate of qualification and fitness as provided in section three [§ 2705]; which certificate shall forthwith be recorded in the journal of the proceedings of such bank, and then be filed in the office of the Auditor of State.

2711. Officers and agents. 9. The trustees of every savings-bank shall elect from their number a president and one or more vice-presidents, and may also choose from their number, or otherwise, such other officers or agents as they may deem expedient to conduct the business thereof;