CHAPTER IV. BANKS. ART. 1. DEFINITIONS. Section The following definitions shall be applied to the terms used in this act 212 ART. 2. CREATION. How incorporated 213 Certificate of incorporation; how signed, proved and filed 214 Stockholders, individual liability of . Exemption from liability, repealing of Executors, trustees, etc., not personally liable Transferor not liable, when Stock sold if subscription unpaid Impairment of capital; assessment upon stockholders 228 229 230 231 232 233 234 235 236 237 ART. 7. CORPORATION COMMISSION. Corporation commission shall have supervision over Report of condition of trust and surety companies 269 270 271 272 273 274 275 Special reports . Failure to make report, penalty for Annual report of stockholders Official communications of corporation commission .276 277 278 279 280 281 282 283 284 Books, records, etc., corporation commission may prescribe ART. 8. BANK EXAMINERS. Bank examiners, appointed by corporation commission Officers and employees, removal of Examiners may administer oath Examiners may make arrest Capital stock, advertising larger amount than that paid in 299 ART. 1. DEFINITIONS. Section 302 303 304 305 306 307 308 309 310 311 212. The following definitions shall be applied to the terms used in this act: The term "bank" when used in this act shall be construed to mean any corporation, partnership, firm, or individual receiving, soliciting, or accepting money or its equivalent on deposit as a business: Provided, however, this definition shall not be construed to include building and loan associations, Morris plan companies, industrial banks or trust companies not receiving money on deposit. a fund created pursuant to the The term'surplus" means provisions of this act by a bank from its net earnings or undivided profits which, to the amount specified and any additions thereto set apart and designated as such, is not available for the payment of dividends, and cannot be used for the payment of expenses or losses so long as such bank has undivided profits. Banks and Banking § 41. The primary purpose of a bank surplus is the accumulation of a sum against which bad debts may be charged, so that at all times the capital may be kept unimpaired. Pullen v. Corporation Commission, 152 N. C. 548, 68 S. E. 155. The term "undivided profits" means the credit balance of the profit and loss account of any bank. The term "net earnings" means the excess of the gross earnings of any bank over expenses and losses chargeable against such earnings during any dividend period. The term "time deposits" means all deposits, the payment of which cannot be legally required within thirty days. The term "demand deposits" means all deposits, the payment of which can be legally required within thirty days. The term "insolvency" means: (a) when a bank cannot meet its deposit liabilities as they become due in the regular course of business; (b) when the actual cash market value of its assets is insufficient to pay its liabilities to depositors and other creditors; (c) when its reserve shall fall under the amount required by this act, and it shall fail to make good such reserve within thirty days after being required to do so by the Corporation Commission. 1921, c. 4, s. 1. ART. 2. CREATION. 213. How incorporated. Any number of persons, not less than five, who may be desirous of forming a company and engaging in the business of establishing, maintaining, and operating banks of discount and deposit to be known as commercial banks, or engaging in the busines of establishing, maintaining, and operating offices of loan and deposits to be known as savings banks, or of establishing, maintaining, and operating banks having departments for both classes of business, or operating banks engaged in doing a trust, fiduciary, and surety business, shall be incorporated in the manner following and in no other way; that is to say, such persons shall, by a certificate of incorporation under their hands and seals set forth: 1. The name of the corporation. No name shall be used already in use by another existing corporation organized under the laws of this state or of the Congress, or so nearly similar thereto as to lead to uncertainity or confusion. 2. The location of its principal office in this state. 3. The nature of its business, whether that of a commercial bank, savings bank, trust company, or a combination of two or more or all of such classes of business. 4. The amount of its authorized capital stock which shall be divided into shares of fifty or one hundred dollars each; the amount of capital stock with which it will commence business, which shall not be less than fifteen thousand dollars in cities or towns or three thousand population or less; not less than thirty thousand dollars in cities and towns whose population exceeds three thousand, but does not exceed ten thousand; nor less than fifty thousand dollars in cities and towns whose population exceeds ten thousand but does not exceed twenty-five thousand; nor less than one hundred thousand dollars in cities and towns having a population of more than twenty-five thousand; the population to be ascertained by the last preceding National census: Provided, that subsection four of section two of this act shall not apply to banks organized and doing business prior to its adoption. 5. The names and postoffice addresses of subscribers for stock, and the number of shares subscribed by each; the aggregate of such subscriptions shall be the amount of the capital with which the company will commence business. 6. Period, if any, limited for the duration of the company. 1921, c. 4, s. 2. 214. Certificate of incorporation; how signed, proved and filed. The certificate of incorporation shall be signed by the original incorporators, or a majority of them, and shall be proved or acknowledged before an officer duly authorized under the laws of this state to take proof or acknowledgment of deeds, and shall be filed in the office of the secretary of state. The secretary of state shall forthwith transmit to the corporation commission a copy of said certificate of incorporation, and shall not issue or record the same until duly authorized so to do by the corporation commission as hereinafter provided. 1921, c. 4, s. 3. 215. Preliminary examination. Upon receipt of a copy of the certificate of incorporation of the proposed bank, the corporation commission shall at once examine into all the facts connected with the formation of such proposed corporation, including its location and proposed stockholders, and if it appears that such corporation, if formed, will be lawfully entitled to commence the business of banking, the corporation commission shall so certify to the secretary of state, who shall thereupon issue and record. such certificate of incorporation. But the corporation commission may refuse to so certify to the secretary of state, if upon examination and investigation it has reason to believe that the proposed corporation is formed for any other than legitimate banking business, or that the character, general fitness, and responsibility of the persons proposed as stockholders in such corporation are not such as to command the confidence of the community in which said bank is proposed to be located; or that the public convenience and advantage will not be promoted by its establishment, or that the name of the proposed corporation is likely to mislead the public as to its character or its purpose; or if the proposed name is the same as one already adopted, or appropriated by an existing bank in this state, or so similar thereto as to be likely to mislead the public. 1921, c. 4, s. 4; Ex. Session 1921, c. 56, s. 1. 216. Certificate of incorporation, when certified. Upon receipt of such certificate from the corporation commission, the secretary of state shall, if said certificate of incorporation be in accordance with law, cause the same to be recorded in his office |