ance commissioner; nor shall any corporate name be so amended as to include the words "bank," "banking," "banker," "trust," unless the corporation be under such provision. No person, association, firm, or corporation domiciled within the state of North Carolina, except corporations, persons, associations, or firms reporting to and under the supervision of the corporation commission, or under the supervision of the Insurance Commissioner, shall therein advertise or put forth any sign as bank, banking, banker, or trust company, or use the word bank, banking, banker, or trust as part of its name and title: Provided, that this act shall not be held to prevent any individual as such from acting in, any trust capacity as herebefore. Any violation of the provisions of this section shall be a misdemeanor, and upon conviction thereof the offender shall be fined in a sum not exceeding five hundred dollars for each offense.

1921, c. 4, s. 81.

295. False reports, willfully and maliciously making. Any person who shall willfully and maliciously make, circulate, or transmit to another or others any statement, rumor, or suggestion, written, printed, or by word of mouth, which is directly or by inference derogatory to the financial condition, or affects the solvency or financial standing of any bank, or who shall counsel, aid, procure, or induce another to state, transmit, or circulate any such statement or rumor shall be guilty of a misdemeanor, and upon conviction thereof shall be fined or imprisoned, or both, in the discretion of the court.

1921, c. 4, s. 82.

296. Misapplication, embezzlement of funds, etc. Whoever being an officer, employee, agent, or director of a bank, embezzles, abstracts, or willfully misapplies any of the money, funds, credit, or property of such bank, whether owned by it or held in trust, or willfully and fraudulently issues or puts forth a certificate of deposit, draws an order or bill of exchange, makes an acceptance, assigns a note, bond, draft, bill of exchange, mortgage, judgment, or decree, or makes a false statement or certificate as to a trust deposit or contract, for or under which such bank is acting as trustee, or makes a false entry in, or conceals the true and correct entry in a book, report, or statement of such bank, or who shall loan the funds or credit of any banks to any company or corporation known to be insolvent, or which has ceased to exist, or to any person upon the collateral security of any stocks or bonds of such company or corporation which is known to be insolvent, or which

has ceased to exist, or which never had any existence, or fictitiously borrows or solicits, obtains or receives money for a bank not in good faith, intended to become the property of such bank, with intent to defraud or injure the bank or another person or corporation, or to deceive an officer of the bank or an agent appointed to examine the affairs of such bank, or publishes a false report relating to the financial condition of the bank, with the intent to conceal its true financial condition, or to defraud or injure it or another person or corporation, shall be guilty of a felony, and upon conviction thereof shall be fined not more than ten thousand dollars, or imprisoned in the state's prison not more than thirty years, or both.

1921, c. 4, s. 83.

297. False certification of a check. Whoever, being an officer, employee, agent, or director of a bank, certifies a check drawn on such bank, and willfully fails to forthwith charge the amount thereof against the account of the drawer thereof, or willfully certifies a check drawn on such bank unless the drawer of such check has on deposit with the bank an amount of money subject to the payment of such check and equivalent to the amount therein specified, shall be guilty of a felony, and upon conviction shall be fined not more than five thousand dollars, or imprisoned in the state's prison for not more than five years, or both. 1921, c. 4, s. 84.

298. Insolvent banks, receiving deposits in. Any person, being an officer or employee of a bank, who receives, or being an officer thereof, permits an employee to receive money, checks, drafts, or other property as a deposit therein when he has knowledge. that such bank is insolvent, shall be guilty of a felony, and upon conviction thereof shall be fined not more five thousand dollars or imprisoned in the state's prison not more than five years, or both.

1921, c. 4, s. 85.

As to civil liability of diretors and officers making false reports and statements as to condition of bank, see 265 supra, and annotations thereunder.

299. Capital stock, advertising larger amount than that paid in. It shall be unlawful for any bank to advertise in a newspaper, letterhead, or any other way, a larger capital stock than has been actually paid-in in cash. Any bank violating this section shall be subject to a penalty of five hundred dollars for each and every offense. The penalty herein provided for shall be recovered.

by the state in a civil action in any court of competent jurisdiction, and it shall be the duty of the attorney-general to prosecute all such actions.

1921, c. 4, s. 86.

300. Offenses against banking law. Any offense against the banking law of the state of North Carolina which is not elsewhere specifically declared to be a crime, or for which elsewhere a penalty is not specifically provided, is hereby declared to be a misdemeanor and shall be punishable at the discretion of the court. The corporation commission is authorized and directed to prosecute all offenses against the banking laws of the state, and to that end is expressly authorized to employ counsel to prosecute in the inferior courts and to aid the solicitor in the superior courts. The auditor of the state shall, upon the certificate of the chairman of the corporation commission, accompanied by an itemized statement of the account, draw his warrant upon the state treasurer to compensate the counsel so employed, and the state treasurer shall pay the same out of the funds in the treasury and not otherwise appropriated.

Ex. Session 1921, c. 56, s. 4.

301. General corporation law to apply. All provisions of the law relating to private corporations and particularly those enumerated in the chapter entitled "Corporations," not inconsistent with this act or with the business of banking, shall be applicable to banks.

1921, c. 4, s. 87.

ART. 10. INDUSTRIAL BANKS.

302. Industrial bank defined. The term "industrial bank” as used in this article shall mean any corporation formed under the provisions thereof, and any corporation heretofore organized under the general corporation law of this state which shall hereafter reorganize as an industrial bank pursuant to the provisions of this article.

C. S., s. 255; 1919, c. 225, s. 1.

303. Manner of organization. Corporations may be organized under this article in the same manner as provided for corporations authorized under the chapter on corporations.

C. S., s. 256; 1919, c. 225, s. 2.

304. Capital stock. The capital stock of an industrial bank shall not be less than twenty-five thousand dollars.

C. S., s. 257; 1919, c. 225, s. 3.

305. Corporate title. Every corporation incorporated or reorganized pursuant to the provisions of this article shall be known. as an industrial bank, and may use the word "bank" as part of its corporate title.

C. S., s. 258; 1919, c. 225, s. 4.

306. Powers. In addition to the general powers conferred upon corporations formed under the chapter on corporations, every industrial bank shall have the following powers:

1. To loan money on real or personal security and reserve lawful interest in advance upon such loans, and to discount or purchase notes, bills of exchange, acceptances or other choses in action.

2. To sell or offer for sale its secured or unsecured evidences or certificates of indebtedness, or investment, and to receive from investors therein or purchasers thereof payments therefor in installments or otherwise, with or without an allowance of interest upon such payments, whether such evidence or certificates of indebtedness, or of investment be hypothecated for a loan or not, and to enter into contracts in the nature of a pledge or otherwise with such investors or purchasers with regard to said evidences or certificates of indebtedness, or of investment, and no such transaction shall, in any way, be construed to affect the rate of interest on such loans.

3. To charge for a loan made pursuant to this section one dollar for each fifty dollars or fraction thereof loaned, up to and including loans of two hundred and fifty dollars and, for loans in excess of two hundred and fifty dollars, one dollar for each two hundred and fifty dollars excess or fraction thereof, to cover expenses, including any examination or investigation of the character and circumstances of the borrower, comaker, or surety. An additional fee of five dollars may be charged on such loans where same are secured by mortgage on real estate. No charge shall be collected unless a loan shall have been made.

4. To establish branch offices or places of business within the county in which its principal office is located, but not elsewhere. C. S., s. 259; 1919, c. 225, s. 5.

307. Restrictions on powers. No industrial bank shall—

1. Make any loan under the provisions of this article for a longer period than one year from the date thereof.

2. Deposit any of its funds in any banking corporation unless such corporation has been designated as such depository by a vote

of a majority of the directors, or of the executive committee, exclusive of any director who is an officer, director, or trustee of the depository so designated, present at any meeting duly called at which a quorum is in attendance.

C. S., s. 260; 1919, c. 225, s. 7.

308. Limit of loans. The total liabilities to any industrial bank of any person, corporation, company, or firm, for money borrowed, including in the liabilities of the company or firm, the liabilities of the several members thereof, shall at no time exceed ten per cent of the actually paid-up capital and surplus of such industrial bank, but the discount of bona fide bills of exchange or acceptances drawn against actually existing values, and the discount of commercial or business paper actually owned by the person or persons, corporation, company, or firm negotiating the same, shall not be considered money so borrowed.

C. S., s. 261; 1919, c. 225, s. 6.

309. Directors. At least three-fourths of the number of directors of any industrial bank shall be residents of the state of North Carolina.

C. S., s. 262; 1919, c. 225, s. 8.

310. Supervision and examination. Every industrial bank formed under the provisions of this article shall be subject to supervision by the corporation commission and subject to examination in the same manner as is provided in the case of state banks so far as the same may be applicable and not inconsistent with the provisions of this article.

C. S., s. 263; 1919, c. 225, s. 9.

311. Previously organized corporations may qualify. Any corporation heretofore organized under the general corporation law of this state, and authorized by its charter or articles of incorporation to engage in the business described in this article, shall, upon filing notice with the secretary of state and the corporation commission on or before January first, one thousand nine hundred and twenty, be recognized as an industrial bank within the provisions of this article and shall be subject to this article to the same extent as if actually incorporated hereunder.

C. S., s. 264; 1919, c. 225, s. 10.

The Par Clearance Act, Chapter 20, Laws of 1921, having been declared unconstitutional by the Supreme Court of North Carolina in the case of Farmers and Merchants Bank v. Federal Reserve Bank of Richmond, Va., on May 24, 1922, is omitted.