256 BANKS AND TRUST COMPANIES. [ART. 11

1910, ch. 219, sec. 64 (p. 28).

65. It shall not be lawful for any bank or trust company to loan
to any of its officers, directors, clerks or employees any of the funds of
the institution without a responsible endorser, or sufficient collateral
security, unless the same shall have been authorized, both as to the
amount and security, by a resolution of the board of directors, to be
recorded.

1910, ch. 219, sec. 65 (p. 28).

66. It shall be unlawful for any officer, clerk or agent of any bank
or trust company doing business under this article to certify any check,
draft or order drawn upon the bank or trust company unless the person,
firm or corporation drawing such check, draft or order has on deposit at
the time an amount of money equal to the amount specified in such
check, draft or order. Any check, draft or order so certified by the
duly authorized officer shall be a good and valid obligation against such
bank or trust company.

See art. 13, sec. 203. et seq.

1910, ch. 219. sec. 66 (p. 29).

67. The board of directors of a bank or trust company may declare
a dividend from so much of its net profits, after providing for all
expenses, losses, interest and taxes accrued or due from said bank or
trust company, as they shall deem expedient; but before any such divi-
dend is declared, not less than one-tenth of the net profits for the pre-
ceding half year, or for such period as is covered by the dividend, shall
be carried to a surplus fund, until such surplus fund shall amount to
20 per cent, of the capital stock. Any losses sustained in excess of its
undivided profits may be charged to its surplus account; provided, that
its surplus fund shall thereafter be reimbursed from its net earnings,
and no dividends shall be declared or paid in excess of one-half of its
net earnings, unless or until its surplus fund shall be fully restored
to the amount of 20 per cent, of its capital as hereby required.

1910. ch. 219, sec. 67 (p. 29).

68. No divided shall be paid to any stockholder of a bank or trust
company hereafter incorporated until the capital stock has been fully
paid in, and no dividend shall thereafter be declared or paid by the
directors except out of the net profits properly applicable thereto, and
which shall not in any way impair or diminish the capital; and if any
such shall be paid, every stockholder receiving the same shall be liable
to restore the full amount thereof, unless the capital is subsequently
made good; and if the directors shall pay any dividend before the
capital stock is fully paid in, or shall pay such dividend when the
corporation is insolvent or in danger of insolvency, or not having reason
to believe that there were sufficient net profits properly applicable-
thereto to pay the same without impairing or diminishing the capital,
they shall be jointly and severally liable to the creditors of the corpora-
tion at the time of declaring such dividends to double the amount
thereof.