J. MILLARD TAWES, Governor                        351

a sum not more than one thousand dollars, or by imprisonment not
more than one year, or by both fine and imprisonment. The provi-
sions of this section shall not apply to persons, copartnerships, or
corporations which, on June 1, 1918, are engaged in business in incor-
porated towns or cities of the State of less than ten thousand
inhabitants.]

108A.

All banking institutions shall obtain from prospective borrowers
such written financial information relating to the personal finances of
the borrower as will support any unsecured loan in the amount of
twenty-five hundred ($2,500.00) dollars or more.

108B.

Dual directorships are prohibited in like banking institutions unless
the Commissioner finds that such dual membership is compatible
with the two institutions. DIRECTORSHIP IS IN THE PUBLIC
INTEREST AND NOT DETRIMENTAL TO EITHER OR BOTH
OF THE TWO INSTITUTIONS.

108C.

At any stockholders meeting, special or annual, of any banking
institution the stockholders may elect two additional directorships
which may be left unfilled and to be filled in the discretion of the
directors of the institution during the interval between such stock-
holders meetings.

108D.

Each director of a banking institution shall attend at least fifty per
cent (50%) of the regularly scheduled meetings of the board of direc-
tors of such banking institution DURING HIS TERM OF OFFICE,
and in the event any director does not so attend such director shall
be automatically disqualified to serve as a member of the board FOR
AN ENSUING TERM. The Commissioner shall have the authority
to waive any such disqualification and may do so in his discretion for
due cause properly presented to him by any director so involved.

108E.

The directors of every State banking institution shall have their
institution audited by a firm of certified public accountants at least
once in every five (5) years. However, the Commissioner may, in his
discretion, waive this requirement if he finds the auditing procedures

of any such institution are adequate in their scope.

108F.

No person, copartnership, corporation or any other entity created
under the laws of this or any other State not authorized by its charter
to conduct the business of a banking institution and not subject to the
supervision, control and examination of the Commissioner, and not
required to make reports to him in accordance with the provisions of
this article, shall make use of any sign at the place where such busi-
ness is transacted, having thereon any artificial or corporate name or
other words indicating that such place or office is in the place or office