and in every case where such child is brought to any public institution to be entered as a pupil, the price of return transportation to the home of the child must be deposited with the executive officer of the said institution or guaranteed to him by some responsible party before the institution is obligated to receive the child for the institution.

Approved March 26, 1918.

CHAPTER 47.

AN ACT relating to Banks and Banking, being an Act to amend Section 583, Kentucky Statutes, Carroll's Edition, 1915, entitled "Indebtedness of person to-highest amount permitted."

Be it enacted by the General Assembly of the Commonwealth of Kentucky:

That Section 583 of the Kentucky Statutes, compiled and edited by John D. Carroll, and issued in the year one thousand nine hundred and fifteen, be and the same is hereby amended and re-enacted by adding to said section the following language:

"Provided, that the discount of bills of exchange drawn against actually existing value and the purchase or discounting of commercial or business paper actually owned by the person negotiating the same shall not be considered as borrowed money within the meaning of this section in fixing the limit of indebtedness of any person, firm or corporation, selling or negotiating said paper to the bank." So that said section when amended and re-enacted shall read as follows:

"No bank shall permit any of its stockholders, or any person, company or firm, including in the liability of the company or firm the liability of the individual members thereof, directly or indirectly, to become indebted to it in a sum exceeding twenty per

cent. of its capital stock actually paid in, and its actual amount of surplus, unless such borrower pledge with it good collateral security, or execute to it a mortgage upon real or personal estate, which at the time is of more than the cash value of such loan or indebtedness above all other incumbrances; and if the borrower is a director or officer of such bank, he shall not be permitted to become indebted to it in excess of ten per cent. of its paid-up capital stock, without securing the excess by the mortgage or pledge of real or personal property double in value the amount of such excess; and in no event shall the indebtedness of any person, company or firm, including in the liability of the company or firm the liability of the individual members thereof, exceed thirty per cent., of its paid-up capital and actual surplus: Provided, that the discount of bills of exchange drawn against actually existing value and the purchase or discounting of commercial or business paper actually owned by the person negotiating the same shall not be considered as borrowed. money within the meaning of this section in fixing the limit of indebtedness of any person, firm or corporation, selling or negotiating said paper to the bank.

Approved March 26, 1918

CHAPTER 48.

AN ACT to amend Subsection 8 of Chapter 9a Kentucky Statutes, being Section 165 Kentucky Statutes (Carroll's, 1915), relating to the Banking Department by providing that the Banking Commissioner may accept examinations made by the Federal Reserve authorities in lieu of his official examinations and authorizing the Banking Commissioner to furnish to the Federal Reserve agent of the district in which a member bank may be situated copies of examinations and reports of member banks.

Be it enacted by the General Assembly of the Commonwealth of Kentucky:

§ 1. That sub-section 8 of section 165a, Kentucky Statutes (Carroll, 1915), being chapter 9a of said Statutes, relating to the Banking Department of this Commonwealth, be, and the same hereby is amended and re-enacted to read as follows:

"8. Examination of Banks-Oath May Be Administered-Information Secret.-Every bank organized and doing business under the laws of this State shall be subject to the inspection of the Banking Commissioner. Such commissioner shall personally or by the deputy commissioner or a State bank examiner, visit each bank and examine the cash, bills, collateral, securities, other assets, books of accounts, and all other papers and books of such bank. On such examination, inquiry shall be made as to the condition and resources of the corporation, the mode of conducting and managing its affairs, the action of its directors, the investment and dis position of its funds, the safety and prudence of its management, the security afforded to those by whom its engagements are held, and whether the requirements of its charter and of the laws of this State have been complied with in the administration of its affairs, and as to such other matters as the commissioner may deem necessary. Such examination shall be made of every bank at least once every year, but not to exceed twice in any one year, unless it shall appear from examination or from the report or reports of a bank that such bank has failed to comply with the laws relating to banks, or a regulation of the Department of Banking.

The Banking Commissioner, Deputy Banking Commissioner, and every State bank examiner, shall

have the power to administer an oath to any person whose testimony may be required in the examination of any bank, and to compel the appearance of any such person for the purpose of such examination, which shall be made in the presence of one or more of the officers of the corporation being examined. No notice of the intended examination shall be given to the bank to be examined until the examining officer is prepared to proceed immediately with the examination. No officer or employe of the Banking Department nor the examiner conducting any examination, shall impart any information obtained by him during such examination, except so far as may be necessary in the performance of his official duty as provided by law. Provided, that any bank or trust company or combined bank and trust company which shall become a member of a Federal Reserve Bank created and organized under the Act of Congress known as the Federal Reserve Act, shall be subject to the examination required under the term of the said Federal Reserve Act, and the Banking Commissioner may, in his discretion, accept examinations made by the Federal Reserve authorities in lieu of examinations made under the laws of this Commonwealth; and the Banking Commissioner is further authorized and directed to furnish to the Federal Reserve Agent of the district in which such member bank may be situated, copies of reports and examinations made. of such member bank."

§ 2. It appearing that certain banking institutions in this Commonwealth are desirous of making applications for membership in the Federal Reserve System and that it is necessary for the prompt consideration of such applications that this act be passed, and that the exigencies in the financial status

of the country make it desirable that such membership may not be delayed unduly an emergency is hereby declared to exist and this act shall take effect from and after its passage and approval as required by law.

Approved March 26, 1918.

CHAPTER 49.

AN ACT for the benefit of the Kentucky Normal and Industrial Institute for Colored Persons.

Whereas, the house occupied by the President of the Kentucky Normal and Industrial Institute for Colored Persons is not a comfortable, safe or suitable house for a residence, and,

Whereas a new barn and certain minor improvements on the premises of said institution are necessary and urgently needed, and,

Whereas, the present maintenance fund of said institution is not sufficient to pay its current running expenses at the present high cost of living; therefore,

Be it enacted by the General Assembly of the Commonwealth of Kentucky:

(1.) That the sum of seven thousand dollars ($7,000) is hereby appropriated out of any money in the treasury not otherwise appropriated to be used for the purpose of building a suitable house as a residence for the President of the Kentucky Normal and Industrial Institute for Colored Persons and for the purpose of building a suitable barn and making other necessary improvements on the premises of said institution.

(2.) For the purpose of providing sufficient annual maintenance to provide for the growth and development of the agricultural industrial work of said institution, the sum of eight thousand dollars ($8,000) is hereby appropriated for this fiscal year and for each succeeding year.