9. Mode Of Organizing State Banks

The requirements of the states for organizing state banks greatly differ, and it would take too much space to describe all that must be done to perfect the organization of a state bank. In general, it may be said that the requirements are easier, though of late years there' has been a marked improvement in the way of organizing them on a sounder basis than formerly. Doubtless the requirements of the national banking system have had the effect of toning up the states to improve their systems.

10. Adoption Of Bylaws

Lastly may be mentioned the preparation and adoption of a code of by-laws for the government of the bank. These are very essential and form a kind of supplemental charter or guide. They are adopted by the shareholders, and contain among other things an article providing how they can be amended. The others relate to the mode of holding annual and special meetings, the election of president and other officers, the bonds they must give before entering upon their duties, the regulation of the transfer of stock, loans, examination of the bank, and other matters. A set of by-laws is usually prepared from a comparison of several codes that have been in operation in other banks. The Controller always furnishes a set to a national bank that is organizing.