A trust company may receive deposits and allow them to be checked against, and pay such checks that may be given by depositors to third parties in the same manner as checks are usually paid by banks.

the county institute at its last annual session, and that competition shall be open to every eligible person of that particular class resid- ing in such county. In adopting any such scheme or plan of special work, every member of such county institute or auxiliary organiza- tiori not in arrears for payment of annual membership dues, shall be entitled to one vote; and a plurality of all votes cast shall de- termine the adoption of any proposed scheme." Construing these sections together, there seems to be no doubt but that the money provided to be paid to the county institutes will be available after the law is in force, and may be drawn by chairmen of county institutes where, during the last institute, the fees collected were less than the expenses paid. It is provided by section 5 that institutes may offer prizes and rewards in accordance with a plan or scheme adopted by it at its "last annual session," and, by article 4 of the constitution and by- laws, adopted and in force by each of the farmers' county insti- tutes, it is provided that the annual meeting shall be held "at the time of the annual farmers' institute, scheduled by the state super- intendent, or within one month thereafter." Having fixed the time these institutes were to be held, and the same having been held, and no action having been taken to offer such prizes and rewards, it is my opinion such institutes cannot draw any money from the county treasury to pay 4)r such prizes and rewards. The law requires that a plan be adopted at the "last annual session" held by the institute, and where no plans have been adopted, no part of the public money can be drawn for the purpose of carrying them out. Your constitution and by-laws clearly pro- vide for but one annual meeting in each county. TRUST COMPANIES-BANKING POWERS, ETC. March 16, 1907. Hon. John C. Billheimer, Auditor of State, Indianapolis, Indiana: Dear Sir-In answer to your letter of March 12, 1907, in which you propound the following'questions: 1. Can a trust company receive deposits as a bank receives them and allow them to be checked against, checks being issued by the depositor to third parties and paid to the latter as banks pay checks? 2. To what extent, under section 13 of the statute governing trust companies, is a trust company authorized to do a banking business? 3. Can a trust company sell its draft or issu e drafts to third parties, upon other banks and trust companies in which it has deposits 4. Can a trust company loan its money upon the personal security of borrowers? 5. Can it buy commercial paper? I beg to advise that the original theory of a trust company was, that such company sustained the relation of trustee only to its patrons, but the authority of such corporations has been enlarged by the statutes of the various states which provide for their organ- ization, until they possess many of the powers of banks. They will not, however, be deemed to have such powers except such as are authorized by the statutes creating them. Section 5012 Burns' Annotated Indiana Statutes, Revision 1901, the same being section 13 of the act authorizing the organization of trust companies in this state, provides that, "No such corporation shall engage in any banking * * business, except such as is hereby expressly authorized." Under a proviso in the same section, promissory notes, bonds and other instruments in writing made negotiable by the law mer- chant of this state, when payable at a bank within this state, are likewise made negotiable when made payable at the office of a trust company, and it is also provided that, "It shall not loan its funds, moneys, capital, trust funds or other property whatsoever to any director, officer agent or employe thereof. Nor shall any such director, officer, agent or employe become in any manner indebted to said corporation by means of any overdraft, promissory note, ac- count, endorsement, guarantee or other contract." By this language I think it is plainly implied that such loans to any other class of persons, upon the class of securities therein enumerated, are not prohibited, and especially when this provision is read in connection with the provision in the latter part of the first subdivision of section 5009 of said statute, the same being sec- tion 10 of said act, which is as follows: "And such corporation is authorized to loan money and funds, and secure such loan by mortgage, and shall have power to sell and assign such mortgages and other securities of such corporation, and to convert them into cash or other securities. " Also in conrection with the first part of the sixth subdivision' of said last named section, which reads as follows: "The directors of any such corporation shall have dis- cretionary power to invest all moneys received by it on de- pdsit or in trust in any such personal securities as are not hereinafter expressly prohibited." The provisions above quoted, in my opinion, expressly authorize such companies to loan money on personal securities. The third subdivision of said section last above referred to reads as follows: "To take, accept and hold on deposit, or for safe keep- ing, any and all moneys, bonds, stocks or other securities or personal property whatsoever, which any state, county, city or town officer, or any officer in any railroad or other corporation, public or private, or private person, shall be authorized or required by law or otherwise to deposit in a bank or other safe deposit." So much of said third subdivision as applies to transactions with individual persons reads as follows: "To take, accept and hold on deposit or for safe keep- ing, any and all moneys "1 0 41 which any * ' " pri- vate person, shall be authorized * to deposit in a bank or other safe deposit." By this third subdivision of said section it is perfectly plain that such corporations have the power to accept deposits from all classes of depositors, either to hold on deposit or for safe keeping. The word "deposit" is thus defined: "Money on deposit means, ex vi termini, money placed where the owner can command it at any time." (Curtis v. Leavitt, 15 N. Y. 9, 205; quoted in Long v. Straus, 107 Ind. 94, 97.) A deposit is that "which is placed any- where for safe keeping, especially a sum of money left with a bank or broker, subject to order." (Ramsey v. Whitbeck, 81 ll. App. 210, 218.) In State v. Franklin Co. Savings Bank and Trust Co.. 74 Vt. 246, a trust company was authorized by statute "to receive moneys on deposit or in trust at such rate of interest or on such terms as may be agreed upon." It was held, page 255: "The language used is broad enough to permit the receipt of money on deposit upon terms as to interest from the legal rate down to without interest; and upon such terms regard- ing payment as the parties may expressly or impliedly agree. The interest may be at a special rate, and the deposit sub- ject to drafts or checks drawn against it, payable at sight, or the deposit may be without interest, and payable in drafts or cheeks in the same way. In fact, generally, when a bank receives ordinary deposits, it impliedly contracts with the depositor to discharge the indebtedness by honoring such checks as he may draw against it. 0 * * Clearly, the receiving of commercial deposits, as well as deposits for sav- ings and investment, is within the defendant's corporate powers. The money received goes into the general funds of the bank, and the relation of debtor and creditor is created alike in both classes." The term ''authorized,' as used in section 10. supra, means 'permitted" or "warranted" (Webster's Dictionary) ; and the phrase "hold on deposit" has a definite meaning among bankers, which includes payment by check on the order of the depositor. The section above quoted, therefore. empowers trust companies to hold on deposit and pay out on check, moneys which any private person, etc., is permitted to deposit in a bank; and this would in- clude the depositor's own funds. Section 5015c of said statute reads as follows: "Every corporation organized under the act described by its title in the preceding section, which. in the conduct of its business, may accept savings deposits, is hereby author- ized and required to accept and hold such deposits under the same regulations as to the repayment thereof as are now prescribed by the law of this state for the repayment of de- posits in savings banks." It will be observed from the language of this statute that where savings deposits are accepted by such a corporation it is authorized to accept and hold same under the same regulation as to repay- ment thereof as is prescribed by the law of this state for the repay- ment of deposits in savings banks. The first part of section 2956, same statute, with reference to the deposits in savings banks, reads as follows: ''The sums so deposited shall be repaid to each depositor or his legal or authorized representatives. when required by him or by them, but at such times, and with such dividends from profits, and under such regulations as the board of trustees may prescribe." From this language it is apparent that such deposits may or may not be checked against by the depositor, depending upon the regu- lations of the board of trustees with reference thereto. There is nothing in the act in this state authorizing the organi- zation of trust companies which requires such trust companies to keep funds received by them on deposit in any particular place, and such trust companies in my opinion have the right to deposit funds received by them in bank, and such trust companies having the right to deposit their funds in bank, would therefore have the right to check against their deposits in the bank. If a depositor should draw a check upon his account with a trust company, such trust company in my opinion would have the right to pay such check by issuing its own check or draft to such depositor against its deposit in a bank, and to the extent that the transaction amounts to the issuing of a check or draft by a trust company against its account on deposit in a bank, I think trust companies arc author- ized to issue drafts. Under the first part of said sixth subdivision of said section 5009 of said statute above quoted, which authorizes the directors of such a corporation to invest all moneys received by it on deposit or in trust, in any personal securities that are not expressly prohibited. I think a trust company is authorized to invest its moneys and funds on deposit, or hold in trust any commercial paper, such as promissory notes and bills of exchange. In American and English Encyc. of Law, 2d ed., Vol. 25, page 180, under the subtitle of "Security," the word "security" is de- fined in these words: "Security is that which renders a matter secure; an instrument which renders certain the performance of a contract. The term in its broadest sense embraces bonds, certifi- cates of stock, promissory notes, and bills of exchange." It is in this latter sense in my opinion that the words "personal securi- ties" are used in said sixth subdivision. In Adjudged Words and Phrases, by Winfield, commercial paper is defined as promissory notes or bills of exchange. 1. It is therefore my opinion that a trust company may receive deposits and allow them to be checked against, and pay such checks that may be given by depositors to third parties in the same man- ner as checks are usually paid by banks. 2. I do not think that trust companies have any other banking powers than those above indicated. 3. A trust company may issue drafts to third parties to the extent that it amounts to issuing its check upon a bank holding a deposit of such trust company, in payment of a check drawn on the account of a depositor in such trust company. 4. A trust company may loan its moneys and funds on per- sonal securities, and buy commercial paper, as above indicated. LIBRARIES-APPOINTMENT OF LIBRARY BOARD IN TOWN. March 16, 1907. Hon. Chalmers Hadley, Secretary and State Organizer of Public Library Commission, Indianapolis, Indiana: Dear Sir-You have submitted to me the following statement of facts and question based thereon: "A city council has passed the following resolution: 'Resolved by the common council of the cit of Kendallville, That in order to establish, increase and maintain a public library in the city of Kendallville, Ind., open to and for the use and benefit of all the inhabitants thereof, that there shall be levied a tax annually of not to exceed one mill on each dollar of taxable property assessed for taxation in the city of Kendallville, which tax shall be placed on the tax dupli- cate and collected in the same manner as other taxes are levied and collected.' "Does the passage of this resolution make the levy so that a library board can be appointed as provided in section 3 of acts 1901, page 81, Acts 1903, page 301, and proceed with its duties?" The statute authorizing the establishment of public libraries and the appointment of public library boards reads in part as fol- lows, acts 1903, pages 301 and 302: "The common council of any city or the town board of any incorporated town within this state desiring to estab- lish, increase and maintain a public library in such city or town, open to and for the use and benefit of all the inhab- itants thereof, may levy a tax annually of not to exceed one mill on each dollar of all the taxable property assessed for taxation in such city or town, as shown by the tax duplicate