The usual purpose for which a savings bank is incorporated or formed is to loan money. It may loan upon real estate1 and take security by way of mortgage upon land in another state. If it have power to discount notes, it may purchase them.2 But frequently these banks are denied the power to discount.3 It may purchase and hold city warrants, if such paper is within the kinds of securities in which the savings bank is permitted to invest.4 But if it loan money on securities, it is doubtless investing its deposits in them.5 It may not purchase real estate unless it is given the power.6 Its subscription to stock in another corporation, where it has no funds to invest, is ultra vires? If it owns stock it may contract with a broker to sell it.8 But it has no power to indulge in purchases of cotton futures.9 By a power to give security for public moneys invested with it, it is not given power to become surety on the bond of a school treasurer.10 It has the implied power to borrow money and make negotiable paper for the loan.11 The contract, while it is insolvent, to resume business by receiving new deposits to be used only in paying checks upon new accounts is beyond its power.12 But it may agree with a depositor to pay interest upon interest left in the bank as new" principal.13

5Herron v. Vance, 17 Ind. 595; Raye v. Savings Inst., 14 Rich. Eq. 54

6 Gorman v. Guardian Sav. Inst, 4 Mo. App. 180.

1 Lebanon Sav. Bank v. Hollen-beck, 29 Minn. 322. See also Tishi-mingo Sav. Inst. v. Buchanan, 60 Miss. 496; Williams v. McKay, 46 N. J. Eq. 25.

2 Pape v. Capitol Bank, 20 Kan. 440. See also Auburn Sav. Bank v. Brinkerhoff, 44 Hun, 142.

3 United Germ. Bank v. Katz, 57 Md. 128.

4 Aull Sav. Bank v. City of Lexington, 74 Mo. 104

6 Duncan v. Maryland Sav. Inst., 10 Gill & J. 299. As to loans, see Paine v. Barnum, 59 How. Pr. 303; Rome Sav. Bank v. Kramer, 32 Hun, 270; Erie Co. Sav. Bank v. Coit, 104 N. Y. 532.

6 See Sec. 122, ante.

7 Franklin Co. v. Lewiston Inst, 68 Me. 43.

8Sistare v. Best 88 N. Y. 527.

9 Jennison v. Citizens' Sav. Bank, 122 N. Y. 135. The contract is immoral. The court should have put its decision on the ground that the contract was wholly illegal. See Sec. 33, ante.