Section 1 of this bill is designed to correct an obvious misprint in the present revised statutes, subsections (3) and (4) of section 3 of chapter 29. Section 2 of the bill is intended to make uniform the lending and investment [DOT] powers of all trust companies, regardless of the date of incorporation. The Trust Companies Act was first passed in 1914, and applied as a whole to companies incorporated after the date it came into force. It had only a limited application to companies incorporated earlier, the limitation being set forth in subsections (3) and (4) of section 3, in which two groups of sections, 62 to 88 and 83 to 90 are stated to apply to companies incorporated before 1914. These two groups overlap so that it is impossible to say what is intended as respects section 81. It seems probable that 88 is a misprint for 80. and that section 81 is not made applicable to those companies.
The amendment in section 1 o-f the bill will make it clear that section 81 applies bo all companies.
Section 2 of the bill will make uniform for the future the lending and investment powers of all companies. The reference to the Corn-
panics Act in the section, inserted by section 2 of the bill, is made necessary for the following reasons:
The special acts incorporating the older trust companies contain a provision making the former Companies Clauses Act, or part II of the Companies Act, revised statutes, 1906, chapter 79, applicable to the company incorporated and in the said act or part there was one section (revised statutes, 1906, chapter 79, section 167) declaring that the company should not lend any of its funds to any shareholder. This restriction still applies and is found in section 189 of the present Companies Act, 1934, chapter 33.
By amendments to the Trust Companies Act in 1922 (chapter 51, section 8) and 1924 (chapter 71, section 4) it was provided that all such restrictions on investment powers should be repealed, but unfortunately those sections were not carried into the groups of sections in section 3 of the act declared to apply to the older companies.
The Companies Act, section 146, still provides that the restriction in section 189 shall continue to apply to the older companies unless "expressly varied or excepted by the special act".
There has been an amendment proposed in the other house, in which the word "to" is changed to "by". That is the only change.
Motion agreed to and bill read the second time.'