(a) Board--The business and affairs of a private bank may be managed by a board of directors. The partnership agreement or the by-laws of such private bank may grant the board of directors such powers, prescribe such procedures, and impose such restrictions and limitations upon the board as the partners in the private bank may agree upon with respect to all matters that are dealt with as to incorporated institutions by chapter 14 of the act¹ or which are normally provided for by the articles or by-laws of an incorporated institution.

(b) Officers--A private bank may have such officers, who shall have such functions and authority, as may be specified in its partnership agreement or by-laws.

(c) Bonds--Each officer and employe of a private bank and any director who is authorized to handle money or negotiable assets shall be bonded, and the private bank shall pay the cost of such bond. The form, amount and surety of such bonds shall be such as is approved by the governing body of the private bank but the department may require an additional amount or new or additional surety.

(d) Responsibility of directors and officers--Directors and officers of a private bank shall discharge the duties of their respective positions in good faith and with that diligence, care and skill which ordinarily prudent men would exercise under similar circumstances in like positions. The directors and officers shall, at least once each year, have made, by certified public accountants selected by the institution and satisfactory to the department, an audit of the books and affairs of the institution. The department may by regulation establish minimum standards for audits and reports under this subsection.