The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-03-11

of this act and may continue to transact
a loan and discount business under its
charter; Provided, that nothing in this
section shall prevent the bank commits.
sioner from making an exam1nat ton OF
any such bank for the purpose of determ-
ming that all its liabilities have been paid
Section 81. A bank shall be deemed TO
be insolvent-first, when the actual cash
market value of its assets is insufficient
to pay its liabilities; second, when 1t is
unable to meet the demands of its cred
itors in the usual and customary manner NAM ;1.
reserve as required by law.
Section 80. The directors or owners or
any bank doing business under this act
may declare dividends of so much of the
net profits of their bank as they shall
judge expedient; but each bank shall be
fore the declaration of a dividend. carry
one-tenth part of its net profits since the
last preceding dividend TO Its surplus Is
fund, until the same shall amount to 90
per cent of its capital stock.
Section 80. Any losses sustained by any
bank in excess of its undivided profits
may be charged to it's surplus account:
Provided, that its surplus fund shall
ingS, and dividend shall be declared or
paid by any such bank in excess of one
half of its net earnings until its surplus
fund shall be fully restored to its former
amount
thereof shall, during the time it shall
continue its banking operations. with
draw or permit to be Withdrawn, either
in form of dividends otherwise, any
portion of its capital. If losses have at
any time been sustained by such bank
equal to or exceeding it's undivided profits
then on hand no dividend shall be made,
and no dividend shall be declared by any
bank while it continues its banking bust
ness to any amount greater than its net
profits on hand. deductins therefrom its
losses. to be ascertained by a careful es-
innate of the actual cash value of all its
assets at the time of making such divi-
dend; the present worth of all maturing
paper shall be estimated a the usual dis
count rate of the bank. Nothing in this
section shall prevent the reduction of the
capital stock of any bank in the manner
prescribed herein.
Section So. Every banker. officer. en-
ploye, director, or agent of any bank who
shall neglect to perform any duty re-
CURED by this act, or who shall fail to
conform to any lawful requirement made
by the bank commissioner. shall be deem
ed guilty of misdemeanor. and, upon
conviction thereof, shall be punished by a
fine not to exceed one thousand dollars,
or by Imprisonment in the county Jail not
to exceed one year, or by both such fine
and Imprisonment.
Section Sc. Any Individual firm or cor
poration who shall receive money on de-
to check. shall be considered as doing a
banking business and shall be a1nenable
to all the provisions of this act: Pro-
vided that pronissory notes issued for
money received on deposit shall be held
to be certificates OF deposit for the pur-
poses of this act.
Section 81. 1t shall be unlawful for any
officer clerk or agent of any bank doing
business under this act to certify any
check, draft or order drawn upon the
bank unless the person. firm or corpora
ton, drawing such check. draft or order
such check, draft or order is certified. an
amount of money equal to the amount
Any check, draft or order certified by
the duly authorized officer shall be a good
but any officer, clerk or agent of any
bank violating the provisions of this sec
meanor, and, upon conviction. shall be
punished as provided in section 80, of this
Section 3s. Every president, director.
cashier, teller. clerk, officer, or agent of
Wilfully misapplies any OF the moneys,
funds, securities or credits of the bank;
cate of deposit, draws any draft or bill
of exchange, makes any acceptance, as
or who makes use of the name of the
bank in any manner with intent in either
case to fnjure or defraud the bank or any
individual, person. company, or corpora
ton, to deceive any officer of the bank
affairs of the bank; and any person who
with like intent aids or abets any officer.
clerk or agent in any violation of this
section shall be deemed guilty of a mis-
demeanor and upon conviction thereof
shall be punished as provided in section
Section 49, Any bank officer who shall
pay out or permit to be paid out. the
i funds of any bank upon the check. order
or draft of any individual, firm, COM
has not on deposit with such bank a
sum equal to such check. order or draft,
| shall be personally liable to such bank
for the amount so paid.
Section 40: No bank, banker or bank
officer shall give preference to any de-
| positor creditor by pledging the as
sets of the bank as collateral security;
| Provided that any bank may borrow
coed in amount fifty per cent of its paid
up capital and may pledge assets OF the
| excess of the amount borrowed coll
lateral tb sfcUrbity Jherefor ProDidsd fur
a bank is borrowing habitually for the
purpose OF reloa.nlng, tne pank cornn1l Is
| such borrowed money. Nothing herein
! shall prevent any bank from rediscount-
irler in a nd INV of ifC
| negotiable notes. 1t shall be unlawful for
any bank to issue its certificate of de-
post for the purpose of borrowing money
| Section Al. The total investments of any
| bank doing business under this act, other
| coed four times it's capital and surplus
actually paid in: Provided, that United
! part of such investments. The bank
COMMISSIONER shall have power to
| made outside the state of Kansas.
Section ~. ANY individual or firm doing
nate a name for such bank: and all
| property, real or personal owned by such
bank. and not in the name of the individ-
| ual or firm; all of the assets of any pri-
ment or execution by any creditor of such
| individual or firm until all liabilities of
! No private banker shall use any of the
| funds OF his bank for his private business
and the note Of the owner or owners of
| any private bank shall not be considered
! or accepted as part of its assets.
| Section 43- The capital stock of any
| bank doing business under this act ma V
| be reduced at any time by resolution
| adopted by a vote of its stockholders rep
| resenting three-fourths of the capital of
| such bank. at any regular meeting, at
| a special meeting held for that purpose,
| OF which all stockholders shall have no
| tice as provided in the bylaws, subject
| to the approval of the bank commission
| er. When the bank commissioner has APP
proved of any such reduction. a certifi-
| cate signed by the president and cashier
| of the bank setting forth the reduction
| of its capital and the names and amount
| of stock held by its stockholders shall be
duplicate COPY Snail be forwarded to I1iI tb d
| bank commissioner. Whenever the capt.
| tai of any bank shall be reduced as pro-
/ er or holder of any stock certificate shall
| surrender same for cancellation. and shall