The Topeka state journal., 1908-01-21

porate obligations; provided, that this
section shall not limit or restrict the
injured party from invoking any other
remedy provided in the ordinary
course of law; and provided that any
securities or mortgages deposited with
the treasurer of the state may be ex-
changed from time to time by others
of equal value, whenever there is no
attachment or execution levied against
them.
Sec g. That any deposit insurance
company organized under this act shall
have power to issue policies or fnsur-
ance to banks and trust companies In
the state of Kansas upon such terms
as the bylaws of the deposit insurance
company may provide, conditioned that
the company will promptly pay any and
all shortages of cash due depoSitOrS or
general creditors which for any cause
such bank or trust company is unable
to pay when due or on demand, upon
payment of which the deposit insur-
ance company shall be subrogated to
all the rights of such depositors or gen.
eral creditors against such bank OF
trust company, and the deposit insur-
ance company shall be entitled to re-
imburse itself as far as the assets and
property and credits of such bank or
trust company may permit
Sec. TO- That any deposit insurance
company having issued policy of IN
surance on the deposits of any bank or
trust company may at any time exam
inc the business and affairs Of the as
Sured, and whenever such deposit in
surance company finds that any bank
or trust company is violating any state
or federal law, or that its capital Is
impaired or that its assets or any part
of them are of doubtful value, it may
by letter or wire notify the state bank
commissioner or national comptroller
of the currency, as may be proper, OF
such fact, and may after 80 days from
giving such notice cancel its policy by
surrendering the unearned premium
provided, that if such assured bank OF
trust company shall fail or be COM
PEELED to suspend business or be taken
charge of by any federal or state OFF,
Ger or the officer of any federal or state
court within 80 days from the giving
of such notice by such deposit insurance
company, then and in any such case
such insurance policy shall not be can
celed but shall remain in force for the
full guaranty and insurance of the de-
posits of the assured.
Sec. IL. That the state charter board
is hereby granted full and complete in
quisitorial power and power of vista
ton over all deposit Insurance COM
panies which may be created under this
act and over the books, assets, proper
ty and liabilities of such companies,
and whenever the state charter board
are of opinion that any of the invest
ments of such companies are unsafe,
or that any of the methods or practices
of any such company are not consist
ent with safe and conservative business
policy, the said board may direct that
such investments shall be disposed or
or that such methods or practices shall
be corrected or abandoned; and when
ever the capital of any such company
is impaired, or whenever 1t fails for ten
DAYS to keep any of it's corporate oblf-
cations, the attorney general shall com
mence an action in quo warranto Tor
the dissolution of such corporation and
to wind up it's affairs; or if the attor-
ney general believes some less drastic
measure will rectify the objections or
the state charter board to the methods,
pany, he may resort to any court OF
competent jurisdiction for any of the
usual remedies provided by law
Sec. II. That any deposit insurance
company doing business under this act
is authorized to call for positively sworn
statements from any officers of any
bank or trust company assured by 1t,
and any person who makes wilfully
false statement under oath in reference
to the business of the assured shall be
guilty of perjury and so prosecuted and
punished according to the criminal laws
of the state of Kansas.
Sec. 13. That the state charter
board is authorized to call for posi-
lively sworn statements from any Of
fcer of any deposit insurance COM
pany created and doing business by
virtue of this act, and any person who
makes wilfully false statement under
oath in reference to the business of
such deposit insurance company shall
be guilty of perjury and so prosecuted
and punished according to the crimi-
nal laws of the state of Kansas.
Sec. IA. That all other regulations
for the creation, managem ent, con-
duct and control of deposit insurance
companies and defining their powers,
duties and liabilities not herein pro-
vided for and not inconsistent here
with, shall be governed by chapter %
of the general statutes of Kansas of
1901, relating to corporations, and by
the acts supplemental thereto and in
amendment thereof.
Sec. Is. That this act shall take
effect and be in force from and af-
ter it's publication in the official state
paper.