The Bon Homme County independent. [volume] (Tabor, S.D.) 1904-1913, 1909-03-18
PROVISIONS OF
DAKOTAS BANK
INSURANCE LAW
Voluntary, but Absolute Insur-
ance on Deposits at 4 Per
Cent and Under.

Marion, S. D., March 16.-Represen-
tative a Ruschen who q just re-
turned from Pierre, where he served
upon the banking committee Of the
house Of representatives, and in that
capacity framed the bank deposit in
urance bill, which has become q law
of the state in practically the same
form, furnishes The Tribune with a
statement Of the provisions of the law
as follows:
A state association Of incorporated
banks is provided for under the SUI
pervision of h state, to be managed
by a board OF commissioners consist
ing Of the state auditor, treasurer and
public examiner; the organization is
perfected as 500 as 100 or more state
banks, approved by the public exam
liner. and whose aggregate capitalize
ton is at least $1,000, 900, make appli-
cation to the board of commissioners,
accompanied by the membership fees
and n years premium, for member
ship.
be- The membership fee ranges from
800 to $40, according to the size
of h bank, the capitalization being
the basis; the annual premium is one
mill on the banks deposits; and the
board OF commissioners has authority
to reduce the annual one mill levy
whenever the condition of the bank de-
RNSAs AAoo AAAS Ia WIZ pCIIlll a
reduction; the board also has power
to levy special assessments OF not ex-
ceeding four mills in any year to meet
deficiencies. The annual premium is
based on the average daily deposits
Tor the last three months previous to
the payment OF the premium.
What the Law Provides.
AS soon as a bank has perfected
It's membership, and paid its dues, all
It's deposttors are fully insured against
loss to any of their deposits, except
such as draw more han 4 per cent an
nual interest. AS evidence OF a banks
membership a certificate suitable for
framing is furnished by the public ex-
aminer, which must be conspicuously
posted in the bank, and in case a bank
which has become a member of the
association desires to withdraw, 1t
must give its depositors at least 30
days prior notice and also post a
certificate to that effect in a con-
spicuous place in Its bank. Failure to
give such notice is made a felony.
After the association has been per-
fected, n other state or national bank
In good standing may become a menu
per upon the same terms as the orig
inal members. Trust companies are
admitted upon the same terms as
banks, If they transact a deposit busi-
ness.
In the event that a bank which is,a
member Of the association becomes in
solvent, the public examiner certiies
the names Of the depositors and the
amounts due each to the state auditor
who issues warrants upon the proper
FUND for the payment Of the losses;
aftt all ~depositors have been paid
In full out Of the fund, the association
is subrogated to the rights Of the
depositors in the assets of the failed
bank, to the extent Of the losses paid
Of the bank deposit insurance fund.
The law goes into effect on July
1 next and it is understood that quite
a number Of banks have already de-
clared themselves in readiness 10 Join
at the earliest possible moment.
AS h South Dakota plan Of bank
insurance is entirely new and untried
and unlike any other plan in existence,
Is Is quite probable that it may be
tound to be somewhat crude In some
respects, although the general plan ap-
pears to be along sound business lines,
and as secure as any plan could be
that is voluntary in it's nature,
instead of the compulsory system in
vogue in Oklahoma.