The Topeka state journal., 1909-03-10

Kansas, creating the bank depositors'
guaranty fund of the State of Kansas.
penalties for the violation thereof.
Be it enacted by the Legislature of the
State Of Kansas:
Section l. Any incorporated state bank
doing business in this state under the
general banking laws of Kansas, haylng
a paidup and unimpaired surplus Iuna
equal to ten 90 per cent. of its capltai,
and any bank which may after the pas
mess in this state, and which shall have
been actively engaged in the business Oh
ing such surplus fund, is hereby author
ized and empowered to participate IN the
assessments and BENEFITS and TO De gov
erncd by the regulations of the bank de
positOrs' guaranty fund of the state OF
kansas hereinafter provided for; provid-
ed that the limitation of one year shall
not prevent such participation by q new
bank at any time in any city or town
IN which ali hanks shall have neglected
or failed to become guaranteed banks un-
der the provisions OF this act, for a per
iod of six months after the taking effect
OF this act.
Before any bank shall become a guar
auteed bank within the meaning Of this
act, resolution of its board of diree-
tors authorized by its stockholders, duly
certified by its president and secretary,
asking therefor, in form to be provided
by the bank commissioner shall be meg
with said bank commissioner VINO shaH
upon the filing of such resolution make
rigid examination of the affairs of sueh
bank, and if it is found to be solvent, 70
be properly managed and conducting It's
business in strict accordance with the
phank1ipg ha1 1 lay, he shall; after @ the nank
urer bonds or money, as hereinafter pro
Vided, issue to such bank a certificate
stating IN substance that said pank mas
complied with the provisions of this act,
and that its depositors are guaranteed
by the bank depOSitOrS guaranty fund of
the state of Kansas, as herein provid-
Section > Before receiving such certifi-
cate from the bank commissioner each
bank entitled to the same according to
section l of this act shall, as an evidence
times maintain with the state treasurer
tsub5ect to the order of the bank com
missioner. when cOunteTsigned by the
auditor of state) United States bonds,
Kansas state bonds or the bonds of any
education city within the state of Kan
sas, to the amount of five hundred dol
sand dollars (S1O0O00.00) or fraction there
of of its average deposits eligible to guar
shown by its last four published state
ments: provided, that each bank shall so
lars (s50000). and the state treasurer shall
issue his receipt therefor in triplicate. one
to the bank. one to the auditor of staSe
and one to the bank commissioner SUCH
bonds only shall be accepted as the
school-fund commissioners of the state of
hansaS are permitted to buy, and shall
bear the certificate of the attorney gen
eral of the state of Kansas stating that
in his opinion said bonds have been legal
ly issued. Said bonds, or cash in lieu
thereof, shall not be charged out of the
assets of the bank, except as hereinafter
sets under heading guaranty fund with
bank shall default in payment of assess
ments hereinafter provided for. In lieu
of bonds, the bank at its option may de-
post money, which deposit shall be ex-
changeable for acceptable bonds when
The bank elects to make the substitution.
pay in cash an amount equal to one
twentieth of one per cent. of its average
deposits ellgibie to guaranty less its cap
credited to the bank depositors guaran-
lect to the order of the bank commits
sioner, and the state treasurer shall issue
his receipt therefor in triplicate, one to
the bank. one to the auditor of state and
one TO the bank commissioner; provided, |
that the minimum assessment to be re-
quired from any bank shall be twenty
dollars; provided further, that any bank
seeking to participate in the assessments
annual assessment for the year 1910 shall
have been made, shall be assessed an
amount approximately equal to its pro-
portionate share of the money then in the
losses shall have been deducted the
termined by the bank commissioner. The
last above mentioned assessment. how
formed by the reorganization or consol- |
idation of banks which have previously
Upon the deposit and acceptance of such |
bonds Cor money! and the payment of
such deposits of said bank as are speci- |
fled in this act shall be guaranteed as
herein provided bank entitled
its certificate.
Section g. The bank commissioner shall.
during the month of January of each |
year, make assessments of one-twentieth
of one per cent. of the average guar
anteed deposits, less capital and surplus
aDy case to be twenty dolIarsN until tba
cash fund accumulated and placed to the
credit of the bank depositeTs guaranty
fund shall be apprOXim ately five hundred |
thousand dollars over and above the cash
deposited in lieu of bonds. when he shall
n fiT1TTa GJIH H1fc i
such fund become depleted, the bank com
missioner shall make such additional as |
become necessary to maintain the same: |
provided. that not more than five such |
cent each shall be made in any one cal |
endar year. The treasurer of the state of |
banks as provided by law gov
erning other state funds. subject to the
order of the bank commissioner to be |
eeuntersigned by the auditor of state for |
the payment of depositors of failed guar
aRteed banks, as hereinafter provided |
The state treasurer shall credit this fund 1
quarterly with its proportionate share of /
interest received from state funds. COM |
puted at the minimum rate of interest |
provided by law. upon the average daily |
balance of said fund.
Section 4. When any bank shall be |
missioner. he shall take charge of such /
bank. provided by law. and proceed to |
earliest moment. issue to each depositor
a certificate upon proof of claim. bear |
Ing. SIX per cent interest per annunl upon 1
which dividends shall be entered when /
paid. except where contract rate exists |
On the deposit, in which case the certi- |
ficate shall bear interest at the contract |
rate: notice of the amount of each divi- |
dend to be paid creditors and the date /
When such payment is to be made shall /
be published in two consecutive issues of |
a paper of general circulation in the coun- |
ty or city in which such failed bank is /
located and a corresponding notice posted I
on the door of the receivers office and |
Interest shall cease on each dividend on
the day named in such notice. The bank
shall likewise publish a no.
lice of the date upon which he will make
navmeuts of any balance due on such