Omaha daily bee., 1909-03-24

80 ~ 49, 800 ~ 49,
any Of the funds Of a hank and no direc-
tor may borrow without first securing the
approval Of the board OF directors At a
meeting, a record Of which shall be made
and kept The violation Of this provision
Is a felony.
No bank shall lean to any single corpora
ton or individual or firm including In
such loan all loans made 20 stockholders,
more than ~ per cent of the paid up
capital and surplus OF such bank. But the
discounting Of bills Of exchange drawn In
good faith against actually existing values,
and the discount OF commercial paper
actually owned by the persons negotiating
the same, shall not be considered as money
borrowed and in no case shall the total LA
bllities Of the several shareholders Of any
bank to such bank exceed 80 per cent OF
the paid in capital and surplus Of such
bank. Punishment for violation, fine Of not
over $500. Does not apply to securities OF
stockholders are liable to double amount
OF their stock. Banks shall keep at all
to inspection of stockholders and creditors.
Violation subject TO penalty OF fin or
Imprisonment.
Guaranty Provisions.
Following is the guaranty provisions
and the sections relating to the winding up
Of banks in the hands of receivers:
Sec. a. For the purpose of providing a
guaranty fund for the protection of de-
%posltors in banks, every corporation en-
OF this state shall be subject TO as
sessment to be levied, kept, collected and
applied as hereinafter provided ,he talk
ing effect OF this act and on the first day
of December. 1909. and on the first day OF
June and December OF each year there-
after, every corporation engaged in banking
under the provisions of this act shall make
and file with the State Banking board a
statement in writing, verified by the oath
Of its president. vice president or cashiTS
showing the average daily deposits In fs
bank for the preceding six months, ex-
,r,,.l-. - W4tkltp nfhnTutqR secured.
And on the first day of the month next
succeeding the date fixed for the making
and filing Of such statement the Sdste
against the capital stock Of each OF said
banking corporations as follows; Within
sixty days after the taking effect of this
act, one-fourth Of l per cent OF the average
daily deposits, as shown by the first state
ment Of such average daily deposits re-
qulred to be made and filed by the proVl-
lions of this section; on the first day of
January, 1910, one-fourth of | per cent OF
the average daily deposits as shown by. the
statement required to be made and filed on
tile first day OF December, 1903 on the first
day of July, 1910, one-fourth of J. per cent
Of the average daily deposits as. shown by
the statement required to be filed on the
first day of June, 1910, and on the first day
Of January 1911, onelfourth OF l per cent
the statement required to be filed on the
first day of December, 1910, and on the llrst
day of July and January of each year there
after one-twentieth Of ! per cent OF the
average daily deposits as shown by the
statement thereof required to be made and
FLED next preceding such assessment. Pro-
vided, however, that any bank commencing
business and receiving deposits less than
six months prior to the date when the state
ment referred to In this section is required
to be made and filed shall show the average
daily deposits for that portion of the said
semi-annual period during which It has
been engaged In business and receiving de-
posits.
Any person making oath to any of the
statements herein required, knowing the
same to be false, shall be deemed guilty
of a felony, and be punished by a fine OF
not less than 800 nor more than $1,000. or be
imprisoned in the p~enitentiary for a term
of not less than one, nor more than nv
years, or both, In the discretion of the
court.
Section 45a. Any bank organized subse-
quent 20 the date when this act takes
effect shall pay into the depositors' guar
anty fund four per cent go of the amount
of the capital stock when such bank opens
for business, which amount shall consti.
tute a credit fund. subject to adjustment
on the basis of said banks average daily
deposits. as shown by the first two semi.
annual statements required by section Al
Of this act. The banking board is author
lied and empowered to make such an ad
tustment of the rates of assessments tC
be paid by any bank which engages in Tho
banking business subsequent to the time
when this act takes effect, as shall require
such bank to contribute to the depositors
guaranty fund q just and equitable sum
and the state banking board shall adjus
assessments VI SuCl bdlh 81 lndl llt ITS
two assessments, together with the credi
fund Of four per cent 4%) of the capita
stock paid in by said bank when 1t begins
business shall at least equal one per CEN
40 OF the average daily deposits Of saic
bank as shown by the two first semi
annual statements required by section 10 oil
per cent go will not be required of new
banks formed by the reorganization or con,
solldation of banks that have previously
compiled with the terms of this act witt
reference to the payment Of assessments.
Kept a. Special Fund.
Section 46. As soon as said assessments
are respectively levied the banking corIor
atoms against which the same are levied
shall be notified of the amount of sucf
assessment levied against them respectively
by the secretary of the State Banking
board and said banking corporations shall
thereupon set apart. keep and maintain II
against them and the amounts thus levied
kept and maintained shall be and consti
tute what shall be designated as a de
p~ositors' guaranty fund, payable to the
uses AMI purposes hereinafter provided.
Section A.. II the depositors' guarantJ
fund shall, from any cause, prior TO July l
1910. be depleted or reduced to an amour
less than one-half Of ! per cent of the aver
age daily deposits, or subsequent to July
], 1910. be depleted or reduced to an amount
less than l per cent of the average daily
deposits, as shown by the last semi
annual statements thereof filed, the State
Banking board shall levy a special assess
ment against the capital stock of the cor,
porations governed by the provisions oil
this act, TO cover such deficiency, which
special assessment shall be based on the
said average daily deposits. and, when re.
quired for the purpose of immediate pay,
ment to depositors. said special assessment
may be for any amount not exceeding
per cent of said average daily deposits ir
any one year.
When Capital Is Impaired.
Section IS. Whenever It shall appear tc
the State Banking board, from any exam
nation or report provided for by this act
that the capital OF any corporation trans,
acting a banking business under this acl
is impaired, or that such corporation II
conducting its business in an unsafe or un-
authorized manner, or is e~ndangering th'
ure of such corporation to make any OF
the reports or statements required by tn,
provisions of this act or to comply Will
the provisions OF said act in all respects
the State Banking board shall Communi
cate the facts to the attorney general. who
shall t%hereupOn cause an application to b'
made TO the district court of the county
where such corporation maintains its banl
and is thus conducting its business, or L
any Judge OF such court, for the appoint
ment OF n suitable person as receiver L
take charge of the business, assets anC
property OF every kind OF said corporation
and to wind up its affairs. Provided. how
ever. that II the judge or judges OF the dis
trict court of the county where such appli
cation should be made be absent therefron
at the time such application is to be made
any judge OF the supreme court may ap