The Topeka state journal., 1909-03-08
LEGAL.
published in The Topeka State Journal
March s, 1909
SUBSTITUTE For HOUSE BILL NO. sOl


violation thereof and repeating such or
iginal sections Ais, AIS. IA. 461 and 464.
Be it enacted by the Legislature of the
State of Kansas:
Section 1. That section AIS of the Cen
eral Statutes of Kansas of 1901 be amended
SO as to read as follows: Sec. AIS. The
affairs and business of any banking cor
poration doing business under this act
snail be managed and controlled by
poard OF directors, not less than flve nor
more than thirteen in number, who shall
be selected from the stockholders at their
annual meeting, which shall be held on
any day between the 1st and 10th days
of January of each year, and in the man
ner provided in the general corporation
act: A majority of such directors shall be
residents of the county or adjoining coun-
ties to that in which the bank is locat-
ed. The board shall designate one of their
secretary, and may designate one or more
of their number to act as vice-president
among the stockholders a cashier. Such
officers shall hold their offices for the
term term OF one year and until their success
sors are elected and qualified, and be-
fore entering upon the discharge of their
duties shall take and subscribe to an oath
that they will, so far as the duty de-
wolves upon them, diligently and honestly
administer the affairs of such bank, and
will not knowingly or willingly permit to
law, and that they are the owners, in
good faith, and in their own right. of the
number of shares of stock subscribed by
them or standing in their names on the
books of the bank; and no person shall
managing officer of any bank unless he
owns, in his own name and right and in
of stock, which shall not be pledged or
in any way hypothecated; provided, that
any trust company which shall be the
owner OF the required amount of stock
in any bank may. by resolution of its
board of directors, designate one of its
stockholders to represent it, and when so
designated such stockholder shall be
deemed and held to be an owner in good
faith for the purposes of this act Such
n. subscribed hn directors X
ing it and certified by the officer before
whom it is taken. shall be Immediately
transmitted to the bank commissioner and
shall be filed and preserved in his office.
The board of directors shall require the
having the care and handling of the funds
of the bank, to give good and sufficient
bond to cover the term for. which they
designate. The board Of directors shall
hold not less than four regular meetings
each year; such meetings shall be held
between the first and tenth days of jan
uary, April. July and October of each
examination of the books, records, funds
and securities held by the bank shall be
examination shall be recorded in detail
upon the record book of the bank. A GER
ings properly sworn to and duly .veri-
fled by majority of the directors of said
bank shall be forwarded to the bank COM
ing of the same.
Section 2. That Section 41s of the Gen.
eral Statutes of Kansas of 1901 be amend
ed so as to read as follows: Section 41S.
Each bank doing business under this act
shall have on hand at all times in availa BILE
located in cities or towns having less than
5000 population, an amount equal to TWEEN
located in cities having over 5000 popula-
ton, an amount equal to twenty-five per
cent Of their entire deposits, three-fourths
of which may consist of balances due to
them from good solvent banks, none of
the stockholders of which are stockhold-
approved by the Bank Commissioner, and
which are located at commercial centers
and at such other points as the bank
fourth shall consist of actual cash; pro-
vided,. that any bank which is made the
bank or banks shall have on hand at all
times, in the manner herein provided,
twenty-fiye per cent. OF Us deposits. Cash
of the reserve of any bank. Whenever
the available funds in any bank shall be
shall not increase its Investments by maxi
ing any new loans or discounts, otherwise
than by discounting or purchasing bills of
exchange payable at sight, nor make any
dividends of its profits, until the required
proportion between the aggregate amount
of deposits and its lawful money reserve
has been restored; and the bank commits
sioner shall notify any bank whose law
amount above required to be kept on
hand to make good such reserve. and if
so for a period of thirty days after such
notice it shall be deemed to be insol-
vent, and the bank commissioner shall
take possession of same and proceed in
the manner provided in this act relating
to insolvent banks. The bank commissioner
may refuse to consider a part of its re-
serve balances due to any bank from any
other bank or association, any OF the
stockholders of which are stockholders in
fuse or neglect to furnish him with such
information as he may require from time
to time relating to its business with any
bank doing business under this act
Section g. That Section 464 of the Gen
eral Statutes of Kansas of 1901 be amend
ed so as to read as follows: Section 464
That any bank commissioner or deputy
bank commissioner who shall wilfully neg
lect to perform any duty provided for
wilfully permit the violation of any of the
provisions of this act for period of nine
der this act, or who shall knowingly or
wilfully make any false statement con-
cefnng any bane or or VINO 5fa m ne egffcs g9sy
shall be deemed guilty of misdemeanor,
and, upon conviction thereof in any court
of competent jurisdiction, shal pc pun
ished by a fine of not exceeding one thou
sand dollars, or by Imprisonment in the
county Jail not to exceed one year, or by
both such fine and Imprisonment. in the
discretion of the court, and in addition
thereto shall be removed from office by
the Governor.
Section 4. That any officer of any state
bank doing business in this state VINO
may be found by the bank commissioner
to be dishonest. reckless or incompetent
shall be removed from office by the board
of directors of the bank of which he is
an officer, on the written order of the
bank commissioner, and failure on the
part of the board of directors of any state
bank to comply with the order of the
bank commissioner, as provided for in
this section shall cancel its authority to
transact a banking business until such
order is complied with.
Section ). 1t shall be unlawful for any
state bank doing business in this state to
accept deposits continuously for six
months in eScess of ten times it's paid-up
capital and surplus. The violation of this
section by any state bank for period of
thirty days shall cancel its authority to
transact a banking business until the pro-
visions of this section are complied with.
Section 6. That Section IA of Chapter