Omaha daily bee., 1909-04-25


during the continuance of such violation
is provided. and such violation Is to be
cause for the appointment Of a receiver TO
wind up such banking business.
Where the appointment Of receiver Is
deemed advisable. the banking board com
municates the facts to tho attorney gen
eral. who will cause application to be made
to the court of the district in which the
delinquent bank is located or to a judge
of the supreme court; but district courts
control the administration of the receiver
ships. 1t is sufficient to show the truth
Of any Of the facts enumerated in the law
as cause for appointment of a receiver.
Under the supervision of the banking
board, the directors may restore the capital
and credit of the bank and be allowed to
resume. However, If the receiver is or
dered to proceed. the court will fixe a
time for filing claims, not mere than sixty
days from date of order. A receiver must
make at least one monthly report to the
board.
Creating n Guaranty Fund.
The law goes about the creation of a de-
p~ositors' guaranty fund in this manner:
Within thirty days after it becomes eff
~fective, and on the list of December, 1900,
and every first of June and December
thereafter. the banks shall make a state
ment showing their average daily deposits
for the preceding six months, exclusive of
public moneys otherwise secured; then:
on the first day Of the month next sue
ceeding the date for making and filing
such statement, the board will levy as
sessments against the capital stock of
each bank as follows:
Within sixty days of the taking effect of
the act, one-fourth of 1 per cent of the
average daily deposits as shown by the
first statement filed;
On the LIST day of January, 1910, one
fourth of l per cent of average daily de-
posits as shown by statement filed list
day of December, 1909;
on the LIST day of July, 1910, one-fofth
of l per cent of average daily deposits
shown by statement filed LIST day of June,
1910;
On the list day of January, 1911, one
fourth of l per cent of average daily de-
posits as shown by statement filed De-
cember l, 1910;
And on the LIST day of July and January
of each year thereafter one-twentieth of
l per cent of average daily deposits as
shown by last statement filed.
Thus IL per cent of the average deposits
Of state banks will be paid into the de-
p~ositors' guaranty fund by January /,
1912.
The fund SO created Is to be held by the
various banks, as their proportion may
be, and is to be payable to the banking
board on demand. Banks organized SUISSE
quent to the taking effect of the act are
to pay in 4 per cent of capital stock, SUBJ
ect to adjustment later on average daily
deposit basis.
Procedure in Liquidation.
In case of a bank failure, or closing of
doors for any cause, the receiver will pro-
coed to collect all the money possible, and
on order of the court may sell or com
pound all bad or doubtful debts, except the
liability of stockholders, officers or direc-
tors; and it is provided that a majority
of the latter shall reside in the county
where the bank is situated, or in an ad-
joining county.
Claims for deposits and claims of hold
ers of exchange are to have priority over
all other claims, except federal, state,
county or municipal taxes, and will con-
stitute a first lien after said taxes; and
shall be paid Immediately out of the avail
able cash in the hands of the receiver.
If cash is insufficient, the court shall de-
termine the amount necessary to supply
the deficiency, and certify the same to
the banking board, which shall draw on
the guaranty fund, by drafts pro-rated
among the solvent banks holding the fund,
and send the amount to the receiver.
Should the guaranty fund be reduced or
depleted from any cause prior to July /,
1910. to an amount less than one-half CT
1 per cent of average daily deposits, or
subsequent to July l, 1910. be depleted. or
reduced to an amount less than / per cent
of the average daily deposits, as shown by
last semi-annual statement. the banking
board shall levy a special assessment on
the capital stock of the banks. to be based
on the average daily deposits. When re-
quired for the purpose of immediate pay
ment of depositors, such special assess
ment may be for any amounty not ex-
ceeding l per cent of the average deposits
in any one year.