Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1909-03-18
nnIr nANK GuARANTY Jaw.

The governor has signed the bank
guaranty deposit law passed BY the
legislature and It takes effect June
so. The law Is not like oklahoma's,
compulsory, but 1t 10 patterned on II
in many particulars. It's provisions
are:
ANY state bank having q paid up
and unimpiared surplus equal to one
tenth its capital may participate IN
the guaranty fund on a vote OF Its
directors who must be authorized
by a vote Of the stockholders, sucn
hank must have been in business at
least one year.
Before receiving its certificate as
guaranteed bank 1t must deposit with
the state, treasurer UNITED states
bonds, Kansas bonds Of the bonds Of
any county, township, school dist
riot board of education or city" In
Kansas, to the amount Of $500 FOR
every $4,000 of its average depos-
ia as shown by its last four public
statements; every bank must put up
At least $500 "as an evidence OF
0ood faith" These bonds can be
replaced by others or by cash at the
banks option. In addition each bank
shall pay in cash one twentieth Of
one per cent of its average deposits
less its capital and surplus, the mini
mum being $40.
In January Of each year the bank
commissioner shall make another as
sessment like the last one Zone twen-
tieth Of one per cent?, and add It to
the fund until this fund is 100000,
when assessments shall cease until
depleted. If the fund is depieteo
more assessments may be made but
not more than five In one year.
When a bank fails the bank COM
missioner shall take charge and IS
sue to every depositer certificate
nearing six per cent for his claim
unless the deposit was drawing a
lower rate of interest. On these GER
tificates the dividends shall be paid
and If the assets do not pay out the
balances shall be paid from the de-
posters guaranty fund. II the mon
ey in the fund in insufficient the de-
positors shall be paid pro rata and
what remains shall be paid after
more assessments become available
Ian the claims Of the depositors re-
Iyert to the banking department until
the full amount shall have been re-
Iimbursed If possible with three pei
cent interest.
In case no bank in a town IS IN
the guaranty fund new bank need
not wait year before getting In
The interest on the surety bonds de-
posted by the banks reverts to the
bank depositing the same.
If a bank does not pay its assess
ment within thirty days fifty pei
cent is to be added to the amount; i
not within sixty days the commits
soner shall take charge and examine
Iit II he finds it insolvent he shall
llinuidate it. The bonds held by tn'
department may be sold to maK'
good the assessments. II a banl
wants to withdraw it must post
card 2OxSO inches in its banking
rooms, printed in large black type
"This bank has withdrawn from tn
bank depositors' guaranty fund AM
, the guaranty Of its deposits will ceas'
on -," the date to be 81
months in advance of the posting,
Deposits which do not bear inter
est time certificates for not more thai
one year and bearing interest at no
more than per cent, comprise tn
, deposits that may be guaranteed
|, Borrowed money and rediscount
, may not be guaranteed. If BAN
! advertises that its deposits are guar
anteed It must not pay more tina
three per cent and If paying NOR
must state in the advertising in sam
: size type that no deposits bearin
! more than three per cent are suaran
teed. The display Of a card or &C
I yertisement that the deposits ar
! guaranteed by 1.-THE State of Kar
sasp is a misdemeanor. Evasion 9
I the act indirectly is misdemeanol
. Trust companies may reorganize Q
y state banks and take advantage {
/ the fund.
Il National banks may take advaI
It tage Of the fund by submitting
state examinations and making stat
ments regularly to the bank depar
: ment at the times of calls for tn
state banks. Banks guaranteed sha
not receive for six months or mol
continuously deposits to an amour
exceeding ten times the sum OF
..sAaf ana ournltia