Omaha daily bee., 1909-03-24
GUARANTY BILL SYNOPSIS
Provisions as They Were Finally
Passed and Sent to the Governor.
LATTER RUNS BANKING BOARD
Examiner Have Power to Take
Charge of Banks and Courts Cam
not Interfere Until Receiver
~ Appointed.
lFr1m a sad corre.pondent.l

IRON a SidlI correspondent
LINCOLN. March 23.-(Special )-Follow-
ing IL a synopsis of the bank guaranty
bill AZ finally rassed:
The banking board is composed OF the
governor. who Is eN-offiCio chairman, the
state auditor and the attorney general. The
board shall have supervision over state
banks. The governor shall appoint a sec
rotary to the banking board, who shall
have had three years experience as a prac-
teal banker and who shall be paid 5000
annually. He shall also appoint a clerk to
the board at a salary Of 1880 annually,
and one other assistant II necessary. These
shall hold their office at the pleasure OF
the governor. The governor shall appoint
bank exa miners who shall make at least
two examinations Of every bank annually.
The examiners shall have had three years
experience in practical banking. The sec
Rotary and examiners shall give bonds to
the amount Of 81. 900 and no examiner shall
examine any bank in which he Is inter-
ested. Bonds to be approved by the gov
ernor.
minister oaths and compel the attendance
Of persons TO testify. Any examiner who
sbail accent a bride for failure TO make
n correct report shall be deemed guilty Of
a felony; penalty two TO ten years In
prison. Bank examinations shall be In the
presence OF at least two members Of the
board Of directors and shall include at
least annually a notification from sources
outside Of said bank Of at least 10 per cent
IN number Of the deposits and loans. Bank
examiners shall receive 81 800 a year and
travelinT expenses not to exceed $1,000 an
nuallv, maid out of the general fund.
Fees for examinations are from SIS for
banks with a capital stock Of $4,000 or less
10 $50 Tor banks with a capital stock OF
s15O.COO or more. Fees TO be paid to the state
Bank examiners upon finding a bank in
solvent shall have power TO retain posses
sion OF the property of every description
belonging to said bank as against any
order Of any court until the state banking
board can act upon the report and have a
Majority OF the members OF the board
Of directors must he residents. Of the
county in which bank is located or resi-
rector of a bank with a capital Of 800
900 or less must be the owner of at least
4 per cent of the paid-up capital stock,
$50. 900 must have $4,000 paid-up capital
stock. This does not apply to banks nov
in operation. ownership of five shares
OF the capital stock of a savings bank
qualities owners to be elected directors.
in NO case may be less than 10000; in
towns of 100 to 500 inhabitants, $4,000;
in towns Of 500 to 1000, $4,000; in GOWNS
1000 to 5000, $40. 900; in cities of 5000
to 2 5000. 3 O.000; in towns Of $4,000 TO
more, 500. 1000. The minimum paid-up
capital stock of a savings bank. SIS, 900;
in towns OF more than ~ 1900 and less
$4,000. Not applicable to banks now In
business.
hepOrtA oI bhhAas
Every bank must file within sixty days
a statement with the State Banking board
showing conditions of the bank. Board
upon Examinations shall issue a %cert,fi-
cate showing the bank has complied with
the law to protect bank depositors. Such
certificate shall be displayed conspicu-
ously In place of business, and banks
may print upon stationery and advertls-
ing matter that it's depositors are pro-
tected by the depositors' guaranty FUND
Of Nebraska. Penalty for violation 81
this provision.
Every bank must make not less thar
verified by oaths of an officer and TIVE
directors. Penalty for false statement
from ono to ten years In prison.
the total deposits; two-fifths of said II
per cent shall be in cash in the vault ol
the banks; provided that in cities Of more
Savings bcnks shall have on land at al
times 5 per cent of their total deposits
The aggregate of rediscount and bills
payable shall never exceed two-thirds o.
the paid-up capital, except for paynlen'
OF depositors. Nor shall any bank 9th el
than savings banks permit its loans and
exceed in the aggregate eight times IT.
capital and surplus.
Board - directors shall be not less thar
three nor more than fifteen members Sc
lected from stockholders. Board shall selec
from It's number a president and secretary
and shall select a cashier. Officers to holC
term OF one year. Board OF directors shall
mold two regular meetings each year, wheI
curtties and funds shall he made. Maximum
rate OF interest shall be 4 per cent. Viola
ton Of this interest provision is a felony
punishable by a fine of not less thar
500 or more than $500 or by Imprisonment
81 not more than three wears or both
Before declaring a dividend a bank shall
carry one-fifth of its net profits to IL
surplus fund until the same shall amour