Carson City daily appeal. [volume] (Carson City, Nev.) 1907-1930, 1909-03-12
TALLMAk'S
BANkACT

DItsDHIeu 10y Seldiol ~ oiiN u
torncy General S%toddard, after many
days of research and comparison
with banking laws OF Oklahoma, Ne
braska, Wisconsin. California and
other states. According o Senator
Iallman 1t provides a complete ana
comparatively inexpensive method or
ban supervision by a state board ar
pointed by the Governor from among
the experienced bankers OF the state
each OF the bankers TO be CHOSEN
from "A bank having a different cap
t~alization. one member from a bank
naving $4,000 or css, &c next from
a bank having ctwcc NIFTY ahd on
hundred thousand. and 50 on. The
Governor Is chairman.
The board appoints a bank eNamin-
or who must have mad 1T least three
wears actual experience as a practi-
cal banker and furnish Il bond OF
1925. 900. 1he salary OF the bank cX-
aminer is $1,000 per aunum. while the
members Of the board receive only
their actual travelling expenses whsn
meeting in the regular session al
Carson City. The act provides pen
altiCs for every violation OF its pro
visions and in addition makes direc'
tors civilly liable to persons injured
by the wilful negligence CT such di'
rectorS.
Every bank must incorporate un-
uer the laws OF Nevada and obtain a
license from the board after an exam
nation and report by the bank en-
aniner. The paid up capital stock
and surplus must In each instance
h, Kept up to a certain amount ac-
cordinG to the population OF the city
or town wherein the bank is located
4 certain amoun must be at all
times kept on hand as n reserve
fund. and unless the same is main
tanned at such figure no new loans
can be- negotiated or dividends de
clared.
No ban" can permit It's loans and
investments to eXCeS in the aggre'
gate eight times the amount OF its
capital, neither car loans be made to
officers or directors except under GER
tain conditions. No single corpora
ton, firm or individual may borrow
more than 20 per cent OF the amount
OF the paid up capital stock. No
Iu.L Ia-I. .a. la. >, ntntni NOD ~
any other city or nor can any
bank except savings banks. hold
more than n certain amount OF real
estate. A complete method OF guar
anteeing deposits is provided by levy
ing an assessment against the CAPT
tai stock OF one per cent Of the daily
average deposits for six months last
past. based upon the sworn state
ments OF the officers which are re-
uuired to the filed within 90 days ar
ter the act becomes effective. On
January !. 1910. and July |, 1910. an
assessment OF half of one per cent
Is levied against each bank. These
assessments will be sufficient to raise
II depOsit0rs guaranty funu OF approx
imately $200,0 900 by July |. 1910, al,
T. watch time a semi.annual assess
mcnt OF one twentieth Of II per
cent is levied.
Provision is made for pro rating
and eqtali2ing the assessments levied
against banks hereafter organized.
The guaranty fund is set aside in ev-
cry bank and Whenever necessary the
board may draw upon the same pro
rata against all banks according to
the nioun necessary TO pay deposi.
tors the deficiency remaining after
the assets in an insolvrnt bank have
beer distributed to the depositors.
II made a felony for any officer
OF u bank to permit the diversion or
wrongful use of the guarantee fun
set aside in his bank. whenever 1t
shall appear to the board that the
capital OF any Dank is impaired, or
that 1t Is conducting business In an
unsafe Oh unauthorized manner such
facts shall be communicated to the
Attorney general who is then author.
iZed to make application for u recciv-
or.
The receiver is allowed from 81
to SO Il day and reasonable attor
ncy fees to be paid ny the bank. The
act fixes a proportion between the
capital and surplus on the one hand,
ana the loans on tie other, thus pre-
venting Il bank becoming top heavy
with deposits. The depositors are
protected by rhe margin formed by
the capital and surplus.
The danger of failure is greatly les
scncd as the act compcls an increase
in capital or surplus to correspond