The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1909-03-18
PROVISIONS OF
DAK0Tk'S BANK
INSURANCE LAW
Voluntary, but Absolute Insur-
ance on Deposits at 4 Per
Cent and Under.

Marion, :. d, March 1G.-Represen-
tative Van Ruschen who has just re-
turned from Pierre, where he served
upon the banking committee OF the
house of representatives, and in that
capacity framed the bank deposit in
surance bill, which has become a law
OF the state in practically the same
form, furnishes The Tribune with a
statement of the provisions OF the law
as follows:
4 state association of incorporated
banks is provided for under the SUI
pervision of the state, to be managed
by a board of commissioners consist
ing of the state auditor, treasurer n
public examiner; the organization is
perfected as soon as 100 or more state
banks, approved by the public exam
liner, and whose aggregate c~apitaliza-
ton Is at least 81, 000, 600. make appli-
cation to the board Of commissioners.
accompanied by the membership fees
and one years premium, for member
ship.
The membership fee ranges from
500 to $170, according to the size
of tho bank, the capitalization being
the basis: the annual premium is one
mill on the banks deposits, and the
board of commissioners has authority
to reduce the annual II mill levy
whenever the condition of the bank de-
post insurance fund will permit a
reduction; the board also has power
to levy special assessments OF not eX-
ceeaing four mills in any year to meet
deficiencies. The annual premium is
based on the average daily deposits
for the last three months previous to
the payment of the premium.
What the Law Provides.
AS soon as q bank has perfected
its membership, and paid its dues, all
its depositors are fully insured against
loss to any of their deposits, except
SJ1t,i as 6r9 Wy mono than A nor cont
nua1 interest. As evidence of a banks
membership a certificate suitable for
framing is furnished by the public ex-
aminer, which must be conspicuously
posted in the bank, and in case a bank
which has become a nember of the
association desires to withdraw, it
must give it's depositors at least so
days prior notice and also post q
certificate to that effect in a con-
spicuous place in it's bank. Failure to
give such notice is made a felony.
After the association has been per-
fected, any other state or national bank
In good standing may become a mem
Der upon the same terms as the orig
inal members. Trust companies ara
admitted upon the same terms as
banks, If they transact a deposit busi-
ness.
In the event that a bank which is q
emb of the association becomes in
solvent, the public examiner certiies
the names OF the depositors and the
amount due each to the state audito
who issues warrants upon the proper
fund for the payment of the losses:
after all depositors have been paid
in fuil out of the fund, the association.
is subrogated to the rights of the
depositors in the assets of the failed
bank, to the extent Of the losses paid
out of the bank deposit insurance fund.
L The law goes into effect on Jasy
/ next n 1t is understood tina quite
a number of banks a already de-
clared themselves in readiness to join
at the earliest possible moment.
AS the South Dakota plan of bank
insurance is entirely new and untried
and unlike any other plan in e%xistence,
is Is quite probable that it may be
found to be somewhat crude in some
respects, although the general plan APP
pears to be along sound business lines,
and as secure as any plan could be
devised that is voluntary in it's nature.
instead of the compulsory system IN
vogue in Oklahoma.