The Boise citizen. (Boise, Idaho) 1906-1910, 1910-09-02
Bank Guaranty Law
oklahoma Boasts the Best and
Most Successful Banking Stat
ute I'm Union
Robert L. Owen, United States Senator for Oklahom
Macll's National Monthly)

The Oklahoma Bank Law established Bank Depostors
Guaranty insurance fund.- which contributed by the State
hanks the purpose of protecting the depoo Of the State banks
of Oklahoma
The mutual fund up contributions con-
ed by each State Bank consisting of equal an
average of five cent on the average daily deposits payable
twenty years per for the first year and one-twenet of
remaining thereafter until the five per shall
have been paid
It's limited liability therefore the contributing banks
which thus establishes mutual insurance fund to safeguard their de-
hank because the liability is limited liability
Nevertheless provides urd abundanty large provide
mutual substantial insurance
1t involves State liability the depostor except faith
full of the insurance fund The State however
ey interested course protecting good and throw
mg substantial safeguards around the banks as to
them
The depositors therefore of the Oklahoma State Banks
& protected the bank deposor guaranty fund but also by
nang administration and by the most approved safeguards
o sound banking.
The Oklahoma Statute was drawn great with the
active and cooperation of OF the leading bankers OF
that State.
Every reasonable safeguard was provided give Oklahoma
banks the greatest security and stability possible For example the
persons organizing bank subject individuals to the approval
the bank of the State who requires such persons
men good and of good pecedents and free from the
Suspicion Of engaging in banking business for speculative
poses
A double liability is imposed upon stockholders
The capital is required to be fully paid
The bank IS permitted receive money on deposit IN ex
cess enes of its padup capital and surplus but pro-
@ for of capital in that event to correspond with increase
Of deposits.
deposits IN excess OF
fixed from time to time the bank commissioner who Nes low
exceeding per time deposits and lower ae
accounts
Real loans OF twenty per cent OF ue "sS
loan Of such banks is forbidden
The bank commissions is authorized require the increase OF
the banks deposits of times its capital and surplus
The active bank officers forbidden to lend the money OF e
bank to themselves
The bank is forbidden to employ moneys in trade or com
to buy the stock other banks to make loans on IT'S own
capital stock
The banks required to carry reserve OF from tme M m
of $500 less. to tWney-lVe per cent" Il" wv
aeing $500 inhabitants. - +b;r
Savings associations are required keep per cent OF ne
deposits on hand in cash and per additional IN bonds W W
United States or State, county or nluncipa Donus " "
oklahoma worth not less than par -,or
The total liabilities to anv bank any company CO..
firm for money borrowed including IN the laOI
company the liabilities of the several members thereo a."
excess OF twenty per of the capital stock act l,ss
Banks insolvent condition are forbidden 10 aner
Suitable nenaes are provided for any false report or improper
conduct
Full publicity is required.
Frequent reports and examinations are PoViGe0 ,,t ,e
Overdafts are forbidden the officer OF the bank allowing III"
sane to be personally liable ,lui,o tre assets
Preference depositor or credlor y! F'0'o"'9
the bank collateral security IS torhdden ral nder
iabdual borrowing for the purpose OF re-s'ai''s "
The immediate replacement OF an impaired capital IS pro'
New banks organizing required TO SET aSue '''N
uelr capital for the guaranty fund f o>+raor,narv
Additional assessments provided 1or III O@90 rI not
Negnc with provso that the emergency assessments I de-
y any calendar year exceed two per cent ol '
II b ons au us, should prove be insufficient 70
% of the depostors of failed banks hay ] o hoard required
a deposiors guaranty fund.- the State banking Jepos
and deliver TO each deposto having such unpaid -
certificate Of Indebtedness for the amount red Of s % and payable
aTng SIX per interest, consecutivey numoele ''
srAl order 1 hank
The law provides that any bank put in liquidation y from m the
mssoner should have its depostor Immediately POI movers
Sk %h oepostors guaranty fund The bank Oonninss' @
s ar to those Of the Comptroller Of the Currecy d twelve per
The banks are forbidden to loan money IN excess % W.
; with legal rate of seven per cent
lhe value of this system is follows: 11s stability
adds stability the banks and thereto Therefore bs a fear Of the
n ence and business in Oklahoma by aDaes not to
e tmid depostors The timid class is thus ercou'"sN