Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-01-04
LAW PASSED IN 1909 SESSION
Provides Assessment of state Banks
According to Deposits on Hand.

Provides Assessment of state Banks
According to Deposits on Hand.
The bank guaranty law IS officially
known as House Roll No. 423 OF the session
Of 1909 The statute provides an initial
fund by the assessment Of one-fourth OF
per cent on daily average deposits on Sep
TENDER !. 1909, on January l. 1910, July !.
1910. and January /. 1911 Thereafter the
law requires that the assessment for the
guaranty fund shall be one-twentieth Of
per cent mi-annually on July and Jan
uaIy 1.
When the fund shall have reached 1 per
cent Of all deposits It shall not be per-
mitted to fall below that figure and a spe-
oiai assessment OF per cent any year may
be ordered If necesf ~ to make good extra.
heavy losses.
New banks al assessed 4 per cent
OF their capital eadiustment in six
months on the . Of their deposits.
other provisions OF the law are these:
The banking board shah be made up OF
the governor, auditor and attorney general,
the governor to be ex-officio chairman.
The governor may appoint the secretary
and clerk Of the board and examiners suf-
ficient to make two examinations a year
oA every bohh hAAaNA NAAg law AhV eoeAN
tary's salary shall be 5000. the clerks
81 500 and the examiners $500.
A majority Of the board OF directors OF
banks hereafter chartered must be resi-
dents Of the county or adjacent TO the
county where the bank is located. pirec-
tors Of banks having a capital Of 10000 or
less must own per cent Of the stock. in
banks having a capital Of more than $4,000
they must own 5000 Of the capital. In
savings banks the ownership Of five shares
shall be sufficient.
The paid in capital Of banks hereafter
chartered is required as follows:
Less than 100 population, 10000; 100 TO
500, $4,000; 800 to 1000, $4,000; 1000 to AGO.
81, 900; 1000 to 5000 $4,000; 5000 to @,OOO
$50, 900; $500 TO 10000. 100000; over lOOOOO,
$2OOOOO.
The schedule for savings banks shall be
as follows;
Less than 5000 population. $1,000; 5O,OOO
to 10000, $4,000; over 10000 $4,000.
As soon as banks have qualified under
the guaranty law they, shall receive GER
tificate stating so. which they are required
TO post in the bank. Banks may print upon
their stationery and advertising matter a
statement of the fact that they operate
under the guaranty law.
| False statements with reference TO the
condition of bank shall be punishabls by
imprisonmerS from one to ten years.
| No banks TA,y loan money upon or pur-
chase any Of y shares Of its own stock,
nor purchase thu shares Of any STOCK com
pany except to prevent loss. and then such
stock must be disposed OF within six
months.
soards Of directors may have from three
90 fifteen mem1ers. Such boards must
hold at least two meetings each year and
conduct thorough examinations of the
bank at such time. and forward the results
Of such examination to the state board.
/ A greater rate than 4 per cent cannot be
paid as interest Violation Of this provi-
/ sion shall be punishable by a minimum
penalty Of three years
| One-nth OF the net profits must be car
ried to the surplus fund until this amounts
to % per cent or more OF the paid in cap
itaI
| Receiving deposits after a bank is in
solvent shall be punishable by not more