Omaha daily bee., 1911-08-31
Nebraska
DEPOSITORY BONDS MUST RUN
attorney General Rules They Need
Not Be Renewed By State Banks.
SECURITY FROM NATIONAL BANKS

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y LrSCOLNy AuE. n-gspscislN-In a
lenEthy lsiter CIV M MS opinion 81 offer
en-; phases q the ne~ bsuk EuarAnty de-
posit law. Attorney Genera Grant Martin
has asserted that a. far as tanks not under
thai isw are concerned the oid depository
Law 10 IN fun force and effect and that fer
funes deposited win national hanks 10
ihis state the state Treasurer can require
secur1fy in tire shape % bonds and that
be can deposit IN no hank more than - per
cent of the amount q the capital stock Of
thaf hank
Further. Attorney General Martin says
-that bonds given fcr the security Of public
funds cannot be released ~ any public
Official. therefore various STATE banks which
gave sooh bonds for the security Of state
funds in their possession pr5or 70 ths gong
IN TO effect Of the hank guaranty act must
continue 70 keep such bonds alive until
thear lsgal termination 81 least
Reasons Are Given.
In this connection Attorney General Ma
I'm SAYS.
ities we're taken b. the state for the de-
pusif q its funds pTluT to the passage q
the present Law. which provides that 10
additional securities shsll b required but
sufficient security for both public and
private funds Under other provisions Of
The hank guaranty act the deposit q pubic
funds - secured were expressly exempted
from assessments for the guaranty fana-
IL follows that the hanks which nave on
deposii state funds. and have given surety
bonds therefor have not. up 10 this time.
been compelled to pay any assessments
On the amount OF state tepusitE Cunse-
quently they have not suffered ~ reason
q having pa1o the premiums on surety
bonds Unul such time a. Al assessment
has been made which covers the amount Of
these state deposits they would have no
cause fer complaint ard could rot eKpect
20 BE Reimbursed fer any part Of premiums
paid
Il Is possible that the courts might bold
4, that hese surety bonds are released b.
l7perHti0n Of law. but the bonds themselves
k57al6 not be Surrendered. but must remain
"a fiie with the proper state officer.
Ah1Ttage or defElca1iOn might have taken
place between the time when the bonds
were Eiven and the present time. and the
boRd u Intended 20 cover Ench loss. Z
any. fer such period Of time
know Of 10 way by whsch the bends
could be released By consent Of the parties
The hanks. the surety companies. the state
ane those interested in the guaranty fund
Where 10 assessment has been collected OF
aVuoUnt OF other security. would II have
.&EhrB IN law and equity. growing out OF
AEny agent os the state would have a lawful
!. ri6ht 70 consent 20 . release Of the bond
AID even though he did 80 consent q
0aouet ne oonQ E21Q EATIe1oeI II II - as
CaegaSnable whether said act would be
binctng upon the state and those inter
eGtsd IN the guaranty fund
A ] view the Law. you nov have ths
r1Ght % deposit state funds n any bsnk
Which has complied with the hank guar
ATTY law. 20 the extent Of not exceeding
- PER cent Of lis capital stock and IN 90
dotng you are not required TO demand from
any sach hank any further securities In
ths way Of surety bo0ds OF real estate
mortgages. etc. as provided BY the de-
poxatorY Law. OF course. the dePosftoTy
law u gt1il m fun ofroe and effect 20 fAS
opacerRed-