The Forrest City times., 1914-07-03
Bank Guaranty ACT No. 2
BANK DEPosrToRs' GUARANTY LAW
PROPOSED BY INITIATIVE PETITION,
 ACT No. g.


 A BlIl for an act to be entitled "An Act Providing for the Security of Denosi- tors in the Incorporated Banks of Ar
 kansas, Creating the Bank Deposit tors Guaranty Fund of the State of IHIAdhSas, I and Providing Regulations therefor and Penalties for the Viola ton thereof"
 FOR ACT No. 2.
 AGAINST ACT No. 2.
 Be It Enacted by the PeonIe of in.
 State of Arkansas:
 Section i. The stockholders of every
 bank, doing business in this State, shall
 oe held indiVidually responsible equally ana ratably and not one for another for all contracts, debts and engagements of such bank to the extent of three times the amount of their stock therein at the
 par value thereof, in addition to the amount invested in such stock: prov1d- ed' however, that stockholders of such banks or trust companies as have ao- ccepted and are participating in the bene- iitS or the bank guaranty plan herein after provided for shall only be liable
 to it's depositors in addition to such
 stock held by said stockholders one time
 the par value thereof and no more; pro-
 Vlded, further that persons holding stock IS executors administrators guar
 dlans or trustees shall not be personally suDJect to liability as stockholders but
 the estates and funds In their hands
 shall be liable in like manner and to the
 same extent as the testator. intestate ward or person interested in such trust
 funds would be. if living and competent
 to act and hold the estate in his own name.
 Sec. ? Any incorporated State bank. trust company or savings bank doing
 business in this State under the general
 banking laws of Arkansas, and any bank
 which may after the passage of this act
 be authorized to do business in this n nt4 1a
 ed V participate in the assessments and
 benefits and to be governed by the regu-
 latiOns of the bank depositors' guaranty
 funds of the State of Arkansas herein after provided for. Before any bank
 shall become a guaranteed bank within
 the meaning of this act, resolution of
 its Board of Directors. authorized by
 it's stockholders, duly certified by Its president and secretary, asking there
 for, in form to he provided by the bank commissioner, shall he filed with said 1 bank commissioner. who shall. upon the l filling of such resolution make a rigid
 examination of the affairs of such bank
 and if 1t is found to he solvent. to be
 properly managed. and conducting it's business in strict accordance with the banking law. he shall, after the bank
 shall have deposited with the State
 treasurer bonds or money as hereinafter provided. issue to such bank a certfl- cate stating in substance that said bank has compiled with the provisions of tllS act, ana that US 0epOSltOrS guaranteed by the bank depoSitors guar
 anty fund of the State of Arkansas. as herein provided
 Sec 3. Before receiving such certi- ficate from the bank commissioner. each
 hank entitled to the same according to Section of this act shall as an evil
 dence of good faith. deposit and shall at all times maintain with the State treasurer Subject to the order of the 1 bank commissioner when counterSgne by the auditor nf State) United States bonds, Arkansas State bonds. improve
 ment district bonds. municipal bonds, school district bonds, within the State of Arkansas. to the amount of five hundred dollars for every one hundred thousand dollars or fraction thereof of it's average deposits eligible to guaranty Qess it's capital and surpluS) as shown by its last four published statements, provided that each bank shall so deposit not less than five hundred dollars. and the State treasurer shall issue his receipt there for in duplicate, one to the bank one to the auditor of State. and one to the
 bank commissioner Such bonds shall bear the certificate of the attorney general of the State of Arkansas stat ing that in his opinion said bonds have been legally issued Said bonds. or cash in lieu thereof. shall not be charged out of the assets of the bank. except ss hereinafter provided, but shall be car red in it's assets under a heading "Guarantv Fund with State Treasurer until such time as said bank shall de- fault in payment of assessments here matter provided for In lieu of bonds. the bank at it's option. may deposit money which deposit shall be exchange able for acceptable bonds when the bank elects to make the substitution. In ad- dition to above. each bank shall pay in cash an amount equal to one-fourth of one per cent of it's average deposits eIipible to guaranty. less it's capital and surplus and the same shall be credited to the bank depostors' guaranty fund with the State treasurer. subject to the order of the bank commissioner. and the State treasurer shall issue hts re- ceipt therefor in triplcate, one to the bank one to the auditor of State, and one to the bank commissioner, provided. that any bank seeking to participate in the assessment and benefits of this act after the first annual assessment for | inc year 1915 shall have been made, | shall be assessed an amount appToXi~ | ulately equal to it's proportondte share | of the money then in the bank deposit +ors' guaranty fund after all losses shall | have been deducted the amount of such | assessment to be determined by the | bank commissioner The last above | n1entioned assessment, however, shall | not be required of new banks formed by | the reorganization or consolidation of l banks which have previously compiled with the terms of this act Upon the | Seposit and acceptance of such bonds l for money) and the payment of said as | eessment, then the payment of such de-
 posts of said bank as are specified in | this act shall be guaranteed as herein
 provided. and the bank entitled to its l certificate. Sec. 4. The bank commissioner. shall, | durine the month of January of each Uear make assessments of onefourth of
 one per cent of the average guaranteed l aerb hank until the cash fund ac-
 cumulated and placed to the credit of
 the bank depositors' guaranty fund shall | al hundred fhOIGa l Joliars over and above the cash de-
 posited in lieu of bonds, when he shall ;,i 1 e,,cb fund become depleted. the bank l Sommissioner shall make such additional | assessments from time to time as may | Income necessary to maintain the same | Drovided that not more than six such as- | sessments of one fourth of one per cent | esrb shall be made in any one calendar ! .sr The treasurer Of the State of Ar i isrsas shall hold this fund in the State 1 depository banks as provided by law | governing other state funds. subject to