The Harrison times., 1914-06-06
Bank Guaranty
ACT No. 2
BANK DuPos1ToEs GUARANTY LAW
PROPOSED BY INITIATIVE PETITION.
ACT NO a.

A Bill for an act TO be entitled AN Act
| Providing for the Security OF Deposl-
tors IN the Incorporated Banks OF Ar
kansas Creating the Bank Deposl-
tors Guaranty Fund OF the STATE OF
Arkansas, and Providing Regulations
Therefor, and Penalties for the VIOLA
tion thereof"
FOR ACT No. 2,
AGAINST ACT No, 2,
BE II Enacted Ny the People Of the
state OF Arkansas:
Section 1. The stockholders OF every
bank, doing business in this state, shall
be held individually responsible, equally
and ratably and not one for another for
all contracts debts and engagements or
such bank, to the extent OF three times
the amount OF their stock therein, at the
par value thereof I'm addition TO the
amount invested IN such stock provid-
cd, however that stockholders OF such
banks or trust companies as have ac'
cepted and are participating In the beno-
fits Of the bank guaranty plan herein
after provided for, shall only be liable
10 It's deposltors I'm addition 20 such
stock held by said stockholders one time
the par value thereof and no more; pro-
vided, further, that persons holding
stock as executors, administrators, guar
dlanE or trustees shall not be personally
subject to liability as stockholders, but
the estates and funds In their hands
shall be liable I'm like manner and 70 the
same extent as the testator, ntestate
ward or person interested In such trust
funds would be, If living and competent
20 act and hold the estate in his own
name,
Sec. 2 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 90 do business In this
state Ia hereby authorized and empower
cd TO participate I'm the assessments and
benefits and Go be governed by the rcgua
lntions Of the bank deposltors guaranty
funds OF the state Of Arkansas herein
after provided for Before any bank
shall become guaranteed bank within
tho meaning Of this act, a resolution Of
its Board OF Directors, authorized by
ita stockholders, duly certified by lts
president and secretary, asking there.
for, IN form TO be provided by tho bank
commissioner, shall ho filed with said
bank commissioner who shall upon the
filing OF such resolution make n rigid
examination Of the affairs Of such bank
and " II N found TO be solvent 20 be
properly managed and conducting its
business In strict accordance with tho
banking law he shall, after the bank
shall have deposited with the state
treasurer bonds or money rs hereinafter
provided issue 10 such bank n oertlfl.
cate stating IN substance that said bank
has complied with tho provisions OF
this act and that its deposltors are
guaranteed by the bank dcposItors' guar
anty fund OF the state Of Arkansas az
herein provided
Sec q Before receiving such certl-
flcatc from tho bank commissioner each
bank entitled 20 the same according 10
Section of this act shall, Ra an eyi-
denoe Of good faith, deposit and shall
at nll tines maintain with tho state
treasurer (eubieet 10 tho order OF the
bank commissioner when counteralgned
hy the auditor ~ State) United StAteH
bonds Arkansas state bonds improve.
mcnt district bonds municipal bonds
school district bonds within the state OF
Arknngns 90 the amount NJ five hundred
dollars for every ono hundred thousand
dollars or fraction thereof Of its average
deposits eligible 20 guaranty tlesa its
eRptn and mrplus) aR shown by lts
last four published statements provided,
that each bank shall 20 deposit not less
than five hundred dollars ana tho State
treasurer phnll Issue His receipt there.
for I'm trlpllcutc. ono 20 the bank ono
10 the auditor OF state. aud one 70 the
bank commlnslonor. such bonds SHAH
bear the certificate Of the attorney
general OF the State OF Arkansas, stat
Ing that I'm his opinion said bonds have
been legally Issued Said bonds or cash
I'm lieu thereof shall not he charged out
NJ tho assets Of tho bank except ~
hereinafter provided, but shall he car
rled ln ita assets under heading
until such time RR said bank shall de-
fault IN payment Of assessments hare
matter provided for IN lieu of bonds.
tho bank NJ lts option. may deposit
money. which depoHlt shall he exchange
able for accountable bonds when the bank
elects 10 make the substitution In ud
dlton 10 above, each bank shall pay I'm
| cash an amount equal to 0nerfOurth OF
ono per cent OF ita average deposits
eligible 20 guaranty less ila capital and
surplus, ana the sRme shall he credited
~ the bank depoHltofH guaranty tunt
with the state treasurer Hubiept TO the
order " the bank commissioner ana
tho state treasurer shall issue hlR re-.
colpt therefor IN trlpllcnlo one 10 the
hnnk, one 10 the auditor W State, and
ono a. the bank commissioners provided
that amy hnnk seeking 20 participate in
the assessment and benefits OF thls act
tftoT the fret annual assessment FOR
| the year 1913 shall have been made,
shall he asseHsed hn amount Npproyl
/ mntely equal to llH ptOrNrtlOnbtc share
of the money then lu the hank dopOpl
tors guaranty fund after all losses shall
huNt been deducted Inh amount or hUuN
naeeaHment to he determined BY tho
hank commissioner Tho last above
mentioned assessment however shall
! not be required Of new banks formed by
! tho reorganization or consolidation or
| htuNs which have previously complied
with the terms NJ thlH act tpOn the
| dep0Hlt nud acceptance OF such bonds
| cor money! und the payment Of said HF.
sesament then the payment or such de-
Rnslts Of said hank HH are specified IN
| this act shall he guaranteed az hpfnn
provided and the bank entitled 10 its
| certificate.
See 4 The bank commissioner shall
/ during the month or January NJ onrl
| wear make assessments Of unofuurth u'
! nne per cent Of the average guaranteed
depohltH less capital and surplus. nf
| each bank until tho ehsh fund hea
pumulhtrd ana placed tu Tho credit of
! the bank drpnsitdrf. guaranty fund shall
| he appfosimately five hundred Thousand
! doihfs 0veN hnd above The cash dc
pnaliod IN lido of bonds whom he shall
/ discontinue nlhh NnnpHhmpnin Should
| such fund hpUHmu depleted the hnnlt
pnmmitHiunpr HlNl WHlte such additional
nsseaRmentf ffoA timo 10 time aH may
| become nppesFhtNNo maintain the same,
provided that not inore than sin such hs-
easements Uf uhe fuutth of one per cent
| each shall hp mage IN any one Uhlpndht
! yunt The trVnHu(tt or the state OF Ar
| kansas fhhll hnldt.h tund IN tho state
| deponltufN hanks ~ provided by law