The Forrest City times., 1914-06-26


 Providing for the Security of Deposit tors Tn the Incorporated Banks of Ar kansas, Creating the Bank Deposit
 tors Guaranty Fund of the State of Arkansas and Providing Regulations
 lEefeior and Penalties for the Viola ton thereof"
 FOR ACT No. 9.
 AGAINST ACT No. 2.
 Be It Enacted hy the PeopIe of the
 State of Arkansas:
 Section ]. The stockholders of every 1 bank, doing business in this State, shah De held indtvidually responsible equally ana fatablY and not one for another for 1 all contracts, debts and engagements of such hank, to the extent of three times i the amount of their stock therein. at the par value thereof, in addition to the amount invested in such stock: proyid- i ed however, that stockholders of such banks or trust companies as have ac- 1 cepled and are participating in the bene- Ilts Of the bank guaranty plan herein after provided for shall only be liable i to it's depositors in addition to such l stock held by said stockholders one tune 1 the par value thereof and no more pro- 1 Nlded further, that persons holdxng i stock a g executors administrators guar i dians or trustees shall not be personally ] subject to liability as stockholders but | the estates and funds in their hands l snail be liable in like manner and to the 1 same extent as the testator intestate ward or person interested in such trust 1 funds would be if living and competent
 to act and hold the estate in his own 1 name.
 Sec. 2. Any incorporated State bank. l trust company or savings bank doing | business in this State under the general l banking laws of Arkansas and any bank l which may after the passage of this act i be authorized 10 do business in this l state. is hereby authorized and empower 1 ed U participate in the assessments and benefits and to he governed by the regu- l lations of the bank depositors guaranty i funds of the State of Arkansas herein 1 after provided for. Before any bank 1 shall become a guaranteed bank within l the meaning of this act. a resolution of l it's Board of Directors authorized by l it's stockholders, duly certified by It's l president and secretary, asking there l for in form to be provided by the bank 1 commissioner, shall be filed with said l bank commissioner who shall upon the 1 f1ling of such resolution, make a rigid | examination of the affairs of such bank
 and if it is found to be solvent. to be l properly managed. and conducting it's 1 business in strict accordance with the 1 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 certifi- ! cate stating in substance that said bank 1 has complied with the provisions of 1 this act, and that its depositors are | guaranteed hy the hank depositors' guar l anty fund of the State of Arkansas as
 herein provided.
 Sec. 8. Before receiving such certi- ! ficate from the bank commissioner. each l bank entitled to the same according to | Section of this act shall, as an evi- | dence of good faith. deposit. and shall
 at all times maintain with the State l trea surer. Subject to the order of the bank commissioner when countersigned | by the auditor of State) United States l bonds Arkansas State bonds. improve
 ment district Bonds municipal bonds,
 T l.. | Arkansas, to the amount of five hundred | dollars for every one hundred thousand 1 dollars or fraction thereof of its average | deposits eligible to guaranty Qess its | 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 i for in triplicate one to the bank, one
 to the auditor of State. and one to the l bank commissioner. Such bonds shall | bear the certificate of the attorney
 general of the State of Arkansas, stat 1 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 as l hereinafter provided, but shall be car l ried in it's assets under heading "Guaranty 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, l
 money. which deposit shall be exchange l able for acceptable bonds when the bank | elects to make the substitution. In ad- | dtion to above. each bank shall pay in cash an amount equal to one-fourth of
 one per cent of it's average deposits ! eIisible to guaranty, less its capital and surplus. and the same shall be credited to the bank depositorS guaranty fund with the State treasurer. subject to the order of the bank commissioner, and
 the State treasurer shall issue his re- | ceiDt therefor in triplicate one to the
 bank. one to the auditor of State. and
 one to the bank commlssloner; provided
 that any bank seeking to participate in | the assessment and benefits of this act 1 after the first annual assessment for
 4ha year 1915 shall have been made,
 shall be assessed an amount approxi-
 mately equal to it's propottiondte share 1 Cf inc money then in the bank deposit 1 tors guaranty fund after all losses shall 1 have been deducted, the amount Of such
 assessment to be 4etermlned by the | hank commissioner. The last above 1 mentioned assessment, however shall ] moi be required of new banks formed by l The Yeorganiza ti0n or consolidation of
 Win inc terms or this act. Upon the l deposit and acceptance of such bonds l for money) and the payment of said as- | eesement then the payment Of Sucn de- 1 nosits of said bank as are specified in tbis act shall be guaranteed as herein 1 nrovided. and the bank entitled to it's
 'es,r, see. ''a' 4. The bank commissioner shall.
 during the month of January m aryto, of each q, | one per cent of the average guaranteed
 Snposf.s less capital and surplus, of
 eecb bank untf the cash fund ac-
 oumulated and placed to the credit of he annroximately five hundred thousand
 Se SoIjaTs hpp oyer and above the cash de
 nosited in lieu of bonds, when he shall l discontinue such assessments, Should 1 Snch fund become depleted, the bank i Somnoissioner shall make such additional
 assessments from time to time as may
 heoome necessary to maintain. the same;
 provided, that not more than six such az 1 Easements of one-fourth of one per cent
 zach shah he made In any one calendar
 ,ear The treasurer of the State of Ar
 kansas shall hold this fund in the State
 i,r.,a,,,i.4, ......h. Ca, peo, iuru ny Ia [ goyerning other State funds, subject to