The Forrest City times., 1914-06-12
Bank Guaranty ACT No. 2 PROPOSED BY INITIATIVE PETITION
 ACT No. 2.
BANK DEPosIToRs' GUARANTY LAW

BANK DEPosIToRs' GUARANTY LAW Bill for an act to be entitled 'An Act
 Providing for the Security of DepoSi-
 tors in the Incorporated Banks of Ar
 kansas, Creating the Bank Deposi-
 tors Guaranty Fund of the State of
 Arkansas, and Providing Regulations
 Therefor, and Penalties for the Viola
 tion thereof"
 FOR ACT No. 9
 AGAINST ACT No. 2
 Be It Enacted by the People of the
 State of Arkansas:
 Section l. 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 of such bank. to the extent of three times the amount of their stock therein at the amount invested in such stock; provid- ed however, that stockholders of such banks or trust companies as have &C., cepted and are participating in the bene- fits of 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 tune the par value thereof and no more; pro Vided, further, that persons holding stock as executors, administrators, guar dians or trustees shall not be personally SuDJeCI to lldDlllIV as SIOCknOIderS, put 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 State, is hereby authorized and empower ed - participate in the assessments and benefits and to be governed by the regu- }ations 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 it's Board of Directors authorized by it's stockholders duly certified by it's president and secretary, asking there for, in form to be provided by the bank commissioner, shall be filed with said bank commissioner. who shall. upon the filing of such resolution, make rigid examination of the affairs of such bank and if it is found to be solvent. to be properly managed. and conducting it's business in strict accordance with tho banking law, he shall, after the bank shall have deposited with the State treasurer bonds or money as hereinafter provided. issue to such bank certifi- cate stating in substance that said bank has complied with the provisions of this act, and that its depositors are guaranteed by the hank depositors' guar anty fund of the State of Arkansas, as herein provided
 Sec. 3. Before receiving such certi- ficate from the bank commissioner, each bank entitled to the same according to Section of this act shall. as an evf- dence of good faith, deposit and shall at all times maintain with the State treasurer, Subject to the order of the bank commissioner when countersigned h fha .f bonds, Arkansas State bonds improve nent 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 its average deposits eligible to guaranty Qess its capital and surplus) as shown by it. 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 10 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 ax hereinafter provided but shall be car Guaranty Fund with State Treasnr.r" 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- ditton to above. each bank shall pav in cash an amount equal to one fourth of one per cent of it's average deposits eligible to guaranty less it's 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- ceipt therefor in tripllcate, 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 the year 1915 shall have been made shall be assessed an amount approxi- rnately equal 10 it's proportionate share Of the money then in ne bank deposi- tors guaranty fund after all losses shall have been deducted the amount of such assessment 10 be determined by the bank com mmfsslOner. The last above mentioned assessment however, shah not be required of new banks formed Dv the reorganization or consolidation of banks which have previously compile ed with the terms Of this act Upon inc deposit and acceptance of such bonds for money) and the payment of said as- sesSment then the payment of such de- posits of said bank as are specified 'n tntS aCt SIdii DC Rudfantt6d as herein provided and the bank entitled 10 its certificate
 See The bank commissioner shall. during the month of January of each year. make assessments of onefourth of one per cent of the average guaranteed deposits. less capital and surplus. of each bank until the cash fund ac- cumulated and placed to the credit of the bank depositors guaranty fund shall be approximately five. hundred thousand dollars over and above the cash de- posited in lieu of bonds, when he shall discontinue such. assessments Should such fund become depleted the bank commissioner shall make such additional assessments from time to time ss may become necessary to maintain the sa me. provided, that not more than six such as- sessments Of one-fourth of one per cent each shall be made in any one calendar year. The treasurer of the State of Ar kansas shalt hold this fund in the State depository bauks ss provided by law governing other State funds subject to