The Nevada County picayune., 1914-06-19

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. 2.
 AGAINST ACT No. 2.
 Be It Enacted by 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 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; provld- ed, however, that stockholders of such banks or trust companies as have ac- 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 time 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 subject 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. 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 to do business in this State. Is hereby authorized and empower ed to participate in the assessments and benefits and to be governed by ths regu- la Np he hnn day Co funds of the State of Arkansas herein after provided for. Before any bank shall become guaranteed bank within the meaning of this act, a 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 a rigid examination of the affairs of such bank and if it is found to be solvent. to be properly managed. and conducting its 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 has complied with the provisions of this act. and that its depositors are 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 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 treasurer, Subject to the order of the bank commissioner when countersigned by the 'uditor of State) United States bonds, Arkansas State bonds, improve IT ent district bonds. municipal bonds school district bonds, within the State of N''Sansas. to the amount of five hundred dollars for every one hundred thousand dollars or fraction thereof of its average deposits eligible to guaranty Oess 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 shaH issue his receipt there for in tripliCate. 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 eeueral of the Stat" of Arkansas stat ing that in his opinion said bonds h "a becn legally issued. Said bonds. or cash i1 lieu tncvoof shall rot be charged out of the assets of the bank. except as hereinafter provided but shall he rar- ried in it's assets under . haGdiuC "Guarpntv Fund with State TreNSuror" until such time as said bank shall ie- fault i'm payment of assessments he"a- 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 Tn ad- dition to above each bank shall pay Tn ca sh an amount equal to one-foUrtN of one per cent of its average deposits eligible to guaranty. less it's capital and surplus and the same shall be credited to the bank depositors' guaranty fund D,ith the State treasurer. subject tn the order of the bank commissioner. and the State treasurer shall issue his re- caipt therefor in triplicate, one to the bank one to the auditor of Stpte. and one to the bank commissioner; proNtd"I that ony bank seeking to participate in the assessment and benefits oF this act after the first annua assessment Tor the year 1915 shall have beer made, shall be assessed an amount approXi- matelv equal to its proportion9ta sha " of the money then In the bank deposl- tors guaranty fund after all losses shall have been deducted, the amount of such assessment to be determined by the hank commissioner. The last above mentioned assessment, however, small not be required of new banks formed by inc reorganization or consolidation or hanks which have previously compiled with the terms of this act Upon the deposit and accordance of such houds to" rloreyl oNd the payment ot Salf 2S- s.oesmeut ther the payment or sunt d"- r,-'ts of eaia bank as are specified h rbfs act shall be guaranteed as nerrin n~,,-'1r1 and the bank entitled to Its rrrt'firCte .
 sac The bank commissioner shall. .,rin, fhn month Of January ot each ear rrake assessments or onerourth or ,ua per cent Of the average guaranteed tsnoeits. less capital and surplus, of 'a.sh bank until the cash fund aess ,u-,,iIated and placed to the credit Of t, ba',Iy dapositors' guaranty fund shall he ,4S approximately five hundred thousand Goliars oyar and above the cash de- nosite in lieu of bonds woen he shall dtscortinpe such assessments should e'b fIlnd become depleted. the bank commissioper shall make such additional ,HnSgr,ents from time to time as may become necessary to maintatn the same ,,sov-i Icd that not more than six such as ,ssn,ants of one-fourth of one peI cent n,ch shall be made in any one calendar .eor. The treasurer of the State of Ar t;ansas shali hold this fund iE the ot. ,e ,onositOrv banks as provided by laF f,,vern,ps other state funds. subject to