The log cabin Democrat., 1914-06-11
(Bank Guaranty ACT No. 2 PROPOSED BY INITIATIVE PETITION.
 ACT No. 2.
BANK pEPos1roRs GUARANTY LAW

BANK DEPOSITORS' 9ueHANIf hA w X Bill for an act to be entitled "Nn Net Providing for tho Security of Depost- tors in the Incorporated Banks of Ar kansas. Creating the Bank Deposi. tors Guaranty Fund of the state or Arkansas and Providing Regula ttons Therefor. and Penalties for the Viola tion thereof"
 FOR ACT No 2
 AGAINST ACT No. ..
 Be It Enacted by the People Of the State of Arkansas:
 Section I The stockholders of every bank doing business in this State. Sh2 " be held individually respor sibIe. equally ard ratably and not one for another To- all contracts, debts and eneagementS or
 such bank, to the extent Of thre" times the amount of their stock therein. at the par value thereof. in addition to the amount invested iN Sric'' stock, proV1d- cd. however. that stockholders Of Su'h banks or trust COmraNfaS as nave dc- | cepted and are rarticinatjrg in the hene- fits of the bank gua~antV plan herF'n . after provided for. shall only be fiaoie to it's, denositors in addition to such stock held hv said stockholders one tlrne ne par value the"aof and no more: pro
 '-iGed further. that persons hol':"" stock q C executors. ar'rnirietra tors. SUfr- d.ars or trustees shall not he rerSnnn'lv -rbiect to liability ae stock olders. bfrt the estates and FTpds in their l1ard" shall be lfahie i'll like manner and fo ff" san1N extent as the teStator tntes af" ward or persdn interested in such truSE funds would be. if living anc competent to act and hold the estate in his own name
 Sec. 2 Any frcoroorate1 State hank trust Co1nnauv or s4vineS nank. doi1~ business in this State under the general banking laws Of Arkansas and any bank which may after tb" passage of this act he authorized to do b"SinesS in this State. is hereby authoriae1 and empower cd to participate in the assessments and benefits and Co be governed by the regu- 1ations of the bank depositors' guaranty funds of the State of Arkansas herein after provided for Before any bank shall become q guaranteed bank within the meaning of this act. resolution or 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 hank comm issioner. who shall. upon the filing of such resolution. make 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 bankfrg 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- ca te. stating in substance that said bank has compiled with the provisions of this act, and that it's derositors are guaranteed by the hank depositors' guar 
 herein provided
 Ser. 2 Before receiving such certi- ficate from the bank commissioner each bank entitled to the same according to Section 2 of this act shall an evi Isnee of good faith. deposit. and shall at aE times maintain with the Stare t~e1 Surpr. fSubtaCt tC the order Of tln hank commtssioner when countersi gn ed bv the auditor of State) United States bonds, KrKansas State bonds. imnrove- r,out district bonds. municipal bonds 4; +~,,
 Nrkansas 10 the amount Of five hundred collars Tor every one hundrnd thousand dollars Or fraction thereof of it's aVera ge denositS eligible to guaranty GeSS it's caDitaT and Surp1uSl shown by ft~ h st 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 tripTicate. 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 fin his opinion said bonds have been legally issued. Said bonds. or sh in lieu thereof. shall not be charged out hereinafter provided but shall be car ried fin it's assets under heading
 f%,rarantv Fund with State Trea surer' until such time as said bank shall de fault in payment of assessments here matter provided for Tn lieu of bonds.
 the bank at its option, may deposit money which deposit shall he exchange able for accepta ble bonds when the ba uk elects to make the substitution. In ad- dition to abeve. each bank shall pay in ,4ash an amount equal to one-fOurth of one Der cent of it's average deposits eligible to guaranty. less its capital and surplus and the same shall be credited 1 to the bank depositors' guaranty fund with the State treasurer. subject to the order of the bank commissioner and 1 inc StatC treasurer shall issue his re- i ceipt therefor in triplicate one to the l bank one to the auditor of State, and | one to the bank cOmmS SSioner; provided. i that any bank seeking to participate in | inc assessment and benefits of this act | after the first annual assessment for
 the year 1915 shall have heen made | shall he assessed all amount approXl-
 mately equal to it's proportionate share | of the money then in the bank deposi- 1 tors guaranty fund after al losses shall
 have been deducted the amount Of such
 assessment to he determined by the l bank commissioner. The last above mentioned assessment, however, shall
 not be required of new banks formed by i banks which have previously compiled
 with the terms of this act. Upon the l deposit and acceptance of such bonds | for uonev) and the payment of said 2s-
 sessment then the payment of such de
 posits of said bank as are specified ir
 this act shali he guaranteed as herein
 provided. and the bank entitled to its | certificate
 Sec. 4. 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 wlrplus, ot
 each bank until the cash fund ac.
 cumulated and placed to the credit o' | fine bank depositors guaranty fund shal
 be approximately five hundred thonsannt
 dollars oyer and above the cash de | DoSfted in lieu of bonds, when he shai discontinue such assessments. Should 1 such fund become depleted the bank l commissioner shall make such ad1itioua 1 assossments from time to time as may
 become necessary to maintain. the same provided. that not more than six such as l sessments of one-fourth of one per cent
 each shall be made in any one calendar i year. The treasurer of the State of Ar
 kansas shall hold this fund i'm the State
 1epository banks as provided by law
 eoverniug other state funds subject tC
 the order of the bank commissiohef, tf
 Ge corntersfrned bv the auditor of Ste .e
 for the payment of depositors Of faiIe'
 guaranteed banks. as hereinatte,r pG9
 vided The State treasurer shall efedt' ! fIfs fund ouarterlv with it's proportion