The Harrison times., 1914-06-13
lBank Guaranty
ACT No. 2
mANK DEPosrroRs' GUARANTY LAW
enoPosED ny INITIATIVE PETITION
ACT MO. q.

BANK DEPosrToRs' GUARANTY Law
a RiH for an act to be entitled An Act
Providing for the Security of Deposl-
tors In the Incorporated Banks OF At
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, ?.
AGAINST ACT No, 2.
Ne II Enacted by the People or the
State of Arkansas;
Section l. The stockholders or every
Sank, doing business In this state snal !
he held individually responsible, equaily
aud ratabiy and not one for another TOT
all contracts, debts and engagements OF
Wuch bank 60 the extent of three times
ahe amount of their stock therein at the
par value thereof, In addition 20 the
s5ucunt invested In such stock; proVid-
ed. however, that stockholders OF such
banks or trust companies as nave ac-
cepted and are participating In the pene-
fits Of the bank guaranty plan heIeln
after provided for, shall only be Iaple
20 its depositors In addition 10 sucn
afock held by said stockholders one tlme
the par value thereof and no more; pro
Yided, further that persons holdsnS
stock as executors, administrators, guar
dams or trustees shall not be personally
subject 60 liability as stockholders 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, II living and competent
10 act and hold the estate In his own
name
Sec. ?. Any Incorporated state bank,
trust company or savings bank, DONG
business In this state under the general
banking laws OF Arkansas, and any bank
which may after the PASSAGE OF this act
Se authorized TO do business In thls
State is hereby authorized and empower
ed 20 participate In the assessments and
beHeflls and TO be governed by the regu-
hatkOns of the bank depostors guaranty
funds OF the state OF Arkansas herein
sitter provided for, Before any Nank
phan become guaranteed bank y thin
fhe meaning OF this act resolution or
fts Board OF Directors, authorized nv
Its Rtockholders duly certified by IT'S
president and secretary asking there
Dor, IN form TO be provided by the bank
sumuissioner, shall be filed with said
bank commissioner, who shall, upon the
filing OF such resolution, make n rigid
examination Of the AFFAIRS OF such bank,
and n it In found TO be solvent. 10 be
properly managed, and conducting It's
business In strict accordance with the
hanldng law, he shall, aftcr the BANK
shall have deposited with the state
treasurer bonds or money as hereinafter
Drovided Issue TO suoh bank u oertifl-
cnte stating IN substance that said bank
mas complied with the provisions OF
this act and that IT'S depositors are
guaranteed by the bank depostors' guar
anty fund OF tho State Of Arkansas as
herein provided,
Sec. 3 Before receiving such certl-
ficate from the bank commissioner each
bank entitled to the same according 20
NN la M m nkHt
dcnce OF good faith, deposit, and shall
at nli times maintain with tho state
treasurer (suhioct 10 the order Of the
bank commissioner when counterslgned
BY the auditor Of Stnto) United states
bonds, Arkansas state bonds improve
ment district bonds, munlclnnl bonds
wchooi district bonds, within the state %
ArknnHag, 10 the amount OF five hundred
dollars for every ono hundred thousand
dollars or fraction thereof Of lts average
deposits eligible TO guaranty Oess ita
capital and surplus) os shown by ito
InN four published atatemente provided,
Tint ench hank shall 80 deposit not less
than five hundred dollars, and the state
treasurer shall Issue his roccpt there
Apr In trinicntc ono TO the bank one
bank commissioner, Such bonds ahnll
bear the certificate OF the attorney
Hrncral of tho state OF Arkansas, stat
tng that in his opinion snid bonds have
pvcu legally isgucd, Said bonds or each
IN lieu thereof ahnll not be charged ont
OF the assets OF the bank except M
kcrolnnftcr provided, but shall be cnrs
vted IN It's assets under n hendlng
"Cunrnnty Fund with state Trenaurcr"
until such time Na said bank shall de'
fault IN payment OF aescssments here.
ipnftor provided for, In lieu OF bonds
thc bank nt lta option, may dopomt
money. which deposit shall be exchange,
able for accountable bonds whom the bank
elects 90 mako the substitution, In nd,
,dItIon 20 above each bank shall pny M
cash an amount equal TO one-fourth ~
.one per cent OF ia average deposits
niIgible 20 guaranty less lta capital and
surplus, and the Same shall he credited
co Nle bank deposltora' guaranty fund
with Che state treasurer, subject 10 IA,
order of the bank commlaaloner and
die State treasurer shall Issue his re,
selpt theofor IN trlplente, one 10 the
bank, enc 60 tho auditor OF state and
one 10 the bank commissioner, provided
chat any bank seeking 20 participate IN
ths aaAeasmhnt and benefits Of this act
after tho first annual assessment fo'
tho yenr 1915 shall have been made
ahnu be nsseaaed an amount approx,
mntely equal 20 In nroportlonAte shnr'
OF the money then IN the bank deposit
torp' giarRntv fund after NIL Losses Hholl
have been deducted, tho amount OF surh
ataeepsment TO bn determined by the
hank commesloner The last above
mentioned assessment however, Hhull
not be required Of new banks formed by
the orRnnlzntion or consolidation ~
bnuks which have previously compiled
with the terms OF this act unon tht
dcpOalt and acceptance Of such bondn
4br money! ana the paymei OF said as
eeaament then tho payment of such do
poaltr 0f said bank M are specified I'm
bdH act shall ho guaranteed M noroin
provided and the bank entitled 10 lts
nartiflcute,
Are 4 The hank commissioner shall
,5urlng the month VI January of each
year matte assessments OF 0uefourth 0f
,bA peF cent 0f the average guaranteed
deppsitH ieHs oepital and surplus ~
saFh bank until the cash fund no.
STIMULATED and rlaeed 10 tho credit ~
che bank depos'tOrs guaranty FUND shall
H. approximately five hundred thousand
dollars over and above the cash lc.
ponlted I'm lieu OF bonds when no shall
discontinue such AheepeWenta. Should
such fund become depleted, the bank
commissioner shall make such additional
nasehHmentH from time 10 time AH may
become necessary 10 maintain the same
provided that not more than pin such az.
easements uf ono fourth Of one per cent
each shalt hc made IN any ono calendar
year, Tho treasurer OF the State of Ar
khnRnH shall hold this fund n the STATE
depository bnnka HH provided by lHN
governing other State funds subject tf
the order of tho hAnR e0mmlsHlunef n
be e0untefHlsnHd by the auditor W Htn'n
Cor tho payment Of dopoHltufH of ihile'
guaranteed htnkH Aa hereinafter rrn.
Ndedl The Nthte trronorer thnll clglll