The Nevada County picayune., 1914-06-05
Bank Guaranty ACT No. 2 PROPOSED BY INITIATIVE PETITION
 ACT No. 2.


4 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
 ton thereof"
 FOR ACT No. 2.
 AGAINST ACT No. 3.
 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; provtd- 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 its 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 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. 3 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 the regu- lations of the bank depositors' guaranty 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 its president and secretary asking there for in form to be provided by the bank 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 he properly managed and conducting it's business in strict accordance with the 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 it's depositors are guaranteed by the bank depositors guar anty fund of the State of Arkansas as herein provided.
 Sec. 2. 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 hy the "uditor of State) United States bonds. Arkansas State bonds. improve n ent district bonds. municipal bonds school district bonds. within the State of NrSansaS. to the amou,,t of five hundred dollars or fraction thereof of it's average deposits eligible to guaranty Qess it's capital and surplusl 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 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 "enoral Of the State of Arkansas. stat ing that in his opinion said bonds l. Va been legally issued. Said bonds, or cash in lieu the~eof shall not be charged out of tho assets Of the bank. except as hereiraftrr provided but shall he car ricd in it's assets under heading "Guarantv Fund with State Trea."re rnti such time as said bank shall de- fault in payment of assessments hera- 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 In cash an amount equal to one-fourth of one per cent of its average deposits eligible to guaranty. less it's capital and surplus. and the same shall be credited A.. ,Ir ptta nr1tt md with the state treasurer. subject to the order of the bank commissioner. and the State treasurer shall issue his re- cpipt therefor in tripliCate. one to the bank one Co tke auditor Of State. and one to the bank commissioner; provide that any. bank seeking to partiCiDate 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- inatelv equal to its proDortionate share of the money then in the bank deposit tors guaranty fund after all losses shall have been deducted. the amount or such assessment to be determined by the hank commissioner. The last above mentioned assessment. however, shall not be required of new banks formed by the reorganization or consolidation or banks which have previously complied with the terms of this act Upon the denosit and acceptance of such bends (o~ money) and the payment of sail as SeSsment. then the payment or Sl''h fH- -oetts of sail bank as are specified in this act shall he guaranteed as herein rrov'5ed. and the bank entitled to its cc"tificate
 Sec { The bank commissioner shall. turing the month of January of each wear. make assessments of onefourth of ane ner cent of the average guaranteed deposits, less capital and surplus, of nach bank until the cash fund &C., rumulated and placed to the credit Of the bank depositors' guaranty fund shall be approximately five hundred thousand dollars oyer and above the cash de- positel In lien of bonds. when he shall discontinue such assessments Should e1lrh fund become depleted. the bank commissioner shall make such additional ..;eessments from time to time as may hspurne necessary to maintain the same ro-.thed that not more than six such as ssments of one-fourth of one per cent .h shall be made In any one calendar year The treasurer of the State of Ar kansas shall hold this fund in the Ste'e .iaoository banks as provided by law ,,.,veruiug other state funds, subject to