The Springdale news., 1914-07-10

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 Tn this State, shall be held individually responsible. equally and ratably and not one for another for all contracts, debts and engagements or 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 Tn 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 stock held by said stockholders one time the par value thereof and no more; pro- vfded 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 the regu- latiens 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 its stockholders. duly certified by It's president and secretary. asking there for. Tn form 10 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 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 certift= cate stating in substance that said bank has complied with the provisions of this act, and that It's derositors are guaranteed by the bank depostors' guar snty fund of the State Of Arkansas. as herein provided z5z5,=z,zz fieate from the bank commissioner each bank entitled to the same according to dence Of good faith deposit and shall at all times maintain with the State treasurer fSlp1eGi 10 the order or the bank commissioner when eountersigpe ed =fEthe auditor of =State1Et-n nited States haHds. Arkansas State bonds improve reut district bonds municipal bonds school district bonds. within the State of ZAHkansas. to the amount Of five hundred dollars for every one hundred thousand dollars or fraction thereof of it's average deposits eligible te guaranty 0ess its capital and enrplusl shown by its Ia st four published statements provided, that each bank shall so deposit not less IEHa treasurer shall issue his receipt there for in triplicate= one to the bank. one 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 in lieu thereof, shall not be charged out of the assets of the bank except as hereinafter provided. but shall be car ried fn it's assets under a heading until such time as said hank 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 accentahle bonds when the bank elects to make the substitution. In ad- tItlon to above each bank shall pay Tn cash an amount ednal to one-fourth of one per cent nf Its average deposits eligible to guaranty less Its capital and surplus and the same shall he 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 triplicate. one to the bank one to the auditor of State and one to the bank commissioners 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 to it's proportionate share of the money then in the bank depasi= tors guaranty fund after all losses shall have been deducted. the amount of such bank commissioner The last above mentioned assessment however, shall not be required of new banks formed by the reorga ntzatton or consolidation of banks which have previously complied with the terms of this act Upon the deposit and acceptance of such bonds sesament then the payment of such de- posts of said bank as are specified in this act shall be guaranteed as herein provided and the bank entitled to it's
 Sec 4 The bank commissioner shall. during the month of January of each year, make assessments m of onefourth Of 6enosits less capital and surplus. of each bank until the cash fund ao- cumulated and placed to the credit of be approximately five hundred thousa nd dollars over and above the cash de- posted III lieu or to0uS. When he shall discontinue such assessments. Should such fund become depleted. the bank commissioner shall make such additional assessments from time to time as may become necessary to maintain the same . provided that not more than six such as- easements of one-fourth of one per cent each shall be made in any one calendar year The treasurer of the State of Ar kansas shall hold this fund in the State depository banks as provided by law governing other State funds subject to VIAr Dff fhn hata xteGi iny1 fp he countersigned by the auditor of State for the payment of depositors of failed guaranteed banks, as hereinafter pro Vided The State treasurer shall credit this fund quarterly with it's proportion ate share of interest received from state funds, computed at the minimum rate or interest provided by law, upon the aver age daily balance of said fund
 Sec. 6 When any bank shall be found to be insolvent by the bank commits sioner, he shall take charge of such bank, as provided by law, and proceed to wind up its affairs and he shall. at the earliest moment. issue to each oe.