The log cabin Democrat., 1914-07-02

Prov,Sinr for the Security of Deposi-
 tors in the Incorporated Banks or Ar
 kansas. Creating the banh Dep'",f nf
 tors Guaranty Fund of the state or
 Arkansas. and PrOviding Regulations
 Therefor. and Penalties for the Niola-
 tion thereof"
 FOR ACT No. 2.
 AGAINST ACT No. 2
 Be Tt Enacted hy the People or the
 State of Arkansas
 Section f. The stockholders or every bank doine business in this state sha ho held individually responsible eduallH and ratahly and not one for ah"ttieI ~ all contracts. debts and engagemeht.S VI such bank to the extent of three tunes the grnount Of their stock therein. az tne par value thereof. in addition to tne amount invested in such stock; proFiu- eI however that stockholders or such larks or trust companies as nave @c- ccpted and are participating Tn the pete- fits of the bank guaranty plan here,4 after provided for. shall only De llaDle iD it's deDOSitorS in addition 10 Su'H stock held by said stockholders one time f4a par va'=.0 :he~apf and no more pro '.faNd further. that persons holdsn| otnek as executors. administrators' guar Hans or trustees shall not be nersonallY ~nbicct to liability as stockholders bur the estates and funds in their hands shaH be liable i1 like manner ana to the same extent as the testator' lntestate. stare. 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 raVin"S bank, doi0@ business fn this State under the general barking laws of Arkansas. and any bank which may after the pa esa"e or this art ha authorized to do ht' siness in this State is hereby authorized and empower .eI to DartiCipate in the SseSSme entS aoG horefts and to he governed bY the reEn- - tfons of the bark depositors' @nar2"tN ,f Ay1+r h "a f1- after provided for. Before any bank shall become guaranteed bank within the meaning of this act, a Eesoiuton or It's Board of Directors authorized hv its stockholders, duly certified by it's president and secretary. asking there for in form to be provided by the barE commissioner shall he filed with said 7ork ccrnrnissioner. who shall. upon tho filinp of such resolution. make a riTi4 evarnina tfon of the affairs of such bank. and if it Is found to he solvent. to be properly managed. and conducttng it's business in st .'ict accordance with the banllirg law. he shall. after the bank shall have deposited with the State treasurer bonds or money as hereina ter provided, issue to such bank a certtfi- cate stating in substance that said bank has compiled with the provisions of this act, and that it's derositors are qua afanteed by the hank depositors' guar anty fund of the Stats 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 evil dence of good faith. deposit. and shall at all times maintain with the State treasurer, Subject to the order of the hank commissioner when countersigned bv the auditor of State) United States bonds, Arkansas State bonds, improve ment district bonds. municipal bonds school district bonds, within the State Of Arkansas, to the amount Of five hundred hftnI I dollars or fraction thereof of it's average deposits eligible to guaranty Qess it's raDital and surpluS( as shown by its la et four 'published statements: provided That each bank shall deposit not less than five hundred dollars, and the State treasurer shall issue his receipt there for in triplicate. one to the bank one t0 the auditor of State. and one to the rank commissioner. Such bonds shall hear the certificate Of the attorney general of. the State of Arkansas. stat inc that In his opinion said bonds have been legally issued. Said bonds, or cash in lieu thereof shall not be charged out of the assets of the bank, except as hereinafter provided. but shall be car ried in its assets sets, nnder 3 heading until such time as said bank shall de- fault in payment of assessments hare matter provided for. Tn lieu of bonds money. which deposit shall be exchange able for 6c2ept6ble bonds when the bank elects to make the substitution. Tn ad- dtion to above each bank shall pay in "a Sh an amount euual to one fourth of one per cent of it's average deposits eligible to guaranty, less its capital and surplus. and the same shall be 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 duplicate, one to the bank, one to the auditor of State and tn han nly liaS Sin that any bank seeking to participate in the assessment and benefits of this an, after the first annual assessment for the year 1915 shall have been made shall be assessed an amount approxi- ynately equal to it's proportionate share of the money then In the bank deposi- tors guaranty fund after all losses shall have been deducted, the amount of such assessment to be determined by tho bank commi ssioner The last above mentioned assessment, however, shall not be required of new banks formed by the reorganization or consolidation of banks which have previously complied with the terms of this act. Upon the deposit and acceptance of such bonds Cor money) and the payment of said as sessment. then the payment of such de rosits of said bank as are specified in this act shali be 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 surplua, of each bank until tho cash fund ac- cumulated and placed to the credit Of the bank depositors' guaranty fund shall be approximately five hundred thousand dollars over and above the cash de- Dosted in lieu of bonds. when he shall discontinue such assessments. Should such fund become depleted, the bank commissioner shall make such additfon9l 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 ho 0aa9o fH any 0~e 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 the order of the bank commissioner, to he coUutcrsi-red ry the auditor of State Ter the payment of depOsitors Of failed guaranteed banks, as hereinafter pro Etded. The State treasurer shall credit tls lund 0Uart srly with it's proporton- te share of interest received from Statc Er ftN