The Harrison times., 1914-07-11


kansas. Creating the Bank Deposi.
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.
Re n Enacted by the People or the
State OF Arkansas;
Section |. The stockholders OF every
bank, doing business IN this state, shnll
be held individually responsible equaIIy
and ratably and not one for anotheI lor
all contracts debts and engagements OF
such bank. TO the extent OF three times
9he amount Of their stock therein, at the
MAR value thereof in addition TO the
amount Invested in such stock proyid-
cd, however that stockholders OF such
banks or trust companies as have ac-
cepted and are participating IN the pene-
fits OF the bank guaranty plan herein
after provided for, shall only bo IapIe
10 It's depositors In addition TO sucn
stock held by said stockholders one time
the par value thereof and no more; pro-
vided, further, that persons holdSng
stock as executors, administrators, guar
dams or trustees shall not be personally
subject 10 liability az stockholders, but
the estates and funds IN their hands
shall be liable In like manner and TO the
same extent as tho testator, intestate
ward or person interested In such trust
funds would he, If living and competent
60 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 or this act
be authorized 10 do business In this
State, is hereby authorized and empower.
cd to participate In tho assessments and
benefits and TO be governed by the regu-
Iations OF tho bank depositors' guaranty
funds OF the state OF Arkansas herein
after provided for. Before an ank
ghall become n guaranteed bank thin
the meaning OF this act, a resolution Of
Its Board Of Directors, authorized by
Its stockholders, duly certified by It's
president and secretary, asking there
Tor, In form 20 he 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 II II is found 10 be solvent to be
properly managed, and conducting its
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 q certifi-
cato stating IN substance that said bank
has compiled with tho provisions OF
this act, and that It's depcsitors are
guaranteed by tho bank depostors guar
Anty fund OF tho State Of Arkansas, as
harein provided.
Sec, 5 Before receiving such csrtI-
Stoate from the bank commissioner, each
bank entitled 10 tho same according 10
Section OF this act shall, az an evi,
denoe OF good faith deposit. and shall
AZ all times maintain with the state
treasurer, (suhJect TO the order Of the
bank commissioner when counterslgned
by tho auditor OF Stnte) 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
dollars for every one hundred thousand
dollars or fraction thereof Of Its average
deposits eligible 10 guaranty 0cas lta
capital and surplus) as shown hy ~
last four publ shed statements provided,
that each bank shall 20 deposit not less
Than five hundred dollars, and tho State
treasurer shall Issue hts receipt there
Cor In trpllcate, one 20 tho bank ono
20 the auditor OF state, and ono 10 the
bank commissioner Such bonds shall
bear the certificate or the attorney
general OF the state OF Arkansas, stat.
Hng that IN his opinion snid bonds have
been legally Issued, Said bonds or cash
In lieu thereof shall not he charged out
OF tho assets OF the bank except M
hereinafter provided, but shall he car
riod IN itA assets undor u heading
"Guaranty Fund with State Treasurer"
until such time as said bank shall de.
Vault IN payment Of aascgsments here
anafter provided for IN lieu OF bonds.
uho bank Rt It's option may deposit
money, which deposit shall be exchange.
able for acceptable bonds when tho bank
Nleots 20 make the substitution. IN ad-
Aition 20 above each bank shall pay In
eAah an amount equal 20 one fourth OF
ono nor cent OF Ia average deposits
slgible 10 guaranty, less It's capital ana
aurniua and the Same shall be- credited
Ia al
with the state treasurer subject 10 the
order OF the bank commissioners and
tho state treasurer shall issue hia re-
aelpt therefor In trlplicato, one 10 the
bank, one 60 the auditor or state and
one 60 the bank commissioner provided
that any bank seeking 10 participate In
hhe assessment and benefits Of this act
after the first annuHl assessment for
the year 1915 shall have been made
shall he assessed an amount approx
mately equal TO its proportlonntc share
OF the money thcn IN the bank dcpOra
tora guaranty FUND after all ioaaea shall
have been deducted, tho amount ~ such
asnesfment 90 be determined by tho
bank commissioner Tho last above
mentioned asseHpment however shall
not ba required OF new banks formed hy
tho reorganization or consolidation Of
banks which have previously complied
with the terms OF THIS act lpon tho
deposit ana acceptance OF such bonds
AbF money ? HllA NV FbN'Il'l W rHIN NN.
easement then tho payment Of such de-
poHltH of fhid bank ne are specified IN
VhlH act shall hh guaranteed az herein
provided and the bank entitled 70 ltr
Sac Tho bank commissioner shall.
durlng tho month Of January NJ each
year, mhke assessments Of anetauFth NJ
Sne pes cent ef tho average guaranteed
dspahlts less capital and surplus 0f
saeh hank until tho cash flhd Aez
eunulated ana placed 10 the credit on
ths bank dtp0Hlt0rh' guaranty fund shall
be approximately flvo hundred thonpund
dollhfa over and above ihs caHh Ne
poHltsd m iltu Of bonds, when he thlil
diae1ntinuA bueh AHfeshmentn Should
eueh hnd become depleted, tho bank
pommiasiohtT shall make such additional
assessments from time 10 time RH may
heeoms necessary 10 malntsin tho same
provided that not moro than siN such IA
assHm6ntr " one fourth OF onN ner cant
saeh shall be- made I'm any ono calendar
genr, 1hr treasurer " the state of Ar
VauHaH shall hold this FUND lu the State
depository banks an provided Nv law
governing other state FUNDS, subject 10
The order ~ the bank eemmlHfIoneH 20
De e6urtefHifhed by the auditor of state
H1f the payment OF d0posilofH ~ failed
guaranteed hanks. nh hereinafter pro.
Nlded Tho State treasurer shall rtrdl
thlA FUND quarterly with itH propollonr
Bta Hhare pt interest received from hhe
FUNDS. computed M the minimum rata OF
interest provided by law ufoh the aver
aFe daily balance df said fund
lee. b when any banR shall he found
20 be lnHolvsnt by the bank commits