The Dermott news., 1914-06-25

n
Providing for the Security of peposi-
tors In the Incorporated Banks OF Ar
kansas Creating the Bank Deepest
tors Guaranty Fund of the state or
Arkansas and Providing Regulations
Therefor, and Penalties for the y lola
ton thereof"
FOR ACT No .
AGAINST ACT No 2.
Re II Enacted by the People OF the
State of Arkansas:
Section l. The stockholders OF everN
bank. doing business in this state. shall
be held individually responsible. equal
and ratably and not one for another Tor
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. proVid-
ed. however. that stockholders of such
banks or trust companies as have &C
Cepted and are participating in the bepe-
fits of the bank guaranty plan herein
after provided for shall only be liable
to its depositors In adtttior 70 such
stock held Ivy said stockholders one time
the par value thereof and no mora; pro
vided. further that persons holdspG
stock as executors administrators. guar
dams or trustees shall not be- personally
subject 10 liability as stockholders, hut
the estates and funds in their han Is
shall be liable in like manner and to the
same extent as the testator int state.
ward or person Interested in such trust
funds would be # living and competent
to act and hold the estate In his own
name
Sec ? Any Incorporated state bank
trust company or savings hank. doing
business in this state under the general
banking laws OF Arkansas. and any bank
which may after the passage Of this act
he authorized TO do business IN this
state. - hereby authorized aud empower
oil to tiCipate in the assessments AID
benefits ard TO be governed by the resu-
Il a
funds OF the state of Arkansas herein-
after provided for Before any bank
shall become a guaranteed bank within
the meaning OF this act a resolution Of
It's BOARD If Directors. authorized hv
its stockholders duly certified by itu
president and secretary asking there
for. IN form 10 be provided by the bRnk
commissioner. shall he filed with said
bank eomml ssionrr who shall upon tho
filing OF such resolution. make a rigid
examination of the affairs Of such bank.
and II II is found to he solvent TO be
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 10 such bank certiti-
cate stating IN substance that said bank
has complied with tho provisions 81
this act. and that its depo-ftors are
guaranteed by the hank depositors' guar
antv fund of the Stats of Arkansas, as
herein provided
Sec 3 BEFORE receiving such certi-
ficate from the bank commissioner, zach
bank entitled to She same according 10
Section OF this act shall as an evi-
dence or good faith. deposit. and shall
all times maintain with the state
treasurer. (suhject TO the order OF the
bank Commiss oner when counters iguHd
by the auditor OF Statel United States
bonds. Arkansas State bonds improve
n~ut district bonds. municipal bonds
school district bonds. within the state Of
Arkansas. TO the amount OF five hundred
dollar. for every ono hundred thousand
deposits eligible TO guaranty Ness its
capital and surplus) as shown by 10
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 tripllCate. one to the bank. one
to the auditor OF State, and one 10 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
been legally Issued. Said bonds. or cash
IN lieu thereof shall not be charged out
OF the assets OF tho bank. except as
hereinafter provided but shall he chr
ried In It's assets under heading
Guaranty Fund with State Treasurer"
until such time said bank shall de
fault In payment OF assessments here
matter provided for. In Lieu OF bonds
the bank. at its option, may deposit
money, when deposit snail nc fNrhAnre
able for accountable bonds when the bank
elects to make the substitution. In ad-
dition to above each bank shall pay In
cash an amount equal to one-fourth OF
one per cent OF it's average deposits
eligible TO guaranty. less it's 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-
CENT therefor In tripltcate, one to the
bank. one TO the auditor OF State, and
one to the bank commissioner; provided
that any bank seeking IN participate In
the assessment and benefits OF this act
after the first annual assessment for
the wear 1918 shall have been made,
shall be assessed an amount approx
mately equal to its proportionate share
OF the money then in the hank deposit
| tors guaranty FUND after all losses shall
| have been deducted, the amount Of such
assessment 10 be determined by the
| mentioned assessment. however. shall
| not be required OF new bank. 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 or such de
| posits OF said hank as are specified In
| this act shall be guaranteed as nerein
| provided. and the bank entitled to It's
| certificate.
Sec 4 The hank commissioner shall,
during the month or January ~ each
year make assessments OF onefourth Of
one per cent OF the average guaranteed
| deposits. less capital and surplus. Of
| each hank until the cash fund ac-
| cumulated and placed to the credit Of
| the bank depository guaranty fund shall
be approximately five hundred thousand
| dollars over and above the cash de
| poslted In lieu of bonds, when he shall
| discontinue such assessments Should
| such fund become depleted. the bank
| commissioner shall make such additional
| a assessments from time TO time as may
| become necessary to maintain the same
| provided that not more than six such as
| ee PAYMENTS OF one fourth of one per cent
| Zach shall be made in any one caienhar
year The treasurer OF the State, OF Ar
kansas shali hold thia fund ln THE State