Pocahontas star herald., 1914-06-12
Bank Guaranty
ACT No. 2
BANK DrrosIToHs' GUARANTY Law
PROPOSED NY INITIATIVE rrTTTIor
ACT No. 2.


nm FOR an act 70 Ne entitled AN Act
Providing Tor the Security OF nepofi-
tors in the Incorporated Banks Of Ar
kansas Crontinr the Bank hepoai-
tors Guaranty Fund Of the State or
Arkansas. aud Providing kegulu tons
Therefor. and Penalties FOR the Viola
tiuu thereof"
FOR ACT No. ?.
AGAINST ACT No. =
Bs II Enacted by the People o. the
State OF Arkansas:
Section I. The stockholders OF every
hank doing business IN this state, shall
be- held Individually responsible. equally
and ratahly and not one Tor nnother TOT
an contracts debts and engagements or
such bank. 10 the extent Of three times
the amount OF their stock therein, az the
par value thereof. IN addition % the
amount invested In such stock. proVid-
I'd. however, that stockholders or Euch
banks or trust companies as have ac-
cepted and are participating IN the bene-
fits of the hank guaranty plan herein
after provided for, shall only be liable
To its depositors IN addition 20 SUCH
stock held by said stockholders one time
the par value thereof ana no more. pro
Nided. further that persons holdanF
stock as executors. administrators. guar
dams or trustees shall not be personally
subject 10 liability as stockholderH but
the estates and funds IN their hands
shall be liable in like manner and % the
same extent as the testator. intestate,
ward or person interested In such trust
funds would be. N living and competent
90 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
h. 10. La ~
State. is hereby authorized and empower
cd Co participate In the assessments and
benefits and 10 be governed by the regu-
lations Of tho hank depositors' guaranty
after provided for Before any bank
shall become a guarantees bank within
the meaning OF this act n resolution OF
its Board of Directors. authorized by
It's stockholders, duly certified by rs
president and secretary. asking there
for in foSn 20 be provided by the bank
commissioner, shall be filed with said
bank Commissioner. who shall. upon the
filing Of such resolution. make n rigid
examination of the affairs Of such bank
and N u h found 20 be solvent TO be
properly managed. and conducting lts
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 certifi-
cate stating IN substance that said bank
has complied with the provisions OF
this act. and that Its depositors are
guara nteed by the hank depositors' guar
anty fund Of the State OF Arkansas. az
herein provided
Sec. 3 Before receiving such certi-
ficute from the bank commissioner. each
bank entitled 10 the same according to
Section 2 Of this act shall, az an evil
dence OF good faith. deposit and shall
az all times maintain with the state
treasurer. tsuhject 10 the order Of the
bank commissioner when countersigned
by the auditor Of State) United states
bonds Arkansas State bonds. improve
ment district bonds municipal bonds
school district bonds. within the state or
Arkansas, 20 the amount of five hundred
dollars for every one hundred thousand
dollars or fraction thereof OF it's average
deposits eligible 20 guaranty Oess its
capital and surplusl as shown by its
last four published statements; provided
that each hank shall so deposit not less
than five hundred dollars and the State
treasurer shall issue his receipt there
for In triplicate. one 10 the bank. one
TO the auditor OF State. and one 20 the
bank commissioner. Such bonds shall
bear the certificate Of the attorney
general OF the State OF Arkansas stat
Ing that I'm 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
Guaranty Fund with State Treasurer
until such time as said bank shall de-
fault In payment OF assessments here
matter provided for. In lieu OF bonds
the l.ank. at its option. may deposit
money. which deposit shall be exchange
able for acceptable bonds when the bank
elects 20 make the substitution. In ad-
dition TO above, each bank shall pay IN
cash an amount equal 10 one-fourth OF
one per cent OF Its 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-
celpt therefor I'm triplicate one TO the
bank. one 20 the auditor OF State, and
one TO the bank commissioner; provided
that any bank seeking 20 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 approNi-
rnately equal TO its proportionate share
OF the money then I'm the bank deposit
tors guaranty fund after all losses shall
have been deducted the amount Of such
assessment 70 be determined by the
bank commissioner. 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 anu acceptance OF tQcu DOnNS
Cor money! and the payment Of said as
sessment, then the payment Of such de-
posits Of said bank as are specified IN
this act shall be guaranteed as herein
provided and the bank entitled to its
certificate
Sec 4 The bank commissioner shall.
during the month of January on each
vear make assessmcnte OF onef0urth Of
one per cont of tbe average guaranteed
deuOe'ts less capital and surplus of
each b0rt until the cash fund acc
eumulatel and placed TO The credit of
Ira h1uE dcrU=.t0r7' guaranty fEHH shall
Doe aHnr1sim3te'E five huudHaI thousand
dollars over and a50vY tna r.sH do-
noata1 in 'e1 OFF bonds when ha Shall
discontinue such wnrts should
U fnd become den.at.i tc hnar
comm. .saonar shall make HaH aIHHnnni
ua".s .rau -.wa fH tua mau
o. M#.H.aIu tHr ra.
provided tNs. Ha ...
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