The Nevada County picayune., 1914-07-03
Bank Guaranty ACT No. 2 PROPOSED BY INITIATIVE PETITION
 ACT No. 2.
BANK pEposrroRs' GUARANTY LAW

A Bill Cor an act to be entitled "An Act l Providing for the Security or DeppSl-
 tors in the Incorporated Banks or AT
 kansas Creating the Bank Deposl-
 tors Guaranty Fund of the State Of
 Arkansas. and Providing Regulations
 Therefor, and Penalties for the Viola | tlOn thereof"
 FOR ACT No. 2
 AGAINST ACT No. ?.
 l Be IT Enacted by the People of the
 State of Arkansas:
 Section | The stockholders of every
 bank doing business in this State, shall
 be held individually responsible, equally
 and ratably and not one for another Tor 1 all contracts debts and engagements Of | such bank. to the extent of three times 1 the amount of their stock therein at the
 par value thereof. in addition to the
 amount invested in 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
 to it's depositors in addition to such
 stock held by said stockholders one tune
 the par value thereof and no more; pro | Vided further. that persons holdSng | 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 l 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. :. Any incorporated State bank. | trust company or savings bank. doing | business in this State under tho general | banking laws of Arkansas. and any bank which may after the passage of this act | be authorized to do business Tn this | State. Is hereby authorized and empower | ed to participate In the assessments and l benefits and to be governed by the regu- | lations of the bank depositors guaranty | funds of the State of Arkansas herein | after provided for. Before any bank 1 shall become a guaranteed bank within | the meaning of this act. resolution of
 it's Board of Directors. authorized by | it's stockholders, duly certified by It's president and secretary, asking there | for. in form to be provided by the bank i comm ssioner, shall be filed with said | bank commissioner. who shall. upon the | filing of such resolution make a rigid l examination of the affairs of such bank.
 and if it Is found to be 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 to such bank certifi- | cate stating fin substance that said bank l has complied with the provisions of
 this act and that it's depositors are
 guaranteed by the bank depositors' guar
 anty fund of the State of Arkansas. as
 herein provided.
 Sec {. Before receiving such certi- 1 fcate from the bank commissioner. each
 bank entitled to the same according to l Section of this act shall as an evi-
 dence of good faith. deposit. and shall
 at all times maintain with the State l treasurer, tsubject to the order of the l bank commissioner when countersgn l by the 'uditor of State) United States l bonds. Arkansas State bonds, improve i n ent district bonds munIcipal bonds ! cp St fri wi In he If | NrFanSas, to the amount of five hundred ! dollars for every one hundred thousand ] dollars or fraction thereof of it's average ] deposits eligible to guaranty Oess it's i capital and surpluS) as shown by Its : last four published statements; provided, Ii that each bank shall so deposit not less
 than five hundred dollars. and the State . treasurer sba1 issue his receipt there . for In triplicHte. one 10 the bank one . to the auditor of State. and one to the
 bank commissioners Such bonds shall
 bear thc certificate of the attorney
 rcrrral Of the state of Arkansas. stat
 ing that in his opinion said bonds h va
 been leeollv issued Said bonds. or cash
 Tn liau thereof shall not be charged out ! of the assets Of the bank. except IS i hereinafter provided but shall he car
 rird In it's assets under a heading 1 "Guaroptv Fund with State Trea S1rrr" uutU such time as said bank shall de- ! matter provided for Tn lieu of bonds ! tho bank at it's option, may deposit money. which deposit shall be exchange ! able fer acceptable bonds when the ba nk 1 elects to make tho substitution Tn ad- ] ditioU to above. each bank shall pay tu l cash an amount equal to One-fOurth of ] one per cent of its average deposits | eligible to guaranty, less it's capital and 1 surplus and the same shall he credited | to the bank depositors' guaranty fund | with the state treasurer, subject to the | order of the bank Commi sSioner. and | tho State treasure shall issue his re- l ce'pt therefor in triplicate. one to tho l bank one 70 the auditor of StatN VNl ! one to the bank commissioner: provide | thut any bank seeking to uarticiuote ju 1 tho assessment and benefits of th'S act i after the first annual assessment for 1 the wear I9t5 shall have hee0 made shall be assessed an amount 0pproNl- | mately equal to its proportonate share ! of the money then in the bank deposi- | tors guaranty fund after all losses shall | nSSessmert to be determined by the l hank comm lssioner. The last above l mentioned assessment however. shall
 not be required of new banks formed by
 the reorganiZation or consolidation of 1 hunks which have previously complied
 with the terms of this net. Tpo0 the
 lenosit and accordance of such honls 1 lo, r,,onevh ard the payment of sai qs-
 seSSpoent then the payment of such de-
 .,n~'ts of sat hank as are specified iu
 tRiS act shall be guaranteed ns nerpir
 nrov'1'1, ard the bank entitled to it.
 Sec ( The bank commissioner shall | luriug the month of January of each
 ,.,ar make assessments of ouefourth ot ! ne Fer cent of the average guaranteed | leposits less capital and surrlus oi
 rnch tank until the cash fund ae-
 ,un,lated and placed to the credit ot l tb. hank depositors' guaranty fund shall ba approximately five hundred thousand l dollars oyer and above the cash de | posited iu lieu of bonds. when he shall l discontinue such assessments Should such fund become depleted, the bank l corlmiS toner shall make such alaitiOHa a s s@ ssmeuts from time to time as maY become necessary to maintain the same e -,aNl3ed that not more than six such as
 aasSments of one fourth of one per cen l each shall be made fin any one calendar e tear. The treasurer of the State of Ar { | t5ausas shall hold this fund in the St2t, , epository banks as provided by lav : governing other State funds. subject |,