The Harrison times., 1914-07-04

NOIh IN lne lntOTDOIdNtu lohllhs VI -
kansas, Creating the Bank Deposi.
tors Guaranty Fund Of tho state or
Arkansas, and Providing Regulations
Therefor, and Penalties for the Viola
tion thereof"
FOR ACT No. ?.
AGAINST ACT No. z,
BE II Enacted by the People or the
State OF Arkansas;
Section l. The stockholders OF every
bank, doing business in this state snall
be held individually responsible, equaIly
and ratably and not one for another TOT
all contracts, debts and engagements OF
such bank, 10 the extent Of three times
eho amount of their stock therein, AZ the
par value thereof In addition 10 the
amount invested in such stock; proVld-
ed, however, that stockholders OF such
banks or trust companies as nave ac-
cepted and are participating IN the beno-
fits OF the bank guaranty plan herein
after provided for, shall only be liable
20 It's depositors IN addition 10 such
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
dlans or trustees shall not be personally
subject 10 liability as stockholders, but
She estates and funds IN their hands
shall be liable In like manner and to the
Same extent as the testator, intestate,
ward or person Interested In such trust
funds would be, II living and competent
10 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 TO do business In this
state, Is hereby authorized and empower
Al.I.. A. A.. Na s.,l
benefits and 10 be governed by the regu-
iations OF the bank depostors' guaranty
funds OF the State OF Arkansas herein
after provided for, Before an. ank
shall become n guaranteed bank thin
tho meaning OF this act, resolution OF
tts Board OF Directors authorized by
Its stockholders, duly certified by It's
president and secretary, asking there
Ror. in form 10 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 n II In found 20 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 certifl-
cato stating IN substance that said bank
mas compneu WIN tno pIoNlblons OF
this act, and that It's depositors are
guaranteed by the bank depos tors guar
Anty fund OF tho state OF Arkansas as
herein provided
Sec. g. Before receiving such certl-
ficate from tho bank commissioner each
bank entitled 10 the same according 10
Section 2 OF this act shall az an evil
at all times maintain with the state
treasurer, (subiect 10 the order Of the
bank commissioner when counteralgned
by tho auditor OF State) United states
bonds, ArknnHas state bonds improve
ment district bonds, municipal bonds
school district bonds, within tho state Of
Arkansas, 10 the amount OF five hundred
dollars for every one hundred thousand
dollars or fraction thereof Of It's average
deposits eligible 70 guaranty Ooss It's
capital and eurplus) as shown by ite
last four published statements provided,
that each bank sheil so deposit not less
than five hundred dollars and the State
treasurer shall issue his recclnt there.
FOR I'm trlplcRte, one "a the bank one
90 the auditor or state, and one 10 the
bank commissioner, Such bonds shall
bear the certificate OF tho 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 or tho bank except M
hereinafter provided, but Rhnll he cnr.
rled I'm its assets under u heading
'Guar0nty Fund with State Treasurer
until such time as said bank shall de-
fault IN payment OF assessments here
inaftcr provided for In lieu OF bonds
The bank nj its option, may dopomt
money, which deposit shall be exchange
able for accentahlc bonds when the bank
elects 20 make the substitution. In nd,
ditlon 10 above. each bank shall pay In
a.. a.. az i
one per cent OF It's average deposits
sllFible 10 guaranty less its capital ana
aurnlua, and tho Same shall be credited
tn the bank deposltOrs' guaranty FUND
with the state treasurer subject 10 tho
order OF the bank commissioner ana
celpt therefor In trlpllcatc ono 10 the
hank. one 20 the auditor of state, and
ono 10 the bank commissioners provided
that any bank seeking t0 participate I'm
Nhe assessment and benefits OF this act
after tho first annual assessment for
the year 1919 shall have been made
nhpli be assessed an amount approx
mately euun 10 lta proportIonntc share
OF tho money then I'm tho bank deposit
tors guaranty fund after ull loaUoa shall
hpyo been deducted, the amount of such
aaAeesment 10 be determined by tho
bank commissioner The last above
tneptianed nFHeaFment however, shall
tho reorganization or consolidation Of
banks which have previously complied
with the terms OF this act lpnn tho
deposit ana acceptance of such bonds
cor money! ana the naVmeI uf said RH.
ssHsnent then the payment NJ such do
p0Hlta ~ said hank as are specified I'm
this Gee thnll be guaranteed BH n0frlN
provided, and the bank entitled 10 itf
Sac 1 The bank commissioner shali.
during the month NJ January ~ each
year make RraorEmenta of onofOurth W
ono per cen OF The average guaranteed
deposits, lesH enpltRl and surplus NJ
sReb bank until the oRsh FUND aes
eumulated and fl6eed 10 tha credit af
the haNlI 1erOuIfnrF' guaranty rund shall
bt approx lmatelN five hundred thousand
d6iihrs over ana above the cash ta.
rNHlted IN llou Of bonds whom he Hhail
dHconilnuo such assessments should
such fhd bccome dcplctoi. the bank
commissioner shall make such additional
assessments from time 90 time aa may
become necessary ~ maintain tho same.
provided, that not more than FiK such as
easements OF onelf6ufth Of one per cent
zach shall he made IN any one calendar
gshf fte treasurer OF The Rtnts of Ar.
Kansas shall hold this fund IN the state
depository hnUkH uH provided by law
governing other Nlbta funds, subject ~
the order of tho bank commissioner IN
be enunterHlPuhd hv the auditor " HlAle
Tor the payment NJ dupoHltofF W failed
guaranteed hantHI m hereinafter pro.
Nded. Tho State tfrnhuter shall credit
thls fund quarterly with itH proportion.
DO share Of interest received from state
FUNDS computed NJ the minimum Ntn nl
Interest provided by law. upoB the aver
axe dAly balance ~ said fupd.
Sec. : When any baRF shall he toOhu
te he lnsolyeHt ty the bank commits
stnhhf, he shall thhs sbaF6B az such