The Forrest City times., 1914-06-05
Bank Guaranty ACT No. 2 PROPOSED BY INITIATIVE PETITION
 ACT No. 2.


BANK DEPosIToRs' GUARANTY LAW
 A Bin for an act to be entitled An Act Providing for the Security of Deposit tors in the Incorporated Banks of Ar kansas, Creating the Bank Deposi- | tors Guaranty Fund of the State of Arkansas, and Providing Regulations Therefor, and Penalties for the Viola ton thereof
 FOR ACT No. 2
 AGAINST ACT No. I.
 Re II Enacted by the People of the State of Arkansas:
 Section I. The stockholders of every bank, doing business in this State, shall be held individually responsible, equally and ratably and not one for another for all contracts, debts and engagements of such bank. to the extent of three times l the amount of their stock therein. at the | par value thereof. in addition to the
 amount invested in such stock; provtd- 1 ed however. that stockholders of such 1 banks or trust companies as have ac- l repted and are participating in the bene | flts Of the bank guaranty plan herein 1 after provided for shall only be liable l to its depositors in addition to such | stock held by said stockholders one time | the par value thereof and no more: pro | Vided further, that persons holding l stock as executors, administrators. guar 1 dians or trustees shall not he personally 1 subject to liability as stockholders, but ! the estates and funds in their hands
 shall be liable in like ma nner and to the ! same extent as the testator, intestate. ward OF person interested in such trust 1 funds would be if living and competent to act and hold the estate in his own name
 Sec. ? Any incorporated State bank 1 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 be authorized to do business in this state is hereby authorized and empower ed VI participate in the assessments and
 benefits and to be governed by the regu- 'ations of the bank depositors' guaranty funds of the State of Arkansas herefn- after provided for Before any bank shall become a guaranteed bank within
 the meaning of this act a resolution of
 its Board of Directors. authorized by
 its stockhol olders, duly certified by its
 president and secretary, asking there
 for in form to be provided by the bank
 commissioner. shall he filed with said
 bank commissioner. who shall. upon the
 filing of such resolution, make rigid
 examination of the affairs of such bank
 and if it is found to 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 certifi- cate stating in substance that said bank
 has complied with the provisions of
 this act, and that its depositors are
 
 anty fund of the State of Arkansas as
 herein provided.
 Sec. 3. Before receiving such certi-
 ficate from the bank commissioner. each
 bank entitled to the Same accors,ine to
 Section of this act shall. as an eyi-
 dence of good faith. deposit and shall
 at all times maintain with the State
 Urea Subject to the order of the
 bank commissioner when counterstgned
 by the auditor of State) United States
 bonds. Arkansas State bonds. improve
 nent 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 to guaranty Qess its capital and Surpus) as shown by it. 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 triplicate. one to the bank one to the auditor of State. and on. to 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 b. charged out of the assets of the bank. except as | hereinafter provided but shall he car ried In it's assets under a heading "Guarantv Fund with State Treasurer until such time a. sad bank shall de fault in payment of assessments here
 
 the bank at it's option, may deposit money. which deposit shall be r,chanee- able for acceptable bonds when the hank 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 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 shSll issue his re- 1 ceipt therefor in triplicate one to the bank, one to the auditor of State and l one to the bank Cnmmis ssioner; provided l that any hank seeking to partiCipate in 1 the assessment and benefits of this act l after the first annual assessment for 1 the wear 1915 shall have been made | shall be assessed an amount approxi- mately equal to it's proportionate share | of the money then 'n 1e bank deposi- 1 tors guaranty fund after all losses shall | have been deducted. the amount of such 1 assessment 10 be determined by the 1 bank commiss toner. The last above | mentioned assessment. however shall 1 not be required of new banks formed by 1 the reorganization or consolidation of | "anks which have previously complied 1 with the terms of this act Upon the l deposit and acceptance of such bonds l for money) and the payment of said as | easement then the payment of such de oosits of said bank as are specified In | 'his act shall be guaranteed as herein provided. and the bank entitled to it's certificate.
 Sec. | The bank commissioner shall | turing the month of January of each 1 year, make assessments of onefourth of | one per cent of the average guaranteed deposits. less capital and surplus. of each bank unth the cash fund ac- cumulated and placed to the credit of 1 the bank depositors' guaranty fund shall be approx iTnately five hundred thousand | dollars over and above the cash de | ,osited in lieu of bonds when he shall ! discontinue such assessments Should such fund become depleted, the bank | commissioner shall make such additional assessments from time to time as may become necessary to maintain the same: provided that not more than six such as | sessments of one-fourth of one per cent 1 each shall be made In any one calendar | year, The treasurer of the State of Ar | Sansas shall hold this fund In the State f depository banks BIS provided by law
 governing ether state funds subject ts