The log cabin Democrat., 1914-06-04
(Bank Guaranty ACT No. 2 PROPOSED BY 111T1ATrvE PETITION.
 ACT No. 2.
BANK DEpos1roRs' GUARANTY LAW

BANK DEPosIToRs' GUARANTY LAW A Bill for an act to be entitled "An Act
 Providing for the Security of Deposi-
 tors in the Incorporated Banks ot Ar
 kansas Creating the Bank DeDosi-
 tors Guaranty Fund of the State of
 Arkansas and Providinr Regulations
 Therefor. and Penalties for the iola-
 tion thereof"
 FOR ACT No. 2.
 AGAINST ACT No. 2.
 Be It Enacted bv the People or the
 State of Arkansas:
 Section 1 The stockholders of every bank doing business in this state, shn' VI be held individuallv responsible. eouallV and ratably and rot ore for another TOY all contracts debts and en"aTementS or 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 S'1"h stock; provld- ed however. that sto~l<n nol9erS of such banks or trust coro 0arios as have ac- cepted and ire participating in the bene- fits of the bank guaranty plan herein . after provided fN". shall only be liable to it's depOsitOrS in addition to such s.nck held bv ga id ~4ack ol1erS one tune tho par valuo thereof and no more: pro- Yided further. that persons holdang stock as executors. administrators. guar d.anS or trustees shall not be personally .ubject to liability as stockholders. but the 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. 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 the general banking laws of Arkansas. and any bank which may after the passage of this art be authorized to do h"si"ess in this State is hereby authorizei and empower ed to participate in the assessments and benefits and to be governed by the regu- lations of the bank depositors guaranty after provided for. Before any bank shall become q guaranteed bank within the meaning of this act a resolution of it's Board of Directors, authorized by its stockholders, duly certified by it's president and secretary asking there for in form to be provided by the bank commissioner shall be filed with said bank commissioner. who shall. upon the examination of the affairs of such bank. and if 1t 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 Urea surer 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 It's depositors are guaranteed by the bank depositors' guar 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 according to Section ? of this act shall, as an evil 1ence of good faith. deposit. and shall at all times maintain with the State t~ca suror. Subject to the order of the bank commissioner when couutersigned by the auditor of Statep United States bonds Arkansas State bonds. improve uent district bonds, municipal bonds school district bonds. within the State of Arkansas. to the amour eof five hundred dollars for every one hundred thousand dollars or fraction thereof of it's average deposits eligible to guaranty Qess it's caDftaI and surplus) as shown by It's last four published sta atements: provided. that each bank shall so deposit not less than five hundred dollars and the Star Urea surer shall issue his receipt there for in triplicate. one to the bank. one to the auditor of State. and one to the bear the certificate of the attorney general of the State of Arkansas. stat ing that in his opinion said bonds have been leeally issued. Said bonds, or cash of the assets of tfe bank except as D hereinafter provided, but shall be car ried in it's assets under 2 heading "Guarantv Fund with State Treasurer"
 
 rault in payment Of assessments here inafter provided for. Tn lieu of bonds the bank at it's option. may deposit money which deposit shall be exchangc- q t1Ie for acceptable bonds when the bank elects to make the substitution. Tn ad- 1ition t0' above, each bank shall pay Tn cash an amount equal to one-fourth of one per cent of it's average deposits elirible vsy guaranty. Tess its capital and eurplus and the same shall be credited to the bank deposftors' guaranty fund with the State treasurer, subject to the order sof the bank COrnmi SSioner. and tho Stata treasurer shall issue his, re- ceipt tn erefor in tripifcate. one to the bank ore to the auditor of State and one to the bank commissioner; provided fiat n~v Narf con'-in" to part cipate in tNe FT.-~egs-''o -' and benefits Of this act a Ger thr "i~st 9Nrn*f assessment for +'-a z--,--r f"15 shaiT lave been made shall be assessed an amount appruxi- nately equal to it's proportionate te share of the money then in the bank depoSi tors guaranty fund after all losses shall have been deducted. the amount of such bank commissioner. The last above mentioned assessment however. shah 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 and acceptance of such bonds Cor money) and the payment of said as sesement then the payment of such de
 
 this act shall he guaranteed as herein provided ard the bank entitled to it's certificate.
 Sec 4 The bank commissioner shall, during the month of January of each year make assessments of Onefourth of one per cent of the average guaranteed deposits, less capital and ~lrplus, of each bank until the cash fund ac- cumulated and placed to the credit of the bank depositors' guaranty fund shall be approximately five hundred thousand dollars over and above the cash de- posited 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 easements of One-fourth of one per cent each shall be made in any one calendar year. The treasurer of the State of Ar kansas shall hold this fund in the State depository banks as provided by la~ governing other State funds subject to the order of the bank commissioners to be eouutersisned by the auditor of state