The log cabin Democrat., 1914-07-16
(Bank Guaranty ACT No. 2 P1orosED BY INITIATIVE PETrTroN
 ACT No. 2.
BANK pEPosrroRs' GUARANTY LAW

Bin for an act to he entitled An Aet Providing for the Security or Deposl- | tors in the Incorporated Banks or AT | kansas Creating the Bank Deposi. 1 tors Guaranty Fund of the state or l Arkansas and Providing Regulations | Therefor and Penalties for the Niola-
 tion thereof
 l AGAINST ACT No ?.
 Be It Enacted by the People Of the State of Arkansas:
 Section l. The stockholders of every bank doing business in this stare. shI'i
 be held indiv idually responsible eduaIIy
 and ratablv and not one for another Ios | all contracts. debts and engagements oI
 such bank. to the extent of three tlfnes .he amount of their stock therein. al me | par value thereof. in addition 10 tne
 amount invested in such stock; proVid- 1 ed. however. that stockholders of such l banks 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 | stock held by said stockholders one tune 1 the par value thereof and no more pro
 vided further. that persons holdsns
 stock as executors, administrators. guar | dfans or trustees shall not he personally | Subject to liability as stockholders. but ] the estates and funds in their hands l shall be liable in like manner and to the 1 same extent as the testator. intestate. l 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 2 Any incorporated State bank. trust company savings bank. doing business Tn 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 to participate in the assessments ard
 benefits and to be governed by the regu- Iott nf he hcn funds of the State of Arkansas herein after provided for. Before any bank
 shall become guaranteed bank within the meaning of this act resolution Of it's Board of Directors. authorized by Its stockholders. 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 he 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 In substance that said bank
 ta this ' act. and that its derositors ar. guaranteed by the bank depositors' guar anty fund of the State of Arkansas as herein provided
 
 ftcate from the bank commissioner. each bank entitled to the same according to Section ? of this act shall. as an evi dence of good faith. deposit. and shall at ali times maintain with the State treasurer, (subjsct to ths order of the bank commissioner when countsrsisnad bonds. Arkansas State bonds. improve ment district bonds. municipal bonds. school .istrict bonds. within the state of Arkansas to the amount of five hundred fov nnA thnn RA dollars or fraction thereof of it's average deposits eligible to guaranty 0ess its capital and surplus) as shown by its 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
 to tho auditor of State. and one to tho bank commissioner. Such bonds shall boar the certificate Of the attorney general of the State sf Arkansas. stat l been legally issued. Said bonds. or cash in lieu thereof. shall not be charged out I of the assets of tho bank. except as
 hereinafter provided but shall be car 1 :T5uaranty Fund with State Treasurer until such time as said bank shall de- the bank. at its option, may Aepos,t l money. which deposit shall be exchange
 able for aocertsbfe bonds when the bank
  | 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 1 with the State treasurer. subject to tho
 inc state treasurer shall issue his re- ceipt therefor in tripiicate. one ts the
 bank. one to the auditor of State and
 one to the bank commissioner: provided I ha nAAk1nR naPtio{na ta h | the assessment and benefits of this act l after the first annual assessment for the year 1915 shall have been made
 shah be assessed an amount approxi-
 mately equal to iAs proportionate share
 of the money then in the bank deposi- | tors guaranty fund after all losses shall
 assessment to be determined by tho
 bank commissioner. Tho last above | mentioned assessment. however. shall
 not be required of new banks formed by
 banks which have previously compiled | with the terms of this act Upon the l deposit and acceptance of such bonds l 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
 Sec 4. The bank commissioner shall | during the month of January of each | year make assessments of onefourth of
 SepoSits. less capital and surpius. of
 each bank. untn the cash fund ac- cumuIated and placed to the credit Of
 the bank depositOrs' guaranty fund shall
 be approximately five hundred thousand
 dollars over and above the cash de-
 posted in lieu of bonds. when he shall | discontinue such assessments. Should | such fund become depleted, tho bank | commissioner shall make such additional
 assessments from time to time as may
 become necessary to maintain the same, l r,vp7-idpl that moi more than six such q | easements of one-fourth of one per cent
 each shall be made in any one calendar
 year The treasurer of the State of Ar
 depository banks as provided by law
 governing other State funds, subject to
 the order of the bank commissioner, to
 be cOuntersigned by the auditor of state
 for the payment of depositors of failed
 guaranteed banks as hereinafter pro
 vided The State treasurer shall credit
 this fund quarterly with its proportlon-