Pocahontas star herald., 1914-06-05
Bank Guaranty
ACT No. 2
BANK DErosrroas' GUARANTY Law
PROPOSED M INITIATIVE rErrTIos
ACT MO. 2.

BANK DEPosrToRs' GUARANTY Law
/ A mn for an act to be entitled An Act
Providing for the security OF peposi-
/ tors In the incorporated Banks OF AZ
kansas Creating the Bank Deposi-
] tors Guaranty Fund OF the State or
| Arkansas and Providing Regulations
Therefor. and Penalties for the Viola
tion thereof"
FOR ACT No. 3
AGAINST ACT No T.
he II Enacted by the People Of the
! State OF Arkansas.
Section I. The stockholders OF every
/ hank. 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
I 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 such stock: proyid-
/ ed. however. that stockholders Of such
banks or trust companies as have ae-
cepted and are participating In the bene-
| fits Of the bank guaranty plan herein
after provided for shall only be Liable
! TO It's deposltors I'm addition TO such
| stock held by said stockholders one time
| Nided. further. that persons holdsnE
stock as executors. administrators. guar
dlans 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
same extent as the testator. intestate.
ward OF person interested in such trust
funds would be. IL living and competent
TO 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 OF this act
I la nuN "A to AA hruaI In
State. Ia hereby authorized and empower
ed to participate I'm the assessments and
benefits and to he governed by the regu-
lstlons OF the bank deposltors guaranty
funds OF the State of Arkansas herein
after provided for. Before any bank
shall become a guaranteed bank within
the meaning of this act resolution OF
its Board OF Directors. authorized bv
It's stockholders. duly certified by Its
president and secretary. asking there
for in form 20 be provided nv the bank
commissioner. shall be filed with said
bank commissioner. who shall. upon the
filling Of such resolution. make a rigid
examination of the afairs or such bank.
and N it Is found 10 be solvent TO he
properly managed. aud 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 a certifi-
cate stating In substance that said bank
has complied with tile provisions Of
this act. and that its depositors are
guaranteed by the hank deDositors' guar
anty fund OF the State OF Arkansas. as
herein provided
Sec. Z. Before receiving such certi-
ficate 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 all times maintain with the State
treasurer. (subtect TO the order OF the
! mi los tafha far al
by the auditor of State) United States
bonds, Arkansas State bonds improve
ment 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 it's average
deposits eligible to guaranty 0ess its
capital and surplusl 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 one 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 be charged out
of the assets OF the bank. except as
hereinafter provided. but shall be car
ried In its assets under a heading
until such time as said bank shall de-
fault In payment of assessments here
matter provided for. In lieu of bonds
| the hank. at its option. may deposit
money. which deposit shall be exchange
able for acceptable bonds when the bank
elects to make the substitution In ad-
| dition to above. each bank shall paw 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 shall issue his re-
| ceipt therefor In tripllcate. one TO the
| bank, one to the auditor of State and
| one to the bank commissioner: provided
| that any bank seeking to participate in
| the assessment and benefits OF this act
after the first annual assessment for
| the year 1915 shall have been made
| shall be assessed an amount approx
| mately equal to its proportionate share
of the money then In the bank deposI-
/ tors guaranty fund after all losses shall
| have been deducted. the amount of such
| assessment to be determined by the
bank commi iOner. The last above
| mentioned assessment however. shall
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
/
| sessment then the payment OF such de-
! posits of said bank as are specified in
| this act shall be guaranteed as nerein
provided. and the bank entitled to its
| certificate.
| Sec. I. 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 surplus. 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-
| posted 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
! each shall be made in any one calendar
| year. The treasurer of the State OF Ar
kansas shall hold this fund in the State
! 1epOqitprH banks as provided nv law
= governing otuer State f1nds sttliect "a