The Springdale news., 1914-06-12

bduhS OI AfhdUSdS, CI6dLlAS Lhc
 Bank Depositors Guaranty Fund of
 the State of Arkansas, and ProYld-
 ing Regulations Therefore, and Penalties for the Violation thereof.
 FOR ACT No 2.
 AGAINST ACT No 2.
 Be It Enacted by the People of the
 State of Arkansas:
 Section 1. The stockholders of ev- cry bank, doing business in this State, shall be held individually re sponsible, equally and ratably and not one for another for all contracts, to the extent of three times the amount Of their stock therein. st ttas par value thereof. in addition te the amount invested in sHet stock provfa- ed, however. that stockholders of such banks or trust companies as have ac- cepted and are participating in the hene- fits of the bank guaranty plan herein after provided for shall only be liable to it's depostars in addition to sne5 stock held by said stockholders one tune the par value thereof and no more; pro vided. further that persons holia7g sIOck 6S executors. 31ff1iftESti dtpl = E dd dians or trustees shall not be personally subject to liability as stockholders. buf the estates and funds in their hands shall be liable in like manner and to the same extent as the testa tor, 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 ineerneratel State bank. trust company or savings bank done business in this State under the general banking laws of Arkansas. and any bank which may after tho passage of this act be authorized to aa business In this State, is hereby authorized and empower ed to participate in the assessments ar9 benefits and to he governed by the regu= lations of the hank depositors' guaranty funds of the State Of Arkansas heretn- after provided for Before any ba K shall bacome guaranteed bank within the meaning of this act resolution of its Board of Directors. authorized hv its stockholders, dulv certified hy its president and secretary. asking there for. in form to be provided by tho bank commissioner shall be filed with said bank commissioner who shall upon ti1p filing of such resoi3tion make a rigid examination of the affairs of such bank and if 1t Is found ta be solvent to he 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 mnneY as hereina far provided issue to sucs bank a certift= cate stating in substance that said bank has compiled with the provisions of this act, and that it's deposit0ys are guara tee7 tr the herlt de.6sffore' eIfar- anty fund of tke State O. Afkapsas 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 evt- dence of good faith deposit and shall at all times maintain with the State treasurer Subject to the order of Inc bank commissioner when counters igre-l by the auditor of State1 United States bonds Arkansas State bonds improve fn ent district bonds municipal bonds school district bonds within the State o- 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 Qess itz capital and surplus4 as shown bv ite that each bank shall so deposit not less than live hundred dollars and the State treasurer shall issue his receipt there for Tn triplicate. one to the bank ono bank commissioner Such bonds shall bear the certificate of the attornov general of the State of Arkansas. stat Ing that fin his opi.ion said bonds have fin lieu thereof sl all not be charged out of the assets of the bank except as hereinafter provided but shall be car ried in Its assets under heaains "Gua ranty Fund with State Tresstref' until such time as said bank shall de- fault In payment of assessments hera- matter provided for. In lieu of bonds the hank at it's option, may deposit which deposit shall he exchanga able for eeeeHtabfe bonds when the bank elects to make the substitution In al ditiCn to above. each bank shall nav i,7 cash an amount eqnal to one-fourtb af
 Gf eligible to guaranty. less its capital anf surplus. and the same shall be credited to the bank depositors' guaranty fun' with the State treasurer subject to the order of the bank commissioner. and the Sta te trea surer shall issue his re- ceipt therefor in tripftcate one to the bank, one to the auditor Of State. ana one to the hank commissioner. provided that any bank seeking to participate r. the assessment and benefits Of this act after tha first annual assessment for the year Is1a shall have been ma lo shall he assessed an amount approxf- mately equal to it's proportionate shar,z of the money then in the bank deDosj- i tors guaranty fund after all losses shall have been deducted. the amount of seeh assessment to he determined by tho mentioned assessment however shall not be required Of new banks formed NV the reorganization or consolidation of hauks which have pravinuslv enmpliad
 
 deposit and acce~taHce Of sucT borfls Cor money4 and the payment of said as sessmeut. then the payment of such de. posits of said hank as are specified Tn this act shall he guaranteed as herein provided. and the bank entitled to It's certificate
 Sec The hank commissioner shall during the month of January of each year make assessments Of anefourth ae one per cent of the average euarantoea deposits less capital and surplus of each bank until the cash fund ae cuuulated and placed to the creaft qr the bank deposi teHS guaranty fund shati be approximately five hundred thousand dollars over and above the cash de posted in lieu of bonds when he shasl discontinue such assessments Shoulf such fund become depleted. the bank commissioner shall make such addltiorai assess snierts from time to time as ma 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 ii any ode calendar year The treasurer of the State of Ar kansas shall hold this fund in the State depository banks as provided by Ia+y governing other State funds subject ta the order of the bank commissioner. ta be countersigred by the auditor of Stafe Tor the payment Of depositors of failed guaranteed banks as hereinafter pro Nided The State treasurer shall credit 'his fnnd quarterly with it's proportion ate share Of interest received from State