Pocahontas star herald., 1914-07-03
Bank Guaranty
ACT No. 2
RANK DrPosrToRs GUARANTY Law
PROPOSED ny ISITIATrvr PETITION.
ACT No. 2.

A BIN FOR an act % be entitled An Act
Providing Tor the Security OF bepoHl
tors In the Incorporated Banks OF AZ
kansas Creating the Bank peposi.
tors Guaranty Fund of the state OF
Arkansas aud Providing Regulations
Therefor ana Penalties Tor the Viola
ton thereof
FOR act No .
AGAINST ACT No. ;.
ne n Enacted bv the People OF the
State OF Arkansas
Section 1 The stockholders or every
hank doing business IN this state, shall
/ De held individually responsible, equally
| and rptahly ana not one FOR another TOT
an contracts. debts and engagements or
such bank. 10 the extent OF three times
the amount Of their stock therein, az the
par value thereof. iu addition 70 the
amount Invested I'm such stock proNld-
81, however. that stockholders OF such
hanks 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
10 IS deposltors IN addition TO such
stock held by said stockholders one time
| the par value thereof and no more; pro
Il Vided. further. that persons holding
stock as executors. administrators. guar
dams or trustees shall not be personally
| subject 90 liability as stockholders but
the estates ana funds IN their hands
shall be liable IN like manner and 20 the
| same extent as the testator. intestate
| ward or person Interested IN such trust
/ funds would be. II living and competent
20 act and hold the estate In his own
/ name.
Sec. 3 Any Incorporated State bank.
/ trust company or savings bank. doinE
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. IL hereby authorized and empower
| ed TO participate In the assessments and
| benefits and 10 be governed by the regu-
| lations OF the bank depOsitors 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
It's Board OF Directors. authorized by
| It's stockholders. duly certified by Its
president and secretary asking there
| for. In form 20 he provided by the bank
commissioner. shall be filed with said
| hank commissioner. who shall. upon the
| filing of such resolution. make a rigid
| examination OF the AFFAIRS OF such bank.
and n Il Is found 90 be solvent. 20 he
properly managed. and conducting is
| 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 20 such bank a certifl-
cate stating IN substance that said bank
has complied with the provisions OF
this act. and that its depositors are
4
anty fund OF the State OF Arkansas as
herein provided.
Sec. ;. Before receiving such certi-
ficate from the ban, commissioner. each
bank entitled 10 the same according %
Section . OF this act shall. as an evil
dence OF good faith. deposit. and shall
at all times maintain with the State
treasurer, tsubIect 70 the order OF the
bank commissioner when countersigned
by the auditor Of Statel United states
bonds. Arkansas State bonds. improve
ment district bonds. municipal bonds
school district bonds. within the State OF
Arkansas. 10 the amoutst or five hundred
dollars for every one hundred thousand
dollars or fraction thereof OF its average
deposits eligible TO guaranty Oess its
capital and surplus) as shown by its
last four published statements. provided
that each bank shall 50 deposit not less
than five hundred dollars and the State
treasurer shall issue his receipt there
for I'm triplicate. one TO the bank, one
10 Che auditor OF State. and one 10 the
bank commissioner. such bonds shall
hear 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 ca sh
en- lieu thereof shall not be charged out
OF the assets of the bank except az
hereinafter provided. but shall be car
ried In it's assets under a heading
guaranty Fund with State Treasurer
until such time as said bank shall de-
| fault I'm payment of assessments here
matter provided for. In lieu OF bonds
the hank al its option, may deposit
money which deposit shall be exchange
able for acceptable bonds when the bank
elects TO make the substitution. In ad-
! ditlon to above each bank shall pay IN
cash an amount equal 60 one-fourth Of
one per cent OF Its average deposits
eligible 10 guaranty, less It's capital and
| surplus and the same shall be credited
20 the bank depositors guaranty fund
with the state treasurer subject 20 the
% nh tHHHN Na II HsNH sanN
tho state treasurer shall issue his re-
ceint therefor in triplicate. one 20 the
! hrri. one 20 the auditor of state, and
one 20 the bank commissioner; provided
that any bank seeking 70 participate iu
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 approyl-
mafelv equal 10 Its proportlonnte share
| Of tho money then I'm the bank deposit
tors guaranty FUND after an losses shall
have been deducted. the amount Of such
segeggment 10 he determined by the
mentioned assessment however shall
rot bp required Of new banks formed by
| the reorganlzation or consolidation Of
battles which have previously complied
win the terms OF this act Upou the
deposit and occcptauce OF such bonds
cor money! and the payment of said as
sessment then the payment of such de-
poSits OF said bank as are specified iu
mis- act shall he guaranteed as ncrein
provided. and tho bark entitled 10 its
| certificate.
Soc T. The bank cormissioGer shall.
1 during the month OF January Of each
| vear make assessments OF ouefourth Of
ono per cent OF the average guaranteed
deposits less capital and surplus, of
/ each bank until the cash fund ac-
cumulated and placed 90 the credit of
the bank depOsitors guaranty fund shall
be Approximately five hundred thousand
! dollars over and above the cash de-
posited iu lieu Of bonds when lac shall
J 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
ench shall be- made in any one calendar
wear The treasurer OF the state Of Ar
Kansas shall hold thie fund iu ne STATE