The Dermott news., 1914-06-11
Bank Guaranty
ACT No. 2
BANK DEPosrToRs GUARANTY Law
PROPOSED BY INITIATIVE PETITION.
ACT NO. 2.

BANK DEPOSrTORS GUARANTY Law
Bin for an act to he entitled AN Act
Providing for the Security OF Deepest
tors i'm the Incorporated Banks of A.
kansas Creating the Bank peposi=
tors. Guaranty FUND of the State Of
Arkansas. and Providing Regulations
Therefor, and Penalties for the lola
tion thereof"
FOR act No .
AGAINST ACT No. ?.
Be It Enacted by the People OF the
State Of Arkansas
Section The stockholders OF every
bank doing business in this State. shall
be held individually responsible, equally
and ratablv and not one for another for
all contracts. debts and engagements 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 such stock. provid-
ed however that stockholders OF such
banks or trust companies have ae-
cepted and are participating IN the oene-
fits OF the bank guaranty plan herein
after provided for, shall only be liable
TO its depositors In addition TO such
stock held hv said stockholders one tune
the par value thereof and no more; pro
vided further. that persons holding
stock as executors. administrators guar
dams or trustees shall not he personally
subject TO liability as stockholders. hut
the estates and funds in their hands
shall be liable in like manner and To the
same extent as the testator. interstate
ward or person Interested in such trust
funds would be. II living and competent
to act and hold the estate in his Own
name.
Sec. ?. ANY Incorporated state hank.
trust company or savings bank. doing
business IN this state under the general
banking laws Of Arkansas. ard any bank
which may after the passage Of this act
be authorized to do business &, THIS
ed to participate in the assessments ard
benefits and 10 be governed ny the regus
lations OF tho hank depositors' guaranty
funds Of the State of Arkansas herein
after provided for Before any hank
shall become a guaranteed bank within
the meaning Of this act a resolution OF
its Board Of Directors. authorized hv
its stockholders. duly certified hy It's
president and secretary. asking there
for IN form TO be provided by the ba *
commissioner. shall be filed with said
bank commit ssioper. who shall upon the
filing OF such resolution. make rigid
examination OF the affairs Of such bank
and II IL IS found to he solvent to be
properly managed. and conducting its
business in strict accordance with the
banking law he shall. after the bank
shall have deposited with the State
trea surer bonds or money as hereinafter
provided issue to such bank n certifi-
cate stating in substance that said bank
has complied with the provisions or
tftAH % - dt''' Ntit'' - ''Nt'Nt- ~ T II
guaranteed by the hank deposttors guar
anty fund OF the State OF Arkansas. as
herein provided
Sec 2 Before receiving such certi-
fiCafe from the oank commissioner, each
bank entitled 10 the Same according 20
Section = Of this act shall. as an evi-
denCe Of good faith. deposit and shall
AZ all Nmes maintain with the stat"
treasurer tsubfect 10 the order az Tie
bank com missioner when counters cued
ny the auditor or State3 United states
bonds, Arkansas state bonds improve.
mont district bonds. municipal bonds
school district bonds within the State OF
Arkansas. 10 the amount or five hundred
dollars for ev"ry one hundred thousand
dollars or traction thereot or It's AVERAGE
deposits eligible to guaranty Jless It's
CAPITAL and sNrplnS) a. shown hN 10
last four unfinished statements. provided.
that each hHrk shall 50 deposit not less
thon ftHe tHnffef dollars. and The state
treasurer shall issue his receipt there
70 tire auitt0r 81 state and one to the
bank commissioner SHch bonds shall
boar the cerilfieaf" ef the attorney
general or the state ~ Arkansas. stat
ing that ir N's ouiui"r said bonds hsvc
becn legally issued sad bonds mr. cash
In lteu thereof shall rot he charged ont
Of the ossefs ~ thn hank eN.rpt MS
rer"'r3ftar provided hut shalt 30 en-
ed in its assets nndcr heaFINe
.f;Uaraufv FuUi with state Tr"esu~rr"
until sucf time MS said hank shah de
f1NIi HH l'tNht|t OF ass" NSNeTlS new"
matter provided for Ia lieu OF bonds
tho hank IT IT'S opton. may 1eno~
money. which dtr4s't shall he evshanre-
able for ac#en tahle hords when the bark
elects 20 mako the suhst tuition In ar
dftiou to above, each bank shall psy fin
cash an amount equal To one fourth of
one per cent Of IT'S average deposits
eligible to guaranty. less tts ranttaT ami
surplus and tho same shall he credited
to the bank deposftors guaranty ruul
with the state treasurer subject 10 tho
order OF the bank commissioner and
the state treasurer shall issue his ro-
CENT therefor I'M tripIteats ore 10 tho
bank one ~ the auditor OF state. and
one to the bank commissioner provided
that any bank seeking t. participate I'M
tbe assessment and benefits af ms a,r
oftar the first annual aesessr,sDt for
Tho vear fq15 shall have heen made
shall Inc ossesscd an amount oporoNf
,natelv eaual TO it's Droportinnata sEara
~ tb> money tben in tho baoL, denosi
tors quaranfy FUND after ali losses shall