Pocahontas star herald., 1914-06-19

] 4 Rlll for an act 10 be entitled Ah -
Providinr for the Security OF Deposi-
tors In The Incorporated Hanks OF Ar
| kansas Creating the Bank Deposl.
| tors Guaranty Fund OF the state or
| Arkansas and Providing kegulatohs
| Therefor. and Penalties FOR the VIOLA
ton thereof
FOR ACT No. ?.
| AGAINST ACT No, y.
Ne 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 TOT
an contracts. debts and engagements OF
such bank. 90 the extent OF three times
/ the amount OF their stock therein, az the
| par value thereof. in addition TO the
/ amount invested in such stock proNid-
| cd however that stockholders OF such
banks or trust companies as have se-
| cspted and are participating IN the bene-
/ fits OF the bank guaranty plan herein-
| after provided for. shall only be Liable
90 80 dsPositors IN addition 70 snen .
the par value thereof and no more; pro
vided. further. that persons holotnE
| stock as executors. administrators. guar
dlRns or trustees shall not be personally
| subject 10 liability as stockholders, but
the estates and FUNDS In their hands
| shall be iable ia like manner and TO the
same extent as the testator. intestAte
ward or person interested In such trust
funds would be. IL living and competent
90 act and hold the estate In his own
| name.
Sec 8. 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
be authorized TO do business In this
State. Is hereby authorized and empower
cd Go participate In the assessments and
/ faN ~ HaA hN h.
iations Of the bank depositofs 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. a resolution OF
It's Board OF Directors. authorized BY
its stockholders duly certified by Its
| president and secretary, askinE there
for In form 20 be provided BY the bank
commissioner, shall be filed with said
bank commissioner. who shall, upon the
filing OF such resolution. make a rtEid
examination OF the sTairs OF such bank.
and n II II found to be solvent. TO be
properly msnaged. ana eonduetinE its
buslness 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 certifi-
cate stating In substance that said bsnl,
has complied with the provisions of
this act and that it's depositors ar.
guaranteed bv the bank deDositors' fusr-
| Gnty funo OF the STATE OF Arhhnbah, ~
Sec. 3. Before receiving such csrti-
| ficate from the bank commissioner. each
bank entitled 10 the same according "a
Section 2 OF this act shall, as an evi.
dence OF rood faith. deposit. and shall
az all times maintain with the State
| treasurer. (subject 20 the order OF the
bank commissioner when counterslEnse
by the auditor OF STATED United States
bonds. Arkansas State bonds. improve
ment district bonds. municipal bonds
school district bonds, within the State OF
Arkansas. 10 the amount OF five hundred
dollars for every one hundred thousand
dollars or fraction thereof OF it's Rverag,
deposits eligible TO guaranty Oess 80
capital and surplus) as shown by it'
last four published statements; provided
that each bank shall so deposit not lest
than five hundred dollars. and the StAt'
treasurer shall issue his receipt there
. FOR In triplicate. one 90 the bank on,
90 the auditor OF State. and one 20 IN,
bank commissioner. Such bonds shal
hear the certificate OF the attorne,
: general OF the State OF Arkansas. stat
, | Inf that in his opinion said bonds hav,
been legally issued. Said bonds. or casl
: In lieu thereof. shall not be charged on
OF the assets OF the bank, except Rl
hereinafter provided. but shall be car
! ried in its assets under a headinI
Guaranty Fund with State Treasurer
until such time as said bank shall de
fault In payment of assessments here
insfter provided for. In lieu Of bonds
| the hank st it's option, may deposI
. money, which deposit shall be exchange
! | able for acceptable bonds when the bGnl
elects TO make the substitution. In sd
dition 90 above. each bank shall pay ii
I | cash an amount equal to one-fourth O
Y one per cent OF Its average deposit
: | eligible TO guaranty. less its capital am
. | surplus and the same shall be credite
: 10 The bank depositors guaranty FUN
Z with the State treasurer. subject 10 tn
order OF the bank commissioner, an
the state treasurer shall issue his re
> ceipt therefor In triplicate, one 20 IN
? bank one TO the auditor of State, an
% one to the bank commissioner; provided
Q that any bank seeking to participate q
7 the assessment and benefits OF this &C
? after the first annual assessment 10
q the wear 1915 shall have been mad,
r. shall be assessed an amount approx
= nately equal TO its proportionate shRr
OF the money then in the bank depos
r tors guaranty fund after all losses sha
70 have been deducted, the amount OF sue
3 assessment TO be determined by th
; bank commissioner The last abov
mentioned assessment. however, sha
j. not be required OF new banks formed b
Q the reorga anization or consolidation c
l. banks which have previously compile
= with the terms OF this act Upon IN
e deposit and acceptance OF such bond
u DOR money! and the payment OF said M
sessment. then the payment OF such d,
\ posits Of said bank as are specified
= this act shall be guaranteed as nerei
. provided. and the bank entitled to il
O certificate.
Sec T. The bank commissioner shal
+ during the month OF January OF eac
Y wear. make assessments OF onefourth
u one per cent Of the average guarantee
:, deposits less capital and surplus.
i each bank until the cash fund a,
! cumulated and placed TO the credit
u the bank depositors' guaranty fund sha
J. be approximately five hundred thousar
{" dollars over and above the cash d
: posited In lieu OF bonds, when he sha
" discontinue such assessments Shou
2. such fund become depleted, the bar
u commissioner shall make such addition
assessments from time to time as ma
n become necessary to maintain the sam
? provided, that not more than six such a
J. easements OF one fourth or one per Gel
each shall be made in any one cslendI
u wear The treasurer or the State OF A
;, | kansas shall hold this fund in the Sta
n depopttory banks Rs provided by Ia
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