The log cabin Democrat., 1914-07-09
Bank Guaranty ACT No. 2 BY INITIATIVE P1TIT10A'
 ACT No. q.
sAxx pxros1rony GUARANTY LAW

| AOV NV Ss
 sAxx prrosrrong GUARANTY LAW
 A 1,, for an act to be entitled "An Act Providing for the Security or Deposl- tors in the Incorporated Banks oI kansas Creating the Bank Deposi tors Guaranty Fund of the State ol l Arkansas. and Providing Regulations | Therefor. and Penalties TOT tho 'i'i" tion thereof"
 | FOR ACT No. 2
 | AGAINST ACT No. g.
 Be IL Enacted by the People or the State of Arkansas:
 Section i The stockholders or every
 bank doing business in this state. snn,i 1 be held individually responsible eouas.S | and ratabIy and not one for anotneI io l all contracts, debts and engagements oI | such bank to the extent of three times the amount of their stock therein. at tne par value thereof. in addition to tne amount invested in such stock; proVlu l ed however. that stockholders or such ! banks or trust companies as have ac- cepted and are participating Tn the oene- 1 fits of the bank guaranty plan hereth- after provided for. shall only be ifapie l to it's deposftors in addition to sucn stock held bv said stockholders ono tune | the par value thereof and no more; pro | rided. further. that persons hoIoins | stock as executors. administrators. guar dtans or trustees shall not be personaily Subject to liability as stockholders, ou' | the estates and funds in their hands l shall be liable in like manner and to tne same extent as the testator. lntestate. | ward or person interested in such trust | funds would be, if living and competent 1 to act and hold the estate in his own | name.
 | trust company or savings bank doing business in this State Under the general banking laws of Arkansas. and any bank which may after tho passage of this act L,a ori1 1>d tn da hts State is hereby authorized and empower | ed to participate in the assessments and benefits and to be governed by the regu- l lations of the bank depositors' guaranty I funds of the State of Arkansas herein after provided for. Before any bank shall become a guaranteed bank wlthlr the meaning of this act. resolution or 1 it's Board of Directors authorized hv | it's stockh olders duly certified by its | president and secretary. asking there 1 for in form to be provided by the bank commissioner. shall he filed with said | hank commissioner. who shall: upon the filing of such resolution, make a rtg1d | examination of the affairs of such bank 1 and If 1t is found to he solvent: to be I business in strict accordance with IT.. | banking law. he shall. after the bank shall have deposited with the State 1 treasurer bonds or money as hereinafter provided, issue to such bank a certifi- 1 cato stating in substance that said bank has compiled with the provisions of this act and that it's derositors are guaranteed by the hank depositors' guar anty fund of the State of Arkansas. as | herein provided.
 Sec g. Before receiving such certl- ficate from the bank commissioner each bank entitled to the same according to i Section of this act shall. as an evil l dence of good faith. deposit. and shall l st all times maintain with the State bank commissioner when countsrsixned | by the auditor of Statel United States l bonds, Arkansas State bonds improve l ment district bonds. municipal bonds | Arkansas. to the amount Of five hundred | dollars Tor every one hundred thousand dollars or fraction thereof of it's average 1 deposits eligible to guaranty 0ess it's l capital and surplus) as shown by its | last four published statements: provided. 1 that each bank shall so deposit not less | treasurer shall issue his receipt there | for in triplcate. one to the bank. one
 to the auditor of State. and one to the
 bank commissioner, Such bonds shall l general of the State of Arkansas. stat | ing that In his opinion said bonds have | been legally issued Said bonds. or ca sh l in lieu thereof. shall not he charged out 1 horeinafter provided. but shall be car | ried in its assets under heading l "Guaranty Fund with State Treasurer" | until such time IS said bank shall de- ! fault in payment of assessments here l irafter provided for. Tn lieu of bonds. 1 the bank, at its option. may deposit l r1onev which deposit shall be exchan oc-
 able for s~2entabre bonds when the ba rk | elects to make the substitution. Tn ad- l tiitfon to above. each bank shall pay in l ash an amount equal to one-fourth of | one per cent Of it's average deposits | eligible to guaranty, less its capital and l surplus. and the sa me shall be credited 1 10 the bank deposftors guaranty fund 1 with the State treasur subject to the | of no hank cOmn1jSS SiOner | the state treasurer shall issue his re- l retrt therefor in triplicate, one to the
 bank, one to the auditor of State, and | one to the bank commissioner; provided. that any bank seeking to participate in l ihe aseessment and benefits of this act
 after the first annual assessment for | the year 1915 shall have been made,
 shall be assessed an amount approxi- 1 -1ately equal to it's proportionate share
 If 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 issioner The last above | mentioned assessment. however. shall
 not be required of new banks formed by
 the reSrganization or consolidation of l baoks which have previously compiled
 with the terms of this act. Upon the | deposit and acceptance of such bonds l Cor money) and the payment of said ss- l sessr1ent then the payment of such de | rosits of said bank as are specified in | this act shall be guaranteed as herein | provided ana the pdhh emitted to US
 certificate.
 ] Sec f. 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 espit;;tl and surplus et
 cumulated and placed to the credit of
 the bank depositors' guaranty fund shal
 he approximately five hundred thousa nd
 dollars over and above the cash de
 posited in lieu of bonds. when he shai
 discontinue such assessments. Shoulc
 such fund become depleted, the bank 1 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
 each shall be made in any one calendar
 year The treasurer of the State of Ar
 kansas shall hold this fund in the State
 depository banks as provided by law
 governing other State funds, subject tt
 the order of the bank commissioner, tt
 he countersigned by the auditor of Sta te
 for the payment of depositors Of failed