The Forrest City times., 1914-06-19
Bank Guaranty ACT No. 2 PROPOSED BY INITIATIVE PETITION
 ACT No. g.
BANK DEposrroRs' GUARANTY LAW

BANK DEPosrToRs' GUARANTY LAW
 A Ell. BiIl for ar. act to be entitled "An Act 4roVlding for the Security of Deposit tors Tn the Incorporated Banks of Ar kahSas. Creating the Bank Deposi- tors Guaranty Fund of the State of
 ,H,irNanSas, AT ,H and Providing Regulations i tf lfnereIor, and Penalties for the Viola | ton thereof"
 FOR ACT No. 2
 AGAINST ACT No. 2
 l Be It Enacted by the Paopla of th. state Of Arkansas:
 section 1. The stockholders of every
 bank, doing business in this State, shall
 De held individually responsible equally ana FataDly and not one for another for | all contracts, debts and engagements of
 such bank, to the extent of three times the amount of their stock therein, at the
 par value thereof, in addition to the l amount invested in such stock. proytd-
 ed, however, that stockholders of such banks or trust companies as have ao- ccepted and are participating in the bene-
 lits M or the bank guaranty plan herein
 aIter provided for shall only be liable l to It's depositors in addition to such 1 stock held by said stockholders one tlme the par value thereof and no more; pro-
 Nided further, that persons holding | stocK as executors, administrators, guar | dlans or trustees shall not be personally l supJect to liability as stockholders but
 the estates and funds in their hands | snail be liable in like manner and to the same extent as the testator, intestate, 1 ward or person interested in such trust funds would be if living and competent
 10 act and hold the estate in his own name.
 Sec. 2. Any incorporated State bank, | trust company or savings bank doinr business in this State under the general banking laws of Arkansas and any bank which may after the passage of this act
 pc authorized to do business in this | State, is hereby authorized and empow.r- | ed D participate in the assessments and benefits and to be governed by the reru- lations of the bank depositors guaranty | funds of the State of Arkansas herein after provided for. Before any ba nl | snail become guaranteed bank within | the meaning of this act, a resolution of | its Board of Directors. authorized bv 1 it's stockholders. duly certified by it's president and secretary, asking there 1 for. in form to be provided by the bank | commissioner. shall be filed with said bank commissioner who shall. upon the filing of such resolution, make a rigid | examination of the affairs of such bank and if it is found to be solvent. to be l 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 money as hereinafter provided. issue to such bank a certifi- cate stating in substance that said bank has complied with the provisions of this act and that it's depositors are 1 guaranteed hy the bank depositors' guar anty fund of the State of Arkansas. 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 ev1- dence of good faith. deposit and shall at all times maintain with the State treasurer Csubject to the order of the l hdr otS-csf fnyNa by the auditor of State) United States bonds, Arkansas State bonds improve | ment district bonds, municipal bonds school district bonds, within the State of Arkansas, to the amount of five hundred dollars for every one hundred thousand dollars or fraction thereof of its average deposits eligible to guaranty Qess it's capital and surplus) as shown by its last four published statements; provided, that each bank shall so deposit not less than five hundred dollars and the State treasurer shall issue his receipt there for in triplicate. one to the bank one to the auditor of State, and one to the bank commissioner Such bonds shall bear the certificate of the attorney
 general of the State of Arkansas, stat ing that in his opinion said bonds have
 in lieu thereof shall not be charged out of the assets of the bank except as hereinafter provided but shall be car ried in it's assets under a heading
 
 until such time as said bank shall de- fault in payment of assessments here matter provided for. Tn lieu of bonds.
 the bank at it's option, may deposit
 money, which deposit shall be exchange able for acceptable bonds when the bank elects to make the substitution. In ad-
 dition to above each bank shall pay in cash an amount equal to one-fourth of one per cent of its average deposits
 eligible to guaranty, less its capital and
 surplus. and the same shall be credited to the bank depoSitors guaranty fund with the State treasurer, subject to the
 order of the bank commissioner and
 the State treasurer shall issue his re-
 ceipt therefor ir duplicate, one to the bank one to the auditor of State. and
 one to the bank commissioner; provided.
 that any bank seeking to particlpate in
 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 approXi-
 mately equal to Its proportionate share
 of the money then in the bank dsposi-
 tors guaranty fund after all losses shall have been deducted. the amount Of such
 assessment to he determined by tbe
 mertioned assess ment. however shall not be required of new banks formed by
 the reorganization or consolidation of
 hanks which have previously complied
 with the terms of this act. Upon the
 deposit and acceptance of such bonds GOT money} and the payment of said as
 sessment. then the payment Of such de
 posits of said bank as are specified fn
 this act shall be guaranteed as herein provided, and the bank entitled to it's certificate
 during the month of January Of each year make assessments of onefourth Of
 one per cent of the average guaranteed
 deposits less capital and surplus, of
 each bank. untt the cash fund ac.
 cumulated and placed to the credit of
 tba hank depositors guaranty fund shall be approximately five s hundred Ire thonsand
 nositad in lieu of bonds, when he shall discontinue such assessments. Should
 snch fund become depleted, the bank commissioner shall make such additional assessments from time to time as may become necessary to maintain the same; nroyided, that not more than six such as- sessments of one-fourth of one per cent each shall be made in any one calendar year The Urea of the State of Ar
 kansas shall hold this fund in the State depository banks as provided by law governing other State funds subject to