Pocahontas star herald., 1914-06-26
Bank Guaranty
ACT No. 2
sAsE DEPosrroEg oUAHAErr Law
PROPOSED 1T INITIATIVE FETrrtoh'
ACT NO. q.

I
A Bill for an act 10 be entitled An Act
Providing for the Security or Deposl-
tors Ia the Incorporated Banks OF At
kansas. Creating the BANK beposl,
tors Guaranty Fund OF the sta.e %.
Arkansas. and Providing Regulations
Therefor. and Penalties for the Nio"'
tion thereof"
FOR ACT No :
AGAINST ACT No. =.
Ne II Enacted by the People OF the
State OF Arkansas;
Section l. The stockholders OF every
bank doing business In this State. shau
be held individually responsible. equaily
and ratably ana not one for another TOT
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 20 the
amount invested in such stock; provld-
ed however. that stockholders OF such
banks or trust companies as have ac-
cepted and are participating In the bene-
fits OF the bank guaranty plan herein
after provided for shall only be liable
20 its depositors IN addition 20 such
stock held by said stockholders one time
the par value thereof and no more pro-
yided. further, that persons holdtng
stock as executors, administrators. guar
dians or trustees shall not be personally
subject 10 liability a. stockholders but
the estates and funds In their hands
shall be liable IN like manner and TO the
same extent as the testator. tntestate.
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. ?. 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 20 do business In this
State h hereby authorized and empower
ed 10 participate In the assessments and
benefits and 20 be governed by the regu-
lations OF the bank deposltors' 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
its Board OF Directors authorized by
its stockholders, duly certified by It's
president and secretary, asking 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 rigid
examination OF the Affairs OF such bank.
and II II T. found 10 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
treasurer bonds or money as hereinafter
provided. Issue TO such bank n certifi-
cate stating In substance that said bank
this act aud that It's depositors are
guaranteed by the bank deposltors guar
anty fund OF the State OF Arkansas. as
herein provided
Sec g. Before receiving such certi-
flcate from the bank commissioner. each
bank entitled 10 the same according 70
Section . OF this act shall. as an evil
dence OF good faith. deposit and shall
at all times maintain with the State
treasurer (subiect 10 the order OF the
bank commissioner when counterslg gned
by the auditor Of State) United states
bonds, Arkansas State bonds. improve
ment district bonds. municipal bonds
school district bonds. within the state or
Arkansas. TO the amount OF five hundred
dollars for every one hundred thousand
dollars or fraction thereof OF fits average
deposits eligible 10 guaranty Oess It's
caDftnl and surplusl 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 20 the bank. one
to the auditor or State. and ons 10 the
bank commissioner. Such bonds shall
bear the certificate OF the attorney
general OF the state or Arkansas stat
Ing that in his opinion said bonds have
been legally issued. said bonds. or cash
en- lieu thereof. shall not he charged out
OF the assets Of the bank except as
hereinafter provided. but shall be car
ried Ia its assets under a heading
Guaranty Fund with State Treasurer
until such time as said bank shall de-
fault in payment OF assessments here
matter provided for In lieu OF bonds
the l.ank 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 20 above each bank shall pay IN
cash an amount equal TO one-fourth OF
one per cent OF Its average deposits
eligible 10 guaranty. less its capital and
Z sHNs A..
to the bank deposltors guaranty fund
with the state treasurer, subject TO the
order OF the bank commissioner and
| the 2tate treasurer shall issue his re-
| ceipt therefor in trlplicate one 20 the
| bank. one 70 the auditor OF State. and
| one to the bank commissioner: provided
! that any bank seeking 20 participate IN
| the assessment aud benefits OF this act
| after the first annual assessment fot
| the year 1915 shall have been made
| shall be assessed an amount apDroNi-
/ uately equal 20 its pronortionate share
/ OF the money then IN the bank deposit
| tors guaranty fund after all losses shall
/ have been deducted. the amount OF such
assessment TO be determined by the
hank commissioner The last above
| mentioned assessment. however shall
| rot be required OF new banks formed by
| tile reOrganization or consolidation OF
with the terms Of this act Upon the
| deposit and acceptaucc OF such bonds
] Cor money! ana the payment or said as
| sessusnt then the payment OF such de-
nosits OF said bank as are specified IN
| thfs act shall he guaranteed as nerein
provided and the bank entitled to It's
! certificate.
Sec 4. The bank commissioner shall
during the month or January OF each
/ wear. rnake assessments OF onefourth or
| one per cent OF the average guaranteed
| deposits. less capital and surplus. OF
| each bank until the cash fund ac-
| cumulated and placed to the credit Of
| the bank depositors guaranty fund shall
| be approximately five hundred thousand
| dollars over and above the cash de-
| posted In lieu OF bonds. when he shall
| discontinue such assessments should
| such fund become depleted the bank
| commissioner shall make such additional
| assessments from time 20 time as NAV
become necessary to maintain the same.
| provided. that not more than six such aa.
| sesguputs of one-tOurth Of one per cent
! each shall be made IN any one calendar
| year The treasurer or the State OF Al.
! iSnrsas SHALL hold t'ie fund iu the state