The Nevada County picayune., 1914-06-26
Bank Guaranty ACT No. 2 PROPOSED BY INITIATIVE PETITION
 ACT No. 2.
BANK DEPosIroRs' GUARANTY LAW

BANK DEPOSITORS GUARANTY LAW A Bill for an act to be entitled "An Act | Providing for the Security of Deposi-
 tors in the Incorporated Banks of Ar
 kansas. Creating the Bank DepOsi-
 tors Guaranty Fund of the State of
 Arkansas. and Providing Regulations Therefor, and Penalties for the Viola
 ton thereof"
 FOR ACT No. 2
 AGAINST ACT No 2.
 Be II Enacted by the People of the State of Arkansas:
 Section 1. The stockholders of every bank. doing business in this State. shall be held individually responsible, equally and ratably 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 amount invested in such stock; provid | ed. however, that stockholders of such l banks or trust companies have ac cepted and are participating in the bene- | fits of the bank guaranty plan herein after provided for, shall only be liable | to it's depositors in addition to such | stock held by said stockholders one tune | the par value thereof and no more pro vided, further. that persons holding stock as executors. administrators, guar 1 dans or trustees shall not be personally | subject to liability as stockholders but | the estates and funds in their hands shall be liable in like manner and to the | same extent as the testator. intestate, l ward or person interested in such trust | funds would be. if living and competent to 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 to do business in this | State is hereby authorized and empower | ed to participate in the assessments and | benefits and to be governed by the regu- | lations of the bank depositors' guaranty l funds of the State of Arkansas herein | after provided for Before any bank shall become guaranteed bank within the meaning of this act. resolution of its Board of Directors authorized by it's stockholders, duly certified by It's | president and secretary. asking there 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 1t Is found to be solvent to be properly managed. and conducting its business in strict accordance with tho 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 certfi- cate stating in substance that said bank has complied with the provisions of this act, and that it's depositors are guaranteed by the bank depostors' guar anty fund of the State of Arkansas. as herein provided
 Sec. 3. Before receiving such certi- fcate from the bank commissioner each bank entitled to the same according to Section 2 of this act shall as an evt- dence of good faith. deposit, and shall at all times maintain with the State treasurer Subject to the order of the bank commissioner when countersignad by the 7uditor 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 0ess it's ! capital 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 shai' 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 1 ing that in his opinion said bonds h. Va been legally issued. Said bonds or ca Sh in lieu thereof shall not be charged out ] or the assets of the bank. except as hercinarter provided, but shall be car , ried in it's assets under heading Guaranty Fund with State Treasirer' until such time as said bank shall de fault in payment of assessments here matter provided for. In lieu of bonds
 the bank at its option. may deposit money. which deposit shall be exchange ablc for acceptable bonds when the bank elects to make the substitution In ad- ditiou to above each bank shall pay in cash an amount equal to one-fourth of one per cent of it's 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 in tripliCate. one to the bank, one Co the auditor of state and one to the bank commissioner, provided , | that any bank seeking to partiCipate iO 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 approNi- mately equal 10 it's proportiOnate sharp of the money then in the bank deposit
 tors guaranty fund after all losses shall , have been deducted, the amount of such bank commissioner. The last above
 mentioned assessment. however, shall , not be required or new banks formed by
 the reorganization or consolidation of 2 banks which have previously compiled , with the terms of this act. lFpon the I deposit and acceptance of such bonds Cor money) and the payment of said as f seSsment then the payment of such de- , poSits of said bank as are specified in , this act shall he guaranteed as herein i provided and the bank entitled to it's
 certificate
 Sec { The bank commissioner shall. during the month of January of each f year. make assessments of onefourth or f one per cent of the average guaranteed = deposits, less capital and surplus, of f each bank uptn the cash fund ac- [ cunulated and placed to the credit of = the bank depositOrs' guaranty fund shall be approx imately five hundred thousand ' dollars over and above the cash de- r posted in lieu of bonds, when he shall - | discontinue such assessments Should f such fund become depleted, the bank
 commissioner shall make such additional a l assessments rom tlasezt2s time as may '- become necessary to fnaiYSffFse stases same - 1 oroVideS InSt not more than six such asA | sassments ot one fourth of one per cent il l each sha1 oe made fin any one cale udar . l year The treasurer of the State of Ar n 1 kansas shall h0ld this fund in the State v | depository haTks as provided by law i- governing other State funds. subject to