The log cabin Democrat., 1914-06-18
(fsank Guaranty. ACT No. 2 PROPOSED BY INITIATIVE PETITION.
 ACT No. 3.
BANK pEposrroRs' GUARAE-?z LAW

A Bi1l for an act to be entitled "An Nct Providing for the Security of Deposi- tors in the Incorporated Banks o. Nr- kansas Creating the Bank Deposi-
 tors Guaranty Fund of the State of | Arkansas. and Providing Regulations 1 Therefor, and Penalties for the Viola tion thereof.
 FOR ACT No 9
 AGAINST ACT No. 2.
 | Be rt Enacted by the People of The State of Arkansas:
 Section l. The stockholders of every bank doing business in this State. shall he held individually responsible. equally and ratably and not onef another for all contracts debts and engagements of such bank to the extent of three times
 .he amount of their stock therein, at the par value thereof. in addition to the amount invested in such stock; prov1d- ed however. that stockholders of such banks or trust companies as have dc- ] eepted and are participating in the bene- fits of the bank guaranty plan hereln 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 rided. further that persons hold1n@
 stock as executors. administrators. guar
 dtans or trustees shall not be personally -ubiect to liability as stockholders but
 the estates and funds in their hands
 shaIi be liable in like manner and to the
 same extent as the teStator. inteState.
 ward or person interested in such trust
 funds would be. if living and competent
 to act and hold the estate in his owr name
 Sec. 2 Any fncorporated 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 tho passage of this act
 he authorized to do hrSiness in this State. is hereby authorized and empower
 ad to participate in the assessments ard benefits and to be governed by the regu- fations of the bank depoStors' 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 resolution or it's 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 commissioners who shall, upon t!fe 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 it's business in strict accordance with the barkirg law. he shall, after the bank shall have deposited with the State treasurer bonds or money as hereinafter provided, issue to such bank certifi- cate stating in substance that said bank has compiled with the provisions of this act. and that it's derositors are guaranteed bv the bank depositors' guar anty fund of the State Of Arkansas. ap herein provided.
 Sec. 8 Before receiving such certi- ficate from the bank commissioner. each bank entitled to the same according to dencp' Of good faith. deposit. and shall al all times natntain with the State treasu (subject t6 the order of the bank commissioner when cOuntersigned by the auditor of State, trnited States bonds Arkansas State bonds. improve IT ent district bOnGS. municipal bonds. school HfstrTcf bonds. within the state Of
 trlIansas. t0 the amount of five hundred collars 1or- every one hundred thousand dollars pr fraction thereof of it's average derosits eligible to guaranty Qess it's capital and surplus> as shown by itr Ia st four publFshed statements; provided. that each bank sraIT so deposit not less than five hurr?red dollars and the State treasurer shafT issue his receipt there for in triplicate one to the bank one to the auditor of State. and to the bank commissioner. Such bonds shall hear the certificate Of the attorney general of the state of Arkansas stat ing that in f1S opinion said bonds have been legally Issued. Said bonds. or cash in lieu thereof. shall not De charged out of the assetr Of tl1s bank except herein a fter provided. but shall he car ried in its assets under a heading "Guarantv Fund with State T'rea surer'' until such time said bank shall de- fault in payment or assessments here- matter provided for. Tn lieu of bonds. the bank. ae it's option. may deposit money. which deposit shaff be ex"hanGc- able for acceotable bonds when the bank elects to make the substitution. Tn ad- dition to above, earn bank shall pay in ,.ash an amount equal to one-fourth of one per. cent of It's average deposits, eligible to, guaranty. Tess it's capital and surplus and the same shall be credited to the bank deposftors guaranty fund with the state trea surer subject to the, order of the bark commissioner ana the State Urea shall issue his re- ceipt. therefor in tripacate. to tife bank one to the auditor of State and one to the bank commissioner; provided, that any bank seeking to participat te in the assessment and benefits of this act after the first annual assessment for the year 1915 shah have been made shall be assessed an amount approxi- mately equal to it's proportionate share of the money then in the bank deposi- tors guaranty fund after all losses shaH have been deducted the amount Of such assessment to be determined by the bank commissioner. The last above mentioned assessment, however, shall not be required of new banks formed by the reorganization or consolidation of banks which have previously complied with the terms of this act Upon the deposit and acceptance of such bonds
 Cor rnoney) and the payment of said sessment then the payment of such de
 rosits of said bank as are specified In this act shaR be guaranteed as herein provided. and the bank entitled to it's certificate.
 Sec. 4 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 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 posited 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 to time as may i become necessary to maintain the same, | provided, that not more than six such as | easements of one-fourth of one per cent i each shall be made in any one calendar l year. The treasurer of the State of Ar 1 kansas shall hold this fund in the State | depository banks as provided by law l governing other State funds, subject to l the order of the bank commissioners to 1 he countersig gned by the auditor of state l for the payment of depostors or failed 1 guaranteed banks, as hereinafter pro l vided The State treasurer shall credit | this fund quarterly with its proporuon- | ate share of interest received from Stat" l s,fxR nm