The Springdale news., 1914-07-03
FOR ACT No. ?.
 AGAINST ACT No. 2.
Be If Enacted by the People Of the State of Arkansas.

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 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 to its 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 dians or trustees shall not be personally subject to liability stockholders. but the estates and funds in their hanI. shall be liable in like manner and 10 the same extent the testator, fntestate, 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. 2. Any incorporated State bank trust company 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- iations of tho bank deposftors 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 of its Board of Directors authorized hv its stockholders. duly certified by its president and secretary asking there for Tn form to be provided by the bank commissioner, shall be filed with said bank commissioner who shall upon the filing of such resolution. make rigid examination of the affairs Of such bank and IT It Is found to be solvent to he properly managed and conducting its business in strict accordance With the barking law, he shall. after the bank shall have deposited with the State treasurer bonds or money as hereinafter provided Issue to such bank certiff- cate stating in substance that said bank has complied with the provisions of this act. and that It's dAnaeftars are guaranteed by the hank depo-ftors guar anty fund of the State Of Arkansas as
 Sec. 2 Before recefvfng such certf- ricate from the bank coramf esfaner. each bank entitled to the same according tn Section of this act sI8IlZae Zes.f- deuce of good faith deposit and shall at all times maintain with the State Urea strer. =fsHbteet to the order nf the bank commi ssinncr when counters4 gl3ea hv the auditor af State4 1sfHfe4 States bonds Arkansas State haHdsZ ZlHanra8a. n.ent district bonds mHHie#rHt bonds school district bonds within the State Of Arkansas to the amount af ftEe hundred dollars for every =fsIfsIIrezI= thousand dollars or fraction thereof Z8f its average deposits eligible ta=e =eaarantf.fiess It's capital and esrpIHs4 shown hv fts last four published statements. provided that each hank shall sa deposit not less than five hundred dollars and the State Urea surer 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 shah bear the certificate Of the attorney general of the State of Arkansas stat ing that in h#s opinion said bonds have been legally issued Said bonds or cash in lieu thereof shall not he charged out of the assets of tho bank except as hereinafter prov ide1. bat shall he car ried in it's assets under heading Guaranty Fund with State Treasure-'' until such time as said bank shall de fault In payment of assessments here matter provided fer. Tn lieu of bonds the bank at it's option. may deposit money. which deposit shall he exehange- able for acceptable bonds when the ha ak elects to make the substitution In ad- dttiHn to above. each hank shall pav if3 cash an amount equal to ope-fourth Of eligible 10 guaranty loss its capital an1 surpluS. and the same shall he nIedtt.d to the bank dePss tors guaranty fund with the State treasurer. subject to the order nf the hank commissioner and the State treasurer shall issue his re- ceipt therefor In triplieate, one to the bank one to the auditor of State and one to the bank commissioner. provided that any bank Seeking ta participate {n the assessment ani benefits of this act after the first annual assessment for the year 1915 shall have been male shall be assessed amount snproxi- matelv equal to fts proportonate share of the money then in the bank depnef- tors guaranty fund after All losses shall have been deducted the amount nf 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 compiled with the terms Of this act Gpon the deposit and acceptance of such bonds Cor money) and the payment of said as- sesament, then the payment of such de- posftS of said bank as are specified in this act shall 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 each bank until th- cash fund ac- cumulated and placed to thu credit of the bank depositors guaranty fund shall be approximately five hundred thousand 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 to time as may become necessary to maintain the same; pfoVlded that not more than six such
 
 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 to the order of the hank eommissioner. to be conntersigned by the auditor of State 1fthe Tor the payment of depositors Of failed t99fahteod banks. as hereinafter pro- Nlded The State treasurer shall credit t..ls tund quarterly with it's pfaBeHtion- ate ate snare or interest received from StatA AA4+NSt c0HNtifpH nj tho tp 1tp or interest provided by law upon the aver aFs daily nalanee of said fund.
 sec. D. When any bank shall be found to be fnsolveut by the bank commis- San( sioner. he .osl'3, shah take charge of such nank as provided hy law. and proceed to Wlhd UP its affairs. and he shall. at the earliest moment. issue to each de- posltor a certificate upon proof of claim, bearing six per cent interest per ahnum upon which dividends shall bc entered when paid except where con tract rate exists on the deposit, in which case the certificate shall bear interest at the contract rate notice If hn 1 1t11n mt Nr,