The Miller press. [volume] (Miller, S.D.) 190?-current, 1916-11-02

onward to the public examiner FOR the
Ilies OF his office a copy of such Judgment
CLERK rendered properly certified by the
county In which such bank operated.
sec. 20. Banks May be Placed in the
s1anos or Public Examiner-Any bank
10 uoing business under this act, may place
81 the public examiner by posting a no.
ice on Its front door as follows: s"This
oank Is IN the hands of the public examin-
tic. Immediately ,upon posting such no.
eice such bank shall notify the public
examiner of such action. The posting of
sucn notice or taking possession of any
pan oy the public examiner, shall be suf-
OF Whatever nature in the possession OF
ene pubic examiner, and shall operate
as a bar TO any attachment proceedings.
ana any attachment lien against sue
mex preceding the taking Of such possess
sion by such examiner, shall be thereby
released and dissolved.
For each and every day the public ex-
amlner shall be so placed in possession Of
the bank. such bank shall pay to the De-
partment Of Banking and Finance a fee
OF hve dollars; all such fees to be paid
by the Department of Banking to the
state treasurer for the credit of the Con-
tlngent Fund of this department.
Sec. 80. Deposits Delned-For the pur-
pose Of this act, the term deposit" or
deposits" shall be construed to mean
oCpoSilS subject 10 CncCk, QlNlOenuS
unpaid" Savings deposits special de,
posits." trust deposits" certified
checks,' cashiers checks" "due to
other banks" Except overdrafts on cor
respondents), demand certificates of de-
pcsit," time certificates of deposit" and
collections made but not remitted;" pro-
vlded, that when any bank has borrC wed
money on its bills payable, which by the
grants permission to ths loaning bank
to appropriate and apply any credit bal
ance which the books of the loaning
banks show to be due or owing to the
bills payable without regard to the date
OF maturity thereof, the money received
on such bills payable by such borrowing
bank shall be deemed deposits within
the meaning Of the term deposit" as
herein defined.
Sec. 81. Cash Reserve-Percentage-
How Determined-Every bank shall keep
on hand at all times at least twenty per
cent OF its total deposits, Of which said
portion as the board of directors may
determine, may be on deposit in banks
approved by the public examiner as re-
serve banks, which banks shall at all
times keep on hand at least twenty-five
per cent Of their total deposits in lawful
money or on deposit in banks subject to
the approval of the said public examiner,
as reserve banks.
Cash items shall not be considered as
a part of the reserve OF any bank AND
any overdrafts on correspondents which
may exist, shall be deducted from the to-
tai amount OF cash and due from banks"
before the reserve percentage shall be
computed. The percentage Of reserve
Sna1i be ,S computed After tn 'h making f1a;0"t ths
deductions ~hereinbefore required, if neces-
sary. the total net amount Of cash and
due from banks shall be divided by the
and the result shall be the percentage Of
reserve on hand: un n
Whenever the reserve OF any bank sha III
be kept, such bank shall not increase Its
loans or discounts otherwise than by dis
counting or purchasing bills Of exchange
public examiner shall notify any BAR
whose reserve may be below the amount
required herein, to make good SUCH re-
serve, and in case the bank fails for thir-
ty days thereafter to make good such re-
serve, the public examiner Is hereby au-
thorized to take charge of and to wind
up the affairs Of such bank.
Sec. 80. Loans-Amount Limited-No
individual, firm or corporation transact
ing a banking business In this state, snail
loan TO any single corporation. firm or in
dividual, including in such loans all loans
made to the several members OF such cor
poration, firm or co-partnership, more
than twenty-five per cent of the paid up
capital and surplus of such bank. And
several stockholders of any bank includ-
ing any and all liabilities OF any firm or
corporation in which such stockholders
may be interested, to such a bank, exceed
said bank. But the discount of bills Of
exchange drawn In good faith against
actually existing values, and the discount
of commercial paper actually owned by
the person negotiating the same shall not
be considered as money borrowed by such
person.
Sec. "a. Same-Penaity-Any officer, d.
rector or employe of any ban transacting
a banking business in this state, who shall
knowingly permit or allow shareholders
Of such bank to at any one time become
ind to such bank In a total sum ex-
ceeding fifty per cent of the paid up capi-
tai of such bank, as covered by section 33:
shall be deemed guilty of n felony, and
upon conviction thereof shall be subject
dollars, or by imprisonment not to exceed
three years in the state penitentiary, or
both in the discretion of the court.
Sec. 35. Loans to Members-Offcers-
dividual transacting a banking business
in this state, shall be permitted to carry
any note or obligation of n such part
nership or firm or individual Of any OF
the member of such partnership or firm
as any part of the assets of the bank. n
no officer or employe OF any corporation
t~ransacting a banking business In this
state shall be permitted to borrow any OF
the funds of the bank upon his W note
or obligation without having first obtained
the approval Of a majority OF the board OF
directors OF the Dank 10 edcn sPeCinc ,odh'
and the approval, if obtained, shall be
properly recorded In the banks minute
book. No such cams shall be made with
out ample collateral or a responsible en-
dorser, and each and every loan SO MADE
shall be Immediately reported In detail
to the public examiner.
Any individual member OF a firm, part
nershlp, officer, director or employe who
shall violate the provisions u tn,s section
shall be deemed guilty of embezzlement OF
the funds of said bank to the cxtent OF
said note or obligation so given. and on
conviction thereof shall be punished by
a fine not exceeding one thousand dollars
or Imprisonment in the penitentiary not
to exceed five years., or potn IN the uis-
erection of the court.
Sec. sc. Investment of Funds-Certain
Loans Prohibited-No bank shall employ
it's moneys, directly or indirectly, In trade
or by buying oil. selling goods,
chatteIs. wares and merchandise, and
shall not invest any OF Its funds in the
stock OF any other bank or corporation,
nor make any loans or discounts on the
stock, nor be the purchaser nor holde
of any such shares unless such security
or purchase shall be necessary to prevent
loss upon a debt previously contracted in
good faith: and stock so purchased or
ACQUIRED shall, within six months of the
time of it's purchase, be sold or disposed
of at public or private sale; after the
expiration OF six months any such stock
shall not be considered as a part OF the
assets of such bank.
Nothing herein enacted shall be con-
strued to prevent any. pank existing un-
der the provisions of this act from quail
tenn and purchasing shares of stock Of the
Regional Banks, in accordance with the
federal statutes, except that such banks
shall be in all other respects subject to
the provisions Of TINS nro aT5,i FROM, hold
;ng md, selling all kinds Of property which