The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1916-11-02
Fund. the State Banking Roard shall issue

49, etDoAS " vi ~
bearing Interest at the rate Of six pc
cent per annum, which certificates shal
be signed by the secretary and counter
signed by the treasurer OF said BoarC
and shall be negotiable; said certificate!
shall be consccutiveiy numbered and shal
be paya bic out Of the DepositOTs' Guaran'
" Fund upon call OF the treasurer Of th'
state Banking Board, IN the order Of thcil
issue, In Ike manner as state warrant
are paid by the state treasurer. A copy Of
said call shall be mailed under first class
postage TO the holder OF every such Ger.
t~.liicate, at his last known pOstof1ce ad-
dress and three days thereafter interest
shaiI cease upon all certificates so called
for payment. Provided, that II any such
Certificate Of Indebtedness shall be draw WI
In payment Of a deposit for which a con-
tract rate Of Interest existed between
Sucn failed bank and such depositOr, nc
higher rate shall be allowed than was
provided for by sHid contract.
Sec. Z. Certificate OF Indebtedness Paid,
IIow-The State Banking Board shall,
rom year 10 year levy special assessments
as ~herCiUbcfOre provided, against the cap
ital stock Of all banks, subject TO the pro
visions Of this act, until such certificate
OF indebtedness, with the accrued interest
thereon, shall have been fully paid. and
uutil the Depositors' Guaranty Fund shall
be restored 10 an amount equal to two
per centum OF the average daily deposits
OF said banks.
Sec. 8. Assets Of Failed Banks-How
hpplcd-As rapidly as the assets Of
failed banks are liluldatcd and realized
upon by the public examiner. the pro-
cecds thereof shan be applied first after
Inc dyTncD OF the XpenSes OF liquida-
ton. to the repayment 10 the DepOsitors'
Guaranty Fund Of all money paid out OF
SAID fund 10 the depositors Of such failed
bank and the remainder, II any, shall be
applied by the state Banking Board to-
ward refunding any special assessment
levied by reason Of the failure OF such
l1nldated bank. after the Depositors'
Guaranty Fund shall be restored 10 two
per ccntum OF the deposits as herelnbefore
provided.
Sec Q Assessment Suspeudpd-When-
Whenever the DcpOsitors' Guaranty Fund
shall reach an amount equal to three per
N"utum of Ia" average daily deposits Of
HII banks subject TO the provisions Of
this act. and after all deposits OF failed
n2nfs have been fully paid INC all Ger
il0o1teS OF Indebtedness redeemed. the
state Banking Board may suspend the
payment Of annual assessments as provid-
81 for In Section two (2), until the said
ilnd shall be reduced 10 two per Ccntum
or the average daily deposits Of said
banks. Provided, that no annual assess
hlrnt hcreinbofore levied shall be suspend
ed untlI notice Of such suspension SHAH
have been issued by the state Banking
Board TO said banks subject thereto.
sec. TO- stat" 10 Have First Lien on
Assets The state OF South Dakota shall.
after the expense Of liuuida tiOu Of any
such failed bank has been pald. have a
hrSt lien upon the proceeds OF the assets
Of such bank and the liabilities Of all
Nl'''hIblVriS, tlDtNTS ma directors tIprG-
~. as well AS against all other persons.
JrUS or corporations obligated to the eaid
bank, and the attorney general shah
upon REQUEST of the public examiner. en-
'"rTe the provisions Of this section I'm
~" name Of the State Of South Dakota
FOR ne benefit OF the Depositors' Guar
antv Fund.
|Ssc II New NEUTRALITY-SUSPICIOUS. Lev
'cd-How-AIl banks organized under
'he laws OF this state, subsequent TO the
tablng effect Of this act, or less than one
r"hr previous thereto, shall pay into the
peuos'tors' Guaranty Fund three per cent
of the amount OF their capital stock when
they open for business, which amount
sha constitute a credit fund. subject ~
adjustment, on the basis OF it's deposits,
as provided for banks csta bl,shcd one
yePr o more, which adjustment shall be
made one year from the da te such back
commenced business, and thereafter the
denos't computing date of such bank shall
n tne same as other banks subject to the
provisions OF this act; Provided, said
hree per cent payment shall not be re-.
qu!fed OF new banks formed by the rS-
c.ganiza ton OF banks which have previ.
ously compiled with the terms of mis-
act.
Sec. IL Deposits in National Banks
located in the State OF South Dakota,
may secure sor ia deposItors the proter-
tion provided for Jepositors in state
banks, by this act upon making applica
ION In writing to the State Banking Boari
and submitting its account and assess
to examination by the public examiner
OF THIS sta te. in IKE manner as now pr
Vlded by law for state banks. II the
pubic shall approve OF the COD
ditions OF such National Bank. its presl-
dent and secretary sh9ll, with the approx
al or the hoaru OF directors thereof enter
into n contract with the Safe Banking
Board ag.eeinH to transmit Reports Ur
the condition Of such bank whenever CALI
ed for by the luhIc examiner and to sub
NIT 10 said public examiner, as often as
he may require, the accounts and asset,
or such bank, for examination. The said
contract sfrah also condition that the said
national bank VIII honor all asSesssmentS
FOR Ine DepOsitors' Guaranty Fund, ano
in all other respects comply with and De
subject to the provisions OF this act. reiat-
inh 10 sta.e banks. insofar as the sa ma
not IN c~onriict with the laws OF the
United States: Provided, that II, after
any such contract shall be entered lnt1
Board. the United states Congress
mall enact a law for the insurance OF H.
In National Bank, or II the
comptroller of the Currency shall pro-
me provisions OF this Act, or II sucn
shall, OF its own v~olltion, desire 10
withdraw and no longer claim the pro-
OF the Depositors' Guaranty Fund
relea sed nv the State Banking Board
from all liability to further assessments
under this Act, and the Depositors'
losses to the depositors OF such bank,
but no such bank shall be released from
conditions of this Act or its contract
With the State Banking Board until after
I has made application in writing and
shall have received a release In regular
'orm from the State anking Board
signed by It's President and Secretary.
which shall be issued only I'm pursuance
" an ton OF such bank by the
public examiner, showing the said bank
o be solvent. Provided further. that all
assessments which shall nave been paid
o the Depositors' Guaranty Fund. by
ny such National Bank, so withdra wing,
which have not been paid and are not
ne to depositors OF failed banks. less
en- per cent OF such assessments. so re-
naming unapppopriated, shall be refund
q to said bank but no such bank shall
e allowed to withdraw until all assess
nents levied against II as hereinbefore
an amount equal to It's proper
OF all outstanding c~ertifica ties
Z Indebtedness, and all interest due shall
ave been paid as provided by this Act.
Sec. IL. National Bank Must Deposit
,onds-No National Bank shall be adj
1itted TO participate In the benefits OF
Depositors' Guaranty Fund for the
IL its dep1sitors, unless Ii shall
ave deposited with the Treasurer Of the
tate Banking Board, bonds OF the United
of the State OF South Dakota or OF
county,, school district or municipality
Z said state. In an amount equal 10 FIVE
er centum OF the average daily deposits
Z such bank. during the preceding year.
ut such bonds shall not be accepted. until
fter they have been examined and APP
roved by the attorney general, when