Pierre weekly free press. (Pierre, S.D.) 1889-19??, 1916-10-26

to the public examiner for the nles OF his
p paass a a an5y Of fe sneS c sIRy 81 1 pIedse e', oi
security as may have been Issued there
with, and if such bills payable Is con n.
I:nued by renewal r either aad in a q, gr sseS re or
n neSn,ite ob lSsn n and eo oaad "a PIE R,sd STbI Gi
sSa Inc forsh; !, iha, lnnsad t T.; f y baek
Is borrowing habitually for the purpose OF
reloaning, the public examiner may re-
quire such bank TO pay off such borrowed
money.
Nothing herein contained shall prevent
any bank from rediscounting In good
faith and endorsing any Of its nego.iaoae
its capital stock.
1t shall be unlawful for any bank to
issue its eertifica ties of deposit for the pur-
pose of borrowing money. In all cases
issue, its .'' abills = pa Su.aH%ea and shall show
the true amount of borrowed money on It's
books and in all reports and statements
visions of this act, under bills PAYABLE"
No bank shall make partial payments
upon certificates Of deposit;
Any officer of a bank in this state VIC.
lating the provisions of this section. shall
be deemed to be guilty of a
and upon conviction shall be subject to a
nor more than three hundred dollars In
the discretion Of the court.
Sec: SS. Checks-Certiaed When-ls
Slltl Ut Unlawful lOT any IN NASAN'
agent Of any bank doing business under
this act to certify any check. draft or or
der drawn upon the bank unless the per.
son, firm or corporation drawing such
with the bank at the time such draft.
check or order is certified an AMOUNT o.
such check. Any check. draft, or order
so certified by the duly authorized Of
fcer shall be a good and valid obligation
Sec, "a, Rad iIehts-Au debts due to
any bank on which the interest is past
due and unpaid for a period OF six months,
process of collection. shall be considered
bad debts and shall be charged or to
profit and loss account, IN no ; case snals
standing be allowed as an asset of any
bank.
Sec. 40. Undivided Profts-Surplus
of a bank may declare a dividend from
so much of it's net profits. after proV1d,
ing for all expenses. losses, interest," ana
they shall deem expedient; but before
any such dividend is declared not less
than one-tenth of the net profit OF the
such period as is covered by the dividend,
shall be carried to a surplus fund, until
such surplus fund shall amount to twenty
per cent of the capital stock. Any losses
sustained by any bank in excess OF Its
undivided profits may oe charged to its
surplus account. provided that its surplus
luI1Q Sfltlll thereafter " eiIIip = v
declared or paid by any such bank unit
its surplus fund shall be fully restored
Sec. Al. Dividends Not to be Declared,
When-No dividends shall be paid to any
stakeholder of a bank except out OF the
: net profits properly applicable thereto.
and which shall not in any way impair or
diminish the capital: and if any such shall
be paid, every stakeholder receiving the
same shall be liable to restore the full
amount thereof unless the capital be sub
> sequently made good; and if the directors
. of any bank shall pay a dividend when
of insolvency, or when they do not nave
! good reason to believe that there are suf-
. fcient net profits properly applicable
thereto, without imDairing or diminishing
the capital, they shall be jointly and sew
: orally liable to the creditors of the corpo-
i ration at the time of declaring such divi-
y Loans; Overdrafts-Each and every officer
| and director of any bank shall be held
= personally liable for ali excessive loans
$ made by his bank, in such amount as
, such loan may be in excess of the amount
limited by law, and his liability thereon
. was endorsed by him, but to the extent
only of the excessive amount. He shall
= also be held personally liable for any and
r all overdrafts allowed by his bank.
s Sec. 43. Embezzlement Punished
d Penalty-Every president. director, cash
f Ter, officer, teller, clerk or agent of any
T piilh wiz SiIlDtLLISS, dDStIdclS vi VIII
t fully misapplies, or wrongfully diverts tc
I his own use through the use Of accommo.
v dation notes or credits, any of the moneys
t funds, credits or property of the bank
whether owned by 1t or held in trust
or who wrongfully withholds payment OF
: remittance of the proceeds of any collec-
who without authority of the directors is
S sues or puts forth any certificate of de-
e post. draws any order or bill Of exchange
: makes any acceptance, assigns any note
bond, draft. bill of exchange, judgment
or decree, mortgage, or who makes any
false entries in any book, report or state,
d provided for or contemplated within thu
provisions of this act. with intent in either
r case to injure or defraud the bank OF
any person or corporation, or to deceive
any officer of the bank, or any other per
son.. or anyone appointed to examine the
6 aftalrs of such, bank; or any person who
clerk or employe in the violation Of this
Il section shall be likewise guilty, and upor
n conviction thereof shall be imprisoned il
n than fye nor more than twenty Years.
$ Sec. A. Charter-How Forfeited-If the
board of directors or a quorum thereof
e or any committee of such board of any
q bank, shall knowingly violate or knowing.
~ permit any Of the officers. clerks OF
employees of the bank to violate any o
e the provisions of this act, such director.
e shall Jointly and severally be liable fol-
: the amount of the loss sustained thereby
and If after a demand made by the pub.
Z 49, 9A.li laI " ii pGfloC
OF thirty days to make good any loss OF
damage resulting from such acts. or con.
: tinue such conduct, 1t shall constitute suf.
O fcient reason for the forfeiture Of thu
charter Of such bank. and 1t shall there.
upon be the duty of the public examine,
to institute proceedings to enforce sucI
n forfeiture and to secure a dissolution O
v its existence and thereafter the bushes.
s and affairs of such bank shall be disposed
OF In the same manner as herein provided
: for the disposition of insolvent banks.
Any. bank which neglects or fails t.
n open. for business within one year from
the date on which its charter was issued
biEties in full and discontinued bushes.
d operations for a period OF one year, shall
e be deemed to have forfeited It's charter
and to have no further legal existence.
e Sec; 45; Liability Of stockholderswTh,
stockholders OF every bank shall be fndf.
r vidually liable, equally and ratably. no,
one for another for the benefit Of thu
creditors Of the said bank to the amour,
n Of thsi. stock at the par value thereof
r in addition to the amount invested in suct
G stock. Such liability shall continue TO,
one year after any transfer Of stock. a.
e to the. affairs of the bank at the time
k and prior to the date Of the transfer. Blu,
e persons holding stock as executors, I'd.
ministrators. guardians or trustees, anc