The Miller press. [volume] (Miller, S.D.) 190?-current, 1916-10-26

to the public examiner for the files of his
Office a duly verified copy Of such bills
payabl and of such collateral pledge OF
security as may have been issued there
with. and II such bills payable is con-
tinued by renewal either IN a greater or
lesser amount, a like copy of such re.
newal obligation and collateral pledge OF
security shall be forwarded to the public
examiner forthwith; Provided, further,
that whenever it shall appear that a bank
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 ia good
faith and endorsing any Of its negotiable
paper to an amount equal to one-half OF
it's capital stock.
1t shall be unlawful for any bank to
issue it's certifica ties Of deposit for the pur-
pose OF borrowing money. In all cases
where money. is borrowed a bank snan
issue its bills payable" and shall show
the true amount of borrowed money on It's
books and in all reports and statements
required or contemplated within the Pre-.
No bank shall make partial payments
upon certificates of deposit.
Any officer of a bank in this state vio-
lating the provisions of this section. shall
be deemed to be guilty of a misdemeanor
and upon conviction shall be subject TO a
fine of not less than one hundred dollars
por more than three hundred dollars In
NliC VI lDc tohil
Sec. SO. Checks-Certiied When-lt
h be unlawful for any officer, clerk, or
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
check, draft or order, has on deposit
with the bank at the time such draft,
check or order is certified an amount Of
money equal to the amount specihed In
such check. Any check, draft, or order
so certified by the duly authorized Of
ficer shall be a good and valid obligation
against such bank.
Sec. 80. Bad Debts-Al debts due to
any bank on which the interest Is past
due and unpaid for a period of six months,
unless the same are well secured or in
process of collection, shall be considered
bad debts and shall be charged on TO
profit and loss account. In no case shan
standing be allowed as an asset OF any
bank.
Sec. 40. Undivided Profts-Surplus
Observation-Disclosures board OF directors
OF a bank may declare a dividend from
so much of it's net profits, after provid,
ing for all expenses, losses, interest ana
taxes accrued, or due from said bank, as
any such dividend is declared not less
than one-tenth Of the net profit OF the
bank for the preceding half year; or for
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 Dy any BANK III ChCSSS vi ~
undivided profits may be charged to its
surplus account, provided that it's surplus
fund shall thereafter be reimbursed from
it's earnings, and no dividends shall be
declared or paid by any such bank until
it's surplus fund shall be fully restored
to the amount required by law.
Sec. Al: Dividends Not to be Declared.
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; n II any sufh saa sa
same shall be liable to restore the full
amount thereof unless the capital be sub
sequently made good; and II the directors
the corporation is insolvent or In danger
of insolvency, or when they do not have
good reason to believe that there are suf-
thereto, without impairing or diminishing
the capital, they shall be Jointly and sew
orally liable to the creditors Of the corpo-
ration at the time OF declaring such divi-
dends, to double the amount thereof.
Sec. AZ. Officers Liable-Excessive
Loans; Overdrafts-Each and every officer
and director of any bank shall be held
made by his bank, in such amount as
such loan may be in excess Of the amount
limited by law, and his liability thereon
shall be the same as though such S paper
only of the excessive amount. He shall
also be held personally liable for any and
all overdrafts allowed by his bank,
P~enalty-Every president, director, CASH
Ter, officer, teller, clerk or agent of any
bank who embezzles, abstracts or will
his own use through the use OF accommo-
dation notes or credits, any of the moneys,
funds, credits or property Of the bank,
whether owned by it or held in trust,
remittance of the proceeds of any collec-
ton which may come into his hands, or
who without authority of the directors is
sues or puts forth any certificate OF de-
pssit, 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
ment of the bank or report or statement
provided for or contemplated within the
provisions OF this act, with intent In either
any person or corporation, or to deceive
any officer of the bank, or any other per-
son.. or anyone appointed to examine the
aftairs OF such bank; or any person who
clerk or employee in the violation of this
section shall be likewise guilty, and upon
conviction thereof shall be imprisoned in
the state prison for a period Of not less
than five nor more than twenty years.
Sec, A. ICharter-How Forfeited-If the
board OF directors or a quorum thereof,
bank, shall knowingly violate or knowing
ly permit any of the officers. clerks or
employees of the bank to violate any of
the provisions of this act, such directors
shall Jointly and severally be liable for
the amount of the loss sustained thereby;
and III after a demand made by the pub
lie examiner they shall fail for a period
of thirty days to make good any loss or
damage resulting from such acts, or con-
tinue such conduct, 1t shall constitute suf-
fcient reason for the forfeiture OF the
charter of such bank, and ii shall there
upon be the duty Of the public examiner
70 institute proceedings to enforce such
forfeiture and to secure a dissolution OF
its existence and thereafter the business
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 10
open for business within one year from
the date on which its charter was issued.
or any bank that has liquidated its liza
bilities in full and discontinued business
operations for a period of one year, shall
be deemed to la forfeited it's charter,
Sec. As. Liability of Stockholders-The
stockholders of every bank shall be indi-
vidually liable, equally and ratably, not
one for another for the benefit of the
creditors of The said bank to the amount
of their stock at the par value thereof.
in addition to the amount invested in such
stock. Such liability shall continue for
one year after any transfer of stock, as
to the affairs of the bank at the time
and prior to the date Of the transfer Rut
persons holding stock as executors. ad-
ministrators, guardians or trustees, and
persons holding stock as collateral secur-
ity which stock Of such institution has
not been transferred Of record upon the
books thereof to the name of the person
or persons holding the same or where a
collateral pledge covering such stock has
not been foreclosed and judgment en-