Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1916-10-28

anu whlcn snail not In any way impair OF
! diminish the capital; and II any such snaI
/ be paid, every stockhoder 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 shah pay a dividend when
/ the corporation is insolvent or IN danger
| OF insolvency, or when they do nor nave
/ good reason TO believe that there are Suf-
| hcient net profits properly applicable
thereto, without impairng 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-
/ dcnds. 10 double the amount thereof.
Sec ~ Officers Liable-ENcegsosive go
and director OF any bank shah be held
4 personally liable for all excessive loans
made by his bank, in such amount as
I such loan may be in excess of the amount
limited By law. and his liability thereon
/ shall he the same as though such paper
was endorsed BY him, but 10 the, extent
/ only Of the excessive amount. He shall
also be held personally liable for any and
ali overdrafts allowed by his bank.
Sec 49, EmbezZlement Punished
/ Peualtv-E Every president. director cash
4 Ter, officer, teller, clerk or agent Of any
I bank who embezzles, abstracts or will
{ fully misapplies, or wrongfu'ly diverts TO
! 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 il or held in trust,
( or who wrongfuliy withhOlds payment or
remittance of the proceeds Of any collec-
I tion which may come into lis hands. or
who without authority Of the directors is
sues or puts forth any certificate OF de-
post. draws any order or bin OF exchange,
makes any acceptance, assigns amy note,
I bond, draft, bill of exchange, judgment
or, decree mortgage, or who makes any
false entries in any book, report or state
| meut OF the bank or report or statement
provided for or contemplated within the
provisions OF this act. with intent in either
case TO irjure or defrGud the bank or
any person or corporation or 20 deceive
any officer Of the bank or my other per-
SON or anyone appointed TO examine the
aualrs oi such bank; or any person who
with like intent aids or abets any officer
clerk or crplOyc In the violation Cf This
section shall be likewise guilty. and upon
. conviction thereof sha3l be impr. sonCd in
the state prison for period OF not less
] than HVe nor more ti0u twenty wears.
Sec A. Chartor-low Forleited-if tho
board or directors or quorum thereof.
or amy committee Of such board Of any
bank, shali knowingly violate or itGOWIne
( ly permit any Of the officers. clorxs or
Z employees OF the b9r', TO violate any Of
( the provisions OF this act, such directors
I shall jointly and seVer3lly be liable for
the amount Of the loss sustained thereby
ana II after demand made by the puO-
lie examiner they shall fail for period
Of thirty days 20 make good any loss or
damage resulting from such acts. or con-
I tinue such conduct IL shall constitute SUI
hctent reason for the forfeiture OF the
I charter or such bank ana II shall there
upon be the duty of the public examiner
70 institute proceedings to enforce such
/ forfeiture and 20 secure a dissolution OF
its existence and thereafter the business
of in the same manner as herein provided
for the disposition of insolvent banks.
Any bank which neglects or fails TO
open for business within one year from
the date on which its charter was issued,
or any bank that has lquidated its la
blitics in full and discontinued business
operations for a period Of one year, shah
be deemed to have forfeited it's charter,
and to have no further legal existence
Sec 45. Liability OF Stockholders-The
stockholders Of every bank shall be indi-
! vidually liable. equally and ratablv not
one for another for the benefit Of the
creditors OF the said bank 20 the amount
Of their stock at the par value thereof,
in addition 10 the amount invested i'm such
stock Such liability shall continue for
one yeaT after any transfer OF stock, rs
70 the affairs Of the bank at the time
and prior TO the date of the tranefcr BUT
persons holding stock as executors. adj
mnistrators. guardians or trustees. and
persons holding stock as collateral secure
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-
tered thereon, shall not be personally
liable as stockholders, but the assets or
funds IN their hands constituting the
b, trust shall be liable to the same extent
as the testator, intestate, ward or per-
son interested in such trust fund would
be if living, or competent TO act and the
person pledging such stock shall be
deemed the stockholder and liable under
this section.
sec. 46. Shares OF Stock-When not
Transferra ble-The shares of stock Of an
Incorporated bank shall be deemed per
sonal property ard shall be transferred
on the books OF the bank in such manner
as the bylaws thereof may direct. pro-
vided that the mere delivery from one
holder TO another upon proper assignment
OF the certificates of shares of stock
shall not be deemed to be transfer OF
ownership of such stock within the mean
ing Of the provisions OF this act
No transfer of stock shall be valid
while the bank is under notice to make
good an impairment of its capital as
provided herein, nor until such impair
ment shall have been made good
All transfers of stock shall be certified
to the public examiner Immediately fol-
lowing such transfer.
Sec. a. Transfer OF Stock by Debtor
TO Bank-Efect--No transfer Of stock OF
any bank formed under this act shall be
valid as against the bank so long as
the registered holder thereof shall be
! liable, either as principal, debtor, surety
or otherwise, to the association for any
debts which shall be due and unpaid; no;
in such cases, shall any dividend, inter-
est. or profits be paid on such shares, sc
long as such liabilities continue: but al
such dividends, interests and profits, shall
be retained by the bank, and applied to
the discharge OF such liabilities; and nc
stock shall be transferred upon the books
OF the bank without the consent OF ma
Nrity OF the directors, while the regis
tered holder 10 indebted to the bank
See 4S. Deposits by Minors and Un-
married Females-Trust Deposits-When-
ever any deposits shall ne made in any
bank by and in the name of any minor,
or female being or thereafter becoming
a married woman, the same shall be held
for the exclusive right and benefit OF such
minor or female and free from the con-
troll or lien OF all persons whomsoever
except creditors. and shall be paid with
any interest due thereon. 10 the person in
whose name the deposit shall have been
made ana the rereint of such minor or
female shall be n sufficient release or
discharge for such deposit TO the bank
Whenever any deposit shall be made by
any person In trust for another. and nc
other or further notice OF tho existence
and terms Of a legal and valid trust shall
have been given IN writing to such bank