The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1916-10-26

security as may have been issued there
with. and If such bills payable is con-
tinued by renewal either in a greater or
lesser amount. a like copy Of such re-
Ne"al obligation and collateral pledge OF
security shall be forwarded 70 the public
examiner forthwith; Provided, further,
th2t whenever il shall appear that a bank
: Borrowing h~abltually FOR The purpose OF
f~e.oAnlng. the public examiner may re-
money.
Nothing herein contained h proven,
any. bank from r~ed!scounting in good
faith and endorsing any OF it's negotiable
paper 10 an amount equal TO one-halt Of
lis capital stock.
issue its certificates Of deposit FOR the pur-
pose OF borrowing money. In al cases
where money is borrowed = bank shall
.SSue It's bills payable and shall show
books and IN all reports and statements
required or contemplated within the pro-
visions Of this act. under bills payable
No bank shall maze partial payments
I upon certificates OF deposit.
Any Office. OF q bank in this state ylo-
!atirs the provisions OF this section, h
De deemed 70 be guilty Of a misds meanor
and upon conviction shall he subject 10 a
fine Of not less than one hundred dollars
nor more than three hundred dollars in
the discretion of the court.
Sec IS Checks-Certiied When-li
shall b unlawful for any Ofncer, clerk, or
agent II any hank doing bus Dess under
this act 20 certify any check. draft or or
der drawn upon the bank unless the per-
son, rrm or corporation drawing such
check, Gra:r or order. has on deposit
with the bank at the tire sue draft,
check or order is certified an amount OF
money equal 10 the amount specined in
such check. Any check, draft. or order
50 certified By the duly authorized Of
1cer shall Be 4 good and valid oolsation
against such bank.
Sec. 50. Bad Debts-Arl debts due 10
any. hawk nm which -fS interest IS IA 81
due and unpaid for q period Of six months
unless The same are well secured or n
process Of collection. shall be considered
bad debts and shall be charged OF tc
profit and loss account. In no case shall
an ove-draft OF more than sixty days
standing be allowed as an asset Of any
bank.
Sec. 40. Undivided ProftS-Su-plus
Funds-Dividerds-The board Of directors
Of a bank may declare 4 dividend from
so much Of its net profits, after proNIc,
taxes accrued, or due from said bank. as
they shall deem eXpedient; but before
any such dividend is declared not less
than ore-tenth q the net profit Of the
bark for the preceding half year. or for
such period as IS covered by the dividend;
shall be carried 70 a surplus fund. until
such surplus !Und shall amount 10 twenty
per cent Of the capital stock. Any losses
sustained by any bank in excess OF lis
undivided profits may b charged TO its
surplus account provided that its surplus
fund shall thereafter be reimbursed from
It's earnings. and nc dividends shall be
declared or paid BY any such hank unit!
us surplus fund shall be fully restored
TO the amount required by law.
Sec. q. Dividends Not TO be Declared.
when-No dividends shall be paid TO any
stockholder 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 II any such shan
be paid. every stockholder receiving the
same shall be liable 10 restore the full
amount thereof unless the capital be sub
sequeutly made good: and II the directors
the corporation is insolyent or in danger
Of insolvency. or when they do not have
good reason 10 believe that there are suf-
fc;ent net profits properly .applica Bile
the c~apital. they shall be Jointly and sew
orally liable 70 the creditors OF the corpo-
ration at the time OF declaring such divi-
dends, 70 doubls he AMOUNT thereof
Loans; Overdraf-s-Each and every officer
and director ~ any bank shall be held
personally liable for all excessive loans
made by his bank. in such amount as
such loan may De in excess Of the amour,
limited by law. and his liability thereon
shall be the same as though such paper
was endorsed by him, but TO the extent
only OF the excessive amount. He shall
also be he'd personally liable for any and
all overdrafts allowed by his bank.
Sec. -. ENFORCEMENT Punished
PeraiTN-EEarF PRESIDENT, director, CaSn-
Ter, officer, teller. clerk or agent Of any
baUk who. ewbezZles. abstracts or viii
fully 0~1isapDlies, or wrongfu,iy dive-cs =
his own Usa through the use OF accomnC-
funds. credits or property ~ the b2rE.
whether owned by IL 0~ held in trust.
or who wrongfully withnoIds payment or
remittance Of the proceeds OF any collec-
who without authority OF the directors is
sues or puts forth any certificate Of de-
post. draws any order or bill OF exchange.
makes any acceptance. assigns any note.
bond. draft, bin Of exchange. jgdgne-t
or decree. mortgage. or who AXE any
false entries i'm any book. repor. or state
mant o. the bank or report or statement
Z provided for or contemplated within the
provisions Of this act. with intent in either
case TO inture or defraud the bank or
any person or corporation. or 20 deceive
anv officer Of the bank. or any other per
son, or anyone appointed 70 examine tn
/ affairs Of such bank; or any person who
with like intent. aids or abets any officer,
clerk or eTploye in the violation Of this
section shall be likewise guilty. and upon
conviction thereof h be imprisoned IN
the state prison for a period Of not less
than five nor more than twenty years.
Sec "a. Charter-How Forfeited-rf the
or any committee OF such board Of any
bank. shall knowingly violate or knowing
~ permit any Of the officers. clerks or
employees Of the ban 20 violate any of
! -l- y 4SlClLc W ll44S act sICn directors
shall Jointly and severally he liable fo-
the amount OF the loss sustained thereby.
and II after a demand made BY the pub
lie examiner they shall fail for a period
II thirty days 10 MAKE good any loss or
damage resulting from such acts, or CON
tinue such cordact, IL shall constitute suf-
fcient reason for the forfeiture OF the
charter OF such bank. and il shall there
upon be the duty OF the public examine
% institute proceedings to enforce such
forfeiture and to secure a dissolution OF
its existence and thereafter the bushes
and affairs Of such bank shall be disposed
# in the same manner as herein provided
for the disposition OF insolvent banks.
Any bank which negiects or fails 20
open for business within one wear from
The date on which its charter was issued.
Or any bank that has l~i1uidated it's liza
bilt!es in full n discontinued business
operations for a period Of one year. shall
be deemed to have forfeited its charter.
and 10 have no further legal existence.
Sec. As. Liability Of Stockholders-The
stockholders Of every bank shail be indI-
yidually liable, equally and ratabIy. not
one for another for the benefit OF the
creditors o! 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
20 the affairs Of the bank at the time
and prior 10 the date Of the transfer Bur
persons holding stock as u adj
illustrators guardians or trustees. and
persons holding stock as collateral secur-
~ which stock Of such institution has
not been transferred of record upon the
books thereof TO the name Of the parSop