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

files OF his office a copy OF surb ,udgmen,
50 rendered. properly certified By the
clerk Of the court within and for the
0ount! IN which such bank opera ted.
see. 20. Banks May De Placed in tbs
LANDS or Public ENamirer-Any bank
uoihg business under this act. NAV place
n ~ aIalrS ana assets under the control
OF 'he public examiner by posting a no.
tINe on It's front door as follows. This
oanK Is IN the hands of the public examin-
eI, Immediately upon posting such no.
e eUe SuSh oank shall notify the public
examiner OF such action. The hosting OF
such notice or taking possession OF any
edhk oy the public examiner, shall be suf-
nslent TO place all its assets and property
~ "naifNer nature in the possession OF
we pUoAc examiner. and shall operate
as a par TO any attachment proceedings.
ana any attachment len against such
properly, acquired within thirty days
neAt preceding the taking Of such posses
SION 10y, such examiner, shall be thereby
released and dissolved.
for each and every day the public ex-
aminer shall be so placed in possession of
me nank. such bank shall pay 70 the De-
p3rsfnent OF Banking and Finance a fee
by the Department Of Banking 10 the
state treasurer for the credit Of the Con-
t!ngent Fund OF this department
Sec 50. Deposits DeaDed-Fo- the pur-
pose OF thls act, the term .deposit" or
deposits" shall be construed to mean
deposits subject 10 check dividends
unpaid, savings deposits" special de-
posts" trust deposits" certified
checks,' cashiers checks 'due 70
other banks" except overdrafts on cor
respondentS(. demand certificates Of de-
post time certificates OF deposit" and
collections made but not RENTED: pro-
vided, that when any bank has borrl wed
money on its bills payable, which by the
terms and conditions Of such CONTRACT
grants permission 10 the loau!ug bank
TO appropriate n apply any credit ball
I aDee WnlCn the hRnkE Er Th2 .Iq ming
banks show 20 be due or owing 10 the
borrowing bank. 10 be credited on such
bills payable without regard 70 the date
OF maturity thereof. the money received
on such bills payable by such borrowing
bank shall he deemed deposits within
the meaning. Of the term deposit as
Sec. 81. Cash Observation-Disclosures
How Dete-miDed-Every bank shall keep
on hand at all times ~ least twenty per
cent Of its total deposits, Of which said
portion as the board, Of directors may
determine. may be on deposit in banks
approved By the public examiner as re-
serve banks, which banks shall at all
INES keep on hand al least twenty-five
per cent OF their TOTAL deposits IN awful
money or on deposit in banks subject 70
the approval Of the said public examiner,
as reserve banks.
Cash items shall not be considered as
a part Of the reserve OF any bank and
any ove-drafts on correspondents which
nay exist. shall be deducted from the to-
tai amount Of cash and due from banks
before the reserve percentage shall be
shall be computed in the following
manner. to-wit: After making the
deductions h~a-einbefo~e required. Il neces-
sary, the total net amount OF cash and
due from oarks" shall ne divided by the
total deposits" as herein5etore defined.
and the result shall! be the percentage Of
reserve on hand.
Sec. 80. Reserves Must be Kept u
u-IA-a,1- - ---zr-z - a--- ~ " y p II
fall below the amount herein required 20
be kept, such bank shall not increase its
loans or discounts otherwise than by dis
counting or purchasing bills OF exchange
payable at sight or on demand, and the
public examiner shall notify Any bank
who's reserve may be below the amount
required herein, 10 make good such re-
serve. and in case the hank fails for thir-
" DAYS thereafter 10 make good such re-
serve. the public examiner is hereby au-
thorized 70 take charge OF and 10 wind
up the affairs Of such bank.
Sec. Sc. L~oans-Anount Limited-No
individual. firm or corporation transact
ing q banking business in this state, shall
loan 70 any single corporation, firm or in
dividual, including in such loans al. loans
made 70 the several members OF such cor
poration, firm or co-partnership, more
than twenty-five per cent Of the paid w
capital and surplus OF u bank. And
in no case SHAH the total lla9llt;es OF ne
several stockholders Of any bank includ-
ing any and all liabilities OF any firm or
corporation in which such stockholders
may be interested, TO such a bank. exceed
fifty per cent Of the paid up capital Of
aid bank. But the discount Of bills OF
exchange drawn in good faith against
actually existing values, and the discount
Of commercial paper actually owned py
the person negotiating the same shall not
be considered as money. borrowed by such
person
Sc. 81 Same-Penalty-Any officer. IL
rector or enplove Of n bank transactinE
L. -..-s---- ~ erie - "a u~Nn SIM
knowingly permit or allow shareholders
Of such bank 10 at any one time become
indebted To such bank in a total sum eN-
cesding fly per cent OF tns Pa'a up capi,-
tai Of such bank, as covered by section So,
shall be deemed guilty Of q felony. and
upon conviction thereof shall be suh!ect
tp a fine OF not 70 exceed five hundred
dollars, or by imprisonment not 70 exceed
three years in the state penitentiary. or
both IN the discretion Of the court
Sec. s5. Loans to Members-Offcers-
Employees-No partnership; firm or in
in this state. shall be permitted 70 carry
any note or obligation Of any such part
nership or firm or individual Of any OF
as any part Of the assets of the bank. And
no officer or empiOye Of any corporation
transactirg a banking business IN THIS
state shall be permitted 10 borrow any OF
the funds OF the bank upon his own note
or obligation without having first obtained
the approval Of a majority OF the board OF
directors Of the bank 70 each specific loan,
and the approval, If obtained, shall be
proDerly recorded in the banks minute
book. No such loans shall be made with
out ample collateral or a responsible en-
dorser, and each and every loan 50 made
shall be Immediately reported in detail
to the public examiner.
ANY individual member OF a firm, part
nership. officer, director or employe who
shall violate the provisions 81 ~, section
shall be deemed guilty Of embezZlement OF
the funds Of said oank TO the extent OF
said note or obligation 50 given, and on
conviction thereof shall be punished by
a fine not exceeding one thousand dollars
or i~murisOrmen in the penitentlary not
10 exceed five years, or both IN the us
erection az the court.
sec. Sc. Investment Of Funds-Certain
Ioans prohibitad-No bank shall employ
jfs moneys. directly or indirectly, in trade
or commerce by buying or selling goods,
chattels. wares ard MERCHANDISE, ana
shall not invest any Of its fun . in the
nor make any loans or discounts on the
security of the shares Of it's own capital
stock. nor be the purchaser nor holder
~ any such shares unless such security
ar purchase shall be necessary 20 prevent
loss upon a debt previously contracted in
good faith: and stock so purchased or
scorired shall. within six months of the
tfrna ~ its purchase, be sold or disposed
~ al puhIic or private sale: after the
eYpIration Of six months any such stock
shaIi not be considered as a part Of the
assets Of such bank
Nothing herein enacted shall be con-
struad to prevent any bank EXISTING IN
der the provisions Of this act from quail
.hn ElhEral PEG6TVe SEE-