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

s o. OF such corporation, it shall rem:
the officers of such bank sha at once
onward to the public examiner for the
iiles OF his office a copy of such judgment
So s1srE rendered I'd ed properly certified BY the
county IN which such bank operated.
Sec. 70. Banks May be Placed in the
LANDS or Public Examiner-Any bank
us a1falrs and assets under the control
OF the public examiner by posting a no.
nee on Its front door as follows: This
pank is IN the hands of the public eXanlin-
err" Immediately upon posting such no.
tlce such bank shall notify the public
examiner of such action. The posting of
such notice or taking possession OF any
nclent to place all its assets and property
or Whatever nature in the possession OF
the public examiner, and shall operate
and any attachment lien against such
property, acquired within thirty days
next preceding the taking Of such posses.
sion by such examiner, shall be thereby
released and dissolved.
For each and every day the public ex-
alniner shall be so placed in possession of
the bank. such bank shall pay to the De-
pa artmen Of Banking and Finance a fee
state treasurer for the credit Of the ON
tingent Fund of this department.,
Sec. 30. Deposits Deflned-For the pur-
deposits shall be construed to mean
deposits subject to check dividends
p posits'': " sfragt DEPOSITS" SPECIAL seerti aei
checks. p cashiers checks" due to
other seeprn6ank banks" Except overdfafts on cor G9e-
fesPo""ae .pimes ce asmand ee of deposit' q and and
COLLECTIONS made but not remitted;" pro-
vided, that when any bank has borrowed
money on it's bills payable, which by the
terms and conditions Of such contract
grants permission, to the loaning bank
to appropriate and apply any. credit bal
ance which the books Of the loaning
borrowing. bank, to be credited on such
bills payable without regard to the date
of maturity thereof. the money received
on such bills payable by such borrowing
bank shall be deemed deposits" within
the meaning of the term deposit as
herein defined.
How Observation-Disclosures bank shall Keep
on hand at all times at least twenty per
cent Of it's total deposits, Of which said
portion as the board of directors, may
approved by the public examiner as re,
serve banks, which banks shall at all
times keep on hand at least twenty-five
per cent of their total deposits in lawful
money or on deposit in banks subject tc
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 OVerdraftS on correspondents Whlcf
may exist, shall be deducted from the to-
tai amount of cash and due from banks,
before the reserve percentage shall be
computed. The percentage of reserve
shall be computed in the following
manner, to-wit: After making the
sary,. the total net amount Of cash anc
due from banks shall be divided by th<
total deposits" as hereinbefore defined
and the result shall be the percentage o,
reserve on hand.
Sec, 80. Reserves Must be Kept u
Whenever the reserve of any bank shall
fall below the amount herein required tt
be kept, such bank shall not increase it:
loans or discounts otherwise than by dis
counting or purchasing bills of exchange
payable at sight or on demand, and tn
public examiner shall notify any bank
whose reserve may be below the amour
required herein, to make good such re
serve, and in case the bank fails for thlr'
serve, the public examiner is hereby au
thorized to take charge of and to WING
up the affairs of such bank
Sec. 33. Loans-Amount Linlited-N'
individual, firm or corporation transact
ing a banking business in this state, shall
loan to any single corporation, firm or in
dividual, including in such loans all loan
made to the several members OF such cor
poration, firm or co-partnership. NOR
than twenty-five per cent of the paid u.
G Ca t l and sh surplus ,hs t OF S4 1ian,1 Gank' of A Nh
several stockholders OF any bank 1nclud
ing any and all liabilities of any firm 0
corporation in which such stockholder
may be interested, to such a bank, eXcee'
fifty per cent of the paid up capital o
said bank. But the discount of bills o
exchange drawn in good faith agains
actually existing values, and the discoun
Of commercial paper actually owned b,
the person negotiating the same shall no
be considered as money borrowed by sue
person. .
Sec. "a. Same-Penalty-Any officer. di
rector or employee of any bank transactini
a banking business in this state, who sha'
knowingly permit or allow shareholder
of such bank to at any one time becom
indebted to such bank in a total sum ex
ceeding fifty per cent Of the paid up cap ol
shi II b be de eamxi as gu nfyet of a w felony ie . an n
upon conviction thereof shall be subjec
to a fine of not to exceed five hundre'
dollars, or by Imprisonment not to excee'
both in the discretion Of the court.
Sec. s5. Loans to Members-ofhcers-
divi9Ssi s:t Rngtn q baPkiih hF" bn nh as
in this state, shall be permitted to carr.
any note or obligation of any such part
nership or firm or individual of any Q
the members Of such partnership or fir
as any part of the assets of the bank. An
no officer or employe Of any corporation
transacting. a banking business in thi
the funds Of the bank upon his own not
or obligation without having first obtaine
the approval of a majority Of the board o
directors OF the bank to each specific loar
and the approval, if obtained, shall b
properly recorded in the banks minut
book. No such loans shall be made with
out ample collateral or a responsible en-
dorser, and each and every loan so mad
shall be Immediately reported in deta'
to the public examiner.
Any individual member of a firm, part
nership. officer, director or employe VIII
shall violate the provisions of tnie sectio
shall be deemed guilty Of embezzlement @
the funds of said bank to the extent Q
said note or obligation so given, and O.
conviction thereof shall be punished b
a fine not exceeding one thousand dollar
or imprisonment in the penitentiary no
to exceed five years, or both in the dis
erection of the court.
Sec. So. Investment of Funds-Certai:
Loans Prohibited-No bank shall emplo
it's moneys, directly or indirectly. in trad
or commerce by buying or selling goods
chattels, wares and merchandise, an
shall not invest any of it's funds in tn
stock of any other bank or corporation
nor make any loans or discounts on tn
security of the shares of its own capita
stock, nor be the purchaser nor holde
Of any such shares unless such securit.
or purchase shall be necessary to preven
loss upon a debt previously contracted i
good faith; and stock SO purchased o
acquired shall, within six months of tn
time Of its purchase. be sold or dispose
Of at public or private sale; after tn
expiration of six months any such stocl
shall not be considered as a part of tn
assets of such bank.