The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1916-11-02

forward to the public examiner for the
files of his office a copy of such Judgment
so rendered. properly certified by the
clerk of the court within and for the
county in which such bank operated.
Sec. 80. Banks May be Placed in the
Hands of Public Examiner-Any bank
DOING business under this act, may place
its affairs and assets under the control
or the public examiner by posting a no.
tee on its front door as follows: This
bank is in the hands Of the public eNamin-
err Immediately upon posting such no.
ice such bank shall notify the public
examiner Of such action. The posting Of
Such notice or Nking possession of any
bank by the public examiner. shall be suf-
nclent to place all its assets and property
OF 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 OK.
amlner shall be so placed in possession OF
the bank. such bank shall pay to the De-
partiuent Of Banking and Finance a fee
by the Department of Banking to the
state treasurer for the credit of the Con-
tingent Fund of this department.
Sec 80. Deposits Detined-For the pur-
pose Of this act, the term deposit" or
deposits" shall be construed to mean
deposits subject to check" dividends
unpaid" Savings deposits special de-,
cchecks," "ca sHSt 'Sp Checks" due to
other banks" Except overdrafts on cor
respondentsG demand certificates OF de-
posit,' time certificates of deposit and
collections made but not remitted;' pro-
vided, that when any bank has borrC wed
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 loanlng
banks show to be due or owing to the
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
Sec. 81. Cash ACKNOWLEDGEMENTS
How Determinod-Every bank shall keep
on hand at all times at least twenty per
cent OF it's total deposits, OF which said
determine, may be on deposit in banks
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 to
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 or correspondents which
may exist, shall be deducted from the to-
tai amount OF 'ClSn ana que from bdIhS
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 and
due from banks shall be divided by the
total deposits" as hereinbefore Defined.
and the result shall be the percentage Of
Sec. 80. Reserves Must be Kept u
Whenever the reserve of any bank snail
fall below the amount herein required TO
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
whose reserve may be below the amount
required herein, to make good such re-
serve, and in case the bank fails for thir-
ty days thereafter to make good such re-
thorlzed to take charge of and to wind
up the affairs Of such bank
Sec. 80. Loans-Amount Limited--No
individual, firm or corporation transact
loan to any single corporation, firm or in
dividual, including in such loans all loans
made to the several members or such cor
poration, firm or co-partnership, more
than twenty-five per cent of the paid up
capital and surplus Of such bank. And
in no case shall the total liabilities Of the
several stockholders of any bank includ-
ing any and all liabilities of any frm or
corporation in which such stockholders
may be Interested. to such a bank. exceed
fifty per cent of the paid up capital OF
said bank. But the discount Of bills OF
exchange drawn in good faith against
actually existing values, and the discount
of commercial paper actually owned by
the person negotiating the same shall not
be considered as money borrowed by such
person.
Sec. "a. Same-Penalty-Any officer, d.
rector or employee OF any bank transacting
a banking business In this state, who shall
l"n xyt p~i,r rn,aN1if ar niln hOrphn1np
of such bank to at any one time become
indebted to such bank in a total sum ex-
ceeding fifty per cent Of the paid up CAPT
tai Of such bank, as covered by section 33,
shall be deemed guilty Of a felony. and
upon conviction thereof shall be subject
to n fine of not to exceed five hundred
dollars, or by imprisonment not to exceed
three years in the state ~penitentiary. or
both in the discretion Of the court.
Sec. 35. Loans to Neutrality-suspicious.
Employees-No partnership, firm or in
in this state, shall be permitted to carry
any note or obligation of any such part
nership or firm or individual Of any OF
the members of such partnership or firm
as any part Of the assets of the bank. And
no officer or employe OF any corporation
transacting a banking business in this
state shah be permitted to borrow any OF
the funds Of the bank upon his own note
or obligation without having hrst obtained
the approval OF a majority Of the board Of
directors OF the bank TO each SPECIFIC loan,
and the approval, II OBTAINED, snail be
properly 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 so 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 OF tirio section
shall be deemed guilty Of embezZlement of
the funds of said bank to the extent Of
said note Or obligation so given, and on
conviction thereof shall be punished by
q fine not exceeding one thousand dollars
or Imprisonment in the p~enitentiary not
to exceed five years, or both in the dis
erection Of the court.
Sec. So. Investment Of Funds-Certain
its moneys, directly or indirectly, in trade
or commerce by buying or selling goods,
chattels, wares and merchandise, and
shall not invest any Of its funds in the
stock of any other bank or corporation,
nor make any loans or discounts on the
security Of the shares Of it's own capital
stock, nor be the purchaser nor holder
Of any such shares unless such security
or purchase shall be necessary to prevent
loss upon a debt previously contracted in
good faith; and stock so purchased or
shall, within six months Of the
time OF it's purchase. be sold or disposed
expiration Of six months any such stock
shall not be considered as a part Of the
assets Of such bank
Nothing herein enacted shall be con-
strued TO prevent any bank existing un-
der the provisions Of this act from quail
tying to enter the Federal Reserve Sys-
TEN and purchasing shares Of stock Of the