Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1916-11-01
BAN shall be deemed deposits within
me meaning Of the term deposit" az

herein defined.
Sec. 81. Cash Observation-Disclosures
a How Dstermined-Every bank shall keep
cent of its total deposits. Of which said
portion as the board of directors may
aetermine, may be on deposit in banks
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
may exist. shall be deducted from the to-
tai amount of cash and due from banks
ceI mn,ts the reserve Tss pereentage shall be
manner to-wit: After making the
deductions ~hereinbefore required, if neces-
sary.. the total net amount of leash and
due from ranks" shall be divided by the
total deposits" as hereinbefore defined.
and the result shall be the percentage of
reserve on hand.
Sec. 80. Reserves Must be Kept u
Whenever the reserve of any bank shall
fall below the amount herein required TO
be kept, such bank shall not increase it's
counting or purchasing bills of exchange
payable at sight or on demand, and the
public examiner shall notify any bank
required herein. to make good such re-
serve, and in case the bank fails for thir-
~ days thereafter to make good such re-
thorized to take charge of and to wind
up the affairs of such bank.
Sec. 80; Loans-Amount Limited-No
individual, firm or corporation transact
ing a banking business in this state, shall
loan to any single corporation, firm or in
d%ividual, including in such loans all loans
made to the several members of such cor
poration. firm or co-partnership. more
than twenty-five per cent of the paid up
capital and surplus of such bank. And
several stockholders of IN bank includ-
ing any and all liabilities of any Arm or
corporation in which such stockholders
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
Sec. "a. same-Penalty--Any officer. d.
a banking business in this state. who shall
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 cappi 81
upon conviction thereof shall be subject
to a 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. 30. Loans to NEUTRALITY-SUSPICIOUS.
dividual transacting a banking business
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
state shall be permitted to borrow any of
the funds of the bank upon his wi note
or obligation without having first obtained
directors of the bank to each specific loan,
and the. approval, if obtained. shall be
properly recorded in the banks minute
out ample collateral or a responsible en-
dorser. and each and every loan SO made
shall be Immediately reported in detail
Any individual member of a firm, part
shall violate the provisions .; Inns section
the funds of said bank to the extent of
said note or obligation so given. and on
conviction thereof shall be punished by
or Imprisonment in the pe~nitentiary not
to exceed five years, or both in the dis
erection of the court.
Loans Prohibited-No bank shall employ
it's moneys. directly or indirectly, in trade
or commerce by buying or selling goods,
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
acquired shall, within six months of the
time of it's purchase, be sold or disposed
of at public or private sale; after the
expiration of six months any such stock
shall not be considered as a part of the
| assets of such bank.
| strued to prevent any bank existing un-
der the provisions of this act from quail
! flying to enter the Federal Reserve Sys-
Regional Banks, in accordance with the
federal statutes, except that such banks
fhs nr e@ 81 aA of 9'f this t aet's SUBJECT 10
No bank shall be prohibited from hold
ing and selling all kinds of property which
may come into its possession as collateral
lection of debts, in the manner prescribed
by law: provided further. that any goods
any bank as Aforesaid. shall be disposed
of as soon as possible and shall not be
considered as a part of such banks assets
| the date of acquiring the same.
Sec. 81. Assets not to be Pledged
Bills Payable-Cannot Borrow o Certif-
bank oficial shall give preference to any
depositor or creditor by %pledging the as
sets Of the bank as collateral security:
provided that any bank may borrow for
temporary purposes, and may pledge as
sets OF the bank not exceeding fifty per
cent in excess Of the amount borrowed, as
collateral security therefor; provided, that
whenever a bank issues its bills payable
for borrowed money, 1t shall within Ave
days after the execution thereof forward
to the public examiner for the files Of his
office a duly verified copy Of such bills
payable and Of such collateral pledge of
security as may have been Issued there
with. and II such bills payable is con-