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

EA[f ~ AS
money il has on deposit not eligible TO
guaranty under the provisions OF this act.
ard in assessing such bank this amount
shall be deducted from the total deposits
Sec. T. Interest on Deposits-No bank
-transacting a banking business under this
act shall pay in,erest~on deposits. direct
I've y Per 1Ae eent e. Il per a s sasaisr rate 'nA'
Any officer. director or enploye OF a
bank vtolat!n the provisions Of this Sec
ton, directly or indirectly, shall be deemed
guilty OF a felony and on conviction there
OF shall De punished by n fine Of not less
than. one hundred dollars or more than
i've hundred dollars, or by Imprisonment
IN the state penitentiary for a term Of not
less than one year TOR more than three
years, or both. in the discretion Of the
court.
Sec 5 Averaged Annual Statement
False Statements-Penalty-Any bank
commencing business and receiving de-
posts less than twelve months prior TO
he date when the statement referred 10
in section three is required 10 be made
and filed shall show the average daily de-
posts for that portion OF the said annual
eFiod during which il has been engaged
IN business and receiving deposits.
Any person making oath 10 any Of the
statements herein required, knowing the
same 10 be false, shall be deemed guilty
" a felony and be punished by a fine OF
not less than three hundred dollars nor
more than one thousand dollars, or by
Imprisonment in the state penitentiary for
a term OF not less than one year nor more
than five years. or both. in the discretion
OF the court.
Sec. 6. Voluntary Liquidation or
Change TO National Bank-If any bank
desires 20 go into voluntary liquidation or
change TO a national bank before the as
sessments provided for in the last section
become due and payable. the provisions
from the payment OF any assessments
then Due from 1t TO the DepositoTs' Guar
Sec. :. New Banks-Any bank organ
ICED subsequent TO January ist. 1915. shall
pay into the Depositors' Guaranty Fund
an amount equal 10 four per cent OF its
' business, which amoup shall constitute a
credit fund. subject 10 adjustment on the
basis Of said hank's average daily de-
posts, as shown by the first annual state
article.
The Depositors' Guaranty Fund Conn
mission is authorized and empowered TO
make such an adjustment of the rates OF
assessment 20 he paid by any bank which
engages IN the banking business subse-
QueHt 10 January LIST. 1915. and shall re-
QHire such bank 20 contribute 10 the De-
positors' Guaranty Fund. a just end equit-
able sum. and the Depositors' Guaranty
tund Commission shall adjust assess
ments OF such bank so that the first two
Of four per cent Of the capital stock paid
by said bank when il begins business,
shall at least equal one per cent OF the
average daily deposits OF said bank as
shown by the first annual statement re-
CURED by section three OF this article.
Provided. however. that said four per
cent VIII not be required of new banks
formed by the reorganization or consoli-
datien OF banks hat have previously COM
pied with the terms OF this act with ref
ersnce TO the payment, Of assessments
Sec. > Notice OF AsseSsmentS-Dis-
position-Payabls on Demand-As soon as
said assessments are respectively levied,
the banks against which the same are
levied shall be notified OF the amount OF
I such aSSesSrNArs l-yiaH against thAnn y n
Specttvely. by the secretary OF the De-
positors' Guaranty Fund Commission. and
said banks shall thereupon set apart. keep
and maintain in their said hanks the
amount thus levied against them. and the
amounts thus levied, kept and maintained
shan be and constitute what shall be
Fund. payable to the pI pepasiso, s 3 Gaars
anty Fund Commission on demand. for
me uses and purposes provided.
Sec. 3 Guaranty Fund-Assessment-
Failure 20 Credit-Whenever any bank
after due notice from the secretary o.
ne Deposiiors' Guaranty Fund Commits
SION shah fail TO pay over or credit, or
IS books to the Depositors' Guaranty
Fund any assessment as herein provided
for a period Of ten days. such bank shall
pe SUBJECT 70 a penalty OF ten dollars pc,
pay over or credit to such Depositors
Guaranty Fund. such assessment. and IN.
public examiner shall Immediately there
after take possession OF the affairs O.
herein provided for making final dIsposi.
ton Of insolvent banks
Sec. 10. Depositors' Guaranty Fund
FNst Observation-Disclosures any
hank doing business in this state unde,
The provisions Of this act shall suspend
p2yment or become insolvent. the amount
y money standing 10 the credit Of The De.
'~ositors Guaranty Fund on deposit lr
such bank. shall be a first Hen upon ths
assets OF such institution: save and ex-
sept funds deposited in such institution
. ~ me rFIhifr eva rltrar arI LzF---E. -
me estate Of any insolvent institution
which shall have preference over all othe,
claim: as provided in Section 10 Of Ar
Sec. II. DepoSits-Paynent-when any
oank doing business under the provisions
OF this act .suspends or becomes insol.
vent, the public examiner shall forthwith
proceed 10 determine the amount neces.
sary 70 pay the unsecured depositors In
an, and cause the same TO be certified
70 The Depositors' Guaranty Fund Com
against the Deposttors' Guaranty Fund
on deposit in the several hanks, I'm tbs
amount thus certified and the tree surer
of said commission shall immediately
transmit the amount 70 the public ex.
aminer 20 be applied I'm payment OF the
deposits due such depoSitors.
PROVIDED. however, that IL there should
rot De sufficient funds in the Depositors'
Guaranty Fund 20 pay said claims. ther
he Depository Guaranty Fund Commits.
sion shah issue a certificate Of Indebted.
p~osirors' Guaranty Fund and in favor %.
such bank, drawing interest az the rate
~ hve per cent per annIm, which sal
certificates Of Indebtedness shall become
due and payable on the r-st day Of March
next succeeding the date OF issue thereof
and stall be paid out Of the first money
accrving TO the Deposito-s' Guaranty
Fund.
Such drafts against the Depositors,
Guaranty Fund shall be pro rated. as
nearly as may be. among the severe
solvent banks wherein the same Is as
aforesaid kept and maintained. IN ac-
cordance with the amounts thereof held
~ such banlS respectively.
Sec. u. Subrcgatioa-To the extsn-
% the amount paid from said Deposftors
Guaranty Fund to satisfy the claims n.
iepOsitors, the Depositors' Guaranty Fun
4 Commission, for the use and bene~. n.
said fund, shall be subrogated Ia ali ,ba
hts Of the depositors thus raid ~
participate IN tee assets OF such bank a nd
he same shall be enforced and coIlec,aS
by the public examiner accordingly and
when collected shall be placed in So
fund and deposited by the DeuCsitors
Guaranty Fund Commission in the soi-
vent banks subject to the provisions q,
me Depositors' Guaranty Fund. nronor.
tomato as to the several deposits ~
the assessments levied against each q.
said banks. "
Sec l3. Same-Reports-The public sx.
aminer or in charge OF any srs.
pended or insolvent bank. Possession ~,
which has been taken under the nrovi.
I E.Fr< of this Qrr shall r-1Ln