Pierre weekly free press. (Pierre, S.D.) 1889-19??, 1916-11-02

me officers OF such bank shall at once
forward to the public examiner for the
files OF his office a copy of such Judgment
clerk Of the court ppf'' Within sfn''s and f SS the
county in which such bank operated.
sec. ~. Banks May be Placed in the
doing business under this act. may place
US analrs and assets under the control
OF the public examiner by posting a no.
.ice on Its front door as follows: This
err Immediately upon posting such no.
tice such bank shall notify the public
examiner of such action. The posting of
SaG en- no ice or taking possession OF any
tclent to place all its assets and property
OF Whatever nature in the possession of
the public examiner, n shall operate
as a bar to any attachment proceedings.
ana 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 eN-
am1ner shall be so placed in possession of
the bank. such bank shall pay to the De-
partnent OF Banking and Finance a fee
Of five dollars; all such fees to be paid
by the Department of Banking to the
state treasurer for the credit OF the Con-
tingent Fund of this department.
pose of This act, the term deposit" or
deposits shall be construed to mean
deposits subject to check" dividends
n nnprd savings deposits." special de- "a
cheeks cashiers checks" due to
other banks" Except overdrafts on cor
r~espondents), demand certificates Of de-
posit," time certificates of deposit" and
COLLECTIONS made but not remitted;' pro-
vided. that when any bank has borre we'd
money on its bills payable, which by the
grants permission to the loaning bank
to appropriate and apply any credit bal
ance which the books of the loaning
banks show to be due or owing to the
bills payable without regard to the date
of maturity thereof, the money received
on such bills payable by such borrowing
bank shall he deemed deposits" within
herein defined.
Sec. 81. Cash Reserve-Percentage-
How Determined-Every 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
determine, may be on deposit in banks
serve banks, which banks shall at al
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 which
may 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 tho
deductions hereinbefore required, if neces-
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
reserve on hand.
Sec. Sc. Reserves Must be Kept U
Whenever the reserve of any bank shall
fall below the amount herein required tc
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 tht
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 thir'
ty days thereafter to make good such re
serve, the public examiner is hereby au.
thorized to take charge of and to win
up the affairs of such bank.
Sec. 33. Loans-Anount Limited-Nt
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 vi
capital and surplus of such bank. AM
in no case shall the total liabilities of tn
~severa! stockholders of any bank includ
ing any and all liabilities of any firm o
corporation in which such stakeholder
may be interested. to such a bank, exceed
fifty per cent of the paid up capital 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 sucl
person.
Sec. "a. Same-Penalty-Any officer, di,
rector or emp!oye of any bank transactin!
a banking business in this state, who shal
knowingly permit or allow shareholder
of such bank to at any one time becom'
indebted to such bank in a total sum eX
tai of such bank, as covered by section 80
shall be deemed guilty of q felony, an,
upon conviction thereof shall be subjec
to a fine of not to exceed five hundre,
dollars, or by imprisonment not to excee,
three years in the state penitentiary, o
both in the discretion of the court.
Employees-No partnership, firm or in
dividual transacting a banking bushes
in this state, shall be permitted to carr:
any note or obligation Of any such part
the members of such partnership or firm
as any part of the assets of the bank. AM
no officer or employe of any corporation
transacting. a banking business in thi
state shall be permitted to borrow any o
the funds OF the bank upon his W not
or obligation without having first obtaine'
the approval of a majority Of the board o
directors of the bank to each specific loan
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 detail
to the public examiner.
Any individual member of a firm, part
nership, officer, director or employe VIII
shall violate the provisions 81 tins section
shall be deemed guilty of embezzlement O
the funds of said bank to the extent O
said note or obligation so given. and OF
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-Certail
Loans Prohibited-No bank shall emplo.
it's moneys, directly or Indirectly, in trad
or commerce by buying or selling goods
cnattels. 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 it's own capita
stock. nor be the purchaser nor holde
Of any such shares unless such securit,
or purchase shall be necessary to proven
loss upon a debt previously contracted ii
good faith; and stock so purchased O
acquired shall, within six months of tn
time Of it's 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.
- Va h@.@J -k- $1,000