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

security as may have been issued there
with, and if such bills payable is con-
tinued by renewal either IN a greater or
lesser amount, n like copy of such re-
newal obligation and collateral pledge or
security shall be forwarded TO the public
examiner forthwith: Provided. further.
that whenever it shall appear that a bank
is borrowing habitually for the purpose of
reloaning, the public examiner may re.
quire such bank TO pay of such borrowed
money.
Nothing herein contained shall prevent
any bank from rediscounting in good
faith and endorsing any OF its negotiable
paper TO an amount equal 10 one-halI OF
its capital stock.
It shall be unlawful for any bank to
its certificates OF deposit for the pur-
pose OF borrowing money. In all cases
where money is borrowed a bank shall
issue its bills payable" and shall snow
the true amount of borrowed money on its
books and in all reports and statements
required or contemplated within the pro.
visions of this act, under bills payable
No bank shall make partial payments
upon certificates OF deposit.
Any officer Of n bank in this state VIC,
lating the provisions of this section, shall
and upon conviction shall be subject to a
fine of not less than one hundred dollars
nor more than three hundred dollars In
the discretion of the court.
Sec. IS. Checks-Certitied When-N
shall be unlawful for any officer. clerk, or
agent OF any bank doing business under
this act to certify any check. draft or Or
der drawn upon the bank unless the per-
son, firm or corporation drawing. such
check, draft or order, has on deposit
with the bank at the time such drale.
check or order is certified an amoaht OF
money equal TO the amount specified in
such check. Any check, draft, or order
so certified by the duly authorized Of
fcer shall be a good and valid obligation
Sec. 80. Bad Debts-An debts due to
any bank on which the interest Is past
duo and unpaid for a period of six months,
unless the same are well secured or IN
bad debts and shall be charged off. 70
profit and loss account. In no case s!lall
an overdraft OF more than sixty days
standing be allowed as an asset OF any
bank.
Sec. 40. Undivided P~rofts-Surplus
Funds-Dividends-The board OF directors
Of a bank may declare a dividend from
so much of its net profits. after pToVid.
ing for all expenses, losses, interest ana
taxes accrued, or due from said bank, as
they shall deem expedient; but before
than one-tenth Of the net profit Of the
bank for the preceding half year, or FOR
such period as is covered by the dtvldeno;
shall be carried 70 a surplus fund untn
such surplus fund shall amount to twenty
per cent Of the capital stock. Any losses
sustained by any bank In excess OF It's
undivided profits may be charged to us
surplus account, provided that its surplus
fund shall thereafter be reimbursed from
it's earnings, and no dividends shall be
declared or paid by any such bank until
It's surplus fund shall he fully restored
Sec. Al. Dividends Not to be Declared.
when-No dividends shall be paid to any
stakeholder OF q bank except out of the
and which shall not in any way impair or
diminish tho capital; and II any such shall
be paid, every stakeholder receiving the
same shall be liable to restore the full
n -, ,,,D tLa~aaf ,nInvo TIA 20 initial he GIh-
sequently made good; and II tho directors
OF any bank shall pay a dividend when
the corporation is insolvent or In danger
Of insolvency. or when they do not have
good reason to believe that there are suf-
ficient net profits properly applicable
thereto, without impairing or diminishing
the capital. they shall be Jointly and sew
orally liable to the creditors OF the corpo-
ration at the time OF declaring such divi-
dends, TO double the amount thereof.
Sec. ~. Officers Liable-EXcessive
and director Of any hank shall be held
personally liable for all excessive loans
made by his bank, In II amount as
such loan may be In excess Of the amount
limited by law. and his liability thereon
shall be the same as though such paper
was endorsed by him., but to the extent
only OF the excessive amount. He shall
also be held personally liable for any and
all overdrafts allowed by his bank.
Sec. AZ. EmbezzleInent Punished
Penaltv-Every president, director, CASH
Ter, officer. teller, clerk or agent Of any
bank who embezzles, abstracts or will
fully m~isapplies, or wrongfully diverts to
his own use through the use OF accommo-
dation notes or credits, any of the moneys,
whether owned by it r held in trust,
or who wronCfully withnolds payment or
remittance of the proceeds Of any cOllec-
ton which may come into his hands. or
who without authority Of the directors is
sues or puts forth any certificate OF dc
posit, draws any order or bin Of exchange,
makes any acceptance, assigns any note,
bond, draft, bill Of exchange, Judgment
or decree, mortgage. or who makes any
false entries IN any book, report or state
ment OF the bank or report or statement
provided for or contemplated within the
provisions OF this act, with intent In either
case to injure or defraud the bank or
any person or corporation, or TO deceive
any officer OF the bank. or any other per-
son. or anyone appointed to examine Tho
affairs Of such bank; or any person who
with Xix intent, aids or abets any officer,
clerk or employe in the violation of this
section shall be likewise guilty. and upon
conviction thereof shall be imprisoned In
the state prison for a period Of not less
than five nor more than twenty years.
Sec. a.. Charter-How Forfeited-If the
board OF directors or a quorum thereof,
or any committee OF such board Of any
bank. shall knowingly violate or knowing
~ permit any of the officers, clerks or
employees OF the bank to violate any of
the provisions OF this act, such directors
shall Jointly and severally be liable for
the amount of the loss sustained thereby:
and IL after a demand made By the pub
lie examiner they shall fail for a pcriOd
Of thirty days to make good anv loss or
damage resulting from such acts. or con
tinue such conduct, ii shall constitute suf-
fcient reason for the forfeiture Of the
charter of such bank, and II shall there
upon be the duty Of the public Examiner
70 institute proceedings to enforce such
forfeiture and to secure n dissolution Of
its existence and thereafter the businc,e
and AFFAIRS Of such bank shall be dieposc1
OF In the same manner as herein provided
for the disposition Of insolvent banks.
Any bank which neRlects or fails to
open for business within one year from
the date on which It's charter was issued.
or any bank that has liquidated its la
bilities In full and discontinued business
operations for a period Of one year, shall
be deemed TO have forfeited its charter,
and to have no further legal existence.
Sec. As. Liability Of Stockholders-The
vidually liable, equally and ratably. not
one for another for the benefit of tho
creditors OF the said bank to the amount
of their stock at the par value thereof
in addition to the amount invested in such
stock. Such liability shall continue for
one year after any transfer of sfock. as
20 the affairs OF the bank at the time
and prior to the date Of the transfer. Rv.
persons holding stock as executors. adj
ministrators, guardians or trustees, and
persons holding stock as collateral secur-
ity which stock Of such institution has
not been transferred Of record upon the
books thereof to the name OF the person
or persons holding the same or where a