The Miller press. [volume] (Miller, S.D.) 190?-current, 1916-11-02

payable and OF such collateral pledge OF
with, and If such bills payable is con-
tinued by renewal either IN a greater or
lesser amount, a like opy of such re-
s securitS SD ssaI5 IN ss n$lv collateral Uasd fo , pledge pasl oa
examiner forthwith; Provided. further.
that whenever IL shall appear that a bank
is borrowing habitually for the purpose OF
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 negotiapie
its capital stock.
1t shall be unlawful for any bank to
issue its certificates Of deposit for the pur-
pose OF borrowing money. In all cases
issue its bills payable" and shall show
the true amour of borrowed money on its
books and In all reports and statements
visions of this act, under bills payable"
No bank h make partial payments
upon certificates of deposit.
Amy officer Of a bank in his state VIC,
lating the provisions Of this section, shall
be deemed to be guilty Of a
and upon conviction shall be subject to a
fine OF not less tina one hundred doliars
nor more than three hundred dollars IN
the discretion of the court.
Sec. 3S. Checks-Certi1ed When-lt
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 ban unless the per-
SON, firm or corporation drawing, sucn
check, draft or order, has on deposit
with the bank at the time such draft,
check or order is certified an amount OF
money equal to the amount specified In
such check. Any check, draft, or order
so certified by the duly authorized OF.
icer shall be a good and valid obligation
against such bank.
Sec. 80. Bad Debts-Ar debts due to
any bank on which the interest Is past
due and unpaid for a period OF six months,
unless the same are well secured or IN
process of collection, shall be considered
bad debts and shall be charged on to
an overdraft OF more thai sixty days
standing be allowed as an asset OF any
bank.
Sec. 40. Undivided Profts-surplus
Observation-Disclosures board Of directors
of a bank may declare a dividend from
so much of its net profits, after provid,
ing for all expenses, losses, interest ana
taxes accrued, or due from said bank. as
any such dividend is declared not. less
han one-tenth Of the net profit OF the
BAN for the preceding half year, or for
such period as is covered by the dividend,
shall be carried to a surplus fund, until
such surplus fund shall amount to twenty
per cent OF the capital stock. Any losses
undivided profits may be charged to it's
surplus account, provided hat it's surplus
fund shall thereafter be reimbursed from
its earnings, and no dividends shan ne
its surplus fund shall be fully restored
to the amount required by law.
Sec. Al. Dividends Not. to be Declared,
when-No dividends shall be paid to any
~stockholder of a bank except out OF the
net profits properly applicable thereto.
and which shall not in any way impair or
diminish the capital: and II any such shan
be paid, every stakeholder receiving the
same shall be liable to restore the full
amount thereof unless the capital be sub
sequently made good: and IL the directors
the corporation is insolvent or in danger
of insolvency, or when they do not have
good reason to believe that there are suf-
icient net profits properly applicable
the capital, they shall be Jointly and sew
orally liable to- the creditors OF the corpo-
ration at the time of declaring such divi-
'e Sec. q a. a0o9 offi t 6 am Iiable .nfssos
Loans: Overdrafts-Each and every officer
and director OF any bank shall be held
personally liable for all excessive loans
made by his bank, in such amount as
such loan may be in excess OF the amount
limited by law, and his liability thereon
h 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 lab for any and
all overdrafts allowed by his bank.
Sec; a. Embarrassment Punished
u ulINIlOI ClSfA-
Ter, officer, teller. clerk or agent OF n
bank who embezzles, abstracts or will
fully misapplies, or ~wrongfully diverts to
his own use through the use OF accommo-
dation notes or credits, any of the moneys,
funds, credits or property of the bank,
whether owned by IL 0r held in trust.
or who wrongfully withholds 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 n certificate of de-
post, draws any order or bill 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
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
son, or anyone appointed to examine the
affairs of such bank; or any person who
with like 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
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 period
Of thirty days to make good any loss or
damage resulting from such acts, or con-
tinue such conduct, II shall constitute suf-
hcient reason for the forfeiture Of the
charter Of such bank, and il shall there
upon be the duty Of the public examiner
70 institute proceedings to enforce such
forfeiture and to secure a dissolution of
its existence and thereafter the business
and affairs of such bank shall be disposed
for the disposition Of insolvent banks.
Any bank (which neglects or fails TO
open for business within one year from
the date on which its charter was issued.
or any bank that has liquidated it's LA
bilities In full and discontinued business
operations for a period of one year. shall
be deemed to have forfeited it's charter,
and to have no further legal existence.
Sec. As. Liability of Stockholders-The
stockholders OF every bank shall be indi-
vidually liable, equally and ratably. not
one for another for the benefit OF the
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 stock, as
to the affairs Of the bank at the time
and prior to the date of the transfer. But
persons holding stock as executors. ad-
illustrators, 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
collateral pledge covering such stock has
not been foreclosed and Judgment en-
tered thereon, shall not be personally
funds in their hands constituting the
trust shall be liable to the same extent