Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1916-10-21

ital to NOT less than ten thousand dollars
and such further amounts as are noces-
sary to comply with the foregoing require
ments as to capital and populations, wnsn-
ever their deposits average ten tlmcs
their capital stock and surplus for q
period Of six months, and provided fur
ther, that no bank shall receive deposits
in excess of fifteen times its capital and
surplus, the same TO be determined ~
the average OF its deposits for six months.
Sec. 3. Articles of Incorpora tion--Con-
tents ] The person so associated shall
make, sign and acknowledge written ar
ticles OF incorporation containing:
First. declaration that they associate
for the purpose Of forming a banking
corporation or trust company under this
act.
Second. The name OF such bank. which
name shall be in no material respect sim
liar TO the name of any other bank in
the same county.
Third. The name Of the particular
town and county where such bank is le-
Gated
Fourth The amount of capital stock,
which shall be divided into shares Of one
hundred dollars each.
Fifth The names and places Of resi-
dence OF the shareholders and the num-
Der OF shares held by each.
Sixth. The period for which such bank
is organized, not exceeding twenty years,
and the date on which it shall commence
and terminate its corporate existence.
seventh. The names and places of resi-
dence of the several officers and di-
rectors, and the number of shares of tho
capital stock of such corporation owned
and held by each of such officers and
See A. Filing Artices-certifiea
Copies Such original Articles of In
corporation, verified as such, by the af-
fdavit of two of the signers thereof shall
be recorded in the office OF the register
of deeds In the county where such bank
is TO be established and Immediately after
being recorded, they shall be transmitted
to the Secretary of State who shall re-
cord and file the same in his office
like verified copy OF said Articles Of
| incorporation certified by the register Of
deeds of the county where such bank 10
TO be operated. shall ar the same time
be forwarded to the public examiner
Sec. s. Power of State Banks.l Upon
making and filing of Articles of Incor-
poraton as required by section four OF
this article, and the receipt OF authority
from the public examiner to commenqs
business, the bank shall become a bodt
corporate and as such shall have the fol-
lowing powers:
First. To make all contracts necessary
and proper to effect its purpose and eon-
duct Its business.
Second. To sue and be sued, to appear
and defend In all actions and proceed
inRs under its corporate name to the
same extent as natural person.
Third To have common seal ana
alter the same at pleasure
Fourth. To elect or appoint all neces-
sary officers, agef-ts and servants, define
| their duties and obligations, fix their
compensation, dismiss them, fill vacancies
Fifth TO make, amend and repeal by
laws and regulations, not inconsistent
| with the law or it's articles of incorpora-
tion. for its own government, for the
orderly conduct of its aifRtrs and the
management Of its property foi determin-
ing the manner of calling and conducting
IT'S meetings, the tenure of office OF IA
| several officers; and such others as SHAH
| be necessary or convenient for the ac-
| complishment OF It's purpose.
Sixth. To exercise. by Its directors,
MI un6 x@ff all
| such powers as shall be usual in carry
| ing on its business of banking: by buying.
discounting and negotiating promissory
| notes. bonds, drafts, bills of exchange,
| foreign and domestic, and other evidences
| Of debts: by receiving commercial and
| savings deposits under such regulations as
coin and bullion and by buying and SELL
| ing exchange, foreign and domestic: issu-
ing letters OF credit. and by loanins
| money on personal and real security, az
Sec 6. Business Not to be Transacted ]
| No bank shall transact any business, ex-
/ preliminary to its. organization, until IL
| has been regularly authorized by the
| public examiner to commence the busi-
Sec. 7. Minute Book to bs Kept.l A
| complete record showing In detail the
| nature OF all business transacted as con-
templated by the provisions OF this section
and Of all meetings Of subscribers for
stock and officers, and directors shall
be kept in the minute book OF such bank
and form part of the permanent records
Sec. s. Subscriptions to Stock-How
Taken.1 The subscriptions to capital
stock and the direction of the affairs o<
| the corporation prior to the election Of
| directors shall be In conformity with the
| statute relating to corporations regulating
such matters. so far as the same may b
Sec. 9. Certificate OF Authority--whsn
| Granted.] Whenever Articles OF IRoer-
| poration are filed with the public exam-
| iner. as herein provided, and the bank
examiner that it's capital stock has been
! duly paid in. In cash, and that such bank
| has complied with all the provisions OF
this act required before the bank shall
be authorized to commence business, the
| public examiner shall within thirty days
examine into the condition OF such bank.
ascertain whether or not the capital has
| been fully paid in, the name and place Of
residence of each Of Its directors and
whether such bank has complied with all
OF the provisions OF the Law required to
entitle il to engage in the business Of
banking II, upon such examination, 10
appears that such bank is lawfully en-
| examiner shall forthwith give to such
| bank certificate under his hand and
official seal, that such bank Is authorized
aminer has reason to believe that the
stockholders have formed the same for
any other than the legitimate business
the adv and consent OF the attorney
general, withhold the certificate herein
provided for, and 1t is further provided
the the issuance % Of such certificats to = banS
seeking to engage in business in town
which IN his judgment does not justify or
warrant warrant new OF additonai BANK or
for charter and certificate Of authority
to do business Is prompted by malicious,
speculative, or any other than honorable
motives.
Sec. 10. To Publish Certificate Of
Authority.l The bank shall cause the
certificate of authority as herelnbefots
provided for and issued hereunder to BE-
published in some newspaper, printed In
the town where such bank is located.
within ten days after receiving the same.
town, then such publication shall be made
in one published nearest thereto. Proof
of such publication shall be made and
executed under oath by the publisher on
appropriate blank for that purpose and
the same shall be filed with tho public
examiner.
-oath---Bondl The, affairs and busi-
ness of a bank shall be managed and
controlled by a board of not less than
be aee reSidents % O. Of the State of South % palota
and shall be elected by the stockholders
at their regular stated annual meetings,
which shall be held on the second Tues.
each year, as provided in the banks by
/ laws Provided, that not less than three
OF the directors Of bank shall reside
within the immediate county in which
such bank is located or in counties adj
Joining such county. within the state Of
South Dakota.
No person shall be eligible to serve az
a director of any bank organized or exc
listing under. the laws Of this state. un-
less he shall be bona fide owner OF
at least five shares Of the stock of such
bank, fully paid for and not hypothecated.
Any vacancy in the board OF directors
shall be filled by the board, and any d.
rector SO appointed shall hold office untE
the next annual election.
Any director, officer, or other person
who shall participate in any viola ton os
the laws of this state relating to banks
or banking shall be liable for all DANA ges