The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1916-11-02
No.. a..
RELATING TO BANKING AND
FINANCE
March 18th, 1915.

A BILL For An Act Entitled An Act
Enacting and Submitting to a Vote Of
the Electors of the State "A PROPOSED
Law. Entitled Al Act Creating a StatC
Banking Board and Defining the Pow
eTS and Duties; Creating a Bank De
posters Guaranty Fund; Authorizing
the Levy Of Assessments against Bant
Stock, Providing for the liquidation OF
lnsclvcnt Banks. Admitting Nationa
Banks, Prescribing Penalties for Re
creant Officials; Authorizing Rewards
Whereas, Under the Provisions OF Sec
uon l. OF Article 3, OF the Constitution OF
the State OF south Dakota. and Article :
OF Chapter z, Of the Political Code OF sand
State. a Petition has been Filed IN the
Ofnce OF the Secretary OF state, Signed by
More than Five per centum OF the
qualified Electors OF the State In the
Manner and Form Therein Directed, peti-
toning that the Following Proposed Law
be Enacted and Submitted to a Vote OF
the Electors Of tho State at the next
General Election, Certified Copies OF Said
Petition having been Transmitted 10 the
Senate and House Of representatives, by
the Secretary Of state.
Re IL Enacted by the Legislature OF
the state of South Dakota:
Section /. That The following Act be
and the same is hereby enacted and sub
mittod 10 "A vote OF the electors OF this
Ptate at the next general election 20 be
held In the year 1916, for their approval.
State Banking Board and Defining It's
Powers ANA Duties; Creating "A Bank
Depositors' Guaranty Fund; Authorizing
the Levy Of Assessments against Bank
Stock. Providing for the Liquidation OF
Insolvcnt Banks; Admitting National
Banks; Prescribing Penalties for Re
Greant OFFICIALS, Authorizing Rewards
he It Enacted by the People Of the State
Of South Dakota.
Section !, State Banking Board Gre
eted-There Is hereby created a state
banking board Of the state Of South pa
kota, 10 be composed OF the governor,
atate treasurer and state auditor, which
board shall have the power and II is
hereby made it's duty. TO carry out and
enforce the provisions Of this act. The
governor shall be eX-oflCio president OF
said board, and the state treasurer shall
be eX-ofhcio treasurer Of said board, and
the said treasurer shall be held account
able under his official bond for all moneys
coming into RS hands, belonging to the
oepositors' guaranty fund hereinafter pro-
vided for. The public examiner shall be
ex-ofhcio secretary of said board and
shall combine his duties as such with
the duties required OF him as public eX-
sminer
Bee. 2 Assessments OF Bank stock to
Create Guaranty Fund-There is hereby
levied an assessment against the capital
stock OF each and every bank, or bank
Ing corporation, organized, existing and
conducting a banking business under the
laws OF the State of South Dakota, and
every bank hereafter organized or incor-
porated, under the laws OF said state,
during It's continuance in business, for
$3.50 49, b'H' VI '''hAilb a. htDONlipIS BuhT-
anty fund; such assessment shall be due
and payable without notice, one per CEN
tum OF the average daily deposits OF every
such bank within thirty days after the
taking effect OF this act, and two mills
on each dollar OF such daily deposits at
the end OF each and every year there
efter. The average daily deposits OF each
bank during the preceding year prior to
the taking effect of this act Shall be used
As the basis for computing the amount of
made.
Sec. 3. Bank Cashier to Make Report
credit Assessments-Penalty for Fail
Ing effect OF this act, the cashier, or
other officer In charge of each and
every bank organized and doing bust
ness under the laws of this state.
shall make a sworn report OF the condl,
tion OF such bank in the form now pre-
scribed 10y law and shall Immediately for
ward said report to the public examiner.
ano shall forward a copy thereof 10 the
treasurer OF the State Banking Board.
said report shall be supplemented by a
statement under oath showing the average
daily deposits OF such bank for the pre-
csding year, or for any shorter period
euch bank may have been organized and
doing business, " less than one year. Said
statement OF daily deposits shall not in
clude funds OF the United States govern
ment. otherwise secured, nor public funds
secured under the provisions OF any law
OF this state, and the Depositors' Guaranty
Fund created under the provisions of this
act shall not be liable for the loss of anv
such secured funds, through the failure OF
such bank. At the time OF making such
report and statement, the cashier or other
effcer In charge of any such bank shall
pass to the credit of the State Banking
Board as a deposit, the amount due the
Deposltors' Guaranty Fund as the first in
stallmept OF Its assessment, and shall for
ward the receipted deposit tickets pro-
vided for by Section Fourteen UD ANY
cashier or other officer In charge OF any
bank. subject to the provisions OF this act,
who shall neglect or refuse for a period OF
IAN dave fn nnn n nlxE 81. " |
this section or who shall wilfully make n
false report OF the condition OF the bank
under his charge. or of the amount Of It's
daily deposits. as herein required shall
be guilty OF a misdemeanor and upon con-
yiction thereof by a court of competent
jurisdiction, shall be fined in a sum not
!ess than $Soo 90 or more than $500 90 TO be
paid into the Depositors' Guaranty Fund,
Or by Imprisonment In the county tail not
exceeding six months. or by both such
nne and Imprisonment, In the discretion OF
the court.
Sec. 4 Bank Report Deposits-Basis
and Adjustment of Assessment-One wear
after the taking effect Of this act. and
annually thereafter. each bank doing BUSH
ness under the laws OF this state, shall
to the public examiner the amount
It's average daily deposits for the pre-
ceding year, and, II such deposits are in
excess OF the amount upon which the last
pa yment OF the levy hereinbefore provid- I
% for or any special assessment herein
after provided for, shall have been COM
puted. each bank. having such Increased
shall Immediately pay into the
Depositors' Guaranty Fund, a sum sufh-
to pay any deficiency OF said last
payment or payments as shown by such ,
Increased deposits, and IL the deposits OF
such bank shall have decreased dur ,
any year In which any such assess
or assessments shall have been paid,
the excess thereof shall be refunded and
placed to the credit OF such bank as shall :
entitled thereto by reason OF such de-
6reased deposits. In computing the aver
Age daily deposits OF any bank. there shall :
be deducted all funds Of the United Sta ties
otherwise secured, and Of the :
ST. te Of South Dakota, and Of any coun-
IS " other body polite which are other
secured, as provided by law, and
the Depositors' Guaranty Fund shall not +,
be liable for the loss OF any such funds. !
Sec. s. Special Observation-Disclosures
lion-Whenever, after the expiration OF !
Dne year from the taking effect OF this act,
the Depositors' Guaranty Fund shall be- :
oome impaired or be reduced below one
per centum of the average daily deposits i
Df such banks, by reason Of pa yments to
oepositors OF failed banks. the State Bank
Ing Board shall AVE the power and II !
hall be it, duty to levy . special assess I
msnt against the capital stock OF each !
subject to the provisions Of this
lct. to restore such impairment or re- /
to an amount not exceeing two ,
per centum Of the average daily deposits ,
said banks, but the aggrogate Of such |