Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1916-10-28

on hand M All times at least twenty per
cent OF it's total deposits, ct which STU sa,u
portion as the board OF directors may
determine, may be on deposit IN hahha
approved by the public examiner as re,
serve banks, which b&aks shaH ~ an
times keep on hand at least twehty-IN9
per cent OF their total depoSils ~ l1%Lut ~
money or on deposit in banks suhlect 70
The approval OF the said public examiner
as reserve banks.
Cash items shall not be considered as
a part Of the reserve OF any bahN i.Hd
any overarafts on correspondents Which
may exist shall be deducted from the to-
tal amount OF cash and due from bauhs
before the reserve percentage shah DT
computed. THE pefcen'ase ol so'fe,,.,ns ISsr,es
shall be computed m the foHo"!ns
manner, to-wit: After maklng the
deductions hereiubeforc required u lieces55
sary, the total net amount on caSn anu @
total "deposits" as hereinbefore deiinei.
and the result shall be the percentage OF
reserve on hand.
Sec. 80 Reserves Must be Kept Y,
whenever Inc reserve OF any bank shall
fan below the amount herein required 20
be teut such bank shall not increase us
loans or discounts otherwise than by dls-
counting or purchasing bills of exchange
PAYABLE at sight or on demand, ana the
public examiner shall notify any bank
whose reserve may be below the amount
required herein, TO make good such re-
serve. and in case the bank falls Tor thlr-
ts- days thereafter 10 make good such re-
eorve. the public examiner is hereby au,
thorized to take charge OF ana 70 "4Hu
un the affairs Of such bank
Sec. SO. Loans-Amount Limlted-No
nd,Vidual. firm or corporation transact,
ing "a banding business In this state, shaH
loan 70 any single corpora non hrln or ~
dividual, including in such loans an loths
made TO the several members or sucl cor
p0ration firm or co-parinefShlp more
than twenty-five per cent OF ne pttA AB
capital and surplus or such nanh' Ano ma
several stockholders Of any bank lneiLd-
ing any and All liabilities 81 any urn or
corporation n Which slcn ,.,.,.,.,,3
n,ay be interested, 10 such "a bah& chGee9
fftv per cent OF the paid up cap II OF
eaid bank. But the discount Ci uli3 Or
aange draWn IN 5000 ial,R INST
ily existing values arl tha tlso3uht
0f commercial paper actually owned ut
trc person negotiating thc s3fae 'ad llgl
he considered rs money borrowed os sAeh
Dtre1n
sac g. Same-peNaltw-A officer, di-
plet1r or cmployc Of amy bank transA s'nE
I'd h1nk.nc business IN THIS state, WHO s4tn
Knowingly permit or a'lo" ,'at $500 $3.50
Ci such bank to az amy one ilfee btloIhe
indebted 10 such bar- .7 q total sum eN-
caediug City per cent pt the p1ln up c2Il-
tal 81 such bank, as covered h[ seetloh ~
upou conviction thereof shall he suhject
to q fine OF not to exceed five hhhdieQ
dollars, or by Imprisonment not 70 exceed
three years i'm the state peWtehuafy' or
both I'm the discretion OF the court
Sec 35. Loans 10 members e'lIlte1s-
Employees-No partnership, ilrm or IN
dividual transactlng "A b2nNng pAsI ness
hi this state, shall DE permitted 10 carry
any note or obligation OF any such part
uegship or firm or individual Of any OF
tine members Of such partner mp or nrin
AS any part of the assets Of the bank Ana
no officer or employe OF amy corporation
taNsacting a banking buslNcss iN inns
state shall he permitted 10 h2FrU" 'uF or
the funds of the bank upon h.s own note
fu o. gI,IfrrytfFn VuifNODf having f|NSf GfiNlUef
the approval of a majority Ct the board OF
directors of the bank TO each sutciuc .1au,
and the approval u oOtainaq, Snail ne
properly recorded iu the banks minute
hook No such loans shall ce made Wlth-
out ample cole terai or q resron sole en-
d0rser, and each md eVey io2a 50 MAGE
Small be Immediately reported n detail
TO ne public examiner.
ANY individual ln mb-r Of firm par--
rersuip officer. director or Cmploye VINO
she II Violate the provisions 81 tit,s section
shall be deemed guilty of embe2zlement of
tnp funds Of said bank 20 the extent OF
eaid note or obligation so given ana on
conviction thereof shall be punished by
"A ine not exceeding one thousand dollars
or Imprisonment in tho penitcntary not
to exceed five years, or both IN the dis
oration of the court
Sec. So Investment of Funds Certain
Loans prohibted--1.o bank shall employ
rs moneys. directly or indirectly, in trade
on commerce by buying or selling goods
chattels. wares and merchandise, and
SLIM NOT invest any OF its funds in the
stoei, ~ anv other bank or corporation,
nor make any loans or discounts on the
security OF the shares OF It's own capital
gtock. nor be the purchaser nor holder
~ any such shares unless such security
49, n,,rcbesA shall be necessary to prevent
Icsi 1Ipon a debt previously contracted in
s,oCd faith. and stock so purchased or
acouired shall within six months Of the
time of its purchase, be sold or disposed
OF at public or private sale: after the
expiration OF six months any such stock
shalt not be considered as a part of the
assets OF such bank.
Nothing herein enacted shall be con-
strued 10 prevent any bank existing un-
der the provisions OF this act from quail
fving 10 enter the Federal Reserve Sys-
tenn and purchasing shares Of stock Of the
perfonal Ranks in accordance with the
fed raj statutes, except that such banks
shall be in all other respects subject TO
the provisions of this act.
No bank shall be prohibited from hold
may come into it's possession as collateral
security for loans or any ordinary col
lection OF debts. in the manner prescribed
bv law: provided further, that any goods
or chattels coming into the possession OF
any bank as aforesaid, shall be disposed
of as soon as possible and shah not be
considered as a part of such banks assets
the date OF acquiring the same.
Sec 81. Assets not to be Pledged
Bulls Payahle-Cannot Borrow on Certf-
Gates OF Deposit-No bank, banker or
bank official shall give preference TO any
depositor or creditor by pledgng the as
sells of the bank as collateral security;
n.ovided that any bank may borrow for
ienlporary purposes, and may pledge as
sets of the hank not exceeding fifty per
cent in excess of the amount borrowed as
collateral security therefor; provided that
whenever a bank issues its bills payable
for borrowed money, II shall within five
Gays after the execution thereof forward
20 the public examiner for the files OF his
Office & duly verified copy of such bills
rayabic and Of such collateral pledge of
/ 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 like copy OF such re-
ucwal obligation and collateral pledge Of
security shall be forwarded to the public
examiner forthwith: Provided, further,
is borrowing habitualy for The purpose Of
rcloaning. the public examiner may re-
qlire such bank TO pay OFF such borrowed
| money.