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

peuleht; provided, that no such rules or
any OF the laws made for the control OF
such banks.
r,6ss Sec. g. An Banks Subject 70 Proyi:
shall extend to and govern an banks eX-
listing and doing business within the state
and all banks that may hereafter engage
in the business. All the powers, privi-
leges, duties and restrictions conferred
and imposed upon any bank existing and
doing business under the laws of this
state, are hereby abridged, enlarged or
modified as each particular case may re-
This act. " '''S
Article 3.
Section l. Guaranty Fund--Assessment
For the purpose OF providing a De-
postors' Guaranty Fund for the protec-
ton Of dcpositogs IN banks. every bank
engaged IN the business OF banking under
the laws of this State. shall be subject
10 assessment 70 be levied, kept. coll
iected and applied as hereinafter pro-
Sec. . Examination OF Banks-Ap-
proval or Liquidation--It shall be the duty
OF the public examiner Of this state 70
examine every state and private bank
doing business in this state, within six
months from the passage and approval Of
MS act and no assessment shall be
levied upon any bank by the Depositors'
Guaranty tund Commission until its con-
dition shall be approved by the Deposit
ors' Guaranty Fund Commission. Every
bank whose condition has not been APP
proved by the Depositors' Guaranty Fund
Commission and which shall not have
complied with conditions imposed by said
Depositors' Guaranty Fund Commission
by January ], 1916, shall Immediately be
iiquidated as herein provided in this act
for the liquidation of insolyent banks.
sec. .. tlllng Statcmcnts-Assess-
ments-On the first day OF January 1916.
and on the first day Of January of each
year thereafter every bank engaged in
the business OF banking in This state shall
make and tie with the pepositors Guar
anty Fund Commission, a statement in
writing verified by the oath Of it's presi-
dent, vice president or cashier, showing
the average daily deposits in It's bank
for the preceding twelve months.
On the FIRST day OF the month next sue
ceeding the date GEcd for the mskng and
Cling Of sCch statement, the Derosltors'
Guaranty Fund Commission shall levy
/ easements against the assets OF each OF
( said banks as follows:
/ on the first day 81 February. 1916 one
/ fourth OF one Per cent on taa average
daily deposits as shown by the aest s,8te-
meut of such ovcraBe daily deposits re-
CURED 10 be made and filed by The proVi-
sious of this section.
! on the first day Of February Of each
/ and every year thereafter oue-fOurth OF
one per cent Of The average daily de-
posits as shown by the, statements re-
/ fuired TO be made and filed on the first
day Of January in each year, until the
! total amount OF money in the Guaranty
/ Fund reaches one ana half per cent
Of the average daily deposits.
Due and legal notice of h-assessnent
! shah be deemed 20 have been given when
such notice as snail be prepared by the
! postage prepaid, directed TO each of said
banks and deposited in the United States
/ mail.
Provided that when the Depostors'
/ Guaranty Fund reaches the total sum Of
/ one and one-hah per cent OF the average
/ daily deposits, said assessments against
81 of vsaf "a che ID
/ such time as the Guaranty Fund is de-
/ pleted below one per cent OF the average
daily deposits, when The necessary assess
/ ments may again be levied az One-fourtn n
/ Of one per cent per anuum uuUl said
fund again reaches one and one-half per
cent Of the average daily deposits.
Provided further, that no bank which
! has complied In full with all the provisions
II this act shah bc required TO give any
/ further security or bond for the purpose
I Of becoming a depository for any public
in the same manner as private funds are
secured.
An deposits not otherwise secured sha'l
be guaranteed by this act The guaranty
rs provided for i'm this act shall not apply
| 10 a banks obligation rs endorser upon
bills re-discounted nor TO bills payabl
nor to money borrowed from its COR
respondents or others. Each guaranteed
| bank shall certify under oath To the De-
positors Guaranty Fund Commission at
| the date of each January statement as
hereinbefore provided, the amount OF
money il he's on deposit not eligible TO
guaranty under the provisions Of this act,
and in assessing such bank this amount
shall be deducted from the total deposits.
Sec. 4. Interest on Deposits--No bank
transacting banking business uncer this
act shall pay interest on deposits direct
~ or indirectly at greater rate tnan
five per cent go per annum
Any officer, director or cmploye of n
| bank violating the provisions Of this Sec
tion, directly or indirectly. shall be deemed
guilty of a felony and on conviction there
of shall be punished by a fine of not less
than one hundred dollars or more than
five hundred dollars, or by Imprisonment
in the state penitentiary for term of not
less than one year nor more than three
years, or both, in the discretion OF the
court.
Sec. 5. Averaged Annual Statement
False Statements-Penalty-A bank
commencing business and receiving de-
posts less than twelve months prior 70
the date when the statement referred 10
in section three is required to be made
and filed shall show the average daily de-
posts for thar portion Of the said annual
eriod during which il hes been engaged
in business and receiving deposits.
Any person making oath to any of the
statements herein required, knowing the
same to be false. shall be deemed guilty
II felony and be punished by fine OF
not less than three hundred dcllars nor
more than one thousand dollars. or by
Imprisonment in the state pententiary for
term of not less than one year nor more
than five years. or both in the discretion
Of the court.
Sec. 6. Voluntary Liquidation or
Change to National Bank-If any bank
desires TO go into voluntary liquidation or
change to national bank before the as
sessments provided for In the last section
become due and payable. the provisions
or this act shall not release said bank
from the payment of any assessments
then due from it to the Depositors' Guar
anty Fund.
Sec. Z. New BanIs-Any bank organ
iZed subsequent 10 January 1st. 1916. shall
pay into the .Depositors Guaranty Fund
an amount equal to four per cent of it's
capital stock, when such bank opens for
business, which amount shall constitute q
credit fund, subject to adjustment on the
basis of said banks average daily de-
posts, as shown by the first annual state
article.
The Deposftors' Guaranty Fund Com
mission is authorized and empowered 10
make such an adjustment of the rates OF
assessment TO be paid by any bank which
engages in the banking business subss-
quent TO January 1st, 1916, and shall re-
quire such bank to contribute to the De-
positors Guaranty Fund, just and equit-
able sum- and the Depositors' Guaranty
! Fund Comylssion shall adjust assess
ments Of such bank so that the first two
assessments, together with the credit fund
OF four per cent of the capital stock paid
by said bank when II begins business,
average daily deposits of said bank as
| shown by the first annual statement re-
Iulfed py secuon three OF this article
provided, however. that said four per
cent viii not be required of new banks
formed by the reorganization or CONSOLE
dation of banks that have previously COM
Piled with the terms of this act with ref
erence TO the payment of assessments
Sec. 8. Notice of Assessments-Dis-
postlon-Payable on Demand-As soon as
SAID assessments are respectively levied,
the banks against which the same are
levied shall be notified Of the amount of
such assessment levied against them re-
spectiyely. by the secretary of the De-
postors' Guaranty Fund Commission, and
said banks shall thereupon set apart, keep
and maintain in their said hanks the
amount thus levied against them, and the
amounts thus levied, kept and maintained
shall be and constitute what shall be
designated as Depostors Guaranty
Fund, payable to the Depositof s. Guar :
anty Fund Commission on demand. for
the uses and purposes provided