The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1916-10-26
No. a..
RELATING TO BANKING AND
FINANCE.

Epacting and Submitting to a vote OF
the Electors Of the State a PROPOSED
Law, Entitled An Act Creating a state
Banking Board and Defining the POW
ers and Duties; Creating a Bank De
posters Guaranty Fund; AQthorizlhs
the Levy of Assessments against Bank
Stock, Providing for the liquidation or
Insolvent Banks; Admitting Nati0hai
Banks, Prescribing Penalties Tor Ike
creant Officials; Authorizing RewGfus
for Criminals.
Whereas, Under the Provisions OF Sec
uon ], of Article 3. OF the Constitution OF
The State of South Dakota, and Article 3
Of Chapter 2, OF the Political Code OF sad
State, a Petition has been Filed IN the
Office OF the Secretary OF state, signed by
More h Five per centum or me
Qualified Electors of the State In the
Manner and Form Therein Directed. peti-
tioning that the Following Proposed Law
be Enacted and Submitted to a Vote or
the Electors Of the State at the next
General Election. Certified Copies OF SAID
Petition having been Transmitted to the
Senate and House OF Representatives. by
the Secretary Of state. .
Be II Enacted by the Legislature OF
the state Of South Dakota:
Section /. That the following Act pc
and the same Is hereby enacted and sub
mittcd to a vote OF the electors OF thlS
state at the next general election to be
held IN the year 1916, for their approval.
AN ACT Entitled, IN Act Creating n
State Banking Board and Defining IT'S
Powers and Duties; Creating q lfahh
Depositors' Guaranty Fund, Authorizing
the Levy Of Assessments against Bank
Stock; Providing for the ldquidatlon or
lnsolvcnt Ranks, Admitting National
Banks; Prescribing Penalties for Re-
creant Officials; Authorizing Rewards
for Criminals.
BE II 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 Da-
kota, 10 be composed or the governor
10 Z, t,1,tatpgr sFI ufatn pn1ifnr which
board shall have the power and 1t Is
hereby made It's duty. TO carry out and
enforce the provisions OF this act, The
governor shall be eX-ofhciO president OF
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 his hands, belonging TO the
depositors' guaranty fund hereinafter pro-
vided for. The public examiner shall be
ex-oflcio secretary of said board and
shall combine his duties as such with
the duties required OF him as public ex-
asainer.
Create Guaranty Fund-There Is hereby
levied In assessment against the capital
stock of each and every bank, or bank
Ing corporation, organized, existing and
conducting a banking business under the
avs OF the State of South Dakota, and
porated, under the laws of said state,
during Its continuance in business, for
the purpose OF creating a depositors' guar
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
After. The average daily deposits of each
bank during the preceding year prior TO
- the basis for computing the amount OF
the first payment Of the levy hereby
made.
Sec. 3. Bank Cashier to Make Report
Credit Assessments-Penalty for Fail
u~re--Vithin thirty days after the talk
ing effect OF this act. the caahier. or
other officer in charge OF each and
every bank organized and doing bust
ness under the laws OF this state,
shall make n sworn report of the condi-
Sion OF such bank In the form now pre-
scribed by law and shall Immediately for
ward said report to the public examiner.
and shall forward a copy thereof to the
treasurer OF the State Banking Board.
Said report h be supplemented by a
daily deposits Of such bank for the pre-
ceding year, or for any shorter period
such bank may have been organized and
doing business, If less than one year. Said
statement OF daily deposits shall not in
ctude 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 any
such secured funds, through the failure Of
such bank. AT the time of making such
report and statement, the cashier or other
officer In charge of any such bank shall
pass to the credit of the State Banking
Board as q deposit. the amount due the
Deposltors' Guaranty Fund as the first in
stallment OF its assessment, and shall for
ward the receipted deposit tickets pro-
vided for by Section Fourteen GD. ANY
cashier or other officer In charge OF any
~ NIX QIhtaHt IN tho TRnNioinna - tIs- -
who shall neglect or refuse for a Speriod Of
ten days to comply with the provisions OF
this section or who shall wilfully make a
false report Of the condition OF the bank
under his charge. or of the amount Of its
daily deposits, as herein required, shall
be guilty OF a misdemeanor and upon con-
viction thereof by a court OF competent
jurisdiction, shall be fined in a sum not
less than $500. 90 or more than $500 90 to be
paid into the Depositors' Guaranty Fund.
Or by Imprisonment In the county Jail not
exceeding six months, or by both such
nne and imprisonment, In the discretion OF
the court.
Sec A. Bank Report Deposits-Basis
and Adjustment OF Accommodations wear
alter the taking effect Of this act, and
annually thereafter. each bank doing BUSH
ness under the laws of this state. shall
report to the public examlne the amount
OF Its average daily deposits for the pre-
ceding year, and, IL such deposits are In
excess OF the amount upon which the last
payment OF the levy hereinbefore provid-
Cd for or any special assessment herein
after provided for, shall have been COM
puted, each bank. having such Increased
deposits, shall Immediately pay into the
Depositors' Guaranty Fund, a sum sufh-
Client to pay any deficiency OF said last
payment or payments as shown by such
Increased deposits, and II the deposits OF
any such bank shall a decreased dur
ing any year in which any such assess
ment or assessments shall have been paid,
the excess thereof shah be refunded and
placed to the credit Of such bank as shall
10 entitled thereto by reason OF such de-
GPeased deposits. In computing the aver
age daily deposits Of any bank. there shall
- deducted all funds Of the United States
Government, otherwise secured. and of the
State Of South Dakota. and of any coun.
~ or other body polite which are other
wise secured. as provided by law. and
b. liable for the loss OF any such funds.
Sec. s. Special Observation-Disclosures
nlOn-Whenever, after the expiration OF
enc year from the taking effect OF this act
The Depositors' Guaranty Fund shall be,
0ome impaired or be reduced below on,
1or entum of the average daily deposit.
g - such banks. by reason Of pc yments 4
(opositors Of failed banks. the State Bank
1nx Board shall q the power and l
Hall. be it, duty to levy . special assess
mont against the capital stock of eacl
Ink subject TO the .provisions Of thu
~. 20 restore such impairment or re
AUCTION TO an amount not exceeding tw'
- oentum Of the average daily deposit.
Soeciai assessments shall not, In any on
S{SR. 6xceed one-hAlf Of one per centuz
Snch doposits.
s7 Eortincato Of Indabtodnona IN