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


ital to not less than ten thousand dollars
and such further amounts as are necss-
sary to comply with the foregoing require
ments as to capital and populations wnsn.
ever their deposits average ten times
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 it's capital and
surplus, the same to be determined ~
the average of its deposits for six months
Sec. 8. Articles of Incorporation-Con
tents. The person so associated shall
make sign and acknowledge written ar
tices of Incorporation containing:
First. A 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 To-
Fourth. The amount of capital stock,
which shall be divided into shares of one
hundred dollars each.
dence of the shareholders and the num-
ber of shares held by each.
Sixth. The period for which such bank
/ is organized, not exceeding twenty years,
and the date on which il shall commence
and terminate it's corporate existence.
| Seventh. The names and places Of resi-
| dence Of the several officers and di-
/ rectors, and the number of shares of the
/ capital stock Of such corporation owned
and held by each of such officers and
/ Sec. T. Filing Articles--Certified
Copies. such original Articles OF In
corporation, verified as such, by the af-.
/ fidaVit 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
| 10 the Secretary Of state who shall re-
cord and file the same in his office
A like verified copy of said Articles OF
! Incorporation certified by the register of
deeds Of the county where such bank y
to be operated, shall at the Same time
be forwarded to the public examiner
Sec. S. Power of State Banks. Upon
making and filing of Articles OF Incor-
this article, and the receipt of authority
| from the public examiner to commenqe
business, the bank shall become bog
corporate and as such shall have the fol-
| lowing powers:
First. To make all contracts necessary
and proper to effect its purpose and soe.
Second. To sue and be sued. to appear
and defend in all actions and proceed
ings under Its corporate name to the
same extent as a natural person.
Third. To have a common seal and
alter the same at pleasure.
Fourth. To elect or appoint all neces-
| sary officers agents and servants, define
their duties and obligations. fix their
compensation, dismiss them, fill vacancies
| and require bonds.
Fifth To make, amend and repeal by
laws and regulations, not inconsistent
| with the law or Its articles of incorpora-
ton, for Its own government, for the
| orderly conduct of its affairs and ths
management of its property. for .determin-
ing the manner of calling and conducting
its meetings, the tenure OF office OF ite
several officers; and such others as shall
be necessary or convenient for the ao-
complishment Of It's purpose.
Sixth. To exercise. by it's directors,
such powers as shall be usual in carry
ing on its business OF banking; by buying,
discounting and negotiating promtssory
notes, bonds, drafts, bills OF exchange,
| foreign and domestic, and other evidences
Of debts; by receiving commercial and
savings deposits under such regulations as
It may establish n,,lin by buying and s ssiiins I'M
ing exchange, foreign and domestic; issu-
ing letters OF credit, and by loaning
money on personal and real security, as
Sec 6. Business Not to be Transacted. ]
No bank shall transact any business. ex-
cept such as is incidental or necessarily
preliminary TO It's. organization, until II
has been regularly authorized by the
public examiner to commence the busi-
ness of banking.
complete record showing In detail the
nature OF all business transacted as con-
remplated 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.] The subscriptions to capital
stock and the direction Of the affairs o(
directors shall be in conformity with the
statute relating to corporations regulates
such matters. SO far as the same may b
applicable.
Sec. 9. Certificate Of Authority-whsu
Granted Whenever Articles Of Inoor-
poration are filed with the public exam-
iner. as herein provided. and the bank
transmitting the same notifies the public
examiner that Its 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.
been fully paid in, the name and place OF
residence Of each of it's directors, and
whether such bank has complied with all
entitie it to engage in the business Of
banking. IL. upon such examination. IL
appears that such bank is lawfully en-
examiner shall forthwith give to such
bank a certificate under his hand ana
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 ad sice and consent Of the attorney
general withhold the certificate herein
provided for, and 1t is further provided
that. the public examiner may wtthhold
the issuance Of such certificate to q bank
seeking to engage in business In q town
which n his Judgment does not Justify or
warrant new or additional bank or
where II is evident that the application
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 sf
certificate of authority as hereInbefore
provided for and issued Hereunder to b
the town where such bank Is located,
within ten days after receiving the same.
If no newspaper Is published in such
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
the same shall be filed with the public
examiner.
--Oath-Bond.l The affairs and bus.-
ness OF bank shall be managed and
controlled by board of not less than
five directors, a a. majority Of VII. whom shan a
and shall be elected by the stockholders
at their regular stated annual meetings,
} which shall be held on the second Tues.
day, or any day thereafter, in January OF
} 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 ad
Joining such county, within the state OF
South Dakota.
No person shall be eligible to serve as
director of any bank organized or ex-
isting under the laws OF this state, un-
less he shall be a 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 until
the next annual election.
Any director, officer, or other person
who shall participate in any violation OF
the laws of this state relating TO banks
or banking, shall be liable for all dana ges