Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1916-10-21

u.
tne excess thereof shall be refunded and
placed TO the credit Of such bank as shall
De enttied thereto by reason of such de-
creased deposits. In computing the aver
age daily deposits of any bank, there shall
be 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
the Depositors Guaranty Fund shall not
be liable for the loss of any such funds
Sec 5. Special Assessment-Limita-
tion-Whenever, after the expiration OF
one year from the taking effect of this act
the Deposltors Guaranty Fund shall be-
come impaired or be reduced below one
per centum of the average daily deposits
OF such Danks by reason OF payments TO
deposltors OF failed banks, the State Bank
ing Board shall have the power and il
SHAH be Its duty to levy a special assess
ment against the capital stock OF each
act 10 restore such impairment or re-
ductlon 10 an amount not eXceeing two
per centum of the average daily deposits
OF SAID banks. but the aggregate of such
special assessments shall not, in any one
year, exceed one-hah of one per centum
of such deposits.
Sec 6. Certificate of Indebtedness Is
sued-When-lf the amount in the De-
positors' Guaranty Fund and the amount
realized from such special assessment
shah be insufficient TO pay off the depos-
itors of all failed banks, having valid
claims against said Depositors' Guaranty
Fund, the State Banking Board shall issue
unpaid deposits Certificate OF Indebted
ness for his unpaid deposits a Certificate
bearing interest al the rate of six per
cent per annum, which certificates shall
10 signed by the secretary and counter
signed by the treasurer of said Board
and shall be negotiable. said certificates
be paya bic out of the Depostors Guaran-
Y Fund upon call Of the treasurer of the
State Banking Board, In the order OF their
issue, ~ like manner as state warrants
are paid by the state treasurer A copy Of
said call shall be mailed under first class
postage to the holder of every such Ger
tlhcate, at his last known posuOfhce adj
dress and three days thereafter interest
shall cease un0n az! certificates so called
fer payment Provided, that IL any such
Certificate OF indebtedness shall be drawn
In payment az deposit for which con-
tract rate OF interest existed between
such failed bank and such dcpositOr no
higher rate shall be allowed than was
PROVIDED for hv said contract
See, q Certificate of Indebtedness Paid,
How-The State Banking Board shall
irom year 70 year levy special assessments
. !tll stock OF all banks, subject to the pro-
visions OF thts' act, until such certificate
Of Indebtedness, with the accrued interest
thereon, shall have been fully paid, ana
until the Depositors' Guaranty Fund shall
be restored to an amount equal to two
per centum OF the average daily deposits
Of said banks.
Sec. s, Assets Of Failed Banks-How
Applicd-As rapidly as the assets Of
failed banks are liquidated and realized
upon by the public examiner, the pro-
ceeds thereof shall be applied first after
the payment of the expenses of lquida-
tion, 70 the repayment to the Depositors'
Guaranty Fund of all money paid out OF
said fund to the depositors Of such failed
bank and the remainder, If any. shall be
applied by the State Banking Board to-
ward refundtng any special assessment
levied by reason OF the failure Of such
liquidated bank, after the pepositors'
Guaranty Fund shall be restored to two
e a-I I,of,
provided
Sec. 8. Assessment When
= Whenever the Depositors' Guaranty Fund
shall reach an amount equal TO three per
centum of the average daily deposits of
all banks subject to the provisions Of
this act. and after all deposits of failed
banks have been fully paid and all cer-
uhcates Of indebtedness redeemed, the
state Banking Board may suspend the
payment of annual assessments - proVid-
ed for in Section two (2), until the said
fund shan be reduced to two per centum
of the average daily deposits of said
banks: Provided, that no annual assess
ment herenbefore levied shall be suspend
ed until notice Of such suspension shall
have been issued By the State Banking
Board % said banks subject thereto.
Sec, 10. state to Have First Lien ON
Assets.l The State Of South Dakota shall.
after the expense Of liquida tion Of anv
such failed bank has been paid. have
of such bank and the liabilities of an
stockholders. officers and directors there
of, az well as against all other persons.
firms or corporations obligated to the said
bank, and She attorney general shall,
upon rNfaiest of the public examiner. en-
force the provisions OF this section In
tl'n name Of the State Of South Dakota
for tho benefit of the Depositors' Guar
antv Fund.
$50 - New Banks ks-Assessment Lev
ind-How-SlI banks organized under
'he laws of this state. subsequent to the
taknr effect OF this act. or less than on~
xear previous thereto, shall pay into the
peuositors' Guaranty Fund three per cent
of The amount Of their capital stock when
they open for business, which amount
Sha = constitute credit fund, subject e
adjustment on the basis of it's deposits.
as rtovided for banks established oTe
year o more. which adjustment shall Be
nsde citc year from the dat such bank
HoUrmenced business. and thereafter the
denost computing date Of such bank shall
h tae same as other banks subject TO III
provisions Of this act; Provided, said
.hree per cent payment shall not be rs-
CURED Of new banks formed by TIE ro.
C.ganization of banks which have preri
ously compiled with the terms Of rhis
az.
Sec e Deposits in National Banks
How--Any National BanK
located in the state Of South Dakota.
may secure :or is deposltors the protec-
tion provided for depostors In ssate
banks, by tnis act upon rnLIdng applca-
ION in Writing TO the State Banking Boar
10 examination by the public examiuc;
Of TINS state. in like manner as now p, .
Viden by law for state BANKS. u tne
pubic examiner shall approve OF the cox
dltiors OF sucn National Bank. it's presl-
dent and secretary shall, with the appl3v-
al of the boaru of directors thereof. enter
into I, contract wish the State Banking
Board ag.eeinG to transmit reporls u
the condition of such pank wheneYer ca1-
ed for by the pubhc examiner and 10 sub
NIT to said ruo:ic examiner, as often as
he may reur;;re. the accounts and d ssetz
of such banx, Cor examination The saia
contract shan also condition that the sad
national pank win honor all assesssmenLs
for rne Depositors Guaranty Fund, arc
In all other respects comply with and 20
subject TO the provisions OF this act, reat-
inL 10 sta,e banks, insofar as the sanlP
are not In CONFLICT with the laws OF tie
United States; Provided, that II, after
any such contract snail be entered ilSs
between such bank and the State Bahh-
:as Board. the United States Congress
email enact a law for the insurance OF l.-
positors in National Banks. or II the
comptroller of the Currency shall pro-
nbit such bank from availing itseh ca
me provisions of this Act or iT sucn
bank shall, of it's own voition, desire to
withdraw and no longer claim the pro-
lection Of the Depostors' Guaranty Fund
for its depositors, any such bank shall be
released by tho State Banking Board
under this Act, and the Depositors'
Guaranty Fund shall no longer be liable
for losses to the deeostors of such bank,
but no such bank shall be released from
the conditions of this Act or its contract
with the State Banking Board until after
it has made application in writing and
shall have received a release in regular
form from the State Banking Board
signed by it's President and Secretary,
which shah be issued only I'm pursuance
OF an examination of such bank by the
public examiner, showing the said bank
TO be solvent Provided further. that all
assessments which shall have been paid
TO the Depositors' Guaranty Fund. by
any such National Bank, so withdrawing,
which have not been paid and are not
due to depositors Of failed banks, less
ten per cent of such assessments, so re-
manning unappropriatcd, shall be refund
ed to said bank but no such bank shall
be allowed to withdraw until all assess
ments levied against 1t as hereinbefore