The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1916-11-02

money It has on deposit not eligible to
guaranty under the provisions OF this act.
shall be deducted from the total deposits.
Sec. I. Interest on Deposits-No bank
transactins a banking business under this
act shall pay interest on deposits, direct
~ or indirectly, at a greater rate than
nVe per cent go per annum.
ANY ofticer, director or employe or n
bank violating the provisions OF his sec.
ton, directly or indirectly. shall be deemed
guilty OF n felony and on conviction there
Of shall be punished by a fine of not less
than one hundred dollars or more than
IN the state penitenttary for a term OF not
less than one year nor more than thru
years. or both. in the discretion of the
court.
Sec, s. Averaged Annual Statement
False Statements-Penalty-Any bank
commencing business and receiving de-
posits less than twelve months prior to
the date when the statement referred TO
IN section three is required TO I've made
and filed shall show the average daily de-
posits for that portion of the said annual
oeriod during which 1t has 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
of a felony and be punished 10y a fine OF
not less than three hundred dollars nor
more than one thousand dollars. or by
Imprisonment in the state penitentiary for
a term of not less than one year nor more
IMAM 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 4 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
men due from 1t TO the Depositors' Guar
anty Fund.
Sec. T. New Banks-Any bank organ
lzed subsequent to January 1st. 1916. shall
pay into the Depositors' Guaranty Fund
an amount equal to four per cent of its
capital stock, when such bank opens for
business, which amount shall constitute n
credit fund, subject to adjustment ON the
basis Of said banks average daily de-
posits, as shown by the first annual state
ment required by section three of this
article.
The Depositors' Guaranty Fund Com
mission is authorized and empowered to
make such an adjustment OF the rates Of
assessment 10 be paid by any bank which
'hSages In the banking business subse-
quent 10 January LIST, 1916. and shall re-
pulre such bank to contribute to the De-
p~oSltors' Guaranty Fund, a just and oluit-
nble sum, and the Depositors' Guaranty
fund Commission shall adjust assess
ihents or such bank so that the first two
assessments, together with the credit fund
or four per cent of tho capital stock paid
by said bank when il begins business,
snail at least equal one per cent of the
shown by the first annual statement re-
CURED by section three of this article.
PROVIDED. however. that said four per
cent VIII not be required of new banks
formed by the reorganization or CONSOLE
dalton OF banks that have previously COM
pied with the terms Of this act with ref
erence TO the payment OF assessments.
Sec. y. Notice OF Asscssments-Dis-
position-Payable on Demand-As soon as
said assessments are respectively levied,
the banks against which the same are
levied shan be notified OF the amount Of
S1lCn lGseGEn1anf IANtnd a Uatnct thAp, N
Spectively, by the secretary Of the De-
posters Guaranty Fund Commission. and
said banks shall thersupon set apart. keep
and maintain in their said banks the
amount thus levied against them, and the
amounts thus levied. kept and maintained
snail be and constitute what shall be
Fund, payable to the Depositors' Guar
anty Fund Commission on demand, for
the uses and purposes provided.
sec. 3 Guaranty Fund-Assessment-
FAllure to Credit-Whenever any bank
AFTER due notice from the secretary Of
ne Depositors' Guaranty Fund Commits
son shall fail 10 pay over or credit on
IL books to the Depository Guaranty
fund any assessment rs herein provided.
ior n period Of ten days, such bank shall
pc subject to a penalty OF ten dollars per
day Tor each DAY II so refuses or fails to
pay over or credit to such Depositors'
Guaranty Fund such assessment, and the
public examiner shall Immediately there
AFTER take possession Of the affairs OF
49, ''i'N anu bINi'ltlP us business As
herein provided for making final disposi-
ton of insolvent banks.
Sec. 10 Depositors' Guaranty Fund
First Observation-Disclosures any
BANK doing business in this state under
the provisions OF this act shall sueuend
paynent or become insolvent, the amount
'f money standing to the credit of the De-
9%ositors' Guaranty Fund on deposlt in
such bank, Fhall be "A first lien upon the
assets Of such institutions; save and ox-
Gept FUNDS deposited in such institution
~ the public examiner and belonging 10
me estate or any insolvent institution.
which shall have preference over all other
claims as provided in Section 10 of Ar
tcle | Of this act.
Sec. II. Depoeits-Payment-Wben apv
bank doing business under the provisions,
OF this act suspends or becomes jnsoI.
vent, the public examiner shall forthwith
proceed to determine the amount neces.
Sary to pay the unsecured depositors in
tulI, and cause the same to be certified
10 The Depositors' Guaranty Fund Com
mission, which shall thereGpon draw
'ealnst the DepositOrs' Guaranty Fund
on deposit in the several banks. in tho
amount thus certified and the treasurer
OF said commission shah Immediately
transmit the amount to the public OK
aminer to be applied I'm payment OF the
deposits due such depoeitors.
Provided, however, that il there should
not be '"fhct"nt funds in the Depositors'
Guaranty Fund TO pay said claims. then
ne Depositors' Guaranty Fund Commits
SION shall issue n certificate Of indebted
ness, ncGOtlable IN form, against the De-
posters Guaranty Fund and in favor q,
such bank, dra wing interest at the ratc
pf I'VE per cent per aunum which Sa III
certificates or indebtedness shall bacomc
due and payable on The first day Of March
next succeeding the date Of issue thereof
and shan be paid ont of the first money
n""ruing TO the Dcpositors' Guaranty
Fund.
Such drafts against the Depositors,
Guaranty Fund shall be pro rated. as
nearly as may be, among the several
solvent banks wherein the same is as
lforeSaid kept and maintained. in ac-
tordance with the mounts thereof held
by such banks respectively.
Sec. IL. Subrogation-To the extent
of the amount paid from said Dcporitors'
Guaranty FunG to satisfy the claims Of
post tors, the Depositors' Guaranty Fund
ConmiSsloH, for the use and benefit Of
SAID lund. Sfaii y" e"hrogated to all the
Of the depositors thus paid. TO-
participate IN the assets II such bank and
he same sh'N be enforced and collected
by the pubic examiner accordingly and
when collected shall be placed in said
md and deposited by the DeposjtCre'
Guaranty Fund Commission in The sol
vent banks subject 70 the provisions or
the Depositors' Guaranty Fund. pyopor-
T .onate as to the several deposits TO
The assessments levied against each of
said banks.
Sec. IL. Same-Reports-The public ex-
aminer or examiner in charge of any sus-
pended or insolvent bank, possession OF
ons Of this act, shall make TO The pr.
"nEffnrg' sl ~ nft, Er-pI