Pierre weekly free press. (Pierre, S.D.) 1889-19??, 1916-11-02

olnee ouiy verlncd copy OF suc1 oiaS
security as may have been issued there
with. and if such bills payable Is con-
tinued by renewal either in a greater or
newal obligation and collateral pledge OF
security shall be forwarded to the public
examiner forthwith: Provided, further.
is borrowing habituaiiy Tor the purpose Of
reloaning. the public examiner may re.
quire such bank to pay off such borrowed
money.
Nothing herein contained shall prevent
any bank from rediscounting In good
faith and endorsing any of its negotiaole
paper to an amount equal to one-halt OF
its capital stock.
1t shall be unlawful for any bank to
issue it's certifica ties of deposit for the pur-
pose of borrowing money. In all cases
where money is borrowed a bank shall
the true amount of borrowed money on its
books and in all reports and statements
required or contemplated within the p pro- ,e, ,
S's No bank on 'n Shall if' make aReeT partial Gia.S payment
upon certificates of deposit.
Any officer of a bank in this state VIC,
lating the provisions of this section, shall
and upon conviction shall be subject to a
hne OF not less than one hundrs ea,, aos,a rs
the discretion of the court.
Sec. 3S. Checks-Certifed When-1t
shall be unlawful for any officer. clerk, or
agent of any bank doing business under
der drawn upon the bank unless the per
son, firm Or corporation drawing, such
check, draft or order, has on deposit
with the bank at the time such GRAFT.
check or order is certified an amount Of
money equal to the amount specified In
such check, Any check, draft. or order
so certified by the duly authorized Oh
against such bank.
Sec. 80, Bad Debts-An debts due to
due and unpaid for a period of six months,
unless the same are well. secured or m
process of collection. shall be considered
bad debts and shall be charged off to
an overdraft of more than sixty days
standing be allowed as an asset OF any
bank.
Sec. 40. Undivided Proits-Surplus
Observation-Disclosures board Of directors
of a bank may declare a dividend from
so much of its net profits. after proyid5
taxes accrued. or due from said bank, as
they shall deem expedient; but before
any such dividend is declared not less
than one-tenth of the net profit of the
such period as is covered by the dividend,
shall be carried to a surplus fund. untll
such surplus fund shall amount to twenty
per cent of the capital stock. Any losses
sustained by any bank in excess OF It's
undivided profits may. be charged to it's
surplus account, provided that its surplus
.uli'i sli'hi lIiS VIC 49,
its earnings, and no dividends shall he
declared or paid by any such bank unit
it's surplus fund shall be fully restored
Sec. Al. Dividends Not to be Declared,
When-No dividends shall be paid to any
s~tockholder of a bank except out of the
net profits properly applicable thereto,
and which shall not in any way impair or
diminish the capital; and if any such shall
be paid, every stakeholder receiving the
same shall be liable to restore the full
| amOnnt tharpOf unless the canital be sub
s%equently made good; and if the directors
of any bank shall pay a dividend when
of insolvency. or when they do not have
good reason to believe that there are suf-
hcient net profits properly applicable
thereto. without impairing or diminishing
the capital, they shall he Jointly and sew
orally liable to the creditors of the corpo-
ration at the time of declaring such divi-
dends, to double the amount thereof.
Sec. AZ. Officers Liable-EXcessivc
Loans; Overdrafts-lIach and every officer
and director of any bank shall be held
personally liable for all excessive loans
made by his bank, in such amount as
such loan may be il! excess Of the amount
limited by law, and his liability thereon
shall be the same as though such paper
was endorsed by him, but to the extent
only of the excessive amount. He. shall
also be held personally liable for any and
all overdrafts allowed by his bank.
Sec. 43. EmbeZzlement Punished
Penalty-Every president. director, cash
Ter. officer, teller, clerk or agent of any
bank who embezzles, abstracts or will
fully misapplies, or wrongfully diverts to
MS own use through the use Of accomm
cation notes or credits, any of the moneys
tunds, credits or property of the bank,
whether owned by IT or held in trust,
or who wrongfully withholds payment or
remittance of the proceeds of any collec-
ton which may come into his hands, or
who without authority of the directors is
sues or puts forth any certificate of de-
post, draws any order or bill Of exchange,
makes any acceptance, assign any note,
bond, draft. bill of exchange, judgment
or, decree. mortgage. or who makes any
false entries in any book, report or state
ment of the bank or report or statement
provided for or contemplated within the
case to injure or defraud the bank or
any person or corporation. or to deceive
any officer of the bank, or any other per.
son, or anyone appointed to Examine the
affairs of such bank; or any person who
with like intent, aids or abets any officer
clerk or employe in the violation of his
section shall be likewise guilty. and upon
conviction thereof shall be imprisoned in
the state prison for a period of not less
IMAM nVe nor more than twenty years.
sec. a. Charter-How Forfeited-If the
board of directors or g quorum thereof
or any committee of such board of any
bank, shall knowingly violate or knowing
~ y, permit any of the officers, clerks OF
the provisions of this act. such directors
shall Jointly and severally be liable for
the amount of the loss sustained thereby;
800 "itNi " ana lldle ny lHG DuD-
lie examiner they shall fail for a period
Of thirty days to make good any loss OF
damage resulting from such acts. or con
tinue such conduct, it shall constitute suf-
fcient reason for the forfeiture of the
charter Of such bank, and it shall there.
upon be the duty of the public examiner
TO institute proceedings to enforce such
FORFEITURE and to secure a dissolution OF
Its existence and thereafter the business
and affairs of such bank shall be disposed
OF IN the same manner as herein provided
for the disposition Of insolvent banks.
Any bank which neglects or fails tc
open, for business within one year from
the date on which it's charter was issued
or any bank that has liquidated its liza
bliities in full and discontinued business
operations for a period Of one year, shall
be deemed to have forfeited its charter,
and to have no further legal existence.
Sec: As. Liability Of Stockholders-The
stockholders of every bank shall be indi-
vidually liable. equally and ratably, not
oHe for another for the benefit OF the
creditors of the said bank to the amount
Of their stock at the par value thereof
in addition to the amount invested in such
stock. Such liability shall continue for
one year after any transfer Of stock. as
to the affairs Of the bank at the time
and prior to the date of the transfer. But
persons holding stock as executors, I'D
m~inistrators. guardians or trustees, and
4