The Miller press. [volume] (Miller, S.D.) 190?-current, 1916-10-26

soIution OF such corporation, It shall rom
DER judgment dissolving the same. and
me officers Of u bank shall at once
fUsward 70 the public examiner for the
mes OF ms office a copy of such judgment
81 rendered. properly certified by the
clerk OF the court within and for the
c0 seey ~ N which such bank operated.
Hands of Public Examiner-Any bank
gong business under this act, may place
us affalrs and assets under the control
III tios .n on PUBLIC examiner by. posting a no.
Llce on It's front door as follows: "This
panK is In the hands of the public examin-
er: Immediately upon posting such no.
nee such bank shall notify the public
such notice or taking possession of any
oank by the public examiner, shall be suf-
Hclent TO place all its assets and property
81 whatever nature in the possession Of
as q par TO any attachment proceedings,
and n attachment lien against such
property, acquired within thirty days
next preceding the taking Of such posses
sion by such examiner, shall be thereby
released and dissolved.
For each and every day the public ex-
aminer shall be so placed in possession Of
the bank. such bank shall pay to the De-
OF FIVE dollars; all such fees to be paid
by the Department Of Banking to the
state treasurer for the credit of the Con-
tingent Fund of this department.
Sec. 80. Deposits Defined-For the pur-
pose Of this act, the term deposit" or
deposits shall be construed to mean
deposits subject to check" dividends
posits," trust deposits" certified
checks" cashiers Checks" "due to
other banks" Except overdrafts on cor
r~espondents), demand certificates Of de.
posit," time certificates of deposit" and
COLLECTIONS made but not remitted;" pro-
vided, that when any bank has borrC wed
money on its bills payable, which by the
grants permission, 10 the loaning bank
to appropriate and apply any credit ball
ance which the books of the loaning
banks show to be due or owing to the
bills payable without regard to the date
of maturity thereof, the money received
on such bills payable by such borrowing
bank shall be deemed deposits" within
the meaning of the term deposit as
herein defined.
Sec. 81. Cash Reserve-Percentage-
How Determined-Every bank shall keep
on hand at all times at least twenty per
cent Of its total deposits, OF which said
portion as the board of directors may
determine, may be on deposit in banks
approved by the public examiner as re-
serve banks, which banks shall at all
times keep on hand at least twenty-five
per cent Of their total deposits in lawful
money or on deposit in banks subject to
as reserve banks.
Cash items shall not be considered as
a part Of the reserve OF any bank ana
any overdrafts on correspondents which
may exist, shall be deducted from the to.
tai amount of "cash and due from banks
before the reserve percentage shall be
computed. The percentage OF reserve
manner to-wit: After makin the
deductions hereinbefore required, II neces,
sary, the total net amount OF leash and
total deposits" as hereinbefore defined,
and the result shall be the percentage OF
Sec. 80. Reserves Must be Kept u
Whenever the reserve Of any bank shall
fall below the amount herein required to
be kept, such bank shall not increase Its
loans or discounts otherwise than by dis
payable at sight or on demand, and the
public examiner shall notify any bank
whose reserve may be below the amount
required herein, to make good sucn re-
serve, and in case-the bank fails for thir-
ty days thereafter to make good such re-
serve, the public examiner is hereby au
thorized to take charge Of and to vino
up the affairs Of UGH bank.
Sec. 80. Loans-Amount Limited-Ne
individual, firm or corporation transact
ing a banking business In this state, shall
loan to any single corporation nr N; or I'm IN:
made to the several members Of such cor
poration, firm or co-partnership, more
than twenty-five per cent OF the paid VI
capital and surplus of such bank, Ant
in no case shall the total liabilities OF thu
several stockholders of any bank includ.
ing any and all liabilities of any firm Of
corporation in which such Stockholders
may be interested. to such a bank, exceed
fifty per cent of the paid up capital o
said bank. But the discount Of bills o
exchange drawn in good faith agains
actually existing values, and the discoun
of commercial paper actually owned by
the person negotiating the same shall no
be considered as money borrowed by sucf
person.
Sec. "a. Same-Penalty-Any officer, di-
rector or employe Of any bank transactins
a banking business in this state, who shall
knowingly permit or allow shareholder
of such bank to at any one time become
indebted to such bank in a total sum ex'
ceeding fifty per cent of the paid up capii.
tai Of such bank, as covered by section 80
shall be deemed guilty of a felony, anC
upon conviction thereof shall be subject
to a fine of not to exceed five hundred
dollars. or by Imprisonment not to exceed
three years in the state CENTENARY o.
Sec. 35. Loans to NEUTRALITY-SUSPICIOUS.
Employees-No partnership, firm or in
dividual transacting a banking business
in this state, shall be permitted to carr!
any note or obligation Of any such part.
nership or firm or individual of any OF
the member of such partnership or nrm
as any part Of the assets of the bank. Anc
no officer or employee of any corporation
transacting a banking business in this
state shall be permitted to borrow any Of
the funds Of the bank upon his own note
L OF ODllEdLloH IN ha 80 'fN
the approval Of a majority OF the board OF
directors of the bank to each specific loan
and the approval, If obtained, shall be
properly recorded In the banks minute
book. No such loans shall be made with
out ample collateral or a responsible en-
dorser, and each and every loan SO made
| shall be Immediately reported in detail
to the public examiner.
Any individual member Of a firm, part
nership, officer, director or employe who
shall violate the provisions % TINS section
shall be deemed guilty of embezzlement OF
the funds of said bank to the extent OF
said note or obligation so given and or
conviction thereof shall be punished by
a fine not exceeding one thousand dollars
or Imprisonment in the penitentiary not
to exceed five years, or both in the dis
erection of the court.
Sec. SO. Investment Of Funds-Certair
Loans Prohibited-No bank shall employ
it's moneys, directly or indirectly, In trade
or by buying or selling goods,
| chattels, wares and merchandise, and
shall not invest any Of its funds in the
stock OF any other bank or corporation,
nor make any loans or discounts on the
security of the shares OF its own capital
| stock, nor be the purchaser nor holder
of any such shares unless such security
or purchase shall be necessary to prevent
loss Upon a debt previously contracted In
| rood faith: and stock so purchased or
| acquired shall, within six months OF the
lime OF it's purchase, be- sold or disposed
Of at Pubilc, or p mnntbs sals; si aster sto 9es
shaIl not be considered as a part OF the
| assets of such bank.
Nothing herein enacted shall be con-
strued to prevent any bank existing un-
der the provisions Of this act from quail
| fying to enter the Federal Reserve Sys-
| tenn and purchasing shares OF stock of the
| Regional Banks, in accordance with the
| federal statutes, except that such banks