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

and which shall not in any way impair or
diminish the capital; and II any such shall
be paid every stockholder receiving the
same shall be liable to restore the full
amount thereof unless the capital be sub
sequently made good; and IL the directors
Of any bank shall pay a dividend when
the corporation is insolvent or IN danger
of insolvency, or when they do not have
good reason TO believe that there are suf-
fcient net prof1ts properly applcable
thereto, without lmpairing or diminishing
the capital. they shall be jointly and sew
orally liable to the creditors Of the corpo-
ration at the time OF declaring such diyi-
dends, TO double the amount thereof.
Sec A. Officers Liable-Excessive
Loans; Overdrafts-Eac and every officer
and director Of any bank shall be held
personally liable for all excessive loans
made by his bank, i'm such amount as
such loan may be in excess Of the amount
limited by law, and his liability thereon
shall be the same as though such paper
was endorsed by him, but 20 the extent
only OF the, excessive amount lie shan
also be held personally liable for any and
all overdrafts allowed by his bank.
Sec q. Embezzlement Punished
Penalty-Every president, director, CASH
bank who embezzles, abstracts or will
fully misapples. or wrongfuily diverts to
his own use through the use OF accommo-
dation notes or credits, any OF the moneys.
whether owned by IL 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-
posit draws any order or bill Of exchange,
makes any acceptance. assigns 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 10 inf1ire or defraud fhe hank or
any person or CORPORATION. or to deceive
anv officer of the hank. or any other per-
son. or anyone appoinfad 10 examine the
afrqlrs Of such bank. on anv perso1 who
with like intent aids or abets anv officer
clerk or emDloye i'm the violation OF This
section eha1i ~ liFr,,-es r,,iit,- 0ar5 ,,ror,
the state prison Tor reriod OF not loss
than five nor moro +1-f tyvcnty ,.aars
Sec a. Cbartcr-Ffru Forfeited-rf The
boa rd nf H., rFors or % quorum, +1,orecf
on amy COMMITTEES Of guch hoard ~ anv
bank. shall knoWjps,ly violate or krn,viJ,g,
" pcrmtt anv Of the officers cIer}ss or
employees Of the bank 10 violate any Of
the provisions Of This act sucb directors
shall Jointly and sever4IIv he lieble for
tba amount of tbo los erIGta med trara,,,,.
and II after "a demand made nv tho nt,b
lie examiner thev sbaU faI for ,,6rioS
of thirty davs 10 make rood anv iass or
dan,ape' res1iltinp, from, srcb ao+s or con >
tinue such conduct. n sb3lf cnnstit,1ta s,,f-
flcient reason for the forfeiture OF the
charter of Gllrh hg nix and If shall thara-
upon be the duty of the public examiner
10 Institute nroceedings 10 enforce s,,cl,
forfeiture and to secure a dissolution OF
it's existence and thereaf fter tbe bnsirees
and affairs of such hank shall he disnosed
OF in the same manner as herein provided
for the disposition Of ;nsolvent banlss
" Any W bank which negiects sc or ''ians faiIs 70
omen for businees within ono Haar fro,,
the dste on which its charter was issned
~ any hanl, tbet roe jiC,ido 81 its Ia ~
bilities in fun and discontinued business
operations for a period of one wear snail
he deemed to have forfeited ifs cbarter
and 10 have no further legal existenca
Sec az Iiability of StoclxboidersN The
stockholders Of every hank shall he indie
viduollv liable enualIv and rata NJ, 80
one for another for The beneft of the
creditors Of the said banl, 10 the aynonnt
Of their stock at the mar value theTeof
in addition 10 the amount Invested in sSIc5
stock. such liability shall contfnme Tor
ono Iear after any fronsfar ~ stnci, -
10 the affairs of the bonL a. ~ t,,ao ao
and prior To the date of the transfar p,,t
ners6ns holding stock as executors nd
,py'i1IStra tors e1,aTdisns Or tr,,St' aa
persons holding stock as colIa teral sacnr-
Nv which stoel, M such institutjon r.
not been transferred NJ record tno1 +ba
hool,s thereof In fbo name ~ +tal J,I,, ~
or persons holding the same or ygbers % q
cola taraI pledge covering sucb s+ocI- he
NOT been foreclosed and iudonent an
tered thereon. shall NOT he nersopaii,,
Iiable as stocISholders but the arsets ~,
funds i'm their hands consfitutine the
trlIst shall he liable 10 The same evteInt
as the testator. intestate vard or ~
son Interested in such trnst f,,nd up,,I5
he n living or comnetenf to act ana tha
neraon niedeinp such stock ebau ba
deemed the stoclxholder aud liz HE ,pder
this section.
sec az Shares of STOCK u-ho, -.
Observation-Disclosures shares Of stocI ., -
incorp..ated hank shall be deemed VI nern 1ii
sonaI property ara shall be tronsfarrad
~, tbo hoalys ~ the hanL IN $50 ,ss ,sleI eu @
vided that the mere delivery from, ona
holder 10 another upon proner . assien,rent
OF the certificates OF shares of sfoct
shall not he deemed 70 he a transt. " :
ownersbip OF .slch stock within The meant
ing az the nrovisions ~ this act
No transfer of stock shall he valid
while the bank is under notice to make
good an imnairnent ~ it's canitaI aS
nrovided herein nor until si,ch innair1
inent shall have heen made GOOD
All transfers of stock shall he certified
TO the nublie examiner immedjateIv fol-
lowing such transfer
Sec AZ Transfer of stock nv Debtor
TO -F,ffect-No transfer NJ stock of
any bank formed under this act shall be
valid as against tbe banf So long as
the registered holder thereof shall he
liable either as princinal debtor s,,retv
or otherwise TO the dissertation for any
debts vrbicb shan he 5na "a ,,,,naid. ,,or
in such cases shall any dividend inter-
est. or profits he maid on such shares so
lorg as such Iiahilities conffnue. hut all
such dividends interests and motifs shall
be retained hv tbe hanl, ana onnlied To
the discharge of s,,ci, uah;iitiesi ana No
stock shall Re rsanssarrnd ,non tba hooi.s
of the hanl, without tba concon+ ~ a mo
toritv az Tho dira,.tors wbile tha regis-
, tered holder is indehted 10 tho Mani,
Sec az Denosits hv Miners and I'm
married Fennales~STrnst Denceits-yUhe
ever anv denosits sbajI he made in anv
bank bv and in the name az any ,ninor
or female being or tbareaft fer R becoming
a married ,von,9n Tho aa,1e shall he haId
for the excIusive riebt and hereat ~ such
ruinor or female ana free from tba Con-
troll or lien of ali narsons yyhonsoever
except creditors and sbaii he maid with
any interest dine thereon to the nerson in
whose name the denoSit sbaIl hpya haen
made, and the recent of such minor or
tlischar S'ist s pc u suieishl reiease VI
Whenever anv dannsit shan be nade bv
any person in trust for anotber and M
other or further notice NJ The axistance
and terms ~ n lsoal ana vaIid trnst shall
have been given in writing IN sucb hank
i'm the event Of the daatb Of he trnstae
the eap,a -, ~. ~ -, stf - . ~ @ usVS'