Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1921-03-24
new DEPOSITORY
LAW OF N. OAK; 4 K
ITS PROVISIONS

Exact Wording OF psslbly
Most Important Act Passed
by Last Legislative Assem-
bly, States Funds Are
Protected by Bonds
The new depository law5fpf the
state is perhaps in more genayal de-
mand throughout the state than any
other law. The Alert prints here
with the full text of the law
Chapter No..
H. B. 212 (Hanson Of X Grand
Forks).
Legal Dcpositorics
An Act Designating, Legal Deposi-
tories for the Funds of all Public
Corporations and providing the
procedure and the Regulations
under which such Funds shall be
Deposited.
Be It Enacted BY the Legislative AS
sembly OF the State of North Da-
kota: &
Section 1. All state and national
banks in the state OF North Dakota
complying with the provisions of this
act, and the Bank of North Dakota
are hereby declared to be legal de-
positores Of the public fundsspf the
various counties, townships, Sschool
districts, cities and villages and the
various treasurers of said corpora
tions shall deposit all funds lii their
custody in such banks a.;
Sec. 2. Before any deposit, shall
be made in any depository by.2Or i'll
behalf of any of the corporations
enumerated in Section l of this act,
such depositor shall furnish u bond
payable to the public corporation.
making such deposit, in an am0llnfS
that shall at least equal tl!spi ss.,estt
deposit that may at any time be in
such depository: said bond shall be
in conformity to form prescribed
by the attorney general and the
amount and suftlciency by the board
or governing body OF such corpora
ton. II the board fails or refuses
to approve any such bond the same
may be presented to the judge Of
the district court upon three days
notice to the clerk or auditor of the
board of the corporation to which
such bond was submitted and the
judge shall forthwith proceed to
hear and determine the amount and
sufficiency of such bond and may
approve or disapprove the same as
the facts warrant. If he approves
such bond the said bank shall be
declared depository Of the funds
of such corporation. The sureties
on all bonds required by public cor
porations according to the prOvi-
sions of this law shall justify as
required by law in arrest and bail
proceedings Provided, however
that in lieu of such personal bond
the board of governing body of the
corporation involved may require
such bank designated as depository
to file a surety bond in a sum equal
to the amounts of funds such bank
may receive according to the provi-
sions of this act. The bond when
approved, shall be deposited sMith
the county auditor. Such Il bond
shall be continuing bond and shall
continue binding, but in no case in
volving the deposit of funds OF pub
lie corporations shall such bond be
continued without renewal thereof
for a longer period than four years.
This section shall not apply to pub
lie corporations as enumerated in
Sec. 1 of this act where the amount
in the treasury of such corporations
does not exceed the sum of five hum
dred dollars. The treasurer ofopublic
corporations having on hand less
than five hundred dollars and there
fore not within the provisions of this
section, shall deposit all the funds
belonging to such corporation in
some bank under such conditions
and restrictions as shall seem ade-
1uate to protect the public interest.
Sec. 8. When two or more banks
in the same county or the county in
which such corporation is located.
proposing to become repositories Of
fer the same rate of interest it shall
be the duty of the treasurer to- select
repositories as offer ample security
for such deposit. In estimating the
value Of the security offered by any
proposed depository the capital, sur
plus, and general credit of the bank
shall be taken into consideration, as
we'll as the bonds proposed to be
given. provided, however, that il
the rate of interest offered by the
Rank of North Dakota is equal to or
greater than. that offered by the
state or national banks within said
county, the treasurer Of such cor
.poration may deposit so much of the
public funds Of the said corporation
in the Bank Of North sDakota as he
shall deem proper without regard to
the amount Of deposit in state q
national banks. I'll s.a 'ss3s
Sec. 4. To the extent that public
funds are deposited as herein pro-
vided the legal custodian thereof
and the snreties on his bond. shall
be exempt from all liability thereon
3l1Ya re,a annt nf alnas az anY shIlch funds,