The Bottineau courant. (Bottineau, Bottineau County, N.D.) 1895-1929, 1921-03-31
TREASURfRS ARE
HELD RESPONSIBLE:
BY Olof Ribb

BY Olof Rib
Treasurers in charge of public funds
who deposit the same with banks
without requiring a good and suffi-
cient bond are guilty Of a misdemean-
or according to the language of House
Bill No. PIP, the new depository law
enacted by the recent session of the
legislature. Section z Of the law reads
as follows:
"Any treasurer of any public cor
poration in this state who shall de-
posit public funds in any state or ma
tional bank in excess of the bond fur
nished by such bank or shall reposit
in any state or national bank in ex-
cess of $500 without a bond, and any
treasurer Of a public corporation or
the officials of any state or national
bank who fails to make the reports
required herein and any county treas
urer who fails to publish the state
ments as required by this act shall
be guilty of a misdemeanor."
According to a recent decision of
the Attorney General, the Bank of
North Dakota may still accept depos-
it's Of public funds without the form
ality Of furnishing bond to the treas
urers depositing the funds. The opin-
ion is based upon Sections /, 3, and
of the new depository law. Section 1
Of the act names all state and nation
al banks land the Bank of North Da-
kota" as repositories of public funds.
It will be seen that the Bank of North
Dakota is specifically mentioned as
if distinct from the state and national
banks. It will be seen that Section z
does not make mention of the Bank Of
North Dakota as being required to
furnish bond to guarantee deposits. It
may still accept deposits of state
funds without such guarantee and it
would therefore seem reasonable that
it should be permitted to accept de-
posits of funds from lesser political
subdivisions on the same terms.
The Attorney General also holds
that county treasurers are the sole
judges Of what banks shall be the de-
positories of county funds and the
county commissioners are without
power to direct him in the matter.
Under his oath of office the RESPONSE
bility for safeguarding public funds
rests with him and he is therefore
held to the proper official to desig-
nate the repositories.
The following letter has been sent
from the Attorney Generals office:
OFFICE OF ATTORNEY GENERAL
State of North Dakota
= "March 22, 1921.
''To All County and Municipal Off,
cials Charged with the Custody and
Control of Public Funds:
"Gentlemen:
"Under the provisions of H. B. No.
212, Session Laws 1921, all state and
national banks, as we'll as the Bank of
North Dakota, became legal deposi-
taries for the public funds of the vari-
Gus political subdivisions and munich
pal corporations of the state.
"1'his law provides that before any
public funds shall be desposited in
such banks, they shall furnish the
county, political subdivision, or NUM-
cipal corporation making such depos-
It with a good and sufficinet bond
to indemnify such county, political
subdivision or municipal corporation
against loss or injury in the event
such bank should become insolvent or
fail to meet it's obligation as such de-
positc1y.
"The Bank of North Dakota, having
the resources of the State behind it,
is not required to furnish such bond;
and the treasurer depositing any
funds in the Bank of North Dakota is
exempt from all further liability. Sec
ton 8 Of the Act creating the Bank of
North Dakota reads as follows:
"When any Of the public funds
hereinbefore designated shall be de-
posted in the Bank of North Dakota,
as hereinbefore provided, the official
having control thereof, and the sure
ties on the bond Of every such official
shall be exempt from all liability by
reason Of loss of any such deposited
funds while so deposited. !.
"The public funds of this State, and
it's various political subdivisions, an
sacred, and should be protected by
every possible safeguard and at all
hazards. Upon the safety Of the public
funds depends the welfare Of the en-
tire state and any public official who
would use such public funds for polit-
ical consideration il unworthy of his
trust.
A large number of private banks in
this state have recently disclosed their
inability to pay the Bank Of North
Dakota money which it had redepos-
tied with them in the usual course Of
business This condition is due to the
financial stringency which exists
throughout our state and nation. We
assume that it is unnecessary for Us
70 advise you that public funds de-
posted in such banks are not entirely