Arizona state miner., 1925-03-07
cox NEW BANKING LAW

Following is Senate Bill a. famil-
iarly known as the New Banking Law
introduced by Senator J. J. Cox:
An Act to amend Sections 3, IS. 10,
% and 81, of Chapter 81 of the Special
Session Laws of the Fifth LEGISLATURE
/ of Arizona, 1922
Be it enacted by the Legislature of
| the State of Arizona:
Section l. That section of Chap
ter 81 Of the Special Session Laws of
the Fifth Legislature of Arizona, 1922,
| be and the same is hereby amended
to read as follows:
Section 8. Superintendent of Banks.
zine chief officer OF such department
shall be the Superintendent of Banks,
who shall be appointed by the Gov
ernor. by and with the advice and
consent of the Senate, and such Off
Ger shall be appointed to serve for
term OF four years from and after the
date of his appointment; provided,
that the first Superintendent of Banks
to be appointed under this Act shall
hold office until the 1'th day of .Janu-
ary, 1923, or until his successor is ap-
pointed and has qualified. No person
shall be appointed who has not been
citizen of this State for at least two
years prior to his appointment, and
who has not had at least four years
experience in banking, unless he shall
have heretofore served as State Bank
Comptroller of the State of Arizona.
Before entering upon his duties he
shall qualify by taking and subscrib-
ing to the constitutional oath of office,
and execute to the State a bond to be
approved by the Governor, in the sum
or $zO,OO0.0O, with a surety company
authorized to do business in this State
as surety, conditioned for the faithful
performance of his duties. The prem
iums on such bonds shall be paid by
the State. Said oath and bond shall
| be filed with the Secretary of State.
Said superintendent of Banks shall
receive salary of $7,50OOO per an
mum, payable semi-monthIy, and his
actual and necessary travelling ex-
penses."
Sec. 2. That Section IS of Chapter
81 of the Special Session Laws of the
Fifth Legislature of Arizona, 1922, be
, and the same is hereby amended to
read as follows:
Section IS. Loans to Officers Pro
h1b1ted. No officer or director of any
banking corporation organized or ex-
listing under the laws of Arizona shall
borrow any money from such bank"
Sec. 3. That Section 19 of Chapter
81 of the Special Session Laws of the
Fifth Legislature of Arizona, 1922, be
and the same is hereby amended to
read as follows:
Section 19. Loans to Persons. Cor
pOrations, Etc The total liability to
any banking corporation of any per
son or any one company, corporation,
or firm, for money borrowed, shall at
no time exceed ten per cent of the
amount of the capital stock paid in
and of the surplus earned and set
aside as surplus fund of such bank:
but the discount of bills of exchange
drawn in good faith against existing
values, and the discount of CONNER
clal or business paper actually owned
by the person negotiating the same,
snail not be construed as borrowed
money. Deposits of commercial banks.
with commercial banks, or the COM
merclal department of banks having
commercial and savings departments,
on open accounts to facilitate busi-
ness transactions shall be permitted
and shall not be construed as loans"
Sec. 3. That Section 90 of Chapter
81 of the Special Session Laws of the
Fifth Legislature of Arizona, 1922, be
and the same is hereby amended to
read as follows:
Section %. Liability of Stockhol-
ders. The stockholders of every bank
ing corporation or association shall
be held individually responsible,
equally and ratably, and not one
for another for all contracts, debts
and engagements, of such corporation
or association, to the extent of three
times the amount of their stock there
in, at the par value thereof, in addi-
ton to the amount invested in such
shares of stock, and in case of the
dissolution or liquidation of any bank