Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1931-05-07
CHAPTER Oh. F. No. 164.

An ACT to amend MasOn's Mime
sofa Statutes of 1927, Section 1877,
relating to loans, investments and
discounts of state banks.
Be it enacted by the Legislature OF
the State of Minnesota:
Section 1. That Mason's Minnesota
Statutes of 1927, Section 1877, be
amended to read as follows:
"7677. The total liabilities to it, as
principal, surety, or endorser OF any
person, corporation, or copartnership,
Including the liabilities of the several
members thereof, shall never exceed
fifteen Q5) per cent of it's capital
actually paid in cash and of its ac-
tual surplus fund. Provided that for
the purposes CT this section the men,
bers of a family living together in
one household shall be regarded as
one person and the total liabilities
of the members of such family shall
be limited as herein provided. Pro-
yided, however, that loans not eX-
ceeding % per cent of such capital
and surplus made upon first mort
gage security on improved real estate
in the State of Minnesota or in an
adjoining state within 20 miles of the
place where the bank is located, shall
not constitute a liability of the maker
of the notes secured by such mort
cages within the meaning of the
foregoing provision limiting liability
but shall be an actual liability of
such maker; provided, that such
mortgage leans be limited to, and
in no case to exceed forty (4O per
cent of the cash value of the security
covered by such mortgage; provided
further, that commercial paper &C
tually owned by the person negotiat-
ing the same not exceeding 10 per
cent of the capital stock and surplus
taken from any one person, shall
not constitute a liability within the
meaning of this act, but shall be an
actual liability of the maker. The
total liability of any officer or d.
rector shall never exceed ten per
cent of the same aggregate amount.
But the discount of the following
classes of paper shall not be re-
garded as creating liability within
the r: ,aning of the section, viz:
Il. Bonds, orders, warrants. or
other evidences of indebtedness of
the United States. of Federal land
banks, of this state or of any county,
town, city. village, or school district
in this state, or of the bonds of any
other state in the United States.
"2. Bills of exchange drawn in
good faith against actually existing
values.
SO. Paper based upon the collat-
eral security of warehouse receipts
covering agricultural or manufacture
ed products stored in elevators or
warehouses under either of the fol-
lowing conditions:
"First-When the actual market
value of the property covered by such
receipts at all times exceeds by at
least ten per cent the amount loaned
thereon.
"Second-When the full amount of
every such loans at all times covered
by fire insurance in duly authorized
companies, within the limit of their
ability to cover such amounts, and
the excess, if any, in companies hav-
ing sufficient paid-up capital to au-
thoriZe their admission, and payable
in case of loss, to the bank or holder
of the warehouse receipt, unless ac-
companied by certificate of the rail-
road and warehouse commission de-
claring the warehouse issuing the
same to be fireproof.
whenever bank shall allow any
person, co-partnership or corporation
to become indebted to it, directly or
indirectly. in excess of the amount.
exclusive of interest, permitted by the
laws of this state, the officer or en-
ploye of such bank wilfully permit
ting or approving such loan shall be
guilty of a gross misdemeanor and
in addition thereto shall be personally
liable to the bank for the amount of
such loan in excess of the statutory
limit
Approved February 7, 1881.