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banking: board in the manner hereinafter, provided,
which charter shall issue only to corporations
duly organized for the transaction of such business.
Sec. 12. A majority of the members of the
board of directors of any banking: corporation
transacting business under the provisions of this
act must bo residents of the county wherein such
bank is located, or of the counties immediately
adjacent thereto, and every director of a bank hav
ing a capital of less than, fifty thousand dollars
($50,000) must be the owner and holder of at least
one-twentieth of the paid-up capital stock in his
o.wn name and right, and in a bank with a capital
of more than fifty thousand dollars ($50,000) every
director must own and hold in his own namo and
right not, less than three thousand dollars ($3,000)
of the paid-up capital stock.
Sec. 13. The paid-up capital stock required, to.
entitle a corporation to a charter under the pro
visions of this act, shall be as follows:
In no case less than ten thousand dollars; whore
the bank is located in a village or town of more
than one hundred, and less than five hundred in
habitants, not less than fifteen thousand dollars;
in towns or villages of five hundred or more, and.
loss than ono thousand Inhabitants, not less than
twenty thousand dollars; in towns or villages of
ono thousand or more, and less than two thousand
inhabitants, not less than twenty-five thousand
dollars; in cities or villages of two thousand or
more, and less than five thousand inhabitants, not
less than thirty-five thousand dollars; In cities
of five thousand or more, and less than twenty
five thousand Inhabitants, not less than fifty thou
sand dollars; in cities of twenty-five thousand or
more, and less than one hundred thousand inhabi
tants, not less than ono hundred thousand dollars;
in cities of ono hundred thousand or more in
habitants, not less than two hundred thousand
dollars.
The entire capital stock shall bo subscribed, and
at least fifty per cent thereof paid- in, before such
.charter shall be issued to any corporation authoriz
ing it to. transact a banking business In this state;
and such paid in capital, including the Initial and
subsefluent payments, shall consist, at the time,
of lawful money, credit with depository banks,
to bo approved by the state banking board, na
tional, state, county or municipal bonds, bank
furniture and the necessary bank building, and
the lot or lots upon which such building is situated,
which said lot or lots shall bo free from Incum
brance; but national, state, county and municipal
bonds shall not constitute, in the aggregate, moro
than one-half, nor the bank building and the lot
or lots upon, which it Is situated, together with
the bank furniture and fixtures moro than one
third of the paid in capital, nor shall such furnl
turo and fixtures constitute moro than one-tenth
thereof. Provided, however, that the provisions of
this section shall not apply to banking corpora
tions organized and engaged in the business of
banking at and prior to the taking effect of this
act.
Sec. 14. Every corporation transacting a bank- .
ing business under the laws of this state; shall,
within sixty days after the taking effect of this "
act, file with the stato banking board a copy of
its articles of incorporation and a full, complete
and detailed report of its condition.
Section 15. Evpry corporation, organized for
and desiring to transact a banking business, shall
before commending such business, make under
oath, and transmit to the state banking board, a
full, complete, and detailed statement of: First,
the name of the proposed bank; second, a certified
copy of the articles of incorporation; third, the
names of the stockholders; fourth, the county, city,
town or village in which the said proposed bank
is located; fifth, the nature of proposed banking
business, whether commercial or savings; sixth,
the amount of paid-up capital stock, and the
items of money and property included in said
amount.
Sec. 1C "Whenever, after the examination and
approval by the state banking board, of the state
ment provided for in section 15 of this act, the
corporation shall file with the stato banking board
the oath of the president, or cashier, that tho
capital stock has been paid in as provided for,
and-in compliance with section 13 of this act, then
the state banking board, if, upon Investigation,
it shall be satisfied that tho parties requesting said
charters are parties of Integrity and responsibility,
and that each stockholder has property subject to
execution and forced sale of the value of at least
double the amount of stock in said bank owned
by him, shall, upon the payment of certain fees
as hereinafter provided, Issue to said corporation
a charter for tno same purpose and In the same
manner as In section 14 hereof. The fees for such
charters to engage In the business of banking
shall be as follows: For banks having a capital
of twenty-five thousand dollars ($25,000) or less, the
fee shall be twenty-five dollars ($25); for banks
having a capital of twenty-five thousand dollars
($25,000) up to and including fifty thousand dol
lars ($50,000) the fee shall be fifty cents ($.50) for
each additional thousand above twenty-five thou
sand dollars ($25,000); for banks having a capital
in excess of fifty thousand dollars ($50,000) the
fee shall be twenty-five cents ($.25) for each addi
tional thousand above fifty thousand dollars
($50,000). Tho abovo fees shall be paid to tho
state banking board and by them paid to the
state .treasurer who shall place tho same in tho
general fund of tho state. On payment of tho
required fees and tho receipt of tho charter tho
Sroposed bank may begin to transact a banking
uslness. . ., .
Sec. 17. Every corporation transacting a bank
ing business hereunder shall make to tho stato
banking board not less than four (4) reports dur
ing each year according to tho form which may
be prescribed by said board, which reports shall
bo verified by the oath or affirmation of tho presi
dent, vice president or cashier, and in addition
two of the board of directors. But tho officer
administering tho oath or affirmation to tho per
son verifying such report shall be in no way in
terested in such bank as an officer, director or
stockholder.
Sec. 18. Tho reports provided for in section 17
of this act shall stato tho amount loaned upon
bonds and mortgages; the amount loaned upon
notes, bills of exchange, overdrafts, and other
personal securities, with the actual market valuo
of such securities; the amount of rediscounts and
of commercial paper past duo; the amount In
vested in real estate, giving tho cost of tho same;
tho amount of cash on hand and on deppsit in
tanks or trust companies with their names and
The Commoner.'
S,?mouxlt dcPBltcd in each: the amount of all
?.J?,rj"Kets nt enumerated above, and such other
umaton ?? ,th0. stttto banking board may re
quire. Provided, that commercial paper not In
process of collection, six months past due, with
interest unpaid, shall not bo Included in tho report
2 i, assets of such corporation. Each report
shall stato such resources and liabilities at tho
?!.05i0i business o? any past day by tho stato
WnA board specified and shall bo transmitted
to said board within- llvo days after tho receipt of
a request or requisition thorefor. And a summary
of such report In tho form prescribed by tho stato
banking board shall bo published In tho plnco
v hero such banking business is transacted, or if
,w?.,iiin? nwsnaPer tho place, theu in ono
?,Vi. i lcdi ln Hia Eame cunty. at. the expense of
SUcc,Jiank;, and P.roof ot 8Ucn Publication shall bo
nffS!toni fc? tho.. atat0 , banking board within
twenty (20) days from tho dato fixed for such
iS0? 1i9, Any corporation transacting a bank
JiY,81"08? undc,r this net, shall bo required to
i 8Uch 8pelal. ,rcPorts as may bo required
ES.,hS Btate banking board, or the chairman
thereof, to enable such board or chairman to ob
tain full and complete knowledge of tho condition
of such corporation.
Sec. 20. Any corporation, that shall fail, neglect
orJ?fU8 tcL mako or furnish any report, or any
"Hh8!10810?10, re,aulred by the provisions
of this act, or that shall transact a banking busi
ness without having first obtained a charter therc
i r'ii "- accordance with tho provisions of this act.
shall bo subject to a fine or penalty of fifty dollars
($50) ner day for each day after tho timo named
for said report or statement to bo made, that it
delays to make and transmit such report or state
ment to tho state banking board; and for each
day on which any such corporation, shall bo en
gaged in transacting a banking business in viola
tion of the provisions of this act. The fine or
penalty herein provided for shall bo recovored by.
the state, in a civil action in any court of com
petent jurisdiction, and it is hereby made the duty
of the attorney general to enforce tho flno or
penalty herein provided.
Sec. 21. Any person who shall wilfully and
knowingly subscribe to, or make, or cause to be
made, any false statement or false entry in tho
books of any corporation transacting a banking
business under this act, or shall knowingly sub
scribe to or exhibit false papers, with tho intent
to deceive any person or persons authorized to
cxamlno Into the affairs of any such corporation,
or shall make, stato or publish any false state
ment of the amount of the assets or liabilities
of any such corporation shall be deemed guilty of
a felony and upon conviction thereof shall be im
prisoned in tho state penitentiary not less than
ono (1) year nor more than ten (10) years.
Sec. 22. Every bank shall at all times have
on hand as a reserve in available funds an amount
equal to at least twenty (20) per cent of tho
aggregate amount of Its deposits. Three-tenths
of said twenty (20) por cent shall be cash in tho
vaults of the bank; provided, that in cities having
arPOP,RIatItm, of moro than twenty-five thousand
(25,000) said reserves, shall be twenty-five (25)
per cent of the aggregato amount of tho deposits;
three-tenths of said twenty-five (25) per cent shali
bo cash in vaults of the bank; provided, further,
that savings banks shall have on mma t uj tim4
as a reserve in available funds an amount equal
to at least six per cent of their aggregate de-
Rpslts. So much of said reserve fund as is not
erein required to be kept in cash In tho vaults
of tho bank shall bo kept in such depositories
as may be designated and approved by tho stato
banking board.
Sec. 23. Tho available funds shall consist of
cash on hand and balances' due from other solvent
banks. Cash shall include lawful money of the
United States, and exchange for any clearing house
association. Whenever the available funds of any
bank shall fall below tho reserve herein required,
such bank shall not make any new loans or dis
counts otherwise than by discounting or purchas
ing bills of exchange payable at sight; nor shall
such bank make any dividends of its profits until
it has on hand the available funds required by this
act. Tho stato banking board may notify any bank,
in case Its reserve shall fall below the amount re
quired, or its capital is impaired, to mako good
such reserve, or capital within such time as tho
state banking board may direct, and any failure
of such bank to mako good any deficiency in tho
amount of its reserve, or its capital, within tho
time directed, shall be cause for tho appointment
of a receiver as hereinafter provided.
Sec. 24. The aggregate amount of the redis
counts and bills payable of any corporation trans
acting a banking business In this state, shall at
no timo exceed two-thirds (2-3) of its paid-up
capital, nor shall any bank at any time permit its
loans and investments, exclusive of its reserve
and banking house and fixtures, to exceed in tho
aggregate, eight times the amount of Its capital.
Provided that the loans and Investments of any
savings bank, exclusive of its reserve and banking
houso fixtures, shall not exceed at any timo ton
times the amount of its capital and surplus.
.Sec, 25. No corporation transacting a banking
business shall make any loan or discount on tho
security of tho shares of its own capital stock,
nor bo the purchaser or holder of any such shares,
unless such security or purchase shall bo neces
sary to prevent loss upon a debt previously con
tracted in good faith; and stock so purchased or
acquired shall within six (6) months from tho
timo of its purchase be sold or disposed of at
public or private sale; or in default thereof, a
receiver may be appointed to close up the busi
ness of tho bank. Provided, that In no case shall
tho amount of stock so held, exceed ten (10) per
cent of the paid-up capital of such bank.
Sec. 26. No corporation transacting a banking
business in this stato shall bo permitted to ad
vertise the guaranty of deposit feature herein
provided except as follows:
Any such corporation may display in its place
of business a notice furnished by the state bank
ing board which shall bo uniform In all banks,
and In addition thereto may print on its stationery
tho following words: "This bank has compiled
with "the provisions of tho Nebraska law for the
guaranty of deposits."
Sec. 27. No banking corporation transacting a
banking business under this act shall pay interest
on timo deposits directly or indirectly at a greater
rate than four per cent per annum. Any officer,
director or employe of a bank violating the pro-
visions ot this soctloh directly or indirectly, shall
hnJSPJS0 tR,lty ota Many and on conviction
nn i?L8 la,l b?nunhcd, by n flno of not lcHn than
?n. inu,ndf.d. (flOO.00) dollars or moro than five
iiVdI?d doIlar ($500.00), or by imprisonment ln
tho stato penitentiary not exceeding thrco (3)
years, or both in tho discretion of tho court.
i..uVS,a2.8,..-Any corporation transacting a banking
business under this act, may semi-annually dcclaro
,u.2w!di?f 1m"ch of tho net profits as It may
thnoHMVi01' Vut ?uc.", corporation shall, boforo
Sqif.ccLalflUonn.f a dlvidond, carry one-tenth part
iJ!fBineh nronta to its surplus fund, until tho
samo shall amount to twenty (20) per centum of
its paid up capital stock.
Sec. 20. Any corporation transacting a banking
business under thin act may purchase hold and
convoy real estate for tho following purposes only:
Such as Is necessary for convenient transaction of
Its business, not exceeding ln valuo one-third of
tho paid up capital: such as shall bo convoyed
to It for debts duo tho bank, and such as it shall
purchaso at salo under Judgments or decrees upon
its securities, but tho bank at such salo shall
not bid a larger amount thnn to satisfy its debt.
No real estate so acquired In satisfaction of dobts
?S 'i1 .a. 8,a,e unoi ,tH Jndsrmcnis or decrees shall
ti?iJ1,(U.-n?ior tlVJn ,,vo V ypnrH ttnd within
thirty days thereafter must bo sold at prlvato or
public sale, and at no timo shall tho total amount
of real estate held by any bank for any purpose
exceed fifty (50) nor cent of tho paid up capital
of such bank. Savings banks shall not be sub
ject to tho provisions of this section.
Sec. 30. No corporation, transacting a banking
business under this act shall accept or receive
on deposit for nny purpose any monoy, bank bills.
United States treasury notos or currency, or other
notes, bills, checks, drafts, credits or currency,
when such corporation is Insolvent, and if any
corporation transacting a banking business undor
this act shall rccelvo or accept on deposit any
such deposits whon said corporation la Insolvent,
tho officer, agent or . mployo knowingly receiving
or accepting, or being accessory to, or permitting
or conniving at the receiving or accepting on
deposit therein or thoreby any such doposlt as
aforesaid, shall bo guilty of a felony, and upon
conviction thereof shall bo punished by imprison
ment in tho penitentiary not less than ono year
nor moro than ten years.
Sec. 31. It shall bo unlawful for two or moro
banks, transacting a banking business in tho sarno
city, town or village In this stato to have or uao
tho same name, or names so nearly alike as to
causo confusion In transacting business, and In
all cases whore such similarity of names now ox
ists, or may hereafter exist, complaint may bo
made to tho state banking board, and If, In tho
judgment of said board, such a similarity does
exist, and does create confusion ln conducting
the business of cither or both of said banks, then
said board may require tho junior bank in time
of organization to so change or modify Its name
as to prevent such confusion, and tho change, of
name so mado shall bo ap'provcd by said banking
board.
Sec. 32. No officer othor than a director, who
is not an officer and no employo of any
corporation transacting a banking business
undor this act shall, bo permitted to borrow
any of tho funds of the bank uoon his own
note or obligation or upon any.notc or nuiijrn.t
of a bank shall bo permitted to borrow any of
tho funds of tho bank without first having secured
tho approval of the board of directors at a meeting
thereof, the record of which shall be made and
kept as part of tho records of riald bank. And
any officer, director or employe ot a corporation
transacting a banking business under this act,
who shall vlolato the provisions of this section
or who shall aid, abet or assist In a violation
thereof, shall be deemed guilty of a felony, nnd
on conviction thereof shall bo punished by a flno
not exceeding ono thousand dollars ($1,000) or
Imprisonment in tho penitentiary not to exceed
five (S) years, or both In tho discretion of tho
court.
Sec. 33. No corporation transacting a banking
business In this stato shall directly or Indirectly,
loan to any single corporation, firm or individual,
including in such loan all loans made to tho sev
eral members or share-holders of such firm or
corporation, for the ubo and benefit of such firm,
corporation or Individual, moro than twenty per
cent (20 per cent) of tho paid up capital and
surplus of such bank, but the discounting of bills
of exchange, drawn in good faith, against actually
existing values, and the discount of commercial
paper actually owned by the persons negotiating
tho same, shall not be considered as monoy bor
rowed, and in no case shall the total liabilities pf
tho several stockholders of any bank, to such
bank exceed fifty per cent of the paid ln capital
and surplus of such bank. Any officer, director,
or employe of any corporation transacting a bank
ing business under the laws of this state, who
shall violate, or knowingly permit a violation of
tho provisions of this section, upon conviction
thereof shall be punished by a fine not exceeding
five hundred ($500) dollars.
Sec. 34. No corporation transacting a banking
business under this act shall withdraw, or permit
to bo withdrawn either in tho form of dividends
or otherwise, any part of Its capital. If losses
have at any time been sustained, equal to or ex
ceeding undivided profits on hand, no dividend
shall be made; and no dividend shall be mado
by any bank transacting a banking business undor
the laws of this state, to an amount greater than
the net profits on hand less tho losses and bad
debts; Provided, however, that tho capital stock
may bo increased or decreased, In the manner
following: First, tho stockholders at any regular
meeting shall by a vote of those owning two-thirds
of the capital stock, authorize the president or
cashier, to notify tho stato banking board of tho
prop'osed reduction or Increase of capital and a
notice containing a statement of the amount of
such proposed reduction or Increase of capital
shall be published for four (4) weeks in soma
newspaper published and of general circulation
In the county whero such bank is located. But no
reduction shall be to any amount less than tho
capital required by this act, and there shall bo
no reduction of capital or cancellation of stock,
until said reduction or cancellation shall first be
approved by the state banking board. Provided,
that no reduction of capital or cancellation of stock
shall bq made that will Jmnair the security of tho
depositors, and no increase shall be authorized
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