-"wf !im
t
VOLUME 9, NUMBER 8
mi
by tho stato banking board until a statement shall
lavi boon lod with said board, that tho proposed
J crwiio i of capital has been paid In, and Bald
statement shall bo sworn to by tho pros dent or
cashier. Second, whenever any corporation trans
acting ft banking business lii this stato shall de
nim to go into voluntary liquidation, thoy Bhall
llt'Ht obtain tho wrltton consent of tho stato bank
ing board, who may, If thoy doom it advisable,
before granting such request, order a special ex
amination made of tho affairs of such bank, for
which tho samo feos may bo collected as la reg
ular examination. . ...
Sec. :ifi. Every stockholder In any banking1 cor
poration transacting a banking business undor
this act shall bo llablo to tho creditors of such
' bank for an amount, over anu auovc mo anuru ur
shares of stock so held, equal to tho paid up
valuo thereof, for all liabilities accruing while
Buch stock Is owned or held by such shareholder,
and In caso any person holding any stock In any
banking corporation shall sell, transfer or dis
pose or such Block, knowing that such bank Is ln
tiolvont, ho shall bo deemed tho owner of such
utnntr nn1 llnhlii llinrnnn flin HILITIO nH if SUCll BtOCk
lin1 tint linnn hmM f vntiHforrnil or diSMOHOd of:
uiw.Ii lln)illltf mnv Iw nnfnrpnil wiionovnr
linnlrlticr nnmnrni Inn Hliftll bo Rdltldircd
and
Riinh
insolvent
without regard to tho probability of tho assots of
such Insolvent bank, being sufficient to pay all of
Us liabilities.
See. so. Any corporation, designating its dubi
ncHH as that of a savings bank, shall have power
to carry on a savings bank business, as prescribed
and limited In this act. Any savings bank may
rocelvo deposits from the general public, and all
doposlts In any bank shall bo paid to depositors,
or tholr lawful representatives when required and
at such time and with such intorest and under
such regulations as Bhall bo proscribed by said
bank and approved by tho stato banking board,
which regulations shall bo printed and conspicu
ously posted in somo placo accessible and vislblo
to all persons In tho business ofllco of said bank.
Tho funds of any savings bank, oxcopt tho rescrvo
provided for In this act, shall bo Invested In bonds
o( tho United States, or of any stato of tho United
Statos, or In tho public debt or bonds of any
city, county, township, vlllago or school district
of any stato of tho United Statos, which shall
havo boon authorized by tho loglslaturo of tho
stato, or shall bo loaned on nogotlablo paper,
eoourod by any of tho above mentioned classes or
soonrJty, or upon notes or bonds secured by mort
gago Ucn upon unincumbered real ostato; Provided,
that second mortgago loans may bo mado on Im
proved farm lands, but no loans shall bo mado
on suph Improved farm lands, or other real ostato
which including tho aggregate amount of incum
brance thereon, shall oxcocd fifty per cent of tho
caBh valuo thoroof, or upon notes secured by col
lateral security of known marketable value, or
held as caBh, or Bhall bo deposited In good solvent
banks; Provided, that chattel mortgages shall not
2aJ?,lllicS11atornl. sedu.rlty and savings banks
are prohibited from Investing tholr funds in. them.
Sec. 37. A pass-book shall bo Issued to each
depositor In a savings bank for all monoy deposited
fOnniani,oponittC00Un,t Such pass books shah con
tain tho rules and regulations adopted by such
nYi"?s bank govorning such deposits. In such
pass books shall bo onterod each deposit mado
unless In tho pass book at tho tlmosK trans
action Is had. t Provided, that no ting in this socl
tlon shall prohibit a savings bank from issuing
?atoB for legitimate3 deposits. Prodded
nll0vhen any deposit is mado in any savings
bank by a porson being a minor thn ni7i ilv?5
may pay to such depositor ouch sums ae IS
Sec. 38. Tho president and cashier or thn o
names and residences of all tho stock ioMte
atHaaaBss
county jail not less than thirty nor moi-otiSS
81 q& ll&'8' VJP VV,ln th? aisorotlffl ? of the cftt
bee. 30. It shall bo unlawful for nnv nm. '
sBa-a.? flsi'if as" s -! F
JflfSVa'i ffiillf S kno!gJ550vf,l?n5r bnn,c
tlio provisions tfiBUoffK? J,loln.ti,1ny "'
and llniiiiiHoa tr i'".i. ra,".sror Its rosoureos
process of consolidating but no VLii0".1 ls ln
bo mnrto wii,, Vi.):,"5,f"t.no. consolidation shnli
E
bo made without" the consent of r
Payoff an W&BfcVfira ,WWto by
a certified statement with tlX fSJ,Ind iU.Uon "Hnp
setting forth tkctiLtilfu? b,oard
been paid, and tho siirronderlni nf H.illt,e?.Jmvo
of authority to traiisan? ri5i.?' u? certificate
simu ceaso to bo subject to th & ,uua,noss, it
net; provided, that tho atnV1 ,0. W.0.)!8'0"8 ?f this
k uu,"ubr ooara shall
The Commoner
ftSE S trtros? od!l0iolVyal?Ua
liabilities, except to stockholder havo been paid.
Sec. 43 Any bank may place its affairs and
assets undor control of tho stato banking board
by posting on its door tho following notice: "This
bank is in tho hands of tho state hanking board.
Tho posting of such notice, or tho taking posses
sion of any bank by tho stato banking board or
by any bank oxaminor, shall be sufllcient to place
all of its assets of whatever nature, Immediately
in tho possession of tho stato banking board, and
shall operate as a bar to tho levying of attach
ments or executions thereof, and shall operate to
dissolve and relcaso any attachment levied thereon
within thirty days next preceding such action.
Sec. 44. For tho purpose of providing a guar
anty fund for tho protection of depositors In banks,
every corporation engaged in tho business of bank
ing undor tho lawB of this state, shall bo subject
to assessment, to bo levied, kept, collected and
applied as hereinafter provided.
Sec. 45. Within thirty days after tho taking
effect of this act, and on tho first day of De
cember, 1909, and on tho first day of June and
December of each year thereafter, every corpora
tion engaged in banking under tho provisions of
this act, shall make and fllo with tho stato bank
ing board a statement in writing, verified by tho
oath of its president, vlco president or cashier,
showing tho average dally deposits ln its bank
for tho preceding six months, exclusive of public
money othorwiso secured. And on tho first day
of tho month next succeeding tho date fixed for
the making and filing of such statement, tho
state banking board shall levy assessments against
tho capital stock of each of said banking corpora
tions as follows: Within sixty days after tho
taking effect of this act, one-half of ono per cent
of tho average dally deposits, as shown by tho
first statomont of such average dally deposits
required to bo mado and filed by tho provisions of
this section; on tho first day of January, 1910,
one-fourth of ono per cent of tho average dally
deposits, as shown by tho statement required to
bo mado and filed on tho first day of December,
1909; on tho first day of July, 1910, one-fourth of
ono por cont of tho average daily deposits, as
shown by tho statement required to bo filed on
tho first day of June, 1910; on the first day of
January, 1911, and on tho first day of July and
January of each year thereafter, one-twontloth of
ono per cent of the average dally deposits, as
shown by tho statement thereof required to bo
mado and filed next preceding such assessment.
Provided, however, that any bank commencing
business and receiving deposits less than six:
months prior to tho date when tho statement
referred to in this section is required to bo mado
and filed shall show tho average daily deposits
for that portion of the said semi-annual period
during which it has been engaged in business and
receiving deposits.
Sec. 45. Any bank organized subsequent to
tho dato whon this act takes effect, shall pay into
the depositors' guaranty fund, four per cent of
tho amount of its capital stock when such banlc
opens for business, which amount shall constitute
a credit fund, subject to adjustment on tho basis
pf said bank's average daily deposits, as shown
by tho first two semi-annual statements required
by section 45 of this act. Tho baniclng board is
authnrinoa ana umpowercd to make such an ad
fwo1"01 ? the rates of assessments to bo paid
by any bank that engages in tho banking business
subsequent to the timo when this act tales effect!
as shall require such bank to contribute to the
depositors' guaranty fund, a just and eaultablo
sum and tho state banking board shall adjust
assessments of such bank so that the first two
assessments, together with tho credit fund of four
per cent of the capital stock paid in by said bank
whon It begins business shall at least equal ono
per cent of the average daily doposlts of the said
bank as shown by the two first semi-annual state
ments required by section 45 of this act Prol
vided, however, that said four per cent will not
bo required of new banks formed by the re-orirSS-izatlon
of consolidation of banks that havo
yiously complied with the terms of this act with
reference to tho payment of assessments
Any person making oath to any of tlio stat
ments herein required, knowing the sum? ?n ?
false, shall bo deemed guilty of a . folSSy and h2
punished by a fine of not less than ono huJfdro
nor more than one thousand dollars or hnfm
pri!onied ln the Penitentiary for a term of nn
ess than ono. nor more than flvo veari o? v?u
In tho discretion of tho court Gars, or both
less than ono per cent of tb ,ioii amount
deposits, as shown by tho last 5L.aferas?
statements thereof filed, tho Hfnt m "an,nPal
board shall levy a spec rtal assessmmS 2,,baiik!nS
capital stock of tho corpbratlonanvWiniSt tno
provisions of this act to i covor S"idV tn
which special assessment ahal P be f b5s0dfli0,Viy'
said average dallv deDosltq nmi ,. ased on tho
for the purpose of ffic5&&Mroiqu,ro.a
tors, said special assessment ZT Lt0ftloposl"
ssssf.tja'tinn S3 pnS Q7
this act is impaired or tftfe business under
conducting its hi wines? In an nSVcorporatlon J
zed manner, or Is i endaniSHn unF uuthor
its depositors, or upon thJ ISnSro of nitorests of
tlon to make any of the renortq n? J? corPra
qulred by the provisions of ffi statements ro
wlth tho provisions of said aSi iaSn or to C0"Ply
state banking board shall comn un LtnSp?ctsV "'0
to tho attorney general who qiVniiV0 tho fcts
an application to bo made to tbnhVp,on causo
of the county where ! cVrpSatina'lntaffs
its bank and is thus conducting: Its business or
to any judgo of such court, for tho appointment of
a sultablo person as receiver to tako charge of the
business, assets and property of ovory kind of
said corporation and to wind up its affairs. Pro
vided, however, that i tho judgo or judges of tho
district court of tho county whore such applica
tion should bo mado bo absont therefrom at tho
timo such application is to bo made, any judco
of tho supremo court may appoint such receiver
but all proceedings in relation to such receiver
ship thereafter shall bo had before tho district
court, or a judgo thereof, which might havo ap
pointed such receiver in tho first instance, and
tho petition and the order appointing such receiver
shall bo forthwith transmitted to tho clerk of
such district court. It shall bo sufficient to au
thorize tho appointment of a receiver if any of
tho facts heroin enumerated as a ground for the
application for a receiver be mado to appear.
Sec. 49. Tho court or Judge, appointing a re
ceiver under the provisions of this act, shall, in
tho order of appointment, fix tho amount of his
bond in an amount sufllcient to protect all per
sons interested ln tho assets and affairs to bo
administered by such receiver, and tho receiver,
before entering upon his duties as such receiver,
shall give a bond in the amount thus fixed, with
surotles to bo approved by tho clerk of said court,
conditioned that ho will faithfully and impartially
discharge such duties, and well and truly account
for all money and property coming into his hands
as such receiver, and -disburse tho same in con
forming to the order of such court or judge, and
to tho provisions of this act. Upon the approval
pf such bond and tho taking of tho oath required
by law, tho porson thus appointed shall have full
power and authority, as receiver under the pro
visions of this act.
Sec. 50. After tho stato banking board, a bank
examiner or receiver shall havo taken possession
of any bank under the provisions of this act, tho
stockholders thereof may repair its credit, restore
or substitute its reserves, and otherwise place it
in condition so that it is qualified to do a general
banking business as before it was taken possession
of as aforesaid, but "such bank shall not bo per
mitted to reopen its business until the stato bank
ing board, after careful investigation of its affairs,
is of the opinion that its stockholders Tiavo com
plied with the law, that theT bank's credit and
funds are in all respects repaired and all advances,
"..ny pado from the depositors' guaranty, fund,
wI , interest, fully paid, Its reserve restored or
sufficiently substituted, and that It should bo per
mitted again to ro-open for business: whereupon
said stato banking board is authorized to issue
written permission for re-opening of said bank
in the same manner as permission to do business
Is granted after the incorporation thereof, and
thereupon said bank may be re-opened to do busi
ness under its charter originally granted under
this act.
?ec V-'-l. As soo,nas a receiver, appointed under
SlS-aSK bas qualified, which .shall bo within "ten
days after his appointment, tho court in which
aon P?dInsB a?a Pfnne. or a judge thereof
shall make an order fixing tho time for filintr
claims against tho corporation whoso propertv il
under such receivership, which shall not bo more
than sixty days from the dato of such orderand
notice thereof shall bo given forthwith, by post
ing a copy of such order on the front door of the
bank, and by publication thereof in some news
paper published ln tho county, to be designated
tePkcourt or iu.dBe making 'such order. fSr at
fixed. successive weeks prior to the date thus
Sec. 52. The claims of depositors, for donoslt?
Srfori?yaIm,ver0f alhl0lS?r f i S,xchan shall P hafo'
;?;; y 0Vir aH other claims, except federal
atDe, ounty and municipal taxes, and subject
5uch J-a CSV sha11 at tbe time of tho closing
of tho bank bo a first lien on all the assets
of the banking corporation from which the?
are duo and thus under recelvershln inning
ing the liability of stockholders and, upon prSSf
h,e& they ,sh.a11 be Paid immediately oSt of the
available cash in tho hands of the receiver If
tho cash in tho hands of the receiver ava.iin.hiA
for such purpose, be Insufficient to pay thYclaiml
of depositors, tho court In which tlio recelvern
Is pending, or a judgo thereof, shall dote5mTn thS
amount required. to supply tto doflffiv 5
cause the same to be certified tS the slatSy,bankd
wlKra
plied-jon the said cla?msof depositors' t0 b aP"
unS0,ahaS?fb8o pfSlSWW S
among tho sevfraf Solvent bank7 may e
same is so as aforesaid f kept and mnn1 tho
baSpee!?0 &TV3nftJ&
safdgSaraSy 'tSnTtTsl !". J?aId r,m
posltors tho state banking board ?ola!,mB of de
ly. and whSn collcotod yshin hncelv1Sr Vordlns-
are pending, or a Judtro wV su,ch Proceedings
otho? andnftrfhor oiSefS aSfSJ&rSih W S4h
as may bo necessary or nronnr tT f. udemonts
admlnfstration of such recefvoroh SSUnSfla Pro,pe
and equitable distribution nf ?k1,Up' aP a Just
banking corporation amonc itJhnr0aets of ,such
others entitled to parSSnati! tiild,tora Jind a11
the provisions of this act threin, subject to
tltate'-bakynarri?1 h?n ordercd
under the provisions Thereof ?nr0C.lvcr "tinted
winding up the affairs of hS0 tn,e PPrPose of
authority to tako noSsessinn nf(ioi,a,lk' ,sha11 have
tho order of appoFAment sbnfi anyi anlc to "Ich
the possession &2uchLnir "if Selatc and reta,n
credits and property of ?vn! moneysi, rrghts,
against any mesne or iinm JSy description, as
court against such LSil1!100088 Issed by' any
has boei?athu5 taken l)y suchhov0,P6rty of vhIc
and until such mo as all n H?am,,n.r receiver,
bank havo been fully in 8 1 Slrl1,afb11 t,os I soh
any attachment lion against a,mdIsharErld' and
quired within thirtv dnvJ , v. .uch P.rPerty. ac
ing of such possossltm bJ "7u0ffrovSJSB th tak"
cciver as aforesaid, lQ3X&LoI i
