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VOLUME 9, NUMBER 13
I
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Kir
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Plf.
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4
tors of tho association may havo ready access to
It. Any violation of thlH unction shall bo punlsh
ublo by a flno of not loss than fifty, and not moro
than two hundred dollars, or Imprisonment In tho
.... k 11 .. 11.1.1.. Mj -. 4- 1 r
to tho amount specified In such cliccic; out tno
amount of such cheek shall not bo recoverable
from the payee or holder except In tho case of
fraud. Whenever a check drawn upon any bank
is certified by any oflleor or employe of such bank,
tho amount thereof shall bo Immediately charged
against the account of tho person, firm or corpora
tion drawing tho same.
Hoc. 40. .Any oflleor or employe of any bank
who shall wilfully and knowingly vlolato any of
tho provisions of sections 32 and 33 of this act,
shall bo personally liable under his bond for any
Ion to tho bank resulting therefrom.
Sec. 41. Any bank, which Is In good faith -winding
up Its business for the purpose of consolidating
with some other bank, may transfer Its resources
and liabilities to tho bank with which it is in
process of consolidating but no consolidation shall
bo made without the consent of tho state banking
board, nor shall such consolidation operate to do
feaL tho claim of any creditor or hinder any cred
itor in the collection of his debt against such
banks or either of them.
Sec. 42. Any bank may voluntarily llquldato by
paying off all its depositors in full, and upon filing
a certified statement with tho state banking board
setting forth tho fact that all its liabilities havo
been paid, and the surrendering of its cortlflcato
of authority to transact a banking business, it
shall ceaso to bo subject to tho provisions of this
act; provided, that tho stato banking board shall
cause an examination to be mado of any such
bank, for tho purposo of determining that all Its
liabilities, except to stockholders, havo boon paid.
Sec. 43. Any bank may placo Its affairs and
assots under control of tho stato banking board
by posting on Its door tho following notico: "This
bank Is in tho hands of tho stato banking board."
Tho posting of such notice, or the taking posses
sion of any bank by tho stato banking board or
by any bank oxaminor, shall bo sufficient to placo
all pr its assets of whatovor nature, immediately
in tho possession of tho stato banking board, and
shall operato as a bar to tho levying of attach
ments or executions thereof, and shall oporato to
dissolve i and roleaso any attachment levied thcrcdn
within thirty days noxt preceding such action.
i20C '1'1; -1 F. tno Prposo of providing a guar
anty fund for tho protection of depositors in banks,
ovory corporation engaged in tho business of bank
ing under tho laws of this stato, Bhall bo subject
to assessment, to bo lovlod, kopt, collected and
ippllod as hereinafter provided.
nw J'y,thl? thIVty dayB fttter tno taking
effect of this act, and on tho first day of De
cember, 1909, and on tho first day of Juno and
Docembor of each year thereafter, ovory corpora-
l , frfffafFod,, ln Vanlc," undcr tl10 Provisions of
this act.-ghaii malco-and file with tho state bank
ing board a statement ln writing, vorifled by tho
oath of its prosident, vico president or cashier,
showing tho avcrago daily deposits in its bank
fLl ?recod.,ns six months, cxcluslvo of public
money otherwlso secured. And on tho first day
of tho month noxt succeeding tho dato fixed for
Vofrtmak n,E and ,m,B of such statement, tho
iiin1 toiVUiln? b?aril 8haU lovy assessments against
tho capital slock of each of Bald banking coroom.
to$tiKitti2tZ7&l SSthln Blxty,a&yBnBatforrPOSS
r V i 01Lcct ot ""S act, one-fourth of ono per cent
first Vt? llly dcPslts. as shown by thJ
nrst statement of such avoraco dallv donniif n
required to bo mado and niod by tho p visions of
this section; on tho first day of January linn
ono-fourth of ono per cent erf tho avomo dallv
deposits, as shown by tho statement rcnuTred tn
Voftnn?adQ Andfll2d on tho nrst day of SJmbor
CVoslt." bCn ',irttBoa ln buslnoas Sv-
m&S BSffi? SSS!S.0sawtfnlf"S..o,SS ?tat.-
fnlso, aliall bo doomed culltv 5? . Aimo t0. b0
punlahoa by a One i of not Iom i lh S!7 an2 b0
nor moro than ono thousand dollaS, ,hh5,nar?1'
onod ln tlio ponltontlSry for n Urm of nnbiL7?.rU-
SffcroXn 'Srboi - ? KtWtho
XrfwSSf-U aoS H ?ll
ton 45 of thia aot. Tbo banklne boarff Is ,,S?S"
Mo'&Mon'a
state banking board shall ad ifi nH2,Jlnd tho
such bank so that tho first twe aKsm8 of
Bother with tho credit fund of fouler nn? h
cap tal stock paid in by said bank w-hnJW V10
business, shall at least equal one Be? oJl 5?BJns
average dally deposits of sad SLl no m1 of tho
tho. two first semi-annual sn,a ? l?n by
section 45 of this act. Provided howv VkS" 4y
four per cent will not be' SireTorSoaK
The Commoner,)
formed by the ro-organhmtion or consolidation of
banks that havo previously complied with tho
terms of this act with roferenco to tho payment
of assessments.
Sec. 40. As soon as said assessments are re
spectively levied, tho banking corporations against
which tho same aro levied, shall be notified of tho
amount of such assessment levied against them
respectively, by tho secretary of tho stato banking
board and said banking corporations shall
thereupon set apart, keep and maintain ln their
said banks tho amount thus levied against them
and tho amounts thus lovlcd, kopt and maintained
shall bo and constitute what shall bo designated
as a depositors' guaranty fund, payablo to tho
stato banking board on demand for tho uses and
purposes hereinafter provided.
Sec. 47. If tho depositors' guaranty fund shall,
from any cause, prior to July 1, 1910, be depleted
or reduced to an amount less than ono-half of ono
per cent of tho avorago daily doposits, or subse
quent to July 1, 1910, bo depleted or reduced to an
amount less than ono per cent of tho avcrago
daily deposits, as shown by tho last semi-annual
statement thereof filed, tho stato banking
board shall lovy a special assessment against
tho capital stock of tho corporation gov
erned by tho provisions of this act, to
cover such deficiency, which special assessment
shall bo based on tho said average daily deposits,
and, when required for tho purposo of immediate
payment to depositors, said special assessment may
be for any amount not exceeding ono per cent of
said average dally deposits in any ono year.
Sec. 48. Whonever It shall appear to tho stato
banking board, from any examination or report
provided for by this act, that tho capital of any
corporation transacting a banking business undor
this act Is impaired, or that such corporation is
conducting its business ln an unsafe or unauthor
ized mannor, or Is endangering the Interests of
its depositors, or upon tho failure of such corpora
tion to mako any of tho reports or statements re
quired by tho provisions of this act or to comply
with tho provisions of said act in all respects, tho
state banking board shall communicato tho facts
to tho attornoy general, who shall thereupon cause
an application to bo mado to tho district court
of tho county whoro such corporation maintains
its bank and Is thus conducting Us business, or
to any Judgo of such court, for tho appointment of
a suitable porson as receiver to take charge of tho
business, assots and proporty of every kind of
said corporation and to wind up its affairs. Pro
vided, however, that if tho judgo or judges of tho
district court of tho county whero such applica
tion should bo mado be absent therefrom at tho
UP1? sucn application Is to bo made, any judgo
of tho supromo court may appoint such receiver,
but all proceedings in relation to such receiver
ship thereafter shall bo had before the district
court, or a judgo thereof, which might have ap
pointed such receiver in tho first instance, and
the petition and tho order appointing such receiver
shall bo forthwith transmitted to tho clerk of
such district court. It shall bo sufficient to au
thorize thp appointment of a receiver If any of
the facts horoin enumerated as a ground for tho
application for a receiver be made to appear.
nfM. 49. Tho court or Judgo, appointing a re
ceiver under tho provisions of this act, shall, In
tho order of appointment, fix tho amount of his
bond In an amount sufficient to protect all per
sons interested ln tho assets and affairs to be
administered by such receiver, and the receiver,
before entering upon his duties as such receiver!
shall give a bond ln tho amount thus fixed, with
sureties to bo approved by tho clerk of said court,
conditioned that ho will faithfully and -Impartially
rclia,reo such dtios- and wo11 and truly account
I J !km2neyi and Pr?Perty coming into his hands
aY c&vor' and dl8unJo tho same in con
forming to the order of such court or judgo. and
S Hl2i,pEov!?!on!i i tnI-8 act- uPn the approval
of such bond and tho taking of tho oath required
SXJ'nJ50oP80,lthus aPPJntcd shall havo f$l
vfsYo0nsfSatha0ct1.ty a8 reCGlVCr Undor Pr-
nJiyriJJL' Aftor .tho st,ato banking board, a bank
?fnm'nfl,rnf rccoiver shall have taken possession
of any bank under tho provisions of this act thn
stockholders thereof may repair Its credit restore
or substitute its reserves, and otherwise T place 7t
&ciHditl5,ni80 that " ls Qualified to do a general
banking business as before it was taken nossosslon
SltMySyS&iuW fncP bank slSlf noPt bo pcr
m,K to, reoPon Hs business until tho stato bank
ing board, after careful investigation of its affairs
is of the opinion that Its stockholders havS coS
Piled with the law, that tho bank's Sodlt a?d
funds aro in all respects repaired aid all advances
withnyEad,i. frr0m th0 depositors' guaranty fund!
WIxv . Intorcst, fully paid, its reserve roatnrofl i ni
mlUCo?LVnUbtantlt"tcd' andtatshouldper!
nutted again to re-opon for business: whereunon
wHtBiatina5ilns &ra Is authorized to lssu?
writton permission for ro-oponing of Bald bank
is granted after tho Incorporation thereof nnrt
SeBTXr a ?,bak .may o ro-opoSedto do'bSS!
?i?i n?d mi,Biicnartop originally granted under
this act. Tho directors of ovory banking corDora
t on transacting business under the provisions of
nnoanCiLBha11 havo Howor and dSthority tS fev?
and collect assessments on tho stock of the bani7
lng corporation for tho purpose of repairing anfl
restoring tho credit of said banking corDoraHnn
or to repair and restore any dSSloney ffiat nmv
SS S? sraCiad8bnankf. th imament SWipTH
as ssslsssss&ea sS
shall make an order fixing thS mo for flM
claims against tho corporation , whoso nrinJfl!lV5
undor such receivership, which nhnii ?J orty la
lng a copy of such order on tlio front SnrT?0"
of tho bank bo a first lion 2?, HV? cl0BlB
of tho banking ratoS SmwS"
aro duo and thus undcr receivership, includ
ing the liability of stockholders and, upon proof
thereof, they shall be paid immediately out of tho
available cash in tho hands of tho receiver, if
tho cash In the hands of tho receiver, availablo
for such purposo, bo insufficient to pay tho claims
of depositors, tho court ln which tho recoivcrshln
ls pending, or a judge thereof, shall dotormlno tho
amount required to supply the deficiency, and
causo the same to bo certified "to tho stato bank
ing board, which shall thereupon draw against
tho depositors guaranty fund ln tho amount re
quired to supply such deficiency, and Bhall forth
with transmit the same to tho receiver, to be ap
plied on the said claims of depositors. Provided
however, that no part of tho depositors' guaranty
fund shall bo used to supply tho deficiency that
may accrue by tho failure of any bank now trans
acting business, which bank has not filed the re
port provided for in section 15, receivo tho cortlfl
cato provided for In section 14 and paid tho first
assessment provided for in section 45.
Sucli drafts against tho depositors' guaranty
fund shall bo pro-rated, as nearly as may be
among tho several solvent banks wherein tho
same ls so as aforesaid kept and maintained, In
accordance with tho amounts thereof held by such
banks respectively.
Sec. 53. To tho extont of the amount paid from
said guaranty fund to satisfy tho claims of credi
tors tho state banking board for tho use and benefit
of said fund, shall bo subrogated to all the right
of tho creditors thus paid, to participate in tho
assets of such bank and tho samo shall bo enforced
and collected by tho receiver accordingly, and
when collected shall bo placed in said fund and
deposited by tho stato banking board in the sol
vent banks subject to tho provisions of tho depos
itors' guaranty fund, proportionate as to tho sov
oral deposits to tho assessments levied against
each of said banks.
Sec. 54. Tho court in which such proceedings
aro pending, or a judgo thereof, shall mako such
other and further orders and enter such judgments
as may bo necessary or proper to insure a proper
administration of such receivership, and a just
and oqultablo distribution of tho assets of such
banking corporation among its creditors and all
others entitled to participate therein, subject to
tho provisions of this act.
Sec 55. Any bank examiner, when ordered by
tho stato banking board, or any receiver appointed
under the- provisions hereof, for the purposo of
winding up tho affairs of the bank, shall have
authority to take possession of any bank to which
tho order of appointment shall relate, and retain
tho possession of such bank, Its moneys, ric-hts
credits and proporty of every description; as
against any mesne or final process issued by any
court against such bank tho property of which
has been thus taken by such examiner or receiver
and until such time as all of tho liabilities of such
bank havo been fully paid and discharged, and
any attachment Hen against such property, ac
quired within thirty days next preceding tho tak
ing of such possession by such examiner or re
ceiver as aforesaid, shall bo thereby released ancl
dissolved. For each and every day the state bank
examiner shall so hold possession, such bank sluill
pay to the state treasurer, for account of tho
general fund, a foe of ten (?10.00) dollars, and
for each and every day a receiver shall so hold
possession such bank shall pay such receiver as
full compensation for his services a feo of not
less than three dollars nor more than ten dollars
as may be fixed by tho stato banking board and
ln each case, in addition to said amount the neces
sary clerk hire and attorney fees.
Sec. 56. Whenever any bank refuses or neglect3
to dolivor possession of its affairs, assots or prop
erty of whatever nature, to the stato banking
board, or to the person ordered or appointed to
toko charge of such bank according to tho provi
sions of this act, the state banking board shall
communicato the facts to tho attornoy general,
or to the county attorney of tho county wherein
such bank is located, who shall thereupon causo
an application to be mado to tho district court or
to any judgo thereof, having jurisdiction of tho
same, for an order placing such boardlYof tho per
son ordered or appointed by it to tal&a charge of
such bank, in charge of such bank and'it3 affairs
and property; provided, that if tho Judge of tho
district court having Jurisdiction of the same, shall
&0 bl0ntQe&om at P P16 sucK application
" - xu bo mado, then, and in that case, any Judfro
? the. spprenio court may grant such order, but
the potltion and order of possession shall bo forth
with transmitted to the clerk of tho district court
oftoh,e'cKr;Unt ln which such bank is located.
Sec. 57. Every receiver of a bank appointed
under the provisions of this act. shall, immediately
upon taking possession of such bank, proceed I to
collect all debts, assots and claims belonging to
such bank, and, upon order of tho district court
or 3ud, V16,1"' may sell or compound ill bad
or doubtful debts, and on like order may sell all
the real and porsonal property of such Sink inon
such terms as the court or judgo thereof iSS?
tieTof astoclToorf,nSsary' cnJ?C0 tholiaSfi
xies oi stockholders, officers or directors to such
bank; provided, that bad or doubtful debts as used
SnSi3 section shall not include tho liability of
stockholders, officers or dlrectorq- nra i wi.rrv.i
any such receiver shall have pi?d in Sfi Sf S SJ
liabilities of such bank, including any liability to
as jag? ss E&ffiatofi$H
?Sryiorolnbt!ort1haoX aollvorea to $'
S5r.nPcarattontm poSIfIS
provisions o?thiflhPUtEose 0f carrying -out tho
?oythSVpprtenends?SnBiatnT nty fSndrewa
or Person? violating aJl convI(;tl,on ot any person
LfroTarflannWi0 provisions of this act.
SSSdf (?50ofoao3) Idotlla0rs.eXCOed In any caao nvo hun"
he?efn.Canvrnitller Punishment ls provided
nerein, any porson violating any of tho provision
MW.m.
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