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MATERIALS REGARDING DEPOSIT
GUARANTY IN MISSISSIPPI, 1914-3O

MISSISSIPPI
Additional material can be found in the following folders filed with
this binder:
Statistical analysis - Mississippi deposit guaranty fund
Data for failed banks
Operation of fund

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MATERIALS REGARDING DEPOSIT
GUARANTY IN MISSISSIPPI, 1914-30

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MISSISSIPPI

Laws and law cases
Session Laws:
xildifxgkxxiitix
1914 (extra session of 1913), ch. 124
1916, ch. 207
1918, chs. 166, 247, and 248.
1920, chs. 187 and 192.
1922, ch. 172.
1924, chs. 175 and 176.
1928, ch. 94.
1930, ch. 22.
kgnixt
1931 (extraordinary session), 12
1932, ch. 282.
1934, ch. 146.

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19°6, ch. 14.
1918,
1920,
1922,
1924,
1926,

chs. 153, 158, and 165
chs. 183-86, and 188-89.
chs. 173-74, and 176-77.
chs. 172-74.
chs. 247-252.
1928, chs. 93.
1930, ch. 269.
1932, chs. 251, 301, and 336.

State Supreme Court:
Anderson, State Bank Examiner v. Badkin & Wilbourn;(1917), 114 Miss. 81,
74 So. 682.
Anderson et al., Bank Examiners v. Owne et al. (1916), 112 Miss. 476,
73 so. 286.
Bank of Oxford v. Love et al.(1916), 111 Miss. 699, 72 So. 133.
Board of Levee Com'rs. v. Love, Supt of Banks (1927), 147 Miss. 183,
113 So. 335.
City of Jackson v. Deposit Guarnaty Bank & Trust Co. (1931), 160 Miss.
752, 133 So 195.
Johnson, State Bank Examiner v. Johnson (1924), 134 Miss. 729, 99 so.

369.
Love, Supt of Banks v. Citizens Bank and Trust Co. of Marks (1925),
140 Miss. 585, 105 So. 484.
Love, Supt of Banks v. Murry, State Treasurer#1924), 135 Miss. 749,
S. So. 277.
Mississippi Banking Department et al. v. Adams/4924), 127 Miss. 122,
102 So. 70.
Wardlaw, State Bank Examiner v. Rat Planters' Bank of Clarksdale, et
al. (1923), 131 Miss. 93, 95 So. 135.
United States Supreme Court:
Bank of Oxford et al. v. Love et al., Bank Eynminers of the State of
Mississippi (1919), 250 U.S. 603, 63 L. Ed. 1165.

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State Documents
Auditor of PUblic Accounts, Reports of the Auditor of Public Accounts.
State Comptroller:.
Biennial Reports of the Banking Department of the State of Mississippi,
. 1924=25-TI96-27, 1928-29, 1931-33.
/ "
Biennial Reports of the Department of Bank Supervision, 1934-35 and 1951-53.
Statements for Individual Banks.
Statements showing the condition of State and National Banks in Mississippi,
1914-1930.

Other Publications and Manuscripts

Cooke, Thornton. "Deposit Guaralty in Mississippi," Quarterly Journal of
Economics, XXIV (February 1915). Butts, A. B. "State REgulation of Banking by Guaranty of Deposits,
Mississippi Law Journal, II (November 1929), '
knxmoi
Love, J. S. "A Year of State Bank Supervision," Mississippi Banker May 1915,
. Interview, October 22, 1934.
_AL„Ndssissippi Banker, 1-20 (1914-1936).
'
Spencer, E. O. Interview, January 16, 1956.
Southern Banker, 52-64 (1929-1935).

•

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-lank of Ox ford v. Love et al., 111 Miss 699, 72 So. 133
(
4nnk of Oxford et al. v. Love et al., Bank Examiners of__Vie State of
Mississippi, 250 U.S. 603. (19/
3
ia4erson et al., Bank Examiners v. Cline et al., 112 Miss. 476, 73 So 286.
4 iiimson, State Bank Examiner v. Johnson, 134 Miss 729, 99 So 369.
/6-Wftrellaw, State Bank Examiner v. Planters Bank of Clarksdale, et al., 131
Miss. 93, 95 So. 135.-/
(
5 -Love Supt. of Banks v. Murry, State Treasurer, 135 Miss. 749, 100 So. 277/9AP
7 Lalsy. Supt. of Banks, v. Citizens Bank and Trust Co. of Marks, 140 Miss. 585,
105 So. 484.
2
v. Love, Supt of Banks, 147 Miss 1$3, 113 So. 335./701
Colliers.
0-46.1oard
of
Levee
41
?__Mississippi Banking Department et al. v. Adams, 127 Miss. 122, 102 So. 70./9 Y/
Anderson, State Bank Examiner v. Baskin & Wilbourn, 114 Miss. 81, 74 So. 682. /j7/7
-etty- of Jackson v. Deposit Guaranty Bank & Trust C., if. 133 *V So. 195, 160
Miss. 752 (March 23 , 1941).

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ch. 146.

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Federal Reserve Bank of St. Louis

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SSISSIPPI
(References to periodicals)
Cooke, Thornton. "Deposit Guaranty in Mississippi," Quarterly Journal of
Economics, XXIV (February 1915).
Butts, A. B. "State Regulation of Banking By Guaranty of Deposits,"
Law Journal, II (November 1929).
'Love, J. S.

"A Year of State Bank Supervision,"

Mississippi

Mississippi Banker, May 1915.

(References to publications and records of the State of Mississippi)
I, Auditor of Public Accounts, Reports of the Auditor of Public Accounts.
cr?
ioe...ee
Rank-114e, Dtiliti-tmt
Biennial Reports of the Banking Department of the State of Mississippi
4
4*c
924:1925'
926-1927'
1 1928-1929.
i

1931..1933 Y

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Statements for individual banks.
of
condition
State
banks
in
National
Mississippi,
and
foree
tatements showing the
1931.'
.. .partment of Bank Supervision
Biennial Reports of the Department of Bank Supervision, 1934-1935 and 1951-1953.
Statements
r Mississippi State Legislature, Laws of 1934.
sources
(References to other matextats)
N/Love, J. S.

Interview, October 22, 1934.

IMississippi Banker
Qilyvembe
//
Anuary 1916.
---(41y 1931.
4
qSpencer, E. O.

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Interview, January 16, 1956.

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From Index to Mississippi Annotated Code 1906 - items relating to
Banks and Banking and to Interest
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BANKS AND BANKING
Athapter

16.0:0%6 '1

ikf 4.!,1

Bank not to permit use of name to third persons - penalty for use
26"
"Bank" or "Banking," to appear in name of all incorporated banks
not to be used by others
2uu
liBank statements--who required to make--general regulations-publication
256
when made--penalty for failure
257-8
Arancl, banks--restrictions upon organization
260
261
minimum capital
/6riminal law--appropriating assets, or receiving deposits when
1169
bank is insolvent
1141
Kembezzlement by bank officer
259
Deposits of deceased persons--penalty for failure to make statement
262
/Directors' meetings--regulations concerning
4852
Drafts with bills of lading attached--retention of money for a day
2677
Interest and discount--rate--usury- recovery back
922
Limitation on loans to one person, firm, etc
922
Loan to officer or director--liability of official making illegal loan
3119
Statute of limitations not to apply to notes, bills, etc., of
4273
Taxation--capital stock how turned in--surplus--shares--valuation
4275
real estate--how taxed
4274
when to be paid--penalty
4259
where assessed--branches
wilful failure to render, or making false or incomplete return,
1048
a misdemeanor
263
Trust companies--how bank can become one
264
duties and powers of
265
mutual loan department--general regulations concerning
266
to use "Trust" in name--not to be used by others
2679
Usury--recovery back

INTEREST
(Chapter 70)
Banks--interest and discount--usury--recovery back
Judgments and decrees--rates of interest on
Legal rate--forfeiture of interest for usury
Partial payments--application of payments

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2679
2680
2678
2681

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rolotir. - to barkc H
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or quoted

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Code of 1.'96 are irdi-ated by the
iton arc ru-rorlzed
Code. On7-

7oc.
6.
andev - "7 person, corporation or association
cts
Lor
of norsphs receiving ooney on depos'ot, oo issuine-, buying or selling exchanoe,
or otherwise doino a hnaLin husiness, sl;a7t1 "ado a Wancod statorert, ord -oath of the ooner„ or one or Tore o' the cfficers of the bark, to the auditor of
pulo7ic accounts, at least forr times 'r each year of tho -erdotr'on of the bank or
bus].ross, showing the resources and liahilities ti 'roof, and the amount of
the indeloodness to the bank which. is owing hy its 7-,T.ole-rs ors tockholders and
otficers and diroctors, on
':lark for
.orescrihod
1-7" the auditor, and ir
duplicate. On receioinF: the statement, the auditor shall examine it, and, if found
correct, shall file one cony and return the other to the ban:, indorsed "Examined
and foord correct," and the bank shal thereupon, within ten days, cause the same to
be published, with the endorsement of to auditor, at its own exTense, in a newspaper published at the place of domicile of the bank, or, if there by none so
oublished, in a convenient newspaper having a circulaMon r such place.
Secs. 260-261 re branch banks -

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see notes on 1917 code - identieil

Sec. 262 Requires three regular met:rip each calendar year of the hoard of directore
of every bank "for the purpose of making a full and careful iry7stioation and
1-!viry into the conditlor end affairs of the hank, and particularly of its accounts
aR securities."
Requires accurate and complete record of duch reetine, signed
e directorsA participating.
Sec. 11111. "If any .... bank or colloctro a7ent...sha1 1 unlawThlly cenvert to his
own use any none: or valuaie thinF7..."
Provides Penalty.
Sec. 1169. If the president, ranaoer, cashier, teller, assistant, clyk, or other
employe or aoent of any bank or broker's office or Establishrent conduting the
lousiness of receiving on deposit the money or other valuable things of such persons,
shall remove or secrete or conceal the assets or effects or such establishment for
the nurpose of defrauding any of the creditors of the establishment, or shall
receive slay deposit knowing, or having good reason to believe, the establishment
to be insolvent, without informing the depositor of such condition, on cerviction,
he shall he imprisoned ]n the penitentiary not loner t: an five years."
Sec. 2678. Legal -ate of interest
for interst as _roat as ten percent.
may be recovered.

--cent, but contracts may be made in writing
Any greater intcrest stipulated or received

F. 2679. Applies this laL;a1 rate of interest to banks, with contracts providing
and the whole of mazia the iter st or discount provided for
Ijer rates invalid,
void and subject to recovery by the debtor.
oto
Sec. Lool.
payrent.

Partial payments to be ai);lied first to interest accrued to time of

Sec. 3119. None of the provisions of this chapter shall apply to suits brought to
enforce rayment of notes, bills, or evidences of debt issued by any bank or moneyed
oorporatIon.

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FORCE PRIO Te
_
T- '79STSSIPPI
197!;
1:21
(Prepared from The Annotated 71 ssissippi Code showine the general
force August 1, 1917, embracine the code of 1906 as amended and all
general and public acts ef the lresislature passed since the adoption
code...by William Hemingway (Indianapolis, The -3obbs-Yereill Company,
Note. The tanktn: Lawef 1914 did not repeal any former laws, except as
decisions later indicated that such was the effect. Consequently, it ha_L e
assumed that th
ftc1Rons of "Chapter 82 Banks",(pp. 1829-1e67), which c _
sections 3520-3M! not referrimc to the L ,w of 191)4 or that of 1916 were the
` full bankin - code prior to the act of 191):, ch. 124. All sections that do not
refer to the law of 1911 or of 1916 are listed below, with the subject, but are
quo e or.
eynty
iposit eear
Tnzed only, erhen thoe -htdesirabie for use in connection ,14 ith de
u
A
GSN
#64410•14.,
,re
study. r.\ j10 ,
eplee
3520.. Dep sits of deceased pers ns--Te whee -ele;--

vii.lerreeff

3521. "Branch banks--Restrictions upon orLaneeaLLee. 1 ,e er,eeteee el' eegani_aL_
'
)f any
anch 'ank in this state after this chapter 4pcsi eto effect sW.1 1,e
rbidden and prohibited, and no branch hank shall. be thereafter ez
'ame is
i,ate, and no parent bank chartered under the laws of this state ehnll
n thisbi7
hereafter establish any branch bank either within cr -ithout the s tate.r

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°522. "Branch banks--Minimum capital to be employed. Every parent bank operatine
me or more branch banks s all set apart and devote from its capital a sum not leF.the exclusive use of each of said branch hanks in
that ten thousand dollars
business, and the amount o the capital of the parent bank employed by each branc.
bank shall never at any time be less than the mid amount of ten tho .sand dollars."

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From - Laws of Mississippi 1914 - Extra. Session 1913 - pp.

1r7-141

CHAPThH 124.
SENATE BILL NO. 48.

AN ACT establishing a banking department for the State of Mississippi, creating a board of bank commissioners, prescribing their qualifications, duties,
and compensation, providing for the election of State bank examiners, prescribing their qualifications, duties and compensation, defining what shall
constitute a bank and banking business in the State of Mississippi, fixing
the capital required to do a banking business, and providing for the
examination, regulation and control of banks and banking business conducted
by corporations, other thanrational banks and postal savings banks and
fixing the assessment for the revenues of the department, fixing qualifications and liability of officers, stockholders and directors of banking
corporations; fixing the qualifications and liability of persons, firms and
corporations in the banking business; providing for the payment of deposits
to minors and other persons under disability and on join account; prohibiting banking except under the provisions of this act; providing for the
liquidation of banks and the distribution of the assets thereof; providing
for giving publicity to deposits more than five years old; and prescribing
penalties for the breach of any of the provisions thereof, and to provide
a system for guaranteeing deposits, and for other purposes, without expense
to the State.
State department of banking created.
Be it enacted by the Legislature of the State of Mississippi.
Section 1. Establishment of State banking department. There is hereby
created a banking department of the State government charged with the execution of all laws relating to corporations and individuals doing or carrying
on a banking business in the State of Mississippi. The office of said department shall be located in the city of Jackson, and the secretary of state
shall provide suitable quarters therefor.
Three bank examiners to be elected by supreme court districts.
Sec. 2. There shall be a board of bank examiners consisting of three
members who shall choose from among themselves a chairman, and a majority of
whom may for all purposes act for the board, and who shall be elected, one
by and from each supreme court district at the time and in the manner that
State officers are elected, and whose term of office shall be four years and
until their successors shall qualify.
Who eligible to become a bank examiner.

Sec. 3. Qualifications. No person shall be eligible to become a bank
examiner who is not a qualified elector; thirty years of age; a practical
accountant; who does not thoroughly understand the theory and practice of
banking; who has been manager or otherwise in control of any banking institution or other business enterprise which has failed or liquidated its debts

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below par during such management, or who has not secured a license to become
a candidate for said office as hereinafter provided. No person while occupying the position of bank examiner shall be employed by or have any interest
in any bank or banking business within the State, and any violation of this
provision shall, ipso facto, make vacant the office.

Examiners to take oath of office and give $25,000.00 bonds.
Each bank examiner shall, before entering upon the discharge of his
duties, take and subscribe the oath of office prescribed by section 268 of
the constitution of Mississippi, and file the same in the office of the
secretary of state, and shall execute to the State of Mississippi a bond
to be approved by the governor and filed with the secretary of state, in the
penal sum of twenty-five thousand dollars, in some surety company authorized
to do business in this State, conditioned for the faithful and impartial
discharge of the duties of said office, and for the payment of any and all
damages and costs that may be adjudged against him under the provisions of
this act, and for the faithful and proper handling and accounting for all
monies that come into his hands under the provisions of this act.
Commission to examine credentials for bank examiner.
Sec. 4. Exsminina board of bank examiners. There shall be a board of t
bank commissioners, consisting of three members, for examining candidates
for bank examiners, who shall be appointed within ten days after the passage
of this act and every four years thereafter, as follows: One by the
governor, who shall be a successful banker and business man; one by the attorray
general, who shall be an experienced lawyer; and one by the auditor, who
shall be an experienced accountant; all of whom shall be not less than thirty
years old and qualified electors; and their terms of office shall be for four
years, and until their successors shall qualify.
Vacancy in board; how filled.
If any vacancy shall occur in the board of bank commissioners, by reason
of resignation or otherwise, it shall forthwith be filled by appointment by
the officer appointing his predecessor.
When candidates to be examined.
The board of bank commissioners shall ?nee.
* the office of the banking
department on the first Monday in March preceding the general election in
November, then and there to hold an examination for candidates for bank
examiners.
Applicants for examination to file notice and pay fee; candidate license issued.
Any person or persons upon giving written notice to the chairman of the
board of bank commissioners and upon the payment of the sum of fifty dollars
each to the State treasurer for the credit of the banking fund shall be given
a special examination at which a license or licenses to become a candidate
for election to the office of bank examiner may be granted as in regular

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examinations, and said chairman shall call a meeting for the purpose of
giving said special examination not later than thirty days after receipt of
said notice and shall give the applicant or applicants due notice thereof.

Compensation of bank commissioners; how paid.
The members of the board of bank commissioners shall be allowed their
actual expenses, and a per diem of five dollars while in the actual discharge
of their duties, to be paid out of the banking fund in the same manner as the
salaries and expenses of the members of the board of bank examiners.
How examinations held; subjects for same; strict secrecy enjoined.

•

Sec. 5. Examination for licenses and vacancies, how filled. No person
shall be eligible to hold the position of bank examin:r, either by election
or otherwise until he shall have been issued a license or certificate through
competitive examination by the board of bank commissioners. Said bank commissioners shall hold a written examination in the office of the banking
department on the subjecOf accounting, the theory and practice of banking
and the banking laws of the State of Mississippi, and the federal banking
laws. To each person who attains a grade of seventy-five per cent or more
on said examination and who furnishes satisfactory evidence of good moral
character, and of the possession of all the other qualifications set out in
section 3 of this act, the said examining board shall issue a license to
become a candidate for state bank examiner, which license shall be good and
valid for four years and no longer. The said examinations, questions, answers
and statements shall be filed of record in the banking department, and shall
be open to the inspection of the public. A majority of the board of bank
commissioners may perform all the duties required of said board by this act.
Said examination questions shall be kept strictly secret until said examination is held and if any commissioner or employee of the banking department
shall divulge or knowingly permit to become known to any person the said
examination questions or any part thereof, be shall be deemed guilty of a
misdemeanor and liable to a fine of not over five hundred dollars and upon
conviction shall be removed from office. Any person who shall have knowledge
of any part of the questions to be asked at any examination shall be ineligible
to stand said examination or to hold the office of bank examiner under a
license based on said examination.

Examination papers graded.
; certificates issued on grades of 75 per cent and over.
The board of bank commissioners shall meet in the office of the banking
department within fifteen days after the passage of this act, and organi-e,
and within thirty days after the passage of this act, hold an examination for
bank examiners and from among the applicants at said examination who attain
a grade of seventy-five per cent or more and who furnish satisfactory evidence
of good moral character and of the possession of all the other qualifications
set out in section 3 o*this act, the said board of bank commissioners shall
declare the one applicant from each supreme court district receiving the
highest grade per centum of the applicants from that district as the bank
exaliner from that district for the State of Mississippi and shall issue to
each of such applicants so declared a certificate as bank examiner, which

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- 4 -certificate shall be good and valid until the first Monday in January, 1916,
and until the successor of the holder thereof shall qualify, and which
certificate shall be the authority for the holder thereof upon compliance
with all the qualification requirements of this act, to enter at once upon
the discharge of the duties of the office of state bank examiner.
Vacancies on board of examiners filled by competitive examination.
If a vacancy shall occur in the office of state bank examiner it shall
be filled for the unexpired term by competitive examination in the same
manner as her - tofore provided in this section for the first state bank examiners under this act, and an examination for this purpose shall be held on
the second Monday after such vacancy shall have occured.
Examinations continued until sufficient number qualified.
If for any reason any regular or special examination is not held at
the time provided in this act, or if at any regular or sp=cial examination a
sufficient number of applicants fail to qualify for the office of bank examiner,
then it shall be the duty of the board of bank commissioners to hold on every
tenth day thereafter a special examination until the required number of
applicants shall qualify.
Notice of special examinations; how given.

•

The board of bank commissioners shall give notice of all special examinations in at least three papers published in different sections of the district
for which said examination is held.

Charges against examiners; hearings by commissioners; power of removal.
Sec. 6. Charges against examiner. Any bank, under such rules as the
board of bank commissioners may prescribe, may at any time present charges
against the bank examiner, and thereupon the said board shall have power
and must examine into such charges and, if the said examiner, upon a hearing, shall be found to have violated any of the provisions of this act or
shall be found for any reason to be unfit or disqualified to hold the office
of bank examiner, he may, in the discretion of the board, be removed by it.
May compel witnesses„and administer oaths.
For the purpose of any such investigation, any member of said board
shall have the power to administer oaths and compel the attendance of witnesses
and require the production of books and papers.
Removal and penalties.
The removal of the bank examiner shall not exempt him from any of the
penalties herein prescribed.
Sec. 7. Salary bank examiner, expenses office equipment, etc. The salary
of each bank examiner shall be $3,000.00 per year, and traveling expenses,
11,

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5
including only railroad fare, livery hire and hotel bills, While engaL;ed an
official duty, payable monthly out of the banking department fund upon
voucher, approved by the governor; and accompanying each voucher for expense
there shall be an itemized statement of the same, together with receipts for
amounts over one dollar.
Office equipment and supplies; how provided and paid for.
The banking department shall be supplied with all necessary office
furniture, fixtures and equipment, which shall be purchased by the board of
bar* examiners and paid for out of the banking department fund, on voucher,
approved by the chairman of he board of bank. examiners. All necessary postage,
stationery, expressage, books, telephone and telegraph messages, printing
expenses and all premiums on bonds under this act, and all other office exJamsea of the banking department shall be allowed and paid for in the same
manner as the office equipment and fixtures. All books) blank papers, and
documents now in the custody of the State auditor, or in the office of any
other State official or board connected with the matters embraced in this
chapter shall upon request of the board of bank examiners, be delivered to
the office of the banking department.

•

Sec. 8. Seal; evidence. The banking department shall have a seal which
shall be in the form of a circle with the image of an eagle with thirteen
stars over the head, in the center and about the margin at the bottom, the
words: "State of Mississippi"; and at the top, the words: "Banking
Department".

Official documents and papersof board, admissible in evidence.
Every certificate and other official paper executed by the banking
department under the authority of law, and sealed with said seal of this
office, shall be received as evidence in all courts) investigations and proceedings authorized by law, and may be recorded in the same manner and with
like effect as a deed and all copies of papers in the office of the said
department certified by an examiner or assistant with said seal shall be
accepted in all matters equally and with like effect as the original.
Sec. 9. Office assistant. The board of bank examiners shall appoint an
office assistant, who shall perform such duties as they may require, and who
shall receive a salary of not more than $1,800.00 annually) payable monthly
out of the banking fund upon vouchers approved by the chairman of said board.

Board reoponsible for assistant; may discharge him.
The board of bank examiners shall be responsible for all the acts of
said assistant and they may discharge said assistant at their pleasure.
Bond of assistant.
He shall execute the same bon4As is required of a bank examiner.
Sec. 10. Duties: visit and inspect banks. It shall be the duty of the
board of bank examiners to apportion the work among themselves of examining

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banks, in such a manner as that each bank, under the provisions of this act,
shall be examined twice a year, and oftener if necessary, at irregular intervals and without prior notice, provided that no bank examiner shall examine
any one bank twice in succession. If the board of bank examiners find it
impossible to make the required number of examinations of any bank or banks
they may apply to the board of bank commissioners for assistants not to exceed
three, and upon receipt of such application, it shall be the duty of the board
of bank commissioners to appoint such assistant or assistants from among those
applicants who have received a grade of seventy-five per cent or more in any
regular or special examination. If for any reason there shall be no eligible
for such appointment, then the board of bank commissioners shall hold a
special examination and select through such examination the required number
of assistants in the same manner as provided in this act for filling vacancies,
except that they may be chosen from the State at large. Each assistant shall
possess all the qualifications of a bank examiner and shall have all the
powers and the duties of the bank examiners in the examination of banks and
before entering upon his duties he shall give the same bond as required of
the bank examiner
The compensation of each assistant shall not exceed ten
dollars per day, not to exceed one hundred and fifty dollars per month and
traveling expenses, which expenses and three-fourths of said compensation shal]
be paid out of the fund of the banking department on voucher approved by the
board of bank examiners accompanied by an itemized statement of expenses and
receipts therefor for all amounts over one dollar and one-fourth shall be
paid by the board of bank examiners out of their own funds. He shall be
removable at the pleasure of the bank examiners and shall be employed in the
service of the examination of banks at such times andplaces as the board of
bank examiners may determine and he shall not be allowed compensation for any
time when not in actual service of the department, and under the direction
of the board of bank examiners.
Sec. 11. The same; to inspect books, accounts, etc. At such examination the examiner shall have the power and it is his duty, to examine the
cash, bills, collaterals and securities, books of account, the condition and
affairs of the bank, the mode of conducting and managing the affairs of the
bank, the action of its directors and the investment of the funds of the
bank. Said examiner shall have the power to examine the directors under
oath as to the value of all collaterals, securities and other assets of the
bank. Any officer of a bank refusing to the bank examiner any of the papers,
securities, the books or cash of a bank, shall subject such bank to liquidation as hereinafter provided.
Sec. 12. The same;_ summon witnesses; administer oaths. The examiner
shall have the authority to issue subpoenas for witnesses and compel their
attendance before him in any and all matters connected with the duties of
his office, and for failure to attend or testify, witnesses may be fined by
him for contempt.

Sheriffs, etc., to execute process of board; penalty for failure.
Sheriffs, constables and marshals holding commissions in this State
shall serve and be entitled to regular fees for serving said subpoenas and
for failing to execute or return such process they shall be liable for the
same penalties prescribed by law for failure to execute like process issued
by the courts of this State.

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.bank officials to be examined under oath; false swearing_pqnished.
The bank examiner shall have the power to administer oaths, and shall
have the authority to examine under oath the officers, agents, clerks,
employes, owner or owners of any bank, or any other persons, touching the
matters which he is by this act directed to examine into, and any person
willfully making any false statement under oath in such examination shall
be deemed guilty of perjury and upon conviction thereof punished accordingly.
Penalty for making false statements not under oath.
If any officer, agent, clerk or owner or owners of any bank, when not
under oath, shall in any manner willfully misrepresent to any bank examiner
the condition of the bank or purposely mislead or make false statements
regarding the condition of said bank or any part of its business, said person
shall be deemed guilty of a misdemeanor and upon conviction thereof in any
court of competent jurisdiction such person shall be punished by a fine of
one thousand dollars or imprisonment in the county jail not less than six
months, or both fine and imprisonment.

•

Sec. 13. Stenographer may be used. The examiner in all cases, where
the testimony of witnesses is to be preserved shall have the right to have
the same taken down and transcribed by a stenographer, and a stenographer so
employed shall be sworn by the examiner, and his or her certificate that the
transcript of such evidence is correct, together with a certificate of the
examiner that he has read the same and that it is, in his opinion, correct,
shall entitle such transcript or a certified copy thereof to be received in
evidence in any and all courts of this State and in all cases wherein such
evidence is relevant, material and competent.

Pay of stenographers employed by board.
Such stenographer shall be paid not more than $10.00 per day in cases
where no transcript of notes is made; if a transcript of the notes is made,
there shall be allowed not more than ten cents per hundred words and no per
diem; such stenographer to be paid out of the banking fund on voucher approved
by the examiner employing such stenographer, accompanied with itemized statement of services rendered.
Sec. 14. Secrecy of examinations as to depositor's accounts, and as te
debtors to the bank. The board of bank examiners shall keep as records of
their office the proper books showing all acts, matters and things done by
them under the provisions of this act. Neither they nor their assistant shall
disclose to any person, official or otherwise, except when required in legal
proceedings, any fact or information obtained in the course of the performance
of their duties, except so far as this act makes it incumbent upon them to
report to the board of bank examiners, or to make public records and publish
same.
Names of depositors not to be divulged except when required in legal proceedings.
In no instance shall the name of any depositor, or the amount of his
deposit, be disclosed to any one, except when required to be done in legal

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proceedings or in case of insolvency of bank, and any violation of this provision shall be considered a misdemeanor and, upon conviction thereof, in any
court of competent jurisdiction, such person shall be punished by fine of one
thousand dollars, or imprisoned in the county jail not less than six months,
or both. And, in addition, thereto, shall be liable upon his bond to any
person damaged thereby.
Sec. 15. The same; certain credits on examination prohibited. In all
bank examinations herein provided for no bank shall be allowed credit for any
obligation or security whereof the principal and interest shall be over
twelve months past due; nor for any bond or other obliLation upon which any
interest may be in default for as much as twelve months; nor for any stock
of its own held more than twelve months; nor for any unsecured over-drafts
that may have existed for a greater period than three months next preceding
it, and in making up the statemenV6f the condition of such bank any such item
shall be charged off, but if desired a note shall be appended giving the
details thereof; provided the discretion of the bank examiner may be exercised
in cases of estates in litigation or administration and in pending suits.
Provided this section shall not take effect until twelve months after passage
of this act. Provided the security affected thereby shall, in the opinion of
the examiner making such examination be ample and sufficient.

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Sec. 16. The same; special examinations. Itkhall be the duty of the
chairman of the board of bank examiners) upon receipt of registered letter
from the board of directors of any bank, under the provisions of this act,
requesting him to give such bank a special examination, within ten days of
the receipt of such notice, to designate one of the bank examiners to make such
an examination for which the bank shall pay the said examiner a fee of onehalf of the amount of its latest assessed tax under this act, which fee the
examiner shall forthwith pay into the banking department.
Sec. 17. The same; when last _public statement wrong. If upon the completion of any examination, an examiner shall find that the last public
statement of the bank is materially wrong or that the condition of the bank
has materially changed since the last public statement, he shall order the
bank to publish a new statement based upon the findings of his examination
and for the failure to promptly publish said statement, the bank shall be
liable for a penalty of $500.00, for which the board of bank examiners shall
sue for the use of the banking department if not paid within ten days.

Sec. 18. The same; cal]s for reports of banks. Form of report. The
bank examiners shall call upon each bank governed by the provisions of this
act for the reports herein required. Such calls shall be made by the board
of bank examiners for the same dates and as often as calls are issued by the
comptroller of the currency of the United States for reports from national
banks. The bank examiners shall prescribe the forms for such reports. Said
reports shall be sworn to by either the owners, president, manager or cashbr
of the bank making them and attested by not less than two of the board of
directors; and shall exhibit in detail, under appropriate heads, the total
resources and total liabilities of the bank on the past day by the board of
bank examiners specified, and said reports shall be transmitted by the bank
to the board of bank examiners within ten days of the receipt of a written
.
I
or telegraphic request therefor. The bank making such report shall cause an
abstract of the same to be published according to forms prescribed by the
board af bank examiners within fifteen days from receipt of call, in some

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Federal Reserve Bank of St. Louis

9
newspaper published in the city or town where such bank is situated, or, if
no newspaper is published therein, then in some newspaper published at the
county seat of the county in which such bank is situated. Proof of such
publication shall be furnished by the bank to the board of bank examiners
within ten days from the completion thereof. For any failure or delay in
furnishing said report, publishing the same andsupplying the proof thereof,
the owners, president, manager or cashier of any such bank, so in default,
and the members of the board of directors of said bank, refusing to attest
said report shall be deemed guilty of a misdemeanor and upon conviction thereof
shall be punished by a fine of fifty dollars a day for each day while in such
default.
Sec. 19. The same; charges for copies of bank reports. A copy of such
report of any bank shall be furnished to any person or corporation requesting
the same, for a fee of fifty cents, which fee shall be collected by the board
of bank examiners of assistant furnishing said report, and shall be paid
into the banking department fund.

;

Office assistan4 penalty for violation of his duties.

•

If the office assistant of the banking department shall fail or refuse
to furnish copies of said report when so requested and tendered the said fee,
or if he shall fail to account for any such fees received by him, or if he
shall demand or receive any larger fee than that herein prescribed, or if any
other person than a bank examiner or assistant shell furnish any copzbf
such bank report, whether for a consideration or not to anyone, he shall be
guilty of a misdemeanor and shall be fined not less than ten dollars or be
imprisoned not more than one month or both.
Sec. 20. The samei when capital stock impaired or lawful reserve not
maintained. If from the examination or from any report made by a bank governed
,
by the provisions of this act it appears that the capital of said bank is
reduced by impairment or otherwise or that its cash reserve is below the
requirements of law, it shall be the duty of the board of examiners to require such bank to make good the deficiency within thirty days.
Sec. 21. The same. When to liquidate. If any bank examiner from any
examination or any report rendered under this act shall be of the opinion
that any bank is insolvent or that its condition is such that a further continuance of its business is hazardous to its creditors, depositors or the
public) or that the bank has failed to comply with any of the rules, conditions or restrictions provided by law, he shall forthwith call a meeting of
the board of bank examiners at such time and place as he may designate,
and report the facts to said meeting. s,
4,

cl4

Sec. 22. The same. To liquidate. If the board of bank examiners find
that any bank is attempting todo business with less than the minimum capital
,
required by law or witamt, having its full capital paid in, or that any bank is
insolvent; or that any bank has for any reason failed, or if the holders of
two-thirds of the stock of any bank shall vote to liquidate or dissolve it,
then it shall be the duty of the board of bank examiners to forthwith liquidate
the same as hereinafter provided.

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-10Banks penalized for failure to complzwith orders of examiners.

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If the board of bank examiners find that any bank has made a payment of
dividends contrary to law, or made any charges against the surplus account
contrary to law, or suffered its capital to remain impaired after thirty days'
notice, or allowed its reserve fund to remain below the legal minimum after
thirty days' notice, or for persistently allowing its reserve fund to become
below the legal limit, or for persistent violation of any of the other provisions of law, then the board of bank examiners may, by majority vote,
instruct the proper examiner to proceed to liquidate such bank according to
the provisions of this act and it shall be the duty of such examiner to so
proceed. Any bank violating any of the provisions set out in this section
is liable to liquidation.

Banks assessed for maintenance of bank department.
Sec. 23. Assessments. Each bank subject to the provisions of this act
is hereby assessed for each year one-fortieth of one per cent of its total
assets, and the money accruing from said assessment shall he used for the
3
mrintenance of the banking department. ,..

•

Sec. 24. Assessment, and expenses. As soon as practicable after their
appointment the boord of bank examiners shall meet and prepare a statement
based upon the total assets of each bank shown by its last report to the State
auditor, of the assessments due by each banl, under their supervision. They
shall send to each bank a statement of the assessment due by it, which amount
shall be due and payable upon receipt of notice and shall be paid not later
than tensams after receipt of said notice. Any bank failing to make payment
within/ten days shall be liable to pay damages to the extent of 10 per cent
of the amount of its assessment for each day of delay.

Payment of assessments, fees and Tenalties- where and to whom made.
1

All assessments, penalties and fees 1-xovided in this act shall be paid
to the board of bank examiners. All assessments, fees and penalties
Jackson
at
collected under the provisions of this act shall, immediately upon receipt
thereof, be delivered to the State treasurer to be placed to the credit of the
banking department. Each bank examiner shall Ave a receipt made in duplicate for all monies received by him and shall take a receipt from the State
treasurer for all money delivered by the examiner to the treasurer.
Board to ascertain and fix amount of assessments annually.
The office assistant shall have the powers and the duties of a bank
examiner in regard to receiving, accounting for and delivering to the State
treasurer all assessments, fees and penalties collected under this act. The
board of bank examiners shall meet on the first Monday in January, 1915, and
on the same day each subsequent year and ascertain the amount with which each
bank subject to the provisions of this act shall be assessed during the current year, and they shall take asii basis for their calculations the last
statement prior to said date made to them by the banks of this State and shall
proceed to collect said assessment in the same manner as here inbefore set out.

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Sec. 25. The same meeting of the board of bank examiners. The members of the board of bank examiners shall hold a regular meeting in the
office of the banking department on the first Monday in January, April,
July and October of each year, and at such other times as the chairman of
said board shall deem it necessary to issue a call therefor.
Sec. 26. How money Paid out. All monies paid out of the banking department fund shall be paid by the treasurer upon warrants issued by the
State auditor, which warrants said be issued by the said auditor upon
voucher approved by the proper examiner except in payment of bank examiner's
salaries and bank commissioner's per diem and expense and warrants shall
be issued by the State auditor therefor, upon voucher approved by the
governor.
Sec. 27. Defining what shall constitute a bank. Any corporation
(except national banks and postal savings banks) having a place of business
within this State, where credits are opened by the deposit or collection of
money or currency or negotiable paper subject to be paid or remitted upon
draft, receipt, check or order, or sale of drafts or exchange drawn on local
or foreign banks, shall be regarded as a bank or banker, and as doing a
banking business under the provisions of this act.
All concerns doing banking business must incorporates how section shall apply.
Any person or firm now engaged in the banking business as described in
this section shall incorporate within six months after this act goes into
effect. This section shall not apply except when suen corporations keep
the actual money on deposit or solicit outside deposits, but any person or
association of persons now engaged in the banking business in this State
shall be subject to all the provisions of this act until such person, persons or associations of persons shall be or become incorporated as provided
in this section.
Sec. 28. Organization of banks. Three or more persons of full age,
and of good moral and safe business character may organize themselves into
a banking corporation. Banking corporations may be formed under the general laws of the State, for the purpose of conducting and carrying on a
banking business, and to establish offices of loan and deposit to be
known as a savings bank, or to establish banks having departments for both
classes of business upon the terms and conditions and subject to the
liabilities prescribed in this act.
Number of directors; charter to be filed.
No banking corporation shall have less than three directors, and every
banking corporation, before it transacts any banking business, shall file
with the board of bank examiners certified copy of its articles of
incorporation.
Amount of capital stock

ale

required for a banking_ corporation.

It shall be unlawful for any corporation, except as hereinafter provided, to transact a banking business unless such corporation has capital

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staez as follows: In cities, villages and communities having a population of one thousand or less ten thousand dollars; in cities and towns
having a population of one thousand and not more than twenty-five hundred
fifteen thousand dollara; in cities and towns having a population of
twenty-five hundred and not more than six thousand, twenty-five thousand
dollars; in cities having a population of six thousand to ten thousand,
thirtuy-five thousand dollars; in cities having a population of ten thousand
or )re, fifty thousand dollars; provided this schedule of capital stock
shall not apply- to banks now in operation in this State. Such capital
shall be in money, commercial paper, bank furniture, fixtures, or the
necessary bank building, including the lot or lots on which the building
is situated, which said lot or lots shall be unincumbered.
Sec. 29. Penalty for use of word "bank", etc. No corporation, except
a national bank or postal savings bank shall carry on a banking business,
except in compliance with this act. No corporation shall use either or
any of the terms "bank," "banker," "bankers," "banking house" or "trust
company," unless it shall have first fully complied with all the provisions
of this act.
Penalty for violations of this section.
Any corporation violating any of the provisions of this section, after
thirty days' notice given by the board of bank examiners, shall be deemed
guilty of a misdemeanor and upon conviction the -eof shall be punished by
a fine of not less than twenty dollars and not more than one hundred dollars for each day during which such violation shall continue after the
expiration of said period of thirty days.
Sec. 30. Articles of incorporation. The persons associating shall
execute article of incorporation, which shall specify:
First. The name assumed by such bank which shall be in no material
respect, similar to the name of any other bank organized under the laws
of this State.
Second. The county, and city, town or village where such bank is to be
located and to conduct its business.
Third. The nature of its business) whether that of a commercial bank,
savings bank, trust company or any combination thereof.
Fourth. The amount of the capital stock, which shall be divided into
shares of fifty or one hundred dollars each.
Fifth. The names and places of residence of the stockholders, and the
number of shares held by each of them.
Sixth. The period for which the bank is organized which shall not
exceed fifty years.
Such articles of incorporation shall be acknowldged before any officer
authorized by the laws of this State to take and certify acknowledgements.

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Articles of incorporation executed in triplicate.
Such articles of incorporation shall be executed in triplicate, one
of which shall be recorded in the office of the chancery clerk for the
county in which the bank is located, and one filed in the office of the
board of bank examiners and one filed in the office of the secretary of
state. Such articles of incorporation, or copies ther-iof, duly certified
by either of said officers, may be used as evidence in all courts for and
against such bank.
Sec. 31. Regulations with reference to paymenVof capital stock. All
of the capital stock of every corporation engaged in the banking business
shall be paid up in money before such corporation shall be authorized to
commence such business.
Newlj organized bank must be examined before beginninLbusiness.

•

When any bank hereafter organized or formed shall notify the board of
bank examiners that its capital stock has been paid up, the board of bank
examiners shall designate one of its members to make an examination of the
bank immediately and, if it is found that the capital stock has been paid
up and if it is found that said bank has complied with the requirements of
this act, and is entitled to commence business, the examiner so designated
shall give to such bank a certificate under his hand OLnd the official seal
of the banking department, that it has complied with all of the provisions
of the law and is duly authorized to transact a banking business. No bank
shall transact any business except such as is necessarily preliminary to
its organization, until it has been authorized by the board of bank examiners
to commence the business of banking.
Fee for such special examination.
The assessment for such special examination shall be one-tenth of one
per cent of the capital stock of the bank being examined, and such assessment shall be due are payable immediately upon the completion of such
examination for which the bank examiner shall give a receipt therefor in
duplicate and pay the same to the State treasurer to be placed to the credit
of the banking department.
Sec. 32. Amendment of charter. Any bank desiring to renew or amend
its charter may do so by proceeding in the manner provided by law for the
amendment of charters; provided, that upon making application, for such
amendment a certificate from a bank examiner, showing the condition of the
bank so applying at the time such application is made is accompanied therewith and the assessment for said special examination shall be the same as
would be due for any regular examination.
Benefits of guarantee fund; how banks may become "guaranteed banle."

•

Sec. 33. Any bank doing business in this State under the general bank- / /
ing laws of Mississippi and any bank subject to the provisions of this act
which may after the passage of this act be authorized to do business in this
State, is hereby authorized and empowered to participate in the assessments

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and benefits and to be governed by the regulations of the bank depositors'
guarantee fund of the State of Mississippi hereinafter provided for. Before any bank shall become a guaranteed bank within the meaning of this act
a resolution of its board of directors, authorized by its stockholders,
duly certified by its president and secretary, asking therefor, in form
to be provided by the board of bank examiners shall be filed with said
board; who shall upon the filing of sudh resolution, authorize one of the
examiners to make a rigid examination of the affairs of such bank, and if it
is found to be solvent, to be properly managed and conducting its business
in strict accordance with the banking law, such examiner shall after the
bank shall have deposited with the State treasurer bonds or money hereinafter provided issue to such bank a certificate stating in substance that
said bank has complied with the provisions of this act, and that its depositors are guaranteed by the bank depositors' guaranty fund of the State
of Mississippi, as hereia provided.
Deposit guarantees; securities to be denosited with State treasurer; kind and
amount of same.
Sec. 34. Before receiving such certificate from any bank examiner each 0/b
bank entitled to the same according to section 33 of this act, shall as
evidence of good faith deposit and shall at all times maintain with the
-7 ;State treasurer (subject to the order of the board of bank examiners when
countersigned by the auditor of State) United States bonds, Mississippi
State bonds, the bonds of any levee district, or the bonds of any county,
township, or municipal bonds within the State of Mississippi, to the amount
of $500.00 (five hundred dollars) for every $100,000.00 or fraction thereof
of its average deposits eligible to guaranty (less its capital and surplus)
as shown by its last four published statements, provided that each bank
shall so deposit not less than $500.00 and the State treasurer shall issue
his receipt therefor in triplicate, one to the bank, one to the auditor of
State and one to the board of bank examiners. Such bonds only shall be
accepted as shall bear the certificate of the attorney general of the State
of Mississippi, stating that in his opinion said bonds have been legally
issued. Said bonds, or cash in lieu thereof, shall not be charged out of the
assets of the bank, except as hereinafter provided, but shall be carried
In its assets under a heading "guaranty fund with State treasurer," until
such time as said bank shall default in payment of assessments hen-in provided for. In lieu of bonds the bank at its option, may deposit money which
deposit shall be exchangeable for acceptable bonds when the bank elects
to make the substitution. In addition to above, eacl, bank shall pay in
cash an amount equal to one-twentieth of one per cent of its average deposits
eligible to guaranty, less its capital and surplus, and the same shall be
credited to the bank depositors' guaranty fund with the State treasurer
subject to the order of the board of bank examiners and the State treasurer
shall issue his receipt therefor in triplicate, one to the bank, one to the
auditor of State, and one to the board of bank examiners; provided that the
minimum assessment to be required from any bank shall be $20.00. The last above
mentioned assessment, however, shall not be required of new banks formed by
the reorganization or consolidation of banks which have previously complied
with the terms of this act. Upon the deposit and acceptance of such bonds
(or money) and the payment of said assessment, then payment of such deposits
of said bank as are specified in this act, shall be guaranteed as herein
provided and the bank entitled to its certificate. The fund provided for

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in section 33 and section 34 of this act shall be for the purpose of paying
at once, and under the direction and control of the board of bank examiners
of the de -ositors of banks that are declared insolvent by the board of bank
examiners or banks that shall fail. Said payments to be made in the manner
provided by the said board of bank examiners. All payments made to the
deleositors of banks under the provisions of this act shall be repaid out of
the assets of any bank whose depositors are paid out of this fund, and shall
be a first lien on said assets.,
Assessments for guarantee fund; when to cease; fund to be maintained unimpaired.

•

Sec. 35. The board of bank examiners shall, during the month of January f
of each year, make assessments of one-twentieth of one per cent of the
average guaranteed deposits, less capital and surplus, of each bank ( the
minimum assessment in any case to be $20.00) until the cash fund accumulated
and placed to the credit of the bank depositors' guaranty fund shall be
VI
approximately $500,000.00 over and above the cash deposited in lieu of
bonds, when said board shall discontinue such assessment. Should such fun
t 4.e
become depleted, the board of bank examiners shall make such additional
assessment from time to time as may become necessary to maintain the same;
provided, that not more than five such assessments of one-twentieth of one
per cent each shall be made in any one calendar year. The treasurer of the
State of 741ssis.2 1 .1)21 shall hold this fund in the State depository banks as
provided by law governing other State funds, subject to the order of the
board of bank examiners, to be countersigned by the auditor of State, for
the payment of depositors of failed guaranteed banks as hereinafter provided. The State treasurer shall credit this fund quarterly with its
proportionate share of interest received from State funds computed at the
minimum rate of interest provided by law, upon the evera,e
balance
of said fund.
Insolvent bank; how to be dealt withkeayment of creditors; notice published
and proof of claims made.

A-

Sec. 36. When any bank shall be found to be insolvent by the bank
examiner, he shall take charge of such bank as provided by law and proceed /7,iei
to wind up its affairs; and he shall at the earliest possible moment issue to
each depositor a certificate upon proof of claim, bearing 6 per cent inter- Ae.
est per annum, upon which dividends shall be entered when paid, except where
a contract rate exists on the deposit, in which case the certificate shall
beer interest at the contract rate. Notice of the amount of each dividend
to be paid creditors and the date when such payment is to be made shall be
published in two consecutive issues of a paper of general circulation in a
county or city in which said failed bank is located and a corresponding
notice placed on the door of the examiner's office and interest shall cease
on each dividend on the day named in such notice. The bank examiner shall
likewise publish a notice of the date upon which he will make payment of any
balance due on such proof of claim, and interest shall cease on the day so
advertised and said proof of claim shall so state. After the officer in
charge of the bank shall have realized upon the assets of such bank, and
exhausted the double liability of its stockholders, and shall have paid all
funds so collected in dividends to the creditors, he shall certify all
balances due on guaranteed deposits ( if any exist) to the board of bank

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examiners, who shall then upon his approval of such certificates, draw
checks upon the State treasurer, to be counter-signed by the auditor of
state, payable out of the bank depositors' guaranty fund in favor of each
depositor for the balance due on such proof of claim as hereinafter provided.
If at any time the available funds in the bank depositors' guaranty fund
shall not be sufficient to pay all guaranteed deposits of any 'ailed bank,
the five assessments herein provided for having been made, the boardof
bank examiners shall pay depositors pro rata, and the remainder shall be
paid when the next assessment is available; provided, however,that whenever
the board of bank examiners shall have paid any dividend to the depositors
of any failed bank out of the bank depositors' guaranty fund, then all
claims and rights of action of such depositors so paid shall revert to the
board of bank examiners for the benefit of said bank depositors' guaranty
fund, until such fund shall have been fully reimbursed for payments gde on
account of such failed bank, with interest thereon at three per cent per
4
anmun.
Banks failing to remit assessments penalized; its securities may be sold to
pay same.

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Sec. 37. A penalty of fifty per cent of the amount of said assessment
shall be added tothe assessment of any bank not remitting as aforesaid
within thirty days after receipt of notice of such assessment from the board
of bank examiners, and if any bank which shall have been assessed and notified as aforesaid shall fail to remit the amount of said assessment as
herein provided, a sufficient amount of its bonds (together with the unexpired
coupons) shall be immediately sold by the board of bank examiners at public
sale and the proceeds used to pay said assessment. Any balance remaining
from the proceeds of such sale after the payment of such assessment shall
remain to the credit of the bank in the depositors' guaranty fund. The
said balance, together with the remainder of the bonds (or cash in lieu
thereof) shall be forfeited to the bank depositors' guaranty fund if the
bank doeatiot, within sixty days from default in payment of such assessment,
remit the full amount of such assessments and penalty to date and restore
the amount of its bonds, or money pledged as evidence of good faith. Upon
the bank's failure to remit its assessments according to the terms of this
act a bank examiner selected by the board of bank examiners shall immediately
examine such bank, and if it is found, in his judgment, to be insolvent,
he shall take charge of and liquidate said bank according to law. If said
bank be found solvent, an additional penalty of fifty dollars shall be
added for each day thereafter such bank is so in default.
What deposits are subject to guarantee; amount of same certified.

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Sec. 38. All deposits not otherwise secured shall be guaranteed by this
act. The guaranty as provided for in this act shell not apply to a bank's
obligation as indorser upon bills rediscounted, nor to bills payable, nor tc
money- borrowed from its correspondents or others, nor to deposits bearing a
greater rate of interest than four per cent per annum. Each guaranteed
bank shall certify under oath to the board of bank examiners at the date of
each called statement the amount of money it has on deposit not eligible
to guaranty under the provisions of this act, and in assessing such bank
this amount shall be deducted from the total deposits.

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interests :ecord kept of same; uniform rates of interest to be
nalty for claiming deposits guaranteed in violation of this act.

Sec. 39. Each guaranteed bank, and each State or private bank not
guaranteed by this act, shall keep a correct record of the interest rate and
terms of each deposit on which it has paid or agreed to pay interest, and
shall make a statement thereof under oath to the board of bank examiners
quarterly. Any officer of any guaranteed bank who shall pay interest on
- different tends or in excess of a rate which rate shall be uniform within
each county) that shall be approved by the board of bank examiners from time
to time on any form of deposits, or pay any interest on any savings deposit
withdrawn before July 1st, or January 1st next following the date of deposit,
or on any time certificate cashed before maturity shall be deemed to be
reckless and may be removed from office as provided by law; provided, however, that any existing contract for higher rates of interest entered into
before the taking effect of this section, may be carried out unimpaired,
and such existing contract shall not subject banks to the provisions herein
provided. Any managing officer of any bank guaranteed under this act, or
any person acting in its behalf or for its benefits, who shall hereafter
pay or promise to pay to any depositor either directly or indirectly, any
rate of interest on different terms or in excess of or in addition to the
maximum rate of interest permitted by this act, or who shall, with intent
to evade any of the provisions of this act, pledge the time certificate or
other obligation of such bank as security for the personal obligation of
himself or any other person, or who shall display any card or other advertising tending to convey the impression that the deposits of the bank are
guaranteed by the State ofMississippil either directly or indirectly, shall
be deemed guilty of a misdemeanor, and on conviction be punished by a fine of
not more than t1,000.00 nor less than ::'500.00. Any managing officer of
any bank, or any person acting in its behalf or for its benefit who shall
display any card or advertisement or make any statement to the effect that
its deposits are guaranteed by the bank depositors? fund of the State of
Mississippi, when the bank is not authorized to do so under the provisions
of this act, shall be guilty of a misdemeanor, and upon conviction the-eof
shall be subject to a fine of not less than five hundred dollars nor more
than one thousand dollars.

(

Securities returned when bank retires from business.
Sec. 40. A solvent gupranteed bank, upon retiring from business and
licuidating its affairs, shall be entitled to receive from the State treasurer
its bond or money pledged, after all depositors in such bank and all assessments on account of the guaranteed banks in liquidation have been paid in
full, but not any part of any unused assessments that may be in the bank
depositors? guaranty fund.
Cash or bonds in lieu of securities.
Sec. 41. Banks may be permitted, in the discretion of the board of bank
Orexaminers to exchange their bonds for others acceptable under this act,
or be allowed to deposit in lieu thereof an equal amount of cash, which may
in turn be withdrawn upon the substitution of bonds acceptable under this
act.

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Securities in guarantee fund to be kept separate from other funds.
Sec. 42. Al]. bonds, and moneys deposited in lieu of bonds, placed in
the State treasury under this act shall be kept in said treasury separate
from all other bonds and moneys and to the credit of the bond account of
the bank depositors' guaranty fund, and shall be used for no other purpose.
The State treasurer shall cause thaeoupons upon said bonds to be cut thirty
days before maturity and sent or delivered to the bank which deposited them;
provided, always, that said bank shall have paid all assessments in full
to date.
Limitation on amount of deposits received by guaranteed banks.
under the provisions of
irtmaq; unlawful for any bank guaranteed
six months in excess of ten

this act to receive deposits continuously for
times its paid-up capital and surplus) except savin,s banks, and any banks
violating this section shall be deemed guilty of a misdemeanor and upon
conviction punished by a fine of not less than $500.00 nor more than
01,000.00.
Forms and reports p -eserved by bank examiners; forms and record books provided.

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Sec. 44. For the purpose of carrying into effect th4rovisions of this
act relating to the guarantee of bank deposits) the board of bank examiners
shall provide that the necessary forms and all reports received by the ban],
exariners shall be preserved by them in their offices; and the State
treasurer is authorized to provide forms and record books for his office,
and such forms and record bo ks shall be paid for upon order of the board of
bank examinersout of the guaranty fund.
How conflicting acts to be construed.
Sec. 45. All acts and parts of acts in conflict with this act are hereby repealed in so far as they so conflict, but no provision of any banking
law or other statute of this State shall be construed to be amended, modified or r - pealed except in so far as necessary to permit the unrestricted
operation of this act as applied to banks participating inthe privileges
of this act.
When _guarantee of denosits to be-in sworn statement of condition filed;
penalty for failure of _prompt compliance.

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Sec. 45. (a). On and after May 15th, 1915, each and every banl: organized
and existing under the laws of this State shall guarantee its deposits under
the provisions of this act relating to the guarantee of bank deposits, and
such banks shall not be required to be examined for license or certificate
to participate in the guaranty fund, provided they shall have been examined
twice already and found to be solvent, and provided, that within five days
after May 15th, 1915, each and every bank in the State of Mississippi which
shall not then be operating under the provisions hereof relative to the
guarantee of deposits shall file with the board of bank examiners a sworn
statement of its condition on May 15, 1915, in form to be prescribed by said
board, and any such bank failing to comply with the provisions of this
section providing for the guarantee of bank deposits shall be subjected to
the same penalty heretofore provided for failure to pay any and all assessments for the purpose of creating a depositors' guaranty fund, and any

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officer of any bank making affidavit to the statement hereinbefore required
who shall make therein any false and misl_ading statement, shall be guilty
of a felony and, upon conviction thereof, be punished as for perjury.
How banks may participate after guzrantee fund becomes operative.
Sec. 46. For the purpose of providing for the guarantee of its deposits,
it shall be the duty of every bank organized and existing under the laws of I'
this State which shall not theretofore have elected to guarantee its depositE„ ,.
under the provisions of this act relating to the guarantee of bank deposits
and which shall not have been examined twice during the twelve preceding
months, to make within fifteen days after May 15th, 1915, application to
the board of bank examiners for license to participate in the assessments
and benefits and to be governed by the regulations of the bank depositors'
guaranty fund of the State of Mississippi. Each such bank shall, by a
resolution of its board of directors, duly certified by its president and
secretary, in form to be provided by the board of bank examiners, and filed
with such board of bank examiners, request admission to participate in
such assessments and benefits, and, upon the filing of such resolution
the board of examiners shall, as soon as possible, authorize one of the
examiners to make a rigid examination of the affairs of such bank, and if
it is found to be solvent, to be properly managed and conducting its business
in strict accordance with the banking law, such examiner shall, after the
bank shall have deposited with the State treasurer bonds or money, as hereinbefore provided to be deposited by the bank electing to come under the provisions of the bank depositors' guaranty fund, i:sue to such bank a certificate stating in substance that said bank has complied with the provisions
of this act, and that its depositors are guaranteed by the bank depositors'
guaranty fund of the State of Mississippi, as hereinbefore provided. Each
bank coming under the provisions of this act after the 15th day of May, 1915,
shall be subject to the same requirements, liabilities and conditions and
entitled to the same privileges and benefits as hereinbefore provided for
banks electing to come under the provisions of this act prior to said date.
Any bank in the State of Mississippi which shall fail, neglect or refuse
to comply with the provisions of- this act within fifteen days after the 15th
day of May, 1915, providing for the guarantee of bank deposits, or which
shall neglect, fail or refuse to comply with the reasonable demands of the
board of bank examiners shall be subjected to the same penalty heretofore
provided for failure to pay any and all assessments for the purpose of
creating a depositors' guarantee fund.

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Sec. 47. Bank stock not accepted as collateral. The shares of stock
of banks shall be deemed personal property, and shall be transferred on the
books of the bank in such manner as the by-laws thereof shall direct, and
as by law required. But no such bank shall accept as collateral, or be the
purchaser of its own capital stock, except in cases where the taking of
such collateral or such purchase, shall be necessary to prevent loss upon a
debt previously contracted in good faith, and in such cases, unless full
payment of such debt is made, such stock shall be sold by the bank within
twelve months from the time it was acquired.
Sec. 48. Record kept of names of stockholders, transfers of stock and
fixing liabilities of stockholders selling stock. A book shall be provided
and kept by every bank, in which shall be entered tkle names and residences
of the stockholders thereof, the number of shares held by each, the time

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Federal Reserve Bank of St. Louis

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when such person became a stockholder, and also all transfers of stock,
stating the time when made, the number of shares and by whom transferred.

Liability when stockholder transfers stock from one bank to another.
In all actions, suits and proceedings, Said bank shall be prima facie
evidence of the facts therein stated. The liability of any stockholder in
a bank upon transferring his stock in such bank to another shall not cease
until the next regular or special examination of said bank following the
date of transfer of said stock and not then unless such examination shows the
bank to be solvent; but the purchaser's liability shall begin after the next
ensuing examination sliming the bank to be solvent.
Sec. 49. Conditions upon which real estate mai be held. Any corporation doing a banking business in this State may purchese, hold and convey real
estate for the following purposes and no others: (1) Such real estate as
shall be held necessary in which to transact thOusiness of any such bank,
including with its banking offices, other peemises in the same building to
rent as a source of income, but shall not exceed in cost to such bank thirty
per cent of its paid in capital, surplus and undivided profits; provided that
banks in cities of more than 6,000 population may invest nol, more than fifty
per cent, by and with the consent of the board of bank examiners. (2` Such
real estate as shall be purchased by or conveyed to such bank in satisfaction
of or on account of debts previously contracted in the course of its business.
(3). Such real estate as it shall purchase at sale under judgments, decrees,
or mortgages, or deed of trust, foreclosure under securities held la,' it or
under any security or lien whieh is a superior lien to that held by said
bank.
en real estate acquired under this sectiol to be sold.
Any real estate heretofore acquired for any other purpose than as 2,e,-Ified in subdivision "1" of this section in any manner or form shall be sold
within five years from the time this act takes effect, and any real estate
acquired as provided in said subdivisions "2" and "3" after this act take
effect shall be sold within five years after the title thereto is acquired If any such real estate is not sold within the time herein limited, it shall
not thereafter be carried as an asset of the bank.
Sec. 50. Qualifications and duties of directors. Ever,;,- director of
every bank must be the owner, in his own right, of unimcumbered stock therein
to the amount of at least two hundred dollars par value. He shall take and
subscribe an oath that he will faithfully and diligently perform the duties
of his office and will not knowingly violate or permit to be violated any
provisions of this act. The said oath shall be immediately transmitted to
the board of bank examiners and filed in their office. Every executive and
managing agent of every bank doing business in this State shall subscribe
to a similar oath and immediately transmit the same to the board of bank
'
examiners. A majority of an executive board or auditing committee selectee.
by a majority of the board of directors or of the board of directors of ev
corporation doing a banking business in this State shall meet at least once
every three months, and shall at such times examine the lone, paper and
securities of the bank and its liabilities and resources of every kind. A
statement showing the results of such examination shall be epread upon the
records of the directors' meeting, and shall be mAmeribed to by each of said
directors present at any such meeting.

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Sec. 51. Dividends to be declared. Any bank may declare a dividend
of so much of the net profits of the bank, after providing for all expenses,
interest and taxes accrued or due from such bank as shall be deemed just and
expedient; but, before any such dividend is declared, not less than one tenth
of the net profits of the bank for the preceding half year, or for such
period as is covered by the dividend shall be carried to a surplus until
such surplus shall amount to twenty per cent of its paid capital. No charges
shall be made against such surplus for any purpose other than that necessary to
provide for losses until such surplus shall equal twenty per cent of the paid
capital, provided, hoTever, that said charges against said surplus fund
shall be made only when the undivided profits are insuffidbnt to cover said
losses.
Sec. 52. Penalty for receiving deposits when insolvent. The owners or
officers a_ employes of any bank or branch bank who shall receive any deposit
knowingi„that such bank or branch bank is insolvent shall be deemed guilty of
felony and punished, upon conviction therefor, by a fine not exceeding one
thousand dollars, or imprisonment in the State penitentiary not exceeding
two years, nor less than one year or by both such fine and imprionsment, at tle
discretion of the court, for such offense.
Sec. 53. Deposits of minors. When any minor or other person under
disability shall make a deposit in any bank in his or her name, such bank may
pay such money on a check or order of such person, the same as in other cases,
and such payment shall be in all respects valid in law.
When a deposit has been made or shall hereafter be made in the name of two
persons, payable to either, or payable to either or the survivor, such deposit
or any part t4lereof or interest or dividends thereon, may be paid to either
of the said persons whether the other be living or not, and the receipt or
acquittance of the person so paid shall be valid and sufficient release and
discharge to the bank for any payment so made. Any bank may pay to the nearest
relative of a deceased depositor, without necessity of administration, any sum
to the credit of decedent not exceeding three hundred dollars. This section
shall apply to all banking institutions, including national banks and postal
savings banks within the State.
Sec. 54. Liability of persons,. firms and corporations to banks. The
total liability lD a bank_by a person, company, corporation or firm for money
loaned including in the liabilities of a firm or company the liabilities of
the several members thereof, shall not exceed twenty-five per cent of the
aggregate paid in capital and surplus of said bank. The discount6f bills of
exchange drawn in good faith, against actual existing values of loans made on
time secured by warehouse receipts or bills of lading, or actually existing
values, shall not be restricted to, or considered as coming within such
limitations of twenty-five per cent; provided, that said loans shall not
exceed ninety per cent of the actual value of commodities represented by said
warehouse receipts, or actually existing values, but the discount of commercial
or business paper, actually owned by a person, or firm negotiating shall not
be construed as money borrowed or considered as coming with said limitation of
twenty-five per cent. Any officer or director who shall allow in such cases
loans prohibited ilythis section shall be liable individually therefor.

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Sec. 55. Certifying to checks. No owner, officer, clerk or employe of
any bank shall certify to a check unless the amount thereof actually stands
to the credit of the drawer on the books of the bank, and any person who
shall willfully violate this provision shall on conviction thereof, be deemed
guilty of a misdemeanor and be punished by a fine not exceeding one thousand
dollars. The amount of any check certified shall le at once charged to the
drawers account and credited to certified checks account, there to remain
until said check is retired. Any such check so certified by a duly authorized
person shall be a good and valid oblization of the bank in the hands of the
holder.
Sec. 56. How officers and employes may borrow money from such banks.
No officer, owner or employe of any bank in this State shall be permitted to I
borrow any of the funds of the bank upon his own note or obligation whether
secured or not without first having obtained the approval of a majority of
the board of directors of the bank, or of an executive board of discounting
committee selected by a majority of the board of directors; such selection
to be recorded in the minutes and the approval of the loan, if obtained,
shall be made a part of the records of the bank. And if the directors of
any bank shall knowingly permit any of the officers, directors or employes
of such bank to borrow the funds of such bank in an excessive or dishonest
manner, or in a manner incurring great risk or loss to such bank, every
director who participated in or assented to the same shall be held liable
in his personal and individual capacity for all damages which the corporation,
its stockholders, or any other person shall have sustained in consequence
thereof. No bank examiner shall be permitted to borrow money or effect any
loan directly or indirectly of any bank to which this law applies. eSoc. 57. Cash reserves. Every ban% doing business under this act in
cities or towns having a population of less than fifty thousand in-habitants
shall have on hand at all times in actual cash, or balances due from good
solvent banks, not less than fifteen per cent of its demand depists and seven
per cent of its time and savings deposits. Every bank doing business under
this act in cities having a popelation exceeding fifty thousand inhabitants,
shall have on hand at all times in actual cash, or balances due from good
solvent banks not less than twenty-five per cent of its demand deposits
and ten per cent of its time and savings deposits.
Sec. 58.
Reports to legislature. The board of bank examiners shall (
make a full report as required by law of other State officers to the legislature at each biennial session thereof, of the proceedings in and work of
the banking department, and of all charters issued and corporations liquidated or dissolved through its agency, and shall submit such recommendations
with reference to said department as they may consider appropriate, which
report shall, also, show fully and in detail, separately the work done and
the eXpenses incurred by such examiner.
Sec. 59. Liability or stockholders. The stockholders of every bank
shall be individually liable, actually and ratably, and not for one another,
for the benefit of the depositors in said bank to the amount of their stock
at the par value thereof, in addition to the said stock; but persons holding
stock as executors, administrators, guardians, or trustees, and persons
holding stock as collateral security, shall n, I. be perL(nally liable as

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stockholders, but the aes, t, and funds in their hands constituting the trust
shall be liable to the same extent as the testator, intestate, ward or person interested in such trust fund would be, if living or competent to act;
and the person pledging such stock shall be deemed the stockholder and liable
under this section. Such liability may be enforced in a suit at law or in
equity by any such bank in process of liquidation, or by any receiver, or
other officer succeeding to the legal rights of said bank. /14
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/
di te

Procedure in case of liquidation; banks may enjoin action of examiners; claims
against bank t be presented; action on same duties of examiners upon taking
possession of bank property; disposition of assets; payment of dividends to
depositors.; residue of assets turned over to stockholders; unclaimed deposits
coeflicting claims.

•

Sec. 60. Liquidation. Whenever any corporation doing a banking business /
of whose property and business the be/17- examiner has taken possession as aforesaid deems itself aggrieved thereby, it may at any time within ten days after
taking such possession, apply to the chancery court or chancellor in vacation
or other court of like jurisdiction in the county where the principal office
of such bank is .located to enjoin further proceedings by the bank examiner
and the court, or chancellor in vacation, after citing the bank examiner to
show cause why further proceedings should not be enjoined and hearing the
allegations and proofs of the parties and determining the facts, may upon
the merits dismiss such application and require the bank examiner to give an
additional bond commensurate with the assets of the bank making such application or enjoin the bank examiner from further proceedings and direct him to
surrender such business and property to such corporation; and any such application for injunct4_on may be heard at any time after one day's notice from
the time of service on the bank examiner, in the discretion of the court. The
bank examiner may, under his hand and official seal of the banking department,
appoint an agent to assist him in the duty of liquidation an4 distribution
of the assets of any bank taken possession of by him under the provisions
hereof, the certificate of appointment to be filed in the office of the board
of bank examiners and a certified copy in the office of the chancery clerk
in the county in which the principal office of such bank was located, and
such special agent shall receive a salary not exceeding t200.00 per month
for the time he is actually engaged in assisting and liquidating the affairs
of the bank. The bank examiner may authorize such agent to perform such
other duties connected with such liquidation and distribution as the bank
examiner himself could in person do and perform. The board of bank examiners
may employ such counsel and procure such exper+, assistants and advIce as may
be necessary in the liquidation and distribution of the assets of such bank,
and may retain such of the officers or employes of such bank as they may
deem necessary. The bank examiner shall require from the special agent appointed
by him and from such assistents, as will have charge of any of the assets of
the bank, such security for the faithful discharge of their duties as he may
deem proper. The bank examiner shall cause notice to be given by advertisement in such newspaper as he may direct weekly, once a week for six consecutive weeks, calling on all persons who may have claims, but not including
deposits shown by the books of the bank which shall prima facie be a proven
claim against the bank, against such corporation, to present the same to the
bank examiner and make legal proof thereof, at a place and within a time to
be specified in this notice, not less than ninety days from the day of the
first publication of the notice. The bank examiner shall mail a similar

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notice to all persons whose names appear as creditors upon the books of the
corporation. If the bank examiner doubts the justice and validity of any
claims or deposits, he may reject the same and serve notice of such rejection
upon the claimant or depositor, either by mail or personally and an affidavit of service of such notice, which shall be prima facie evidence thereof,
shall be filed in the office of the board of bank examiners. An action upon
a claim so rejected must be brought by petition to the court having jurisdiction of the affairs of the bank by the claimant within six months after
such service or the same shall be barred. Claims presented and allowed after
the expiration of the ti7Je, fixed in the notice to creditors shall be entitled to share in the distribution only to the extent of the assets in the
hands of the bank examiner at the time claims are filed, without allowing for
previous distribution. Upon taking possession of the property and assets of
such corporation the bank examiner shall make an inventory of the assets of
such corporation in duplicate, one to be filed in the office of the board of
bank examiners, and one in the office of the chancery clerk in the county in
which the principal office of such corporation was located (but not recorded.)
Upon examination of the time fixed for the presentation of claims, the bank
examiner shall make in duplicate a full and complete list of the claims.
presented, including and specifying which claims have been rejected by him,
one to be filed in the office of the board of bank examiners and one in the
office of the chancery clerk of the county in which the principal office of
such corporation was located, but not to be recorded. Such inventory and
list of claims shall be open at all reasonable times to inspection. The
compensation of the special agents of the bank examiner, counsel and other
employes and assistants and all expense of supervision and liquidation shall
be fixed by the bank examiner subject to the approval of the circuit or
chancery court in the county in which the principal office of such corporation is located, eeRvenea%len te aRy-aseietgn4-e/2-e4hep-empleye eeee4
on notice to such corporation, but in no event shall the compensation to any
assistant or other employe exceed $200.00 per month for services actually
rendered and unless in case of emergency the compensation to counsel must
be fixed and approved before the services are rendered, to-wit; in no case
to exceed ten per cent of the funds administered. When the compensation for
the various parties aiding in the liquidation is fixed and approved the
same shall be paid out of the funds of such corporation in the hands of the
bank examiner, and shall be a prior charge and lien on the assets of such
corporation. The money collected by the bank examiner shall be, from time to
time deposited in one or more State depositories. At any time after the
expiration of the date fixed for the presentation of claims, the bank examiner
may, out of the funds remaining in his hands after the payment of expenses
declare and pay one or more dividends to creditors, and as soon as practicable,
thereafter, he shall declare and pay a final dividend, such dividend to be
paid to such persons and in such amount and upon such notice as may be directed
by the circuit or chancery court having jurisdiction of the cause in the
county in which the principal office of such corporation i located. Objections to any claims or de.,)osits not rejected by the bank examiner, may be made
by any party interested, by filing a copy of such objections with the bank
examiner, who shall present the same to the court having jurisdiction before
the time of the next application to declare a dividend. The court may make
proper provisions for unproven or unclaimed deposits. Whenever the bank
examiner shall have paid to each and every depositor and creditor of such

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corporation whose claim or claims as such creditor or depositor shall have
been duly proven and allowed, the full amount of such claims, and shall have
made proper provisions for unclaimed and unpaid deposits or dividends, and
shall have paid all the expenses of liquidation, the bank examiner shall car
a meeting of the stockholders of such corporation by giving notice thereof
for thirty days by publication once 8 week for three consecutive weeks in
one or more newspapers published in the county where the principal office
of such corporation was located. At such meeting the stockholders shall
elect by ballot an agent or agents who shall wind up the affairs of such
corporation, and in so determining said stockholders shell vote by ballot,
in person or by proxy each share of stock, entitling the holder to one vote,
and the majority vote of the stock shall be necessary to an election, a
majority of the stocIhresent and voting in person or by proxy being necessary.
Such agent or agents shall execute and file with the bank examiner a bond,
in such amount, with such security and in such form as shall be approved by
the bank examiner conditioned for the faithful performance of all the duties
of his or their trust, and so conditioned that any party aggrieved may bring
or cause to be brought suit on said bond) and thereupon the bank examiner
shall transfer and deliver to such agent or agents all the undivided and
uncollected or other assets of such corporation then remaining in his hands
and take a receipt therefor signed by such agent or agents, and upon such
transfer and delivery the said bank examiner shall be discharged from any
and all further liability to such corporation, and its creditors. Such
agent or agents shall convert the assets coming into his or their possession
into cash, and shall act for and make distribution of the property of said
corporqtion as is herein provided in case of distribution by the bank examiner, except that the expense thereof shall be subject to the direction and
control of the court having jurisdiction of the cause. In case of the death,
removal or refusal to act of any such agent or agents selected by the stockholders, the stockholders on the same notice to be given by the bank examiner,
upon proof of such death, removal or refusal to act, being filed with him,
and by the same vote hereinbefore provided, may elect a successor who shall
have the same powers and be subject to the same liabilities and duties as
the agent originally elected. Dividends and unclaimed deposits remaining
unpaid in the hands of the bank examiner for six months after the order for
final distribution (at such rate of interest as is allowed by said State
depositories) shall be by him deposited in one or more State de, ositories
to the credit of the bank examiner in his official capacity in trust for
the several depositors in and creditors of the liquidated bank: from which
they were received, and the bank examiner shall pay over the money so held
by him to the persons respectively entitled thereto upon being furnished
satisfactory evidence of their right to same. In case of doubtful or conflicting claims, he may require an order from the court having jurisdiction
authorizing and directing the payment thereof. He may apply the interest
earned by the money so held by him toward defraying the expense in the payment qnd distribution of such unclaimed deposits or dividends to the depositors and creditors entitled to receive the same. The board of bank examiners'
shall file annually with the governor of this State a report of the names of
the banks tkken possession of and liquidated, and the sum unclaimed and unpaid
deposits or dividends with respect to each of them respectively together with
a statement of the amount of interest earned by such unclaimed dividends,
which reports the governor must submit to the legislature.

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Federal Reserve Bank of St. Louis

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Sec. 61. Publicity of unknown deliositors. It shall be the duty of the
bank examiner to report to the board of bank examiners the name of every
person not known to be living who appears by the records of the bank to
have a sum of money on deposit; provided this section shall only apply to
deposits made five years or more prior to such report which have not been
added to by such depositor by further deposits or reduced by withdrawal
made by him. The boar46f bank examiners shall give publicity to any auch
fact in such manner as the board may prescribe.
Sec. 62. Interlocking bank directorates forbidden. No person shall be
permitted to be a director in more than one bank serving the same incorporated
town or city doing business in this State; provided, that any person holding
a directorship in violation of this section when this act takes effect shall
be given twelve months to comply with this section. Any person holding a
directorship in violation of this section shall be guilty of a misdemeanor,
and upon conviction shall be fined not more than S100.00 and be ineligible
to hold a directorship in any bank under the provisions of this act within
two years therefrom. Provided this section shall not apply to savings bank
and trust companies operated in connection with commercial banks doing
business in the same building.

•

Sec. 63. Voting trusts in banks prohibited. The transfer of any part
of the stock of a bank under the provisions of this act, to trustees solely
or primarily that they may vote the same at annual elections and stockholders'
meetings--"voting trusts" as they are generally known--is expressly prohibited.
A violation of this section by any bank or banks under the provisions of this
act, shall constitubsa breach of law, and subject any such bank or banks to
liquidation and forfeiture of their respective charters.
Sec. 64. Banks forbidden to hold stock in other banks. No part of the(
/p
stock of any bank except regional reserve banks, doing business in this
State shall be owned by any bank under the provisions of this act. Any such
stock owned by any bank at the time this act takes effect shall be disposed
of within twelve months after such time. In cases where such stock is taken
as collateral and the purchase thereof shall be necessary to prevent loss
upon a debt previously contracted in good faith, then in such cases such
stock shall be sold by the bank within twelve months from the time that it
was acquired. A violation of this section by any bank or banks under the
provisions of this act shall be constituted a breach of law and subject any
such bank or banks to liquidation and forfeit of their respective charters.

Sec. 65. ClearinK house associations must incorporate. No bank under
the provisions of this act may be, become or remain a member of, or otherwise
affiliated or connected with any voluntary or unincorporated organization
performing any of the functions of a clearing house or clearing house
association. Banks serving the same community or locality desiriag to be
associated together for the purpose of a clearing house association, shall
have such association become a body corporate of this State under the
general law provided for corporations. All banks doing business in this
State may become members of such association shall have the right to voluntary
withdrawal from such clearing house association, subject to the discharge of
its obligations to the association and the members thereof.

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Federal Reserve Bank of St. Louis

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411

Charter of clearing house association; what to prohibit; members not to be
restricted to certain matters.
The charter or articles of association or the law under which such
association is organized must prohibit it and its officers and managers
from exercising or attempting to exercise, directly or indirectly, any control or influence over its members thereof or over the conduct of their
business except as expressly authorized by its charter, and from making
or attempting to make or enforce any rule, regulation, agreement, or
understanding in respect to any of the following prescribed subjects:
(1) The restriction or regulation of competition between the members
of the association or any of them in any matter or thing connected with the
business conducted by such members or authorized to be done by them under
their respective charters.
(2) The fees, commission, or other compensation chargeable by or payable to or to be charged by or paid to any member by its customers or ct.herwi:_
for the collection by or through such member or its agent or correspondent
of checks, drafts, notes, or bills or exchange drawn upon banks, bankers,
trust companies, or others that are not members of such associations or
that are outside its boundaries;

•

() The rates of discount or interest chargeable or to be charged by,
or to be paid to, members on loans or discounts to or for customers or
others.
(4) The rates of interest to be allowed by members on deposits; and

(5)

The rates of exchange.

A violation of this section by any bank or banks under the provisions
of this act, shall constitute a breach of law and subject any such bank or
banks to liquidation and forfeiture of their respective charters.
Sec. 66. Definition of terms used. Whenever the word "bank" is used
in this act, unless the context clearly shows that it is intended to be
limited in its application to a particular character of bank, shall include
trust companies, savings banks, branches of banks, and trust companies,
and other institutions subject to the provisions in this act.
The term "corporation," when used in this act to refer to banks, or
trust companies shall be construed and held to embrace every character of
bank, branch bank, trust companies, any branch thereof, and other corporations subject to the jurisdiction of the banking department.
Bank officers, etc., must not contribute to campaign funds of candidate for
examiner.
Sec. 67. Any director, stockholder or officer of any banking institution
coming under the provisions of this act who shall contribute directly or
indirectly to the campaign expense of any candidate for bank examiner shall
be :uilty of a misdemeanor and upon conviction shall be punished by a fine of

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Federal Reserve Bank of St. Louis

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•

not less than $500.00 nor more than $1,000.00 and by imprisonment in the
county jail not less than three months nor more than taelves months, or by
both such fine and imprisonment, and receipt of such contribution shall
disqualify the candidate knowingly receiving the same from holding the
office of bank examiner.
Sec. 68. Provisions of unconstitutionality of any part of this
act, and repeal of all conflicting laws. It is hereby declared to be the
legislative intent, that if the courts shall declare any pert, provision or
section of this act to be unconstitutional said unconstitAlonality shall
not effect or destroy any other part or provision or section of this act;
and all laws or parts of laws in conflict with this act are hereby repealed.
Sec. 69. When to take effect. That this Act shall take effect
and be in force from and after its passage.
Approved March 9, 1914.

,
cravvvid
•

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Federal Reserve Bank of St. Louis

•

AMENDMENTS TO THE BANKING LAWS OF MISSISSIPPI

1916

(Mrs. Bastedols Synopsis)

e44,'
Department of Banking
Chapter 207, p. 314. Amends 1914 - Chapter 124, Section 23."
. A minimum assessment of $50. a year is provided for.

••

Examination
Chapter 207, Section 1, p. 313. Amends 1914 - Chapter 124, Section 15.
In the items not allov.able for credit, the item regarding overdrafts
is changed to read:
"Nor for any unsecured overdrafts that may have existed for
greater period than 30 days"
instead of "three months."
The further provision is made and:
"only such overdrafts shall be considered as secured as those advanced
against products or actual existing values evidenced by warehouse
receipts or bills of lading, or against bills of exchange drawn in
good faith against actual existing values."

J )Jv
(
Violations and Penalties
Chapter 207, Section 3, p. 518. J

•

Neglect of duty by banker, officer,
employee, director, or agent
guilty of a misdemeanor. Any state
bank examiner who neglects to carry
out any part of the law where no
other penalty is provided.

.0.,\C--1-di 4 ,

747:
0
;7;
I/

Fine not over
4500.00 and/or
imprisonment not
over 6 months.

Chapter 207, Section 4, pp. 318-19.
Perjury by officer, director,
employee, owner or agent.

Imprisonment not to
exceed 3 years.

Chapter 207, p. 318
Violation

Penalty

Sec. 2, p. 318
False statement by officer,
director, cashier, agent, clerk,
or owner with intent to deceive

)
)

Fine of not over
_1,000 or imprisonment
not o'er 3 years.

L--

Reports of Condition
Chapter 207, Section 1, pp. 313-4. Amends 1914 - Chapter 124, Section 19.
The only change is the specifying that a cony of such "published"
report instead of just "report". (The slimmary at the beginning of

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Federal Reserve Bank of St. Louis

-2(Amendments - 1916)
of the chapter refers to "chaoges for conies of bank reports" but
only change, after two careful readings and checkings, to be found
was the insertion of the word "published" before resort.)
The Fund
Chapter 207, Section 1, pp. 314-5. Amends 1914
Initial Deposit with State Treasurer.

Chapter 124, Secti-a

Good road bonds and drainage district bonds are added as acceptable
security to be deposited. Where it states the uurpose of the fund it
originally was written to pay "at once." The wor,:h9 "at once" are
nawomitted.
It is also provided thatnntes, bonds, securities or assets of any .
kind, which any bank may deposit or hypothecate as collateral for funds
borrowed, shall be used first for the liquidation of the debt for
which said collaterals are hypothecated. Any remaining (or funds
therefrom) are to be delivered to the bank or to the board of banking
examiners for the protection of the depositories of the bank and for
the Guaranty Fund.
Assessments
Chapter 207, Section 1, pp. 515-6. Amends 1914 - Chapter 124, Section 55.
In the date for making assessments the phrase "or as soon thereafter
as practicable" is added.

T;.e further provision is made that whenever the current fund reaches
0.0,000 and as often as the fund shall accumulate to that amount the
state treasurer, by order of the Board of Bank examiners, shall invest
proceeds of the fund. U. S. or Lississippi state bonds,the bonds
of any levee or drainage district or the bonds of any county, township or municipal bonds within the state of mississippi.
Interest
Chapter 207, Section 1, pp. 316-17. Amends 1914 •- Chapter 124, Section 39.
instead of making a statement "quarterly" it now reads "upon the same
dates for which call statements are made as provided for in Section
18 of this act."
Stockholders Liability
Chapter 207, Section 1, p. 318. Amends 1914 - Chapter 124, Section 59.
In the old section, in giving the exception for persons holding stock
as executors, etc., the phrase "and persons holding stock as collateral security" is included.
In the new one, this is omitted at that point and the same phrase
inserted subsequently as follows:
"and persons holding stock as collateral security shall not be personally responsible as stockholders but the person holding such stock
shall be deemed liable under this section.

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-3(Amendments - 1916)

•

Loans and Investments
Chapter 207. Section 1, P. 317. Amends 1914, Chapter 124, Section 56.
Loans to Officers and Employees.
The section is the same but with the provision regarding violations
added that any officer, director, owner or employee who borrows or
permits to be borrowed any money or funds in violation of this act
shall for each offense either be fined up to :;t5,000 or be imprisoned
up to 3 years.
The penalty for violation by a bank examiner is a fine of not more
than $5,000.
The discount of commercial or business paper, actually owned by a
b construed as money
person pr firm making the negotiations shall not!
11;
.,
,
.Cyrowed or coming within the 25% limit.,,,
J
,,
.
)Any of,r pr direpI2E..,
shall be liable
fi.T?4
'
individ ,
- 115/qt-ergfor,
Depositories. Public
Chapter 208, p. 319. Amends 1914 - Chapter 257, Section 2.
The additional provision is made that failing to secure a county
depository by advertisement to the banks of the county and adjoining
counties, they shall re-advertise in the county and in a state bank
throwing it open to any state bank and giving preference to banks
outside the home county.
The clerk of the board of supervisors is to send a copy of the notice
to the state treasurer who will assist in getting some bank in the
state to bid.
Deposits Subject to Guaranty
Chapter n177, p. 316. Amends 1914 - Charter 12/1, Section 38.
First sentence is amended to read as follows:
Remainder unchanged.
Sec. 3. All deposits not otherwise secured and all cashier's
chec:s, certified checks or sight exchange issued by banks operating
under this law shall be clara-teed by this act.

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AMENDMENTS TO THE BANKING LAWS OF MISSISSIPPI - 1917
(Mrs. Bastedois Synopsis)
Trust Companies
HAMC - Section 6524, p. 1832
Duties and Powers. May accent rnd execute all trusts and perform such
duties as may be committed to them by any person or corpor-tion, or
by order of any court,
or in any other fiduciary
capacity authorized by law.
They may loan money on real estate or collateral security.
must not be of greater rate than allowed by law.

Interest

Must make same reports each year, showing their assets and liabilitic_.
and be governed by the same laws as other banking institutions.
HAMC - Section 5525, pp. 1852-35
Mutual loan Department. Expenses, losses and profits to be kept
separate from all other departments.
"They may receive as members of said department persons who desire to
become such and to borrow money from the company and to fix and regulate the manner of conducting such department. Shares of stock may
be issued to sue, borrowers, to be paid for .n such installments as
may be agreed upon or fixed by the by-laws."
8% interest maximum allowed company itself or other investors in the
department. The remainder of the net profits are to be credited on
the stock of the borrowing members, who are to continue to pay the
installments agreed upon until such stock matures or their indebtee
ness is otherwise discharged.
All their loans may be secured by mortgages or trust deeds on real
estate or other sufficient collateral security.
They may own such real estate as may be required and convenient for
the transaction of their business and as they may acquire in the
enforcement and collection of debts due them.
HAMC - Section 3526, p. 1833.
Use of terms. All corporations in the state authorized to do a banking business must use the word "bank" or "banking" in its name and
those chartered to do a trust business must use the word "trust," and
these terms may not be used in any corporate name where such business
is not authorized.
RAMC - Section 3527, p. 1833.
Use of name of bank by other persons not permitted.

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-2(Amendments - 1917)

Branch Banking
HA&C - Sections 6521 and 3522, p. 1831 (Sec. 260 of 1906)
Creation of branch banks after this act goes into effect is expressly
forbidden, both in the state and by a parent Mississippi state bank
outside the state.
Every parent bank operating a branch bank or banks must set apart
for the exclusive use of each such branch capital of at least 0_0,000.

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•

Ami-WmENIS 10 ihM bANKING LI61S OF MISSISSIPPI - 1918
(Mrs. Bastedo's Synopsis)

Assessments
Chapter 165, Section 1, pp. 179-30. Amends 1916 Ch. 207, pp. 315-16(10-P(
In setting the annual date for assessments the date "during the month
of January" is modified by "or as soon thereafter as practicable."

\41

In the provisions for inv sting the fund, instead of "shall amount
to as much as 0.0,000
as often as the fund shall amount to" it nov,
reads, "whenever the guaranty fund amounts to $10,000 or multiples
of g;10,000."
Road district bonds, and guaranty certificates issued by the banking
department are added to permissible investments.
The provision is added that whenever the demand on the guaranty fund
exceeds the cash on hand, the state treasurer shall, at the order of
the board of bank examiners, sell or hypothecate such bonds as they
deem advisable.
In addition to crediting the fund with its share of interest on the
funds deposited, the state treasurer is also to credit it with the
interest on tne bonds in which the funds are invested.

oieuidation - Voluntary
•
Chapter 247, Section 1, pp. 303-305.
Upon a vote of 2/3 of the capital stock of any solven
coi
poration they may proceed as follows:
(a) the bank to notify the board of banking examiners by registerea
mail of their intention to liquidate, enclosing a certified copy of
the minutes of the stockholders' meeting. They shall publish each
week, for 6 consecutive weeks, in a local newspaper giving the date
of the proposed liquidation and calling all creditors and deoositors
to present their claims within 30 days after the date set. Included
also is to be a detailed statement of the assets and liabilities of
the corporation.
(b) the stockholders, with the approval of the board ofbank examiners,
appoint a special agent to have charge of tae liquidation and to be
responsible to the creditors and stockholders as well as to the board
of bank examiners. The special agent to furnish bond approved by the
board of bank examiners and to receive a salary of not over :200.00 per
month while actually engaged in the liquidation of the bank. Special
agent to be under the supervision of the board of bank examiners.
(c) Special agent is to take charge on the date set for liquidation,
in the notice, and to file with the board of bank examiners a sworn
detailed statement of the assets and liabilities of the bank. He is
to proceed to pay in full, as presented, all claims of creditors and
depositors as shown on the books of the bank and all claims which may
be proven.
•
(d) The stockholders of the bank are to furnish a sufficient bond,
approved by the board of bank examiners, to insure the payment of all

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Federal Reserve Bank of St. Louis

•

-2-(Amendments - 1918)
liabilities shown on the books of the bank and all proven claims.
Any suits brought upon such bond must be within 4 months after date
of liquidation.
(e) At the end of 30 days from the date of liquidation, the special
agent is to file with the board of banking examiners a detailed
report of all his proceedings, collections and disbursements, and a
list of all assets remaining and all liabilities still unpaid. Also
a list of all unclaimed deposits or creditors as shown by the books.
The amounts due are to be delivered in cash to the board of banking
exaffiiners and by them to be deposited in a guaranteed bank for paymen .
to the said depositors or creditors upon presentation of their claims.
The remaining assets of the bank may be distributed among the stockholders provided they make sufficient bond "in amount of the capital, surplus and undivided profits of the bank",said bond to expire
4 months from the date of liquidation provided no claim or suit may
have been filed against it.
Examiners
Chapter 165, p. 177. Amends 1917 - HAMC, Sec. 3529; 1914 - Ch. 124, Sec. 2.
Chairman of board of bank examiners is to be selected from among the
members of that board by the board of bank cammissioners.
Chapter 165, p. 177. Amends 1917 - dAMC, Sec. 3545; 1914 - Ch. 124, Sec. 7.
V
Salary. The salary of bank examiners is increased from 3,000 to
3,600 per year.
Chapter 165, p. 178. Amends 1917 - HAMC, Sec. 3552; 1914 - Ch. 124, Sec. 10.
In the original section 3/4 of the compensation was to be paid from
V
the banking department funds and 1(4 from the funds of the board of
bank examiners. The new section omits "3/4 of said compensation to be"
and states that all such expenses are to be paid from the funds of
the banking department.
Chapter 165, Section
p. 181.
The board of ban examiners is given discretion in emergencies to
employ special counsel to assist in the prosecution of persons charged
with criminal act in connection with any state bank. The compensation
for such counsel is to be fixed by said board and paid out of the
banking department fund. The maximum to be 4500.00.
Receiving Deposits when Insolvent
Chapter 166, Section 1, p. 182. Amends 1917-HAMC, Sec. 3612; 1914 - Ch. 1.24,
Sec. 52.
V
The modified phrase "or having reason to believe" is added to
"knowing that such bank or branch bank is insolvent."
Clearing House Association
Chapter 165, Section 1, pp. 180-1. Amends 1917-HAMC, Sec. 3633 and 3664
(numbers given are 3268 and 3269. These are evidently a misprint.)
The additional provision is made that all rates, rules, regulations and
by-laws must before becoming effective receive the approval of the
board of bank examiners. Discretionary power is invested in the
board of bank examiners.

•

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Federal Reserve Bank of St. Louis

•

(Amendments - 1918)

Depositoidas, Public
Chapter 153, Section 1, pp. 157-8.
State. Any bank in state may qualify as state depository by placing
on deposit as security with state treasurer any of the following securities -- tne market value of which is 10% great_u than the account
applied for:
Mississippi registered state bonds;
Yazoo and Mississippi Delta Levee District bonds;
mississippi Levee District bonds;
county bonds and municipal bonds of counties and cities of Mississippi:
municipal bonds of cities with a population of 100,00Q6nd over,
located in the states of Louisiana, Texas, Arkansas, Alabama,
Georgia, Florida and Tennessee;
United States bonds;
and also coupon bonds of the state of Mississippi;
certificates of indebtedness and notes of the state of Mississippi,
which are legal, recognized and binding obligations of the state of
Mississippi under the constitution and laws thereof when offered as
security, or surety bonds of any surety company authorized to do
business in the state of Mississippi.
Money to be drawn from depositories as nearly equitably as Possible,
except where there is a state depository in a county the general school
fund must be drawn from the depository in that county.
Chapter 153, Section 1, pp. 167-8.
6110.:
County. Any bank in a county, or in an adjoining county where there
is no bank in the county qualifying, may qualify as a county depository
by placing on deposit with the county treasurer as security any of
the following securites when worth at least par on the market in an
amount 10% greater than the maximum to be placed on deposit:
Mississippi registered and coupon state bonds;
Yazoo and Mississippi de;.ta levee district bonds:
Mississippi levee district bonds;
county bonds and municipal bonds of counties and municipdities in
Mississippi;
State of Louisiana bonds;
bonds of the city of New Orleans and state of Louisiana levee bonds;
United States bonds.
Mississippi drainage district bonds;
bonds of any consolidated school district,
road district of this state;
certificates of indebtedness and notes of the state of Mississippi
which are legal, recognized binding obligations of said state of
mississippi, under the constitution and laws thereof when aflibred
as security.

•

Or surety bonds of any authorized surety company in the state.

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-4(Amendments - 1918)
If at any time the bonds deposited become worth less than par on
the market, the board has the right to demand other and different
security. Failure to deposit the additional security on demand
forfeits the bank's rights as a depository.
The board has the right to reject bids where they believe the
security insufficient.
Federal heserve Membershio
I ),
Chapter 248, Sections I and 2, p. 306.
Any state bank or trust company is given the power to subscribe to
the capital stock and become a member of a Federal heserve bank.
Any state bank or trust!p mpany, whic-1 becomes a member of a Federal
to comply with the reserve requirements
heserve Bank, is
and the amendments thereto, in lieu of state requirements relating
to maintenance of reserves.

•

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AMENDMENTS TO THE BANKING LAWS OF MISSISSIPPI - 1920

411

(Mrs. Bastedo's Synopsis)
Bank Commissioners, Board of
Chapter 188, pp. 252-3. Amends 1917 - HAmC, Ch. 3, Sec. 3552, 3533, 3534,
3535, 3536; 1914 - Ch. 124, Sec. 4.
The compensation of the bank commissioners was changed from a per
diem of $5.00 and expenses, while in the discharge of his duties,
to an annual salary of $300.00 and expenses.
Relation of Capital to Deposits
Chapter 189, Section 1, p. 255; Amends 1917 - HAMC, Sec. 3601.
—
A recess of two years from the law as enacted is provided for alloy
ing 12 months for a bank to adjust its caoital and deposits to the
10 to I ratio, after an excess.
Examiners
Chapter 188, p. 253. Amends 1917 - HAkIC, Sec. 3549 and 5550 1914 - Ch.
124, Sec. 9.
The salary of the office assistant is increased from $1,800 to $2,400
per year.

•

In addition to the office assistant, the board of ban examiners L7
authorized to appoint a clerk or stenographer to be under the office
assistant and to receive a salary of not over $1,500 annually payable
out of the "banking fund."
The office assistant and clerk or stenographer to execute the same
bond as a bank examiner.
/
Chapter 188, p. 254 and p. 255. Amends 1918, Ch. 165, p. 178, Sec. 1%
The assistants appointed by the board of bank examiners compensation
of Z10.00 per day and expenses with a maximum of $150.00 per month,
while actually employed in tne work of examining the banks, is changed
to an annual salary of Z3,000.00 per year and expenses.
Chapter 138, p. 255. Amends 1918 Ch. 165, Sec 7. Al' \ 4
The salary of bank examiners is increased from $3,600 per year to
$5,000 per year.

Loans and Investments
Chapter 187, Section 1, pp. 251-2.
Any guaranteed state bank may accept drafts or bills ofexchange
drawn upon it, having not more than 6 months sight to run, exclusive
of days of grace, whIcA grow out of transactions involving the shipment of goods provided shipping documents coaveying or securing the
title are attached, or which are secured by warehouse receipts or
other documents conveying or securing the title covering "readily
marketable staples not subject to rapid deterioration."

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Federal Reserve Bank of St. Louis

Such acceptances for any one person, company, firm or corporation are
limited in the aggregate to 10% of the bank's paid-up and unimpaired
capital and surplus unless secured by such attached documents. No
such bank shall accept such bills to an amount &luta, at any time in
the aggregate to more than 1/2 of its paid-up and unimpaired capital
and surplus.

-2(Amendments - 1920)
Branch Banking
Chapter 192, Sec. 1, p. 257. Amends1917 - HAMC - Sec. 3521.
Makes exception of restriction against branch banks in cities of
at least 10,000 population, where the majority of the state bank
examiners believe the convenience and interest of the public will
be served, they may permit the establishment of branch offices
within the corporate,limits o the city in which the bank is
t
4
cte• 91,-0
(
domiciled,
- Chapter 184, Section 1, p. 249.
Any national bank with one or more branches existing and doing business in this state that shall surrender its charter as a national
bank and convert to a state bank has the right to operate the same
branch banleunder the state law as it operated under its charter as
a national bank.
Exchange Charges
Chapter 183, Section 1, p. 248.
"For the purpose of providing for the solvency, protection and safety
of the banking institutions of Mississippi", the custom of the banks
to charge a service fee for collecting and remitting by exchange the
proceeds of checks, drafts, bills, etc., is declared the law of the
state and applies to both state and national banks.

•

The amount of the charge is fixed at 1/10 of 1% of the total amount
of the item with a minimum of 101 on any one transaction. Exception
to this rule is wade, however, in the settlement of obligations due
the state of Assissippi or any subdivision thereof or of the United
States. Also no such charge can be made for the collection of checks
deposited with the banks where the check is drawn on any other bank
in the same municipality. It is snecifically stated that this is not
mandatory but optional
Sec. 2, p. 248. There is no right of action at law or in equity against
a bank for refusal to pay such cash item, when the refusal is based
on the ground of non-payment of such exchange.
Sec. 3. National Banks. If the courts, for any reason, hold that
national banks in the state are not required to charge and collect
such exchange, this act is still to remain in full force and effect
as to all other banks in the state. In the event of any national
bank refusing to comply with this act such refusal being upheld by
the courts it is optional with the state banks in the same municipality
with the national bank as to whether or not such charges shall be made.

Bank Officers and Employees
Chapter 18b, Section 1, p. 250.
Bonds. Every active officer and employee of any state bank or trust
company must furnish a fidelity bond.

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Federal Reserve Bank of St. Louis

Sec. 2. The amount of sudh bond to be fixed by the Board of DirectoTs,
subject to the approval of the state bank examiners.

AMENDMENTS 10 THE BANKING LAWS IF MISSISSIPPI - 1922

(Mrs. Bastedo's Synopsis)
Department of Banking
Section 26, Chapter
2: Amends 1914 - Ca. 124, Sec. t3, p. 189.
The only change is that the superintendent takes the place of the
board of bank examiners.
Section 25, p. 139. Arends 1914 - Ch. 124, Sec. 44.
/
The superktendent takes the place of the,bank examinelmin authorityA
and the reference to the office assistant having the -)olur and duties
of the bank examiner, etc., is omitted.
Examinations •
Section 11, Chapter 172, p. 186: Amends 1920 - Ch. 188 (1914 - Sec. 10,
Ch. 124.)
It is provided for each ban,: to be examined at least twice a year at
irregular intervals without prior notice but except at the order of
the superittendent no bank is to be examined by the same examiner
twice in succession.
Section 16, p. 185; Amends 1916
Ca. 207. (1914, Sec. 15.)
Th or7ision,i
,s added., that only such overdrafts shall
sha
be considered
/ as
e advanotd againsp-prodUcts,of actualx4sting values
ed \
se
,
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wafehouse replp-ts, etcy -1-7',
ev,i enced .
Li,Al .
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62-

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'

Section 17: p. 136; Amends' 1914 - Ch. 124, Sec. 16.
Special examinations. Duty transferred from chairman of board of
bank examiners tr) superintendent of banks.

III

Section 18, p. 136; Amends 1914 - Ca. 124, Sec. 17.
hesponsibility placed on superintendent, or on examiner.
Violations and Penalties
Chapter 172, Section 50, p. 205. Amends 1914, Ch. 124, Sec. 67.
"Any officer, or employee of the banking department" is substituted
for "candidate for bank examiner".
Reports of Condition.
Section 19, pp. 186-877 Amends 1914 - Ch. 124, Sec. 13.
Superintendent substituted for bank examiners.
Section 20, p. 187; Amends 1914 - Ch. 124, Sec. 19.
Superintendent to collect fee instead of examiners.
Capital Stock Impairment
Chapter 172, Section 21, pp. 187-8; Amends 1914 - Ch. 124, Sec. 20.
When the superintendent believes the capital stock of any bank impaired
he is to require the stockholders to restore the capital or to execute
a bond for the benefit of the creditors in a sum to be specified by
the superintendent that all "just debts and liabilities" will be paid
in full within a time, not to exceed 12 months, set by the Superintendent.

•

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Federal Reserve Bank of St. Louis

-2(Amendments - 1922)
If the capital is not restored or bond furnished within the time
set, the superintendent is to take possession of the institution
until either business is resumed or its affairs liquidated.
Stock sold or restored: If capital is not restored within Y; days
after the superintendent takes possession, he may sell it or as
much thereof as may be necessary to make good the deficiency, selling
as much, pro rata, of the stock as may be necessary to restore the
capital, calling in and canceling stock to the amount of the stock
sold. Any stockholder wilfully withholding his share "sold for
delivery to the purchaser" commits a misdemeanor and is subject to
a penalty of 4250.00 for each share he owns and fails to transmit to
the superintendent on demand. If the stockholder owns a greater
number of shares than the "pro rata of his stock sold" then the superintendent shall re -issue to him certificates of such shares of his
stock that have not been sold.
The superintendent has the legal right to take possession of all the
stock of the stockholders for the yurpose herein before provided and
has legal authority to institute proceedings in his own name as
superintendent for the recovery and possession of stock held.
Any pledgee of such stock has the right to the proceeds when convertec.
Any impairment of cash reserve shall be made good within 30 days.

•

Banks - Organization
Chapter 172, Section 27, p. 190. Amends 1910 Ch. 165 (1914 Ch. 124,
Sec. 28)
The only change is that the articles of incorporation are to be filed
with the superintendent of banks instead of with timboard of bank
examiners.

Liquidation - When
Chapter 172, Sec. 22 skeriallt, pp. 138-9. Amends 1914 - Ch. 124, Sec. 2140P.
The superintendent takes the place of the board of bank examiners
ins:t1,144//the banlv7examiner TepoFting to the board for consideration,
e su6erintenadAt46 considsrt,taila
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-pieection 22 of 1914 the only change is the substituting the super- /
intendent for the board of bank examiners.
Articles of Incorporation
Chapter 172, Section 28, p. 190. Amends 1914 - Ch. 124, Sec. O.
Provides that one covey of the articles of incorporation shall be
filed in the office of the banking department instead of in the
office of the board of bank examiners.

Preliminary Report
Chapter 172, Sec. 29, pp. 190-91. Amends 1914, Ch. 124, Sec. 51.
Superintendent of banks is inserted in place of board of bank examiners.

•

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wi4.

-3 -

•

(Amendments - 1922)
Charters
Chapter 172, Section 30, p. 191. Amends 1914 - Ch. 124, Sec. 32.
Is amended to read "a certificate from the superintendent or a
bank examiner," instead of just "bank examiner."
Membership in Fund
Chapter 172, Section 31, pp. 191-92. Amends 1914 - Ch. 124, Sec. 33.
The superintendent of banks is substituted for board of bank examiners.
Sec. 40, pp. 197-98. Amends 1914 - Ch. 124, Sec. 45a.
Superintendent is substituted for board of bank examiners.
SUS?ENDED by 1930 - Ch. 22, Sec. 1, p. 23-24.
After guaranty fund becomes operative - Sec. 41, p. 198. Amends 1914 Ch. 124, Sec. 46.
The superintendent of banks is substituted for board of bank examiner::.
SUSPENDED by 1930 - Gn. 22, Sec. 1, p. 23-24.
The Fund
Chapter 172, Section 38. Amends 1914 - Ch. 124, Sec. 41.
Initial Deposit. he superintendent of banks is substituted for
board of bank exam.ners.

•

The state treasurer is autiorized to insure if possible all 1Dnds
delivered to nim under this section against loss by robbery, theft,
embezzlement or other unlawful appropriation, and the premium to be
paid out of the maintenance fund.

Assessments
Chapter 172, Section 32, p. 192-93. Amends 1916 - Ch. 207 (1914- Ch.
Sections 34 .and 35), 4; ,
Superintendent is substituted for board of bank examiners.
Section 35, p. 195. A ends 1914 - Ch. 124, Sec.37.
The onLy change is the superintendent is substituted for both board
of bank examiners and examiners.
Liquidation
Chapter 172, Section 34, pp. 194-95. Amends 1914 - Ch. 124 - Sec. 36.
Sale of assets to another bank. Superintendent has power after he
has taken charge of an insolvent bank, with the consent of the majority
of the directors to sell the assets of the bank to any existing solvent bank at such price as he may consider fair value. ihe puramming
bank to assume the full amount due all creditors of the liquidating
bank and paying the remainder of the purchase price if any, to such
liquidating bank.

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In all cases the superintendent must require the purchasing bank to
execute to him a bond with one or more approved sureties for the benefit of the creditors of the bank in case te purchaser bank fails to

-4(Amendments - 1922)
pay any creditor the full amount of his claim. The creditor has
the right to bring suit in the name of the superintendent against
such purchasing bank and the surety on its bond and all interested
parties way join therein.
The original sections follow with the exception of the substitution
of the suoerintendent for the board of banK examiners.
Sec. 47, pp. 200-204. Amends 1914 Ch. 124, .ec. 60.
The su)erintendent of banks and department of banking are substituted in place of board of bank examiners.
The limitation as to the amount to be paid to "assistant or other
employee" and also to counsel, is omitted.
Jae Fund
Chapter 172, Section 36, pp. 195-96. Amends 1916 Ch. 207 (1914
- Ch. 124,
Sec. '58.)
The only change is the superintendent is substituted
for board of
bank examiners.
Enterest
Chapter 172, Section 37, p. 196. Amends 1916 Ch. 207
(1914
Ch. 124,
Sec. 59.)
In the first sentence the 1.eference to private bank is omitted
, and
superintendent of banks is substituted for board of bank
examiners.
Liquidation - Voluntary
Chapter 172, Section 51, pp. 205-06. Amends 1918, Ch. 247.
"Banking department" is substituted for "board of bank examine
rs."
In "e" the bonds are to be made payable just to the state
of Mississippi
instead of the Boerd of Bank examiners.
Stockholders Liability
Chapter 172, Section 46, p. 200-01. Amends 1916 - Co. 207
(1914 - Ch. 124,
Sec. 59.)
Banking department is substituted for board of bank examine
rs.
Board of Directors
Chapter 172, Section 43, p. 199. Amends 1914 - Ch. 124.,
Sec. 50.
Banking department is substituted for board of bank examine
rs.
Incaminers
Chapter 172, Section 5, p. 180.
Not to exceed seven examiners to be appointed by the superin
tendent of
banks. Said examiners to work under the direction of the
superintendent.
To be at least 25 years of age, of good moral dharacter, practic
al
accountants with a thorough understanding of the theory and
practices
of banking. They may not during their term of office be connected
directly or indirectly with any banking institution.

•

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Federal Reserve Bank of St. Louis

•

-5(Amendments - 1922)
The superintendent is himself to examine banks when not otherwise
employed in his duties.
192416)
But prior to the first Monday in January
when the first superintendent of banks takes office the board of bank examiners is author
ized to employ at their discretion not to exceed two additional
assistant bank examiners to serve from month to month and be removabl(
at the option of the board. Such assistants to receive the same
salary now provided for assistant bank examiners. The board is also
authorized prior to January 1924 to employ additional clerical help
as may be deemed necessary.
Sec. 6, p. 180. Amends 1914, Ch. 124, Sec. 3.
Oath and Bond: The first paragraph of section 3 regarding
is omitted (new qualifications being prescribed in section
qualifctons
F).
The same requirement fojo....41 and bond of the examiners is the s;.
except that the approvs to be by the superintendent of banks
instead of by the Governor.

•

Section 7. p. 181. ,Amends 1914 - Oh. 124, Sec. 6.
Presented before a board consisting of the Governor,
Charges against
Attorney General, and the Chief Justice of the Supreme Court. If the
board finds that any provision of the law has been violated or that
the person in question is unfit in any way to hold office or that his
holding of the office would "imperil the rights hereunder protected,"
they may at their discretion remove such person. In connection with
such investigation any member of the board has power to aaminister
oaths and compel the attendance of witnesses, etc.

141,/

)

Section 8, p. 181. Amends1920 - Ch. 188.
The salary of an examiner not to exceed 300. per month "to be fixed
by the superintendent" and traveling expenses payable monthly out of
the banking department funds, each voucher to be accompanied by an
itemized statement.
In regard to office furniture, fixtures andi maFiAsal etc., it is
changed giving the superintendent of bhii*k the atVority to request
books, Papers and documents delivered to 4e
nking department.

. • 1.-

Section 9, p. 183. Arne-7,Air
— ?Ch. Lft.;-,---44.-4.wa... / /j
•
It is changed to reqtareirallapers to be certified by
tendent or an examiner,instead.of by an examiner.
Al

•

"the

superin-

Except with the consent of the superintendent no original papers may
be removed at any time from the department.
, •! ,
Section 10 amends 1_920 Ch. 188.
-/
The superintendent instead of the board of bank examiners is to appoint
an office assistant and in addition to the office assistant he is
authorized to apnoint two clerks and additional clerks may be appointed
with the consent of the executive committee of the Mississippi
Bankers Association.

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Federal Reserve Bank of St. Louis

-6-

•

(Amendments - 1922)
The assistants shall receive a salary of not more than U,400 and
each clerk of not more than C1,500 annually, out of the banking
department's maintenance funds.
Instead of the board of bank examiners the superintendent is made
responsible for the acts of examiners, of assistants and of clerks.
Said office assistants and clerks to execute bond of not less than
0_0,000.
No examiner or other employee related in any way within a third
degree to the superintendent shall be employed by him.
Section 11, p. 183; amends 1920 - Ch. 188 (1914 - C. 124, Section 10.)
The apportioning of the work among tne examiners is now in the
hands of the superintendent and in connection with the tlatase that
no examiner shall examine one bank twice in succession the superin
tendent may at his discretion permit this.
Section 12, p. 186: amends 1914 Sec. 11.
Superintendent is added to examiner in power in connection with
making investigations.
The additional provision is made that the suPerintendent or exaihci
may call for statements from all corresponding banksor persons or
corporations showing a balance on the books of the bank of more than
1,500. at each examination.

•

Reports to tne Legislature
Chapter 172, Section 45, p. 200. Amends 1914 - Ch. 124, Sec. 58.
In the beginning superintendent of banks is substituted for board of
bank examiners, end at the lgist, the superintendent is added to
"each bank examiner."
i,oans and Investments
Chapter 172, Section 42, p. 199. Amends 1914 - Ch. 124, Section 4.
Instead of "with the consent of the board of banK examiners" it now
reads "with the consent of the superintendent of banks."
Section 44., pp. 199-200. Amends 1916, Ch. 207 (1914 - Ch. 124, Sec. 56)
Loans to officers rnd employees. No officer or employee of the
banking department" is substituted for "bank examiner."
Section 49, pp. 204-05. Amends 1914 - Ch. 124, Sec. 64.
The new section adds "Edge Law banks" to the exception along with
regional reserve banks.
Branch Banking
Chapter 176, Section 1., p. 212.
/
(-/,/
•
Provided that branch banks may bei raxeyed from one municipality to
another with the consent of t1e4pank bxaminer.

•

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Federal Reserve Bank of St. Louis

_7 _
(Amendments - 1922)
•
Superintendent of Banks
Chapter 172, pp. 178-208, Sec. 1. Amending 1914 Ch. 124, Sec. 1.
40'
Creating the office of and vesting full suoervisory power in the
superintendent of banking.
Section 2, pp. 178-79.
How Chosen. On the first Monday in December 1923 and :nce every
four years thereafter, the directors of every state guaranteed bank I
are to elect one of their officers or directors a delegate to a con-1"
4 0,,
vention to be the succeeding Monday to elect a superintendent of
banks and to fix nis salary. No branch bank to have a delegate or
vote. The Secretary of State to preside until a chairman and
secretary are elected.
In case of a vacancy a convention to be called to elect a successor.
Section 3, p. 179.
.1.1a1ifications. Man of good chiLreepr.t jjeoll,yeawxperience as an
executive in a reputable solveht'bank,in Misnssippi but shall not
be interested directly or indirectly in any bank while in office.
Must file "constitutional oath," and execute a $50,000 bond in an
authorized surety company in the state.
Section 4.
Removal. Removal for neglect of duty, 0Malfeapance, misfeasance,
extortion, extortion or corruption in office, incompetency or intemperance in the use of intoxicating liquors or narcotics to such
an extent, in view of the dignity of the office and the importance
of his duties, as to unfit him therefor, or for any offense involving moral turpitude while in office." Also, should three banks fail
in any one year due to his failure to discharge the duties of his
office. Should the office be vacant the oldest examiner is to serve
as superintendent until a superintendent is appointed.
4
Section 5, r. loO.
•
The su.)erintendent to appoint the examiners.
see "Examiners."

For further details

Section 7, p. 181. Amends 1914 - Ch. 124, Sec. 6.
A board consisting of the governor, attorney general, and chief
justice of the supreme court, will hear the charges against the supti
intendent or examiners. See "Examiners."
Chapter 172, Section 13, pp. 186-4. Amends 1914 - Ch. 124, Sec. 12.
It now reads: The superintendent or examiner shall have the authority
"instead of just examiner" and the additional provision is made for
his authority to "invoke the process of the chancery court to compel
sucn testimony",, etc.
Section 14, p.184.

Amends 1914, Ca. 124, Sec. 13.

The supervisory power is put in the hands of the Superintendent, or
examiner.

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-8(Amendments - 1922)
Section 15, p. 185. Amends 1914, Ch. 124, Sec. 14.
Adris superintendent to those required to keep a record of transactions and to keep information confidential.
Public Funds
1, •
Chapter 177, pp. 212-13.
All public funds deposited in a bank are declhrea trust funds and
not "liable to be taken by the general creditors of the officer or
by the creditors of the depository." It is made a first claim on
the funds of a bank that is in the hands of the examiners.
4.

•

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Federal Reserve Bank of St. Louis

/61 1 6'1 '

•

AmEND-MENTS TO THE BANKING LAWS OF MISSISSIPPI - 1924
(m.s. Bastedo's Synopsis)

Charters
Chatter 17E, ap. 226-7. Amends 1922, Ch. 172, Sec. 29 (1914 Ch. 124,
Sec. 31.)
In addition to requiring the capital stock to be paid up and that the
bank has complied with all the requirements of the law, it is now also
required that superintendent, governor and attorney general, or a
majority of the 3 aforesaid officers, shall find that the public
interest requires the organization of such bank.
Liquidation
Cheater 176, pp. 227-8. Amends 1922 Ch. 172, Sec. 34 (1914, Ch. 124,
Sec. 36)
(
6.149.4t
Lale of Assets to Another Bania fAt77.;a1.
Instead of realizing on the assets of the bank and exhausting the
double liability of the stockholders before "certifying all balances
due on guaranteed deposits"

\
it is now provided "whenever it shall appear to the officer in charge
of the bank that before realizing upon the assets of such bank and
F' s
exhausting the double liability of its stockholders there wUl be Er A
insufficient amount realized to pay guaranteed depposr'iL If alscia,4b
the Funeinreiider
of Liquidation...3,
provia&C-thatidepositors be paid from
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7
Attorneys
_
P
Chapter 173, p. 225 For the Banking Department.
-----,
Sec. 1. The superintendent of banks is authorized to employ an
attorney for the banking department who must be at least 30 years of
age and has been a practicing attorney and a citizen of the state for
5 years immediately preceding his employment.
Sec. 2. Such attorney to advise the superintendent upon loss relating
to tne banking department, represent the superintendent and the banking department in the courts, and do all legal work in connection
with the liquidation of banks and such other duties as may be required
of him in the administration of the department.
Sec. 3. Salary subject to the approval of the executive committee of
the Bankers Association but not to exceed 11;7,500 a year to be paid
either out of the funds of banks in liquidation ore out of the Guaranty
or Maintenance Fund, provided for in Ch. 124, of the 1914 Laws.
Branch Banking
/
:66
Chapter 174, p. 226. Amends 1922, Ch. 176. --/7
The "superintendent of banks" is substituted for the "board of bank
examiners."
4 A

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AMhNDMENTS TO THE BANKING LAWS OF MISSISSIPPI - 1926
(Mrs. Bastedo's Synopsis)

Department of Banking
Chapter 251, p. 365. Amends 1922, Ch. 172, Sec. 24. (1914 - Ch. 124,
Sec. 23)
\:
The minimum assessment is raised from $50.00 to $60.00 and is a flat
rate, instead of a percentage. Banks, whose total assets exceed
$100,000 are to pay, in addition to the minimum assessment, 25 for
00*
every $1,000 or fraction thereof, in addition to the $100,000.
1 )
f State Bank - Definition
Chapter 247, p. 361.
Banking corporations, operating under state law, may, without amend
ing their charters, exercise authority to perform "allusual, proper
and legitimate functions of trust ccmpanics; provides that any bank,
whose charter merely authorizes general banking functions, must first
receive the consent of the superintendent of banks.

r 1,0A

Articles of Incorporation
Chapter 250, p. 363. Amends 1922, Ch. 172, Sec. 28 (1914
Ch. 124, Sec. 30)
The specific provision is made that the Articles of Incorporation
need not be published.

•

Liquidation
Chapter 252, pp. 3G4365. Amends 1924, Ch. 176 (1922, Ch. 172, Sec. 34,
1914, Ch. 124, Sec. 36)
4
/ it
Sale. of Assets to another Bank 1-1
4e.t.ei, t 441,41
It provides that Lostead of the certificate of depositors bearing
6% interest to bear 4% interest, where no contract rate exists.

,/,

Instead of the isitilillisiacLo. the Guoranty Fund f
ha.
( -;.ikiie&t;&-Ghe--t4te-igernk drawing 3% interest, they are to draw 4% interest.
Relation of Capital to Deoosits
V.Chapter 249, p. 362. Amends 1920, Ch. 189 (1914, Ch. 124, Sec. 43)
- .7
.7'
It is unlawfu
or any guaranteed bank to receive and holddepositsf-'
,4-°'
mo ths in excess of 10 times its paid-up capital and
for more than
surplus. However
ch bank may with the permission of the superintendent of baaks had deposits up to 15 times its capital and surpiis.
A duplicate copy of such written permission to be kept in the office
of the superintendent ofb
ia44. The permission may be withdrawn upon
6 month's notice. Such .quidations-do not apply to savings banks.
Violation of this section is a misdemeanor, subject to a fine of from
$500 to 41,000.
arust Companies
Chapter 247, p. 561
Banking corporations, operating under state law, may, without amending
their charters, exercise authority to perform "all usual, proper and
legitimate functions of trust companies; provides that any bank7 whose
charter merely authorizes the general banking functions, must first
receive the consent of the superintendent of banks.

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Aw-IMiliiENTL: ID THE BANKING LiiS OF iiISSIJPFI - 1928

Eastedo's Synopsis)
-xaminers
Chapter 95, pp. 138-9. Amends 1918 - Ch. 165, Sec. 7071,,
This matter is put into the hands of the superintendent of banks.
For further details see "superintendent of Banks."
Superintendent of Banks
iii
Chapter 95, pp. 138-9. Amends 1918, Ch. 165, Sec. 7i.14,Sec. 1. The superintendent is given power, in his discretion, to
employ special examiners, investigators, and agents as needed to
audit and investigate the records of any state bank when he has
reason to believe that there is a loss caused by someone's criminal
actions. He also has power to employ "competent counsel" to assist
in the prosecution of anyone charged with a criminal act which has
caused loss to a state bank.
Sec. 2. The salary and expense of such special examiners, etc.
the fee of the special attorney may be paid out of the fun.' f
State Banking Department.
Bills Payable and hediscounts
Chapter 94, p. 139
Sec. 1. State banks may not borrow or owe at any tiEe a total amount
in excess of 3 times its capital and surplus. But it is provided
that the limit may be exceeded by a bank wit , the consent in writing
of the superintendent of banks.
Sec. 2. Violation of this provision by a bank autImrizes the State
Banking Department to tem it as a bank "being operated in violation
of the law."

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Sec. 6. This act is in no wise to impair the obligations of banks
procuring loans in excess of this limitand any bank having borrowed
money in excess of this limit, prior to the passage of this act,
is not to be considered acting in violation of the law with regard
to such loans.

AMENDMENTS TO THE BANKING LAWS OF MISSISSIPPI - 1930
(Mrs. Bastedots Synopsis)
lee Fund
Chapter 22, Sec. 2, p. 24. Amends 1922 Ch. 172, Sec. 32 (1914 Ch.
122,
Sec. p4)
Initial Deposit
-"Before receiving such certificate" is omitted.
For every 4i100,000 or fraction thereof "its average unsecured deposi
ts"
is substituted for "deposits eligible for guaranty."
"Not less than 0C10" is amended to read "not less than 000, a.r value
,
of such securities."
Beginning with the provisions for the assessments of
1/20 of 1%, the
rest of the section is omitted containing all refere
nces to the
initial payment of 1 20 of 1%,
-1his revision applies until all outstanding guaran
ty certifi
cates as described in this act are liquidated and paid,
at
which time the laws shall be in full force and effect
as before
tney were last amended.
Assessments
Chapter 22, Sec. 6, pp. 24-25. Amends 1922 Ch. 172,
Sec. 33 (1914 Ch. 124,
Sec. 35).
It is now written "average unsecured deposits" instea
d of "guaranteed
deposits" and instead of the provision "until the fund
accumulated
reaches approximately 4500,000" it is now provided
that four additional assessments of 1i20 of 1% (in addition to the
January assessments) but not more than five such assessments can be
made in any
one year. These assessments to be made until a suffic
ient amount is
realized together with the property and assessments in
the ands of the
state banking department to pay the outstanding guaranty
certificates
previously issued to depositors of failed guaranteed
banks. The
liability of the banks is liAted ti the unpaid assessments
previously
made. The "initial deposits" in thehands of the state
treasurer is,
as before, a security for these assessments.

•

The state treasurer, as before, is to credit the guaran
ty fund
quarterly with its share of interest at the minimum rate
provided by
law.

•

Certificates are to be paid from the fund in the order
in which the
banks to whose depositors the certificates, were issued
were closed.
But funds from the assets now in the department are
first to be applied
to any remaining certificates issued to depositors
from the bank from
which the assets were received.
Inis revision applies until all outstanding guaran
ty certificates as described in this act are liquidated and
paid, at which time
the laws will be in full force and effect as before
they were last
amended.

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- 2 (Amendments - 1950)
Liquidation
Ch. 22, Section 4, pp. 25-26. Amends 1926 Ch. 252, Sec. 1 (IE4 - Ch. 17C
1922, Ch. 172, sec. 34; 1914, Ch. 124, Sec. 36.)
1/7
Sale of Assets to another bank
The provision for sale of the assets of a closed bank to a solvent
bank is the same; tne rest of the section dealing with liquidation
and issuing of certificates is omitted.
e,
NOTE: Ihis revision applies until all outstanding guaranty certificates as described in this act are liquidated and paid, at wUch time
the laws shall be in full force and effect as before they were last
amended.
The Fund - What it Covers
Ch. 22, Sec. 5, p. 26. Amends 1922, Ch. 172, Sec. 36. (191C, Ch. 207;
1914, C. 44, Sec. 68).
nt
giertifi9ates legally issued "heretofore" to deposi
rine
letaaly been drawn before t:is act goes into
torsfriVat-WEI
effect, and certificates legally issued for cashiers' checks and sight
exchange drawn by failed banks previously to their failure, and such
certificates due to have been so issued before this act takes effect.
Eac', bank is to certify to the superintendent of banks at the date of
each call the statement of the amount of money which is on deposit
that is not in any wise secured and in assessing any bank this amount'
shall be deducted from the total deposits.

•

his revision applies until all outstanding guaranty certiNOTEficates as described in this act are liquidated and paid, at which
time the laws shall be in full force and effect as before they were
last amended.

Interest
Ch. 22, Sec. 6, pp. 26-27. Amends 1922, ch. 172, Sec. 37 (1916 Ch. 207;
1914 Ch. 124, Sec. 39)
Instead of "each guaranteed bank and each state bank guaranteed by
this act" it now reads "each state bank".
The provision for excepting contracts for nigher rates of interest
entered into before the act went into effect is omitted.
41
NOTE: t1 This revision applies until all outstandng guaranty certificates as described in this act are 1i4uidated and paid, at which
time the laws shall be in full force and effect as before they were
last amended.
Depositors' Protection Fund
Ch. 22, Sec. 6A, p. 27.
For the purpose of protecting depositors in banks that may fail during
the li4uidation of the present guaranty deficit as provided under tnis
—1.
act.
erJ

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Federal Reserve Bank of St. Louis

-3 (Amendments - 1950)

•

Each bank shall be assessed by the superintendent on December
51
each year beginning with 1930 6% on that part of its surplus
exempt
from taxation by tnis act. The rate of assessent not to
be less
than 3% unless the depositors protection fund shall exceed 7500,0
00
in which event the rate may be lowered so that it will produce
a fund
of $500,000 and no more for any calenar year.

bection 6B, pp. 27-28.
ihis fund to be applied to the payment of depositors for their
respective losses through failed banks. If the fund is insuff
icient
to take care of such losses then the application shall be determined
on a pro rata basis in the proportion of the depositors indivi
dual
losses (after liquidation of a failed bank carrying the deposi
t) to
the total losses of all depositors. A deficit in the fund
shall not
be carried into any succeeding year. If a surplus
is shown the surplus shall be carried to the succeeding year.
The superintendent of banks immediately upon taking charge
of an insolvent bank is to issue non-interest beering
certificates.
Note: This revision applies until all outstanding
guaranty certificates as described in this act are liquidated and
paid, at which time
the laws shall be in full force and effect p.s
before they were last
amended.

•

Surplus
Chapter 22, Section 9, pp. 23-29.
For the protection of its depositors the directors
of each state bank
shall before declaring a dividend carry 12 of its net
profits of the
preceding year to its surplus account until its surplus
reaches at
least 100% of its capital. The capital stock of such
bank shall not
be reduced pending the operation of this act.
Section 10, p. 29./.
/
How invested. ,In bonds of the United States, State of
:dississinpi,
county, districts, and municipalities in the state of
Ussissivoi.
An accurate record of the securities in which the surplu is
s
invested
to be kept by eacn bank.
It is the superintendent's duty to see that the
provisions for this
surplus are carried out and any violation makes the bank
subject to
liquidation.
;,41AA'A
Section 11, p. 29.
441, d •
Otee
f
Exemntion. Provided they are complying with this law
the surplus of
state banks up to an amount equal to 100% of their
capital is exempt
from all taxation until the outstanding guaranty
certificates are
liquidated as herein provided.
It is provided that national banks complying with the
provisions of
this act shall be exempt in the same way as state
Yanks.

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-4(Amendments - 1960)
Nullification of Act, Provisions for
Chapter 22, Section 12, pp. 29-30.
It is provided that if for any reason any one of the following provisions should be declared null ?,t void then all of the provisions of
this act, reference to whicu are given below, are to become null 9;
void and the bank guaranty act as it stood oreviously shall become
in full force and effect:
The suspension of Membership in fund - 1914 - Ch. 124, Sec. 33, 45a
4 46; and 1922 - Ch. 172, Sec. 51, 40, 41.

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The amendments to:
The fund - Initial deposit - 1960 Ch. 22, sec. 2, o. 24; 19.172, Sec. 62: 1914 - Ch. 124, Sec. 154.
The Fund - Assessments - 1930 Cl. 22, Sec. 3; 1922 - Ch. 172, Sec. 63
1914 - Ch. 124, Sec. 35.
Liquidation - 1960 - Ch. 22, Sec. 4, pp. 25-261 1926 - Ch. 252, Sec.
1; 1924 - Oh. 176; 1922 - C. 172, Sec. 64; 1914 - Cn. 124, Sec. 36.
The Fund, What it Covers - 1950 - Ch. 22, Sec. 5; 1922-Ch. 172, Sec.
36; 1916 - Ch. 207: 1914 - Ch. 124, Sec. 58.
Interest hates - 1930 - Oh. 22, Sec. 6 - pp. 26-27; 1922 - Ch. 172,.
Sec.37; 1916 - Ch. 207; 1914 - Ch. 124, Sec. 69.
Depositors protection fund - 1960, Ch. 22, Sec. 6A, 6B.
Surplus - 1930 - Ch. 22, Sec. 9, 10, 11, pp. 28-29.
i'//

)-44

I
•

•

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Federal Reserve Bank of St. Louis

•

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Federal Reserve Bank of St. Louis

in thi:.
time such exempti
property for taxati,
ion,: as the Lank pays
provided, each bank sh_
the valuation of the shares
in the manner provided by Section 1 of Chapter 1
Laws of 1920, being section 8203 of Heminzway's Code 01
for the purpose of fixing the valuation on which state,
county and municipal taxes shall be paid; provided that
where banks existinE; under the national laws comply with
the provisions of this Act, the basis for the taxation
of the shareholders thereof shall be the same as for state
banks.

•

FrIOM NISSISSIFFI LAWS -1930
Chapter 269

•

eV; 1"-') •

-,t,7trtiv1,.

house Bill ho. 949

total sum not to
Bankinz Department outstanding and accumulated interest tneron, and for
prompt payment of said bonds at maturity, principal and interest, there IL.

•

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0'
Federal Reserve Bank of St. Louis

•

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Federal Reserve Bank of St. Louis

•

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Federal Reserve Bank of St. Louis

it"At;

74,4
CHAPTER 12
STATE OF MISSISSIPPI

CHAPTER 12
SENATE

BILL No. 29

AN ACT for the protection of owners of guaranty cer ifieates by providing for the issuance and sale of bonds of the State of Mississippi to
pay for outstanding guaranty certificates and repealing Chapter 269 of
the Laws of 1930, and a? laws in conflict herewith.
SECTION 1. Be it (fleeted by the Legislature of the State of
Mississippi, That the Superintendent of Banks of the State of
Mississippi, together with the Bond Commission created by
Chapter 116, Laws of Mississippi, 1926, shall have the power,
and is hereby authorized to have prepared and to issue the
bonds of the State of Mississippi in a total sum not to exceed
the amount of the guaranty certificates of the State Banking
Department outstanding on the date of the issuance of said
bonds and the accumulated interest thereon; and that the
maximum amount of bonds to be issued under the provisions
of this Act shall not be in excess of Five Million Dollars
($5,000,000.00). For the prompt payment of said bonds at
maturity, principal and interest, there is hereby irrevocably
pledged and dedicated, all the money which may be realized
from the collection of assets of banks that failed prior to
March 11, 1930 now being liquidated by the State Banking
Department, together with all assessments and collections by
the Superintendent of Banks, under and by virtue of the
statutes of the State of Mississippi providing for assessments
on the unsecured deposits of the State banks to secure funds
with which to pay guaranty certificates outstanding; and the
full faith and credit of the State of Mississippi are hereby
irrevocably pledged to the payment of the principal and interest of said bonds.

OF INTEREST—DENOMINATION—PROCEEDS.
Said bonds shall be issued in the name of the State
of Mississippi. and said bonds shall not sell below par, and
shall bear interest at a rate to be determined by the Superintendent of Banks and the State Bond Commission, provided
the interest on said bonds shall not exceed five and one-half
(51
/
2%) per cent; and said interest being payable semi-annually. The Superintendent of Banks and the Bond Commission shall also have the authority to fix the denominations in
which said bonds shall be issued, and the maturity or maturities of said bonds, provided, however, that said bonds shall
mature serially or otherwise within a period of not more than
twenty years from their date. Said bonds shall be sold in the
manner prescribed by the Superintendent of Banks and the
BONDS—RATE

SEC. 2.

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Federal Reserve Bank of St. Louis

CHAPTER 12

21i

GENERAL LAWS OF THE

Bond Commission. and the proceeds aris
ing from the sale
thereof shall be deposited in the Treasury
Mississippi in a special fund to be denomina of the State of
ted "Bank Guaranty Certificate Fund", and the money§ in said
fund shall be
paid to the parties entitled thereto only on
cert
ificate of the
Superintendent of Banks in the manner
After said bonds have been issued and hereinafter provided.
sold
of said sale deposited, as above provided, and the proceeds
those owning guaranty certificates shall have the right to
surr
cates to the said Superintendent of Banks ender said certifiand to receive from
the said Superintendent of Banks an orde
r upon the State
Treasury drawn on said "Bank Guaran
ty Certificate Fund".
but not for a greater amount than
the actu
tificate or certificates to the holder ther al cost of said cereof, and after sufficient proof of such cost, but plus any
accumulated and unpaid
interest on such cost at four (4(,;.) per
the time such holder of such certific cent per annum during
the actual owner thereof. Bonds issu ate or certificates was
ed by this statute shall
be eligible to secure public deposits
of the State of Mississippi
and all county, municipal and other
subdivisions thereof.
ASSETS OF BANKS IN LIQUIDATION.
SEC. 3. Realization from the assets of
all banks in liquidation shall be paid into a special fund esta
blished for the payment of the principal and interest
this statute, and shall be used sole of the bonds authorized by
ly for the purpose of paying
the interest on said bonds and
the principal thereof as the
same mature. If funds are availabl
e, the Superintendent of
Banks may, and whenever Twenty-f
ive Thousand Dollars
($25,000.00) or more is available,
shal
l purchase the bonds
authorized by this act in the market,
than par. The Superintendent of but not at a greater price
Banks and the Bond Commission may, in their discretion, rese
rve an option on the part
of the State of Mississippi to red
eem
said bonds on any
terest payment date, on or afte
r such period, as the Supe inrintendent of Banks and the Bon
at par, or at such premium or d Commission may determine,
of Banks and the Bond Com premiums as the Superintendent
mission may deem expedient.
OUTSTANDING GUARANTY CERT
IFICATES MUST BE
REGISTERED.
SEC. 4. It shall be the duty of all own
any and all outstanding guaranty certificers and or holders of
registered in the office of the Superint ates to have the same
endent of Banks of the
State of Mississippi in a book prov
ided for the purpose by

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Federal Reserve Bank of St. Louis

CHAPTER 12
STATE OF MISSISSIPPI

the State Banking Department, and where such a party offering to register any such outstanding certificates, who is other
than the original payee named in said certificates, he shall
be required to take oath, upon a form to be prescribed and
furnished by the State Bankfng Department, stating the
amount he paid for such certificate offered for registration
and giving the name of the person, firm or corporation from
whom secured, or is secured from the State Banking Department. together with a signed agreement, likewise on a form
prescribed and furnished by the State Banking Department.
that in the event all conditions herein prescribed are met, he
agrees to accept in full, for his equity in any and all such
certificates issued to other than himself, as original payee, the
amount he paid for such certificate offered, plus four (4();-)
per cent per annum during the time he owned such certificate,
provided that the original payee named in each such certificate and each succeeding purchaser, if any, of each such certificate shall likewise receive an amount equal to the difference between the amount paid by him and the amount received by him for such certificate, plus interest at the rate of
four (4T,) per cent thereon during the time he was the owner
and holder of such certificate: provided that nothing in this
act shall be construed to authorize the payment of more than
par value and accrued interest at the rate of four (V.;) per
cent per annum for any such outstanding certificate. Any
person who shall make a false affidavit, or any false statement
in the affidavit required to be made by the provisions of this
section, shall be guilty of the crime of perjury. Nothing in
this act shall require the re-registration of guaranty certificates heretofore registered with the Superintendent of Banks
under the provisions of Chapter 269. of the Laws of Mississippi, 1930. Part of act unconstitutional not to affect whole
act.
SEC. 5. If any clause, sentence or section hereof shall be
held to be unconstitutional. that shall not affect any othe)
clause, sentence, or section of this act.
-SEC. 6. Chapter 269 of the Laws of Mississippi. 1930 is
hereby repealed.
SEC. 7. This act shall take effect and be in force from and
after its passage.
Approved October 20th, 1931.

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Federal Reserve Bank of St. Louis

ANENT.

•

-)1

1931 - For
See phetT
1932 - Min
under
populatf •
- Chapter 307
Ath approval of 7
-7ubseqent to Jum
unsecured deposf
- Chapter 2.5.
ourt approval, when
f tee-fourths efder
deposits" agreements fl
period of years.
- Chapter 336. New Act_ Authorizes Superintendcr
'If the Coirt of Chancellor, to negotiate loans on as
NOTE. No 1932 law relating to the deposit guaranty fw-H,
arisinff, fron deposit guaranty.

•

roved April 2, 1934.
1934 - Chapter ih6
ew bankin- code, replacing 1914 law with all its amendments
of subsequent years. Department of banking headed by Superintendent of Pa- ks
rgplaced by department of bank supervision headed by state comptrollPr. Port:_or
orTaw ocrtainin- to the deposit guaranty system is as follows:
Bank guaranty laws repealed.
Sec. 116. That the state bank guaranty law is, in every particular repealed,
and the annual assessment of one-fourth of one per cent of the bank's average
unsecured deposits; the three per cent annual assessment on the bank's exempt
surplus, -Ind the requirement of depositing bonds with the state treasurer for
a full compliance with the guaranty laws, are hereby repealed, and the state
treasurer is authorized, empowered and directed to return to the sevefl bank5
corporations bonds and other collateral heretofore deposited with said state
treasurer.
Any funds now on hand or hereafter collected from any and all bank guarani,
assessments heretofore imposed shall be deposited with the state treasurer and place(
in the general funds of the state of "Ti ssissippi.

111

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Federal Reserve Bank of St. Louis

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1-27-55

Governor's Message Upon Passage of the Kyle Banking Bill
(Mississippi House Journal, 1914)

In his message Lhe Governor brought out that this was a
splenflil law but thought it might be noteworthy to point out that,
"...bank examiners are absolutely czars so far as the bank is concernel
anl have power to place any bank, solvent or insolvent in liquiMation
In the State, if they thought it shoulM be none."
He recommen(10 that a separate provision be passer to the
effect that "if the bank examiners shoulsi urrIertake to liquiflate any
bank, an officers shoull not flesire it, they shoul,i be permitte,1 to
file with the bank examiners a solvent bonl for 25 percent greater
then all their liabilities awl obtain an injunction to prevent their
liquilation, as it woulel be possible for examiners to liquiAate a
solvent bank."

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•

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Federal Reserve Bank of St. Louis

•

_
C:77T DECISIONS- MISSISSIPPI DEPOSIT '_.
A. R. BUTTS, IN MISSISSIPPI LAW JOMRNAL, HOVE1 -7-ER 192';

0
r

eA, r

1..4"

71
.

Anm.r(sTre n7

Re Section 38 - defining what deposits are - --."---,'
,..--Anderson et at., Bank Examiners, vs. Owen et al., 112 Miss. '76; 73 so. 286K
vanderson, State Bank Examlner, vs. "Albourn, 111 Miss. 81; 71 So. 682
t/rank of Commerce et al. vs. Clark, Sheriff and Tax Collector, 11i Iss. 850;

75 So. 595
,--Wardlaw, State Biink Examiner, vs. Planters Bank of Clarksdale et al, 131 Mps. 93;v,
i 95 So. 135
L.
, lildkon, State Bank Examiner vs. Jo on, 134 rtss. 329; 99 So, 369 6......
4'nderson, State Bank Exariner, vs. rates et.all 15Yr Miss. li0; 99 sp. 499 1r
,,,
. Anderson, State Bank Examiner, vs. T. E. Gordon, 134 Miss. 639; 99 So. 50]
VE.1
..-...--- ',094nderson, State Fakk Examiner vs. Bank of Tupelo, 100 So. 179
.
1,''Love. Supt. of Banks, vs. Murry, State Treasurer, 100 So. 2771134.11
/Pitts vs. Peoples Bank of Baldwin, 102 So. 279
vton
11.e Section 40 - withdrawal of bonds or money (initial deposit) in voluntary 14-"
"7
1,--

k--

10/Mississipni Banking Department et at., vs. Adams, 102 So. 70
Re Constitutionalitycf the deposit guaranty law in Mississippi
v/Bank of Oxford vs. Love et al.,41F-'4ss. 699; 72 So. 133
Bank of Oxford et at. vs. Love et al, Bank Examiners of the State of
M-Lssissippi, 250 U.9. 603

•

U1TT7D STATUS S"P7771E 7(77T T-J771.SICT - Bank of Oxford s. Love
(from 7
Submitted March 27, 121E... Decided November 101 :15'1.9.
2onstitutional law - inpairinU contract nl-liL;ations The ovliLation of the state's undertakir: in a
:11-1k, that "the business of said bank shall he
'
7tockholders md-r such rules of Taws and regr'
Lo adopt, provided the same be not i', conflic4_ o.
States or of this shtite,', was not nconstitutionally
enactment of legislation- providing: for reasonable examination
tithorized officrs of the state banking department created by such7 egislatior,
and for the enforced annual contribution to the expenses
such department of lit,
pf 1 per cent of the bank's total assets.
-ustice Mc-eynolds affirminL: action of the Y.ssissippi State Suprnmn
.rse of opinon it Y-17 noted that the rank ceryford as incor7or _cial act of the Mississippi annrovnd'
-7ra
1a701%, 127?. &t, cice of opinion:
r'lhi_ly.'he bill proceeds u:vn - he theory that the bank's affars are wholly e2ror 4 nterfer(ince by legislative direction, the only: ast or immediately prcbable
,r6n-s adequately complained of are enforced contribution to expense of the ban'
department and threats by defendents to make examinations and reports. And we
it clear that no impairment of the corporate charter has or will result from reL.
alle examinations and reports by duly authorized officers and the small prescribed
a.yrients. It is unrecgssary, WaTsTder other distinct nrovisiens of the statute,,,
r,
of course, we intimate no
,
rt. - if
concerninr4pem4
1,
/
II

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Federal Reserve Bank of St. Louis

1.4•-•

//A

DECISIONS OF THE MISSISSIPPI SUPREME COURT

Vol. ia$ - 1916

•

71
.

•)

v. OWEN ET ALL.
ANDERSON ET AL., BANK EXAMINE
286,
South.
Division
B.)
(73
i;i
p4'fre?i,

Banks and Banking. Insolvency. Claims. Guaranteed deposits.
On the insolvency of a bank the deposits of which are guaranteed
under the state banking law (Laws 1914, chapter 124), a depositor has a
claim for the full amount of his deposits, undiminished by a check against
such deposits for sight exchange, on which sight exchange payment was refused'
on account of insolvency and liquidation proceedings of the bank, in the ab-i
sence of proof by the liquidators that the sight exchange was in fact
accepted as payment of the checks.
ANDERSON, STATE BANK EXAMINER, v. BASKIN & WILBOURN,
714
1_0?1

Vol. 114 - 1917
'491i-trfil/7

Banks and Banking. Insolvency. Distribution of assets. Statute.
Under the Bank Guaranty Act, Laws 1914, Chapter 124, the general
creditors are entitled to participate in the distribution of the assets of
an insolvent bank along with depositors; the depositors being pro cted
the guaranty pr9y,4.sio9s of the act. Laaa. L,.4
,4,
4V
,
44-71,j401 s/- "
-//**•!Ii.,att;
7t,/ 44,
^(41 ke„.Ar ,
, • , 640te r•t
Jo.
W
E BANK EXAMINER, v. PLA FEST/BANK OF CLARKSD LE e
(95 South. 135. In Dane. No. 22839.) Vol. 131 - 1922-23
92,
// , /4Z..
Banks and Banking. Municipality entitled to guaranty certificate from
state banking department for funds deposited in insolvent bank not qualified
as a depository "secured."
Where public funds of a municipality are deposited in a bank which
has not qualified as a depository, as provided in Chapter yo of Hemingway's
Code, this deposit is not "Otherwise secured," as provided in section 3506
Hemingway's Code, and the municipality is entitled to a guaranty certificate
from the state banking department, where the bank is being liq dated by
thp depar me
(4016.1
1.41
1,111-re fr
/144
"t-- #4. 6,,
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147
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17J(.

111 Yiss. 699 72 So. 133

I "w)‘

•

The state bankina act of 1911i (Las 1911, c. 121), providing fcbr the
examination of hanks and their liquidation in case of insolvency, or if
shall be doing business on less then the minimum capital allowed, etc.
exercise of the police power and applies to a lank chartered by prior r;
act declarins that its business shall be confided to and controlled by
stockholders under such rules of law and requirements as the company may see
fit to adopt, provided the same be not in conflict with the state and federal
Constitutions, for, by chartering the bank, the Legislature could not we'
its right to exercis(NOTE. In this case ti,ere as no
of unconstitational.tf of law as such,
only A4h.resoect to its applicability to,a bank operatinF under a speciel
chart4:11 iTes variousCecislons r specting the police rower, inc117dinL;
.
Supreme O_)uttdecisions in Oklahoma and Nebraska. "Therefore, following the
sound and safeeonclusions reached in the fore7oinF, authorities, weflnd the law

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Federal Reserve Bank of St. Louis

and not 7.i
creditors uf the depository.
The Depository Act (Acts 190 ),,
when:'ut in operation, supercedes and an' 1 - VI,
Code 1906, sec. 3U5.
The fact that a tax collector accepted a pri
law toEecure a deposit madeby him of the public funds
,Inds as fixed
'
the status of the deposit of the public
1 906, sec. 34F5.
JOHNSON, State Bank Examiner, V. JOHNSON.

March 24, 1924. 134 Miss. 729

99 so. 369

...a s)ccial deposit of money, or money7dd to the hank for the specific purpose '
of paying a note made payable at the bank by its terms, is guaranteed under the
act, and such person so paying the money for such purpose is entitled to a certif
icate of guaranty where the bank is beinL liquidated by the state bank ex-aminers.
ANDERSON, State Dank Examiner, V. YATES et al.

April 7, 1924. 13ss. flu

99 So. 1:99
Where a tire certificate of deposit is issued by the president of a banl,:
Who is in charge :pf the bank's affairs and, authorized to issue such certificates,
in ayment of the president's prsonal check drawn on such a bank, the holder of
such check knowing nothing of the state of the president's account, but acting in
good faith and by means of w hich transaction he loses title to cotton sold to the
president and loses his legal rights to-rotect his interest by legal suizure
and process, the transactions constitutes a "deposit" within bhe meaning of sect .
39, chapter 207, Laws of 1919...and is guaraiteed under said act.
1.311 Miss. 639
99 So. 501
sae.
decision
and
YATES
v
ANDERSON
same
as
is
dates
case
Opinion
To surnary.

7.7. ANDERSON, State Bank Examiner, v. T.E. GORDON

Apr 7, 1924.

135 74ss: 351
100 S. 179
L'a.,_31lier's check" is a bill of exchange drawn by a bank upon itseaf, and
a cashier's check is guaranteed-"7! act of issuance.
accepted

=EPSON, State Bank Examiner v. FAIT OP TUPELO. May 12, 1921.

Supt of E,anks v. MURRY, State Treasurer.

June 2, 1924. 135 Miss. 749

loo se. 277
Money heltnging to the state, deposited in a bank which had not qualified
r11,1(4..
statr, cirTos4 to,-7, is ,,roteoted 17 the stn.tr, /7.P.nlr

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Federal Reserve Bank of St. Louis

*3*
DECISIONS MISSISSIPPI STATE SUPPEYE COURT
PITTS v. PEOPLE'S BANK CF BALDNIN

Dec. 22, 1924. 237 niss. 240;

102 So. 279

One who depnsited funds at solicitttion of person to Whom bank had agreed to
make loan if he could secure additional deposits, and received therefore certificates providing for payment of h per cent interest, and subsequently, in good
faith, received a bonus, believing it to have been paid by suchnerson, was not
depreived ofrrotection of State Guaranty Law....since in such case there was no
agreement between -epositor and bank for payment of more than h per cent.
Where certificates of deposit for one were surrendered, and certificates for
following year, providing for payment of 14 per cent. interest were issued, the
funds evidenced by the new certificates were within rotection of State Guaranty
Law, even if moee than h per cent was received during preceding year...since the
deposits for the we years did not constitute one continuous transaction.
MISSISSIPPI BANKING DEPARTMTNT et al v. ADAMS

•

Dec.

8, 1924•

127

YiSS0

122

102 SO. 70
T.11en a bank...voluntarily liquidates and goes out of business, after having i
,
paid depositors in full, and paid all assessments made against it uhiltit was
doing business...its liquidating agent is entitled to recover from the state
treasurer all bonds or money it has deposited with him under the provisions of
1914 add 1910 Section 40 of this act is plain and inambiguous
these acts.
(NOTE. Banking department had contended not entitled to return of 'bonds until
liabilities of all guaranteed banks i- liquidation had been paid in full--i.e. that
in effect bank voluntarily liquidating responsible for its reittive share of losses
in all failed banks up to that time, even though assessments sufficient to cover
such losses had not yet been made).
LOVE, Mtn SUPEIETENDEM OF bAhltS4 CITIZENS' BANK AND TRUST CO. OF NAPES
Oct. 5, 1925. 140 miss. 585, 105 so. ,7/4
Though surety, which signed bank's bond as depository of country's public
funds, hes no authority to become such surety, deresite of such funds were thereby
"otherwise secured" by reason of estoppel to deny liability to the country, so the
lei. they were not guaranteed by the state bank giaranty fund, and the bank ras not
liable t assessment thereon, as "guaranteed deeosits" for the debefit of such fun
v. LOVE, S7Pr9INT7N7777 or BN-Is FT AL, 147 Miss. 13
113 So. 335
contracted
with
the
its
depositor and put
become
levee
to
bank
board
Where a
marketable
the
bond,
a personal bond'
part
o
and
securities
for
up bonds and other
board are
individual
levee
of
th
deposits
and
sureties,
he
bank
the
signed by
the
bank
compelled
to issue
not
be
secured"...and
guaranty
fund
may
"otherwise
put up by the
securities
funds
from
the
certificates
for
the
not
collected
guaranty
levee
board.
bank to the
Whore a personal bond is given by a bank becemine a depository and is accepte
by the levee board, it can recover free the bank and the sureties on its personal
bond.
where securities and bend are given and accepted by the levee board, and a ban
becomes a depository, and funds are thus 'secured, a court will not construe the Ba
:)1=0Fitory Guaranty Law to cover the balance due after exhausting the securities.
BOARD 07 LEVEE C0MT7-7.

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1.
Federal Reserve Bank of St. Louis

CITY or J..7iss. 757',

13_

1. State exempting surp17:.-,
certificates are liquidator', ("oos n. .
amendments by reference to title only.
2.

General law may be suspended by another

3. Statute suspending bank guaranty law until
general, and not prohibited by Constitution.
Law id "general" when it operates unif.rmly on all
places, or thirrs re;uiring legislation peculiar to class

Statute exempting surplus of banks from taxation until
certificates are liquidated does not violate oonstitutiona]
special tax exemption laws.

6. Power of exemption from taxation is withinlegislative discretion, subject
to 11imitation that exemption shall not be arbitrary.

•

Only limitation upon legislative power toexempt property from taxation is that
so-oprinciple of public policy must support presumption that public interest will
be subserve0, ly\exemPtion, and classification ‘f pronerty exempted must be based
or so-e real difference bearing proper relation to object sought to be acc-n-Tlislr.
Interpretation of constitutional provisions must not'n too literal.

9. Statute exempting surplus of banks fro- taxation until outstanding guaranty
certificates are liquidated does not violate constitutional provisions recpectin
uniformity of taxation.
10. Statute exe-Tting surplus of banks from taxation until outstanding guaranty
certificates are liquidated dOes not violate constitutional provision respecting
taxation of banks and banking cap ital.
at statute was invalid because atterm7lnL to
11. City could not raise point
state
banks
by
lejslaton.
regulate national

•

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Federal Reserve Bank of St. Louis

Digests of Court D'- sins bearing on the deposit c'mran',,
Fron Second Decennial Digest, American Digest Syster,, 1907 to 1916, vol.
•

Banks and Banking - Key 63, p. 1339; and key 85, p. 1366
pLi ss. 1915 Code 1906, pee. 1169, as amended by Laws 1912, c. 211, punishil„
receiving od deposits in ineolvent banks, is repealed by State Banking Law, 7,--. '
--State c. McLean, 66 So. 772; 109 M1ss.526.
(N4ss. 1915
Indictment charging officers of an insol-ent tank with receivi
deposits in violation of Laws 1914, c. 124, sec. 52, must_allege that they knew
bank to be insolvent.--State v. McLean, 69 So. 772; 109 Miss. 526
From Third Decennial Digest, 1916 to 1926, vol.
Banks and Banking - Key 15, pp.

445-4V.

(miss.

1916) Under the state banking law (Laws 1914, c. 124), a depositor has a
claim
on a bank's insolvency for the amount of his deposits,
undiminished by a check for sight
exchange, on which sight exchange payment was refused because of
liquidation proceedings
of the bank, in the absence of proof that the sight exchange
was accepted as payment of
the check.--Anderson v. Owen. 73 so. 286, 112 Miss.
476.

(Miss 1917) Under Bank Guaranty Act4f23, 24, 36, 38, 59 and 60, general creditors are
entitled to participate with depositors in the distribution of the assets of an
insolvent
bank, the depositors being guaranteed by means of the guaranty fund.
--Anderson v. Baskin &
Wilbourn, 74 So. 682, 114 Miss. 81.
(Miss. 1923) Where the public funds of a municipality are deposited in a bank which had
not been qualified as a depository under Hemingway's CodsA4191-4255, such deposit
is not
"otherwise secured" as provided by section 3596, and the municipality is entitled to a
guaranty certificate from the state banking department, under Laws 1914, c. 124, 36,
where the bank is being liquidated by this department.--Wardlaw v. Planters' Bank
of Clarksdale, 95 So. 135, 131 Miss. 93.
Where a bank redeposited county money in another bank, which subsequently failed, the
depositing bank 13 entitled to receive from the state banking department its guaranty
certificate. --Id.
(Miss. 1924) Under Hemingway's Code43596 (Laws 1916, c. 207,
38), providing that all
deposits not otherwise secured, and all cashier's checks, certified checks, or sight exchange
issued by banks operating under this law shall be guaranteed, the guaranty provided for
not applying to a bank's obligation as indorser on bills rediscounted, nor to bills payable,
nor to money borrowed from its correspondents or others, nor to deposits bearing a greater
rate of interest than 4 per cent, per annum, a special deposit of money, or money paid to
the bank for the specific purpose of paying a note made payable to the bank by its terms,
is guaranteed under the act, and such person so paying the money for such purpose is entitled
to a certificate of guaranty where the bank is being liquidated by the state bank examiners.
--Johnson v. Johnson, 99 so. 369, 134 Miss. 729.
(Miss. 1924) Where a time certificate of deposit is issued by the president of a bank,
in charge of the bank's affairs and authorized to issue such certificates, in payment of
the president's personal check drawn on such bank, the holder of such check knowing nothing
of the state of the president's account in the bank, but acting in good faith and by means, of
which transaction he loses his legal rights to protect his interest by legal seizure and
process, the transaction constitutes a "deposit" under Laws 1916, c. 2074° 38 (Hemingway's
Code, (t 3596), and is guaranteed under said act.--Anderson v. Yates. 99 So: 499; Anderson v.
Gordon, 99 so. 501, 134 Miss. 639.
(Miss.1924) Under Hemingway's Code, 0596, a cashier's check is guaranteed.
Anderson v. Bank of Tupelo, 100 So. 179v, 135 Miss. 351.
(Miss.1924) Money belonging to the state, deposited in a bank which has not qualified
as a state depository, is protected by the state bank guaranty fund. --Love v. Murry, 100
So.
277, 135 Miss. 749.

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Federal Reserve Bank of St. Louis

- 2

TississipFi

.aranty fard- Th -7.rd 7,Aenni21

(Miss.1924) When bank organized under Laws 1914, c.124, as amended by Laws 1916, c.207,
voluntarily liquidates after payment to depositors in full and payment of all assessments
made under Hemingway's Code,
3598, its liquidating agent can recover from state treasurer
all bonds or money deposited with him under such statutes.--Mississippi Banking Department
v. Adams, 102 So. 70, 137 Miss. 122.
(Miss.1924) One who deposited funds at solicitation of person to whom bank had agreed
to make loan if he could secure additional deposits and received therefor certificates
providing for payment of 4 per cent, interest, and subsequently, in good faith, received
a bonus, believing it to have been paid by such person, was not deprived of protection
of State Guaranty Law, Hemingway's Code, 3596, excepting from protection thereof deposits
bearing greater rate of interest than 4 per cent, since in such case there was no agreement
between depositor and bank for payment of more than 4 per cent interest. --Pitts V.
People's Bank of Baldwin, 102 So. 279, 137 Miss. 240.
Where certificates of aeposit for one year were surrendered,and certificates for following
year, providing for payment of 4 per cent, interest were issued, the funds evidenced by the
new certificates were within protection of State Guaranty Law, even if more than 4 per cent.
was received during preceding year, in violation of Hemingway's Code,e 3596, since the
deposits for the two years did not constitute one continuous transaction.--Id.
(Miss.1925) Though surety, which signed bank's bond as depository of county's public
funds, had no authority to become such surety, deposits of such funds were thereby
"otherwise secured" by reasor of estoppel to deny liability to the county, so that under
Hemingway's Code,f 3596, and Ilemingway's Code Supp. 1921,
3593, they were not guaranteed
by the state bank guaranty fund, and the bank was not liable to assessment thereon, as
"guaranteed deposits" for the benefit of such fund.--Love v. Citizens' Bank & Trust Co.
of Marks, 105 so. 484, 140 Ifi,ss. 585.

Bank: and Bapting - Key 44, P. 473
(*Tiss. 191b) Laws 1914, c. 1211„ sec. 59, incr,--asin,liabil"ty of stockholder
of bank to extent of par value of his stock, but at the same time maranteeing
payment of depositors by state, cannotbe said to do stockholders an "iniustige"
under Const.
pir. 178.--Pate c. Bank': r Newton, 77 So. 601; 116 'Ass. 666.
Laws 1911, c. 121, sec. 59, increasing liability of stoqkholders of banks, .
imposes liability upon stockholders of banks incorporate before or after its
passage, 114,t, only as to deposits actually made after its passage.--Id.
Danks and Banking - Key h7 (2) - page 177.
(Mi ss. 1924) Under Hemingway's Code, sec. 3619, stockholders double liability
accrues and is fined at full amount of stock when bank i s put in liquidation, and
it is reasonably apparent that assets will not pay depositors.--Board of Balk
Examiners v. Granada Bank, 99 So. 903; 135 4ss. 2h2.

1890,

•

Bakks and Banking - Key hp ConstItutional and statutory provisions. p. 439
(U.S. Sup. Miss. 1919) Act of Mississippi of March 9, 1911 (Laws 1911, c. 124)
held valid.--Bank of Oxford v. Lovel _h0 S. Ct. 22, 250 0.q. 603, 63 L. Ed. 1165,
affirming judgment 72 So, 133, 111 Mlss. 699, 8 A.L.R. 891.
NJ
No abstract apllears in either the Second Dicennial Digest nor
(NOTE.
the Third Dicennial Digestof the Mississippi Supreme Court dec'sion,
which was rendeded on June 19, 1916)

411

NOTE
For selection of the abstracts quoted above from the Second and Third Decennial
D4gests,Athe entire sections relating to Banks and Banking have been scanned,
and all nississippi cases read. The great majorit: of the cases read are omitted.
Such cases include most of -Lose referring specifically to laws enacted prior
to 1914, and cases relating to such stbjpcts as tiqe fpllorimxithout a specific
reference to thelaw of 151h, or an indicgt9Rstha theiNsillAgefnvolved in 04-'
than application to specific lams circumstances war not involving any genera
principles of interpretation: bank directors' or officers' liability; srecia"
deposits or trust funds; particular iterrs in receivership cases; protest and
collrtion practices; handling of drafts.
e,14
(by nAie,pir
.
Xj.4.10(2,

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Federal Reserve Bank of St. Louis

Digests of Coart

cis-lc/Ts - 7,:issfnsirpf guararty fund - Fourth Dicennial Digest

From I-tutth Decennial Digest. 122' to

2-nks and f'aftkinL - Ke1 L - ConstitutiLral and statutory pro-isYsns
p. 790
Miss. 1931. State Yank guaranty statuto rrovidir- for issuance nf nonirterestbearing guaranty certificates held valid,(Ia -.:s 193P, c.2,2)7
(reve T. rppgulf, •
z
A
13 clo. 223, 16n
jj/rfiernfICI
590. WiE-771.0,-.0-'44'ovr4 - '3.4444
- Key 15- STfet:r4 P:-s5ts rf s'curties
p. 794
Mp▪ s 1927. Deposits securred by rarketa'le sTeurit 7
-sn -alcci ore
"otherwise secured" 'Ind .r statute, and issia-.ce of guaranty certificates fnr funds
)t collected fro-,_socar't:
crpelled...Foard of Tx-vee Corn's v. Love,
113 SO. 335, 117
S3. 1.
Pank Depositor- ('-uaranty Law does net cover balance duo after exhausting sefourit
'-,-drr-os'tory to sec' rP dPposits.
(sare case).
Mi-ss. 1929. Law i-posin: liabil'Ay on s'
strctly construe'. -ellott v. Love. 119 Apb, I2e
- Ley 47 (1)
r. N!3.
miss. 1926. Stockholder of insolvent ban:: reg Carly com°
ddr
law, though without his knowledge, is subect to double liability. -insolvent bank is liable for interest from time demand is mach.-- nr horn for double
liablli-. Kent v. Love, 106 Sc. 772, 1111 Miss. 523.
- Key 85 (2)
pp. 1153 and 1]84
Miss. 1230. Statements to denositors of tanking department officers that
solvent held competent to show bark officer's good faith in receiving deposits.
T'
sustain convision for receitin deposit 4 r rsolvent tank, prrof must show defenden.
knell or had good reason to believe banks was insolvent.
In prosecution fo-r
deposit when bank was insolvent, inquiry relates to bank's solvency when deposf,
received.
Facts learned while administerinL jnsolventg bank's affairs must rela'
back to date of dennsit to sustain conviction for receivinc deposits after insolver
mcCraine v. Statc, 130 So. 295, 158 Miss. 156.
Miss. 1933. In prosecution of tanker for receiving money on deponit
was insolvent, state's evidence that assets consitinT- of deposit certii
under deposit guaranty law were worth much less than face value held ilproperly
excluded, notwithstandin: statute authorizing issuance of baonds to pay outstanding
certificates, where such bonds had not leen sold--State v. Johnson, lF So. 389,
591.

166

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Full text of Records of the Federal Deposit Insurance Corporation, Record Group 34 : Deposit Guaranty in Mississippi, 1914-1930 [1 of 4], Box 3, Folder 5

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