| Show STRICT LAW FOR BANKS Attorney ereril 1 F M Biidop Aniwcri Tour Questions I oIMIIIklll 01111I 1 or > anlr IId o Idd a a 1Id The law for banka hae I been tall I don by Attorney tlenerol Ill > hop Hank iiamlner U It Andenon ab mlllf1 to hint five nuwtlonn to uhlch ananvra were Klven ni followat IltrnM IXJANINQ The llrat queitlon waa In eubilancet A bank hit loaned to an unincorporated unincorpo-rated mercanllle company 115000 hmo h-mo being Ibo full limit the law I ul 1 Iowa Then It 1 haa loaned to employee of raid mercantile company other > uma aggregating < 110000 The money ao bor rvweil by the company and employee aggregating lUono hai btvn duly cred lied by aald inercanllle company on It Look Aa eccurlty for the entire loan the bank holda > l aundrr notea of farm era executed lo the aald mercantile company fho lng that It 1 la I the mer canllle company which haa really bor roneil tho nhole of thla II3000 It thl an eailon of Iho banking law of Ihe State and10 hat la the mnelyt The attorney general < U I of tho cpln Ion that thli l clearly a > lolathm of ectlon MO Ilelicd HlalutH and the remedy la I for Ihe urcretary of itat through Ihe attorney general ta apply ap-ply to tho djilrlct court fort Die ai 1 > lolnn or A tealn 10 IRk h of anu wloJ up h buln of Ih bank DIHHCTOIl IB AK 1 OriMCBR Tho aceond queitlon itatee that the name bank Ptrenuounly makee the claim that n director of any Slate bank In the Hlnto of Utah It not an oincri and that therefore hie liability to tuili hllnk onol IIntll1 10 0 110010 lon ao om01 I ood uk If dlor 01 R bnk 10 > IIndr Ih I of Ih HtalI oUl 1110 orTho The answer le I that ho Is I lltQOO Till LIMIT The third question saysi This hank haa loanrd HOWM to ono Individual since the llevlsed Hlalulea wenl Into erred Illtooo being the legal limit In Ihe following manner rifteen thousand thou-sand dollars waa loaned direct on one note to Ihe person Imrrowlng IhplI this bank made 1 out another note for lllooo of Ihe same data payable lo sister bank and got < lh same borrow to sign It flu sister bank by Us president presi-dent Immediately Indorsed the note without recourse1 over iI this I hank I which then paid nut the money to the maker thereof rTho directors of Ihe country bank knew absolutely nothing of the transaction Is such loan unlawful un-lawful aa being a violation of the lwT The nnsner Is I that any bunk transacting trans-acting huslnis In this way knonlntly and wilfully I mnuLI 10 Ih way pointed oul In Ih nwe 10 Ih first question IN 1HILATION TO 1IONDS Tho fourth question Is The presl dent of this bank refuses to keep on hand the lawful 10 per cent In culi on hand and balances due the corporation from good solvent bunks He nmkes the claim that the Hlale bank examiner ahnuld construe Ihe law very broadly IUII t lr and Include government bond which can be and nlwajs hale been nh1 1 1In Iwo 1010 Am I 1011 11 10 onoru Ih Iw ho Ih The atlornov general nays that noth Inll bill < fIh on hnd nnd blnn 1 Cront olvont Lnk 0 alIl1bl funJ nvnl1lol botO 1101 Th ntlh qUClllon 0 Ih1 Ih bonk ok loan Oil 0110111II k h II LI pmhlhll Ihl Th 1100 Boor1 holds that Iho Htate authorltlea han no Jurlsdlcilon In the matter at bylawa ni long an they do not conllct with Ihoartlclra of Incorporation or the general laws of tho mate |
