Richfield Reaper | 1934-07-05 | Page 4 | Protection of Depositors Aim of New Bank Act

protection of depositors aim of new bank act the richfield commercial and savings bank has been approved as a depository of public funds under the new state depository act which went into effect on july 1 under the new act no bank organized under the laws of utah is permitted to pledge or deposit any of its assets to secure any deposit whatever whereas under the old law which just went out of existence banks could pledge securities of certain types for public deposits thus giving public moneys preference over individual depositors the new law was designed as a safeguard for small depositors individual depositors are now also further protected by a recent change in the amount guaranteed by the federal deposit insurance corporation under the new setup depositors in member banks are protected up to instead of 2500 as originally provided