The Bismarck Tribune Newspaper, February 7, 1925, Page 3

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SATURDAY, FEBRUARY 7,. 1925 A Concurrent Resolution For an Amendment to the Constitution, In- creasing the Debt Limit, Providing for the Sale of Bonds to Provide Funds to Liqui- date the Liabilities of Insolvent Banks, to Levy Taxes to Pay the Principal and ‘Tn- “terest of Said Bonds, to Provide for the Dis- busement of the Moneys Arising There- from, and to Protect the State in the Re- eovery or Retoupment Thereof. BE IT RESOLVED by the Senate of the State of North Dakota, the House of Represent- tives Concurring: That the following proposed Amendment to the Constitution of the State of North Dakota is agreed to and that the same be submitted to the qualified electors of the State for approva) or rejection, at a Special election to be held on the fifth day of May, A. D. 1925, between the hours of nine o’clock A. M. and six o’clock P. M., in the manner provided by law for the call- ing, holding and certifying of special elections for the amendment of the constitution. AMENDMENT. The Constitution of the State of North Da- kota is hereby amended by the addition of the following Article to-wit: ARTICLE 41 1. That in addition to all other indebted- ness heretofore or hereafter authorized, the State may contract debts not to exceed "Ten Million ($10,000,000.00) Dollars, and may issue and sell its bonds in that amount for the pur- pose of providing funds to reimburse deposi- tors in state banks which may have been ad- judged insolvent prior to the first day of May, . D. 1925, and subsequent to the first day of July A. D. 1921 2, The mate Treasurer is hereby directed to prepare, and the Governor and the State Treasurer are hereby directed to issue, negoti- able bonds of the State of North Dakota, in the aggregate of said amount. They shall be exe- cuted by the Governor and the State Treasurer {ander the great seal of the State of North Da- kota, and shall be attested by the Seeretary of State. The,Auditor and the Secretary of State shall endorse and sign upon each bond a certi- ficate showing that it is issued pursuant to law and is within the debt limit. The bonds so is- sued shall be designated “BONDS OF NORTH DAKOTA, BANK LIQUIDATION SERIES.” Said bonds shall be payable to the bearer, and shall be subject to registration as provided by law. They shall be issued in denominations of One Thousand ($1000.00) Dollars, shall be - dated on July 1st, 1925 and payable in thirty (30) years from that date: They shall bear interest at the rate of five per cent (5%) per annum from that date, until maturity, payable semi-annually on the first days of January and July each year. Such bonds shall have attached coupons evi- dencing the amount of interest payable on each semi-annual period. Principal and in- terest shall be payable at the office of the State Treasurer in the City of Bismarck. Bonds and coupons must be presented for payment with- in six (6) years after maturity, and- no such bonds and coupons shall bear interest after maturity, unless :payment ‘thereof shall not have been made upon such presentation. Such bonds shall be exempt from ail State, County and Municipal taxes. The above conditions shall be set out in the bonds. SENATE BILL NO. 141 Introduced d by Senator F. F. '. Babeock NINETEENTH LEGISL ATIVE ASSEMBLY OF NORTH DAKOTA 3. Such bonds shall be sold i the BANK OF NORTH DAKOTA at the highest obtain- able price and for not less than par and ac- crued interest, and at such times and in such amounts as in the judgment of the Industrial Commission shall be necessary to carry out the provisions and intent of this amendment. The proceeds arising*from the sale of such bonds shall be covered into the State Treasur- ery and there kept in a fund to be designated “BANK LIQUIDATION FUND,” and shall be paid out and disbursed in the manner herein- after provided. 4, There is hereby levied upon and against all of the taxable property within. the State an annual tax for each year, beginning with the year 1925, and continuing until said bonds shall have been paid, sufficient to pay the in- terest upon said bonds and to create a sinking maturity ,jhaving regard for the amount here- fund sufficient to retire the principal thereof at inafter otherwise provided for—and it is here- by made the duty of the State Board of Equali- zation and such other officers or boards as may be by law charged with‘such duty, to levy and collect such taxes in the manner provided by law, and to provide for the segregation and safety thereof. All moneys received by the State Treasurer from the proceeds of'such taxes, and from al! other sourees hereinafter provided for, or from legislative appropriations or otherwise made applicable to the payment of such bonds, shall be by him kept in an account or fund dis- tinct from all other moneys, and shall be dis- bursed by him only for such purpose; and no other disposition shall ever be made of such money in said-fund until such bonds shall be fully paid, or unless there be a surplus in such fund, but this shall not be construed as pre- . venting the State Treasurer from: depositing said funds in any depository designated by law with respect to other public funds. 5. There is hereby appropriated all of the money received as proceeds of the tax provid- ed for herein, and all other moneys received from the other sources provided for herein, to pay the interest and principal upon such bonds, as payment thereof shall become due, or shall be presented for payment, and when- ever any of said bonds or coupons thereon shall beeome due and shall be presented for payment, the State Treasurer shall pay the same out of the fund applicable thereto. 6. Whenever the amount in such fund shall, in the judgment of the Industrial Com- mission, be sufficient to warrant doing so, it may purchase any of such bonds which may be in the market and for sale, at’such price as may be deemed by said Industrial commission for the best interests of the State and bonds so purchased shall be held as a part of said fund. “7, That immediately upon the approval of this resolution there shall be established in THE BANK OF NORTH DAKOTA a bureau for the audit and approval of the claims of de- positors in the insolvent banks hereinbefore mentioned, and the officials of said BANK OF NORTH DAKOTA shall establish and promul- gate rules and regulations for the auditing, ‘approval and payment of such claims, subject to the limitations herein provided for. 8. All claims audited and allowed by the Bureau herein provided for, shall then be sub- mitted to the STATE AUDITING BOARD and by it audited, and upon its approval shall be paid out of the fund created therefor, and in the manner as other claims against the State are paid. 9. The expense of administration shall - charged to and paid out of the fund. 10. No claim of any depositor, or the suc- cessor in interest of any depositor, shall be paid in an amount exceeding Seventy-five per cent of the principal thereof. No assignment of any claim for the purpose of collection may be recognized, unless made to the BANK OF NORTH DAKOTA, and no assignment for any purpose may be recognized for an amount in excess of the sum paid therefor, proof of such payments shall be made upon oath of the assignee. No garnishment, levy upon execu- tion or attachment of other mense process shall be sustained, nor recognized, nor shall injunction or other order to prevent the dis- tribution of any part of said fund be ‘recog- nized or permitted. 11. Depositors accepting payment of their claims in the amount herein provided for shall be forever barred from recovering any other or further amount thereon from any other source. 12. The State of North Dakta shall immediately and au- tomatically be subrogated to all the rights of persons firms or corporations whose claims may be paid out of said fund as against the assets of the insolvent bank, the receivers and stockholders, and in all such other funds herein provided for, and it shall be the duty of the Attoriey General to promptly proceed to’ recover for the state upon such subrogation. 13. All moneys recovered by reason of or thru the pay- ment and assignment of such claims, shall be covered into the State Treasury and by the State Treasurer credited to and kept in the BANK LIQUIDATION FUND herein provided for; the Industrial Gommission or the Legislative Assembly may from time to time transfer from said fund to other funds of the State any excess there may be therein beyond the amount necessary to pay the interest and at maturity, the principal of all bonds herein provided for. 14. Nothing herein contained shall be held to limit the exercise of the powers of the Courts as set forth by Senate Bill No. 267 of the Legislative Session of 1923 (Chapter 187 Laws 1923) for the liquidation of the affairs of insolvent banks, but immediately upon the taking effect of this amend- ment THE BANK OF NORTH DAKOTA shall be appointed to supercede, and shall continue to supercede the Receiver of all insolvent banks, and said THE BANK OF NORTH " DAKOTA is hereby authorized and empowered under the supervision and direction of the court aforesaid, to perform all the acts and things and assume all of the duties of such Receiver, with the same authority and power such Receiver now has or might have. 15. . This amendment shall in all things be held to be man- datory and self-executing, and in the absence of any necessary administrative directions or regulations to carry out the pur- pose, spirit and intent hereof, the same shall be supplied by the District Court of Burleigh County in the exercise of its equity powers, and subject to the supervision of and review by the Supreme Court of the State, as now provided by law. 16. That immediately upon the. approval of this amend- ment, the GUARANTEE FUND COMMISSION as now con- stituted, shall cease its active duties, and all of the duties and powers ‘now devolving upon and possessed by said GUAR- ANTEE FUND COMMISSION as provided by law, shall be exercised and carried out by THE BANK OF NORTH DA- KOTA, and it may levy and collect from the solvent and oper- ating state banks within the State of North Dakota, such moneys and assessments as are now being levied and collected by said GUARANTEE FUND COMMISSION for the protec- tion of deposits, in the manner provided by law, until De- cember 31st, 1926; provided, however, that any money then in the GUARANTEE FUND to an amount not exceeding $500,- 000.00, may be by the Legislative Assembly of the State of Nerth Dakota, or by the Industrial Commission, set aside as & permanent fund to be used for such protective or adminis- trative purposes as may be by law provided with respect to the control, regulation and operation of state banks; and pro- vided further that any excess over said $500,000.00 shall be at once covered into the BANK LIQUIDATION FUND and be disbursed as herein provided for. If at the time of taking effect of this amendment there shall be less than $500,- 000.00 in the GUARANTEE FUND there shall be transferred thereto from the BANK LIQUIDATION FUND sufficient to make the total amount $500,000.00. 17. That upon the adoption of this amendment the so- called “GUARANTEE FUND” shall thereafter. be known as the “Bank Protective Fund,” and the use of the words “Depos- itors Guarantee Fund,” “Depositors Guarantee Fund Commis: sion,” o8 equivalent words or indications, which would imply that deposits in State Banks are insured by the state, or by the Banks of the State, or by any department of the state, shall be prohibited. Referred to Committee on State Affairs, Bank Legislation Pending it to ‘be submitted by initiative petition prepared b y some‘person or group of persons having their own interests uppermost. In oe latter case it would have to be voted upon without ouvert? for consid- eration or amendment and in the exact language in which it might be prepared. Constituents are re- quested to. read te resolution carefully and communicate their Views to their representatives and sgen- a at Bismare! No comment is mais upon the wisdom or ot ke rwise of this resolution, but it is hetieved that the rp question involved is of such importarce th: 4 i must seoner er later be submitted to the people, and conceding that the officers of this association ‘are of the opinion that it could be formulated and submitted by the bs cect thy assembly in such shape that if adopted, it would mori. See, the minimum of maximum of henefit to the prternete depositers rather than oma North Dakota Bankers Association 1. Sydnee, § i ‘By W. & MacFadden, ‘Soapetiey. Fargo, N. D. my iv injury to any person and the ‘

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