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BANK OPENING
TERMS AGREED
(Continued from page 1) vorable agreement for the depositors The only other plans could be, the continued slow liquidation of the bank. toward which the depositors are not favorable. or a receivership. The advantages of the proposed plan compared to a receivership are: Under a receivership, the time for liquidation of the bank. according to experience, would run not less than five years Payment of interest to the deposhors would not be obligatory Expense of five to ten per cent. would be borne by depositors, while under the reopening plan the stock earnings will apply to this Disposition of bank equipment would be of uncertain results. and the loss on this would lessen deposassets. Banks Have Long Favorable History In view of the long and favorable earning experience of the Steuben County Bank of over forty years and of the former First National Bank. of twenty-five years. and the prospects of a termination of the unfavorable business conditions which brought on the crisis, it is apparent that the opening plan proposed will be advantageous to the depositors and the community at large. and it is to be hoped. in some measure to the owners of the banks If after a trial of the first year the bank should not be able to meet its agreement. a receiver can be applied for and another one hundred per cent. assessment liability set up.
The moratorium plan of withdrawat of deposits is now in force in a majority of the banks of this section of the state. and has been adopted to prevent the excessive withdrawals beyond the ability of the banks to meet by collections, which condition caused the closing of the local institutions. Under this privilege the reopened bank would be in a position to go on and serve the community with success as banking institution. Without this agreement there appears to be nothing else to do but to salvage the ruins The speedy and unanimous signing of the agreements will bring about an early re-opening of the bank which it is hoped may be accomplished by May 6th. six months' interim from the closing date of Nov. 6th last The following are the stockholders' and depositors' agreements in full:
Stockholders' Agreement
We, the undersigned stockholders of the First National Bank of Angola. Indiana, which was on the 24th day of March 1931. taken over by and merged with the Steuben County State Bank of Angola. Indiana. and which said Steuben County State Bank suspended business on the 6th day of November. 1931. in order that the said Steuben County State Bank may re-opened for business, and in consideration of the depositors of the said Steuben County State Bank of Angola. Indiana, entering into voluntary agreement not to withdraw funds deposited in the said Steuben County State Bank except as stated in depositors' agreement signed by them Do hereby agree That we. the said stockholders of the said First National Bank of Angola. Indiana will deliver the certificate of deposit heretofore on the 14th day of September, 1931. issued to us by the Steuben County State Bank in liquidation of the stock of the First National Bank of Angola, Indiana, to the directors of the Steuben County State Bank be, by said directors, placed in escrow upon the following terms and conditions: That said certificates of deposit shall be withdrawn and removed from the liabilities of said Steuben County State Bank for the period of the moratorium agreed to by the depositors of said bank That any time after five years from the date of the re-opening of the Steuben County State Bank that the accrued earnings or undivided profits of the said Steuben County State Bank shall warrant. the said certificates of deposit shall again be placed on the liability account of the said Steuben County State Bank and be paid. but in any event the said certificates shall become liability of. and be paid by said bank not later than ten years from the re-opening of said bank the financial condition of said bank shall allow the same, the said certificates shall bear interest from and after the 6th day of November. 1932, at the rate of three per cent per annum but no interest shall be paid on said certificates until after the expiration of five years from the re-opening of said bank, unless all depositors shall have been paid before that time
Depositors' Agreement
1. we, or either of us, the undersigned depositor of the Steuben County State Bank of Angola Indiana, in consideration of the agreement of the directors to re-open said bank. the voluntary contribution of one hundred per cent assessment by the stockholders of said bank, and the deposit in of the certificate of deposit given for the stock of the First National Bank of Angola, Indiana, for a period of five years, or until the expiration of this agreement. no interest to be paid on such certificate during the period of time in which they are in escrow. and in order to obtain the approval of the State Banking Commission of the State of Indiana. do hereby covenant and agree that we will not withdraw any of our funds in said bank. except as hereinafter provided. to-wit:
None to be withdrawn for six months after opening the bank. Ten (10) per cent during the second six months' period after opening. Fifteen (15) per cent during the second year after opening Twenty (20) per cent during the third year after opening. (25) per cent during the fourth year after opening.
Thirty (30) percent during the fifth year after opening. If possible to do so consistent with the safety of the bank, and they consider it advisable. the directors pledge themselves to change the schedule of payments to a shorter period of time than is provided for It is understood and agreed that no interest on deposits shall be allowed or paid until after one year from the suspension of the bank or until after November 6. 1932 All interest accruing after that time may be withdrawn at the expiration of six-month periods, and all interst-bearing deposits shall bear interest at the rate of three (3) per cent per annum after the said date of November 6th. 1932 It is also understood and agreed that any deposits made after the opening of said bank may be withdrawn at any time As further consideration in this contract. the directors of the bank agree that no dividends shall be declared to the stockholders until the provisions of this agreement have been fulfilled
