1921 extra session public laws – Ch.107 Sec.1

Strike out in section 42 of chapter 38 of the Public Laws of 1921 all after and including the word insolvent in line twenty-one, down to and including the word year in line twentynine, and insert in lieu thereof the following: There may be deducted from the items of surplus and undivided profits, an amount not exceeding five -5 per cent of the bills receivable of said institution to cover bad or insolvent debts: Provided, the cashier of the bank shall make an aflidavit that in his opinion the deduction asked for above, not exceeding five per cent, is reasonable. There shall also be deducted from the items of surplus and undivided profits, investments by such banks in bonds of this State, of the United States Government, of the Federal Farm Loan Banks, and of the Joint-stock Land Banks at the actual cost price of said bonds to the bank claiming such deductions. To be entitled to this deduction, it must be shown by the reports of such bank that the bonds were purchased and paid for in full at least ninety days before the first day of May. 3