9-1915. Deposits or debts while insolvent; liability.
9-1915
9-1915. Deposits or debts while insolvent; liability. It shall be unlawful for the president, director, managing officer, cashier or any other officer of any bank to assent to the reception of deposits or the creation of any debt by any bank after such person has knowledge of the fact that such bank is insolvent. It hereby is made the duty of every such officer or managing officer to examine into the affairs of every such bank and know its condition if possible. Upon failure to discharge such duty such person shall be held to have had knowledge of the insolvency of such bank or that it was in failing circumstances, for the purposes of this act. Every person who shall violate the provisions of this section shall be responsible individually for such deposits so received and all debts so contracted, except that any director or officer who may have paid more than such person's share of the liabilities mentioned in this section shall have the proper remedy at law against such other persons as shall not have paid their full share of such liabilities.
History: L. 1947, ch. 102, § 123; L. 1989, ch. 48, § 52; July 1.