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                                         SENATE JOINT RESOLUTION NO. 8207

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State of Washington                               51st Legislature                              1989 Regular Session

By Senators West and Stratton

Read first time 1/20/89 and referred to Committee on  Financial Institutions & Insurance.

BE IT RESOLVED, BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE STATE OF WASHINGTON, IN LEGISLATIVE SESSION ASSEMBLED:

          THAT, At the next general election to be held in this state there shall be submitted to the qualified voters of the state for their approval and ratification, or rejection, an amendment to Article XII, section 11 of the Constitution of the state of Washington to read as follows:

Article XII, section 11.        No corporation, association, or individual shall issue or put in circulation as money anything but the lawful money of the United States.  Each stockholder of any banking or insurance corporation or joint stock association shall be individually and personally liable equally and ratably, and not one for another, for all contracts, debts, and engagements of such corporation or association accruing while they remain such stockholders, to the extent of the amount of their stock therein at the par value thereof, in addition to the amount invested in such shares.

          The legislature may provide that stockholders of banking corporations organized under the laws of this state which shall provide and furnish, either through membership in the Federal Deposit Insurance Corporation, or through membership in any other instrumentality of the government of the  United States, insurance or security for the payment of the debts and obligations of such banking corporation equivalent to that required by the laws of the United States to be furnished and provided by national banking associations, shall be relieved from liability for the debts and obligations of such banking corporation to the same extent that stockholders of national banking associations are relieved from liability for the debts and obligations of such national banking associations under the laws of the United States.  Stockholders of insurance corporations organized under the laws of this state that furnish, through assessments levied by the board of directors of the Washington life and disability insurance guarantee association or any successor entity authorized by the legislature, security for the performance of the contractual obligations of such corporations shall be relieved from liability for the debts and obligations of such insurance corporations to the extent that such debts and obligations are satisfied by the fund administered by the Washington life and disability guarantee association or any successor entity authorized by the legislature.

BE IT FURTHER RESOLVED, That the secretary of state shall cause notice of the foregoing constitutional amendment to be published at least four times during the four weeks next preceding the election in every legal newspaper in the state.