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CHAPTER VI. .

GENERAL LEGISLATION RELATING ESPECIALLY TO

BUILDING AND LOAN ASSOCIATIONS.

491

CHAPTER VI.

GENERAL LEGISLATION RELATING ESPECIALLY TO BUILDING AND

LOAN ASSOCIATIONS. The laws of the various states and territories, as reproduced in this chapter, are only such general laws as relate especially to, or govern the organization and conduct of building and loan and similar associations, the general laws concerning corporations being omitted; but it is to be borne in mind that such general laws, when not in conflict with the statutes here published, have the same bearing upon building and loan associations as upon other corporations, and they should, therefore, be consulted in case information concerning the laws governing corporations generally is desired.

ALABAMA.

CODE OF 1886.

VOLUME I.

Section 455. Building and loan associations doing business in this state are not required to return, as part of their taxable property, notes and mortgages made and execnted to them by their stockholders or members for purchases, loans, or advauces on stock made at the distribution of the funds thereof, if the stockholders or members obtaining such purchases, loans, or advances pay the tax levied and assessed on the whole value of the property so mortgaged; otherwise, such associations must return for taxation the amount of their capital held by the stockholders or members on such purchases, loans, or advances, and also the average amount of money held by them during the year preceding that for which their assessment returns are made.

SEC. 1553. Three or more persons, associating as a building and loan association, may become a body politic and corporato in the mode, and with the powers and capacity in this chapter expressed; and such corporation may continue for twenty

years.

Sec. 1554. Such persons must file in the office of the judge of probate of the county in which it is proposed the association shall have its principal place of business, a declaration in writing, signed by each of them, stating

1. The name and style under which it is proposed to incorporate such association.

2. The amount of the capital stock, and the number of shares into which it is divided.

3. The naines and residences of the associates or subscribers to the declaration, and the principal place of business of the corporation.

4. The purposes of the corporation and the nature of its business, and such other matters as they may deem desirable.

SEC. 1555. The judge of probate must record such declaration, and must issue to the subscribers, their associates and successors a certificate of incorporation, under the seal of his office, stating therein the filing and record of such declaration, the name and style of such corporation, the location or principal place of business

thereof, and that the subscribers, their associates and successors are a body politic and corporate ; and thereafter such corporation must be deemed duly organized.

SEC. 1556. Such corporation has power

1. To have succession by its corporate name for the period espressed in the declaration, not exceeding twenty years.

2. To sue and be sned; and, if deemed necessary, to have a coinmon scal, and the same at pleasure to alter or change.

3. To hold, purchase, dispose of, and convey such real or personal property as may be necessary for the nses and business of the corporation.

4. To appoint and remove, at pleasure, snch officers and agents as the business of the corporation may require, prescribing their duties and fixing their compensation; and to make all needful rules and regulations and bylaws for the transaction of its business, and the management and control of its affairs.

5. To levy monthly contributions from the shareholders, not to exceed one dollar per share in any one month.

6. To compel payment, and complianco with all lawful orders by fines and forfeitures.

7. To acquire real estate, to erect buildings, and the same to let to any shareholder of the corporation, or to sell to such shareholder on such terms as may be fixed by its bylaws.

8. To aid shareholders in the erection or improvement of houses by loans of the funds of the association, on such security as may be fixed by the bylaws.

9. When funds are on hand, to lend the same to any shareholder of the corporation, on such security, and on such terms and conditions as may be prescribed by the bylaws; but the security shall be a mortgage on real estate sufficient to protect the association.

10. When deemed advisable, or when two or more shareholders desire to borrow funds on hand, the association may lend such fands to the highest bidder; and all shareholders shall have equal opportunities to bid under such regulations as may be prescribed by the bylaws; but no shareholder shall borrow or purchase the loan of more than two hundred dollars for each share held by him.

11. To prescribe uniform sales of monthly instalments, in which the loans made are to be repaid according to the terms agreed on; and if loaned to the highest bidder, according to the terms of the purchase.

12. To secure the payment of instalments and loans, and a compliance with all the terins on which loans are purchased, by mortgages with power of salo on real estate, and the same to foreclose, in case of default, by a public sale to the highest bidder, and by conveyance to the purchaser; and such purchaser need not be a shareholder.

13. In determining the amount of the capital stock of the association, each share shall be valued at fifty dollars.

ACTS OF 1888-89.

ACT No. 24.

SECTION 1. The capital stock of building and loan associations, incorporated under the general laws of this state, may be increased to a sum not exceeding two million dollars by the vote of the persons holding the larger amount in value of the capital stock at a meeting of the stockholders called for that purpose, of which meeting and the purpose for which it is called, thirty days notice must be given by publication for four consecutive weeks in some newspaper published in the town or city in which the corporation is located, and if at snch meeting the persons holding the larger amount in value of the stock vote for such increase, the proceedings of the meeting must be reduced to writing, signed by the president or other head of the

county in which the corporation has its principal p-ace of business. In determining the amount of the increased capital stock of all building and loan associations ineorporated prior to the code of 1876, each share shall be valued at not less than forty nor more than fifty dollars.

ACTS OF 1892–93.

ACT No. 280.

SECTION 1. No building and loan association shall pledge, hypotheeate or transfor any note, bond, mortgage or securites which said association may obtain for money loaned or otherwise. But this section shall not apply to building and loan associations heretofore organized under the laws of this state.

SEC. 2. No building and loan association organized under the laws of any other state, territory or foreign government, shall do business in this state, unless said association shall deposit and continually thereafter keep deposited in trust for all of its members and creditors, with some responsible trust company or the state treasurer, mortgages or other securities received by it in tho usual course of its business amounting in actual valno to the sum of fifty thousand (50,000) dollars; Provided, that any such association as may desire may file with the state treasurer the certificate of the proper state officer of another state, or the president and treasurer of some responsible trust company or trustee, certifying that it has on deposit securities as lierein required. All of the personal obligations of its members taken in the ordinary conrse of its business and secured by first mortgage on real estate, all diviJends, interest and premiums which may accrue on securities held in trust as aforesaid, and all dues or monthly payments which may become payable on stock pledged as security for loans, the mortgage[s] for which are on deposit as herein required, may be collected and retained by the association so depositing such securities or mortgages so long as such association rožnains solvent and faithfully performs all of its contracts with its members. Any sccurities on deposit as herein provided may from timo to time be withdrawn if others of equal value be substituted therefor, but if such company is at the time of withdrawing such securities winding up its business in this stato, then such company nocd only substituto for such securities so withdrawn other securities equal in value to the amount of such company's liabilities in the state at the timo of such withdrawal. Every building and loan association organized in this state or any other state, territory or foreign government, shall pay as a license for doing business in this state the sum of two hundred (200) dollars per annum in lieu of all other licenses and taxation, except as hereinafter provided, into the office of tho stato auditor, who shall deposit tho samo in the state treasury, for the use of the state.

SEC. 3. When by the laws of any other stato, territory or foreign government, any taxes, finos, penalties, license fees, deposits of money or securities, or other obligations, requirements or prohibitions, are imposed upon building and loan associations of this state, doing business in such other state, territory or foreign government, or upon their agents therein, so long as such laws shall continuo in force, the same obligations, requirements and prohibitions of whatever kind shall be imposed npon all building and loan associations of such other states, territories or foreign governmonts doing business in this state, and upon their agents here; Provided, that this section shall not apply to building and loan associations which have heretofore established branches or agencies in this state.

Sec. 4. Building and loan associations, as used in this act, shall include all corporations, societies or loan and investment companies, or all organizations or associatious doing a saving and loan business upon the building and loan plan.

Sec. 5. Any premiums, fines or stock heretofore taken and hereafter taken to represent premiums for loans made by any building and loan association doing business in this state, shall not be treated as interest, nor ronder such association

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