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 expressed in the declaration, not exceeding twenty years. 2. To sue and be sued; and, if deemed necessary, to have a common 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, such 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 compliance 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 funds 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 terms on which loans are purchased, by mortgages with power of sale 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 such 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 pace of business. In determining the amount of the increased capital stock of all building and loan associations incorporated 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, hypothecate or transfer 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 the usual course of its business amounting in actual value 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 herein required. All of the personal obligations of its members taken in the ordinary course of its business and secured by first mortgage on real estate, all dividends, 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 remains solvent and faithfully performs all of its contracts with its members. Any securities on deposit as herein provided may from time 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 state, then such company need only substitute for such securities so withdrawn other securities equal in value to the amount of such company's liabilities in the state at the time 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 the state auditor, who shall deposit the same in the state treasury, for the use of the state. SEC. 3. When by the laws of any other state, territory or foreign government, any taxes, fines, 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 continue in force, the same obligations, requirements and prohibitions of whatever kind shall be imposed upon all building and loan associations of such other states, territories or foreign governments 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 associations 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 render such association amenable to the laws relating thereto; but the said premiums, fines and stock taken to represent premiums, shall be collected as debts of like amount are now collected by law, and according to the terms and stipulations of the agreements or contract between the association and its members, and in case of any building and loan association which does not, under its methods, charge premiums of the borrower, it shall not be deemed usury that the payments shall be required monthly, when the contract on its face charges only 6 per cent interest. SEC. 6. Every building and loan association doing business in this state shall be assessed for and pay taxes upon its office fixtures and furniture, and all real estate acquired in the usual course of its business. SEC. 7. All the officers at the home office of any building and loan association governed by this act, and doing business in this state, who handle any of the funds of such associations, shall give sufficient bonds for the faithful performance of their duties as the board of directors may require, and no such officer shall be deemed qualified to enter upon the discharge of the duties of his office until his bond is approved by the board of directors. SEC. 8. This act shall not apply to any building and loan association organized under the laws of this state which confines its loaning and business operations wholly to its county. SEC. 9. Any building and loan association doing business in this state without hav. ing first complied with the provisions of this act, shall be fined not less than one hundred (100) dollars, and not more than five hundred (500) dollars, to be recovered by an action in the name of the state, and on collection paid into the state treasury for the use of the state; Provided, that building and loan associations organized in other states and territories having heretofore transacted business in this state, and not desiring to comply with the provisions of this act, shall have the right to wind up their business and fulfil their contracts with citizens of this state through their authorized agents, without being subject to the penalties herein provided. SEC. 10. All building and loan associations organized in other states and territories and doing business in this state before the passage and approval of this act, shall have until the 1st day of June, 1893, to comply with the provisions of this act. ARIZONA. The laws of this territory contain no general legislation relating especially to building and loan associations. ARKANSAS. DIGEST OF 1884. SECTION 5644. The shares of stocks of mutual loan and building associations shall be assessed at their cash value, but only the unredeemed shares of such stock, or those not transferred to the association, shall be taxed, and such unredeemed shares shall be listed in the name of the individual owners thereof. loan [and] building # Mutual SEC. 5645, (as amended by section 17 of act 92, acts of 1887). companies, corporations or associations, incorporated under the laws of this state, or under the laws of any other state, and doing business in this state, in addition to the other property required by this act to be listed, shall, through their president, secretary, principal accounting officer or agent, annually, during the mouth of July, make out and deliver to the assessor of the county where said company or corporation is located or doing business a sworn statement of the capital stock, setting forth particularly: 1. The name and the location of the company or association. 2. The amount of capital stock authorized, and the number of shares into which 3. The amount of capital stock paid up, its market value, and, if no market value, then the actual value of the shares of stock. 4. The total amount of all the indebtedness, except indebtedness for current expenses, excluding from such indebtedness the amount paid for the purchase or improvement of the property. 5. True valuation of all tangible property belonging to such company or corporation; such schedule shall be made in conformity to such instructions and forms as may be prescribed by the auditor of public accounts. SEC. 5646, (as amended by section 18 of act 92, acts of 1887). The assessor shall, annually, at least ten days before the thirtieth day of June, deliver to the president, secretary, accounting officer or agent of any such company, corporation or association located in or doing business in such county a notice in writing to return such schedule by the thirty-first day of July next ensuing. Any president, secretary, principal accounting officer or agent, of any such companies or corporations, upon whom such notice shall have been served, wilfully neglecting or refusing to make such return by the thirty-first day of July next ensuing, after the delivery of said notice, shall be guilty of a misdemeanor, and, upon conviction, shall be fined in any sum not exceeding one hundred dollars, or imprisoned not exceeding three months, or both, and the assessor shall, from the best information he can obtain, make out and enter upon the proper assessment roll a list, with the valuation, of all tangible and intangible property belonging to such defaulting company or corporation subject to taxation by the provisions of this act, with fifty per cent penalty. CALIFORNIA. DEERING'S CODES AND STATUTES OF 1885. VOLUME II.-CIVIL CODE. [NOTE.-Sections 639 to 647 inclusive, following, have been repealed by chapter 174 of the acts of 1891 except so far as the said sections relate to and govern building and loan associations existing prior to the passage of said chapter.] SECTION 639. Corporations organized for the erection of buildings and making other improvements on real property may raise funds in shares not exceeding two hundred dollars each, payable in periodical instalments. Such bodies are known as land and building corporations, and may be organized with or without a capital stock. SEC. 640. Any such corporation may borrow money for the purpose of carrying out its objects, and may give as security therefor its shares or mortgage upon its real estate. SEC. 641. Any such corporation may purchase real estate and erect buildings for its members, and make loans to its members for the purpose of aiding them in acquiring and improving real estate. Such loan must in all cases be secured on such real estate. SEC. 642. Such corporation may insure, in some life insurance company incorporated under the laws of this state, the lives of its members and debtors. In case of the death of a debtor or member so insured, the amount recovered on the policy must be applied to extinguish the indebtedness, including the premium paid, and the residue, if any, must be paid to the legal representatives of the decedent. SEC. 643. Any such corporation may purchase, hold, and convey real estate as follows: 1. The lot and building in which the business of the corporation is carried on, the cost of which must not exceed twenty thousand dollars; 2. Such as may from time to time be necessary to supply the wants of its members, the cost of which, held unallotted to the members thereof at any one time, must not exceed the sum of one hundred thousand dollars; H. Ex. 209-32 3. Such as shall have been mortgaged, pledged, or conveyed to it in trust, to secure money loaned or to secure the purchase price thereof in pursuance of the regular business of the corporation. SIC. 644. The bylaws of such corporations must specify the amount of the periodical subscriptions or payments to be made by each member, the time and manner in which such payments are to be made; the fines and forfeitures for default; the time and manner of election of directors and other officers, and their terms of office; the manner in which the real estate may be distributed, allotted, or sold to its members; the terms and conditions upon which loans may be made to its members and by them repaid to the corporation; the manner in which a person may become and cease to be a member; the conditions on which members may withdraw from the corporation, and the provisions for the payment to withdrawing members of the sums of money due to them arising from subscriptions or payments, and the proportion of the profits such withdrawing members may receive on withdrawal. SEC. 615. The secretary of any such corporation must, once in each year during the existence of the corporation, prepare a full and explicit statement of the financial affairs thereof, comprising a balance sheet, statements of receipts and expenditures, profit and loss, and assets and liabilities, which must be audited and verined by two competent persons (not directors), elected by the general body of shareholders, and be countersigued by the president and secretary. A copy of such statement must be printed and circulated among the members, and appear imunediately after the annual meeting of the corporation daily at least one week, or weekly at least four weeks, in one or more newspapers published at the place of the principal business of the corporation. SEC. 647. Any two or more such corporations may unite and become incorporated in one body, with or without any dissolution or division of the funds of such corporation, or either of them; or any such corporation may transfer its engagements, funds, and property to any other such corporation, upon such terms as may be agreed upon by two-thirds of the members of each of such bodies present at general meetings of the members, convened for the purpose by notice, stating the object of the meeting, sent through the post office to every member, and by general notice, appearing daily at least one week, or weekly at least two weeks, in some newspaper published at the place of the principal business of the corporation; but no such transfer can prejudice any right of any creditor of either corporation. SEC. 633, (added by chapter 174, acts of 1891). Corporations may be formed subject to the provisions of this title, and with all the rights, duties, and powers herein specified. Such corporations shall be known as mutual building and loan associations, and the words "mutnal building and loan association" shall form part of the name of every such corporation. The articles of incorporation, in setting forth the purposes for which the corporation is formed, shall state that it is formed to encourage industry, frugality, home building, and savings among the stockholders; the accumulation of savings; the loaning to its stockholders of the funds so accumulated, with the profits and earnings; and the repayment to each stockholder of his savings and profits, when they have accumulated to a certain sum, or at any time when he shall desire the same, as provided in the bylaws, or when the corporation shall desire to repay the same; and shall also state that it is formed for all the purposes specified in this title. SEC. 634, (added by chapter 174, acts of 1891). The capital stock of such corporations shall be paid in by the stockholders in regular, equal, periodical payments, at such times and in such amounts as shall be provided in the bylaws. Such periodical payments shall be called dues. And at or before a time to be stated in the bylaws, each stockholder shall pay to the corporation, upon each share of stock held by him, such an amount of dues as the bylaws shall provide; and the payment of dues shall so continue on each share of stock issued till it reaches its matured value, |