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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 inembers, 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 vind 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.
The laws of this territory contain no general legislation relating especially to building and loan associations.
DIGEST OF 1884.
SECTION 5644. Tho 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. SEC. 5645, (as amended by section 17 of act 92, acts of 1887).
Mutual loan [and] building
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 tho month 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.
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 soctions 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, lold, 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, er conveyed to it in trust, to secure money loaned or to secure the purchase price thereof in pursuance of the regnlar business of the corporation.
re. 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 sams of money due to them arising from subscriptions or payments, and the propertion of the profits such withdrawing members may receive on withdrawal.
Sre'. 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 finazcial affairs thereof, comprising a balance sheet, statements of receipts and expenditures, profit and loss, and assets and liabilities, which must be andited and veritieil by two competent persons (not direetors), elected by the general body of shareholders, and be countersigned by the president and secretary. A copy of such statement must be printed and circulated among the members, and appear imardiately 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 incorporate! 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 npon by two-thirds of the members of each of such bodies present at general mectings 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 asseciations, 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 stocklolders; the accumulation of savings; the loaning to its stockholders of the funds so accumuJated, with the profits and earnings; and tho repayment to each stockholder of his savings and profits, when they have accumulated to a certain snm, 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.
Src. 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. Sneh 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, opon each share of stock hell by him, sneh an amount of dnes as the bylaws shall provide; and the payment of dues shall so continue on cach share of stoek issued till it reaches its matured value,
accamlated dues, together with the earnings and profits of the corporation, and shall in no case exceed two million dollars, except as to corporations now existing. It shall be divided into shares of matured or par value of one hundred dollars, or two hundred lollars each, as shall be provided in the articles of incorporation and fixed by the hylaws. Certificates of stock shall be issued to each stockholder on the first pagment of dues by him. The shares shall be issued in yearly, half-yearly, or quarterly series, except in corporations now existing, in such amounts in cach series, and at such times, as shall be determined by the board of directors. «No share of a prior series shall be issued after the issuing of shares in a new series. Shares which have not been pledged as a security for the repayments of a loan shall be called free shares. Shares that have been so pledged shall be called pledged shares. All stock naturel and surrendered or cancelled in any series shall become the property of the corporation, and may be issued in any subsequent series. Payment of dues on shares of stock in each series shall commence from the time that shares began to be issued in such series. Any such corporation shall have power by its bylaws to impose and collect a fine from each stockholder not exceeding ten per cent of the defanlted amount, for every neglect or refusal to make his payments of dues, or premium, or interest, when due, and to impose and collect a like fine successively on crery regular payday during such default. Every such corporation hereafter formed shall also have power to charge an entrance fee upon each share of stock issued, not exceeding ten cents on each share, and may also charge a transfer fee not exceeding ten cents on each sharc, all of which shall be paid into the treasury and accounted for as all other funds of the association; Provided, that building and loan associations heretofore incorporated may continue to charge and dispose of such entrance and transfer fees as are prescribed by the bylaws of such corporation. Payment of dues or interest may be made in advance, but no association shall allow interest on such advance payments at a greater rate than six per cent per annum, nor for a longer period than one year.
SEC. 635, (added by chapter 174, acts of 1891). The directors may, at their discretion, under the regulations prescribed in their bylaws, retire the free shares of any series of stock, at any time after four years from the date of their issue, by enforcing the withdrawal of the same; but whenever there shall remain in any series, at the expiration of five years after the date of its issue, an excess above one hundred free shares of the par value of two hundred dollars each, or two hundred free shares of the par value of one hundred dollars each, then it shall be the duty of the directors to retire annually twenty-five per centum of such excess existing at said expiration of five years after the date of its issue, so that no more than one hundred free shares shall remain in such series at the expiration of nine years from the date of its issue; Prorided, that no more than one-half of the monthly receipts be used for that purpose; and thereafter the directors may, in their discretion, retire such other free shares as they consider to the best interest of the association to retire; Provided, that whenever, under the provisions of this section, the withdrawal of shares is to be enforced, the shares to be retired shall be determined by lot, drawn from all free shares in the series, as shall be regulated by the bylaws, and the holders thereof shall be paid the amount actually paid in, and the full amount of earnings at the date of last apportionment of profits.
Sec. 636, added by chapter 174, acts of 1891). When the stock in any series shall have reached its matured value, payment of dues thereon shall cease, and all of the stockholders in such series who have borrowed from the association shall be entitled to have their securities returned to them, and a satisfaction of the mortgages made by them to the association; and the holders of free shares of stock in such series shall be paid out of the funds of the association the matured value thereof, with such rate of interest as shall be determined by the bylaws, from the time the board of directors shall declare such share to have matured until paid; but at no time shall more than one-third of the receipts of the association be applicable to the payment
of matured shares, without the consent of the board of directors. The order of the payment of the matured shares shall be determined by the bylaws.
SEC. 637, (added by chapter 174, acts of 1891). The moneys in the hands of the treasurer, and such sums as may be borrowed by the corporation for the purpose, shall be loaned out in open meeting to the member who shall bid the highest premium, or may be loaned at such premium as may be fixed, from time to time, by the board of directors; and the preminm may be deducted from the amount of the loan, or such proportion may be deducted as the bylaws shall provide, and in that case the balance of said premium shall be payable in such instalments as the bylaws sball determine; Prorided, howerer, that where the premium is payable in instalments, the number of instalments into which the same is divided shall be uniformly applicable to all loans made by the corporation, and shall be payable at the times and in the manner as provided in the bylaws; And prorided further, that in no case shall the amount loaned exceed the matured value of the shares pledged to secure the loan.
SEC. 638, (added by chapter 174, acts of 1891). The rate of interest on all loans may be fixed by the bylaws, but in case the bylaws fail to fix the rate, then it shall be fixed from time to time by the board of directors. For every loan made, a note or obligation secured by a first mortgage upon unencumbered real estate shall be given, accompanied by a transfer and pledge to the association of the shares borrowed upon, as collateral security for the repayment of the loan; or, in lieu of the mortgage, there may be pledged and transferred to the association for the payment of the loan free shares, the withdrawal value of which, under the bylaws, at the time of such borrowicg, shall exceed the amount borrowed and interest thereon for six months. At the discretion of the board of directors, a borrower may repay a loan, and all arrears of interest and fines thereon, at any time, upon the surrender of the shares pledged for the loan.
SEC. 639, (added by chapter 174, acts of 1891). Whenever any member shall be six months in arrears in the payment of his dues upon free shares, the secretary shall give him notice thereof, in writing, and a statement of his arrearages, by mailing the same to him at the last post office address given by him to the association, and if he shall not pay the same within two months thereafter, the board of directors may, at their option, declare his shares forfeited; and at the time of such forfeiture the withdrawal value thereof shall be determined and statod, and the defanlting member shall be entitled to withdraw the same without interest, upon such notice as shall be required of a withdrawing shareholder. Whenever a borrowing member shall bo six months in arrears in the payment of his dues, or interest, or premium, the whole loan shall become due, at the option of the board of directors; and they may proceed to enforce collection upon the securities held by the association. The withdrawal value, at the time of the commencement of the action, of all shares pledged as collateral security for the loan, shall be applied to the payment of the loan, and said shares, from that time, shall be deemed surrendered to the association.
SEC. 640, (added by chapter 174, acts of 1891). Any such association may purchase at any sale, public or private, any real estate upon which it may have a mortgage, judgment, lien, or other incumbránce, or in which it may have an interest; and may sell, convey, lease, or mortgage the same at pleasure to any person or persons.
SEC. 641, (added by chapter 174, acts of 1891). Any association organized in pursuance of the provisions of this act may borrow money for the purpose of making loans or paying withdrawals.
SEC. 642, (added by chapter 174, acts of 1891). Profits and losses shall be apportioned at least annually, and shall be apportioned to all the shares in each series outstanding at the time of such apportionment, according to the actual value of such shares as distinguished from their withdrawal value.
SEC. 613, (added by chapter 174, acts of 1891). Any person of full age and sound