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a certified copy thereof shall bo evidence of the contents thereof; and the persons who shall have signed and acknowledged such certificate, and their successors, shall be a body politic and corporate, and in their corporate name way contract, sue, and be sued, and may hold and convey real estato and personal property as liereinafter provided. Tho business of the association shall be managed by a board of directors, who shall be stockholders of the association, and who shall be selected by the stockholders as the bylaws of tho association may provide.
Sec. 842. Tho corporation shall have the power and franchise of loaning or advaneing to the stockholders thereof, at interest not exceeding the legal contract rate at the time, the moneys of tho association accumulated from time to time, and the power and right to secure the repayment of such money and the performance of other conditions upon which the loans are made, by noto or bond and mortgage, or upon note or bond secured by stock of the association or personal security, as well as the power and right to purchase real estate and improve the same, and to sell, convey, lease or mortgage the saine, at its pleasure, to its stockholders or others for the benefits of the stockholders, or to loan the moneys of the association to others than its stockholders, at a rate of interest not exceeding the legal contract rate of interest, upon good and amplo real estato or personal security, for the benefit of its stockholders, when there is no demand for loans on the part of the stockholders. The premiums taken by such association for the preferenco or priority in procuring loans made to stockholders shall not be deemed usurious, and in case of non-payment of instalments upon stock, or interest or premium by borrowing stockholders, for three months, payment of principal, premium and interest (without deducting the premium or interest paid) may be enforced by proceedings on their securities according to law.
Sec. 843. The capital stock of any corporation created by virtue of this act shall at no time consist in the aggregate of more than one millior. dollars, to be divided into shares of such denomination, not exceeding five hundred dollars each, as the bylaws of the association may prescribe: Provided, that the capital stock may be issued in-series; but the stock in any such series shall not at any time exceed in the aggregate ono hundred thousand dollars; tho instalments in which the stock is to be paid, the times and placo of payment, shall be as the bylaws may provide; but no periodical payment of such instalment shall be required exceeding fifty cents per week on each one hundred dollars of stock; the stock may be paid off and retired as the bylaws may provide. Every sliare of stock shall be subject to a lien for the payment of unpaid instalments and other charges incurred thereon under the provisions of tho constitution and bylaws; and the bylaws may prescribe the form and inanner of enforcing such lien. In lieu of the shares withdrawn, forfeited, retired, or expired, new stock may be issued in one or in successive series, and in such amounts as the board of directors conformably to the bylaws may determine; bnt at no time shall the outstanding stock in any series exceed one hundred thousand dollars, nor of the association excceil one million dollars, or its capital as fixed by the certificate of incorporation. Any stockholder wishing to withdrav from such corporation may do so upon three months' notice given to the board of directors, when such withdrawing stockholder shall be entitled to receive the amonnt paid in upon the stock to bo withdrawn, less all fines and other charges thereon: Provided, that when the withdrawal occurs after the expiration of one year from the beginning of the series in which the stock to be withdrawn was issued, he shall receive in addition to the amount paid in, less fines and other charges as aforesaiil, at least legal interest on each instalment paid from the date at which the samo was payable: Provided, that at no time shall more than one-half of the funds in the treasury be applicable to demands of withdrawing stockholders, unless the board of directors in its discretion shall order otherwise, and the board may, in its discretion, waivo the notice herein before required as to any withdrawal;
legal representatives of any deceased shall be entitled to receive the full amount paid in by his decedent, with legal interest thereon, from the dates at which the same was payable, after deducting all fines and charges thereon. No fino shall be charged to a deceased member's account for any default oecurring after his death, anless the legal representatives of the decedent shall have assumed the future payments on the stock.
Sec. 814. The number, function, qualifications and compensation of tho officers of any such corporation, their terms of office, the times of their election, as well as the qualifications of the electors, and the votes and manner of voting, and the periodical meetings of such corporation, shall be determined by the bylaws of such association when not provided by this act.
SEC. 815. The directors shall hold stated meetings, at which the money in the treasury, if orer the amount fixed in the constitution or bylaws as the full value of a share, shall be offered for loan in open meeting. The bylaws of the association shall prescribe the manner of awarding loans to its members, the time or times when the premium, if any, shall be paid, the rate of interest to be charged not exceeding the then legal contract rato, and the time when the interest shall be paid, whether monthly or guarterly in advance; or such association may provide in its bylaws that the loans shall be made to the members of the association who shall bid the highest premiums for the preference or priority in procuring loans (the premium to bo payable at one time or [in] instalments), which member so bidding shall be entitled to receiro a loan of not more than the amount fixed by the constitution and bylaws as the full value of a share for cael share of stock held by him and then and there bid off. The premium shall bo bid as of so much per share: Provided, that a stockholder may borrow such fractional part of the amount fixed by the constitution and bylaws as the full value of a share as the bylaws may provide. Good and ample real estate or personal security, as prescribed by the bylaws of the corporation, shall bo given by the borrower, or in his behalf, to secure the repayment of the loan with interest, and also for the payment of the dues, unpaid premiums, if any, fines and charges that may be assessed upon the stock upon which the loan is made. In case the borrower shall neglect to offer security, or shall offer security that is not approved by the board of directors, by sach time as tho bylaws shall prescribe, he or she shall be charged with legal interest, as prescribod in the bylaws, together with any expense ineurrel, and the loss, if any, on a resale, and the money may bo resold at the next state meeting. In case of non-payment of instalments or interest, or unpaid premium; if any, by borrowing stockholders for the space of threo months, payments of principal, interest, unpaid premiums, if any, and fines, without deducting premiums of interest paid, may bo onforced by proceedings on their securities according to law.
Sec. 816. A borrower, who is not in arrears for ducs, interest, premiums, fincs, or assessments, may ropay his loan at any time, and may at the same time withdraw from the association, and for that purpose he shall pay to the association, or to the officer authorizeil to receive the same, the fall face amount of the principal of his loan, less the amount by him paid to said association as dues on his stock, with interest on snch payments from the time they were made, at not less than the same rate per cent per annum that ho has paid to the association as interest upon his loa:), and less so much of tho pro:nium or discount paid by him on his loan for the priority theroof as shall bear tho samo proportion to the wholo promiam by him paid, which the unexpired time for which the loan was made bears to the whole time for which the loan was madlo; and on such payment being made, the stock held by such person upon which his loan was made, shall be surrendered to the association and shall be cancelled; and thereupon the proper officer of such association shall immediately deliver to such borrower his note, or bond and mortgage, or other evidence of such loan, and shall also enter of record a full satisfaction of such mortgage, which entry shall be a complete extinguishment of such mortgage and the debt thereby secured.
Sec. 847. No premiums, fines, or interest on such premiums that may accrue to said
corporation, in addition to interest on any loan made by it, according to the previsions of this act, shall bo decmed usurious, and the same may be collected as debts of liko amount are now, by law, collected in this state.
Sec. 818. No corporation or association created under this act shall cease or expire from neglect on the part of the corporation to elect directors or officers at the time mentioned in its bylaws, and all directors and officers clected by such coroporation shall continno in office until their successors are duly elected.
SEC. 819. Any corporation organized under this act, and those incorporated prior thereto, are hereby authorized and empowered to purchase, at any sheriff's or other judicial sale, or at any other sale, public or private, any real estate upon which such corporation may have or hold any mortgage, judgment, lien, or other incumbrance, or in which such corporation may have an interest; and the real estato so purchased, and any other that such corporation may hold or be entitled to at the passage of this act, it may sell, convey, lease or mortgage, at pleasure, to any person or persons whatever; and all sale[s] of real estate heretofore made by any such corporation to any person or persons are hereby confirmed and made valid.
Sec. 830. All such corporations shall have full power to purchase real estate and to sell and convey the same, or any part thereof, to their stockholders or others in full feo simple, but the quantity of land purchased by any ono of such corporation shall not, in tho whole, at any ono time, exceed fifty acres; and in all cases such real estate shall be disposed of within ten years from the purchase of the same.
SEC. 851. All such corporations shall have power to charge, in addition to the amounts heretofore provided by this act, a sum not exceeding twenty-five cents per month upon each share of stock, for the purpose of defraying the expenses of the association, which sum shall be payable with the regular instalment; to make assessments upon the capital stock to cover losses; and shall also have power to provide in their bylaws for the charge and collection of fines and penalties from delinquent stockholders for non-payment of instalments of dues, interest, premiurs and charges; also, to provide in their bylaws for the forfeiture of all the rights and immunities in the association of such delinquent members after a default of three months to pay instalment of dues, interest, premiums, charges or fines, and also to provide, in case of a borrower of money from such association shall fail and negleet to pay his instalments of dues, fines, charges, interest or premiums, for a period of three months from the time the same shall become due and payable, that such failure and neglect shall work a forfeiture of all his rights and immunities, and the whole sum loaned to bim by such association shalı, at its option, become immediately due and payable, and may be collected, together with all fines, instalments. of dues, interest and premium, if any, then unpaid.
Sec. 852. Infants may become stockholders in any corporation organized under this act the same as adults, and such infant stockholder[s] shall be subject to the samo duties and liabilities as respects their stock as adult members. Any receipt, release, acquittance or discharge given to the corporation by an infant stockholder shall be binding upon the intant to the same extent as if such infant were of full age.
Sec. 853. When, in case of any loan made by any such corporation, the borrower, or any other person furnishing security in behalf of the borrower, shall, as an inducement to the corporation to make the loan, represent to it in writing that he or she is over tho age of twenty-one years, whereas in fact such person so representing is under lawful age and the association is thereby deceived, and the loan is upon such representation made, neither such person so representing nor any one in his or her behalf shall afterwards bo allowed as against said corporation to take advantage of the fact that he or she was not of full age, but such person shall be estopped by such representation,
SEC. 854. Any such corporation organized prior to the taking effect of this act, under any preexisting statuto of this state, may accept the provisions of this act by
a written acceptance of the provisions of this aet, which acceptance shall be signed by the president of such corporation and attested by its secretary, and shall, on behalf of the corporation, be acknowledged by the same officers, before some officer authorized to take acknowledgments of dooils conveying real estate; and a duplicate of such written acceptance, executed and acknowledged as aforesaid, shall be filed in the office of the secretary of stato, and from an after such filing, such corporation shall have all the powers hereby granted and shall be subject to the provisions of this act.
SEC. 855, (as amended by chapter 166, acts of 1893). Any building, loan fund and saving association organized, or which may hereafter be organized under the laws of this state, may increase its capital stock to any sum not exceeding two million dollars ($2,000,000) upon the passage of a resolution for such increaso by the stockholders of such corporation at any regular meeting of stockholders, or at any special meeting called for that purpose. l'pon a certified copy of such resolution, under the hand of the chairman of such stockholders' meeting and of the secretary of such meeting being filed in the office of the recorder of the county where the corporation is located, and a like copy in the office of the secretary of state, and the payment of the fees required by law for such increase, the authority to issue the stock as thus increased shall be deemeil complete.
SEC. 856. All building, loan fund and savings associations, legally organized or attempted to be organized under any statute of this state, shall not be deemed or held invalid by reason of the failure to have recorded in the recorder's office of the county wherein such association is located the articles of association before commencing business; but where the articles of association shall have been properly filed in the offico of the secretary of state before commencing business, it shall be deemed and held to have been a sufficient compliance with the law; or when either of said acts have been done and not the other, the same shall be taken and held as a substantial and valid comp.iance with the law on the subject of organizing such association; and when the articles of such association have, since the commencement of business thereof, been recorded in the recorder's office of the county wherein the association is located, or the same has been filed in the office of the secretary of state, or where such omitted act shall hereafter be done as directed by law, the same shall be held and taken as a substantial compliance with the law organizing building, loan fund and savings associations; and all acts of the original directors, and their successors, and of the officers of such association, and all business done, loans made, mortgages taken, moneys collected and disbursed in pursuance of the law in such cases, and in compliance with the constitution and bylaws of such association, aro hereby legalized and made valid, and all members and contracting parties shall bo deemed and held to be fully bound by their contracts with such association.
SEC. 857. All acts in conflict with the provisions of this act aro repealed: Prorided, howerer, that all rights acquired and any and all acts performed in pursuance of tho provisions of any act so repealed are saved from the effects of such repeal, and all building, loan fund and savings associations or corporations which have commenceel proceedings under said acts, or any of them, may proceed according to the provisions of this act.
SEC. 858. On or before the first day of June of each year, the secretary of every building, loan and savings association sball file with the auditor of the county in which such association was organized, a duplicate statement, verified by said secretary, showing the amount paid into said association by shareholders upon shares of stock issued by it up to the first day of April preceding and then outstanding, and also the amount loaned, up to said date, to shareholders, and secured by mortgage upon real estate. And such auditor shall deliver said statement to the proper assessor, who shail proceed to assess said association for taxation with the amount shown to have been paid into said association up to said first day of April upon out
H. Ex. 209-34
standing shares of stock, less the amount shown by the statement to have been loaned to shareholders upon such mortgage socnrity.
Sec. 839. Neither such association nor the shareholders therein shall be liable to taxation upon the shares of stock issnel by such association, except as provided by section 1  of this act, and all laws in conflict herewith are hereby repealed,
ACTS OF 1893.
CHAPTER 121. SECTION 1. It shall be unlawful for any corporation, association or society, orgazized nnder the laws of any state (other than the state of Indiana), or of any government foreign to the government of the United States, to conduct or engage in the business of a building, loan fund, savings or investment cssociation, and of issuing stock or bonds to members, payablo in weekly, monthly or yearly instalments or assessments, agreeing to pay thereon dividends or profits, or interest, or to pay off bonds by number consecutively or otherwise, without having first filed in the office of the auditor of state a statoment, uuder the oath of the president, secretary: and at least three of the directors, showing the name and location of suel corporation, association or society, date of incorporation, the names of its ofticers, the amount of its capital stock, the amount of its capital stock paid in, the amonnt of the assets of said corporation, association or society, the character of such assets and the fair cash value thereof, together with the fair cash value of all the securities held by such corporation, association or society; the liabilities of such corporation, association or society, anıl the character of such liabilities; the par value and the amount of dues or assessments chargeable on each share of stock issued by such corporation, association or society; tho proportion of such dues or assessments crolited to the loan fund, expense fund, or other fund; when such assessments or dnes aro payable; the amount of premium and interest charged on loans made by such corporation, association or society; the amount of interest paid on debenture, paid?-up or other stock issued by said corporation, association or socicty; and such other information concerning the business of said corporation, association or society as way, from time to time, be required by said auditor of state.
SEC. 2. In addition to the statement required by section one (1) of this aet said foreign corporation, association or society shall filo with the auditor of state a copy of its act of incorporation, properly anthenticated by the officer of the stato in which said foreign corporation, association or society is incorporated, a copy of the bylaws and rules governing it, and of cach of the several kinds of the certificates issued to its shareholders or stockholders.
Sec. 3. Every such foreign corporation, association or society doing business in this stato shall conduct the same in accordance with the laws of this stata gorerning domestic associations. It shall also deposit with the auditor of state one hundred thonsand dollars either in cash or bonds of the United States, or of any state of the United States, or any county or municipal corporation in the state of Indiana, satisfactory to the auditor, or in lieu of any such deposit, any such foreige corporation, association or society, shall file with the auditor of state a written contract or boud executod by a responsible surety and guaranty corporation or company to the approval of the auditor of state, by which contract or bond said surety and guaranty corporation or company shall agree that upon notico by mail from said auditor that any snch foreign corporation, association or society is indebted to any citizen of the state of Indiana in any sum or sums, which indebtedness it refuses to promptly pay, that it will at onco pay such snm or sums to said auditor and continuo so to do from time to time until such payments shall equal one hundred thousand dollars; and upon failure to make such payment or payments, then such anditor shall at once revoke the license of any such foreign corporation, association or society, under sec