a written acceptance of the provisions of this act, 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 deeds 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 state, and from and 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 increase by the stockholders of such corporation at any regular meeting of stockholders, or at any special meeting called for that purpose. Upon 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 deemed 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 office 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 compliance 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, are hereby legalized and made valid, and all members and contracting parties shall be 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 are repealed: Provided, however, that all rights acquired and any and all acts performed in pursuance of the 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 commenced 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 shall 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 outH. Ex. 209-34

standing shares of stock, less the amount shown by the statement to have been loaned to shareholders upon such mortgage security.

SEC. 859. Neither such association nor the shareholders therein shall be liable to taxation upon the shares of stock issued by such association, except as provided by section 1 [858] 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, organized under 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 association, and of issuing stock or bonds to members, payable 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 statement, under the oath of the president, secretary, and at least three of the directors, showing the name and location of such corporation, association or society, date of incorporation, the names of its officers, the amount of its capital stock, the amount of its capital stock paid in, the amount 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, and 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; the proportion of such dues or assessments credited to the loan fund, expense fund, or other fund; when such assessments or dues are 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 society; and such other information concerning the business of said corporation, association or society as may, 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 act said foreign corporation, association or society shall file with the auditor of state a copy of its act of incorporation, properly authenticated by the officer of the state in which said foreign corporation, association or society is incorporated, a copy of the bylaws and rules governing it, and of each 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 state shall conduct the same in accordance with the laws of this state governing domestic associations. It shall also deposit with the auditor of state one hundred thousand dollars cither 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 foreign corporation, association or society, shall file with the auditor of state a written contract or bond executed 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 notice by mail from said auditor that any such 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 once pay such sum or sums to said auditor and continue 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 auditor shall at once revoke the license of any such foreign corporation, association or society, under sec

pany shall be brought by the state of Indiana on relation of the attorney general of said state, and any judgment recovered against any such surety and guaranty corporation or company shall include one hundred doliars damages and costs of suit, exclusive of such sum or sums of indebtedness in favor of such citizen or citizens, which damages shall be the compensation of said attorney general for recovering such judgment. Such surety and guaranty corporation or company shall agree in writing, filed with the auditor before acceptance by the auditor of its contract or bond, to accept service of process of court by service thereof on the auditor, who shall mail a copy thereof to the office of such corporation or company. And such auditor may, whenever in his judgment he thinks any such contract or bond so filed in his office to be insufficient, request any such foreign corporation, association or society to file a new lond, satisfactory to such auditor, and upon failure to comply with such requirement said auditor shall revoke the license of said foreign corporation, association or society, as provided in said section 4, to do business in this state, and such foreign corporation, association or society shall not be entitled to enforce by legal proceedings any evidence of indebtedness against any citizen or citizens in this state or any mortgage against any property in this state until such requirement has been so complied with. Any sach foreign corporation, association or society shall also file with the auditor a written instrument properly excente, agreeing that a summons may issue against it from any county in the state, and when served upon the auditor of state shall be service upon such foreign corporation, association or society. The auditor shall, however, mail a copy of any papers served upon him, postage prepaid, to the home office of such foreign corporation, association or society.

SEC. 4. Upon compliance with the preceding sections of this act by any such foreign corporation, association or society, and the auditor of state is satisfied that it is doing a lawful and safe business, he may issue to said foreign corporation, association or society a license authorizing it to conduct its business in this state and to solicit subscriptions from the residents of this state to its capital stock. The auditor of state shall have the power, at any time, to revoke said license when said foreign corporation, association or society fails or refuses to comply with any of the provisions of this act, or when any such foreign corporation, association or society shall refuse to permit to be made the examination of the affairs of such foreign corporation, association or society hereinafter provided for, or when, upon examination, the anditor of state shall find that sneh foreign corporation, association er society is not conducting its business in accordance with the law, or that the affairs of such foreign corporation, association or society are in an unsound condition: Provided, that, upon the revocation of said license, said auditor shall cause a notice thereof to be mailed to the home office of such foreign corporation, association or society, and to be published in at least one newspaper published in the city of Indianapolis: And provided further, that after the publication of such notice it shall be unlawful for any agent of such foreign corporation, association or society to receive further stock deposits from members residing in this state, except payments on stock on which a loan has been made.

SEC. 5. The deposit made with the auditor shall be held as security for all claims of residents of this state against said foreign corporation, association or society, and shall be liable for all judgments or decrees thereon. Such foreign corporation, association or society may collect and use the interest on any security so deposited, as required by section three (3) of this act, so long as it fulfils its obligations and complies with the provisions of this act. It may also exchange them for other securities of equal value and satisfactory to the auditor. All securities of cash deposited with the auditor shall be immediately deposited by him with the treasurer of state, who, with his sureties, shall be responsible for the safe keeping thereof. shall deliver such securities only upon written order of the auditor. SEC. 6. Every agent or person engaged, directly or indirectly, in soliciting subscriptions to the capital stock of any such foreign corporation, association or socie

The treasurer

shall first procure from the auditor of state a certificate showing the appointment of such person as such agent of said foreign corporation, association or society, to which certificate the auditor of state shall attach a certified copy of the statement of ondition of such foreign corporation, association or society. It shall be unlawful for such auditor to issue such certificate except upon the filing in his office of a written appointment under the hand of the president and secretary of said foreign corporation, association or society, attested by its corporate seal. Such certificate shall be renewed annually in the month of July of each year.

SEC. 7. The auditor of state shall examine, or cause to be examined, under the provisions of this act, whenever in his judgment it may be necessary for the interests of the shareholders or stockholders of said foreign corporation, association or society residing in this state, every detail of the business of any said foreign corporation, association or society transacting business in this state. Said examination shall be made at the expense of the foreign corporation, association or society examined, and consent to make such examination shall be filed before any certificate authorizing such foreign corporation, association or society shall be granted by said auditor of state.

SEC. 8. Every such foreign corporation, association or society authorized to transact business in this state shall on the first day of July in each year file a report under the oath of its president or secretary, and which shall be certified to by at least three directors, showing the gross amount of assessments, dues, fines, membership fees and all moneys collected by said foreign corporation, association or society from shareholders or stockholders residing in this state during the previous year. Such statement shall also show the amount of money loaned by said foreign corporation, association or society to any of its shareholders or stockholders residing in this state during the previous year. And such foreign corporation, association or society shall pay to the auditor of state, to be by him paid into the treasury of the state, the sum of three dollars ($3) on every one hundred dollars ($100) received by such foreign corporation, association or society from the shareholders or stockholders residing in this state, less the amount actually loaned to the shareholders or stockholders of such foreign corporation, association or society residing in the state.

SEC. 9. Every such foreign corporation, association or society shall, in addition to the report required by section eight (8) of this act, on the first day of July of each year file with the auditor of state a detailed statement showing separately the amount of membership fees, dues, interest, premium, fines, forfeitures, assessments, expense fund, receipts and all other moneys received by it, together with a full showing of amounts paid on loans, withdrawals, losses, salaries, and all other expenses, dividends, interest or any other expenditures; and it shall further show the amount of the assets of said foreign corporation, association or society, the character of such assets, the fair cash value thereof, together with the nature and fair cash value of all securities of such foreign corporation, association or society; and it shall also show the liabilities of such foreign corporation, association or society, and the character of such liabilities; the par value and the amount of dues or assessments chargeable on each share of stock issued by such foreign corporation, association or society; the proportion of such dues or assessments credited to the loan fund, expense fund or other fund; when such assessments or dues are payable; the amount of premium and interest charged on loans made by such foreign corporation, association or society; the rate and amount of interest paid on debenture, paid-up or other stock issued by such foreign corporation, association or society, and such other information concerning the business of such foreign corporation, association or society as may from time to time be required by the auditor of state. SEC. 19. The auditor of state shall charge and collect from such foreign corporation, association or society, for filing the statements and other papers and issuing the certificates required to be filed and issued by this act the same fees as are charged

and collected from insurance companies doing business in this state, and are chartered and incorporated under the laws of the state in which such foreign corporation, association or society is incorporated.

Szc. 11. The auditor of state shall cause to be printed once in the two papers having the largest general circulation published in the city of Indianapolis the annual statements of such foreign corporation, association or society required to be filed in bis office by section nine (9) of this act. The cost of such publication shall be paid by such foreign corporation, association or society.

SEC. 12. Any person or persons who, cither directly or indirectly, shall solicit subscriptions to the capital stock of any such foreign corporation, association or society, or act as agent for any such foreign corporation, association or society, without first procuring the certificate required in section six (6) of this act, shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be fined in any sum not exceeding five hundred dollars ($500), to which may be added imprisonment in the county jail not exceeding thirty (30) days.

SEC. 13. Immediately upon taking effect of this act every corporation, association or society organized under the laws of the state of Indiana, and conducting the business of a building, loan fund, savings or investment association, shall file with the auditor of state a statement of the condition at the close of its last fiscal year, which statement shall contain the same matter required in the statement provided for by section one (1) of this act; and thereafter such corporation, association or society shall in the month of July of each year file in the office of the auditor of state a statement of its condition at the close of business on the 30th of June preceding. Such statement shall be under the oath of the president and secretary and at least three directors of such corporation, association or society, and such statement shall contain the information prescribed in section nine (9) of this act, and such other matter as may be prescribed by the auditor of state. And every such corporation, association or society shall file in the office of the auditor of state copies of its bylaws and rules, and copies of each of the several kinds of certificates, the certificates issued to its shareholders or stockholders. For filing each of such statements and the services pertaining to the examination thereof the auditor of state shall charge and collect from each of said corporations, associations or societies a fee of five dollars ($5). And out of the fees so derived he shall pay all additional clerk hire which may be necessitated by the passage of this act, and, except for such clerk hire, the disposition of fees paid into the office of the auditor of state under this act shall be governed by the provisions of section 18 of the fee and salary act of March 9, 1891.

SEC. 14. If it appears from any such statement that any such corporation, association or society, organized under the laws of this state, is doing an illegal or unsafe business, the auditor of state may make or cause to be made under the provisions of this act, an examination into the affairs of such corporation, association or society; or when upon petition of any shareholder or shareholders, setting forth that such petitioner or petitioners believe said corporation, association or society to be conducting its business contrary to law, or that its affairs are in an unsound condition, or that they believe any of its statements are not correct, then said auditor of state shall make, or cause to be made, an examination into the affairs of such corporation, association or society: Provided, that any such shareholder or shareholders, before such auditor shall make such examination, shall file with such auditor a bond to his approval, conditioned if such examination shall disclose that such corporation, association or society so examined is doing a lawful business, then such shareholder or shareholders will pay all costs of such examination as are hereafter provided for in this section. Such examination shall be full and complete, and in making the same the examiner may put any officer of any such corporation, association or society, or any other person, under oath to answer truthfully any questions that may be asked them; and all the books, papers and records of such corporation,