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PAR. 1425. All corporations heretofore incorporated under the laws of the state of Kansas, for the purpose of accumulating and loaning funds to members, or that have been so accumulating and loaning funds to members, are hereby recognized and confirmed as legal and valid corporations from the date of their incorporation or the time they commence to accumulate and loan to members; and all contraets made botween them and their members, all loans made at whatsoever premium, discount or interest, and all securities taken for such loans, are hereby declared legal, valid and binding on all parties concerned or affected thereby, or having notice thereof.
Par. 1426. All associations organized under the general corporation laws of this state for the purpose of accumulation and loan of funds, the erection of buildings, and the purchase and sale of real estate for the mutual benefit of their members, shall be permitted to conduct such business with its members exclusively, and may receive money in payment for its shares of stock in such manner and upon such terms as are prescribed by its bylaws; may receive money on loan or on deposit, and may lend money to its members on the security of United States bonds or bonds of the state of Kansas, the stock of such association, or real estate, which loans shall be repaid in such stated periodical instalments as are prescribed in the bylaws, and all contracts between such associations and their members shall be deemed valid and binding in law: Provided, that the sum of all the repayments agreed to be made by the borrower, for the whole time for which he receives his loan, shall not exceed the actual amount of monoy borrowed, with interest thereon at twelve per cent per annum for the whole time for which it was so borrowed.
Par. 1427. Whenever, by reason of default in payment of loans or dues by members of such association, it becomes necessary, according to the bylaws, to bring suit or [on] any mortgage for the purpose of collecting such loans or dues, no greater sum shall be recovered than that actually due at the time of judgment, and the amount so due may be ascertained by adding to the sum of arrears the present value of all future instalments discounted at the rates per cent, and according to the tines and periods of payments established by the bylaws, not inconsistent with section one of this act. And whenever, by the constitution or bylaws of any such association, loans shall be made, or have heretofore been made, to its members by the share, for premiums, the amount for which judgment shall be rendered shall not be greater than the actual amount of money loaned, with interest to time of judgment at twelve per cent per annum, and all unpaid tines lawfully assessed against the borrower for non-payment under such bylaws, not exceeding two per cent per month, less the annount paid in on such shares, with like interest from the time of said payment or payments.
Par. 1428. Every such corporation, before commencing business under its charter, shall file a copy of its bylaws with the secretary of state, and shall likewise so file copies of all subsequent changes of such bylaws; and all such associations now doing business shall immediately file copies of their bylaws with the secretary of state, and shall also so file all subsequent changes thereof. A majority of the stockholders present at any organized meeting may adopt, alter or change the constitution or bylaws, or transact any other business.
Par. 1429. Any building and loan association organized under the corporation laws of this state for the purpose of the accumulation and loan of funds, the erection of buildings, and the purchase and sale of real estate for the mutual benefit of its members, is hereby authorized and empowered to reorganize as a savings bank, and to do business as such.
PAR. 1430. Before any such association can reorganize under the provisions of this act, there shall be presented to the board of directors of such association a petition signed by two-thirds of the members thereof, praying for such reorganization. Whereupon it shall be the duty of such board of directors, within thirty days from the time of presenting the petition, to filo with the secretary of state an additional charter, setting forth that they have reorganized under this act, which shall
Par. 1431. All fully paid-np permanent shares in such building and loan association shall be exchanged for paid-up stock to the same amount in such savings bank or reorganized corporation, and all accumulating shares shall be exchanged for investment certificates, to be issued by said bank, bearing the same payments and penalties, the same rate of interest, the same ratio of participation in profits, and payment on withdrawal or at maturity, as attached to the same by the constitution and bylaws of such association before its reorganization.
Par. 1432. All contracts heretofore made with any such building, loan or savings association, may be enforced by action in the na:ne of such now or reorganized corporation, and all liens, causes of action, are hereby saved and preserved to such corporation as fully as if this act had not been passed.
SECTION 248. Any number of persous, not less than nine, may associate for the purpose of forming a corporation to accumulate the savings of its members, paid into such corporation in fixed periodical instalments, and lending to its members the funds so accumulated.
Sec. 249. Such corporation may be organized in the manner provided in section two, article one (general provisions concerning corporations), of this chapter, except that the limit of the capital, in place of the amount of capital, shall be given, and when a copy thereof is filed in the office of the secretary of state, and filed and recorded in the county clerk's office of the county where its principal place of business is located, the incorporators shall thereupon become a body politic, and be invested, subject to the provisions of this article, with all the powers and privileges, liabilities and restrictions, granted to or imposed upon corporations generally under the first article of this chapter.
SEC. 250. The name assumed by such corporation shall not be so nearly alike that of any other similar corporation as to deceive the public, and the words "building association " shall form a part of the name.
SEC. 251. The par value of the shares shall not exceed five million dollars, and shall be divided into shares of the ultimate value fixed by the bylaws. The shares may be issued in monthly, half-yearly or yearly series, in such amounts and at such times as the members may determine. No person shall hold, in an association having an anthorized capital stock of one hundred thousand dollars or less, exceeding an amount equal to two and a half (21) per cent of the whole number of shares; in those having an authorized capital exceeding one hundred thousand dollars, and not exceeding five hundred thousand dollars, two (2) per cent; in those having an authorized capital of five hundred thousand dollars, and not exceeding one million dollars, oue and a half per cent, and in those having an authorized capital of one million dollars, or in excess thereof, one (1) per cent of the whole number of shares tlierein; and no shares of a prior series shall be issued after the issue of a new series; and an association may issue full paid stock to its members, or issue to its members stock restricted to a less rate of profit than that of its regular stock; but certificates of such stock shall state on their face this restricted rate of profit, and no association shall create a debt exceeding twenty (20) per cent of its paid-up capital.
SEC. 252. The number, title, cluties and compensation of the officers of the corporation, their term of office, the times of their election, as well as the qualifications of the elcctors, and the time of each periodical meeting of the officers and members, shall be determined by the byla ws; all officers shall continue in office until their successors are duly elected and qualified.
Sec. 253. The officers shall hold stated meetings as prescribed in the bylaws. At such times as may bo prescribed by the bylaws every member shall pay to the corporation, as a contribution to its capital, such sum as dues upon each share of instalment stock held by him as the bylaws may prescribo, until the share reaches the ultimate valuo fixed by the bylaws, or is withdrawn, cancelled or forfeited. Pagment of dues on cach series shall commence from its issue.
SEC. 254. A member may withdraw his unpledged shares at any time by giving thirty days' notice of his desire to do so in a book to be provided by the corporation for the purpose, and shall thereupon receive the withdrawing valne of his shares at the dato of the notice, and this withdrawing value shall be the amount of the dues paid thereon, together with such proportion of the profits as the bylaws may determinc, less all fines, expenses and proportionate part of any unadjusted loss; but at no time shall more than one-half of the funds in the treasury be applicable, withont the consent of the directors, to the demands of the withdrawing members. The directors may, in their discretion and pursuant to the bylaws, retire the unpledged shares of any series, and enforce their withdrawal at any time after three years from the date of their issue. Tho shareholders whose shares are to be so retired shall be determined by lot, under such regulations as the directors may preseribe. The withdrawing value of such shares shall be the amount of dues paid thereon, together with the profits apportioned to such shares, according to the next preceding adjustment and valuation of shares, less all fines, expenses and proportionate part of any unadjustel loss.
Sec. 253. Whenever there shall remain in any series, at the expiration of five years after the date of its issue, an excess above one hundred unpledged shares, the directors may retire annually twenty-five per centum of such excess existing at said expiration of fivo years after tho date of its issue; but when the withdrawal of shares is to be enforced, tho shares to be retired shall be determined by lot, and the holders thereof shall be paid tho full value of their shares, less fines and a proportionate part of any unadjusted loss; and shares pledged for share loans shall be treated as unpledged shares. But this section shall not apply to associations maturing their shares in less than six years.
Sec. 256. When each unpledged share in a given series reaches the value fixed by tho bylaws, all payment of dues thereon shall cease, and the holder thereof shall be paill out of the funds of the corporation the valuo fixed by the bylaws, with interest at the rate of six per cent a year from the time of such maturity to the time of payment; but at no timo shall nore than one-half of the funds in the treasury be applicable to the payment of such matured shares without the consent of the directors; and when any series of shares, either plodged or unpledged, reaches maturity between the dates of adjustment of profits, or whenever shares aro retired between such dates, the holders of such shares shall, in addition to the valne thereof, be entitled to interest at the same rate for all full months from the date of the preceding adjustment.
Sec. 257. The moneys accumnlated, after duo allowance made for all necessary and proper expenses, and for the withdrawal of shares, shall, at each monthly or wcokly meeting, bo offered to the members according to their priority of right to a loan as fised by the bylaws. Each romber whose bid is accepted shall be entitled, upon giving proper security and complying with the bylaws, to receive a loan equal to the par value of each share held by him., or such fractional part thereof as the bylaws allow. If a balance of money remains after the monthly loans, the directors may invest the same in gooil and safe bonds or real estate securities.
Sec. 258. A borrowing member for cach sharo borrowed upon shall, in addition to his dues and monthly or weekly premium, pay monthly or weekly interest on his loan at the rato of six per cent per annum, and the interest and premium shall not exceed twelve (12) per cent per annum, until his shares reach the value fixed big the
loan and shares shall be declared cancelled and satisfied, and the balance, if any, due upon the shares shall be paid to the member.
SEC. 259. For every loan made a noto secured by first mortgage on real estate shall be giren, accompanied by a transfer and pledge of the shares of the borrower. The shares so pledged shall be held by the corporation as collateral security for the performance of the conditions of said note and mortgage. The note and mortgage shall recite the number of shares pledges and the amount of money advanced thereon, and shall be conditioned for the payment at the stated meetings of the corporation, or on some day of each month or week, of the monthly or weekly dues on said shares, and the interest and premium upon the loan, together with all fiues upon payments in arrears, untii said shares shall reach the value fixel by the bylaws, or said loan is otherwise cancelled anıl discharged. The shares without other security may, in the discretion of the directors, be pleilged as security for loans to an amount not exceeding cighty per centum of their value as auljustel at the last adjustment and valuation of shares before the time of the loan. If the borrower neglects to offer security satisfactory to the diretors within the time prescribed by the bylaws, his right to the loan shall be forfeited, and ho may be charged with one month's interest and one month's preminm at the rate bid by him, together with all expenses, if any, incurred; and the money appropriated for suel loan may bo reloaned at the next or any subsequent meeting.
Sec. 260. A borrower may repay a loan at any time upon application to the corporation, in even shares, whereupon, on settlement of his account, he shall be charged with the full amount of the original loan, together with all instalments of interest, dnes, premiums and fines iu arrears, and shall be giren credit for the withdrawing value of his shares pledged and transferred as security, and the balance shall be received by the corporation in full satisfaction of said loan. All settlements made at periods intervening between stated meetings of the directors shall be made as of the date of the stated meeting next succeeding suel settlement; and a borrower, desiring to retain luis shares and membership, may, at his option, repay his loan without claiming credit for said shares, whereupon said shares shall be transferred to him, and shall be free from any claim by reason of said cancelled loan.
SEC. 261. Members who mako default in the payment of their monthly or weekly dues, interest or pre:nium, shall be charged a fino not exceeding twenty-five cents per share a month on cach share in arrears. No fino shall bo charged after the expiration of six months from the first lapso in any such payment, nor npon fines in arrears. The shares of a member who continues in arrears more than six months shall, at the option of the directors, if the member fails to pay the arrears within thirty days after notice, bo declared forfeited, and the withdrawing valuo of the shares at the time of the first default shall be ascertained, and, after deducting all fines and other legal charges, the balance remaining shall be placed to an account to be designated the “forfeited sharo account” to the credit of the defaulting member; said member, if not a borrower, shall bo entitled, upon thirty days' notice, to receive the balance so transferred, without interest, from the time of the transfer, in his order of the turn, ont of the funds appropriated to the payment of withdrawals. All shares so forfeited or transferred shall cease to participato in any profits of the corporation aceruing after the last adjustment and valuation of shares before said default.
SEC. 262. If a borrowing member has been in default for six months, the amount to be credited to his shares under the preceding section shall be applied as a payment upon the loan, and the balance, with interest and premium thereon, from the time of first default, shall 1:0 enforced against the security. The shares, the value of which has been so applied in payment, shall revert to the corporation, and be held by it free from all interest, claim, or demand on the part of the borrower or any person claiming under him.
SEC. 263. The profits and losses may be distributed annually, semi-annnally, or quarterly to the shares then existing, but shall be distributed at least once in each
year. The profits and losses shall be distributed to such shares in proportiou to their valuo at that time, and shall be computed upon a basis of a single share fally paid to the date of distribution. Losses shall be apportioned immediately after their occurrence.
Sec. 264. Any such corporation may purchase at any sale, public or private, any real estate upon which it may have a mortgage, lien or judgment or in which it may have an interest, and may dispose of the same at pleasure, but within five years after it has acquired title thereto.
SEC. 256 . It shall be lawful for any minor above the age of fourteen, or a married woman, to take and hold shares in such corporation, and for such corporation to pay to any minor any money that may be due him in respect to any share, and his receipt therefor shall be valid; but no minor shall be eligible to hold any office in such corporation.
SEC. 266. It shall be the duty of every corporation formed under this law to print and publish in pamphlet form the whole of this law and its articles of incorporation and by laws, and any amendments thereto or alterations thereof, and to sell the same to those who may wish them; and it shall also keep in a book, subject to inspeetion, in its offico, during business hours, a copy of this law, its articles of incorporation, bylaws and any a inendments thereto or alterations thereof.
Sec. 267. All corporations formed under this or any other law, and transacting in this state a business similar to that authorized to be done by this law, shall be under the supervision of the secretary of state. The president, manager or sreretary thercof shall, on or before the first day of February in each year, return to said seeretary of state a report, signed and sworn to by the president or manager and secretary, and attested by at least two directors, showing the amount of paid-up capital, and amount of all cash receipts and disbursements for the year ending the thirtyfirst day of December next previous thereto, and such other facts as the secretary of state may require; and each corporation, officer, agent or manager, failing or refusing to make said report or to furnish any information called for by the secretary of state, under oath and attestation of its officers as required, shall be severally gnilty of a misdemeanor, and fined not less than one hundred nor more than one thousand dollars for each offence. And every foreign corporation shall, before, it transacts or solicits any business in this state, obtain from the secretary of state a certificate authorizing it to carry on and solicit business in this state, which certificato the secretary of state shall grant, upon satisfactory information furnished to him under oath that tho.corporation is solvent and properly managed; and if any corporation, by its agents or officers, solicit or transact any business in this state withont first obtaining such certificato, such corporation, and each agent thereof who solicits or transacts for it any business in this state, shall be liable to the penalty provided in this section.
SEC. 268. Whenever the secretary of state shall have reason to believe that any corporation organized under the laws of this state is violating the provisions of this law or the law under which it was created, or is being operated in a manner prejudicial to the interest of the creditors or members of such corporation, he shall lay such information before the attorney general, and such action and proceedings may be taken as are authorized to be taken in cases of insurance companies that are insolvent or are violating the law.
Sec. 269. Whenever any foreign corporation shall refuse or fail to pay the taxes assessed against it, or to pay the fees exacted, or to make the required report, or when, in the judgment of the secretary of state and the attorney general, its business in this state is conducted in violation of law, or it is insolvent, it shall be the duty of the secretary of state to cause notice of such fact to be published in some newspaper of general circulation in this state, and such company shall cease to do business in this state; and if, thereafter, auy agent or servant of such company shall transact or solicit any business for such company in this state, he shall for each