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ing and agreeing that if any legal process affecting such association be served on such examiner, and a copy thereof be mailed postage prepaid by the party procuring the issue of the same, or his attorneys, to said association, addressed to its home office, then such service and mailing of such process shall have the same effect as personal service on said association in this state, and also an agreement that said association will not remove any action commenced in any state court of this state against the same to the United States court, and will pay every judgment that may be taken against it upon any such action within sixty (60) days after the final judgment shall have been entered; fourth, pay to the public examiner twenty-five dollars ($25) as fees for filing the papers mentioned in this section.
SEC. 10, (as amended by chapter 131, laws of 1891). When process against or affecting any foreign building and loan association is served on the public examiner, the same shall be by duplicate copies, one of which shall be filed in the office of the publie examiner, and the other by him immediately mailed, postage prepaid, to the home office of said association.
Sec. 11, (as amended by chapter 131, laws of 1891). The word "process" in this act shall include any writ, declaration, summons or order whereby any action, writ or proceedings shall be commenced, or which shall be issued in or upon any action, suit or proceeding authorized by law in this state.
Sec. 12, (as amended by chapter 131, laws of 1891). Service of process according to a stipulation provided in section nine (9) of this act shall be sufficient personal service on the association filing such stipulation.
SEC. 13, (as amended by chapter 131, laws of 1891). When by the laws of any other state, territory or nation, any taxes, fines, penalties, licenses, fees, deposits of money or securities, or other obligations or prohibitions, are imposed on building and loan associations of this state doing business in such other state, territory or nation, or upon their agents therein, so long as such laws continue in force the same obligation and prohibition, of whatever kind, shall be imposed upon all building and loan associations of such other state, territory or nation, doing business in this state, and upon their agents here.
Sec. 14, (as amended by chapter 131, laws of 1891). Any building and loan association organized under the laws of any other state or territory, that shall remove any action that shall be commenced against it in a court of this state to the United States court, or that shall fail to pay any judgment rendered against it upon a suit in any court of the state within sixty (60) days after the rendition of final judgment in such case, or that shall fail to make yearly statements to the public examiner as hereafter mentioned, or statements of the amount and value of its stock held in this state as hereafter required, or to pay the fees of the public examiner as provided in this act, or to do any other act required in this act to be done and performed, shall apon violation of the provisions of this act have no right or authority to do or transact any further business in this state, and the public examiner shall thereupon cause notice of determination of such authority to do business to be mailed to such corporation and to be published in some newspaper of general circulation at the capital of this state, and shall communicate the facts to the attorney general of this state, who shall institute such proceedings in the matter as the case may require; Provided, any such corporation may be again authorized to commence business in this state upon such terms as the public examiner may deem just and proper, and upon full compliance with the provisions of this act.
SEC. 15, (as amended by chapter 131, laws-of 1891). All building and loan associations hereafter incorporated in this state shall have an authorized capital of two million dollars ($2,000,000) at the time of the incorporation. Every share of capital stock issued by any such association shall be of the par value of one hundred dollars ($100), but this provision shall not be construed to forbid the issuo by any such association of paid-up certificates for a less amount in liquidation of stock surrendered for cancellation or withdrawn before reaching its maturity period; Provided,
that such paid-up certificates shall be certificates of indebtedness only, and the stock in liquidation of which certificates are issued shall be thereupon surrendered and cancelled.
SEC. 16, (as amended by chapter 131, laws of 1891). Any building and loan association heretofore or hereafter incorporated under the laws of this state may at any time increase the amount of its capital stock by a vote of at least three-fourths (2! of its board of directors; Provided, that no snch increase shall be made unless threefourths (t) of the capital stock previously anthorized has actually been issued, and the amount of inerease made at any one time shall not exceed the amount issued previous to the time of such increase. Any amendments of the articles of incorpration of any such association in any other respect shall be done at an annual meeting, by a two-thirds (it) vote of stock represented and voted at such annual meeting on the question of sneh amendment or amendments, and only upon the notice hereinafter provided to be given.
SEC. 17, (as amendel by chapter 131, laws of 1891). Whenever any building and loan 'association increases its capital stock or otherwise amends its articles of incorporation, as provided in this act, a copy of the resolution of the board of directors or stockholders making such increase or other amendment, duly verified by oath of the president and secretary of such association, shall be filed in the office of the register of deeds of the county in which the home of said association is located apel in the office of the secretary of state, and be published four successive times in some daily or weekly newspaper published at the capital of the state or in the county where the association has its home office, proof of which publication shall be filei in the office of the secretary of state.
Sec. 18, (as amended by chapter 131, laws of 1891). In each year every building and loan association organized under the laws of this state and doing business in this or any other territory shall, within thirty (30) days after the end of the year for which its report to its stockholders is made, deposit with the public examiner an annual report of its affairs and operations for said year. Such report shall be veritied under oath of the president and secretary or by three directors of the association, and shall contain the following information:
1. The amount of authorized capital and the par value of each share of stock. 2. The number of shares sold during the year. 3. The number of shares cancelled and withdrawn during the year. 4. The number of shares in force at the end of the year. 5. A detailed statement of the receipts and disbursements during the year. 6. A detailed statement of the assets and liabilities at the end of the year.
Such report shall also show the total amount received as dues on stock under each separate class or kind of stock, and all deductions therefrom for expenses. withdrawals, cancellations, forfeitures, refunded or otherwise, and the amounts, if any, of such profits credited to stock or subject to such credit. The report shall also show the number of shares in force of each monthly issue or series, and the amount expended during the year in payment of salaries of officers, clerks, agents and all other employés, the amount expended for travelling expenses, rent, postage, including telegraph and express charges, printing, books and stationery, office supplies, office furniture, advertising, commission paid agents or other persons, and all other items of expense.
In addition to such annual report, and six (6) months after such report has been submitted to the public examiner, every such association shall prepare a report of its business for the preceding six (6) months, which report shall state the amount of resources included in mortgage loans, the amount of loans on stock of the association, the amount of loans on other securities, specifying the kind of such securities, the amount of unpaid dues, fines, premiums and interest, the amount due from agents, the amount due from banks, the amount invested in real estate and secured
paid during the six (6) months, the amount of cash on hand, and the amount of all other resources of the association not enumerated heretofore; and shall state as its liabilities the amount received from stock snbscriptions, the amount due from stock delinqnent in each class or kind of stock, and the unpaid fines on such stock, the amount set aside as an expense fund from each class or kind of stock, the amount of undivided profits at the beginning of said period of six (6) months, the amount received as interest, premiums, fees, fines or other sources as profits during said period, the amount of such interest and preminm delinquent at the end of such period, the amount of all bills payable, and the amount of all other liabilities at the elose of said period of six (6) months. Such report shall be made within twenty (20) days after the close of said period of six (6) months, and shall be verified by the secretary and president or vice-president of the association, and within thirty (30) days a statement of the assets and liabilities shall be publisherl at least once in some newspaper in the city or town where the association's principal place of business is, and a copy of such semi-annual report, verified by the secretary, shall be filed with the public examiner within ten (10) days after the printing thereof. Prorided, that all such statements herein required to be made shall be uniform and in accordance with a form to be prescribed therefor by the public examiner, and shall correctly show the proportion which the entire expenses of the association for the term reported bear to the gross earnings of said association for that term; And provided further, that all reports required of building and loan associations organized under the laws of this state and doing a general business, are also required of all foreign building and loan associations doing business in this state, and all the provisions of this act relating to such reports, the filing thereof and the fees therefor, shall apply to such foreign building and loan associations.
If any such association shall fail to furnish to the public examiner of the state any report required by this act at the time so required, it shall forfeit the sum of twenty-five dollars ($25) for every day such report shall be delayed or withheld, and the examiner may maintain an action in his name of office to recover such penalty, and the same shall be paid into the treasury of the state and applied to the expenses of the department of said examiner. After receiving such annual report, the public examiner, if satisfied that such corporation has complied with all [the] provisions of this act and is entitled to do business in this state, shall issue his certificate stating the compliance with such provision, and that such corporation is entitled to do business in this state, which certificate shall be in force for the period of one (1) year, unless sooner rescinded, as provided in this act. The public examiner shall also issue such certificate to a domestie corporation which has complied with the law in regard to its articles of incorporation and the deposit of securities and in all other respects except the filing of said report, which commenced business at some intervening period in any year. Such certificate shall also be issued to any foreign corporation authorized to do business in this state, after complying with the conditions of section nine (9) of this act, and shall be in force until the time herein required for such annual report.
SEC. 19, (as amended by chapter 131, laws of 1891). It shall be the duty of such public examiner, at least once in each year and as often as he may deem necessary, to assume and exercise over every building and loan association incorporated under the laws of this state, its business, officers, directors and employés, all the power and authority conferred upon him over banks and other moneyed corporations under the laws of this state; Prorided, he shall not have the power to suspend the operations of any such association, except in the manner provided in the next succeeding section. And such public examiner shall have the same supervision and control over the business, within this state, of other corporations of like kind, incorporated under the laws of other states, territories or nations, doing business in this state. Upon the completion of any examination of any association made by said public examiner, or under his direction, the association so examined shall pay to said exam
iner a fee, to be determined as follows, viz.: for the first one hundred thousand dollars ($100,000) of assets, a fee of ten dollars ($10), and for each additional one hundred thousand dollars ($100,000) of assets, or major portion thereof, an additional fee of five dollars ($5).
SEC. 20, (as amended by chapter 131, laws of 1891). If it shall appear to said public examiner, from any examination made by him, or from any report of any examination made by him, or from the annual report aforesaid, that said corporation is violating its charter or the law, or that it is conducting business in an unsafe, unauthorized or dishonest manner, he shall, by an order under his hand and seal of office addressed to such corporation, direct conformity with the requirements of its charter and of the law. And whenever such corporation shall refuse or neglect to make such report or account as may be lawfully required, or to comply with such order as aforesaid, the public examiner shall file a statement in writing with the attorney general, setting forth the facts or particulars in which such alleged violation or refusal consists, which statement shall be prima facie evidence of such violation or refusal, whereupon the attorney general shall institute such proceedings against any such corporitions as are now or may hereafter be provided by law in the case of insolvent corporations, or such other proceedings as the occasion may require. And if such corporation shall have been organized under the laws of any other state or territory, said attorney general shall, upon receiving such communication, if in his judgment the facts in the case are sufficient to warrant such action, give notice to such corporation that it is no longer authorized to do business in this state, by depositing such notice in the post office, properly sealed and stamped, addressed to said corporation at its principal office in the state where incorporated, and thereupon said corporation shall cease to have any right in this state, and said notice may be published in the same manner as provided in section fourteen (14) of this act.
Sec. 21, (as amended by chapter 131, laws of 1891). All officers of any building and loan association governed by this act and doing business in this state, who sign or endorse checks or handle any funds of such association, shall give such bonds or fidelity insurance 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 duties of his office until his bond is approved by the board of directors and the public examiner, with whom such bond shall be filed; Provided, that the public examiner may require of any association, at any time, such increase of said bond or additional security thereto or such increase of said insurance as he may deem necessary for the protection of the members. The penalty for the failure of any association to file and maintain the bonds or policy as required by the provisions of this section shall be a fine of one hundred dollars ($100) for each day such association transacts business after such bond has become due under the provisions of this act. Said bond or policy shall be held in trust for the benefit and protection of the members of such association, and shall be enforceable by any member whenever the cause of action shall accrue thereon.
SEC. 22, (as amended by chapter 131, laws of 1891). The name "building and loan association,” as used in this act, shall include all corporations, societies, organizations or associations doing a saving and loan or investment business on the building society plan, whether mutual or otherwise, and whether issuing certificates of stock, which mature at a fixed time in advance, or not.
SEC. 23, (as amended by chapter 131, laws of 1891). Any officer, director, or agent, or any foreign building and loan association, or any other person whatever, who shall in this state solicit subscriptions to the stock of such association, or who shall sell or issue or knowingly cause to be sold or issued to a resident of this state any stock of such association while such association shall not have had the certificate of the public examiner authorizing it to do business in this state as herein described, or has not deposited, as required by this act, securities of the value and at the time
this aet, or when said association shall have been notified and required to discontinue business in this state, as herein before provided, shall be guilty of a misdemeanor, and, upon conviction thereof, shall be punished by a fine of not less than one hundred dollars ($100) nor more than five hundred dollars ($500), or by imprisonment of not less than ten (10) days nor more than six (6) months, or both such fine and imprisonment, in the discretion of the court.
SEC. 21, (as amended by chapter 131, laws of 1891). Any officer, director or agent of any building and loan association incorporated under the laws of this state, or any other person whatever, who shall sell or issue or knowingly cause to be sold or issued to any person not a resident of the county in which the home office of said association is located, or in the counties immediately adjacent thereto, any stock of said association while said association does not have on deposit with the public examiner or some loan and trust company, as required by this act, securities of the value and at the time hereinafter prescribed, or while such association shall not have a certificate of the public examiner authorizing it to do business as herein prescribed, shall be guilty of a misdemeanor, and, upon conviction therefor, shall be punished by a fine of not less than one hundred dollars ($100), and not more than five hundred dollars ($500), or by imprisonment of not less than ten (10) days nor more than six (6) months, or both such fine and imprisonment, in the discretion of the court.
SEC. 25, (as amended by chapter 131, laws of 1891). Any premium for loans made by any association governed by this act shall not be considered or treated as interest nor render such association amenable to the laws relating to usury.
SEC. 26, (as amended by chapter 131, laws of 1891). Every such association heretofore organized under the laws of this state or incorporated under this act shall not issue preferred stock, but may issue different series of stock, and all shares of stock hereafter issued shall be of the par value when matured of one hundred dollars ($100) each. Any such association may issue instalment stock to be paid in periodical sums, and prepaid stock upon which a gross sum shall be paid in advance, and which instalment and prepaid stock shall mature when the amount so paid, together with the dividends declared upon the same, shall equal the par value of such stock (and a dividend bearing prepaid stock upon which a larger sum is paid than on the prepaid stock, and upon which a partial dividend may be paid annually out of the full dividend apportioned thereto); and may also issue full paid stock upon which the par value thereof shall be paid in advance, in the certificate of which stock the right of withdrawal may be waived for a definite time, and upon which full paid stock a full dividend or a definite dividend may be paid, which dividend shall in no case exceed the per cent of profits earned by all classes or series of stock at the time said dividend is declared. Any such association may issue from time to time a limited amount of guaranty or permanent stock, for which the full par value shall be paid at the time of issue or in instalments of five dollars ($5) one ach share, from time to time, at the option of the purchaser, until the full par value of one hundred dollars ($100) is paid. Such guaranty or permanent stock to be paid a dividend on the amount paid in, such dividend not to exceed the per cent of profits earned by all classes or series of stock at the time such dividend is declared. The balance of profits (if any) and the principal paid on said stock not to be paid to holders of same until all lawful claims of every other class of stock shall have been fully liquidated and paid by such association. Provided, that the total amount of guaranty or permanent stock at its par value issued by any association shall not exceed at the time of its issue twenty (20) per cent of the amount of payments to the credit of all other classes of stock. No building and loan association shall issue any certificate of shares until the terms and conditions thereof shall have been first submitted to and approved by the public examiner.
SEC. 27, (as amended by chapter 131, laws of 1891). Any shareholder whose share or shares are not in arrears or pledged upon a loan, shall be entitled to withdraw such share or shares at any time twenty-four (24) months from and after the date of the