and mortgage; Provided, that the shares, without other security, may, in the discretion of the directors, be accepted as security for the loans for an amount not exceeding their withdrawal value, as provided by this act. Stockholders who have borrowed money of an association on real estate security, and who have pledged their stock or any portion thereof as collateral thereto, as provided herein, shall not be entitled to have the value of such stock applied on the mortgage debt where the payment on such stock is more than three (3) months in arrears, unless the same has reached a withdrawal age as fixed by this act; and when such stock has reached that age the withdrawal value thereof shall be applied on said debt whenever the stock is three (3) months in arrears.

SEC. 5, (as amended by chapter 131, laws 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 incumbrance, or in which it may have any interests, and may sell, convey, lease or mortgage the same at pleasure to any person or persons, and may acquire and hold a lot or lots whereon is erected a building or buildings requisite for the convenient transaction of its business, and from portions of which not required for its own use a revenue may be derived. The cost of such building and lot or lots in no case to exceed five (5) per cent of its assets; Provided, that any such association may acquire any leasehold interest necessary for the transaction of its business.

SEC. 6, (as amended by chapter 131, laws of 1891). Every building and loan association heretofore or hereafter incorporated under the laws of this state and governed by this act shall deposit and keep with the state treasurer, or with a duly chartered trust company of this state, approved by the public examiner, in trust for all its members and creditors, all mortgages or other securities received by it in the usual course of its business. When deposited with a trust company, such company shall certify to the public examiner the possession of such securities, and the same shall not be surrendered without the authority and sanction of said public examiner. Provided, that every such corporation heretofore organized not having or owning mortgage or other securities to the amount of twenty-five thousand dollars ($25,000) shall deposit with the state treasurer additional securities to make, with the securities so owned and deposited, the sum of twenty-five thousand dollars ($25,000); and every such association hereafter organized under this act shall deposit and keep with the state treasurer in trust, as aforesaid, securities of the value of twenty-five thousand dollars ($25,000) before commencing to do business. The securities mentioned in this proviso shall consist of bonds or treasury notes of the United States, or national bank stocks, or the bonds of this state, or of any other state of the United States, or of any solvent city, county or town of this state, or of any other state of the United States, having the legal authority to issue the same; and such securities may be withdrawn from time to time, when mortgage securities of corresponding value shall be deposited as provided in this act, or when securities of like character are substituted therefor, or when the same shall have been paid or are required for foreclosure or suit; and it shall be the duty of the public examiner from time to time to examine such association to ascertain whether or not its securities are deposited as required by this act.

Provided, that whenever required by the laws of any other state or territory, or nation, all securities taken in such state, territory or nation, by any association organized under the laws of this state and subject to the provisions of this act, and other securities sufficient to allow such association to enter and do business in such state, territory or nation, may be deposited with some officer authorized to receive the same in such state, territory or nation, under the laws thereof, for the benefit of its members and creditors; and to this end, upon the presentation to the public examiner of a duly authenticated copy of a resolution of the board of directors of any such association, having on deposit with the state treasurer or a duly chartered trust company securities in excess of twenty-five thousand dollars ($25,000), demand

ing the transfer and specifying the securities to be transferred, or the amount thereof, to any other state, territory or nation, for the purpose of enabling such association to comply with the laws thereof, it shall be the duty of the public examiner to cause such transfer to be made. The expense of making such transfer shall be borne by the association requiring the same, and a receipt shall be taken by the officer or trust company making the transfer, and filed and kept in the office from which the securities are transferred in lieu thereof. But the securities kept on deposit in this state by any such association, as required by this act, shall at no time be reduced in amount by such transfer, or otherwise, below twenty-five thousand dollars ($25,000); and in every case where securities taken in another state, territory or nation are deposited in such state, territory or nation, or when other securities are removed from this state to such other state, territory or nation for the purpose aforesaid, the association to which they belong shall make a certificate of such depository, showing the amount and character of such deposit which certificate shall be filed with the public examiner, and renewed annually, together with a statement, verified by the affidavit of some officer of such association who has knowledge of the facts, showing all the securities taken or deposited by such association in such state, territory or nation at the time of the filing of such certificate; and, in case any securities taken in such state, territory or nation are not deposited there, then the same shall be deposited in this state as required by this act.

SEC. 7, (as amended by chapter 131, laws of 1891). All interests and dividends and premiums which may accrue on securities held by the state treasurer or such trust company, as provided for herein, and all dues or monthly payments which may become payable on stock pledged as security for loans, the mortgages for which are so deposited in accordance with the provisions of this act, may be collected and retained by the association depositing such securities or mortgages, so long as such association remains solvent and faithfully performs all contracts with its members; and when any mortgage shall have been fully paid to said corporation, the same may be surrendered to it, upon filing with the depository the affidavit of the president or vice-president and secretary of any such association that such indebtedness has been paid in full, which affidavit shall be first presented to the public examiner and by him approved. And any mortgage upon which default has been made may be surrendered as aforesaid, for foreclosure, upon like affidavit that default exists and that such mortgage is withdrawn for the purpose of foreclosure of suit.

SEC. 8, (as amended by chapter 131, laws of 1891). No building and loan association organized under the laws of any other state, territory or nation, shall do business in this state unless such association shall have securities of the value of one hundred thousand dollars ($100,000), and of the character mentioned in this act, on deposit in trust, for all its members and creditors, with some responsible trust company duly incorporated under the laws of such state or territory in the United States, or with some authorized officer of this or some other state of the United States. Certificates of such deposit shall be made to the public examiner of this state, certifying the possession of such securities, which shall not thereafter be surrendered without the authority or consent of the public examiner or other authorized officer of the state or territory in which said company is incorporated.

SEC. 9, (as amended by chapter 131, laws of 1891). Every building and loan association organized under the laws of any other state, territory or nation, shall, before commencing to do business in this state, first, file with the public examiner of this state a duly authenticated copy of its charter or articles of incorporation; second, file with the public examiner of this state the certificate of the authorized officer of another state showing that securities of the value of one hundred thousand dollars ($100,000) are on deposit with such state officer or duly incorporated trust company, in trust for all the members and creditors of such building and loan association; third, file with the public examiner of this state a duly authenticated

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 public 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 upon 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; Prorided, 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 issue 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 (1) of its board of directors; Provided, that no snch increase shall be made unless threefourths (1) of the capital stock previously authorized has actually been issued, and the amount of increase made at any one time shall not exceed the amount issued previous to the time of such increase. Any amendments of the articles of incorporation of any such association in any other respect shall be done at an annual meeting, by a two-thirds (j) vote of stock represented and voted at such annual meeting on the question of such amendment or amendments, and only upon the notice hereinafter provided to be given.

SEC. 17, (as amended 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 and 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 filed 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 veri fied 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 associa tion, 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 subscriptions, the amount due from stock delinquent 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 premium delinquent at the end of such period, the amount of all bills payable, and the amount of all other liabilities at the close 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 published 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. Provided, 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 domestic 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; Provided, 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