any time to advertise for sale, under deed of trust, the property pledged to the association by such borrower. In case of sale under deed of trust, the borrower shall be charged with the full amount of loan made to him, together with the dues, interest and fines for which he is delinquent. He shall, on the other hand, as an offset, be credited with the same value of his pledged shares as if he had voluntarily withdrawn same, and shall also be credited with one per cent of the premium paid for every month of the one hundred months yet unexpired since the organization of the association. If the amount realized from the sale of the property pledged for the loan, less all legal charges, shall exceed amount thus found due, the balance shall be paid to the delinquent borrower.

SEC. 2814. No premiums, fines or interest on such premiums that may accrue to the said corporation according to the provisions of this article shall be deemed usurious, and the same may be collected as debts of like amount are now by law collected.

SEC. 2815. No corporation created under this article shall cease or expire from neglect, on the part of the corporators, to elect officers at the time mentioned in their articles of agreement or bylaws. All officers elected by such corporation shall hold their offices until their sucessors are duly elected and qualified.

SEC. 2816. Any savings fund, loan or building association, incorporated under the laws of this state, is hereby authorized and empowered to purchase at any sheriff's or other judicial sales or at any other sale, public or private, any real estate upon which such association may have or hold any mortgage, judgment, lien or other encumbrance, or in which said association may have any interest. The real estate so purchased, or any other that such association may hold or be entitled to at the passage of this article, the association is hereby empowered to sell, convey, lease or mortgage, at pleasure, to any person or persons whatsoever.

SEC. 2817. Whenever all the shares of any series of such corporation then actually in force shall have been redeemed by loans or advances thereon, or whenever the funds and property of the association shall be sufficient to pay the debts of such corporation and upon the unredeemed shares of such series, the value thereof, as fixed by the bylaws of such corporation, then the debts of such corporation shall first be paid, and the deeds of trust of borrowers shall be released and the free or unborrowed shares shall be paid off. The free or unborrowed shares shall in no case receive any more than the face value of their shares, less the average premium paid by the borrowers of the association up to date.

SEC. 2818. No member of any such corporation, who has borrowed money from the same, shall be allowed to vote on any question affecting the claim of such corporation against himself.

SEC. 2819. Every such corporation shall, semi-annually, in the months of January and July, publish in one or more newspapers in the city, or county where such corporation is located, a statement, verified by the oath of its president or secretary, setting forth its actual financial condition and the amount of its property and liabilities, under a penalty of $500 to the state, to be recovered by indictment against the president, cashier or director. It shall also deposit a copy of said statement, verified as aforesaid, in the office of the secretary of state.

SEC. 2820. Every such corporation may extend the time of its duration so as to make the entire period of its corporate existence not to exceed fifty years, by a vote of three-fourths of its stockholders, at any meeting called for that purpose-notice of such meeting first having been given as provided in sections 2499 and 2500 of this chapter, and by paying into the state treasury a fee of five dollars for a certificate of such extension.

SEC. 2820α, (auded by act of March 31, 1893, page 126, laws of 1893). When the unpledged shares in a series shall reach the maturity value thereof, all payments of dues thereon shall cease, and the holders thereof shall be entitled to receive, and shall then be paid out of the funds of said corporation, the maturity value thereof for each

hand sufficient and applicable to the payment and redemption of said shares, then such shareholder shall be entitled to receive interest on the sum then due them, from the date of the maturity of said shares to the date of redemption, at a rate of not less than six nor to exceed eight per cent interest per annum, as may be provided by the bylaws of said association; And provided further, that at no time shall more than half of the fun-ls in the treasury be applicable to the payment or redemption of said matured shares, unless by consent of board of directors.

SEC. 7539. All parties holding stock or shares as owners or in trust in any building and loan association in this state, on which no loan has been obtained from such association, shall be required to give a just and true list of the same to the assessor, with the actual cash value of each share on the first day of June in each year, and the tax shall be levied upon said shares, and collected from such holder or depositor of the same, as taxes on other personal property; and any failure on the part of such owner holder or depositor of such shares shall subject such holder to the same penalties now provided for failure to give to the assessor a true list of all taxable property, verified by affidavit.

SEC. 7540. The taxes assessed on shares of stock embraced in such list shall be paid by the corporations, respectively, and they may recover from the owners of such shares the amount so paid by them, or deduct the same from the dividends accruing on such shares and the amount so paid shall be a lien on such shares, respectively, and shall be paid before a transfer thereof can be made.

SEC. 7541. If the president or other chief officer of any such corporation fail to comply with the provisions of this article, he shall forfeit to the state the sum of one thousand dollars, to be recovered by indictment in any court of competent jurisdiction.

ΜΟΝΤΑΝΑ.

COMPILED STATUTES OF 1887.

FIFTH DIVISION-GENERAL LAWS.

SECTION 635. When any five or more persons may desire to become incorporated as a mutual building and loan association, for the purpose of aiding in building homesteads and loaning money to the members of such association, only they shall make a certificate to that effect in writing, signed and acknowledged before a proper officer in the manner provided for the acknowledgment of deeds, in which certificate shall be stated the name of such association and the purpose for which it is formed, the amount of its capital stock, the number of shares and the par value of each share of its capital stock, the name of the city, town or village, and county where the principal part of its business shall be transacted; the term of its existence and the name of nine persons who shall act as trustees and manage the affairs of such association until the first annual meeting of its stockholders, which certificate shall be filed in the office of the secretary of the territory.

SEC. 636. Upon the filing of such certificate in the office of the secretary of the territory he shall issue to such persons named therein as trustees a license to take subscriptions for the capital stock of such association at such time and place as they may determine: Provided, that such license shall not be issued to the trustees of more than one association having the same name.

SEC. 637. When fifty shares or more of the capital stock of such association shall be subscribed for, the said trustees shall call a meeting of the subscribers for the purpose of electing nine trustees, adopting bylaws for such associations and the transaction of such other business as may be required, which meeting shall be the first annual meeting of the stockholders of such association; notice of such meeting shall be given by depositing in the post office at the place where the principal part of the business of such association is to be transacted, at least five days prior to

holding the same, a written or printed notice stating the time, place and object of such meeting, enclosed in an envelope or wrapper, and addressed to each subscriber, with postage thereon paid. At such meeting there shall be elected nine trustees by a vote of a majority of the persons who have subscribed for stock, represented at such meeting by subscribers in person or proxy. The trustees so elected by a majority of the stockholders shall be divided into three classes, as follows: The term of office of the three first elected shall be for the period of three years; the term of office of the second three elected shall be for the period of two years, and the term of office of the three last elected shall be for the period of one year. Thereafter, annually, at a meeting of the stockholders, three trustees shall be elected whose term of office shall be for the period of three years.

SEC. 638. In case of a vacancy in the office of any trustee, the remaining trustees may fill the same by appointment until the first annual meeting thereafter, when such a vacancy, if the term be not expired, shall be filled by the election of the stockholders.

SEC. 639. The trustees and officers of such association shall be stockholders therein. SEC. 640. Within ten days after holding said first annual meeting of stockholders, the trustees licensed as provided in section 636 of this act shall make a certificate showing the fact of holding such annual meeting pursuant to call, and notice given as provided in section 637 of this act, the names and respective terms of office of the trustees elected thereat, the names of the subscribers for the stock of said association and the number of shares subscribed for by each, which certificate shall be subscribed and verified by at least a majority of such licensed trustees and filed in the office of the secretary of the territory.

SEC. 641. The secretary of the territory shall, upon receiving the certificate provided in section 610, file and preserve the same in his office and thereupon issue a certificate of the complete incorporation of such association attaching thereto and making part thereof a copy of all papers filed in his office relating thereto under the provisions of this act, duly authenticated under his hand and the seal of the territory; and the same shall be recorded at the expense of said association in the office of the county clerk of the county wherein the principal part of the business of such association is transacted; and the recording thereof shall fully incorporate such associa tion.

SEC. 642. In case such association be not fully incorporated as provided in this act within one year after the issuing of said license, the same shall be deemed revoked and any proceeding thereunder shall be unlawful.

SEC. 643. Every corporation formed under the provisions of this act has power to have succession by and in its corporate name for the period limited in its certificate of incorporation, to sue complain implead or defend in any court of law or equity, and may be sued or impleaded in any court of law or equity; to make and use a common seal and alter the same at pleasure, to purchase, hold, and convey at pleasure such real estate and personal property as the purposes of such corporation may require; to make bylaws not inconsistent with the provisions of this act, or any existing laws for the management of its property, the regulation of its affairs, and the transfer of its stock; Provided, that all its bylaws shall be approved by the holders of at least a majority of its stock subscribed for and every corporation formed under the provisions of this act shall have and may exercise such further powers and functions as are herein granted or necessarily implied by the provisions of this act.

SEC. 644. The management and control of the property and business of every association formed under the provisions of this act shall be vested in its board of trustees, a majority of whom shall constitute a quorum for the transaction of business. SEC. 645. Such association shall have a president who shall be chosen from the board of trustees, a secretary and treasurer, and such other officers as provided by

ner and for such terms as may be prescribed by its bylaws: Provided, that neither the trustees nor any other [officer] of such association shall be paid any compensation for services except its secretary, who shall receive such compensation as pro vided by the bylaws.

SEC. 646. The treasurer of such association shall give a bond in a sum equal to double the amount of funds of such association which may come into his possession, conditioned for the safe keeping and the delivery thereof, according to the orders of the board of trustees, the amount of which bond shall be fixed by the board of trustees. Such bond shall be signed by at least three good and sufficient sureties, approved by the board of trustees. The secretary may also bo required to give bonds for such amount as the trustees may determine.

SEC. 647. The par value of the shares of stock shall be one hundred dollars each, and shall be deemed personal property, transferable upon the books of the corporation in such manner as may be provided by the bylaws. Subscriptions therefor shall be made payable to the association in such periodical instalments and at such times as shall be prescribed by the bylaws: Provided, that no periodical payments shall be required exceeding two dollars on each share, and every share of such stock shall be subject to a lien for the security of unpaid instalments and other charges incurred thereon under the provisions of the bylaws, and the bylaws shall prescribe the manner and the time of enforcing such lien. New shares of stock may be issued in lieu of shares withdrawn or forfeited. The stock may be issued in one or in successive series in the manner and in such amount not to exceed the total capital stock as the board of trustees may determine.

SEC. 648. Any stockholder desiring to withdraw from said corporation, shall have power to do so by giving sixty days written prior notice thereof, and at the expiration of sixty days from date of service of such notice, such stockholder shall be entitled to receive the amount paid in by him, and interest thereon at such rate per annum or such proportion of the profits thereon as the bylaws may determine, less any initiation fee, and all fines and other charges assessed against said stock pursuant to the provisions of the bylaws: Provided, that at no time shall more than one-half of the funds in the treasury of the corporation be subject to the demand of withdrawing stockholders without the consent of the board of trustees, and that no stockholder shall be entitled to withdraw whose stock is held in pledge for security. And provided further, that the withdrawing stockholders shall be paid in the order in which notice of withdrawal had been given. That upon the death of a stockholder, his or her legal representatives shall be entitled to the full amount paid in by such stockholder on all shares not borrowed upon or pledged to the corporation as collateral security and interest at such rate as prescribed by the bylaws, first deducting all fines and charges that may be due on said stock, but no fines shall be charged on the stock of a deceased member from and after his or her decease, unless the legal representative of such decedent assumes the future payment of the dues and assessments thereon.

SEC. 649. The board of trustees shall hold such stated meetings not oftener than once each month, as the bylaws may prescribe, at which meetings the money in the treasury, if one hundred dollars or more, shall be offered for loan in open meeting and the stockholder who shall bid the highest premium or interest for the preference or priority of loan, shall be entitled to receive a loan not exceeding one hundred dollars per each share of stock held by such stockholder less the premium bid.

SEC. 650. The funds of such corporation shall be loaned only to bona fide stockholders therein, and in no case shall a loan be made exceeding one hundred dollars per each share of stock held by the borrower, but the bylaws of every such corporation may prescribe such fractional part of one hundred dollars per share as may be loaned to any stockholder.

SEC. 651. Every loan shall be secured by proper mortgage or conveyance of good and sufficient real estate, unencumbered except by prior loans of such corporation;

Provided, that the shares held by any stockholder may be received as security to take the amount of the withdrawal value thereof.

SEC. 652. In case of non-payment of instalments or interest and fines, by borrowing.stockholders, for the space of three months, payment of principal and interest and fines, without deducting the premium paid or the interest thereon, may be enforced by proceedings against the securities, according to law, upon the order of the board of trustees.

SEC. 653. A borrower of money from such association may repay the same at any time, and in that event shall be allowed such a proportionate amount of the premium paid at the time of borrowing as the board of trustees may deem equitable or the bylaws may prescribe; Provided, that the amount of premium so refunded shall be determined as nearly as practicable on the basis of the maturity of the series of stock in which the shares loaned upon were issued.

SEC. 651. Associations incorporated under the provisions of this act shall not cease or expire from neglect to elect trustees or other officers at the time mentioned in this act or its by laws, and all officers elected by such corporation shall hold their offices until their successors are duly elected and qualified.

SEC. 655. Any association incorporated under the provisions of this act, is hereby authorized to purchase at any sheriff's or other judicial sale, or at any other sale, public or private, any real estate upon which said corporation may have or hold any mortgage, lien or encumbrance, or in which said corporation may have an interest, and the real estate so purchased to sell, convey, lease or mortgage at pleasure.

SEC. 656. Any association incorporated under the provisions of this act may extend the duration of time for which [such] association was organized by a majority of the capital stock of such association at any annual or called meeting of the stockholders thereof. Thereupon the board of trustees shall cause to be made a certificate showing the fact of holding such meeting, the whole amount of the stock of such association outstanding, the names and amounts held by each stockholder represented at such meeting in person or by proxy, the whole amount voted in favor of the extension of the existence of such association and the time to which the same was so extended, which certificate, duly signed and verified by a majority of such board of trustees, shall be filed in the office of the secretary of the territory, who shall thereupon issue his certificate certifying and showing the extension of time of duration of such association, and the same shall be recorded as provided in section 641 of this act.

SEC. 657. Any corporation of the nature provided for in this act, heretofore incorporated under the laws of this territory and desiring to extend the duration of time for which it was incorporated, is hereby authorized so to do in the manner provided in section 656 of this act, and thereupon it shall be deemed as incorporated under and thenceforth shall be governed by provisions of this act in the same manner as if said association had been originally incorporated hereunder so far as the same may be applicable to the conditions thereof.

SEC. 658. Nothing in this act shall be construed to affect the validity of any of the operations of any building and loan association incorporated under the laws of this territory prior to the passage of this act.

SEC. 659. Any corporation of the nature herein provided for, now existing in this territory, desiring to reform its condition and make the same conform to the provisions of this act, shall first obtain and preserve the written consent of all its stockholders thereto, and may thereupon call a meeting of the stockholders in the manner provided in section 637, and at such meeting elect a board of nine trustees, as therein provided, and make its bylaws and all other conditions of such corporation conform to the provisions of this act; and thereupon a majority of the trustees managing the affairs of [the] corporation thus reformed, shall make and file in the office of the secretary of the territory such a certificate as required in section 640, together with