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aet, by any member of said “orporation or association, of any dues, forfeitares, or fiues which may be due to said corporation or association according to the terms of the contract between said corporation or association and said member to said corporation or association, shall be deemed in law a waiver of anything in said contract or loan that might be deemed usurious in the same under the laws of this state at the time the same was made and securities given, and a ratification of said loan or contract, and of its present and future legality between said parties, as now existing under and by virtuo of this act.

Sec. 363. Any association of not less than five persons, hereafter incorporated under the laws of this state, which shall be organized within this state for the purpose of raising a fund by the collection of dues or stated payments from its members, to be loaned among its members, shall, in furtherance of such purpose, and after having complied with the requirements of this act, be authorized and empowered to levy, assess, and collect from its members such sums of money, by rates of stated dues, fines, interest on loans advanced, and premiums bid by members for the right of precedence in taking loans, as the corporation may provide for in its constitution or bylaws, also, to acquire, hold, and convey all such real estate and personal property as may be legitimately pledged to it upon said loans, or may otherwise be transferred to it in the due course of its business (subject, however, to the limitations hereinafter named). The words “loan and building association," “ building association," or "building and loan association" shall form part of the corporate name of every such corporation.

Sec. 364. Every such association hereafter formed shall adopt a constitution which shall substantially give effect to the provisions of this act, and shall also adort such bylaws for the government and management of its business as it shall deem proper; Provided, the same shall not be inconsistent with this act, and shall not contravene the laws or constitution of this state, or the United States, and may alter and amend the same from time to time in such manner as may be provided by its articles of incorporation. Such constitution shall contain equitable provisions, permitting any shareholder wishing to do so to withdraw from the association, in manner as follows: After three months from date of issue of the certificate of shares, a shareholder, or the legal representative of a deceased shareholder, wishing to withdraw from the said corporation, shall have the power to do so by giving thirty days' notice of such intention to withdraw, such notice being given in writing at the regular meeting of the board of directors. At the first regular meeting after the expiration of the thirty days' notice, or at any time thereafter, the member so withdra sing, or, if deceased, his legal representative, shall be entitled to receive, on demand, the amount paid in by him or her, less the admission fee and expense charges and such rate of interest as the bylaws may determine, less all fines and uther charges. Should there have been, however, a net loss instead of a net gain, then such withdrawing shareholder shall receive the actual amount paid in, less his proportion of such net loss. At no time, however, shall more than one-half of the unloaned funds in the treasury of the corporation be applicable to the demands of the withdrawing shareholders without the consent of the board of directors. No shareholder shall be entitled to withdraw whose stock is pledged as security for a loan, either from the association or from any other party. It shall contain equitable provisions permitting the payment of loans before maturity, and for crediting borrowing members who have paid premiums in advance and who repay their loans before maturity, with an equitable share of the premiums paid by them. Such constitution shall also provide that if any member has become delinquent in his payments on any shares to an amount equal to the payments due thereon for any period named therein (not, however, less than three nor more than twelve months), such shares shall be cancelled, and he shall, as to such shares, cease to be a member, and shall become a debtor or creditor of such association as the case may be, and it shall make equitable provisions for crediting such member with the same amount

as if he had voluntarily withdrawn from the association, and if any sum be dae him after deducting tines and losses, if any, to date of cancellation, it shall, if he be a borrower, be credited on his loan, and if he be not a borrower it shall be lield subject to his order. Such constitution may, within the limits aforesaid, fis diffcrent periods for the cancellation of shares of borrowers and non-borrowers, and may also, within said limits, leave the period for cancellation, wholly or in part, to the discretion of the board of directors.

SEC. 363. A copy of the articles of incorporation, constitution, and bylaws of every such association shall be filed in the office of the auditor of public accounts, who shall, with the slate treasurer and attorney general, examine the same carefully and if they, or any two of them, shall find that they conform with the requirements of this act and contain a just and equitable plan for the managemeut of the associatron's business, they, or any two of them, shall issue to such association a certificate of their approval of such constitution and bylaws; but if they, or any two of them, find their provisions to be unjust or inequitable or oppressive to any class of shareholders, they shall withold their approval. It shall not be lawful for any associa: tion Liereaiter organized within this state for the purposes set forth in section 1 of this act [363] to transact any business except the execution of its articles of incorporation, the adoption of it constitution and bylaws, and the election of directors and officers, until it shall have procured the certificate of approval above provided for, nor shall any amendment of the articles of incorporation, constitution, or bylaws of any such association become operative until a copy of the same shall have been filed and a certificate of approval obtained as above provided in regard to original articles of incorporation, constitution, and bylaws.

SEC. 366. No loan shall be made by such association except to its own members, nor shall any loan be made to any member of any sum in excess of the par value of his stock, and the association shall have a lien on as many of the borrower's shares as shall oqual at their face value the nominal amount of the loan; good and ample real estate security unincumbered, except by prior liens held by such association, shall also be given by the borrowe.; Provided, however, that the stock of such association may be received as security for a loan of the amount of the withdrawal value of such stock without other security. No evidence of indebtedness taken by such association for the return of any such loan shall be negotiable in form, and, whatever be its form, every such evidence of indebtedness shall be non-negotiable in law, and no such debt, or evidence of debt, shall be assignable or transferable in any manner so as to prevent the discharge thereof by payment made to the associatiu

Sec. 367. Such associations may purchase, hold, lease, and convey real estate for the following purposes, and no other: 1st. Such as it may need to occupy as a place of business. 2nd. Such as shall in good faith be conveyed to it in satisfaction of devis previously contracted in the ordinary course of business. 3rd. Such as it shall purchase at sales under judgments, decrees, or mortgages held by the association, or shall purchase in good faith to secure debts due to it. But no such association shail hold the titlu and possession of any real estate louger than three years, except for the first purpose above named. Nothing in this section shall be construed to forbid the mortgaging of real estate to such association.

SEC. 368. Shares of stock in any such association may be subscribed for, held, transferred, surrendered, withdrawn, and forfeited, and payments thereon received and receipted for, by any minor over the age of fourteen years, in the same manner and with the same binding effect as though such person were of full age, except that the said minor, or his estate, shall not be bound on his subscription to stock except to the extent of payments actually made thereon, A trustee or guardian may acquire, hold, transfer, and withdraw and receive all moneys due upon shares in such association for the use and account of any minor; but before he shall be permitted to withdraw, transfer, or receive payment upon any shares so beld, sneh trustee or

for twice the valne of the shares withdrawn, transferred, or money received, which bond shall be approved by said judge and shall be conditioned upon his faithfully accounting for the proceeds of the shares withdrawn, transferred, or money recvived, and the use thereof, and paying the sanie to said miuor at his or her majority.

SEC. 369. Such associations shall not be subject to taxation on their eapital stock, nor on their loans, advances, or mortgages, but shares in said association shall, for the purposes of taxation, be considered and held as credits, and members and hold. ers of such shares shall list the same for taxation, and the same shall be taxei in such manner and subject to snch deductions as may be provided by law for the taxation of other credits. The real estate of such associations shall be subject to taxation in the same manner as provided by law in the case of other corporations and individuals.

Sec. 370. The fees, dnes, fines, interest, premiums, and other payments of money made, contracted for, or required to be made, by any member of snch association, by virtue of or in conformity with the provisions of its constitution and bylaws, thongh the same may aggregate a greater amount, taking into account all the terms and conditions of payment to and from such member, than is or inay be allowed by the laws of this state to be taken or collected as iuterest on ordinary contracts for the payment of money, shall not make any such payment or contract therefor usurions, but all such contracts may be enforced, and such fees, dues, fines, interest, preminms, and payments collected in the same manner as other debts on contracts not usurious; Prorided, that the certificate of approval provided for in section 4 of this act (365), issued to such association, shall be conclusive evidence of such compliance with the requirements of this act as to entitle it to the benefits of this section; Prorided, further, that no association hereafter formed within this state, except such as hold such certificate of approval, shall be exempt from the operation of the usury law of this state.

Sec. 371. Every such association shall annually, and at such other times as required by the anditor of public accounts, state treasurer, and attorney general, or any two of them, file in the office of the auditor of public accounts a statement, verified by the oath of its president or secretary and approved by three of its directors, in such form as may be prescribed by the auditor of public accounts, setting forth its actual financial condition and the amount of its assets and liabilities, and furnishing such other information as to its affairs as the auditor of public accounts may require, and a copy of such annual statement shall be published in a newspaper of general circulation in the county where such association is located, three consecutive times, and due proof of such publication by affidavit shall be filed with the auditor of publie accounts. Whenever the constitution of an association fixes a date for the close of its fiscal year, the annual report of such associations (association) shall show its condition at such date; in all other cases such report shall show the condition of the association at the close of the calendar year, and no other or further notice or statement of the amount of the existing debts of such corporation shall be required to be published or given. The auditor of public accounts, state treasurer, and attorney general, or any two of them, shall have power to call for special reports from any such association, whenever in their judgment the same may be necessary or advisable. Any association failing to comply with the provisions of this section shall forfeit its charter rights.

Sec. 372. Every person who shall wilfully or knowingly subscribe, or make or cause to be made, any false statement or false entries in any books of any association organized for the purposes set forth in section one (1) of this act [363], or exhibit false papers with the intent to deceive any person authorized to examine into the affairs of such association, or shall make, state, or publish any false statement of the financial condition of such association, shall be deemed guilty of a felony; and upon conviction thereof shall be fined not exceeding ten thousand (10,000) dollars and be imprisoned in the state peniteutiary not less than one (1) nor more than tive (5) years.

SEC. 373. The person or persons appointed under the laws of this state to make an examination of corporations, firms, or individuals doing a banking business shall make an examination and report of every association organized under the laws of this state for the purposes named in section one (1) of this act [363], as often as shall be deemed necessary and proper and at least once a year, and the rights, powers, duties, privileges, and compensation of such person or persons in connection with such examinations, shall be the same as is or may be provided by law with referenes to examinations of banks and corporations, firms, or individuals transacting a banking business; and such association shall pay the same fees for such examinations as is or may be provided by law in case of the examinations of banks.

Sec. 374. Whenever it shall appear to the auditor of public accounts, state treasurer, attorney general, or any two of them, from any examination or report provided for by this act, that any building, homestead, or other association organized under the laws of this state for the purposes set forth in section one (1) of this act [363], is conducting its business in an unsafe or unauthorized manner, or is jeopardizing the interests of its members, or that it is unsafe for such association to transact business, they shall communicate such facts to the attorney general, who shall thereupon apply to the supreme court or to the district court of the county where such association is located, or to a judge of either of said courts, for the appointment of a receiver to take charge of and wind up the business of such association; and if such fact or facts be made to appear, it shall be sufficient to authorize the appointment of a receiver and the making of such orders and decrees in such cases as equity may reqnire.

Sec. 375. It shall be unlawful for any corporation hereafter organized under the laws of this state to use the words " loan and building association " or " building and loan association” as a part of its corporate name unless it shall have complied substantially with the requirements of this act; and every such corporation using such words unlawfully as part of its corporate name shall be fined, at the diseretion of the court, in any sum not exceeding twenty-five (25) dollars for each day it shall so unlawfully use such words as part of its corporate name.

Sec. 376. Any association now organized in conformity to existing laws of this state for the purposes set forth in section one (1) of this act [363], which shall vol. untarily comply with all the requirements of this act, shall be entitled to all the benefits and privileges herein granted; any such association now organized shall be required to comply with the provisions of this act in the following particulars: It shall, within ninety days after this act shall have become a law, file with the auditor of public accounts a certified copy of its articles of incorporation, constitution, and bylaws, shall make and publish reports in full compliance with section ten (10) hereof (371], shall be subject to examination in all respects as provided in section twelvo (12) hereof [373], and its affairs may be wound up in the manner provided in section thirteen (13) of this act [374], and before any amendment to either its articles of incorporation, constitution, or bylaws, hereafter made, shall become operative, a copy of such amendment shall be filed with the auditor of public accounts; and the auditor, together with the state treasurer and attorney general,

shall examine the same, and if they or any two of them shall find that such amend• ment does not introduce any unjust or inequitable feature or provision, they or

any two of them shall issue their certificate of approval and such amendment shall become valid; but if they or any two of them withhold such certificate, such amendment shall be of no effect.

SEC. 377. Every corporation, company, or association contemplating doing business in this state and having for a part of its title or name the words "loan and building association,” “ building and loan association," "savings and loan association," or "cooperative bank, saving, and investment company,” and every corpordtion, company, or association whose stock is payable by an accumulating fund in

ciation doing a business in a form and character similar to that authorized to be done by section ono (1) of this act [363], shall, if organized or incorporated in any country, state, or territory other than the state of Nebraska, be known in this actas a foreign building and loan association.

Sec. 378. It shall not be lawful for any foreign building and loan association, directly or indirectly, to transact any business in this state without first procuring a certificate of approval and authorization from the auditor of public accounts, state treasurer, and attorney general, or any two of them. Before obtaining such certificate such foreign building and loan association shall furnish the auditor with a statement sworn to by the president or secretary of the association, which statement shall show: The name and locality of the association and itemized account of its actual financial condition and the amount of its property and liabilities, the amount and number of shares subscribed, the amount which has been paid in on such shares, the number of shares redcemed, the estimated cash value of each share of its stock, and all snch other information touching its affairs as said officers, or any two of them, may require. Such foreign building and loan association shall also file with the anditor of public accounts a certified copy of the laws of the state, territory, or government under which it is incorporated, and of its charter or articles of incorporation and of the constitution and bylaws and all amendments thereto, and shall appoint an attorney in each county in which it transacts or solicits business who shall be a resident of such county, and shall file with the auditor of public accounts a written instrument, duly signed and sealed, authorizing such attorney of such associations to acknowledge service of process in behalf of such association, consenting that service of process, mesne or final, upon such attorney shall be taken and held as valid as if served upon the association according to the laws of this or any other state, and waiving all claim or right of error by reason of such acknowledgment of service. If after examination of such statements and certified copies of instruments, and after said association shall have complied with the requirements of this act as to the appointment of an attorney or attorneys, the auditor of public accounts, state treasurer, and attorney general, or any two of them, shall be satisfied that such association is solvent and that the capital and investments are secure, and that the laws, charters, articles of incorporation, constitution, and bylaws governing it afford as ample protection to the interests of its members as is afforded by the laws of this state to members of associations bereafter incorporated under the laws of the state of Nebraska for the purpose inentioned in section one [363] of this act, then the auditor of public accounts, state treasurer, and attorney general, or any two of them, may grant such association a certificate of approval authorizing it to transact business till the 31st day of January of the ensuing year, in those counties of this state in which it shall have appointed a resident attorney as above provided.

Sec. 379. The statements required of foreign building and loan associations shall be renewed annually in January in such manner as required by this act and shall be made at such other times as the auditor of public accounts, state treasurer, and attorney general, or any two of them, may deem it expedient to demand the same, and the auditor of public accounts, state treasurer, and attorney general, or any two of them, may at any time revoke the certificate of approval and authorization of any such association for canse.

SEC. 380. Any person doing business or attempting to do business in this state for any foreign building and loan association which shall not at the time be the holder of a valid certificate of approval and authorization, as provided for in section seventeen (17) of this act [378], shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be fined in any sum not exceeding one thousand (1,000) dollars, or imprisoned in the county jail not more than thirty days, or both, at the discretion of the court.

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