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SEC. 7. Every building and loan association organized under the provisions of the Public Statutes shall pay annually, to the collector of the town or city in which the association is located, a tax equal to the rate of taxation in the place where the association is located, upon the whole amount paid upon its stock or shares which are in foree, less the amount of notes held by it secured by mortgages upon the homestead of the debtor, upon which the debtor pays a tax in this state, and no other tax shall be assessed upon such stock or shares or against the holders on ae count thereof. SEC. 12. The taxes assessed as aforesaid upon

building and loan associations, and other similar corporations,

shall be in lieu of all other taxes against the corporations and against their stockholders and depositors on account of their interests therein.

SEC. 13. If any such corporation shall not pay its taxes when due, it shall pay interest thereon from that time at the rate of ten per cent per annum.

CHAPTER 162.

SECTION 6. The board [bank commissioners) shall have general supervision of allo loan and building associations, and other similar institutions in the state. The members shall examine into the condition and management of all such institutions once at least each year, and oftener when so directed by the governor. Upon such examinations they shall inspect all their books, papers, notes, bonds, and other evidences of debt, sball ascertain the quantity of specie and other money and funds on hand, and shall make all inquiries necessary to learn their ability to perforn their engagements, and to learn whether they have violated any provision of law.

SEC. 7. Any commissioner may examine, under oath by him administered, any officer, agent, or servant of any such institution, or any other person, in relation to the affairs and condition of the institution.

SEC. 8. The treasurers of all institutions under the supervision of the bank commissioners shall balance their books at the close of business on the first business day in July in each year, and within fifteen days thereafter shall make reports to the commissioners upon blanks furnished by them, showing the true condition of the institutions at that time. The commissioners shall prescribe what information the reports shall contain and their form, and shall seasonably furnish blanks upon which they are to be made.

SEC. 9. The board shall file with the secretary of state, on or before the first day of October in each year, their annual report, which shall contain a statement of all items of expense of each institution under their supervision, of the names of the treasurer and clerks of each, of the amount of each treasurer's bond, of the salary or compensation paid to each treasurer, of the kinds and amounts of stocks and bonds held by each institution, with the par valne, cost, and market value thereof, and of the true condition of each institution. They shall make such recommenda tions therein as they think will promote the public good.

SEC. 10. If any bank commissioner shall, in the annual report of the bank commissioners, make a statement which purports to be the condition of an institution under their supervision without having fully and carefully examined into the condition of such institution, or shall make a false statement of the condition of any institution with intent to deceive, he shall be fined not exceeding one thousand dollars, or be imprisoned not exceeding five years, for each offence.

SEC. 12. If any institution placed under the supervision of the bank commissioners shall refuse to permit an examination of its affairs by the commissioners or shall refuse to furnish the necessary facilities therefor, or if it is judged by the commissioners to be necessary for the public safety that it should not continne to transact business, the commissioners shall represent the facts by petition to some justice of the supreme court.

SEC. 13. Such justice shall issue an injunction, prohibiting, so far as may be thought necessary, the transaction of business by such institution, and the commissioners shall cause the same to be duly served.

CHAPTER 165.

SEC. 30. No officer or employé of a

loan and building association shall directly or indirectly receive any fee, present, or benefit whatsoever from any borrower or applicant for a loan from such institution as an inducement to making the loan, or from any one negotiating securities to the institution, except the usual compensation for drawing mortgages and other papers pertaining to the loan; por shall any such officer or employé negotiate loans in their own behalf with themselves as officials of the bank.

SEC. 31. If any officer or employé of any institution mentioned in the preceding section shall violate the provisions of the section, he shall be fined not exceeding ten thousand dollars, or be imprisoned not more than ten years, or both. SEC. 32. If any officer of a

building and loan association, shall embezzle, abstract, or wilfully misapply any of the moneys, funds, or credits of the institution, or shall make any false entry in any book, report, or statement of the institution with intent in either case to injure or defraud it or any corporation, or person, or to deceive any officer of the institution, or any committee or examiner appointed to examine the affairs of the institution, or the bank commissioners, he shall be fined not exceeding twenty thousand dollars, or be imprisoned not exceeding ten years.

CHAPTER 166.

SECTION 1. Twenty-five or more persons of lawful age may associate together by articles of agreement and form a corporation for the purpose of accumulating the savings of its members and of loaning the funds so accumulated to them to enable thim to purchase homesteads and to improve their condition.

SEC. 2. The articles of agreement shall set forth the name of the corporation, the object for which it is established, the place in which its business is to be carried on, and the limit of the capital to be accumulated by it; and shall be signed by the parties who unite to form the corporation, and they shall affix to their siguatures their post office addresses.

SEC. 3. The name assumed by the corporation shall indicate that it is a cooperative building and loan association, and shall not be one that is in use by any other corporation. It shall not be changed except by the legislature.

SEC. 4. The articles of agreement shall be recorded in the office of the clerk of the town in which the business of the corporation is to be carried on, and in that of the secretary of state. When so recorded, the siguers thereof and their associates and successors shall become and be a corporation having all the rights and powers and being subject to all the duties, liabilities, and restrictions of similar corporations, except so far as the same are limited or enlarged by this chapter.

SEC.5. The capital stock of any such corporation shall not exceed at any time one million dollars, and shall be divided into shares of the ultimate value of two hundred dollars each. The shares may be issued in quarterly, half-yearly, or yearly series,-each series to consist of such number of shares as the members may determie,-but no shares of a prior series shall be issued after the issue of a new series has been begun.

SEC. 6. No person shall hold more than twenty-five shares of the capital stock of any one such corporation at a time.

SEC. 7. Each shareholder shall be entitled to give one vote upon any proposition brought before a meeting of shareholders, and no more; and no shareholder shall

Sec. 8. Any such corporation may collect of its shareholders monthly dues of one dollar upon each share held by them until the ultimate value of the shares reaches two hundred dollars each, or they are withdrawn, cancelled, or forfeited; and shall loan the money so collected, together with the interest, premiums, fines, and profits arising from the business, to those of its sliareholders who will pay the highest premiam for such loans above the legal rate of interest, and will give satisfactory security for the payment thereof, including a pledge of shares of the capital stock of the corporation of the same amount as the loan. If it is unable to loan all its money to shareholders, it may loan it to others at a rate of interest not exceeding the lawful rate, upon mortgages of improved real estate of a value exceeding the amount of the loan by fifty per cent at least, or upon other security deemed to be equally good.

Sec. 9. It may impose fines upon its shareholders, and upon those of its borrowers who are shareholders, for the non-payment of dues, interest, and premiums as they become due, not exceeding two per cent a month upon the sums unpaid, and not extending beyond a period of six months from the time of the first default; and it shall have a lien upon the shares of delinquent shareholders for all sums due to it from them, and may dispose of the shares to enforce the lien, as provided in the bylaws.

Sec. 10. It may purchase houses, or may purchase land and erect houses thereon, and may sell or lease the same to its shareholders.

SEC. 11. The interest, premiums, fines, and profits received by the corporation, less losses and the amount paid for the necessary expenses of the business, shall be equitably distributed among the shares and added to the dnes paid by the shareholders at least once a year, until the value of each share in the series reaches two hundred dollars, when it shall be paid to the shareholder and the share shall be retired.

Sec. 12. Any shareholder may withdraw from the corporation by giving notice of his intention to do so, thirty days at least prior to the withdrawal; but the directors may decline to use more than one-half of the funds in the treasury to meet the demands of withdrawing shareholders, in which case such shareholders shall wait until funds accumulate and shall be paid in the order in which they gave their notices and without interest or profits after the date fixed by them for the withdrawal.

SEC. 13. If the withdrawal takes place within a year after the shareholder became a member of the corporation, he shall be entitled to receive the amount of the dues paid by him, without interest or profits, less all fines and other charges against him and his proportionate part of any unadjusted loss; if it does not take place until after the expiration of such year, he shall be entitled to receive the value of his shares, as determined by the directors, less his fines, charges, and proportionate share of unadjusted losses, and less such proportion of the profits previously credited to the shares as the bylaws provide.

Sec. 14. At any time after four years from the date of issue, the directors may, pursnant to the provisions of the bylaws, if any, on the subject, retire unpledged shares of any series and compel their withdrawal by paying to the shareholders the amount of dues paid upon the shares, and the proportion of profits belonging to them according to the last preceding adjustment and valuation of shares, less the amounts due from such shareholders for fines and other charges and for their proportionate shares of unadjusted losses, if any. If all unpledged shares are not so retired, the directors shall determine by lot which shall be retired.

SEC. 15. Upon the death of a shareholder, his legal representatives shall be entitled to receive the full amount paid in by him, together with an equitable proportion of the interest and profits pertaining to his shares, less all fines and charges against him at the time of his decease, and a proportionate share of any unadjusted losses then existing.

Sec. 16. The officers of the corporation shall hold monthly meetings for receiving dues from and selling loans to shareholders.

SEC. 17. The contracts which snch corporations are authorized to make as set forth in this chapter shall not be deemed to be usurious, but the dnes, premiums, fines, and interest arising from such contracts may be collected as other debts.

Sec. 18. All building and loan associations hercafter organized under the provisions of this chapter shall notify the bank commissioners of their organization before beginning business and the bank commissioners shall have power to prescribe the form of books to be used by them.

LAWS OF 1893.

CHAPTER 62.

SECTION 1. It shall not be lawful for any building and loan association not organized under the laws of this state to transact any business in this state, unless sneh association shall possess assots of at least five hundred thousand dollars ($500,000) and shall first obtain a license from the bank commissioners authorizing the association so to do; and the bank commissioners may refuse to issue such license, or revoke the same after it is granted, if for any reason they become satisfied that the condition of said association is such as to make the transaction of its business within the state hazardous or unsafe. Before receiving such license, the association shall file with the bank commissioners a certified copy of its charter and bylaws, and a full statement, under oath, of its president and secretary, showing the financial condition anal standing of the association, in accordance with blanks furnished by them, and thereafter shall file an annual statement within twenty days after the first day of May. Upon receiving such copies and statements, if the commissioners are satisfied with the same, and that the association meets and has complied with all the requirements of this chapter, they shall grant such license, authorizing such association to do business by anthorized agents until the first day of May thereafter; and annually thereafter, on the first day of May, such license may be renewed, so long as such association shall comply with the requirements aforesaid and the commissioners shall regard the association as safe, reliable, and entitled to public confidence. The bank cominissioners may also require returns to be made to them, showing the condition of said associations, in such forms and at such times as they may eleet. For each license anıl renewal, as above, the association shall pay to the state treasurer the sum of twenty-five dollars ($25).

Sec. 2. The name “ building and loan association,” as used in this act, shall incinde 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. 3. If any state shall, by its laws, deny any building and loan association of this state, doing business in such other state, any rights or privileges which are granted to building and loan associations of that state, then this state shall, in like manner, deny to building and loan associations of that state all such rights and privileges, and they shall be subjected in this state to all the restrictions, taxes, tines, license fees, deposits, burdens, and penalties imposed by that state upon building ani loan associations of this state.

Sec. 4. Any officer, director, or agent of any foreign building and loan association. or any other person whatever, who shall in this state solicit sabscriptions to the stock of such association, or who shall sell or issne, 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 bank commissioners authorizing it do business in this state as herein described, or before said association has complied with all the provisions of this act, or when said association shall have been notified

guilty of a misdemeanor, and upon conviction thereof shall be punishexl 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.

NEW JERSEY

REVISION OF 1877.

(Page 92.)

SECTION 1. Any number of persons, not loss than five, may associate and form an incorporated company for the purpose of assisting each other, and all who may afterwards become associated with them in acquiring real estate, making improvements thereon, and removing incumbrances therefrom, by the payment of periodical instalments; and for the further purpose of accumulating a fund to be returned to its members who do not obtain advances, for purposes above mentioned, when the funds of such association shall amount to a certain sum per share, to be specified in the articles of association.

SEC. 2. Any such persons who shall sign a certificate, setting forth that they have formed such an association under the provisions of this act, and the name adopted for sneh association, and the city, borongh or township where it is to be located and its business transacted, and who shall cause the same to be delivered to the clerk of the county which embraces the place of its location, thereupon, together with all who may afterwards become members, their snecessors and assigns, shall be a body corporate and politic in law, with all the powers mentioned in the first section of the act entitled “ An act concerning corporations."

SEC. 3. The said clerk shall immediately file said certificate, and record the same in a book to be kept for that purpose, for which he shall be entitled to receive the bum of twenty-five cents.

SEC. 4. Parents or guardians may take and hold shares in such associations in behalf of their minor children or wards, and trustees in behalf of married women, and may act in such association in behalf of those they represent.

SEC. 5. The right of membership in all associations formed under this act shall consist in the periodical payment of such sum of money, at such times, and subject to such penalties as shall be determined by the constitution adopted and filed as aforesaid, or in the payment of a principal sum specified in such constitution to be repaid by the company, in such way and manner as shall therein be designated, with interest, not exceeding seven per centom per annum.

Sec. 6. The funds of every association formed under this act shall be invested in the purchase of lands or building lots, and erecting buildings and improvements thereon, or in the purchase of lots and houses already built; which lands, dwellin: s and improvements shall be sold to the members of such associations, payable in tho shares of the company, or in periodical instalments for a period such as shall be agreed upon and designated in their constitution, and which shall not exceed the ti rin of twenty years; at the expiration of which term the lands, dwellings and improvements so sold and conveyed to the members of such associations, shall become the property of the grantees, discharged from all further payment, and clear of all encumbrance; or in loans to members on mortgage of real or personal estate, payable in shares of said company, or by such periodical instalments; or in the redemption of shares, or in all or any of these modes.

Sec. 7. It shall be lawful for married women and minors to hold shares in any associations formed under this act; Provided, said shares are paid for out of the earnings of said married women and minor children, or with money given to them by others than the husbands of said married women, or the malo parents of minor children.

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