Page images

SEC. 10. In all suits or actions brought in any court of this state against any such corporation, not organized under the laws of this state, process served upon the secretary of state shall be good and valid to all intents and purposes, and on service of such process in duplicate it shall be the duty of the secretary of state to notify such corporation immediately.

Sec. 11. The board of bank commissioners shall make annual report to the legislature, which shall embrace a statement of proceedings taken under this act and a summary of the annual report made by each corporation.


SECTION 1. Every mutual loan, homestead and building association organized under the laws of this state, or doing business therein, shall furnish, through its secretary or other appropriate agent, to the chief of the bureau of statistics of labor and industries an annual statement of its business and condition, according to the form reqnired, and on blanks furnished by said chief, which said statement shall be duly attested, under oath or affirmation, by the treasurer and an auditing committee of the stockholders or board of directors of said association; and the said board of directors are authorized to appropriate from the current income of said association a sufficient remuneration to the secretary thereof for preparing the statement aforesaid.

SEC. 2. On any failure to make such statement, the said chief, or his authorized agent, with the approval of the governor, may make an investigation of the books, securities and accounts of any delinquent associations, which books, securities and accounts shall at all times be open to the inspection of the said chief or his duly anthorized agent, as aforesaid.

SEC. 3. It shall be the duty of said chief of the bureau of statistics of labor and industries to publish annually a concise report on the standing and condition of all the said associatious doing business in this state, and to furnish each of said associations with one or more copies of such reports.


LAWS OF 1886–87.

CHAPTER 9. SECTION 1, (as amended by chapter 108, laws of 1889). Whenever any number of persous, not less than eight, may desire to become incorporated as a mutual building and loan association, for the purpose of building and improving homesteads, and loaning money to the members thereof, they shall make a statement to that effect, under their bands and seals, duly acknowledged before some officer in the manner provided for the acknowledgment of deeds, setting forth the name of the proposed corporation, the name of the city or town and county in which the corporation is to be located; the amount of capital stock; and the number of shares into which it is divided, and the par value thereof; the number of shares subscribed for; being not less than two hundred, and that the entrance fees thereou of not less than twenty-five cents for each share subscribed have been paid in, same not to apply as instalments in stock, the number and names of the directors who are to manage its affairs for the first six months, which number shall not be less than sıx; the number of years, not more than forty, for which the incorporation is to continue, and the purpose for which it was formed. Said statement shall be filed in the office of the secretary of the territory, and a copy thereof, duly certified by the secretary, filed in the office of the recorder of deeds in the county where the business of such corporation is to be carried on.

Upon the filing with the secretary of the territory and recorder of deeds the statement above provided, the said corporation shall be deemed fully organized, and

shall be a body corporate and politic for the period for which it is organized; may su« and be sued; may have a common seal which it may alter or renew at pleasure; and suall possess all other powers incideut to do business.

SEC. 2. The corporate powers shall be exercised by a hoard of not less than six directors. The officers of the corporation shall consist of a president, vice-president, Berret.ry and treasurer. The board of directors shall be elected annually at the annual meeting of the stockholders; and all the officers of the corporation shall be elected by the board of directors at such time as may be provided for in the bylaws of the corporation. The secretary shall be the only officer entitled to compensation, and in such amount as the directors may designate by resolution. The treasurer shall give a bond to be approved by the board of directors.

SEC: 3, (as amended by chapter 108, laws of 1889). The shares of stock of all rorporations hereafter incorporated under the provisions of this act, shall be not less than two hundred dollars each. The shares of any such corporation heretofore or hereafter organized shall be deemed personal property, transferable upon the books of the company in such manner as may be provided by the bylaws, and subscriptions therefor shall be payable in such periodical instalments and such time or times as shall be determined by the bylaws; but po periodical payment of instalments sball be made, exceedling two dolla:s on each share, and every share of stock shall be sulject to a lien for the payment of unpaid instalments and other charges incurred the reon under the provisions of the bylaws, and the bylaws may prescribe the form and manner of enforcing such lien. Such lien shall be prior to all liens by attachment or otherwise. That new shares of stock may be issued in lieu of shares withdrawn or forfeited and the stock may be issued on one or successive series, as may be prescribed in the bylaws and in such amount (not exceeding the total capital stock) as the board of directors may determine. Any stock bolder wishing to with. draw from the said corporation, shall have power to do so by giving notice, at a stateil meeting of the board of directors bereinafter provided for, of his or her intention to withdraw, when he or she shall be entitled to receive at the next stated meeting of said board thu amount paid for dues and such interest thereon'or so much of the profits thereon as the bylaws may determine, less all fines and other charges; Proriiled, that at no time shall more than one-half of the funds in the treasury of the corporation be applicable to the demands of withdrawing stockholders without the consent of the board of directors, and no stockholder shall be entitled to withdraw whoso stock is held in pledge for security. Upon the death of a stockholder, his or her legal representatives shall be entitled to withdraw his or her shares of stock upou the same terms and conditions as other withdrawing stockholders except that no fines shall be charged to a deceased member's account from and after his or her decease, unless the legal representatives of such decedent assume the payment of the dues on the stock.

Sec. 4. Married women may become subscribers to the capital stock of such corporation, and bold, control, and transfer their stock in all respects as femmes soles, and their stock shall not be subject to the control of, or liable for the debts of, their husbanıs. Mino:8 may become subscribers to and owners of stock by guardian or trustee, and such guardian or trustee may withdraw the stock of such minor as privillel in section three of this act.

Sec. 5, (as amended by chapter 108, laws of 1889). Every such corporation shall lend its funds on real estate security or its own stock, and upon the terms and conditions and in the manner which may be specified by its bylaws. Such corporation may, however, employ a portion of its capital stock, vot exceeding fifty thousand dollars in amount at any one time, in the purchase of real estate and the erection of buildings thereon for rent or otherwise. It may also nse such portion of its capital as may be necessary to purchase at any sale jndicial, public or private, any real estate upou which such corporation may have or hoid any mortgage, lien or other

it may sell, convey, lease or mortgage at pleasure to any person or persons whatsoever.

Sec. 6. The board of directors of the corporation shall hold stated meetings, at which the money in the treasury, if equal to one share of stock, shall be offered for loan in open meeting, and the shareholder who shall bill the highest premium for the preference or priority of loan shall be entitled to receive a loan to any amount equal to the number of shares of stock held by such shareholder: Provided, a shareholder may borrow such fractional part of a share as the bylaws may provide. Good and ample security shall be given by the borrower to secure the repayment of the loan, which security shall be unincumbered exeept by prior loans of the corporation. In case the borrower shall neglect to offer security or shall offer security that is not approved by the board of directors, by snch times as the bylaws may provide, he or she shall be charged one month's interest, together with any expense incurred, and the money may be reloaned at the next stated meeting. In case of non-payment of instalments of interest and fines by borrowing stockholders, for the space of six months, payment of principal and interest and fines, without deducting the premium paid or interest thereon, may be enforced by proceeding on the securities, according to the conditions and power of sale contained in the mortgagre, or by snit in equity to f-sreclose the same. No loan shall be made by such corporation except to its owu members, unless it shall happen at any time that there is no demand by any of its shareholders for the funds; then such funds may be loaned to others who are not shareholders.

Sec. 7, (as amended by chapter 108, laws of 1889). A borrower may replace a loan at any time, and in case of the repayment thereof before the expiration of the eighth year after the organization of the corporation, there shall be refunded to sneh borrower one-eighth of the premium paid for every year of the eight years then unexpired; and in case of recovery of loans by process of law or foreclosure under the power of sale in the deed of trust or mortgage the excess recovered beyond the amount requireil to pay the loan with interest, charges, fines, costs and attorney's fees shall be returneil to the borrower from whom the money was collected or his or her legal representatives :

Prorided, that when a borrower shall pay monthly the premium bid for priority of loan, said borrower shall not be entitled to have refunded to him any portion of the premium so paid.

SEC. 8, (as amended by chapter 108, laws of 1883). Every such corporation shall terminate, except for the purpose of settling its affairs, whenever its shares in each and every series thereof have been redeemed by loans or advances thereon, or whenerer the funds and property of the corporation shall be sufficient to pay npon the unreleemed shares the value thereof, as fixed by the bylaws of such corporation, which said bylaws and all amendments of the same shall be filed in the office of the seeretary of the territory and the recorder of deeds in the county where the business of such corporation is carried on within thirty days after adoption. No members of suen corporation shall be allowed to vote when in arrears for interest, dues or fines or upon any question affecting the claim of such corporation against him or her.

Sec. 9, (as amended by chapter 108, laws of 1889). All corporations heretofore incorporated under the laws of the territory of New Mexico for the purpose of accumulating and loaning funds to its members, or that have been so accumulating and loaning funds to its members as building and loau associations, are hereby recognized and confirmeil as legal and valid corporations from their date of incorporation; all contracts made between them and their mein bers, all loans made, at whatsoever premium, discount or interest, and all security taken for such lo:ins are hereby declared legal, valid and binding on all parties concerned or affected thereby. No interest or premium paid on a loan of any corporation organized under the provisions of this act, no premium or interest paid or agreed to be paid on a loan made by any building and loan association heretoworo organized for the purpose of accumu

lating and loaning funds to its members, no fines or charges assessed under the bylaws of such corporation, shall be deemed usurious or subject to the provisions of chapter 2, sections 1732 to 1739, of the compiled laws of the territory of New Mexico, and all such interest and premium incorporated in notes given to such corporation, and all fines and charges assessed against its members in accordance with its bylaws, may be collected according to law.

Sec. 11, (added by chapter 108, laws of 1889). The secretary of every association incorporated or doing business with (within) this territory shall, within twenty days after the close of each fiscal year of such association, file with the secretary of the territory of New Mexico a statement under oath of the receipts and expenditures of such association for such year its assets and liabilities, the number of shares of its capital stock issued, withdrawn and in force in each series of stock during such year, also the number of shares of stock loaned upon each series of stock. Such statement shall also be verified under oath by at least three members of such association not officers thereof.

SEC. 12, (added by chapter 108, laws of 1889). It shall be the duty of the secretary of the territory whenever five or more stockholders of any such association request in a statement of facts, made and sworn to by the same, or whenever ho shall deem it expedient so to do in person or by one or more persons to be appointed by him for that purpose, not officers or agents of or in any manner interested in any such association doing business in this territory, except as stockholders, to examine into the affairs of any such association incorporated in this territory or doing business by its agents in this territory, and it shall be the duty of the officers or agents of any such association doing business in this territory to cause their books to be opened for the inspection of the secretary of the territory or the person or persons so appointed, and otherwise facilitate such examination so far as it may be in their power to do; and for that purpose the secretary, or person or persons so appointed by him, shall have the power to examine under oath the officers and agents of such association relative to tho business of any such association; and when the secretary of the territory shall deem it for the best interests of the public so to do he shall publish the result of any such investigation in one or more newspapers of general circulation published in this territory, and annually on or before the first day of January in each year the secretary of the territory shall report to the governor the financial condition of all such associations doing business in this territory; Provided, that said association shall not be subject to any expense in any manner by reason of such examination or publication.

Sec. 13, (added by chapter 108, laws of 1889). And whenever it shall appear to the said secretary of the territory, from such examination, that the assets of such association, incorporated or doing business in this state (territory), are insufficient to justify the continuance in business of any such association, he shall communicate the fact to the attorney general, whose duty it shall then become to apply to the distriet court of the county in which the principal office of said association shall be located for an order requiring it to show cause why the business of such association shall not be closed, and the court shall thereupon proceed to hear the allegations and proofs of the respective parties, either in open court or upon a reference to a master in chancery, and in case it shall appear to the satisfaction of the said courts that the assets and funds of said association are not sufficient as aforesaid, or that the interest of the public requires, the said court shall decree a dissolution of the said association and a distribution of its effects.

SEC. 14, (added by chapter 108, laws of 1839). Any such association may allow reasonable compensation to its auditing committees for their services as such, and may, for the legitimate purposes of such association, on a vote of a majority of



(PAGES 1762-1765.)

CHAPTER 122, LAWS OF 1851.

SECTION 1. Any number of persons not less than nine, may associate and form an incorporated company for the purpose of accumulating a fund for the purchase of real estate, the erection of buildings, or the making of other improvements on lands, or to pay off incumbrances thereon, or to aid its members in acquiring real estate, making improvements thereon, and removing incumbrances therefrom; and for the further purpose of accumulating a fund to be returned to its members, who do not obtain advances as 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. Such persons shall severally subscribe articles of association, in which shall be set forth the name of the corporation, the time of its regular meetings, and how special meetings may be called, and what shall constitute a quorum to transact business at meetings; the qnalification of members and how constituted; what officers, trustees and attorney there shall be, and how and when chosen, and their duties, and how removed or suspended from office; the entrance fee of new members and new shares, the monthly or weekly dues per share, the redemption fee on shares on which advances shall be made, and fees to be paid on the transfer of shares; the fines and penalties for non-payment of dues or fees, or other violation of the articles of association; the manner of redemption of shares by advances made thereon, the mortgaged security to be taken on such advances, and how the same may be redeemed or changed; the manner of the transfer or withdrawal of shares; the manner of investing funds not required for advances on shares; the qualifications of voters at the meetings, and the mode of voting; the ultimate amount to be paid to the owners of nnredeemed shares; the manner of altering or amending the articles of association, and such other provisions as shall be necessary for the convenient and effective transaction of the business thereof; provided that the same shall not in any respect contravene the constitution or laws of this state.

SEC. 3. A true copy of such article, signed by the officers of the association, together with a statement showing when the association was organized, and the place of the transaction of its business, and the names of the officers and trustees at the time of the making of such statement, which shall be verified by oath or affirmation before any officer authorized to take affidavits, to be used in courts of justice, shall be filed in the office of the clerk of the county in which such association shall transact its business; and thereupon the persons who have subscribed the articles of association as aforesaid, and such other persons as shall become members of such association, and their successors, shall be a body corporate by the name specified in such articles of association, and shall possess the powers and privileges, and be subject to the provisions of title third of chapter eighteen of the first part of the Revised Statutes, so far as those provisions are consistent with the provisions of this act, and they shall by their corporate name, be capable in law of purchasing, holding and conveying any real and personal estate whaterer, which may be necessary to enable said company to carry on their operation named in such certificate.

SEC. 4. It shall be lawful for the trustees to call in and demand from the stockholders, respectively, all such sums of money by them subscribed, at such times and in such payments or instalments as the articles of association shall prescribe, under the penalty of forfeiting the shares of stock subscribed for, and all previous payments made thereon, if payment shall not be made by the stockholder within sixty days after a personal demand or notice requiring such payment shall have been pub

H. Ex. 209— 40

« PreviousContinue »