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tion and of periodical meetings of the officers and shareholders, how special nieetings may be called, regulating the due conduct of the business of the corporation, defining the duties of its officers and committees, the mode of determining and declaring the withdrawing value of shares, and making such other regulations in regard to the transaction of the business of the corporation as are not inconsistent with law.

The board of directors shall each year determine the compensation of the treasurer and secretary, and they may appoint and remove at pleasure an attorney for the corporation.

Sec. 182. The capital of every such corporation shall consist of the accumulated savings of its members, which it holds, and shall not exceed at any time one million dollars; and shall be divided into shares of the matured value of two hundred dollars each.

The total number of shares outstanding at any time shall not exceed ten thonsand. The shares shall be issued in yearly or half-yearly series in such amounts in each series and at such times as shall be prescribed by the bylaws. No shares of a prior series shall be issued after the issuing of shares in a new series. Shares which have not been pledged as a collateral security for the repayment of a loan shall be called unpledged shares. Shares which have been so pledged shall be called pledged shares. No person shall hold more than ten unpledged or twenty pledged shares in any one series. Each shareholder shall be entitled to one vote at all meetings of the shareholders for each share owned by him or held by him as trustee, not in arrears for dues.

Sec. 183. Savings paid to the corporation upon shares shall be called dues. At or before each stated monthly or semi-monthly meeting of the board of directors, each shareholder shall pay to the board or a committee thereof, one dollar dues upon each share of stock held by him until the share reaches the value of two hundred dollars, or is withdrawn, cancelled or forfeited. Payment of dues on shares of each series shall commence from its issue. Fines may be imposed and collected, not exceeding ten per cent for cach month in arrears, for every dollar of dues or interest which a sharcholder shall refuse or neglect to pay at the time it is due. An entrance fee may also be charged not exceeding twenty-five cents on every share of stock issued by the corporation.

Sec. 184. The accumulations upon unpledged shares may be withdrawn, and the shares cancelled, after one month's written notice of such intention filed with the secretary at or before a stated monthly meeting of the board.

If filed before sueh meeting, the one month's notice shall not be deemed to have commenced until the first regular meeting after filing. The withdrawing shareholder shall be paid the amount of the withdrawal value of his accumulations as determined under the bylaws at the last distribution of profits before the notice of withdrawal, together with all dues paid since such distribution, and such interest on the value of the shares at the time of the last distribution and on the dues thereafter paid as the bylaws shall determine, less any fines unpaid and a proportionate share of any unadjusted loss; but not more than one-half of the receipts of the corporation, and when the corporation is indebted on matured shares not more than one-third of such receipts, shall be applicable to the payment of withdrawing shareholders without the consent of the board of directors. When the demands of ithdrawing shareholders exceed the moneys applicable to their payment, they shall be paid in the order in which their notices of withdrawal were filed with the secretary, The board of directors may in their discretion, under rules made by them, retire the uupledged shares of any series at any time after four years from the date of their issue by enforcing withdrawals of the same; but the shareholders whose shares are to be retired shall be determined by lot, and they shall be paid the full value of their shares, less all fines and proportionate part of any unadjusted loss.

hundred dollars, all payment of dues thereon shall cease, and the holder thereof shall be paid out of the funds of the corporation, two bunarod dollars therefor, with such rate of interest as shall be determined by the bylaws from the time the board of directors shall have declared such shares to be matured until paid; but at no time shall more than one-third of the receipts of the corporation be applicable to the payment of matured shares without the consent of the board of directors. The order of the payment of matured shares shall be determined by the board of directors.

SEC. 186. At cach monthly stated meeting, immodiately following the receipt of dues and interest, the board of directors shall offer to members of the corporation desiring to borrow, all accumulations applicable to that purpose, in sums of two linndred dollars, the value of a matured share, or a multiple thereof, or the fractional parts of one-fourth or onc-half thereof. If more than one member desires to borrow, the right to the loan shall be determined by an open bidding of a premium per share, and the member bidding the highest premium shall be entitled to the loan upon giving proper security; and the amount of the premium paid shall bo deducted from the snm loaned at tho time of loaning, and the receipt thereof shall not be deemed a violation of the usury laws. No member can borrow a larger sum than shall be equal to the matured value of the shares held by him. A borrowing member, for each share or fractional part thereof borrowed upon, shall, in addition to the dnes on his shares, pay monthly interest on his loan at the rate of six per cent per annum, or such lower rate as the bylaws shall name, until the shares borrowed upon reach the matured value of two hundred dollars each, or the loan is repaid; and when such matured value is reached, the loan upon it shall be paid out of the share, and the proper surrender and acquittances be made.

SEC. 187. Every loan mave shall be secured by a bond and a first mortgage upon unincumbered real property, with a transfer and pledge to the corporation of the shares borrowed upon, and all accumulations that have or shall accrue thoreon; but in lieu of the mortgage the borrower, or another, may transfer and pledge to the corporation for the payment of the loan, unpledged shares, the withdrawal value of which, under tho bylaws, at the time of such borrowing, shall exceed the amount borrowed and interest thereon for six months. The right to the loan shall be forfeited if the borrower neglects to offer security satisfactory to the board of directors within the time provided by the bylaws, and he shall be charged with one month's interest and all necessary expenses incurred, if any, under the bylaws, in reference to his proposed loan. All bonds and mortgages given to the corporation shall be deemed conditioned upon the performance of the provisions of this chapter relating to the repayment of loans and interest thereon, and the bylaws of the corporation, although not fully expressed therein. A borrower may repay the loan and all arrears of interest and fines thereon, or one share thereof, at any stated monthly meeting, or at any other time, but when not made at a stated meeting he shall pay interest up to the first monthly meeting after such payment. He may repay his loan in full and release the shares from liability upon the pledge thereof, or he may, by a proper notice and direction as to the application have the withdrawal value of the shares borrowed upon applied in payment or part payment of his loan.

SEC. 188. When any member shall be six months in arrears in the payment of dues upon un pledged shares, the secretary shall give him notice thereof in writing, and a statement of his arrearages by mailing the same to him at the last post office address given by him to the corporation, and if he shall not pay the same on or before the second stated monthly meeting thereafter, tho board of directors may, at their discretion, declare his shares forfeited; and at the time of such forfeiture, the withdrawal value thereof shall be determined and stated, and the defaulting member shall be entitled to withdraw the same without interest within one year, upon such notice as shall be required of a withdrawing shareholder. If a borrowing member shall be six months in arrears in the payment of his dues and interest, or either, the whole loan shall become due at the option of the board of directors, and

they may proceed to enforce the collection upon the securities held by the corporation. The withdrawal value at the time of the commencement of the action of all shares pledged as collateral security for the loan shall be applied upon the loan and arrearages of interest and fines thereon, and the shares deemed surrendered to the corporation.

Sec. 189. Any such corporation may purchase at any sale, public or private, any real property upon which it may have a mortgage, judgment, lien or any other incumbrance, or in which it may have any interest, and may sell, convey, lease or mortgage the same at pleasure to any person or persons. It may also borrow money, but not for a longer period than one year, for the purpose of making loans or paying withdrawals, not exceeding two thousand dollars, when its accumulated capital is less than ten thousand dollars; and not exceeding six thousand dollars when its accumulated capital shall be ten thousaad dollars and over, and not more than sixty thousand dollars; and if its accumulated capital exceeds sixty thousand dollars, it may borrow money for such purposes not exceeding ten per cent of its accumulated capital.

If any such corporation has a surplus in its treasury for which there is no demand for loans, withdrawing shareholders or matured stock, it may loan the same to any other corporation organizeil under the provisions of this article, subject to the provisions of this section on the part of the borrowing corporation. No corporation shall borrow or make loans authorized by this section except by a two-thirds vote of its board of directors, which shall be recorded by ayes and nays in its regular minutes.

Sec. 190. Profits and losses shall be distributed at least annually and always before issuing a new series of stock to all shares in all series outstanding at the time of such distribution, in proportion to their holding value as distinguished from their withdrawing value, except that, in addition thereto, a distribution of not exceeding tho amount of the entrance fee, in the discretion of the board of directors, may be made to each share outstanding in the last series issued prior to the distribution. At each periodical distribution of profits, thu board of directors may reserve and carry as undistributed profits, in the nature of a guaranty fund, any sum from tho net profits that in their discretion seems wise, to be applied upon any future losses that may occur from any cause whatever.

SEC. 191. Any person of full age and sound mind may become a member of the corporation by taking ono or more shares therein and subscribing tho bylaws, and annexing to his signature his post office address; and when he desires his post office address changed, he shall give written notice thereof to the secretary of the corporation; and for the purpose of giving any member notice by mail, the last post office address given by him shall be deemed the proper one. A minor may hold shares in the nanie of a parent, guardiau or next friend as trustee for him.

No transfer of shares shall be binding upon the corporation until the same has been made upon its books; and the transferee thereof shall take the same charged with all the liabilities and conditions attaching thereto in the hands of the person transferring the same; and the corporation may require a transfer fee not exceeding twenty-five cents per share.

All accumulations upon shares held by any person shall be exempt from execution and proceedings supplementary thereto to the amount of six hundred dollars; and the corporation shall be deemed an institution for savings and not taxable under any corporation tax law, which shall exempt savings banks or institutions for savings from taxation; and no such corporation shall be liable to pay any tax upon its organization or as a condition thereof.


CODE OF 1883.

SECTION 2294. It shall be lawful for any individuals or persons in any city or county in this state, under any name by them to be assumed, to associate for the purpose of organizing and establishing homestead and building associations, and being so associated shall, on complying with this chapter, be a body politic and corporate, and as such shall be capable in law to hold and dispose of property, both real and personal, may have and use a common scal, may choose a presiding and other officers, may enact bylaws for the regulation of the affairs of such corporation, and compel the due observance of the same by fines and penalties, may suo and be sued, plead and be impleaded, answer and be answered in any court in this state, and do all acts necessary for the well ordering and good government of tho affairs of such corporation, and shall exercise all and singular the powers incident to bodies politic or corporate: Provided, that before any such corporation shall be entitled to the privileges of this chapter, they shall lodge with the clerk of the superior court of the county where such corporation is designed to act, a copy of the articles of association of such corporation, signed by at least seven members and certified by the secretary thereof, to be recorded in the office of such clerk, and shall pay a tax of twenty-five dollars to said clerk, which tax shall be paid over by the clerk to the treasurer of the county, to the use of the school fund of the county.

SEC. 2295. Any addition, alteration or amendment of, the articles of association of any such corporation snall be signed, certified and recorded as is provided in the preceding section of this chapter.

SEC. 2296. Any corporation created under and by virtue of this chapter, shall have power to declare in their articles of association the number of shares of which the capital stock of such corporation shall consist, the par value of tho samo, to limit the number which each stockholder may be allowed to hold, to prescribe the entrance fee to be paid by each stockholder at the time of subscribing, to regulate the instalments to be paid on each share, and the times at which the same shall be paid and payable.

SEC. 2297. Any such corporation shall have power to issue to each member of such corporation a certificate of the shares of stock held by him, and to enforce the payinent of all instalments and other dues due to said corporation from the members or stockholders by such fines and forfeitures as the corporation may, from time to time, provide in the bylaws or articles of association of such corporation.

SEC. 2298. Any person applying for membership or stock in any such corporation after the end of a month from the date of its incorporation, may be required to pay, on subscribing, such sums or assessments as may from time to time be fixed, and assessed in manner as may be provided by said corporation, in order to place such new member or stockholder on like footing with the original members and others holding stock at the time of such application: Provided, that any association that has been or may be organized under this chapter shall be authorized and empowered to establish one or more additional class or classes of shares, under such rules, regulations and restrictions for issuing, paying and redeeming the same as to them shall appear expedient and proper, not inconsistent with this chapter, or laws of the state.

SEC. 2299. It shall be lawful for any such corporation at any time in advance of the time at which such corporation shall cease to exist, according to the plan contained in the articles of association thereof, to advance to any member thereof for such premium as may be agreed upon, the sum which he would be entitled to receivo upon the dissolution thereof, for any number of shares therein held by him, or to purchase from any member the share or shares of stock held by him at such price or sum as, according to the articles of association, such member may agree to receive, and on payment of said sum of money, to receive from such member security as is

hereinafter mentioned for the payment by such members to said corporation of the unpaid instalments, to be paid on the share or shares of stock so sold or redecined, together with interest at the rate of eight per cent per annum, on the sum of money so paid or advanced to such member at such times, and under and subject to such fines and penalties for non-payment thereof as may be preseribed by the artieles of association of such corporation.

Sec. 2300. The payment of the unpaid instalments on the share or shares so purchased or redeemed, with interest upon the sum of money paid therefor as aforesaid, at the rate heretofore mentioned, and all fines and penalties incurred in respect thereof by any such member, shall be secured to snch corporation by way of mortgage on real or leasehold property, or by hypothecation of stock of such corporation held by such member as may be provided in the articles of association of any such corporation: Provided, in case of hypothecation of stock, no greater sum of money shall at any time be drawn out by any member than shall bave already been paid in by him on all his shares at the time of such hypothecation.

SEC. 2300a, (added by chapter 434, public laws of 1893). Every non-resident building and loan association doing business in this state shall appoint a general agent or attorney, who shall be a citizen and resident of this state, and file a certificate of such appointment with the auditor of state, and copies of such certificates of appointment, certified by the said auditor, shall be received as sufficient eridences of such appointment before any court in this state, and such certificate shall contain a stipulation agreeing that so long as there may be any liability on the part of the applicant under any contract entered into in pursuance of any law of this state, process may be served in the absence of the principal upon such general agent or attorney: Provided, that service may be made upon the auditor of state, and it shall be his duty in such case to transmit at once a copy of tho process to the home office of the association.

Sec. 23000, (added by chapter 434, public laws of 1893). Every association doing business under this chapter shall file in the office of the auditor of state, on or before the first day of March in each year, in such form as he shall prescribe, a statement of the business standing and financial condition of the applicant on the preceding thirty-first day of December, signed and sworn to by said principal or by the chief managing agent, attorney or officer thereof before the auditor of state, or before a commissioner

of affidavits for North Carolina, or before some notary public. SEC. 2300c, (added by chapter 431, public laws of 1893). Every association doing business under this act shall file in the office of the auditor of state a copy of the charter, articles of association, or other statement, showing the mode in which the applicant proposes to do business.

Sec. 2300d, (added by chapter 434, public laws of 1893). It shall be the duty of the auditor of state to receive and thoroughly examine each annnal statement required by this act, and if made in compliance with the requirements of this act to publish an abstract of the same in one of the newspapers of the state, to be selected by the general agent or attorney making such statement, and at the expense of his principal. The auditor of state shall be entitled to a fee of five dollars, to be paid by tho association filing such statement.

SEC. 2300e, (added by chapter 431, public laws of 1893). Ifthe auditor of state shall becomo satisfied at any time that any statements made by any association licensed under this act shall be untrue, or in case a general agent shall fail or refuse to obey the provisions of this act, the auditor of state shall notify the state treasurer of such default, and the state treasurer shall thereupon have power to revoke and cancel such license.

SEC. 2300f, (added by chapter 434, public laws of 1893). It shall be the duty of any person having in his possession or control any books, accounts or papers of any association licensed under this act to exhibit the same to the auditor of state on

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