Page images

SEC. 12. All of the officers of any building and loan association governed by this act, and doing business in this state, who handle any of the funds of such associations, shall give sufficient bonds for the faithful performance of their duties as the board of directors may require, and no such officer shall be deemed qualificd to enter upon the duties of his office until his bond is approved by the board of directors, with whom such bonds shall be filed; Provided that the state treasurer may require of any association, at any time, such increase of said bond, or additional sareties thereto, or such increase of said insurance as bo may deem necessary for the protection of the members. The penalty for a failure of any association to file and maintain the bonds or policy, as required by the provisions of this section, shall be a fine of one hundred dollars ($100) for each day such association transacts business after such bond has become due under the provisions of this act, said bond or policy shall be held in trust for the benefit and protection of the members of such association, and shall be enforceable by any member whenever cause of action shall accrue thereon.

SEC. 13. This act shall take effect and be in force after its passage, provided that any association heretofore incorporated under the laws of this state, and subject to section 1 of this act, not having at the time this act takes effect, securities to the amount oftwenty-five thonsand (25,000) dollars, may have until October 1st, 1891, in which to make a deposit of said sum, as provided in section 1 of this act. All acts or parts of acts inconsistent herewith are hereby repealed.


SECTION 1. * * sections 1992 to 2003 (general provisions relating to foreign corporations] of Milliken and Vertrees' compilation of the laws of Tennessee, be so amended as to apply to corporations chartered under the laws of other states known as “building and loan associations,"

ACTS OF 1893.


SECTION 1. Building and loan associations authorized and permitted to be incorporated under the provisions of chapter 142 of the acts of 1875 (sections 1742 to 1757, inclusive, Code of 1884), and chapter 267 of the acts of 1889, may be invested with the following powers, and subject to the following duties and restrictions, viz.: Said association may issue stock in different series, provided the par value of the shares shall not exceed two hundred dollars, and provided no person shall own more than one hundred shares of stock of the par value of two hundred dollars. Said association may issuo instalment stock, to be paid for in periodical sums, and prepaid and paid-up stock, upon which a gross sum shall be paid in advance in cash, as may be prescribed by the bylaws, and cash dividends may be paid on the said stock, authorized to be issued, out of the net earnings, as the bylaws may prescribe, provided such dividends shall not exceed the per cent of profits earned. Every share of stock shall be liable for and subject to a lien for the satisfaction of any unpaid instalments and other proper charges, such as fines, premiums, and interest on loans. Any stockholder whose stock is not pledged for a loan, shall be entitled to withdraw upon such conditions as may be prescribed in the bylaws, upon thirty days' written notice. The board of directors shall have the power to loan the funds of the association to its stockholders, either in open meeting or by action on written application and bids at a rate of interest not in conflict with the laws of the state, and the premium may be payable in instalments or otherwise. The board of directors shall have the right, for sufficient reason, to reject any bid or application, but such action shall not bo arbitrary. The board of directors shall have the power, should they elect to do so, to establish or maintain by its officers or agents branch offices for the conduct of its business at as many places as may bo desired.

SEC. 2. This act shall not apply to any existing building or loan association or associations organized under chapter 142, acts of 1875 (sections 1742 to 1757, inclusive, Codo of 1881], or chapter 267, acts of 1889; Prorided, houerer, that any association heretofore incorporated and organized under chapter 142 of the acts of 1875 (sections 1742 to 1757, inclusive, Code of 1884], or chapter 267 of the acts of 1889, may avail themselves of the benefits of this act, and obtain the powers herein granted in the manner and form prescribed in section 19 of chapter 163 of the acts of 1883, brought into Milliken & Vertrees' compilation of the laws of Tennessee by section 1695 (providing for amendments and change of name).


SECTION 2. Said expert or agent (provided for in section 11, chapter 2, acts of 1891] shall bo allowed a fee of twenty-five dollars for examining each association, and three dollars per day as travelling and other expenses, which said associations are hereby required to pay.

SEC. 3. Any and all parties violating any of the requirements of this act, are liereby declared guilty of a high misdemeanor, and shall be subject to a fine of twenty-five dollars per day for each day's violation thereof, and the treasurer of the state may maintain action in his name for the recovery of şaid fine.

TEXAS. The laws of this state contain no general legislation relating especially to building and loan associations.


LAWS OF 1890.


Sectiox1. Whenever any number of persons not less than five, residents of the territory, may desire to become incorporated as a mutnal building, loan and homestead association, for the purpose of loaning money to the members thereof only, and for building and improving homesteads, they shall make a statement to that effect, under their hands and seal, duly acknowledged before some officer in the manner provided for the acknowledgment of deeds, such statement shall set forth the name of the proposed corporation, its capital stock, its location, and the duration of the corporation, which statement shall be filed in the office of the clerk of the probato court of the county in which the principal place of business of the corporation is located. The clerk of said court shall thereupon issue to such persons a license as commissioners to open books for subscription to the capital stock of said corporation at such time and place as they may determine, but no license shall be issued to two associations having the same name.

Sec. 2. As soon as fifty shares or moro of the capital stock shall be subscribed, the commissioners may convene a meeting of the subscribers for the purpose of electing directors, officers, adopting a charter and bylaws and the transaction of such other business as shall come before them. Notice shall be given by depositing in the post office, properly addressed to each subscriber, at least ten days before the time fixed a written or printed notice, stating the objects, time and place of such meeting. The number of directors and the number and kind of officers of corporations organized under this act, with their respective qualifications and term of uffice and the time and manner of their election, removal and resignation shall be as agreed or stated in the charter and bylaws.

Sec. 3. The commissioners shall make a full report of their proceedings including

scription list, a copy of the charter and bylaws adopted by the association, and the names of the directors and officers elected, and their respective terms of office, which report shall be sworn to by at least a majority of the commissioners, and shall be filed and recorded in the office of the clerk of the said probate court, said clerk shall thereupon issue a certificate of the complete organization of the corporation, making a part thereof a copy of all papers filed in his office in and about tho organization of the corporation, including a copy of the license issued as provided for in section 1 of this act, and duly authenticated under his land and seal of said court, which certificate and papers shall be filed in the office of the secretary of the territory, who shall thereupon issue to said association a certificate of incorporation under the groat seal of the territory in the manner and form prescribed in section 14 of this act which certificate of incorporation shall be evidence of the duo incorporation of the association. Upon the issuance of such certificate of incorporation, tho corporation shall be deemed fully organized and may proceed to business, and unless such company shall be organized and proceed to business as provided in this act within two years after the date of such license, the license and all proceedings thereunder shall be void.

Sec. 4. Corporations formed under this act shall be bodies corporate for the period of not less than ten, nor more than fifty years, may sue and be sued; may have a common seal which they may alter or renew at pleasure.

Sec. 5. The corporate powers shall be exercised by a board of directors elected by and from the stockholders at their annual meeting who shall qualify as required by section 2270 of the Compiled Laws of Utah 1888. Provided, the number of directors shall not be increased or diminished, nor the term of office changed, without the consent of the owners of two-thirds of the shares of stock. The officers of the company shall consist of a president, a vice-president, a treasurer, and a secretary, who shall be elected by the stockholders at such annual meeting from the members of such board and as provided in the charter or bylaws of the association. Provided; further that the secretary only shall bo entitled to such compensation as may be determined by the board of directors, And provided, further that the treasurer and secretary shall give bonds, with at least two sufficient surcties to be approved by the board of directors, which shall be filed with the clerk of said court.

Sec. 6. The shares of stock shall be one hundred dollars each, and 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 made payable to the corporation and shall be payable in such periodical instalments, and at such timc or times as shall be determined by tho charter and bylaws; but no periodical payment to be made exceeding two dollars on each share; and every sharo of stock shall be subject to a lien for the payment of unpaid instalments and other charges incurred thereon under the provisions of the charter and bylaws and the bylaws may prescribe the form and manner of enforcing such lien. New shares of stock may be issued in lieu of shares withdrawn or forfeited and the stock may be issued in one or in several successive series as may be provided in the charter and bylaws, and in such amount (not to exceed the total capital stock) as the board of directors may determine, and any stockholder wishing to withdraw from the said corporation, shall have power to do so by giving thirty day’s notico of his intention to withdraw, when he shall be entitled to receive the amount paid in by him, and such interest thereon or such proportion of the profits thereon as the bylaws may determine, less all fines and other charges. Prorided; that at no time shall more than one-half of the funds of the treasury of the corporation be applicablo to the demands of withdrawing stockholders without the consent of the board of directors, and that no stockholder shall be entitled to withdraw whose stock is held by the association in pledge for security. Upon the death of a stockholder, his legal representative shall be entitled to receive the full amount paid in by him on all shares not borrowed upou or pledged to the association as collateral security and legal

interest thereon, first deducting all charges that may be due on the stock; but no fines shall be charged to a doconsed member's account from and after his decease unless the legal representatives of such decedent assume the future payment of the dues on the stock.

Sec. 7. Married women may become subscribers to the capital stock of such association, and hold, control and transfer their stock in all respects as femme sole, and their stock shall not be subject to the control of, or liable for the debts of their husbands. Minors may become subscribers to and owners of the stock of such associations by guardian or trustee, and such guardian or trustee may withdraw the stock of sneh ininor as provided in section 6, of this act. Provided: hoxerer that such guardian or trustee shall give bonds to the probate court in double the amount of the withdrawal ralue of such stock for the use of such minor.

Sec. 8. The board of directors shall hold such stated meetings at least once a month as may be provided by the bylaws at which the money in the treasury, if ono hundred dollars or more, shall be offered for loan in open meeting, and the stockholder who shall bid the highest premium for the preference or priority of loan and comply with the provisions of the bylaws, respecting the awarding of loans, shall bo entitled to receive a loan of one hundred dollars, less the premium bid, for each sharo of stock held by said stockholder. Prorided: that no loan shall be made by said corporation except to its own members, nor in any sum in excess of the amount of stock held by such members borrowing: And provided that such stockholder may horrow such fractional part of one hundred dollars as the bylaws may provide. Good and ample real estato security, unincumbered except by prior loans of sneh associations shall be given by borrower, to secure tho repayment of the loan. Provided: howcrer that the stock of such association may be received as security to the amoant of withdrawal value of such stock.

SEC. 9. In case the borrower shall neglect to offer security, or shall offer security that is not approved by the board of directors by such time as the bylaws may preseribe, he shall be charged with one month's interest together with any expenses incurred, and the money may be resold at the next stated meeting. In case of nonpayment of instalments interest or fires by borrowing stockholders for the space of six months, payment of principal and interest and fines without deducting the premium paid or the interest thereon, may be enforced by proceedings against their securities according to law, upon the order of the board of directors.

Sec. 10. A borrower may repay a loan at any time upon duly complying with the charter and bylaws in relation to repayment of loans.

Sec. 11. Corporations organized under this act being of the nature of cooperative associations, therefore no premium, fines, nor interest, on such premiums that may accrue to the said corporation according to the provisions of this act, shall be deemed usurious and the same may be collected as other debts of like amount are collected by law, in this territory.

Sec. 12. No corporation or association created under this act shall cease or expire from neglect on the part of the corporation to elect officers at the time mentioned in their charter and bylaws and all officers elected by such corporations shall hold their offices until their successors are duly elected and qualified.

SEC. 13. Any loan or building association incorporated by or under this act is hereby authorized and empowered to purchase at any marshal's, sheriff's or judicial salo, or at any other sale public or private any real estate upon which such association may have or hold any mortgage, lion or other encombranco and to sell, conrey, lease or mortgage at pleasure to any person or persons whatever the real estato so purchased, but such association shall not have power to enter into as a business the buying and selling of real estate.

SEC. 14. The certificate of incorporation shall be substantially in the following


The Secretary of the Territory of Utah; to all to whom these presents shall come greeting:

Il'hereas, a statement, duly signod and acknowledged, having been filed and recorded in the office of the clerk of the probate court of the county of territory of Utah, on the day of - A.D. — for the organization ofbuilding and loan association of - under and in accordance with the provisions of "An act to enable associations of persons to become a body corporate to raise funds to be loaned only among the members of such associations" approved the day of — a certified copy of which has been filed in my offico; and whereas, a license having been issued to as commissioners to open books for subscription, to the capital stock of said company; and whereas; the said loan commissioners having ou the day of — A. D. - filed in the office of the clerk of said court, a report of their proceedings under said liconse in accordance with the requirements of the statutes, a copy of which license and report has been also filed in my office. Now therefore I secretary of the territory of Utah, by virtue of the powers and duties vested in me by law, do hereby certify that the said — building and loan association of is a legally constituted and organized corporation under the laws of this territory.

In testimony whereof, I hereunto subscribe my name [and] affix the seal of said territory. Dono at — this — day of - A. D. [GREAT SEAL.]

Secretary of the Territory of Utah.


The laws of this state contain no general legislation relating especially to building and loan associations.


ACTS OF 1893–94.


SECTION 1. Any number of persons, not less than five, may hereafter form a building and loau association for the purpose of encouraging industry, frugality and home building and saving among its members, upon being incorporated as provided in section eleven hundred and forty-five (general provisions concerning corpora

tions], Code of Virginia. Building and loan associations formed under this chapter, , or heretofore chartered or incorporated under said section, or by any general or

special act, or formed or incorporated under tho laws of any other state, which have complied with the laws of this state, shall have the right to lend to the stockholders or to other persons the moneys accumulatod from time to time and the right to purchase land or orect houses, and to sell, convey, leasо or mortgage the same at their pleasure to their stockholders or others for the benefit of their stockholders. Snch association may acquire, hold, convey and incumber all or any property, real or personal, taken by them as security or otherwiso acquired by them in the due course of business; and may also secure the payment of loans and the performance of the conditions upon which loans are made, and the payment of the purchase monoy for any property sold by taking personal security, or by a mortgago or deed of trust upon real or personal property and by a transfer and pledge of its stock. Such associations shall have the power to establish and maintain, by their officers and agents, branch offices for the transaction of their business at as many places as may be desirable.

Sec. 2. It shall be lawful for every such association or company to fix by its bylaws the premiums or bonus at which it will dispose of the money in its treasury

« PreviousContinue »