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to its stockholders, and award or lend to any member or stockholder the value of any shares held by him, less such premium or bonus, and the mode of making the disposal, loan or award shall be fixed by the bylaws, and to charge and receivo said premium in advance or in instalments, or in default of application for said money by stockholders it shall bo lawful for such companies or associations to lend the same to other persons on such terms as may be agreed upon and in such manner as may be fixed by the bylaws.
Sec. 3. Every association may levy, assess and collect from its stockholders dues or payments upon every sharo of its stock, the amount, time and manner of pas. ment of the same to be fixed by the bylaws, and the said stock may be paid off and retired as the bylaws shall direct; and may levy, assess and collect from merabers to whom loans have been made interest upon the par value of the shares redeemed; and may levy, assess and collect fines for the non-payment of dues or for failure to comply with or perform any other obligation or duty to the association. The amount of the respective fines shall be fixed by the bylaws, and they shall be imposed under regulations to be made by the bylaws.
Sec. 4. A borrower from such associatio.s may repay the loan at any time; bnt in caso of the repayment thereof before the maturity of the loan tho borrower shall pay such an amount for the privilego as may liave been agreed upon or is prorided for in the bylaws; and there shall be refunded to such borrower, in case the premium shall have been deducted in advance, such proportion of the premium bid as tho bylaws may determine. Stockholders withdrawing voluntarily shall receive such proportion of the profits of the association or such rate of interest as inay be prescribed by the bylaws.
Sec. 5. Every such association shall adopt bylaws for its government and the management of its business not inconsistent with this act.
SECTION 1. No building and loan association or company shall be allowed to conduct any business or solicit the salo of stock or offer to lend money in this state without having first obtained a license therefor by payment of the tax hcrein specified, nor shall any person act as an agent for such company, incorporated in this or any other state, unless the company he represents has obtained a license in accordance with this act.
SEC. 2. The specific license tas upon every such company or association for the privilege of doing any business in this state shall be fifty dollars, provided the capital of such company actually paid in, whether from paid-up stock or partially paid stock, is not less than twenty-five thousand dollars; if the capital paid in is twenty-five thousand dollars and not more than fifty thousand dollars, tho tax shall be seventy-five dollars; if the capital paid in is not less than fifty thousand dollars nor more than one hundred thousand dollars, the tax shall be one hundred dollars; if the capital paid in is not less than one hundred thousand dollars nor more than one hundred and fifty thousand dollars, the tax shall be one hundred and twenty-five dollars; if the capital paid in is not less than one hundred and fifty thousand dollars nor moro than two hundred thousand dollars, the tax shall be ona hundred and fifty dollars; if the capital paid in is not less than two hundred thousand dollars nor more than threo hundred and fifty thousand dollars, the tax shall be one hundred and seventy-five dollars; if the capital paid in is four hundred thousand dollars, the tax shall bo two hundred and fifty dollars, but on capital exceeding four hundred thousand dollars the tax shall be fifty dollars for cach additional one hundred thousand dollars thereof: And prorided that as to any non-resident building company or association doing business in this stato, and which has otherwise complied with tho laws of Virginia, shall pay the license tax under this act upon the
ciation on the first day of April of cach year, or within ten days thereafter, to make a report in writing, under oath of its chief accounting officer or agent, to the commissioner of revenue for the district in which the principal office cr agency is situated, of the amount of the capital of said association as provided in this act. Any association or agent doing business in this state without having first obtained a license therefor shall pay a fine of not less than fifty nor more than fivo hundred dollars. The shares of any building sund company which has been assessed with and has paid the specific tax provided for in this bill shall not be taxable in the hands of the holder, nor shall any additional tax be imposed upon the capital of the said companies. And it is provided that no city or corporation shall impose a greater tax than is provided by this bill, which tax can only bo levied where the principal office of the company is located: it is further provided that upon any company doing business on a purely mutual plan and whose business is confined solely to the city or county where organized the tax shall be fifty dollars.
HILL'S ANNOTATED STATUTES AND CODES OF 1891.
VOLUME I.--GENERAL STATUTES.
SECTION 1599. Whenever any member (number] of persons not less than ten desire to be incorporated as a building and loan association for the purpose of accumulating the savings and funds of its members and lending them only the funds so accumulated, they shall make and execute a written declaration to that effect in the form now provided by statute for the execution of deeds of real estate, to entitlo the same to record. Said declaration shall state the name of such association, its principal placo of busi110ss, which shall be within this state, the limit of capital to be accumulated, the tinio of its duration, the names and places of residence of such persons, and that it is organized under this chapter for the purposo herein expressed. When so executed said declaration shall be filed and recorded in the office of the secretary of state, Thereupon such officer shall issuo a copy of such declaration under his certificate, in jiroper form, setting forth the time and place of filing and recording thereof in his cffice, which declaration and certificato shall therenpon bo recorded in the office of thic recorder of deeds of tho county where such association is located, and published once in a daily or weekly newspaper, printed and published and of general circulation in said county. L'pon complying with the foregoing requirement, and upon filing an affidavit of proof of such publication in tlio office of the secretary of state, the persons executing such declaration, their associates and successors, shall become a corporate body.
SEC. 1600. The name shall not be the same as, nor too closely resemble that in use by any existing corporation established under the laws of this state. The words " building and loan association," or "savings and loan association," shall form a part of the name, and no corporation not organized under this chapter shall be entitled to use a name embodying either [of] said combination[s] of words; Prorided, that associations now existing may continno their present names.
SEC. 1601. Each association shall adopt bylaws for its government, and therein describe the manner in which its business shall be transacted, which bylaws shall be in conformity with the provisions of this chapter and tho laws of this state, and at all times be open to the inspection of the stato auditor, and the members of the association at its home office. All bylaws shall be subject to the approval of the stato auditor before going into effect, and crery corporation lieretofore organized and brought under the provisions of this chapter shall, within sixty days from the passage hercof, present its bylaws to said auditor for approval, and in case any provision in such bylaws shall be contrary to the provisions of this chapter or to the laws of this state, or be detrimental to the interests of the members of such
organization, or against public policy, he may, under the advice and consent of the attorney general, require the samo to be stricken out.
SEC. 1602. For every loan made, a note non-negotiable or bond secured by first mortgage on real estate shall be given, which security shall be double the value of the loan, and satisfactory to the directors, and shall be accompanied by a transfer and pledgo of the shares of the borrowers to the association. The shares so pledged shall be held by the corporation as collateral security for the performance of the conditions of said note or bond and mortgage; Trorided, that the shares, without other security, may, in the discretion of the directors, be aecepted as security for the loans for an amount not exceeding their withdrawal value as provided by this chapter.
SEC. 1603. Any such association may purchase at any sale, public or private, any real estate upon which it may have a mortgage, judgment, lien, or other encumbrance, or in which it may have any interest, and may sell, convey, lease, or mortgage the same at pleasure to any person or persons, but shall not otherwiso acquire or deal in real estate; Prorided, that any such association may acquire any leasehold interest necessary for the transaction of its business.
SEC. 1604. Every building and loan association heretofore or hereafter incorporated under the laws of this state, and governed by this chapter, shall deposit and keep with thestate auditor, or with a duly chartered trust company of this state, approved by the state auditor, in trust for all its members and creditors, all mortgage or other securities received by it in the usual course of business. When deposited with a trust company, such company shall certify to the state auditor the possession of such securities, and the samo shall not be surrendered without the authority or sanction of the state auditor; Provided, that every such corporation heretofore organized not having or owning mortgage cr other securities to the amount of twenty-five thousand dollars shall deposit with tho state auditor additional securities, to make, with the securities so owned and deposited, equal in value to said sum of twenty-five thousand dollars, and every such corporation hereafter organized under this chapter shall deposit and keep with the state auditor, in trust, as aforesaid, securities of the value of twenty-five thousand dollars before commencing to do business. The securities mentioned in this proviso shall consist of bonds or treasury notes of the United States or national bank stocks, or bonds of this state, or any other state of the United States, or of any solvent city, county, or town of this state, or any other state of the United States, having a legal authority to issue the same, and such securities may be withdrawn, from time to time, when mortgage securities of corresponding value shall be deposited, as provided in this chapter, or when other securities of like character are substituted therefor; and it shall be the duty of the state auditor, from time to time, to examine said associations, to ascertain whether all its securities are deposited, as required by this chapter; Prorided, that whenever required by laws of any other state, territory, or nation, all securities taken in such state by any association organized under the laws of this state, and subject to the provisions of this chapter, may. be deposited with some oficer authorized to receive the same in such state under the laws thereof, for the benefit of its members and creditors; but in every such case a certificate of such deposit, showing the amount and character of such deposit, shall be filed with the auditor of this state, and renewed annually, together with a statement, verified by the aftidavit of some officer of such association who has knowledge of the facts, showing all of the securities taken by such association in such state at the time of the filing of snch certificato; and in case any securities taken in any such state are not deposited there, then the same shall be deposited here, as required by this chapter.
SEC. 1605. All interest, and dividends, and premiums, which may accrue on securities held by the state auditor, or such trust company as provided for herein, and all dues or monthly payments which may become payable on stock pledged as security
of this chapter, may be collected and retained by the association depositing such securities or mortgages, so long as such association remains solvent, and faithfully performs all contracts with its members, and when any mortgage shall have been sally paid to said corporation, the same may be surrendered by said stato auditor, or under his order, upon filing with him a certificate of the auditor of the county where the real estate is situated, to the effect that the satisfaction of such mortgage has been filed for record, or in caso no mortgage was taken, then the affidavit of the secretary or treasurer of said corporation showing judgment. Any mortgage upon whieh default has been made may be surrendered as aforesaid, upon filing with the state auditor an affidavit sworn to by the president and secretary of the association owning the same, stating that such mortgage is in default, and that it is withdrawn for the purpose of foreclosure.
SEC. 1606. No building or loan association organized under the laws of any other state, territory, or nation shall do business in this state unless such association shall have securities of the value of one hundred thousand dollars, and of the character mentioned in this chapter, on deposit in trust for all its members and creditors with some responsible trust company, duly incorporated under the laws of such state or territory in the United States, or with some authorized officer of this or some other state of the United States; Provided, that foreign companies now doing business in this state shall have until August first, A. D. eighteen hundred and ninety, to deposit the last one-half of the required one hundred thousand dollars. Certificate of such deposit shall be made to the auditor of this state, certifying the possession of such securities, which shall not thereafter be surrendered without the authority or consent of the auditor or other authorized officer of the state or territory in which said company is incorporated; And provided further, that all such foreign-companies shall make a deposit of their mortgages and other securities taken in this state, in the same manner and amount, and for the same purpose, as provided for home companies in section sixteen hundred and four of this volume of general statutes.
SEC. 1607. Every building and loan association organized under the laws of any other state, territory, or nation shall, before commencing to do business in this -state,
1. File with the state auditor of this state a duly authenticated copy of its charter or articles of incorporation;
2. File with the state auditor of this state the certificate of the authorized officer of anotherstate showing that securities of the value of one hundred thousand dollars are on deposit with such state officer or duly incorporated trust company, in trust for all the members and creditors of such building and loan association;
3. File with the auditor of this state a duly authenticated copy of a resolution adopted by the board of directors of such association, stipulating and agreeing that if any legal process affecting such association be served on such examiner, and a copy thereof be mailed, postage prepaid, by the party procuring the issue of the same, or his attorney, to said association, addressed to its home office, then such service and mailing of such process shall have the same effect as personal service on said association in this state, and also an agreement that said association will not remove any action commenced in any state court of this state against the same to the United States court, and will pay every judgment that may be taken against it upon any such action within sixty days after the final judgment shall have been entered;
4. Pay to the state auditor twenty-five dollars as fees for filing tho papers mentioned in this section.
SEC. 1608. When process against or affecting any foreign building and loan association is served on the state auditor, the same shall be by duplicate copies, one of which shall be filed in the office of the state auditor, and the other by him immediately mailed, postage prepaid, to the home office of said association.
Sec. 1609. The word "process," in this chapter, shall include any writ, declara
tion, summons, or order whereby any action, writ, or proceedings shall be commenced, or which shall be issued in or upon any action, suit, or proceeding authorized by law in this state.
SEC. 1610. Services of process, according to a stipulation provided in section sistoen hundred and seven of this volume of general statutes, shall be sufficient personal service on the association filing such stipulation.
Sec. 1611. When, by the laws of any other state, territory, or nation, any taxes, fines, penalties, licenses, fees, deposits of money, or securities, or other obligations or prohibitions, are imposed on building and loan associations of this state, doing business in such other state, territory, or nation, or upon their agents therein, so long as such laws continue in force, the same obligations and probibitions, of whatever kind, shall be imposed upon all building and loan associations of such other state, territory, or nation doing business in this state, and upon their agents here.
Sec. 1612. Any building and loan association organized under the laws of any other state or territory that shall remove any action that shall be commenced against it in a court of this state to the United States court, or that shall fail to pay any judgment rendered against it upon a suit in any court of the state within sixty days after the rendering of final judgment in such case, or that shall fail to make yearly statements to the state auditor, as hereafter mentioned, or statements of the amount and value of its stock held in this state, as hereafter required, or to pay the fees of the state auditor as provided in this chapter, or to do any other act required in this chapter to be done and performed, shall, upon failure or violation of the provisions of this chapter, have no right or authority to do or transact any further business within the limits of this state, and the state auditor shall thereupon cause notice of the termination of such authority to do business to bo mailed to snch corporation and to be published in some newspaper of general circulation at the capital of the state, and shall communicate tho facts to the attorney general of this state, who shall institute such proceedings in the matter as the caso may require; Prorided, any such corporation may be again authorized to commence business in this state upon such terms as the state auditor may deem just and proper, and upon full compliance with the provisions of this chapter.
Sec. 1613. All building and loan associations hereafter incorporated in this state shall have an authorized capital of two million dollars at the time of the incorporation.
SEC. 1614. Any building and loan association heretofore or hereafter incorporated under the laws of this state may at any time increase the amount of its capital stock, or amend its articles of incorporation in any other respect, by a vote of at least three-fourths of its board of directors; Provided, that no such increase shall be made unless three-fourths of the capital stock previously authorized has actually been issued, and the amount of increase made at any one time shall not exceed the amount issued previous to the time of such increase.
SEC. 1615. Whenever any building and loan association increases its capital stock, or otherwise amends its articles of incorporation, as provided in this chapter, a copy of the resolutions of the board of directors making such increase or other amendment, duly verified by oath of the president and secretary of such association, shall be filed in the office of the auditor of the county in which the home office of said association is located, and in the office of the secretary of state, and be published four successive times in the same daily or weekly newspaper published at the capital of the state, or in the county whero the association has its home office. Proof of such publication shall be filed in [the] office of the secretary of state.
Sec. 1616. On or before the first day of September in each year every building and loan association doing business in this state shall deposit with the state auditor a report of its affairs and operations for the year ending on the thirtieth day of