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 fully 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 case no mortgage was taken, then the affidavit of the secretary or treasurer of said corporation showing judgment. Any mortgage upon which 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president and secretary of the association owning the same, stating that such mortgage is in default, and that it is withdrawn for the purpose of foreclosure.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 another state 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 the 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 sixteen 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 prohibitions, 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, upen 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 be mailed to such corporation and to be published in some newspaper of general circulation at the capital of the state, and shall communicate the facts to the attorney general of this state, who shall institute such proceedings in the matter as the case may require; Provided, 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 fuil 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 lean 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 where 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

dent and secretary, or by three directors of the association, and shall contain answers to the following questions:

1. The amount of authorized capital, and the par value of each share of stock; 2. The number of shares sold during the year;

3. The number of shares cancelled and withdrawn during the year;

4. Number of shares in force at the end of the year;

5. A detailed statement of receipts and disbursements during the year;

6. A detailed statement of the assets and liabilities at the end of the year, and shall pay to the state auditor a fee of twenty-five dollars on filing such report. If any such association shall fail to furnish to the auditor of the state any report required by this chapter, at the time so required, it shall forfeit the sum of twentyfive dollars per day for every day such report shall be delayed or withheld; and the auditor may maintain an action in his name of office to recover such penalty, and the same shall be paid into the treasury of the state and applied to the expenses of the department of said auditor. After receiving such report, the auditor, if satisfied that such corporation has complied with all the provisions of this chapter, and is entitled to do business in this state, he shall issue his certificate stating the compliance with such provisions, and that [such] corporation is entitled to do business in this state, which certificate shall be in force for the period of one year, unless sooner rescinded, as provided in this chapter. Such certificate shall also be issued to any foreign corporation authorized to do business in this state after complying with the conditions of section sixteen hundred and seven of this volume of general statutes, and shall be in force until the time herein required for such annual report. SEC. 1617. It shall be the duty of such state auditor, at least once in each year, and as often as he may deem necessary, to assume and exercise over every building association incorporated under the laws of this state, its business, officers, directors, and employés, all the power and authority conferred upon him over banks and other moneyed corporations under the laws of this state; Provided, he shall not have the power to suspend the operation of any association, except in the manner provided in the next succeeding section.

SEC. 1618. If it shall appear to the said state auditor, from any examination made by him, or from any report of any examination made by him, or from the annual report aforesaid, that said corporation is violating its charter or the law, or that it is conducting business in any unsafe, unauthorized, or dishonest manner, he shall, by an order under his hand and seal of office, addressed to such corporation, direct conformity with the requirements of its charter and of the law; and whenever such corporation shall refuse or neglect to make such report or account as may be lawfully required, or to comply with such order as aforesaid, or whenever it shall appear to the said auditor that it is unsafe or inexpedient for any such corporation to continue to transact business, he shall communicate the facts to the attorney general, who shall thereupon be authorized to institute such proceedings against any such corporations as are now or may hereafter be provided by law in the case of insolvent corporations, or such other proceedings as the occasion may require. And if such corporation shall have been organized under the laws of any other state or territory, the said attorney general shall, upon receiving such communication, if in his judgment the facts in the case are sufficient to warrant such action, give notice to such corporation that it is no longer authorized to do business in this state, by depositing such notice in the post office, properly sealed and stamped, addressed to the said corporation at its principal office in the state where incorporated, and thereupon said corporation shall cease to have any right in this state, and said notice may be published in the manner as provided in section sixteen hundred and twelve of this volume of general statutes.

SEC. 1619. All officers of any building and loan association governed by this chapter and doing business in this state, who sign or indorse checks, or handle any of the funds of such association, shall give bonds or fidelity insurance for the faith

ful performance of their duties as the board of directors may require, and no such officer shall be deemed qualified to enter upon the duties of his office until his bond is approved by the board of directors and the state auditor, with whom such bends shall be filed; Provided, that the state auditor may require of any association, at any time, such increase of said bond or additional sureties thereto, or such increase of said insurance, as he may deem necessary for the protection of the members. The penalty for a failure of any association to file and maintain the bonds and policy as required by the provisions of this section shall be a fine of one hundred dollars for each day such association transacts business after such bonds have become due under the provisions of this chapter. Said bonds 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. 1620. The name "building and loan association," as used in this chapter, shall include all corporations, societies, organizations, and associations doing a saving and loan or investment business on the building society plan, whether neutral or otherwise, and whether issuing certificates of stock which mature at a time fixed in advance or not.

SEC. 1621. Any officer, director, or agent, or [of] any foreign building and loan association, or any other person whomsoever who shall, in this state, solicit subscriptions to the stock of such association, or who shall sell or issue, 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 state auditor authorizing it to do business in this state, as herein prescribed, or has not deposited, es required by this chapter, securities of the value and at the times herein prescribed, or before said association has complied with all the provisions of this chapter, or when said association shall have been notified and required to discontinue business in this state, as herein before provided, shall be guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine of not less than one hundred dollars nor more than five hundred dollars, or by imprisonment of not less than ten days nor more than six months, or both such fine and imprisonment, in the discretion of the court.

SEC. 1622. Any officer, director, or agent of any building and loan association incorporated under the laws of this state, or any other person whatever, who shall sell or issue, or knowingly cause to be sold or issued, to any person not a resident of the county in which the home office of said association is located, or in the counties immediately adjacent thereto, any stock of said association while said association does not have on deposit with the state auditor, as required by this chapter, securities of the value and at the time herein prescribed, or while such association shall not have the certificate of the public examiner, authorizing it to do business as hercin prescribed, shall be guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine of not less than one hundred dollars and not more than five hundred dollars, or by imprisonment of not less than ten days nor more than six months, or both such fine and imprisonment, in the discretion of the court.

SEC. 1623. Any premiums taken for loans made by any association governed by this chapter shall not be considered or treated as interest, nor render such association amenable to the laws relating to usury.

SEC. 1624. Every such association heretofore organized under the laws of this state, or incorporated under this chapter, is hereby prohibited from hereafter creating or issuing any preferred or non-contributing stock; but this section shall not prevent the issue of different series of stock.

Src. 1625. Any shareholder whose stock has not been declared forfeited in such association, and whose share or shares are not pledged upon a loan, may withdraw such share or shares from the association at any time after one year, by giving at least sixty days' notice in writing to the secretary of his intention to do so. Upon

the association may, within sixty days, dispose of said stock, and the members shall assign them for that purpose. At the end of said sixty days the association shall pay to the members so surrendering as follows: If said stock is more than two years old, all amounts paid in by such members upon such stock, except the sums paid as membership fees and fines, and the amount set apart upon such shares by said association as an expense fund, which expense fund, however, shall not exceed the amount fixed in this chapter; if said stock is more than two years old, the member, upon such surrender, shall receive, in addition to the amount above specified, at least threefourths of all profits standing to the credit of such shares; Provided, that not more than one-half of the monthly instalments received by such association for any month shall be used to pay withdrawals without consent of the board of directors.

SEC. 1626. Whenever any such association shall declare any of its stock forfeited for non-compliance of the holder with any of its laws or regulations, the said stock shall, if one year old, be sold by said association at a monthly meeting thereof to the highest bidder, and it is made the duty of such association, at any such sale, to bid in the stock so offered at its then withdrawal value, and thereupon said stock shall be cancelled; but, if a higher bid is received, the person making the highest bid shall have such stock assigned to him, and upon such sale, said association shall pay to the member so forfeiting his stock tho withdrawal value thereof as fixed in the next preceding section of this chapter, less all fines and arrearages against him.

SEC. 1627. Upon the death of a stockholder in any such association, except in cases where the stock matures at a fixed and definite time as aforesaid, his heirs or personal representatives shall, upon giving sixty days' notice to the association, receive from such association the then withdrawal value of his shares, agreeable to the provisions of section sixteen hundred and twenty-five of this volume of general statutes.

SEC. 1628. Every such association shall provide in its bylaws in what manner applications and bids for loans shall be received and who shall be entitled to loans thereunder; such bids shall be opened at stated times, and all the money in the loan funds shall be loaned upon such bids; Providing, that the securities shall be in the amount and of character stated in this chapter, and the amount bid shall not be less than the rate for any legal indebtedness under the laws of this state, the object of this ecction being to prevent such association from retaining in its loan fund any mon. eys actually bid for, for the purpose of securing better bids or inducing the bidders to raise their bids, and to compel said association to loan their funds to the highest and best bidders therefor; Provided, that the provisions of this section relating to bidding for loans shall not apply to associations which fix the rate of interest and premium annually, by resolution of the board of directors, at a rate which will keep the money of such association at all times safely invested, and in which the system of bidding is not allowed.

SEC. 1629. No association governed by this chapter shall set apart as an expense fund, exclusive of admission fees, to exceed one dollar per year upon each share of its stock, or assess any fines for non-payment of monthly instalments, or otherwise, in excess of ten cents per share for the first month that the same shall be in arrears, and fifteen cents per share per month for every month thereafter.

SEC. 1630. Not more than three of the officers of any such association incorporated under the laws of this state shall be members of the board of directors of such association; Provided, that no change shall be required under this section until the next annual meeting of such association.

SEC. 1631. All corporations organized in this state and doing business in this or any other state, as building and loan associations, shall comply with and be subject to all the provisions of this act within sixty days after its passage, and shall be entitled to all its privileges and benefits thereof without reincorporating; Provided, that all such companies or associations, organized in the state prior to the passage of the act of which this act is amendatory, shall only be required to deposit all their