Buchanan County bulletin. [volume] (Independence, Iowa) 1869-1891, 1872-05-10
Approved, April 9th, 1872,
CHAPTER "A.

AN ACT to enable Cooperative and
Mutual Loan Associations to raise
funds to be loaned among the members
for building homcsteads, and for other
purposes, to become body corporate
SECTION 1. BE it enacted by the GEN
erol assembly Of the State Of Iowa, That
any number OF persons, not less than
five, may associate themselves together
and become a corporation as provided
in and by the general incorporation
laws of the State of Iowa, for the pur-
pose OF raising moneys to be loaned
among the members of such corporation,
aud to other persons, for use in buying
lots or houses, or in building or repair
ing houses, or other purposes.
Sec. 2. Such corporation shall be au-
thorized and empowered to levy, assess,
and collect from its members such sums
of moneys, by rates of stated dues, fines,
interest on loans advanced, and pre-
miums bid by members for the right of
precedence in taking loans, as the cor
poration, by its bylaws, shall adopt
also to acquire, hold, cucumber, and
convey all such real estate and personal
property as may be legitimstely pledged
to it on such loans, or may otherwise be
transferred to it in due course of its
business prooided, that the dues, fines
and premiums SO paid by members in
addition to the legal rate of interest on
loans taken by them, shall not be con-
strued to make the loans so taken usu-
rious; and provided, also, that no
person shall hold more than ten shares
in any such association.
Sec. 3. That when mutual loan soci-
cites, or other associations heretofore Or
ganized under the laws of this State,
with objects similar to those contempla-
ted in the preceding sections, and per.
hitting not more than ten shares of
their stock to be owned by any one
member, have loaned or shall hereafter
loan, their capital or funds, or any part
thereof, to their members, and have ia
ken or shall take notes or obligations
therefor, secured by mortgages, or other
wise, in accordance with the terms of
their articles of incorporation and by
laws, such notes, obligations, and sccu-
rites shall not be construed or held to
be usurious by reason of any dues, fines
or premiums for the right Of preference
in taking such loans paid in addition to
the legal rate of interest, but the same
shall be valid and binding in all re-
spects; the payment of such dues, fines,
or premiums in addition to rate of in
terest not exceeding ten per centum per
annum payable annually, or at any less
period, Notwithstanding.
Sec. f. That so much of the earnings
of such corporations as may be necessary,
not exceeding ten per cent per annum,
may be set apart to defraX the current
expenses of said association, and for the
purchase Of such real estate as may be
necessary for the convenient transaction
of its business, and the residue of said
earnings shall be transferred 20 the
credit of the shareholders, and when said
shares are fully paid, then to be paid
ratably to the shareholders.
SEC. 5. This act being deemed of i'm
mediate Importance, shall take effect
and be in force from and after its publ
cation in the Daily State Register and
Daily State Leader.
Approved, April 9th, 1879.
hereby certify that the foregoing act
was published in the Daily Iowa State
April 10, and in the Daily State
Louder, April =, 1872.
ED WRIGHT,
Secretary of State