St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-05-07
$40.

6. F. No. 630-AN ACT relating to building,
loan and saving associations doing gen.
eral business.
Be it enacted by the Legislature Of the State
of Minnesota:
SECTION l. Whenever any number Of per.
sons not less than ten desire to be incorpOr-
sted as building and loan association for
the purpose of accommodating the savings and
funds of its members and lending them only
the funds so accumulated, they shall make
feet in the form now provided by statute for
the execution of deeds of real estate to en-
title the same to record. Said declaration
shall state the name of such association, its
principal place of business, which shall be
within the state, the limit of capital to be ac-
cumulated, the time of its duration, the
names and places of residence of such per-
sons and that it is organized under this act
and for the purpose herein expressed When
go executed, said declaration shall be fled
and recorded in the office OF the secretary OF
state, whereupon such officer shall issue a
copy of such declaration under his certificate,
in proper form, setting forth the time and
place of filing and recording thereof in his
Office, which declaration and certificate shall
thereupon be recorded in the Office of the
register of deeds of the county where said as.
sociation is located, and published once in q
daily OF weekly newspaper printed and pub.
county. Upon complying with the foresoing
requirements, and upon filing an affidavit Of
proof of such publication in the office OF the
secretary of state, the persons executing such
declaration, their associates and successors,
Shall become corporate body.
SEC. 2. The name shall not be the same as
nor too closely resemble that in use by any
existing corporation established under the
loan association" or savings and loan asso-
name and no corporation not organized un-
der this act shall be entitled to use name
embodying either said combination Of words,
provided that associations now existing may
continue their present names.
SEC. g. Each association shall adopt by:
laws for its government and therein describe
the manner in which its business shall be
transacted, which bylaws shall be in con-
the laws of this state, and at all times be
open TO The inspection of the public exam
iner and the members of the association at
its home office: All bylaws shall be subject
to the approval of the public examiner be-
fore going into effect, and every corporation
heretofore organized aud brought under the
provisions of this act shall within sixty days
from the passage hereof present its bylaws
any provision in such bylaws shall be con-
trary to the provisions of this act or to the
laws of this state or be detrimental to the in
terests of the members of such organization
or against the public policy, he may, under
the advice and consent Of the attorney gen.
eral, require the same to be stricken out.
SEC. 4. For every loan made a note nom
negotiable or bond secured by first mortgage
on real estate shall be given, which security
shall be in double the value of the loan and
satisfactory to the directors and shall be &C.
companied by a transfer and pledge of the
shares of the borrower to the association.
The shares so pledged shall be held by the
corporation as collateral security for the per-
Torrance of the conditions of said note or
bond and mortgage; provided, that the shares,
without other security, may. in the discretion
OF the directors, be accepted as security for
the loans for an amount not exceeding their
withdrawal value, as provided by this act.
SEC. 8. Any such association may pur-
chase at any sale, public or private, any real
estate upon which it may have a mortgage,
Judgment, lien or other encumbrance, or in
which 1t may have any interest and may sell,
convey, lease or mortgage the same at pleas
uTe to any person or persons, but shall not
otherwise acquire or deal in real estate; pro-
eIded that any such association may acquire
any leasehold interest necessary for the tran
kaction of its business.
Sec. 6. Every building and loan associa-
zion heretofore or hereafter incorporated un-
DER the laws of this state and governed by
this act shall deposit and keep with the state
auditor; or with duly chartered trust com
pany OF this state, approved by the public
examiner, In trust for all its members and
creditors, all mortgages or other securities re-
eelyed by it IN the usual course of business.
When deposited with trust company. such
quail CtIllly W luc IIo pOS-
session Of such securities, and the same shall
not be surrended without the authority or
sanction of the auditor.
Provided, that every such corporation here
tofoPe ganiZed, not having or owning mort
gage or other securities to the amount of
twenty-five thousand dollars shall deposit
with the state auditor additional securities to
make, with the securities so owned and de-
posted, equal in value to said sum of twen-
ty-iive thousand dollars; and every such cor
poration hereafter organized under this act
Shall deposit and keep with the state auditor,
In trust as aforesaid securities Of the value
OF twenty-five thousand dollars before COM
menclpg TO do business. The securities men
toned in this proviso shall consist of bonds
Or treasury notes of the United States, or ma
Gonal 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 OF
any other state of the United States, having the
legal authority to issue the same, and such
securities may be Withdrawn from time to
time, when mortgage securities Of cores
bonding value shall be deposited, as pro-
Vided in this act, or when other securities of
like character are substituted therefor, and it
shall be the duty of the public examiner from
time to time to examine said associations to
ascertain whether all its securities are depos-
tied as required by this act.
Provided that whenever required by the
laws Of any other state, territory or nation,
Pill securities taken in such state by any as.
eociatioh organized under the laws of this
State and subject to the provisions Of this ACT
fnay be deposited with some officer author
ICED to receive the same In such state under
the laws thereof for the benefit Of its mem.