The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1891-05-07

eigh: hundred and eightv-nine (lSs9).
Be 1t enacted by the Legislature Of the State
OF Minnesota:
SECTION 1. That chapter two hundred and
thirty-s (236) Of the General Laws Of one
IN ,usand eight hundred and eightv-nine
uSoO, Is hereby amended to read as follows:
than ten Coy. desire to be Incorporated as a
building and loan association, for the pur-
pose of accommodating the savings and funds
OF its members and lending them only the
funds SO accumulated, they shall make and
execute written declaration to that effect
In the form now provided by statute for the
execution OF deeds of real estate, to entitle
the same to record. Said declaration shall
state the name of such association. lis prin-
cipal place Of business. which shall be with
mulated. the time Of its duration. the names
and places Of residence Of such persons, and
that It is organized under this act for the
purposes herein expressed. When so ex-
corded in the office OF the secretary Of state,
whereupon such officer shall issue a
copy Of such declaration under bis
certificate. IN proper FORM setting
declaration and certificate shall therenpon
be recorded in the Office Of the register Of
deeds Of the county where said association Is
located. and published once in a daily, or
and Of general circulation in said county,
Upon complying with the foregoing require
ments, and upon filing an affidavit Of proof
OF such publication in the office or the secre-
tary Of state the persons executing such
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
association" shall form part Of the same,
and no corporation not organized under this
act shall be entitled to use a name embody-
ing that associations now existing may con-
tinue their present names.
SEQ. g. The directors Of such association
shall adopt by laws for Its government and
therein describe the manner in which Its
business shall be transacted. which bylaws
shall be conformable to the provisions OF This
act and the laws of this state. and at all times
be open to the inspection OF all members OF
the association at its home office, and copy
thereof ana any amendments thereto, duly
certified by the president aud secretary Of the
association, shall Immediately upon It's adop-
ton. DO fled in the office OF the public exam
liner. The directors may amend SAID bylaws
from time to time in such manner as they see
fit so long as such amendments are not In
conflict with the provisions Of this act or the
laws of the state.
Every such association, which has not al
ready done So shall, before its next annual
election after the passage Of this act, divide
its board of directors by resolution thereof
into three classes, consisting Of an equal
number in each class, as nearly as may be;
the term Of Office Of the first class shall ex-
pire at the end Of one year from and after
the next annual election: of the second class
at the end of two years, and Of the third class
at the end Of thres years; and at each sue
ceeding annual election after the one at
which the full board is elected there shall be
elected number Of directors equal to those
g. p1pA OF hof me N
the directors SO elected snail hold their once
for the term Of three (3) yearsand until their
successors are elected and qualified.
SEGA. For every loan made, note non
negotiable, or bond, secured by first mort
gage on real estate, shall be given, which Sc
loan and satisfactory to the directors and
shall be accompanied by transfer and
pledge 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: provided, that
the shares. without other security, may, IN
the discretion of the directors, be accepted as
ceeding their withdrawal value. as provided
by this act Stockholders who have borrowed
money Of an association on real estate secur-
ity. and who have pledged their stock, OF
sny portion thereof. as collateral thereto, as
provided herein. shall! not be entitled to have
the value Of such stock applied on the mort
gage debt where the payment OF such stock
Is more than three (3) months in arrears. I'M
less the same has reached withdrawal age
as fixed by this act and when such stock has
reached that aye the withdrawal value
thereof shall be applied on said debt when
ever the stock Is three (3) months IN ar
rears.
SEC. 5. Any such association may purchase
at any sale. public or private. any real estate
upon which it may have Il mortgage. judg.
ment, lien or other incumbrance. or in which
1t may have any interests, and may sell, con-
vey, lease or mortgage the same at pleasure
to any person or persons ana may ACQUIRE
building or buildings requisite for the con-
venient transaction Of its business, and from
portions of which not required for its own
use revenue may be derived: the cost OK
such building and lot or lots in no case to
vided that any such association may acquire
any leasehold interest necessary tor the
transaction OF its business.
SEQ 6. Every building and loan associa-
ton heretofore or hereafter incorporated un-
der the laws Of this state and governed by
this act shall deposit and keep with the state
treasurer or with duly chartered trust COM
panv Of this state. approved by the public e1-
aminer. in trust for all its members and cred
itors, all mortgages or other securities re-
celved bv it in the usual course Of its busi-
ness When deposited with trust company.
such company shall certify to the public ex:
aminer the possession Of such securities. ana
the same shall not Re surrendered without
the authority and satction Of said pubic ex-
amiuer. Provided, that every. such corpora
ton heretofore organized not having or own
ing mortgage or other securities to the
amount OF twenty-fv thousand dollars (S25:
0OO) shall deposit with the state treasurer ad-
diional securities to make, with the securi-
ties so owned and deposited the sum OF
twenty-five thousand dollars (S25,OOo). and
every such associp-lon hereafter organ.
hail do and
keep with the state treasurer In trust
as aforesaid, securities OF the value OF
twenty-five thousand dollars (S250oO) before
to do business. The securities
mentioned in this provlso snail consist OF
bonds or treasury notes Of the United States
or national bank stocks, or the bonds OF this
state. or Of any other state OF the United
States, or Of any solvent city, county or town
OF this state or 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 corresponding value shall be deposited as
provided in this act or when securities OF
like character are substituted thereior. or
when the same shall have been paid or are
required for foreclosure or suit and 1t shall
be the duty of the public examiner from time
to time to examine such association to ascer-
tain whether or not its securities are de-
that whenever required BY the laws Of
any other state or territory, or nation.
ali securities taken in such state. ter.
ritory or nation. by any association
organized under the law. Of this
state, aud subject to the provisions OF this
act and other. securities sufficient to allow
such association to enter and do business in
such state, territory or nation. may be de-
posted with some officer authorized to re-;
ceiye the same in such stale. territory or
nation. under rha laws thereof, for the bene-
fit Of its members and creditors, and TO this
end, upon the presentation to the public ex-
aminer Of duly authenticated copy Of
resolution Of the board Of directors OF any
such association. having on deposit with the
state treasurer or duly chartered trust com.
pany securities in excess Of twenty-five thou
sand dollars ($25,OOO demanding the transfer
and specifying the securities to be transferred
or the amount thereof to any other state. ter
ritory or nation for the purpose Of enabling
such association to comply with the laws
thereof, it shall be the duty of the public ex-
aminer to cause such transfer to be made
The expense Of making snch transfer shall be
borne by the association requiring the
same and receipt shall be taken
BY the ofscer or trus. company max.
ing the transfer and filed and kept in
the Office from which the securities are trans
ferred in lieu thereof. But the securities kept
on deposit in this state by any such associ-
alton as required by this act shall at no time
be reduced in amount by such transfer or
Otherwise. below twenty five thousand dol
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