Pawtucket tribune. (Pawtucket, R.I.) 1890-189?, 1895-07-29
CHAPTER lyJ2.

oEC' H. ms act shaIl take eHcct upon its
passage.
CHAPTER Ig52
AN ACT TO Regulate and Provide For Reports
and Supervision OF. Building Loan Associa
tions Hereafter Incorporated In This State
IL Is enacted by the General Assembly as fol
lows
SECTION l. Every building. loan association
hereafter Incorporated in this state shall have
the powers and be subject TO the provisions ot
this act and OF any act in amendment thereof
or in addition thereto unless otherwise OK.
pressly provided by law. and shall have all
the powers and privileges and be subject to
all the duties and liabilities set forth In Chap.
ter l52 OF the Public Statutes, and Of any ACT
I'm amendment thereof or in addition thereto.
but nothing herein shall be construed 10 au.
thorize such corporation TO do a banking
business. The words building loan associa.
tion" as used in this act shall include all cor
porations. societies. organizations and associa-
tions hereafter created by special act un.
der the laws Of this state doing a savings and
loan or investment business on the building
society plan. whether mutual or otherwise,
and whether issuing certificates OF stock
which mature at a fixed time In advance or
not.
SEC. q Every such building loan associ alton
shall have included in its name the words Saw.
ings Fund, Building Loan, Cooperative Saw.
and no corporation or association not doing the
business specified in section one shall be en-
titled to use "A name embodying either of said
combinations OF words
SEC. 3. Every such association shall have
board Of directors Of not less than five per
sons, and shall adopt and be governed by by
laws, which bylaws shall describe the man
ner in which it's business shall be- transacted,
and shall be conformable TO the provisions Of
this act and the laws of this state. A copy Of
the bylaws and OF any amendment thereof,
certified by the president and secretary Of
such association, shall Immediately upon their
adoption be filed in the office of the insurance
commissioner. Such association shall also file
In said office copy of its charter and any
amendment thereof duly certified by the sec.
retary Of state.
SEC. 4. Every such building loan association
shall take for every loan made, a non negoti-
able note or bond secured by first mortgage
on real estate which security shall be satisfac.
tory to the board of directors of such associa
tion, and shall be accompanied by transfer
and pledge Of the shares of the borrowing
member TO the association. The shares so
pied ed shall be held as collateral security foi
the -formance Of the terms and conditions
of sal note and mortgage: Provided, that the
shares without other security may be accept
ed as security for loans for amount not ex
ceeding their withdrawal value as provided by
this act.
SEC. 5. Any such building loan association
shall not buy or sell real estate except as fol
lows II may purchase at 1y sale. public Oh
private, any real estate or other security upon
which it has a mortgage, lien or other incum
brance, or in which IL has any interest and
may sell, convey, lease. improve, or mortgage
the same to any person or persons and may
acquire and hold lot or lots whereon TO erect
. building or buildings for the transaction Of
its business and from portions Of which not
required for its own use revenue may be de-
rived, the cost Of such building or buildings
and lot or lots In no case to exceed ten pei
cent Of its accumulated capital: Provided,
that any such association may acquire any
lease or interest necessary for the transaction
Of its business.
SEC. 8. The limitation of the capital stoch
Of any such association shall be held TO apply
to the capital actually paid in, and any such
association may issue its shares long as the
capital actually paid In on its shares is not in
excess Of its authorized capital.
SEC. z. Any such association may issue diff
ferent series and classes OF stock instalment
stock to be paid In periodical sums; prepaid
stock upon which a gross sum shall be paid
in advance, and which instalment and prepaid
stock shall mature when the amount paid.
together with the dividends declared upon the
same shall equal the par value of such stock
and dividend bearing prepaid stock upon
paid stock, and upon which an annual partial
dividend may be paid out Of the full dividend
apportioned thereto; and a full paid stock
upon which the par value thereof shall be
paid In advance, and upon which full paid
stock n definite dividend may be paid, which
dividend shall In no case exceed the per cent.
earned by all the classes or series OF stock it
the time said dividend Is declared; and may
also issue shares of guaranty or permanent
stock, for which the full par value shall be
paid mt the time OF issue. Such guaranty or
permanent stock shall not be withdrawn un.
til all lawful claims of every other class OF
stock shall have been fully liqudated and paid
by such association, and shall only receive
dividends from the earnings OF such associa.
tion In excess OF such rate ms may be specified
In the bylaws TO be paid each other class II
stock. But no building loan association shall
issue any certificate Of shares until the terms
and conditions thereof shall have been first
submitted TO and approved by the insurance
commissioner and unless the same shall have
plainly printed therein or on the back there.
Of the cash withdrawal value OF such ccrtia.
cate.
SEC r. Any shareholder whose instalment
shares are not in arrears or pledged upon u
loan shall be entitled to withdraw such share
or shares at any time after twelve months
from the date Of the first payment ON the
same upon giving thirty days written notice.
Any such shareholder may give notice Of
withdrawal in writing To the secretary ~
said association and the liability of said share.
holder To pay further instalments and righ,
"a share I'm future profits shall cease with said
notice. Such withdrawing shareholder shall
be entitled 10 receive after one year from th,
date OF his first payment, all monthly pay
ments made on account Of such share OF
shares not including membership promiuml
or fines less q withdrawal fee not to exceed
one per cont. oe the maturity value Of eacl