The Providence news. (Providence [R.I.]) 1891-1906, 1895-07-30
PUBLIC LAWS PASSED AT THE
JANUARY SESSION, 1895.
(The Chapters OF tho Public Laws ara num.
bered continuously from the Public statutes.
revision VI lso2.D
CHAPTER IRho

An ACT TO Regulate and Provide For Report.
and Supervision of Building Loan Associa.
tions Hereafter Incorporated In This state
IL Is enActed b tho General Assembly as fol.
lows:
SECTION l. Every building-Ioan association
hereafter Incorporated In this state shall haya
the powers and DO subject 20 the provisions ot
this act and OF anySact In amendment thereof
or in addition thereto unless otherwise ex.
pressly provided by law, and shall have All
the powers and privileges and be subject 10
all tho duties and liabilities set forth in Chan.
ter i52 Of the Public Statutes. and of any ac,
in amendment thereof or In addition thereto
but nothing herein shall bo construed 10 an.
thorize such q corporation 10 do n bankine
business. The words building. loan associa.
tion" as used in this act shall include all cor.
porations. societies, organizations and assoeia.
tions hereafter created by special act or mn.
der the laws of this state doing savings and
loan or investment business on the build,na
society plan whether mutual or otherwise
and whether issuing certificates of stock
which mature at a fxed time In advance or
not.
SEQ. O. Every such building loan association
shall have included In its name the words Saw.
ings- Fund. Building Loan. Cooperative Saw.
ings, Savings and Loan or Cooperative Bank.
and no corporation or association not doing tho
business specified In section one shall be en-.
titled TO use a oame embodying either OF said
combinations of words.
SEC. Q. Every such association shall have N
board Of directors OF not less than Eve per.
sons, and shall adopt and be governed by by.
laws, which bylaws shall describe the man
ner In which Its business shall be transacted
and shall be conformabe 20 the provisions of
this act and the laws of this state. A copy O,
the bylaws ard of any amendment thereof.
certified by the president and secretary Of
such association, shall Immediately upon their
adoption be fled In tho Office OF the Insurance
commissioner. Such association shall also tils
In said Office q 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-neeoti.
able note or bond secured by first mortgage
On real estate which security shall be satisfac.
tory 20 the board of directors Of such associa,
tion, and shall be accompanied by a transfer
and pledge Of the shares Of the BORROWING
member TO the association. The shares so
pledged shall be held "a collateral security foi
the performance of the terms and conditions
OF said note and mortgage Provided, that the
shares without other security may be accept
ed as security for loans for an amount not ex
cecding their withdrawal value as provided iy
this act.
SEC. 5. Any such building.lo loan association
shall not buy or sell real estate except as fol-
lows: IL may purchase at any sale, public on
which 10 has a mortgage, lien OF other incum
brance. or in which IL has any interest and
may sell, convey, lease. improve, or mortgage
the same 70 any person or persons and may
acquire and hold lot or lots whereon 20 erect
Il building or buildings for the transaction Of
Its business and from portions of which not
required for It's own use a 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 Q. The limitation Of the capital stoch
Of any such association shall be held TO apply
10 the capital actually paid in, and any such
association may issue its shares 50 long as the
capital actually paid in on It's shares is not In
excess Of its authorized capital.
SIC. 7. Any such association may issue dif.
serent series and classes Of stock instalnent
stock to be paid in periodical sums; prepaid
stock upon which gross sum shall be paid
IN advance, and which instalment and prepaid
stock shall mature when the amount 30 paid,
together with the dividends declareS upon the
same shall equal the par value of such stock:
and dividend bearing prepaid stock upon
which larger sum is paid than upon the pre-.
paid stock, and upon which an annual partial
dividend may be- paid out Of the full dividend
apportioned thereto; and full paid stock
upon which the par value thereof shall be
PAID in advance, and upon which full paid
stock definite dividend may be paid which
dividend shall In no case exceed the per cent.
earned by all tho classes or series OF stock al
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 at the time of issue. Such guaranty on
permanent stock shall Not BE- withdrawn un.
I'll all lawful claims of every other class OF
stock shall have been fully liquidated and paid
f.ts III
dividends from the earnings Of such assoc'a-
tion In excess OF such rate as may be specified
In the bylaws 10 be- paid each other class of
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 certid-
cate.
SEC. e. Any shareholder whose instalment
shares ara not In arrears or pledged upon
loan shall be entitled to withdraw such share
or shares at any time nfter twelve months
IRON 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 70 the secretary of
said association, and the liability of said share
hofdor 10 pay further instruments and right
70 share in future profits shall cease with said
hNeiNc. ouch WltDuraWlng shareholder snail
De entitled TO receive after one year from tho
date OF his first payment all monthly pay
nents mado on account OF such share or
shares not including membership premiums
or lines less withdrawal fee not % exceed
one Der cent OF the maturity value of each
tnstalment share, and during the frst three
years from the date Of sal iirst payment lcss
the amount deducted for expenses and the
accumulation OF guaranty fund as author.
lied by section eleven hereof. All stockholders
who do not give the notice as herein provided,
failing 70 make payments shall be subject ~
n line 10 be Exed by the by laws not exceeding
nvo cents pSc share per moath for each month
or traction tJercof such payments are in ar
rearS Tor period OF six months after the last
payment made, such fines in the aggregate
not To oxceed the Of thirty cents pen
share, and at tho end OF any period Of sis
months, II arrearages and fines remain un.
paid, the balsnco remaining Of the monthly
payments made shall be transferred TO sus-
penso account, and shall be witbdrawable aft
or one and within ten years with interest al
tho ratio or three pcr cent. per annum. II not
called Tor within this period, tho amount
shall be transferred % u guaranty fund, aud
the delinquent sharehOl7or shall, from tho
tiInO OF such transfer Ia, larrad from rrosO.