Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1896-03-12
LEGISLATIVE GOSSIP
NEWSY LETTER FROM JULIEN RICH
ARDS, OUR CORRESPONDENT.
Considerable Work Accomplished During
the Past Week building and Loan Bills.
Liquor Plan on the NIulct Basis-Curfcw
Not to Ring-w Woman Suffrage shelved.

1000 $500
Liquor Plan on the Mulct Basis-Curfcw
Not to Ring-woman Suffrage shelved.
DIES MONIES, March l0.-During tho
past week much work has been accom-
plished by the legislature. Among tho
more important measures that have
been put far along the road towards be-
coming laws are the bills to control and
govern building and loan associations.
Both houses have adopted measures
which were perfected by the committees
to whom they were referred and the
bills are practically the same with the
exceptions that the senate bill provides
that deposit of 800, 900 must be made
by any foreign building and loan asso-
citation desiring to do business in this
state as fund to protect the interests of
Iowa shareholders. The senate bill also
specifically provides that building and
loan associations shall not do q banking
business. This is omitted in the house
bill. 1t is believed probable that when
the conference committees meet these
two features will be Incorporated in the
bill, which will finally become law.
The committee bill prepared by the
senate building and loan committee to
be substituted for the bills on that sub
ject which have been before them was
passed by the senate Thursday. 1t
divides building and loan associations
into three classes: Domestic locals"
who do business only in the county
where organized; "domestics," whose
business is not restricted to the place of
organization, and foreign" building
and loan associations. Neither Of these
associations is permitted to transact q
banking business or receive money with
out issuing shares of stock.
Provisions Of tho Bill.
The bill provides that the articles of
incorporation shall show the principal
objects of the association, including plan
for distributing profits, making loans,
equalizing losses, payment of expenses,
and providing for a contingent fund
from which to pay losses. The execu-
tive council is to pass upon the articles
of incorporation and bylaws and if ap-
proved theywill be filed in the Office of the
auditor of state and a certificate issued
authorizing the association to transact
business. Amendments to these articles
must be approved by the executive coun-
Gil. Officers of any domestic associa-
ton who sign or indorse checks or
handle funds of the association are re-
I'M tn fn no INV
the directors and state auditor, and the
bond is to be deposited with the auditor
of state. No director shall be accepted
as surety upon such bond and no person
may become bondsman for more than
one officer. Directors shall be individ-
ually liable for losses by reason of fail
ure in regard to the giving of bonds.
The bonds of officers Of any domestic
local association are to be approved by
the directors and the clerk of the district
court and deposited with the clerk of
the court.
Money is only to be loaned on real
estate security OF shares Of stock and not
exceeding 90 per cent of the withdrawal
value thereof. In case of foreclosure
the borrower shall be charged with the
full amount of the loan made to him,
and dues, interest, premium and fines
for which he is delinquent, and shall be
credited with the withdrawal value of
his pledged shares. The right to with
draw on giving prescribed notice is ac-
corded to each shareholder, he to receive
such proportion Of profits as the bylaws
may determine. The expense of matur-
ing every 800 of installment stock is
not to exceed IS and 81 per share for
fullpaid and prepaid stock. Dues, fines,
premiums and interest, less current ex-
penses, shall be the profits, and any net
loss must be deducted before declaring q
dividend. No person shall hold more
than $4,000 of stock computed at par
value and each member shall have one
vote for each 500 of stock and may cast
proxy votes, but no one shall vote more
than 10 Per cent of the outstanding
shares.
The directors shall determine the
amount to be set aside for contingent
losses and this fund shall be invested
and the earnings 60 to the benefit Of the
shareholders.
As to Foreign Associations.
A foreign building and loan associa-
ton must furnish the executive council
copies of it's articles of incorporation OF
charter and bylaws and a verified re.
port for the year last preceding, and the
executive council if it finds tnat the as
ISOLATION has complied with the provi
sions of this act shall so certify and the
state auditor shall issue a certificate tt
do business. Each foreign association
must deposit with the auditor of state
$780, 900 either in cash, bonds or frs
mortgages, which shall be held as secur
ity for the claims of resident share
holders of the state of Iowa, and thu
auditor OF state shall be appointed as tn,
person upon whom legal processes MAY
be served in actions against such foreign
associations. Foreign associations ar,
required to pay the following fees: Fo
each application 500; certificate o
authority and annual renewal, $50; fo
filing annual statement, from So to $50
according to the amount Of the assets.
Domestic associations shall pay $25 TO
certificate Of authority and each renewa
thereof, and $40 for filing annual state