Rocky Ford enterprise., 1897-05-13
IMPORTANT NEW LAW
REGULATES BUILDING ASSOCIA-
TIONS.
Tho New Measure Intended to Protect
Members Against Dishonest Officers
Periodical Statements Required.

Denver. May S-The new law regard
Ing building and loan associations,
signed by the governor this week, Is Of
| considerable Importance.
Its provisions govern any asSocia-
tion of not less than three members.
which may be organized for the pur-
pose Of raising fund by collecting as.
sessments among themselves, to be
loaned among the members. Such an
association must contain In Its corpor-
| ate name the words building and loan
| association"
1t may issue stock In one or more
| successive series, or upon the Dayton
permanent plan, In the denomina-
tions and extent as limited by Its ar
| ticles OF incorporation, either fully or
partially paid up In periodical or 9TH
| er installments; or upon all, any or
| either Of these plans. with or without
full participation in the earnings Of
| such association. or partially in limited
| dividend-bearing stocks. for the pur-
pose Of raising n. fund to make ad-
vances to members upon mortgages,
trust deeds, etc, secured by real estate
or other security.
Borrowing members shall be required
to carry such periodical assessment
stock with the association rs shall
have par value equal to the loan, and
every share issued shall be subject to
n lien for any advance made thereon,
or other claim against the holder.
Shares shall be redeemed with the
earnings they are entitled to whenever
they are not required for the purpose of
the association. No more than n fee
of So shall be charged a member who
wishes to withdraw, and no withdraw
| nj fee shall be greater than $40. ire
| spective of the number of shares held
| by the member withdrawing. With
drawals from the association are to be
| regulated by the bylaws. At no time
shall more than one-half the number of
| monthly receipts be devoted to paying
| OF withdra wing members. except by
consent of the Board OF Directors. No
shareholder in debt to the association
shall withdraw or transfer his stock
without the consent OF the board OF
directors.
| Upon the act taking effect all build.
Ing and loan associations must file with
the clerk and recorder Of the county
in which Its headquarters are. n copy
of its bylaws. and also file all subse'
quent amendments and changes made
therein.
| No officer of such association shall
receive loan from the association OF
| become surety for such loan, except
| that he may receive n stock loan to the
amount of ninety per cent. of the value
Of his collateral shares. This shall
not apply to domestic associations do
Ing business In only one county. Mon.
ey may be loaned on real estate, etc,
but at no time shall more than one.
fourth Of the associations accummu.
lated assets be invested in this way.
No fee for non-payment of member.
ship dues shall exceed five per cent
per month thereafter. On or before
August 1st. and February LIST, of each
year. each association shall file with
the clerk of its county n full report OF
its operations for the preceding months
certified to by the president and sec
retary or three directors. setting forth
the amount of its capital stock, par
value of shares. number of shares sold,
cancelled or withdrawn during the SIX
months, together with the number In
force. receipts. disbursements. eX-
penscs. assets and liabilities of the as.
ISOLATION.
For every day this report is withheld
fine of SO shall be exacted. the mon
ey to go into the school fund. Max
ing IA false report of this kind is pro-
nounced to be felony. punishable by
fine not to exceed $1,000. or from one
to five years in the penitentiary, or
both. for each offense.
Whenever any Interested person be.
lieves building and loan association
Is being conducted in Il manner to
jeopardiZe the interests of its men,
bers, he may report the same to the
attorney general. who shall thereupon
Investigate the complaint. If he deems
It necessary. the attorney general may
then proceed towards procuring the
appointment of receiver for such as
sociation.