The Springfield herald., 1897-05-14
IMPORTANT NEW LAW
REGULATES BUILDING ASSoCiA-
TONS.
The New Measure Intended to Protect
Members Against Dishonest omcers-
Periodical Statements Reduited.

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"
Ii 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
ticieS of incorpora ton. either fully or
partially paid up in periodical or 9TH
er instnllinents; or upon all, any or
either of these plans. with or without
full participation in the earnings OF
such ASSOCIATION. or partially in limited
die.dend-bearing stocks, for the pur-
pose of raising a fund to make ad-
vances to members upon mortgages,
trust ieeds. etc, secured by real estate
or other security. =,
Borrowing members shall be required
to carry such periodical assessment
stock with the association as shall
every share issued shall be subject to
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 .SSocja ton. No more than a fee
OF So shall be charged member who
wishes TO withdraw. and no withdraw
81 fee shall be greater than $40, ire
sI-aciiye 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 10 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 asSocia tions must file with
the clerk and recorder of the county
in which its headquarters are, a copy
of its bylaws. and also file all subse-
quent amendments and changes made
therein.
No officer of such associa ton shall
receive loan from the association or
become surety for such loan, except
that he may receive a 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 he loaned on real estate, etc,
but at no time shall more than one
fourth of the association's 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 1st. of each
year. each association shall file with
the clerk of its county 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 withdra wn during the six
months. together with the number in
force, receipts. disbursements, ex-
penses. assets and liabilities Of the as
sociation.
For every day this report is withheld
fine of $40 shall be eXacted, the mon
ey to go into the school fund. Max
ing "A false report of this kind is pro-
nounced to be felony. punishable by
| fine not to exceed 5000, or from one
to five years in the penltentiary, or
both. for each offense.
Whenever any interested person be-
| lieves a building and loan association
| is being conducted in a manner to
| jeopartlze 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 a receiver for such as
sociation.