The Somerset reporter., 1897-04-01
Chapter $40.

AN ACT amendatory and additional to Chap
ter forty seven Of the Revised Statutes, as
amended by Chapter sixty-one of the Public
Laws OF eighteen hundred and eighty seven,
and to Chapter two hundred and seventy.
tour OF the Public Laws of eighteen hun.
dred and ninety three, relating to Loan and
Building Associations.
SECT. /. Section one hundred and thirty.
nine of chapter sixty one of the Public Laws Of
eighteen hundred and eighty .seven, Is hereby
amended by striking out all of said section
and inserting the following:
Section 1879. Tho board OF directors shall
see to the proper investment of the funds of
the association, as provided in this section.
After due allowance for all necessary and
proper expenses, and for the withdrawal of
shares, tho moneys of the association shall be
loaned to the members at rate of monthly
premium to be fixed by tho directors, which
sh all in no case exceed forty cents per share.
Any member may, upon giving security salts
factory to the directors, receive loan OF two
hundred dollars for each share held by
him, such fractional part OF two hundred
ton may provide in its bylaws that instead OF
the interest and premium, stated rate of
annual interest not to exceed eight per cent
may be charged upon the SUM desired, pay
able In monthly installments. Such rate shall
include the whole interest and premium to be
paid upon the loan. Any balance remaining
unloaned to members may be invested in such
securities as are legal for tho investment of
deposits In savings banks No loan shall be
made on the gross premium plan.
SECT. 2. Section one hundred forty seven of
chapter sxty-one of the public laws of eight
cen hundred and elghtyseven, il hereby
amended by striking ont all OF said section
and inserting the following.
section l7. The general accounts OF every
| such association shall be kept by double entry
The secretary shall at least once each month
make and declare n trial balance, which shall
be recorded In a book provided for that pur-
pose, and 1t shall at all times be open to the
inspection of the directors and shareholders
of the association. All moneys received from
the members shall be recepted for by persons
designated by the directors In pass book pro-
vided by the association for the use of and to
be held by the member, and said pass-book
shall be plainly marked with the name and
residence of the holder thereof, tho number of
shares held by him and the number or desig.
nation of the series or issue to which said
| shares respectively belong and the date of the
issue of such series. All moneys SO received
In book to be called the cash book, and the
| entries therein shall be so made as to show the
| name Of the payer, the number of the shares
| tho number or designation OF the series, or
| issues OF the particular share or shares 40
entered, together with the amount OF dues,
! interest premiums and fines paid thereon, rs
| tho case may be. Each payment shall be clas-
| sihed aud entered in a column devoted to its
| kind. Said cash book shall be closed on the
lat day Of the month In which each stated
| meeting Is held, and shall be an exhibit OF the
receipt Of all moneys paid by shareholders
| during said month. All payments made by
| the association for any purpose Whatsoever,
| shall be by order, check or draft, signed by the
president and secretary, and indorsed by the
| persons In whose favor the same are drawn,
The name of the payee, the amount paid, and
the purpose, object or thing tor which the pay
ment is made, together with its date, shall be
| entered on the margin of said order, check or
draft The treasurer shall dispose of and
secure the safe keeping OF all moneys, security
and property Of tho corporation, in the manner
| designated by its bylaws
| SECT. 3. Section one hundred and forty
| eight of chapter sixty-one of the public laws
| OF eighteen hundred and eighty -seYen, is here
| by amended by striking out in tho eleventh
! line Of a5il section, the word "one' and insert
! ing tie Worl three and by striking out In the
same line the word ave" and inserting the
| word ten SO that said section, as amended,
| shall read us follows
section las. The profits and losses may ba
| distributed annually, semi.unnually or quar-
terly, to the shares then existing. but shall he
| distributed at least once In each year, and
| wheneYerancw series OF shares il 10 be issued
| Profits and losses shall be distributed 10 tina
various shares existing at the time OF such
| distrlbntlon, In proportion TO their value at
| that time, md shall be computed upon the
basis OF a single share, fully paid TO the date
| Of distribution. Losses shan be apportioned
| Immediately after their occurrence. Mt each
| periodical distribution OF profits, the directors
shall reserve as n guaranty fund ii sum not less
| than three nor more than ten per cent of the
net profits accruinE since the next preceding
! adjustment. I'll such fund amounts to five
| per cent OF the dues capital, which fund shall
| thereafter be maintained and held. and said
fund shan be at all times available TO meet
| losses In the business of the association from
! depreciation in Its securities or otherwise.
| SECT T. Section one hundred and nifty one
OF chapter sixty one Of the public laws of eight
cen hundred and eighty seven, IS hereby
amended by striking out all OF said section and
| inserting the following
Section 49, The bank examiner shall per
form, In reference to all loan and building nsso
Citations, the same duties and shall have nis