Birmingham state herald. (Birmingham, Ala.) 1895-1897, 1897-02-17

taxation of building and loan assosla-
lions.
Section /. Be it enacted by the general
assembly of Alabama, That the name
Building and Loan association" as used
in this act shall include all corporations
societies, organizations or associations
doing business IN this state, under q
building and loan charter or engaged IN
building and loan business.
Sec. 2. Be it further enacted, That on
or before the first day of March in each
year, every building and loan association
doing business in this state, ana gov
erned by this act, shall file with the aud
itor of the state. a detailed report of its
affairs and operations for the year ending
the 31st of December, Immediately pre-
cedng, and such report shall be veri-
fed under oath by the president ana sec
rotary or by three directors or the as
ISOLATION, and shall contain answers 10
the following questions: /. The date
when the association was Incorporated
and the par value of each share OF stock.
2. Number of shares sold during the
year g. Number of shares cancelled or
withdrawn during the year. T. Number
of shares in force at the end OF the year.
8. A detailed statement of total receipts
and disbursements, showing from what
source received, and to what source APP
piled. 6. A statement of the assets and
liabilities at the end of the year. The
following items shall constitute the assets
of a building and loan association. ].
Money actually loaned. 2. Accrued in
terest and premium fines and forfeitures.
g. Furniture and fixtures. 4. Real estate.
s. Taxes and insurance advanced. ..
Solvent credits. z. Such other legiti-
mate assets as the association may &C
qure in the course of its business. 8. Cash
on hand, as shown by books and official
certificate of designated repositories. y.
File copy of its bylaws and published
literature, which shall be free from am
biguity and not misleading in its nature.
Sec. 8. Be it further enacted, That each
association shall pay to the auditor OF
the state $40 on the filing of each report
II an association shall wilfully fail to
furnish to the auditor of the state any
report required by this act, at the time so
required, it shall in the discretion of the
auditor, forfeit the sum of $25 per day
for every day such report shall be de-
layed or withheld, and the auditor of the
state may maintain action in his name as
such auditor, to recover such penalty,
and the same shall be paid into the treas
ury of the state for the benefit of the
state.
Sec. 4. Be 1t further enacted, That nom
resident building and loan associations
having not less than one hundred thous-
and dollars in assets shall, before doing
any business in this state, obtain Ii
cense from the auditor, by complying
with the following: 1. Such associations
shall file with the auditor a certified
copy of it's charter or articles of incor-
poration, and bylaws, showing its mode
of business. 2. File detailed report of
it's actual condition as provided for in Sec
tion 2 of this act. 3. Pay the auditor
twenty-five dollars as fee for filing the
papers mentioned in this section.
Sec. 5. Be 1t further enacted, That such
associations may by their bylaws, i'm
pose fines and penalties upon their men,
bers for default or delay in payment,
when same are due, of inStallments
upon their loans, the interest, premium
and charges thereon, and upon the shares
of stock of such members, and the same
may be secured and collected by mort
gage, in addition to the amount of inter-
est, premium and other charges allowed
by law, but such fines shall not exceed
two per cent. per month of such arrear-
ages.
Sec. 6. Be 1t further enacted, That upon
foreclosure or sale under power given in
any mortgage of land by member to
such association 1t shall credit, as of the
date made, upon the entire debt claimed
by the association all payments made up
on such debt whether of principal, pre-
miums or interest. and the stock pledged
for such loan shall be credited on the
said loan at its actual value, and such
stock thereby cancelled; and upon for
fixture of stock of member borrowing
from such association, upon security of
his stock only, such loan shall be credited
with the actual value of such stock.
sec. 4. be 1t IuItnef enacted, mat all
shares of stock in said associa tons, upon
which all dues and charges for one year
or more have been paid, shall have a
definite withdrawal value which shall be
set out in the bylaws of said associa ton,
and shall not be less than the whole
amount paid in upon such shares, with
not less than eight per cent. per annum
thereon for the average time such dues
have been paid. less fines and penalties
and proportionate share of expenses
and losses sustained.
Sec. s. BE it further enacted, That the
premium to be charged upon any loan
must be fixed by the bylaws, but such
premium and the interest on the loan
taken together shall not exceed one per
cent. per month ON the amount actually
loaned or advanced
Sec. 8. Be it further enacted, That no
officer director or agent of any foreign
building and loan association, shall in
this state solicit subscriptions of stock
to such association, or sell or knowingly
cause to be sold, or issued to a resident
of this state, any stock Of an association.
until the said association has complied
with the provisions of the preceding sec
tions. Any violation hereof shall be
deemed misdemeanor. and upon convic-
ton shall be punished by fine of not
less than ten dollars nor more than fifty
dollars.
Sec. 10. BIT it further enacted That
building and loan associations doing
business in this state are not required to
return as part of their taxable property.
notes and mortgages made and executed
to them by their stockholders or mem
bers, for purchases, loans or advances on
stock made at the distribution of the
funds thereof, If the stockholders or mem
bers obtaining such purchases, loans or
advances pay the tax levied and assess
ed in the whole value of the property so
mortgaged; otherwise such associations
must return for taxation the amount of
their capital held by stockholders or
members on such purchases. loans or
advances and also the average amount of
money held by them during the year pre-
ceding that for which their assessment
returns are made.
Approved February 18th 1897.
Official: J. K JACKSON
Secretary of State