The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-02-11
Prepared by Chairman Peckfnpaugh.
and VIII Probably Pass Substan-
TALLY in This Form
EXPENSE FUND ABOLISHED
RELIEF FOR MEMBERS WHO DESIRE
TO WITHDRAW FUNDS.
Question of Regulating Premiums
Left Over-Other Features of
the Measure.


completed by Chairman Peckinpaugh. of
the committee. Numerous joint meetings
of the committees of the two branches have
been held and they are agreed upon the
main features of this BILL 1t reads as fol-
lows:
Section BE il enacted by the General
Assembly of the State of Indiana: That ev-
cry association heretofore incorporated
under any law of this State providing for
the incorporation OF building. loan fund and
saving association, and every association
heretofore or hereafter Incorporated for the
purpose of raising money to be loaned or
advanced among its members. shall be
known in this act as a building and loan
association.
Sec 2-That 1t shall be unlawful for any
building and loan association doing bust
ness in the State of Indiana to charge CT
collect from any of the members thereof
on any stock or shares of stock therein, any
money or moneys other than membership
ices, dues on stock, premium interest,
fines, forfeiture and transfer fee All men,
DerShip fees. transfer fee, fines. fOrfeitureS,
premium and interest shall be credited to
the earnings and all expenses shall be paid
out OF the earning of such building and
loan association, and association shall
charge or collect a membership fee of more
than 80 cents on each share of stock issued.
such association shall have the right to
set aside from the profits a reserve fund
to provide against contingent losses, pro-
vided, that the amount set aside for
that purpose shall not exceed percentum
of the net earnings and said fund shall be
invested as the other funds of said asso-
citation.
Sec. SIT shall be the duty of the secre-
tary of every such association to furnish
annual written or printed statement of the
condition of such association to each of the
stockholders thereof, which said statement
shall be delivered personally or mailed to
the stakeholder. Such statement shall show
dues, interest, premium, fines. forfeitures,
transfer Zee. together with all moneys re-
ceived by it from any source whatever, and
a full showing of all payments on loans.
dividends. salaries and ali expenditures of
every character, being full and complete
financial statement of such association; the
tary and certified by the president.
Sec. 4-For the purpose of taxation the
association shall be deemed to be the agent
only of it's stockholders and shall be ex-
empt from taxation. Shares of stock on
which loans have not been made adj
vanced by, the association shall be consid-
individually, and listed by them and as
sessed against them for taxation as other
property. Shares of stock upon which loans
have been made to their full value shall
which loans have been made to part of
their value only shall be exempt as to
such part.
Sec. sit shall be the duty of the state
auditor annually to make or cause to be
made an examination of the affairs of ev-
cry building and loan association. and if
any such association is being carried on in
violation Of law. to require such association
to conform to the laws governing the same,
tb any my assoc oi n, to comply
reference to any such matter within ten
days after receiving notice, shall be SUBJ
iect to penalty of s. per day for such
failure refusal which said penalty shall
be payable to the State of Indiana and
recoverable as other penalties due the
State: Should any such association. be
found to be fnsolvent, or shall fail and re-
fuse to comply with the order of the audi
tor of state. for thirty days. the auditor
of state shall apply to the Circuit or Su-
periOr Court of the county where the same
is situated for the appointment of a re-
ceiver. who shall proceed to close up the
business of such association, and no re-
ceiver shall be appointed for any such as
ISOLATION except on the application of the
auditor of state. The auditor of state may
at any time when so requested by stock
holders of any association make cause
to be made an examination of the affairs
of such association upon q petition being
filed by ten stockholders. TIE auditor of
state shall he allowed the sum of Sc per
day and 81 for every twenty-five miles to
travel to make such examination.
Sec. 6-Any stakeholder whose stock is
unpledged for a loan wishing to withdraw
from such association within one year from
time of issuing stock, may do so upon
three months notice in writing given to the
board of directors. when such withdrawing
stock shall be entitled to receive the full
amount paid in upon the stock to be with
drawn less all fines and pro rata share on
losses sustained prior TO the time of no.
tice of withdrawal. If such withdrawal is
made after one year from the time of is
suing of stocks such Withdrawing stock
holder shall be entitled to the amount paid
in on dues. and the profits thereon less all
fines for forfeiture and such part of the
profits as shall be carried to the reserve
or contingent fund. Provided that not more
than one-half of the funds in the treas
ury shall be applicable to the demands of
Withdrawing stockholders unless otherwise
ordered by the board of directors. Such as
-. kill H. IL
for the assessment of fines for nonpayment
of dues, premium or interest, but such fines
shall not exceed 10 percentum of the
dues and shall be charged only once on
such instament Such association shall
have the power TO provide for the forfeit
premium or dues for three months. After
the payment of all fines and other amounts
due the association, the remainder. if any
shall be credited TO such stakeholder and he
shall be notified of the amount due him or
in he is borrower such remainder
shall be credited on his loan and the bal
ance of said loan shall be due and payable
and may be collected at once on foreclosure
The bonds. notes or mortgages belonging
to any association shall not be negotiable
peridr court Court of the county in which the
principal office of said association is stu
ated.
Sec. THE capital stock of any associa-
ton may, upon the order of the board of
directors thereof be increased to such an
amount as the directors shall deem advis-
able. No director shall become a surety on
a bond of any secretary treasurer or
any officer of such association.
Sec. S-Any two or more associations Of
this State may consolidate into single cor
poration by a majority vote of all the
stockholders of the different associations by
a special meeting of each association called
for that purpose of which at least thirty
days written notice shall have been given
to each member The consolidation TO be
upon such terms as shall be mutually
agreed upon by the directors of such as
ISOLATION and such terms shall be plainly
set forth to each member in the notices Of
such special meetings. Any member not
entitled to receive the withdrawal value of
a stock in settlement or 20 have such value
applied in part settlement of his loan If he
be borrower.
member Of any committee. secretary. treas
urer, attorney or any other officer at any
time created. or agent OF any such build
ing and loan association who embezzles. alb
stracts or willfully misarolies any OF the
moneys. funds or credits of such assOcia-
ton or who issues puts in circulation
any warrant or other order, or who as
signs, transfers. cancels or delivers up any
note bond. draft, mortgage, judgment, de-
cree or any other written instrument be-
longing to such association, or raises money
otherwise or receives money from any
member or other person for and in the
name of such association. unless duly au-
thorized by the board OF directors OF such
association. or who signs the name OF any
person to any order or warrant for the pay
ment of money without proper power OF
attorney or written order from such person.
to whose order such warrant order Is
made payable: or any member or members
of the board of directors who shall vote to
declare or any secretary or other officer OF
such association who shall declare or adj
wise the. board of directors of such associa-
ton. to declare greater dividend than