The news & observer., 1905-01-25
STATE BUILDING
AND LOAN Ass Ms
Senate Judiciary to Hear
Bill Discussed.
ENCAMP ENT GROUND
Bill Charging Violation Of Conditions
of Gifts On the Part of the State
and Reverting the Property
to Wilmington, Will Be
Argued Thursday.
Senate Judiciary

Inc senate JuQlCldTS 1olll-
mittce yesterday afternoon passed
several important bills, but ac-
ton on the matters of wide,
import was deferred until later dates.
special order February sth. beina
made for the bill of Mr.. Duls, OF
Mecklenburg, concerning Building ana
Loan Associations.
1t was authorized that two hundred
copies of the bin be made.
This is one of the most important
bills to business men that has as vet
been considered by the legislature. 1t
provides for the organization Of these
associations, and defines their priHi-
leges and powers. and describes their
stock 1t relates what shall be the
government of such associations and
the rights of its members. The act
prohibits foreign building and loan
association from soliciting business IN
this State without having procured
from the building and loan commls-
sion, described below. a certificate that
it is licensed by the State. Applica
ton for authority to transact business
in this State must be made TO the COM
mission. and on making such apph-
cation every such association shall file
With the commission a duly authenti-
Gated copy of its charter or certificate
of incorporation, its constitution and
bylaws, and certified copies of all
amendments thereto; the names ana
addresses of it's officers and directors,
the compensation paid each officer,
and a report of its condition, in such
form as may be prescribed by the COM
mission.
If it shall appear to the commits
sion by the report and by an exami-
nation of the affairs of the associa-
tion, that it has rood assets of suffi-
cent value TO cover all its liabilities,
and that its methods of doing busi
ness are safe and not contrary to the
laws governing building and loan as
sociations of this State, 1t may be adj
mitted to transact business in this
State upon a certificate of authority
to be issued by the commission, which
shall only be issued when the asSocia-
ton shall have complied with the fur
ther requirements of the act.
The Building and Loan Commission
before issuing the certificate of au-
thority shall require every such asso~
citation to deposit with the Insurance
Commissioner of the State such securi-
ties as he may approve amounting to
at least thirty thousand dollars, which
securities shall be held by him in trust
for. the exclusive benefit and security
Of the creditors and shareholders of
such association resident in this State.
and he shall have authority to require
il to deposit additional securities. and
to order change in any of the securl-
ties so deposited at any time and nc
change or transfer of the same shall
be made or be effectual without his
assent; such deposit shall be MAIN
tanned intact in the full sum re-
quired at all times but the aSsocia-
ton making such deposit, so long as
it shall continue solvent and comply
with all the provisions of this act APP
r.lf a11ia ff. mo
dends or interests on the securities de-
posted, and may. from time to time,
with the assent of the commissioner.
withdraw any of such securities on de-
posting with the commissioner other
like securities the par value OF Whlch
shall be equal to such as may De
withdrawn.
Every such association shall pay for
filing a certified copy of its charter or
certificate of incorporation, twenty
dollars for filing original annual re.
ports, twenty dollars; for certificate OF
authority, annually. two hundred ana
fifty dollars; for certificate for each
agency FIVE dollars. and shall defray
all expenses Incurred in making any
examination of its affairs as herein
provided for; and the Insurance Com
missioner may maintain an action. IN
the name of the state. against such
association for the recovery OF such
expenses, in any court OF the conf
petent jurisdiction.
The expenses of a building and loan
association. whether foreign or formed
under Chanter Z, Vol. =, Code North
Carolina and the amendments there
to or incorporated under this act that
has over 1000 shares shall not exceed
two (2) per centum of the gross IN
come of the association
The act provides: THAT special
commission be and the same is here
by created under the name of the
Building and Loan Commissions to be
composed of the Chairman of the
Corporation Commission of the state
the Insurance Commissioner of the
state, and the President of the State