The herald. [volume] (New Orleans, La.) 1905-1953, 1922-02-09
CHARTER.

of such reinstatement. But, should the
defaulting stakeholder be borrower from
this association, then the right of fore
closure and executory process under MS
mortgage shall forthwith inure to this
association.
Every loan on real estate shall be Sc
cured by vendors lien and first mortgage
on unencumbered real estate accompanied
by a pledge to this association of the
shares borrowed upon and declaration
of such pledge in an authentic act which
shall create full, valid and complete
pledge. and the fact of such pledge shall
be stipulated on the face of the certific-
cate so pledged whenever such certificate
itself is not delivered to and held by this
association, and such vendors lien so re-
corded shall remain in full force and effect
until the obligation is paid and extin-
guished. provided that this association
may make loans on real estate situated in
the Parishes of st. Bernard and Jefferson
in accordance with the laws of the State,
and may establish, conduct and operate
such branch offices as may be designated
in the bylaws of this association.
1t shall be lawful for this association
to purchase from any stakeholder or other
person any real estate, improved or unim-
proved, and to sell or dispose of the same
in the same condition. or after improving.
repairing or building upon the same, TO
any member stakeholder, provided that
this association may make sales of pro-
on terms of credit, and shall have the
power to loan and advance money to its
stockholders for the purpose of enabling
them to purchase, improve, repair and
build upon real estate, and to remove en-
cumbrances and mortgages therefrom. and
for any other purpose; and shall have
the further power to make all contracts
and do all things necessary and proper in
connection Herewith.
Members not indebted to the association
may withdraw all, or any part of the cash
value of their unpledged shares by giving
notice in writing, which notice shall be
duly filed in a book kept for that pur-
pose by the secretary of this association.
and the liability to pay dues, and the
right to participate in the profits shall
cease with the notice of the withdrawal.
The member shall receive all installments
paid, and, If twelve monthly installments
have been paid upon the stock, all diyi-
dends credited thereto less any unpaid
charges and a pro rata share of the losses,
II any, in excess of the amount in the
contingent loss fund. Members making
partial Withdrawals shall forfeit all share
in the earnings since the last dividend
on the amount so withdrawn. Notice OF
withdrawal shall be registered and num-
bered In the order of their filing and shall
be hquidated in rotation as registered
upon the return of the certificate of stock
and pass book, IL the withdrawal be to-
, tai, and upon the giving of proper re-
ceipt IL the withdrawal be partial, out OF
treasury, provided that not more than
one half of the net receipts shall ever be
used for the liquidation of withdrawn oil
matured stock, unless there should be an
accumulation of funds that cannot be
loaned in the ordinary course of business
Full Paid Withdrawal Shares and ma
tured lnstallment Shares may be with.
drawn In the same manner, but no frac
tional parts of shares can be withdrawn
In case of the death of any non borrow.
ing member, the notice of his death will
operate as a notice Of withdrawal and
his succession will be entitled to a settle
ment as above provided for Withdrawals
or the shares may be continued by his
lawful representatives or by them may b,
transferred, provided notice of their inten
ton to continue or to transfer shall b,
given within six months, after the dealt
of such deceased member. And, in case o.
the death of any borrowing member. hi
heirs or representatives shall be entitled
| to succeed to all his rights and obliga
lions, provided IL be done within ST,
months after the death of such member.
Should there be an over accumulation
of the funds belonging to this association
and beyond its use, the board shall hav,
the right to call In any full paid shares
for redemption, provided that the full
reverse order Of their issue and shall b.
redeemed for face value plus interest To-
the time intervening since the last divi
! dend and at the same rate as the las
ulNluen0 declared.
At the close of each semi annual period
to-wit: December 31st, and June 30th
| the gross earnings of this association
shall be ascertained from which shall frs
| be deducted the expenses of this assOcia
| ton and from the balance there shall b.
| set aside at least three per cent (3%) o
the net earnings as fund for the pay
| ment Of contingent losses until said fun,
reaches two and one-half per cent (2h %
Of the outstanding loans; the association
shall then set aside and deduct three pc
cent (3%) of the net earnings for a re
] serve fund, this fund to increase at eacl
l dividend period by the addition Of tn
said three per cent. The balance of tn
profits or that part thereof which may b
| deemed advisable by the board of direc
tors, shall be declared as a dividend an,
distributed among the different classes o
| stock as the board Of directors may de
| termine, provided that no greater rate o
dividend shall be payable to any one elias
Of stock in preference to the others. Al
expenses of this association shall be pat
out of the earnings only, but charges In
cident to loan paid by the borrowe
shall not be deemed part Of the curren
F, expenses. In the calculation Of the gros
| earnings of this association previous to
| dividend. interest due and unpaid for
period longer than six months on debt
owing or credits outstanding, shall not b
this contingent loss fund from time t
\ time as they accrue, and when the sal,
fund falls below the two and one-hal
per cent of the loans in force, by reason
| of loans, or otherwise, 1t shall be re
plenished by regular appropriations on
of the net earnings until it again reache
| said amount. The dividends declared b,
the board Of directors shall not exceed
the portion of the profits earned and with
| drawable by the shares of this associa
\ ton.
All installment shares shall be dull,
registered in a book kept for that pur
pose by the secretary of this association
and a pass book shall be issued to tn
member stakeholder setting forth tn
number of shares subscribed to by tn
said member, and the dates and amour
of payment on the said shares; and when
ever the shares on any book by reason o
the payment of the installments on
stock and the accumulation Of dividend
thereon shall be worth the par value o
one hundred $1,000 dollars each sucl
share shall thereby mature and shall b.
payable as speedily as may be found con
sistent with the best interest Of the stock
holders and Of the association.