Year: 1877

Chapter 1913.


AN ACT to provide for the organization and man.
agement OF Loan and Building Associations.
Be 1t enacted, &c., as follows:


SECT. l. Loan and Building Associations may be
organized in the manner provided by chapter nine.
ty-s:x Of the public laws Of eighteen hundred and
seventy-six for the organization Of savings banks,
trust and loan associations; and upon filing of any
certificate of authorization of loan and building
association with the Secretary OF State as provided
associates and assigns, shall, thereupon
and thereby, be duly and lawfully constituted
body corporate and polite and shall have the power
to make and use common seal, to hold, manage
and convey real and personal property, to sue and
be sued to prosecute and defend suits in law or in
pora+e name and to make and ordain bylaws for
its government not repugnant to the constitution
and laws of this State.


SECT 2. The certificate of authorization issued
by the bank examiner shall provide the method of
calling the first meeting of the association. Each
association shall pay the bank examiner the sum of
five dollars for his services in advance.


SECT. 3. The capital stock Of each association
shall insist of not more than thirty-fve hundred
shareholders may vote. Each shareholder shall, on
each and every share of stock held by him. pay the
sum of one dollar on such day or days in each and
every month, and to such officer, as the bylaws
shall require, until the value of the whole fund of
the series to which such shares may belong shall be
sufficient to divide to each share of that series the
sum of two hundred dollars. Every share shall be
subject to lien for the payment of any unpaid in
stalments and other charges incurred thereon under
the provisions OF this act ana the bylaws, ana the
bylaws may provide the method of enforcing such
lien. New shares may be issued in the place OF
shares withdrawn forfeited or redeemed.


SECT. 4. Each shareholder, for each and every
share of stock held in any association, shall be
titled to receive loan not exceeding two hundred
dollars such loan to be disposed of by the directors
at stated monthly meetings. to the shareholder who
shall bid the highest premium for the preference or
priority of the loan. Whenever a shareholder shall
be entitled by such preference to loan, he shall
give such security for the repayment Of the same and
interest as the directors may deem sufficient, and in
addition thereto he shall assign to the association
one share of stock for every sum of two hundred
dollars or fraction thereof borrowed by him. which
stock assigned shall be held as collateral security
for the repayment of such loan. In such share
holder negects. to offer security approved by the
directors, within such time the bylaws provide,
he shall be charged with months interest on the
loan, together. with expenses incurred, and the
money may be loaned to the next highest bidder or
re-sold at the next meeting In case of nonpayment
Of nstallments or interest, by borrowing sharehold
ers, for the space of six months, payment of princ
pal and interest, without deduct'ng premium paid,
may be enforced by proceeding on the securities
according to law. Loans may be repaid at any time
before due, and if before the expiration Of eight
years from the Of the series to which
it belongs, there shall be deducted from the same
One-pirhth Of the ndemium paid for each and