ciation have made loans to any of its members and taken securities therefor in pursuance of their constitution and by-laws, that any payment made after the passage of this act, by any member of said corporation or association, of any dues, forfeitures, or fines which may be due to said corporation or association according to the terms of the contract between said corporation or association and said member to said corporation or association, shall be deemed in law a waiver of anything in said contract or loan that might be deemed usurious in the same under the laws of this state at the time the same was made and securities given, and a ratification of said loan or contract, and of its present and future legality between said parties, as now existing under and by virtue of this act. [Id. § 4.]

BUILDING AND LOAN ASSOCIATIONS.

SEC. 148 a. [Organization-Name.]-Any association of not less than five persons, hereafter incorporated under the laws of this state, which shall be organized within this state, for the purpose of raising a fund by the collection of dues or stated payments from its members, to be loaned among its members, shall, in furtherance of such purpose, and after having complied with the requirements of this act, be authorized and empowered to levy, assess and collect from its members such sums of money, by rates of stated dues, fines, interest on loans advanced, and premiums bid by members for the right of precedence in taking loans, as the corporation may provide for in its constitution or by-laws, also, to acquire, hold, and convey all such real estate and personal property as may be legitimately pledged to it upon said loans, or may otherwise be transferred to it in the due course of its business (subject, however, to the limitations hereinafter named.) The words "Loan and Building Association," "Building Association," or "Building and Loan Association," shall form part of the corporate name of every such corporation. [Laws 1891, chap. 14 § 1.]

SEC. 148 b. [Constitution-Essential provisions.]-Every such association hereafter formed shall adopt a constitution which shall substantially give effect to the provisions of this act, and shall also adopt such by-laws for the government and management of its business as it shall deem proper. Provided, The same shall not be inconsistent with this act, and shall not contravene the laws or constitution of this state, or the United States, and may alter and amend the same from time to time in such manner as may be provided by its articles of incorporation. Such constitution shall contain equitable provisions, permitting any shareholder wishing to do so to withdraw from the association in manner as follows: After three months from date of issue of the certificate of shares, a shareholder or the legal representative of a deceased shareholder, wishing to withdraw from the said corporation, shall have the power to do so by giving thirty

SECS. 148 a-148 r. "An act to provide for the government, regulation, examination, reporting and winding up of the business of associations hereafter incorporated under the laws of this state, which shall be organized within this state for the purpose of raising a fund by the collection of dues or stated payments from its members to be loaned among its members; requiring such associations to use the words "Loan and Building Association," "Building Association" or "Building and Loan Association" as a part of its corporate name; granting certain powers to the same and requiring them to provide certain equitable features in their constitution and by-laws, prohibiting such associations from taking evidences of indebtedness for loans negotiable in form and making all such debts and evidences of debts non-negotiable, non-assignable and non-transferable in any manner so as to prevent their discharge by payment to the association. To provide for the examination of their articles of incorporation, constitution and by-laws and all amendments thereto, by the auditor of public accounts, state treasurer and attorney general, and their certificate of approval, if approved under this act; exempting associa tions holding such certificates from the operation of the usury laws of this state; allowing minors over fourteen years of age to become stockholders in such associations and removing their legal disability as to their dealings with such associations as members thereof; requiring similar associations now existing, to comply with certain requirements of this act, and extending its privileges to existing associations fully complying therewith; prohibiting any association hereafter formed not complying with this act from, and punishing it for using the words "Loan and Building Association," "Building Association" or "Building and Loan Association" as a part of its corporate name. Punishing every person who shall make any false statements or eutries on any books of any such association, or exhibit false papers with intent to deceive any person authorized to make examination into its affairs, or shall make, state or publish any false statement of the financial condition of the same. Also to define "Foreign Building and Loan Associations" and to provide for and fix the terms upon which the same shall be permitted to do business in this state, making it unlawful for them to do business within this state without complying with said terms and procuring a certificate of approval and authorization from the auditor of public accounts, state treasurer and attorney general, or any two of them, and punishing any person doing business or attempting to do business in this state for any foreign building and loan association not holding such certificate and repealing all acts and parts of acts in conflict with this act." [Laws 1891, chap. 14. Took effect April 4,

days' notice of such intention to withdraw, such notice being given in writing at the regular meeting of the board of directors. At the first regular meeting after the expiration of the thirty days' notice, or at any time thereafter, the member so withdrawing, or if deceased, his legal representative, shall be entitled to receive on demand the amount paid in by him or her less the admission fee and expense charges and such rate of interest as the by-laws may determine, less all fines and other charges. Should there have been however a net loss instead of a net gain, then such withdrawing shareholder shall receive the actual amount paid in, less his proportion of such net loss. At no time however shall more than one-half of the unloaned funds in the treasury of the corporation be applicable to the demands of the withdrawing shareholders without the consent of the board of directors. No shareholder shall be entitled to withdraw whose stock is pledged as security for a loan either from the association or from any other party. It shall contain equitable provisions permitting the payment of loans before maturity, and for crediting borrowing members who have paid premiums in advance and who repay their loans before maturity, with an equitable share of the premiums paid by them. Such constitution shall also provide that if any member has become delinquent in his payments on any shares, to an amount equal to the payments due thereon, for any period named therein (not however less than three nor more than twelve months) such shares shall be cancelled and he shall, as to such shares, cease to be a member and shall become a debtor or creditor of such association as the case may be, and it shall make equitable provisions for crediting such member with the same amount as if he had voluntary withdrawn from the association, and if any sum be due him after deducting fines and losses, if any, to date of cancellation it shall, if he be a borrower, be credited on his loan, and if he be not a borrower it shall be held subject to his order. Such constitution may, within the limits aforesaid, fix different periods for the cancellation of shares of borrowers and non-borrowers, and may also, within said limits, leave the period for cancellation wholly or in part, to the discretion of the board of directors. [Id. § 3.]

SEC. 148 c. [Same-Filing.]—A copy of the articles of incorporation constitution, and by-laws of every such association, shall be filed in the office of the auditor of public accounts, who shall with the state treasurer and attorney general, examine the same carefully and if they or any two of them shall find that they conform with the requirements of this act and contain a just and equitable plan for the management of the association's business, they or any two of them shall issue to such association a certificate of their approval of such constitution and by-laws; but if they or any two of them find their provisions to be unjust or inequitable or oppressive to any class of shareholders, they shall with-hold their approval. It shall not be lawful for any association hereafter organized within this state for the purposes set forth in section one, of this act, to transact any business except the execution of its articles of incorporation, the adoption of a constitution and by-laws, and the election of directors and officers, until it shall have procured the certificate of approval above provided for, nor shall any amendment of the articles of incorporation, constitution or by-laws of any such association become operative until a copy of the same shall have been filed and a certificate of approval obtained as above provided in regard to original articles of incorporation, constitution and by-laws. [Id. § 4.]

SEC. 148 d. [Loans-Evidences of indebtedness.]-No loan shall be made by such associations except to its own members, nor shall any loan be made to any member for any sum in excess of the par value of his stock, and the association shall have a lien on as many of the borrows' shares as shall equal at their face value the nominal amount of the loan; good and ample real estate securiety unincumbered, except by prior liens held by such association shall also be given by the borrower, provided, however, that the stock of such association may be received as securiety for a loan of the amount of the withdrawal value of such stock without other security. No evidence of indebtedness taken by such association for the return of any such loan shall be negotiable in form, and whatever be its form, every such evidence of indebtedness shall be non-negotiable in law, and no such debt or evidence of debt shall be assignable or transferrable in any manner so as to prevent the discharge thereof by payment made to the association. [Id. § 5.]

SEC. 148 e. [Powers.]-Such association may purchase, hold, lease, and convey real estate for the following purposes and no other: 1st. Such as it may need to occupy as a place of business. 2nd. Such as shall in good faith be conveyed to it in satisfaction of debts previously contracted in the ordinary course of business. 3rd. Such as it shall purchase at sales under judgments, decrees, or mortgages held by the association, or shall purchase in good faith to secure debts due to it. But no such association shall hold the title and possession of any real estate longer than three years, except for the first purpose above named. Nothing in this section shall be construed to forbid the mortgaging of real estate to such association. [Id. § 6.]

SEC. 148f. [Stockholders.]-Shares of stock in any such association may be subscribed for, held, transferred, surrendered, withdrawn and forfeited, and payments thereon received and receipted for, by any minor over the age of fourteen years, in the same manner and with the same binding effect as though such person were of full age, except that the said minor, or his estate shall not be bound on his subscription to stock except to the extent of payments actually made thereon. A trustee or guardian may acquire, hold, transfer and withdraw and receive all moneys due upon shares in such association for the use and account of any minor; but before he shall be permitted to withdraw, transfer or receive payment upon any shares so held, such trustee or guardian shall file with the county judge of the county where such association is located, a bond for twice the value of the shares withdrawn, transferred or money received, which bond shall be approved by said judge and shall be conditioned upon his faithfully accounting for the proceeds of the shares withdrawn, transferred or money received and the use thereof and paying the same to said minor at his or her majority. [Id. § 7.]

SEC. 148 g. [Taxation.]-Such associations shall not be subject to taxation on their capital stock, nor on their loans, advances or mortgages, but shares in said associations shall, for the purposes of taxation, be considered and held as credits, and members and holders of such shares shall list the same for taxation, and the same shall be taxed in such manner and subject to such deductions as may be provided by law for the taxation of other credits. The real estate of such association shall be subject to taxation in the same manner as provided by law in the case of other corporations and individuals. [Id. § 8.]

SEC. 148 h. [Interest-Usury.]-The fees, dues, fines, interest, premiums and

other payments of money made, contracted for, or required to be made, by any member of such association, by virtue of or in conformity with the provisions of its constitution and by-laws, though the same may aggregate a greater amount, taking into ac count all the terms and conditions of payment to and from such member, than is or may be allowed by the laws of this state to be taken or collected as interest on ordinary conracts for the payment of money, shall not make any such payment, or contract therefor, usurious, but all such contracts may be enforced, and such fees, dues, fines, interest, premiums and payments collected in the same manner as other debts on contracts not usurious. Provided, that the certificate of approval provided for in section 4 of this act, issued to such association, shall be conclusive evidence of such compliance with the requirements of this act to entitle it to the benefits of this section; Provided, further, that no association hereafter formed within this state, except such as hold such certificate of approval, shall be exempt from the operation of the usury law of this state. [Id. $ 9.]

SEC. 148 i. [Reports-Penalty.]—Every such association shall annually and at such other times as required by the auditor of public accounts, state treasurer and attorney general, or any two of them, file in the office of the auditor of public accounts, a statement verified by the oath of its president or secretary and approved by three of its directors in such form as may be prescribed by the auditor of public accounts, setting forth its actual financial condition and the amount of its assets and liabilities and furnishing such other information as to its affairs as the auditor of public accounts may require, and a copy of such annual statement shall be published in a newspaper of general circulation in the county where such association is located three consecutive times and due proof of such publication, by affidavit, shall be filed with the auditor of public accounts. Whenever the constitution of an association fixes a date for the close of its fiscal year, the annual report of such associations shall show its condition at such date; in all other cases such report shall show the condition of the association at the close of the calendar year and no other or further notice or statement of the amount of the existing debts of such corporation shall be required to be published or given. The auditor of public accounts, state treasurer and attorney general, or any two of them, shall have power to call for special reports from any such association, whenever in their judgment the same may be necessary or advisable. Any association failing to comply with the provisions of this section shall forfeit its charter rights. [Id. § 10.]

SEC. 148j. [False entries, reports-Penalty.]-Every person who shall wilfully or knowingly subscribe or make, or cause to be made, any false statement or false entries in any books of any association organized for the purposes set forth in section one (1) of this act, or exhibit false papers with the intent to deceive any person authorized to examine into the affairs of such association, or shall make, state or publish any false statement of the financial condition of such association, shall be deemed guilty of a felony; and upon conviction thereof, shall be fined not exceeding ten thousand ($10,000) dollars, and be imprisoned in the state penitentiary not less than one nor more than five years. [Id. § 11.]

SEC. 148 k. [Examination.]—The person or persons appointed under the laws of this state to make an examination of corporations, firms or individuals doing a banking business, shall make an examination and report of every association organized under

the laws of this state for the purposes named in section (1) of this act, as often as shall be deemed necessary and proper and at least once a year and the rights, powers, duties, privileges and compensation of such person or persons in connection with such examinations, shall be the same as is or may be provided by law with reference to examinations of banks and corporations, firms or individuals transacting a banking business; and such associations shall pay the same fees for such examinations as is or may be provided by law in case of the examination of banks. [Id. § 12.]

SEC. 148 l. [Same-Mismanagement.]—Whenever it shall appear to the Auditor of Public Accounts, State Treasurer, Attorney General or any two of them from any examination, or report provided for by this act, that any building, homestead or other association, organized under the laws of this state for the purposes set forth in section one (1) of this act, is conducting its business in an unsafe or unauthorized manner, or is jeopardizing the interests of its members, or that it is unsafe for such association to transact business, they shall communicate such facts to the attorney general, who shall thereupon apply to the supreme court or to the district court of the county where such association is located, or to a judge of either of said courts for the appointment of a receiver to take charge of and wind up the business of such association; and if such fact or facts be made to appear, it shall be sufficient to authorize the appointment of a receiver and the making of such orders and decrees in such cases as equity may require. [ Id. § 13.]

SEC. 148 m. [Unlawful use of name.]-it shall be unlawful for any corporation hereafter organized under the laws of this state to use the words "Loan and Building Association," or "Building and Loan Association," as a part of its corporate name unless it shall have complied substantially with the requirements of this act; and every such corporation using such words unlawfully as part of its corporate name, shall be fined at the discretion of the court in any sum not exceeding twenty-five ($25) dollars for each day it shall so unlawfully use such words as part of its corporate name. [Id. §14.]

SEC. 148 n. [Existing corporations.]-Any association now organized in conformity to existing laws of this state for the purposes set forth in section one (1) of this act, which shall voluntarily comply with all the requirements of this act, shall be entitled to all the benefits and privileges herein granted; any such association now organized shall be required to comply with the provisions of this act in the following particulars: It shall within ninety days after this act has become a law, file with the auditor of public accounts, a certified copy of its articles of incorporation, constitutio by-laws, shall make and publish reports in full compliance with section ten (10) hereof, shall be subject to examination in all respects as provided in section twelve (12) hereof, and its affairs may be wound up in the manner provided in section thirteen (13) of this act, and before any amendment to either its articles of incorporation, constitution or bylaws, hereafter made, shall become operative, a copy of such amendment shall be filed with the auditor of public accounts; and the auditor together with the state treasurer and attorney general shall examine the same and if they or any two of them shall find that such amendment does not introduce any unjust or inequitable feature or provision, they or any two of them shall issue their certificate of approval and such amendment shall become valid. But if they or any two of them withhold such certificate, such amendment shall be of no effect. [Id. § 15.]