Chap. 238.—An ACT to amend and re-enact section 6 of an act approved
the first day of March, 1886, entitled an act to incorporate the Lynch-
burg building and loan company.

Approved February 24, 1888.

1. Be it enacted by the general assembly of Virginia, That
the sixth section of the act approved on the first day of
March, eighteen hundred and eighty-six, entitled an act to
incorporate the Lynchburg perpetual building and loan com-
pany, be amended and re-enacted so as to read as follows:

§6. The corporation shall have power to make loans to |
members of the corporation or others, and receive as part of.
the security for loans to members, their shares, either by way
of redemption or hypothecation, as well as to take deeds of
trust or mortgages, or any real, personal or collateral security,
conditioned for the repayment of the loan or advance and
the interest on the amount of said loan until the last pay-
ment is made, in such instalments as may be agreed upon, and
for the faithful performance by the parties thereto of all cove-
nants, stipulations and agreements: provided however, that
in case of such hypothecation of stock, no greater sum of
money shall be drawn out by any member than has already
been paid in by him on his shares at the time of such hy-
pothecation; the property so mortgaged or oft plc ig as
aforesaid to the corporation, to be kept clear of taxes by the
mortgagor. In the case of a redemption, the shares redeemed
shall be cancelled, but the members so having their shares
redeemed, shall in no wise thereby be released from their ob-
ligations to perform all the duties they may have assumed to
the corporation, and shall, for failure, be subject to hke fines
and penalties as though their shares of stock had not been
redeemed. It shall and may be lawful for the said corpora-
tion to receive in advance the interest on loans, as well as to
charge and deduct, upon the redemption of shares, such
premium for the privilege of having them redeemed, as may,
from time to time, be fixed by the board or agreed upon be-
tween the corporation and the parties so having their shares
redeemed, or to add to the principal sum for which said shares
are redeemed, the interest thereon for the period during which
the instalments extend, the whole to be paid in such instal-
ments as may be agreed upon.
2. This act shall be in force from its passage.