Chap. 1388.—An ACT to amend the 2d, 3d, 4th, 8th, 13th and 17th sec-
tions of an act passed May 29th, 1852, entitled an act to provide for
the incorporation of Building Fund Associations.

Passed January 31, 1867.

1. Be it enacted by the general assembly, That the second,
third, fourth, eighth, thirteenth and seventeenth sections of
the act passed May twenty-ninth, eighteen hundred and fifty-
two, entitled an act to provide for the incorporation of build-
ing fund associations, be and the same are hereby amended
and re-enacted so as to read as follows: ;

Ҥ2. Persons who wish to form such a company, shall,
severally, sign articles of association, which shall specially
state the name of the association, the place in which its busi-
ness is to be transacted, the number of shares.of stock, which
shall not exceed two thousand, and the ultimate or par value
of each share of stock, which shall not exceed two hundred
dollars; and shall also contain the constitution, rules, regula-
tions and by-laws of the association, which shall not be in-
consistent with the laws and constitution of this state or of
the United States. |

“§3. The officers of every ‘such association shall be a pre-
sident, six directors, a treasurer, a secretary and fhree trus-
tees. One: person may be competent to act as treasurer and
secretary, and the secretary shall be ex officio a member of
the board of directors. The president and directors shall
constitute a board to manage the affairs of the association,
with such powers as the articles shall prescribe; the duties
of the treasurer and secretary shall be prescribed by the by-
laws; the trustees shall hold the title, for the association, of
all its real estate, and of all real estate conveyed to secure
debts due the association, and shall convey and release the
same by order of the board as may be required by the arti-
cles. The board shall take from all officers and trustees of
the company bonds with security, payable to the association,
by its corporate name, in such penalty as they may require:
provided, nevertheless, that nothing in this act shall be so
construed as to require the board to demand bonds and secu-
rity of themselves. .

Ҥ4. A trie copy of such articles as are mentioned in the
second section, signed by the officers and trustees of the asso-
ciation, together with a statement showing the time of its
organization, and that the persons whose names are appended
to the articles are the officers and trustees of such associa-
tion, verified by the oath or affirmation of the president and
secretary, shall be recorded in the court of the county or
corporation in which such association shall transact its busi-
ness. And, thereupon, the persons who have subscribed the
articles of association, and such other persons as shall be-
come members thereof, and their successors, shall be a body
corporate, by the name specified in such articles; and shall,
in all respects, be boynd and governed by such articles of
association, and any amendments thereto made in conformity
to the same. And such association shall be capable in law of
purchasing, holding and conveying any real and personal

estate which may be necessary and suitable for the business
and purposes set forth in the articles of association; but such
company shall not, at any one time, hold real estate exceed-
ing in quantity five acres, except such as has been received
in satisfaction of debts; and the clear yearly value or income
of all real estate owned by such company, (other than that
conveyed to its trustees as security for advances or loans),
shall not exceed two thousand dollars.

Ҥ 8. It shall be lawful for any such association to redeem
the shares held by the stockholders respectively,.and upon
such terms and under such regulations as may be prescribed
in the articles; but such association shall, in: no case, receive
or demand from any stockholder interest exceeding the rate
of six per centum per annum upon the sum actually paid by
such association to such stockholder for the shares so re-
deemed and bought in. Nothing herein contained, however,
shall be construed to prevent the association from receiving
and demanding from any stockholder, whose shares have
been redeemed, such regular payments on stock as may be re-
quired by the articles, and any fines that may be imposed on
him, in accordance with such articles.

«§ 13. It ‘shall not be lawful for ‘any snoh association to
loan to one of its members a sum exceeding the par or ulti-
mate value of the shares subserfbed for by such member ;
and no member shall own at any one time more than fifty
shares of stock.

“917. This act shall be in force from its passage, and all
acts, or parts of acts, inconsistent with the provisions of this
act, are hereby repealed.”