Chap. 10.—An ACT to amend and re-enact section 6 of the Virginia building and
loan association act, approved March 5, 1932. [S. B. 9]

Approved September 2, 1933

1. Be it enacted by the General Assembly of Virginia, That section
six of the Virginia building and loan association act, approved March
fifth, nineteen hundred and thirty-two, be amended and re-enacted so
as to read as follows:

Section 6. Building and loan association; how incorporated; by
what laws governed; branches, shares; dues, interest premiums and
fines——Any number of persons, not less than five, may hereafter form
a building and loan association for the purpose of encouraging in-
dustry, frugality, saving and home ownership among its members, upon
being incorporated as provided in chapter one hundred and forty-eight
of the Code of Virginia, nineteen hundred and nineteen. Building and
loan associations formed under said chapter, or heretofore char-
tered or incorporated under said chapter, or by general or special
act, shall have the right to lend to their shareholders or to other
persons the money accumulated from time to time, and the right to
purchase land or erect houses, and to sell, convey, lease or
mortgage the same at their pleasure to their shareholders or others for
the benefit of their shareholders. Such associations may acquire, hold,
convey, and incumber all or any property, real or personal, acquired by
them in the due course of business; and may also secure the payment
of loans and the performance of the conditions upon which loans are
made, and the payment of the purchase money for any property sold by
1933] ACTS OF ASSEMBLY

taking personal security, or by mortgage or deed of trust upon real or
personal property and by a transfer and pledge of its shares; and may
accept bonds of the Home Owners Loan Corporation, a corporation
created pursuant to an act of the Congress of the United States, ap-
proved June thirteenth, nineteen hundred and thirty-three, in exchange
for home mortgages and other obligations and liens secured by real
estate which are subject to exchange under the provisions of said act of
Congress. Such associations shall have the power to establish and
maintain by their officers and agents, branch offices for the transaction
of their business at such places as may be desirable; but no building
and loan association shall establish more than one office nor maintain
branches other than those already established, except with the approval
of the State Corporation Commission, previously had in writing.

It shall be lawful for every such association to fix by its by-laws the
premiums or bonus at which it will dispose ot the money in its treasury
to its shareholders, and award or lend to any member or shareholder
the par value of any shares standing in its name, less such premium or
bonus, and the mode of making the disposal, loan or award shall be
fixed by the by-laws, and to charge and receive said premium in advance,
or in installments, or in default of application for said money by
shareholders, it shall be lawful for such companies or associations to
lend money to other persons on such terms as may be agreed upon, and
in such manner as may be fixed by the by-laws; provided, that where
the company lends its funds, taking as security any order or assignment
of the wages of the debtor, tangible personal property, or any security
except real estate or the shares of stock or other evidences of indebted-
ness of the said association, upon which there has been actually paid
a sum equal to or greater than the amount of said loan, the laws of
this State and the ordinances of the cities and towns thereof, in refer-
ence to the conduct of the business of lending money and the rates to be
charged therefor, shall apply to building and loan associations as to other
persons or corporations.

Every building and loan association doing business in this State shall
be authorized to issue as many series or classes and kinds of shares and
at such stated periods as may be provided for in its charter and by-laws.

Unpledged shares may be issued to be paid tor in a single lump
sum (these being of the class of shares usually designated as fully paid,
paid up or prepaid shares), or by installment payments upon one or
more plans of installments. These shares, either or both, may be issued
to participate in the earnings of the association upon the same basis as
the pledged shares; or, if desired, the fully paid, paid up or prepaid
shares, and the installment shares, either or both, or classes of either or
both, may be issued to bear a limited rate or rates of earnings or divi-
dends, but such limited rate shall not exceed the legal interest rate of this
State: and the issue of such shares shall not, by reason of the different
dividend rates, disqualify the association as a mutual association doing
business on a purely mutual plan. From and after the passage of this
act, all prepaid stock, issued by any building and loan association now
incorporated or hereafter to be incorporated, shall be issued only by
issuing to the subscriber, in the manner and form prescribed by this
act, a numbered certificate of stock. Each such certificate of stock
shall have the corporate title of the association printed thereon and shall
also bear the date of issue, the name of the person, or persons, firm or
corporation in whose name the stock is issued, the number of shares and
the par value thereof. Upon the withdrawal of such prepaid stock, the
certificate shall be surrendered by the holder thereof to the association,
and shall be preserved indefinitely; and to have the transfer thereof
made on the books of the association to a purchaser, the said certificate
of stock duly assigned shall likewise be surrendered to the association
and preserved indefinitely, the same as hereinbefore provided in case of
withdrawal.

A borrower from such association may repay the loan at any time;
but in case of the repayment thereof before the maturity of the loan the
borrower shall pay an amount for the privilege as may have been agreed
upon or is provided for in the by-laws; and there shall be refunded to
such borrower, in case the premium shall have been deducted in advance,
such proportion of the premium bid as the by-laws may determine.

Every association may levy, assess and collect from its shareholders
dues or payments upon every share of its stock, the amount, time, and
manner of payment of the same to be fixed by the by-laws, and the said
stock may be paid off and retired as the by-laws shall direct, and may
levy, assess, and collect from members to whom loans have been made
interest upon the par value of the shares redeemed; and may levy,
assess, and collect fines for the non-payment of dues or for failure to
comply with or perform any other obligation to the association. The
amount of the respective fines shall be fixed by the by-laws, and they
may be imposed under regulations to be made by the by-laws.

The provisions of chapter one hundred and forty-seven, of the Code
of Virginia, nineteen hundred and nineteen, and of all amendments
thereto, shall apply to all building and loan associations incorporated
under the laws of Virginia, in all cases where not inconsistent with the
provisions of this act.

2. An emergency existing, this act shall be in force from its passage.