CHAP. 152.—An ACT to incorporate the Bristol building and

; loan association.

Approved February 3, 1890.

1. Beit enacted by the general assembly of Virginia,
That H. W. Bates, J. H. Wood, E. 8. Kendrick, Charles
Slack, M. B. Wood, J. R. Dickey, John A. Smith, C.
G. A. Blackmore, H. E. McCoy, J. H. Caldwell, W. C.
Harrington, their associates and successors, are hereby
incorporated and constituted a body politic and corporate
under and by the name of the Bristol building and loan
association, and by that name shall be known in law, and
shall have perpetual succession, and have power to sue
and be sued, plead and be impleaded, defend and be de-
fended in all courts, whether in law or equity, and may
make and have a common seal and alter or renew the
same at pleasure; and shall have, enjoy, and exercise all
the rights, powers, and privileges pertaining to corporate
bodies and necessary for the purpose of this act; and
make by-laws, rules, and regulations consistent with the
laws of the state for the government of all under its au-
thority, the management of its estate and properties and
the due and orderly conduct of its affairs.

2. The capital to be accumulated shall not exceed five
hundred thousand dollars, and shall be divided into shares
of the ultimate value of two hundred dollars ($200) each.
The shares may be issued in quarterly, half-yearly, or
yearly series in such amounts and at such times as the
shareholders may determine. No person shall hold more
than twenty-five shares in the capital of this company.
No shares of a prior series shall be issued after the issue
of a new series.

3. Hereafter the number, title, duties, and compensa-
tion of the officers of the company, their terms of office,
the time and manner of their election, and the time of
each regular meeting of the officers and shareholders shall
be determined by the by-laws. All officers shal] continue
in office until their successors are duly elected.

4. The officers shall hold monthly meetings. At or
before each of these meetings every member shall pay to
the corporation, as a payment to its capital, one dollar
dues upon each share held by him until the share reaches
the ultimate value of two hundred dollars, or is with-
drawn, canceled, or forfeited. Payment of dues on each
series shall commence from its issue.

5. A shareholder may withdraw his unpledged shares
at any time by giving thirty days’ notice of his intention
so to do, written in a book held and provided by the cor-
poration for that purpose. Upon such withdrawal the
shareholder’s account shall be settled as follows: From
the amount then standing to the credit of the share to be |
withdrawn there shall be deducted all fines, a proportionate |
part of any unadjusted loss, together with such propor-
tion of the profits previously credited to the shares as the
by-laws may provide, and such shareholders shall be paid
the balance: provided, that at no time shall more than
one-half of the funds in the treasury be applicable to the |
demands of withdrawing shareholders without the consent
of the directors. The directors may, at their discretion,
under rules made by them, retire the unpledged shares of
any series at any time after four years from the date of
their issue by enforcing the withdrawal of the same; but
whenever there shall remain in any series, at the expira-
tion of five years after the date of issue, in excess above
one hundred unpledged shares, then it shall be the duty
of the directors to retire annually twenty-five per centum
of such excess existing at said expiration of five years
after the date of its issue, so that not more than one hun-
dred unpledged shares shall remain in such series at the
expiration of nine years from the date of its issue; and
thereafter the directors may, in their discretion, retire
such unpledged shares as they consider the best interests:
of the company to require: provided, that whenever, under
the provisions of this section, the withdrawal of shares is
to be enforced the shares to be retired shall be determined
by lot, and the holders thereof shall be paid the full value
of their shares, less all fines and a proportionate part of
any unadjusted loss: provided, also, that shares pledged
for share loans shall be treated as unpledged shares.
Shares may be issued in the name of a minor, and if so
issued may, at the discretion of the directors, be with-
drawn in manner as provided in section two of this act,
by such minor, parent, or guardian of such minor, and in
either case payments made on such withdrawals of shares
shall be valid. When a share or shares are held by any
one in trust for another, the name and residence of the
person for whom such share or shares are held shall be
disclosed; and the account shall be kept in the name of
such holder as trustee for such person, and if no other
notice of the existence and terms of trust has been given
in writing to the corporation, in the event of the death of
the trustee, such shares may be withdrawn by the person
for whom such deposit was made or by his legal represent-
atives.

6. When each unpledged share of a given series reaches
the value of two hundred dollars ($200), all payments of
dues thereon shall] cease, and the holder thereof shall be
paid out of the funds of the corporation two hundred dol-
lars ($200) thereof, with interest at the rate of six per
centum a year from the time of such maturity to the time
ACTS OF ASSEMBLY.

of payment; provided, that at no time shall more than
one-half of the funds in the treasury be applicable to
the payment of such matured shares without the con-
sent of the directors; provided, further, that when any
series of shares, either pledged or unpledged, reaches
maturity between the dates of adjustment of profits, or
whenever shares are retired between such dates, the holders
of such shares shall, in addition to the value thereof, be
entitled to interest at the rate of six per centum per
annum for all full months from the date of the preceding
adjustment, and that before paying matured shares all
arrears and fines shall be deducted.

7. The moneys accumulated after due allowance made
for all necessary and proper expenses, and for the with-
drawal of shares, shall, at each monthly meeting, be offered
to the members according to the premiums bid by them
for priority of right toa loan. Each member whose bid
is accepted shall be entitled, upon giving proper security,
to receive a loan of two hundred dollars for each share
held by him, or such fractional part of two hundred dol-
lars, as the by-laws may allow.

8. It shall be lawful for said company to charge premi-
ums for loans which shall consist of a percentage charged
on the amount lent in addition to interest, and shall be
deemed to be a consideration paid by the borrower for the
present use and possession of the future or ultimate value
of his shares, and shall, together with interest and fines,
be received by the corporation as a profit on the capital
invested in the loan, and shall be distributed to the vari-
ous shares and series of said capital as hereinafter pro-
vided.

9. A borrowing member, for each share borrowed upon,
shall, in addition to his dues and monthly premium, pay
monthly interest on his loan at the rate of six per centum
per annum until his shares reach the ultimate value of
two hundred dollars each, or the loan has been re-paid;
and when said ultimate value is reached, said shares and
loan shall be declared canceled and satisfied and the bal-
ance, if any, due upon the shares, shall be paid to the
mem ber.

10. For every loan made a note secured by first mort-
gage of real estate shall he given, accompanied by a trans-
fer and pledge of the shares of the borrower. The shares
so pledged shall be held by the corporation as collateral
security for the performance of the conditions of said
note and mortgage. Said note and mortgage shall recite
the number of shares pledged and the amount of money
advanced thereon, and shall be conditioned for the pay-
ment, at the stated meetings of the corporation, of the
monthly dues on said shares and the interest and premium
upon the loan, together with all fines on payments in arrears
until said shares reach the ultimate value of two hundred
dollars each, or said loan is otherwise canceled or dis-
charged; provided, that the shares, without other security,
may, in the discretion of .the directors, be pledged as secu-
rity for loans to an amount not exceeding their value as
adjusted at the last adjustment and valuation of shares
before the time of loan. If the borrower neglects to offer
security satisfactory to the directors within the time pre-
scribed by the by-laws, his right to the loan shall be for-
feited, and he shall be charged with one month’s interest
and one month’s premium at the rate bid by him, together
with all expenses, if any, incurred; and the money appro-
priated for such loan may be re-loaned at the next or any
subsequent meeting.

11. A borrower may repay a loan at any time upon appli-
cation to the corporation, whereupon, on settlement of his
account, he shall be charged with the full amount of the
original loan, together with all monthly instalments of
interest, premium, and fines in arrears, and shall be given
credit for the withdrawing value of his shares pledged
and transferred as security, and the balance shall be
received by the corporation in full satisfaction and dis-
charge of said loan; provided, that all settlements made
at periods intervening between stated meetings of the
directors shall be made as of the date of the stated meet-
ings next succeeding such settlement; and, provided, that
a borrower desiring to retain his shares and membership
may at his option re-pay his loan without claiming credit
for said shares, whereupon said shares shall be re-trans-
ferred to him and shall be free from any claim by reason
of said canceled.loan. Partial payment of loans on real
estate may be received by the company in sums of fifty
dollars or any multiple thereof; and for each two hundred
dollars so re-paid one share of stock shall be released
from pledge.

12. Shareholders who make default in the payment of
their monthly dues, interest and premiums, shall be
charged a sum not exceeding two per centum a month on
each dollar in arrears. No fines shall be charged after the
expiration of six months from the first lapse in any such
payment nor upon a fine in arrears. The shares of a share-
holder who continues in arrears more than six months
shall, at the option of the directors, if the shareholder
fails to pay the arrears within thirty days after notice, be
declared forfeited, and the withdrawing value of the
shares at the time of the first default shall be ascertained
and, after deducting all fines and other legal charges, the
balance remaining sliall be transferred to an account, to
be designated the “ forfeited share account,” to the credit
of the defaulting shareholder. Said shareholder, if not a
borrower, shall be entitled, upon thirty days’ notice, to
receive the balance so transferred, without interest from
the time of the transfer, in the order of his turn, out of
the funds appropriated to the payment of withdrawals.
All shares so forfeited or transferred shall cease to partici-
pate in any profits of the corporation accruing after the
last adjustment and valuation of shares before said first
default.

13. If a borrowing shareholder is in arrears for dues,
premiums, or fines for more than six months the directors
may, at their discretion, declare the shares forfeited after
one month’s notice, if the arrears continue unpaid. The
account of such borrowing shareholder shall then be debi-
ted with the arrears of interest, “ premium,” and fines of
date of forfeiture, and the shares shall be credited upon
the loan at their withdrawing value. The balance of the
account may, and after six months shall, be enforced
against the security and be recovered as secured debts are
recovered at law.

14. The general accounts of the company shall be kept
by double entry. All moneys received by the corporation
from each shareholder shall be receipted for by persons
designated by the directors, in a pass-book provided by the
corporation for the use of and to be held by the share-
holder; the said pass-book shall be plainly marked with
the name and residence of the holder thereof, the number
of shares held by him, and the number or designation of
the series or issue to which said shares belong, and the
date of the issue of such series. All moneys so received
shall be originally entered by the proper officer in a book
to be called the cash-book, to be provided by the corpora-
tion for the purpose, and the entries therein shall be so
made as to show the name of the payer, the number of
shares, the number or designation of the series or issues
of the particular share or shares so entered, together with
the amount of dues, interest, premium, and fines paid
thereon, as the case my be. Each payment shall be clas-
sified and entered into a column devoted to its kind.
Said cash-book shal] be closed after the termination of
each stated meeting, and shall be an exhibition of the
receipts of all the moneys paid at said meeting. All pay-
ments made by the corporation for any purpose whatso-
ever shall be by order, check, or draft upon the treasurer,
signed by the president and secretary, and endorsed by
the persons in whose favor the same are drawn. The
name of payee, the amount paid, and the purpose, object,
or thing for which the payment is made, together with its
date, shall be entered on the margin of said order, check,
or draft. The treasurer shall dispose of and secure the
safe-keeping of all moneys, securities, and property of the
corporation in the manner designated by the by-laws, and
the treasurer and secretary shall give such security for
the faithful performance of their respective duties as the
by-laws may direct.

15. The profits and losses may be distributed annually,
semi-annually, or quarterly to the shares then existing,
but shall be distributed at least once in each year and
whenever a new series of shares is to be issued. Profits and
losses shall be distributed to the various shares existing
at the time of such distribution in proportion to their
value at that time, and shall be computed upon the basis
of a single share fully paid to the date of distribution.
Losses shall be apportioned immediately after their occur-
rence. At each periodical distribution of profits the direc-
tors shall reserve as a guaranty fund a sum not less than
one nor more than five per centum of the net profits accruing
since the next preceding adjustment, until such fund
amounts to five per centum of the dues capital, which fund
shall thereafter be maintained and held, and said fund shall
be at all times available to meet losses in the business of
the corporation from depreciation of the securities or
otherwise.

16. Any such corporation may purchase at any sale,
public or private, any real estate upon which it may have
a mortgage, judgment, lien, or other incumbrance, or in
which it may have an interest; and may sell, convey,
lease or mortgage at pleasure the real estate so purchased
to any person or persons whatsoever. All real estate so
acquired shall be sold within five years from the acquisi-
tion of the title thereto.

-17. The persons first named in this act, or such of them
as shall accept the provisions thereof, shall constitute the
first board of directors of the said company, and shall con-
tinue in office until the first meeting of the shareholders
thereof.

18. All taxes, dues, and demands due the state shall be
paid in lawful money of the United States and not in cou-

ns.

19. This act shall be in force from its passage.