CHAP. 399.—An ACT to incorporate the Big-Stone Gap building
and loan association.

Approved February 28, 1890.

1. Be it emacted by the general assembly of Virginia,
That J. F. Bullitt, junior, J. W. Fox, R. A. Ayers, H. C. Mc-
Dowell, junior, H. H. Bullitt, W. M. McElwee, Charles E.
Bibbs, their associates and successors, are hereby incor-
porated and constituted a body politic and corporate, under
and by the name of the Big-Stone Gap building and loan
association, and by that name shal] be known in law and
shal] have perpetual succession, and have power to sue and
be sued, plead and be impleaded, defend and be defended
in all courts. whether in law or equity, and may make and
have a common seal and alter or renew the same at plea-
sure; 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 authority, the man-
agement 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 dollara, and shall be divided into shares
of the ultimate value of two hundred dollars each. The
shares may be issued in quarterly, half-yearly, or yearly
series, in such amounts and at such times as the share-
holders 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 compensation
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 shall 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the ultimate value of two hundred dollars, or ig withdrawn,
cancelled 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 corpo-
ration for that purpose. Upon such withdrawal the share-
holder’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 propor-
tionate part of any unadjusted loss, together with such
proportion 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 dis-
cretion, 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 expiration of five years after the date of issue, an ex-
cess 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 hundred 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, re-
tire such other unpledged shares as they consider the best
interests of the company to require: provided, that when-
ever, 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 un-
pledged shares. Shares may be issued in the name of a
minor, and if so issued may, at the discretion of the
directors, be withdrawn in manner as provided in section
two of this act by such minor, the 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 such
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 representative. ,

6. When each unpledged share of a given series reaches
the value of two hundred dollars, all payments of dues
thereon shall cease, and the holder thereof shall be paid
out of the funds of the corporation two hundred dollars
thereof, with interest at the rate of six per centum a year
from the time of such maturity to the time 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 consent of the directors: pro-
vided, 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 pre-
miums 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 various shares and series of said capital
as hereinafter provided.

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 repaid;
and when said ultimate value is reached, said shares and
loan shall be declared cancelled and satisfied, and the bal-
ance, if any; due upon the share shall be paid to the mem-
ber.

10. For every loan made a note secured by first mort-
gage of real estate shall be 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 ar-
rears, untiY said shares reach the ultimate value of two
hundred dollars each, or said loan is otherwise cancelled or
discharged: provided, that the shares, without other
security, may,in the discretion of the directors, be pledged
as security for loans to an amount not exceeding their
value, as adjusted at the last adjustment and valuation of
shares before the time of the loan. If the borrower neg-
lects to offer security satisfactory to the directors within
the time prescribed by the by-laws, his right to the loan
shall be forfeited 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 appropriated for such loan may be reloaned 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 thé withdrawing value of his shares pledged and
transferred as security, and the balance shall be received
by the corporation in full satisfaction and discharge 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 meetings next suc-
ceeding such settlement, and provided that a borrower
desiring to retain his shares and membership may at his
option repay his loan without claiming credit for said
shares; whereupon said shares shall be retransferred to
him, and shall be free from any claim by reason of said
cancelled 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 repaid 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
shareholder 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 shall 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, shal] be entitled, upon thirty days’ notice, to
receive the valance 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 parti-
cipate jn 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,
premium, 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
debited 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 en-
forced 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 num-
ber of shares held by him, and the number opr designa-
tion of the series or issue to which said shares belong, and
the date of the issue of such series. All moneys so re-
ceived shall be originally entered by the proper officer in
a book to be called the cash-book, to be provided by the
corporation 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 may be. Each payment shall
be classified and entered into a column devoted to its kind.
Said cash-book shall be closed after the termination of
each stated meeting, and shall be an exhibition of the
receipts of all moneys paid at said meeting. All pay-
ments made by the corporation for any purpose whatsoever
shall be by order, check, or draft upon the treasurer, signed
by the president and secretary, and endorsed by the per-
sons 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 cor-
poration in the mamner 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 exist-
ing at the times of such distribution in proportion to their
value at the 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 reserveias a guarantee fund a sum not Jess than
one nor more than five per centum of the net profits accru-
ing 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 busi-
ness of the corporation from depreciation of its securities
or otherwise.

16. Any such corporation may purchase at any sale, pub-
lic 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 acquisition 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 and debts due and to become due the com-
monwealth by the said company shall be paid in lawful
money of the United states and not in coupons.

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