CHAP. 77.—An ACT to incorporate the Continental savings and
loan company. ,

Approved January 22, 1892.

1. Be it enacted by the general assembly of Virginia,
That Bird M. Robinson, H. E. McCoy, A. D. Reynolds, E.
§. Kendrick, James H. Robinson, John C. Anderson, C. LL.
Sevier, M. T. DeVault, H. E. Jones, their associates and
successors, are hereby incorporated and constituted a body
politic and corporate under and by the name of the Con-
tinental savings and loan company, and by that name
shall be known in Jaw; and shall have perpetual succes-
sion, 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 and 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 pur-
poses of this act; and make by-laws, rules, and regula-
tions, consistent with the laws of the state, for the govern-
ment of all under its authority, 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 twen-
ty-five million dollars, and shall be divided into shares of
the ultimate value of fifty dollars per share. The shares
may be issued in monthly series, as the board of directors
may determine. No person shall hold more than two hun-
dred shares of the capital stock.

3. The company may, by by-laws, fix the number, title,
and duties of its officers: their terms of office, the time
and manner of their election, and the time for the annual
meeting of their stockholders, and the monthly meetings
of the board of directors.

4. The company may, by by-laws, make regulations con-
cerning the subscription for or transfer of stock; the time
required for payment thereof by the subscribers for stock ;
the amount to be called at any one time: and in case of
failure of any stockholder to pay the amount subscribed
by him at the time, and in the amounts thus called, a
right of action shall exist in the company to sue said de-
faulting stockholders for same.

5. The company may, by by-laws, provide when stock
may be withdrawn, and upon what terms: provided that
at no time shall more than one-half of the funds in the
treasury be subject to the demands of withdrawing stock-
holders, without the consent of the board of directors;
fix the amount of fines to be paid by any defaulting stock-
holder, and fix the time when stock will be forfeited to
the company by defaulting stockholders.

6. The board of directors, which may consist of five or
more members, at the option of the corporation, to be
elected either in person or by proxy, by a majority of the
votes cast, each share representing one vote, shall keep a
full and complete record of all their proceedings, and an
annual statement of receipts and disbursements shall be
copied on the minutes, subject at all times, to the inspec-
tion of any stockholder. The books of the corporation
shall show the original or subsequent stockholders, their
respective interests, the amount which has been paid and
the shares subscribed; the transfer of stock, by and to
whom made; also other transactions in which it is pre-
sumed a stockholder or creditor may have an interest.

7. The board of directors shall have power to appoint
such subordinate officers and agents, in addition to presi-
dent, vice-president, general manager, secretary, treasurer
and attorney, and establish such branch offices or agencies
as the business of the company may require, designate
the name of the office, and fix the compensation of the
officers.

8. The moneys accumulated in the loan fund shall be
granted in loans to the members at least once each month,
upon a premium bid by the applying member, upon either
verbal or written bid. Each member whose bid is ac-
cepted shall be entitled, upon giving proper security, to
receive a loan of fifty dollars per share, for each share
held by them, under such conditions as the by-laws may
provide.

9. It shall be lawful for such company to charge pre-
miums for loans, which shall consist of a percentage
charged on the amount loaned, 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 ulti-
mate 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 of stock in good standing.

10. A borrowing member, for each share borrowed upon,
shall, in addition to his dues and monthly premium, pay
monthly interest on bis loan at the rate of six per centum
per annum, until his shares reach the ultimate value of
fifty 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 balance, if any,
due upon the shares shall be paid to the member.

11. For every loan made, a non-negotiable note, secured
by first mortgage on real estate, shall be given, accompa-
nied by a transfer and pledge of the shares of the bor-
rower. The shares so pledged shall be held by the corpo-
ration 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 con-
ditioned for the payment on or before the last day in each
month, the monthly dues on said shares and the interest
and premium upon the Joan, together with all fines on pay-
ments in arrears, until said shares reach the ultimate value
of fifty dollars per share, or said loan is otherwise can-
celled or discharged: provided that shares without other
security may, in the discretion of the directors, be placed as
security for loans to an amount not exceeding eighty per
centum of their withdrawal value at date of making loan.
If the borrower neglects to offer security satisfactory to
the directors within the time prescribed by the by-laws,
or offers security to which the title is not perfect, 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.

12. A borrower may repay a loan at any time upon ap-
plication to the corporation, whereupon, upon settlement
of his account, he shall be charged with the full amount
of the original loan, together with all monthly instal-
ments, all interest, premium, and fines in arrears, and shall
be given credit of the withdrawal value of his shares
pledged, and transferred as security, and the balance to be
received by the corporation in full satisfaction and dis-
charge of said loan: provided that a borrower desiring to
retain his membership and his shares, may, at his option,
repay his loan in full without claiming credit for amount
paid on shares; whereupon said shares shall be retrans-
ferred to him, and shall be free from any claim by the
reason of gaid cancelled loan.

.13. The shares of a stockholder six months in arrears
shall, at the option of the board of directors, if the share-
holder fails to pay the arrears within ten days after no-
tice, be declared forfeited, the stock cancelled, and six
months’ dues and fines appropriated by said company, the
balance, if any, shall be paid over to the stockholder. In
case of non-payment of instalments or interest by bor-
rowing members for the period of six months, payment
of principal and interest, without deducting the premium
paid, or interest thereon, may be enforced by proceeding
on their securities according to the terms of the contract
under which the same are pledged.

14. The company shall have power to establish a savings
department, in which small deposits may be made by in-
dividuals or corporations, upon which the company may pay
interest; sell paid-up or prepaid stock, and borrow money
on faith of the corporate property.

15. The treasurer shall dispose of and secure the safe-
keeping of all moneys, securities, and property of the cor-
poration 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.

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 encumbrance, orin 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
continue in office until the first meeting of the sharehold-
ers thereof.

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

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