Chap. 516.—An ACT to define the power and limitations of building and loan
associations.

Approved March 1, 1894.

1. Be it enacted by the general assembly of Virginia, That any
number of persons, not less than five, may hereafter form a building
and loan association for the purpose of encouraging industry, fru-
gality and home building and saving among its members, upon being
incorporated as provided in section eleven hundred and forty-five,
code of Virginia. Building and loan associations formed under this
chapter, or heretofore chartered or incorporated under said section,
or by any general or special act, or formed or incorporated under the
laws of any other state, which have complied with the laws of this
state, shall have the right to lend to the stockholders or to other
persons the moneys 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 stockholders or others for the
benefit of their stockholders. Such association may acquire, hold,
convey and encumber all or any property, real or personal, taken by
them as security or otherwise acquired by them in the due course of
business; and may also secure the payment of loans and the per-
formance of the conditions upon which loans are made, and the pay-
ment of the purchase money for any property sold by taking personal
security, or by a mortgage or deed of trust upon real or personal
property and by a transfer and pledge of its stock. Such associa-
tions shal! have the power to establish and maintain, by their ofh-
cers and agents, branch offices for the transaction of their business
at as many places as may be desirable.
2. Loans and premiums.—It shall be lawful for every such associa-
tion or company to fix by its by-laws the premiums or bonus at
which it will dispose of the money in its treasury to its stockholders,
and award or lend to any member or stockholder the value of any
shares held by him, 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 instalments, or
in default of application for said money by stockholders it shall be
lawful for such companies or associations to lend the same to other
persons on such terms as may be agreed upon and in such manner
as may be fixed by the hy-laws.

3. Dues, interest and fines.—Every association may levy, assess
and collect from its stockholders 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 duesor for failure tocomply with or perform
any other obligation or duty to the association. ‘The amount of the
respective fines shall be fixed by the by-laws, and they shall be im-
posed under regulations to be made by the by-laws.

4. Payment of loans, withdrawal and default of stockholders.—A
borrower from such associations may repay the loan at any time;
but in case of the repayment thereof before the maturity of the loan
the borrower shall pay such 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. Stockholders withdrawing voluntarily shall
receive such proportion of the profits of the association or such rate
of interest as may be prescribed by the by-laws.

0. By-laws and articles of government.—Every such association
shall adopt by-laws for its government and the management of its
business not inconsistent with this act.

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