CHAP. 312.—An ACT to incorporate the Lynchburg Perpetual Build-
ing and Loan Company. :
Approved March 1, 1886.

1. Be it enacted by the general assembly of Virginia, That
Geo. P. Watkins, Geo. D. Witt, Jas. R. Gilliam, E. C. Ham-
ner, D. C. Jackson, W. L. Moorman, Thos. N. Larkin, Hy.
May, W. H. H. Harris, J. L. Thompson, R. T. Aunspaugh,
Jno. H. Kinnier, Sam’! Tyree, and W. McC. Waugh, together
with such other persons as may hereafter be associaied with
them, be and they are hereby created and made a body politic
and corporate, by the name of the Lynchburg Perpetual Build-
ing and Loan company, and as such shall be capable in law to
purchase, hold and dispose of property, both real and personal;
to make loans on real estate, personal or collateral security; to
receive deposits and savings; and for such other objects as may
promote the interest of the company, and for the purpose of
enabling persons of limited means to purchase a homestead for
their families. The said corporation shall have power to make,
have and use a common seal, and the same to change, alter and
renew at pleasure, to sue and be sued, plead and be impleaded,
in any court of law and equity; to make all deeds, transfers,
contracts, conveyances and grants whatsoever, and to exercise
all the powers incident to bodies politic and corporate, not in-
consistent with the laws of this state or of the United States.

2. There shall be a meeting of said corporators at such
time and place, after the passage of this act, as the persons
above named, or any five of them, shall appoint (and on such
a day, and at such a place, annually thereafter, as the by-laws
may appoint), for the purpose of choosing from among the vo-
ting members a president and vice-president, six directors, and
a secretary and treasurer, to manage the affairs of said corpo-
ration for one year thereafter, and until a new election shall
take place and their successors are duly qualified, and the mem-
bers above named, or a majority of them, shall appoint the
judges of the first election; and all subsequent elections shall
be conducted, and judges appointed, in accordance with the
by-laws.

3. The directors, or a majority of them, shall have power to
fill all vacancies that may occur in the offices of president and
vice-president, and in their own body; to appoint such other
officers and agents as they may deem necessary to conduct and
execute the business of said corporation; to fix their compen-
sation, and in their discretion to dismiss them; to take bonds
for the said corporation from all or any of the officers or agents,
with security, conditioned in such form as they shall approve
for the faithful performance of the duties of.such officers or
agents, and to secure the said corporation from loss; to invest
the funds of said corporation as they shall see proper, and gen-
erally to do any other act or acts touching the interests of the
company, as they shall deem most safe and beneficial; to admit
members upon such terms as the by-laws may prescribe, and
furnish proof of such admission, and of all payments so made
by such members upon their respective shares, whether in ad-
vance or otherwise; to exclude members when they have not
any property in said corporation; and to make all such by-laws
as may be necessary for the exercise of thé aforesaid powers,
or the powers vested in said corporation; and the same to alter
or repeal at pleasure: provided, that such by-laws shall not be
contrary to any law of this state or of the United States.

4. The stock of the said corporation shall consist of not less
than five hundred nor more than five thousand unredeemed
shares of the par value of one hundred dollars each, payable
in such instalments as the by-laws may prescribe. But the by-
laws may provide conditions for the payment of all or any part
thereof in advance, and may also prescribe the entrance fee to
be paid by such stockholder at the time of subscribing, and if
they see proper may limit the number of shares which each
stockholder may hold at one time; and the corporation shall
have power to compel the punctual performance of all duties
to the corporation, and to enforce the payment of all instal-
ments and other dues due the corporation by all parties sub-
scribing to its stock, or borrowing money under its contracts in
pursuance of its charter and by-laws, by such fines and for-
feitures as the directors may from time to time provide in the
by-laws; power to transfer shares on the books of the corpora-
tion without any liability on the assignor for any instalments or
payments thereon accruing after the date of such transfer. All
transfers shall be subject to such rules, regulations and fees as
the charter and by-laws may prescribe; and every member shall
have one vote for every share of unredeemed stock which he
may hold, at any meeting of stockholders or directors, the pay-
ments on which are not in arrears; and no one shall be éligible
as president, vice-president or director, who is not the bona fide
owner, in his own right, of one or more unredeemed shares of
stock; and upon his ceasing to hold in his own right unredeemed
stock, it shall be the duty of the board of directors to declare
his or their office vacant, and to fill the vacancy.

5. Any person or persons applying for membership, or for
stock in said corporation, after the end of one month from the
time of incorporation, may be required to pay for stock such
price as may, from time to time, be fixed by the board of di-
rectors, in order to place such new members or stockholders
on a footing with the original members and others holding un-
redeemed shares at the time of application.

6. The corporation shall have power to make loans to mem-
bers of the corporation, or others, and receive as part of the
security for loans to members, their shares either by way of re-
demption or hypothecation, as well as to take deeds of trust or
mortgages, or any real, personal or collateral security, con-
ditioned for the payment of the loan or advance in such instal-
ments as may be agreed upon, and for the faithful performance
by the parties thereto of all covenants, stipulations and agree-
ments: provided, however, that in case of such hypothecation
of stock, no greater sum of money shall be drawn out by any
member than has already been paid in by him on his share at
the time of such hypothecation; the property so mortgaged, or
hypothecated as aforesaid, to the corporation to be kept clear
of taxes by the mortgagor. In the case of a redemption the
shares redeemed shall be cancelled, but the members so having
their shares redeemed shall in no wise thereby be released from
their obligations to perform all the duties they may have as-
sumed to the corporation, and shall, for failure, be subject to
like fines and penalties as though their shares of stock had not
been redeemed. It shall and may be lawful for the said corpo-
ration to receive in advance the interest on loans, as well as
to charge and deduct, upon the redemption of shares, such
premium for the privilege of having them redeemed, as may,
from time to time, be fixed by the board, or agreed upon be-
tween the corporation and the parties so having their shares
redeemed.

_7. All shares of stock redeemed by the corporation in accord-
ance with the preceding section, or purchased by it, shall be
considered as redeemed shares, and shall be cancelled; and it
shall be lawful for the company to issue an equal number of
new shares in their stead, so that the number of unredeemed
shares authorized by this act may never exceed the number of
five thousand unredeemed shares, perpetually. And the mem-
ber or members of the corporation so redeeming the said share
or shares of stock shall not be entitled to vote at any meeting
of the corporation held for the purpose of electing directors, or
for any other purpose: provided, however, that any stockholder
who may redeem stock to the corporation shall thereupon have
the privilege of subscribing for as many shares of new stock, at
the price fixed by the board, as he shall have redeemed at that
time; and upon so doing he shall not be deemed to have
forfeited any of his rights enunciated as above, in consequence
of redeeming the previous shares.

8. It shall be the duty of board of directors, at least ten days
prior to the expiration of each succeeding half year, reckoning
from the date of organization of the company, to appoint from
the stockholders three competent persons to investigate the
affairs of the corporation, and make a report thereof, which re-
port shall be recorded on the books of minutes of the stock-
holders meetings, and be at all times open to the inspection of
the stockholders; and thereupon the board of directors shall,
within a reasonable time, declare such dividend of the profits
as shall have been made during the preceding six months upon
the unredeemed shares, the dividends upon fully paid up shares
to be paid in cash, and upon shares not paid up in full to be
pro rata passed to the credit of the holder thereof: provided,
that always at the expiration of a current year, the newly
elected board of directors only shall have the power to declare
such dividend.

g. Nothing in this act shall be taken or construed to allow
the said corporation to issue any note, token, script, device or
other evidence of debt to be used currently.

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