Chap. 216.—An ACT to amend gnd re-enact sections 1, 4, 6, 7,
and 8 of an act approved April 7, 1882, entitled an act to incor-
porate the Liberty perpetual building and loan company.

Approved February 17, 1890. -

1. Be it enacted by the general assembly of Virginia,
That. sections one, four, s1x, seven, and eight of an act
approved April seventh, eighteen hundred and eighty-two,
entitled an act to.incorporate the Liberty perpetual build
ing and loan company, be amended and re-enacted so as
to read as follows, to-wit:

81. Be it enacted by the general assembly of Virginia,
That Robert T. Armspaugh, Robert B. Claytor, James W.
Smith, C. W. Wharton, W. S. Graves, John M. Wright,
W.F. Fisher, F. O. Holfman, John R. Thurman, C. A.
Board, and Walter Izard, together with such other persons
as may hereafter be associated with them, be, and they
are hereby, created and made a body politic and corpo-
rate by the name of the Liberty perpetual building and
loan company, and as such shal! be capable in law to pur-
chase, hold, and dispose of property, both real and per-
sonal, 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 cor-
poration shall have power. to make, have, and use a com-
mon 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 al] the powers incident to bodies politic and cor-
porate not inconsistent with the laws 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 two thousand
unredeemed shares, at the par value of sixty-five dollars
each, payable in such instalments as the by-laws may pre-
scribe; but the by-laws may provide conditions for the
payments of all or any part thereof in advance, and may
also prescribe the entrance fee to be-paid by such stock-
holder 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 enforce the payment of all instalments and other
dues due the corporation from members or stockholders
by such fines and forfeitures as the directors may from
time to time provide in the by-laws; and every member
shall have one vote for every share of unredeemed stock
which he may hold at any meeting of stockholders or
election of directors, and no one shall be eligible as presi-
dent, 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. Shares of stock may be transferred on such
terms as the by-laws may prescribe, but no assignor of
stock shall be liable for any instalments or payments
thereon accruing after the date of such transfer.

§6. The corporation shal] have power to make loans to
members of the corporation or others, and receive as part
of the security for loans to members their shares, either
by way of redemption or hypothecation, as well as to take
deeds of trust or mortgages, or any real, personal, or col-
lateral security conditioned for the payment of the loan,
or advance in such instalments as may be agreed upon,
and for the faithful performance by the parties thereto of
any covenants, stipulations, and agreement: 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 mortgages. In case of a redemption, the
shares redeemed shall be cancelled, but members so hav-
ing their shares redeemed shall in no wise thereby be
released from their obligation to perform all the duties
they may have assumed 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 he lawful for the said corporation to receive in
udvance the interest. on loans, as well as to charge and
deduct upon the redemption of such shares such premium
for the privilege of having them redeemed as may from
time to time be fixed by the board or agreed upon between
the corporation and the parties so having their shares
redeemed.

$7. All shares of stock redeemed by the corporation in
accordance with the preceding section or purchased by it
shall be considered as redeemed shares, and shall be can-
celled, 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 two thousand unredeemed
shares perpetually, and the member 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 corpora-
tion held for the purpose of electitig 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 the board of directors, at
least ten days prior to the expiration of each succeeding
half year, accounting from the date of organization of
the company, to appoint from the stockholders three com-
petent persons to investigate the affairs of the corrora-
tion and make a report thereof, which report shall be
recorded in a book kept for that purpose, and to be at all
times open to the inspection of the stockholders; and
thereupon the board of directors shall, within a reason-
able time thereafter, declare such dividend of the profits
as shal] have been made during the preceding six months
upon unredeemed shares as to them shall seem right and
proper, the dividends upon fully paid up sheres 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.
2. This act shall be in force from its passage.