Chap. 222.—An ACT to amend and re-enact section 4154 of the Code of Vir-
ginia. [H B 428]

Approved March 16, 1920.

1. Be it enacted by the general assembly of Virginia, That sec-
tion forty-one hundred and fifty-four of the Code of Virginia _be
amended and re-enacted so as to read as follows:

Sec. 4154. Power and limitations of building and loan associations ;
loans and premiums.—Any number of persons, not less than five, may
hereafter form a building and loan association for the purpose of en-
couraging industry, frugality, and home building and saving among its
members upon being incorporated as provided in section thirty-eight
hundred and forty-nine. Building and loan associations formed under
this chapter, or heretofore chartered or incorporated under said sec-
tion, 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 per-
sons the money accumulated from time to time and the right to pur-
chase 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 associations may acquire, hold,
convey, and incumber all or any property, real or personal, acquired by
them in the due course of business; and may also secure the payment
of loans and the performance of the conditions upon which loans are
made, and the payment 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 associations shall have the power to establish and maintain, by
their officers and agents, branch offices for the transactions of their
business at as many places as may be desirable. It shall be lawful for
every such association 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
installments, or in default of application for said money by stockhold-
ers, it shall be lawful for 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 by-laws; provided, that where the com-
pany lends its funds, taking as security any order or assignment of
the wages of the debtor, tangible personal property, or any security
except real estate or the shares of stock of the said company upon
which there has been actually paid the sum equal to the amount of
said loan, the laws of this State and the ordinances of the cities and
towns thereof, in reference to the conduct of the business of lending
money and the rates to be charged therefor, shall apply to building and
loan associations as to other persons or corporations.

All building and loan associations are authorized to lend money
to persons not members thereof nor shareholders therein, at not ex-
eeding six per centum per annum, and aggregate the principle and
nterest at the date the loan is made for the entire period of the loan,
ind divide the sum of the principal and interest into equal monthly or
ther installments, evidenced by promissory notes or bonds, and to
ake security therefor by deed of trust on real estate situated in this
State.

2. An emergency existing by reason of the demand for the erec-
ion of dwellings in this State dependent upon securing adequate funds
therefor, this act shall be in force from its passage.