Chap. 74.—An ACT to encourage thrift and savings amongst industrial classes
similar to the encouragement afforded by building and loan associations and
to authorize the incorporation of industrial loan associations for the pur-
pese of making small loans to industrial classes on security and at 2 low
rate of interést. CH B 112)

_ Approved February 21, 1920.

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l. Be it snacind by the general assembly of Virginia, That for
the purpose of encouraging thrift amongst industrial classes similar
to that encouragement now being offered by building and loan associa-
tions, and to reach a certain class of industrial workers who are not
reached by either building and loan associations or the banks and as
a means to such end and for the purpose of incorporating industrial
loan associations to make such loans on security and at low rates of
interest it is provided as follows:
1. How incorporated—Corporations may be formed for the con-
duct of an industrial loan business according to the provisions of
chapter one hundred and forty-seven of the Code of Virginia, nineteen
hundred and nineteen, entitled general provisions applicable to cor-
porations, and shall be subject to all the restrictions and duties, and
have all the general powers, in said chapter contained, except as other-
wise provided in this act.

2. Minimum capital; amount to be paid in before commencing
business.—No industrial loan association shall be incorporated with a
less capital than thirty thousand dollars which shall be fully paid in
before commencing business. . .

3. Number of directors ; amount of stock each must hold.—Every
such industrial loan association shall have at least ten directors who
are citizens of the State of Virginia and who must own, in his own
right, at least one hundred dollars of the par value of the capital stock
of the association of which he is a director. Any director who ceases
to be the owner of one hundred dollars of the par value of the capital
stock or become by any other means disqualified, shall thereby vacate
his office.

4. Powers.—In addition to the general powers conferred upon
corporations under the provisions of chapter one hundred and forty-
seven of the Code of Virginia, nineteen hundred and nineteen, every
such association shall have the power to lend money to any person,
firm or corporation, to be repaid in periodical instalments, secured by
the obligation of such persons, firm or corporation, or by any other
security, subject to the limitations and restrictions hereinafter set
forth; provided, however, that no loan shall be made for a longer
period than four years, nor a greater amount than ten per centum
of its paid in capital stock and surplus.

5. Interest on loans—Such associations may charge the legal
rate of interest on loans made, payable in advance, upon the entire
amount of the loan.

6. Repayment of loans.—Such loans as made by associations in-
corporated under this act shall be repaid in weekly or monthly instal-
ments, provided, however, that in the default of the payment of any
instalment for a period of thirty days the association may declare the
entire unpaid balance due and payable.

7. Supervision by State corporation commission; statements of
financial conditions—The State corporation commission shall have
supervision of all industrial loan associations doing business in this
State, whether incorporated under the laws of this State or not, and
may require of them statements of their financial condition at such
times as to the said commission may seem proper.

8. Associations to make financial statements; fine for failure to
make statements.—It shall be the duty of such industrial and loan
associations to make the statements required by the preceding section
to the State corporation commission, upon request, general or special,
and for a failure so to do for a period of thirty days after such request,
said association shall be fined not less than one hundred dollars nor
more than one thousand dollars by the State corporation commission,
unless, in answer to a rule for that purpose, good cause be shown
against it. :

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

10. Fines.—Every such association may fix by its by-laws such
fines as it will charge for the non-payment of any instalments of the
loan. Such fines shall not be more than ten per cent of the amount
of the loan for the default in the payment of one dollar or fraction
thereof ; and provided further, that no such charge shall be cumulative.

11. Taxes.—All such industrial loan associations, incorporated
under this act, shall be taxed according to the same provisions of taxa-
tion now or hereafter imposed upon building and loan associations.

12. Emergency.—An emergency existing by reason of the fact
that in the Code of Virginia, nineteen hundred and nineteen, no pro-
vision is made or contained for the regulation of such industrial loan
associations, this act shall take effect from its passage.

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