by periodical

SEC. 9. Every borrower from such society of a loan, secured by Payment of loan bond and mortgage or note and mortgage on real estate, in installments. accordance with section eight of this act, shall have the right to repay such loan, together with interest, by certain periodical installments, hereinafter called loan repayments, extending over such period not less than one nor more than ten years as shall be stated in such bond and mortgage or note and mortgage: Provided, That such interest shall not exceed ten per centum per annum, and Proviso-rate of shall be calculated on the amount or balance of principal from time to time owing: Provided also, That no such borrower shall be Proviso-comcharged with or pay any commission in the way of premium or discount on the amount of loan so made to him on security as aforesaid.

interest.

mission not

allowed.

SEC. 10. In case any borrower of a loan from such society shall Payment of loan desire to redeem his property before the expiration of the time before due. limited or mentioned in his bond and mortgage or note and mortgage, for the re-payment of such loan, he shall be allowed to do so, at such time or at the end of such notice as shall be stated in or required by such society's by-laws, upon payment of any loan, repayments, or other sums of money due and unpaid, together with the amount of the present value of all loan repayments accruing or to become payable, according to the terms of such bond and mortgage or note and mortgage, such present value to be found by Present value, discounting such loan re-payments for the period at which each how found. would become due, at the same rate of interest as is promised and secured to be paid for such loan, and nothing in this act shall authorize or sanction the charge or payment in such case of any other money by way of redemption fee or otherwise of such property.

SEC. 11. In case any borrower of a loan from such society shall Default in paymake default in the payment of any loan re-payments or of ment of loan any re-payments, etc. other moneys payable pursuant to the terms and requirements of his bond and mortgage or note and mortgage, or in the performance or observance of any duty or conditions enjoined by or contained in such bond and mortgage or note and mortgage, whereby the principal and other sums of money secured by such bond and mortgage or note and mortgage, are thereupon to become immediately due sums to be paid. and payable, the sum or sums to be paid, on a sale or foreclosure, in settlement or discharge of such bond and mortgage or note and mortgage, shall be the amount of any past-due and unpaid loan repayments or other moneys, and the amount of such attorney fee and costs as are secured by such bond and mortgage or note and mortgage, together with the amount of the present value of all the loan re-payments remaining unpaid after the payment of past-due loan re-payments as above, such present value to be found according to the rule set forth in the last preceding section.

mortgage.

SEC. 12. When all moneys intended to be secured by any bond Receipt to be and mortgage, or note and mortgage, given to any society formed endorsed on under this act have been fully paid or discharged, such society shall endorse upon such mortgage a receipt under the corporate seal of

Form of receipt.

such society, signed by its president and manager in the presence of two witnesses, and to be acknowledged by said president and manager before a notary public, and such receipt shall discharge such mortgage without any re-conveyance or re-surrender whatever, and such receipt shall be in the following form:

The

society limited, hereby acknowledge to have received all moneys intended to be secured by the within written mortgage, given by...

sum of...

.to.. ...for the dated........and recorded in the office

of the Register of Deeds in and for the county of..........

Liber..

on page..

of mortgages.

in

In witness whereof the corporate seal of such society is hereto
affixed this.... ....day of...
...in the year..

by order of the board of directors, duly made and recorded.
[L.S.]

Manager.

President.

Articles of asso

state.

SEC. 13. The persons proposing to form a society under the prociation, what to visions of this act shall make written articles of association, which shall be signed and acknowledged before a notary public, and which shall state,

Name.

Place of business.

Purpose.

Capital

Shares.

Payment of
shares.
Capital paid in.

Extent of loans.

Term.

Names of shareholders, etc.

To be filed with
Secretaryjof
State.

First, The name by which such society shall be known: Provided, That the word limited shall be the last word in such name; Second, The place in this State where its principal office is to be located:

Third, The purpose for which such society is formed; Fourth, Whether its capital is fixed, and if so, at what amount, or whether it is to be of an amount varying from time to time; Fifth, The amount [amounts] of its several shares, and how designated one class of which shall be known as permanent stock; Sixth, How such several shares may be paid;

Seventh, What amount of capital, if any, will be actually paid in before commencing business;

Eighth, The maximum extent, not exceeding the limits prescribed by section four of this act, to which such society is to receive money on loan or deposit;

Ninth, The time such society shall exist, not exceeding thirty years; and

Tenth, The names, in full, of the persons associating, their respective residences, and the number and class of shares subscribed for by each of them.

SEC. 14. The articles of association required by the last preceding section shall be filed and recorded in the office of the Secretary of State of this State; and two copies of such original articles shall be made, which the said Secretary of State shall certify, over his official signature and the seal of this State, as being correct copies of such original articles so filed and recorded; one of said copies shall be filed and recorded in the office of the clerk of the county

be filed with

in which the principal office of such society shall be located, and Certified copy to the said clerk shall certify, over his official signature and the seal clerk of county. of the circuit court of said county, that such certified copy of said original articles has been filed and recorded in his office; and the other copy of such [said] original articles shall be held by the society named therein; and the said articles or copies thereof, duly certified Certified copies by either of the aforesaid officers, may be used as evidence in all may be used as courts and places of the incorporation of, as well as for or against such society; and the said Secretary of State and the said county Fees for filing, clerk shall each be paid for such filing, recording, and certifying recording, etc. at the rate of ten cents for each one hundred words contained in such articles.

evidence.

SEC. 15. After such articles shall have been filed and recorded Body corporate and politic. as above required, the persons signing the same and such other persons, partnerships, and corporations who shall from time to time be possessed of any share or shares in the capital stock of such society, and their several successors and assigns, shall be deemed a body corporate and politic by the name mentioned in such articles; but No two societies such name shall not be identical with that of any other society already formed under this act, or so nearly resembling the same as to be calculated to deceive, unless such other society consents to the adoption and use of such name at any time within the thirty days immediately preceding the expiration of its charter.

to have same name.

transaction of

SEC. 16. Each society established under the provisions of this Common seal. act shall have a common seal, which seal shall not be altered or imitated, and shall in all cases bear the corporate name of, together with such device or motto as may be adopted by, such society, and such seal shall be impressed upon the original articles of association of such society; and shall have power in its corporate General powers name to sue and be sued, appear, prosecute, and defend all actions relative to the and causes to final judgment and execution in any courts or else- business. where; to do all acts that may be necessary for receiving or repaying the moneys paid in from time to time by its members or other persons, partnerships, or corporations, and for crediting or paying profit dividends or interest on such moneys; for loaning or investing the moneys so received, or any part thereof, and the interest and profit arising therefrom upon such real estate, stocks, or bonds, as are stated in section eight of this act, and for receiving and obtaining repayment thereof, and for compelling the payment of any interest or other moneys due on or in connection with any sum or sums so loaned or invested; and for enforcing the observance and fulfillment of any conditions annexed to or connected with moneys so received and repayable or so loaned and invested, or the forfeiture of any term or delay of payment consequent on the non-fulfillment thereof; and to give receipts and acquittances and discharges for the same, either absolutely and wholly, or partially; and such society may, for all and every and any of the foregoing purposes, and for every and any other purpose in this act mentioned or referred to, lay out its capital or other moneys and property for the time being, or any part thereof, with power to do,

What real estate society may acquire.

taken in corpo

rate name.

To be sold

authorize, and exercise all acts and powers whatsoever, in the opinion of the directors of such society requisite or expedient to be done or exercised in relation thereto.

SEC. 17. The only real estate which it shall be lawful for any society formed under this act to acquire, by purchase or otherwise, shall be such as it may be necessary to buy or take in the enforcement of its securities and the collection of any claims or debts due Real estate to be to it; and all conveyances of real estate so acquired shall be taken by such society in its corporate name; and such real estate shall be sold by such society within ten years after the same shall be within ten years, vested in it by purchase or otherwise, and such society shall sell and convey such real estate free from any claim thereon by any of its members, or any person claiming under them, by an instrument under its corporate seal and under the hands of its president and manager, duly authorized, and duly acknowledged: Provided, however, That such society may purchase, or hold upon lease, any land for the purpose of erecting thereon a building for its accommodation and the convenient transaction of its business, or it may purchase, build, hire, or take upon lease any building, and may adapt and furnish the same for so conducting its business, and if occasion requires may sell, exchange, or let such land or buildings, or any part thereof.

Proviso.

Dealing in personal property.

Calling first meeting.

Ey-laws.

of directors.

SEC. 18. It shall not be lawful for such society to acquire, hold, or deal in any personal property other than as provided in this act and such as may be necessary for the transaction of its business.

SEC. 19. The first meeting of such society may be called by a notice, signed by any two of the associates who signed its articles. of association, setting forth the time, place, and objects of such meeting, such notice to be mailed to the residence of each associate at least ten days prior to such meeting; and a majority of such associates at such meeting shall be competent to make all such by-laws as they may deem necessary for the proper management of such society's business, so as such by-laws are not repugnant to, or inconsistent with, the provisions of this act or of any law of this Election of board State or of the United States: to elect the first board of directors, which board, and all subsequent boards, shall consist of not less than six nor more than nine members of such society, and which board shall elect from their own number the president and vice president of such society; and also to elect two auditors who, as well as all their successors, may or may not be members of such society; such directors and auditors to hold their offices until their successors shall have been elected as is provided for in the next following section; and to transact any other business necessary for the organization of such society and appropriate to such meeting; Minutes of pro and the secretary of such meeting shall make full and correct minutes of its proceedings upon the books or records of such society, and the same, being signed by its chairman, shall be deemed and taken to be prima facie evidence of the action of such meeting.

President and vice president. Auditors.

Term of office.

ceedings to be recorded and

signed.

SEC. 20. Every society formed under this act shall hold an

purpose of

Report of re

be presented to annual meet

tiring directors

ing, what it shall

state.

annual meeting of its members on some one of the first fourteen Annual meeting, days in the month of February in each and every year, for the purpose of considering and determining upon any matter, not requiring special notice, relating to such society's business, and for the election of directors and auditors to serve for the ensuing year, or until their successors are elected and qualified; but before such election takes place, the retiring directors shall present to such meeting a report, to signed by the president, of such society's transactions during their term of office, accompanied by such information and suggestions as they may deem proper to give in relation to such society's affairs, and to the future management thereof; and they shall also present to such meeting an account of all the receipts and disbursements of such society for the year ending on the thirty-first day of December next previous thereto, and a general statement of such society's funds and effects, liabilities and assets, as at the close of the date last aforesaid; such account to state fully and clearly the amounts received on each class of shares issued, the amounts received on loans, the amounts received on deposits, the amounts received as principal and interest from bonds and mortgages or notes and mortgages, the amounts received as principal and interest from stocks and bonds, the amounts received for fines from members and borrowers, and the amounts received for incidentals and for any and all other matters; and such account shall show on its contra side the amounts paid out for principal and interest or dividends on each class of shares, for principal and interest on loans, for principal and interest on deposits, for amounts loaned on bonds and mortgages or notes and mortgages, for amounts invested in the several stocks and bonds as allowed by this act, for amounts paid on accounts, or for any matter or thing other than general management expenses, and the amounts paid for rent, taxes, salaries, law charges, stationery, printing, advertising, and other expenses of management; and such general statement shall clearly show such society's liability for principal and interest or dividends (including periodical installments in arrear, the amount of which shall be stated in brackets) on each class of shares, for principal and interest on loans, for principal and interest on deposits, and for all indebtedness on any and every other account; and such general statement shall state fully on its contra side the amounts due and unpaid for periodical installments and fines on shares, the amounts due and unpaid for principal, interest, and fines on bonds and mortgages or notes and mortgages, the amounts due and unpaid for principal and interest on stocks and bonds, the amount outstanding and not then due (not including prospective interest) on bonds and mortgages or notes and mortgages, the amount of principal outstanding and not then due on stocks and bonds, the amount of interest accrued but not then due on said stocks and bonds, the amount [amounts] of any other moneys, claims, debts, costs, or damages owing to such society, and the amount or cash value of any and all real estate, and of any and all personal property, owned and held by such society; and in all cases