TITLE IX. HOMESTEAD CORPORATIONS. SECTION 557. Time of corporate existence. 558. By-laws must specify time for and amount of payment of 559. Advertisement and sale of delinquent and forfeited shares. hundred thousand dollars. 563. When corporation is terminated, and how. 564. Payment of premiums. 565. Annual report to be published. corporate existence. SEC. 557. Corporations organized for the purpose of Time of acquiring lands in large tracts, paying off encumbrances thereon, improving and subdividing the same into homestead lots or parcels, and distributing them among the shareholders, and for the accumulation of a fund for such purposes, are known as homestead corporations, and must not have a corporate existence for a longer period than ten years. Stats. 1861, 567, Secs. 1, 3; 1867-8, 539, Sec. 1. SEC. 558. Such corporations must specify in their bylaws the times when the instalments of the capital stock are payable, the amount thereof, and the fines, penalties or forfeitures incurred in case of default, and a printed copy of the articles of incorporation and by-laws shall be furnished to any shareholder on demand. SEC. 559. Whenever any shares of stock are declared forfeited by resolution of the Board of Directors, the Directors may advertise the same for sale, giving the name of the subscriber and the number of shares, by notice of not less than three weeks, published at least once a week, in a newspaper of general circulation in the city, town or county where the office or principal place of business of such corporation is located, or in case no newspaper is published there, then in the newspaper published nearest to the place where the place of business is. Such By-laws time for and must specify amount of instalments, for failure to By-laws to payment of and penalty pay. be furnished to any member on demand. Advertise ment and sale of de forfeited linquent and shares. May borrow and loan and for what time. sale must be made at auction, under the direction of the Secretary of the company. The corporation may be a bidder, and the shares must be disposed of to the highest bidder, for cash. No defect, informality or irregularity in the proceedings respecting the sale invalidates it, if notice is given as herein provided. After the sale is made the Secretary must, on receipt of the purchase money, transfer to the purchaser the shares sold, and after deducting from the proceeds of such sale all instal ments then due and all expenses and charges of sale, must hold the residue subject to the order of the delicquent subscriber. Stats. 1863-4, 492; 1867-8, 540, Sec. 1. SEC. 560. Homestead corporations may borrow money funds-how, for the purposes of the corporation, not exceeding at any one time one-fourth of the aggregate amount of the shares or parts of shares and the income thereof; no greater rate of interest must be paid therefor than twelve per cent. per annum. For the purpose of completing the purchase of lands intended to be divided and distributed, they may borrow on the surety of the unsold shares, on the land thus purchased, or that owned by the corporation at the time of procuring the loan, any sum of money which, together with the interest contracted to become due thereon, will not exceed ninety per cent. of the unpaid amount subscribed by the stockholders; but no loan must be made to the corporation, payment whereof is to be made after the expiration of the term of existence specified in the articles of incorporation. Minor chil dren, wards women may own stock. SEC. 561. Stats. 1870, 474, Sec. 1; 1861, 567, Sec. 5. NOTE.-There can be no good reason assigned for having a surplus of cash on hand by a homestead corporation; much less can there be for loaning it to its own members, hence we have omitted Sec. 18 of the Act of 1861. Such shares of stock in homestead corporaand married tions as may be acquired by, and on which the deposits and assessments are paid from the personal earnings of, children, or with gifts to them other than those from their male parents, may be taken and held for them by their parents or guardians. Married women may hold such shares as they acquire similarly, with the personal earnings of themselves or their children, voluntarily be stowed therefor, or from property bequeathed or given to them by persons other than their husbands. Stats. 1861, 567, Sec. 6. SEC. 562. Homestead corporations must not purchase and sell, or otherwise acquire and dispose of real property or any interest therein, or any personal property, for the sole purpose of speculation or profit. Nor must any such corporation at any one time own or hold, in trust or otherwise, for its purposes, rea! property, or any interest therein, which in the aggregate exceeds in cash value the sum of two hundred thousand dollars. For any violation of the provisions of this section corporations forfeit their corporate rights and powers. On the application of any citizen to a Court of competent jurisdiction such forfeiture may be adjudged, and the judgment carries with it costs of the proceedings. [New section.] poration is terminated, and how. SEC. 563. Every homestead corporation must termi- When cornate at the expiration of the time fixed for its existence in the articles of incorporation, or when dissolved as provided in this Part, except for the purpose of winding up and settling its affairs. No dividends of funds must be had on termination of its corporate existence until its debts and liabilities are paid; and upon the final settlement of the affairs of the corporation, or upon the termination of its corporate existence, the Directors, in such manner as they may determine, must divide its property among its shareholders in proportion to their respective interests, or, upon the application of a majority in interest of the stockholders, must sell and dispose of any or all of the real estate of the corporation upon such terms as may be most conducive to the interests of all the stockholders, and must convey the same to the purchaser and distribute the proceeds among the shareholders, or may at any time, when best for the interests of all the shareholders, cause the lands of the corporation to be subdivided into lots and distributed, by sale for premiums, at auction or otherwise, among the shareholders. Stats. 1861, 567, Sec. 7; 1870, 474, Sec. 1. SEC. 564. The Directors may demand payment of the Payment of premiums on lots at the time they are bid off, and if not premiums. Annual report to be published. so paid on any lot of land, may immediately offer the same for sale again. If any shareholder fails to pay the amount bid by him on any lot or lots of land, on the day the same is made due and payable, the Directors may advertise and sell the shares of stock representing the lots of land on which the premiums remain unpaid, in the manner provided in the by-laws for the sale of shares on account of delinquent instalments and premiums. SEC. 565. Stats. 1870, 474, Sec. 1. The actual financial condition of all homestead corporations must, by the Directors thereof, be published annually in the newspaper published nearest the principal place of business of the corporation, for four weeks, if in a weekly, and two weeks, if in a daily. The statement to be made up to the end of the fiscal year, and verified by the oath of the President and Secretary, showing the items of property and liabilities. Stats. 1861, 567, Sec. 8. NOTE. We are indebted to H. B. Congdon, Esq., Secretary of the Land and Building Association, for many valuable suggestions and amendments to the above Title. May loan money-on what terms, how and to whom, and how long. TITLE X. SAVINGS AND LOAN CORPORATIONS. SECTION 571. May loan money-on what terms, how and to whom, and how long. 572. Capital stock, and rights and privileges thereof. 573. No dividends, except from surplus profits. To contract no liability, except for deposits. 574. Property which may be owned by corporations, and how disposed of. Restrictions in purchases as provided above. 575. Married women and minors may own stock in their own right. 576. May issue transferable certificates of deposit. Special certificates. 577. To provide Reserve Fund for the payment of losses. 578. Prohibition on Director and officer, and what vacates office. SEC. 571. Corporations organized for the purpose of accumulating and loaning the funds of their members, stockholders and depositors, may loan and invest the funds thereof, receive deposits of money, loan, invest and collect the same, with interest, and may repay depositors with or without interest. No such corporation must loan money except on adequate security on real or personal property, unless such corporation has a paid up capital stock or Reserve Fund of not less than three hundred thousand dollars, and such loan is authorized by the articles. of incorporation or by-laws, to be made by a two-third. vote of the Directors; such loans must not be for a longer period than six years. Stats. 1862, 199, Secs. 4, 5; 1864, 158, Sec. 2. NOTE. It has been suggested that all after the word "property," in the eighth line, should be stricken out, and there is force in the suggestion; but it is the law, and is retained and the suggestion submitted. SEC. 572. When savings and loan corporations have a capital stock specified in their articles of incorporation, certificates of the ownership of shares may be issued; and the rights and privileges to be accorded to, and the obligations to be imposed upon, such capital stock, as distinct from those of depositors, must be fixed and defined, either in the articles of incorporation or in the by-laws. Stats. 1862, 203, Sec. 17. SEC. 573. The Directors of savings and loan corporations may, at such times and in such manner as the bylaws prescribe, declare and pay dividends of so much of the profits of the corporation, and of the interest arising from the capital stock and deposits, as may be appropri ated for that purpose under the by-laws or under their agreements with depositors. The Directors must not contract any debt or liability against the corporation for any purpose whatever, except for deposits The capital stock and the assets of the corporation are a security to depositors and stockholders, depositors having the priority of security over the stockholders, but the by-laws may provide that the same security shall extend to deposits made by stockholders. Stats. 1870, 130, Sec. 1; 1862, 199, Sec. 10; 1862, 199, NOTE. It has been suggested that depositors and stock- |