per annum. For the purpose of completing the purchase of lands intended to be divided and distributed, they may borrow on the security of their 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 shareholders; but no loan must be made to the corporation for a term extending beyond that of its existence. En. March 21, 1872.

Legislatíve History.

Section 5 of the homestead act of 1861, page 567, as amended 1870, page 474, is the basis of this section.

MINOR CHILDREN, WARDS, AND MARRIED WOMEN MAY OWN STOCK.

Sec. 561, C. C. Such shares of stock in homestead corporations as may be acquired by children, the cost of which, and the deposits and assessments on which are paid from the personal earnings of the children, or with gifts from persons other than their male parents, may be taken and held for them by their parents or guardians. Married women may hold such shares as they acquire with their personal earnings, or those of their children, voluntarily bestowed therefor, or from property bequeathed or given to them by persons other than their husbands. En. March 21, 1872.

Legislative History.

Section 6 of the homestead act of 1861, page 567, is the basis of this section.

FORFEITURE FOR SPECULATING IN OR OWNING LANDS EXCEEDING TWO HUNDRED THOUSAND DOLLARS.

Sec. 562, C. C. 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, real 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. En. March 21, 1872.

WHEN CORPORATION IS TERMINATED, AND HOW.

Sec. 563, C. C. Except for the purpose of winding up and settling its affairs, every homestead corporation must terminate at the expiration of the time fixed for its existence in the articles of incorporation, or when dissolved as provided in this. part. No dividend of funds must be made on termination of its corporate existence, until its debts and liabilities are paid; and upon the final settlement of the affairs of the corporation, er 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 interest 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. En. March 21, 1872.

Legislative History.

Section 7 of the homestead act of 1861, page 567, and section 1 of the amendatory act of 1870, page 74, are the basis of this section.

PAYMENT OF PREMIUMS.

Sec. 564, C. C. Such premiums on lots may be made payable at the time they are bid off, and, if not so paid on any lot of land the directors may immediately offer the same for sale

again. If made payable at a future day, and any shareholder fails to pay his bid 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 installments and premiums. En. March 21, 1872.

Legislative History.

Section 1 of the homestead act of 1870, page 474, is the basis of this section.

ANNUAL REPORT TO BE PUBLISHED.

Sec. 565, C. C. The actual financial condition of all homestead corporations must, by the directors thereof, be published annually in the [a] newspaper published at the principal place of business of the corporation, for four weeks, if published in a weekly, and two weeks, if published in a daily. The statement must be made up to the end of each year, and must be verified by the oath of the president and secretary, showing the items of property and liabilities. En. March 21, 1872.

Legislative History.

Section 8 of the homestead act of 1861, page 567, is the basis of this section.

PUBLICATION IN CERTAIN CASES.

Sec. 566, C. C. In any case in which a publication is required, and no newspaper is published at the principal place of business, the publication may be made in a paper published in an adjoining county. En. March 21, 1872.

See act of March 23, 1874, relative to homestead corporations, Statutes at Large, title "Homesteads."'

TITLE X.

SAVINGS AND LOAN CORPORATIONS.

571. May loan money-On what terms, how, and to whom, and how long.

§ 572.

§ 573.

Capital stock, and rights and privileges thereof.

No dividends, except from surplus profits-To contract no liability, except for deposits.

§ 574. Property which may be owned by corporations-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 certifi

cates.

§ 577. To provide reserve fund for the payment of losses.

§ 578. Prohibition on director and officer, and what vacates office.

§ 579. Definition of phrase "create debts.''

§ 580. Banks, amount of capital stock required.

§ 581. Restrictions on savings banks.

§ 582. True names of persons engaged in banking must be shown. § 583. Dividends-Surplus funds.

§ 583a. Capital actually paid up must be published.

MAY LOAN MONEY-ON WHAT TERMS, HOW, AND TO WHOM, AND HOW LONG.

Sec. 571, C. C. 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, and such loan must not be for a longer period than ten years. En. March 21, 1872. Amd. 1900-01, 295.

Banks cannot be created except under general laws: Const. Cal., art. XII, sec. 5.

Act relating to banking corporations repealed: See post, Statutes at Large, title "Banks and Banking."

Act compelling bank to publish statement of unclaimed leposits: See post, Statutes at Large, title "Banks and Banking."

Act providing for dissolution and winding up of savings banks and trust companies: See post, Statutes at Large, title "Banks and Banking."

Legislative History.

Sections 4 and 5 of the savings and loan act of 1862, page 199, as amended 1864, page 158, are the basis of this section. The original section has six" instead of "ten" years.

Section Cited.

Mitchell v. Beckman, 64 Cal. 123, 28 Pac. 110; Security Sav. Soc. v. Hinton, 97 Cal. 222, 32 Pac. 3; Savings Bank v. Barrett, 126 Cal 415, 58 Pac. 914; Winchester v. Howard, 136 Cal. 442, 89 Am. St. Rep. 153, 64 Pac. 692, 69 Pac. 77.

Annotation.

Savings Bank Defined.-For a definition of a savings bank, see Grant on Banking, 546; Huntington v. Savings Bank, 96 U. S. 388; Coite v. Society for Savings, 32 Conn. 173; Osborn v. Byrne, 43 Conn. 155, 21 Am. Rep. 641; secs. 571-579, C. C., both inclusive; Mitchell v. Beckman, 64 Cal. 122, 28 Pac. 110.)

In order to constitute a savings and loan corporation, it is not necessary that the name of the corporation should in any manner express the fact that it is such. (City of Los Angeles v. State Loan & Trust Co., 109 Cal. 396, 42 Pac. 149.)

Savings banks may be either one in which the depositors are the members and the bank merely their agent, and in which the depositors have an interest in the deposits and profits, or one in which the depositors are mere creditors and have no interest in the profits. Each of these kinds of savings banks accords with the provisions of the Civil Code respecting savings and loans corporations, and are both taxable under section 3617 of the Political Code. (City of Los Angeles v. State Loan & Trust Co., 109 Cal. 396, 42 Pac. 149.)

Where a loan and trust company has a savings department in which term savings deposits are received upon a specified rate of interest, the corporation, as regards its term savings deposits, is de facto a savings and loan corporation, and is properly assessed and taxed as such. (Los Angeles v. State Loan & Trust Co., 109 Cal. 396, 42 Pac. 149.)

A defect in a complaint consisting of a failure to allege the class of incorporations to which the plaintiff belongs is cured by such an allegation in the answer of defendant. (Savings Bank v. Barrett, 126 Cal. 413, 58 Pac. 914.)

Taxation of Deposits.-This section expressly authorizes savings and loan corporations to receive deposits, loan and invest the same,