1. That

3406a. Building, etc., association defined - Fees. every association heretofore or hereafter incorporated under any law of this State providing for the incorporation of building and loan, fund and savings associations, and every association heretofore or hereafter incorporated for the purpose of raising money to be loaned or advanced among its members, shall be known in this act as a building and loan association. The secretary of state shall charge and collect for the benefit of the State, for filing articles of incorporation of any such association, the sum of five (5) dollars for each fifty thousand dollars of capital stock or fractional part thereof.

3406b. Shareholders Charges against. 2. That it shall be unlawful for any building and loan association doing business in the State of Indiana to charge or collect from any of the members thereof, on any stock or shares of stock therein, any money or moneys other than the membership fees, loan fees, dues on stock, premium, interest, fines and forfeitures. All membership fees, fines, premium and interest shall be credited to the earnings, and all expenses shall be paid out of the earnings of such building and loan association, and no association shall charge or collect a membership fee of more than fifty cents on

each share of stock of one hundred dollars issued. Such association shall have the right to set aside from the profits a reserve fund to provide against contingent losses: Provided, That the total amount of such fund so set aside shall not at any time exceed five per centum of the assets of such association.

3406c. Annual reports to stockholders. 3. It shall be the duty of every such association to furnish, within thirty days after the annual statement to the auditor of state, an annual written or printed statement of the condition of such association to each of the stockholders thereof, which said statement shall be delivered personally or mailed to the stockholder. Such statement shall show separately amount of membership fees, loan fees, dues, interest, fines and forfeitures, together with all moneys received by it from any source whatever, and a full showing of all payments on loans, dividends, salaries and all expenditures of every character, being a full and complete financial statement of such association during the preceding year. The statement shall be sworn. to by the Secretary, and certified by the Directors or a majority thereof. And each association shall annually cause to be credited on the pass book of each stockholder the amount of earnings due each stockholder, except associations doing business on the "terminating" or "serial plan."

3406d. Stock defined. 4. For the purpose of this aot, paid-up stock shall be such stock as the owner shall have paid the full face value thereof at the time of the subscription therefor. Prepaid stock shall be stock upon which the owner shall have paid any specific sum in advance at the time of subscription, leaving the balance necessary to mature the same to be paid by the dividends to be declared thereon by the association, or stock on which more than six months' dues have been paid in advance. All building and loan associations, as such shall be exempt from taxation. Shares of stock on which loans have not been made or advanced by the association, which stock is paid-up or prepaid, shall be considered and held as credits of the members, individually, and listed by them, and assessed against them for taxation as other property.

3406e. Withdrawals -- Fines, etc. 5. Any stockholder whose stock is unpledged for a loan, wishing to withdraw from such association within one year from the time of issuing his stock, may do so upon three months' notice, in writing, given to the Board of Directors, where such withdrawing stockholder shall be entitled to receive the full

amount of dues paid in upon the stock to be withdrawn, less all fines and pro rata share of losses sustained during such stockholder's terms of payment prior to the time of notice of withdrawal. If such withdrawal is made after one year from the time of issuing such stock, such withdrawing stockholder shall be entitled to the amount paid in on dues and all declared dividends thereon, and such part of the profits as shall not have been carried to the reserve or contingent fund, less all fines and forfeitures: Provided, That not more than one-half of the funds in the treasury shall be applied to the demand of withdrawing stockholders unless otherwise ordered by the Board of Directors. Such association shall have the power to provide for the assessment of fines for non-payment of dues, premium or interest; but such fines shall not exceed twenty per centum of the amount of the delinquent installment of dues, and shall be charged only once in such installment. Such association shall have the power to provide for the forfeiture of stock for the non-payment of dues, premiums of interest for three months. After the payment of all fines and other amounts due the association, the remainder, if any, shall be credited to such stockholder, and he shall be notified of the amount due him, or, in case he is a borrower, such remainder shall be credited on his loan and the balance of said loan shall be due and payable and may be collected at once on foreclosure. The bonds, notes or mortgages belonging to any association shall not be negotiable except upon an order of the Circuit Court or the Judge thereof, in vacation, of the county in which the principal office of said association is situated.

3406f. Increase of capital stock. 6. The capital stock of any association may be fixed originally in any sum, or upon the order of the board of directors thereof be increased to any amount the directors shall deem advisable. No director shall become a surety on the bond of any secretary or treasurer or any officer of such association.

3406g. Consolidation. 7. Any two or more associations of this State may consolidate into a single corporation by a majority vote of all the stockholders of each of the different associations at a special meeting of each association called for that purpose, of which at least thirty days' notice shall have been given to each member, the consolidation to be upon such terms as shall be mutually agreed upon by the directors of such associations, and such terms shall be plainly set forth to each member in the notices of such special meetings. Any member not consenting to such consolidation shall be entitled to receive the

withdrawal value of his stock in settlement or to have such value applied in part settlement of his loan if he be a borrower.

3406h. Voluntary liquidation. 8. Any Building and Loan association organized under the laws of this State, and doing business within this State, may, if its Board of Directors deem it advisable, go into liquidation; and for the purpose of so doing may at any regular or called meeting of the Board of Directors adopt a resolution declaring that such association intends to go into liquidation and discontinue business as a Building and Loan association. A copy of such resolution duly certified by the President and Secretary of such Association, under the seal thereof, shall be transmitted to the Auditor of State within ten days after the passage thereof, together with a fee of one dollar for the filing of the same in his office; and thereupon the Auditor of State shall issue his certificate reciting that such resolution has been filed in his office and that such association is in liquidation. After the filing of such notice it shall not be lawful for such association to issue stock, or to loan or advance its moneys to its members or to any other person or persons but all of the income and receipts of such association, in excess of the actual expense of managing the same, shall be applied to pay off the stock in such association upon which no loans have been made, the same to be paid pro rata. The Board of Directors of such Association in liquidation may adopt such rules and make such orders as shall be just and equitable for the sale and disposition of all property held by such association, the assessment to meet losses, if any, and for the division of the profits of such association. Proceedings for the appointment of a receiver for an Association in liquidation shall not be entertained by any court except upon the written recommendation of the Auditor of State after he has investigated its affairs pursuant to the provisions of existing laws. [As amended 1899 S., p. 84. Approved February 22, 1899.

34061. Premiums. 9. It shall be competent and lawful for the borrower from such association to agree, in writing, upon a given rate of premium in addition to the interest to be paid upon each loan, without bidding. All contracts heretofore made between any borrower and any such association for the payment of any premiums, with or without any bidding are hereby legalized. No premiums heretofore contracted for without bidding or to be contracted for under this section shall be deemed usurious.

3406j. Foreign associations.

10. That where a foreign building

and loan association doing business within this State has become insolvent, and its affairs are being wound up by a receiver, the failure of such association to have complied with the laws of the State representing its admission to do business therein, shall not affect the right of such receiver to bring any suit necessary to wind up the affairs of such association.

[1885 S., p. 81. By lapse of time, without Governor's signature, March 11, 1885.] 3407. How formed Record. 1. Any number of persons, not fewer than ten, after at least one hundred shares of stock have been subscribed for, may associate themselves together for the purpose of organizing building, loan fund, and savings associations, and for that purpose they shall make, sign, and acknowledge in duplicate before some officer, capable of taking acknowledgments of deeds conveying real estate, a certificate of incorporation in writing, which shall state the corporation name adopted by the company, the object of its formation, the amount of its capital stock, the amount of capital stock already subscribed for, the number of its directors and their names, who shall manage the affairs of the company for the first year, and the name of the town or county in which its operations are to be carried on; and shall cause one of said certificates to be filed and recorded in the Recorder's office of the county where the business is to be carried on, and shall file the other of said certificates in the office of the Secretary of State.

3408. General powers - Managers. 2. When the certificate of incorporation shall have been filed as aforesaid, a certified copy thereof shall be evidence of the contents thereof; and the persons who shall have signed and acknowledged such certificate, and their successors, shall be a body politic and corporate, and in their corporate name may contract, sue, and be sued, and may hold and convey real estate and personal property as hereinafter provided. The business of the association shall be managed by a board of directors, who shall be stockholders of the association, and who shall be selected by the stockholders as the by-laws of the association may provide.

3409. Powers-Premiums not usurious. 3. The corporation shall have the power and franchise of loaning or advancing to the stockholders thereof, at interest not exceeding the legal contract rate at the time, the moneys of the association accumulated from time to time, and the power