SUBCHAPTER I. BUILDING AND LOAN ASSOCIATIONS. ART. 1. ORGANIZATION. 508. Application of term. The term "building and loan association,' as used in this subchapter, shall apply to and include all corporations, companies, societies, or associations organized for the purpose of making loans to its members only, and of enabling its members to acquire real estate, make improvements thereon and remove incumbrances therefrom by the payment of money in periodical installments or principal sums, and for the accumulation of a fund to be returned to members who do not obtain advances for such purposes. It shall be unlawful for any corporation, company, society, or association doing business in this state not so conducted to use in its corporate name the term "building and loan association" or "building association," or in any manner or device to hold themselves out to the public as a building and loan association. C. S., s. 5169; Rev., s. 3881; 1905, c. 435, s. 16. 509. Method of incorporation; powers. It shall be lawful for any persons in any city, town, or county of this state, under any name by them to be assumed, to associate for the purpose of organizing and establishing a homestead and building and loan association, and, being so associated, they shall, on complying with this subchapter, be a body politic and corporate, and as such be capable in law to hold and dispose of property, both real and personal; may have and use a common seal; may choose a presiding and other officers; may enact by-laws for the regulation of the affairs of such corporation, and compel the due observance of the same by fines and penalties; may sue and be sued, plead and be impleaded, answer and be answered in any court in this state, and do all acts necessary for the well ordering and good government of the affairs of such corporation, and shall exercise all and singular the powers incident to bodies politic and corporate Provided, that before any such corporation shall be entitled to the privileges of this subchapter it shall file with the clerk of the superior court of the county where such corporation is designed to act a copy of the certificate of incorporation of such corporation, signed by at least seven members, to be recorded in the office of such clerk, and shall pay a tax of twenty-five dollars to the clerk, which tax shall be paid over by the clerk to the treasurer of the county, to the use of the school fund of the county. The clerk shall certify a copy of the charter to the insurance commissioner. C. S., s. 5170; Rev., s. 3877; 1905, c. 435, s. 1. The General Assembly may require a corporation to pay a license tax for the privilege of carrying on its business, and forbid counties or other municipalities to exact any other license tax or fee.-Charlotte Building & Loan Ass'n v. Commissioners, 115 N. C. 410, 20 S. E. 526. 510. Amendments to certificate. Any addition, alteration, or amendment of the certificate of incorporation of any such corporation shall be signed, certified, and recorded as is provided in the preceding section. C. S., s. 5171; Rev., s. 3878; 1905, c. 435, s. 2. 511. Form of certificate. Substantially the following form shall be used by associations to be formed under this chapter: CERTIFICATE OF INCORPORATION. This is to certify that we, the undersigned citizens of the state of North Carolina, hereby associate ourselves into a building and loan association under and by virtue of the provisions of subchapter 1, entitled Building and Loan Associations, of chapter 93 of the Consolidated Statutes of North Carolina, and by this certificate do set forth: First. The name of said association is to be Second. The location where its business is to be transacted is in the in the county of and state of North Carolina, and the principal office of said corporation is to be at .street, in the No. of ...aforesaid. Third. The object for which said association is formed is to enable the subscribers hereto to assist each other, and all who may become associated with them, in making loans to its members only, and to enable them to acquire real estate, making improvement thereon and removing incumbrances therefrom by the payment of periodical installments, and to accumulate a fund, to be paid by its members who do not obtain loans for the purposes aforesaid when the funds of said association shall amount to the sum of ...dollars per share of the first and subsequent classes or series. Bribed before said association shall begin business shall be the incorporators is by each of them is as follows: Name in this association at any one time to be The number of shares subscribed for by and the number of shares subscribed for Number of Shares In witness whereof, we have hereto set our hands and seals, the..... day of A. D. 19.... (Seal.) (Seal.) (Seal.) (Seal.) (Seal.) Signed, sealed, and delivered in the presence of C. S., s. 5172; Rev., s. 3879; 1905, c. 435, s. 27. 512. When to begin business. Upon filing the certificate of incorporation with the clerk of the superior court of the county where the principal office of the corporation is located, and with the insurance commissioner, the company shall become a body politic and corporate, and shall be authorized to begin business, when licensed by the insurance commissioner. C. S., s. 5173; Rev., s. 3880; Code, s. 2297; 1907, c. 959, s. 1. 513. Chapter on corporations applicable. All of the provisions of law relating to private corporations, and particularly those enumerated in the chapter entitled Corporations, not inconsistent with this subchapter, or with the business of building and loan associations, shall be applicable to building and loan associations. C. S., s. 5174; Rev., s. 3882. 514. Charters validated. The charters of all building and loan associations heretofore organized are hereby in all respects validated and confirmed, and all such associations shall have the powers and privileges of associations formed under this subchapter. C. S., s. 5175; Rev., s. 3883; 1905, c. 435, s. 27. . ART. 2. SHARES AND SHAREHOLDERS. 515. Number of shares and entrance fee prescribed. Any corporation created under and by virtue of this subchapter shall have the power to declare in its certificate of incorporation the maximum number of shares of which the corporation shall consist to be in force at any time, the par value of the same, to prescribe the entrance fee per share to be paid by each shareholder at the time of subscribing, to regulate the amount of the installments to be paid on each share, and the time at which the same shall be paid and payable. C. S., s. 5176; Rev., s. 3887; 1905, c. 435, s. 3. 516. Different classes of shares; guaranteed dividends. Every building and loan association doing business in this state shall be authorized to issue as many series or classes and kinds of shares and at such stated periods as may be provided for in its charter or by-laws: Provided, the guaranteed dividends on paid-up or guaranteed stock shall be less than the association is earning, and may have the right to share in the dividends between the guaranteed and the earned per centum. C. S., s. 5177; Rev., s. 3889; 1905, c. 435, s. 6; 1907, c. 959, s. 3; 1919, c. 179, s. 3. 517. Certificate issued and payment enforced. Any such corporation shall have power to issue to each member a certificate of the shares held by him, and to enforce the payment of all installments and other dues due to the corporation from the members or shareholders by such fines and forfeitures as the corporation may from time to time provide in the by-laws or its certificate of incorporation. C. S., s. 5178; Rev., s. 3888; 1905, c. 435, s. 4. 518. New members admitted. Any person applying for membership or shares in any corporation after the end of a month. from the date of its incorporation may be required to pay, on subscribing, such sums or assessments as may from time to time be fixed and assessed in the manner provided by the corporation, in order to place such new member or shareholder on like footing with the original members and others holding shares at the time of such application. C. S., s. 5179; Rev., s. 3886; 1905, c. 435, s. 5. 519. Shareholders equally liable. All shareholders of the serial plan shall occupy the same relative position as to debts, losses, and profits of the association; but this provision shall not prevent any association from receiving dues in advance, allowing such a rate of interest for the anticipated payments of dues as may be agreed on by the directors. No series or class of stock shall be paid off until fully matured. C. S., s. 5180; Rev., s. 3884; 1905, c. 435, s. 7; 1907, c. 959, s. 2; 1919, c. 179, s. 2. Building & Loan § 42. In case of insolvency of a building and loan association, borrowing members should be charged with the amount actually received by them, with 6 per cent. interest, and credited with the amount paid by them, whether paid as fines, penalties or weekly dues.-Strauss v. Carolina Interstate Building & Loan Ass'n, 117 N. C. 308, 23 S. E. 450. Building & Loan § 34. A holder of stock in a building and loan association must share in the losses as well as the profits of the concern, and is liable for duly authorized assessments to cover the losses of the corporation.-New Bern B. & L. Ass'n v. Blalock, 160 N. C. 490, 76 S. E. 532. 520. Married women and minors as shareholders. Married women and minors of the age of twelve years and upwards are authorized and empowered to become shareholders in and buy, sell, hold, pay dues on, withdraw, transfer, and otherwise deal in the shares in any such association in the same manner and with the same powers, rights, and liabilities, force and effect as though such minors or femes covert were of full age or unmarried. C. S., s. 5181; Rev., s. 3885; 1903, c. 728; 1905, c. 435, s. 1. Husband & Wife § 98. A stockholder in a building association, who owes it for balance of money borrowed, though a married woman must, on the association becoming insolvent, contribute to the losses.-Meares v. Duncan, 123 N. C. 203, 31 S. E. 476. ART. 3. LOANS. 521. Manner of making loans; security required. At such times as the by-laws shall designate, not less frequently than once a month, the board of directors shall hold meetings at which the funds in the treasury applicable for loans may be loaned. No loans shall be made by such association to any one not a shareholder thereof, nor to any shareholder for an amount greater than the par value of the shares held by such shareholder. Borrowers shall be required to give real estate security, either by way of mortgage or deed in trust unincumbered, except by the prior liens held by such association, accompanied by a transfer and pledge to the association of the shares by reason of which he became entitled to obtain such loan, as collateral security for the repayment of the loan: Provided, that the shares of any such association may be received as security for a loan on such shares of an amount not to exceed ninety per centum of the amount paid in as dues on such shares: Provided further, that liberty loan bonds issued by the United States government may be received as security to an amount not exceeding ninety per cent of the face value of such bonds, and not exceeding the par value of the shares of stock held by the borrower; and any loans heretofore made by any such association upon the security of such liberty loan bonds, within said limits, are in all respects validated. C. S., s. 5182; Rev., s. 3890; 1905, c. 435, s. 8; 1907, c. 959, s. 4; 1919, c. 249. 522. Repayment at any time. Any member of such association who shall borrow from it shall have the right at any time prior to the maturing of the shares pledged as collateral for such loan to pay off and discharge his loan by paying the amount received by him, including the cost and expenses of making the loan, if the same has been deducted therefrom, with interest at the rate of six per cent per annum on the whole sum received by him to the date of settlement and all fines and dues then remaining |