APPENDIX. Wisconsin Statutes of 1898, Chapter 93, as amended by the Laws of 1899, RELATING TO Mutual Building and Loan Associations. WISCONSIN STATUTES OF 1898. Chapter 93. MUTUAL BUILDING AND LOAN ASSOCIATIONS. Local and Foreign. Section 2009. A corporation for the purpose of raising money to be loaned among its members shall be known as a building and loan association; if organized under the laws of this state, as a local association, and if under the laws of any other state or territory, as a foreign association. The words building and loan association shall form part of the name of every such local association hereafter organized, and no corporation not organized under these statutes shall be entitled to use a name embodying said words, except that corporations now existing may continue their present names. Power to borrow money. There was nothing in ch. 93, Ann. Stats., which prohibited a building association organized and incorporated under it from borrowing money, and in the absence of anything to that effect in its articles of incorporation or by-laws it had the same borrowing powers as other corporations, and might exercise them when it was reasonably necessary for it to do so in order to carry out its purposes. Hence on the maturity of a series of stock, whereby non-borrowing members were entitled to payment for their shares, the association might, instead of accummulating funds for the purpose of paying them, borrow money to pay such shares. If money was loaned pursuant to proper action by the regular authorities of the association the obligation to pay bound it, though the funds were used for a different purpose than that for which they might be borrowed, the lender being without knowledge of the intention to use them unauthorizedly. The power to borrow money implies the power to secure its payment by assigning bonds and mortgages given the association, though they were obtained from the holders of other series of stock than that which was payable. A want of power to make a loan cannot be alleged by an association after the money has been applied to one of its legitimate purposes: Norht Hudson Mut. B. & L. Ass'n v. First Nat. Bank, 79 Wis., 31. Incorporation. Section 2010, Such local associations may be organized and conducted under the general laws relating to corporations except as herein provided; but the articles of incorporation, amendments thereof and all papers relating thereto shall be filed with the bank examiner, who may issue the certificate of incorporation; but the same shall not issue until a verified copy of the by-laws adopted by the association shall be filed with him nor until the articles and by-laws shall have been approved by the attorneygeneral; and until such certificate be issued no such association shall have legal existence and only such by-laws, alterations and amendments thereof as shall have been so filed and approved shall be deemed operative. The fee for said certificate shall be ten dollars, for filing amendments to the articles five dollars, which shall be paid to the bank examiner, and all fees received shall be paid into the state treasury. Powers. Section 2011. Such local associations shall have power: 1. To issue stock to members; to assess and collect from members fees, dues, fines, interest, premiums and other charges, and the same shall not be held to be usurious; to permit or force members to withdraw all or part of their stock; to make loans to members; all upon such terms and conditions as may be provided in the by-laws. 2. To borrow money for temporary purposes, not inconsistent with the objects of the association, and issue its evidences of indebtedness therefor, but for no longer term than one year and not exceeding in the aggregate amount one-fifth of the assets on hand. 3. To acquire, by purchase or otherwise, only such real estate as may be necessary for the protection or enforcement of its securities and the collection of any claims or debts due to it; and all the same shall be sold within ten years from acquiring title thereto. 4. To delegate authority to its directors to alter or amend its by-laws under such restrictions and limitations as it may deem proper. 5. To exercise all such powers as are necessary and propei'to enable them to carry out the purposes of their organization. Capital; series; paid up stock. Section 2012. The capital stock of any such association shall not exceed five million dollars; the same may be issued in one or more successive series in such amount, in the absence of a provision in the by-laws, as the directors may determine, but no series shall exceed five hundred thousand dollars nor one-tenth of the aggregate capital stock. The capital stock shall be divided into shares of not less than twenty-five dollars nor more than two hundred dollars each, payable in periodical installments, called dues, not exceeding two dollars each per share; except, that when the demand for loans exceeds the income of the association applicable for loans, then the association may issue its paid up stock to an amount sufficient to meet such demand for loans, but no person shall become the owner of shares exceeding in par value the sum of twenty-five hundred dollars. When such association shall accumulate funds in excess of its requirements for loans, then such paid up stock shall be retired in such manner as the by-laws provide or as the board of directors may determine. Cancellation of stock; interest on prepaid dues. Section 2013. All shares withdrawn, forfeited, retired or surrendered shall be cancelled and become the property of the association, and in lieu of the same new shares may be issued in any subsequent series. Unpaid installments and other charges upon shares shall be a lien thereon, enforceable as in the by-laws prescribed. Payment of dues or interest may be made in advance, but no interest shall be allowed therefor exceeding six per cent. per annum nor for a longer period than one year. Forfeiture of shares. Section 2014. If a member be in arrears for more than six months for dues, interest or premiums, his shares, at the option of the directors, shall be declared forfeited. The withdrawal value of the shares at the time of the first default shall be ascer tained and all fines and other charges deducted therefrom and the balance paid to such member, unless he be a borrower, in which case such balance shall be applied on his loan. All shares so forfeited shall cease to participate in any profits of the asso |