every such credit, the amount of such loan shall forthwith become reduced in accordance with the amount so applied as a credit, and such shareholders shall not thereafter be held liable for any greater amount than shall be remaining due after the application of such credits except for arrearages and penalties occasioned by the shareholder's own default. deemed SEC. 11. Corporations organized under this act being of the Fines, not nature of co-operative associations, therefore no fines that usurious. may accrue to the said corporation, according to the provisions of this act, shall be deemed usurious, and the same may be collected as other debts of like amount may be collected by law in this state. deputies, etc., how SEC. 18. The secretary of state shall have supervision of all Supervision. building and loan associations doing business in this state and shall be charged with the execution of the laws of this state relating to such associations. He may employ the necessary May employ deputies, assistants, clerks and examiners to assist him in etc. the discharge of the duties imposed upon him. He shall re- Bond. quire from each deputy, assistant, clerk and examiner appointed by him a bond of a surety company for the faithful discharge of his duties, in an amount not less than five thousand dollars. He shall fix the salaries and prescribe the duties of the deputies, assistants, clerks and examiners. The Salaries, salaries, premiums on bonds and the actual and necessary paid. traveling expenses of the deputies, assistants, clerks and examiners and all other expenses incurred by the secretary of state in the performance of the duties imposed upon him by law shall be paid out of the examination fees and other fees required to be paid by building and loan associations, except those arising under section four-a of act number eighty-five, public acts of nineteen hundred twenty-one, and the total of such payments shall in no case exceed the total sum of such fees. All expenses connected with the duties of the secretary of state when audited by the state board of auditors shall be paid by the state treasurer on the warrant of the auditor general. of associa SEC. 20. Once in each year, or oftener, if in the opinion of Examination the secretary of state it shall be necessary, the secretary of tions. state shall make, or cause to be made, an examination into the affairs of all building and loan associations doing business in this state. Such examinations shall be full and complete, and in making the same the examiner shall have full access to, and may compel the production of all books, papers, and moneys, etc., of the association under examination, and may administer oaths to and examine the officers of such association, or any other person connected therewith, as to its business and affairs. forfeited. SEC. 23. If a shareholder be in arrears in the payment of When shares dues upon unpledged shares, the board of directors may, if the shareholder fails to pay the amount in arrears within thirty days after notice, declare said shares forfeited. The withdrawal value of said shares at the time of forfeiture shall be Proviso. Expenses. Reserve fund. Losses. Apportionment of earnings. Proviso. Further credit to reserve. Fees, to whom paid, etc. Proviso, examination fee. Further proviso. ascertained and paid to such shareholder upon such notice as shall be required of a withdrawing shareholder: Provided, That fines for the non-payment of dues or interest shall not exceed one per cent per month on each dollar in arrears. SEC. 24. The gross earnings of every building and loan association shall be ascertained at least once in each year from which shall be deducted a sufficient amount to meet the operating expenses of such association and from said earnings only shall such expense be paid. From the balance of the earnings there shall be set aside at least one per cent annually as a reserve fund until such fund reaches five per cent of the assets. If at any time thereafter said reserve fund falls below five per cent of the assets it shall be replenished by annual appropriations from the net earnings as herein before provided. From said reserve fund shall be paid all losses sustained by such association from depreciation of securities or otherwise. After providing for the expense of the association, and the reserve fund as aforesaid, the residue of such earnings shall be transferred and apportioned to the credit of shareholders as the association by its by-laws shall provide: Provided, That any association may establish an undivided profit fund but it shall not in any case exceed three per cent of the total assets of the association. Whenever the report of any association shows that its reserve fund is less than fifty per cent of the book value of its real estate, except that held for office purposes, and that sold on land contract, such association shall set aside to its reserve fund, in addition to the one per cent heretofore provided, at least four per cent of its net earnings, until such fund shall reach at least fifty per cent of the book value of its real estate. SEC. 29. Every building and loan association organized under the laws of this state shall be subject to and shall pay to the secretary of state the following fees, which fees shall be paid into the state treasury, to-wit: For making the annual examination herein provided, one hundredth part of one per cent of the gross amount of assets of such association, which fee shall be paid at the time of filing of its annual statement: Provided, That the examination fee of any association shall not be less than twenty dollars: Provided further, That the expenses incurred and services, other than examinations, performed especially for such association shall be paid in full by such association. This act is ordered to take immediate effect. [No. 208.] AN ACT to amend sections two and six of act number eightyone of the public acts of nineteen hundred three, entitled "An act to provide for the care and preservation of cemetery lots," being sections two thousand three hundred ninetyeight and two thousand four hundred two of the compiled laws of nineteen hundred fifteen. The People of the State of Michigan enact: amended. SECTION 1. Sections two and six of act number eighty-one Sections of the public acts of nineteen hundred three, entitled "An act to provide for the care and preservation of cemetery lots," being sections two thousand three hundred ninety-eight and two thousand four hundred two of the compiled laws of nineteen hundred fifteen, are hereby amended to read as follows: SEC. 2. The county in which any such money shall have County may been so deposited shall have the first privilege of borrowing deposit. said money, or any part of it, and afterward any person, firm or corporation, in the discretion of the county treasurer, by paying interest at the rate of not less than three per cent per annum. The county treasurer may consolidate such funds for investment, with the approval of the finance committee of the board of supervisors. borrow SEC. 6. Every county treasurer having such funds shall Annual make an annual report to the board of supervisors at its Jan- report. uary session of the total amount of money so deposited, how invested, and the amount of interest received therefrom. Approved May 6, 1925. [No. 209.] AN ACT to authorize any incorporated village having a popu lation of one thousand or less, which may be the county seat of any county in this state, to borrow money, and issue bonds therefor, for the purpose of buying or building a courthouse or jail or both for said county in such village, upon approval of the electors of said village. The People of the State of Michigan enact: SECTION 1. Any incorporated village having a population May bond of one thousand or less, which is the county seat of any coun- for jail, etc. ty in this state, is hereby authorized to borrow on its faith and credit, not to exceed two per cent of the assessed valuation of such village for the purpose of buying or building a courthouse or jail or both for said county in said village. The board of trustees of said village may issue the bonds of the village therefor, in such denominations as it may deem best, at such rate of interest not exceeding the legal rate of interest as it may determine necessary, payable annually, the first payment to be not more than three years from the date of issue, and no payment to be less than one-third of the largest payment, the last payment being due not more than thirty Bonds, who years from date of issue. Such bonds shall be signed by the president and clerk of said village and sealed with the village seal. The bonds shall be negotiated by and under the direction of the board of trustees of the village, and the proceeds shall be expended under the general supervision and direction of said board of trustees. to sign. May raise by tax. Referendum. Form of ballot. SEC. 2. It shall be the duty of the board of trustees of the said village, to raise by tax, on the taxable property of said village, all such sums from time to time as may be necessary to pay both the principal and interest of said bonds as they may fall due. SEC. 3. No money shall be borrowed or bonds issued for the purposes mentioned in this act unless the question of borrowing money and issuing the bonds therefor is submitted to a vote of the qualified electors of such village. Such questions shall be submitted upon a resolution of the board or council of such village, and if three-fifths of the qualified electors voting thereon shall vote in favor thereof, then the council shall proceed to borrow the money and issue bonds as directed. The vote on the question of borrowing money shall be by ballot which shall be in substantially the following form: "Official ballot. "Vote on the proposition of borrowing dollars and issuing the bonds of the village therefor, such money to be used to buy or build a county courthouse or jail or both in said village. "Shall the village of and issue the bonds of the village therefor, such money to be used to buy or build a county courthouse or county jail or both, in said village? Yes () No ()." The election shall be called and conducted in the same manner as other elections in said village are held, and the moneys shall be borrowed and bonds issued therefor in all respects except as herein provided in accordance with the provisions of the charter of the village issuing such bonds. Approved May 6, 1925. [No. 210.] AN ACT to require the bonding of persons, firms and corporations engaged in the business of soliciting accounts for collection or in the collection of accounts and to provide a penalty for the violation of this act. The People of the State of Michigan enact: bonding of. SECTION 1. It shall be unlawful for any person, firm or Collection corporation engaged in the business of soliciting accounts for agency, collection or in the collection of accounts for others, to engage in such business without first giving a bond to the people of the state of Michigan, executed by two sureties, said bond to be approved by the prosecuting attorney or circuit judge of the county where such collection agency is located, or by a surety company duly authorized to do business in this state, in the sum of five thousand dollars, conditioned upon the faithful accounting of all moneys collected upon accounts entrusted to such person, firm or corporation. Said bonds Filing. shall be filed in the office of the county clerk of the county wherein such person, firm or corporation is located and shall be first approved by the county clerk before the same shall be filed: Provided, however, That if such person, firm or Proviso, corporation is a non-resident of the state such bond shall be filed with the secretary of state. The sureties shall justify their responsibility in unencumbered real estate in twice the amount herein prescribed. Said bond shall be for the use and benefit of all persons damaged by the wrongful conversion of any moneys by such person, firm or corporation and any person so injured or aggrieved may bring suit upon such bond. At the time of filing said bond said person, firm Certificate, or corporation shall also file a certificate containing the what to connames and addresses of all persons interested in or conducting such business. non-resident. tain. SEC. 2. This act shall not apply to any person admitted When act to the practice of law in this state or to any justice of the not to apply. peace or to any corporation, person or persons established as and doing a banking or trust business or to persons acting in a fiduciary capacity. SEC. 3. The term "accounts" shall be construed to mean "Accounts" any claim or demand written or unwritten, expressed or im- defined. plied, growing out of the sale of goods, wares and merchandise, or the performance of any work, labor or service for another. alty. SEC. 4. Any person, firm or corporation engaged in the Misdebusiness of soliciting accounts or collecting accounts as meanor, penherein defined, without first having filed a bond as hereinbefore provided, shall be guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine of not less than twenty-five dollars nor more than one hundred dollars, or |