three weeks, published at least once a week in a newspaper of general circulation in the city, town, or county where the principal place of business of such corporation is located. Such sale must be made at auction, under the direction of the secretary of the company. The corporation may be a bidder, and the shares must be disposed of to the highest bidder for cash. No defect, informality, or irregularity in the proceedings respecting the sale invalidates it, if notice. is given as herein provided. After the sale is made the secretary must, on receipt of the purchase-money, transfer to the purchaser the shares sold, and after deducting from the proceeds of such sale all installments then due, and all expenses and charges of sale, must hold the residue subject to the order of the delinquent subscriber. [See Stats. 1863-4, p. 492; 1867–8, p. 540, % 1.]

560. May borrow and loan Funds-How, and for what time. Homestead corporations may borrow money for the purposes of the corporation, not exceeding at any one time one fourth of the aggregate amount of the shares or parts of shares actually paid in, and the income thereof; no greater rate of interest must be paid therefor than twelve per cent. 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. [See Stats. 1870, p. 474, & 1; 1861, p. 567, 8 5.]

561. Minor children, wards, and married women may own stock. 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 earn

ings, or those of their children, voluntarily bestowed therefor, or from property bequeathed or given to them by persons other than their husbands. [See Stats. 1861, p. 567, 26.]

562. Forfeiture for Speculating in or Owning Lands exceeding two hundred thousand dollars. 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.

563. When Corporation is terminated, and how. 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, or 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 interests 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. [See Stats. 1861, p. 567, 7; 1870, p. 474, % 1.]

564. Payment of Premiums. 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. [See Stats. 1870, p. 474, 8 1.]

565. Annual Report to be published. 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. [See Stats. 1861, p. 567, 8 8.]

566. Publication in certain cases. 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.

An Act supplementary to an act entitled An Act to authorize the formation of Corporations to provide the Members thereof with Homesteads, or Lots of Land suitable for Homesteads, approved May twentieth, eighteen hundred and sixty-one.

Approved March 23, 1874.

SECTION 1. Any corporation formed under the act to which this act is supplemental, whose period of existence is not stated in its articles of incorporation to be ten years, may continue its corporate existence for ten years from the date of filing its articles of incorporation, upon complying with the provisions of this act.

SEC. 2. Any such corporation existing on the first day of January, eighteen hundred and seventy-four, may, at any time before its period of existence, as stated in its articles of incorporation, shall expire, continue its existence, as

stated in section one of this act, by a majority vote of its Board of Trustees at any meeting of such board, or by a vote of a majority of the stockholders, as the Board of Trustees may elect. A certificate of the action of the directors, signed by them and their secretary, when the election is made by their vote, or upon the written consent of the stockholders or members, or a certificate of the proceedings of the meeting of the stockholders or members, when such election is made at any such meeting, signed by the chairman and secretary of the meeting and a majority of the directors, must be filed in the office of the clerk of the county where the original articles of incorporation are filed, and a certified copy thereof must be filed in the office of the Secretary of State; and thereafter the corporation shall continue its existence under the provisions of this act, and shall possess all the rights and powers, and be subject to all the obligations, restrictions, and limitations prescribed by the act of which this is supplementary.

SEC. 3. This act shall take effect from and after its passage.

TITLE X.

SAVINGS AND LOAN CORPORATIONS.

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

572. Capital stock, and rights and privileges thereof.

573. No dividends, except from surplus profits. To contract no

liability, except for deposits.

574. Property which may be owned by corporations, and how dis

posed of.

575. Married women and minors may own stock in their own right. 576. May issue transferable certificates of deposit. Special cer

tificates.

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."

571. May Loan Money. On what terms, how, and to whom, and how long. 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 six years. [See Stats. 1862, p. 199, ¿? 4, 5; 1864, p. 158, 2.]

They are "Banks." The receiving of deposits by a chartered company, and loaning and investing the same for the benefit of depositors, is a business of banking. Banks, in the commercial sense, are of three kinds: 1. Of deposit; 2. Of discount; 3. Of circulation. It may be that all or any two of these functions are exercised by the same association; but there are banks of deposit, without authority to make discounts or issue a circulating medium. Thus, an institution for receiving savings, though established for the encouragement of thrift among laborers and others, and required by the charter to invest all moneys and divide among depositors all the net income, without compensation to its managers, may be regarded as a bank; and such an institution is "a bank or company engaged in the business of banking," within the purview of the United States internal revenue laws. (Bank for Savings v. The Collector, 3 Wall. 495.)

572. Capital Stock-Rights and Privileges thereof. When savings and loan corporations have a capital stock specified in their articles of incorporation, certificates of the ownership of shares may be issued; and the rights and privileges to be accorded to, and the obligations to be imposed upon, such capital stock, as distinct from those of the depositors, must be fixed and defined, either in the articles of incorporation or in the by-laws. [See Stats. 1862, p. 203, 17.]

Depositors of money in a savings society are not as such, stockholders or members of that society. (Savings Bank of New London v. New London, 20 Conn. 111.)

573. No Dividend except from surplus profits—To Contract no liability, except for deposits. The directors of savings and loan corporations may, at such times and in such manner. as the by-laws prescribe, declare and pay dividends of so much of the profits of the corporation, and of the interest arising from the capital stock and deposits, as may be appropriated for that purpose under the by-laws or under their agreements with depositors. The directors must not contract any debt or liability against the corporation for any