make a statement to that effect under their hands and seals, duly acknowledged before some officer in the manner provided for the acowledgment of deeds. Such statement shall set forth the name of the proposed association, the capital stock to be accumulated, its location and the duration of the association, which statement shall be filed in the office of the Auditor of Public Accounts. The Auditor of PubAc Accounts shall thereupon issue to such persons a license as commissioners to open books for subscription to the shares of stock of said Association at such time and place as they may determine: Provided, however, that the Auditor of Public Accounts may withhold the issuing of a license to commissioners to open books for subscription to the shares of stock of said association if he is not satisfied as to the personal character and standing of the officers or directors to be elected, or if the proposed location would not warrant the issuance of a charter, but no charter shall be issued to two associations having the same or similar

Lames.

§ 3. MUST ORGANIZE AND DO BUSINESS UNDER THE ACT-PENALTY.] It shall be unlawful for any company, association, corporation, organization or co-partnership, assuming to be a company or corporation, to transact business in this State for the purpose of receiving or accepting moneys from their subscribers, contributors or members, in installments for the purpose of creating a fund with which to make Loans to members only, unless such company, association, corporation, organization or co-partnership is organized and doing business under this Act, and whoever violates any provision of this section shall be Danished by a fine of not more than one thousand dollars ($1,000). The same may be recovered in any court having competent jurisdiction. in the name of the People of the State of Illinois on the relation of the Auditor of Public Accounts for the benefit of the county wherein such person or persons, association or corporation is located."

§ 4. MEETING TO ORGANIZE.] That whenever two hundred shares or more of the capital stock shall be subscribed in cities, towns or villages of fewer than five thousand inhabitants; and five hundred shares or more in cities, towns or villages of five thousand inhabitants or more, the commissioners shall convene a meeting of the subscribers for the purpose of electing at least five subscribers as directors, adopting bylaws and the transaction of such other business as shall come before them. Notice thereof shall be given by depositing in the postoffice, properly addressed to each subscriber, at least ten days before the time. fixed, a written or printed notice, stating the object, time and place of such meeting. Directors of such corporations organized under this Act shall be elected, classified and hold their office for such period of time as is provided by general law governing the election and classifcation of directors, trustees or managers of corporations.

§ 5. ORGANIZATION COMPLETED.] The commissioners shall make a full report of their proceedings, including therein a copy of the notice. provided for in the foregoing section, a copy of the subscription list, a copy of the by-laws adopted by the association, and the names of the directors elected and their respective terms of office, which report shall be sworn to by at least a majority of the commissioners and shall be

filed in the office of the Auditor of Public Accounts, and the Audit of Public Accounts shall submit said by-laws to the Attorney Genera who shall report whether such by-laws conform to the requirements this Act, and if approved by the Attorney General, the Auditor Public Accounts shall thereupon issue a certificate of the complete orga ization of the association, making a part thereof a copy of all pape filed in his office in and about the organization of the association, du authenticated under his hand and seal of office; and the same shall b recorded in the office of the recorder of deeds in the county in whic the principal office of the association is located. Upon recording sai copy the association shall be deemed fully organized and may procee to business.

Unless any such association shall organize and proceed to busines as provided in this Act within six months after the date of such licens the license shall be deemed revoked and all proceedings thereunder voi All subsequent amendments or alterations of said by-laws shall be sub mitted to the Auditor of Public Accounts and approved by the Attorne General, and be recorded in like manner as the original by-laws befor the same shall become operative; and only such by-laws as shall hav been submitted, approved and recorded as herein provided shall b deemed operative.

§ 6. CORPORATE RIGHTS.] Corporations formed under this Ac shall be bodies corporate and politic for the period for which they ar organized; may sue and be sued; may have a common seal, which the may alter or renew at pleasure.

7. DIRECTORS OFFICERS.] The corporate powers shall be ex ercised by a board of directors of not less than five (5) in number, al of whom shall be bona fide shareholders in such association and resi dents of the State of Illinois. The officers shall consist of a president vice-president, secretary, treasurer and such other officers as the by laws shall provide, to be elected at the annual meeting of the directors The duties of the officers, their terms of office, the time and manner of their election, the manner of filling vacancies, the time of holding periodical meetings of the officers and shareholders, the manner of calling special meetings not provided for in this Act, the qualification of electors, and the manner of voting, shall be determined by the bylaws, when not provided for in this Act. Unless the compensation of the officers, directors and committees shall be provided for in the bylaws, the directors shall fix and determine the same. The directors shall have all such powers not enumerated herein as are necessary and proper to enable such association to carry out the purpose of its organization.

§ 8. CORPORATE EXISTENCE NOT TO CEASE ON FAILURE TO ELECT, ETC.] No corporation or association, created under this Act, shall cease or expire from neglect on the part of the corporation to elect officers at the time mentioned in their charter and by-laws, and all officers elected by such corporation shall hold their offices until their successors are duly elected.

$ 9. OFFICERS' BONDS.] Every person appointed or elected to any position requiring the receipt, payment, management or use of

money belonging to such association shall, within thirty (30) days after such appointment or election, become bonded with two or more good and sufficient sureties or in some good and responsible fidelity insurance company, in such sum as the directors shall require or approve. Such bonds shall be executed annually

and shall be filed with the Auditor of Public Accounts of this State within ten days next after the approval thereof by the board of directors, and the fee for filing same shall be one dollar ($1.00). Such bond shall be sufficient in amount to protect the association from loss by reason of malfeasance in office or failure to faithfully perform and discharge the duties of his position. No officer or employe who is required to give bond, shall be deemed qualified to enter upon the discharge of his duties until his bond shall have been approved by a majority of the board of directors by a written endorsement thereon and filed with the Auditor of Public Accounts as herein required. Any officer or employe who shall neglect or refuse to file such bond at the time and manner as herein provided, shall be subject to a fine of not less than twenty-five dollars ($25.00) nor more than two hundred dollars ($200.00) and his office or position shall become vacant and shall be filled in the manner herein or in the by-laws provided. Such fine may be recovered in any court having competent jurisdiction in the name of the People of the State of Illinois on the relation of the said Auditor, for the benefit of the county wherein the said association is located, or in which such officer or officers may reside.

$10. CAPITAL TO BE ACCUMULATED.] The capital to be accumulated shall be divided into shares having an ultimate value of one hundred dollars ($100.00) each. The shares shall be deemed to be personal property in the hands of the members, transferable upon the books of the association in the manner provided in the by-laws. Each shareholder shall pay to said association as a contribution to the capital thereof, the sum fixed as dues for each and every share held by him, until each share shall reach the ultimate value thereof. The shares may be issued as required or at certain periods designated in the by-laws, or in series, and subdivided into classes, each series or class providing a different payment of dues, payable in such amount or amounts, and at such time or times as the by-laws shall provide. Any such association, if the by-laws shall so provide, may issue shares with a minimum payment, or with a single payment and upon such single payment shares it shall be lawful for such association to make agreements with the holders thereof to waive participation in the general profits of the association in consideration of a fixed annual per cent of profit or interest to be paid, which shall in no event exceed the net earnings of the association. New shares may be issued in lieu of any shares withdrawn, redeemed, cancelled or matured, providing the ultimate value of the total number of shares outstanding at any one time shall not exceed the authorized capital stock of the association. All shares heretofore issued by any association upon which installments have been paid in advance, together with the interest allowed, or paid thereon, are hereby legalized and validated. Every share shall be subject to a lien for the payment of unpaid installments

and such other charges as may be lawfully incurred thereon under the provisions of this Act, and the by-laws may prescribe the manner of enforcing such lien.

All funds of the association shall be deposited in the name of the association in such bank or trust company as may be designated as depository by the treasurer and approved by the board of directors.

§ 11. POWER TO BORROW MONEY.] The directors shall have power to borrow money for such temporary uses and purposes of the association as the exigencies of the business may demand and as are not inconsistent with the objects of the association. To secure such loans, the directors may cause the obligation or obligations of the association to be issued therefor, bearing interest at not to exceed the then legal contract rate. No such loan or loans shall have a longer duration than one year nor shall the aggregate amount of such outstanding indebtedness at any one time exceed ten per centum of the assets of the association. Before any money shall be borrowed, the board of directors shall first, by a majority vote, pass and record a resolution to that effect.

§ 12. MATURED SHARES.] Whenever any shares reach the value of one hundred dollars ($100.00) each, either by the payment of dues, the addition of regular dividends, or the addition of interest allowed, they shall be deemed to be matured, and all payments of dues thereon shall cease, and the owner thereof or his assignee, shall be paid out of funds of the association the matured value thereof, in the manner provided for voluntary withdrawals. With the consent of the directors, there may be issued in lieu of such shares matured stock certificates upon which the interest to be paid shall not exceed the actual net earnings of the association, payable at such times and in such manner as may be expressed in said certificate. Provided, that at no time shall the aggregate amount of such shares outstanding exceed twenty per centum of the assets of the association.

§ 13. WITHDRAWALS, VOLUNTARY.] If the by-laws shall so provide, any member desiring to withdraw all or any part of the credit on his shares from any association doing business in this State, may be required to make a written application which shall be received and filed in numerical order, and payments upon the same shall be made in the order in which they are filed. Upon withdrawal such member shall be entitled to receive the full amount of dues paid in and such interest thereon as fixed in the by-laws, or such proportion of the profits apportioned thereto as the board of directors may, from time to time, by resolution determine, less such charges of the character enumerated in this Act as may be due thereon; provided, that the amount of such interest or profits paid on withdrawals shall not exceed the actual earnings of the shares sought to be withdrawn; provided, further. that at no time shall more than one-half of the funds in the treasury of the association be applicable to the demand of withdrawing members or the payment of matured shares, without the consent of the board of directors: provided, further, that any member having pledged his or her shares as security for an advance, without other security, may withdraw the same and receive the evidence of indebtedness given for

such advance and such balance in cash, if any, as may be to the credit of such shares, but such withdrawal shall be subject to the same regulations in all other respects as in the case of shares not pledged. No such association shall be permitted to carry for any member any demand, commercial or checking account. Nothing in this section shall prevent members from withdrawing funds by non-negotiable orders.

§ 14. WITHDRAWALS, INVOLUNTARY.] The directors may, in their discretoin, under the rules made by them in conformity with the by-laws, retire the unpledged shares, in the order of the issue of such shares, by enforcing withdrawals of the same, and the owners shall be paid the full value of their shares, as determined at the last preoding distribution of profits, together with all dues paid since such istribution, less any unpaid fines; provided, that all shares which Lave reached matured value and all single payment shares, that may he outstanding, shall be first retired under the provisions of this Act. $15. ADVANCE ON SHARES-BALANCE SETTLEMENTS.] Any member who shall have obtained a loan or advance on his shares, who shall have given real estate as security, may at any time upon giving thirty days' previous notice in writing, repay the same. On settlement such member shall be charged with the full amount of such loan r advance, together with any and all arrearages due thereon, or on the shares pledged or appertaining to the security given, and shall therepon be allowed as a credit the withdrawal value of the shares pledged security, together with such other credits as may be returnable on account thereof, and the balance shall be received by the association in full settlement and discharge of such loan or advance; provided, that all settlements made in periods intervening between stated monthly meetings of the directors shall be made as of the date of the stated monthly meeting next succeeding such settlement; provided, also, that any member electing to repay his loan or advance may, in lieu of reaying the same in full, elect to repay the same in part in even hundreds of dollars in cash, or he may elect to have applied as a credit on the amount of such loan or advance the then withdrawal value of the shares upon which such loan or advance may then be predicated; and thereupon the said shares shall be and become cancelled in the proportion of one share for each one hundred dollars so applied as a credit, and the remaining uncancelled shares and the remaining credit shall be transferred to and held as advanced or pledged shares of the then current series or date, and the obligation evidencing such loan advance, and the mortgage or other security given to secure the same, shall not in any wise be prejudiced by any such transfer, whether such transfer shall have been provided for in the obligation evidencing such loan or advance and the mortgage securing the same or not; and after the application of every such credit the amount of such loan or advance shall forth with be and become reduced in accordance with the amount so applied as a credit, and such advanced shareholder 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.