president, shall be valid, and shall in no respect impair or affect the existing mortgage contract; and thereafter said borrowing member shall make the monthly payments on said loan in accordance with the terms of said agreement, and the sum of money previously so purchased by him may be resold by the bank at the same meeting. The borrower shall be required to give notice to the secretary before the sale, if he intends to re-buy his money. Nothing in this section shall be construed to exempt the re-borrower from paying the interest and premium for the current month on the loan made by him for the substitutution of which the new loan is made.

FINES, FORFEITURE OF SHARES, ETC.

(P. S., Chapter 117, Sections 15, 16.)

[As amended by Acts of 1882, Chapter 251, Acts of 1885, Chapter 121, Section 4, and Acts of 1896, Chapter 285.]

of shares.

SECT. 15. Members who make default in the payment Fines, forfeiture of their monthly dues, interest and premiums, shall be charged a fine not exceeding two per cent. a month on each dollar in arrears. No fines shall be charged after the expiration of six months from the first lapse in any such payment, nor upon a fine in arrears. The shares of a member who continues in arrears more than six months shall, at the option of the directors, if the member fails to pay the arrears within thirty days after notice, be declared forfeited, and the withdrawing value of the shares at the time of forfeiture shall be ascertained, and, after deducting all fines and other legal charges, the balance remaining shall be transferred to an account to be designated the Forfeited Share Account," to the credit of the defaulting member. Said member, if not a borrower, shall be entitled, upon thirty days' notice, to receive the balance so transferred without interest from the time of the transfer, in the order of his turn, out of the funds appropriated to the payment of withdrawals. All shares so forfeited or transferred shall cease to participate in any profits of the corporation accruing after the

Recovery of loan.

Fines.

Books of ac

count. Duties of treasurer, etc.

last adjustment and valuation of shares before said forfeiture.

SECT. 16. If a borrowing member is in arrears for dues, interest, premium or fines for more than six months, the directors may, at their discretion, declare the shares forfeited, after one month's notice, if the arrears continue unpaid. The account of such borrowing member shall then be debited with the arrears of interest, premium and fines to date of forfeiture, and the shares shall be credited upon the loan at their withdrawing value. The balance of the account may, and after six months shall, be enforced against the security, and be recovered as secured debts are recovered at law.

(Acts of 1895, Chapter 172, Section 1.)

No member of a co-operative bank whose shares are withdrawn, forfeited or retired, shall be charged with fines upon such shares in excess of the profits distributed thereto, and if no profits shall have been distributed to such shares no fines shall be charged thereon. Nothing herein contained shall prevent a borrowing member being charged with fines according to existing statutes upon interest and premiums in arrears.

BOOKS AND ACCOUNTS.

(P. S., Chapter 117, Section 17.)

SECT. 17. The general accounts of every such corporation shall be kept by double entry. All moneys received by the corporation from each member shall be receipted for by persons designated by the directors, in a pass-book provided by the corporation for the use of, and to be held by, the member; and said pass-book shall be plainly marked with the name and residence of the holder thereof, the number of shares held by him, and the number or designation of the series or issue to which said shares respectively belong, and the date of the issue of such series. All moneys so received shall be originally entered by the proper officer in a book to be called the

"cash-book," to be provided by the corporation for the purpose, and the entries therein shall be so made as to show the name of the payer, the number of shares, the number or designation of the series or issues of the particular share or shares so entered, together with the amount of dues, interest, premiums and fines paid thereon, as the case may be. Each payment shall be classified and entered into a column devoted to its kind. Said cash-book shall be closed after the termination of each stated meeting, and shall be an exhibit of the receipts of all moneys paid at said meeting. All payments made by the corporation for any purpose whatsoever shall be by order, check or draft upon the treasurer, signed by the president and secretary, and endorsed by the persons in whose favor the same are drawn. The name of the payee, the amount paid, and the purpose, object or thing for which the payment is made, together with its date, shall be entered on the margin of said order, check or draft. The treasurer shall dispose of and secure the safe keeping of all moneys, securities, and property of the corporation, in the manner designated by the by-laws, and the treasurer and secretary shall give such security for the faithful performance of their respective duties as the by-laws may direct.

PROFITS AND LOSSES.

(P. S., Chapter 117, Section 18.)

profits and

SECT. 18. The profits and losses may be distributed Distribution of annually, semi-annually or quarterly to the shares then losses. existing, but shall be distributed at least once in each year, and whenever a new series of shares is to be issued. Profits and losses shall be distributed to the various shares existing at the times of such distribution, in proportion to their value at that time, and shall be computed upon the basis of a single share fully paid to the date of distribution. Losses shall be apportioned immediately after their occurrence.

Guaranty fund to be reserved from profits.

Corporation

may buy and

GUARANTY FUND.

(Acts of 1885, Chapter 121, Section 2.)

At each periodical distribution of profits the directors shall reserve as a guaranty fund a sum not less than one nor more than five per cent. of the net profits accruing since the next preceding adjustment, until such fund amounts to five per cent. of the dues capital, which fund shall thereafter be maintained and held; and said fund shall be at all times available to meet losses in the business of the corporation from depreciation of its securities or otherwise.

REAL ESTATE: HOW ACQUIRED.

(P. S., Chapter 117, Section 19.)

[As amended by Acts of 1898, Chapter 247, Section 2.]

SECT. 19. Any such corporation may purchase at any sell real estate. sale, public or private, any real estate upon which it may have a mortgage, judgment, lien or other incumbrance, or in which it may have an interest, and may sell, convey or lease the real estate so purchased, and, on the sale thereof, may take a mortgage in common form thereon to secure the payment of the whole or part of the purchase money. All real estate so acquired shall be sold within five years from the acquisition of the title thereto : provided, however, that the board of commissioners of savings banks, may, upon the petition of the security committee of any such corporation and for good cause shown, grant an additional time for the sale of the same.

Powers of savings bank

SUPERVISION.

(P. S., Chapter 117, Section 20.)

SECT. 20. The commissioners of savings banks shall commissioners. perform, in reference to every such corporation, the same duties, and shall have the same powers, as are required of or given to them in reference to savings banks, and shall annually make report to the general court of such facts

and statements respecting such associations, and in such forms as they deem that the public interest requires. Every officer of such corporation shall answer truly all inquiries made, and shall make all returns required by the commissioners.

ANNUAL RETURNS.

(Acts of 1889, Chapter 159, Section 2.)

[As amended by Acts of 1895, Chapter 171.]

Penalty.

Every co-operative bank shall annually within thirty Annual returns. days after the last business day of October make a return to the commissioners of savings banks in such form as may be prescribed by them, showing accurately the condition thereof at close of business on said day, which return shall be signed and sworn to by the secretary and treasurer of such corporation. The president and five or more of the directors shall certify and make oath that the report is correct according to their best knowledge and belief. Such returns shall include all sums received and all sums disbursed up to the close of business on said day, except that sums received for dues, interest, premiums and fines on account of the next monthly meeting may be omitted. When a report is defective or appears to be erroneous, the board shall notify the bank to amend the same within fifteen days. Every co-operative bank neglecting to make the return required by this act on or before the time named therein, or to amend such report within fifteen days, when notified by the board so to do, shall forfeit five dollars for each day's neglect.

[CHAP. 361, ACTS OF 1896.]

AN ACT RELATIVE TO THE BONDS OF TREASURERS AND

EMPLOYEES OF SAVINGS BANKS AND INSTITUTIONS FOR

SAVINGS, AND CO-OPERATIVE BANKS.

SECTION 1. Whenever, under the provisions of section fourteen of chapter three hundred and seventeen of the