suit or proceeding instituted against him, that could have been made in the suit in which such decree, judgment or recovery was had. (Code 1916, c. 101.)

§ 23. Same: discharge of surety for failure to sue.-If such creditor or his representative shall not, in a reasonable time after such requisition, institute suit against every party to such contract who is a resident in this State, and not insolvent, and prosecute the same with due diligence to judgment and by execution, he shall forfeit his right to demand of such surety or his estate, and all his co-sureties and their estates, the money due by any such contract for the payment of money, or the damages sustained by any breach of the collateral condition, or undertaking specified as aforesaid. But the conditions, rights, and remedies against the principal debtor shall remain unimpaired thereby. (Code 1916, c. 101.)

§ 24. Remedies of surety making payment.-If any person liable as bail, surety, guarantor, or indorser, or any sheriff liable for not taking sufficient bail, or the heir or personal representative of any so liable, shall pay, in whole or in part, any judgment, decree, or execution rendered or awarded on account of such liability, the person having right of action for the amount so paid may, by motion in the circuit court of the county, obtain judgment or decree against any person against whom such right of action exists for the amount so paid, with interest from the time of payment, and five per centum damages on said amount. (Code 1916, c. 101.)

§ 25. Judgment by confession or default.-If any such surety (other than bail), or his heir or personal representative, shall confess judgment, or suffer judgment to go against him by default, without giving notice to his principal (if he be a resident of this State), or his personal representative, to defend the suit, and after such principal offers to defend the suit, and tenders counter security, approved by the court in which the suit is pending, the said principal, or his heirs or representatives, may have the benefit of every defense against the motion or suit of such surety, or his representatives against him, that he might have had against the creditor. And in all cases in which any

principal debtor, or his representatives or heirs, knowing of the pendency of any suit against his surety, or the heir or personal representative of such surety, shall not offer to defend such suit, he shall be precluded from making any defense to the claim of the surety, which he might have made against the suit of the creditor. (Code 1916, c. 101.)

§ 26. Insolvency of principal. If the principal debtor be insolvent, any surety, or his personal representative, against whom a judgment or decree has been rendered on the contract for which he was surety, may obtain a judgment or decree by motion, in the circuit court of the county, against any co-surety or his personal representative, for his share, in law or equity, of the amount for which the first mentioned judgment or decree may have been rendered; and if the same has been paid, for such share of the amount so paid, with interest thereon from time of such payment. (Code 1916, c. 101.)

CHAPTER 4.

LOAN AND MUTUAL INVESTMENT ASSOCIATIONS.

§ 1. Incorporation; powers.-Any number of persons, not less than nine, may form a building and loan association for the purpose of encouraging industry, frugality and home building, and saving among its members. Building and loan associations formed under this chapter shall have the right and power of loaning to its stockholders thereof, the moneys accumulated from time to time, as well as the right and power to purchase land or erect houses, and to sell, convey, lease or mortgage the same at their pleasure, to their stockholders, or others for the benefit of their stockholders. Such associations may acquire, hold, convey and encumber all such property, real and personal, as may be taken as security, or may be otherwise transferred to it in the due course of its business, and may secure the payment of loans and the performance of the other conditions upon which loans are to be made, or the payment of the purchase money for any property sold, by taking personal security, or by a mortgage or deed of trust upon real or personal property, or by a transfer or pledge of its stock. (Code 1916, c. 54.)

§ 2. Loans. Every such association shall have the power to provide by its by-laws for selling to the stockholders, who shall bid the highest premium therefor, the money in the treasury, or in default of bidders at or above a minimum premium, may award to a member the value of any shares held by him less such minimum premium; the minimum premium, and the mode of making the award to be fixed by the by-laws. Or such association may charge and receive the premium bid by a stockholder for the priority of right to such loans, in periodical installments; but the by-laws of every association shall set forth whether the premium bid for the prior right to a loan shall be deducted therefrom in advance, or be paid in periodical installments. But whether the premium be deducted from the loan, or paid in periodical installments, the transaction shall not be deemed usurious, although any and all the dues, fines, premium and interest, shall exceed the legal rate of interest on the amount of money received by the stockholders. (Code 1916, c. 54.)

§ 3. Dues, interest and fines.-Every such association may levy, assess and collect from its stockholders, periodical dues upon every share of its stock; the amount of such dues to be fixed by the by-laws; but no periodical payment to exceed two dollars upon each share; and said stock may be paid off and retired as the by-laws shall direct; and may levy, assess and collect from members to whom loans have been made, interest upon the par value of the shares so loaned; and may levy, assess and collect fines for the non-payment of periodical dues, or for failure to comply with or perform any other obligation or duty to the association. The amount of the respective fines shall be fixed by the by-laws, and they shall be imposed under regulations to be made by the by-laws; but such fines shall be uniform, and where they are imposed for default in the payment of dues, shall be in proportion to the amount of the dues for the failure to pay which they are imposed; but no member shall be fined more than once for the same default. (Code 1916, c. 54.)

§ 4. Repayment of loans; withdrawal; default.-A borrower from such association may repay the loan at any time; and in case of the repayment thereof before the maturity of the shares pledged for said loan, there shall be refunded to such borrower,

in case the premium shall have been deducted in advance, such proportions of the premium bid, as the by-laws may determine; but the borrower shall receive the withdrawing value of the shares pledged for said loan, and the shares shall revert back to the association. Stockholders withdrawing voluntarily shall receive such proportions of the profits of the association, or such rate of interest as may be prescribed by the by-laws. In case of default of a borrower to pay dues, interest or premium, for the period of three months, payment of the same, together with the full principal of the loan, may be enforced by proceedings on the securities according to law; and the money so received shall be paid into the treasury of the association; and if the moneys so recovered shall exceed the amount it would have required to repay the loan under the first part of this section, together with all the expenses incurred by the association, such excess shall be paid to such borrower. (Code 1916, c. 54.)

§ 5. By-laws. Every such association shall adopt by-laws, which shall embrace all the provisions of the four preceding sections, and such further provisions for its government and the management of its business, not inconsistent with these sections, as it may deem proper. (Code 1916, c. 54.)

§ 6. Supervision and examination by commissioner. All building and loan associations and mutual investment associations doing business in this state shall be subject to state supervision as follows: Every such association organized under the laws of this state, and desiring to operate within the state, shall file with the commissioner of banking a certified copy of its charter, constitution, and by-laws. Said commissioner shall carefully examine the same and if he find that they provide a just and equitable plan for the management of the association's business, he shall issue to such association a certificate of authority permitting it to begin business. But if he find the provisions of said charter, constitution and by-laws to be impracticable, unjust or inequitable, or oppressive to any class of shareholders, he shall withhold his certificate of authority. It shall not be lawful for any association hereafter organized under the laws of this state, for the purpose above set forth, to transact any business except the execution of its articles of incorporation, the adoption of its con

stitution and by-laws, and the election of directors and officers, until it shall have procured the certificate of authority above provided for, nor shall any amendment of the charter, constitution or by-laws of any such association become operative until a copy of the same shall have been filed, and a certificate of authority obtained, as above provided in regard to original charter, constitution and by-laws. Any such bank, association or trust company violating the provisions of this section shall be deemed guilty of a misdemeanor, and on conviction thereof shall be fined not less than five hundred dollars nor more than one thousand dollars, and in addition thereto the officer or officers of such association violating the provisions of this section shall be deemed guilty of a misdemeanor and on conviction thereof shall be fined not less than five hundred dollars nor more than one thousand dollars, and, in the discretion of the court, imprisoned in the county jail not more than six months. Every building and loan association or mutual investment association organized under the laws of this state, and operating within the state, shall at least twice a year, at such times as may be designated by the commissioner of banking, file in the office of said commissioner of banking within ten days after the receipt of his request for same, a statement verified by its president or secretary and approved by three of its directors, in such form as may be prescibed by said commissioner, setting out its actual financial condition and the amount of its assets and liabilities, and furnish such other information as to its affairs as the said commissioner may require, which reports, in the same form in which they are transmitted to the commissioner of banking, shall be printed and circulated among all the stockholders of the association. Every person who shall wilfully or knowingly subscribe or make, or cause to be made, any false statements or any false entries in any books of any association, last above mentioned, or exhibit false papers with the intent to deceive any person authorized to examine into the affairs of such association, or shall make, state or publish any false statement of the financial condition of such association, shall be deemed guilty of a felony and upon conviction thereof shall be fined not exceeding ten thousand dollars, and, in the discretion of the court, be imprisoned in the state penitentiary not less than one nor more than five years. (Code 1916, c. 54.)