§ 7. Same: time and manner of examination; insolvency.-At least twice in every year the commissioner of banking, either in person or by competent assistant, shall make a thorough examination of the books and affairs of every association mentioned in the next preceding section of this act. He shall carefully examine all notes and mortgages and all other assets of the concern, and shall ascertain the full amount of its liabilities. He shall see that the books are kept properly posted and balanced, and that complete trial balances are struck at regular intervals. If at any time he shall find one of these institutions in an insolvent conditions, he shall deal with it according to the manner prescribed in section 26, c. 1 hereof. (Code 1916, c. 54.)

§ 8. Foreign associations and trust companies.-It shall be unlawful for any foreign building and loan association, or mutual investment association or trust company to transact any business n this state, directly or indirectly, without first procuring a certificate of authority from the commissioner of banking. Before obtaining such certificate such foreign association shall furnish the commissioner of banking an itemized statement of its financial condition and all such other information touching its affairs as the said commissioner may require, which statement and information shall be verified by the oath of the president or secretary of the association. Such foreign association shall also file with the commissioner of banking a certified copy of the laws. of the state, territory or government under which it is incorporated, and of its constitution and by-laws and all amendments thereto; and shall appoint an attorney in each county in which it transacts or solicits business, who shall be a resident of such county. It shall file with the commissioner of banking a written instrument, duly signed and sealed, authorizing such attorney of such association to acknowledge service of process in behalf of such association, consenting that the service of process, mesne or final, upon such attorney shall be taken and held as if served upon the association, according to the laws of this or any other state, and waiving all claim or right of error by reason of such acknowledgment of service. If, after examination of such statement, and certified copy of instruments, and after such association shall have complied with the provisions of this act with reference to the appointment of an attorney or attorneys, the

commissioner of banking shall be satisfied that said association is solvent and that the capital and investments are secure, and that the laws, charters, articles of incorporation, constitution and by-laws governing it afford as ample protection to the interests of its members as is afforded by the laws of this state to members of associations chartered by and doing business in this state, he may grant such an association a certificate of authority permiting it to transact business in this state until the thirtyfirst day of the next succeeding December; but the same statements and the same certificates shall be renewed every year as long as such association shall continue to do business in this state; and for every certificate issued the commissioner of banking shall collect a sum of twenty-five dollars and pay the same into the treasury of the state. Any person, agent or company doing business or attempting to do business in this state for any foreign building association, mutual investment company or trust company, which shall not at that time be a holder of a valid certificate of authority, as provided for in this act, 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 for each and every offense. (Code 1916, c. 54.)

§ 9. Contingent fund; permit from banking commissioner. It shall be lawful for a building and loan association to set aside. in its treasury out of the dues, fines, interest and premiums paid by its stockholders, a contingent fund which shall be used only for the purpose of paying losses and necessary expense incurred in the maturing of any of its series of stock, and for the purpose of stabilizing and making equal, as near as may be, the time of maturity of all of said series; but said contingent fund shall at no time exceed eight per centum of the outstanding loans. All building and loan associations, incorporated or unincorporated, and all persons, firms, partnerships, associations, trustees, or combinations of persons whatsoever, which or who transact a building and loan business, or a business of like kind or character, or where by its, or their, charter, constitution, bylaws, or by a declaration of trust, or other device, or by a contract or agreement, the members or customers are required to pay weekly, monthly or regular installments to a common fund or series, from which fund or series loans are made to said mem

bers, customers or to others, for the purpose of building homes or buildings, purchasing building sites, paying off liens or debts. against real estate, or for other purposes, shall obtain from the commissioner of banking a permit or certificate of authority, before doing any business in this state directly or indirectly which permit or certificate of authority shall be given only and in the same manner and under like conditions, regulations and discretion, and upon the filing of like papers, documents and statements as set out in section 78-a (8) of this chapter, requiring foreign building and loan associations to obtain certificate of authority before beginning business. Failure to procure such permit or certificate of authority before beginning or continuing business (if already begun when this act goes into effect) shall be a misdemeanor and subject the offender, its or their officers, agents and representatives, to a fine of not more than one thousand dollars nor less than five hundred dollars for each month such failure shall continue. And all such persons, firms, partnerships, associations, trustees or combinations of persons, shall be subject to the same examination, visitation and control, and pay the same fees and charge therefor as now required of building and loan associations incorporated under the laws of this state. (Acts 1919, c. 87.)

CHAPTER 5.

MONEY AND INTEREST; PUBLIC FUNDS.

§ 1. Money of account. The money of account of this State shall be the dollar, cent and mill; all accounts by public officers shall be so kept. (Code 1916, c. 96.)

§ 2. Failure to express sums in money of account.-No writing shall be valid, nor the force of any account or entry be impaired, because of a sum of money is expressed therein otherwise than in the said money of account. (Code 1916, c. 96.)

§ 3. Ascertainment of value of foreign currency. In any suit for a sum of money expressed in any foreign currency, or otherwise than in the money of account of this State, the jury, if there be one impaneled for any other purpose, and if not, the court,

shall ascertain the value in the said money of account of the sum so expressed, making such allowance for the difference of exchange as shall be just; and the judgment or decree may either be for what may be so ascertained, or for the sum of money expressed as aforesaid, to be discharged by the sum so ascertained. (Code 1916, c. 96.)

§ 3a. Silver coin as legal tender. That the silver coin issued by the government of the United States shall be a legal tender for the payment of all debts heretofore or hereafter contracted by the citizens of this State, and the same shall be received in payment of all debts due to the citizens of this State, and in satisfaction of all taxes levied by the authority of the laws of this State. (Code 1916, c. 96.)

§ 4. Rate of interest.-Legal interest shall continue to be at the rate of six dollars upon one hundred dollars for a year, and proportionably for a greater or less sum, or for a longer or shorter time, and no person upon any contract, shall take for the loan or forebearance of money, or other thing, above the value of such rate. Provided, a charge of one dollar may be made for any loan or forbearance of money or other thing, where the interest at the rate aforesaid would not amount to that sum, and the same shall not be a usurious charge or rate of interest. (Acts 1917, c. 55.)

§ 5. Usury. All contracts and assurances made directly or indirectly for the loan or forbearance of money or other thing at a greater rate of interest than six per cent., except where such greater rate is now allowed by law, shall be void as to any excess of interest agreed to be paid above that rate, and no further. (Code 1916, c. 96.)

§ 6. Same pleadings; evidence; issues; trial. Any defendant may plead in general terms that the contract or assurance on which the action is brought, was for the payment of interest at a greater rate than is allowed by law, to which plea the plaintiff shall reply generally, but may give in evidence upon the issue made up thereon, any matter which could be given in evidence under a special replication; under the plea aforesaid, the de

fendant may give in evidence any fact showing, or tending to show, that the contract, or assurance, or other writing upon which the action was brought, was for an usurious consideration. And upon such plea the court shall direct a special issue to try and ascertain: 1. Whether or not, the contract, assurance or other writing is usurious. 2. If usurious, to what extent. 3. Whether or not interest has been paid on said contract, assurance or other writing, above six per cent., and if so, to what extent. And if a verdict be found upon the plea of usury, for the defendant, a judgment shall be rendered for the plaintiff for the principal sum due, with interest at the rate of six per centum per annum, and if any interest has been paid above the rate of six per centum per annum, the excess over and above that rate shall be entered as a credit on the sum due, and if nothing be found due after applying all credits and all excesses of interest paid above six per cent., judgment shall be entered for the defendant. (Code 1916, c. 96.)

§ 7. Same: remedy in equity; injunction.-Any borrower of money or other thing may exhibit a bill in equity against the lender, and compel him to discover upon oath the money or thing really lent, and all bargains, contracts, or shifts relative to such loan, and the interest or consideration of the same; and if it appear that more than lawful interest was reserved, the lender shall recover his principal money or other thing with six per cent. interest only, but shall recover no costs. If property has been conveyed to secure the payment of the debt, and a sale thereof is about to be made, or is apprehended, an injunction may be awarded to prevent such sale pending the suit. (Code 1916, c. 96.)

§ 8. State depositories.-The board of public works may designate any national bank or banks and any bank or banks chartered pursuant to the laws of this State, with paid up capitals of not less than twenty thousand dollars, as depositories of money belonging to the State and shall contract with said banks for the payment of interest thereon, at a rate of not less than two per cent. per annum, for such time as any deposit, or part thereof, may remain in such banks. Before allowing any money to be deposited with them they shall require said depositories to give.