Property which may corpora tions, and how disposed of. SEC. 574. Savings and loan corporations may purchase, be owned by hold and convey real and personal property, as follows: 1. The lot and building in which the business of the corporation is carried on, the cost of which must not exceed one hundred thousand dollars; except, on a vote of two-thirds of the stockholders, the corporation may increase the sum to an amount not exceeding two hundred and fifty thousand dollars. Restrictions in purchases above. 2. Such as may have been mortgaged, pledged or conveyed to it in trust, for its benefit, in good faith, for money loaned in pursuance of the regular business of the corporation. 3. Such as may have been purchased at sales under pledges, mortgages or deeds of trust made for its benefit, or upon judgments or decrees obtained or rendered for money so loaned. 4. No such corporation must purchase, hold or convey as provided real estate in any other case or for any other purpose; and all real estate described in Subds. 2 and 3 of this section must be sold by the corporation within five years after the title thereto is vested in it by purchase or otherwise. 5. No corporation must purchase, own or sell personal property, except such as may be requisite for its immedi ate accommodation for the convenient transaction of its business, mortgages on real estate, bonds, securities or evidences of indebtedness, public or private, gold and silver bullion, and United States mint certificates of ascertained value, and evidences of debt issued by the United States. 6. No corporation must purchase, hold or convey bonds, securities or evidences of indebtedness, public or private, except bonds of the United States, of the State of California and of the counties, cities, or cities and counties, or towns of the State of California, unless such corporation has a capital stock or reserved fund, or both capital stock and reserved fund, paid in, of not less than three hundred thousand dollars. Stats. 1862, 199, Sec. 13; 1864, 158, Sec. 3; 1865-6, 626; Sec. 1. SEC. 575. Married women and minors may, in their own right, make and draw deposits, and draw dividends, and give valid receipts therefor. Stats. 1862, 199, Secs. 14, 15; 1864, 158, Sec. 4; 1870, NOTE. This provision is in "Domestic Relations" also. SEC. 576. Savings and loan corporations may issue general certificates of deposit, which are transferable, as in other cases, by indorsement and delivery; may issue, when requested by the depositor, special certificates, acknowledging the deposit by the person therein named of a specified sum of money, and expressly providing on the face of such certificate that the sum so deposited and therein named may be transferred only on the books of the corporation. Payment thereafter made by the corporation to the depositor named in such certificate, or to his assignee named upon the books of the corporation, or, in case of death, to the legal representative of such person, of the sum for which such special certificate was issued, discharges the corporation from all further liability on account of the money so paid. Stats. 1867-8, 459, Sec. 1. SEC. 577. Savings and loan corporations may prescribe by their by-laws the time and conditions on which repayment is to be made to depositors, but whenever there is any call by depositors for repayment of a greater amount than the corporation may have disposable for that purpose, the Directors or officers thereof must not make any new loans or investments of the funds of the depositors, or of the earnings thereof, until such excess of call bas ceased The Directors of any such corporation having no capital stock must retain, on each dividend day, at least five per cent of the net profits of the corporation, to constitute a Reserve Fund, which must be invested in the same manner as other funds of the corporation, and must be used toward paying any losses which the corporation may sustain in pursuing its lawful business. The corporation may provide by its by-laws for the disposal of any excess in the Reserve Fund over one hundred thousand dollars, and the final disposal, upon the disso Prohibition on Director lution of the corporation, of the Reserve Fund, or of the remainder thereof, after payment of losses. Stats. 1862, 201, Sec. 11. NOTE.-The Act of March 31st, 1870 (Stats. 1870, 523), and the Act of April 4th, 1870 (Stats. 1870, 822), are omitted. The corporations intended to be provided for therein can be formed under the law as here proposed, and thus the revised laws will be relieved from the embarrassments and complications which so many special provisions have induced. SEC. 578. No Director or officer of any savings and loan corporation must, directly or indirectly, for himself vacates office or as the partner or agent of others, borrow any of the and officer, and what deposits or other funds of such corporation, nor must he become an indorser or surety for loans to others, nor in any manner be an obligor for moneys borrowed of or loaned by such corporation. The office of any Director or officer who acts in contravention of the provisions of this section immediately thereupon becomes vacant. [New section.] NOTE. The last section is a suggestion from James De Fremery, of the San Francisco Savings Union, indorsed by Alexander Campbell, attorney at law, San Francisco. We are of the opinion that its adoption will meet with very general disfavor from the conductors of savings banks, but hope in this we may be agreeably disappointed. There is doubtless a class of persons engaged in the conduct of the business of such banks who would be glad to be protected against applications for personal favor. Law makers should be governed by a desire to give the greatest possible security to depositors, as a paramount object Banks of savings are almost indispensable, and as far as possible they should prove to be what their name imports, and provide ample security for all deposits. It is with this view alone that we have added the amendment, and recommend its adoption, thereby placing beyond the officers even an inducement to lessen the security of innocent and ofttimes ignorant depositors. TITLE XI. MINING CORPORATIONS. SECTION 584. Removal of the principal office provided for. 585. Directors to file certificates of proceedings in offices of County Clerks and Secretary of State. 586. Transfer agencies. 587. Stock issued at transfer agencies. SEC. 584. Every mining corporation may change its office or principal place of business from one county or city to another, within this State. Before such removal is made, the consent in writing of the holders of two-thirds of the capital stock must be obtained and filed in the office of the corporation. When such consent is obtained, notice of the intended removal must be published for thirty days, in some newspaper published at or nearest the principal place of business of the corporation, giving the name of the county or city where the office is then situate, and that to which it is intended to remove it. Stats. 1863-4, 76, Sec. 1. SEC. 585. When the publication provided for in the preceding section has been completed, the Directors of the corporation must file in the offices of the Clerks of the counties from and to which such change has been made, and in the office of the Secretary of State, certified copies of the written consent of the stockholders to such change and of the notice of such change, and proof of publication; also, a certificate that the proposed removal has taken place; and thereafter the principal place of business of the corporation is at the place removed to. Stats. 1863-4, 76, Sec. 2. agencies. SEC. 586. Any corporation organized in this State for Transfer the purpose of mining or carrying on mining operations. in or without this State, may establish and maintain agencies in other States of the United States, for the transfer and issuing of their stock; and a transfer or issue of the same at any such transfer agency, in accordance with the provisions thereof, is valid and binding, as fully and effectually for all purposes as if made upon the books of such corporation at its principal office within this State. The agencies must be governed by the bylaws and the Directors of the corporation. Stats. 1863-4, 429, Secs. 1, 3. SEC. 587. All stock of any such corporation, issued at a transfer agency, must be signed by the President and Secretary of the corporation, and countersigned at the time of its issue by the agent having charge of the transfer agency. No stock must be issued at a transfer agency Stock issued agencies. at transfer unless the certificate of stock, in lieu of which the same is issued, is at the time surrendered for cancellation. Stats. 1863-4, 429, Sec. 2. Corporations for purposes other than profit, how formed. Additional facts articles tion to set out. TITLE XII. RELIGIOUS, SOCIAL AND BENEVOLENT CORPORATIONS. SECTION 593. Corporations for purposes other than profit, how formed. 594. Additional facts articles of incorporation to set out. 595. Corporation to hold property, and amount of real estate lim ited. 596. How much land Masons, Odd Fellows and Pioneers may hold. 597. Directors to make verified report annually. 598. Corporations to forfeit franchise and lands. Attorney-General to sue therefor. 599. Corporations may, by order of the District Court, sell or mortgage real estate, when. Petition. Summons or notice. Objections or answer. Trial, order or decree. Court may direct appraisement of property and disposition of proceeds. 600. What may be provided for in their by-laws, etc. 601. Members admitted after incorporation. 602. No member to transfer membership, etc. SEC. 593. Any number of persons associated together for religious, social, benevolent or other purpose included in the subdivisions of Sec. 286, where pecuniary profit is not their object, may, in accordance with the rules, regulations or discipline of such association, elect for the first year Directors from among their members, the number thereof to be not less than five nor more than eleven, and may incorporate themselves as provided in this Part. Stats. 1870, 46; 402, Sec. 1. SEC. 594. In addition to the requirements of Sec. 290, of incorpora the articles of incorporation of any association mentioned in the preceding section must set forth the holding of the election for Directors, the time and place where the same was held, that a majority of the members of such association were present and voted at such election, and the result thereof; which facts must be veri fied by the officers conducting the election. Stats. 1850, 347, Sec. 176; 1862, 125. |