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have the same effect as if served on him in the county where the surety is given or where the suit is instituted, and shall, in all respects, have the same effect as service thereof upon the company. And thereafter such acceptance by the said attorney, or service upon him, anywhere in this State, shall be equivalent to service in the county where the suit was brought, and for all purposes, to service upon its principal. (Code 1916, c. 54C.)

$ 21. Fidelity insurance in case of employee of common carrier.—That if any common carrier authorized to do business in this state shall employ any person in any position of trust in this state, and shall apply to any surety company for surety for the faithful performance of duty by such employee, or for any form of fidelity insurance, and such surety company shall refuse to become responsible for such employee or, having become responsible for such employee, shall thereafter cancel such responsibility, such surety company shall furnish to such employee a statement in writing of the reasons therefor, which statement shall be sent by registered mail to such place as he shall designate, addressed to such employee, promptly on his demand therefor, in writing sent by registered mail to the head office of such surety company addressed to such surety company or officer thereof; and, unless such common carrier shall have other reasons for refusing to employ such employee than the facts of said refusal of such surety company to so become or continue responsible for such employee, such common carrier shall, on request of such employee, accept as security for the fidelity of such employee, a bond or obligation in the same form or substantially in the same form as that under which such surety refused to become or continue responsible for such employee, when duly executed and acknowledged by any other solvent surety company authorized to execute such bond or obligation in this state, or a personal bond with satisfactory surety and furnished to such common carrier by such employee without cost or expense to such common carrier; provided, however, that such surety company shall not be required to disclose the sources of its information regarding such employee, and that all communications, written or verbal, between such surety company or any officer or representative thereof and such common carrier or any officer or representative thereof or such employee or any person, firm or corporation mentioned in any statement made by such employee to such surety company shall be deemed privileged communications; and further provided that no action or legal proceeding for libel or slander shall lie against such surety company or such common carrier by reason thereof. Any surety company or any common carrier which shall, by its officers or representatives, violate any of the provisions of this act, shall be deemed guilty of a misdemeanor and be punished by a fine of not less than fifty dollars nor more than two hundred dollars. (Code 1916, c. 54C.)

$ 22. Demand by surety that creditor sue; judgment not binding on a surety not a party.—The surety or guarantor or indorser (or his personal representative) of any person bound by any contract may, if a right of action has accrued thereon, require the creditor (or his personal representative,) by notice in writing, forthwith to institute suit thereon; and if he be bound in a bond with collateral condition or for the performance of some collateral undertaking, he shall also specify in such requisition the breach of the condition or undertaking for which he requires suit to be brought; provided, however, that whether the surety, guarantor or indorser (or his personal representative) shall have given notice or not, no judgment or decree or recovery rendered, entered or had in any suit, action, prosecution or proceeding, to which the surety, guarantor or indorser (or his personal representative) was not a party regularly served with process, shall be in any wise binding on such surety, guarantor or indorser (or his personal representative), and notwithstanding such decree, judgment or recovery the surety, guarantor or indorser shall be allowed to make any such defense in any action, suit or proceeding instituted against him, that could have been nade 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.)

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$ 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 defence 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 defence 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 numbers 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 avard to a member the value of any shares held by him less such ninimum 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.)

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