CHAPTER 136 - BUILDING AND LOAN ASSOCIATIONS

AN ACT AMENDING CHAPTER 66 OF THE REVISED CODE OF DELAWARE, 1935, RELATING TO BUILDING AND LOAN ASSOCIATIONS BY DEFINING CLASSES OF STOCK, RATES OF DIVIDENDS, DEFINING MEMBERS AND EXEMPTING FROM ATTACHMENT LAWS.

Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:

Sec. 1. That Chapter 66 of the Revised Code of Delaware, 1935, be and the same is hereby amended by striking out all of 2338, Sec. 81 of said chapter and inserting in lieu thereof the following:

"2338. Sec. 81. PREMIUMS DEFINED; FINES DEFINED; MEMBERSHIP FEES DEFINED; CLASSES OF STOCK DEFINED; RATES OF DIVIDENDS ON STOCK; MEMBERS DEFINED; EXEMPTING FROM ATTACHMENT LAWS:—Premiums, when used in this Article, shall be taken to mean a sum paid by the borrower over and above the legal rate of interest charges for any loan. Fines, when used in this Article, shall be taken to mean a penalty imposed for the nonpayment of dues and interest when due. Membership fees, when used in this Article, shall be taken to mean a fee to be paid by the stockholder upon subscribing for shares of stock.

Serial Plan, when used in this Article, refers to the charter, constitution, by-laws, declaration of trust, contract, agreement or other device authorizing the issuance of serial stock in either quarterly, semi-annual or annual series and which requires members or customers to pay regular installments to a common fund or series, from which fund or series loans are made to said members, customers, or to others, and which contemplates maturity of said series by adding together the amount paid in by members and profits earned.

Full Paid Plan when used in this Article, refers to the charter, constitution, by-laws, declaration of trust, contract, agreement, or other device authorizing the issuance of Full Paid Stock in either installments or otherwise, or any other evidence of money paid to or deposited with a building and loan association, and which may or may not have a definite maturity, but may be withdrawn upon required notice served by the member, and upon which the association may declare periodical dividends.

Every building and loan association doing business in this State may provide in its by-laws a schedule of varying rates of dividends for different classes of shares of stock; and different types of shares within any class; but where serial shares are issued no other class of shares shall receive dividends at a higher rate than eighty per cent, nor less than fifty per cent of the rate distributed to serial shareholders.

All shareholders of record and all borrowers from the association shall be members thereof. A borrowing member obligated upon a real estate loan shall remain a member of the association, even though he shall have transferred the real estate security subject to real estate loan so long as such borrowing member remains obligated upon the real estate loan.

Every building and loan association doing business in this State may operate under the Serial Plan, Full Paid Plan or partially under the Serial Plan and partially under the Full Paid Plan.

No building and loan association authorized to do business under the laws of this State shall be subject to the operations of the Attachment Laws of the State of Delaware, as provided in the case of individuals.

Whenever used in this Article, the term Building and Loan Association shall be construed to mean any corporation, person, firm, partnership, association, trustee or combination of persons whatsoever, within the purview of this Article."

Approved April 17, 1941.