BUILDING AND LOAN ASSOCIATIONS
AN ACT to Amend an Act entitled "An Act in Relation to Building and Loan Associations and Regulating the business of Such Associations" being Chapter 107, Volume 32, Laws of Delaware, as amended.
Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:
Section 1. That Chapter 107, Volume 32, Laws of Delaware as amended be and the same is hereby further amended by adding at the end of Section 7 thereof the following:
"Any Building and Loan Association doing business within the bounds of this State may borrow money and secure the same by the issuance of certificates of indebted- ness or other corporate obligations, provided that the amount borrowed shall not at any time exceed in the aggregate twenty-five per cent (25) of the dues actually paid in on the shares of the Association, and shall not bear a higher rate of interest than six per centum (6% ) per annum.
No more than fifty per centum (50%) of the paid in dues of any Building and Loan Association doing business within the boundaries of this State shall be loaned on real estate security on other than first liens".
Section 2. That Section 9 of Chapter 107, Volume 32, Laws of Delaware, as amended, be and the same is hereby further amended by adding at the end of said Section the following:
"On and after July 1, 1931, it shall be unlawful for any person, persons, firm, corporation or copartnership to solicit, within the bounds of this State, for a commission any subscription to shares of a Building and Loan Association whether existing under the laws of this State or any other State. Any person violating the provisions of this Section shall be deemed guilty of a misdemeanor and, upon conviction thereof, shall be punished with a fine of not less than One Hundred Dollars and costs for each offense and in default of payment of such be imprisoned for each offense for a term not exceeding thirty (30) days."
Section 3. That Section 11 of said Chapter 107, Volume 32, Laws of Delaware, as amended, be and the same is hereby further amended by striking out all of said Section 11 and inserting in lieu thereof the following:
Section 11. Every Building and Loan Association existing under the laws of this State, or any other State, and doing business within the boundaries of this State, shall annually, at the end of its fiscal year, furnish to the State Com Bank Commissioner, a detailed statement of its condition at the close of its last fiscal year, giving a full detailed statement showing the gross amount of dues, interest, premiums, fines, repayments and other funds received and collected by such Association for the said fiscal year, and the amount of its earnings, and its aggregate assets and liabilities at the close of said fiscal year, and any other information that the said State Bank Commissioner may request, and which said statement shall be verified by the oath or affirmation of the President and Secretary, duly administered by some person authorized by the laws of the State to administer oaths. The State Bank Commissioner may, in his discretion, one time within every fiscal year of any Building and Loan Association existing under the laws of this State, or any other State, and doing business within the boundaries of this State, require any such Building and Loan Association to issue, as a part of the annual statement of said Association, a list, by book number, of all accounts in arrears or in advance, or/in the case of Building and Loan Statement of Associations of the kind commonly designated and described as being organized under the permanent or Dayton plan, may require the confirmation of the accounts of all members, said confirmation to set forth the credit balance of each of said members as the same is shown upon the books of said Building and Loan Associations upon a day selected by said State Bank Commissioner. The expense of issuing said list shall be paid entirely by each individual Building and Loan Association.
Section 4. That Section 19 of Chapter 107, Volume 32, Laws of Delaware, as amended, be and the same is hereby further amended by striking out all of Section 19 and by inserting in lieu thereof the following:
Section 19. It shall be lawful for a Building and Loan Association to set aside in its treasury, out of its earnings, a contingent fund which shall be used only for the purpose of earnings paying losses and necessary expenses incurred in the maturing of any of its series of stock, and for the purpose of establishing and making equal, as nearly as may be, the time of maturing of all of said series. The funds so set aside may be invested as other funds of the Association.
Approved April 29, 1931.