Proviso.

the by-laws, in respect thereof; provided, however,
that in case of such hypothecation of stock, no
ments, fines and penalties incurred, according to
greater sum of money shall at any time be drawn
out by any member than shall have been already
paid in by him on his shares at the time of hypo-
thecation, the property so mortgaged as aforesaid
to the corporation being taxed in the hands of the
individual member or mortgagor.

May issue
new shares.

Sec. 7. And be it enacted. That all shares of
stock redeemed by hypothecated to purchased or
advanced on by the society in accordance with the
preceding section, shall be considered as redeemed
shares, and shall be cancelled; and it shall be
lawful for the society to issue an equal number of
new shares in their stead, so that the number of
unredeemed shares authorized by this Act may
always equal and not exceed the number of one
thousand unredeemed shares perpetually, and the
member or members of the corporation so redeem-
ing the said share or shares of stock, shall cease
to be the stockholders and shall not be entitled to
vote at any meeting of the corporation held for
the purpose of electing Directors, or for any other
purpose; and shall nut be eligible for any of the
officers of the corporation mentioned in this Act;

Proviso.

provided, however, that any stockholder who may
redeem his stock to the association shall thereupon
have the privilege to subscribe for as many shares
of new stock, at the price fixed by the board, as
he shall have redeemed at that time; and upon
so doing he shall not be deemed to have forfeited
any of his rights enunciated above in consequence
of redeeming the previous shares.

Affairs to be
investigated.

Sec. 8. And be it enacted, That it shall be the
duty of the Board of Directors, at least two days
previous to each and every election for Directors
in each and every year, to appoint from the stock-
holders three competent persons to investigate the
affairs of said corporation, and to make a report
thereof, which report shall be recorded in a book
kept for that purpose, that shall be opened for the
inspection at all times of any stockholder, and
thereupon it shall be the duty of the succeeding
Board of Directors, within ten days thereafter,
after their qualification, to declare such dividend