114

LAWS OF MARYLAND.

respect thereof; provided, however, that in case of
such hypothecation of stock, no greater sum of
money shall at any time be drawn out by any

Proviso.

member than shall have been already paid in by
him on his siiarc at the time of hypothecation, the
property so mortgaged as aforesaid to the corpora-
tion being taxed in the hands of the individual
member or mortgagor.

Hypothecated

stock.

Sec. 7. And be it enacted, That all shares of
stock redeemed by, hypothecated to purchaser, or
advanced on by the Society, in accordance with
the preceding Section, shall be considered as re-
deemed shares, and shall be canceled ; 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 (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 stockholders, and shall not be entitled to vote
at any meeting of the corporation held for the pur-
pose of electing Directors or for any other pur-
pose, and shall not be eligible for any of the offi-
cers of the corporation mentioned in this Act ;
provided, however, that any stockholder who may

Proviso.

redeem hi? 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 ho deemed to have forfeited
any of his rights enunciated above in consequence
of redeeming the previous shares.

Investigate
affairs.

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 he 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 divi-
dend of the profits as shall have been made