448

LAWS OF MARYLAND.

stock of the said corporation held by such mem-
ber, the said mortgage or hypothecation condi-

Hypotheca-
tion.

tioned for the payment by such member to said
corporation of the unpaid installments to be paid
on the share or shares of stock so redeemed or sold
by him together with interest on the sum so paid
or advanced ; and all assessments, fines and pen-
alties incurred according to the by-laws in respect
thereof; provided however that in case of such hy-
pothecation of stock no 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 such hypothecation, the
property so mortgaged as aforesaid to the corpora-
tion being taxed in the hands of the individual
member or mortgagor.

Redeemed

shares.

Sec. 7. And be it enacted, That all shares of
stock redeemed by the hypothecated to purchase
or advanced on by the Society in accordance with
the preceding Section, shall be considered as re-
deemed 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 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 pur-
pose, and shall not be eligible for any of the offices

Proviso.

of the corporation mentioned in this Act ; provided,
however, that any stockholder who may redeem
his stock to the Association shall thereupon have
the privilege to subscribe for as many shares pf
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.

Investigate
affairs.

Sec. 8. And be it enacted, That it shall be the
duty of the Board of Directors at least ten days
previous to each and every election for Directors in
each and every year to appoint from the stockhol-
ders three competent persons to investigate the