598 CORPORATIONS. [ART. 23

McCarthy, 57 Md. 559; Baltimore, etc.. Society v. Taylor, 41 Md. 417; Rob-
ertson v. American, etc., Assn., 10 Md. 408; Coltrane v. Baltimore, etc., Assn.,
110 Fed. 293. Cf. Williar v. Baltimore, etc., Loan Assn., 45 Md. 562; Citi-
zens', etc., Co. v. Uhler, 48 Md. 458.

This section and section 138 have no application to a corporation chartered
for "the purchase and Improvement of real estate, advancing money on
mortgages," etc., nor to a transaction which is nothing more nor less than a
loan of money by an association and a mortgage of the borrower's property
for the repayment of the loan with usurious Interest. The fact that the bor-
rower becomes a shareholder and the money a.dvanced to him is called a
redemption of his shares, is immaterial. Williar v. Baltimore, etc., Loan
Assn., 45 Md. 562.

This section cannot be evaded so that more than six per cent, interest
may be charged by combining the interest with the weekly instalment pay-
ments on the shares of stock. Transaction held usurious. Peter's Bldg.
Assn. v. Jaecksch, 51 Md. 204.

A mortgage to a building association is not illegal because interest is pay-
able weekly and fines are Imposed for non-payment of dues. Stewart v.
Workingmen's Bldg. Assn., 106 Md. 682.

Generally.

This section referred to in deciding that a building association was liable
on a note discounted for the purpose of raising money to pay a borrower the
amount advanced to him. Davis v. West Saratoga, etc., Union, 32 Md. 294.

This section referred to in construing section 138—see notes thereto.
Salisbury Assn. v. Wicomico County, 86 Md. 619,

For a case involving section 35 of article 26 of the code of 1860, see
Shannon v. Howard Bldg. Assn., 36 Md. 394.

Cited but not construed in Baltimore Bldg. Assn. v. Powhatan Co., 87 Md.
64; International Fraternal Alliance v. State, 86 Md. 554; Faust v. Twenty-
third, etc., Bldg. Assn., 84 Md. 190; Middle Siates Co v. Hagerstown Mat-
tress Co.. 82 Md. 513.

As to loans upon chattels, and the rate of interest chargeable thereon, see
sec. 124.

1904, art. 23, sec. 126. 1888, art. 23, sec. 99. 1868, ch. 471, sec. 88. 1880, ch. 351.
1894, ch. 321. 1904, ch. 240.

138. The payment of the unpaid instalments and the premium
agreed upon for each share, and also all fines, assessment with interest
on the money paid therefor as aforesaid, and all fines and penalties
incurred in respect thereof by any member, shall be secured to such
corporation by mortgage on real or leasehold property, or by the hypoth-
ecation or stock of such corporation held by such member, as may be
provided in the articles of association or by-laws; but in case of hypothe-
cation 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 all
his shares at the time of such hypothecation, and any such mortgage
and the mortgage debt created thereby, and the shares of stock of any
corporation, and of all building associations, are declared to be exempt
from taxation to the extent of the investments of such corporation in
mortgages, whether said mortgages be building association mortgages
or ordinary mortgages, the property so mortgaged to the corporation
being taxed in the hands of the mortgagor.

The exemption from taxation granted by this section, held not to apply to a
corporation originally chartered as a fire insurance company by special act,
and whose charter was, by a later act, amended so as to give it the power to
purchase real property, lend money, etc. Emory v. State, 41 Md. 57.

The act of 1896, ch. 120, sections 146 A to 146 F (see article 81, section 187,
et seq.), held not to Include building associations, so as to take away the