724 ARTICLE 23.

from time to time be fixed or assessed, in such manner as may be provided
by the corporation, in order to place such new member or stockholder on
a footing with the original members and others holding stock at the time
of such application.

A bonus or assessment for " back dues," of an amount equal to the association's
regular weekly dues, counted from the organization of the association to the time
of the subscriptions, is reasonable and authorized by this section. Home, etc.,
Building Assn. v. Thursby, 58 Md. 287. Cf. Geiger v. Eighth German, etc., Assn.,
58 Md. 574.

A " premium " charged by a building association in addition to dues and interest,
held not to be a "bonus" within the meaning of this section. This section referred,
to in construing sec. 164—see notes thereto. White v. Williams, 90 Md. 724. And
see Williar v. Baltimore, etc., Loan Assn., 45 Md. 562.

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 States Co. v. Hagerstown Mattress Co., 82
Md. 513.

An. Code, sec. 137. 1904, sec. 125. 1888, sec. 98. 1868, ch. 471, sec. 87. 1894, ch. 321.

164. Such corporation, at any time in advance of the period of time
at which it may cease to exist, according to the plan contained in the original
articles of association, may advance to any member thereof, for such pre-
mium as may be agreed upon, the sum which he would be entitled to receive
upon the dissolution of the corporation, or the maturity of the series to
which he belongs, when said corporation has more than one series of stock,
for any number of shares therein held, or may purchase from any member
thereof the share or shares of stock held by him, at such price or sum as,
according to the articles of association, such member may agree to receive,
or instead of receiving the whole amount of said premium (in advance or
deducting the whole amount of said premium) from the amount of said
advance, the borrower may pay the same in weekly, monthly or such other
instalments as may be agreed upon; and on payment of said sum of money,
may receive from such member security as mentioned in the next succeed-
ing section of this article, for the payment by such member to such corpora-
tion of the unpaid instalments and unpaid premiums, to be paid on the
share or shares of stock so sold or redeemed, together with interest at the
rate of six per cent per annum on the sum so paid or advanced, at such
times and subject to such fines and penalties for the non-payment thereof
as may be prescribed in the articles of the association or in the by-laws, and
such corporation shall have power to issue full paid-up shares of stock to
its members upon such terms as may be set forth in its by-laws.

Usury.

Where a mortgage provides for the payment of principal and iix per cent, inter-
est, and an additional " premium " of seven dollars and fifty cents per month, the
transaction is usurious. Meaning of the word " premium " as used in this section.
White v. Williams, 90 Md. 723 (mortgage made prior to the act of 1894, ch. 321,
and hence not affected thereby). And see Geiger v. Eighth German, etc., Assn.,
58 Md. 570.

Act of 1894, ch. 321, only changes this section so far as the time and method of
the payment of the premium are concerned, and does not alter the rule that the
premium cannot be an indefinite or variable amount, or payable in an indefinite
number of small instalments. Transaction held usurious. The statute conferring
the privilege of charging a premium is to be strictly construed. Washington Bldg.
Assn. v. Andrews, 95 Md. 699. And see Coltrane v. Baltimore, etc., Assn., 110
Fed. 293.