CORPORATIONS. 725

The money paid by a building association for the purchase or redemption of
stock is not a loan to the shareholder to be repaid by him with interest, and, there-
fore, no question of usury can arise. Transaction held usurious. This section re-
ferred to in construing sec. 152—see notes thereto. Commercial Assn. v. Mac-
kenzie, 85 Md. 142. And see Washington Bldg. Assn. v. Andrews, 95 Md. 700; Faust
v. Twenty-third, etc., Bldg. Assn., 84 Md. 190; Home, etc., Bldg. Assn. v. Thursby,
58 Md. 288; Border State Bldg. Assn. v. McCarthy, 57 Md. 559; Baltimore, etc.,
Society v. Taylor, 41 Md. 417; Robertson 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; Citizens', etc., Co. v. Uhler, 48 Md. 458.

This section and sec. 165 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 borrower becomes a shareholder and
the money advanced 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 payments on the
shares of stock. Transaction held usurious. Peter's Bldg. Assn. v. Jaeeksch, 51
Md. 204.

A mortgage to a building association is not illegal because interest is payable
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 sec. 165—see notes thereto. Salisbury
Assn. v. Wicomico County, 86 Md. 619.

For a case involving sec. 35 of art. 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 States Co. v. Hagerstown Mattress Co., 82
Md. 513.

As to loans upon chattels, and the rate of interest thereon, see sec. 152.

An. Code, sec. 138. 1904, sec. 126. 1888, sec. 99. 1868, ch. 471, sec. 88. 1880, ch. 351.
1894, ch. 321. 1904, ch. 240. 1916, ch. 312.

165. The payment of the unpaid instalments and the premium on
the share or shares so purchased or redeemed, 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 hypothecation of stock of such cor-
poration held by such member or by judgment of a court of law or by a
justice of the peace or by a decree of a court of equity all as may be pro-
vided in the articles of association or by-laws; but in case of hypothecation
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 said hypothecation, and any such mortgage and the mortgage debt
created thereby, and any such judgment or decree and the shares of stock
of any such corporation and of all building associations are declared to be
exempt from taxation to the extent of the investment of such corporation
in mortgages, whether said mortgages be building association mortgages or
ordinary mortgages and in judgments, decrees and loans on hypothecated