862 ARTICLE 23

sum or price as such member may agree to receive therefor, or to loan to
such member the par value of its shares as fixed by its certificates of in-
corporation for any number of shares then held by such member or bor-
rower, and either to deduct such premium or bonus as may be agreed upon
between the corporation and the member or borrower, and either to deduct
such premium or bonus in advance, or to make the same payable with and
as part of the weekly, bi-weekly or monthly dues in each week, bi-week or
month during the period of such loan, and in the payment of such sum of
money by such corporation, then to receive from such a member a transfer
of all his, her or its interest in such share or shares of its participating or
non-participating stock, and also security by way of mortgage on real or
personal property; or by the hypothecation of unredeemed shares of its
participating or non-participating stock so sold by such member; and said
mortgage or hypothecation shall be conditioned for the repayment by such
member or borrower to said corporation of the money loaned or advanced
to him in weekly, bi-weekly or monthly instalments, including dues, legal
interest on the money so advanced or loaned, the weekly, bi-weekly or
monthly premium agreed upon for each share, and also all fines, assess-
ments and penalties incurred according to the by-laws in respect thereof;
and shares of stock so redeemed, advanced, or loaned or purchased by
such corporation shall be considered as redeemed shares, and shall be can-
celled ; and it shall be lawful for such corporation to issue an equal number
of new shares in their stead, so that the number of unredeemed shares may
always equal and never exceed the number of shares fixed by the certificate
of incorporation of such corporations; and the member or members of
such corporations so redeeming their said share or shares of stock shall
cease to be stockholders, and shall not be entitled to vote at any meeting
of such corporations held for the purpose of electing directors or for any
other purpose, and shall not be eligible for any of the offices of the corpora-
tions.

This section referred to in upholding constitutionality of sec. 129—see notes thereto.
Carozza v. Federal Finance Co., 149 Md. 246.

Act which gave additional powers to association incorporated as building association,
but provided that it should be subject to all laws relating to building association, the
by-laws of said corporation do not prevail over the statute. Mortgage Bond Asso. v.
Baker, 157 Md. 315.

One to whom stock is issued by building and loan association in connection with
loan, but which stock is redeemed by the making of the loan, is not a member of the
association and is not charged with any liability fixed by a by-law of the association
apart from liability in mortgage deed, etc.; nor is one borrowing from association affected
by a by-law of which he had no knowledge and which was not in printed by-laws given
him. Losses for premature payment of loan must be shown. Watson v. Loan & Savings
Asso., 158 Md. 339.

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.

The act of 1872, ch. 178, held to be in conflict with art. 3, sec. 57, of the Md. Con-
stitution, in so far as it attempts to permit one class of corporations to charge a higher
rate of interest than others are allowed to charge. Citizens', etc., Co. v. Uhler, 48 Md.
458.

The act of 1872, ch. 178, held to have no application to a mutual building or home-
stead association. White v. Williams, 90 Md. 724; Geiger v. German Bldg. Assn., 58
Md. 573.

Prior to the act of 1904, ch. 239, this section applied only to corporations formed for
the purpose of loaning on real or personal property under the general corporation law.
Emory v. State, 41 Md. 57. And see Salisbury Assn. v. Wicomico County, 86 Md. 619.

Cited but not construed in Baltimore Bldg. Assn. v. Powhatan Co., 87 Md. 64; In-
ternational Fraternal Alliance v. State, 86 Md. 554.

Secs. 164-168 cited but not construed in Frederick v. Lyons, 173 Md. 100.

See notes to sec. 163.