CORPORATIONS 863

An. Code, 1924, sec. 170. 1912, sec. 143. 1904, sec. 131. 1888, sec. 104. 1868, ch. 471,

sec. 93. 1878, ch. 154.

169. It shall not be lawful for any land company, homestead or build-
ing association, or any association formed for the purpose of lending money,
or using the corporate funds for the purpose of buying, selling, lending upon
mortgage, leasing or otherwise dealing in real or leasehold estate, to issue
any promissory note, bill or obligation of any kind to any member thereof,
or borrow therefrom in lieu of money, and all loans by such corporation
shall be made in money and not otherwise, and all notes, bills or obligations
of any sort issued by any such association to or for the use or benefit of any
member or borrower in lieu of money, and all deeds, mortgages or other
securities whatsoever, given to secure the same, shall be void and of no force
and validity whatever, either in law or equity.

Issuance of promissory note by building association for free shareholder's account,
with intent to change status to that of general creditor, is in violation of this section.
Koenig v. Sycamora Permanent Bldg. & Svgs. Soc. of Balto. (Judge Dickerson, Balti-
more City Court), Daily Record, July 24, 1939.

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

Transaction between building association, bank and certain individuals, held not
within this section. No evidence of fraud. National Bank v. Crockett, 145 Md. 445.

Note issued by building and loan association to a free shareholder for the amount
of a deposit previously made by him, for the purpose of changing his status from
that of a free shareholder to that of a general creditor, was invalid under this section.
Monroe v. Broening, 167 Md. 239.

Cited but not construed in Watson v. Loan & Savings Asso., 158 Md. 341.

An. Code, 1924, sec. 171. 1912, sec. 143A. 1917, ch. 28.

170. it shall be lawful for any land company, homestead or building
association or any association formed for the purpose of lending money or
using the corporate funds for the purpose of buying, selling, lending upon
mortgages, leasing or otherwise dealing in real or leasehold estate, to buy,
hold or lend upon United States bonds and bonds of the State of Maryland.

An. Code, 1924, sec. 171A. 1929, ch. 453. 1937, ch. 309. 1939, ch. 272.

171. No foreign building, loan or homestead association shall make
loans of any kind or transact any business of a building and loan association
within the State of Maryland, or maintain an office in the State of Mary-
land for the purpose of transacting such business until it has been admitted
to do business in the State of Maryland. Any foreign building, loan or
homestead association may be admitted to do business in the State of Mary-
land upon the same terms and conditions, as to taxes, fines, penalties,
licenses, fees and deposits, as may be required of a Maryland Association
in order to transact business in the State, Territory or District of Columbia
in which such association, making application to do business in Maryland,
is incorporated or has its principal place of business; and when so admitted
shall conduct such business in accordance with the laws governing domestic
associations. Whenever any deposit of money, securities or mortgages is
required by such foreign jurisdiction, such deposit shall be made with the
Treasurer of Maryland and shall be held to satisfy the claims of resi-
dents of Maryland; and such taxes, application fees, license fees or re-
newal fees as may be required by such foreign jurisdictions shall be paid
to the State Tax Commission of Maryland, which, after receiving such
papers, including a power of attorney establishing a resident agent,
as may be required by such foreign jurisdiction, and being satisfied that
any deposit required by such foreign jurisdiction has been made, is au-