56

CORPORATIONS. [ART. 26.

presented in the articles of association or in the by-
laws.

Payment of
unpaid instal-
ments to be
secured by
mortgages, &c.

88. The payment of the unpaid instalments 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 mem-
ber, shall be secured to such corporation by mortgage
on real or leasehold property, or by the hypothecation
of stock of such corporation held by such member as
may be provided 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 such hypothecation ;
and any such mortgage and the mortgage debt created

Exempt from
taxation.

thereby, are declared to be exempt from taxation, the
property so mortgaged to the corporation being taxed
in the hands of the individual member or mortgagor.

Member of cor-
poration, com-
petent witness.

89. On the trial of any action or other proceeding
at law, or in equity, in which the property or interest
of any such corporation may be in any wise concerned,
any member of such corporation shall be a competent
witness, and shall not be objected to on account of any
interest he may have as such member, in the result of
any such action or proceeding.

Prior associa-
tion merged in
new corpora-
tion.

90. Any association of persons which may have
been organized or established at any time prior to the
adoption of this article, on being made a body corpo-
rate, under the provisions of this 'article, shall become
merged in such corporate body thereby created, and
every act done or to be done by any such unincorpo-
rated association of persons, relating to the ends and
purposes of such association, and all mortgages, bonds
or other instruments, made to such association of per-
sons, or to any person or persons to or for the use of
such association of persons, or any member thereof as
such, shall remain and continue in full force and virtue
at law and in equity, in like manner as if such incor-
porated association of persons had originally been a
body corporate.