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04. The provisions of the foregoing sections, from section eighty-
six to section ninety-three, inclusive, shall betaken and held to ap-
ply to corporations which have been or may hereafter be formed in
this State, under the provisions of this article, for the purpose of
loaning money on real or personal property, or for buying, selling,
leasing, or otherwise dealing in land, and that such corporations may
by their by-laws provide for the payment of all or any part of their
stock in advance, and shall have the power to enforce the payment of
all dues, legal interest, or premium due to such corporation from its
members, stockholders, or borrowers, by such fines and forfeitures
as the directors may, from time to time, provide in its by-laws, and
it shall and may be lawful for any of the corporations mentioned in
this section, at any time, either before or after the shares of its stock
shall have been fully paid up, to redeem or purchase the same at a
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 cer-
tificate of incorporation, for any number of shares then held by
such member, for any number of years, and upon such premium or
bonus as may be agreed upon between the corporation and member
or borrower, and either to deduct such premium or bonus in advance,
or to make the same payable with and as a part of the weekly dues,
in each and every week during the period of such loan, and in the
payment of such sum of money by such corporation, then to receive
from such member a transfer of all his or her interest in such share
or shares of its stock, and also security by way of mortgage on real
or personal property, or by hypothecation of unredeemed shares of
its stock so sold by such member, and that said mortgage or hypothe-
cation shall be conditional for the repayment by such member or
borrower to said corporation of the money loaned or advanced to
him in weekly instalments, including dues, legal interest on the
money so advanced or loaned, the weekly premium agreed upon for
each share, and also all fines, assessments, and penalties incurred ac-
cording to the by-laws in respect thereof, and all shares of stock so
redeemed, advanced, or loaned, or purchased, by such corporation,
shall be considered as redeemed shares, and shall be cancelled; and
it shall be lawful for such corporation to issue an equal number of
new shaves 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 mem-
ber 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 corporation.
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1872, c 178.
Corporations
for loaning
money on real
or personal
property
35 Md 117, 36
Md 383, 37 Md.
320, 38 Md 115,
44T, 40 Md 192,
226, 41 Md 38
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93, It shall not 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 mortgage, leasing, or otherwise deal-
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1878, c 154
Building asso-
ciations, etc,
not to issue
promissory
notes, etc.
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