32-2-401. Powers and duties of building and loan associations.
32-2-401. Powers and duties of building and loan associations. A building and loan association may:
(1) have continual succession by its corporate name;
(2) sue and be sued in any court;
(3) make and use a common seal and alter it at pleasure;
(4) appoint those officers or agents the business of the corporation requires and pay them suitable compensation;
(5) enter into obligations or contracts essential to the transaction of its ordinary affairs or for the purposes of the corporation;
(6) issue stock to stockholders and savings certificates to members on the terms and conditions the articles of incorporation and bylaws provide;
(7) assess and collect from members interest on loans at the times and in the amount provided for in the articles of incorporation and bylaws;
(8) permit members to withdraw all or part of their savings at the times and upon the terms as the articles of incorporation and bylaws may provide;
(9) cancel savings certificates upon which all credits have been withdrawn or upon which loans have been canceled or savings upon which payments have not been made for a period of 6 months, by returning to the members all credits, if any, and reissue the certificates as new savings certificates;
(10) issue savings certificates to minors and permit them to be withdrawn as other savings certificates. The receipt by the minor is a valid acquittance if the minor's rights have been fully secured to the minor.
(11) acquire, hold, encumber, and convey real estate and personal property that is necessary for the transaction of its business or necessary to enforce or protect its securities;
(12) borrow money, only when necessary and not exceeding 20% of its assets, except when borrowing from the federal home loan bank as provided in 32-2-405, and issue its promissory note for the loan;
(13) make loans to members on the security of the savings accounts of the association and also on their notes secured by first mortgages on improved real estate, including suburban homes or farm lands but not on mining property, for not to exceed 75% of the actual value of the real estate and upon the terms and conditions that may be provided in the articles of incorporation and bylaws;
(14) cancel those loans and release the securities on those terms that the board of directors may provide;
(15) invest the money of the association in accordance with 32-2-406;
(16) loan money to other building and loan associations;
(17) make distribution of all interest and dividends earned after payment of expenses and setting aside a sum for the contingent funds as provided in this chapter;
(18) amend its articles of incorporation by changing the name, place of business, or number of directors or by increasing or decreasing the capital stock and provide for its own continual succession by a majority vote of its directors. However, those amendments are of no effect until approved by the department.
(19) dissolve the corporation in accordance with the provisions of this chapter;
(20) provide, by articles of incorporation and bylaws adopted or amended by its board of directors, for the proper exercise of the powers granted in this section and the conduct and management of its affairs;
(21) exercise those other powers that are necessary and proper to enable the corporation to carry out the purpose of its organization.
History: En. Sec. 12, Ch. 57, L. 1927; amd. Sec. 1, Ch. 163, L. 1929; amd. Sec. 1, Ch. 11, L. 1933; re-en. Sec. 6355.13, R.C.M. 1935; amd. Sec. 1, Ch. 80, L. 1939; amd. Sec. 1, Ch. 164, L. 1943; amd. Sec. 1, Ch. 337, L. 1975; amd. Sec. 72, Ch. 431, L. 1975; R.C.M. 1947, 7-113(part); amd. Sec. 15, Ch. 5, L. 1983; amd. Sec. 1, Ch. 243, L. 1989; amd. Sec. 1039, Ch. 56, L. 2009.