Page:United States Statutes at Large Volume 47 Part 1.djvu/352

 328 Powers of credit unions. Proviso. Maximum loans to directors, etc. Repa ymey t. By-laws. 72d CONGRE SS. SESS. I. CH. 272. JUNE 23, 1932 . proof of the bankruptcy or insolvency of any such credit union or upon conviction of a violation of any provision of this Act or of any law or regulation of the District of Columbia or of the United States. Powxits SEC. 7. A credit union shall have succession in its corporate name during its existence and shall have power- First. To make contracts. Second. To sue and be sued in its corporate name. Third. To adopt and use a common seal and alter the same at pleasure. Fourth. To purchase, hold, and dispose of property necessary to enable the corporation to carry on its operations. F ifth. To make loa ns to its memb ers for provi dent purp oses upo n such-terms and conditions as the by-laws provide and as the credit c ommittee may approve. a t rates of interest not exceeding 1. per centum per month on unpaid balances inclusive of all charges inci- dent to the making of the loan : Provided, That no loan to a director, officer, or member of a committee shall exceed the amount of his holdings in the company in shares nor shall any such director, officer, or member indorse for borrowers. A borrower may prior to matu- rity repay his loan in whole or in part on any business day. Sixth. To receive of its members payment on shares. Seventh. To invest in the paid-up shares of building and loan asso- ciations and of other credit unions to an extent not to exceed 25 per centum of its capital, and in any investment legal for savings banks or for trust funds in the District of Columbia. Eighth. To make deposits in banks and trust companies in the District of Columbia under the supervision of the Comptroller of the Currency. Ninth. To borrow in an aggregate outstanding amount not exceed- ing 40 per centum of its paid-in and unimpaired capital. Tenth. To fine members for failure to meet promptly their obliga- ti ons t o such corpo ration. Eleventh. To impress a lien upon the shares. and dividends of any member to the extent of any loan made to him and any dues or fines payable to him. BY '-L Aws Submission, to Dis- irict SEC. 8. (a) The incorporators shall subscribe, acknowledge, and submit to the Commissioners of the District of Columbia proposed by-laws, and no credit union shall receive payments on account of Approval. shares or make any loans until such proposed by-laws have been approved by the commissioners as being in conformity with the provisions of this Act. Pro visions enumer- ated. (b) The by-laws shall prescribe the purposes for which the cor- poration poration is formed, the qualifications for membership, the date of the annual meeting, the manner of conducting meetings, the methods by which members shall be notified of meetings and the number of members which shall constitute a quorum, the number of directors land the compensation and duties of officers, the number of members of the credit committee, the fines, if any, to be charged for failure of members to meet promptly obligations to the corporation, the amount of the entrance fee, if any, to be paid, and such other regulations as are deemed necessary. Am endm ents. (c) Amendments of the by-laws may be adopted by a three-fourths vote of t he members pre sent at any me mbers' meeting, but the amendments shall not take effect until approved by the Commis-