Page:United States Statutes at Large Volume 47 Part 1.djvu/354

 330 • 72d CONGRESS. SESS. I. CH. 272. JU NE 23, 1932 . of any officer having custody of funds ; recommend declaration of In ter dO nterestrateonloans. dividends ;; determine interest rates on loans : Provided, however, That the interest rate on loans shall not be in excess of the maximum Filling vacancies . amount fixe d by the provisi ons of this Act and in the credit committee until successor s to be elected at the next Loans to nonmem- annual meeting have qualified ; have charge of investments other than loans to members ; determine the maximum loans other th an uallholdings andloaansl loans to members ; determine the maximum individual share holdings and th e maximu m indivi dual loa n which can be m ade with and wit hout security, if loan ex- security, except that no loan in excess of $50 shall be made without ceeds$50. adequate security ; and transmit to the members recommended amendments to the by-laws. For the purposes of this subdivision an assignment of shares or the indorsement of a note shall be deemed security. C ns id c ommit tee. Consideration (d) CREDIT coMMIrTEE .-The credit committee shall hold meetings, approval of loans . of which due notice shall be given to its members, to consider appli- cations for loa ns to me mbers of the cor poration, and no loan sh all be made unless all members of the committee who are present when the application is considered and a majority of all the committee Applicati ons • approve the loan. Applications for loans shall be on forms pre- par ed by s uch committee, whi ch shall set forth the pu rp ose for which the loan is desired, the security, if any, and such other data as may be required. Supervisory commit (e) SuPERVIsoRY COMMITTEE .-The supervisory committee shall t actions, authori- make an examination of the affairs of the credit union at least quar- terly, including an audit of its books ; shall make an annual audit and report to be submitted at the annual meeting of the corporation ; by a una nimous v ote may suspend any offi cer of th e corpor ation, o r any member of the credit committee or of the board of directors until the next members' meeting, at which time the suspension shall be acted on by the members ; and, by a majority vote, may call a meeting of the shareholders to consider any violation of this subchapter or of the by-laws, or an practice of the corporation deemed by the committee to be unsafe or unauthorized. The said committee shall proviso. fill vacancies i n its membership until successor s to be elected a t the Treasurers bond. next annual meeting have qualified : Provided, however, That before the treasurer shall enter upon his duties he shall give bond with good and suffici ent secu rity, in an amou nt to be determin ed by th e board of directors, conditioned upon the faithful performance of his trust. Reserves. RESER VES Designated funds set aside for. SEC. 12 . All entrance fees and fines provided- by the by-laws and, before the declaration of any dividend therefrom, 20 per centum of the net earni ngs of each year, shall be set a side as a reserve fund against bad loans, which fund shall be kept liquid and intact and not distributed except in case of liquidation. Dividends. DI VIDEND S Board may declare, on nqt earnings . SEC. 13. At the annual meeting a dividend may be declared from net earnings on recommendation of the board, which dividend shall be paid on all paid-up shares outstanding at the end of the preceding fiscal year. Shares which become fully paid up during such year shall be entitled to a proportional part of said dividend calculated from the first day of the m onth f ollow ing s uch p ayment in full.
 * fill vacancies in the board