118 ARTICLE 23.

by any member, 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 or by judgment of a court of law or by a justice of
the peace or by a decree of a court of equity all as may be provided in the
articles of association or by-laws; but in no 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 said hypothecation, and all homestead or building associations organized
under the laws of this State are hereby prohibited from investing in any
other manner than in cash, fixtures, or loans on hypothecated stock of such
association, judgments or decrees for payment of money received by courts
hi this State, mortgages on real or leasehold estates situate in this State
and bonds of the United States and of this State.
As to exemptions from taxation, see art. 81, sec. 7.

169.

This section referred to in upholding constitutionality of sec. 131—see notes
thereto. Carozza v. Federal Finance Co., 149 Md. 246.

170.

Transaction between building association, bank and certain individuals, held
not within this section. No evidence of fraud. National Bank v. Crockett. 145
Md. 445.

1929, ch. 453.

171A. Foreign building associations doing business in this State shall
conduct such business in accordance with the laws governing domestic asso-
ciations. No foreign building and loan association shall do business in
Maryland until it procures from the State Tax Commission a certificate
of authority to do business in this State, after complying with the follow-
ing provisions:

(a) It shall deposit with the Treasurer of Maryland Fifty Thousand
Dollars, in cash or bonds of the United States or of this State.

(b) It shall file with the State Tax Commission of Maryland a certified
copy of its charter, constitution and by-laws, and other rules and regula-
tions showing its manner of conducting business, together with a state-
ment such as is required annually from all associations.

(c) It shall file with, the State Tax Commission a power of attorney
appointing a citizen of this State, resident within this State, the agent or
attorney for the association, upon whom process of law can be served.
There must also be filed a certified copy of the vote or resolution, of the
directors appointing such attorney, which appointment shall continue until
another attorney is substituted, and said writing or power of attorney shall
stipulate and agree on the part of the association making the same that
any lawful process against said association which is served on such attor-
ney shall be of the same legal force and validity as if served on such
association within this State; and also that in case of the death or absence
of the attorney so appointed, service of process may be made upon any one