268 ARTICLE 23.

celled; and it shall be lawful for such corporation to issue an equal number
of new shares 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 member 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 corpora-
tions.

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

Act which gave additional powers to association incorporated as building
association, but provided that it should be subject to all laws relating to build-
ing association, the by-laws of said corporation do not prevail over the statute.
Mortgage Bond Asso. v. Baker, 157 Md. 315.

One to whom stock is issued by building and loan association in connection
with loan, but which stock is redeemed by the making of the loan, is not a
member of the association and is not charged with any liability fixed by a by-
law of the association apart from liability in mortgage deed, etc.; nor is one
borrowing from association affected by a by-law of which he had no knowledge
and which was not in printed by-laws given him. Losses for premature pay-
ment of loan must be shown. Watson v. Loan & Savings Asso., 158 Md. 339.

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.

Note issued by building and. loan association to a free shareholder for the
amount of a deposit previously made by him, for the purpose of changing his
status from that of a free shareholder to that of a general creditor, was invalid
under this section. Monroe v. Broening, 167 Md. 239.

Cited but not construed in Watson v. Loan & Savings Asso., 158 Md. 341.

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