AN ACT AMENDING COMMONWEALTH ACT
NUMBERED SEVEN HUNDRED AND TWENTY-SIX BY EXTENDING THE PROVISIONS
THEREOF TO MUTUAL BUILDING AND LOAN ASSOCIATIONS UNDER CERTAIN
CONDITIONS
Section 1. Commonwealth
Act Numbered Seven hundred and twenty-six is amended by inserting,
after section ten thereof, two new sections which shall read as follows:
"Sec.
10 (a). The term "bank" as used in this Act shall be
deemed to include mutual building and loan associations: Provided, That
the provisions of section eight, relative to the ratio to be maintained
between the remaining unimpaired capital and surplus and the
outstanding deposit liabilities, and the whole of sections nine and ten
of this Act shall not be applicable to mutual building and loan
associations: And provided, further, That mutual building and loan
associations are authorized to issue preferred shares of stock as
mentioned herein solely for the purposes of this Act.
"Sec. 10. (b).
The Board shall not invest in preferred shares of any mutual building
and loan association until after such association, with the approval of
the Bank Commissioner, shall have ascertained its true financial
condition and apportioned the loss incurred during the period of enemy
occupation, if any, by prorating such loss among the shareholders of
all classes according to the book value of all outstanding shares:
Provided, That recoveries made of any loss incurred during the period
of enemy occupation shall be distributed to all the shareholders
against whom such loss has previously been charged."
Sec. 2. This
Act shall take effect upon its approval.
