§ 26-204 — Object; supervision by federal board; strict compliance with provisions required; exception; violations.

District of Columbia § 26-204

• Jurisdiction: District of Columbia
• Title 26: Banks and Other Financial Institutions.
• Ch. 2: Building Associations.
• Subch. I: General.

Text

(a) The object of such corporation shall be the accumulation of a capital in money to be derived from the savings and accumulations by the members thereof, to be paid into said corporation in such sums and at such times as may be designated by the bylaws of said corporation, from which the members thereof may obtain advances upon their shares of stock; provided, that the Federal Home Loan Bank Board is authorized, whenever such Board may deem it useful; to cause examination to be made into the condition of any building association incorporated under the provisions of this chapter, as well as any other building or loan association located or doing business in the District of Columbia. The expenses necessarily incurred in making any such examination shall be paid by such association to the Federal Home Loan Bank Board at the time of the making of such examination; and provided further, that every building or loan association located and doing business in the District of Columbia shall make to the Federal Home Loan Bank Board at least 1 report during each year, according to the form which may be prescribed by such Board, verified by the oath or affirmation of the president or secretary of such association and attested by the signature of at least 3 of the directors.

(b) The Federal Home Loan Bank Board shall also have power to take possession of any company or association whenever in the Board’s judgment any such company or association is insolvent or is knowingly violating the laws under which it is operated and to liquidate the same in the manner provided in rules and regulations which said Board is hereby authorized to adopt, and said Board may also provide in such rules and regulations a procedure for the voluntary liquidation of any such company or association; and if any such company or association which has not gone into liquidation and for which a receiver has not already been appointed for other lawful cause shall discontinue its operations for a period of 60 days, the Federal Home Loan Bank Board may, if such Board deems it advisable, appoint a receiver for such company or association; provided further, that from and after the 1st day of July, 1909, no person, company, association, copartnership, or corporation shall conduct or carry on in the District of Columbia the kind of business named in this section and § 26-206 , without strict compliance in all particulars with the provisions of this section and § 26-206 ; provided, that building associations organized and in actual operation before March 4, 1909, need not be incorporated. After April 11, 1986, the preceding language in this section shall not apply to entities formed under this chapter. Thereafter the Superintendent of Banking and Financial Institutions [Commissioner of the Department of Insurance, Securities, and Banking] shall supervise these entities.

(c) Any person, officer, or agent of any company, firm, or corporation who shall wilfully violate any of the provisions of this section shall be deemed guilty of a misdemeanor, and shall on conviction thereof be punished by a fine of not more than $1,000 or by imprisonment not longer than 2 years, or by both said punishments, in the discretion of the court. That any wilful false swearing in regard to any certificate, or report, or public notice required by the provisions of this section and § 26-206 shall be perjury, and shall be punished as such according to the laws of the District of Columbia. And any misappropriation of any of the money of any corporation or company, formed under or availing itself of the privileges of this section and § 26-206 , or of any building or loan association located or doing business in the District of Columbia, or any money, funds, or property intrusted to any such corporation, company, or association, shall be held to be theft and shall be punished as such under the laws of said District.

Legislative History

Mar. 3, 1901, 31 Stat. 1299, ch. 854, § 691; Mar. 4, 1909, 35 Stat. 1058, ch. 303, § 1; Sept. 15, 1951, 65 Stat. 323, ch. 404, § 1; Dec. 1, 1982, D.C. Law 4-164, § 601(i), 29 DCR 3976; Nov. 23, 1985, D.C. Law 6-63, § 106(a)(2); as added Apr. 11, 1986, D.C. Law 6-107, § 2(k), 33 DCR 1168