§ 378. Power to issue shares; dues thereon. 1. Every savings and loan\nassociation shall be either permanent or serial in character. A\npermanent association shall be one which issues instalment shares, not\nin series, and credits dividends thereon to the holders of such shares\nindividually. A serial association shall be one which issues instalment\nshares in series and credits the dividends apportioned to such shares by\nseries. No additional shares shall be issued in any series after a\ndividend has been credited thereto unless the person to whom such shares\nshall be issued shall pay therefor the book value of such shares\nincluding the estimated accrued dividend thereon since the close of the\npreceding dividend period. Dividends credited by a serial association\nupon shares issued by it other than instalment shares may be credited to\nthe holders of such shares individually.\n 2. The members of a savings and loan association shall be: (1) those\npersons who are the holders of record of shares whose membership shall\ncontinue until such shares have matured and been paid, or have been\nwithdrawn, retired, suspended, forfeited, or transferred; and (2) all\nborrowers from the association and all persons obligated to the\nassociation on loans whose membership shall continue until such loans or\nobligations have been paid. Each member shall be entitled to at least\none vote upon all question at any meeting of such members of the\nassociation, except when by statute the vote is required to be based\nupon the capital of the association. Every member entitled to vote at a\nmeeting of members of the association may authorize another person or\npersons to act for him by proxy, but no director, officer, clerk, teller\nor bookkeeper of the savings and loan association shall act as proxy at\nany meeting of such association. Every proxy must be signed by the\nmember or his attorney-in-fact. No proxy shall be valid after the\nexpiration of eleven months from the date thereof unless otherwise\nprovided in the proxy. Every proxy shall be revocable at the pleasure of\nthe member executing it. The authority of the holder of a proxy to act\nshall not be revoked by the incompetence or death of the member who\nexecuted the proxy unless, before the authority is exercised, written\nnotice of an adjudication of such incompetence or of such death is\nreceived by the officer of the association responsible for maintaining\nthe list of members. The by-laws may prohibit or further limit proxies\nfor members and their duration. No director or officer of a savings and\nloan association shall be eligible to act as an inspector of an election\nof directors at any meeting of members of the association.\n 3. The capital of every such association shall consist of the dues and\ndividends credited to its members upon their shares either individually\nor by series, time deposits held by such association pursuant to section\nthree hundred seventy-eight-a of this chapter together with interest\naccrued on such deposits, and demand deposits held by such association\npursuant to subdivision thirteen of section three hundred eighty-three\nof this chapter.\n 4. Any savings and loan association may issue shares of the following\nclasses: (a) Instalment shares, class one, upon which regular payments\nof dues shall be made as provided in the by-laws of the association,\nuntil such shares reach their matured value or are withdrawn, retired or\nforfeited; and instalment shares, class two, which shall have no\nparticipation in dividends and upon which the dues payable in regularly\nincreasing amounts are applied in reduction of a debt due to the\nassociation from the holder of such shares in accordance with a\ndirection given by him.\n (b) Savings shares, upon which dues shall be paid in such sums, at\nsuch times and for such purposes as the holder thereof may elect, until\nthe shares are withdrawn or retired. Upon the request of the holder\nthereof, such savings share
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