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Treasurer and other officers of loan societies to give security as directed by loan fund board.
Form of security as in schedule (A.)
How securities shall be sued upon.
Loan fund board may require increased security to be found; and on refusal of society may withdraw its certificate.
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21. Every treasurer or other officer or officers, or other person whatsoever, who is or shall be intrusted with the receipt or custody of any sum or sums of money belonging or lent to any loan society, and every other officer or servant of any loan society, shall, when thereunto required by the said loan fund board, become bound, with sufficient sureties, for the just and faithful execution of such office or trust, and the performance of the duties by the rules of such society or by this Act imposed upon him, in such sum or sums of money as to the said board shall seem reasonable and proper, and such security shall and may be given by bond or bonds in the form Number 5 in Schedule (A.) to this Act annexed, or to the like effect, to the secretary of the loan fund board for the time being; and in case of forfeiture it shall be lawful for the said loan fund board, or for the society for whose security such bond or bonds shall have been given, or for the trustees or managers thereof, to sue upon such bond or bonds in the name of the secretary of the said loan fund board for the time being, and to carry on such suit at the costs and charges of and for the use of the said society, fully indemnifying and saving harmless such secretary of the loan fund board from all costs and charges of such suit or suits, or in respect thereof; and in case it shall appear to the said loan fund board in any instance that the security so found is insufficient, either as regards the solvency of the sureties, or the amount of the security, or otherwise, then and in every such case, and from time to time so often as the same shall happen, it shall be lawful for the said loan fund board to require that increased or better security be found; and in case any society shall refuse or neglect to comply with such requisition of the said board within such period as the said board shall appoint in that behalf it shall be lawful for the said board to withdraw their certificate from the said society, and to proceed with regard to the same in like manner as the said board is hereby authorized to proceed with regard to any society which may have violated the provisions of this Act.
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