Section  1.  Cooperative  banking  associations  may  bo  incorporated  under  this  act
upon  compliance  with  the  requirements  of  section  cloven,  article  sixteen,  state
constitution,  when  ten  or  more  persons  of  lawful  age,  citizens  of  this  common-
wealth, who  shall  have  associated  themselves  together  by  written  articles  of  asso-
ciation for  the  purpose  of  carrying  on  a  cooperative  banking  business  where  th»
profits  derived  from  the  business  shall,  after  paying  all  legitimate  expenses,  be
divided  pro  rata  among  the  depositors  and  borrowers  of  the  bank  in  proportion  to
their  deposits  or  loans  to  each  class,  one-half  of  the  net  profits ;  and  a  dividend  not
to  exceed  six  per  centum  per  annum  on  original  subscribed  stock  may  be  considered
legitimate  expenses.
Sec.  2.  Such  persons  so  associating  may  adox^t  any  corporate  name  indicating  their
cooperative  character  and  which  has  not  been  previously  adopted  by  any  other  cor-
poration formed  under  this  act :  Provided^  the  last  three  words  of  such  name  shall
be  Cooperative  Banking  Association,  and  it  shall  not  be  lawful  to  use  in  such  name
either  of  the  words  ''society"  or  "company,"  and  that  any  violation  of  this  proviso
by  any  corporation  formed  iindcr  this  .act  shall  render  each  member  thereof  person-
ally liable  for  all  its  debts.
