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PLAN 2.

Under this plan there is no premium, but interest on the loan, whether at a fixed rate or at a rate determined by bid, is paid by the borrower in advance, either for a fixed period or for a period covered by bid in cases of competition for loans. The borrower receives the remainder and pays no further interest until the interest paid in advance has been consumed. No part of the interest paid in advance is returned to the borrower in case of the repayment of the loan before the maturity of the shares.

Illustration: A member secures a loan on five shares of a maturing value of $200 each, on which he agrees to pay interest at 9 per cent per annum for two years in advance. He receives $820, but gives security for $1,000. During the first two years he pays only his regular dues. At the expiration of two years his monthly payments are as follows: Dues at $2 a share, $10; interest on $1,000 at 9 per cent per annum, $7.50; total, $17.50. These payments continue until the loan is settled by the maturity of the shares or by repayment.

The number of associations operating under this plan is as follows: LOCAL.-California, 2; Georgia, 2; Illinois, 3; Kentucky, 1; Maryland, 1; New Jersey, 1; Oregon, 11; Pennsylvania, 4; South Carolina, 3; Virginia, 1'; Washington, 1; total local associations, 30.

PLAN 3.

Under this plan there is no premium. The funds of the association are loaned to the stockholder who bids to make the greatest number of payments of dues and interest in advance for the right of precedence in obtaining such loan. The borrower receives the remainder and pays no further dues and interest until the amount of such advance payments has been consumed.

Illustration: A member secures a loan on one share of a maturing value of $100, having agreed to pay dues and interest for twenty weeks in advance. Dues are 25 cents a week and interest at the rate of 6 per cent per annum, payable for forty-eight weeks each year, is 12 cents a week. The borrower receives $100, less $5 dues, and $2.50 interest, the amount covered by his bid, or a net amount of $92.50. During the first twenty weeks of his loan he is exempt from all payments. At the expiration of this period he begins the payment of his regular monthly instalment dues and interest on his loan, which he continues until the loan has been satisfied.

The number of associations operating under this plan is as follows: LOCAL.-Kentucky, 4; Ohio, 4; total local associations, 8.

PLAN 4.

Under this plan there is no premium. The borrower pays interest on

ically by the amount of dues paid in by the borrower, and interest is charged on the balance only.

Illustration: A shareholder having borrowed $1,000 on ten shares of a maturing value of $100 each at 8 per cent per annum interest pays, during the first year, in addition to his weekly dues of 25 cents a share, $80 interest in monthly instalments of $6.663. The dues paid by him during the year amounting to $130 are deducted from the principal at the end of the year, leaving $870 as a balance of principal on which he pays $69.60 interest in monthly instalments of $5.80 each during the second year, the amount on which interest is paid being in this way reduced each year until the loan has been satisfied.

The number of associations operating under this plan is as follows: LOCAL.-Illinois, 1; Kentucky, 1; Maryland, 62; Minnesota, 4; total local associations, 68.

PLAN 5.

Under this plan there is no premium. The principal is reduced periodically by the amount of dues and interest paid by the borrower, and interest is charged on the balance only.

Illustration: A shareholder borrows on one share $200, which he receives in full. His first monthly payment will be dues $1, and interest on $200 at 4 per cent per annum, 75 cents. The second month he pays interest on $198.25, the interest-bearing principal being reduced by $1.75, the amount of dues and interest paid during the preceding month. The amount on which interest is paid being in this way reduced each month until the loan has been satisfied.

The number of associations operating under this plan is as follows: LOCAL.-Pennsylvania, 2; total local associations, 2.

PLAN 6.

Loans are awarded to shareholders bidding the highest premium. The amount thus bid is deducted from the maturing value, and the borrower receives the remainder. He gives security for the gross amount and pays interest thereon. No part of the premium paid in advance is returned to the borrower in case of the repayment of the loan before the maturity of the shares.

Illustration: A loan is made on five shares of a maturing value of $200 each at a premium of 5 per cent, or $50. The borrower receives $950, and thereafter pays interest at the rate of 6 per cent per annum on $1,000, in monthly instalments of $5 each, in addition to his monthly dues on five shares of stock at $1 a share.

The number of associations operating under this plan is as follows: LOCAL.-Alabama, 6; Arkansas, 5; California, 24; Colorado, 9; Connecticut, 1; Delaware, 8; Florida, 9; Georgia, 9; Indiana, 40; Iowa, 3; Kansas, 14; Kentucky, 19; Louisiana, 4; Maine, 1; Maryland, 4; Minnesota, 2; Mississippi, 6; Missouri, 1; Montana,1; Nebraska, 18; New

Hampshire, 14; New Jersey, 153; New York, 175; Ohio, 5; Oregon, 1;
Pennsylvania, 11; South Carolina, 5; South Dakota, 1; Tennessee, 2;
Texas, 1; Utah, 1; Virginia, 5; Washington, 4; West Virginia, 6;
Wisconsin, 4; Wyoming, 3; total local associations, 575.
NATIONAL.-Florida, 1; total national associations, 1.

PLAN 7.

Loans are awarded to shareholders bidding the highest premium. The premium bid is deducted from the maturing value, the borrower receiving the remainder. He gives security for the gross amount and pays interest thereon. A part of the premium paid in advance is returned to the borrower in case of the repayment of the loan before the maturity of the shares, determined by the length of time the scheme of the association assumes it will take shares to mature.

Illustration: A shareholder secures a loan on one share of a maturing value of $200 at 10 per cent premium. He receives $180 in cash and pays interest on $200 at 6 per cent until his loan is satisfied. His monthly payments are as follows: Dues, $1; interest, $1. It is assumed his shares will mature in one hundred months. If he repays his loan before maturity, he will be allowed one one-hundredth part of the premium paid by him in advance for each remaining month.

The number of associations operating under this plan is as follows: LOCAL.-Alabama, 7; Arizona, 2; Arkansas, 7; California, 29; Colorado, 12; Connecticut, 1; Delaware, 8; Florida, 2; Georgia, 2; Idaho, 1; Illinois, 219; Indiana, 86; Iowa, 5; Kansas, 34; Kentucky, 5; Louisiana, 20; Maryland, 1; Michigan, 29; Minnesota, 12; Mississippi, 15; Missouri, 184; Montana, 2; Nebraska, 31; New Jersey, 38; New York, 25; North Dakota, 2; Ohio, 9; Oklahoma, 1; Pennsylvania, 351; South Carolina, 17; South Dakota, 6; Tennessee, 41; Texas, 7; Virginia, 2; Washington, 1; Wisconsin, 3; Wyoming, 3; total local associations, 1,220.

NATIONAL.-Georgia, 2; Illinois, 1; Minnesota, 1; South Dakota, 1; Virginia, 1; total national associations, 6.

PLAN 8.

Loans are awarded to shareholders in the order of their applications or by lot. A fixed premium is deducted from the loan in advance, the borrower receiving the remainder. He gives security for the gross amount, and pays interest thereon either for a fixed period or until his loan is satisfied, according to the rules of the association. No part of the premium paid in advance is returned to the borrower in case of the repayment of the loan before the expiration of the period or the maturity of the shares.

Illustration: A shareholder secures a loan on two shares of stock of a maturing value of $500 each. The bylaws of the association provide for a uniform premium of $10 on each share. In this case the borrower

thereon. In addition to his weekly dues of $2 he pays $1.20 interest per week.

The number of associations operating under this plan is as follows: LOCAL.-Arkansas, 3; California, 6; Colorado, 3; Florida, 1; Idaho, 2; Indiana, 3; Iowa, 1; Kentucky, 14; Maryland, 5; Missouri, 1; New Jersey, 5; New Mexico, 1; New York, 29; Pennsylvania, 9; Virginia, 17; West Virginia, 5; Wisconsin, 2; total local associations, 107. NATIONAL.-Alabama, 1; Indiana, 1; total national associations, 2.

PLAN 9.

Loans are awarded to shareholders in the order of their applications or by lot. A fixed premium is deducted from the loan in advance, the borrower receiving the remainder. He gives security for the gross amount, and pays interest thereon, either for a fixed period or until his loan is satisfied. A part of the premium paid in advance is returned. to the borrower in case of the repayment of the loan before the expiration of the period or the maturity of the shares.

Illustration: A shareholder secures a loan on five shares of a matur ing value of $100 each at a fixed premium of 20 per cent. He receives in cash $400, but gives security for $500 and pays interest on the same. His monthly payments are as follows: Dues at 50 cents a share, $2.50; interest on $500 at 8 per cent per annum, $3.33§; total payments each month, $5.834. If the loan is repaid before the expiration of the eighth year after the issue of the series of stock on which the loan has been made, one thirty-second part of the premium paid will be refunded for each quarter of a year of the said eight years then unexpired.

The number of associations operating under this plan is as follows: LOCAL.-Arkansas, 5; Colorado, 2; Illinois, 46; Indiana, 3; Iowa, 2; Kentucky, 1; Louisiana, 1; Michigan, 5; Minnesota, 2; Missouri, 2; New York, 3; Pennsylvania, 54; Washington, 1; Wisconsin, 2; total local associations, 129.

NATIONAL.-Illinois, 1; Louisiana, 1; Tennessee, 1; total national associations, 3.

PLAN 10.

The premium, whether a fixed rate or determined by bid, is deducted from the loan in advance. The borrower receives the remainder and gives security for the gross amount, on which he pays interest. The interest is reduced periodically by crediting the principal with the amount of instalment dues paid in, and charging interest on the balance only.

Illustration: A shareholder secures a loan on five shares of a maturing value of $200 each at a premium of 10 per cent. He receives $900, but gives security for $1,000, on which he pays interest at the rate of 6 per cent per annum. His payments during the first three months are as follows: Dues on five shares at $1 per share a month, $15; interest

on $1,000 for three months at 6 per cent per annum, $15; total for first three months, $30. During the next, and each succeeding three months, the sum total of the dues paid in by the borrower on his shares during the preceding three months is deducted from the principal, and he pays interest on the remainder. His payments during the second three months are: Dues, $15; interest on $985 for three months, $14.77; total, $29.77. The amount on which he pays interest is thus reduced every three months until the loan is satisfied.

The number of associations operating under this plan is as follows: LOCAL.-District of Columbia, 1; New Jersey, 15; Pennsylvania, 15; total local associations, 31.

PLAN 11.

The premium bid by the borrower is deducted from the loan in advance, the borrower receiving the remainder. He gives security for the gross amount and pays interest thereon. He has the option of not participating in the profits, and in lieu thereof has his interest reduced periodically by crediting the principal with the amount of dues paid in and paying interest on the remainder only. One one-hundredth part of the premium paid in advance is returned to the borrower for each unexpired month in case of the repayment of the loan before the maturity of the shares.

Illustration I: The borrower participates in the profits. A shareholder secures a loan on one share of a maturing value of $200 at a premium of 10 per cent; the borrower then receives $180. He gives security for $200, on which he pays interest. His monthly payments are as follows: Dues, $1; interest on $200 at 6 per cent per annum, $1. Illustration II: The borrower who selects the interest-reduction plan does not participate in the profits. Taking the above loan, the monthly payments during the first year would be as follows: Dues, $1; interest on $200 at 6 per cent per annum, $1; total payments each month during the first year, $2. At the end of the year the principal is credited with the dues paid in during the year, reducing the interest-bearing debt to $188, on which the borrower pays interest during the second year, his monthly payments being as follows: Dues, 81; interest on $188 at 6 per cent per annum, 94 cents; total payments each month during the second year, $1.94. The amount on which the borrower pays interest is thus reduced annually until the loan has been repaid.

The number of associations operating under this plan is as follows: LOCAL.-Pennsylvania, 1; total local associations, 1.

PLAN 12.

Loans are awarded to shareholders bidding the highest premium. The premium bid by the borrower together with the interest for the full term for which the loan has been made arc deducted from the loan,

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