LOCAL ASSOCIATIONS OPERATING UNDER THE VARIOUS PREMIUM PLANS-Cont'd. States and territories. Alabama.. Arizona Arkansas California. Colorado. Connecticut Delaware Dist. of Columbia. Florida Associations operating under plan- 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 LOCAL ASSOCIATIONS OPERATING UNDER THE VARIOUS PREMIUM PLANS-Cone'd. re 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 tions. port ed. I Kentucky. Louisiana. Maine. Maryland. Massachusetts. Michigan. Nebraska. New Hampshire. New Jersey. North Carolina North Dakota, Oklahoma.. Rhode Island Tennessee Texas.. Utah. Virginia Washington West Virginia Wisconsin. Wyoming.. 11 5,598 NATIONAL ASSOCIATIONS OPERATING UNDER THE VARIOUS PREMIUM PLANS. [There are no national associations operating under the omitted numbers.] In this plan there is no auction of money or bidding for loans. Loans are usually awarded to members in the order of their applications or by lot. The borrower makes his regular payments of dues and interest on his loan until the shares pledged for such loan have reached maturing value, unless the loan is previously settled; or the number and the amount of his payments are fixed by the rules of the association. The number of associations operating under this plan is as follows: LOCAL.-Alabama, 2; Arkansas, 4; California, 3; Colorado, 4; Connecticut, 2; Georgia, 4; Illinois, 74; Indiana, 46; Iowa, 28; Kansas, 2; Kentucky, 37; Maine, 1; Maryland, 152; Massachusetts, 4; Minnesota, 2; Missouri, 6; Nebraska, 5; New York, 1; North Carolina, 24; Ohio, 35; Oregon, 1; Pennsylvania, 91; South Carolina, 18; Texas, 28; Utah, 2; Virginia, 8; West Virginia, 1; Wisconsin, 1; total local associations, 586. NATIONAL.-Colorado, 1; Georgia, 3; Illinois, 2; Kentucky, 2; Mississippi, 1; Missouri, 1; Montana, 1; New Jersey, 1; New York, 2; North Carolina, 1; Texas, 1; Wisconsin, 1; total national associations, 17. 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 Do further dues and interest until the amount of such advance pay ments 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 $6.66%. 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, S; 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 |