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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, $14.774; total, $29.771. 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, $1; 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 are deducted from the loan,

monthly instalments in the time specified for the loan. No part of the interest or premium paid in advance is returned to the borrower in ease of the repayment of the loan before the maturity of the shares.

Illustration: A member secures a loan on forty shares of a maturing value of $25 each the first month of a new series at a premium of 5 per cent. It is estimated that the shares will require seventy-six months to mature. The interest on $1,000 for this period, fixed by the association at $428, and the preminm bid by the borrower, amounting to $50, are deducted from the loan, leaving the borrower $522. monthly payments then consist of $10 dues until maturity of his shares.

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

PLAN 13.

This plan is in every respect similar to plan 12, except that a 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.

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

PLAN 14.

Loans are awarded to shareholders bidding the highest premium. The premium, if any, is deducted from the loan, the borrower receiving the remainder. He gives security for the gross amount of the loan, and pays interest thereon. The premium bid determines the time for which the loan is to run, the time decreasing as the premium increases. No part of the premium is returned to the borrower in case of the repayment of the loan before the expiration of the time for which it is made.

Illustration: Weekly payments on each loan of $100 are as follows: Dues, 25 cents; interest, 15 cents; total, 40 cents. On a loan made at par these payments continue for eighty-five months; on a loan made at 10 per cent premium, payments continue seventy-five months, and so on reducing the time one month for each $1 of premium bid, except that on loans running for less than four years one month is deducted for each $1.25 of premium bid.

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

PLAN 15.

Loans are awarded to shareholders bidding the highest premium. The premium is deducted from the loan in advance, the borrower receiv. ing the remainder. He pays interest only on the amount actually received. 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 member obtains a loan on one share of a maturing value of $100 at 10 per cent premium. He receives $90 cash and pays interest on this amount at the rate of 6 per cent per annum. His pay. ments are as follows: Dues per week, 25 cents; interest per month, 45 cents. These payments continue until the share has reached the maturing value of $100.

The number of associations operating under this plan is as follows:

LOCAL.-Indiana, 4; Iowa, 1; Sonth Carolina, 1; Virginia, 1; West Virginia, 13; total local associations, 20.

PLAN 16. Loans are awarded to shareholders bidding the highest premium. The amount thus bid is deducted from the loan, the borrower receiving the remainder. The borrower pays interest only on the amount actually received. 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.

Illustration: A shareholder secures a loan on one share of a maturing value of $200 at 10 per cent premium. He receives $180 and pays interest on this amount. His monthly payments are as follows: Dues, $1; interest on $180 at 6 per cent per annum, 90 cents. These pay. ments continue until the share has reached the maturing value of $200. 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.

The number of associations operating under this plan is as follows:

LOCAL.-Arkansas, 2; Illinois, 8; Indiana, 23; Iowa, 3; Kansas, 1; Mississippi, 2; New York, 1; Pennsylvania, 80; Tennessee, 1; total local associations, 121. NATIONAL.-Tennessee, 3; total national associations, 3.

PLAN 17. Loans are awarded to shareholders in the order of their applications or by lot. The premium, a fixed rate, is deducted from the loan in advance, the borrower receiving the remainder. He gives security for the gross amount, but pays interest only on the amount actually received. 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 member secures a loan on one share of a maturing value of $100. A fixed premium of 10 per cent is deducted in advance, the borrower receiving $90, on which he pays interest at the rate of 8 per cent per annun. His monthly payments are as follows: Dues, 50 cents; interest, 60 cents.

The number of associations operating under this plan is as follows:

PLAN 18.

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, but pays interest only on the amount actually received either for a fixed period or until his shares mature. 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.

Illustration: A shareholder secures a loan on one share of a maturing value of $200. A fixed premium of $10 is deducted in advance, the borrower receiving $190, on which he pays interest at the rate of 6 per cent per annum. His payments are as follows: Dues per week, 50 cents; interest per quarter, $2.85.

The number of associations operating under this plan is as follows: LOCAL.-Indiana, 7; New York, 1; total local associations, 8.

PLAN 19.

Loans are awarded to shareholders bidding the highest premium. The premium is deducted from the loan in advance, the borrower receiv. ing the remainder. He pays interest only on the amount actually received. The principal is reduced periodically by the amount of instalment dues paid in, interest being charged only on the balance. 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.

Illustration: A shareholder secures a loan on one share of a maturing value of $200, at a premium of $20. The borrower receives $180, on which he pays interest at the rate of 6 per cent per annum. The principal is reduced annually by the amount of dues paid in, and interest is charged on the balance remaining at the end of each year. The monthly payments for the first year are as follows: Dues, $1; interest on $180 at 6 per cent per annum, 90 cents. For the second year: Dues, $1; interest on $168 at 6 per cent per annum, 84 cents. 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.-Minnesota, 2; Pennsylvania, 2; total local associations, 4.

PLAN 20.

Loans are awarded to shareholders bidding the highest premium. The borrower receives the full amount of his loan and pays interest thereon. The premium is divided into a certain number of equal parts, usually into as many parts as the scheme of the association assumes it will take months or other periods of time for shares to mature. These premium instalments are paid periodically, usually at the same time with the dues and interest. They continue until the entire amount of

the premium has been paid, after which the borrower pays only dues and interest until the loan has been settled either by repayment or by the maturity of the shares.

Illustration: A shareholder secures a loan of $200 at a premium of: 5 per cent, and, assuming that it will take one hundred months for the shares to mature, his monthly payments for one hundred months are as follows: Dues, $1; interest on $200 at 6 per cent per annum, $1; premium, one one-hundredth part of $10, 10 cents; total payments cach month, $2.10.

The number of associations operating under this plan is as follows:

LOCAL.--Arizona, 2; California, 1; Colorado, 1; Connecticut, 3; Georgia, 1; Illinois, 62; Indiana, 3; Iowa, 4; Kansas, 4; Kentucky, 6; Michigan, 5; Minnesota, 29; Mississippi, 3; Missouri, 47; Montana, 2: Nebraska, 2; New Jersey, 7; New Mexico, 2; New York, 8; North Dakota, 2; Ohio, 5; Pennsylvauia, 21; South Dakota, 3; Tennessee, 1; ginia, 2; West Virginia, 2; Wisconsin, 7; total local associations, 235.

NATIONAL.-Illinois, 3; Michigan, 1; Missouri, 2; Washington, 1; Wisconsin, 1; total national associations, 8.

PLAN 21.

Loans are awarded to shareholders in the order of their applications or by lot at a fixed premium. The borrower receives the full amount of his loan and pays interest on the same. The premium is divideil into a certain number of equal parts, usually into as many parts as the scheme of the association assumes it will take months or other periods of time for shares to mature. These premium instalments are paid periodically, usually at the same time with dues and interest. They continue until the entire amount of the premium has been paid, after which the borrower pays only dues and interest until the loan has been settled by repayment or by the maturity of the shares.

Illustration: A loan of $1,000 is awarded to a member at a fixed premium of 25 per cent. The premium is divided into ninety-six equal parts; one of such equal parts is paid monthly at the same time with dues and interest. Tbe monthly payments are as follows: Dues on five shares at $1 a share, $5; interest on $1,000 at 8 per cent per annum, $6.663; premium, $2.60. These payments continue until the loan has been settled, either by repayment or by reason of the shares having reached the full value of $200 each.

The number of associations operating under this plan is as follows:

LOCAL.-California, 1; Illinois, 12; Iowa, 2; Kansas, 1; Minnesota, 7; Missouri, 8; New Jersey, 1; New York, 2; North Dakota, 1; total local associations, 35.

NATIONAL.-Illinois, 1; Missouri, 1; New York, 1; total national

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