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PLAN 22.

Loans are awarded to shareholders bidding the highest premium. The total amount of the premium bid 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. A certain number of these premium instalments are deducted from the loan in advance, the borrower receiving the remainder. He gives security for the gross amount and pays interest on the same. The payment of the remaining instalments begins either immediately or at the expiration of the period for which the premium was deducted and continues 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: On a loan on five shares of a maturing value of $200 each, at a premium of 30 per cent, the total premium of $300 is divided into one hundred equal parts of $3 each. Twelve of such parts are deducted from the amount of the loan, leaving the borrower $964. The payınents each month for eighty-eight months are as follows: Dues at $1 a share, $5; interest on $1,000 at 6 per cent per annum, $5; premium, $3; total, $13. If at the end of eighty-eight months the shares have not matured the borrower continues to pay dues and interest to maturity.

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

LOCAL.-California, 6; Illinois, 75; Missouri, 2; Ohio, 1; South Dakota, 1; total local associations, 85.

PLAN 23.

Loans are awarded to shareholders in the order of their applications or by lot at a fixed premium. Part of the premium. is deducted from the loan in advance, the borrower receiving the remainder. He gives security for the gross amount and pays interest on the same. The balance of the premium is paid in equal instalments, usually at the same time with dues and interest, payment beginning either at once or upon the expiration of the period for which the premium was deducted, and continuing during the entire term of the loan or ceasing at the end of a fixed period, 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 member secures a loan on five shares of a maturing value of $200 each, at a fixed premium of 30 per cent, or a total of $300. Ten per cent of the premium, or $30, is deducted from the amount of the loan, leaving the borrower $970. The balance of the premium, $270, is divided into one hundred equal parts of $2.70 each. The monthly payments are as follows: Dues at $1 a share, $5; interest on $1,000 at 6 per cent per annum, $5; premium, $2.70; total, $12.70.

H. Ex. 209-26

If, at the end of one hundred months, the shares have not matured, the borrower continues to pay dues and interest to maturity.

The number of associations operating under this plan is as follows: LOCAL.-California, 9: Illinois, 7; total local associations, 16.

PLAN 24.

Loans are awarded to sbareholders bidding the highest premium. The total amount of the premium bid is divided into a certain number of equal parts. A certain part of the premium and the interest on the loan for a certain period are deducted in advance, the borrower receiving the remainder. During the period covered by the prepayment of the premium and interest the borrower pays only his regular dnes, but at the expiration of this period, in addition to his dues, and at the same time, he pays one of the remaining premium instalments and interest on his loan.

Illustration: A member secures a loan on ten shares of a maturing value of $100 each, at 403 per cent premium. Two-tenths of the premium together with the interest for one year at the rate of 60 cents a share per month are deducted from the loan, leaving the borrower $817. During the first year of his loan he pays only his regular dues of 50 cents a share per month. After the first year his monthly pay. ments are as follows: Dues, $5; interest, $6; and premium, $3.75, being one one-hundred-and-eighth of the premium bid by him upon the purchase of his loan.

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

PLAN 25.

The premium, whether a fixed rate or determined by bid, is divided into a certain number of 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. The borrower receives the full amount of the loan, and pays interest on the same; but the principal is reduced periodically by the dues paid in, and interest is charged on the balance only.

Illustration: A member secures a loan on five shares of a maturing value of $200 each, at a premium of $90. Assuming that it will take ninety months for the shares to run to maturity, the premium is divided into ninety equal parts, one of which he pays each month. He receives the full amount of his loan, on which he pays 6 per cent interest. The principal is credited every three months with all dues paid in during

remainder. The payments each month during the first three months are as follows: Dues at 50 cents a share, $2.50; interest on $1,000 at 6 per cent per anrum, $5; premium, $1; total payments each month during first three months, $8.50. Payments each month during the next three months are: Dues, $2.50; interest on $992.50 at 6 per cent per annum, $4.964; premium, $1; total payments each month during the second three months, $8.461. The amount on which the borrower pays interest is thus reduced quarterly until the loan has been repaid.

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

LOCAL.-Missouri, 1; New Jersey, 1; Ohio, 3; Pennsylvania, 1; total local associations, 6.

PLAN 26. Loans are awarded to shareholders bidding the highest premium. The premium is divided into a certain number of equal parts, payable at such times as the rules of the association may require. An arbitrary reduction in the interest rate is made periodically,

Illustration: A member secures a loan on ten shares of a maturing value of $100 each, at a premium of $100, the loan having been taken during the first year of the series. The premium is divided into five annual payments, one of which is payable each year. The interest during the first year is 10 cents per week per share, second year 9 cents, third year 84 cents, fourth year 7 cents, fifth year 6 cents, sixth year 5 cents, seventh year 4 cents, after that 3 cents per week per share. The payments each week during the first year are as follows: Dues at 25 cents a share, $2.50; interest on $1,000 at 10 cents on each $100, $1; total payments each week during first year, $3.50. The payments each week during the second year are: Dues, $2.50; interest, 90 cents; total, $3.40; the interest being reduced each year according to the foregoing interest table.

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

PLAN 27.

Loans are awarded to shareholders bidding highest premium. The premium bid is a certain rate per cent per annum, or a certain amount each month, or at such periods of time as the rules of the association require. The payment of premiums either continues during the entire term of the loan or ceases at the end of a fixed period. The borrower receives the whole amount of the loan and pays interest on the same.

Illustration: A member secures a loan of $2,000, requiring ten shares of stock, on which he has bid 10 cents per share per month. His monthly payments are as follows: Dues at $1 a share, $10; interest on $2,000 at 6 percent per annum, $10; premium, $1; total payments each month, $21. 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.-Alabama, 4; Arkansas, 2; California, 3; Colorado, 7; Connecticut, 7; Delaware, 5; District of Columbia, 2; Florida, 8; Georgia, 3; Idaho, 1; Illinois, 60; Indiana, 97; Iowa, 11; Kansas, 11; Kentucky, 30; Maine, 27; Massachusetts, 100; Michigan, 20; Minnesota, 13; Vissouri, 54; Nebraska, 9; New Hampshire, 2; New Jersey, 48; Ver Mexico, 2; New York, 111; Ohio, 226; Oregon, 1; Pennsylvania, 293: Rhode Island, 5; South Carolina, 3; South Dakota, 3; Tennessee, 13; Texas, 2; Virginia, 2; Washington, 7; West Virginia, 16; Wisconsin, 17; total local associations, 1,227.

NATIONAL.--Alabama, 2; Illinois, 3; Indiana, 5; Iowa, 1; Kansas, 1; Minnesota, 1; Missouri, 10; Nebraska, 2; New Hampshire, 1; New Jersey, 1; New York, 4; Pennsylvania, 1; Tennessee, 8; Texas, 1: Virginia, 2; Wisconsin, 1; total national associations, 44.

PLAN 28.

Loans are awarded to shareholders in the order of their applicatious or by lot. The borrower receives the full amount of his loan and pays interest on the same. The premium is a certain rate per cent per annum, or a certain amount each month or at such periods of time, as the rules of the association require.

Illustration: A member secures a loan of $1,000 at 6 per cent interest per annum and at a fixed premium of $6.25, payable monthly. He pledges ten shares of stock, payable monthly, at 624 cents per share to be applied to the payment of the loan. He is also required to carry one additional share called premium stock for each $100 borrowed, to be applied to the payment of the premium. His monthly payments are as follows: Dues, $6.25; premium, $6.25; interest at 6 per cent per annum, $5; total payments each month, $17.50.

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

LOCAL.-Alabama, 3; Arkansas, 2; California, 1; Colorado, 1; District of Columbia, 1; Georgia, 3; Illinois, 46; Indiana, 103; Iowa, 18; Kansas, 3; Kentucky 8; Louisiana, 1; Maryland, 11; Michigan, 9; Minnesota, 8; Mississippi, 3;, Missouri, 38; New Jersey,1; New York, 7; Ohio, 93; Pennsylvania, 36; South Carolina, 1; Tennessee, 3; Texas, 1; Virginia, 5; West Virginia, 11; Wisconsin, 1; total local associations, 418.

NATIONAL.-Alabama, 1; California, 8; Colorado, 3; District of Columbia, 2; Georgia, 7; Illinois, 19; Indiana, 10; Iowa, 5; Kentucky, 15; Louisiana, 1; Maryland, 3; Michigan, 2; Minnesota, 13; Missouri, 3; Nebraska, 2; New York, 17; North Dakota, 1; Ohio, 3; Oregon, 3; Pennsylvania, 2; South Dakota, 2; Tennessee, 5; Utah, 1; Virginia, 4;

PLAN 29.

Loans are awarded to shareholders bidding the highest premium. The premium bid is either a certain rate per cent per annum or a certain amount each month or at such periods of time as the rules of the association require. A certain number of these premium instalments are deducted from the loan in advance, the borrower receiving the remainder. The payment of the remaining premium instalments begins either at once or at the expiration of the period covered by the advance payment and continues during the entire term of the loan, or ceases at the end of a fixed period. The borrower pays interest on the gross amount of the loan.

Illustration: A member secures a loan on five shares of a maturing value of $200 each, at a premium of 50 cents a share per month. Twelve premium instalments are deducted in advance, the borrower receiving $970. Borrower thereafter pays in addition to his monthly dues and interest on his loan a monthly instalment premium of $2.50 until twelve months prior to maturity of the shares upon which the loan is made. The monthly payments are as follows: Dues at $1 a share, $5; interest at 6 per cent per annum, $5; premium, $2.50.

The number of associations operating under this plan is as follows: LOCAL.-California, 8; Illinois, 6; total local associations, 14.

PLAN 30.

Loans are awarded to shareholders in the order of their applications or by lot The premium is either a certain rate per cent per annum or a certain amount each month, or at such periods of time as the rules of the association require. The premium for a certain period is deducted from the loan in advance, the borrower receiving the remainder. The payment of the remaining premium instalments begins either at once or at the expiration of the period covered by the advance payment, and continues during the entire term of the loan, or ceases at the end of a fixed period. The borrower pays interest on the full amount of the loan.

Illustration: A member secures a loan on ten shares of the maturing value of $100 each, at a fixed premium of 50 cents a share per month. The premium for the first six months is deducted in advance, the borrower receiving $970. During the first six months he pays only dues and interest on his loan. After six months his monthly payments are as follows: Dues at 60 cents a share, $6; interest at 6 per cent per annum, $5; premium at 50 cents a share, $5; total payments each month until maturity of shares, $16.

The number of associations operating under this plan is as follows:
LOCAL.–California, 1; total local associations, 1.
NATIONAL. - New York, 1; total national associations, 1.

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