ment of the loan before the maturity of the shares one-tenth of the premium paid in advance is returned to the borrower for every year then unexpired.

Illustration II: In this case the borrower pays his premium in monthly instalments at the fixed rate of 50 cents a share. He gives security for $2,000, on which he pays interest at the rate of 6 per cent. His monthly payments are as follows: Dues on twenty shares at 50 cents a share, $10; interest on $2,000 at 6 per cent, $10; premium at 50 cents a share, $10; total payments each month, $30.

The number of associations operating under this plan is as follows: LOCAL.-California, 1; Illinois, 1; Indiana, 1; Michigan, 1; total local associations, 4.

PLAN 59.

Loans are awarded to shareholders bidding the highest premium. The entire premium is either deducted from the loan in advance or part of it is deducted in advance and the balance paid in instalments as the borrower may elect. In either case the borrower gives security for the gross amount of the loan and pays interest on the same. 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 I: A member secures a loan on five shares of a maturing value of $200 each, at a premium of 60 cents a share per month. Twelve instalments, equal to $36, are deducted from the loan in advance, leaving the borrower $964. He gives security for $1,000 and pays interest thereon. The remaining premium instalments are paid monthly, with dues and interest, beginning from the date of the loan and continuing for not more than one hundred and eight months, making a total premium of $360. The monthly payments for one hundred and eight months are as follows: Dues at $1 a share, $5; interest on $1,000 at 7 per cent per annum, $5.831; premium at 60 cents a share, $3; total payments each month for one hundred and eight months, $13.83. The subsequent payments would be: Dues, $5; interest, $5.83; total payments each month, $10.831.

Illustration II: In this case the premium bid, 60 cents a share per month on five shares, equals for ten years $360. A reduction, determined by the board of directors, is made if the premium is paid in advance. Supposing a reduction of 40 per cent is allowed, it would leave a premium of $216 to be deducted from the loan, leaving the borrower $784. He gives security for $1,000, and pays interest on the same at 7 per cent per annum. His monthly payments are as follows: Dues on five shares at $1 a share, $5; interest on $1,000 at 7 per cent per annum, $5.834. 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,

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

PLAN 60.

Loans are awarded to shareholders bidding the highest premium. The entire premium is either deducted from the loan in advance or part of it is deducted in advance and the balance paid in instalments. In either case the borrower gives security for the gross amount of the loan and pays interest on the same. When the entire premium has been paid in advance a part of it is returned to the borrower in case of the repayment of the loan before the maturity of the shares.

Illustration I: 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 instalments, equal to $30, are deducted from the loan in advance, leav ing the borrower $970. He gives security for $1,000 and pays interest on the same. The remaining premium instalments are paid monthly, with dues and interest, beginning from date of loan and continuing for not more than one hundred and eight months, making a total premium of $300. The monthly payments for one hundred and eight months are as follows: Dues on five sharès at $1 a share, $5; interest on $1,000 at 7 per cent per annum, $5.833; premium at 50 cents a share, $2.50; total payments each month for one hundred and eight months, $13.33. The subsequent payments are: Dues, $5; interest, $5.834; total payments each month, $10.834.

Illustration II: In this case the premium bid, 50 cents a share per month on five shares, equals for ten years $300. A reduction of this of 40 per cent is made if the premium is paid in advance, or an amount equal to $120, leaving the premium to be deducted in advance $180. The borrower then receives $820, but gives security for $1,000, and pays interest on the same at 7 per cent per annum. His monthly payments will be: Dues on five shares at $1 a share, $5; interest on $1,000 at 7 per cent per annum, $5.83. In case of the repayment of the loan before the maturity of the shares, one tenth of the premium paid in advance is returned to the borrower for each unexpired year. The number of associations operating under this plan is as follows: LOCAL.-California, 5; total local associations, 5.

PLAN 61.

Loans are awarded to shareholders bidding the highest premium. The premium is either deducted from the loan in advance or paid in instalments. It is, however, not forfeited to the borrower, but is placed to his credit, either in whole or in part. He gives security for the full amount of the loan and pays interest thereon.

Illustration I: If the maturing value of a share is $200 and a member bids 25 per cent premium, he receives in cash $150 but pays interest on $200. When the dues and profits equal the net amount received by the borrower, his loan is cancelled.

Illustration II: At a premium of $1 a share a loan of $200 costs the

of each bi-weekly payment, $2.50. Of this amount $1.50 paid on account of dues and premium is credited to the borrower, only the interest going to the association. If the borrower bids a premium of more than $1, the excess goes to the general fund of the association and not to the individual credit of the borrower. The payments continue until the dues, together with the premium and dividends, equal the amount of the loan.

The number of associations operating under this plan is as follows: LOCAL.-District of Columbia, 16; Florida, 1; Georgia, 6; Pennsylvania, 24; Virginia, 12; total local associations, 59.

PLAN 62.

Under this plan the premium is either a fixed rate or determined by bid. The borrower receives the full amount of the loan, but gives security covering both the loan and the premium, and pays interest on the amount actually received by him until the shares reach the value of the face of the mortgage.

Illustration: A member borrows on one share $100, at a premium of 10 per cent. He gives security for both the loan and premium, $110, but he pays interest only on $100, the amount received. His weekly payments are as follows: Dues, 25 cents; interest on $100 at 6.24 per cent per annum, 12 cents; total payments each week, 37 cents. These payments continue until the share has reached the value of $110, unless the loan has been previously repaid.

The number of associations operating under this plan is as follows: LOCAL.-Nevada 1; New Jersey, 1; New York, 24; total local associations, 26,

PLAN 63.

Under this plan the premium is either a fixed rate or determined by bid. The borrower receives the full amount of the loan, but gives security covering both the loan and the premium, and pays interest on both until the shares reach the value of the face of the mortgage.

Illustration: A member secures a loan of $200 on one share, at a premium of 20 per cent. He receives the full amount of $200, and gives security for $240, on which he pays interest. His monthly payments are as follows: Dues, $1; interest on $240 at 6 per cent per annum, $1.20; total payments each month, $2.20. These payments continue until the share has reached the value of $240, unless the loan has been previously repaid.

The number of associations operating under this plan is as follows: LOCAL.-Georgia, 1; Illinois, 1; New York, 2; Pennsylvania, 2; total local associations, 6.

PLAN 64.

Under this plan the premium is either a fixed rate or determined by bid. The borrower receives the full amount, but gives security cover

ing both the loan and the premium, and pays interest on both. The premium is paid in instalments, usually at the same time with dues and interest. Payments of dues, premiums, and interest continue until the shares reach maturing value.

Illustration: A member borrows $1,000 on ten shares of a maturing value of $100 each, at a premium of 25 per cent. He receives $1,000, but gives security for $1,250, the amount of his loan and premium. He pays the premium in monthly instalments by taking three additional shares and paying dues thereon. His monthly payments are as follows: Dues on ten shares at 50 cents a share, $5; dues on three additional shares in payment of premium, $1.50; interest on $1,250 at 7 per cent per annum, $7.291; total payments each month, $13.791. These payments continue until his shares have reached maturity, when he receives $50, the difference between the debt and the maturity value of thirteen shares.

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

PLAN 65.

In this case the borrower receives the full amount of the loan, but gives security covering both the loan and the premium, and pays interest on both until the shares pledged for the loan reach maturing value. Illustration: A member borrows $150 on one share, at a premium of 10 per cent. He receives the full amount of $150 and gives security for $165, on which he pays interest at the rate of 6 per cent per annum. Payments are bi-weekly and are as follows: Dues, 50 cents; interest on $165 at 6 per cent, 38, cents. These payments continue until the share has reached the value of $150, being the maturing value of shares, unless the loan is previously repaid. Although the premium is included in his mortgage, the borrower does not really pay it; in fact, the only premium he pays is the interest on the difference between $165 and $150, the amount actually received.

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

PLAN 66.

Loans are awarded to shareholders bidding the highest premium. The borrower gives security for the loan, the premium, in whole or in part, and the total dues for a definite period. This he pays off in equal instalments extending over a definite period, at the expiration of which the loan is cancelled. A rebate is allowed if the loan is repaid before the end of the period.

Illustration: A loan of $500 is made at a premium of $100; these two amounts are added to the dues on one share of stock for ten years,

$500, but gives security for $730, the total sum of the loan, dues, and premium. The total amount of his mortgage is paid in ten years in monthly instalments of $6.08 each. If more than $100 premium is bid, the excess is deducted from the $500, the borrower receiving the remainder, but giving security for the full amount, and discharging his debt by monthly payments as illustrated above.

If a loan is repaid before maturity, rebates are allowed as follows: If repaid at any time prior to the expiration of five years, the borrower is allowed a rebate of one-half of the premium instalments for five years, and all the dues for five years. For example: At the end of the year he has paid $73 on his mortgage, of which $50 is return of loan, $10 is premium, and $13 is dues. He now desires to pay off his entire indebtedness, and the cash required of him for this purpose is $567, stated as follows:

Original amount of mortgage

Deduct amount paid during one year...

Balance due

From this balance deduct 50 per cent of five years' premium

instalments (50 per cent of $50).

Also deduct all of five years' dues ($13×5)

$730.00

73.00

657.00

$25.00

65.00

90.00

567.00

Amount required to pay off indebtedness...

If the debt is paid at any time after the expiration of five years, the borrower is allowed a rebate of 50 per cent of the premium instalments, and all of the dues unpaid.

Members who borrow after having paid dues prior to borrowing are given credit for the withdrawal value of their stock at the time the loans are made, but such credit is not given until the expiration of one year from date of loan. Thus, suppose in the case of the borrower above cited, his share at the time he secured his loan had a withdrawal value of $25. During the first year of the loan he is required to pay the full amount of instalments, $73. At the end of the year he is credited with the withdrawal value of his share, $25, and during the second year of his loan he is required to pay only $48. After the second year until the loan is paid off, he pays the full amount, $73,each year.

The number of associations operating under this plan is as follows: LOCAL.-New Jersey, 3; total local associations, 3.

PLAN 67.

Loans are awarded to shareholders bidding the highest premium. The premium is either deducted from the loan in advance or the bor rower receives the full amount as may be agreed upon. If the premium is deducted, the borrower receives the balance, but gives security for the full amount and pays interest thereon. If the borrower receives the full amount of the loan, he gives security for both loan and premium, and pays interest on the same. Payments of dues and interest continue