Page images
PDF
EPUB

Illustration II: If the borrower selects the instalment plan, the premium, a fixed rate of 30 per cent, equal to $300 on a loan of $1,000, is divided into one hundred and twenty equal instalments of $2.50 each. Twelve of these instalments are deducted from the loan in advance, leaving the borrower $970. He gives security for $1,000 and pays interest on the same. His 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, $2.50; total payments each month, $14.163. These payments 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 number of associations operating under this plan is as follows: LOCAL.–California, 7; total local associations, 7.

PLAN 54. Loans are awarded to shareholders in the order of their applications or by lot at a fixed premium. The premium is either deducted from the loan in advance or paid in instalments as the borrower may elect. In the latter case the premium is divided into a certain number of equal parts, a certain number of which are deducted from the loan in advance, and the remainder paid at the same time with dues and interest. The borrower gives security for the gross amount of the loan and pays interest on the same. 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 I: A member secures a loan on five shares of a maturing value of $200 each, at a fixed premium of 15 per cent. He receives $850, but gives security for $1,000 and pays interest on the same at 7 per cent per annum. His monthly payments are as follows: Dues at $1 a share, $5; interest on $1,000 at 7 per cent per annum, $5.83; total payments each month, $10.833. Such part of the premium paid in advance as the board of directors may determine is returned to the borrower in case of the repayment of the loan before the maturity of the shares.

Illustration II: If the borrower selects the instalment plan, the premium, a fixed rate of 30 per cent, equal to $300 on a loan of $1,000, is divided into one hundred and twenty equal instalments of $2.50 each. Twelve of these instalments are deducted from the loan in advance, leaving the borrower $970. He gives security for $1,000 and pays interest on the same. His monthly payments are as follows: Dues on five shares at $1 a share, $5; interest on $1,000 at 7 per cent, $5.833; premium, $2.50; total payments each month, $13.334. These payments continue until the entire amount of the premium las 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 number of associations operating under this plan is as follows:

PLAN 55. Loans are awarded to shareholders bidding the highest premium. The premium is either deducted from the loan in advance or paid in iustalments as the borrower may elect. In the latter case the premium is divided into a certain number of equal parts, which are paid at the same time with dues and interest. The borrower pays interest not only on his loan but also on the balance of the premium remaining unpaid. 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 one share of a maturing value of $200, at 20 per cent premium. He receives $160, but gives security for $200, and pays interest on the same. His monthly pay. ments are as follows: Dues, $1; interest on $200 at 6 per cent per annum, $1; total payments each month, $2.

Illustration II: If the borrower selects the instalment plan, the premium is divided into a number of equal parts equal to the number of months remaining of the existence of the series of stock upon which the loan is made, calculating upon the basis of eight years for the existence of each series. Assuming the loan to have been made at - the beginning of a series, the premium of $40 would be divided into ninety-six equal parts of 413 cents each. The borrower receives $200 and pays interest on both principal and the premium remaining unpaid. The interest on the premium is averaged yearly, making all monthly instalments payable during any year equal in amount. The monthly payments during the first year are as follows: Dues, $1; interest on loan, $1; premium, 413 cents; interest on premium, 189 cents; total, $2.603. Monthly payments second year: Dues, $1; interest on loan, $1; premium, 413; interest on premium, 164 cents; total, $2.5717; and so on, interest on the premium decreasing each year by 24 cents per month.

The premium is averaged annually as follows: Total premium for eight years

$40.00 Total payments of premium during the first year

5.00 Leaving balance of premium due at end of first year..

35.00 Add to this one-half of premium for first year

2.50 Compute interest at 6 per cent per annum on

37.50 The number of associations operating under this plan is as follows: LOCAL.-Mississippi, 1; Pennsylvania, 4; total local associations, 5.

PLAN 56.

This plan is in every respect similar to plan 55, except that loans are made at a fixed premium rate instead of to the highest bidder.

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

I. Ex. 209-27

PLAN 57

Loans are awarded to shareholders bidding the highest premium. The bid may either be a gross amount to be deducted from the loan in advance, or a certain amount to be paid periodically. In the first case the premium is deducted from the loan in advance, but the borrower gives security for the gross amount of the loan, and pays interest on the same. 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. In the second case the borrower receives the full'amount, gives security for the same, and pays interest thereon, and such amount of premium periodically as liis bid requires.

Illustration I: A member secures a loan on one share of a maturing value of $300, at a premium of $30. The borrower receives $270, but gives security for $300, on which he pays 6 per cent interest per annum. The payments are as follows: Dues on one share, payable weekly, 30 cents; interest on $300 at 6 per cent per annum, payable monthly, $1.30, These payments continue until the share reaches maturity, unless the loan is previously repaid, in which case it is again awarded to the highest bidder, and the former premium shall be paid to the original borrower, provided the premium be no less than the original; if less he loses the difference, and if more the advance of the preminm goes to the benefit of the association.

Illustration II: A member secures a loan on one share of a maturing value of $100, at a premium of 5 cents a week. He receives the full amount and pays interest thereon. His weekly payments are as follows: Dues, 20 cents; interest, 12 cents; premium, 5 cents; total payments each week, 37 cents.

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

LOCAL.--Illinois, 2; Indiana, 3; Michigan, 1; Missouri, 4; Ohio, 1; Utah, 1; total local associations, 12.

PLAN 58.

Loans are awarded to shareholders in the order of their applications or by lot at a fixed premium. The premium is either deducted from the loan in advance or paid in instalments as the borrower may elect. In either case he 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 repay. ment of the loan before the maturity of the shares.

Illustration I: A member secures a loan on twenty shares of a maturing value of $100 each, at a fixed premium of $25 a share. He receives $1,500, but gives security for $2,000, and pays interest on the same at the rate of 6 per cent per annum. His monthly payments are as follows: Dues at 50 cents a share, $10; interest on $2,000 at 6 per cent per

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 uuexpired.

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 unler 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 dedueted 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 à 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 dines 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, $5.833; 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 inonth 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, $5.831. 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 repay. ment 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, leaving 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 shares 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, $5.833; total pay. ments each month, $10.833.

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, s.

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, ho 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

« PreviousContinue »