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carried into what is ordinarily termed the loan fund. The money in the loan fund is used for the purposes of making loans to members, of paying off shares which have reached maturity, and of meeting the demands of withdrawing shareholders; and, usually, only the portion of the dues included in the loan fund is returned to such shareholders, with whatever allowance of interest or profit thereon the particular withdrawal plan of each association may provide for, the portion of the dues carried into the expense fund, generally amounting to about one-sixth of each payment, being retained by the association. In some national associations the loan fund is credited with whatever balance of the expense fund remains unexpended at the end of certain fixed periods, and withdrawing shareholders may derive some benefit from such unexpended balance, but this course is exceptional. The plan of separating the periodical dues into a loan fund and an expense fund is pursued by a few local associations, but the general rule in such associations is to return to withdrawing members all the dues paid in by them, with or without interest or profits.

In associations which pay to withdrawing shareholders annual interest on dues paid in prior to withdrawal there are two methods of calculating such interest.

First. The interest is calculated on the total amount of dues paid in for one-half the time during which they have been paid, commonly called the average time of investment; for example, in an association requiring monthly payments of dues at the rate of $1 per share, if 6 per cent per anuum is allowed upon withdrawal, a member withdrawing at the end of one year would receive his dues, $12, and 6 per cent interest thereon for six months, or 36 cents, making a total of $12.36 per share. This method, on account of its simplicity, is the one ordinarily used; a few associations, however, use the following method:

Second. The interest is calculated on the total amount of dues paid in for the true average, or equated time of investment, which is ascertained by taking one-half of the sum of the extremes of the arithmetical series representing the periods of time during which the periodical payments of dues have been invested; thus, using the illustration given above, monthly dues having been paid for twelve months, the extremes of the series representing the periods of investment of the monthly payments are 1 and 12; one-half of the sum of the extremes is 6}, which is the true average time of investment, in months, and 6 per cent on $12 for 64 months amounts to 39 cents, which added to the dues paid in gives a withdrawal value of $12.39 per sbare at the end of one year.

No reference is made to these two methods of calculating interest in the descriptions of withdrawal plans which follow, the difference between the amounts obtained by them being small and growing pro portionately smaller as shares increase in age. For the sake of uni formity, therefore, and because it was the simpler, the first method has

The withdrawal value of shares, by whatever plan it may be determined, is always subject to the deduction of any fines charged against their holder for non-fulfilment of his obligation to promptly make pay. ment of his periodical dues.

In some cases shareholders desiring to withdraw are required to pay fees for the privilege of so doing; for instance, 25 cents or 50 cents may be exacted for each share upon which withdrawal is made. The range of such fees is stated under the descriptions of the different withdrawal plans in connection with which they are charged.

A few associations do not permit their members to withdraw prior to the maturing of their shares; in such cases the only method by which a shareholder can realize upon his shares is by selling them to some other person at whatever price he can obtain.

The number of associations reported as not permitting withdrawal prior to maturity, all of which are local, is as follows: Alabama, 2; Arkansas, 2; Georgia, 8; Kansas, 3; Kentucky, 5; Nebraska, 1; New Jersey, 1; Ohio, 4; Pennsylvania, 2; South Carolina, 8; Texas, 2; Virginia, 1; Washington, 1; West Virginia, 2; Wyoming, 2; total, 44.

There are twelve principal plans under which building and loan associations permit their members to withdraw before their shares have reached maturity. A description is given of each of these plans, with their various modifications and regulations, and a statement of the number of associations in the various states and territories operating under each specified plan. A summary of these statements in tabular form immediately follows, preceding the descriptions:

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LOCAL ASSOCIATIONS OPERATING CNDER THE VARIOUS WITHDRAWAL PLANS

Concluded.

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NATIONAL ASSOCIATIOXS OPERATING UNDER THE VARIOTS WITHDRAWAL

PLANS.
[There are no national associations operating under the omitted plans.]

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Alabama.
California..
Colorado
District of Columbia.
Florida..
Georgia.
Illinois..
Indiana
Iowa ....
Kansas.
Kentucky
Louisiana
Maryland
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
New Hampshire..
New Jersey.
New York
North Carolina.
North Dakota.
Ohio
Oregon..
Pennsylvania
South Dakota.
Tennessee
Texas.
Utah.
Virginia.
Washington
West Virginia
Wisconsin

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PLAN 1.

Withdrawing shareholders receive the dues paid in without interest or profit.

Under this plan withdrawing shareholders receive only the dues paid in on the shares upon which withdrawal is made, the profits earned by said shares being retained by the association.

Among the associations reported as operating under this plan the following modifications and regulations are found :

1. No withdrawal is allowed to be made upon shares which have not been in existence for a certain specified time, which varies in different associations as follows: Three months; six months; one year.

2. Only a certain portion of the dues paid in can be withdrawn, vary. ing, in the associations reporting such a regulation, as follows: 75 per cent; 90 per cent; 95 per cent; 95 per cent if the shares upon which withdrawal is made are less than six months old; 95 per cent or 96 per cent if the shares upon which withdrawal is made are less than one year old; 95 per cent if the shares upon which withdrawal is made are less than two years old; 95 per cent if the shares upon which withdrawal is made are less than one year old; 974 per cent if one year but less than two years old.

3. Among the associations reported as operating under this plan and its modifications the following regulations regarding withdrawal fees are found:

(1) Withdrawal fee of 10 cents, 25 cents, 50 cents, or $1 per share is charged.

(2) Withdrawal fee of 25 cents per share is charged, but not more than $5 per transaction.

(3) Withdrawal fee of 50 cents per transaction is charged if the shares on which withdrawal is made are less than one year old.

(1) The dues withdrawn are discounted, the rate of discount being graduated according to the age of the share upon which withdrawal is made.

The number of associations reported as operating under this plan and its modifications is as follows:

LOCAL.-Alabama, 6; Arizona, 1; Arkansas, 2; California, 4; Colorado, 1; Georgia, 3; Illinois, 5; Indiana, 7; Iowa, 4; Kansas, 3; Kentucky, 12; Louisiana, 1; Maryland, 5; Michigan, 6; Mississippi, 2; Missouri, 29; Nebraska, 11; New Jersey, 18; New York, 6; North Carolina, 5; Ohio, 9; Pennsylvania, 34; South Carolina, 15; Texas, 8; Virginia, 17; Washington, 1; West Virginia, 5; Wyoming, 1; total local associations, 221.

NATIONAL.-California, 1; Kentucky, 1; New Jersey, 1; North Dakota, 1; total national associations, 4.

PLAN 2. Withdrawing shareholders receive the dues paid in and a fixed rate of interest per annum on such payments.

Under this plan withdrawing shareholders receive the dues paid in on the shares upon which withdrawal is made with a fixed rate of interest thereon per annuin, which varies in different associations.

Illustration: In an association in which the dues are $1 per month per share 6 per cent interest on the dues paid in is allowed withdrawing shareholders. If a shareholder withdraws when his shares are four years old he will receive on each share upon which withdrawal is made $48, the dues paid in thereon, with 6 per cent interest on the same for two years, the average time of investment, or $5.76, making the total amount he will withdraw on each share $48 plus $5.76, or $53.76.

Among the associations reported as operating under this plan the following modifications and regulations are found:

1. The total amount to be withdrawn must not exceed 95 per cent of the present value (consisting of dues and apportioned profits) of the shares upon which withdrawal is made.

2. This plan is applied to withdrawals in all series except the oldest one in force, in which either the full value of the shares may be withdrawn, or an arbitrary allowance is given.

3. No withdrawal is allowed to be made upon shares which have not been in existence for a certain specified time, which varies in different associations as follows: Two months; three months; four months; six months; one year; two years; three years; any time which may be fixed by the board of directors.

4. No interest is allowed if withdrawal is made upon shares which have not been in existence for a certain specified time, which varies in different associations as follows: One month; two months; three months; four months; six months; eight months; ten months; one year; thirteen months; eighteen months; two years; twenty-six months; three years; four years.

5. Among the associations reported as operating under this plan and its modifications the following regulations concerning withdrawal fees are found:

(1) Withdrawal fee of 5 cents, 10 cents, 20 cents, 25 cents, 50 cents, $1, or $2 per share is charged.

(2) Withdrawal fee of 5 cents per share is charged for each month the shares upon which withdrawal is made have been in existence.

(3) Withdrawal fee of $1 per share is charged if the shares upon which withdrawal is made are less than six months old.

(4) Withdrawal fee of $1 per share is charged if the shares upon which withdrawal is made are less than one year old.

(5) Withdrawal fee of $2 per share is charged if the shares upon which

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