Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-05-30

It's Regulations, Principles and Uses
Something Worth the Attention OF
Men with q Small Surplus.
| The Board Of Directors Of the crock
| City Building and Saving Association con-
/ sisting Of nine members whose names We
gave to the public a week ago, completed
| their organization, after adopting a COnsti-
tuition anC Bylaws by electing from their
number 5. A. Duling, President; Rev. NJ.
Inman, Wee President; L. 5. Ford, SeCTe-
tary, and W. II. Duncan, Treasurer, who
will serve for the ensuing year.
| The capital stock of the Association is
| fixed at 100000, and divided into one
thousand shares Of 500 each. Every sub
| scriber Of shares is required TO pay up his
stock in monthly payments Of two dollars
/ each On every share.
The fund accumulated by these monthly
payments is to be loaned out to such Of the
members as desire TO obtain the loan, the
borrower being required, on receiving Ihs
money, to execute to the Association a
mortgage on unincumbered real estate, %
secure the payment of his monthly dues Of
two dollars on each share borrowed, and
the additional sum Of six per cent. payable
monthly on the amount borrowed. The
COuQAlAOL1 VI tic A4AlA $3.50 NAD AAl- ANdNAAAA
or demand the repayment Of the money
borrowed, but merely the payment Of the
dues and interest monthly as abOye-the
idea being that the loans are in fact pay
nents Of the ultimate value Of shares on
which the money is borrowed, and the
member having paid up his share or shares
in monthly instruments, bis obligation to
the Society is discharged and his mortgage
cancelled.
Tie constitution provides that where
there is $500 CT more in the treasury Of the
association, the same shall be offered for
loan, and if more than one member desires
to obtain the loan, then it shall be put up
at auction and the member bidding the
highest amount therefor shall have the
priority. The amount so bid is called a
premium and must be paid into the treas
IIry of the association before the loan is
consummated; and right here we may OBJ
serve that this matter of premiums has
been the cause of trouble to similar insti-
buttons, some Of the courts holding that it
was but 3 device to eyade the usury laws,
and was consequently void. Our Legisla-
tUre, anticipating this objection, wisely
provided in the act authorizing the charter
ing of building associations that "The pre-
MUM bid by borrowing stockholders for
the preference or priority Of loan, shall be
paid before the loan is consummated, not
as a part Of the loan, not as interest, but
as a means of determining which one Of
the shareholders shall receive the loan,
whenever there are a number Of stock
holders who may simultaneously desire TO
effect a loan" This provision we take it
authorizes the selling for and collection Of
premiums.
For the non-payment Of dues and inter-
est at the time and place fixed, fines are
assessed against the delinquent members,
and on a failure 10 pay dues OF interest for
a period Of six months, the Association
may foreclCse the mortgage Of the default
ing member.
All moneys, whether dues, interest, pre-
miums or fines, must be paid into the
general Treasury Of the Association, to be
applied in the manner already pointed out,
thus securing TO each and every share
holder an equal interest and benefit in the
funds Of the Association prOpOrtiOned to
the number Of shares held by the respective
members.
The officers all give their services gratis,
except the Secretary, who gets a modest
SALARY, though his duties are very labOriOus; /
but all Of them are required TO give bond |
for the faithful discharge Of their duty.
It is provided that any shareholder may /
withdraw from the Association on giving |
thirty days notice Of such intention, at TIE /
end Of which time he will be paid back the !
amount paid in by him.
The Association winds up whenever /
there is enough money in the treasury TO /
pay of all of the remaining shares in the /
sum Of 500 per share. It is es' imated j
that it will not TAX longer han SIX years
from date Of organization 10 wind up, with