The Opelousas courier., 1888-07-07

Total annual payments--.--...... $25
1t will take probably not more than nine years for tho
stockholdert to pay up his loan, hence he would have to pay
nine times the annual amount of $3.50, or a total sum
of $3.50 in nine years, and acquire a home free from all
incumbrance.
suppose instead of borrowing from the Association, in the
manner described, he borrows the net amount received on
his loan from a capitalist $3.50
for 9 years at 8 per cent per annum. In 8 years he
would have to pay for interest Observation-Disclosures. 1896
making his total outlay, principal and inteles -..-.. $3.50
while for the same result, in the same time, he would
have paid to the Association in the manner above
or a difference in favor of borrowing from the Associa-
II, therefore, he borrows from the Association, and pays
to % cancel his nominal loan of $4,000, for which he took
and has actually paid over and above the net he re-
ceived the sum of. ESQ
he has then paid as interest the annual sum of $S3 SO, OR a
fraction over 5 per cent per annum on the net he received,
($l5OO), to tho Association, instead of 8 per cent to a CAPT
talist.
Suppose instead of acquiring q home, by paying as above
the sum of $225O, he chooses to rent a house at say $50 Ter
month. In nine years he pays as rent the sum of s2l6O. ln
other words, by paying 800 MORE, in nine years than his
rent would be for the same length of time, he acquires a
valuable property.
that the stoekholder receives the revenues of the property
instead of the landlord. The dividends being placed to the
credit of the stakeholder, assist him in paying up his stock,
and consequently lessen the number of the annual payments
necessary to pay it up in full.
To those who may not desire to borrow, the stock offers a
thoroughly safe and lucrative investment, better than any
simple interest rearing note OF bond. With the exp fence
obtained by other associations, the stakeholder will not
probably have paid more than 60 per cent of the face of bis
stock lin weekly amounts as above explained) before it will
mature, and be payable to him face value dollar for dollar.
The money offered for sale is accumulated by the weekly
payments of each shareholder on his shares. If for instance
there are lOOO shares placed in a community, naturally each
share will be paid weekly at the rate of Is cts per week pc.
share, which would make q total income of $3.50 weekly or
$1,000 per month. This money is then offered for sale to the
highest bidder of the stockholders. The shares being $500
each, a person owning one share would be entitled to borrow
at once $500. A person owning five shares would borrow
FIVE times that much, and so on.
The amount loaned is of course less the premium. The
premium thus deducted from the loan remains in the Treas
uTy, and is placed to the credit of all the shares in the Asso-
those also of the person who borrowed
the money. These premiums consequently cause the shares
to mature that much sooner. The Secretary is the only per-
son in the Association who is entitled to a salary conse-
Quently, the expenses are very small. It will therefore be
readily seen that as a Savings Bank it offers all security
that could be desired, and for q person who does not want
to borrow it pays a handsome dividend. @
Members should bear in mind that they are never obliged
to repay the face of the note in full, as the installments paid
by them and the dividends on their stock are usually sniff
Gent of themselves to cancel their obligation in about eight
years, or when the stock reaches par.
To the mechanic, laborer, salesman, clerk and tradesman,
and all persons of small means, anxious to relieve them
selves of TIE burden of rent, this Association offers the east
est end chepest mode by which they can, in a few years, be-
come independent of the landlord and tenant of their own
houses, at a cost per annane bat little in ercess of What they are
no1 paying for rent.
Whenever there is money on hand, notice is given to all
members that on a stated date there will be MONEY TO
LOAN. At the appointed time, the meeting is called to or
der by one of the officers of the Association, who states that
money will now be assigned to the stakeholder offering the
highest voluntary premium, and that he can borrow on one
share or any number that he may own and desire to borrow
upon.
Bids are then called for from members who desire loans,
and the one making the highest bid, has the loan assigned
to him, provided he is not in arrears in the payment of his
dues.
The property submitted by the borrower is referred to the
committee for examination.
In case the committee reports against accepting the pro-
perry offered, the applicant can within thirty days from
time of bidding, offer other property which will be examin.
is, cancelled ana, Lnpo and p tbe b ID y Pr @pst a esy tbipt2 d ias ' ia.srsst 90
o per cent. perannum,o on the par valne of the shares bid upon.
Should the property offered be satisfactory to the commit.
tee, they report favOrably on same to the Board of Directors,
who decide whether the property will be accepted. If the
Board accepts the property the applicant then hands titles to
the Attorney such facts in regard to the property as will aid
him in the examination. Upon stavorable report In regard
to title from the Attorney, .he Pressaant directs the Notary
to draw asst OF sale conveying property to the Association for
cash.
Then in due time the Notary draws an act conveying the
property from Association to the stakeholder for the par
value of the number. of shares offered, he giving his note for
the amount. He pays interest at the rate of 6 per cent. per
on the note, and continues paying his instalments
weekly on his stock. When the stock is worth par it is sur
rendered to the Association TO be cancelled, and the note
given is surrendered to the stoekholder, and the.
property is released from the lien and privilege held BY the
Association. f
The above applies to cases where the property has already
house Of sufficient value built upon it, Where vacant lots
are to be bought after the Attorney has pronounced titles
valid, the Notary draws an act, conveying lots to the Asso-
citation. The bidder then selects any builder that is salts
factory to the Association, and who can give bond for faith
full performance of his contract. The builder submits to the
President plan and specifications of the building to be erect.
ed and also the name of the bondsmen he offers. The plan
and specifications are examined by an expert of the Asso,
citation who decides whether they are correctly drawn or
not to insure a satisfactory job. Upon favorable report of
expert, and by agreement of all parties interested, the Pres
ident signs contract with builder to erect house, and upon
of contract, conveys property TO the stakeholder
for whom the lot was bought, who pays as stated above.
The borrower must of course have the property insured.
~. ..s.- 4. =. 81
should apply to the Secretary or to any member
of che Board Of Directors. IT.