Western Kansas world. [volume] (WaKeeney, Kan.) 1885-current, 1915-05-15
How to Build Rural Credit Loan
Association
CONTINUED from Page y
Association

time; but if the per cent is less than estimated
the time to maturity will be heightened
To accommodate the convenience of the
farmer, whose business is such that he cannot
pay a stated amount every month, rural
credit inStallnnent shares may be issued and
on these the installments or payments may be
any amount, any time And there will also be
another difference between rural credit in
stallment share and a regular instalment
share. The rate of dividend to be distributed
to a rura1-credit 1nstallment share semi-annu-
ally must be written or printed in the certIh-
cate, but the rate to be distributed to a regular
installnent share is not written in the certih-
cate. The reason for this appears later.
A full-paid share is for which the sub
scriber pays value in cash at the time the share
is issued. Full-paid Shares, both regular and
rural credit, bear a definite rate of dividend
per annum, payable semi-annually. The rate
of dividend is written in the certificate and
acceptance of full-paid share by subscriber
valves his claim to any greater participation
in the net earnings than the rate named in his
certificate Dividends on full-paid shares may
be paid by dividend checks or by coupons at
tached to the certificate. A few associations
issue permanent stock" but permanent stock
has no acknowledged place in true building
and loan association, though it IS permitted
by Kansas law.
Many associations operate the serial plan
of issuing insta1lrnent shares. A new series
of installment shares is opened quarterly or
semi-annually, and every certificate issued dur
ing the quarterly OF Se1n1-dnnudl pGIlOQ - QdlCQ
the month beginning the period. Therefore,
when distributing dividends the amount going
to share in any series is the amount to be
credited to all shares in that series. The SER
ia1 plan saves bookkeeping labor, but many
associations carry independent account with
each certificate. In the serial plan all shares
in one series mature at the date. By
the other plan shares maturing practically
every day.
The Kansas building and loan law says that
a shareholder in a Kansas building and loan
association has the privilege of withdrawing
at any time, upon giving thirty days notice,
all the dues paid in, less any fines fees that
may be charged against him, but in no
shall the fines or fees exceed the dividends
credited to the shares. The shareholder has
the right to demand and should receive back
any time at least all the money he has paid in.
Regular nstallment shares have book value
and a withdrawal value. The difference be-
tween the two values is profits withdraw
ais and goes for expense of operation. The
withdrawal value of a rural credit share is the
amount paid in plus full dividends to at least
the last dividend period. Shares withdrawn
before the first dividend period of course do
not get any dividends. Nearly all associations
have discarded fines and fees they cause more
trouble than they worth.
The rate of dividend to be credited to
paid on shares and the difference between
book and withdrawal values, are determined by
the board of directors and must be written
into the bylaws They then become part