Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1915-05-13
How to Build a 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 stated amount every month, rural
credit" installment 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 a rural credit in
stallment share and a regular installment
share The rate of dividend to be distributed
to a rural-credit installment share semi-annu-
ally must be written or printed in the certifi-
cate but the rate to be distributed to a regular
installment share is not written in the certifi-
cate. The reason for this appears later.
A full-paid share is one 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 a 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 instalment shares. A new series
of installment shares is opened quarterly or
semi-annually, and every certificate issued dur
ing the quarterly or semi annual period is dated
the month beginning the period. Therefore,
when distributing dividends the amount going
to one share in any series is the amount to be
credited to all shares in that series. The ser
ial plan saves bookkeeping labor, but many
associations carry an independent account with
each certificate. In the serial plan all shares
in one series mature at the same date. By
the other plan shares are 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 or fees that
may be charged against him, but in no case
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 installment shares have book value
and a withdrawal value. The difference be-
tween the two values is profits on withdraw
ais" and goes for expense of operation The
withdrawal value OF 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 are worth
The rate of dividend to be credited to or
paid on shares, and the difference between
book and withdrawal values, are determined by
IL. nd he
into the bylaws They then become part
&c the contract between the shareholders and