The weekly Iberian. (New Iberia, La.) 1894-1946, 1917-01-20

contingent fund of approximate!
, Ten Thousand Dollars. 1t wal
figured that this would be practi
cally wiped out in the liquidation ot
the Serial stock. Such has beer
the ease, but from the earnings oi
your Association, a moderate sun
has been set aside until today the
contingen: fund represents Sever
Thousand, Two Hundred and
Twenty seven and 9 100 Dollars
| 1927 90, while the undivided
profits account shows a balance OF
Fourteen Hundred and Thirty
four and so 100 Dollars (SlI34 S0),
making reserve fund of Eight
| Thousand, Six Hundred and Sixty.
one and SO 100 Dollars ($S G6l S9).
The necessity of such a reserve
was demonstrated in the liquida-
tion OF the Serial ssoclatlon, and
your Directors feel that a moder
ate contingent fund is essential to
the stability of the organization.
The usual dividend of six per cent,
compounded semi-annually on Sc
Iial and Dayton stock, and of five
per cent on paid up stock, was de.
ciared.
The Building Association laws
of Louisiana were materially
amended during the last session
of our General Assembly. AT the
meeting of the Louisiana League
OF Homestead and Building and
Loan Associations held last April
in Lake Charles, the Bank Exam.
lner, lion. Il N. Sims, read pa
per in which he outlined many
proposed changes IN the then ex
listing Homestead laws. These
proposed changes were referred by
the League TO its legislative com
mittee, who took up the matter
with the Bank Examiner. The
propositions were freely discussed
in spirit of fairness and the
Bank Examiner was found ready
to yield to the committee when.
ever they could convince HIM of
the correctness of their position
The result was that several Of the
proposed changes were withdrawn
and a bill was framed by the Leg
islative Committee of the League
in conjunction with the Bank Ex
aminer. Among the amendments
is one inserted by the Legislative
Committee under which building
and loan mortgages do not per
empt in ten years, hence are not
required 10 be reinscrlbed and
continue in force until the final
liquidation of the loan. While
this is quite saving by the bor.
rover who pays for the reinscrip
tion of the mortgage, it is also a
safeguard to the Association
which might suffer loss should
these mortgages not be reinscrib
ed within the ten years.
Under the amended law all officers
OF Building Associations handling
funds are required to give surety
bonds in an amount to be approx
ed by the Bank Examiner. Your
Sc cretary is bonded for Ten Thou
sand Dollars and viii Baumann is
bonded in the sum OF Seven Thou
sand and Five Hundred Dollars.
Formerly, there was no restriction
upon the amount that Building
Associations could borrow, al
though there was a question as to
whether the notes and other as
sets of these institutions could be
pledged as collateral for such
loans. The law now precludes
building associations from borrow
ing in excess Of fifty per cent of
their outstanding mortgage loans.
These institutions are also reqnir.
ed to set aside three per cent of
their net earnings as a contingent
loss fund until this fund amounts
to two and half per cent of their
outstanding loans. They are also
allowed to set aside three per cent
of their net earnings as undivided
profits until it reaches two and a
half per cent of their outstanding
loans. There are other amend
ments to the Homestead law but
they relate mainly to matters of
organization and the like.
The lax demand for loans seems
quite general. With but few ex
ceptions, similar conditions were
reported at our League meeting as
existing all over this State and as
| being quite general throughout
the Country at the st. Louis
meeting of the United States
League. 1t has been noted that
our loans are usually heaviest III
periods of prosperity so we hope
that if 1917 holds better things
for us, your Association will have
larger demands for loans during
the current year.
In conclusion, | would urge
upon our stockholders that the
very best method of increasin &
the growth and usefulness OF
their Association is by explaining
the merits of our loans to pros.