XVIII.—Investment of Money and giving Security.
The funds of the Association shall be primarily invested on mortgage
Investment of Funds primarily on freehold and leasehold lands.
of freehold and leasehold land.
The Board of Directors are hereby authorised at any time to
Directors may invest surplus funds on security of shares on Government Securities.
invest such part of all sums of money received by the Association as shall not be required for its immediate purposes or use, in advance to any member or members of such Association, upon security of any B Investment share or shares held by such member or members, and upon the same terms as to re-payment as in case of advances upon freehold security; or the Board of Directors may, with the consent of the Association, to bo testified at a public meeting of the Association, and entered in the General Minute Boole, invest such moneys upon real or Government securities in the name of the Association, and from time to time, with such consent as aforesaid, to alter, transfer and sell such securities; and all dividends and proceeds to arise from the moneys so laid out or invested shall be regularly brought to account and shall be applied according to the rules of the Association. Provided that no advance be made upon A. Capital shares.
On payment to any member borrowing upon the security of his
Members borrowing upon security of their shares to transfer scrip to the Association.
shares, he shall transfer his scrip for such shares to the Association in such form as the Board shall from time to time determine, as security for the repayment of such advance and interest, but such transfer shall not be liable to any transfer fee.
If any member who shall have borrowed upon his B Investment
shares shall make default in payment of his subscription and redemption moneys in respect thereof, when such subscription and redemption moneys, together with any lines to which he shall become liable, shall, together with the amount advanced to such member on such shares, make up the amount per share which such member shall be entitled to be paid for withdrawal from the Association, then such shares shall become absolutely forfeited to the Association.
When the Board of Directors shall consider it necessary, they shall
Directors may advertise money for investment.
give publicity to the amount of money at their disposal for investment, and the same shall be offered
Application for loan, how to be made.
to the shareholders in the order in which their applications are numbered. Each applicant shall give to the Manager a schedule, setting forth his name, the amount required by him, full particulars of the nature and situation of the property offered as security, and under which class of the Borrowing Tables, forming part of these rules, he desires to repay to the Association the principal and interest of such loan. Provided that in the ease of re-payments by quarterly or half-yearly instalments, if the first quarterly or half- yearly payment shall fall due within the period of three or six months
from the date of such loan being completed, then the borrower shall he allowed interest, at the rate of £6 per centum per annum upon the amount so borrowed, for a period of time to be calculated from the quarterly or half-yearly pay-day next preceding the date of the loan being completed, up to the monthly pay-day next preceding such completion.
Every member on making application for loan on mortgage shall pay an entrance fee of two shillings and sixpence in respect of every £50 share applied for, and also one shilling additional at the time, and on
the monthly pay-day in January of each year, in advance, for working expenses in respect of each and every share of £50 that may be advanced; provided always that the amount of fees charged on making application shall not exceed three guineas.
Mortgage deed to he executed prior to payment of loan.
When the Board of Directors shall be satisfied with the security offered by any member, they shall pay to such member the sum which he shall be entitled to receive, upon his executing a deed of mortgage, containing such powers of sale and other powers, and such covenants on the part of the said mortgagor as the Solicitor of the Association shall require.
The mortgage to be given by the member shall provide that in case the said member shall at any time thereafter fail, neglect, or refuse for three monthly pay-days, if such moneys are repayable monthly, or if repayable by three monthly or six monthly payments, for one month after any such periods of payment, to pay, observe, and perform all or any of the subscriptions, fines, payments, and regulations on his part respectively to be paid, observed, and performed, the Board of Directors for the time being shall have power, on behalf of the said Association, to
Manager to collect rents, &c.
appoint the Manager, or any other person or persons, to collect the rents and profits of the premises in such mortgage mentioned, and to charge for such collection, whether by the Manager or otherwise, a commission at the rate of £5 per cent, if the rent be payable quarterly or at longer periods, or £7-J per cent, if payable monthly, or £10 per cent, if payable weekly. And the Board of Directors shall have the power, after default in payment of such subscriptions and payments for three months after any of the periods upon which such payments
Power of sale, &c., default.
should have been made in the case of monthly payments : and after such default for one month in the case of three-monthly or six-monthly payments, or on the breach of any covenant on the mortgagor's part in any mortgage expressed or implied, whether the Board of Directors shall have entered into the receipt of the rents and profits of any such mortgaged property or not, and without entering into the receipt of such rents and profits, and without the consent or concurrence of the said mortgaging member, absolutely to sell and dispose of the said mortgaged premises by public auction or private contract, or to make
any arrangement with any member whose property shall be liable to be sold for his retention thereof, and for the cessation of all fines upon subscription and redemption moneys, fines, insurance premiums, and other payments then due and in arrear at the time of such arrangement or thereafter to become due to the Association; or to sell and dispose of the same, in one or more lots, by public auction or private contract, or partly in one way and partly in the other, at one or more time or times, and subject or not to special conditions as to title or evidence of title, or the time or mode of payment of the purchase money, or otherwise, as the Board of Directors shall think fit, and to receive the money arising therefrom; and at any sale by public auction the Board of Directors, or any one of them, or some other person to be appointed by them in writing, may bid for and buy in the said mortgaged premises on behalf of the Association, and re-sell the same by public auction or private contract, without being answer- able for any loss to be occasioned by such re-sale; and out of the moneys to arise from such collection of rents and profits of sale as aforesaid, the Board of Directors shall, in the first place discharge all costs, charges, and expenses which shall or may be incurred in or on account of the collection of the rents and profits of the said mortgaged premises, or the sale or attempted sale or sales thereof, or in anywise relating to the exercise of the powers in the said mortgage; and, in the next place, shall retain and re-imburse the said Assocation all such principal money, subscriptions, fines, and other payments as shall be then due, owing, and payable by such member, under and by virtue of these Rules or the said mortgage, and shall pay the surplus (if any) to the said member, or as he shall appoint. And the receipt of the Board of Directors or Manager of the said Association shall be a sufficient discharge to all tenants and purchasers paying any moneys to the Board of Directors or Manager, without their being accountable for the misapplication or non-application thereof. And that no purchaser or purchasers shall be bound to enquire into the propriety or regularity of any such sale or sales, nor whether any such default shall have been made. And that until the said mortgaged premises shall be so sold and conveyed, the Board of Directors shall have full power to let and demise the same or any part thereof for such term of years, at such rent, and upon such conditions of re-entry, as they shall think fit.
No property shall be deemed sufficient security for moneys to be
No second mortgage to be taken unless first mortgage to the
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advanced which shall be subject to any previous mortgage, except to the Association.
When any member shall be desirous of building, he shall be entitled to receive the moneys agreed to be advanced to him in such sums and at such times as the Board of Directors may appoint, upon executing
Instalments of loans may be advance for
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.
his mortgages
Board empowered to complete erection of buildings, on default by borrowing member.
Should any member, after receiving any portion of his loan or advance, not proceed to complete and finish any buildings upon which the same shall have been advanced, to the satisfaction of the Board of Directors of the Association, the Manager shall give seven days notice, in writing, to such member of t heir intention either to sell such premises in the manner hereinbefore provided, or to employ some person or persons to finish and complete the same at the cost and charges of such member; and, upon the expiration or such notice, they shall be at liberty so to do, and to advance and pay the sum and sums of money requisite for such purposes accordingly; and the premises shall he charged with such further sums, with interest at; such rate as the Directors shall from time to time determine, as if such sums had formed part of the advance to such member. If a sale shall be made, and a surplus remain after paving all the money due to the Association and all incidental expenses, it shall be paid to such member.
All buildings mortgaged to the Association shall be insured from loss or damage by fire, in the name of the Association, for such amount as the Board of Directors shall think necessary, by and at the expense of the mortgagor; and the policy and renewal re eipts shall be deposited with the deeds. Should the mortgagor fail to do so. the Manager shall be at liberty to insure the property in the name of the Association, or (if already insured) may pay the premium due on such policy out of the Association's funds; but the money so expended, together with a fine of one shilling per month in the pound, shall be paid to the Association by the mortgagor. If the mortgagor is not bound by covenant to insure in any particular office, the insurance may be effected in any Fire Insurance Office, subject to the approval of the
Notice to be given of any alteration.
Board of Directors. Each member who shall have mortgaged any property to the Association shall be required to give immediate notice, in writing, to the Manager, of any trade carried on in any part of his premises, or of any stove, furnace, or any article erected therein, or of any such similar change in the character or occupation of the adjoining properties, which would in any way affect the validity of the policy of insurance. Any member neglecting
to give such notice shall pay such fine as the Board of Directors may determine, not exceeding 10s per week nor less than 1s. per week, for each share advanced. The Board of Directors shall, as often as they may deem requisite, appoint one or more of their number to obtain all the information they can with respect to trades, &c., carried on in or about such property; and the member shall permit the Directors so appointed to inspect the mortgaged premises, and re-imburse them all reasonable expenses.
Appropriation of Insurance money.
Whenever any property mortgaged to the Association shall sustain damage by fire, the Board of Directors for the time being shall receive the amount recoverable for the damage so sustained from the Insurance Office in which such property shall have been insured, and shall
give a receipt for the same, which receipt shall be a sufficient discharge to the person or persons liable by virtue of any policies of insurance, to pay such money, and the same shall be applied according to the covenant (if any) under which such insurance was effected; but, if none, then the Board of Directors shall have the option of appropriating such money in payment and satisfaction of the money secured by the mortgage of the premises which shall have sustained such damage, or of repairing the damage so sustained, and returning any surplus to the mortgagor.
Every borrowing Member omitting to pay any instalment of principal
Borrowing members' lines.
and interest money, shall be fined for each share as follows:—
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All three-monthly payments shall fall due upon the first Tuesday
Three-monthly and half-yearly payments, when due.
in March, June, September, and December in each year, and half-yearly payments on the first Tuesday in June and December in each year respectively.
Whenever a member shall apply for a loan, and shall fail to provide
Lapse of application for loans.
security to the satisfaction of the Board of Directors, they may, after two months from the date of application, declare the same to have lapsed.
The Board of Directors may, in their discretion, advance to any
Board may advance less than £50.
borrowing member any sum less than Fifty Pounds, and in any such case the share on which such advance is made shall be considered to be fully realized, and the amount of the advance and interest shall be repaid by instalments bearing the same proportion to the instalments set out in the Table under which the advance or loan was made—
as the sum advanced bears to Fifty Pounds—where in calculating such proportion fractions of a penny occur, a penny shall be paid instead of the fractional part. Fines to accrue on any such share shall remain the same as if the whole sum of Fifty Pounds had been advanced.