Loans on Investing Shares.

40. It shall be lawful for the Board to grant loans to any member upon the security of his investing share of shares to the extent of nine-tenths of the amount such member would be entitled to receive on withdrawing from the Society, such loan to be on such terms as to repayment, interest, and forfeiture, as may be agreed upon. Any member borrowing upon the security of his shares shall sign a transfer of his scrip for such shares to the Trustees, in the form set forth in Schedule D to these rules, for which he shall pay the usual transfer fee to the funds of the Society.

If any member who shall have borrowed upon his investing shares shall make default in payment of his subscriptions and redemption money in respect thereof, until such subscriptions and redemption money and fines shall, together with the amount allowed to such member on such shares make up the amount per share which such member would be entitled to be paid for withdrawal from the Society, then such shares shall thereupon become absolutely forfeited to the Society.