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The Pamphlet Collection of Sir Robert Stout: Volume 7

XIX.—Investment of Money and giving Security

XIX.—Investment of Money and giving Security.

1. The funds of the Society shall be primarily invested on

Investment of Society's funds.

the mortgage of freehold and leasehold property, and the Board of Directors shall from time to time by resolution declare under which of the three Tables B, C, and D, they are prepared to receive applications.
2. The Board of Directors are hereby authorized, at any

Directors may invest surplus funds on security of shares.

time after the expiration of two years from the commencement of the Society, to invest such part of all sums of money received by the Society as shall not be required for its immediate purpose or use in advance to any Member or Members of such Society, upon security of any share or shares held by such Member or Members, and upon such terms as to interest and re-payment as the Directors may from time to time determine; or the Board of Directors may at any time invest such monies upon real or Government securities in the names of the Trustees, and from

On real or Government securities.

time to time, with such consent as aforesaid, alter, transfer, and sell such securities; and all dividends and proceeds to arise from the money so laid out or invested shall be regularly brought to account by the Trustees and shall be applied according to the Rules of the Society. Provided that any advances to Members upon their shares shall not in any case exceed the amounts actually paid upon such shares at the time of making such advances.
3. The Board of Directors may, in their discretion, advance

Power to advance less than £50.

to any borrowing Member any sum less than £50, and in any such case the share on which such advance is made shall be repaid by instalments bearing the same proportion to the instalments as set out in Tables B, C, and D, as the sum advanced bears to £50. Where in calculating such proportions 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 £50 had been advanced.
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Directors may give publicity of money for investment.

4. When the Board of Directors shall consider it necessary, they shall give publicity to the amount of money at their disposal for investment, and the same shall be offered to the shareholders in the order in which their applications are numbered. Each applicant shall give to the Manager a Schedule,

Applications for the same how to be made.

in accordance with the form or Schedule B, appended to these Rules, setting forth his name, the amount required by him, full particulars of the nature and situation of the property offered as security, and at what rate per share per month, per three months, or per six months, he desires to repay to the Society the principal and interest of such loan; and on such application being granted in full or in part then he shall commence at the next monthly pay-day subsequent to such application, or if the payments are three monthly or six monthly, then he shall commence at the next quarterly or half-yearly pay-day as next hereinafter provided, as the case may be, to pay such sum per share per month, per three months, or per six months, as may be agreed upon; and such payments shall be made by such applicant, whether his mortgage shall have been executed or not, in terms of such of the subjoined Tables B, C, or D, as shall then be in force, which. Tables shall be considered as

Instalments, how payable.

forming part of these Rules. Provided that in the case of repayments 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 be allowed interest at the rate of £6 per centum per annum upon the amount of such first payment for a period of time to be calculated from the quarterly or half yearly pay-day next preceding such completion.

Fines on borrowing shares.

5. Every borrowing Member omitting to pay any instalment of principal and interest money shall be fined for each share, as follows:—
Where instalment is payable monthly. Where instalment is payable every three months. Where instalment is payable every six months. £ s. d. £ s. d. £ s. d. If default shall be made on the pay- day when the instalment becomes - due ........ 0 0 6 0 1 0 0 1 6 If such default continues for two successive monthly pay-days .. 0 1 6 0 3 0 0 4 6 If such default continues for three successive monthly pay-days .. 0 3 6 0 7 0 0 10 6 If such default continues for four successive monthly pay-days .. 0 6 6 0 13 0 0 19 6 If such default continues for five successive monthly pay-days .. 0 10 6 1 1 0 1 11 6 If such default continues for six successive monthly pay days .. 0 15 6 1 11 0 2 6 6

And for every succeeding monthly pay-day over which such default shall continue the additional sum of 6s.

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6. That all three-monthly payments shall fall due upon the

Quarterly and half-yearly payments, when due.

last Saturday in June, September, December, and March in each year, and half-yearly payments on the last Saturday in September and March in each year respectively.
7. When the Board of Directors shall be satisfied with the

Mortgage deed to be executed prior to payment.

security offered by any Member, they shall pay to such Member the sum which he shall be entitled to receive upon his executing to the Trustees a deed of mortgage, in such form and containing such powers of sale and other powers to the said Trustees and such covenants on the part of the said Mortgagor as the Solicitor of the Society shall require.
8. Members to whom advances have been allocated may, if

Members obtaining advances may hold investing shares, or withdraw amount to credit.

they think fit, continue to hold their investing shares, or may withdraw the subscriptions to their credit with the interest and profits added thereon, in accordance with the Rule XV.
9. The mortgage to be given by the Member to the Trustees

Provisions of Mortgage.

shall provide that in case they said Member shall at any time fail, neglect, or refuse for three monthly pay-days, if such monies are re-payable weekly or monthly, or if re-payable 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, payments, and regulations on his or their part respectively to be paid, observed, and performed; the Board of Directors for the time being shall have power, on behalf of the said Society, to appoint the Manager or any other person or

Manager to collect rents, etc.

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 £7½ 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

Powers of sale in default.

payments for three months after any of the periods upon which such payments 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, upon condition that the purchaser or purchasers shall pay as and for the purchase money of any such property a certain payment in accordance with such of the Tables as may at the time of such sale be in force in accordance with Rule XIX., Clause 1 (to be fixed and determined by the Board of Directors) until the full amount due to the Society on such page 16 property be paid, or to make any arrangements with any Member whose property shall be liable to be sold for his retention thereof and for the cessation of all fines upon subscriptions and redemption monies, fines, insurance, premiums and other payments then due and in arrear at the time of such arrangement, or thereafter to become due to the Society, 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 Society and re-sell the same by public auction or private contract without being answerable for any loss to be occasioned by such re-sale, and out of the monies 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 and charges and expences 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 any wise relating to the exercise of the powers in the said mortgage, and in the next place shall retain and reimburse the said Society 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 that the receipt of the Board of Directors or Manager of the said Society shall be a sufficient discharge to all tenants and purchasers paying any money 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 powers to let and demise the same, or any part thereof, for such term of years, and at such rent, and upon such conditions of re-entry as they shall think fit.

Like powers where money otherwise repayable.

10. If any Member who shall have taken upon mortgage to the Trustees any principal money, repayable either in one sum or by other instalments than those before referred to, shall make default in payment of the principal money, or of any instalments thereof, or of the interest thereon, or of any part thereof, the Directors shall have the like power of management of dealing with and selling and disposing of the property in page 17 mortgage, and with the like indemnity to and irresponsibility of purchasers as is hereinbefore provided in the case of default of payment of weekly or monthly instalments.
11. No property shall be deemed sufficient security for

No second mortgage be taken, unless first mortgage to Society.

monies to be advanced which shall be subject to any previous mortgage except to the Society.
12. Whenever a loan shall be made to any Trustee the

Loan to Trustees,

mortgage shall be made to the other Trustees for the time being.
13. When any Member shall be desirous of building he

Payment of money advanced for building purposes.

shall be entitled to receive the monies agreed to be advanced a him, in such sums and at such times as the Board of Directors may appoint, upon executing his mortgage.
14. Should any Member, after receiving any portion of his

Board empowered to complete erection of building in default of borrowing Member.

loan or advance, not proceed to complete or finish any building upon which the same shall have been advanced to the satisfaction of the Board of Directors of the Society, the Manager shall give seven days' notice in writing to such Member of their intention either to sell such premises in the manner herein before 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 of such notice they shall be at liberay so to do and to advance and pay the sum and sums of money requisite for such purposes accordingly, and the premises shall be charged with such further sums with interest at such rate is 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 paying all money due to the Society, and all incidental expences, it shall be paid to such Member.
15. On payment to any Member borrowing upon the

Members borrowing on security of shares to sign transfer of same.

security of his shares he shall sign a transfer for such shares to the Trustees of the said Society, in the form set forth in Schedule D, appended to these Rules, for which he shall pay the usual transfer fee to the Society.
16. All buildings mortgaged to the Society shall be insured

All mortgaged property to be insured.

from loss or damage by fire in the names of the Trustees for such amount as the Board of Directors shall think necessary by and at the expence of the mortgagor, and the policy and renewal receipts 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 names of the Trustees or (if already insured) may pay the premium due on such policy out of the Society's funds, but the money so expended together with the fine of 1s. per month in the pound shall be paid to the Society by the mortgagor.
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17. If the Mortgagor is not bound by covenant to insure in my particular office, the insurance may be effected in any Fire Insurance Office, subject to the approval of the Board of Directors.

Members to give notice of any change in character of Fire Risk.

Each member who shall have mortgaged any property to the Society 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 assurance. Any member neglecting to give such notice, shall pay such fine as the Board of Directors

Fines on de-fault.

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

Board of Di-rectors may inspect mortgaged premises.

the members shall permit the Directors so appointed to inspect the mortgaged premises and reimburse them all reasonable expences.

Appropriation of insurance money.

18. Whenever any property mortgaged to the Society shall sustain damage by fire, the Board of Directors for the time being shall receive the amounts 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 policy 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.

Members making default after borrowing upon investment shares.

19. If any member, who shall have borrowed upon his 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 fines to which he shall become liable, shall, together with 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 Society, then such shares shall become absolutely forfeited to the Society.

Lapse of application for loan.

20. Whenever a member shall apply for a loan and shall fail to provide 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.