XIX.—Pow'er to Sell, Exchange, or Redeem Property in Mortgage.

If any member shall sell any premises in mortgage to the Society, it shall be lawful, on payment by such member of all arrears then due from him to the Society, for the purchaser, on payment of a transfer-fee in respect of each share to take the same, chargeable with the debt due to the Society, and the purchaser shall thenceforth become answerable to the Society for the payment of the subscriptions, fines, and other payments, as the same shall become payable, without prejudice to the liability of the original mortgagor for such payment; and the Directors may, at the request and cost of such member, release him from all liability in respect of such share or shares.

If any member shall be desirous of having his property discharged from a mortgage, it shall be lawful for such member to transfer the mortgage to some other premises which the Board of Directors shall page 17 deem of adequate value, and upon having his share or shares, or so much as shall be then due in respect thereof, secured on such other premises, the Society shall, at the cost of the member requiring the same, release and convey the property for which such other premises shall be substituted, and make such endorsement on the mortgage as hereinafter mentioned.

If any such member shall desire to redeem the property which ho shall have mortgaged to the Society, he shall give notice thereof to the Manager or Managing Director, and the Board of Directors shall within one month thereafter inform such member the total amount due from him to the Society for principal interest and other payments, and upon payment thereof the Society shall subject (as hereinafter mentioned) release such member from all liability, and deliver up to him all securities held by the Society, and the Society shall at the cost of such member endorse a receipt or acknowledgment on such mortgage deed or security. But in case the Society shall hold from any member two or more mortgages, such member shall not have power to redeem or transfer any one property alone without the consent and concurrence of the Board of Directors. The Board of Directors shall not be obliged to release any security without receiving payment of three monthly instalments by way of forfeiture in addition to the amount due on such mortgage.