| Show A CATECHISM Questions and Answers on the Building and Loan Association QWhat is a building and loan association associa-tion 1 AIt is a cooperative bank in which tho members are equal partners and the deposits de-posits are loaned only to the shareholders QHow are the deposits made or regu lated A Deposits are simply monthly install ments on shares and are practically compulsory com-pulsory under the bylaws QHo often are the profits divided AOnly when the stock matures or reaches its par value QWhat is meant by stock maturing AWhen the sums deposited and the accumulated profits amount to 100 on each share QWhat amount is deposited monthly 1 A Usually 6 cents a share Q And how many shares can tch member mem-ber own 1 AAs many as he wishes QCan women hold stock ABoth women and children QAnd when are the shares expected to reach their par value 1 AThe average is seven years QHow much will a member have paid in all together I AAbout onehalf the amount he re ceives at maturity QAnd does a stockholder have to wait seven years before he can draw his profits AHe does unless he wishes to withdraw with-draw his shares in which event his money is refunded with an equitable division of the prott to date QWhen can he withdraw AThe Associations vary some on that point QIs tho stock transferable AYoueau transfer itat any time Q What provision is made in case of death AIf a stockholder dies his heirs will receive the money paid into the association or carry the stock to maturity as they choose Q Howds the money loaned AOnly to members on first mortgage securities The association tho National Cooperative Building and Investment association will make three loans viz A cash loan when you do as you choose with the money a prooerty loan where it is used expressly for building an installment loan whore the borrower is a mechanic and I wants to do his own work and wants the money as the work progresses qAnd at what rate of interest I A Usual at 13 per cent QBut how is the privilege of borrowing I I borrow-ing decided f A In this association the order in which I the application made I I tH QDoc not this plan make a loan very I expensive for theborrower i ANot when compared with paying I rent The borrower repays his loan interest in-terest and principal in installments without with-out feeling it QCln n member get a loan on any other than real estate security AHo can borrow from 75 to 100 percent per-cent o all hes paid in at any time without disturbing his shares ii L f QWhat guaranty does a member have that his money is safe AHo has a moral physical and legal guaranty QWitst moral guaranty AThe knowledge that the officers and directors are not mere adventurers but men of high character and unimpeachable integrity side in the community where theyre QWhat do you mean by a physical guaranty AThe money is never idle and the actual cash handled is very slight thus making a serious defalcation a physical impossibility QAnd what i the legal guaranty AThe legal guaranty is furnished by tho state QTo what extent does the state guarantee guar-antee the safety of the funds gar ABy bonding the officers taking all the security into the states custody and placing the associations under the control of the bank examiner QDoes the state require a annual report port AIt does QAre there any penalties for noncompliance I non-compliance with the requirements A There are several penalties > QDoes not the association run great risks in loaningmoney all overtha county ANone at all as the properties are appraised j ap-praised by local appraisers who own stock themselves and are equally interested i seeing a conservative valuation QWhat is the object of these associations associa-tions anyway I AThe main object is to assist each other in saving money and dividing what that money earns instead of paying the lions share to a broker or banker QDo the associations build houses for the members AThis ono does QWnat is the cost of joining this association as-sociation AOno dollar per share for the first month and CO cents per month thereafter QAre there any extra assessments AThere are none and can be none QAre there no other charges A There are none except for fines and no one can be fined if he is punctual In paying his installments QVlech is the best association to joihA AThat is impossible to say They all have their advantages and yon must select the plan that suits you best The National Co operative Building and Investment Association company of Denver Den-ver has all these advantages No preferred stock no building for loans stock nunfor feitable but is transferable You can reduce re-duce your stock Six per cent discount on payments in advance Paid up stock 50 per share draws 6 percent per-cent interest paid semiannually For information printed matter etc call at the Salt Lake city office room 7 Utah National Bank building L D LAWTEXCE Agt |
