■AliTICLES OF FtND ASSOCIATION. MANCHESTER, N. H. : STEAM rOATER PRESS OF ABBOTT, JEN KS & CO 1854 , 33=V. 1 MANCHESTER LOAN AND FUND ASSOCIATION. %' • Office;— ^' iTY Clkrk’s Office, City Hall. — — OFFICERS. PRESIDENT, JACOB G. CILLEY. VICE PRESIDENT, HIRAM BROWN. DIRECTORS, Hon. Samuel D. Bell, Theodore T. Abbott, Caleb Buxbury, William B. A. G. Fairbanks, William H. Farnum, John C. Lyford, Webster. secretary. GEORGE A. FRENCH. WILLIAM PATTEN, J. 0, ABBOTT. Surveyors. DAVID CROSS, Attorney. (* ARTICLES OF ASSOCIATION We, the undersigned, having associated and formed a Com- pany for the purpose of accumulating a fund for the pur- chase of real estate, making improvements thereon, and removing incumbrances therefrom, and for the purpose of accumulating a fund to be returned to its members who do not obtain advances as above mentioned, when the funds of the Association shall amount to Five Hundred Dollars per share, the shares to be Twelve Hundred in number, reserving Four Hundred for the accommodation of members who wish to obtain larger loans than can be obtained on shares previ- ously held by them, do severally agree that the following Articles shall govern us, and determine our rights, duties and privileges, as members of such Association. ARTICLE I, Name, This Association shall be called and known by the name of ‘‘The Manchester Loan and Fund Association,” and shall hold regular meetings on the last Saturday of each month, at such places as shall be agreed upon by a majority of the members present at any meeting, twenty-five of whom shall constitute a quorum for the transaction of business. The hour of meeting shall be eight o’clock P. M., from the first of April to the first of September, and from the first of Sep- tember to the first of April, the meeting shall be held at seven o’clock P. M. Special meetings may be held at any time, when called by the President, or upon the requisition in writ- ing of any twelve members, of which two days’ notice shall be given by the Secretary, to each member. Every meeting may be adjourned from day to day, until all business is com- ARTICLE II. Members. The members of this Assocktion shall be those who shall jsign the Articles of Association, pay the entrance fee, and shall hold one or more shares. Those who, on or before the third monthly meeting, shall pay an entrance fee of one dol- lar per share, shall have the privilege of subscribing to the Articles. ARTICLE III. Officers, and how chosen. At the first monthly meeting, (or as soon as practicable,) the share-holders shall proceed to elect by ballot, a President, Yice President, seven Directors, Secretary, Ay:orney, and two Surveyors to the Association. The President, Secretary, Attorney and Surveyors shall be elected permanently, and continue in office during the whole term of the Association, unless removed as hereinafter pro- vided. The Board of Directors shall be so arranged, that one member shall go off from the Board every year, and one shall be elected every year to fill his place, and the first Board of Directors shall decide by ballot amongst themselves, who shall go off the first year, who the second, and so on. The member elected to fill the first of these vacancies, shall be elected for the longest term, and the next for next longest term, and so on. The President, Vice President, Directors, Secretary and Surveyors shall be styled the Officers of the Association. All Officers and the Attorney must be members of the Assock- tion, and no person shall hold any office after the first election, who has not been a member of the Association, at least six months previous to election, unless to fill vacancies during the first six months. The President, Vice President, Secretary, Attorney and Surveyors shall be “ ex-officio’’ members of the Board of Di- rectors, but shall not be entitled to a vote therein. The yearly meeting shall be on the last Saturday in September, when a Vice-President and one Director shall be chosen. — Vacancies may be filled at any regular meeting. All election of officers shall be by ballot. ARTICLE IV. Board of Directors ^ and iJieir Duties . The Board of Directors shall have the general supervision, direction and management of the affairs of the Association, • and the duties of its officers. They shall select some Bank doing business in the City of Manchester, for the deposit of all moneys received by the Association. They shall provide a suitable Seal for the Association, the Secretary of which shall have the custody thereof. They shall judge of the sufficiency of the value of all property offered by members as security for advances to be made by the Association. No mone3^s shall be withdrawn from the Bank when deposited, unless by a Resolution of the Board, and upon a Check drawn by the President, endorsed by the Vice President, to the order of the person to- whom it is to be paid, and countersigned by the Secretary ; in case of the absence of the President and Vice President, or Secretary, he shall leave a written instrument in the hands of the Directors, authorizing one of said officers to sign the Checks in place of the person so absent. They shall elect from their number three Trustees of the Association, who shall, as such Trustees, be vested with all the property, bonds, mortgages, and other legal instruments belonging to this Association, in such form as the Attorney shall approve of. All legal documents which are required to be recorded, shall be forthwith recorded under the Attorney’s direction in the proper office ; after which, they, together with all other documents of the Association, shall be placed in the custody of the Trustees, in a suitable box, the key of which shall be kept by the President, and the box shall be deposited in the Bank where the moneys are deposited, and shall not be withdrawn, except by the order of the Association or Board of Directors, to be certified by the presiding officers and Sec- retary. They shall conduct all legal proceedings which may be necessary to preserve the rights of the Association under the direction of the Association or Directors. They shall not assign, transfer, cancel, deliver up, or acknowledge satisfaction of any bond, mortgage, or legal instrument belonging to the Association, unless directed so to do by a vote of the Association or Board of Directors, and the form thereof approved by the Attorney. On the remov- al or resignation of a Trustee, he shall execute to his co-Trus- 6 tee, or to his successor, such assignment of his interest as Trustee, as the Attorney shall deem nepessary. Any Trustee may be removed or suspended in the same manner as any officer of the Association. It shall be the duty of the Board of Directors, as soon as practicable after the third regular meeting, and after every other regular meeting during the continuation of the Associ- ation, and until the shares are all subscribed for, to ascertain and determine what entrance fee upon each share should be paid at the next regular meeting of the Association, by per- sons who maj be desirous of becoming members, or subscrib- ing for additional shares, in order to place such new mem- bers, or subscribers for additional shares, upon the same foot- ing as to shares subscribed for as those holding the shares originally subscribed for ; and notice of the same shall, without delay, be placed in a conspicuous place in the office of the Secretary. ARTICLE V. Finance Committee^ and their Duties. Three of the Directors in rotation, shall constitute the Fi- nance Committee, and they shall be so arranged by the Pres- ident, that one shall go off from the Committee every quarter. They shall audit the accounts of the officers, and all bills against the Association, and shall at all times have access to the books belonging to the Association , and report quarterly. All bills, when for expenses, authorized by the Association or Board of Directors, which shall be certified by the Finance Committee to be correct, shall be paid without further ac- tion. They may from time to time pay to the Secretary a sufficient sum of money to meet the current expenses of the Association. ARTICLE VI. Duty of Preiident and Vice-President. The President shall preside at all meetings of the Associa- ‘tion and the Board of Directors ; he shall not use the Seal of the Association, or receive, dispose of, or change the place of deposit of any moneys or other property of the Association, or borrow money or contract debts in the name of the Asso- ciation, without being authorized so to do by the Board of Directors. When the President shall be absent, the Vice-President, and in the absence of both, the Chairman of the Board of Directors, shall perform all the duties of the President. In the absence of the three officers above named, a President “ pro tern” may be appointed from and by the members at any meeting of the Association. ARTICLE YII. The Secretary, and Ids Duties, The Secretary shall attend all meetings of the Association, regular and special, with the books and papers of the Asso- ciation necessary for the transaction of the business of such meetings ; and shall also attend, with all proper books and papers, the regular and special meetings of the Board of Di- rectors. He shall keep correct minutes of the proceedings at all such meetings. He shall keep the books of accounts of the Association, in which shall be entered all« accounts be- tween the Association and the members and otherwise ; also books for the subscription of shares. He shall also keep a proper book for the register of the names, occupation, and residence or place of business of the members, and also any other book or books which the President may find necessary for the business of the Association. He may employ an As- sistant, who shall be compensated out of the Secretary’s sal- ary, and for whose fidelity and conduct the Secretary shall be responsible. He or his Assistant shall attend at the regu- lar place of business of the Association daily, between the hours of ten A. M., and three P. M., except Sundays and holidays. He shall, under the direction of the President, serve all notices, and under the like direction conduct the correspondence of the Association. He shall, without delay, deposit in the Bank to be selected by the Board of Directors, to the credit of the Association, all moneys from time to time received by him for the Association, and until the same shall be so deposited, he shall be personally responsible for the safety thereof. He shall for his services receive such com- pensation as shall from time to time be fixed by the Board of Directors, and shall execute a bond, with one or more suffi- cient sureties (to be approved by the Board of Directors) for the faithful discharge of his duties, and further conditioned, that he will fully indemnify and save harmless the Associa- 8 tion from and against any loss of moneys by him received for the Association, no matter how occasioned, until the same shall be deposited in the Bank selected by the Directors, to the credit of the Association. All books kept by the Secre- tary shall at all reasonable times be open to the inspection of any member. All communications intended for the Association or Board of Directors, sh^ll be addressed to the President, and left with the Secretary. ARTICLE VIII. Surveyor j and his Duties. It shall ])e the duty of the Surveyors of this Association, to personally examine all property oflered as security for ad- vances to be made by the Association, immediately upon the purchaser furnishing him with the location and description of his property. He shall thereupon and without delay, re- port to the Board of Directors a full and minute description of the premises as he has examined, together with the value thereof, and his opinion thereon, which statement and opin- ion shall be in writing, and shall be filed with the papers connected with such property. The Board of Directors, if tliey are satisfied with such statement and the value of the premises, shall proceed to pass the same, and shall notify the Attorney that they are satisfied with the security offered. He shall receive such compensation, and in such manner, as the Board of Directors may deem proper. In the absence of both of the Surveyors, the Directors may appoint a special Surveyor for the time Ijeing. The compensation of the Sur- veyors shall be secured, when practicable, in the same man- ner as is that of the Attorney. ARTICLE IX. Attorney and Counsellor^ and his Duties. It shall be the duty of the Attorney and Counsellor of the Association, to pursue and examine all title deeds, and make the necessary searches for ascertaining the^itle to all proper- ty offered as security to the Association. He shall prepare all bonds, mortgages, agreements, and all other writings to bo taken or given by the Association , in the course of its Busi- ness. He shall also transact all other law business of this 9 9 I Association whenever necessary, for which he shall receive such compensation as is proper. His charges for fees and disbursements, in making searches, recording and proving papers, and preparing mortgages, and all other written in- struments, examining papers, titles, and other matters, shall be borne by the party dealing with the Association in refer- ence to such matters, a,nd in default, shall form a charge against the said party on the books of the Association. In all disputes as to the amount of his charges, the same shall be determined by the Board of Directors. ARTICLE X. Monthly Dues^ and Fines for Non-Payment. Every member of the Association shall, during the week next preceding every regular meeting after the organization of the Association, and during its continuance, pay two dol- lars as monthly dues for each share held by him, and for any neglect in so doing, shall be fined for every non-payment on each share as follows : for the first month, twelve cents ; second month, twent3^-five cents ; third month, thirty-seven cents; fourth month, fifty cents; and every succeeding month, one dollar, xill shares, on which no pa^unent has been made for six months, shall be forfeited. Provided, such forfeiture may be remitted, if he can prove to the satisfaction of the Directors that said neglect to pay has arisen through accident, sickness or misfortune. All payments by a mem- ber shall be applied to the oldest charge against him on the books. No payment of monthly dues or fines, shall be re- ceived from any member except for the whole amount of such dues and fines due by such member at the time of tendering such payment, except allowed by the Board of Directors. Members paying their dues three months or more in advance, shall be entitled to interest at the rate of six per cent, per annum. ARTICLE XI. Entrance Fee. Every member of this xVssociation shall pay an entrance fee of one dollar per share, until the conclusion of the third « ular meeting of the Association, after which time new rnbers shall pa^’^ the monthly dues from the commence- 10 ment of the Association, and such increased entrance fee as the Board of Directors shall judge to be sufficient to place the new members upon the same footing as the original shares. All shares on which an entrance fee only has been paid shall become forfeited in two months after they shall have been subscribed for. The arrears for new shares shall be paid in full, or in such instalments and under such penalties as the Board of Directors shall determine. ARTICLE XII. Removal of Officers, Any Trustee, Officer, or Attorney of this Association, may be removed in the manner hereinafter provided, for miscon- duct, neglect of duty, or any other sufficient cause. All charges against any Trustee or Officer shall be made in writ- ing, signed by the member making such charge, and shall be filed with the President and Secretary, who shall lay the same before the Board of Directors at their next meeting, and shall give personal notice to the person against whom the charges are preferred. The Board may suspend, if they deem it necessary, such person, while said charge is pending. They may summon any member to testify, and may impose a fine of not more than five dollars for any refusal to so appear and testify ; such fine shall be reported to the Secretary, who shall charge the same against such member upon the books of the Association. No officer shall vote upon any proceeding by the Board upon any charge against himself, or preside at the Board during the investigation thereof. The Direc- tors may dismiss such charge as showing no ground of com- plaint. Should the Board of Directors, after the investigation of any charge preferred, recommend the removal of the person against whom such charge is preferred, he may be so remov- ed by a majority of the votes of the members present, which shall be by ballot. The decision of the meeting shall be final. If the Directors, upon the investigation of any such charge, shall find that the same was frivolous, or without probable cause, such finding shall be entered in the minutes, and they may direct the Secretary to strike from the list of members the name of the member making such charge, and the same shall be done accordingly. All dues paid into the Associa- tion by such 1 lember upon shares not redeemed, shall 11 returned to him with such interest as the Board of Directors shall determine. His said shares shall be cancelled, and he shall ever after be incapable of becoming a member of the Association. Upon the removal of any Director, Officer, or Attorney, another shall be elected in his place to fill the va- cancy, at the same meeting ; such election to be conducted in the same manner as regular elections. Should the mem- ber preferring such malicious or frivolous charge be a Direc- tor, Officer, or Attorney, instead of striking his name from the list of members, the Board of Directors shall report the facts, with their opinion thereon, to the next regular meet- ing, and such Director, Officer, or Attorney, may be removed by a vote of the meeting, in the same manner as before pro- vided in relation to the removal upon charges preferred. If removed, his name shall be striken from the list of members, in the same manner above provided. ARTICLE XIII. Fines of Officers and Members. Any Officer failing to attend any regular or special meet- ing of the Association at the appointed time, shall be fined twelve cents, and for being absent the whole of such meetings, shall be fined twenty-five cents. Should any one of the Board of Directors, or the Secretary fail to attend, he shall be fined twenty-five cents. Should any Officer having the custody of books or papers, which should be present at any meeting of the Association, or the Board of Directors fail to bring or send the same at the opening of such meeting, he shall be fined one dollar. Any member of the Board of Di- rectors failing to attend any regular or special meeting, he shall be fined twenty-five cents, unless excused by the Board of Directors. Any member of a special committee failing to attend to its duties, shall be fined one dollar. Sickness or absence from the place of meeting more than four miles, shall excuse, except in the case of non-production of books or papers. ARTICLE XIV. Purchase of Shares, ^ As soon, and as often thereafter as the funds of the Asso- jciation shall amount to the sum of five hundred dollars, (one 12 share,) the same shall be put up to competition among the | members, by the President, at a regular meeting of the As- sociation, and the member offering the highest premium for the same, shall be entitled to it for the purpose of building or purchasing freehold or leasehold premises, or removing incumbrances therefrom, which he shall mortgage to the Association for the payment of his subscription, interest, fines &c. In case a member is desirous of procuring more them one share, he shall have the privilege (after having offer- ed the highest premium for one,) of receiving nine more shares,, at the same amount of premium, out of the next moneys to be received, provided he subscribes and pays the value of such additional shares as have not already been sub- scribed and paid for, and at the time of purchase, pays the sum of one dollar on each share purchased; w'hich, in addi- tion to the interest hereinafter mentioned^ shall also be for- feited, in case the member should refuse or neglect to receive said share or shares. But no member shall purchase morb than ten shares. The purchaser of any shares shall pay an interest, from the time of purchase, of six per cent, per annum, payable monthly, as a redemption fee ; and incase the member so purchasing shall fail to comply with the terms of purchase, he shall be charged with the interest for the time the Association may be deprived of the same through his neglect. The member so purchasing, shall, within one week after becoming the purchaser of such share or shares, tender to tlie Secretary, to be submitted for the approval of the proper officers, a written statement of the location, de- scription, and value of the property which he proposes as se- curity for the money to be advanced by the Association. If the Officers are satisfied* with the sufficiency of the value of the security thus offered, the Association shall advance the amount to the member, when the Attorney of the Associatibn shall be satisfied with the title thereto, and upon the execu- tion of the proper instruments. In case the member should build, the money shall be advanced in sums necessary for the prosecution of the building until its completion, the Associa- tion executing an agreement to that effect at its own e'xpense. In that case, the member shall produce a certificate from the builder engaged in the erection of the building, certified by the Surveyor of the Association, of the sum necessary for such purpose. But no money shall be advanced for the purpos ^ 13 of building, until the first story of the premises shall have been erected, unless the Board of Directors are satisfied that it is safe and proper so to do, and a bond and mortgage, under the direction of the Attorney, shall have been executed and delivered by the member to the Association. ARTICLE XIV. Mortgaged Premises to he kept Insured, free from Taoces, dfc. All property mortgaged to the Trustees for the benefit of this Association, shall be kept fully insured against fire in some good ofSce, to be approved of by the Board of Directors, and the policy to be assigned to the Trustees of the Associa- tion, except vrhen such assignment shall be impracticable, and the Directors deem the security sufiicient without it’; the premiums to be paid by the Association and charged to the member mortgaging the same, who shall repay the amount of such premium at the time his next subscription to the Asso- ciation falls due. He shall also keep the property free and clear from all arrears of ground rent, taxes, water rent, and assessments. In case default be made in payment, the Secre- tary shall pay the same immediately out of the funds of the Association, and charge the same to the member, who shall be fined, at the discretion of the Board* of Directors, in any amount not exceeding one dollar for each defiiult, and the mortgaged premises shall be subject to all such charges and fines. ARTICLE XV. Substitution of Mortgager. Whenever any mortgager to this Association shall sell the mortgaged premises, the purchaser thereof, if not already a member, may become so on being elected, and paying an en- trance fee of one dollar per share, and assuming all the stip- ulations, argreements and conditions of the original mort- gager by a proper instrument drawn by the Attorney of the Association, to be executed at the expense of the purchaser, in which case the original mortgager shall receive a discharge, (at his expense) from ail personal liability on account of such l^mortgage. 14 ARTICLE XVI. Change of Mortgaged Premises for others. In case any mortgager to this Association shall wish to change the mortgage from the original mortgaged premises, he may do so upon giving security of sufficient value, to be approved by the proper officers, and paying a transfer fee of one dollar per share, and he shall receive a discharge of all papers connected with the original mortgage. ARTICLE XVII. Ptdem'ption of Mortgaged Premises, When any mortgager to this Association shall desire to re* deem his premises from the mortgage upon it, he shall give seven days notice to the Secretary before the next meeting of the Board of Directors. The Secretary shall lay the matter before them, and they shall decide the amount to be paid by the mortgager ; in case the same is agreed to by the mort- gager, he shall pay the said amount and receive a dis- charge or release of the mortgaged premises, and all the papers and documents connected therewith, and be clear from all further .payment to the Association in regard of such share or shares with which he purchased or built the said premises. ARTICLE XVm. Transfer of Shares, Any member being clear of the books of the Association may transfer his or her shares to any person who is or shall become a member, as provided in Article second, and pay a transfer fee of one dollar per share. In such case, the trans- feree shall be entitled to all the privileges of the original holder. ARTICLE XIX. Withdr await of Shares, In the case of the death of any member, the amount paid into the Society, shall belong to his executors or administra- tors, who shall enjoy the same benefits and advantages, and be subject to the same liabilities as the original holder enjoy- ed, or was subject to. When there is more than one execu^ 15 tor or administrator, the first name in the letters testamento- I ry or of administration, shall vote at the meetings of the Association ; and in caae any member, by reason of sickness, or removal from the city, or through misfortune, is unalde to continue the payment of his subscription to the Society, he or she may give notice to the Secretary of an intention to withdraw from the Association ; and in case the Board of Directors are satisfied as to the ground of withdrawal, the whole amount of subscription paid by the party into the As- sociation, shall be returned. Any person wishing to with- draw for the above reasons, or otherwise, and who shall have been a member of the Association two years, and be clear of the books, shall receive an interest of four per cent., and any member of more than three years* standing, shall ^be enti- tled to an interest of five per cent, on the amount of funds paid by such member or members into the funds of the Asso- ciation. ARTICLE XX. Loans. No money shall at any time be borrowed for the use or in the name of the Association, or any debt contracted, except for the ordinary expenses of the Association, by any officer, officers or members of the Association. ARTICLE XXI. Application of Insuf ance Money. In case of the loss or damage by fire of any building mort- gaged to this Association and insured, the amount of such insurance shall be received by the Trustees of the Association, and advanced to the member for the purpose of re-building the same, in the same manner as if it were a new loan. And if the amount so received shall exceed the cost of re-building the premises in as good a manner as they were originally, then the balance shall be handed over to the member, or be taken by the Association on account of his subscription, &c., at his option. ARTICLE XXII. Investment of Surplus Funds. All funds of the Association beyond what shall be required ^r advances to members, shall be invested upon bond and IG mortgage, or such oth'^r security as shall be allowed bj two-thirds vote of the members present at any regular meet- 1 ing, and be approved and recommended by the Board of Directors. ARTICLE XXIII. General Fund, All fines, monthly dues, fees, bonds, premiums, and inter- est received by the Association, shall be considered as assets thereof, and applied to the general fund ; and no uncurrent ^ moneys shall be received by the Association. ARTICLE XXIV. Annual Re'pori of the condition of the Association. At the meeting held for the annual election for officers, and before such election takes place, the Finance Committee hav- ing within one month previous thereto, examined all the books, vouchers, papers and accounts of each and all the of- ficers of this Association, shall make a report (in a book, to be kept for that purpose,) of the condition and correctness thereof, together with a full statement of all receipts and payments of the past year, and showing the number of shares purchased and uhpurchased, the names of members, and the number of shares held by each, the names of mortgagers, and a brief description of the mortgaged premises, and such fur- ther particulars as shall, in their judgment, be important. ARTICLE XXV. Notices, Every member of this Association shall cause his name, occupation, and place where he may desire notices to be ad- dressed to him, to be entered in the book to be kept for that purpose by the Secretary. All notices required to be served upon any member, except such as are intended to be the foundation for forfeitures, shall be served by depositing the same in the Post Office, in the City of Manchester, properly .scaled and addressed to such member at the, place so designat- ed by him . It shall not be necessary to serve notice of any meeting or proceeding of the Association, upon any member whose name is not so registered, with a place designated fop 17 the service of papers. The certificate of the Secretary shall he conclusive evidence of such service, and the time when made. In computing the time for the services of all notices upon members, the day upon which such notices are placed in the Post Office shall be excluded, and the day upon which the meeting or proceeding of which the notice is intended to be given shall be held, or take place, shall be included. No objection shall be made by any member residing out of the City of Manchester, that the time prescribed by these Articles for any notice, is too short to enablo him to avail himself of it. The provisions of this Article shall also apply to execu- tors, administrators, and persons acting under any general authority as proxies of members. ARTICLE XXVI, Votes, On all votes taken at any meeting of this Association, each member shall be entitled to one vote, for each share holden by him, who shall not be in arrears two months ; and in all elections or ballots, the roll of members shall be called, and the Secretary shall ascertain whether members voting are in arrears. All candidates for election to office must .be nomi- nated one regular meeting previous to election. On all ques- tions, votes, and ballotings, the same shall be decided by the votes represented at the meeting ; and, unless otherwise here- in provided, a majority of the votes present at a meeting shall determine the the ^question, vote, or ballot. Members may vote by written proxy, to be filed with the Secretary at or be- fore such elections. article XXVII. 'When Offices are Vacant. Upon the removal of any of the Officers mentioned in Ar- ticle III, to a distance of thirty miles from the city, or upon the death, resignation, or removal from office of any Officer, or upon his ceasing to be the holder of a share entitled to vote, his office shall be deemed vacant, and another shall be (elected in his stead at the next regular meeting, o 18 ARTICLE XXIir. ( Meaning of Pronouns. In all cases in these Rul as where the pronoun “ lie’’ or “ him’" is used, it shall he understood to mean a like pro- noun in any other gender or number. ARTICLE XXIX. Effects of Entries made by Secretary. The entries made by the Secretary in the books under his charge in all matters relating to his office, shall be prima facia evidence of all the matters so entrusted in all questions, suits, controversies, and disputes between this Association, the Officers, Directors, or members thereof, and any other of- ficer or member. Any member feeling aggrieved by any entry made in respect to him, may appeal to the Association at a regular meeting, and the decision made thereon, shall be final arid conclusive. Before the adjournment of each meeting, the Secretary shall read the minutes thereof, which shall W corrected and ordered for engrossment. At the next meeting the minutes shall be read from the engrossment, and if no further corrections are made, shall be final., ARTICLE XXX. Termination of (he Association, Whenever it shall appear by the books of the Association that there is sufficient money on hand and due the issoeia- tion to pay on each unpurchased share to tlie holder thereof, the sum of five hundred dollars over and above all debts and liabilities of the Association, all arrears of monthly dues, fines, and otherwise, shall become payable at once. The Board of Directors shall then pay, satisfy and discharge, first, all debts and liabilities of the Association, and then pay over to the owner of each unpurchased share, an equal dividend of all sums on hand, and which shall afterwards be received until the w hole shall be divided ; and from the time of the commencement of the payment of such dividends, no further monthly dues or premiums shall be payable, except that all arrears shall be fully paid up, and the trustees shall ^ deliver to ea*wise herein provided, to be determined by the presiding officer, gubjeetfo re,versal or appeal. .pl- > i 7> Persons yiplating any of these:^ules,;jna-y, jbe ^ined a sum not ex- ceeding one dollar for efoh pffence^in tb^e discliurge of the meeting. 8. These Rules may. be suspended at any me^ngtby a two-thirds vote. 9. These Rules may be alter, or amen^|i;%t any regular meeting by a two-thirds vote, upon dnejinpnt^’s.^tief^frinjiWri being given] such proposed alteration or amendment. ; - > \ I TO THE PUBLIC. As the best explanation which we can present of the nature and workings of “ Loan Fund Associations/' we giye the following report, made by a Committee of the Massachusetts Legislature, in the session of 1854. The Chairman of Committee, was Hon. Moses Kimball, of Boston : COMMONWEALTH OF MASSACHUSETTS. In Senate, March 7, 1854. The Joint Special Committee, to whom was referred the Pe* tition of William F. Goodwin and others, for the passag of a general law for the Incorporation of Loan and Fiim Associations, together with several other Petitions in ah of the same, submit the following BEPORT: . The Committee have carefully considered the subject, an; have heard the testimony of officers of Mutual Loan Fun< Associations in relation to the objects, the plan, and th- practical operation of the Associations now in existence. Fo; the purpose of affording the legislature the necessary infer mation upon the subject, and enabling them to act under standingly upon the bill, which the Committee have unani- mously decided to report herewith, the Committee siibmii the following statement as the result of the evidence whicl has been laid before them ; and they would remark that the}* are satisfied that the objects and plan of these associations are not only unobjectionable, but that, if properly managed, they will effect, and are now effecting an immense amount of good. 0 The plan of a Mutual Loan Fund Association is briefiy this, A company of individuals, of moderate means, but whose business aSbrds them a small surplus above their daily ex- penses, mechanics, laborers, tradesmen, associate themselves together, for the purpose of creating a fund, by paying in small sums monthly, which fund is every month let out again to such of the members as shall wish to borrow, giving secur- ity on real estate for the loan. The stock of the association is divided into a certain number of shares, and a certain sum is determined upon, as the value which each of those shares is to be worth, at the final winding up of the association. These amounts vary in different associations. In order to exemplify the practical workings of the associations, we will take as an instance, one in which the number of shares is fixed at fifteen hundred, the ultimate value of each share at five hundred dollars, and the monthly dues on each ^hare lit two dollars. At the organization of the association, about one thousand or twelve hundred shares are subscribed for, and the re- mainder reserved, for purposes which shall hereafter be ex- plained. Individuals may subscribe for one share, or any number, up to fifteen. On subscribing, they pay down one dollar on each share, together with twenty-five cents for a book, in which all the payments made by them are entered by the Secretary, then the member pays in two dollars every month on each share, until the termination of the Association. There will usually be from four to six hundred members, holding, some of them, one share apiece, and some two, three, five, or more, as the case may be. They are mostly composed of people who depend upon their own exertions for their for- tunes, men who work for a livelihood, and wish to secure a competence and a home for themselves and their families. There are also many females who have taken shares in these associations, as an investment for their moderate earnings. We will suppose that one thousand shares have been sub- scribed for, and the entrance fees all paid in, together with The monthly dues for the first month. This creates a fund of three thousand dollars, to be lent to the members. A public meeting is notified and held, at which all the members have an opportunity to attend, and the mon- ey is set up at auction, and struck off to the highest bidder. The principle upon which the bidding is conducted is this : 24 It is calculated, that in about eight years, the shares in the i association which have not been surrendered for the purpose of obtaining money from the association, will be worth five hun- dred dollars each. But during these eight years the mem- bers will have paid in for entrance fees and monthly dues, only one hundred and ninety-three dollars on each share. At the auction sale of the money, the President puts up one share, stating at the same time, that the highest bidder will have the privilege of taking, at his bid, any number of shares up to fifteen. Members then bid how much of the es- timated value of $500 dollars they wjll relinquish in order to obtain their money now. The biddings vary, of course, according to the competition and the scarcity of money at the time. We will suppose a member bids $300. This, deducted from the ultimate value, ($500), leaves $200 on each share which he takes now'. If he has subscribed for only one share, and wishes to obtain $1000, he can do so by taking four additional shares from the “ reserved shares,*’ before mentioned, and paying the en- trance fees and dues on the same up to that time. The price of the entrance fee is increased by the Directors every month, to keep pace wdth the constantly increasing value of the stock. Before a borrow'er can receive his money, however, he must give to the association his bond to pay the interest on the amout which he actually receives, which interest is calculated at six per cent, per annum, and is payable monthly till the termination of the association ; and also to pay the monthly dues of two dollars per month on each of his five shares, un- til the termination of the asssociation. It is calculated that the association will close within eight years ; so that during that time the borrower wdll have paid about $9G5, and the simple interest on the $1000 which he borrowed. His pay- ments and his interest then stop. His bond is cancelled, and his debt becomes paid and extinguished. At the time of giving his bond, he also gives a mortgage of sufiScient real estate to secure its fulfilment. This mortgage is also cancelled w'hen the bond is cancelled. A surveyor examines the property before the mortgage is taken, and gives to the directors his opinion of its value ; the directors decide whether the security is satisfactory, and the attorney of the association examines the title and prepares the neces- a sary papers. " There are now thirteen of these associations in operation in the city of Boston, and at least twenty more in other parts of the Commonwealth, and the number is rapidly in- creasing. In the absence of an act of incorporation, they transact their business by the intervention of trustees. In tlie Boston associations, the Secretary receives a salary of six hundred dollars a year ; and the office rent and other expenses are less than two hundred dollars, so that the whole of the annual expense of carrying on the business of an association is less than eight hundred dollars. The President and Direc- tors receive no salary, and the fees of the Attorney and Sur- veyor, which are limited and regulated by the rules of the association, are paid by the borrower. The expenses in other towns must, of course be much less than in Boston. The money which the Secretary collects, is deposited, from day to day, in a bank selected by the Directors, and cannot be drawn out except by order of the Directors, signed and countersigned by the prop- er officers, and the Secretary is required to give a satisfactory bond for the faithful performance of his duties, and the safe keeping of the moneys until depositc d. Members can, at any time, sell their shares if they wish, or can withdraw' their money if they are not able to continue their pa^^ments. Members who have borrow'ed money, and mortgaged their property therefor, can at any time pay up the amount of their indebtedness, and redeem their property by paying in such a sum as will place the association in as good condition as before. For neglect to pay up the monthly dues promptly, certain fines of fixed but trifling amounts, are imposed. A fee is also charged for every transfer of shares by a member to an- other person. The profits of the association are derived from the interest, (which is paid in monthly, and together with the monthly dues , lent again to other ])orrow'ers, also on interest ; so that, in point of fact, the interest is continually compounded ;) and from the fines for non-payment at the times specified, and the transfer fees, where shares are sold and transferred. Those who borrow' money, give up a proportionate num- ber of sliares, when they do so, and thus the whole number of shares is continually diminishing ; so that at the end of about eight years, the association wdll close by the extinguish- hient of all the shares, the members taking the money by bid- 26 ding and giving up their shares therefor, one after another, | and- in 0 n t h Ijy m on th . Such are the general features of the operation of Loan and Fund Associations. The advantages are these : They put it in the power of men of slender resources, who have laid by one, two, or three hundred dollars, and who, on ao count of the expenses of living, and the high rates of rent, are obliged to live nearly up to the full extent of their means, to buy a house or a piece of land for a homestead mortgaging the estate to the association to secure the monthly payments, while the small sum which they are able to pay towards the purchase out of their own funds, will render the estate itself a sufficient security for the balance which they obtain from the association. Then the member Vvdll owui the house he lives in, subject only to the mortgage to the association. The amount of money which he would otherwise have had to pay for rent, will be sufficient to pay all his dues and in- terest to the association ; and at the end of eight years, his mortgage will all be paid up. He will have a clear unen- cumbered title to his house, and yet he wdll have paid out no more in amount than he would otherwise have paid for rent alone, with the exception of a small part of the purchase money which he first paid out of his own means. To illustrate by an example : Suppose a man has only two hundred dollars. He lives in a house which he can buy for twelve hundred dollars, but for the use of which he is obliged to pay one hundred and eighty dollars a year in rent. He l)uys the house, borrows one thousand dollars of the associa- tion, pays down the mone}^, takes a deed in fee simple to him- self, and gives a mortgage to the association to secure his dues and interest. He pays to the association five dollars per month for inter- est, and ten dollars for monthly dues, amounting to one hun- dred and eighty dollars per annum, precisely the same sum that he was before paying for rent. At the end of eight years his debt becomes extinguished, and yet his expenditures have not been increased. What he before paid as rent, he has since paid for montly dues and interest. His house, therefore, with the exception of a small sum which he advanced himself at the outset, is a clear gain to him ; for which he may thank the Loan Fund Association. These are the cases that are monthly occurring in every^ such Association in the State. The advantages of these in- stitutions, tliercfjre, in increasing the comforts of the people, rendering them independent of landlords and capitalists, and furnishing them with the most pov^X'rful inducements to hus- band their resources, be industrious, prudent and economical, are really incalculable. The committee are fully of the opin- ion, that the encouragement of these associations will be a de- cided encouragement of good habits, of thrift, of order, of family ties and home feelings, and of that sentiment of per- sonal independence, which is the surest safeguard of liberty. It may be inquired whether these advantages cannot be se- cured without the machinery of these associations. The committee are not aware of any other means, by which the class of people which we have been describing, can procure loans upon that kind of security, and upon such terms of payment. Capitalists will not be troubled with receiving their pay in monthly driblets ; they prefer to invest their money in larger amounts, and on ample security, with the assurance of receiving the whole principal in one single sum. Banks require a good responsible indorser, — such as the class of people benefitted by loan associations, cannot furnish ; and also require the payment of the principal within less than a year. Savings Banks require — and very properly require — security on real estate, worth a much larger amount than the loan ; and also require tiie payment of the whole principal at once, at the expiration of the term of the mortgage. On the other hand the debt created to a loan association, is continu- ally diminishing by monthly payments, and the risk is, con- sequently, continually lessening, so that an amount can be advanced by them, much nearer the full amount of the value of the estate which is mortgaged. It may be truly stated, that most of those to whom these associations lend money, — and lend it with perfect safety, could not obtain the same loan at all from any other individual, corporation, or com- pany, on the same security. Nor are the advantages to the borrower greater than to the lender. The mechanic, or laborer, or seamstress, who can afford to lay by barely two dollars per month beyond the ex- penses of living, can here invest that trilling sum, wdth the certainty that it is surely, safely and rapidly accumulating, by the continual aggregation of compound interest ; being lent outj and coming in to bo lent out again, every month. 28 The depositor has none of the trouble of watching his in-* ^ vestment, or inquiring into the solvency or security of bor- rowers. All he is obliged to do, is simply to pay over his two dollars per month, and at the close of the association, or- at an earlier time, if he wishes, he can receive it back again, increased by its accumulated earnings much beyond any in- come which could be derived from any other safe application of his funds. A father can thus create a fund for his child* ren, to be theirs on arriving at full age, with comparatively little outlay or trouble to himself. And, by this means, the humble and hard working classes can enjoy the same advan- tages of investment and accumulation, in proportion to their small resources, Avhich the wealthy capitalist already enjoys, in institutions especially contrivccl for the benefit of men of large incomes and princely fortunes. The only arguments of any weight, which have been pre- sented to the committee, in opposition to the act now asked for, relate to the danger, that borrowers ivi 11 be entrapped in- to paying too much for their money, and may be obliged to make their monthly payments, long after they have repaid the amount which they have borrowed. To obviate any possible objection on this score, the com- mittee have introduced a section limiting the time within which any association must peremptorily close. This will fix a definite limit at" which tho indebtedness of borrowers must cease, and their bonds and mortgages can- celled. The committee have unanimously agreed to report the ac- companying Bill, which they believe to be sufficiently guard- ed, and at the same time, to afford the facilities for business which the petitioners desire. They would add, in closing, that the increasing number of these associations would seem to demand some legislative regulation of this kind, to insure the community, as far as practicable, against the chance of occasional mismanagement. MOSES KIMBALL, Chairman, We will further illustrate how a man can furnish himself with a home without anything but his hands and health. There is any quantity of land suitable for building lots, in this city, which the owners would be glad to sell on tl^ following terms, viz : If you will buy a lot 100 h 100, te* thousand square feet, and give a suitable bond to build a house upon it, worth $1000, within six months, he will then take a second mortgage for the price of the land, which you may call five cents per foot, amounting to $500, if you will give a good bond, that you will keep the interest on both mortgages, and monthly dues promptly paid. When a loan should be obtained from an association, the bargain is closed, 'the house goes up, the contractor holds the house until the loan is effected ; or the loan can be made in instalments as the work progresses. When the house is finished the man wdio is to be the ownier holds three shares in a Loan and Fund Association, he borrows on five shares, which he takes from the reserved shares, wdiich are reserved to accommodate the borrower, and retains the three shares wdiich he first subscribed for, he wdll get w^e wdll say $1000, on his five shares ; that pays for the house. He then gives a second mortgage, payable in eight years, for the land purchase. A friend signs a bond wdth him to the effect that he will see the monthly dues and interest promptl}- paid. The land owner knows that if the interest and dues are paid, the first mortgage is being reduced every month, and so on until the close of the eight years, wdienit will have run it- self all out, and will then be cancelled ; and as the first mortgage decreases, the second becomes first, in proportion, and at the same time the three shares he has retained brings him $500 each, $1500 ; he has built on one half of the lot, the other half now, at the close of eight years, is worth what he paid for the whole his estate cost $1500, the growth of trees, and rise of land has made it w^orth $2000 ; he pays the land mortgage with $500, and has $1000 in cash left; this man is now worth $3000. We will now see if he can meet the payments for the term of eight years, wdth $2 per day income. His monthly dues on eight shares are, $16 00 Interest on $1000, 5 00 Interest on land mortgage, $500, 2 50 He would have paid $12 per month for rent. Extra from his. rent,. $23 50 12 00 11 50 In eight years he wrould pay on eight shares, . . $1,536 00 (Admission fee, $1 per share, 8 00 20 480 00 240 00 Interest on $1000, Interest on $500 land mortage, Total paid out, $2,264 00 He would have paid in rent, 1,152 00 llc“has paid $1,112 more than his rent, $1,112 00 He is worth 3,000 by paying $1,112 more than His rent, 1,112 Net gain, $1,888 A man with an income of $2 per day, gets $52 per month ; lie pays $23.50 per month, and has $28.50 per month left, and no rent to pay, which will pay his other expenses. Tliis man, with less income buys 5000 square feet on th® same terms, he subscribes for eight sliares, borrows on six shares, and builds a bouse worth $1200, he pays in monthly dues, $16 04) per month. His interest on $1200 is, * 6 00 “ His interest on $250 land mortgage is 1 25 w^hicli makes his monthly payments $23 25 ho rents one half of the house for $7 per month, which leaves him $16.25 per month ; he is paying $8 per month rent on a similar tenement, leaving only $8.25 extra from his former rent. At the close of eight years he will receive $1000 in cash on his two sluires, which he did not borrow from ; he pays $250, the land mortgage ; owns a house worth $1500 including the rise on land ; and has $750 cash on hand, and has paid $792 more than his rent, and is worth $2,250, a not giiin of $1,458 in eight years. He has had $1.50 per day, $39 per month, from his earnings, $7 per month for rent, making $46 : he has paid out $23.25, which left him $22.75 to support his family with, and no rent to pay. If a man cannot keep the whole eight shares thTOu^i the term, he may sell the two or throe shares which m reserved, and generally at a bonus, for they may be trans- ferred at any time, and at the close of the term ho owes but $250 on his estate, and can easily get another mortgage, the amount being so small that he can control it. If a man has a few hundred dollars, he will find it much Oiisier to get along, 9 31 and the more the better, until you rise to the capitalist, who i does not wish to borrow, he has advantages which the pool' do not possess, but no power over the poor members, which could deteat the objects above mentioned. The borrower buys his house with his rent, and gets the same rise on property that the lender does in proportion to the investment, and all the advantages derived which the lender gains does not de- feat the foregoing calculation ; for if the borrower gets as much money out as he pays in, and pays six per cent, on tha amount received, he saves all his rent, and consequently makes a saving, he pays interest on the same amount until the close ; for instance he pays $5 on a thousand, the first month, and so on until the last month ; he wdll then owe but $10, one month’s dues on five shares, and still he pays the same sum of $5 the last month as he did the first, which would average about nine per cent, to the lender, but if he does pay extra interest which cannot be determined until the close of the term, yet that extra gain is made by keeping tlie dues and interest collected every month. Thus the funds are kept actively employed, and compounded every month. It is expected that about three quarters of th© members will borrow out, and if the compounding every month, and the earnings will pay to the other one quarter the shares of $500 for the $193 invested, it should not create any prejudice, for the borrower has made a larger gain on his investment than he could have made any other way, and this very fact will show the value of the Loan and Fund Association, for in no other way can the rich and the poor deal on more equal terms. Then we say to the capitalist, put your funds into the Loan and Fund Association, and you will do the work of a philan- thropist ; and to the middling class, we say, look to the Loan and Fund Association for the moans to secure a homo. Both classoa gain, and nobody loses.