Page 2 Advertisements Column 2

Lyttelton Times, Volume II, Issue 65, 3 April 1852, Page 2

Ist. That the property of the Society will be vested in Trustees, to whom all conveyances are to be made, and whose endorsment will be sufficient re-conveyance to the borrower. 2nd. That Trustees or persons receiving the Society's money, must give security to the Society. 3rd. That Females and Minors may become members. 4th. That the members have power to make rules and bye-laws for their own government, in accordance with the Legislative Ordinance. sth. That the rules of the Society will be subject to the assent of the Government. 6th. That Magistrates have the power of deciding summarily in cases of fraud or dispute. 7th. That full accounts are to be periodically published. Bth. That no member can hold more than five shares. The Society will be managed by a Board of Directors, and Trustees to be elected annually at a general meeting of the Shareholders. For a Society of this nature to be prosperous, it is necessary that the funds, as they periodically accumulate, should be immediately invested. To carry this out as soon as the Society shall have in hand by means of monthly subscriptions a sufficient fund to be enabled to make advances, a general notice thereof will be given, and the disposable fund then offered for competition. The member to become the purchaser, who shall offer the largest premium in a share of 120 Z. for priority of advance (such premium to be deducted from the sum lent), upon depositing the Title Deeds and a Mortgage of the property purchased as security to the Society for the regular payment of instalments until the termination of the Society, when the Deeds, &c. will be given up, and receipts endorsed thereon by the Trustees, whose endorsement, by the Legislative Ordinance will be a sufficient re-conveyance to the borrower. A subscriber may sell or transfer his shares, if desirous of doing so, on payment of a small bonus. Shares may also be disposed of by deed or will, and the executors or administrators will have the same advantages as the deceased member would have had if living. Every necessaiy precaution will be provided by the rules of the Society to prevent mismanagement of the affairs, or misappropriation of the funds. Securities will be taken in the names of the Trustees for the re-payment of every advance or loan, and the deeds safely deposited with the Bankers of the Society. The money paid by the subscribers will be received by the Secretary or Manager, and one or more of the Directors, and on the same or following day handed to the Treasurer, who will, with the Secretary, attend and pay the same into the hands of the Bankers, whence ii cannot, be withdrawn without the sanction of the Directors. Every cheque must be signed by two trustees, and countersigned by the treasurer. To persons who have borrowed on mortgage, the great advantage is offered of obtaining the money for the redemption thereof, from the funds of the Association, and while paying the monthly subscription of discharging the mortgage debt. The following illustration will more fully explain the beneficial working of this Society. Suppose a shareholder wishes to purchase a freehold property worth 210?., or to build upon a plot of land to that amount, or obtain a loan of 210.. upon ecurity of his freehold or leasehold property. £. s. d. The shareholder being owner of one share will in ten years at 10s. per month have paid in 601., but which, with interest and accumulations will then realize him .... 120 0 0 In consideration of receiving his share immediately he is willing to allow a premium or deduction of say . 50 0 0 Leaving a sum to be paid him of . 70 0 0 He will then require two more shares—in all, three—which at the agreed price will produce 2101. being the sum required. £. s. d. On each of the three shares he will have to pay 10s. a month, or . . 110 0 With redemption money ss. a month, per share, on three shares. . . 015 0 2 5 0 Which multiplied by twelve months " 12 Making an annual payment to the society of 27 0 0 So that instead of paying 311. 10s. per annum for interest, being 15/. per cent upon 210/., he will, by paying the Society 27 1, pev annum, for ten years have paid off the whole amount borrowed and, have become owner of the property, whereas by paying 15Z. percent, upon 210/., or 31/. 10s. per annum, he will have paid at the end of ten years 315/. for interests alone, leaving 210/. or the sum originally borrowed, then remaining on security of the property. To put the case un re clearly. By paying