3

H.—2B

the association, and the receipt of the association shall be a discharge for all moneys arising from or in connection with such sale, exchange, mortgage, or lease. 19. The directors shall have power of advancing sums of money out of the funds of the association, on the security of approved freehold or leasehold property. 20. The directors shall have power to invest any part of the capital of the association in the shares or on the security of any other society registered under "The Industrial and Provident Societies Act, 1877," or under the Building Societies Acts, or of any company registered under the Joint-Stock Companies Acts or incorporated by Act of the General Assembly of New Zealand or by charter, in the terms of subsection (3) of section 11 of " The Industrial and Provident Societies Act, 1867." 21. Every dispute between a member and a person claiming through a member or under the rules of the association and the association or an officer thereof shall be settled by arbitration, one arbitrator to be nominated by the directors and one by the interested party. If the said arbitrators are unable to agree they shall have power to call in a third party to act as umpire between them, and whose decision shall be final. If either party shall neglect or refuse to appoint an arbitrator for the space of ten days after receipt of notice of the appointment of an arbitrator by the other party, such last-mentioned arbitrator may make a final decision alone, and the decision so made under this rule shall be binding and conclusive on all parties without appeal, and shall not be removable into any Court of law or restrainable by injunction, and application for the enforcement thereof may be made to a Besident Magistrate's Court. 22. In the event of subscriptions not being paid at the expiration of the fourth week, a fine of Id. per share per week shall be imposed for the first month in arrears ; 2d. per share per week for the second month, in addition to the fines of the preceding month ; 3d. per share per week for the third month, in addition to the fines of the two preceding months; and so on in proportion. When the amount of fines shall equal the amount paid in as subscriptions in respect of shares the* same shall be forfeited and become the property of the association. 23. If, after a member has been placed in possession of any section allotted to him or her, he or she shall fail to pay any subscription or fine for a period of six calendar months, the directors shall have power to give to him or her, or to affix to some part of such section, a notice in writing under the seal of the association that, unless by three calendar months from the day of such service of such notice all subscriptions and fines then due and to become due by the expiration of such three calendar months shall not be paid, all subscriptions paid and to be paid by the member shall become forfeited to the association ; and that such member do, at the expiration of such three calendar months, give up to the association possession of such section and of all buildings, erections,, and improvements thereon. If such member shall make default in such payment, then the subscriptions paid by him or her shall become forfeited accordingly, and such premises shall be given up, and the member shall also forfeit the value of all such buildings, erections, and improvements. 24. A member aggrieved by the action of the Board under Bule 23 shall not have the right of appeal to any Court of law, but the case shall be referred to arbitration under Bule 21. If from lack of employment, sickness, or uncontrollable and reasonable cause a member shall be unable to continue the regular payments of his subscriptions, the directors shall have power to grant a suspension of payment for any time not exceeding twelve months upon such conditions as may be deemed right and fair. No fines shall be charged during the time of suspension, provided always that the financial position of the association shall justify the directors in such a course, as regards both suspension and fines. 25. Members, on taking possession of their allotments, shall be liable for and pay all rates, taxes, and outgoings that may be levied on the property held by them. 26. All profits that may accrue shall belong absolutely to the shareholders, and shall be divided among them, when it is deemed expedient, on the recommendation of the directors that a, division of the profits shall take place ; such recommendation to be confirmed by a majority of the shareholders at a general meeting, and the mode of division shall from time to time be decided by the shareholders in general meeting. 27. A seal, bearing the device of the Angel of Hope resting on an anchor, and beckoning, onward, surrounded by a garter bearing the words " Canterbury Co-operative Freehold Land Association (Limited) " shall be adopted by the association. The seal shall remain in the custody of the directors, and shall only be used on the resolution of the board and in the'presence of the chairman or vice-chairman and two directors. 28. All deeds and valuable documents shall be lodged at the bankers of the association for security. 29. The banking account shall be in the name of the association, and all cheques shall be signed by the chairman or vice-chairman and the treasurer and secretary. 30. As soon as the funds at the disposal of the directors shall be deemed sufficient to justify them in purchasing or acquiring a block of land, an advertisement shall be inserted in the newspapers inviting offers, from which they may select and purchase or acquire that which is considered most desirable. This shall be surveyed and cut up into sections; the necessary roads shall be formed in accordance with the requirements of the borough or Boad Board in which the property may be situated. The cost of survey, formation of roads, and other contingent expenses, together with 10 per cent, on the entire cost, shall be shared proportionately by all allotments in the particular block. The price of each section shall be determined by the directors prior to division among the shareholders, and shall not be less than the average cost per section of the entire block. 31. When a block of land has been bought or acquired, surveyed, and cut up into suitablesized sections, a ballot shall take place at the office of the association," or elsewhere, as the directors may decide, in which ballot each share shall have an equal chance ; but no shareholder shall be*