BENEFIT BUILDING SOCIETIES. PART I. NATURE AND FORMATION OF BENEFIT BUILDING SOCIETIES. A Benefit Building Society is in the nature of a Joint Stock Association, the members of which subscribe periodically, and in proportion to the number of their shares, different sums into one common fund, which thus becomes large enough to be advantageously employed, by being lent out at interest to such of the members as desire advances; and the interest as soon as it is received, making fresh capital, is lent out again and again so as to be continually reproductive. The payments of borrowing members should be so calculated as to enable them to repay, by equal monthly instalments within a specified period, the principal of the sums borrowed with interest. The other members who have not received advances, become entitled, at the end of a given number of years, to be paid a sum equivalent to the amount of their payments, with accumulated compound interest. The Act regulating these societies is the 6 & 7 W. 4. c. 32, by which it is enacted that any number of persons may form a society for the purpose of raising, by monthly or other subscriptions of the several members, shares not exceeding the value of 1501. for each share, such subscriptions not to exceed in the whole 20s. per month for each share, a stock or fund for the purpose of enabling each member to receive out of the funds the amount or value of his or her share or shares therein, to erect or purchase one or more dwelling-house or houses, or other real or leasehold estate, to be secured by way of mortgage to the society until the amount or value of his or her shares shall have been fully repaid to the society, with the interest thereon, and all fines or other payments incurred in respect thereof. The society is empowered to make rules, which must be duly certified by the Registrar of Friendly Societies; and for this purpose two copies of the rules, signed by three members and the secretary, must be sent to him, and if he finds them conformable to law he is to give his certificate on each of the copies, and to return one to the society and send the other to the Clerk of the Peace for the county wherein the society is established. The same course is to be adopted upon the making of any alterations or amendments in the rules; and an affidavit of the clerk or secretary or one of the officers of the society that the provisions of the Act have been complied with must also be sent. The special advantages guaranteed to societies established under this Act are as follows: 1. The rules are binding upon the members, and may be legally enforced. 2. Protection is given to the members in enforcing their just claims, and against any fraudulent dissolution of the society. 3. The property of the society is declared to be vested in the trustees or treasurer for the time being. 4. The trustees or treasurer may, with respect to the property of the society, sue and be sued in their or his own names or name. 5. Fraud committed with respect to the property of the society is punishable by justices. 6. Disputes in certain cases are to be settled by reference to justices or arbitrators, whose order or award is final. 7. Priority of payment of debts, in case of the death or bankruptcy of any officer of the society, or upon an execution being issued against his property. 8. Any sum not exceeding 207. may, upon the death of a member, be paid without letters of administration. 9. Members are allowed to be witnesses in all proceedings, criminal or civil, respecting the property of the society. 10. Exemption from stamp duty of all securities given to the society. And lastly, no reconveyance of the mortgaged property is necessary on the termination of the society, or the repayment of the money advanced. The rules are required by the Act to contain the following particulars, namely, the intents and purposes of the society; to what uses the funds are to be appropriated, and the imposition of a penalty |