PROSPLECTUS Of the Lyttelton and Christchurch Building and Investment Society,

Lyttelton Times, Volume II, Issue 62, 13 March 1852, Page 1 (Supplement)

PROSPLECTUS Of the Lyttelton and Christchurch Building and Investment Society,

To he established pursuant to Legislative Ordinance 15th Fie tor ia, Session 11, No. 11, in Shares of £120 each ; monthly subscriptions, ten shillings per share ; entrance fee, tiuo shillings and sixpence per share, THE Society will be founded upon principles which have been proved by the working of similar Societies in England and in this and other colonies to be mutually beneficial, and is established for the purpose of enabling its members to purchase their own Residences or other Freehold or Leasehold Property for investment or occupation. Building Societies have now become so general and the benefits derivable under the working of the same so thoroughly known and appreciated that it would be superfluous to say more in favour of them. By the rules and constitution of the Society, each member contributes ten shillings per month, for each, and every share held by him, and five shillings per share per month, as interest and redemption money from the period of taking a loan from the Society until by such monthly payments assisted by the profits derived from premiums, fines, and other incidental sources, each share shall have realised the value of 120/, which it is ascertained will be within nine or ten years from its commencement when the Society will under the Legislative Ordinance be dissolved. Some of the advantages conferred upon Building Societies by the Legislative Ordinance are— 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?. for priority of advance (such premium to be deducted from the sum lent), upon depositing the Title Deeds and a Mortgage of the properry 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 it cannot be wichdrawn 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 tht 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 security 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 60/., 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 210/. being the sum required. £. s. d. On each of the three shares he will have to pay JOs. a month, or . 110 0 With redemption money ss. a month, per share, on three shares. . . 0 15 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/. per annum, for ten years have paid oft" the whole amount borrowed and, have become owner of the property, whereas by paying 15/. per cent, 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 mere clearly. By paying to the Society for a period of ten years in monthly contributions, a fraction more than 10/. per cent upon 210/.: a borrower of that amount will, at the end of ten years have paid off the principal and interest. The redemption money considered in the light of interest upon any share will vary according to the bonus or premiums given for one or more shares by any of the members requiring the same at the monthly meetings. A Shareholder not having purchased property can at any time withdraw his share, or shares on certain conditions co be set forth in the rules; or if he has purchased be can redeem the property at any time by paying off the balance as may be arranged, or he can sell the property subject to the mortgage, or dispose of the same by will. Shareholders not desirous of purchasing property will, at the expiration of nine or ten years, receive for every share of sixty pounds, 120/. The great advantages this society offers for family endowments must.be self-evident, and demand the particular attention of parents desirous of accumulating a fund for apprenticing, or in any other way providing a sum for furthering the interests ofthair children without seriously entrenching upon th-. ir income. This provision is secured with certainty, and at a much more convenient and moderate rate than is required by the system of Life Assurance, for by paying the sum of ten shillings per month or 6/. per annum, he secures to his child 120/. at the expiration of nine or ten )rears from the commencement of the society. Should the child die, for whom the parent has made such investment, the right of transferring it to another child will be provided for. The only items which require observation are the bonus or premiums allowed on each share, and the sum paid as interest or redemption money. The premiums'are not in the least degree disadvantageous <:o the borrower, being in reality profits in which he ultimately participates in the same proportion as

other contributors. The redemption money is a much less rate of interest than the borrower would have to pay for the sum advanced through any private channel, and which also goes to the general fund, in which every person connected with the Society has an interest, and which the augmentation of, whether by premiums or redemption money, has the desirable effect of bringing the Society to a close, and shortening the period during which the borrower has agreed to maks periodical payments. Such are the objects of the proposed Building and Investment Society; and it only remains, in conclusion, to state, that Mr. Bell, one of the Members of the Legislative Council at Wellington, in the month of July last, when moving the second reading of the " Building and Land Societies Ordinance" (in pursuance of which this Society will be established), so justly brought before the Council the importance of such societies and the benefits to be derived from them, more especially in a new colony, that it is thought advisable to add his remarks thereon. Mr. Bell, in moving the second reading of the Ordinance, sail, " If societies of this kind had worked successfully in England, and had contributed to the comfortable establishment of thousands there, it was obvious they would be infinitely more advantageous in a new country, where wages and profits and the interest of money were so much higher than at home, and where, consequently, it was much easier for a working man to lay by some of his earnings, and by association with such societies to obtain real property, for which he would otherwise have to pay high rents, or rapidly to accumulate his savings upon a comparatively high interest. Now societies of this sort embraced both these objects. In the first place, they offered to their members the opportunity of acquiring property on easy terms ; in the second, they provided an accumulating fund for members who preferred that way of investing their savings." So soon as 400 shares are taken, a meeting of the members will be held at the Mitre Hotel, Lyttelton, of which due notice will be given, when the Rules of- the Society will be proposed for adoption, and the Trustees, Treasurer, Auditors, Solicitor, Surveyor, and Secretary or Manager be appointed. In j the mean time applications for shares may be made in Christchurch to W. G. Brittan, Esq., or Mr. E. Dobson, Surveyor. In Lyttelton, to Messrs. Cookson, Bowler & Co. „ LONGDEN &Le CREN, Mr. Alport, Mr. Laurie, Mr. "Waters, or at the office of Mr. Wormald, solicitor, London Street, Lyttelton, where any further information may be obtained.