CO-OPERATIVE BANKS.

Taranaki Daily News, Volume LIV, Issue 107, 26 October 1911, Page 8

CO-OPERATIVE BANKS.

TO HELP SMALL FARMERS. THE GOVERNMENT'S BILL. Any ten or more farmers may, under the provisions of the Farmers' co-opera-tive Banks Bill introduced I>y the Government on Tuesday, become incorporated as a farmers' bank Each institution must be registered and. distinctivelynamed, but it will not be necessary to have «, registered office. The management will be in the hands of a hoard of management, consisting of the number of members (not being less than live) fixed by the rules of the bank, and elected annually at a generai meeting of the members. The board elects its chairman, who shall be manager of the bank, this being an honorary .position.

Money is to be 'obtained for conducting the bank's business under the following clause fn the Bill: (1) On application in the prescribed manner by any bank, any State Loan Department may, with the consent in each case of the Minister of Finance, advance to any member of that bank such sum, not exceeding in any case the sum of five hundred pounds, as the board approves, (2) All money so advanced shall 1)0 deemed to be advanced to the bank and shall be a first charge on the lands and interests in land of all the members of the bank, and those members 'shall be jointly and severally liable for the repayment of the moneys so advanced, together With interest thereon at such rate not exceeding 5 ,per cent, per unnum as may bp prescribed. (3 No money shall he advanced to any member of a bank under this section if by making such advance the total indebtedness for the tinier , being of that bank would exceed the value of the lands and interests in land of «I 1 the members of the bank. Similar advances may be made by any other person or company to member's of the bank under the conditions quoted above, and these advances will be guaranteed by the State. Advances may be made to any member of the hank or to members of the board with the consent of two-thirds of the total membership, but no advance shall be made for any purpose that is not directly connected with the improvement or carrying on of a member's farm unless security for the loan is given by the borrower to the satisfaction of the , board. Particulars of the bank's business, its members, and the securities held on account of loans must be furnished to the Superintendent of the State-guaranteed Advances Department whenever required.