BUILDING SOCIETY

Waikato Times, Volume 119, Issue 19885, 14 May 1936, Page 9

BUILDING SOCIETY

STARR-BOWKE’IT SYSTEM. ADVANTAGES I'o INVESTORS. FORMATION OF .\‘E\\' GROUP. A Siarr-Bowkett building society consists of any number of shareholders who. for the sake of convenience, are divided into groups. These groups are further divided into clusters of a fixed number 0! shares in each cluster. The Hamilton Starr—Bowkett Building Society has been in operation for the past 13 years and, encouraged by the success of the operations of its No. 1 group, the directors have decided to form a No, 2 group. The special privileges and the method of the working of the N- 2 group will be as follows;

In Each share contributes 15 3d 991' lweek to the general fund. As soon as |£7so is in hand a meeting of share—iholders is held for the purpose of ldisposins oi‘ the monci'- ERG“ Shafc entitles the holder to a loan of £2OO free of interest. and 110 share can obtain more than one loan. The loan is for 15 years and ‘2O weeks, free ot interest. and is repaid at the rate _Of 69 3d per week. The loans are dis—posed of by ballot and by sale alter'nativeiy. The profit on the sale of 'loans accumulates for the bcnellt of shareholders. The general fund is thus built up. firstly, by the subscriptions on shares; secondly, by the re—payments of loans; and, thirdly, by the profits on the sales of loans. As these funds are used solely for making loans to shareholders on approved securities, the fund cannot deprecmte. The general fund ol’ each group is kept entirely separate and distinct from those of the other groups. When every share has received a loan the whole of the general fund is distribu—ted among the shareholders pro rata and the group ends. The administra—tion expenses are paid by a levy for the purpose. The levy now charged by the No. 1 group is 25 per share per annum, and it is not anticipated that ‘this figure will be increased for the ‘No. 2 group. The subscriptions of is land 3d per share per week continue luntii the No. 2 group is wound up. ‘ Special Benefits. t Firstly. a shareholder holding three shares, by winning a ballot. becomes entitled to a loan of £750 free of in—terest, and with repayments of only 185 9d per week. At the end of 15 years and 20 weeks the whole loan is thus repaid. Secondly, should a shareholder not require the money won at a ballot it may be sold and the proceeds of such sale are paid to the shareholder, or it may be placed on deposit. when the interest earned is paid to the shareholder. 'l‘hirdly, a shareholder requiring £730 urgently has the right to purchase sucliu sum at any sale of an appropriation by tender. In such a case the purchase price is added to the loan, and is paid in instalments spread over 15 years and 20 weeks in the same manner as the loan is repaid. Fourthly, after 10 years the profits earned by No. 2 group are distributed by way of dividendunnually, and any surplus remaining is divided pro rate at. the final wind—-ing-up of the group. ‘ General Benefits- ‘ Full provision is made for withldrawal from the society after five lyears, also for the suspension of sub—scriptions during illness or through ‘other adverse circumstances. in the event of death special provisions en—able the executors to obtain a refund or deceased‘s subscriptions without delay. Temporary loans may also be obtained from the society against. the amount paid in by a shareholder in the ‘cvent of any urgent or unforeseen ‘ditliculty arising. l The Hamilton Starr-Bowkett Building Society has up to the present ad—‘vanced mzer £50,000 to its share—holders, and in spite of the difficult period caused by the depression not

unc penny loss has been made on its“ investments, while the accumulated pruili, now exceeds £6OOO. The savings of its members by way of subscriptions puitl on shares now ex—('L‘l‘llS £28,000. The society is now uttering the residents of the \\'uikuto nn opportunity 01' forming a second group \\'llli excellent benefits, and it is hoped that this opportunity will he zu‘ailed ut' “hen the subscription lists are opened. .._—_.—