8o4 Journal of /Agriculture, Victoria. [ii Dec. J911 



{d) If the Board of Directors are satisfied with the trustworthiness of the appli- 

 cant, the sufficiency of the security offered, the profitableness by productiveness or 

 saving which the use of the loan may effect, and if they have sufficient funds under 

 their control, they may sanction the loan. 



[e] No loan shall be granted to a shareholder without surety or security which. 

 shall make the total sum owing by him to the Society at any time to exceed ^^5. 



{/) If the Board of Directors decide that the loan cannot be made either from 

 lack of funds, or if they otherwise deem it undesirable, or if they think proper 

 to postpone the consideration of any application for a loan, notice to that effect 

 shall be sent to the applicant by the Secretary. 



[g] A loan granted may be made repayable in instalments at intervals of one 

 week, two weeks, four weeks, six weeks, eight weeks, or three calendar months. 

 If a borrower wishes to repay the loan by instalments, but to postpone the com- 

 mencement of same for a longer period than here named, the loan can be made 

 foi a fixed term up to the time when it is desired that the instalments shall com- 

 mence. 



[h] The interest shall be payable on the same dates as the instalments are re- 

 payable. 



[i) If the Board of Directors find it necessary for the borrower to make any^ 

 payment on account of the expenses of management, or expenses incurred in con- 

 nexion with the loan obtained, then such payment shall be made by the borrower at 

 the time that the loan is advanced, or when the expenditure is incurred. 



(;■) When a loan is sanctioned a notice shall be sent to the borrower to that 

 effect, and if the borrower does not consent to take the loan on the terms offered 

 by the Board of Directors within one week from the date upon which the Board's 

 assent is given, the Board of Directors shall not be held bound to complete the 

 loan. If he consents to accept the terms offered, then, before the amount is ad- 

 vanced, the borrower, and his sureties, if required, shall execute a bill of exchange,, 

 promissory note, declaration as to possession of effects free from encumbrance,. 

 ail agreement as to the terms of repayment, or any other document which the 

 Board of Directors may consider necessary. 



{k) In the case of loans being sanctioned on security of real property a policy 

 ol insurance shall, if the Board of Directors deem it necessary, be taken out on 

 such property. 



(/) If the loan be repayable by instalments, the borrower shall be supplied with 

 a card, upon which shall be stated the amount and terms of advance, and upon 

 which the instalments and interest, when repaid by him, shall be entered and 

 initialled bv the official to whom the money is paid. 



[m) No person other than a member of the Board of Directors shall be present 

 at any meeting of the Board when an application for a loan is under consideration. 

 If there is a difference of opinion concerning the granting of a loan, the voting 

 shall be taken by ballot. The proceedings with regard to loans at Board meetings 

 shall be kept secret and any member of the Board of Directors or officer of Society 

 infringing this rule shall be liable to immediate suspension. 



(«) In the event of any loan, or instalment of loan, not being paid on the date 

 when it is due, the Secretary shall send a notice to the defaulting borrower. If 

 the amount due is not paid within two weeks, together with the additional interest 

 and a fine of 3d. in the ;,^i of the loan or instalment of loan owing, and no 

 satisfactory explanation is placed before the Board of Directors for non-payment, 

 then the borrower and his sureties shall be required to pay within fourteen days 

 the whole amount then owing, or, if other security has been given, steps shall be 

 taken towards the realization of the same. 



{0) A shareholder failing to ]).iv the amount due and the fine within the time 

 named, and not giving, in the opinion of the Board of Directors, a sufficient reason 

 for non-payment, shall not receive another loan- from the Society. 



[f) If, by reason of sickness or other sufficient cause, notified to the Secretary 

 before loan is due, a shareholder finds he will be unable to discharge his obligations 

 to the Society, the Board of Directors shall have power to remit the fine. They 

 shall also have power to extend the lime fixed for payment on such conditions as 

 they think fit. 



[q) If any shareholder shall be found to have misapplied a loan, the Board 

 of Directors shall have power to recall the loan or otherwise punish the offender 

 according to the rules. 



