132 CO-OPEEATION IN DANISH AGEICULTUEE 



sell the mortgaged property, with live and dead stock and other 

 appurtenances, by auction without any necessity of legal medi- 

 ation, judicial proceedings or judgment. The Law authorises 

 public trustees of the estates of minors and of public institutions 

 to invest these funds in the bonds issued by the Credit Associa- 

 tions. Finally, the Law grants to the 'associations the right 

 to demand from their members a higher rate of interest than 

 4 per cent., which is the highest rate of interest on mortgages 

 sanctioned by the law unless a special licence has been obtained 

 in each instance ; it also authorises certain reductions in postal 

 rates. In order to obtain these concessions and to have the 

 bye-laws sanctioned by the Minister of the Interior, the Law 

 requires the following conditions to be fulfilled : — 



That before establishing an Association borrowers musfc be 

 registered for a joint amount of at least £55,500. 



That no member shall be granted a loan exceeding three- 

 fifths of the value of his property fixed by assessment according 

 to certain rules. 



That there must at no time be in circulation a larger amount 

 of Bonds issued by the Association than the total amount of 

 the members' mortgages deposited with the Association. 



That members shall be jointly and severally responsible for 

 the Bonds issued by the Association to the extent of the full 

 assessed value of their property, provided they have obtained 

 a loan equal to three-fifths of that value ; and in the same ratio 

 to the amount borrowed if this constitutes a lesser fraction of 

 the assessed value. 



That the members shall, besides interest on the loans, pay 

 a suitable contribution towards the redemption of the bonds. 



That Bonds shall not be issued to a lesser amount than £5, 

 and shall bear interest. 



That the Board shall annually publish the balance sheet of 

 the Association, and shall each quarter send an abstract of the 

 accounts to the Minister of the Interior. 



That the bye-laws shall only be altered with the sanction 

 of the Minister. 



The Law, as it will be seen, did not grant many privileges, 

 nor did it impose many or oppressive conditions. The Associa- 

 tions could be and were formed as purely private co-operative 



