— 3° — 



Banking Company, of any particular town or city, by pledging 

 UNINCUMBERED buildings, not vacant lands, situated m that 

 town or city, or in its immediate neighborhood, to the bank. 



II The Mutual Mortgage Bank should print (or have printed) 

 paper money, with which to discount the mortgage notes of its mem- 



bers. 



1 2 Every member, at the time his note is cashed by Ae bank, 

 should bind himself and be bound in due legal form, to receive in 

 payment of debts at par, and from all persons, the bills issued and to 

 be issued by the bank. 



13 Notes falling due may be renewed by the bank, subject to 

 the modification which a new valuation may require, so that the note 



does not exceed two-thirds. tvt ^ i 



14 Any person may borrow the paper money of a Mutual 

 Mortgage Bank on his own note running twelve months (without 

 indorsement), to an amount not to exceeed two-thirds of the cost of 

 the building (exclusive of the value of the lot) pledged by him. 



15 The charge which the Mutual Mortgage Bank should make 

 for the loans, should be determined by, and if possible, not exceed the 

 expenses of the institution, pro rata.* 



16. No money should be loaned by the bank except on the 



above conditions. 



17 Any member may have his property releasedjrom pledge, 

 and be himself released from all obligations to the Mutual Bank, and 

 to the holders of its bills as such, by paying his note or notes to the 



said bank. 



18 The Mutual Mortgage Bank shall receive none other than 

 its own money, or that of similar institutious, except such coin money 

 as the board of directors may designate, and this should be discounted 



one-half of one per cent. 



19. All Mutual Mortgage Banks may enter into such arrange- 

 ments with each other, as shall enable them to receive each other's 



bills. 



20 'Hie Mutual Mortgage Bank should publish in one or more 



daily papers each day, a statement of its loans the day previous, 



♦ '-Shcnpard Homans says, ihat the savings banks of Massachusetts, paid their 

 ...r'.r.L .P... .n .... J.h ,hrec-tentbs of one per cent per annum. 



