282 



Formation of Small Holdings. 



[JULY, ] 



Small Holdings and Allotments Accounts. 



(2) Separate accounts shall be kept by the Society of all 

 receipts and expenditure of the Society under the Rule headed 

 " Small Holdings and Allotments." The receipts shall be 

 applicable for the following purposes and no other purpose 

 whether during the existence of the Society or on dissolution : — 



(i) For payment of the expenses of managing land acquired 



under the said rule, including payment of rent, 

 rates, taxes and other like outgoings ; 



(ii) For payment of expenses of repairs or improvements 



from time to time made by the Society on such land ; 



(iii) For payment to the general account of the Society 



of interest at the rate of £5 per cent, per annum on 

 all capital expenditure by the Society on the acquisi- 

 tion or adaptation of such land ; 



(iv) For recouping capital expenditure by the Society on 



improvement or adaptation of the land within such 

 period as is reasonable having regard to the probable 

 duration of the improvement or work of adaptation ; 



(v) For forming a reserve fund not exceeding [one] year's 



annual value of the land, and so that ^uch reserve 

 fund shall be available for any purpose authorised 

 by this Rule but for no other purpose ; 



(vi) For prizes for the encouragement of the proper cul- 



tivation of the land ; and 



(vii) For creating or promoting the creation of small holdings 



or allotments generally. 



Nothing in this Rule shall prejudice or affect any right 

 or remedy of any creditor of the Society. 



The advantages of letting land to an association need very 

 little emphasising. The local authority will receive its rent in 

 a lump sum from the association and will be relieved of a 

 good deal of the responsibility in connection with the manage- 

 ment of the land. The association will select its own tenants, 

 supervise the cultivation of the land and collect the rents from 

 its individual members. It will be to the interest of every 

 member to see that the tenants are carefully chosen and that 

 the land is well farmed. 



By adopting the foregoing rules existing societies can 



