1908.] Agricultural Credit Societies. 



411 



without risk of being placed in a difficulty lend out the money 

 for long periods. The newly-established bank will place the 

 societies in a better position in this respect, as it will be prepared 

 both to receive surplus deposits from local societies and to 

 advance money to them when required. 



Method of Forming a Society. — An agricultural credit bank 

 of this type may be registered as a " specially authorised 

 society " under the Friendly Societies Act, 1896, on applica- 

 tion to the Registrar of Friendly Societies, 28, Abingdon 

 Street, S.W. This application must be made on a special form 

 to be obtained from the Registrar and must be accompanied 

 by two printed copies of the proposed rules. No fee is payable 

 for the registration of an agricultural credit society. The 

 rules must comply with the Act, and it may be noted that 

 the Act provides that the loans must be confined to members ; 

 that t'he rules must fix a maximum for any loan made to a 

 member on personal security, and that no loan can be made 

 which, together with moneys owing for the time being by 

 the member to the society exceeds £50 ; that the total amount 

 held at any one time on deposit cannot exceed two-thirds of 

 the total sums for the time being owing to the society by the 

 borrowing members ; and that no member can hold an interest 

 in the funds exceeding £200. Where, however, such a 

 " specially authorised society " divides no profit among its 

 members and watches over the application of the money lent, 

 it is entitled under the Societies Borrowing Powers Act, 1898, 

 to make a rule authorising it to borrow money from any 

 person whether a member or not ; otherwise the Friendly 

 Societies Act, requires the " loan fund " to be formed by 

 contributions or deposits from members only, subject to the 

 limitations mentioned above. : 



A form of rules has been prepared by the Registrar of 

 Friendly Societies for the purpose of assisting specially author- 

 ised societies in complying with the provisions of the Friendly 

 Societies Act so far as they relate to such societies. A set of 

 model rules specially adapted to agricultural credit societies 

 is also issued by the Agricultural Organisation Society, Dacre 

 House, Dacre Street, Westminster, S.W., and this society 

 will assist in the formation of these agricultural credit banks. 



These rules prescribe the terms of membership and provide 



