Danish Loan Societies. 



"benefit under the law, contain certain provisions of which 

 the following" are the more important. 



' The sole object of the society is to lend nioney to its 

 members in order to defray the current expenses of farming. 

 Members may not belong to a similar loan society. The 

 total amount which a member can borrow is determined by 

 the council, and is based upon the normal number of cattle 

 which his farm can support, but the members are free to fix, 

 their " borrowing capacity" at a lower sum. Members on 

 joining pay i krone (about is. i^d.) per head of cattle to the 

 reserve fundj this sum bears no interest. The sum to be 

 borrowed by any member may not exceed 56s, per head of 

 ■cattle, or ^167 in all. The amount of the loan is determined 

 by the administration. The loan must be repaid in nine 

 months ; additional sums may be granted up to the above- 

 mentioned limit, but with this exception no fresh loan will 

 be granted within a month after repayment of the previous 

 one. The money is lent upon a simple bond. The rate of 

 interest must be the same for all the members, and may not 

 exceed 4J per cent, per annum. Any profit during the year 

 goes to the reserve fund ; any loss is defrayed by the 

 members, according to their borrowing capacity, up to 50 ore 

 (6f d.) per head of cattle, any further deficiency being met 

 •out of the reserve fund. The reserve fund must not exceed 

 IIS. per head of cattle; a surplus beyond this amount must 

 be treated as capital, and the interest utilised in reducing the 

 rate charged to members. Members can withdraw from the 

 society at any time, remaining, of course, liable for any 

 loans not repaid ; but their entrance money is not returned, 

 •except in case of death, or unless the society is wound up. 

 The society's funds must be deposited in a savings or other 

 bank. The statutes cannot be modified without the consent 

 of the Minister of Agriculture, and the society is subject to 

 his inspection. The dissolution of a society must be voted at 

 two general meetings, at fifteen days' interval, by a majority 

 of the whole number of members. 



Such loan societies can borrow from the State a circulating 

 capital, not exceeding 33s. 4d. per head of cattle, at 3 per 

 •cent, per annum. This loan must be repaid if the society 



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