building and loan association

The rudimentary form of such associations is supposed to be a society raising by subscription of its members a fund for making advances to members in order to enable them to build or buy houses of their own. A member is entitled to borrow on sufficient security an amount equal to his subscription for shares and when the shares are paid up by the instalment payments required and the profits of the company his indebtedness is cancelled.

An organization created for the purpose of accumulating a fund by the monthly subscriptions or savings of its members, to assist them in building or purchasing for themselves dwellings or real estate, by loaning to them the requisite money from the funds of the society upon good security. 173 III. 629. The purpose of a building and loan association is to enable a number of associates to combine and invest their savings to mutual advantage, so that any individual among them may receive out of the accumulations a sum by way of loan, wherewith to buy or build a house, mortgaging it to the association as security for the money borrowed, and ultimately making it his own by paying oif the encumbrance out of his subscription. 173 111. 629.