default a petition may be presented to the next quarter sessions, and summarily dealt with. An officer failing to pay over any deposit lodged in his hands, becomes liable to imprisonment for an offence.2

Accounts. The trustees of each savings bank must cause a general statement of the funds invested in the Bank of England to be made up on the 20th November annually, stating the balance in favour of depositors, and in whose hands it is remaining, with the expense incurred. The statement must be attested by two persons each of whom is either a manager or trustee, countersigned by the secretary, and certified by every person who appears from the return to have money of the bank in his hands. It must be transmitted, within six weeks after the 20th November, to the national debt office. On failure to make the return, the commissioners of the national debt may advertise the circumstance, and in such case, or on failure by the bank to obey their authorized directions, the account of the bank with the Bank of England may be closed. A duplicate of the last annual statement must always be hung up in the bank office, and depositors are entitled to a copy for the sum of 1d.5

3

SECT. 7.-Investment of Property.

All money deposited in savings banks, except what is necessary for the management, must be invested in the Bank of England, where it may be deposited in sums not less than £50, on a declaration that the money belongs exclusively to the institution, and an order, both signed by any two or more trustees.6 Central savings banks may make the investments for their branches; the treasurers of the latter certifying that the deposits of subscribers do not exceed the limited amount. If an order or declaration contains any thing untrue, the sum accompanying it may be forfeited.8 money, with the interest from time to time arising on it, is to be invested in government annuities or exchequer bills.9 The interest is £3 5s. per cent. per annum.10 On the 20th of November and 20th of May each year, or within sixty days after either of these terms, the interest of the invested sums is to be computed and added to the principal.11

The

9 Geo. IV. c. 92, § 10.-2 7 & 8 Vict. c. 83, § 4.—3 9 Geo. IV. c. 92, $ 46. 3 & 4 Wm. IV. c. 14, § 32.- 9 Geo. IV. c. 92, § 46. 3 & 4 Wm. IV. c. 14, § 30.-5 9 Geo. IV. c. 92, § 47.-6 Ibid. § 11.-7 Ibid. § 13.— Ibid. § 14.-9 Ibid. § 15.-10 7 & 8 Vict. c. 83, § 1.-11 9 Geo. IV. c. 92, $ 17. 7 & 8 Vict. c. 83, § 13.

To enable them to draw invested money, the trustees must execute an appointment to an agent, signed by two of them, and attested by two managers, produced fourteen days before payment, and deposited with the Bank of England.1 Drafts presented by the agent must have been signed by two trustees, and attested by two other trustees or managers, or credible witnesses, and if they be for more than £5000, by four trustees, each signature being attested by one manager or witness. Drafts for more than £10,000 must not be paid till the expiration of fourteen days. Any trustees not being parties to a draft may obtain payment of it in person. Where the property of any savings bank is increased through the interest received beyond that paid to depositors, the trustees must, within six months after the 20th November annually, pay it over, deducting what may be necessary to meet current expenses, to the Bank of England, where it will be discharged from the account of the savings bank, and kept in a separate account, and open to the operations of the trustees for the purposes of the savings bank.3

CHAPTER VII.

FRIENDLY SOCIETIES.

SECT. 1.-Constitution.

THE purposes for which Friendly Societies may be established are declared by the act of 1846 to be the following:

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1. For the lawful insurance of money to be paid on the death of the members to their husbands, wives, or children, kindred or nominees, or for defraying the expenses of the burial of the members, their husbands, wives, or children; provided that no person under the age of six shall be allowed to become a member of such society, and that no insurance shall be effected on the life of any child under six years of age:

2. "For the relief, maintenance, or endowment of the members, their husbands, wives, children, kindred, or nomi

19 Geo. IV. c. 92, § 18.-2 Ibid. § 18-21.-3 Ibid. § 23.

nees, in infancy, old age, sickness, widowhood, or any other natural state of which the probability may be calculated by way of average:

3. "Toward making good any loss sustained by the members by fire, flood, or shipwreck, or by any contingency of which the probability may be calculated by way of average, whereby they shall have sustained any loss or damage of their live or dead stock, or goods or stock in trade, or of the tools or implements of their trade or calling:

4. "For the frugal investment of the savings of the members for better enabling them to purchase food, firing, clothes, or other necessaries, or the tools or implements of their trade or calling, or to provide for the education of their children or kindred with or without the assistance of charitable donations: Provided always, that the shares in any such investment society shall not be transferable, and that the investment of each member shall accumulate or be employed for the sole benefit of the member investing, or the husband, wife, children, or kindred of such member, and that no part thereof shall be appropriated to the relief, maintenance, or endowment of any other member or person whomsoever, and that the full amount of the balance due according to the rules of such society to such member shall be paid to him or her, on withdrawing from the society, and that no such last-mentioned society shall be entitled or allowed to invest its funds, or any part thereof, with the commissioners for the reduction of the national debt.

5. "For any other purpose which shall be certified to be legal in England or Ireland by Her Majesty's Attorney or Solicitor General, and in Scotland by the Lord Advocate, and which shall be allowed by one of Her Majesty's principal Secretaries of State as a purpose to which the powers and facilities of the [acts relating to friendly societies] ought to be extended; provided that the amount of the sum or value of the benefit to be assured to any member, or any person claiming by or through him or her, by any society for any purpose so certified and allowed as herein-before mentioned, shall not exceed in the whole two hundred pounds; and that this limitation shall be inserted in the rules of every society established for any purpose so certified and allowed; and that no such last-mentioned society shall be entitled or allowed to invest its funds, or any part thereof, with the commissioners for the reduction of the national debt." 291

19 & 10 Vict. c. 27, § 1.

Building Societies.-By a special act, it is provided, that societies may be established for the purpose of raising by periodical subscriptions, not exceeding twenty shillings per month, shares not exceeding £150, for the purpose of enabling the holder of a share to receive the value, and therewith erect or purchase a dwelling-house, or other real estate, to be secured by mortgage to the society, till the amount of the share and all expenses have been paid, with interest;1 it being competent for such building societies to receive a bonus from any member, in consideration of his receiving his share in advance, and to appoint forms of conveyance for the sale and mortgaging of the property.

2*

When a society is formed for any purpose in addition to that of providing relief, maintenance, or endowment in cases of sickness, old age, widowhood, or other natural state, the contributions must be kept distinct, unless the charges are defrayed by extra subscriptions at the time of the contingencies.3

Dissolution.-No such society, when once regularly constituted, can be dissolved before the purposes for which it was instituted have been carried into effect, without the consent of five-sixths in value of the members, and of all the individuals entitled to relief. For ascertaining the proportion of five-sixths, each member has one vote, with an additional vote for every five years that he has been a member; no one member having more than five votes on the whole. Dissolutions without such sanction, and votes for the appropriation of any funds otherwise than as the certified rules of the society sanction, are null, and those engaged in such transactions are liable in the penalties of fraud." (See this head in Index.)

SECT. 2.-Privileges.

Recovery of Money.-If the person who, as treasurer, or other officer, has any of the property of the society in his hands, die, or become bankrupt, or be pursued by diligence, or be obliged to compound with his creditors, the person

16 & 7 Wm. IV. c. 32, § 2.—2 Ibid. §§ 2, 3.-3 9 & 10 Vict. c. 27, § 3.-4 10 Geo. IV. c. 56, § 26.

The regulations as to Friendly Societies, in general, only apply to Benefit Building Societies in so far as they may be applicable to the peculiar purposes of the latter. As the phraseology of the act is entirely English, it may be questioned how far it is capable of being safely applied in Scotland. 6 & 7 Wm. IV. c. 32, § 4.

1

having as executor, creditor, or otherwise, access to the estate, must, within forty days after a demand made in writing, pay whatever is due to the society in preference to any other claims. The preferable right of the society exists though the office-bearer be the mere holder of securities for the money in his own name.2 In England the opinion has been held, that the preference will not extend to money lent to an office-bearer of the society on security, unless it be the proper duty of his office to take charge of the funds. All the property of a society is vested in the treasurer or trustee for the time being, without any conveyance from predecessor to successor, except a transfer in the case of public stock; and such office-bearer may sue or be sued in his capacity of office-bearer, and may bring or defend actions when sanctioned by a majority of the society. A society may subscribe its funds, whatever be their amount, to a savings bank established in terms of 9th Geo. IV. c. 92.5* Any society may lodge a sum not less than £50 with the Bank of England, on a declaration by two or more treasurers or trustees, that the money exclusively belongs to the society, and with the same formalities in other respects as are followed by savings banks.+ If such declaration is untrue, the interest is forfeited. A minor, with consent of parents and guardians, may be a member of a friendly society, and enjoy all its privileges.7

By the act of 1829, it was provided that when the officer in whose name any landed or funded property of a society stands is out of the way, or will not or cannot act, the Court of Session may give a remedy, and no fee is in such cases chargeable by any officer of court, or by counsel and agent named by the court. The act of 1846 provides additional remedies to the effect that, whenever any one invested with real property as a trustee for a society, is out of the jurisdiction of the courts, or an idiot, or lunatic, or not known to be alive, the registrar may convey the property to a person duly nominated trustee in his stead, the conveyance being as effectual as if executed by the former trustee; and that when every person, in whose name as trustee the property of any

4 & 5 Wm. IV. c. 40, § 12.-2 Miller v. Brand, 10th February 1825.3 Ex parte Ross, 1802, 6 Ves. 802.-410 Geo. IV. c. 56, § 21.5 4 & 5 Wm. IV. c. 40, § 9.-* See the previous Chap. Sect. 3.- Ibid. Sect. 7.610 Geo. IV. c. 56, § 31.-7 Ibid. § 32.—8 Ibid. §§ 15, 16, 17.