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gets the money on what is known as a secured demand loan. The bank will bill the owner quarterly for the in-
terest and will give a liberal repayment schedule. There is the benefit of having a preferred interest rate as
low as 4-1/2 per cent, and at the same time making the policies do double work. One maintains his life in-
surance and gets cash too. It is possible to borrow directly from the insurance company, but usually at a higher
interest rate.
Credit Union Loans. A credit union may be the ideal answer to a borrowing problem if the home owner
has access to an efficiently managed credit union. Few, if any, lending institutions have the credit union's ad-
fantages of low operating costs, tax exemption, and often free office space and clerical help, and few can
match the low rates credit unions charge or can compete with their service. Credit unions are usually formed by
members of a closely knit group, for example, employees of a business firm or members of a labor union, club,
or lodge. Their purpose is implicit in their name - to extend credit to the members of the union when they need
help. The unions operate under federal or state laws. They usually restrict interest on loans to one per cent per
month on the unpaid balance. The maximum size of the loan depends on the particular credit union.
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