The security for loans is declared by the “Public Health Act, 1875,” Section 233, to be the “credit of any fund or all or any rates or rate out of which they are authorized to defray expenses incurred by them in the execution of this Act.” And it is further laid down that “they may mortgage to the persons by or on behalf of whom such sums are advanced any such fund or rates or rate.” It thus appears that neither library buildings nor the library rate can be mortgaged for the purposes of library loans, but only the rate or rates out of which the expenses of the Public Health Act are paid. This practically means the general rate of a district. =34.= The Local Government Board will fix the period for which sums of money for particular purposes may be borrowed. Generally the periods are as follows: For sites or lands 60 or 50 years. „ buildings (including fixtures like counters, screens, wall and standard bookcases, wall newspaper slopes, barriers, etc.) 30 years.[1] „ books 10 „ „ furniture (tables, chairs, desks, and movable furniture only) 10 „ [1] A loan for purchasing an existing building will not be sanctioned by the Local Government Board for a period exceeding twenty or twenty-five years. The money may be borrowed from the Public Works Loan Commissioners, County Councils, Banks, Friendly Societies or private individuals. The rate of interest varies, according to the state of the money market. Four per cent. may be regarded as an average interest at present, but library authorities have borrowed for as low as 3 per cent. =35.= The methods of repayment vary, and this must be entirely a matter for local arrangement, and should follow the practice in vogue with other municipal loans. An equalized repayment of principal and interest on the annuity system has the advantage of distributing the payments uniformly over the whole period, and of placing part of the burden on succeeding ratepayers as well as upon those who establish the library. This is much fairer than making the pioneer ratepayers practically bear the whole foundation cost of establishing an institution which increases in its value to the community as it progresses. On the other hand, buildings are sure to depreciate in value, and the question of repairs is a constant one, so that some authorities maintain that loans on structures should be paid off by annually diminishing instalments of principal and interest. In Scotland repayments of principal must be made from a sinking fund which is to be formed from a certain proportion of the rate put aside annually.