Show Rural Credits Bill i CC Concluded from rom last week d To purchase United States Government bonds The farm loan bonds bond first mortgages mortgages mortgages mort mort- gages United States Government bonds or cash constituting the trust fund aforesaid shall be forthwith deposited with the farm loan Joan registrar registrar regis regis- registrar as 86 substituted collateral security ty in place of at the sums paid on ou the tho principal of at indorsed mortgages holdby holdby hold holdby by him in trust Every Federal land bank or joint stock Block l lend nd ltd bank shall notify tho the farm loan registrar of or the tho disposition of ot all aU payments made o on i the pried pried- security for fol au an issue of ot farm loan bonds and said registrar is authorized authorIzed authorized author author- at at his discretion to order any of su such h payments or the proceeds thereof wherever deposited or however how bow ever r invested in to be immediately transferred to his account as trustee aforesaid cs and nud Dividends of Land Banks Sec 23 That every Federal land bank and every Joint stock land bank shall semiannually carry to reserve reserve reserve re re- re- re serve account twenty-five twenty per of its net earnings until said reserve reser account shall show a credit balance i equal to twenty per of the I outstanding capital stock of or said land bank Whenever said reserve shall shall I have been impaired said balance of or twenty per shall shan be fully restored restored res res- I before any dividends are paid After said reserve has bas reached the sum Bum of twenty per of the outstanding capital stock five per of the net earnings shall be I annually added thereto For the period of two years from the date when any default occurs in the payment payment payment pay pay- ment of at the interest amortization installments installments in in- or principal on any first mortgage by both path mortgagor and Indorser the amount so defaulted shall be carried to a suspense account ac ae- ac- ac coun count and at the end of the two- two year ear period specified unless collected collect collect- ed shall be debited to reserve ac ac- ac- ac count After deducting the twenty five per or the five per here- here directed 10 w oe De lor tor or credit to reserve account any Federal land Jand bank or joint stock land bank may declare a dividend to shareholders shareholders shareholders share share- holders of the whole or any p part rt of or orthe the balance of its net earnings The I reserves of land banks shall h jl be in jn vested in accordance accordance with with- with rules rules and regul regulations to be prescribed by r the Federal Farm Loan Board n Reserve MC and Divi Dividends of National Farm Loan j i Associations Se Sec 24 4 That every n national t onal farm farm loan association shall out of its net earnings semiannually carry to reserve reserve reserve re re- re- re serve account a sum not less than ten per of or such net earnings said reserve account shall shaH show a credit balance equal to twenty per of the outstanding capital stock of oC said ion Whenever said reserve resen-e shall have been impaired said said- credit balance of oC twenty per shall be fully restored before any dividends are paid After said reserve has reached reach reach- ed said sum of or twenty per two per of oC the net earnings shall be annually added thereto After deducting the ten per or the two per hereinbefore directed to be he credited to reserve account account account ac ac- ac- ac count said association may at its discretion declare a dividend to shareholders of the whole or any part I of at the balance of oC said net earnings The reserves of or farm loan associations associations shall be invested In accordance with rules and regulations to be prescribed prescribed prescribed pre pre- scribed b by the Federal Farm Loan Board Whenever an any farm tarm loan association association tion shall shaU be voluntarily liquidated a sum equal to its reserve account as herein required shall shan be he paid to I and become the property of oC the Federal Federal Federal Fed Fed- i eral land bank In which such loan association association as as- i may be bo ash a I Defaulted Loans Sec Soc 25 That If It there shall be default default default de de- I fault under the terms of any Indorsed indorsed indorsed in In- first mortgage held by a Federal Fed Fod- Federal eral land bank under the provisions of this Act the national farm loan association or agent through which Bald ald mortgage was received by said Federal land bank shall shan be notified of said eald default Said association or agent may thereupon be required within thirty days after aCter such notice to make good said default either by payment of the amount unpaid thereon there there- on in ia cash or by the tho substitution of ot an as equal amount of farm loan bonds issued by said land bank with all coupons attach attach- ed Exemption From Taxation Sec 26 That every Federal lan land d bank and every national farm loa loan n association including the capital an and d reserve resene or surplus therein and th the e derived shall shan b be e exempt from Federal State mint and local taxation except I taxes s I u uon upon on real astern eata held purchased o or r aJ taken by said bank or association ender nn- nn der the tho provisions of ot section eleven elevon and section thirteen ot of mis Act First mortgages executed to Federal land banks or to joint stock land banks and farm loan bonds bonda issued under the provisions of this Act shall be deemed and held beld to be instrumentalities ties tics of the Government of at the United States and as such they and the income income Income In in- come derived shall be exempt exempt ex ex- empt from Federal State Stale municipal and local taxation Nothing herein shall prevent the shares in any any joint stock land bank from being included in the valuation of the personal property ot of the the own er or holder of or such shares in assessing assessing as as- taxes imposed by authority of oC the State within wh which ch the bank hank hankis is located but such assessment and taxation shall be in manner and subject subject subject sub sub- to the conditions and limitations limitations limitations limita limita- contained in section two fifty-two hundred hundred and nineteen of the Revised Statutes with reference to the shares of national banking associations Nothing herein shall shan be construed to exempt the real property of ot Federal Fed Fod- Federal eral and joint stock land banks and national farm loan associations from either State county or municipal taxes to the same extent accordIng accordIng according accord- accord Ing to Its value as other real property property prop prop- erty is taxed Investment in Farm Loan Bonds Donds Sec 27 That farm loan bonds issued is sued under the tho provisions of this Act b by Federal land banks or joint stockland stock stockland land banks shall shan be a lawful investment investment invest invest- investment ment for all an fiduciary and trust funds and may be accepted as seen seen- i rity for all aU public deposits Any member bank of the Federal Reserve System m may buy and nd sell seU farm farm loan Joan bonds issued under the authority of this Act An Any Federal reserve bank may buy and sell seU farm loan bonds issued under this Act to the same extent and subject to the same limitations placed upon the purchase and sale saleby saleby saleby by said banks of State county district district dis dis- and municipal bonds under subsection subsection subsection sub sub- section b of oC section fourteen of the 1 Federal Reserve Act approved December twenty-third twenty nineteen hundred hundred hundred hun hun- dred and thirteen Examination Se Sec 28 That the Federal Federa Farm Farn Loan Board noard shall shan appoint as many land bank examiners as in its judgment judg judg- I nep ment t may may y be be required t to ma make e care- care Cul full off pI th banks anks and ass associations permitted permitted t to do do business under this Act Said examiners shall be subject to the same requirements responsibilities responsibilities and penalties as are pre applicable applicable ble to national bank examiners under under un un- der the national bank Act the Federal Federal Federal Fed Fed- eral Reserve Act and other provisions provisions provisions provis provis- ions of law Whenever directed bythe by bythe bythe the Farm Loan Board said I examiners shall shan examine the condition condition condition condi condi- tion of any national farm loan association association association asso asso- and report the same to the Farm Loan Commissioner They shall shan examine and report repol t the condition condition condition condi condi- tion of every Federal land bank and joint stock land bank bank at least twice each year I ISaid Said examiners shall shan receive salaries sala sala- I ries to be fixed ed by the Federal Farm Loan Board nis Dissolution lution and Appointment of Receivers Sec 29 That upon receiving satisfactory satisfactory sat sat- evidence that any national farm loan association has failed Caned to meet its outstanding obligations of any description the Federal Farm Loan Board may forthwith declare such association insolvent and appoint appoint appoint ap ap- point a receiver and require re of him such bond and security as it deems deems deems' I Ip p proper oper Provided that no national farm loan association shall shaU be declared de de- I de-I dared insolvent by said eald board until I the tho total amount of defaults of current current cur cur- rent interest and amortization installments in on loans Indorsed by national national na na- ti nal farm loan associations shall shaU amount to at least In the F Federal Federal deral land bank district unless such association shall have been in default for a period of two years Such receiver under the direction of the Federal Farm Loan Board shall take possession of oC the books records anti and assets of ot every description of such association collect all aU debts dues and claims belonging to it and with the approval of the Federal I i I Farm Loan Board or upon the order j of a a. court of ot record of oC competent jurisdiction may sell seU or compound all bad or doubtful debts and on alike alike a a- alike like approval or order may sell all an anthe the real and personal property of or such association on such uch terms as the Federal Farm Loan Board or said court shall shaH direct Such receiver shall shaU pay over all ail money so collected to the Treasurer of the United States subject to the order of or the flue Federal Farm Loan Board and also make report to said board of at all aU his acts and proceedings The Secretary of ot the Treasury shall shan have authority to deposit at interest Interest any money so resolved received Upon default of any obligation Federal land Jand banks banka and joint stock stockland stockland land banks ma may be declared Insolvent insolvent Insolvent vent and placed in the tho hands of a re ro receiver ro- ro by the Federal Farm Loan Board and proceedings shall shan thereupon thereupon there thero- upon be bo had In accordance with the tho provisions of or this section regarding national farm loan associations If U any national farm loan association tion shall bo be declared insolvent and anda a receiver shall be appointed there there- for by the Federal Farm Loan Board the stock held b by it in the tho Io Federal I land bank of oC its district shall shan be he I canceled without impairment o ot of its I liability and all aU payments on such stock with accrued dividends if iC an any since the date of oC the last dividend shall be first applied to all an debts of or orthe the insolvent farm loan association to the Federal land bank and the balance if IC any shall shan be paid to the receiver of said farm loan association association association tion Provided that in estimating said debts contingent liabilities in incurred stirred by hy national farm loan lonn associations associations s ocl- ocl under the provisions of or this I Act on account of default of oC I pal or interest of or Indorsed mortgages I Ishall shall bo be estimated and included KI as asa a debt and said contingent liabilities ties tics shall shan be determined by agreement agreement agreement agree agree- ment between the Hie receiver and the tho Federal land bank of oC the district subject to the approval of oC the Io Federal Fed Fed- ed oral eral Farm Loan Board and J if said receiver and said land Jand bank can not nOl agree then by the tho decision of at the Far Farm Loan Commissioner and ami the amount thus ascertained shall shan be he deducted deducted deducted de de- ducted in ac accordance dance with the provisions provisions provisions provis provis- ions of or this sections section from the amount otherwise due said national farm loan association for for said canceled stock Whenever the tho capital stock of a Federal land Jand bank shall shaH be he reduced reduced reduced res re- re the board board s of directors shall shaH cause to be executed a certificate to the Federal Farm Loan ronn Board Doard showing showing showing show show- ing such reduction of capital stock and if It said reduction shall be due to the Insolvency of a national farm loan association the amount repaid to such association No lo national farm I loan an association I Federal land bank or joint stock land bank shall go into voluntary liquidation liquidation dation without the written consent of the Federal Farm Loan Board Doard but hut national farm loan associations may consolidate under rules and regulations regulations regula regula- regulation tion- tion promulgated by the Federal Farm Loan Board State L Legislation Sec 30 That it shall shan be the duty of the Farm Loan Commissioner to tomake tomake make examination of the laws of e every ery State o ot of the tho United States and nd y t r. to rn eral Farm Loan Board Doard as ra i 1 may be whether in his judgment the laws of each State relating to the conveying and recording of land titles and the foreclosure foreclosure fore foro closure of mortgages or other instruments Instruments Instruments ments securing loans as well as providing providing providing pro pro- viding homestead and other exemptions exemptions exemptions as respects first mortgages are I such as to assure the holder bolder thereof adequate safeguards against loss Inthe inthe in inthe the event of oC default on loans secured secured secured ed by any such mortgages Pending the making of oC such examination examination examination ex ex- In the case of any State the Federal Farm Loan Board may declare first mortgages on farm lands I i I situated within such State ineligible as the basis for an Issue of farm Carm loan bonds and if said examination shall show that the laws lAw of any such Slate State afford protection to the holder of first mortgages of the kinds provided in this Act s said ld Federal F Farm arm Loan Board may declare declare de de- clare said first mortgages on land situated in such State ineligible during durIng during dur dur- ing the continuance of the laws in question In making his examination of the laws Jaws of the several States and forming his conclusions thereon said Farm Loan Commissioner may call upon the office of oC the Attorney General Genera General Gen Gen- era eral of the United States for any needed legal advice or assistance or ormay ormay ormay may employ special counsel in any State where ho he considers such action necessary At the request of the tho Executive of oC any State the Federal Farm Loan Loal Board shall prepare a a. a statement setting setting set set- ting forth In what respects the requirements requIrements requirements re re- of said board can not be complied with under the existing laws of such State Penalties Sec 31 31 That any applicant for fora a loan under this Act who shallI |