Show Rural Credits n Bill I f 1 Continued Continued from last week Capital Capitol Stock of ot National Farm Form Loan Associations Sec See 8 8 That the shares In national nation nation- al farm roan loan associations shall b bof beof be of ot th the par value of at 5 a each Every shareholder shall be entitled to one vote on each share of at stoc stock held by him at all elections of or dire directors directors tors and In deciding all questions a at meetings of at shareholders Provided that tho the maximum number of votes vote which may be cast by any anyone one shareholder shareholder share sharo holder shall shaH bo be twenty No persons but borrowers on farm farmland farmland farmland land mortgages shall be bo members o of shareholders of national farm loa loan associations Any person desiring t to borrow on farm land mortgage through a national farm loan assocIation association asso asso- elation shall make application fo for membership and shall subscribe fo for tor shares of stock In such farm loa loan association to an amount equal to five per of the face of the desired loan said subscription to bo be paid In cash upon the granting of the loan If IC the tho application for membership Is accepted and the loan Is granted the tha applicant shall upon full payment thereof become the owner of one share of capital stock In said loan association association as as- for each of the face of his loan or any major fractional part thereof Said capital stock shall be paid off oil at par and retired upon full of said loan Said capital capital capital capi capi- tal stock shall be held by said association association association asso asso- as collateral security for the payment of at said loan but said borrower borrower borrower bor bor- rower shall be paid any dividends accruing accruing accruing ac ac- and payable on said capital stock while It is outstanding Every national farm loan association association association tion formed under this this' this Act Act shall by Its articles of association provide for tor foran foran toran an Increase of Its cap capital tal stock from time Ume to time for the purpose of securIng securing securing ing additional loans for tor its members and providing for the issue of or shares I to borrowers in accordance with the provisions of this Act Such Increases shall be bo included in n the quarterly quarter re ra ports to the Federal Farm Loan Board s Loan Associations Special Provisions See Sec 9 That any person whose application ap apt for membership Is accepted by a national farm arm loan association lation shall be entitled to borrow money on farm land mortgage upon filing his I application in accordance with section section section sec sec- tion eight and otherwise complying with the terms of at this Act whenever the Federal land bank of the district has funds available for that purpose unless said land bank or the Federal Farm Loan Board Doard shall in its discretion dis dis- otherwise determine Any person desiring to secure a aloan aloan loan Joan through a n national farm loan association under the provisions of this Act may at his option borrow from the Federal land bank through such luch association the sum necessary to pay for shares of stock subscribed for by him In the national farm tarm loan association such sum to Le to made a a. apart apart part of at the face of the loan and paid o off art f In amortization payments Provided Provided Pro Pro- vided Tided however that suc such addition I to the loan shall not be bo permitted to increase said loan above the limitation limita tion Imposed In subsection fifth of section section sec sea tion twelve Subject to rules and regulations prescribed by the Federal Farm Loan Board any national farm tarm loan association as- as association association as as- shall be entitled to retain as a commission from each interest payment on onny any ny loan Indorsed by itan It Itan Itan an amount to be be- determined determined by said board hoard not to exceed one-eighth one of one per ver semiannually upon the unpaid principal of f said loan any amounts so retained as commissions to be deducted from dividends payable pay able ablo to arm loan association by bythe bythe bythe the Federal land bank and to make application to the land bank of ot the district for loans not exceeding In the aggregate one fourth of Its total stock stockholdings stockholdings stockholdings holdings in s 's said ld land bank Tho Federal Federal Federal Fed Fed- eral land banks shall have ha power to tomake tomake make such euch loans to associations applyIng applying applying ap ap- plying and to charge Interest interest interest inter Inter- est at a rate not exceeding six per per per annum Shareholders of every national farm loan association shall be held individually responsible equally and ratably and not one for another for 4 j al l 1 contracts debts and engagements sot of such auch association to the tho extent of ol the amount of or stock owned by them at the tho tho par value thereof In addition to the amount paid In and represented represent- represent j ed by their shares After a charter has been granted to a national farm loan association any natural person who is the owner owner owner own own- er or about to become tho the owner of I I farm land qualified under section twelve of at this Act as the basis of a 1 mortgage loan and who desires to borrow on a mortgage of at such farm farmland Jand land may become a member of or the association by a two-thirds two vote oto ot of the directors upon subscribing for one I I baTe bare o of the he capital stock of such BUCU I association for tor each of the face tace of his proposed loan or a any iy major fractional part thereof He Be shall at atthe atthe atthe the same time file filo with the secre secre- treasurer tary-treasurer his application for tor a mortgage loan giving the particulars required by section twelve of or this Act Appraisal Sec See 10 That whenever an application application cation for a mortgage loan Is made to a national farm tarm loan it shall be first referred to the loan committee provided for In section seven of or this Act Said loan committee commit commit- I tee shall examine the land which Is offered as security for the desired loan and shall make a detailed writ written written ten report signed by all three members members mem mem- bo bers rs giving the appraisal of said or-said said land landas I as determined by them and such other information as may be required I ed by rules and regulations to bo be I prescribed by the F Federal eral Farm 11 arm Loan Board Doard No loan shall shan be approved by the directors unless said loan committee committee committee com com- agrees upon a favorable report Tho The written report of or said loan committee shall be submitted to the Federal land bank together with the application for the loan n and the directors di dt rectors of said land bank shall examine examine ex ex- amine said written report when they I ex-I pass upon the loan application which i I It t accompanies but they shall shan not be bound by said appraisal I I Before any mortgage any mortgage loan is made by any Federal land bank or joint stock lock land bank It shall refer the application application application ap ap- and written report of th the theoan loan oan committee ee to one or more of the theand theland land and bank appraisers appointed under the he authority of section three of this Act and such appraiser or appraisers shall shaH investigate and make a written report upon the land offered as security rl Ity rity for said loan No such loan shall be made by said land bank unless said aid written report Is favorable Forms for appraisal reports for farm arm loan associations and land banks I Ishall shall be prescribed by the Federal Farm Loan Board Doard I I I ILand shall make mak Land bank appraisers such uch examinations s and appraisals under under uner un- un I I der er this section but borrowers may act ct as members of a loan commit commit- I tee ee in an any case where they are not personally Interested In the loan under uner un un- der er consideration When any member member memer mem- mem ber er of a aloan loan committee or of ot a board of f directors tors is Interested directly or Indirectly In a loan a majority or of the ho board of dire directors tors of any national national na- na onal farm loan association shall appoint appoint ap ap- ap- ap point foint point a substitute to act in his place In n passing upon such loan Powers of ot National Farm Lo Loan n Associations Sec Sect 11 That every national farm farman loan an association shall have power First To and thereby become become be- be come ome liable for the payment of or mortgages mortgages mort- mort gages ages taken from its shareholders b bythe by the he Federal land bank of at Its district Second To receive from the Federal Federal Fedral Fed- Fed eral ral land bank of its district funds advanced by said land bank and to deliver eliver said funds to its Us shareholders on n receipt of or first mortgages qualified quailed quail quail- fled fied ed under section twelve of at this Act Third To acquire and dispose of such uch property real or personal as asma ma may be necessary or convenient for the he transaction of ot its business I i Fourth To Issue certificates I against deposits of current funds I bearing earing interest for tor not longer than one ne year at not to exceed four per perl per annum after six days II from rom date convertible Into farm loan I bonds when presented at the Federal land and bank of the district In the amount mount of at 26 25 or any multiple there there- of O fi Such Ch deposits when received be forthwith transmitted t to said land and bank and be invested by It inthe In the tie purchase of farm loan bonds Is ia- I I sued b by a Federal land bank or in first mortgages as defined by this Act To be continued next week |