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Show COVERNOR SIGNS LAND BANK BILL (Too late for last week) Under the terms of Senate bill No. 54 by D. O. Rideout, which was signed thi3 week by Gov. William Spry, any fifteen or more adult freeholders of the state may associate and t slablish a hind mortgage bank, but must have a capital stock of not less than $10,000. The law provides that the rata of interest at which loans are made by the bank shall not under any conditions exceed 8 per cent per annum. The purpose of the law is to furnish rural communities with money on long time loans at low rales of interest. All applications for loans must be made in writing, must slate the purpose for which the loan is desired, de-sired, and no loan will be made unless the entire committee of loans of the bank is satisfied that it promises to benefit the borrower. The applicant for a loan, however, may appeal from the decision of the loan committee. The mortgages given for loans on farms and dwellings must be recorded and filed with the state treasurer, and bonds for the amount represented by such mortgages may be issued by the bank. The earnings of the bank shall be set aside as a reserve fund to an a-mount a-mount equal to 2 per cent of the capital stock outstanding, and the balance of the earnings may be paid as a co-operative profit sharing dividend. Senate bill No. 69, also by Mr. Ride-out, Ride-out, is also more or less of rural interest in-terest and provides for the establishment establish-ment of co-operative banks which may loan money on personal property. It was signed Tuesday by Governor Spry. The law provides that any seven or more persons may form such an association associa-tion to promote thrift and savirg and to render aid io members through loans secured on the associated liability. Shares in the co-operative banks are fixed at $5 each and no member may hold more than 500 shares, and members mem-bers are liable for an amount equal to their subscriptions. Business and administrative methods of the co-operative loan banks must be reported regularly to the state bank examiner. Both the co-operative loan banks and the land mortgage banks are under the jurisdiction of the state bank examiner. Similar banks have been conducted successfully in Germany and other foreign countries for years. |