OCR Text |
Show H FEDERAL FARM LOAN BANKS H ORGANIZATION. H Section 4. One In each land bank M district. Iiranches permitted within H Its district. Olllccrs: President, vice H l president, secretary and treasurer; dl- H rectors; six representatives of furm H i loan associations and three represent- B ting the public Interest. Attorneys, ns- M islstnnts, experts and other employees. H -All salaries tixed by farm loan board M and paid by bank. Subject to scmiun- 1 nual examinations by land bank exam- H CAPITAL STOCK. H l -Sec. 5.-r$750,000. May bo owned by M 'Individuals, firms, corporations and the m United States and statu governments. 1,, Sec. 5. Shares, $5 each. M I Sec. 0. All stock remaining uusuh- H i scribed SO days after subscription M , (books arc opened shall be subscribed H j 'by the United States and thereafter ! .only the United States government and i borrowers may ncqulro shares of stock. Sec. 5. United States government H I not to participate In dividends. All H " otliiir stockholders share dividends H ' equally. H Sec. 5. The original cnpltal stock H 'Shall be gradually retired after the H .stock held by farm loan associations H -shall amount to $750,000. M ( Sec. 5. Not less than 5 per cent H of capital shall be Invested In Uidted H States government bonds. B POWERS. H n Sec. 13. To buy llrst farm mort- Hu .gages within Its district and to Issue H I .and sell farm loan bonds. H I Sec. 13. To receive from farm loan H I mssoclntlons Interest and amortization HI If puyments on mortgages and farm loan H bouds. JK ft Sec. 13. To acquire and dispose of H 1 i real and personal property necessary WM I 'for the convenient transaction of liusl- Hi ness; and Innd taken In satisfaction of !3 1 -debts or purchased under Judgments, jj&jK -decrees or mortgages hold by It. Shall iH Jiot hold title exceeding live years. dH i 8ec. 13. To accept deposits of so- E ? curltles or current funds from member jB ' associations but pay no Interest there- '91 : on. Sec. 13. To borrow money on sc- V curity and pay Interest thereon. H Sec. 13. To buy and sell United 3 States bonds. H I Sec. 13. To appraise lands for bond lesue and to charge applicants and bor- rowers the cost of land appraisal, ex- B J auilnlug titles, recording and other le- M 1 al fees, said fees to be paid Id cesh I . or bo made pnrt of loan and puld In amortization payments. Sec. 14. To accept mortgages only from farm loan associations and approved ap-proved agents. Sec. 14. To accept deposits of current cur-rent funds only from Its stockholders. Sec. 0. To become financial agents of United States government nnd depository de-pository of public money. Public deposits de-posits cannot be Invested In mortgages mort-gages or farm loan bonds. Sec. 13. To deposit its securities nnd current funds subject to check with any member bnnk of tho federal reservo system and to receive Interest thereon. BONDS. Sec. 20. Issued In series of $1)0,000 or more, In denominations of $25, $50, $100, $500 and $1,000. Sec. 20. May bear n maximum rate of fi per cent Interest per annum. Sec. 10. Mortgages and United States government bonds equal In uniount to tho farm loan bonds Issued are retained ns collateral security by the land bunk registrar. Sec. 14. Tho outstanding farm loan bonds shall not exceed 20 times the capital and surplus. Sec. 21. Shall bo guaranteed by bank of Issue and all other federal land banks. Sec. 17. No Issuo Is authorized without the approval of tho farm loan board. Sec. 22. Substitution of mortgages and United States government bonds held ns collateral to farm loan bonds Is permitted. TAXATION. Sec. 20. Tho capital stock, surplus, sur-plus, mortgages and farm loan bonds and nil Income derived therefrom are exempt from federal, state, municipal and local taxation. Sec. 20. Heal property tnken nnd held under the provisions of sections 11 nnd 13 is not tax exempt. AGENTS. Sec. 15. Incorporated banks, trust companies, mortgage companies or chartered savings institutions mny act uh agents for federal land bonks If no farm loan association has been formed In n given lociillty after ono year. Sec. IB. Uorrowers securing louus through agents nre required to subscribe sub-scribe 5 per cent of tho loan to the capital of tho federal land bank. Sec. 15. Agents aro entitled to a commission of onc-hnlf of 1 per cent per annum on unpaid principal of each loan they negotiate and the bank shall pay agent for actual expenses for appraising ap-praising land, cxnnilnlng titles, executing exe-cuting nnd recording the mortgage papers pa-pers which shall be added to tho face of the loan. Sec. 15. Agents shall Indorse nnd becomo liable for the payment of the loans they negotiate and the aggregate aggre-gate unpaid principal of such loans shall not exceed fen times tho agent's capital and surplus. Sec. 15. Agents nre required to mnke good nny default within 30 days after notice. Sec. 15. All collections made shnll bo remitted without charge. SPECifL PROVISIONS. Sec. 22. Amortization and other payments constitute a trust fund to be Invested as follows : (a) To pny off maturing farm loan bond Issues. (b) To purchase farm loan bonds. (e) To lend on first farm mortgages within tho district. (d) To buy United Stntes government govern-ment bonds. Sec. 23. lleservo nnd dividends: No limit Is plnced on dividend distributions nfter a reserve account has been built up from earnings equal to 20 per cent of the capital stock and after 5 per cent of tho net earnings annually thereafter are added to the reserve ue-counrt ue-counrt Sec. 23. Reserve funds to be Invested Invest-ed as prescribed by the federal farm loan hoard. Sec. 27. Furm lonn bonds are lawful Investments for llduclary nnd trust funds and security for ail public deposits. de-posits. Sec. 27. Federal reserve bank may buy and sell farm loan bonds. Sec. 21), Pnnlslon is made for dissolution dis-solution and tho appointment of a receiver. re-ceiver. Sec. 14. No commission or charge not specifically authorized In this act shall be demanded or received. |