OCR Text |
Show NATIONAL FARM LOAN ASSOCIATIONS ASSOCI-ATIONS ORGANIZATION. Section 7. Ten farm owners desiring desir-ing loans aggregating $20,000 or more may form such nn association. Sec. 7. Its affairs are administered by tlve directors, Including president, vice president and a loan committee of three serving without compensation, and by u secretary treasurer with salary sal-ary fixed by the farm loan board and puld by the association. CAPITAL STOCK. Sec. 8. Shares, $5 each; (0) carry-Jng carry-Jng double liability ; (8) may be owned only by borrowers who aro required to subscribe 5 per ceut of their loan In the cnpltal stock of the association which In turn subscribes an equal amount of stock In the federal land bank. Sec. 8. Shares aro pnld for In cash or (0) tho amount mny be ndded to the fnco of the loan and retired In amortization amorti-zation payments at pur. In such case the face of the loon shall not exceed tho CO per cent and 20 per cent limitation. lim-itation. Sec. 7. Assessment on shares mny bo levied for operating expenses If funds nre not otherwise avallnblc. POWERS. Sec. 10. To uppralse hind for mortgage mort-gage through Its loan committee of three. Sec. 11. To Indorso nnd become liable for the mortgages of its shareholders. share-holders. Sec. 11. To rccelvo nnd deliver the proceeds of lonns to borrowers. Sec. 11. To acquire and dlsposo of property nccessnry for the convenient transaction of Its business. Sec. 11. To Issuo certificates of deposit de-posit for not longer than one year and to pay 4 per cent Interest thereon, convertible into farm loan bonds at tho federal lund bank of Its district. Sec. 7, To receive and transmit to the federal land bank pnyments of interest in-terest nnd principal and amortization payments. LOANS. Sec. 12. Loans shall be secured by first mortgages on land within Its loud bnnk district. Section 12. To run from ft to 40 years with amortization and with additional ad-ditional optional prepayments after five yenrs. Sec. 12. Interest on loans shall not exceed 0 per cent per annum on the unpaid principal. Sec. 12. Uorrowers shall pay 8 per cent simple Interest on defuultcd payments. Sec. 12. Loans may be made for tho following purposes and for no other under penalty: (n) To purchase Innd for ngrlcul-turnl ngrlcul-turnl purposes. (b) To purchnse equipment, fertilizer fertil-izer nnd live stock for the operation of the mortgaged farm. (c) To provide buildings and for the Improvement of farm lands. (d) To pay debts existing at tlmo of organization of the first rational farm loan association within the county. Sec. 12. Maximum loan $10,000; minimum lonn $100. Sec. 12. No lonn shnll exceed 50 per cent of the value of the Innd mortgaged nnd 20 per cent of the permanent Insured In-sured Improvements. Sec. 12. No loans shall be made to any person who Is not at the time or shortly to become engaged In the cultivation culti-vation of tho farm mortgaged. Note. All amplications for loans originate with tho nntlonal farm loun associations or agents and all loans aro made und closed by the federal Innd banks. This docs not upply to Joint stock land bunks. TAXATION. Sec. 20. Same as applies to federal Innd banks. SPECIAL PROVISIONS. Sec. 0. Associations mny retnln ns commission ouo-elghth of 1 per cent semiannually from Interest puyments on the unpaid prlnclpnl of lonns. Sec. 0. Associations may borrow from federal land banks at 0 per cent annual interest up to one-fourth of Its total stockholdings In said bunk. Sec. 24. Reserves nnd dividends: No limit is plnced on dividend distributions distri-butions nfter the reserve account, built up from net earnings equals 20 per cent of the cnpltal stock and after 2 per cent of tho net earnings annually thereafter are added to the reserve account. ac-count. Sec. 25. Defaults must be mnde good within 30 days after notice. Sec. 20. Prolslon Is made for dissolution dis-solution and the appointment of a receiver. |