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Show the capital stock of the association which in turn subscribes an equal amount of stock in the federal laud bank. Sec. 8. Shares are paid for in cash or (9) the amount may he added to the face of the loan and retired in amortization amorti-zation payments at par. In such case the face of the loan shall not exceed the 50 per cent and 20 per cent limitation. lim-itation. Sec. 7. Assessment on shares may be levied for operating expenses if funds are not otherwise available. POWERS. Sec. 10. To appraise land for mortgage mort-gage through Its loan committee of th ree. Sec. 11. To Indorse and become liable for the mortgages of Its shareholders. share-holders. Sec. 11. To receive and deliver the proceeds of loans to borrowers. Sec. 11. To acquire and dispose of property necessary for the convenient transaction of Its business. Sec. 11. To issue certificates of deposit de-posit for not longer than one year and to pay 4 per cent interest thereon, convertible in farm loan bonds at the federal land bank of Its district. Sec. 7. To receive and transmit to the federal land bank payments of Interest In-terest and principal and amortization pnynien's. LOANS. Sec. 12. Loans shall be secured by first mortgages on land within its land bank district. Section 12. To run from 5 to 40 years with amortization and with additional ad-ditional optional prepayments after five years. Sec. 12. Interest on loans shall not . exceed 6 Der cent per annum on the unpaid principal. Sec. 12. Borrowers shall pay 8 per cent simple Interest on defaulted payments. Sec. 12. Loans may be made for the following purposes and for no other under penalty : (a) To purchase land for agricultural agricul-tural purposes. (b) To purchase equipment, fertilizer fertil-izer and 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 time of organization of the first national farm loan association within the county. Sec. 12. Maximum loan $10,000; minimum loan $100. Sec. 12. 3S'o loan shall exceed 50 per cent of the value of the land mortgaged and 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 the farm mortgaged. Note. All applications for loans originate with the national farm loan associations or agents and all loans are made and closed by the federal land banks. This does not apply to joint stock land banks. TAXATION. Sec. 26. Same as applies to federal land banks. SPECIAL PROVISIONS. Sec. 9. Associations may retain as commission one-eighth of 1 per cent semiannually from interest payments on the unpaid principal of loans. Sec. 9. Associations may borrow from federal land banks at 6 per cent annual interest up to one-fourth of its total stockholdings in said bank. Sec. 24. Reserves and dividends: No limit is placed on dividend distributions distri-butions after the reserve account, built up from net earnings equals 20 per cent of the capital stock and after 2 per cent of the net earnings annually thereafter are added to the reserve account. ac-count. Sec. 25. Defaults must be made good within 30 days after notice. Sec. 29. Provision is made for dissolution dis-solution and the appointment of a receiver. NATIONAL FARM LOAN ASSOCIATIONS ASSOCI-ATIONS ORGANIZATION. Section 7. Ten farm owners desiring desir-ing loans aggregating $20,000 or more may form such an association. Sec. 7. Its affairs are administered by five directors. Including president, vice president and a loan committee of three serving without compensation, and by a secretary treasurer with salary sal-ary fixed by the farm loan board and paid by the association. CAPITAL STOCK. Sec. 8. Shares. $5 each; (0) carrying carry-ing double liability; (S) may be owned only by borrowers who are required to subscribe 5 per con of their loan in |