| OCR Text |
Show more persons with a board of directors of five or more. Sec. 16. May operate within the state in which Its principal office Is located lo-cated and within some one contiguous contigu-ous state. Sec. 28. Subject to semiannual examinations ex-aminations by the federal land bank examiner. CAPITAL STOCK. Sec. 16. $250,000 minimum. Sec. 16. Double liability of shareholders. share-holders. Sec. 16. The United States government govern-ment shall own none of the shares of stock. Sec. 16. No farm loan bonds can be issued until the capital stock Is fully paid, although the bank may begin business when one-half of the capital Is subscribed and paid in cash. POWERS. Sec. 16. To lend money on farm mortgage security. Sec. 10. To Issue ind sell farm loan bonds. Sec. 16. To Issue farm loan bonds up to 15 times the amount of Its capital capi-tal and surplus. Sec. 16. Except as otherwise provided pro-vided It has the powers of and Is subject sub-ject to the restrictions Imposed on federal land banks. PRIVILEGES. Sec. 16. May lend more than $10,000 to any one borrower, but not beyond 50 per cent of the value of the land and 20 per cent of the permanent Insured In-sured Improvements. See. 16. Loans are not restricted to the purposes prescribed for national farm loan associations. Sec. 16. Loans may be made to farm owners regardless of whether engaged en-gaged In cultivation of the land mortgaged mort-gaged or not. Sec. 16. Interest on loans shall not exceed more than 1 per cent, the Interest In-terest rate established for its last series of bonds, nor more than 6 per cent in any case. Sec. 16. Commissions or other charges not specifically authorized by this act shall not be demanded or received. re-ceived. BONDS. Sec. 20. Issued In series of $50,000 or more, In denominations of $25, $50, $100, $500 and $1,000. Sec. 20. May bear maximum rate of 5 per cent interest per annum. Sec. 16. Bonds shall be so engraved as to be readily distinguishable from federal land bank b,onds. Sec. 19. Mortgages and United States government bonds equal In amount to the farm loan bonds Issued are retained as collateral security by the land bank registrar. Sec. 17. No Issue Is authorized without with-out the approval of the farm lonn board. Sec. 27. Federal reserve banks are authorized to buy and sell the bonds of Joint stock land banks. Sec. 22. Substitution of mortgages und United States government bonds held as collateral to farm loan bonds is permitted. Sec. 27. Its bonds are lawful investments invest-ments for fiduciary and trust funds and security for all public deposits. TAXATION. Sec. 26. The capital stock, surplus and earnings are subject to the taxing powers of the state. Sec. 26. Its mortgages executed under un-der this act and Its farm loan bonds and all Income derived therefrom are exempt from federal, state and municipal munic-ipal and local taxation. Sec. 26. Real property takeD and held under the provisions of sections 11 and 13 Is not tax exempt. SPECIAL PROVISIONS. Sec. 6. Joint stock land banks are made public depositories and financial agents of the United States govern-; govern-; ment. Sec. 6. Public deposits cannot be Invested In-vested In farm mortgages or In farm loan bonds. Sec. 16. Rates of interest for loans under 6 per cent are not subject to review or alteration by the farm loan board. Sec. 13. Shall receive no deposits except public deposits. Sec. 22. Amortization and other payments constitute a trust fund to be Invested as follows: (u) To pay off Its maturing farm loan bonds. (b) To purchase farm lonn bonds. (c) To lend on first mortgages within with-in Its prescribed field. (d) To purchase United States gov- 1 ernment bonds. ! Sec. 23. Reserve and dividends provided pro-vided for as In the case of federal land banks. 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; (9) carrying carry-ing double liability; (8) may be owned only by borrowers who are required to subscribe 5 per cent of their loan in the capital stock of the association which In turn subscribes an equal amount of stock In the federal land bank. Sec. 8 Shares are paid for In cash or (9) the amount may be 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 three. 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 Into 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 payments. 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 per 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. No 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 he farm mortgaged. Note. Ail applications for loans originate with the national farm lonn 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-slghth of 1 per cent semiannually from Interest payments on the unpaid principal of loans. Sec. 9. Associations may borrow from federal land hanks at 6 per cent annual Interest up to one-fourth oftts 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 te 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. |
