New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1905-05-24

Duy1nS SUCH mortgages anu OF issuing
and negotiating its debentures thereon;
such corporation to have the power of
executing all contracts, membranes,
transfers, releases and other instruments
necessary to the transaction OF such busi-
ness.
Sec. q Such corporation shall have a
paid up capital of at least one hundred
thousand dollars 100000. and the word
ate name.
Sec. g. Before the execution of the GER
tificate of incorporation OF any such cor
! poration, its proposed name shall be sub
mitted to the public examiner, who shall
compare it with those of corporations
operating in this state, and II 1t is likely
to be mistaken for any, OF them, or to
confuse the public as to the character
of it's business, or is otherwise objec-
tionable, additional names shall be sub
rnitted until a satisfactory one is selected,
| Whereupon he shall issue his certificate
| of approval thereof.
! Sec. 4. Within ninety days after the
| adoption of it's bylaws, or of any amend
ment thereof, certified copy OF the same
Sec. g. The mortgages taken by such
| corporation in each instance must be a
first lien upon the land described therein,
| the major portion of which land shall be
| tillable, the whole thereof In actual use
| for farming purposes; and worth at least
twice the amount of She mortgage taken
thereon.
Sec. g. Such corporation may issue and
negotiate it's debentures in the following
| manner:
/. The debentures may be issued in
series of not less than $4,000 each, the
respective series to be identified by a
| common serial letter, and the debentures
of given series to be numbered consecu-
lively. Z
| of any given series Of debentures, there
| shall be set apart in the manner pro-
vided by this act, mortgages aggregating
| in amount at least ten per cent more
! than the total amount OF such deben-
| lures.
g. Such corporation shall file for rec
| ord in the office of the register of deeds
| in each county in which the mortgages
| securing any given series Of debentures
| are recorded an instrument Of transfer,
which shall contain a description of each
of such mortgages in such county, and
shall recite that such mortgages are held
by such corporation as security for a GER
tain series of its debentures, giving the
date, amount, serial letter and number
of each said debentures: when SO record
ed such instrument shall have the effect
to transfer and assign every such mort
gage to such corporation as trustee, to be
thereafter held by it for the use and
benefit of the holder or holders Of such
debentureS.
f. Such corporation shall file with the
public examiner before any series Of de-
bentures are negotiated, an instrument
| giving the description of such series,
showing the date, serial letter, number,
amount and terms of each debenture, a
Sc
cure the same, the appraised value of
| each tract Of land described therein and
the date and place of record of the in
strument of transfer required by sub
division 8.
A record of such instrument shall be
| made by the public examiner in a book
to be kept for that purpose; at the time
such record is made the public exam
liner shall certify on each of such de-
bentures that the provisions Of this Sec
ton have been fully complied with
Sec. Z. All debentures may be made for
such length Of time as the corporation
| may fix, but they shall be subject to
call and payment as the mortgages Sc
curing the same are paid, upon the con-
ditions following:
In case of the payment Of mortgage
securing any debentures before their ma
turity, the money so received may be
| reinvested in the same manner as pro-
mortgages so received shall take the
place of the mortgage SO paid; or, mort
cages aggregating a like amount or more,
belonging to said company which are not
otherwise pledged and not belonging to
its reserve fund, may be substituted for
the mortgage so paid; and in either case
the same instrument shall be executed
and filed and the same record shall be
and in the office Of the public examiner
as provided in section VI; and until such
reinvestment is made the money. received
in payment of any mortgage held as Sc
curity for any debentures shall not be
mingled with the fund otherwise belong
ing to such corporation, but shall at all
times be kept separate and distinct, and
If such funds are not reinvested within
six months after the receipt thereof, then
and thereupon debentures to the amount
of such payment shall be called in and
paid upon such terms as may be provided
therein.
Sec. g. All payments Of principal on
mortgages securing any series of deben-
lures made during any quarter year shall
be reported to the public examiner on
or before the tenth day Of the follow
ing quarter unless oftener required by
the public examiner, which report shall
show what Refreshments have been made
thereof, and in like manner, report shall
be made Of the payment and discharge
Of all debentures during such quarter. If
the aggregate of the mortgages securing
any series of debentures shall at any
time exceed more than ten per cent Of
the total Of such .debentures, such cor
poration may retain from any payment
on the principal Of any such mortgages
the amount of such excess.
Sec. 8. No new debentures shall be ne
got1ated while any default exists in any
of the mortgages held as security for any
previous issue Of debentures, without first
complying with all requirements Of this
act concerning mortgages In default, nor
while default exists In the payment of
any portion Of the interest or principal
due on any debenture previously issued.
Sec. 10. If there shall at any time be
an impairment of the capital of any such
corporation no debentureS shall be there
after issued until the stockholders have
paid into the treasury of such corpora
ton the amount necessary to restore such
capital, and a certificate showing that
the same has been done shall be given
to such corporation by the public exam
liner.
Sec. II. The books records and papers
of such corporation pertaining to any
series Of debentures shall be open for the
inspection Of the holder Of any debenture
of such series, and such corporation shall
at the request of such holder furnish a
of all mortgages held as security for such
debentures.
Sec. H. Such corporation shall not at
any time incur any Indebtedness, except
upon its debentures, and for the usual
and necessary expenses incident to the
transaction of its business.
Sec. 18. No officer, director, stockhold-
err, agent or servant of such corporation
shall directly or Indirectly in any manner
use any of the funds Of the corporation,
except in it's regular business transac-
tons; neither shall any loan be made to
any such officer, director, stakeholder,
agent, or servant, nor shall they or either
Of them become surety in any manner
for any debt due or payable to such cor
poration.
Sec. IA. The debentures of such cor
poration shall be lawful investments for
any trust company, life or fire insurance
company organized under the laws of
this state and for trust funds in charge
OF any trustee unless expressly restricted
by the person or persons creating such
| trust, provided, that not more than TWEEN