The Appeal. [volume] (Saint Paul, Minn. ;) 1889-19??, 1905-04-29
,ages on improved farm lands, and Of
,vy,ino auch rnnrtrares and of issuing

executing ali contracts, membranes,
transfers, releases and other Instruments
necessary to the TRANSACTION OF sucn ous'-
ness.
Sec. 2. Such corporation shall have 2
paid up capital of at least one hundred
thousand dollars C10o,oOO: ana e. the eo woro
Sec : 5. Before the execution OF the Ger
tif1cate of incorporation OF any su In cor cor
mitted to the public examiner. who shall
compare it with those Of corporations
operating in this state. and II 1t is nkely
t eon f9 hs Subtle fHF as to the
of its business, or Is otherwise oo1ec-
tionable, additional names shall oe SUD
mitted until satisfactory one Is selected,
whereupon he shall issue his certlncate
Sec. 4. Within ninety days after the
adoption Of its bylaws, or Of any amend
merlt thereof, certified copy Of the same
shall be hse With ths gupf
corporation In each instance must be a
first lien upon the land described thereln'
the major portion Of which land shall be
for farming purposes; and worth at least
twice the amount Of <he mortgage taken
thereon.
Sec g. Such corporation may issue and
/. The debentureg may be issued in
series Of not less than si9,ooo, s eacn; tne
respective series to be identlted by q
common serial letter, and the debentures
of given series to be numbered consecu-
lively.
2 As security for the total am iSane
shall be set apart, in the manner pro-
vided by this act, mortgages aggregatlng
in amount at least ten per cent more
than the total amount OF SUCH depen-
8. Such corporation shall file for rec
ord in the office Of the register OF deeds
in each county in which the mortgages
are recorded an instrument Of transfer,
which shall contain description OF eac9
Of such mortgages IN such county, ana
by such corporation as security for a GER
tain series Of it's debentures, giving the
date, amount, serial letter and number number
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 a s and
debentures.
T. Such corporation shall file with. the
public examiner, before any series OF de-
bentures are negotiated, an instru u1nta1
showing the date, serial letter, number,
amount and terms Of each debenture, a
description Of each mortgage held to Sc.
the date and place Of record Of the in
strument of transfer required by SUBJ
division 8.
A record of such instrument shall be
made by the public examiner in book
to be kept for that purpose; at the time
such record is made the. public exam
bentures that the provisions Of this Sec
ton have been fully complied WITH
Sec. 7. All debentures may be made Tor
f~ hut S1IhieCf
call and payment as the mortgages Sc
curing the same are paid, upon the con-
ditions following:
In case of the payment OF a mortgage
securing any debentures before their ma
turity, the money 80 received may be
vided in section v, and the mortgage or
mortgages SO received shall take the
cages aggregating a like amount or more,
belonging to said company which are not
otherwise pledged and not belonging to
the orgage ea so pad and in ether
the same instrument shall be executed
and filed and the same record saan pc
made in the olnce Of the register OF deeds
as provided in section VI; and until such
reinvestment is made the money received
in payment of any mortgage held as Sc
mingled with the fund otherwise belong
ing to such corporation, but shall at all
times be kept separate and distinct, and
II such funds are not tban
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
ioor rfo ren1Jfre6
the public examiner, which report shall
show what Refreshments have been made
thereof, and in like manner, report shall
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.
gotiated 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
while default exists In the payment Of
any portion Of the interest or principal
due on any debenture previously issued.
an Pm Impairment Of the S Capital Of any such
corporation no debentures shall be there
after issued, Until the stockholders have
paid into the treasury of such corpora
capital, and d certificate showing that
the same has been done shall be given
to such corporation by tho public exam
liner.
Sec. II. The books, records and papers
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
statement giving complete description
Of all mortgages held as security for such
debentures.
any time incur any Indebtedness, except
upon it's debentures, and for the usual
and necessary expenses incident to the
transaction of its business:
er, agent or servant Of such corporation
shall directly or indirectly in any manner
use any Of the funds Of the corporation.
except in its regular business TRANSACT
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. H. The debentures Of such cor
poration shall be lawful investments for
any trust company, life or fire insurance
company organized I'm under nt the n lays Of
Of any trustee unless expressly restricted
by the person persons creating such
trust, provided, that not more than tWen-
ty per centum Of the capital OF any such
company or, Of any such trust funds may
be so invested.
Sec. IS. Such corporation may sell, and
for that purpose assign, transfer and de-
liver any Of its mortgages not pledged
as security for any Of its debentures, and
not belonging to its reserve fund.
Sec. 16. At the end Of each dividend
period after deducting all necessary ex-
penses, losses, interest and taxes due or
levied, and after setting apart out Of the
net profits sum sufficient to cover any
amount then in default on any Of the
lures, one-ffth Of the remaining net prof