The Glasgow courier. [volume] (Glasgow, Mont.) 1913-current, 1915-04-09

of property shall be pledged to secure
all of the bonds in the particular is
sue.
Default in Payment. In ease of de-
fault by any n Of the Mortgagors,
the property pledged by such mortga-
gor shall be sold for the benefit Of the
Mortgage, and if the sum realized is
less than the amount for which the
property shall have been pledged, with
interest, then each piece of the re-
naming property shall be liable for
its proportionate share of such de-
felt.
Guarantee of Payments. The Com
missioner shall maintain a guarantee
fund from which payments in default
shall be supplied and he shall within
six months proceed to collect the
same from the Mortgagor in default,
and as o o as any default payments
have been collected the same shall
be returned to the guarantee fund.
Form of Bond. Bonds shall be Civ
en- a serial number, and shall be in
denominations of Five Hundred Dol
lars each, and shall bear interest at
the rate of five per cent per annum
payable semi-annually and shall have
proper interest coupons attached, and
the bonds of each series shall be so
arranged that n or more of them
shall be so arranged that one or more
of them shall fall due at each interest
paying date; each bond certificate
shall have printed upon its face "Firsr
Mortgage Farm Loan Savings Bond"
and each certificate shall have printed
upon it a statement to the effect that
the principal and interest will be paid
at maturity by the Commissioner of
Farm Loans of the State of Montana,
out of funds provided under this act
for said purpose, and shall also con-
tain any other matter deemed essen
tial by the Commissioner of Farm
Loans.
Taxation Exemption. Mortgages
given to the Commissioner of Farm
Loans shall not be assessed for the
purpose of taxation but nothing in
this act shall be construed as exempt
ing from taxation. The bonds issued
under this act and owned by indi-
viduals or corporations within the
State of Montana.
Payment of Interest. Each mort
gage given to secure an issue Of bonds
shall provide for semi-annual pay
ment of four per cent of the total
amount of the mortgage. and the
funds derived from such payment
shall be applied as follows: One
eighth of the amount paid shall be
placed in a fund to pay administrative
costs, the balance shall be used to
pay the principal and interest on said
bonds and the bonds shall be arranged
to fall due so as to absorb as nearly
as possible the balance on hand on
each interest paying date. The Com
missioner may reduce the payments
to the administrative fund but the
payments amounting to seven per cent
per mum for the payment Of prin-
cipal and interest of any series of
bonds, shall never be reduced or d.
minished until all of said series of
bonds have been paid.
Examination of Accounts. The State
Examiner shall audit the accounts and
books of the Commissioner of Farm
Loans semi-annually and shall file
his report on such audit with the
State Board of Examiners.
Redemption of Loan. Whenever any
mortgagor wishes to pay off his loan
in full, he shall be permitted to do so
if the Commissioner has application
on file for approved loans of equal
amount and the property of the ap-
plicant shall be substituted as secur-
ity for the payment of bonds, and the
mortgage against the property of the
original mortgagor shall be discharge
aH