American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1915-02-25

in this Act.
Section s. Each issue of bonds shall be given
a serial number and said bonds shall be issued
in denominations of Five Hundred Dollars each;
but each bond may be divided into fractional units
of Fifty Dollars or multiples thereof, with proper
interest coupons attached. Said bonds, except as
provided in the next preceding section, shall bear
interest at the rate of five per cent per- annum,
payable semi-annually, and the bonds of each SER
les shall be so arranged that one or more of them
shall fall due at each interest paying date; the
number of bonds falling due on each interest pay
ing date being determined by the amount avail
able for paying the same on each date, according
to the amortization plan of fixed payments being
made on such series of bonds. The Commissioner
may require the County Treasurer in each county
to collect all payments due from borrowers in
such county, and such collections shall be made
in the same manner that county taxes are collect
ed, and in case of default the same penalties shall
be collected as are collected in case of default i'm
the payment of taxes.
Section 8: Each bond certificate, or fractional
issue thereof, shall have printed upon its face the
following words: First Mortgage Farm Loan
Savings Bond" and each certificate shall have
printed upon it a statement to the effect that the
principal and interest shall be paid at maturity
by the Commissioner of Farm Loans of the State
of Montana, out of funds provided by this Act for
said purpose. Each bond certificate shall have
proper interest coupons attached and may also
have printed upon its face any other matter deem
ed essential by the Commissioner of Farm Loans.
Section 10. The mortgage on each piece of
property accepted as security for any issue of
bonds shall be recorded in the county wherein the
property is situated, and such mortgage shall be
recorded free of charge by the County Clerk and
Recorder of each county.
Section II. Mortgages given to the Commits
sioner of Farm Loans shall not be assessed for
purposes of taxation, but nothing in this Act shall
be construed as eXempting from taxation the bonds
issued under this Act and owned by individuals
or corporations within the state of Montana.
Section IL. Each mortgage given to secure an
issue of bonds, except as provided in Section 6,
shall provide for semi-annual payments of four
per cent of the total amount of the mortgage, and
the funds derived from such payments shall be
applied as follows: One-eighth of the amount paid
shall be put in a fund to pay administrative costs,
including salaries, advertising and all other ex-
penses. The balance of the semi-annual pay
ments shall be used to pay the principal and inter-
est on said bonds. and the bonds shall be arranged
to fall due SO as to absorb as nearly as possible,
the balance on hand at each interest paying date.
oSSNOh 1' fhS may III Io Vic
erection, reduce the payments to the administra-
tive fund. but the payments amounting to seven
per cent per annum for the payment of principal
and interest of any series of bonds, shall never be
reduced or diminished until all of said series of
bonds have been paid.
Section IA. When the Commissioner is ready to
receive subscriptions for bonds, he shall publish a
notice in each county of the state, and in cities OF
other states, giving the essential facts and desig-
mating the persons who will receive subscriptions,
and when subscriptions amounting in the aggre-
gate to One Hundred Thousand Dollars or more
have been received and approved, the Commits
sioner shall issue the bonds and shall pay the
proper amounts TO the respective persons furn-
ishing the security for said bonds. When the
money is to be used to pay a prior mortgage, it
shall be paid to the MORTGAGE upon the release
of the prior mortgage.
Section Is. The Commissioner may, in his dis
erection. accept subscriptions for bonds upon a pay
ment of ten per cent of the amount of each sub
%scription, the balance TO be paid when bonds are
delivered; and if the subscriber fail to accept the
bonds and pay for the same, the payment of ten
per cent shall be forfeited and shall go to the ad-
ministrative fund.
Section 16. All bond certificates and interest
coupons that have been paid shall be cancelled
anu llleu Dy the COMMISSIONER III MS office; and
when all of any series of bonds have been paid,
the Commissioner shall file a satisfaction of each
mortgage given to secure such bonds.
Section II. The Commissioner of Farm Loans
shall keep a complete record in his office, which
shall show at all times the status of each bond is
sue, and shall show any balance that may be on
hand to the credit of each issue.
Section IS. The Commissioner may invest the
funds on hand belonging to any issue of bonds, in
bonds Of another issue, selecting for such invest
ment bonds that fall due prior to the date or dates
on which the money invested will be required to
meet maturing bonds.
Section 10. The satte 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.
Section 20. Funds in the hands Of the Commits
sioner shall be deposited in the same manner as
State funds, and interest received on balances
shall be placed to the credit OF the fund to pay