The Idaho Springs siftings-news., 1916-08-11

/ or be made part Of loan and paid In
amortization payments.
Sec. ITO accept mortgages only
from farm loan associations and ap-
proved agents.
Sec. 14.-To accept deposits Of cur
rent funds only from its stockholders.
Sec. ITO become financial agents
Of United States government and de-
pository of public money. Public de-
posts cannot be invested in mort
cages or farm loan bonds.
Sec ito deposit its securities
and current funds subject to check
with any member bank Of the federal
reserve system and to receive interest
thereon.
Sec. 2O.-Issued In series Of Sc, 900
or more. in denominations Of $25. $50.
500. $500 and $1,000.
Sec. 2O.-May bear . maximum rate
Of per cent interest per annum.
Sec. 19.-Mortgages and United
States government bonds equal In
amount to the farm loan bonds issued
are retained a. collateral security by
the land bank registrar.
Sec. 1.-THE outstanding farm loan
bonds shall not exceed 20 times the
capital and surplus.
Sec. 21.-Shall be guaranteed BY
bank Of issue and all other federal land
banks.
Sec. 17.-No issue IL authorized
without the approval Of the farm loan
board.
Sec. 22.-Substitution Of mortgages
and United States government bonds
held as collateral to farm loan bonds IL
permitted.
TAXATION.
Sec. 26.-The capital stock, sur
plus. mortgages and farm loan bonds
and all income derived therefrom are
exempt from federal. state, municipal
and local taxation.
Sec. 26.-Real property taken and
held under the provisions Of sections
II and Is Is not tax exempt
AGENTS.
Sec. 15.-Incorporated banks, trust
companies. mortgage companies or
chartered savings institutions may act
as agents for federal land banks II NO
farm loan association has been formed
in a given locality after one year.
Sec. 15.-Borrowers securing loans
through agents are required to sub
scribe per cent Of the loan to the
capital Of the federal land bank.
Sec. 15.-Agents are entitled to q
commission Of one-half Of per cent
per annum on unpaid principal Of each
loan they negotiate and the bank shall
pay agent for actual expenses for ap-
praising land. examining titles, exc
cutting and recording the mortgage pa
pers which shall be added to the face
Of the loan.
Sec. 15.-Agents shall indorss and
become liable for the payment Of the
loans they negotiate and the agxre-
gate unpaid principal Of such loans
shall not exceed ten times the agents
capital and surplus.
Sec. 15.-Agents are required to
make good any default within 30 days
after notice.
oSSs xOs0AA CUASCuV08 W8oO U00ll
b RENTED without charge.
sPEciAL PRovIsIoNs.
Sec. characterization and other
payments constitute trust fund to be
invested ~ follows:
(a) To pay OF maturing farm loan
bond issues.
(b) To purchase farm loan bonds.
(c) To lend on frst farm mortxages
within the district.
(d) To buy United States govern
ment bonds.
Sec. 28.-Reserve and dividends: No
limit il placed ON dividend distributions
after reserve account has been built
mp from earnings equal to 20 per cent
Of the capital stock and after 8 Der
cent Of the net earnings annually
thereafter are added to the reserve &C
count.
Sec. 28.-Reserve funds to be invest.
ed a. prescribed BY the federal farm
loan board.
Sec. N.-rarm loan bonds are lawful
investments for nduciary and trust
funds and security for all public de-
posits.
Sec. N.-Federal reserve bank may
buy and sell farm loan honda.
Sec. 20.-Provision IL made for dis
solution and the appointment Of q r.
ceivef.
Sec. 14.-No commission or charre
not specifically authorized In this act
shall be demanded Or received.
NATIONAL FARM LOAN ASSOCl.
ATOMS