The Meridian times. (Meridian, Idaho) 1909-1938, 1916-08-18

ueDIS UT purchased uNucT Judgments,
DEGREES or mortgages held by 1t. Shall
not hold title exceeding Ave years.
Sec. 1B.-To accept deposits of Sc
curities or current funds from member
associations but pay no interest there
on
Sec. 13.-To borrow money on Sc
curity and pay interest thereon.
Sec. 13.-To buy and sell United
States bonds.
Sec. 13.-To appraise lands for bond
issue and to charge applicants and Dor
rowers the cost of land appraisal, ex-
amining titles, recording and other le-
gal fees, said fees to be paid In cash
or be made part of loan and paid in
amortization payments.
Sec. 14.-To accept mortgages only
from farm loan associations and APP
proved agents.
Sec. 14.-To accept deposits of cur
rent funds only from it's stockholders.
Sec. 6.-To become financial agents
of United States government and de-
pository of public money. Public de-
posits cannot be invested In mort
cages or farm loan bonds.
Sec. 13.-To deposit its securities
and current funds subject to check
with any member bank of the federal
reserve system and to receive interest
thereon.
BONDS.
Sec. 20-Issued In series Of $4,000
or more, in denominations of $25, $50,
500. $500 and $1,000.
Sec. 20.-May bear a maximum rate
of per cent interest per annum.
Sec. 19.-Mortgages and United
States government boEds equal in
amount to the farm loan bonds issued
are retained as 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 is 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 is
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 10 is not tax exempt.
AGENTS.
Sec. 15.-Incorporated banks, trust
companies, mortgage companies oil
chartered savings institutions may act
as agents for federal land banks If nc
farm loan association has been formed
in given locality after one year.
Sec. 15.-Borrowers securing loan:
through agents are required to sub
scribe per cent of the loan to tn,
capital Of the federal land bank.
Sec. 15.-Agents are entitled to {
commission of one-half of / per cen
per annum on unpaid principal of eacl
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 fac,
of the loan.
| Sec. 15.-Agents shall indorse ant
become liable for the payment of tn,
loans they negotiate and the aggre
gate unpaid principal of such loan
shall not exceed ten times the agent
capital and surplus.
Sec. 15.-Agents are required t
make good any default within 80 day
after notice.
Sec. 15.-All collections made shall
be RENTED without charge.
SPECIAL PROVISIONS.
Sec. characterization and othe
payments constitute a trust fund to b
invested as follows:
(a) To pay off maturing farm LOAF
bond issues.
(b) To purchase farm loan bonds.
(c) To lend on first farm mortgage
within the district.
(d) To buy United States govern
ment bonds.
Sec. 23.-Reserve and dividends: N
limit is placed on dividend distribution
after a reserve account has been bull
!: up from earnings equal to 20 per cen
Of the capital stock and after 5 pc
cent of the net earnings annual
thereafter are added to the reserve az
count.
Sec. 23.-Reserve funds to be invest
ed as prescribed by the federal farr
loan board.