The Weston leader. [volume] (Weston, Umatilla County, Or.) 189?-1946, 1916-09-29


on the unpaid principal Of the loa.
This commission Is TO be deduete
from the dividends payable TO sue
farm loan association by the Feders
land bank. II the commissions AZ
not adequate. and ~ association due
not wish TO assess members for cur
rent expenses, II may borrow at Q pc
cent from the Federal land bank 10 ~
amount not to exceed In the aggregat'
one-fourth Of It's bank stock.
Reserves and Dividends
The law requires both the Ian,
banks and the farm loan association
to make provisions for certain RISER
YES before they can pay any divi
dends.
Agents and Land Banks
In sections where local conditions
DO not make the formation Of associa'
tons practicable, the Farm Loan
Board may authorize the Federal land
bank to make loans through agents
approved by the board. These agents
are TO be banks. trust companies
mortgage companies. or savings insh-
tutions. chartered by the state. They
may receive as compensation the ae-
tual expense involved in transaeting
the loan and in addition thereto q
sum not to exceed one-half Of l per
cent per annum of the unpaid princi-
pal Of the loans made through them.
when Farm Loan Board decides
that locality is adequately served
by farm loan associations, no further
loans are to be made through agents.
JOint-stoek Land Banks
In addition to the system Of - Fs-
deral land banks and the national
loan associations OF borrowers, the
act permits the establishment OF joint
stock land banks and authorizes them
to carry on the business OF Lending
directly 10 borrowers on farm-moIt-
gage security and insuing farm loan
bonds. These banks must have a cap
.tal Of not less than s250,00O. They
are under the supervision Of the Fed
eral harm Loan Board. but the Coy
srnment does not lend them any n
nanelai assistance.
The jOlnt-stcek land bank Is free
from many OF the conditions imposed
on the rederal land hanNs. Subject
10 the so and ~ per cert value lImi-
tation and the limitation as 70 terri
tory, the joint-stock land bank may
lend more than $4,000 to q single m
diyidual. and it is not restricted to
loans Tor the purposes spe-
rahed ln the case Of the keosral Land
bank.
Inc joint-stock bank. like the re-
daral land banks, can not charge an
lnterest rate on farm mortgages IN
pAcess OF per cent, nor snan such
interest rate exceed BY more than
per tent the rate of interest pad ~
ne bank upon its Iast Issue on ponds.
A jolnt-stocK bank is Innsed IN Its
1ond issue TO 10 tunes lts capitaI ana
surplus.
among the restrictions placed on
.hese BANKS under the act are tlD tilat
heir mortgages must proslde Tor AN
system OF repayment
,uch as is prescribed in the case O.
oans tnrousn tne Federal land banks,
ind ~ that they shall in no case de-
liand or receive under any form or
,retense any COMMISSION or ciiarge
lor specifically authorized by the act
Ind approved by the Farm Loan
,oard.
Ihe bonds Of the joint-stock Land
'aDks are exempted IRON taXatlCti.
heir capital Stock, however, IS not.
General Provisions
The law, lnFougn the rarnl Loan
,oard, proyiaes the necessary Inacn-
iely Ior frequent examinations o. the
alAs ana sile associations, Tor tns
roper cancellation OF mortgages o.
1. vi IS sscar.ry Tor Londs. wnen y
q
aortgaSs onsfsu ~ security for bonds
wl.auIawn, the bank A. required %
splace tle security witn vti.sr mort
ages Or with otlier satisfactory col
Iteral.
Heavy penalties Of fine or impris-
lment Oh Dutn, are imposed lor sio-
tons OF the ACT, malIeasanse an OIL
y, fraud, emDezzlenent, uelalcatIon
. otner uiegal practicss.
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