Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1916-09-29
NATIONAL FARM LOAN ASSO-
CATIONS.
ORGANIZATION.

A national farm loan association
may be organized in any community
where 10 citizens owning land desire
to borrow an aggregate of not less
than $4,000. The land must be un-
incumbered or the proceeds of the
loan must be used, in part, to re-
move any lien. Loans may be as
small as 500, or as large as $780,
900.
They must first make application.
in writing, for a charter to the fed
eral land bank of the district In
which the association desires to do
business. This application must be
signed by all those desiring to form
the association, stating specifically
, the amount each one desires to bor-
row, the estimated value of the Sc
curity each one offers, the territory
in which the association desires to
do business, how the proceeds of the
loan are to be used, and other details
set forth in the blank forms which
are furnished.
The application having been sign
ed, together with another blank
form furnished, called an "organiza-
ton certificate" the applicants be-
come tentative organization and
elect an agent to represent them,
called a "secretary-treasurer"; they
also select committee of three, call
ed q "loan committee" This agent
will then receive, from each of the
applicants, a subscription to the
stock of the association they are for
ming equal to 5 per cent OF the loan
they severally desire. which Is not
required to be paid unless the loan Is
granted. That is. each borrower
must subscribe for such stock to the
amount of per cent OF his own
loan and no more.
The application for the charter
having been signed, the signatures
must be acknowledged before a no.
tary public or other officer qualified
to administer oaths, and then 1t must
be forwarded by the secretary-treas-
urer to the federal land bank of the
district.
4, Upon its receipt the bank will send
its agent to examine into the repre-
sensations made in the application
and, II found satisfactory. a charter
will be granted.
Upon the granting Of the charter,
the individuals signing the applica-
ton become a body corporate. which
gives It the right to do the business
authorized by the farm loan act, to
extend its benefits to others by TAX
ing in new members from time to
time, and to have succession indef-
nitely. New members must be Dor
rowers whose loans may be as small
as 800 or as large as $4,000.
Let It be plainly understood that
farmers can organize at once, out
they cannot borrow money until the
land banks are established.
| Management.
After the charter is granted the ap-
plicants no longer act In their indi-
vidual capacity, but become merged
as shareholders into a corporation,
which has a separate existence Great
ed by law, under the same name
which has been chosen and set forth
in the original application and or
ganization certificate. This corpora
ton will have directors and officers
selected by the shareholders to do Its
business in accordance with the by
laws which the shareholders make
for their guidance. The active ex-
ecutive officer of the association VIII
be the secretary-treasurer, and MS
duties are set forth in section or
the farm loan act.
Powers.
These associations are organized
for the primary purpose or giving
to each borrower the benefit OF the
combined credit Of all its members
to the extent Of the capital contrib
uted and the limited liability they
each incur, and hence the assocla-
tons are required to indorse every
loan made to members. 1t IS also
through these associations that the