The Pickens sentinel. (Pickens, S.C.) 1911-2016, 1916-08-10
The Federal Farm Loan Act
Synopsis of It's Salient Features Prepared
by Fl. NJ. Hanson, Secretary-Tr Treasurer Farm
Mortgage Bankers Association of America

! VI De maze part or loan ana paid liz
amortization payments.
Sec. l4.-To accept mortgages only
from farm loan associations and ap.
proved agents.
Sec. Tito accept deposits of cur
rent funds only from It's stockholders.
Sec. 6.-TO become financial agents
Of United States government and de-
postory Of public money. Public de-
| posts cannot be invested In mort
cages or farm loan bonds.
Sec. l3.-To deposit It's 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 maximum rate
of per cent interest per annum.
Sec. l9.-Mortgages and United
States government bonds equal In
amount to the farm loan bonds issued
are retained as collateral security by
the land bank registrar.
Sec l4.-The outstanding farm loan
bonds shall not exceed 20 times the
capital and surplus.
Sec. 2l.-Shall be guaranteed by
bank of Issue and oil 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. 28.-The capital stock, sur
p'us. mortgages and farm loan bonds
ana all income derived therefrom are
exempt from federal. state, municipal
and local taxation.
Sec. 2G.-Real property taken and
heid under the provisions Of sections
II anu l3 Is not tax exempt.
AGENTS.
Sec. l5.-Incorporuted banks, trust
companies, mortgage companies or
chartered savings institutions may act
as agents for federal land banks If no
farm loan association has been formed
In given locality after one year.
Sec. l5.-Borrowers securing loans
through agents are required to sub
scribe 8 per cent of the loan to the
capital of the federal land bank.
Sec. l5.-Agents are entitled to q
commission Of one-half Of l per cent
n
loan they negotiate and the bank shall
pay agent for actual expenses for an
praising land. examining titles, exc
cutting and recording the mortgage pa
pcrs which shall be added to the fact
Of the loan.
Sec. 15.-Agents shall indorse an(
become liable for the payment Of the
loans they negotiate and the uggre
gate unpaid principal OF such loan.
shall not exceed ten times the agent.
capital and surplus.
Sec. l5.-Agents are required Il
! make good any default within 80 day.
after notice.
Sec. l5.-All collections made shall
be remitted without charge.
SPECIAL PROVISIONS.
Sec. 22.-AmortizatiOn and othe
| payments constitute 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: ",
limit is placed on dividend distribution
after reserve account has been bull
up from earnings equal to 20 per cen
Of the capital stock and after s pc
cent Of the net earnings annual
thereafter are added to the reserve &C
count.
Sec. 23.-Reserve funds to be invest
ed as prescribed by the federal farr
loan board.
Sec. 27.-Farm loan bonds are lawfu
investments for fiduclary and trus
funds and security for all public dc
poslts.
Sec, 27.---Federal reserve bank ma
buy and sell farm loan bonds.
Sec. 20.--Provision is made for dis
solution and the appointment Of RI
ceiver.
Sec. 14.---No commission or charg
not specifically authorized In this ae
shall be demanded cr received.
NATIONAL. FARM LOAN ASSOCI