Oxford eagle., 1916-10-05

or be made part Of loan and paid n
amortization payments.
See. Ito accept mortgages only
from farm loan associations and ap-
proved agents.
sec. l4.-To accept deposits Of cur
rent funds only from Its stockhoiderrI
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. l3.-To deposit its securities
and current fund. subject to check
with any member bank Of the federal
reserve system and to receive interest
thereon
BONDS.
Bee. 20.-lssued In series OF $50. .O00
or more. in denominations OF s25. $50
slO0. $500 and $1,000.
Sec. 20.-May bear . maximum rate
OF 8 per cent interest per snnum
Sec. 19.-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
See. 1.-THE outstanding farm loan
bonds shall not exceed % times the
capital and surplus.
Sec. 2l.-Shall be guaranteed By
bank Of issue and all other federal land
banks
Sec. l7.-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 10
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
I and local taxation.
See. 28.-Real property taken and
held under the provisions Of sections
I II and 10 is not tar exempt.
AGENTS.
Sec. l5.-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 given locality after one year.
See. l5.-Borrowers securing loans
through agents are required to sub
scribe per cent OF the loan to the
capital Of the federal land bank.
Sec. l5-Agents are entitled b Q
commission OF one-half Of I per cent
per annum on unpaid principal Of each
loan they negotiate and the hank shall
pay agent for actual expenses for ap-
pralsing land. examining tfties. exc
cutting and recording the mortgage pa-
pers which shall be added TO the facs
of the loan.
Sec. i5.-Agents shall indorse anl
become liable for the payment Of ths
, loans they negotiate and the aegre'
gate unpaid principal Of such loana
shall not exceed ten times the aOsnt'r
capital and surplus.
See l5.-Agents are required b
make good any default within 30 dayu
after notice.
Sec 15.-An collections made shal
be remitted without charge.
SPECIAL PROVISIONS.
Sec 22-Amortixation and othsl
! payments constitute . trust fund b b
invested as follows:
(a) To pay on maturing farm ioaz
bond issues
tb) To purchase farm loan bonds.
fc) To lend on irst farm mortsagsl
within the district.
-sssA To buy United statss sovsrn
ment bonds.
Sec. 23.-Reservs and dividsnds: NJ
limit is placed on dividend distributioul
after q reserve account has been bull
up from earnings equal 10 20 psr cen
OF the capital stock and after 8 pc
cent OF the net earnings annual,
thereafter ars added 20 the reserve se
count
, Sec. 23.-Reserve funds % be invest
ed as prescribed by the federal fhrn
loan board
Sec. Z7.-Farm loan bonds are lawfu
, investments for nduciary and trus
funds and sscurity for all public d
I posits-
, Sec. T.-Fsderal reserve bank "a,
buy and sell farm loan bonds.
Sec. 2e.-Provision 10 made for c1a
solution and the sppstntmeut a Q n
ceiver.
Sec. l4--No commission % eAarv
not specifically authorised In this &C
i shall be demanded or received.
NATIONAL FARM LOAN ASS0Ci