The midland journal., 1916-08-11


amortization payments.
Sec. 14.-To accept mortgages only
from farm loan associations and ap-
proved agents.
Sec. I4.-To accept deposits, of cur-
rent funds only from its 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. 13s-To deposit Its securities
sand 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 5 per cent interest per annum.
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
Sec. 14.-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 capitol stock, sur
plus. mortgages and farm loan bonds
and all income derived therefrom are
exempt from federal. state, municipal
and local taxation.
Sec. 26.-Reai property taken and
held under the provisions of sections
Il and 13 is not tax exempt.
AGENTS.
Sec. 15.-Incorporated 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. 15.-Borrowers securing loans
through agents are required to sub
scribe 5 per cent of the loan to the
capital of the federal land bank.
Sec. 15.-Agents are entitled to a
commission of one-half of per cent
per annum on unpaid principal OF each
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 face
of the loan.
Sec. 15.--Agents shall indorse and
become liable for the payment OF the
loans they negotiate and the aggre-
gate unpaid principal of such loans
shall not exceed ten times the agents
capital and surplus.
Sec. 15.-Agents are required to
make good any default within 80 days
after notice.
Sec. 15.-All collections made shall
be remitted without charge.
SPECIAL PROVISIONS.
Sec. 22.-Amortizatfon and other
payments constitute trust fund to be
invested as follows:
ta) To pay off maturing farm loan
bond issues.
(b) To purchase farm loan bonds.
(c) To lend on first farm mortgages
within the district.
td) To buy United States govern
ment bonds.
Sec. 23.--Reserye and dividends: No
limit is placed on dividend distributions
after a reserve account has been built
up from earnings equal to 20 per cent
of the capital stock and after per
cent Of the net earnings annually
thereafter are added to the reserve ac-
count.
Sec. 23.-Reserve funds TO be invest
ed as prescribed by the federal farm
loan board.
Sec. 27.-Farm loan bonds are lawful
Investments for fiduciary and trust
funds and security for all public de-
posits.
Sec. 27.-Federal reserve bank may
buy and sell farm loan bonds.
Sec. 29.-Provislon is made for dis
solution and the appointment of re-
ceiver.
Sec. l4.-No commission or charge
not specifically authorized in this act
shall be demanded or received.
NATIONAL FARM LOAN ASSOcl-