Cut Bank pioneer press. [volume] (Cut Bank, Mont.) 1909-current, 1916-08-18

or be made part of loan and paid in
amortization payments.
Sec. 14.-To accept mortgages only
from farm loan associations and ap-
proved agents.
Sec. 14.-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. 13.-TO deposit its 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 $50, $50,
500, $500 and $1,000.
Sec. 20.-May bear a maximum rate
of 5 per ent interest per annum.
Sec. 19.-Mortgages and United
States government bonds equal in
amount to the farm oar 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. Dissatisfaction of mortgages
and United States government bonds
held as collateral to farm loan bonds is
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
and local taxation.
Sec. 26.-Real property taken and
held under the provisions of sections
IL and Is 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 a given locality after one year.
Sec. 15.-Borrowers securing loans
through agents are required to SUBJ
scribe 5 per cen of the loan to the
capital of the federal land bank.
Sec. 15.-Agents are entitled to a
commission of one-half of l 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 t.
make good any default within 80 days
: after notice.
Sec. 15.-All collections made shall
l be RENTED without charge.
!. SPECIAL PROVISIONS.
J.. Sec. characterization and othe
payments constitute a trust fund to b
invested as follows:
l. (a) To pay off maturing farm loa
bond issues.
(b) To purchase farm loan bonds.
v (c) To lend on first farm mortgage
q within the district.
(d) To buy United States govern
ment bonds.
J. Sec. 23.-Reserve and dividends: n
n limit is placed on dividend distribution
d after a reserve account has been bui
n up from earnings equal to 20 per Gel
d of the capital stock and after 5 D,
<. cent of the net earnings annual
If thereafter are added to the reserve a
II count.
Is Sec. 23.-Reserve funds to be inves
ed as prescribed by the federal far
loan board.
10 Sec. 27.-Farm loan bonds are lawf
IS investments for fiduciary and tru
funds and security for all public d
nt posits.
,d Sec. 27.-Federal reserve bank m
buy and sell farm loan bonds.
Sec. 29.-PIovision is made for d
solution and the appointment Of a
~ ceiver.
ue Sec. 14.-No commission or char
not specifically authorized In this {
al shall be demanded or received.
on
an |
NATIONAL FARM LOAN Assoc
Of