The Meridian times. (Meridian, Idaho) 1909-1938, 1916-08-18
NATIONAL FARM LOAN ASSOCl-
ATOMS
ORGANIZATION.

Section Item farm owners desir-
ing loans aggregating $4,000 or more
may form such an association.
Sec. Tits affairs are administered
by i've directors, including president.
vice president and a loan committee of
three serving without compensation,
and by secretary treasurer with SAL
airy fixed by the farm loan board and
paid by the association.
CAPITAL STOCK.
Sec. 8.-Shares, IS each; (9) carry
Ing double liability; (S) may be owned
only by borrowers who are required to
subscribe per cent of their loan In
the capital stock Of the association
which in turn subscIibes an equal
amount of stock In the federal land
bank.
Sec. 8.-Shares are paid for in cash
or (9) the amount may be added to the
face of the loan and retired in amorti-
the face of the loan shall not exceed
the so per cent and 20 per cent linn
itation.
Sec. Assessment on shares may
be levied for operating expenses If
funds are not otherwise available.
POWERS.
Sec. 10.-To appraise land for mort
gage through its loan committee Of
three.
Sec. Ito indorse and become
liable for the mortgages Of Its share
holders.
Sec. Ito receive and deliver the
proceeds of loans to borrowers.
Sec. Ito acquire and dispose Of
property necessary for the convenient
TRANSACTION OF its business.
Sec. Ito issue certificates of de-
posit for not longer than one year and
to pay 4 per cent interest thereon,
convertible into farm loan bonds at the
federal land bank Of It's district.
Sec. ITO receive and transmit to
the federal land bank payments Of In
terest and principal and amortization
| payments.
LOANS.
Sec. 12.-Loans shall be secured by
first mortgages on land within its land
| bank district.
Section ITO run from to 40
years with amortization and with adj
ditional optional prepayments after
| five years.
| Sec. 12.-Interest on loans shall moi
exceed 6 per cent per annum on the
unpaid principal.
Sec. 12.-Borrowers shall pay
per cent simple interest on defaulted
payments.
Sec. 12.-Loans may be made for the
following purposes and for no Other
under penalty:
(a) To purchase land for agricul
tural purposes.
(b) To purchase equipment, fertil
izer and live stock for the operation OF
the mortgaged farm.
(c) To provide buildings and for the
improvement of farm lands.
(d) To pay debts existing at time o.
organization Of the first national farm
loan association within the county.
Sec. 12.-Maximum loan $4,000
minimum loan 500.
Sec. 12.-No loan shall exceed so pc
cent of the value Of the land mortgaget
and 20 per cent of the permanent in
sured improvements.
Sec. 12.-No loans shall be made t,
any person who is not at the time o
shortly to become engaged in the cult
walton Of the farm mortgaged.
Note.-Ah applications for loan
originate with the national farm LOAF
associations or agents and all loans ar
made and closed by the federal Ian,
banks. This does not apply to join
stock land banks.
TAXATION.
Sec 26-Same as applies to fedora
land banks.
SPECIAL PROVISIONS.
Sec. 9.-Assoclations may retain a
commission one-eighth of / per cen
semiannually from interest payment
on the unpaid principal of loans.
Sec. 9-Associations may borro,
from federal land banks at 6 per cen
annual interest up to one-fourth of 1t
total stockholdings in said bank.
Sec. 24.--Reserves and dividends
No limit is placed on dividend distr
buttons after the reserve account, bull
up from net earnings equals 20 pc
cent of the capital stock and after
per cent of the net earnings annual
thereafter are added ts the reserve az
count.
Sec. 25.-Defaults must be mad
good within 80 days after notice.
Sec. 29.-Provision is made for di.
solution and the appointment Of a RI
ceiver.