Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1916-08-18

the capital stock Of the association
which In turn subscribes an equal
amount Of stock in the federal land
bank.
Sec. 8.-Shares are paid for in cash
or 90 the amount may be added 10 the
face Of the loan and retired In amorti-
zatlon payments at par. In such case
the face Of the loan shall not exceed
the 50 per cent and 20 per cent lin
itatIOn.
Sec. Assessment on shares may
be levied for operating expenses If
funds are not otherwise available.
POWERS.
Sec. 1O.-To appralse land for mort
gage through It's loan committee Of
three.
See. 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 It's business.
Sec. Ito issue certificates of de-
poslt 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 5 to 40
years with amortization and with ad-
ditIonal optional prepayments after
five years.
Sec. 12.-Interest on loans shall not
exceed 6 per cent per annum on the
unpaid principal.
Sec. 12.-Borrowers shall pay 8
per cent simple interest on defaulted
payments.
Sec. 12.-Loans may he made for the
following purposes and for no other
under penalty:
(a) To purchase land for agricul-
tural purposes.
% To purchase equipment, fertil-
izcr and live stock for the operation of
the m~ortgaGed farm.
(c) To provide buildings and for the
improvement Of farm lands.
(d) To pay debts existing at time Of
organization Of the first national farm
loan association within the county.
Sec. 12.-Maxlmum lean $4,000;
minimum loan 500.
Sec. 12.-No loan shall exceed so per
cent Of the value Of the land mortgaged
and 20 per cent OF the permanent In
sured improvements.
Sec. 12.-Eo loans shall be made to
any person who is not at the time or
shortly to become engaged In the cult
vation Of the farm mortgaged.
Note.-All applications for loans
originate with the national farm loan
associations or agents and all loans are
made and closed by the federal land
banks. This does not apply to joint
stock land banks.
TAXATION.
Sec. 28.--Same as applies to federal
land banks.
SPECIAL PROVISIONS.
Sec. 9.-Assoclatlons may retain as
commission one-eighth Of l per cent
semlannually from interest payments
IN the unpaid principal Of loans.
Sec. 9.-Associations may borrow
from federal land banks at 6 per cent
annual interest up to one-fourth Of its
total ~stockholdings In said bank.
Sec. 24.-Reserves and dividends:
No limit Is placed or dividend distri-
buttons after the reserve account, built
up from net earnings equals 20 per
cent Of the capital stock and after 2
per cent Of the net earnings annually
thereafter are added to the reserve ac-
count.
Sec. 25.-Defaults must be made
good within 80 days after notice.
Sec. 29.-Provlsion Is made for dis
solution and the appointment of a re-
ceiver.