The Arvada enterprise., 1916-08-10

Of America ii
or be made part of loan and paid in
amortization payments.
Sec. Ito accept mortgages only
from farm loan associations and ap-
proved agents.
Sec. Ito 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. l3.-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. oO.-Issucd in series of 10000
or more. in denominations of $25, $50,
500, $500 and $1,000.
Sec. 2O.-May bear maximum rate
of 8 per cent interest per annum.
Sec. 19.-MortGagcs 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. l4.-Thc outstanding farm loan
bonds shall not exceed 20 times the
capital and surplus.
Sec. 2l.-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.-SuhStitution Of mortgages
and United States government bonds
held as collateral to farm loan bonds is
permitted.
TAXATION.
Sec. 2G.-The capital stock, sur
plus, mortgages and farm loan bonds
and all income derived thercfrom are
exempt from federal, state, municipal
and local taxation.
Sec. 2G.-Real property taken and
held under the provisions OF sections
II and l3 is not tax exempt.
AGENTS.
Sec. 15.-Incorporatcd 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. l5.-Agcnts 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-
nraisng land, examining titles, exc
cutting and recording the mortgage pa
pers which shnll be added to the face
of the loan.
Sec. l5.-Agcnts shall indorsc md
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.-Agcnts nre required to
make good any default within 30 days
after notice.
Sec. l5.-All collections made shall
be RENTED without charge.
SPECIAL PROVISIONS.
Sec. 22.-Amortization md other
payments constitute II trust fund to be
invested as follows:
tW To pay on maturing farm loan
bond issues.
% To purchase farm loan bonds.
tc) To lend on first farm mortgages
within the district.
td) To buy United States govern
mcnt bonds.
Sec. @3.-Rcscrvc and dividends: No
limit is placed on dividend distributions
after n reserve account has been built
up from earnings equal to 20 per cent
Of the capital stock and after ; per
cent Of th" net earnings annually
thereafter are added to the reserve nc.
count.
Sec @3.-Roscrvc funds 10 be Invest.
ed ms prescribed 10y Ia" federal farm
loan board.
Sec 2I.-Furrn loan bonds nrc lawful
investments for fduCiary and trust
funds and security for all public de
positS.
Sec 27.-Fcdcral reserve bank may
buy and sell farm loan bonds.
Sec 99.-rroyISIon Is made for dis
solution and the appointment Of re-.
ccIycr.
Sec. li.-No commission or chnrgc
not specifically authorized IN this act
shall be demanded or received
NATIONAL FARM LOAN ASSOCI-
ATOMS