The Olneyville times. (Olneyville [Providence, R.I.]) 1887-1917, 1916-08-11


Sec. Ito 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.
Sec. 20.-Issued I'm series of $50 1000
or more, in denominations of S25, $50,
500, $500 and $1,000.
Sec. 20.-May bear a maximum rate
Of 5 per cent interest per annum.
Sec. 19.-Mortgages and United
States government bonds equal I'm
amount 10 the farm loan bonds issued
| are retained as collateral security by
the land bank registrar.
Sec. 1.-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 10 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 l3 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 per cent OF the loan to the
capital Of the federal land bank.
| Sec. 15.-Agents are entitled TO n
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-
| pralsing land examining titles, exc
| cutting and recording the mortgage pa
| pers which shall be added to the face
| OF the loan.
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
after notice.
Sec. 15.-All collections made shall
be RENTED without charge.
SPECIAL PROVISIONS.
Sec. 22.-Amortization and other
payments constitute trust fund to be
invested as follows:
(a) To pay Off maturing farm loan
bond issues.
(b) To purchase farm loan bonds.
(c) To lend on first farm mortgages
within the district.
(d) To buy United States govern
ment bonds.
Sec. 23.-Reserve and dividends: No
| limit Is placed on dividend distributions
after reserve account has been built
up from earnings equal TO 20 per cent
! of the capital stock and after 8 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 fduciary and trust
funds and security for all public de-
posits.
Sec. 27.-Federal reserve bank may
buy and sell farm loan bonds.
Sec. 29.-Provision is made for dis
solution and the appointment Of a re-
| ceiver.
Sec. 14.-No commission or charge
NOT spacffcallv autborizad In ,bta N ~,
shall be demanded or received.