The Dickson County herald. (Dickson, Tenn.) 1907-1979, 1916-08-18

or be made part Of loan and paid Ia
amortization payments
Sec. i4.--To 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-
posltory Of public money. Pebble de-
posts cannot ba invested In mort
cages or farm loan bonds.
Sec. i3.--To deposit Its securities
and current funds subject 10 cheek
with any member bank OF the fedora!
reserve system and to receive interest
thereon.
BONDS.
Sec. 20.--Issued In series Of s50.oOo
or more, In denominations Of SIS, $50,
500, $500 and 81 600.
Sec. % May bear maximum rate
Of per cent interest per annum.
Sec. i9.---Mortgages aud United
States government bonds equal In
amount 10 the farm loan bonds Issued
are retained a. collateral security by
the land bank registrar.
Sec. 1.-THE outstanding farm loan
bonds shall not exceed 20 times the
capital and surplus.
Sec. 2l.--ShAIi 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. substitution Of mortgages
and United States government bonds
held az collateral 10 farm loan bonds Is
permitted.
TAXATION.
Sec. c8.--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. 2B.--neal property taken and
held under the provisions of sections
IL and Is 10 not tax exempt
AGENTS.
Sec. lS.--lncorprated banks, trust
companies, mortgage companies or
chartered savings institutions may act
as agents for federal land banks II no
farm loan association has been formed
In given locality after one year.
Sec. l5.-Borrowers securing loans
through agents are required TO sub.
scribe per cent OF the loan TO the
capital OF the federal land bank.
Sec. l5,--Agcnts are entitled to q
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
pcrs which shall be ndded to the face
Of the loan.
Sec, l5,~-Agents shall lndorse 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 agent $
capital and surplus.
Sec. lS.--Agents are required TO
make good any default within 30 days
after notice.
Sec, l5,--All collections made shall
be RENTED without charge.
SPECIAL PROVISIONS.
Sec. ~. Amortization and other
payments constitute Il trust fund TO be
invested rs follows:
.ta1 To pay o1 maturing farm Loan
tond issues ,...4. .s....,,
(bl TO purchase fnrin loan bonds.
(c) To lend on first farm mortga ges
within the district
td) To buy United States govern
ment bonds.
Sec. 2S--Reserve and dividends No
limit is placed on dividend distributions
after reserve account has been built
M from earnings equal 10 ~ per cent
of the capital stock and after 8 per
cent O. the net earnings annually
thereafter are added to the reserve ac-
count.
Sec. cS,--Reserve funds to be invest.
ed as prescribed by the federal farm
loan board.
Sec. -T.--Fsrm loan bonds are lawful
investments for t'duciary and trust
funds and security for all public de-
posts.
Sec. cT.--.rederal reserve bank may
buy and sell farm loan bonds
Sec. ~ Provision IS made for dis
solution and the appointment Of re-
celver.
Sec. l4--No commission or charge
not specifically authorized In this act
shall Do demanded or received.
NATIONAL FARM LOAN ASSOC
ATOMS