The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-01-05
To Have ~ Districts.

districts for farm loan purposes. The
requirement for capital stock For a
Federal bank IL fixed AT not less than
$500. 600. Each ban Is required TO have
nine directors selected by the farm loan
board and the directors are empowered
TO choose a president, vice-president and
other bank Officers
The capital stock If the bank IL
divided into shares OF ten dollars each
and ma be subscribed for and held by
any individual frm or corporation In the
country.
The Federal land banks under the
h'll proposed, may loo designated by The
secretary Of the Treasury a. depositar-
les for public money or az financial
agents OF tho Government. The bill
carries n provision for the organization
of corporations TO be known AS national
farm loan associations, which nay he
organized by persons desiring to borrow
money on farm mortgages security.
These associations are required 10 have
/. board OF hvc directors. to be chosen in
the same manner a. directors of all banks.
After such corporations are formed, sub
scribers TO stock arc required 10 make
afidavits as 10 ownership Of farm land
~ the subscriber to the corporation
which shall be sent To the farm a
bdnk with "A statement OF the amount OF
the loan desired by each person SUB
scribing. which shall be not less than
$500 nor more than $4,000. The aggrc-
gate of the oans desired by the asso-
citation shall not be less thar $4,000.
Bank to judge Company.
The Federal land hank In the distric,
where such farm loan corporation has
been formed is made the Judge o,
whether n charter should be issued 70
the corporation or not. The farm loar
board i. authorized 10 prescribe the
territory In which the association may
make It's oar.
Upon approval of the corporation and
issuance OF charter II may apply 70,
and receive from the Federal bank Of
the district sums to be loaned to mem
hers. An association applying for q
frst mortgage loan Is required to sub
scribe for and pay for in ash capita
stock OF the land bank to the amour
OF 3 per cent. OF the loan. tho banl
TO hold the stock thus subscribed for a.
collateral for the loan.
The duration of mortgages under the
act shall be- at least five years and no,
exceeding ~thirty-six years. The lega,
rate OF interest IL limited to the lega'
rate liked by law for loans by ation
banks.
Loans may he made only for the fol.
lowing purposes Purchase OF a farm foI
a home purchase of equipment. fertiliz
ers and live stock necessary for IN.
reasonable operation Of the farm. AZ the
Federal farm loan board may approve
to provide necessary building and i'm
provements on farm lands and to take
up outstanding mortgages to enable tn,
owner OF the farm TO make a loai
through the rural credits system.
All loans are limited to 30 per cent
OF the value OF the land mortgaEed.
The Federal land banks are author
ICED under the bill to buy and sell farn
mortgages with the approval OF tn.
farm loan board. and to acquire ar
dispose OF land mortgages to II as Sc
curity, tn deposit It's securities ano
funds with the Federal reserve banks
and to accept deposits Of securities Of
funds from farm loan associations with
out any liability for interest, but 10 pa
interest on the time deposits in it's saw
ing department.