The daily star-mirror. (Moscow, Idaho) 1911-1939, 1916-10-19

or be made part of loan ana paid 1
amortization payments.
Sec. 14.-To accept mortgages onl
from farm loan associations and az
proved agents.
Sec. 14.-To accept deposits Of cur
rent funds only from it's stockholders
Sec. 6.-To become financial agent
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 checl
with any member bank Of the fedora
reserve system and to receive interes
thereon.
BONDS.
Sec. 2O.-Issued in series Of $50,OO(
or more, in denominations of $25, $50
500, $500 and $1,000.
Sec. 20.-May bear a maximum rate
Of 8 per cent interest per annum.
Sec. 10.-Mortgages 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. 14.-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.
without the approval Of the farm loan
board.
Sec. 22.-Substitution Of mortgages
and United States government bonds
held as collateral to farm loan bonds 10
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 tho provisions of sections
II and 10 is not tax exempt.
AGENTS.
Sec. 16.-Incorporated banks, trust
companies, mortgage companies OF
chartered savings institutions may act
as agents for federal land banks II no
farm loan association has been formed
in a given locality after year.
Sec. 15.-Borrowers securing loans
through agents are required to sub
scribe 8 per cent Of the loan to the
capital OF the federal land bank.
Sec. 15.-Agents 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-
praising land. examining titles, exc
cutting and recording the mortgage pa
pers which shall be added to the face
Of the loan.
Sec. 15.-Agents shall indorse 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 agents
capital and surplus.
Sec. 15.-Agents are required to
make good any default within 80 days
after notice.
Sec. 15.-All collections made shall
be RENTED without charge.
SPECIAL PROVISIONS.
Sec. 22.-Amortization and other
M vmpnts rOnstituto n trr,sf fund to no
as follows:
GAY To pay off maturing farm loan
bond issues.
(b) To purchase farm loan bonds.
(c) To lend on first farm mortgages
the district.
(d) To buy United States govern
bonds.
Sec. 23.-Reserve and dividends: No
Is placed on dividend distributions
a reserve account has been built
Up from earnings equal to 20 per cent
If the capital stock and after 5 per
.ent Of the net earnings annually
hereafter are added to the reserve ac-
cunt.
Sec. 23.-Reserve funds to be invest
ID as prescribed by the federal farm
oan board.
Sec. 27.-Farm loan bonds are lawful
Investments for fiduciary and trust
unds and security for all public de-
'osits.
Sec. 27.-Federal reserve bank may
NY and sell farm loan bonds.
Sec. 29.-Provision is made for dis
olution and the appointment Of a re-
eiyer. {
Sec. 14.-No commission or charge
specifically authorized in this act /
hall be demanded or received. !
|ATI0NAL FARM LOAN ASSOCI-
ATlnMc