Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1917-04-25

hAN MI lAN vi AMI
IN ADDITION TO SECTION g
MENTS Of BANKS: EXTENb-
ING POWERS OF BANKS TO IN
VEST IN CERTAIN SECURITIES.
1t is hereby enacted by the General
Assembly of the State of Vermont:
Section I. Subdivision I of section 8
of No. 1888 of the acts of 1910 (Subdi-
vision I of section s238 of the General
Laws, as proposed) is hereby amended
SO as to read as follows:
FIRST MORTGAGES ON REAL
ESTATE
I. (a) In first mortgages of un-
incumbered real estate, not to exceed in
each case sixty per cent of the value of
such real estate, if located in Vermont,
and not to exceed fifty per cent of the
value of such real estate If located else
where. Not less than a sixth of the
amount of such mortgages shall be upon
real estate in this state, treating mort
cages made on lands in All adjoining
state within twenty miles of the bank
making such loan as Vermont mortgage
loans, and not more than eighty per cent
of the amount of the assets shall be in
vested in mortgages of real estate; pro-
vided that not exceeding sixty per cent
of the amount of such assets may be in
vested in mortgages of real estate out
side this state. An investment shall not
be made on mortgages of real estate out
side Of Vermont which is unimproved
and unproductive and the amount of such
investments on mortgages in Vermont
shall not be more than forty per cent of
the value thereof. A bank shall not loan
to any person, partnership, association
or corporation upon real estate mortgage
Creating loans to the individual MEM
bers of a partnership as loans to the
Partnership more than thirty thousand
dollars, and in addition thereto one per
cent of the deposits of such bank in
excess Of one million dollars. Provided,
however, that upon the approval in
writing of all the trustees of the bank
who are physically able to act, a bank
may increase loan of thirty thousand
dollars on Vermont real estate, as stated
in this section, to one and one-half per
cent of the deposits in excess of one
million dollars A mortgage investment
shall not be made except upon the writ
ten approval of at least three trustees
of the board of investment, who shall
certify in writing, according to their best
judgment, the value of the premises
mortgaged or to be mortgaged. At the
expiration of every mortgage loan made
for period of five years or more, such
loan shall not be extended or renewed
unless three members of the board of in
vestment certify in writing the value, in
their best judgment, of the mortgaged
premises and unless such value meets the
requirements above prescribed.
| CO. When buildings are included in
the valuation of real estate upon which
an investment is made, they shall be in
sured by the mortgagor in sucn company
as the trustees or board of investmen!
direct, and the policies of insurance shall
be duly assigned or the loss made pay
able to such bank, and such bank may
renew such policies in the same or an.
other company as said trustees or board
or for longer or shorter period, if the
necessary, the treasurer may sign pre-.
MUM notes, and may charge the amount
paid for such insurance to the mort.
Igagor.
(c) When a bank takes an accruins
mortgage, the only debt which shall b
secured thereby or become a lien upor
the property described therein shall b,
the debt described in the mortgage anc
existing at the time of its execution, ant
any subsequent direct indebtedness O.
the mortgagor to such bank; provided
that when the mortgage includes home
stead, the written consent of the wifi
of the mortgagor to the creation of suci
subsequent direct indebtedness shall b,
required.
Sec. q Subdivision II of section
of No. 1873 of the acts of 1910 (sub
division II of section 5238 of the Gen
eral Laws, as proposed) is hereb,
. amended so as to read as follows:
MUNICIPAL BONDS.
II. (a) In the public funds of tn
United States or any of the states or tn
. District of Columbia, or in public fund
for the payment of principal and inter
est of which the faith Of the Unite,
States is pledged.
(b) In the legally authorized bond
or notes of counties, cities, towns, vii
lagos, school districts and water district
of the New England states and of an
municipal corporation in Vermont hav
. ing the right to levy and collect taxes il
payment Of its indebtedness.
(c) In the legally authorized bond
or notes of towns, cities and school dis
tricts, having a population according t
. the last preceding United States or stat
census of at least one thousand in town
. and cities, and five hundred in schoc
districts, and an indebtedness not exceed
ing FIVE per cent of the last precedin
valuation for the assessment of taxes, q
the time of the investment in New Yorl
,, Pennsylvania, Ohio, Michigan, Illinois
Indiana, Iowa, Wisconsin and Mime
:. sofa.
(d) In the legally authorized bond
or notes of towns, cities, and school di!
, tricts having a population according
the last preceding United States or stat
!. census Of at least four thousand and q
; indebtedness not exceeding FIVE per GET
. of the last preceding valuation for III
assessment Of taxes, at the time of til
> > investment in New Jersey, Kansa
+ Nebraska, North Dakota, South Dakot
9 Missouri, Oregon, Washington, Calico
= mia, Delaware, Montana, Wyoming
: Idaho, Maryland and Utah;
!? (e) In the legally authorized bont
!. Iof counties in any Of the above mentione
: states having a population according
: 1.-THE last preceding United States or sta
!, census Of at least twenty thousand ar
- an indebtedness not exceeding FIVE p'
cent of the last preceding valuation f
:. the assessment of taxes, at the time
- the investment.
Bonds issued under this subdivisit
for building or improving roads. shs