Orleans County monitor. [volume] (Barton, Vt.) 1872-1953, 1917-04-25

AN All IN AMEN OMEN Or AMI
IN ADDITION TO SECTION 8
1910 RELATING TO INVEST
ING POWERS OF BANKS TO IN
VEST IN CERTAIN SECURITIES.
1t is hereby enacted by the General
Assembly Of the State of Vermont:
Section l. Subdivision | of section 8
of No. I5S of the acts of 1910 (Subdi-
vision l of section 523S of the General
Laws, as proposed) is hereby amended
so as to read as follows
FIRST MORTGAGES ON REAL
ESTATE.
l. (a) In first mortgages of un-
iIlcumbered 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 an 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
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 uninproyed
and unproductive and the amount of such
investments on mortgages III 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 a loan of thirty thousand
dollars on Vermont real estate, as stated
in this section, to one and one-haH 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
OBJ 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 such company
as the trustees or board of investment
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
of investment elect, from year to year,
or for longer or shorter period, if the
mortgagor neglects so to do; and, when
necessary, the treasurer may sign pre-
mium notes, and may charge the amount
paid for such insurance to the mort
gagor.
1c) When a bank takes an accruing
mortgage, the only debt which shall be
secured thereby or become lien upon
the property described therein shall be
the debt described IN the mortgage and
existing at the time of its execution, and
any subsequent direct indebtedness of
the mortgagor TO such bank; provided,
that when the mortgage includes home
stead, the written consent OF the wife
of the mortgagor to the creation of such
subsequent direct Indebtedness shall be
required
Sec. ?. Subdivision II of section 6
of No. I58 of the acts of 1910 (sub-
division ii of section 1898 of the Gen.
leral Laws, as proposed) IS hereby
amended SO as to read as follows:
MUNICIPAL BONDS.
H. (a) In the public funds of the
United States or any of the states or the
District of Columbia, or in public funds
for the payment of principal and inter
est of which the faith of the United
States is pledged.
(b) In the legally authorized bonds
or notes of counties, cities, towns, vii
lagos, school districts and water districts
of the New England states and of any
municipal corporation IN Vermont hav-
ing the right to levy and collect taxes in
payment OF its indebtedness.
(c) In the legally authorized bonds
or notes of towns, cities and school dis
tricts, having population according to
the last preceding United States or state
census OF at least one thousand in towns
and cities, and FIVE hundred in school
districts, and an indebtedness not exceed
ing five per cent of the last preceding
valuation for the assessment of taxes, at
the time of the investment in New York,
Pennsylvania, Ohio, Michigan, Illinois,
Indiana, Iowa, Wisconsin and Mime
sofa.
I'D In the legally authorized bonds
or notes of towns, cities, and school dis
triets having population according to
census of at least four thousand and an
Indebtedness not exceeding FIVE per cent
| of the last preceding valuation for the
assessment of taxes, at the time of the
investment in New Jersey, Kansas,
Nebraska, North Dakota, South Dakota,
Missouri, Oregon, Washington, Califor-
mia, Delaware, Montana, Wyoming,
Idaho, Maryland and Utah;
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