Page:United States Statutes at Large Volume 39 Part 1.djvu/388

 SIXTY-FOURTH CONGRESS. Sess. I. 'C11. 245. 1916. 367 farm loan association. They shall oilgtaurgize subject to the require- —*”#»P·°°$· ments and the conditions specified in section and in section four of this Act, so far as the same may be applicable: Provided, That ff} °‘*°, - do the board of directors may consist of five members only, and instead ’ ' of a secretary and a treasurer there shall be a secretary-treasurer, who need not be a shareholder of the association. When the articles of association are forwarded to the Federal land d;;`§§fi%{,°“bf:,"kY"‘b bank of the district as provided in this section, they shall be accompanied by the written report of the loan committee as re uired in section ten of this Act, and by an affidavit statinti that ealdh of the ,,,§}?,‘?“""‘ °’ q“"““‘ subscribers is the owner, or is about to become e owner, of farm land qualified under section twelve of this Act as the basis of a mortgage oan; that the loan desired by each person is not more than $10,000, nor less than $100, and that the aggregate of the desired S bmi tm bm loans is not less than $20,000; that said affidavit is accompanied by ¤w¤`i,•wi° w a subscription to stock in the Federal land bank equal to five per centum of the aggregate sum desired on mortgaie loans; and that a temporary organization of said association has een formed by the election of a oard of directors, a loan committee, and a secretary- treasurer who subscribes to said affidavit, giving his residence and post office address. gpon receipt of such articles of association, with the accompanylipg *°“"'°“"" "‘“"‘· am avit and stock subscription, the directors of said Federal bank shall send an appraiser to investiggle the solvency and character of the applicants an the value of their ds, and shall then determine whetherm theirsgigallginent a charter should be granted to such association. They forward such articles of association and the b°';{;°*”**“°' *° accompanying affidavit to the Federal Farm Loan Board with their ° recommendation. If said recommendation is unfavorable, the charter shall be refused. If said recommendation is favorable, the Federal Farm Loan Board M" °‘°"'"" shall thereupon grant a charter to the applicants therefor designating the territory in which such association may make loans, and shall forward said charter to said applicants tl11‘0ugh said Federal . land bank: Provided, That said Federal Farm Loan Board may for £'g°:,,‘V'{},,,, ,,;B,,,,d_ good cause shown in any case refuse to grant a charter. Epon receipt of its charter such national farm loan association °*”“°°’ P°"°”· sh be authorized and empowered to receive from the Federal land bank of the district sums to be loaned to its members under the terms and conditions of this Act. Whenever any national farm loan association shall desire to secure h§,;",j:,${’g’,f,},;"';gs{f for any member a loan on first mortgage from the Federal land bank mlm:. of its district it shall subscribe for capital stock of said land bank to the amount of five per centum of such loan, such subscription to be plaid in cash upon the granting of the loan bly said land bank. Sue capital stoc shall be held by said land  as collateral H"‘*°’°°“°"""· security for the payment of said loan but said association shall be paid any dividends accruing and payable on said capital stock while it is outstanding. Such stock ma, m the discretion of the directors m§f’°¤*°¤* °¤ P•Y· and with the approval of the Fedliral Farm Loan Board, be paid off at par and retired, and it shall be so paid off and retired upon full mk payment of the mortgage loan. In such case the national_farm loan """°°i“”°“‘“ ‘ association shall pay o at (agar and retire the correspondmgshares of its stock which were issu when said land bank stock was issued. The capital stock of a Federal land bank shall not be reduced to_a11 mg§,°;ff°,§h,‘;'d_““* amoimt less than fiveuper centum of the principal of the outstanding farm loan bonds issu by it. carrrar. sroox or NATIONAL rum Loan associations. _§°*g*m°L_‘“’¤ ’°'° Sec. 8. That the shares in national farm loan associations shall be P""""· of the par value of $5 each. _