Page:United States Statutes at Large Volume 44 Part 1.djvu/318

 ` ‘§ ,.7,22 T17·LE- 12;-i-BANK: ., tional farm loan association shall déslre to secure for any- mém- ' ber a loan on jirst murtgsnge f1·61n_ the Fedcml land bankbf its distiict it" shall subscribe for-capital‘stbL·k of said land bank to the amount of 5 par gicutum ofsuch loén, subh Subscription to be paid in cash upon the granting of the 102111 by said land bunk. Stink capital stock shall be held by said land bank as collateral security thi the payment of said loan, but said asg:_0<·iuti0z1.·shall °be*pt1id any dividends accruing and. payable on 1 _ said capital stock while it is Qxlxtstauding. Such, stock may, in the diS`(§1‘€tiGil' of the diréctors, and with the approval of the 1 · §cdctfa1i;Farn1 Loannllogrd, be paid off at par and retired, ant! 1 . it shTa1l·be`s0 {Said 0E and Jretifad upon full pay1m=;nt ot the mortgage loan. -111 suclr case the nntl011ul__ farm loan aésocia- l ° tion shall pay off at par and_rctiré_tl1c c0i·resp0nding_sha.i·cs csfits stock which were issued when-saidlaud bank`_st0ck was 1 issued. (July 1’Z," 1916, c. 245, § 7, 39 Stat: 365.), _ · ‘   ` 722, Rctluction of capital stcgk of Federal `lainn banks.-=-The,} `capital astock cf, a Fedefal land bank shall not be reduced to l \m1_am0u ¤t less than 5 per centum of the principal of the’0ut~ standing f§l`!I1`1Q&·I1 bonds] issued__by it. (July 17, 1916, 0.245, I 7, 39 Stat. 365.), ~ · CAPITAL vi STOCK OF, NATIONAL FARM ‘LOAN Q ` ASSOCIATIONS _ r  · 131, lsgar value bf shares.—;—Thé- shares in natiouztl farm loan associations shall be of the par va1i1e'0f°$5 each. (July 17, 1916, c.’2—15, § 8, 39,8taL 367.). _ · ‘, · l — `732. Véting stack.-¥——Every— ·shareh0lde1‘ shall be entitled to l one vote tm each slmre of stock bald by him at all elections i . of·dit·ect01.·s and mbdeqxiding all questions at meetings bf share- 1 lwldets: 1’r0vi;le¢, That the maximum number of Votes whielr may be cast byxgny que shareholder. shall be twenty. (July- 17,, 1916,-c. 245,.§ 8,39·Stat._367.) -. ‘ . I - li. ‘ 733. Boimwers only to bc., members; amount of stock to be l ` kw by b01$mwcr;·st»cck*held as collateral;. retirement of · stc&.—···N0 persons but borrowers on farm lundpmortgagas shhll l bc ‘;m·ml>ex·s 0}3·Sh§IB1\01d0fS-Of na_tion·al"farm loan associationsp Any imgson desiring`to‘b0rr0s~··0n faxjxu land mortgage through, _& imtimml funn 10311 association shallmuke applicatloui for nteiiabezisltip hud shall subsc;·ibe· for shares qt stock in ·,sucb turn: loan assogiation to an amount equal to 5 per centmu ·_0f the face of the desired 101211, said subsieription to be paid_·in`; fcnsli upon the grzinting of the loan. , If-the application for il.ll(?l1l·· l bcfship is accepted and the loan is granted, the applicant shall, upon full payment thérefor, become the owner of one share of gnpiwl stock in said l¢m.n‘as§0clati0u` for eucgli $100 of the face . ct hisioau, or any major fractional part thereof. Sgltl capitalsmcl; ézlmll be paid off ut·pz1r and retired upon full tiaymemt bf said lbma. Said capital stuck Shzgll be bold by said assoceiu- ~ tiunas collateral secutity for the payment of said luuu, but said Ln—0rmvret· shall be paid am;} tltvidcmda ncczrsuing a»tnd‘ payalnlc on said capital stock while it is outsthnding. (July 17, 1916,- . gz. 245, § S, 39 Stat. 367.) { ‘ _ A, Q · 734. Increase of st¤ck.———I:lvex·y nntlnnul farm loan associatmm futrnxcd nudes: this Cl§l})t£*l° shall by its artiples of association prosiidc for an ixxvrvase of its capital stock from time to' titué fqr tbé purptgise mf sewuriug ndditimml loam; for its nwmbmrs uml prpviding f£1r the ls.sue of shares to lzorwwcrs in "acq<>rd&hce with the px‘us··i>¤iuus of this clnapter. Suclx ixlcréuscs almll be included ju tlw ’qu:1i·tcrly rc·p<,>x*tS -t0 the 1·`t·tl0mlt Farm ,Lp:ut I§om*d.· (July 17, 1916, lc. 245, § 8, 39 Stat} 367.) NATIONAL ‘ 1`.\IiM_ IMAX ASSOCIATIONS; SPECIAL a I’Ru\*ISlOXS · _ _ 741. Riglit of mémbcrslto laa.ns.—-———»Auy pvmcn xvlmsv application fur I}l{*ll)l3}t‘1‘Slll]_) is_accuptt~d by a national farm loan association $,11:111 be eutitltid to burrow llllllkly cm, fuym land mortgage upon tiling his application in é.ccux·dunce with section

\ S' AND BANKING. ( 3*9} ?·733· and otherwise complying with the terms Of·t1liS.(Zlltl}*'*¤·l‘ t yvheuever (the Federal lnnd bunk of theklistriet has funds :1 ‘ Mable for that purpoee, unleSS__Satit loud book or the l*Q»t1,,-,; } Farm Loan BO81‘d_ shell, inits discretion, otherwise <letermiu;· (.Ju1yl17, 1916, c._ 245, § 9, 39 Stat. 368.), ‘ ` . 742. Loans to members to pay for·’shares;_ repayment.—%.xl,t· person desiring to eeeurea loam through ”a national farm loan association under the `provisions of this éhupter muy, ;i?],;_, _ . option, borrow from the Federal land bank through stugh me ‘ " sociation the ,sum necessary `to_ ·px1y for shares of stock sub. scribed for hy_l1im;iu the national farm ·lonn_ association, :~;u<·h ,sum to he mode n part of the face of the loan ond paid ost in umortiz£ttion_puyn1eutS2 Provided, h€>w¢=*v¢¢¢;,;\'»l`hut such nm;- tion to the loun shallizot be permitted to iné;·ense,sn;itl_ ·lo.m above the,. limitation imposed in subsection 5 et seetion 7;;, (July 17, 1916, c. 245, 5 9, .39 Stat. 308.) · _  _" _ .743._ Commissions Du. interest P•Y¤ents;' dedection from dividends; loans by land banks to auaeistiomsfraté of interest;-¥——Subject to rulee and regulations prescribed by 'the I-`eel-_ eral Farm Loan Board, env notional farm loan association stm}; be entitled to retain as a commission from each interest .;>:1y- ment on z1ny·10uu indorsed by.it an umimutto be‘determine¥l by said board not itoexceed onéelghth of '1"-net éentum semi. annuully. upon the unpaid principal of said loan, any umount<- so retained as- commissions to be `deducted from diviélemls payable to such farm 1onn·_uss0clatiqn_ by the Federal lam bunk, and to make application to the lnn<l._bunk of the tlistriet for-1oans· notexeeediug in theeggregate oneéfourth of its tolnl. shall have power toluiuke such toxins toassocintions applying t·herefor and fo charge interest ut a rate not exceeding 6 per `centum per annum. (July 17, 1910, c. 245, § 9,*39 Stat. ttm.: 744. Individual. liability of sharéhol:lers.——~Shareholders uf every national farm loan association shall be held individually Qeeponsihle, equally nmtratably, and not one for nnother, for nil contracts, debts, -un¢l” engagements of such association to the ‘extent·0f the amount of stock owned by them at the par value tliereotlein addition to the amount pom ln end represented by ° their shares. (July 17, 1916, c. 245,5 9, 39 Stat; 368) · 745. New members.-—-After u charter hue been granted to Il I notional form loan association, amy natural person who is the! owner, or nb0ut·to become the owner, of funn land qunlitieu Wunder. section 771 of this chapter ns" the basis of a mortzxmxe loan, and yvho desires to borrow 0n-u mortgage of sueh form land, moy l»ecoin_e a rnemher of the association hy u two-thirds vote_of the directors upon subscribing for one share of the eapitnl stock of such. uesociationfor eueh $100 of the fave of his proposed, loan or any major fractional part thereof. Ile shall nt the same time Hle with the §et·retary—trensurer his ispplicution for u mortgage loan, giving the particulars requirwl hy section 771 of this chapter. (July 17, 1016, c._2~15, .§ 9. 39 Stat. 308.) “ _ API’RAl$`4AL FOR F.~\R1\i LOANS 751. Investigation by loan committee of character and solvendyjof applicant; su$cicncy of security offered; reporte- Wlienever nn nppllentionjfor u mortgnge loam is umde throutih a nuttonul form loan essoeintion, the loan committee. provitloei for in section 712 of this chapter, shall forthwith xnnke, or cause to be mode, such investigation ns it may deem n_eeessm·s‘ as to t-he character and solvency of the applicant, and the sum eiency of the eeeurity offered, and muse writteureport to be matle of the result of Such investigation', nntl shell, if lt €0¤· pure in such report, epprove the ennie! in xvritingi No loam shall he, mode unless the report is favorable, and the loam conninitteo is unanimous in its approval thereof. (July 17, 1010, c. 245, C 10, 30 Stat. 300; Apr. 20, 1920, c. 154, § 2. 41 sm. 570.) · ""
 * stoek holdiirgs .in said lend bank. The ·· Federal lend beziltw