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any commission or charge not specifically author-
ized in this subchapter. (July 17, 1916, c. 245, § 14,
39 Stat. 372.)

Sixth. Accepting mortgages on personal property
exempt from execution.-To accept as additional
security for any loan to any borrower under this
subchapter, or any installment on any such loan,
any personal property which is exempt from execu-
tion upon judgment under the laws of the State in
which the land with respect to which the mortgage
is given is situated. (July 17, 1916, c. 245, § 14,
39 Stat. 372; Mar. 4, 1933, c. 270, § 5 (b), 47 Štat.
1549; June 16, 1933, c. 98, § 71, 48 Stat. 271.)

COS

LOANS BY FEDERAL LAND BANKS THROUGH

AGENTS

$ 801

8 15

Loans; when authorized. Whenever it shall appear to the Farm Credit Administration that national farm loan associations have not been formed, and are not likely to be formed, in any locality, because of peculiar local conditions, said administration may, in its discretion, authorize Federal land banks to make loans on farm lands through agents approved by said administration. (July 17, 1916, c. 245, § 15, 39 Stat. 373; Mar, 27, 1933, Ex. Or. 6084.)

“Farm Credit Administration" and "administration” mentioned in the text were substituted for "Federal Farm Loan Board" and “board”, respectively, pursuant to the Executive Order cited thereto, 'which is set out in full at the beginning of this chapter.

8 802

$ 15

Manner of making.–Loans authorized by section 801 of this chapter shall be subject to the same conditions and restrictions as if the same were made through national farm loan associations, and each borrower shall contribute 5 per centum of the amount of his loan to the capital of the Federal land bank, and shall become the owner of as much capital stock of the land bank as such contribution shall warrant. (July 17, 1916, c. 245, § 15, 39 Stat. 373.)

§ 803

§ 15

Who may be employed as agent.—No agent other than a duly incorporated bank, trust compány, mortgage company, or savings institution, chartered by the State in which it has its principal office, shall be employed under the provisions of sections 801-808 hereof. (July 17, 1916, C. 245, 8 15, 39 Stat. 373.)

8 804

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Expenses of and commissions to agents. Federal land banks may pay to such agents the actual expense of appraising the land offered as security, for a loan, examining and certifying the title thereof, and making, executing, and recording the mortgage papers; and in addition may allow said agents not to exceed one-half of 1 per centum per annum upon the unpaid principal of said loan, such commission to be deducted from dividends payable to the borrower on his stock in the Federal land bank. (July 17, 1916, c. 245, § 15, 39 Stat, 373.)

8 805

§ 15

Expenses of agents added to loans.--Actual expenses paid to agents under the provisions of sections 801-808 hereof shall be added to the face of the loan and paid off in amortization payments subject to the limitations provided in paragraph “Ninth" of section 781 of this chapter. (July 17, 1916, c. 245, § 15, 39 Stat. 373.)

8 806

§ 15

Collection of loan payments.Said agents, when required by the Federal land banks, shall collect and forward to such banks without charge all interest and amortization payments on loans indorsed by them. (July 17, 1916, c. 245, § 15, 39 Stat. 373.)

8 807

§ 15

Indorsement of loans; liability thereon.--Any agent negotiating any such loan shall indorse the same and become liable for the payment thereof, and for any default by the mortgagor, on the same terms and under the same penalties as if the loan had been originally made by said agent as principal and sold by said agent to said land bank, but the aggregate of the unpaid principal of mortgage loans received from any such agent shall not exceed 10 times its capital and surplus. (July 17, 1916, c. 245, § 15, 39 Stat. 373.)

8 808

8 18

When loans to cease.-If at any time the district represented by any agent under the provisions of sections 801-808 of this chapter shall, in the judgment of the Farm Credit Administration, be adequately served by national farm loan associa

tions, no further loans shall be negotiated therein
by agents under said sections. (July 17, 1916, c.
245, § 15, 39 Stat. 873; Mar. 27, 1933, Ěx. Or. 6084.)

"Farm Credit Administration" mentioned in the text was sub-
stituted for "Federal Farm Loan Board” pursuant to the Execu-
tive Order cited thereto, which is set out in full at the beginning
of this chapter.

JOINT STOCK LAND BANKS

8 810

Restriction against making loans or issuing bonds after May 12, 1933.- After May 12, 1933, no joint stock land bank shall issue any tax-exempt bonds or make any farm loans except such as are necessary and incidental to the refinancing of existing loans or bond issues or to the sale of

any

real estate now owned or hereafter acquired by such bank. (May 12, 1933, c. 25, § 29, 48 Stat. 46.)

For loans to joint stock land banks to provide for orderly liquidation and for emergency purposes, see § 823 (note) ot this chapter.

8 811

8 16

: 15

Organization; directors.-Corporations, to be known as joint stock land banks, for carrying on the business of lending on farm mortgage security and issuing farm loan bonds, may be formed by any number of natural persons not less than ten. They shall be organized subject to the requirements and under the conditions set forth in sections 671-683 of this chapter, so far as the same may be applicable: Provided, That the board of directors of every joint stock land bank shall consist of not less than five members. (July 17, 1916, c. 245, § 16, 39 Stat. 374.)

Making loans or issuing tax-exempt bonds prohibited after May 12, 1933, except in circumstances permitted under § 810 of this chapter.

5

See that section,

8 812

16

Individual liability of shareholders.-Shareholders of every joint stock land bank organized under this chapter shall be held individually responsible, equally and ratably, and not one for another, for all contracts, debts, and engagements of such bank to the extent of the amount of stock owned by them at the par value thereof, in addition to the amount paid in and represented by their shares. (July 17, 1916, c. 245, 8 16, 39 Stat. 374.)

8 813

§ 16

Powers, duties, and liabilities; stock.–Except as otherwise provided, joint stock land banks shall have the powers of, and be subject to all the restric

tions and conditions imposed on, Federal land
banks by this chapter, so far as such restrictions
and conditions are applicable: Provided, however,
That the Government of the United States shall
not purchase or subscribe for any of the capital
stock of any such bank; and each shareholder of
any such bank shall have the same voting privileges
as holders of shares in national banking associations.
(July 17, 1916, c. 245, § 16, 39 Stat. 374.)

Making loans or issuing tax-exempt bonds prohibited after May
12, 1933, except in circumstances permitted under $ 810 of this
chapter. See that section.

8 814

8 16

Limitation on amount of issue of bonds; transacting unauthorized business. — No joint stock land bank shall have power to issue or obligate itself for outstanding farm loan bonds in excess of fifteen times the amount of its capital and surplus, or to receive deposits or to transact any banking or other business not expressly authorized by the provisions of this chapter. (July 17, 1916, c. 245, § 16, 39 Stat. 374.)

Making loans or issuing tax-exempt bonds prohibited after May 12, 1933, except in circumstances permitted under $ 810 of this chapter.

See that section.

$ 815

§ 16

Minimum capital stock.—No joint stock land bank shall be authorized to do business until capital stock to the amount of at least $250,000 has been subscribed, one-half thereof paid in cash and the balance subject to call by the board of directors, and a charter has been issued to it by the Farm Credit Administration. (July 17, 1916, c. 245, § 16, 89 Stat. 374; Mar. 27, 1933, Ex. Or. 6084.)

“Farm Credit Administration" mentioned in the text was substituted for "Federal Farm Loan Board” pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

Making loans or issuing tax-exempt bonds prohibited after May 12, 1933, except in circumstances permitted under $ 810 of this chapter. See that section.

8 816

8 16

Issuing bonds before payment of stock.--No joint stock land bank shall issue any bonds until after the capital stock is entirely paid up. (July 17, 1916, c. 245, § 16, 39 Stat. 374.)

Making loans or issuing tax-exempt bonds prohibited after May 12, 1933, except in circumstances permitted under $ 810 of this chapter.

See that section.

8 817

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Form of bonds.-Farm loan bonds issued by joint stock land banks shall be so engraved as to be readily distinguished in form and color from farm

loan bonds issued by Federal land banks, and shall
otherwise bear such distinguishing marks as the
Farm Credit Administration shall direct. (July 17,
1916, c. 245, $ 16, 39 Stat. 374; Mar. 27, 1933,
Ex. Or. 6084.)

Farm Credit Administration" mentioned in the text was sub-
stituted for “Federal Farm Loan Board” pursuant to the Execu-
tive Order cited thereto, which is set out in full at the beginning
of this chapter.

Making loans or issuing tax-exempt bonds prohibited after May 12, 1933, except in circumstances permitted under $ 810 of this chapter. See that section.

8 818

8 16

Interest rates; restrictions on mortgage loans.-Joint stock land banks shall not be subject to the provisions of subsection (6) of section 831 of this chapter as to interest rates on mortgage loans or farm loan bonds, nor to the provisions of paragraphs “First”, “Fourth”, “Sixth”, “Seventh", and "Tenth" of section 771 'as to restrictions on mortgage loans: Provided, however, That no loans shall be made which are not secured by first mortgages on farm lands within the State in which such joint stock land bank has its principal office, or within some one State contiguous to such State, except as hereinafter provided. Such joint stock land banks shall be subject to all other restrictions on mortgage loans imposed on Federal land banks in section 771 of this chapter. (July 17, 1916, c. 245, § 16, 39 Stat. 374; Mar. 4, 1931, c. 518, § 1, 46 Stat. 1548.)

Making loans or issuing tax-exempt bonds prohibited after May 12, 1933, except in circumstances permitted under § 810 of this chapter.

16

See that section.

8 819

8 16

Limitation on interest rates.-Joint stock land banks shall in no case charge a rate of interest on farm loans exceeding by more than 1 per centum the rate of interest established for the last series of farm loan bonds issued by them. (July 17, 1916, c. 245, $ 16, 39 Stat. 374.)

Making loans or issuing tax-exempt bonds prohibited after May 12, 1933, except in circumstances permitted under § 810 of this chapter.

See that section.

§ 820

8 16

Unauthorized commissions or charges.-Joint stock land banks shall in no case demand or receive, under any form or pretense, any commission or charge not specifically authorized in this chapter. (July 17, 1916, c. 245, $ 16, 39 Stat. 374.)

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