ORGANIZATION OF AGKICUI,TURAI< CRE1>IT 4I 



a) to endorse bills or become answerable for payments when opera- 

 tions are effected with or loans made to agricultural societies, in determined 

 cases and conditions ; 



b) to procure that agricultural associations group themselves in pro- 

 vincial or district federations, thus uniting the individifal or collective sav- 

 ings of their territorial spheres for local productive use, and thus procuring 

 needed funds for certain associations, and for others an investment for 

 excess funds, or in other words enabling available funds to circulate; 



c) to receive interest-bearing deposits from these associations or fe- 

 derations by assigning funds to the business of making loans (the district 

 federations or funds will, where they exist, form the link between the Cen- 

 tral and the local funds, and the form of and security tor business of the 

 kind will be established with this end in view) ; 



d) to receive from the public deposits on current account, deposits 

 withdrawable by cheque, and savings deposits, always using these fimds 

 exclusively for the business of agricultural credit, in accordance with the 

 functions entrusted to the Central Fund ; 



e) to open current credit accounts with the positos, the rural funds, 

 the syndicates and the federations and other agricultural organizations, 

 on the personal, collective and unlimited guarantee of the members where 

 the latter organizations are concerned or the real guarantee of their capital 

 in the case of the posiios ; 



/) to grant to the agricultural institutions already mentioned loans 

 amortizable in one or more payments. These loans could be granted on the 

 collective and unlimited guarantee of the members, or on the products of 

 agriculture or stock farming or their derivatives, on draught animals, agri- 

 cultural machinery, standing or stored crops or other like pledges which 

 would remain in the hands of the borrower, in accordance with a special 

 regulation to be published ; 



g) to grant loans also to farmers on any of the guarantees enume- 

 rated in paragraph/), or to open for them credit accounts like those mention- 

 ed in paragraph e), either on the direct and exclusive guarantee of those 

 interested or with the subsidiary guarantee of a syndicate. These loans will 

 not exceed a maximum of 20,000 pesetas (i) and cannot be made for a 

 longer term than three years ; 



h) to issue, in virtue of the operations already enumerated and up to 

 the amount of the sums lent or invested, agricultural bonds or other bonds, 

 repayable within a determined period or by drawing lots. Premiums, 

 payable at the time of repayment, may be granted to these bonds. The to- 

 tal sum of the agricultural bonds in circulation will not exceed the amount 

 of loans, as that of the special bonds will not exceed that of the operations 

 they represent ; 



i) to negotiate the securities already mentioned and grant loans on 

 them. Those operations are excluded which the Central Fund may con- 

 clude in issuing the securities in question and which are guaranteed by 



(i) I peseta = about ^j^/^d. at par. 



