296 BOARD OF AGRICULTURE. [Pub. Doc. 



ninety-five per cent of the amount of the mortgages against which it is 

 issued. Bonds may be issued in denominations of fifty dollars or any 

 multiple thereof, but no bond shall be for a larger amount than one thou- 

 sand dollars. Bonds may bear such rate of interest as may be determined 

 by the directors, but not exceeding five per cent per annum. They shall 

 be payable on a date specified and shall be subject to call by the bank at 

 two per cent above par with accrued interest at any interest period after 

 the date of issue, or after a date specified in the bond, after such notice 

 and advertisement as may be provided ^n the by-laws, or, if no provision 

 is made in the by-laws, as shall be approved by the commissioner. Mort- 

 gages pledged as collateral security for bonds of any series shall be kept 

 at all times in the possession and under the control of the bank, or, upon 

 direction of the commissioner, shall be deposited with a trustee who shall 

 be appointed by the bank with the approval of the commissioner, and 

 shall hold the mortgage notes and mortgages for the bond holders. As the 

 amortization payments are received and credited upon the mortgage notes 

 so deposited as security, the bonds issued by the bank and secured thereby 

 shall be called and paid, or purchased in the open market and retired, to 

 the extent of the payments received, and credited upon the mortgage 

 notes held as security therefor, under rules and regulations adopted bj'- the 

 bank with the approval of the commissioner, or the payments so received 

 may be deposited by the bank, or, if a trustee has been appointed, shall 

 be paid over to the trustee, to be deposited at interest as an amortization 

 fund to meet the payment of the notes at maturity. Only mortgages for 

 a period longer than five years shall be pledged as collateral for farmland 

 bonds. Bonds issued by any bank in accordance with the provisions of 

 this act shall be a legal investment (1) for any savings bank or trust com- 

 pany to an amount not exceeding one fifth of the deposits of such savings 

 bank or trust company; (2) for trust funds and estates and for funds and 

 estates under the jurisdiction of or administered by any of the courts of 

 the commonwealth ; (3) for insurance companies as defined and prescribed 

 by section thirty-seven of chapter five hundred and seventy-six of the acts 

 of the year nineteen hundred and seven, and any amendment thereof; (4) 

 for surplus funds of co-operative banks in addition to the investments 

 authorized by section eleven of chapter one hundred and fourteen of the 

 Revised Laws; (5) for the sinking funds of the commonwealth or of any 

 county or city or town thereof. 



INVESTMENTS. 



Section 17. The land reserve fund, and the surplus fund to the amount 

 of one fourth of the land reserve fmid, shall be invested only in (1) first 

 mortgages upon farm lands, which shall have the approval of the com- 

 mittee on loans or the board of directors as herein provided ; (2) bonds and 

 notes whicli are at the time of their purchase legal investments for savings 

 banks in this commonwealth; (3) investments, other than real estate and 

 mortgages upon real estate, which shall be approved by the commissioner : 



