298 BOARD OF AGRICULTURE. [Pub. Doc. 



DIVIDENDS AND SURPLUS. 



Section 20. The directors may from time to time declare dividends 

 to be paid out of the profits of the bank, but no dividend shall be declared 

 imless the combined amount of the land reserve and surplus funds is equal 

 to five per cent of the par value of the bonds outstanding at the time the 

 dividend is declared. No dividend shall be declared exceeding six per 

 cent per annum upon the par value of the land reserve certificates out- 

 standing, except as is hereinafter provided. Net earnings in excess of the 

 dividend declared shall annually be carried to surplus until the surplus 

 fimd shall equal twenty-five per cent of the land reserve fund. Dividends 

 shall be ciunulative only after the surplus fimd shall have been estabhshed 

 and maintained equal to twenty-five per cent of the land reserve fund. 

 Any profit not required to maintain the land reserve and surplus funds, 

 and to pay cumulative dividends not exceeding six per cent per annum, 

 may be carried in amoimt not exceeding fifty per cent to surplus until 

 the surplus fimd shall equal the land reserve fund, and any amotmt not 

 carried to surplus shall be annually divided in equal shares of which one 

 half shall be placed to the credit of the borrowers in amounts in proportion 

 to their loans unpaid at the time of such distribution, and the remaining 

 half shall be paid as an extra dividend upon the outstanding land reserve 

 certificates. 



exemption from taxation. 



Section 21. All property of a bank incorporated under the provisions 

 of this act, except real estate, and aU land reserve certificates and farmland 

 bonds issued by the bank, shall be exempt from state and local taxation, 

 except legacy and succession taxes. 



articles of amendment. 



Section 22. No amendment for alteration of the agreement of associa- 

 tion or articles of organization shall take effect until said articles of amend- 

 ment, signed and sworn to by the president, treasurer and a majority of 

 the directors, shall have been approved by the commissioner and filed in 

 the ofiice of the secretary of the commonwealth. The fee for fifing and 

 recording such articles of amendment sbaU be five dollars. 



DISSOLUTION. 



Section 23. A farmland bank may be dissolved by vote of its share- 

 holders, representing two thirds in amount of the shares issued and out- 

 standing, at any meeting called for the purpose after due notice to all 

 shareholders in accordance with the provisions of the by-laws. The bank 

 shall be dissolved in accordance with rules and regulations prescribed by 

 the bank commissioner. In case of dissolution, after all obUgations of the 

 bank have been paid, or due provision made for their pa>Tnent at ma- 



