778 AGRICULTURAL ECONOMICS 



The members at each annual meeting shall fix the amount of the 

 entrance fee for the ensuing year, which may be made proportional to the 

 number of shares issued to a member, the maximum amount to be loaned 

 any one member, and, upon recommendation of the board of directors, may 

 declare dividends in accordance with the provisions of section twenty -two 

 of this act. 



SEC. 17. The credit committee shall hold meetings, of which due 

 notice shall be given to its members, for the purpose of considering applica- 

 tions for loans, and no loan shall be made unless all members of the com- 

 mittee who are present when the application is considered, and at least 

 two-thirds of all the members of the committee, approve the loan and are 

 satisfied that it promises to benefit the borrower. All applications for loans 

 shall be made in writing and shall state the purpose for which the loan is. 

 desired and the security offered. 



SEC. 18. Loans upon the security of first mortgages upon farm lands 

 shall in no case exceed in amount 50 per cent of the value of the property 

 pledged as security, and shall be for the following purposes only: (a) the 

 clearing, draining, or otherwise reclaiming and permanently improving 

 agricultural lands; (6) the providing of facilities for irrigation; (c) the 

 planting and early care of orchards; (d) the erection of silos, cold storage 

 plants, greenhouses, and permanent farm buildings; (e) the purchase of 

 farms and farm lands for personal occupation and management; (/) the dis- 

 charge of existing farm mortgages; and, (g) subject to the approval of the 

 bank commissioner, such other improvements of a permanent nature as, in 

 the opinion of the directors, tend to develop agricultural resources. The 

 mortgage deeds securing such loans shall contain a provision for immediate 

 foreclosure if the money lent is applied in whole or in part to purposes not 

 hereby authorized, or if, in the opinion of the directors, it is being spent 

 unwisely or wastefully. 



A credit union may, with the approval of the bank commissioner, by 

 vote of its board of directors, issue, sell, and trade in its own collateral trust 

 bonds, which shall be known and described as farmland bonds and shall be 

 secured as hereinafter provided by the deposit of first mortgage notes on 

 farm lands and the mortgages securing the same. In case of failure of a 

 credit union to pay the interest upon its bonds or the principal when due, 

 the bonds shall be an underlying lien on all its assets and the bank com- 

 missioner shall forthwith take possession of the assets and wind up the 

 affairs of the corporation. Loans on the security of first mortgages on 

 farm lands shall be made, and bonds of credit unions secured thereby shall 

 be issued, in accordance with the provisions of chapter two hundred and 

 thirty-one of the General Acts of the current year relating to farmland 

 mortgages and farmland bonds, and any acts in amendment thereof or in 

 addition thereto, so far as applicable. 



