RURAL CREDITS 779 



SEC. 19. No member of the board of directors or of either the credit 

 or supervisory committee shall receive any compensation for his services as 

 a member of the said board or of such committee, nor shall any member of 

 the credit or supervisory committee, directly or indirectly, borrow from the 

 corporation or become surety for any loan or advance made by it. 



No member of the board of directors shall, directly or indirectly, borrow 

 from the corporation or become surety for any loan or advance made by it, 

 unless such loan or advance shall have been approved at a meeting of the 

 members of the credit union by a majority vote of those present, and the 

 notice of such meeting shall have stated that the question of loans to 

 directors would be considered at such meeting. 



The officers elected by the board of directors may receive such com- 

 pensation as the board shall authorize. 



SEC. 20. Before the payment of an annual dividend in any year, there 

 shall be set apart as a guaranty fund 20 per cent of the net income which 

 has accumulated during the fiscal year, except as hereinafter provided. 

 Said fund and the investments thereof shall belong to the corporation and 

 shall be held to meet contingencies or losses in its business. All entrance 

 fees shall be added at once to the guaranty fund. Upon recommendation 

 of the board of directors, the members at any annual meeting may increase, 

 and, whenever said fund equals or exceeds the amount of capital stock 

 actually paid in, may decrease, the proportion of profits which is required 

 by this section to be set apart as a guaranty fund : provided, that, if the 

 corporation holds stock in other credit unions or in farmland banks, the 

 percentage of profits to be set apart as a guaranty fund shall not be decreased 

 until the amount of the fund equals or exceeds the amount of capital stock 

 of the corporation actually paid in and in addition thereto the amount 

 actually paid for the shares of stock in such credit unions and farmland 

 banks. 



SEC. 22. At the annual meeting, a dividend may be declared from 

 income which has been actually collected during the fiscal year next preced- 

 ing and which remains after the deduction of all expenses, losses, interest 

 on deposits, and the amount required to be set apart as a guaranty fund, 

 or such dividend may be declared in whole or in part from undivided earn- 

 ings of preceding years, not to exceed 20 per cent thereof in any one year, 

 provided such earnings are a part of the surplus of the corporation in excess 

 of all requirements of the guaranty fund. 



SEC. 23. Within twenty days after the last business day of October 

 in each year, every credit union shall make to the bank commissioner a 

 report in such form as he may prescribe, signed by the president, treasurer, 

 and a majority of the supervisory committee, who shall certify and make 

 oath that the report is correct according to their best knowledge and belief. 

 Any credit union which neglects to make the said report within the time 



