RURAL CREDITS 787 



closure by newspaper publication, but that such notice may be made 

 by handbills, and that a copy thereof shall be mailed to the maker 

 of the note 



SEC. ii. In case of foreclosure, the bank shall have authority 

 to buy lands at the foreclosure sale if necessary to protect it from loss 

 but the manager shall make every reasonable effort to secure the 

 payment of the money due the bank without buying the land. 



SEC. 1 2 . The bank shall have no capital stock divided into shares, 

 but its working capital shall be provided as follows: that is to say: 

 the general assembly shall appropriate out of the moneys in the state 

 treasury one million ($1,000,000.00) dollars. When the bank shall 

 have loaned five hundred thousand ($500,000.00) dollars thereof, and 

 shall have on hand notes to that amount secured by deeds of trust, as 

 herein provided, it shall have power to sell and issue its debenture 

 bonds for like amounts. The said bonds shall recite on their face that 

 they are secured by notes for the amounts thereof, which are secured 

 by deeds of trust on farm lands in the state of Missouri appraised at 

 double the face value of the said bonds, and further secured by the 

 funds of the said bank as provided under the terms of this act. 



SEC. 13. After the first issue of five hundred thousand ($500,- 

 ooo . oo) dollars of bonds above mentioned, the bank may sell and issue 

 a like series of its debenture bonds under the limitations herein pre- 

 scribed at any time and as often as in the judgment of the manager 

 there shall be on hand notes and deeds of trust of an amount suffi- 

 ciently large to make a series. Each issue shall constitute a series 

 and shall be designated by a serial letter or number, or by both a 

 serial letter and number, beginning with the first issue, and each 

 bond shall also have an individual number. 



SEC. 14. Bonds may be issued on notes and deeds of trust to 

 aggregate amount of forty million ($40,000,000 . oo) dollars based on 

 the original one miUion ($1,000,000.00) dollars of working capital. 

 Further issues may be made indefinitely at a ratio of $30 . oo of bonds 

 to $i . oo of the reserve as against the accumulation of the net annual 

 reserve as hereinafter provided. 



SEC. 15. The property of the said bank including capital, notes, 

 and mortgages and also debenture bonds issued by it as provided for 

 in this act shall all be exempt from state, county, and municipal taxes 

 of any and all kinds. 



SEC. 16. On the amount loaned to each borrower the bank shall 

 collect at the rate of i of i per cent annually during the currency of 



