7^8 AGRICULTURAL ECONOMICS 



the said loan, which amount shall be paid into the reserve fund out 

 of which expenses of operation and loss, if any may be paid. The 

 bank shall have discretionary power to refund to each borrower whose 

 loan has run for at least ten (10) years, on full payment of his notes, 

 the said \ of i per cent collected thereon, or so much thereof as remains 

 after charging it with its share of expenses and loss, if any have been 

 sustained. 



SEC. 17. The said reserve fund shall as far as practicable be kept 

 invested in bonds of the state of Missouri, of the United States, or of 

 other states of the United States, or in such other safe securities as the 

 board of governors may from time to time designate and the income 

 thereof shall be added to the said fund and become a part thereof. 



SEC. 1 8. Whenever the reserve fund shall have accumulated to 

 an amount sufficiently large that the bank's business will not suffer 

 by its return to the state, the board of governors shall notify the 

 general assembly of its opinion to that effect, and thereupon provision 

 may be made for its repayment to the state. 



SEC. 19. The first $500,000.00 shall be loaned to applicants at 

 the interest rate of four and three-tenths (4 . 3) per cent so that their 

 loans will be amortized or retired according to the approximate esti- 

 mate heretofore scheduled. Thereafter loans must be made at the 

 rate which the bank shall be able to secure for the next preceding issue 

 of bonds, and thereupon the manager shall cause to be made a new 

 amortization table based on said interest rate. 



SEC. 20. The manager may determine from time to time the 

 length of time bonds shall run and upon what method they may be 

 recalled so as to conform the amount of the bonds outstanding to the 

 amount of the mortgage on hand, and there must always be a sub- 

 stantial agreement between the amount of outstanding bonds and 

 notes and mortgages on hand. 



SEC. 21. The board of governors shall designate the persons or 

 officers who shall be required to give bonds for the faithful discharge 

 of the duties required of them 



SEC. 22; [Debenture bonds approved investment for banks and 

 trust companies handling savings and for deposit with insurance 

 department, same as bonds of the state.] 



SEC. 23. [Act not effective until December i, 1916.] 



Approved March 23, 1915. 



NOTE. The postponement of the operation of the act, provided 

 for in Section 23, was due to the fact that there was at least grave 

 doubt of the constitutionality of action appropriating state funds for 



