June, 1910.] 



520 



Agricultural Finance 



officer or employee of the Government 

 to perform any service or render any 

 assistance to said bank whicli he, the 

 saiil Governor-General may deem proper. 



Subject to the Civil Service Act and 

 rules and the by-laws of said bank, the 

 manager of the bank is authorized to 

 appoint such other personnel as may be 

 necessarily required for the proper oper- 

 ation of said bank. The personnel so 

 appointed by the manager of said bank 

 shall perform the duties and shall receive 

 the salaries prescribed in the by-laws. 



Sec. 7. The Attorney-General shall be 

 the legal adviser of said bank, and shall 

 render such legal services to said bank 

 as may be required of him by the 

 manager of said bank or by the board of 

 directors thereof. In the performance 

 of his duties, the Attorney-General is 

 authorized to require such services from 

 the provincial fiscals as to him may seem 

 best in the interest of said bank. 



Sec. 8. The board of directors is 

 empowered to adopt such by-laws not in 

 conflict with this Act, as may be proper 

 for the prudent and successful operation 

 of said bank, and to amend or repeal the 

 same : Provided, That such by-laws, or 

 any amendment or repeal thereof, shall 

 not take effect until the same shall have 

 received the approval of the Governor- 

 General. 



Sec. 9. The members of the board of 

 directors, appointed as such by the 

 Governor-General, shall each receive for 

 each day of meeting of the board actually 

 attended the sum of ten pesos. 



Sec. 10. The bank may make loans 

 only for the payment or satisfaction of 

 incumbrances on agricultural lands, for 

 the construction of drainage aud irriga- 

 tion works, and for the purchase of 

 fertilizers, agricultural seeds, machinery, 

 implements, and animals, to be used 

 exclusively by the borrower for agri- 

 cultural purposes, and no loan shall be 

 made by said bank to auy person or 

 corporation not engaged in agricultural 

 pursuits. 



Sec. 11. No loan shall be made except 

 upon resolution of the board of directors. 

 No person or corporation shall be per- 

 mitted to borrow less than fifty pesos 

 nor more than twenty-five thousand 

 pesos : Provided, however, That fifty per 

 centum of the capital of said bank shall 

 be set apart for loans of not more than 

 five thousand pesos to any one person or 

 corporation. 

 Sec. 12. No loan shall be made except, 

 (a) Upon the security of a first mort- 

 gage on unincumbered, improved urban 

 property or upon unincumbered agri- 

 cultural land, not to exceed forty per 



centum of the value thereof. No loan 

 shall bo made unless the Attorney- 

 General shall have certified aud the 

 board of directors shall be satisfied that 

 the real estate offered as security for the 

 loan is free from all incumbrances, and 

 that the title thereto is in the mortgagor. 

 All mortgages shall contain a covenant 

 requiring the mortgagor to insure for 

 the benefit of the mortgagee all buildings 

 of strong materials on the property to 

 the amount of their value as fixed by 

 the board of directors. 



(&) Upon the security cf a chattel mort- 

 gage to the bank on crops already 

 harvested, gathered, and stored : Pro- 

 vided, hoioever, That no loan on the 

 security of such crops so harvested, 

 gathered, and stored as aforesaid shall 

 exceed forty per centum of the market 

 value thereof on the date of the loan. 

 The property mortgaged shall be insured 

 by the mortgagor for the benefit of the 

 mortgagee to the full amount of the 

 loan. 



Sec. 13. All mortgages on real property 

 and chattel mortgages on harvested, 

 gathered, aud stored crops shall be 

 registered with the register of deeds in 

 the jurisdiction where situate, and it 

 shall be the duty of the registrar 

 of deeds to indorse on such real or 

 chattel mortgage, and on his record 

 thereof, the . date and hour of its 

 reception, and such registration with 

 the registrar of deeds of such real or 

 chattel mortgage shall be notice to 

 all the world of the lien created by such 

 mortgage and of the terms and conditions 

 thereof, The expenses of registration 

 shall be paid by the borrower. 



Sec 14. The bank shall not exact more 

 than ten per centum per annum on any 

 loan made by it. 



Sec. 15. Loans shall not be made for a 

 period exceeding ten years, aud may be 

 made payable in instalments as the 

 board of directors may determine in 

 each case. 



Sec. 16. No fee or charge of, any 

 kind whatsoever by way of commission 

 shall be exacted or paid for granting or 

 obtaining loans, and any official of the 

 bank exacting, demanding, or receiving 

 any fee for service in obtaining a loan or 

 for the use of his influence to obtain a 

 loan shall be punished by imprisonment 

 for not less than one year nor more than 

 five years, in the discretion of the court. 



Sec, 17. Within one year after fore- 

 closure sale of property has been accom- 

 plished the mortgagor of the property 

 shall have the right to redeem said 

 property from the bank upon payment 

 of the amount found due by the court 



