Third: The National Land Credit Bank.
Section 100. That no more than fifty persons and no less than twenty-five persons may associate themselves together in any State of the United States under the name of —— Land Credit Association, and be known as a local association.
Section 101. That the capital stock of each local association shall be twenty-five thousand dollars, no more, no less; and it shall be paid up in full in cash. The par value of the stock of such association shall be one hundred dollars.
Section 102. That any person may become a member of a local association by owning one or more shares of the stock, but no member of an association shall own more than twenty-five shares thereof.
Section 103. That every local association, each member voting the number of shares owned by him, shall elect an executive committee composed of five members and a secretary and treasurer of said local association. The committee shall choose its own chairman.
Section 104. That the term of service of the members of the committee shall be one year.
Section 105. That no member of a local association shall transfer his stock to any other person without the unanimous approval of the executive committee, evidenced by the signatures of such committee upon the records of the association and by the signature of the chairman of said committee upon the certificate of stock, which shall be transferable only by such signature: Provided, however, That any person desiring to sell his stock may appeal from the decision of the executive committee to the members of such local association.
Section 106. That the total amount of loans that any local association can make is twenty times the amount of its capital stock, or five hundred thousand dollars.
Section 107. That the executive committee may take applications for loans and recommend the same for favorable consideration to the board of managers of the State association, but no loans shall be made except upon improved productive agricultural lands, and then only for 50 per centum of a fair valuation thereof.
Section 108. That all compensation, if any, to the executive committee and the secretary and the treasurer and all expense of the local association of every kind whatsoever shall be derived from charges made for services rendered in connection with the various applications made to them and for services rendered in connection with loans already made. Each association shall fix its own scale of charges, if any are made.