Section 109. That no loan shall be considered or consummated in any State until there are organized in such State at least twenty local associations in accordance with sections two, three, four and five of this Act and until at least five hundred thousand dollars have been paid up in cash.
Section 110. That when at least twenty such local associations have been organized in any one State the governor of such State, upon being informed of this fact, shall name a time and place for meeting, and the members of the several associations shall meet in person, or by legal proxy duly representing their respective shares, for the purpose of organizing a State Land Credit Association.
Section 111. That the State Land Credit Association shall be organized under the name of (here insert name of State where located) Land Credit Association and be known as a State Association.
Section 112. That every State association shall have a board of managers, which shall consist of seven members, who shall be elected by the shareholders of the several local associations in the State present or duly represented by legal proxies.
Section 113. That the members of the board of managers shall hold office for the period of seven years: Provided, however, That the seven first elected shall hold office for one, two, three, four, five, six, and seven years, respectively, and they shall determine by lot how long each member shall serve.
Section 114. That the officers of each State association shall consist of a president, vice-president, secretary, treasurer, and attorney. The said officers shall be members of the board of managers, except the secretary and treasurer, who may or may not be members.
Section 115. That the officers named in the preceding section shall be appointed by the shareholders of the several local associations present or duly represented by legal proxies.
Section 116. That the salaries to be paid the officers of each State association shall be fixed by the shareholders of the several local associations of such State present or duly represented by legal proxy. All such salaries and all the expenses of whatsoever kind incurred in carrying on the business of the State associations shall be paid out of fees or charges made upon the business done in that State.
Section 117. That the place of business of the State association shall be fixed by the shareholders of the local associations of the respective States present or duly represented by legal proxy.
Section 118. That all applications for loans made to any local association and duly recommended by the executive committee thereof after a personal examination of the property and a full report in accordance with such rules, regulations, and forms as the board of managers of the State association may prescribe shall be examined and considered by said board of managers.