Section 132. That the cash capital so paid over to the National Land Credit Bank and the cash capital so paid over to the several State associations, as provided in the preceding section, shall become the absolute property of the National Land Credit Bank, and of such State associations, as completely and absolutely as if the same amount had been paid directly to them for stock issued. For the amount of money so received by the National Land Credit Bank and the amount so received by the State association from the local associations the said National Land Credit Bank and the several State associations shall issue their several receipts in such legal form as to entitle them to a pro rata share of the assets of the said National Land Credit Bank and the several State associations upon the distribution thereof, subject, however, to the claims of all holders of the obligations of whatsoever kind issued and outstanding of the National Land Credit Bank.
Section 133. That every local association, every State association, and the National Land Credit Bank shall each of them be, and they are hereby, made legally constituted bodies corporate that may sue and be sued in any United States court which may have jurisdiction of the subject matter of the action brought.
Section 134. That the said National Land Credit Bank, the several State associations, and the several local associations may severally invest their capital and surplus in mortgages token as herein prescribed, or in the obligations of the National Land Credit Bank, or in United States Government securities. They may severally borrow money in the regular course of their business either upon their credit or by pledging any of the securities they may own.
Section 135. That neither any local association nor any State association nor the National Land Credit Bank shall take deposits in any form, either subject to check or upon time, except for investment in the obligation of the National Land Credit Bank; and any one of these institutions that shall take a deposit of any kind, except as herein provided, shall pay to the United States Government a tax thereon of 10 per centum per annum, nor shall any one of these institutions loan money in any other manner or form than as herein provided. Upon any loan made by any one of them upon personal security, or in any other manner or form than as herein provided, shall pay a tax thereon to the United States Government of 10 per centum per annum.
Section 136. That the National Land Credit Bank shall have power, and is hereby authorized, to issue and sell or dispose of its own obligations in the form of bonds, debentures, or under any other name, and bearing such rates of interest, and in such manner and form, and upon such terms and conditions as to time to run, and manner and method of payment as the board of directors may determine from time to time.
Section 137. That the mortgages held by any local association, or by any State association, or by the National Land Credit Bank, such mortgages having been taken in accordance with the provisions of this Act, and all the obligations, bonds, or debentures issued by the National Land Credit Bank under the authority granted by this Act, shall be exempt from all taxes or duties of the United States Government, as well as from taxation in any form by or under any State, municipality or local authority.
Section 138. That all advances of money upon loans made by the several local associations shall be under the control and under the direction of the board of directors of the National Land Credit Bank, and the rate of interest to be charged on all such loans made shall be fixed from time to time by said board of directors.
Section 139. That at the end of each year the United States auditor shall make a full report of all the institutions organized under this Act, and such reports shall show what the profits are of the National Land Credit Bank, and of the several State associations, and of each of the local associations, respectively. Thereupon the board of directors of the National Land Credit Bank shall set apart one-half of the net profits so certified to by the United States auditor as a part of its surplus account, and may carry the balance as undivided profits, or may declare such a dividend out of its undivided profits as in their judgment seems wise.
Section 140. That the amount paid out in dividends by the National Land Credit Bank shall always be divided equally between the State associations and the local associations in proportion to the capital held by them and the local associations.
Section 141. That the board of managers of the several State associations shall thereupon set apart one-half of the net profits so certified to by the United States auditor as a part of its surplus account and may carry the balance as undivided profits and may declare and pay such a dividend out of the undivided profits as in their judgment seems wise.