§ 54-54. Restrictions.
§54‑54. Restrictions.
All mortgage obligationsacquired by the company shall be subject to the following restrictions:
(1) Each such mortgageshall be a first and valid lien upon improved or partially improvedagricultural lands within the State of North Carolina;
(2) Each such mortgageshall be a first and valid lien upon the whole and undivided fee and upon nolesser estate;
(3) Each such mortgageshall be given to secure a principal indebtedness not exceeding in amountfifteen percent (15%) of the capital and surplus of the company;
(4) All such mortgagesshall contain provisions for soil conservation;
(5) All such mortgagesshall contain provisions for the time of commencing payments for annual orsemiannual reduction of the indebtedness secured thereby, subject to therequirements as to repayment of loans and interest hereinafter provided;
(6) The company shallmake no loan secured by mortgage of any real estate in which any officer ortrustee of the company is interested either directly or indirectly, except uponthe approval of two thirds of all the trustees;
(7) A sufficient amountof the proceeds of any loan made upon lands upon which are buildings in courseof construction or upon which land clearing or other improvements are beingmade shall be retained by the association and paid out only upon constructionor improvement vouchers, countersigned by a duly authorized agent of theassociation. (1925, c. 223, s. 6.)